The Global

Competitiveness Report
2009–2010

Klaus Schwab, World Economic Forum

World Economic Forum
Geneva, Switzerland 2009

Professor Klaus Schwab
World Economic Forum
Editor

The Global
Competitiveness Report
2009–2010

Professor Xavier Sala-i-Martin
Columbia University
Chief Advisor of the Global Competitiveness Network

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

The Global Competitiveness Report
2009–2010 is published by the World
Economic Forum within the framework of the
Global Competitiveness Network.

World Economic Forum
Geneva

Professor Klaus Schwab
Executive Chairman

All rights reserved. No part of this publication
may be reproduced, stored in a retrieval
system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying,
or otherwise without the prior permission of
the World Economic Forum.

Professor Xavier Sala-i-Martin
Chief Advisor of the Global Competitiveness
Network
Robert Greenhill
Chief Business Officer

Copyright © 2009
by the World Economic Forum

ISBN-13: 978-92-95044-25-8
ISBN-10: 92-95044-25-8

GLOBAL COMPETITIVENESS NETWORK

Jennifer Blanke, Director, Senior Economist,
Head of Global Competitiveness Network
Margareta Drzeniek Hanouz, Director,
Senior Economist
Irene Mia, Director, Senior Economist
Thierry Geiger, Associate Director,
Economist, Global Leadership Fellow
Ciara Browne, Associate Director
Pearl Samandari, Community Manager
Eva Trujillo Herrera, Research Assistant
Carissa Sahli, Coordinator

This book is printed on paper suitable for
recycling and made from fully managed and
sustained forest sources.
Printed and bound in Switzerland by SRO-Kundig.

We thank Hope Steele for her superb editing
work and Neil Weinberg for his excellent
graphic design and layout. We are grateful to
Joelle Latina for her invaluable research
assistance.
The terms country and nation as used in this
report do not in all cases refer to a territorial
entity that is a state as understood by international law and practice. The terms cover
well-defined, geographically self-contained
economic areas that may not be states but
for which statistical data are maintained on
a separate and independent basis.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Contents

Partner Institutes

Preface

v

Part 2: Data Presentation

59

xi

2.1 Country/Economy Profiles

61

by Klaus Schwab

How to Read the Country/Economy Profiles ...............................63
List of Countries/Economies .........................................................65
Country/Economy Profiles .............................................................66

Part 1: Measuring Competitiveness
1.1 The Global Competitiveness Index 2009–2010:
Contributing to Long-Term Prosperity amid the
Global Economic Crisis

1

2.2 Data Tables

3

How to Read the Data Tables......................................................335
Index of Data Tables ....................................................................337
Data Tables ..................................................................................339

by Xavier Sala-i-Martin, Jennifer Blanke, Margareta Drzeniek
Hanouz, Thierry Geiger, and Irene Mia

1.2 The Executive Opinion Survey:
Capturing the Views of the Business Community
by Ciara Browne and Thierry Geiger

333

Technical Notes and Sources

473

About the Authors

477

Acknowledgments

479

49

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Partner Institutes

Partner Institutes

The World Economic Forum’s Global Competitiveness
Network is pleased to acknowledge and thank the following organizations as its valued Partner Institutes,
without whom the realization of The Global
Competitiveness Report 2009–2010 would not have been
feasible:
Albania
Institute for Contemporary Studies (ISB)
Artan Hoxha, President
Elira Jorgoni, Senior Expert and Project Manager
Denalada Kuzumi, Researcher
Algeria
Centre de Recherche en Economie Appliquée
pour le Développement (CREAD)
Youcef Benabdallah, Assistant Professor
Yassine Ferfera, Director
Argentina
IAE- Universidad Austral
María Elina Gigaglia, Project Manager
Eduardo Luis Fracchia, Professor
Armenia
Economy and Values Research Center
Manuk Hergnyan, Chairman
Sevak Hovhannisyan, Board Member and Senior Associate
Gohar Malumyan, Research Associate
Australia
Australian Industry Group
Nicholas James, Economist
Tony Pensabene, Associate Director, Economics & Research
Heather Ridout, Chief Executive
Austria
Austrian Institute of Economic Research (WIFO)
Karl Aiginger, Director
Gerhard Schwarz, Coordinator, Survey Department
Azerbaijan
Azerbaijan Marketing Society
Fuad Aliyev, Executive Director
Ashraf Hajiyev, Project Coordinator
Saida Talibova, Consultant
Bahrain
Bahrain Competitiveness Council, Bahrain Economic
Development Board
Nada Azmi, Business Intelligence Specialist, Economic
Planning & Development
Jawad Habib, Senior Partner, BDO Jawad Habib
Rima Al Kilani, Director, International Marketing
Bangladesh
Centre for Policy Dialogue (CPD)
Khondaker Golam Moazzem, Senior Research Fellow
Kazi Mahmudur Rahman, Senior Research Associate
Mustafizur Rahman, Executive Director

Barbados
Arthur Lewis Institute for Social and Economic Studies,
University of West Indies (UWI)
Andrew Downes, Director
Belgium
Vlerick Leuven Gent Management School
Lutgart Van den Berghe, Professor, Executive Director
and Chairman, Competence Centre Entrepreneurship,
Governance and Strategy
Bieke Dewulf, Associate, Competence Centre Entrepreneurship,
Governance and Strategy
Wim Moesen, Professor
Benin
Micro Impacts of Macroeconomic Adjustment Policies
(MIMAP) Benin
Epiphane Adjovi, Business Coordinator
Maria-Odile Attanasso, Deputy Coordinator
Fructueux Deguenonvo, Researcher
Bosnia and Herzegovina
MIT Center, School of Economics and Business in Sarajevo,
University of Sarajevo
Zlatko Lagumdzija, Professor
Zeljko Sain, Executive Director
Jasmina Selimovic, Assistant Director
Botswana
Botswana National Productivity Centre
Joseph Jonazi, Research Consultant and Statistician
Dabilani Buthali, Manager, Information and
Research Services Department
Thembo Lebang, Executive Director
Brazil
Fundação Dom Cabral
Carlos Arruda, Executive Director, International Board
and Professor and Coordinator of the Competitiveness
and Innovation Center
Marina Araújo, Economist and Researcher of the
Competitiveness and Innovation Center
Movimento Brasil Competitivo (MBC)
Cláudio Leite Gastal, Director President
Denise Alves, Projects Coordinator
Elisa de Araújo, Projects Assistant
Brunei Darussalam
Ministry of Industry and Primary Resources
Pehin Dato Yahya Bakar, Minister
Dato Paduka Hj Hamdillah Hj Abd Wahab, Deputy Minister
Dato Paduka Hamid Hj Mohd Jaafar, Permanent Secretary
Bulgaria
Center for Economic Development
Anelia Damianova, Senior Expert
Burkina Faso
lnstitut Supérieure des Sciences de la Population (ISSP),
University of Ouagadougou
Samuel Kabore, Economist and Head of Development Strategy
and Population Research

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

v

Partner Institutes

Burundi
University Research Centre for Economic and Social
Development (CURDES), National University of Burundi
Richard Ndereyahaga, Head of CURDES
Gilbert Niyongabo, Dean, Faculty of Economics
& Management
Cambodia
Economic Institute of Cambodia
Sok Hach, President
Chan Vuthy, Senior Researcher
Poch Kongchheng, Junior Researcher
Cameroon
Comité de Compétitivité (Competitiveness Committee)
Lucien Sanzouango, Permanent Secretary
Canada
Institute for Competitiveness and Prosperity
Tamer Azer, Researcher
Roger Martin, Chairman and Dean of the Rotman
School of Management, University of Toronto
James Milway, Executive Director
Chad
Groupe de Recherches Alternatives et de Monitoring
du Projet Pétrole-Tchad-Cameroun (GRAMP-TC)
Antoine Doudjidingao, Researcher
Gilbert Maoundonodji, Director
Celine Nénodji Mbaipeur, Programme Officer

vi

Chile
Universidad Adolfo Ibáñez
Ignacio Briones, Associate Professor of Economics,
School of Government
Leonidas Montes, Dean, School of Government
Camila Chadwick, Project Coordinator
China
Institute of Economic System and Management
National Development and Reform Commission
Zhou Haichun, Deputy Director and Professor
Chen Wei, Research Fellow
Dong Ying, Professor
China Center for Economic Statistics Research,
Tianjin University of Finance and Economics
Lu Dong, Professor
Jian Wang, Associate Professor
Hongye Xiao, Professor
Bojuan Zhao, Professor
Huazhang Zheng, Associate Professor
Colombia
National Planning Department
Alvaro Edgar Balcazar, Entrepreneurial Development Director
Carolina Rentería Rodríguez, General Director
Mauricio Torres Velásquez, Advisor
Colombian Council of Competitiveness
Hernando José Gomez, President
Côte d’Ivoire
Chambre de Commerce et d’Industrie de Côte d’Ivoire
Jean-Louis Billon, President
Jean-Louis Giacometti, Technical Advisor to the President
Mamadou Sarr, Director General
Croatia
National Competitiveness Council
Martina Hatlak, Research Assistant
Kresimir Jurlin, Research Fellow
Mira Lenardic, General Secretary

Cyprus
Cyprus College Research Center
Bambos Papageorgiou, Head of Socioeconomic
and Academic Research
The Cyprus Development Bank
Maria Markidou-Georgiadou, Manager, International
Banking Services Unit and Business Development
Czech Republic
CMC Graduate School of Business
Tomas Janca, Executive Director
Denmark
Copenhagen Business School, Department of
International Economics and Management
Lise Peitersen, Administrative Director
Casper Rose, Professor
Ecuador
ESPAE Graduate School of Management,
Escuela Superior Politécnica del Litoral (ESPOL)
Elizabeth Arteaga, Project Assistant
Virginia Lasio, Acting Director
Sara Wong, Professor
Egypt
The Egyptian Center for Economic Studies
Hanaa Kheir-El-Din, Executive Director and Director of Research
Naglaa El Ehwany, Deputy Director and Lead Economist
Malak Reda, Senior Economist
Estonia
Estonian Institute of Economic Research
Evelin Ahermaa, Head of Economic Research Sector
Marje Josing, Director
Estonian Development Fund
Kitty Kubo, Head of Foresight
Ott Pärna, Chief Executive Officer
Ethiopia
African Institute of Management, Development and Governance
Tegegne Teka, General Manager
Finland
ETLA—The Research Institute of the Finnish Economy
Petri Rouvinen, Research Director
Pasi Sorjonen, Head of the Forecasting Group
Pekka Ylä-Anttila, Managing Director
France
HEC School of Management, Paris
Bertrand Moingeon, Professor and Deputy Dean
Bernard Ramanantsoa, Professor and Dean
Gambia, The
Gambia Economic and Social Development Research
Institute (GESDRI)
Makaireh A. Njie, Director
Georgia
Business Initiative for Reforms in Georgia
Giga Makharadze, Founding Member of the Board of Directors
Tamar Tchintcharauli, Executive Director
Mamuka Tsereteli, Founding Member of the Board of Directors
Germany
WHU - Otto Beisheim School of Management, Vallendar
Ralf Fendel, Professor of Monetary Economics
Michael Frenkel, Professor, Chair of Macroeconomics
and International Economics
Ghana
Association of Ghana Industries (AGI)
Carlo Hey, Project Manager
Cletus Kosiba, Executive Director
Tony Oteng-Gyasi, President

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Guatemala
FUNDESA
Edgar A. Heinemann, President of the Board of Directors
Pablo Schneider, Economic Director
Juan Carlos Zapata, General Manager
Guyana
Institute of Development Studies, University of Guyana
Karen Pratt, Research Associate
Clive Thomas, Director
Hong Kong SAR
Hong Kong General Chamber of Commerce
David O’Rear, Chief Economist
Federation of Hong Kong Industries
Alexandra Poon, Director
The Chinese General Chamber of Commerce
Hungary
KOPINT-TÁRKI Economic Research Ltd.
Ágnes Nagy, Project Manager
Éva Palócz, Chief Executive Officer
Iceland
Innovation Center Iceland
Karl Fridriksson, Managing Director of Human Resources
and Services
Rosa Signy Gisladottir, Manager, Marketing and Media Relations
Thorsteinn I. Sigfusson, Director
India
Confederation of Indian Industry (CII)
Chandrajit Banerjee, Director General
Tarun Das, Chief Mentor
Virendra Gupta, Head, International and Trade Fairs
Indonesia
Center for Industry, SME & Business Competition Studies,
University of Trisakti
Tulus Tambunan, Professor and Director
Iran, Islamic Republic of
The Centre for Economic Studies and Surveys (CESS),
Iran Chamber of Commerce, Industries and Mines
Hammed Roohani, Director
Ireland
Competitiveness Survey Group, Department of Economics,
University College Cork
Eleanor Doyle, Professor, Department of Economics
Niall O’Sullivan
Bernadette Power
National Competitiveness Council
Adrian Devitt, Manager
Caoimhe Gavin, Policy Advisor
Gráinne Greehy, Graduate Trainee
Israel
Manufacturers’ Association of Israel (MAI)
Shraga Brosh, President
Dan Catarivas, Director
Yehuda Segev, Managing Director
Italy
SDA Bocconi School of Management
Secchi Carlo, Full Professor of Economic Policy, Bocconi University
Paola Dubini, Associate Professor, Bocconi University
Francesco A. Saviozzi, SDA Assistant Professor,
Strategic and Entrepreneurial Management Department

Jamaica
Mona School of Business (MSB), The University of the
West Indies
Patricia Douce, Project Administrator
Evan Duggan, Executive Director and Professor
William Lawrence, Director, Professional Services Unit

Partner Institutes

Greece
SEV Hellenic Federation of Enterprises
Michael Mitsopoulos, Coordinator, Research and Analysis
Thanasis Printsipas, Economist, Research and Analysis

Japan
Hitotsubashi University, Graduate School of International
Corporate Strategy (ICS)
in cooperation with Keizai Doyukai Keizai (Japan Association
of Corporate Executives)
Yoko Ishikura, Professor
Kiyohiko Ito, Vice-President and General Manager for Policy
Studies, Keizai Doyukai
Jordan
Ministry of Planning & International Cooperation
Jordan National Competitiveness Team
Hiba Abu Taleb, Primary Researcher
Hussein Abwini, Primary Researcher
Kawthar Al-Zou’bi, Primary Researcher
Kazakhstan
JSC “National Analytical Centre of the Government and the
National Bank of the Republic of Kazakhstan”
Ayana Manasova, Chairperson
Aibek Baisakalov, Expert Analyst
Kenya
Institute for Development Studies, University of Nairobi
Mohamud Jama, Director and Associate Professor
Paul Kamau, Research Fellow
Dorothy McCormick, Associate Professor
Korea, Republic of
College of Business School, Korea Advanced Institute of
Science and Technology – KAIST
Ingoo Han, Senior Associate Dean and Professor
Ravi Kumar, Dean and Professor
Youjin Sung, Manager, Exchange Programme
Kuwait
Economics Department, Kuwait University
Abdullah Alsalman, Assistant Professor
Mohammed El-Sakka, Professor
Reyadh Faras, Assistant Professor
Kyrgyz Republic
Economic Policy Institute “Bishkek Consensus”
Lola Abduhametova, Program Coordinator
Marat Tazabekov, Chairman
Latvia
Institute of Economics, Latvian Academy of Sciences
Helma Jirgena, Director
Irina Curkina, Researcher
Lesotho
Mohloli Chamber of Business
Semethe Raleche, Chief Executive Officer
Libya
National Economic Development Board
Entisar Elbahi, Director, Relations and Supported Services
Lithuania
Statistics Lithuania
Ona Grigiene, Head, Economical Survey Division
˘
Algirdas Semeta,
Director General
Luxembourg
Chamber of Commerce of the Grand Duchy of Luxembourg
François-Xavier Borsi, Attaché, Economic Department
Marc Wagener, Attaché, Economic Department
Carlo Thelen, Chief Economist, Member of the Managing Board

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

vii

Partner Institutes

Macedonia, FYR
National Entrepreneurship and Competitiveness Council (NECC)
Dejan Janevski, Project Coordinator
Zoran Stavreski, President of the Managing Board
Saso Trajkoski, Executive Director

Montenegro
Institute for Strategic Studies and Prognoses (ISSP)
Maja Drakic, Project Manager
Petar Ivanovic, Chief Executive Officer
Veselin Vukotic, President

Madagascar
Centre of Economic Studies, University of Antananarivo
Pépé Andrianomanana, Director
Razato Raharijaona Simo, Executive Secretary

Morocco
Université Hassan II, LASAARE
Fouzi Mourji, Professor of Economics

Malawi
Malawi Confederation of Chambers of Commerce and Industry
Chancellor L. Kaferapanjira, Chief Executive Officer
Malaysia
Institute of Strategic and International Studies (ISIS)
Tan Sri Mohamed Jawhar Hassan, Chairman and
Chief Executive Officer
Mahani Zainal Abidin, Director-General
Steven C.M. Wong, Assistant Director-General
Malaysia Productivity Corporation (MPC)
Dato’ Nik Zainiah Nik Abd. Rahman, Director General
Lee Saw Hoon, Senior Director
Mali
Groupe de Recherche en Economie Appliquée et
Théorique (GREAT)
Massa Coulibaly, Coordinator
Malta
Competitive Malta - Foundation for National Competitiveness
Margrith Lutschg-Emmenegger, Vice President
Adrian Said, Chief Coordinator
Caroline Sciortino, Research Coordinator

viii

Mauritania
Centre d’Information Mauritanien pour le Développement
Economique et Technique (CIMDET/CCIAM)
Khira Mint Cheikhnani, Director
Lô Abdoul, Consultant and Analyst
Habib Sy, Analyst
Mauritius
Joint Economic Council of Mauritius
Raj Makoond, Director
Board of Investment
Dev Chamroo, Director, Planning & Policy
Manisha Dookhony, Manager, Planning & Policy
Raju Jaddoo, Managing Director
Mexico
Center for Intellectual Capital and Competitiveness
Erika Ruiz Manzur, Executive Director
René Villarreal Arrambide, President and Chief Executive Officer
Jesús Zurita González, General Director
Instituto Mexicano para la Competitividad (IMCO)
Gabriela Alarcon Esteva, Economist
Manuel J. Molano Ruiz, Deputy General Director
Roberto Newell Garcia, General Director
Ministry of the Economy
Felipe Duarte Olvera, Undersecretary for Competitiveness
and Standardization
Gerardo de la Peña, Technical Secretary for Competitiveness
Jose Antonio Torre, Chief of Staff, ProMéxico Trade & Investment
Paulo Esteban Alcaraz, Research Director, ProMéxico
Trade & Investment
Mongolia
Open Society Forum (OSF)
Munkhsoyol Baatarjav, Manager of Economic Policy
Erdenejargal Perenlei, Executive Director

Mozambique
EconPolicy Research Group, Lda.
Peter Coughlin, Director
Donaldo Miguel Soares, Researcher
Ema Marta Soares, Assistant
Namibia
Namibian Economic Policy Research Unit (NEPRU)
Lameck Odada, Consultant
Klaus Schade, Principal Researcher
Nepal
Centre for Economic Development and Administration (CEDA)
Ramesh Chandra Chitrakar, Professor and Director of Research
Menaka Rajbhandari Shrestha, Researcher
Santosh Kumar Upadhyaya, Researcher
Netherlands
Erasmus Strategic Renewal Center,
Erasmus University Rotterdam
Frans A. J. Van den Bosch, Professor
Henk W. Volberda, Professor
New Zealand
Business New Zealand
Marcia Dunnett, Manager, Sector Groups
Phil O’Reilly, Chief Executive
The New Zealand Institute
Rick Boven, Director
Benedikte Jensen, Research Director
Nigeria
Nigerian Economic Summit Group (NESG)
Felix Ogbera, Associate Director, Research
Sam Ohuabunwa, Chairman
Chris Okpoko, Senior Consultant, Research
Norway
BI Norwegian School of Management
Eskil Goldeng, Researcher
Torger Reve, Professor
Oman
The International Research Foundation
Salem Ben Nasser Al-Ismaily, Chairman
Mehdi Bin Ali Bin Juma, Expert for
Economic Research, the Omani Centre for Investment
Promotion & Export Development (OCIPED)
Pakistan
Competitiveness Support Fund
Arthur Bayhan, Chief Executive Officer
Stephen Manuel, Manager Media & Communication
Imran Naeem Ahmad, Communication Specialist
Paraguay
Centro de Análisis y Difusión de Economia Paraguaya (CADEP)
Dionisio Borda, Research Member
Fernando Masi, Director
María Belén Servín, Research Member
Peru
Centro de Desarrollo Industrial (CDI), Sociedad Nacional
de Industrias
Néstor Asto, Project Director
Luis Tenorio, Executive Director

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Mundo. Professor Beat Bechtold. Director Serbia Center for Advanced Economic Studies (CEVES) Jasna Atanasijevic. Manager. Projects Director Ireneusz Tomczak. Inc. Fey. Chairman J. Professor María Luisa Blázquez. Technology and Law (ES-HSG) Franz Jaeger. Member of the CEVES Council of Directors Singapore Economic Development Board Lim Hong Khiang. Researcher. Deputy Director Poland The Economic Institute. Research Officer Puerto Rico Puerto Rico 2000. Professor and Executive Director Lucas Katera. Deputy Governor for Investment Khaldon Mahasen. Chief Operating Officer Spain IESE Business School. International Center for Competitiveness Antoni Subirà.P. Chief Executive Officer Vic Van Vuuren. Director Taiwan. General Director Sri Lanka Institute of Policy Studies Manoj Thibbotuwawa. Research Assistant Forum de Administradores de Empresas (FAE) Pedro do Carmo Costa. Executive School of Management. Chief Economist Mark P. Researcher Alikul Isoev. Investment Performance Assessment Senegal Centre de Recherches Economiques Appliquées (CREA). Director Michael Spicer. Suzette M. Stockholm School of Economics Christian Ketels. Vice President of the Board of Directors Slovenia Institute for Economic Research Peter Stanovnik. Head. Deputy Director Piotr Boguszewski. Planning Slovak Republic Business Alliance of Slovakia (PAS) Robert Kicina. Director. Member of the Board of Directors Adilia Lisboa. Member of the CEVES Council of Directors Dus˘ ko Vasiljevic. The National Bank of Poland Mateusz Pipien. Chairman of the Board Warsaw School of Economics Bogdan Radomski. Research Officer Ruwan Jayathilaka. Head. Director Planning 2 Chua Kia Chee. Director. Senior Researcher. Faculty of Economics Art Kovac˘ic˘. Advisor Management Observatory Monika Nowacka. Executive Director Russian Federation Bauman Innovation Alexei Prazdnitchnykh. Research and Statistics Unit Cheng Wai San. Professor. Project Manager Syria Ministry of Economy and Trade Amer Housni Louitfi. Russia Igor Dukeov. Principal. Opulencia. Hung. Area Principal Carl F. Sociologist and Economist Tanzania Research on Poverty Alleviation (REPOA) Joseph Semboja. Director Ol’ga Es’kina. Executive Yuan Tain-Jy Chen. B. Senior Researcher University of Ljubljana Mateja Drnovs˘ek. Gallen. Economic Research Department Chung Chung Shieh. Program Coordinator Liviu Voinea. Executive Director Martin Toth. Economist Romania Group of Applied Economics (GEA) Anca Rusu. Faculty of Economics Ales˘ Vahc˘ic˘. China Council for Economic Planning and Development. Associate Professor Katerina Marandi.Philippines Makati Business Club Alberto A. Associação para o Desenvolvimento da Engenharia Ilídio António de Ayala Serôdio. Professor. Minister of Economy and Trade State Planning Commission Tayseer Al-Ridawi. Director Zbigniew Zólkiewski. Economic Research Department Tajikistan The Center for Sociological Research “Zerkalo” Qahramon Baqoev. Chief Executive Officer Business Unity South Africa Jerry Vilakazi. Jimenez. Faculty of Business Sciences South Africa Business Leadership South Africa Friede Dowie. Researcher Suriname Institute for Development Oriented Studies (IDOS) Ashok Hirschfeld. President Francisco Montalvo Fiol. Project Coordinator The Ceylon Chamber of Commerce Harin Malwatte. Secretary General Qatar Qatari Businessmen Association (QBA) Issa Abdul Salam Abu Issa. Commissioned Research Cornel Jahari. University of Dakar Diop Ibrahima Thione. Senior Research Fellow Örjan Sölvell. Associate Professor Portugal PROFORUM. Associate Dean of Research Saudi Arabia National Competitiveness Center (NCC) Awwad Al-Awwad. Commissioned Research Department The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum ix . Head of State Planning Commission Syrian Enterprise Business Center (SEBC) Tamer Abadi. Professor Switzerland University of St. Executive Director Michael B. Krishnadath. Lim. Secretary-General Ahmed El-Shaffee. President Sweden Center for Strategy and Competitiveness. Research Associate Alessandro Cembalo. Researcher. Qualitative Research John R. Consultant Stockholm School of Economics.

Lecturer The Competitiveness Company Rolph Balgobin. Latin American Center for Competitiveness and Sustainable Development (CLACDS) Arturo Condo. Project Specialist x Uganda Makerere Institute of Social Research. Coordinator Zimbabwe Graduate School of Management. Makerere University Robert Apunyo. Rector Lawrence Pratt. Executive Director Khawla Belqazi. University of Zimbabwe A. Executive Director Balraj Kistow. Faculty of Economics Thailand Development Research Institute (TDRI) Somchai Jitsuchon. Honduras. Special Projects Manager United Kingdom LSE Enterprise Ltd. Senior Researcher Timor-Leste Timor-Leste Development Agency (ETDA) Harun Y. Costa Rica. Executive Director Litsay Guerrero. Head of Department Trieu Thanh Son. Zayed University Nico Vellinga. Boavida. Hawkins. President Phan Thanh Ha. Department of Macroeconomic Management Institute for Development Studies in HCMC (HIDS) Nguyen Trong Hoa. CLACDS Luis Reyes. Nicaragua. Senior Research Fellow Toemsakdi Krishnamra. Dominican Republic. Graduate Researcher Uruguay Universidad ORT Isidoro Hodara. El Salvador. Department of Macroeconomic Management Pham Hoang Ha. CLACDS Marlene de Estrella. Staff Development Fellow Jolly Kamwanga. Research Associate Delius Asiimwe. University of Zambia Mutumba M. Project Coordinator Robyn Klingler.M. Manager. Professor Bolivia. Executive MBA Programme Director Anders Paalzow. Research Director Chalongphob Sussangkarn. Leading Economist United Arab Emirates Economic & Policy Research Unit (EPRU). Director of External Relations Latvia. Director. Director Patricia Funjika. Senior Research Fellow Catherine Ssekimpi. Researcher Zambia Institute of Economic and Social Research (INESOR). Deputy Director. Panama INCAE Business School. Rector Ukraine CASE Ukraine. Director Tunisia Institut Arabe des Chefs d’Entreprises Majdi Hassen.Partner Institutes Thailand Sasin Graduate Institute of Business Administration. Ecuador. Lithuania Stockholm School of Economics in Riga Karlis Kreslins. Research Associate Vietnam Central Institute for Economic Management (CIEM) Dinh Van An. Director Trinidad and Tobago Arthur Lok Jack Graduate School of Business Miguel Carillo. President Turkey TUSIAD Sabanci University Competitiveness Forum Dilek Cetindamar. Professor and President Du Phuoc Tan.Venezuelan Council for Investment Promotion Gladis Genua. Professor Dubai Competitiveness Council Adel Alfalasi. Survey Field Officer Januario Mok. Professor Venezuela CONAPRI . Chulalongkorn University Pongsak Hoontrakul. Executive Director Vladimir Dubrovskiy. Survey Supervisor Palmira Pires. Director of Sasin Piyachart Phiromswad. London School of Economics and Political Science Adam Austerfield. Project Director Jane Lac. Senior Researcher. Distinguished Fellow Yos Vajragupta. Economic Affairs The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Project Manager. Executive Counsellor Chekib Nouira. Bull. Director and Professor Funda Kalemci. Center for Social and Economic Research Dmytro Boyarchuk.

as well as various regional and country studies. Margareta Drzeniek Hanouz.The Report is a contribution to enhancing the understanding of the key factors determining economic growth and to explaining why some countries are more successful than others in raising income levels and opportunities for their respective populations. we would like to convey our sincere gratitude to all the business executives around the world who took the time to participate in our Executive Opinion Survey and whose valuable input made the publication of this Report possible.The Global Information Technology Report. Appreciation also goes to Robert Greenhill. many are now facing slumping demand for their export products along with falling commodity prices.Thierry Geiger. In addition. and The Travel & Tourism Competitiveness Report. rising unemployment. Irene Mia. Head of the Global Competitiveness Network.The Global Gender Gap Report. thus providing the most comprehensive assessment of its kind. engendering massive contractions in consumer demand. it is more important than ever for countries to put into place strong fundamentals underpinning economic growth and development. and mounting protectionist pressures worldwide. Policymakers are presently struggling with ways of managing these new economic challenges while preparing their economies to perform well in a future economic landscape characterized by growing uncertainty. significant reductions in foreign investment and remittances. for their support in this important venture. Carissa Sahli. This year’s Report features a total of 133 economies. and a more general liquidity shortage. this Report would have not been possible without the hard work and enthusiasm of our network of over 150 Partner Institutes worldwide who carry out the Executive Opinion Survey. We thank the Africa Commission and FedEx. and Eva Trujillo Herrera. Chief Business Officer at the Forum. for the past 30 years. Concurrent complementary publications include The Financial Development Report.What began as a financial crisis in a handful of industrialized economies continues to spill over into the real economy.The strong interdependence among the worlds’ economies makes this a truly global economic crisis in every sense.The Global Enabling Trade Report.The Report contains a detailed profile for each of the economies featured in the study as well as an extensive section of data tables with global rankings covering over 100 indicators. which produces a number of research studies that truly mirror the increased integration and complexity of the world economy. This Report remains the flagship publication within the Forum’s Global Competitiveness Network. In a difficult global economic environment. Finally. which provides the basis of this Report. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum xi . Pearl Samandari. Developing countries have not been spared from its fallout. who has provided ongoing intellectual support of our competitiveness research. The Global Competitiveness Report could not have been put together without the thought leadership of Professor Xavier Sala-i-Martin. played a facilitating role in this process by providing detailed assessments of the productive potential of nations worldwide. and Jennifer Blanke. World Economic Forum This year’s Global Competitiveness Report is published against the backdrop of the deepest global economic slowdown in generations. as well as team members Ciara Browne. our partners in this Report.Preface Preface KLAUS SCHWAB Executive Chairman. hence it offers policymakers and business leaders an important tool in the formulation of improved economic policies and institutional reforms.The World Economic Forum has. at Columbia University.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

Part 1 Measuring Competitiveness The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

the World Economic Forum has based its competitiveness analysis on the Global Competitiveness Index (GCI). Banks have been bailed out or nationalized on an unprecedented scale to buffer the immediate impact of the financial system’s collapse. All over the world governments have taken an active stance in addressing the crisis and the ensuing recession. A competitivenesssupporting economic environment can help national economies to weather business cycle downturns and ensure that the mechanisms enabling solid economic performance going into the future are in place.The Global Competitiveness Index 2009–2010: Contributing to Long-Term Prosperity amid the Global Economic Crisis XAVIER SALA-I-MARTIN JENNIFER BLANKE MARGARETA DRZENIEK HANOUZ THIERRY GEIGER IRENE MIA World Economic Forum The global economy continues to weather the most difficult climate in generations. Although the developing world at first seemed to be spared from the fallout of this crisis.What began as a financial crisis in the United States and the United Kingdom quickly turned into the largest global recession in decades. policymakers are being confronted with new economic management challenges. many countries are now facing slumping demand for their export products. thus stimulating discussion on strategies to overcome them. which captures the microeconomic and macroeconomic foundations of national competitiveness. a highly comprehensive index. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. a global liquidity shortage has negatively impacted access to finance for companies and governments alike.1 3 . Since 2005. Our goal over the years has been to provide benchmarking tools for business leaders and policymakers to identify obstacles to improved competitiveness. Competitive economies are those that have in place factors driving the productivity enhancements on which their present and future prosperity is built.1: The Global Competitiveness Index 2009–2010 CHAPTER 1. Moreover. In this context.These developments have led observers to question the prevailing paradigm regarding the optimal level of state involvement in the economy. For the past three decades. rising unemployment. and mounting protectionist pressures worldwide. our work serves as a critical reminder of the importance of taking into account the consequences of our present actions on future prosperity. the World Economic Forum’s annual competitiveness reports have examined the many factors enabling national economies to achieve sustained economic growth and long-term prosperity.World GDP is expected to contract by a record 2.1 engendering massive declines in consumer demand. Today’s difficult economic environment underscores the importance of not losing sight of long-term competitiveness fundamentals amid short-term urgencies.These emergency measures have been complemented by large stimulus packages and countercyclical policies intended to support the economy and facilitate recovery.5 percent in 2009 as the financial crisis continues to spill over into the real economy. this decline is coupled with falling commodity prices and significant reductions in foreign investment and remittances. In the current challenging economic environment.

firm sophistication. and governments interact to generate income and wealth in the economy. policies. In other words.Well-developed infrastructure reduces the effect of distance between regions. The concept of competitiveness thus involves static and dynamic components: although the productivity of a country clearly determines its ability to sustain its level of income.5 The role of institutions goes beyond the legal framework. particularly among countries that have already put into place many of the elements driving productivity. Because the rates of return are the fundamental drivers of the growth rates of the economy.7 Proper management of the public finances is also critical to ensuring trust in the national business environment.8 Private-sector transparency is indispensable to business. corruption. dishonesty in dealing with public contracts. and the political dependence of the judicial system impose significant economic costs to businesses and slow the process of economic development. we do not necessarily see large swings in comp-etitiveness rankings. Government attitudes toward markets and freedoms. has highlighted the relevance of accounting and reporting standards and transparency for preventing fraud and mismanagement.2 macroeconomic stability. a more-competitive economy is one that is likely to grow faster in the medium to long run. ensuring good governance. or intellectual property are unwilling to invest in the improvement and upkeep of their property if their rights as owners are insecure. owners of land. along with numerous corporate scandals. in turn. The GCI captures this open-ended dimension by providing a weighted average of many different components. Each of these conjectures rests on solid theoretical foundations. An economy is well served by businesses that are run honestly. more recently.The importance of a solid institutional environment has become even more apparent during the current crisis.We group all these components into 12 pillars of competitiveness: First pillar: Institutions The institutional environment is determined by the legal and administrative framework within which individuals.The productivity level also determines the rates of return obtained by investments in an economy. in fact. simultaneously true. The recent global financial crisis. the rule of law.9 Second pillar: Infrastructure Extensive and efficient infrastructure is an essential driver of competitiveness. private institutions are also an important element in the process of wealth creation. with the result of truly integrating the national market and connecting it at low cost to markets in other countries and regions. given the increasingly direct role played by the state in the economy of many countries. technological progress (whether created within the country or adopted from abroad).1. sets the sustainable level of prosperity that can be earned by an economy. corporate shares. good governance. each of which reflects one aspect of the complex concept that we call competitiveness.1: The Global Competitiveness Index 2009–2010 4 We define competitiveness as the set of institutions. are also very important: excessive bureaucracy and red tape. where managers abide by strong ethical practices in their dealings with the government. Economists have long tried to understand what determines the wealth of nations. more-competitive economies tend to be able to produce higher levels of income for their citizens. In addition. despite the present global economic crisis. and many others. as it is an important factor determining the location of economic activity and the kinds of activities or sectors that can develop in a particular economy. is that they are not mutually exclusive—two or more of them could be true at the same time. which is one of the key factors explaining an economy’s growth potential.4 It influences investment decisions and the organization of production and plays a central role in the ways in which societies distribute the benefits and bear the costs of development strategies and policies. other firms. and factors that determine the level of productivity of a country.We include indicators capturing the quality of government management of the public finances to complement the measures of macroeconomic stability captured by pillar 3 below.The central point. lack of transparency and trustworthiness. and the efficiency of its operations. It is critical for ensuring the effective functioning of the economy. For example. and the public. transparent and wellfunctioning institutions. market size.6 overregulation. demand conditions. the quality and extensiveness of infrastructure networks significantly impact economic growth and reduce income inequalities and poverty in a variety of The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Hundreds of econometric studies show that many of these conjectures are. The quality of institutions has a strong bearing on competitiveness and growth. and maintaining investor and consumer confidence. The level of productivity.This attempt has ranged from Adam Smith’s focus on specialization and the division of labor to neoclassical economists’ emphasis on investment in physical capital and infrastructure and. it is also one of the central determinants of the returns to investment. Although the economic literature has mainly focused on public institutions. however. and can be brought about through the use of standards as well as auditing and accounting practices that ensure access to information in a timely manner. to interest in other mechanisms such as education and training.3 This also can partly explain why. The 12 pillars of competitiveness The determinants of competitiveness are many and complex. firms.

are those that thrive. competitiveness is hindered by distortionary or burdensome taxes and by restrictive and discriminatory rules on foreign direct investment (FDI)— limiting foreign ownership—as well as on international trade. Economies also depend on electricity supplies that are free of interruptions and shortages so that businesses and factories can work unimpeded. and air transport—enable entrepreneurs to get their goods and services to market in a secure and timely manner. It is important to note that this pillar focuses only on macroeconomic stability. a well-developed transport and communications infrastructure network is a prerequisite for the ability of less-developed communities to connect to core economic activities and basic services. Healthy market competition. and facilitate the movement of workers to the most suitable jobs. today’s globalizing economy requires economies to nurture pools of well-educated workers who are able to adapt rapidly to their changing environment.The best possible environment for the exchange of goods requires a minimum of impediments to business activity through government intervention. Effective modes of transport for goods. Market efficiency also depends on demand conditions such as customer orientation and buyer sophistication.Third pillar: Macroeconomic stability The stability of the macroeconomic environment is important for business and. which is increasingly important in today’s economy. considerations. both domestic and foreign.1: The Global Competitiveness Index 2009–2010 ways. Basic education increases the efficiency of each individual worker. people. Fifth pillar: Higher education and training Quality higher education and training is crucial for economies that want to move up the value chain beyond simple production processes and products. therefore. Fourth pillar: Health and primary education A healthy workforce is vital to a country’s competitiveness and productivity. For example. it will be essential to avoid significant reductions in resource allocation to these critical areas. as sick workers are often absent or operate at lower levels of efficiency. and services—such as quality roads. workers who have received little formal education can carry out only simple manual work and find it much more difficult to adapt to more advanced production processes and techniques. customers in some countries may be more demanding than in others.Workers who are ill cannot function to their potential and will be less productive. For the longer term. this pillar takes into account the quantity and quality of basic education received by the population. as it forces companies The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 5 .Yet limiting global trade would not only amplify the current downturn. railroads.The government cannot provide services efficiently if it has to make high-interest payments on its past debts.The extent of staff training is also taken into consideration because of the importance of vocational and continuous on-the-job training—which is neglected in many economies—for ensuring a constant upgrading of workers’ skills to the changing needs of the evolving economy. but in the longer term it would also reduce growth—in particular in developing countries. This qualitative dimension is captured in the public institutions subpillar described above. and that decisions made by economic actors take into account all available relevant information. Moreover. ports. 1. as well as to ensure that these goods can be most effectively traded in the economy.This can create an important competitive advantage. For cultural reasons. Investment in the provision of health services is thus critical for clear economic. is important in driving market efficiency and thus business productivity. Sixth pillar: Goods market efficiency Countries with efficient goods markets are well positioned to produce the right mix of products and services given supply-and-demand conditions.10 In this regard. so it does not directly take into account the way in which public accounts are managed by the government. Running fiscal deficits limits the government’s future ability to react to business cycles.The economic slowdown. given the central role of infrastructure development in many of the national stimulus packages in countries such as the United States and China. the economy cannot grow in a sustainable manner unless the macro environment is stable. Finally.11 Although it is certainly true that macroeconomic stability alone cannot increase the productivity of a nation. is important for the overall competitiveness of a country. producing goods demanded by the market. it is also recognized that macroeconomic disarray harms the economy. given that government budgets in many countries will need to be cut to reduce public debt brought about by the present stimulus spending. with the consequent drop in trade and rise in unemployment. by ensuring that the most efficient firms. has increased the pressure on governments to adopt measures to protect domestic firms and jobs.13 In particular.12 In addition to health. In sum. Firms cannot operate efficiently when inflation rates are out of hand. which increases overall economic efficiency by helping to ensure that businesses can communicate. a solid and extensive telecommunications network allows for a rapid and free flow of information. Poor health leads to significant costs to business. as well as moral.This is an area where the crisis may prove to have positive longer-term effects.This pillar measures secondary and tertiary enrollment rates as well as the quality of education as assessed by the business community. with firms finding it difficult to move up the value chain by producing more-sophisticated or value-intensive products. Lack of basic education can therefore become a constraint on business development.

Among the main sources of foreign technology. Tenth pillar: Market size The size of the market affects productivity because large markets allow firms to exploit economies of scale. exports can be thought of as a substitute for domestic demand in determining the size of the market for the firms of a country. An efficient financial sector allocates the resources saved by a nation’s citizens as well as those entering the economy from abroad to their most productive uses. In particular. the general sense is that trade has a positive effect on growth. In this respect.14 Efficient labor markets must also ensure a clear relationship between worker incentives and their efforts.That is why we separate technological readiness from innovation. especially for countries with small domestic markets.Therefore ICT access (including the presence of an ICT-friendly regulatory framework) and usage are included in the pillar as essential components of economies’ overall level of technological readiness. FDI often plays a key role. and other financial products. which is captured in the 12th pillar below.17 given the critical spillovers to the other economic sectors and their role as efficient infrastructure for commercial transactions. to increased productivity.18 It is important to note that. Seventh pillar: Labor market efficiency The efficiency and flexibility of the labor market are critical for ensuring that workers are allocated to their most efficient use in the economy and provided with incentives to give their best effort in their jobs. recovery from the present downturn will require that countries increase the amount of goods that they purchase from each other. rather than to the politically connected.1: The Global Competitiveness Index 2009–2010 to be more innovative and customer oriented and thus imposes the discipline necessary for efficiency to be achieved in the market. the markets available to firms have been constrained by national borders. Business sophistication concerns the quality of a country’s overall business networks as well as the quality of individual firms’ operations and The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Ninth pillar: Technological readiness This pillar measures the agility with which an economy adopts existing technologies to enhance the productivity of its industries. and—as has been made so clear recently—financial markets need appropriate regulation to protect investors and other actors in the economy at large.1. information and communication technologies (ICT) have evolved into the “general purpose technology” of our time. in this context. In this context. This has been once again underscored by the liquidity crunch experienced by businesses and the public sector in developing and developed countries in recent times. the level of technology available to firms in a country needs to be distinguished from the country’s ability to innovate and expand the frontiers of knowledge.The central point is that the firms operating in the country have access to advanced products and blueprints and the ability to use them.15 Eighth pillar: Financial market sophistication 6 The present economic crisis has highlighted the central role of a sound and well-functioning financial sector for economic activity. Eleventh pillar: Business sophistication Business sophistication is conducive to higher efficiency in the production of goods and services. thus enhancing a nation’s competitiveness.19 Thus. in turn. international markets have become a substitute for domestic markets.There is vast empirical evidence showing that trade openness is positively associated with growth.9 trillion in 2007. well-regulated securities exchanges. venture capital. Traditionally. we give credit to exportdriven economies and geographic areas (such as the European Union) that are broken into many countries but have one common market. In the era of globalization. By including both domestic and foreign markets in our measure of market size. Labor markets must therefore have the flexibility to shift workers from one economic activity to another rapidly and at low cost. it is particularly worrisome that. as well as the best use of available talent—which includes equity in the business environment between women and men. technology has increasingly become an important element for firms to compete and prosper. especially for developing countries. especially for small countries. FDI has declined by an estimated 15 percent in 2008 with further deterioration expected for 2009. whether the technology used has or has not been developed within national borders is irrelevant for its effect on competitiveness. and to allow for wage fluctuations without much social disruption. Further lowering barriers to trade would support this process. Even if some recent research casts doubts on the robustness of this relationship. It channels resources to those entrepreneurial or investment projects with the highest expected rates of return. thus spurring demand. the banking sector needs to be trustworthy and transparent. Business investment is critical to productivity. In order to fulfill all those functions.This development is due to shortages in finance and a more riskaverse attitude of businesses.16 In today’s globalized world.Therefore economies require sophisticated financial markets that can make capital available for private-sector investment from such sources as loans from a sound banking sector. A thorough and proper assessment of risk is therefore a key ingredient.20 In today’s highly interdependent world. after four years of solid growth resulting in a record global FDI stock of US$1.This leads.

this is no longer sufficient to increase productivity. as countries move into the innovation-driven stage. financial. At this The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. In the long run. measures are reported for the 12 pillars separately because offering a more disaggregated analysis can be more useful to countries and practitioners: such an analysis gets closer to the actual areas in which a particular country needs to improve. Stages of development and the weighted Index It is clear that different pillars affect different countries differently: the best way for Burkina Faso to improve its competitiveness is not the same as the best way for Switzerland. is important for a variety of reasons. To discern the extent to which the global recession is affecting the longer-term competitiveness of countries.This is because Burkina Faso and Switzerland are in different stages of development: as countries move along the development path. well-functioning labor markets (pillar 7). and goods markets. Finally. In this time of crisis. Individual firms’ operations and strategies (branding.Twelfth pillar: Innovation The final pillar of competitiveness is innovation.When companies and suppliers from a particular sector are interconnected in geographically proximate groups (“clusters”). but they tend to reinforce each other.This requires an environment that is conducive to innovative activity.21 Although less-advanced countries can still improve their productivity by adopting existing technologies or making incremental improvements in other areas. extensive collaboration in research between universities and industry. the presence of high-quality scientific research institutions.The results of this survey are described in Box 1. At this point. 7th. the World Economic Forum carried out a survey of selected experts. and barriers to entry for new firms are reduced. this should not obscure the fact that they are not independent: not only are they related to each other. and the production of unique and sophisticated products) all lead to sophisticated and modern business processes.1: The Global Competitiveness Index 2009–2010 strategies. 7 . standards of living can be expanded only with innovation. and the protection of intellectual property. it will be important to resist pressures to cut back on the R&D spending both at the private and public levels that will be so critical for sustainable growth going into the future. when the more basic sources of productivity improvements have been exhausted to a large extent. supported by both the public and the private sectors. reducing macroeconomic instability. or improving human capital. For example. and 8th pillars) or without extensive and efficient infrastructure (2nd pillar). sophisticated financial markets (pillar 8). Companies compete on the basis of price and sell basic products or commodities. when they must begin to develop more efficient production processes and increase product quality. and is more difficult in economies with inefficient markets (6th. efficiency is heightened. in order to sustain this higher income. well-developed infrastructure (pillar 2). Firms in these countries must design and develop cutting-edge products and processes to maintain a competitive edge.The same is true for the efficiency of the labor. and the ability to harness the benefits of existing technologies (pillar 9). marketing. the presence of a value chain.The quality of a country’s business networks and supporting industries. As wages rise with advancing development. the economy is factor-driven and countries compete based on their factor endowments: primarily unskilled labor and natural resources. greater opportunities for innovation are created. they are able to sustain higher wages and the associated standard of living only if their businesses are able to compete with new and unique products. wages tend to increase and. Appendix A describes the exact composition of the GCI and technical details of its construction. in the first stage. for those that have reached the innovation-driven stage of development. It is particularly important for countries at an advanced stage of development. Maintaining competitiveness at this stage of development hinges primarily on well-functioning public and private institutions (pillar 1). cannot be performed in countries with a poorly educated and poorly trained labor force (5th pillar).22 According to the GCI. Although substantial gains can be obtained by improving institutions. this means sufficient investment in research and development (R&D) especially by the private sector. a large domestic and/or foreign market (pillar 10). efficient goods markets (pillar 6). countries move into the efficiency-driven stage of development. with their low productivity reflected in low wages. which we capture by using indicators of the quantity and quality of local suppliers and the extent of their interaction. a stable macroeconomic framework (pillar 3). Innovation is particularly important for economies as they approach the frontiers of knowledge and the possibility of integrating and adapting exogenous technologies tends to disappear. Although the actual construction of the Index will involve the aggregation of the 12 pillars into a single index. In particular. and a healthy and literate workforce (pillar 4). labor productivity must improve. all these factors eventually seem to run into diminishing returns. building infrastructure. innovation (12th pillar) is not possible in a world without institutions (1st pillar) that guarantee intellectual property rights. The interrelation of the 12 pillars Although the 12 pillars of competitiveness are described separately. competitiveness is increasingly driven by higher education and training (pillar 5).

although all 12 pillars matter to a certain extent for all countries. allowing for different coefficients for each stage of development.1: The Global Competitiveness Index 2009–2010 Figure 1: The 12 pillars of competitiveness Basic requirements • • • • Institutions Infrastructure Macroeconomic stability Health and primary education • • • • • • Higher education and training Goods market efficiency Labor market efficiency Financial market sophistication Technological readiness Market size Key for factor-driven economies Efficiency enhancers Key for efficiency-driven economies Innovation and sophistication factors Key for innovation-driven • Business sophistication • Innovation economies 8 stage. the relative importance of each one depends on a country’s particular stage of development.That is. Implementation of stages of development: Smooth transitions Countries are allocated to stages of development based on two criteria.This widely available measure is used as a proxy for wages.The precise thresholds are shown in Table 2. A second criterion measures the extent to which countries are factor driven. producing new and different goods using the most sophisticated production processes (pillar 11).The first is the level of GDP per capita at market exchange rates. And the innovation and sophistication factors subindex includes the pillars critical to countries in the innovation-driven stage. The specific weights we attribute to each subindex in every stage of development are shown in Table 1. a maximum likelihood regression of GDP per capita was run against each subindex for past years. the pillars are organized into three subindexes. Table 1: Weights of the three main subindexes at each stage of development Factordriven stage (%) Efficiencydriven stage (%) Innovationdriven stage (%) Basic requirements 60 40 20 Efficiency enhancers 35 50 50 5 10 30 Subindex Innovation and sophistication factors To obtain the precise weights. To take this into account.1.The three subindexes are shown in Figure 1. The basic requirements subindex groups those pillars most critical for countries in the factor-driven stage.We proxy this by the share of exports of mineral goods in total exports (goods and services) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . The concept of stages of development is integrated into the Index by attributing higher relative weights to those pillars that are relatively more relevant for a country given its particular stage of development. each critical to a particular stage of development.The efficiency enhancers subindex includes those pillars critical for countries in the efficiency-driven stage. as internationally comparable data for the latter are not available for all countries covered. companies must compete through innovation (pillar 12).23 The rounding of these econometric estimates led to the choice of weights displayed in Table 1.

The concept of competitiveness captures the medium- to longterm productivity and growth prospects of national economies.
In other words, although business cycle movements affect
countries’ short-term growth prospects, as witnessed in the
present economic downturn, they should have no impact on
competitiveness assessments unless they have longer-term
consequences for the competitiveness drivers discussed in
this chapter.
In order to get a sense of the extent to which the global
recession is affecting the longer-term competitiveness of
countries, the World Economic Forum carried out a survey of
selected leading macro and business economists from the
Forum’s economy-related Global Agenda Councils,1 along with
four international associations of business economists.2 A total
of 16 leading economists were surveyed. The survey is intended
to complement the analysis of the Global Competitiveness Index
(GCI) by providing the insight of experts on the matter.
Respondents were asked to rate the degree to which
they believe the present global recession will have a positive or
negative impact, on a scale of 1 (negative) to 7 (positive), on
selected countries, with 4 (the central value) indicating that
the recession will have no impact. They were also asked to
describe the mechanisms by which the recession would have
positive or negative impacts on countries. The 37 countries
included were those ranked in the top 20 of last year’s GCI, and
other key regional economies.
Figure 1 shows the average score for each economy
covered by the exercise (shown by a white dot), as well as
the spread in scores (the highest and lowest scores given,
shown by the blue line). Economies have been grouped in a
number of different clusters according to the perceived impact
of the crisis on their competitiveness perspective (ranging
from slightly positive to negative). In addition, the last columns
display each country’s GCI rank for this year, as well as
changes to the competitiveness rankings since last year for
every economy considered (improvements are indicated by an
upward arrow, declines are represented by downward arrows,
and sideways arrows indicate no change).
The first point to note about the survey results shown in
the figure is that the average assessments are skewed downward, with only five economies above the “no impact” value of
4. In other words, of all countries considered, the experts on
average believe that only Brazil, India, and China (the three
largest BRIC economies), along with Australia and Canada,
are likely to see their competitiveness improving slightly as a
consequence of the global recession. A further two economies
are expected, on average, to see no impact on their competitiveness from the recession (Norway and Hong Kong). For the
remaining 30 economies covered, the average assessment
ranges from slightly negative to negative.
Taking into account the general downward bias of the
results, the average responses to the survey are broadly in
line with the changes in the GCI rankings since last year, with
some exceptions. In particular, Brazil—perceived by the experts
as the country that will likely see its competitiveness most
favorably affected by the crisis—improved 8 places since last

year, continuing to build on an upward trend started in 2007 and
narrowing the competitiveness gap vis-à-vis fellow BRIC
economies India and China. Indeed, all countries in the slightly
positive or no impact groups at the top of the figure either
improve in rank (India, China, Australia, Canada, and Norway),
or remain stable (Hong Kong). The remaining BRIC economy,
Russia, lost 12 places in the GCI assessment; it is also rated
as one of the countries most likely to be negatively affected by
the global crisis. The recession is expected to be particularly
harmful for the competitiveness of Iceland and Spain, the two
countries receiving the lowest average scores in the sample,
both of which also drop in the GCI ranking this year. Yet, for a
handful of countries, the GCI and the economists’ assessment
diverges. This is particularly noticeable within the “negative”
category for Argentina, Hungary, Italy, and Japan, although
the improvements in the GCR ranking since last year remain
somewhat small in all cases.
Another important characteristic of the survey results is
the great variation in responses concerning the likely impact
of the global recession on each country. The blue bars in the
figure show the range of the lowest and highest responses. The
country engendering the greatest agreement, Switzerland, still
includes assessments that range from 2 (negative) to 4 (no
impact). The largest variations are for Latin American countries:
the results for Argentina, Mexico, and Venezuela range from the
worst possible value (1) to the second-to-highest possible value
(6).This demonstrates the extent of uncertainty even among
expert economists on the longer-term impacts of the crisis.
When asked to describe their reasons for pessimism and
optimism for the longer-term outlook, the experts highlighted a
number of factors that could have either positive or negative
impacts on longer-term competitiveness. The reasons for pessimism were related primarily to concerns about excessive government intervention and lack of access to credit. Specific-ally,
experts mentioned enhanced government intervention combined with blurred boundaries among institutions and
rules; the non-optimal allocation of resources to education
and transportation infrastructure through stimulus packages;
massive debts accrued, especially in the West, likely prompting
either sharp public-sector spending cuts or tax increases; the
push for harsher financial regulations that would further hinder
allocation of credit and risk new business investment; and
more general difficulties in obtaining capital for pro-growth
investment.
On the other hand, a number of positive implications for
longer-term competitiveness potential were also noted by the
experts. These include the possible reorientation of export-led
economies to domestic demand and neutral exchange rates;
increased awareness of the need of investment in pro-growth
areas, notably education; lagging institutions brought into international compliance; a rethinking of the US dollar’s impact and
of the consequences of focusing only on the US markets for
many exporters; enhanced incentives to clean up non-competitive enterprises and all sectors that had been kept alive during
the boom period; and a potential push to fix long- overdue
structural problems.
(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Box 1: An expert assessment of national competitiveness prospects

9

Figure 1: Survey of experts results and GCI variation (2009–2010)
GCI
Country/Economy

1

4

7

Impact

China
Australia

SLIGHTLY
POSITIVE

India

49 . . . . . . . . . . . . . . . . . . 1

14 . . . . . . . . . . . . . . . . . . 1

29 . . . . . . . . . . . . . . . . . . 1
15 . . . . . . . . . . . . . . . . . . 3
9 . . . . . . . . . . . . . . . . . . 1

Canada
Norway
Hong Kong SAR

11 . . . . . . . . . . . . . . . . . .—

3 . . . . . . . . . . . . . . . . . . 2

Singapore

6 . . . . . . . . . . . . . . . . . .—

54 . . . . . . . . . . . . . . . . . . 1

Indonesia

28 . . . . . . . . . . . . . . . . . . 1

Saudi Arabia

5 . . . . . . . . . . . . . . . . . . 2

Denmark

12 . . . . . . . . . . . . . . . . . . 5

Taiwan, China

10 . . . . . . . . . . . . . . . . . . 2

Netherlands

1 . . . . . . . . . . . . . . . . . . 1

Switzerland
SLIGHTLY NEGATIVE

Korea, Rep.
Sweden
Egypt
Turkey
United Arab Emirates
South Africa

19 . . . . . . . . . . . . . . . . . . 6
4 . . . . . . . . . . . . . . . . . .—

74 . . . . . . . . . . . . . . . . . . 7

61 . . . . . . . . . . . . . . . . . . 2
23 . . . . . . . . . . . . . . . . . . 8
45 . . . . . . . . . . . . . . . . . .—

17 . . . . . . . . . . . . . . . . . . 3

Austria

18 . . . . . . . . . . . . . . . . . . 1

Belgium

16 . . . . . . . . . . . . . . . . . .—

France

7 . . . . . . . . . . . . . . . . . .—

Germany

60 . . . . . . . . . . . . . . . . . .—

Mexico

2 . . . . . . . . . . . . . . . . . . 1

United States

46 . . . . . . . . . . . . . . . . . . 7

Poland

48 . . . . . . . . . . . . . . . . . . 1

Italy

58 . . . . . . . . . . . . . . . . . . 4

Hungary
NEGATIVE

Russian Federation
United Kingdom
Argentina
Japan

63 . . . . . . . . . . . . . . . . . 12

13 . . . . . . . . . . . . . . . . . . 1
85 . . . . . . . . . . . . . . . . . . 3
8 . . . . . . . . . . . . . . . . . . 1

113 . . . . . . . . . . . . . . . . . . 8

Venezuela

33 . . . . . . . . . . . . . . . . . . 4

Spain

26 . . . . . . . . . . . . . . . . . . 6

Iceland
Note:

Change

56 . . . . . . . . . . . . . . . . . . 8

Brazil

Finland

10

Rank

NONE

1.1: The Global Competitiveness Index 2009–2010

Box 1: An expert assessment of national competitiveness prospects (cont’d.) 

indicates that there has been no change since last year; indicates a positive change;  indicates a negative change.

The data also reveal a difference in the level of pessimism
or optimism of the macroeconomists, who constitute the academic respondents, compared with the business economists,
who are practitioners involved in business activities. As Table
1 shows, the business economists remain measurably more
pessimistic than the academic economists about the impact
of the present crisis on longer-term national competitiveness.
Specifically, while the macroeconomists are on average more
optimistic about the impact on the competitiveness outlook
for 25 countries, the business economists are more optimistic
in only 7 cases. The two groups share the same opinion on
average in 5 cases.

The results of the survey highlight the extent to which
competitiveness is a complex phenomenon that is difficult to
quantify precisely. Importantly, the potential positive effects
of the crisis described by the experts underline the ways in
which countries now have an opportunity to implement reforms
that will place them on a stronger footing to ride out the next
economic crisis and to ensure strong competitiveness going
forward.

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Table 1: Comparison of responses from business economists and macroeconomists

Country/Economy

Austria
Belgium
Denmark
Finland
France
Germany
Hungary
Iceland
Italy
Netherlands
Norway
Poland
Russia
Spain
Sweden
Switzerland
Turkey
United Kingdom
Argentina
Brazil
Canada
Mexico
United States
Venezuela
Australia
China
Hong Kong SAR
India
Indonesia
Japan
Korea, Rep.
Singapore
Taiwan, China
Egypt
Saudi Arabia
South Africa
United Arab Emirates

Business

Macro-

economists

economists

Difference

2.83
3.00
3.43
3.71
3.13
3.13
2.29
1.57
2.63
3.63
4.00
2.57
2.56
2.00
3.00
3.43
3.00
2.50
2.25
4.50
3.88
2.56
2.89
2.50
4.38
4.33
4.00
4.50
3.43
2.29
3.43
3.86
3.57
3.17
3.33
3.33
3.00

3.57
3.43
3.71
3.57
3.29
3.29
3.29
2.43
3.00
3.43
4.00
3.43
3.00
2.71
3.71
3.43
3.57
3.00
3.33
4.33
4.33
3.83
3.29
2.83
4.14
4.29
4.00
4.29
3.86
3.14
3.43
4.00
3.57
3.50
3.83
3.17
3.67

–0.74
–0.43
–0.29
0.14
–0.16
–0.16
–1.00
–0.86
–0.38
0.20
0.00
–0.86
–0.44
–0.71
–0.71
0.00
–0.57
–0.50
–1.08
0.17
–0.46
–1.28
–0.40
–0.33
0.23
0.05
0.00
0.21
–0.43
–0.86
0.00
–0.14
0.00
–0.33
–0.50
0.17
–0.67

Notes

1 More information on the Global Agenda Councils can be found at http://www.weforum.org/en/about/GlobalAgendaCouncils/index.htm.
2 The groups surveyed are the Conference of Business Economists, the National Business Economic Issues Council, the European Council of
Economists, and the Harvard Industrial Economists Group.

and assume that countries that export more than 70
percent of mineral products (measured using a five-year
average) are to a large extent factor driven.24

Table 2: Income thresholds for establishing stages of
development
Stage of development

GDP per capita (in US$)

Stage 1: Factor driven

Transition from Stage 1 to Stage 2
Stage 2: Efficiency driven
Transition from Stage 2 to Stage 3
Stage 3: Innovation driven

< 2,000
2,000–3,000
3,000–9,000
9,000–17,000
> 17,000

Countries falling in between two of the three stages
are considered to be “in transition.” For these countries,
the weights change smoothly as a country develops,
reflecting the smooth transition from one stage of development to another. By introducing this type of transition between stages into the model—that is, by placing
increasingly more weight on those areas that are becoming
more important for the country’s competitiveness as it
develops—the Index can gradually “penalize” those
countries that are not preparing for the next stage.The
classification of countries into stages of development is
shown in Table 3.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Box 1: An expert assessment of national competitiveness prospects (cont’d.)

11

1.1: The Global Competitiveness Index 2009–2010

12

Table 3: List of countries/economies at each stage of development
Stage 1

Transition from 1 to 2

Stage 2

Transition from 2 to 3

Stage 3

Bangladesh
Benin
Bolivia
Burkina Faso
Burundi
Cambodia
Cameroon
Chad
Côte d’Ivoire
Ethiopia
Gambia, The
Ghana
Guyana
Honduras
India
Kenya
Kyrgyz Republic
Lesotho
Madagascar
Malawi
Mali
Mauritania
Mongolia
Mozambique
Nepal
Nicaragua
Nigeria
Pakistan
Philippines
Senegal
Sri Lanka
Tajikistan
Tanzania
Timor-Leste
Uganda
Vietnam
Zambia
Zimbabwe

Algeria
Azerbaijan
Botswana
Brunei Darussalam
Egypt
Georgia
Guatemala
Indonesia
Jamaica
Kazakhstan
Kuwait
Libya
Morocco
Paraguay
Qatar
Saudi Arabia
Syria
Venezuela

Albania
Argentina
Armenia
Bosnia and Herzegovina
Brazil
Bulgaria
China
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Jordan
Macedonia, FYR
Malaysia
Mauritius
Montenegro
Namibia
Panama
Peru
Serbia
South Africa
Suriname
Thailand
Tunisia
Ukraine

Bahrain
Barbados
Chile
Croatia
Hungary
Latvia
Lithuania
Mexico
Oman
Poland
Romania
Russian Federation
Turkey
Uruguay

Australia
Austria
Belgium
Canada
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hong Kong SAR
Iceland
Ireland
Israel
Italy
Japan
Korea, Rep.
Luxembourg
Malta
Netherlands
New Zealand
Norway
Portugal
Puerto Rico
Singapore
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Taiwan, China
Trinidad and Tobago
United Arab Emirates
United Kingdom
United States

Country coverage
One country covered last year, Moldova, is not covered
this year because of a lack of Survey data.This has led
to a decrease in country coverage to a total of 133
economies this year.

The Global Competitiveness Index 2009–2010 rankings
The detailed rankings from this year’s GCI are shown
in Tables 4 through 8. As Table 4 shows, all of the countries in the top 10 remain the same as last year, with
some shifts in rank.The following sections discuss the
findings of the GCI 2009–2010 for the top performers
globally, as well as for a number of selected economies
in each of the five following regions: Europe, Latin

America and the Caribbean, Asia and the Pacific,
Middle East and North Africa, and sub-Saharan Africa.
The reader should note that, as in any benchmarking
exercise of this nature, the data are necessarily subject to
a time lag and do not fully capture economic circumstances at the time of publication. However, this does not
significantly hinder our ability to assess competitiveness,
given its medium- to long-term nature.

Top 10
The GCI results for the top 10 countries show a measurable decline in average score since last year, dropping
from 5.51 out of a possible maximum score of 7 last
year to 5.45 this year. In other words, it appears that in

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

GCI 2009–2010
Country/Economy

Switzerland
United States
Singapore
Sweden
Denmark
Finland
Germany
Japan
Canada
Netherlands
Hong Kong SAR
Taiwan, China
United Kingdom
Norway
Australia
France
Austria
Belgium
Korea, Rep.
New Zealand
Luxembourg
Qatar
United Arab Emirates
Malaysia
Ireland
Iceland
Israel
Saudi Arabia
China
Chile
Czech Republic
Brunei Darussalam
Spain
Cyprus
Estonia
Thailand
Slovenia
Bahrain
Kuwait
Tunisia
Oman
Puerto Rico
Portugal
Barbados
South Africa
Poland
Slovak Republic
Italy
India
Jordan
Azerbaijan
Malta
Lithuania
Indonesia
Costa Rica
Brazil
Mauritius
Hungary
Panama
Mexico
Turkey
Montenegro
Russian Federation
Romania
Uruguay
Botswana
Kazakhstan
Latvia

Rank

Score

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68

5.60
5.59
5.55
5.51
5.46
5.43
5.37
5.37
5.33
5.32
5.22
5.20
5.19
5.17
5.15
5.13
5.13
5.09
5.00
4.98
4.96
4.95
4.92
4.87
4.84
4.80
4.80
4.75
4.74
4.70
4.67
4.64
4.59
4.57
4.56
4.56
4.55
4.54
4.53
4.50
4.49
4.48
4.40
4.35
4.34
4.33
4.31
4.31
4.30
4.30
4.30
4.30
4.30
4.26
4.25
4.23
4.22
4.22
4.21
4.19
4.16
4.16
4.15
4.11
4.10
4.08
4.08
4.06

GCI 2008–2009

GCI 2009–2010

Rank*

Country/Economy

Rank

2
1
5
4
3
6
7
9
10
8
11
17
12
15
18
16
14
19
13
24
25
26
31
21
22
20
23
27
30
28
33
39
29
40
32
34
42
37
35
36
38
41
43
47
45
53
46
49
50
48
69
52
44
55
59
64
57
62
58
60
63
65
51
68
75
56
66
54

Colombia
Egypt
Greece
Croatia
Morocco
Namibia
Vietnam
Bulgaria
El Salvador
Peru
Sri Lanka
Guatemala
Gambia, The
Ukraine
Algeria
Macedonia, FYR
Argentina
Trinidad and Tobago
Philippines
Libya
Honduras
Georgia
Jamaica
Senegal
Serbia
Syria
Dominican Republic
Albania
Armenia
Kenya
Nigeria
Tanzania
Pakistan
Suriname
Benin
Guyana
Ecuador
Bangladesh
Lesotho
Uganda
Bosnia and Herzegovina
Cambodia
Cameroon
Zambia
Venezuela
Ghana
Nicaragua
Côte d’Ivoire
Mongolia
Ethiopia
Malawi
Bolivia
Madagascar
Tajikistan
Kyrgyz Republic
Paraguay
Nepal
Timor-Leste
Mauritania
Burkina Faso
Mozambique
Mali
Chad
Zimbabwe
Burundi

69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133

Score

4.05
4.04
4.04
4.03
4.03
4.03
4.03
4.02
4.02
4.01
4.01
3.96
3.96
3.95
3.95
3.95
3.91
3.91
3.90
3.90
3.86
3.81
3.81
3.78
3.77
3.76
3.75
3.72
3.71
3.67
3.65
3.59
3.58
3.57
3.56
3.56
3.56
3.55
3.54
3.53
3.53
3.51
3.50
3.50
3.48
3.45
3.44
3.43
3.43
3.43
3.42
3.42
3.42
3.38
3.36
3.35
3.34
3.26
3.25
3.23
3.22
3.22
2.87
2.77
2.58

GCI 2008–2009
Rank*

74
81
67
61
73
80
70
76
79
83
77
84
87
72
99
89
88
92
71
91
82
90
86
96
85
78
98
108
97
93
94
113
101
103
106
115
104
111
123
128
107
109
114
112
105
102
120
110
100
121
119
118
125
116
122
124
126
129
131
127
130
117
134
133
132

*The 2008–2009 rank is out of 134 countries. One country covered last year,
Moldova, had to be excluded this year for lack of Survey data.

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Table 4: The Global Competitiveness Index 2009–2010 rankings and 2008–2009 comparisons

13

1.1: The Global Competitiveness Index 2009–2010

14

Table 5: The Global Competitiveness Index 2009–2010
SUBINDEXES
OVERALL INDEX
Country/Economy

Switzerland
United States
Singapore
Sweden
Denmark
Finland
Germany
Japan
Canada
Netherlands
Hong Kong SAR
Taiwan, China
United Kingdom
Norway
Australia
France
Austria
Belgium
Korea, Rep.
New Zealand
Luxembourg
Qatar
United Arab Emirates
Malaysia
Ireland
Iceland
Israel
Saudi Arabia
China
Chile
Czech Republic
Brunei Darussalam
Spain
Cyprus
Estonia
Thailand
Slovenia
Bahrain
Kuwait
Tunisia
Oman
Puerto Rico
Portugal
Barbados
South Africa
Poland
Slovak Republic
Italy
India
Jordan
Azerbaijan
Malta
Lithuania
Indonesia
Costa Rica
Brazil
Mauritius
Hungary
Panama
Mexico
Turkey
Montenegro
Russian Federation
Romania
Uruguay
Botswana
Kazakhstan

Basic requirements

Efficiency enhancers

Innovation factors

Rank

Score

Rank

Score

Rank

Score

Rank

Score

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67

5.60
5.59
5.55
5.51
5.46
5.43
5.37
5.37
5.33
5.32
5.22
5.20
5.19
5.17
5.15
5.13
5.13
5.09
5.00
4.98
4.96
4.95
4.92
4.87
4.84
4.80
4.80
4.75
4.74
4.70
4.67
4.64
4.59
4.57
4.56
4.56
4.55
4.54
4.53
4.50
4.49
4.48
4.40
4.35
4.34
4.33
4.31
4.31
4.30
4.30
4.30
4.30
4.30
4.26
4.25
4.23
4.22
4.22
4.21
4.19
4.16
4.16
4.15
4.11
4.10
4.08
4.08

3
28
2
5
4
1
8
27
10
12
6
18
26
11
14
15
13
20
23
16
7
17
9
33
37
24
42
30
36
32
45
19
38
21
34
43
29
22
40
35
25
44
39
31
77
71
54
67
79
46
50
41
47
70
62
91
51
58
55
59
69
65
64
86
49
63
74

5.98
5.23
5.99
5.96
5.98
6.04
5.85
5.27
5.74
5.71
5.90
5.47
5.29
5.73
5.63
5.60
5.70
5.43
5.40
5.58
5.85
5.57
5.75
5.12
5.06
5.36
4.88
5.17
5.09
5.14
4.78
5.44
5.06
5.43
5.10
4.86
5.18
5.41
5.02
5.09
5.30
4.84
5.05
5.16
4.26
4.30
4.61
4.38
4.18
4.74
4.63
4.97
4.68
4.30
4.44
4.04
4.63
4.48
4.54
4.47
4.34
4.43
4.43
4.10
4.64
4.43
4.27

3
1
2
7
6
12
14
11
4
10
5
17
8
13
9
16
19
18
20
15
23
28
21
25
22
30
26
38
32
33
24
76
29
41
27
40
37
44
63
56
53
36
43
60
39
31
34
46
35
66
71
48
47
50
58
42
72
45
70
55
54
65
52
49
82
87
69

5.39
5.66
5.61
5.31
5.36
5.17
5.12
5.21
5.39
5.26
5.37
5.06
5.31
5.14
5.29
5.08
4.98
5.04
4.92
5.11
4.84
4.67
4.89
4.76
4.87
4.64
4.72
4.49
4.56
4.55
4.78
3.94
4.66
4.45
4.69
4.46
4.49
4.39
4.08
4.14
4.18
4.50
4.40
4.11
4.47
4.56
4.55
4.37
4.52
4.06
4.03
4.31
4.33
4.24
4.13
4.41
4.01
4.38
4.04
4.15
4.16
4.06
4.20
4.25
3.86
3.77
4.04

3
1
10
4
7
6
5
2
12
9
23
8
14
18
21
15
11
13
16
27
22
36
25
24
20
19
17
33
29
43
26
81
35
32
42
47
30
60
64
45
52
31
41
49
39
46
57
34
28
51
56
48
53
40
37
38
65
61
54
67
58
68
73
75
77
92
78

5.68
5.71
5.15
5.53
5.28
5.47
5.47
5.70
4.96
5.17
4.53
5.25
4.92
4.83
4.61
4.90
5.00
4.95
4.88
4.37
4.58
4.10
4.41
4.43
4.63
4.70
4.87
4.15
4.23
3.96
4.40
3.42
4.14
4.18
3.98
3.83
4.23
3.69
3.62
3.94
3.75
4.21
3.98
3.81
4.05
3.84
3.71
4.15
4.24
3.79
3.71
3.83
3.75
4.03
4.08
4.08
3.59
3.67
3.73
3.57
3.70
3.56
3.47
3.44
3.44
3.25
3.43

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

SUBINDEXES
OVERALL INDEX
Country/Economy

Latvia
Colombia
Egypt
Greece
Croatia
Morocco
Namibia
Vietnam
Bulgaria
El Salvador
Peru
Sri Lanka
Guatemala
Gambia, The
Ukraine
Algeria
Macedonia, FYR
Argentina
Trinidad and Tobago
Philippines
Libya
Honduras
Georgia
Jamaica
Senegal
Serbia
Syria
Dominican Republic
Albania
Armenia
Kenya
Nigeria
Tanzania
Pakistan
Suriname
Benin
Guyana
Ecuador
Bangladesh
Lesotho
Uganda
Bosnia and Herzegovina
Cambodia
Cameroon
Zambia
Venezuela
Ghana
Nicaragua
Côte d’Ivoire
Mongolia
Ethiopia
Malawi
Bolivia
Madagascar
Tajikistan
Kyrgyz Republic
Paraguay
Nepal
Timor-Leste
Mauritania
Burkina Faso
Mozambique
Mali
Chad
Zimbabwe
Burundi

Basic requirements

Efficiency enhancers

Innovation factors

Rank

Score

Rank

Score

Rank

Score

Rank

Score

68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133

4.06
4.05
4.04
4.04
4.03
4.03
4.03
4.03
4.02
4.02
4.01
4.01
3.96
3.96
3.95
3.95
3.95
3.91
3.91
3.90
3.90
3.86
3.81
3.81
3.78
3.77
3.76
3.75
3.72
3.71
3.67
3.65
3.59
3.58
3.57
3.56
3.56
3.56
3.55
3.54
3.53
3.53
3.51
3.50
3.50
3.48
3.45
3.44
3.43
3.43
3.43
3.42
3.42
3.42
3.38
3.36
3.35
3.34
3.26
3.25
3.23
3.22
3.22
2.87
2.77
2.58

60
83
78
56
52
57
53
92
80
66
88
89
82
76
94
61
73
84
48
95
68
87
85
101
96
97
72
98
90
81
120
118
103
114
75
99
105
93
108
102
110
100
112
107
117
104
127
113
121
123
111
124
106
115
116
126
122
119
109
125
130
129
128
131
132
133

4.45
4.12
4.21
4.49
4.62
4.49
4.61
4.02
4.13
4.39
4.06
4.05
4.13
4.26
3.96
4.44
4.27
4.11
4.67
3.94
4.38
4.10
4.10
3.74
3.93
3.90
4.30
3.82
4.04
4.13
3.49
3.51
3.71
3.53
4.26
3.78
3.69
4.00
3.60
3.71
3.58
3.74
3.55
3.68
3.51
3.70
3.40
3.54
3.49
3.48
3.56
3.43
3.68
3.52
3.51
3.40
3.49
3.50
3.60
3.43
3.25
3.26
3.30
2.92
2.71
2.49

51
64
80
57
67
91
90
61
62
83
59
74
81
101
68
117
85
84
79
78
110
95
89
73
96
86
112
88
93
99
75
77
104
92
126
121
107
113
97
116
102
100
103
119
98
108
94
114
109
106
120
105
128
118
123
111
115
125
132
129
122
124
127
131
130
133

4.21
4.07
3.87
4.13
4.05
3.71
3.72
4.08
4.08
3.85
4.11
3.95
3.86
3.49
4.05
3.29
3.83
3.84
3.90
3.91
3.36
3.54
3.73
3.95
3.54
3.77
3.35
3.77
3.63
3.51
3.94
3.91
3.45
3.69
3.14
3.25
3.40
3.34
3.54
3.31
3.49
3.50
3.49
3.27
3.52
3.38
3.58
3.32
3.38
3.42
3.26
3.43
3.08
3.28
3.22
3.36
3.32
3.15
2.78
3.01
3.22
3.19
3.09
2.81
2.87
2.68

86
62
71
66
72
88
91
55
89
87
85
44
63
69
80
122
93
76
79
74
111
96
117
83
59
94
100
82
121
112
50
70
95
84
118
104
110
123
114
101
103
127
107
106
90
130
108
116
98
120
115
97
133
99
109
128
131
129
132
125
105
113
102
126
124
119

3.36
3.67
3.51
3.59
3.49
3.35
3.26
3.72
3.29
3.36
3.37
3.95
3.66
3.55
3.42
2.88
3.23
3.44
3.42
3.45
3.04
3.21
2.94
3.39
3.69
3.21
3.17
3.41
2.90
3.03
3.80
3.53
3.21
3.39
2.94
3.12
3.06
2.88
3.00
3.16
3.14
2.80
3.08
3.11
3.26
2.76
3.08
2.96
3.20
2.93
2.98
3.21
2.63
3.20
3.06
2.80
2.70
2.77
2.68
2.83
3.12
3.00
3.14
2.81
2.86
2.94

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Table 5: The Global Competitiveness Index 2009–2010 (cont’d.)

15

1.1: The Global Competitiveness Index 2009–2010

16

Table 6: The Global Competitiveness Index: Basic requirements
PILLARS
BASIC REQUIREMENTS
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Barbados
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Côte d’Ivoire
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Gambia, The
Georgia
Germany
Ghana
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho

1. Institutions

2. Infrastructure

3. Macroeconomic
stability

4. Health and
primary education

Rank

Score

Rank

Score

Rank

Score

Rank

Score

Rank

Score

90
61
84
81
14
13
50
22
108
31
20
99
106
100
63
91
19
80
130
133
112
107
10
131
32
36
83
62
121
52
21
45
4
98
93
78
66
34
111
1
15
76
85
8
127
56
82
105
87
6
58
24
79
70
37
42
67
101
27
46
74
120
23
40
126
60
102

4.04
4.44
4.11
4.13
5.63
5.70
4.63
5.41
3.60
5.16
5.43
3.78
3.68
3.74
4.43
4.04
5.44
4.13
3.25
2.49
3.55
3.68
5.74
2.92
5.14
5.09
4.12
4.44
3.49
4.62
5.43
4.78
5.98
3.82
4.00
4.21
4.39
5.10
3.56
6.04
5.60
4.26
4.10
5.85
3.40
4.49
4.13
3.69
4.10
5.90
4.48
5.36
4.18
4.30
5.06
4.88
4.38
3.74
5.27
4.74
4.27
3.49
5.40
5.02
3.40
4.45
3.71

87
115
126
95
12
14
55
30
122
20
24
79
132
128
29
93
36
116
71
129
92
112
17
131
35
48
101
47
127
85
22
62
3
117
125
56
91
31
75
4
26
27
72
16
68
70
108
103
99
11
76
13
54
58
19
39
97
82
28
25
86
107
53
51
124
65
89

3.62
3.20
2.94
3.49
5.60
5.55
4.15
4.88
3.09
5.18
4.98
3.72
2.50
2.89
4.89
3.50
4.78
3.19
3.82
2.75
3.51
3.24
5.50
2.71
4.78
4.39
3.37
4.42
2.91
3.65
5.03
3.93
6.08
3.19
2.97
4.13
3.52
4.85
3.78
6.05
4.95
4.91
3.82
5.50
3.87
3.83
3.26
3.32
3.37
5.62
3.77
5.58
4.21
4.00
5.21
4.64
3.44
3.70
4.90
4.97
3.64
3.27
4.23
4.31
2.98
3.91
3.54

104
99
88
81
25
9
58
27
126
21
18
117
122
128
61
74
41
102
115
125
95
121
7
133
30
46
83
82
73
49
24
48
12
85
100
55
51
34
96
10
3
60
72
1
87
47
68
91
77
2
57
11
76
84
52
44
59
67
13
42
75
92
17
50
124
56
114

2.84
2.91
3.11
3.25
5.19
5.89
4.03
4.96
2.39
5.37
5.58
2.58
2.47
2.18
3.93
3.50
4.55
2.88
2.60
2.41
2.94
2.49
5.93
1.90
4.93
4.31
3.20
3.24
3.54
4.26
5.22
4.27
5.83
3.16
2.91
4.07
4.20
4.67
2.94
5.87
6.52
3.95
3.60
6.59
3.14
4.31
3.78
3.03
3.39
6.54
4.04
5.85
3.47
3.20
4.19
4.42
3.99
3.84
5.83
4.45
3.49
3.01
5.60
4.23
2.41
4.04
2.62

95
2
48
53
18
37
27
5
84
115
56
54
60
69
41
109
1
45
118
132
122
34
31
82
19
8
72
101
89
50
39
43
14
94
44
120
61
47
116
12
58
92
117
30
129
103
88
127
85
16
83
119
96
52
65
67
102
131
97
105
59
121
11
3
125
99
29

4.24
6.39
4.87
4.78
5.56
5.22
5.30
5.97
4.45
3.80
4.74
4.77
4.70
4.61
5.06
3.93
6.64
4.93
3.60
1.05
3.40
5.24
5.24
4.50
5.48
5.93
4.59
4.11
4.43
4.83
5.15
4.99
5.71
4.28
4.99
3.46
4.68
4.90
3.76
5.78
4.72
4.32
3.73
5.28
2.68
4.02
4.43
3.00
4.44
5.67
4.50
3.57
4.23
4.82
4.63
4.62
4.11
2.25
4.22
3.97
4.71
3.43
5.80
6.23
3.25
4.20
5.29

66
77
59
97
16
18
96
37
105
9
3
111
94
75
118
79
42
58
130
121
107
122
7
133
69
45
72
29
128
44
5
33
6
103
89
84
86
28
120
1
11
117
78
24
115
41
95
67
85
43
53
2
101
82
10
39
26
88
19
57
80
110
27
73
98
50
127

5.48
5.28
5.54
5.00
6.18
6.14
5.04
5.83
4.49
6.28
6.43
4.06
5.05
5.29
3.85
5.24
5.78
5.54
2.97
3.74
4.36
3.74
6.30
2.55
5.38
5.72
5.34
5.97
3.08
5.72
6.32
5.94
6.31
4.65
5.14
5.20
5.17
5.98
3.78
6.46
6.22
3.86
5.26
6.01
3.93
5.81
5.04
5.41
5.18
5.76
5.59
6.45
4.82
5.20
6.23
5.82
5.99
5.14
6.13
5.56
5.22
4.26
5.99
5.33
4.98
5.66
3.37

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

PILLARS
BASIC REQUIREMENTS
Country/Economy

Libya
Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malawi
Malaysia
Mali
Malta
Mauritania
Mauritius
Mexico
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Serbia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Suriname
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Timor-Leste
Trinidad and Tobago
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Venezuela
Vietnam
Zambia
Zimbabwe

1. Institutions

2. Infrastructure

3. Macroeconomic
stability

4. Health and
primary education

Rank

Score

Rank

Score

Rank

Score

Rank

Score

Rank

Score

68
47
7
73
115
124
33
128
41
125
51
59
123
65
57
129
53
119
12
16
113
118
11
25
114
55
122
88
95
71
39
44
17
86
64
30
96
97
2
54
29
77
38
89
75
5
3
72
18
116
103
43
109
48
35
69
110
94
9
26
28
49
104
92
117
132

4.38
4.68
5.85
4.27
3.52
3.43
5.12
3.30
4.97
3.43
4.63
4.47
3.48
4.43
4.49
3.26
4.61
3.50
5.71
5.58
3.54
3.51
5.73
5.30
3.53
4.54
3.49
4.06
3.94
4.30
5.05
4.84
5.57
4.10
4.43
5.17
3.93
3.90
5.99
4.61
5.18
4.26
5.06
4.05
4.26
5.96
5.98
4.30
5.47
3.51
3.71
4.86
3.60
4.67
5.09
4.34
3.58
3.96
5.75
5.29
5.23
4.64
3.70
4.02
3.51
2.71

67
59
6
83
111
50
43
88
33
100
41
98
121
52
64
105
37
123
10
5
119
102
7
18
104
69
130
90
113
66
44
42
9
84
114
32
77
110
1
78
46
45
49
73
94
2
8
57
37
81
74
60
109
80
23
96
106
120
15
21
34
40
133
63
61
118

3.88
4.00
5.88
3.69
3.24
4.32
4.53
3.55
4.82
3.37
4.59
3.40
3.09
4.28
3.92
3.30
4.77
3.07
5.66
6.03
3.12
3.34
5.88
5.38
3.31
3.85
2.71
3.52
3.24
3.90
4.49
4.58
5.69
3.68
3.23
4.84
3.75
3.24
6.15
3.74
4.47
4.47
4.38
3.80
3.50
6.10
5.85
4.04
4.73
3.71
3.80
3.98
3.24
3.72
5.02
3.49
3.29
3.10
5.52
5.07
4.81
4.60
2.39
3.93
3.94
3.14

105
43
19
90
113
112
26
108
38
118
53
69
132
93
70
116
32
131
15
35
120
127
28
29
89
65
129
97
98
103
23
33
39
110
71
36
80
107
4
63
31
45
22
64
86
14
5
79
16
109
123
40
130
54
37
62
119
78
6
20
8
66
106
94
111
101

2.83
4.44
5.56
3.05
2.63
2.63
5.05
2.73
4.60
2.57
4.16
3.69
1.98
3.00
3.62
2.59
4.77
2.03
5.74
4.64
2.52
2.29
4.95
4.93
3.06
3.88
2.13
2.91
2.91
2.88
5.23
4.69
4.58
2.67
3.62
4.63
3.25
2.75
6.35
3.89
4.84
4.33
5.36
3.88
3.15
5.82
6.35
3.28
5.60
2.73
2.45
4.57
2.04
4.09
4.62
3.92
2.54
3.39
5.98
5.43
5.92
3.86
2.80
3.00
2.63
2.89

4
57
6
49
123
126
42
110
81
113
98
28
108
70
32
100
66
86
38
33
124
20
7
10
114
46
107
63
76
74
79
87
13
75
36
9
90
111
35
40
26
68
62
128
51
15
17
80
25
130
77
22
21
23
55
64
73
106
24
71
93
78
91
112
104
133

6.19
4.72
5.95
4.84
3.38
3.17
5.00
3.91
4.52
3.84
4.21
5.29
3.95
4.61
5.24
4.18
4.62
4.44
5.21
5.24
3.33
5.43
5.94
5.82
3.81
4.92
3.95
4.66
4.54
4.56
4.52
4.44
5.73
4.55
5.24
5.86
4.39
3.88
5.24
5.14
5.32
4.62
4.68
2.83
4.82
5.70
5.63
4.52
5.34
2.63
4.54
5.37
5.41
5.35
4.77
4.66
4.59
3.96
5.35
4.60
4.31
4.53
4.38
3.86
4.00
1.00

104
55
25
60
102
124
34
129
32
114
56
65
100
40
87
131
109
106
14
4
83
132
17
92
113
64
90
91
93
35
31
49
8
63
51
71
108
46
13
48
22
125
38
47
54
12
21
70
15
99
112
61
123
62
30
74
116
68
20
23
36
52
81
76
126
119

4.61
5.57
6.01
5.52
4.82
3.61
5.90
2.99
5.94
3.95
5.56
5.48
4.91
5.81
5.17
2.97
4.28
4.45
6.22
6.43
5.20
2.96
6.16
5.08
3.95
5.50
5.14
5.14
5.07
5.88
5.95
5.67
6.30
5.50
5.65
5.37
4.33
5.71
6.22
5.68
6.10
3.60
5.82
5.69
5.58
6.22
6.10
5.38
6.20
4.97
4.03
5.52
3.69
5.50
5.95
5.32
3.93
5.41
6.13
6.07
5.88
5.60
5.22
5.28
3.44
3.80

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.1: The Global Competitiveness Index 2009–2010

Table 6: The Global Competitiveness Index: Basic requirements (cont’d.)

17

08 3.30 4.64 5.02 3.37 4.12 4.99 4.24 3.62 2.82 4.22 4.92 4.64 3. Financial market sophistication 9.43 4.22 4.63 2.69 5.58 4.81 3.68 3.51 4.94 4.69 4.29 5.58 4.82 4.25 3.39 4.92 5.56 3. Technological readiness Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 93 117 84 99 9 19 71 44 97 60 18 121 128 100 87 42 76 62 122 133 103 119 4 131 33 32 64 58 109 67 41 24 6 88 113 80 83 27 120 12 16 101 89 14 94 57 81 107 95 5 45 30 35 50 22 26 46 73 11 66 69 75 20 63 111 51 116 3.40 4.11 3.41 3.03 3.10 3.10 4.91 5.07 3.20 3.09 5.32 3.69 4.94 2.98 3.94 4.90 6.79 4.84 2.59 4.65 5.34 3.84 3.45 3.18 3.89 4.85 4.60 5.05 5.45 3.05 3.40 4.65 5.67 2.63 2.25 4.46 4.93 5.66 4.78 2.29 3.50 3.93 4.32 3.02 3.20 4.78 3.37 3.63 5.00 4.78 3.64 4.07 4.99 5.13 5.09 4.63 2.62 4.30 4.13 4.64 4.29 4.40 3.89 6.36 4.47 3.93 2.83 5.59 4.40 4.72 4.01 4.50 4.12 3.46 5.92 4.56 4.55 3.77 3.38 4.86 3.04 3.61 4.17 4.98 4.09 4.88 3.27 5.98 4.32 3.33 4.23 97 126 124 116 9 11 71 22 102 72 13 103 131 125 79 99 100 81 98 129 85 118 16 133 26 42 88 47 115 94 24 27 7 89 127 87 50 28 106 19 25 60 74 18 91 75 52 96 80 2 64 31 48 41 15 49 65 69 17 43 84 73 36 63 120 57 82 3.18 4.35 3.90 3.38 4.27 4.23 3.13 3.49 3.01 65 127 123 47 9 34 13 35 112 48 44 87 131 94 58 80 10 54 60 101 52 104 7 102 41 32 78 36 105 92 46 20 5 73 130 126 68 21 69 23 67 26 17 70 100 116 88 99 121 4 63 6 83 75 22 28 117 72 12 106 18 40 84 59 76 37 64 4.53 4.66 4.39 5.39 6.05 4.53 3.49 5.95 4.54 4.87 3.28 3.82 2.46 4.12 3.48 4.03 5.20 3.76 4.49 2.27 4.37 2.67 3.06 4.57 1.50 3.87 2.08 3.03 5.21 4.54 5.94 4.05 5.92 4.86 4.08 3.81 3.95 4.56 2.47 2.11 2.32 3.51 4.22 4.06 3.87 4.57 3.00 3.53 4.68 3.72 4.72 3.20 3.66 2.89 3.34 3.05 4.90 3.1.31 90 102 55 96 14 17 72 48 129 26 8 115 93 86 94 58 62 60 127 131 122 119 9 133 45 61 71 44 112 56 28 24 2 89 103 88 95 21 125 1 15 100 84 22 108 43 101 78 106 31 35 4 66 69 20 36 49 77 23 42 59 85 16 82 87 34 105 3.13 3.37 3.21 4.82 3.) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .22 2. Market size Rank Score 106 51 23 109 19 33 78 97 48 126 25 122 87 90 98 10 115 58 119 132 92 89 14 116 44 2 31 77 95 65 99 40 49 68 60 26 80 94 76 53 8 131 101 5 86 34 71 129 84 27 45 120 4 16 52 50 9 100 3 82 55 74 12 61 112 83 127 2.47 4.95 3.96 3.30 3.85 4.87 4.42 4. Higher education and training 6.82 3.33 3.24 3.62 3.34 3.41 3.09 3.87 3.83 2.50 2.53 2.39 3.85 4.91 5.20 4.63 2.02 4.00 4.91 4.86 3.90 5.73 5.45 4.21 3.33 5.50 1.86 5.97 3.48 5.49 3.10 4.05 4.51 3.68 3.64 10.17 3.08 3.18 2.06 3.36 3.21 4.43 3.57 2.17 5.42 3.87 4.50 3.31 2.72 2.01 3.26 5.95 4.71 5.74 4.32 1.47 4. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.77 4.81 3.61 5.25 4.09 5.08 2.00 4.51 4.28 5.63 5.09 4.41 4.40 4.79 3.06 4.24 3.51 4.47 3.81 4.06 4.36 4.60 4.23 5.68 4.18 5.97 4.24 3.39 4.07 5.12 4.99 5.36 3.49 6.50 5.68 3.16 4.14 4.36 3.54 4.57 4.67 4.94 4.26 2.75 5.26 4.53 3.63 3.10 4.11 5.25 3.78 1.77 4.37 4.76 2.81 5.19 2.88 5.18 4.45 4.11 4.44 5.41 90 132 116 97 4 27 66 30 71 38 25 108 121 104 47 51 68 76 117 133 94 120 11 131 32 81 78 79 113 77 18 42 8 105 114 84 70 29 127 7 21 91 95 36 59 83 67 101 89 1 69 85 16 61 45 15 100 46 40 52 111 37 58 63 109 60 102 3.25 2.31 3.63 3.03 4.19 3.23 4.71 4.95 5.35 2.58 4.69 3.40 3.34 3.92 4.54 2.56 3.14 3.41 3.98 4.85 3.87 4.22 4.10 3.86 3.71 3.66 3.53 4.78 5.41 4.70 5.82 5.35 4.27 1.43 4.09 3.19 5.54 4.65 4.34 4.85 (Cont’d.72 4.82 5.44 4.74 4.44 5.97 5.64 5.36 4.32 3.24 5. Kuwait Kyrgyz Republic Latvia Lesotho 5.31 2.1: The Global Competitiveness Index 2009–2010 18 Table 7: The Global Competitiveness Index: Efficiency enhancers PILLARS EFFICIENCY ENHANCERS Country/Economy Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Benin Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Chad Chile China Colombia Costa Rica Côte d’Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Finland France Gambia.56 3.33 4.52 4.67 5.62 3.79 5.05 4.20 5.59 3.23 4.33 5.23 4.68 5.64 4.67 4.04 3.30 4.61 3.26 4.51 5.56 3.83 4.63 4.21 4.07 4.27 5. Labor market efficiency 8.78 4.92 3.14 4.88 4.22 4.20 4.39 2.17 3.36 5.69 5.73 4.75 3.51 2.30 4.15 4.72 3.94 2.43 5.16 4.06 4.92 3.57 3.25 3.71 89 123 68 105 20 19 75 35 125 41 22 117 128 95 92 46 60 56 122 129 113 111 11 127 42 79 66 62 97 43 38 30 4 72 102 82 81 16 131 10 24 90 100 12 112 53 70 94 93 9 40 14 83 88 21 26 39 50 25 61 69 96 15 49 124 47 116 3.68 4.96 3.65 3.77 3.11 2.88 4.21 3.13 3.00 2.41 2.42 3.80 4.50 4.94 5.39 2. Goods market efficiency 7.70 4.89 4.20 5.86 4.12 5.08 3.86 4.53 4.74 4.09 4.45 4.29 4.00 3.24 4.23 3.06 3.38 3.35 3.47 4.26 3. Rep.08 3.29 4.07 3.17 4.45 4.82 4.84 4.39 3.19 2.64 3.47 2.32 3.27 5.52 2.55 4.

80 3.44 3.67 3.58 4.60 3.97 4.10 3.96 3.87 3.63 3.32 3.32 3.14 4.69 4.45 2.36 4.79 4.67 3.38 4.70 3.74 3.77 5.23 4.53 3.85 4.08 4.12 3.32 3.19 3.16 4.76 4.01 2.81 3.20 4.01 4.88 2.53 5.43 5.05 4.69 2.00 4.79 5.93 2.69 5.66 2.70 3.43 4.53 3.54 4.48 3.27 5.51 5.95 3.56 4.82 4.44 4.49 3.41 4. FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Mongolia Montenegro Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Suriname Sweden Switzerland Syria Taiwan.43 4.51 2.74 4.18 2.39 3.25 4.30 3.32 4.57 2.24 4.26 2.99 4.18 4.58 4.52 2.35 3.57 4.47 4.83 2.87 4.12 4.54 5.27 4.85 2.54 3.72 4.14 5.62 3.06 3.97 5.97 4.30 4.05 3.88 3.01 1.66 3.79 98 36 5 52 114 126 37 110 27 106 57 71 107 45 76 99 86 132 2 23 119 101 7 64 104 59 103 77 84 48 31 34 28 58 74 44 87 78 6 33 32 65 29 85 115 1 3 108 18 121 120 63 133 67 55 54 118 80 17 8 13 51 91 73 109 130 2.56 4.08 4.33 3.87 75 30 39 70 117 120 41 126 37 132 79 74 91 57 99 130 110 124 10 11 109 113 12 67 118 80 121 81 68 27 38 40 25 52 51 53 98 76 5 47 19 65 33 64 97 3 6 104 13 107 128 54 116 63 32 73 123 46 29 18 7 50 83 92 114 111 3.20 3.97 3.96 3.57 2.14 4.96 3.73 4.83 4.57 2.78 4.65 4.94 4.69 4.69 5.31 3.76 3.88 3.57 4.25 2.49 2.43 3.16 3.93 4.75 2.07 2.96 4.02 5.31 3.22 5.82 4.49 4.67 4.08 5.17 5.04 3.74 3.72 3.89 4.33 4.38 5.26 5.55 4.14 4.61 4.24 3.80 5.50 4.26 4.66 4. Goods market efficiency 7.78 4.15 6.91 5.07 3.51 4.11 3.17 5.45 3.08 4.92 4.70 5.61 4.67 4.83 4.53 4.48 3.34 4.15 5.03 5.22 3.61 3.72 2.PILLARS EFFICIENCY ENHANCERS Country/Economy Libya Lithuania Luxembourg Macedonia.62 2.15 3.54 3.71 3.10 4.24 5.38 3.25 3.71 3.27 4.34 2.90 4.18 3.46 2.74 2.21 2.69 4.89 2.93 4.72 4.61 4.40 3.49 2.41 3.52 4.42 4.79 4.42 1.70 3.26 5.15 4.06 4.65 3.83 5.91 4.19 4.88 2.56 3.06 3.31 5.66 3.11 3.35 4.52 3.37 5.20 4.67 4.19 3.84 4.05 4.64 4.31 4.01 4.59 4.07 3.76 4. Higher education and training 6.97 3.66 3.62 3.81 5.42 3.40 2.78 3.38 4.55 2.24 4.99 4. Financial market sophistication 9.28 3.47 4.29 4.62 4.37 5.93 3.86 3.57 4.75 5.04 4.21 3.69 4.19 3.76 3.86 4.29 The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 10.79 3.65 6.78 4.27 3.43 4.55 3.30 2.11 4.49 3.79 2.70 4.76 1.65 4.22 3.93 3.54 2.00 4.57 5.86 3.01 3.96 5.16 3. Labor market efficiency 8.06 4.19 3.29 4.81 3.04 4.84 4.43 4.39 3.75 3.81 3.93 4.84 3.06 2.67 4.88 2.78 3.08 2.12 4. China Tajikistan Tanzania Thailand Timor-Leste Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Venezuela Vietnam Zambia Zimbabwe 5.54 3.87 2.52 3.87 3.79 3.78 3.74 5.97 4.91 4.86 3.69 4.67 4.76 5.83 3.87 5.95 4.84 3. Market size Rank Score 73 69 85 103 108 118 28 114 121 125 110 11 123 124 56 104 113 96 18 59 107 42 47 75 30 81 93 46 35 20 43 62 70 41 7 22 105 67 39 57 72 24 13 63 128 32 36 64 17 117 79 21 133 102 66 15 91 29 54 6 1 88 37 38 111 130 3.08 3.77 4.24 2.68 3.59 2.48 4.27 2.41 2.53 2.08 132 45 42 86 66 55 31 114 93 95 74 115 39 53 129 109 57 122 27 11 96 61 15 33 124 89 118 77 113 50 103 51 14 79 43 71 110 85 1 29 56 90 97 111 108 19 2 128 24 62 82 25 91 81 98 120 30 49 16 8 3 119 133 38 107 125 3.55 4.21 6.38 5.15 3.10 3.81 3.44 5.85 4.44 4.49 5.30 3.07 3.46 4.66 4.61 3.39 4.40 2.70 5.12 3.55 4.45 4.48 4.49 4.52 3.16 3.76 2.36 5. Technological readiness Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 110 47 23 85 118 105 25 127 48 129 72 55 106 65 91 124 90 125 10 15 114 77 13 53 92 70 115 59 78 31 43 36 28 49 52 38 96 86 2 34 37 39 29 74 126 7 3 112 17 123 104 40 132 79 56 54 102 68 21 8 1 82 108 61 98 130 3.28 2.79 4.31 3.63 4.30 3.51 3.69 3.18 5.29 3.61 4.71 2.89 4.48 5.15 4.) 19 .16 2.92 3.06 3.76 4.89 5.24 4.78 4.16 119 59 3 76 93 86 30 113 40 111 37 90 107 58 68 121 77 117 6 8 110 62 23 33 83 54 105 66 95 53 51 34 21 61 108 29 55 112 1 32 38 35 46 45 123 4 5 101 14 122 104 44 128 92 39 56 114 109 10 20 12 78 132 67 70 130 3.77 3.43 2.69 4.56 4.70 2.05 4.69 4.91 3.83 5.98 3.30 4.38 4.13 4.19 3.91 5.40 4.76 4.75 4.40 3.09 4.29 4.22 3.86 5.11 4.64 5.16 5.49 5.08 3.61 4.16 2.77 3.82 3.84 2.97 4.41 2.63 4.92 3.27 4.01 3.88 4.40 5.62 1.57 4.91 4.07 4.66 4.46 3.99 5.61 4.1: The Global Competitiveness Index 2009–2010 Table 7: The Global Competitiveness Index: Efficiency enhancers (cont’d.90 5.82 6.95 4.91 5.15 3.78 4.90 2.94 4.41 3.24 5.37 5.35 5.57 3.49 5.49 4.60 4.90 4.22 5.45 4.47 122 72 9 75 125 55 6 124 13 129 26 73 115 17 96 118 31 99 23 3 107 57 10 43 64 22 103 39 93 44 62 19 35 56 119 53 110 92 2 28 48 5 50 65 112 12 14 123 54 128 74 49 130 34 87 80 86 106 33 24 20 88 126 82 41 98 3.95 3.73 3.76 5.79 3.92 4.80 4.45 4.25 4.06 2.99 4.82 4.10 4.24 3.31 5.68 4.91 4.18 3.57 2.17 3.55 4.69 5.75 4.33 3.50 4.

08 3.43 2.33 5.54 4.37 2.80 4.30 3.29 3.55 2.56 3.64 3.10 2.24 5.72 4.71 4.64 5.52 4.37 3.94 5.80 3.91 4.80 3.21 4.01 4.72 3.65 3.88 Country/Economy Libya Lithuania Luxembourg Macedonia.70 3.18 4.29 3.03 4.21 4.96 3.33 3.48 3.71 3.63 3.95 2.57 4.06 3.66 3.43 3.73 3.52 2. Rep.21 5.15 3.82 3.92 5.52 4.99 2.53 4.44 3.03 2.06 3.73 2.51 3.06 4.38 2.17 4.87 4.97 4.93 3.67 4.21 3.00 3.84 3.67 4.49 4.29 2.00 3.61 4.1.15 3.00 2.21 3.23 4.20 5.59 4.46 2.77 3.47 4.00 3.16 109 128 73 112 26 7 74 61 100 58 11 114 131 117 107 32 77 89 123 119 101 106 17 129 39 38 60 41 92 84 31 25 8 71 105 72 63 48 118 9 10 67 113 2 98 66 47 94 87 15 76 23 27 40 18 30 20 79 1 49 88 59 21 50 127 82 104 3.32 3.57 5.77 5.28 3.29 2.53 4.25 (Cont’d.62 3.51 3.23 3.67 4.86 3.85 4.53 3.14 3.49 4.70 3.92 3.79 3.31 2.90 2.72 5.20 4.64 2.23 3.64 4.94 3.04 3.80 3.06 4.20 3.13 3.53 4.11 2.42 4.24 4.74 4.81 4.57 2.15 3.21 3.51 3.47 3.33 3.15 3.84 2. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.19 3.75 4.95 3.31 5.66 5.54 4.84 3.39 3.32 3.64 3.53 5.21 5.47 3.35 3.85 3.34 3.22 2. Innovation Rank Score 106 58 21 92 84 94 24 81 53 125 85 78 101 56 96 105 103 130 13 23 117 73 17 55 79 66 133 109 99 52 33 31 36 70 51 32 54 80 8 68 29 41 40 46 118 5 2 110 6 97 93 57 127 87 38 69 98 62 27 15 1 67 123 44 90 124 2.71 5.43 INNOVATION AND SOPHISTICATION FACTORS 12. FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Mongolia Montenegro Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Suriname Sweden Switzerland Syria Taiwan.41 4.06 4.22 4.63 3.26 2.68 4.29 5.76 2.31 3.52 4.11 4.25 3.55 3.10 3.04 2.10 3.90 3.98 5.63 4.62 2.70 3.79 3.91 2.08 3.58 3.64 3.35 4.12 3.71 4.95 2.43 4.14 3.61 5.22 3.41 3.28 4.26 2.80 4.35 4.20 3.56 2.59 3.35 3.14 3.01 5.41 4.63 4.28 4.47 4.87 2.47 4.98 5.68 3.81 3.53 3.37 3.60 3.67 4.83 3. China Tajikistan Tanzania Thailand Timor-Leste Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Venezuela Vietnam Zambia Zimbabwe PILLARS 11.12 2.41 2.95 2.05 3.06 2.21 4.79 4.50 3.60 5.04 4.80 4.30 2.44 3.45 3.80 2.64 3.96 5.90 4.23 3.23 4.69 3.89 4.04 3.11 2.88 3.77 3.71 2.36 3.83 2. Business sophistication Rank Score Rank Score 121 122 76 112 21 11 56 60 114 49 13 104 133 127 92 38 81 89 105 119 107 106 12 126 43 29 62 37 98 72 32 26 7 82 123 71 87 42 115 6 15 69 117 5 108 66 63 110 96 23 61 19 28 40 20 17 34 83 2 51 78 50 16 64 128 86 101 2.45 3.35 4.88 2.94 3.32 3.62 2.42 5.52 3.40 2.52 3.48 .39 5.27 4.17 3.17 5.98 4.90 4.68 3.25 3.95 3.17 4.40 2.33 3.54 3.55 3.79 5.87 4.59 3.45 5.94 3.15 3. Innovation Rank Score 126 114 86 108 20 19 42 60 122 47 14 89 132 131 71 43 75 91 76 116 107 102 12 120 49 26 63 34 104 61 35 25 10 100 129 74 113 37 112 3 18 72 119 7 115 65 77 121 111 28 45 16 30 39 22 9 50 82 4 59 64 48 11 83 128 88 95 2.98 3.81 3.71 3.70 3.21 4.75 3.30 4.21 3.41 4.28 3.80 3.95 2.78 2.73 3.70 3.76 3.96 2.96 2.10 3.70 3.00 3.80 5.28 5.83 3.44 2.89 4.88 3.03 4.83 2.42 3.76 4.24 4.43 4.76 3.41 3.06 2.30 4.83 3.43 2.27 3.64 2.34 4.92 2.25 4.12 2.99 2.79 3.89 4.39 5.55 3.44 3.98 4.51 3.1: The Global Competitiveness Index 2009–2010 20 Table 8: The Global Competitiveness Index: Innovation and sophistication factors INNOVATION AND SOPHISTICATION FACTORS Country/Economy Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Benin Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Chad Chile China Colombia Costa Rica Côte d’Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Finland France Gambia.00 5.09 3.12 4.69 3.12 2.27 3.97 3.72 2.94 2.76 4.31 2.56 3.97 3.84 2.33 2.22 3.02 4.03 3.12 2.46 3.75 3.68 2.70 4.57 4.14 2.36 3.55 3.42 3.90 3.93 3.37 2.08 3.98 2.56 5.28 3.05 4.06 3.) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 12.84 3.40 5. Business sophistication Rank Score Rank Score 111 53 22 93 99 97 24 102 48 125 65 67 120 68 88 113 91 129 9 27 116 70 18 52 84 54 131 85 74 46 41 31 36 75 73 33 59 94 10 57 30 39 35 44 118 4 3 100 8 109 95 47 132 79 45 58 103 80 25 14 1 77 130 55 90 124 3.96 5.29 3.57 3.82 3.12 3.23 3.89 3.61 2.15 3.94 5.86 111 56 22 96 103 99 24 116 46 125 55 62 130 80 78 124 86 126 6 34 110 69 16 57 81 45 120 68 65 44 53 29 37 83 95 35 64 102 14 51 33 36 28 42 115 4 3 90 13 122 97 43 133 75 54 52 108 91 19 12 5 85 132 70 93 121 3.65 3. Kuwait Kyrgyz Republic Latvia Lesotho PILLARS 11.07 3.68 3.54 3.86 3.88 3.00 2.63 2.42 3.83 3.96 4.53 3.69 5.08 3.35 4.45 2.40 5.07 4.45 4.89 2.28 2.29 4.70 4.18 4.82 5.14 2.23 2.98 3.43 3.69 3.

reinforced by strong intellectual property protection. given that the financial crisis originated in large part in the United States.This implies that in many cases countries that improve in the rankings do so by maintaining a performance across the various indicators similar to that of past years. with particular concerns on the part of the business community about the government’s ability to maintain arms-length relationships with the private sector (48th). and in the perception that the government spends its resources wastefully (68th). Although the country is very competitive overall. remaining the highest-ranked country from Asia. dropping from 9th last year to 20th overall this year in that pillar.The country continues to be endowed with many structural features that make its economy extremely productive and that place it on a strong footing to ride out business cycle shifts and economic shocks. the United States falls one place and is ranked 2nd this year. ensuring a level playing field and enhancing business confidence.The United States has built up large macroeconomic imbalances over recent years. these include an independent judiciary. with some changes in rank among them.There is also increasing concern related to the functioning of private institutions. On the other hand. Repeated fiscal deficits have led to burgeoning levels of public indebtedness. And Switzerland’s macroeconomic environment.This strong innovative capacity is captured by the high rate of patenting (148. Singapore moves up two ranks to 3rd place. The United States is home to highly sophisticated and innovative companies operating in very efficient factor markets. Switzerland’s public institutions are rated among the most effective and transparent in the world (7th). After several years at the top of the rankings. In addition. and a highly accountable public sector. Some aspects of the institutional environment could be strengthened. Financial markets have also weakened somewhat. continues to be assessed as stable compared in particular with the United States and many European neighbors (ranked 17th).1: The Global Competitiveness Index 2009–2010 the context of the present recession. which are presently being exacerbated by significant stimulus spending. Singapore also has world-class infrastructure (ranked 4th). reflecting in particular difficulties in the national banking sector. the university enrollment rate of 47 percent continues to lag behind many other high-innovation countries. ensuring the proper allocation of these factors to their best use.The country is characterized by high spending on R&D. ports.27 per million inhabitants) in the country. this has been muted compared with many other countries. they are assessed even more strongly than in past years. the competitiveness performance of top-performing countries on average has declined. Singapore places 1st for the efficiency of its goods and labor markets and 2nd for its financial market sophistication. leading the world in the quality of its roads. ranked 3rd for its business sophistication and 2nd for its innovation capacity. For more analysis of the competitiveness of the United States.This is explained by the fact that Switzerland’s performance has remained relatively stable. it is hardly surprising that there has been a weakening of the assessment of its financial market sophistication. Labor markets are ranked 3rd. at a time when confidence in governments in many countries has diminished.The country’s institutions continue to be ranked as the best in the world. with a measurable weakening of the assessment of auditing and reporting standards (down from 20th last year to 39th this year). down from 66th last year. efforts should be made to boost higher education attainment to ensure sufficient national talent. and air transport facilities. placing the country 46th on this indicator. although weakening somewhat since last year. a strong rule of law. there are some weaknesses in particular areas that have deepened since our last assessment. characterized by the ease and affordability of hiring workers and significant wage flexibility. The country’s greatest overall weakness continues to be related to its macroeconomic stability.The country is also endowed with an excellent university system that collaborates strongly with the business sector in R&D. Combined with the scale opportunities afforded by the sheer size of its domestic economy—the largest in the world by far— these qualities continue to make the United States very competitive. just behind Singapore). Although gaps are currently being filled through immigration. and the strong collaboration between the academic and business sectors ensures that much of this research is translated into marketable products and processes. The countries that constitute the top 10 remain the same as last year. Competitiveness is also buttressed by excellent infrastructure (5th) and a well-functioning goods market (5th). However. the country’s competitiveness is propped up by a strong focus on The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. see Box 2. Switzerland’s scientific research institutions are among the world’s best. where it ranks 93rd.The country’s goods markets (12th) are also characterized by low levels of distortion within the context of a very competitive environment. whereas the United States has seen a weakening across a number of areas. However. More generally. as discussed below. Switzerland overtakes the United States this year as the world’s most competitive economy. Switzerland’s economy continues to be characterized by an excellent capacity for innovation and a very sophisticated business culture. perhaps not unexpected in the context of recent turmoil and scandals within the financial sector in particular. for which Switzerland ranks 7th worldwide on a per capita basis. 21 .a number of escalating weaknesses have taken their toll on the US ranking this year. as well as a labor market that is among the most efficient in the world (2nd.

Indeed. with low levels of public indebtedness. providing highly skilled individuals for the workforce. The country is endowed with top-notch scientific institutions (ranked 2nd) and companies that spend heavily on R&D (ranked 5th). Businesses and universities collaborate heavily in research. with high rates of job creation and low rates of unemployment. have been further emphasized by the present fall in the US ranking. the overall high levels of sophistication of the business community (ranked 8th) ensure that much of this innovation is translated into productive business activity. the United States has fallen to 2nd place in the Global Competitiveness Index (GCI). The IMF also projects deficits at least through 2010.The three countries have among the bestfunctioning and most transparent institutions in the world. the impact of this deficit spending on public debt is alarming. These weaknesses.1: The Global Competitiveness Index 2009–2010 22 Box 2: Is the United States losing its competitive edge? After several years at the top of the rankings. and this has pushed its GCI score downward this year. the sophistication of its business culture. despite the government’s pledges to rein in spending after the crisis. and will support recovery from the current recession. as in past years. Singapore could encourage even stronger adoption of the latest technologies—especially broadband Internet—as well as the innovative capacity of its companies. For example. and the assessment of bank solvency has dropped from a rank of 40 last year all the way down to 106th this year (on a par with countries such as Albania and Mali). ranked behind only Singapore on this pillar. as well as continuing burgeoning macroeconomic imbalances. With the many long-term claims on the budget— such as defense. much in line with the evolving situation in the country and recent bank failures and bailouts. recent stimulus spending. high national savings. and Sweden also continue to occupy the top three positions in the higher educa- The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Its labor markets are very flexible and efficient. is increasing the debt burden that will be borne by future generations. The efficiency of its goods and labor markets. the ninth year in a row that the federal budget will have shown a deficit. Macroeconomic imbalances also continue to afflict the United States. The level of innovation in the United States is second to none (1st in the innovation pillar). Access to finance through various channels has become measurably more difficult. as confirmed by its 1st place in the variable assessing this dimension. The United States has highly efficient goods and labor markets. the US economy has increasingly suffered from weaknesses in other areas. against a background of wage flexibility and considerable ease for hiring and firing at the firm level. they are all ranked among the top 15 countries with regard to macroeconomic stability. ensuring a large selection of quality goods at low prices. the fiscal deficit in 2009 is projected to exceed 13 percent of GDP. These factors remain a driving force behind US productivity. very education. and Denmark hold the 4th through the 6th places. and that accounting and auditing standards have not been up to scratch. ensuring an optimal allocation of these resources. and the impressive capacity for technological innovation of its companies. According to the latest estimates published by the International Monetary Fund (IMF). Indeed. Most notably. a number of weaknesses particularly related to public and private institutions. supplied in a timely manner. and other social payments (including healthcare)—the prospects for sustained fiscal adjustment do not seem bright. This culture of innovation is buttressed by a number of other critical factors. pensions. While strengths in the technological and market efficiency areas explain the country’s overall high rank. Sweden. Finland. as the loss of confidence in financial markets has now been added to the list of challenges to be addressed. Further. characterized by low levels of distortion in an environment of open competition across virtually all markets. while the flexibility of US labor markets has allowed for rapidly rising unemployment since the onslaught of the economic crisis. Finland.They continue to lead the rank- high attainment rates of tertiary education. The Nordic members of the European Union continue to hold privileged positions in the rankings. including the soundness of banks. continue to constitute competitive strengths. In the meantime. with debt rising sharply from 63 percent of GDP in 2000 to a projected 87 percent of GDP in 2009 and expected to continue to rise in coming years.1. all running healthy budget surpluses through 2008. over the past few years—and particularly this year—there is a much weaker assessment of the country’s financial markets. are assessed as the most efficient in the world. and excellent on-thejob training that fosters the ability of workers and businesses to adapt rapidly to a changing environment. Its goods markets in particular. It is clear that in order to ensure rising prosperity for future generations. which some observers consider to be the root cause of the financial crisis. and narrow interest rate spreads. the United States must get its macro house in order rapidly once the crisis subsides. supported by high levels of collaboration with universities in research. ings in a number of individual areas. have somewhat eroded the country’s overall competitiveness potential over the past years. However. while meant to head off an even more protracted recession. Denmark. In order to strengthen its competitiveness further. such as strong intellectual property protection. Related to this issue. there is also a strong sense that there has not been enough accountability among the country’s private institutions. outflanked by Switzerland this year. It is therefore not surprising that the United States ranks 1st worldwide in patent registrations. these same flexible labor markets are expected to encourage firms to hire more rapidly once the crisis subsides. spawning centers of innovation.

This has provided the workforce with the skills needed to adapt rapidly to a changing environment and has laid the ground for their high levels of technological adoption and innovation. Japan moves up one place to 8th overall.The country benefits from clear strengths The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. ranked 1st and 4th. however—as in a number of other European countries—companies have less flexibility in setting wages. at a time when many industrialized and developing countries alike are struggling with macroeconomic instability. On the other hand. highly efficient markets. Canada benefits from excellent transport and telephony infrastructure (7th for the infrastructure pillar). while other countries in the top 10 have weakened. just behind Sweden). and Sweden close behind at 12th.The financial market also continues to receive relatively good marks. Japan continues to enjoy a major competitive edge in the areas of business sophistication and innovation.The country is ranked 1st for the quality of its infrastructure. Denmark continues to distinguish itself as having one of the most flexible and efficient labor markets internationally (ranked 5th). especially goods markets. which are ranked 6th overall. which have led to the buildup of one of the highest public debt levels in the world (196. to concerns about the solvency of the banking sector and more difficult access to credit. The country’s overall competitive performance. the United Kingdom loses another place to settle at 13th this year. France (16th). Austria (17th). Finland (6th). in terms of innovation output this pays off with a rate of patenting per capita (263. and well-functioning and transparent institutions (17th). Notably. The Netherlands drops two places to 10th place. although the ranking has dropped in this area from 19th to 36th. Canada has improved in this area since last year. corresponding to a 23 . with particularly good marks for its transport and telephony infrastructure. respectively. respectively). Sweden (4th). several European countries have seen a weakening of their performance. as well as a capacity for innovation that is second to none. mainly by maintaining its performance compared with last year. rounding out the top 10. where a lack of flexibility in wage determination and the high cost of firing provide a hindrance to job creation. In Finland and Sweden. a position it has held for some time. and 12 are among the top 20. Norway (14th). linked.35 per million inhabitants) that is 2nd worldwide.This has paved the way for the country’s workforce to adopt the latest technologies for productivity enhancements (ranked 11th). improving on a relative basis compared with last year.The country’s companies are highly sophisticated (ranked 6th on the business sophistication pillar) and are among the most aggressive internationally in absorbing new technologies (ranked 2nd for their technological readiness. Denmark (5th). just behind Japan. as in many countries. having joined the top 10 last year. particularly labor and financial markets (ranked 7th and 11th. Germany has very sophisticated businesses. rising from 43rd to 31st.1: The Global Competitiveness Index 2009–2010 tion and training pillar. amid the economic and financial crisis. However.These attributes allow Germany to benefit greatly from its significant market size (5th). and firing and therefore hiring workers is deemed expensive.The country benefits from the strong availability of scientists and engineers and high company spending on R&D (2nd on both indicators). all three countries’ financial markets continue to receive high scores. linked to macroeconomic instability and questions about the soundness of its banks. Germany’s labor market remains very rigid (124th for the labor market flexibility subpillar). Six European countries are among the top 10.132nd rank. the United Kingdom (13th). Belgium (18th). Canada moves up one more place this year to 9th.The Netherlands is also characterized by a comparatively stable macroeconomic environment. or second to last on this indicator).The drop in the rankings can be traced mainly to a weaker assessment of its financial markets. ranked 2nd. Business activity is buttressed by an excellent educational system and efficient factor markets. Germany (7th). Germany remains stable at 7th place. have now become concerns for many other countries. Europe Since last year. which is crucial for countries at their advanced stage of economic development. with high budget deficits over several years (ranked 115th in 2008). with rising concerns about the soundness of banks and more difficult access to capital for business development. as follows: Switzerland (1st). In addition. continues to be dragged down by its macroeconomic weaknesses. with a high level of competition among companies (21st). respectively. with Finland and Denmark ranked 7th and 8th. the country has been successful in nurturing its human resources: it is ranked 7th for health and primary education and 9th for higher education and training. Indeed. although cooperation in labor-employer relations is good in all three countries. however. Further. After having fallen three positions in the last edition. A marked difference among these three Nordic countries relates to labor market flexibility.29 percent of GDP in 2008. which have dropped from 11th to 23rd overall. in these two pillars. for example. the result of a strong focus on education over recent decades. Europe continues to feature prominently among the most competitive regions in the world. Japan’s rise in the rankings can in large part be traced to the fact that its main areas of weakness. Its goods market is assessed as being efficient (18th). and Luxembourg (21st). the Netherlands (10th). Continuing to reduce the debt level will be important for ensuring the Canadian government’s ability to meet its future liabilities and grow sustainably into the future.

It is clear that structural reforms in this area. the bankruptcy of the three main banks—following their inability to re-finance short- term debt and a run on deposits—and the consequent takeover by the government of their domestic operations took a significant toll on the public finances. characteristics that are important for spurring productivity enhancements. based on rising concerns in the business sector about the soundness of banks (126th) on the back of several banking-sector bankruptcies and bailouts. first-class infrastructure (22nd).The country continues to have sophisticated and innovative businesses. standing in contrast to the rigidity of many other European Union (EU) countries. Italy is ranked 20th for its business sophistication.21 percent of GDP in 2008. providing the economy with a healthy and educated workforce. Spain has dropped four ranks this year to reach 33rd place. the sophistication of its business culture (10th in the business sophistication pillar) and its leadership in the area of innovation (18th in the innovation pillar) are important attributes that have helped to boost the country’s growth potential. its institutional environment (49th) could be strengthened to further buttress its economic potential. and well-functioning institutions (13th) complete the picture. Iceland can count on a top-notch educational system at all levels (2nd and 4th in the health and primary education and higher education and training pillars. In this context it is not surprising that a significant and growing weakness remains the United Kingdom’s macroeconomic instability (71st. dropping from 30th to 62nd place. which has slipped from 5th to 24th place since last year. still remains somewhat low by international standards. causing a sizeable hole in the balance sheets of its main financial institutions. there has been a measurable weakening of the country’s macroeconomic stability since last year. as well as the poor labor-employer relations in the country. Macroeconomic stability. a number of weaknesses are hindering the country from unleashing its full competitive potential.The public debt spiraled from 24. down 13 places since last year). Italy also benefits from its large market size—the 9th largest in the world—which allows for significant scale economies. right before the construction companies went bankrupt as a result of the explosion of the housing bubble. producing goods high on the value chain using the latest production processes (14th). Italy moves up by one place this year to 48th place. In addition. also thanks to strong business clusters (3rd). An extremely flexible labor market (6th). an exploding public-sector deficit (related in large part to recent efforts to bail out the financial sector). while growing. On the other hand.1. France is ranked 16th in this year’s GCI. with outstanding transport links. Indeed.26 percent in 2007 to 93. respectively) coupled with a rather sophisticated business sector (23rd) displaying high levels of technological readiness (14th) and innovation (16th). still raises alarm bells for the future: the government budget deficit and the related public-sector debt ratio remain large. while improved from last year (up to 58th from 65th).This is interesting because Spain’s financial sector was praised by world leaders during the 2008 G-20 summit. long mooted. It is especially interesting to note that the Spanish financial sector pillar has fallen 14 positions to rank 50th. And the greatest area of concern remains the highly inflexible labor market (122nd). energy infrastructure. and communications. The labor market remains among the most rigid in the The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .The drop in rank is largely attributable to a weakening of the assessment of the country’s financial market. However.The country’s infrastructure is among the best in the world (ranked 3rd). particularly the sophistication of its businesses environment. efficient infrastructure (11th). In addition. Spain’s competitiveness performance continues to be boosted by the large market (13th) available to its national companies. are overdue. ease the recovery and allow the Icelandic economy to bounce back more rapidly. and good-quality higher education and training (33rd). it is hoped. with the government now running budget deficits and contributing to the already large debt burden.The health of the workforce and the quality and quantity of education provision are other clear strengths (ranked 11th for health and primary education and 15th for higher education and training). strong technological adoption (29th in the technological readiness pillar). a matter of particular concern given the recently rising unemployment in the country—at 19 percent. Finally. with a stable performance compared with last year and demonstrating a number of competitive strengths. Italy’s overall competitiveness performance continues to be held back by some critical structural weaknesses in the economy.The United Kingdom is also harnessing the latest technologies for productivity improvements: it is ranked 8th on the technological readiness pillar. which discourages job creation. with low national savings. given the near economic collapse suffered by the country in the autumn of 2008.The country continues to do well in more complex areas measured by the GCI.25 Iceland drops six places to 26th position. Not surprisingly. France’s labor market flexibility continues to be ranked very low (115th) because of the rigidity of wage determination and the strict rules on firing and hiring. remaining nevertheless the lowest-ranked G-7 member country. and consequential public indebtedness. On a more negative note. and the national savings rate.1: The Global Competitiveness Index 2009–2010 24 such as the efficiency of its labor market (8th). the sound competitiveness fundamentals displayed by the country in key areas will. it is the highest in the euro zone. mainly because of a sharp deterioration in the macroeconomic environment (from 56th to 119th) and a much poorer assessment of the country’s financial market sophistication (from 20th to 85th). Nevertheless.Toward that end.

the Slovak Republic. Poland benefits from its strong educational system and large market size.1 Rapid integration with the global economy sustained growth in Eastern Europe over recent years but has also made the region more vulnerable to contagion during the economic crisis that is now having dramatic consequences in some countries. falling unemployment. and rapidly rising living standards following their accession to the European Union (EU) in 2004. While these are expected to register negative double-digit growth rates in 2009. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum (Cont’d. Other institutional weaknesses include high levels of corruption and organized crime and a perceived lack of independence within the judicial system. and the steep drop in global demand— especially in the European Union.7 Romania –4. the region is expected to contract by 4.) 1. with Italy ranked 117th out of 133 countries for its labor market efficiency. the Czech Republic takes the lead at 31st position. see Box 3. consistent improvements across all dimensions of the institutional environment (up 10 places. Another problematic area is its weak public finances and extremely high levels of public indebtedness (it is ranked 128th on this indicator—even lower than last year). By early 2008. The largest improvement among the new EU members is registered by Poland.2 Over the past two decades. has helped Poland to weather the effects of the current global downturn and become one of the most economically stable countries in the region. from 72nd to 62nd). In 2009. were less dependent on exports. privatized. benefited from stimulus packages of EU countries. and advances in technological readiness (30th) have contributed to this rise in the rankings. such as the Baltic States.This. Given this high dependence on outside finance. Although the macroeconomic stability pillar has registered a significant drop in rankings this year (from 50th to 74th) because of the financial crisis. or experienced a combination of these factors.3 along with EU membership. were members of the euro zone. in turn.6 Table 1: Growth projections for Eastern European countries Country Projected growth for 2009 Lithuania –10. with greater confidence in the efficiency and honesty of the country’s public servants.1 Slovenia –2. the country continues to be characterized by efficient institutions. Estonia at 35th loses some ground for the second year in a row. Similarly. it became apparent that the region had overheated. Latvia and Lithuania are down 14 and 9 places to 68th and 53rd. and impressive innovative capacity. the country’s macroeconomic stability has improved (up from 33rd to 26th rank this year).5 Slovak Republic –2. which increase business costs and undermine investor confidence. Azerbaijan moves up an impressive 18 places to rank 51st this year. Nevertheless. it is not surprising that Eastern European countries were heavily affected when liquidity dried up in the Fall of 2008. along with prudent regulation of financial markets and the large size of the domestic market. Slovenia (ranked 37th) follows closely behind. depending on their initial conditions and government policies. Massive capital inflows were necessary to finance balance-of-payment deficits. good infrastructure. and the Czech Republic will suffer from much milder recessions (see Table 1). were hardest hit. The relative stability that was associated with fixed exchange rates.7 Czech Republic –3.1: The Global Competitiveness Index 2009–2010 world.Box 3: Eastern Europe: The road to recovery After years of buoyant growth. well-functioning markets. with measurable improvements across 25 . In addition. up seven places to 46th rank this year.5 Open economies that were highly exposed to foreign currency borrowing and that ran large current account deficits. and stabilized their economies and opened their markets—including their financial sectors—to trade and investment. EU membership and buoyant growth over past years have provided an incentive and the means for conducting reforms. largely because of a deteriorating macroeconomic environment following the economic crisis. Yet countries were affected to different degrees. countries have deregulated.7 Bulgaria –2. They were less leveraged. having improved by five places. Slovenia benefits from world-class health and educational systems.0 Source: IMF 2009a. which remains the main export destination for these countries—further drove them into recession. gave rise to high inflows of lending as well as direct and portfolio investment from European countries. with Italy ranked 97th overall for its institutional environment. improved efficiency of markets (27th). the countries of Eastern Europe have been hit hard by the global economic downturn. These countries are weathering the crisis better for various reasons.3 Poland –0. accelerated credit growth and imports.0 Estonia –10. and strong uptake of new technologies. advancing its overall competitiveness outlook. respectively. creating a large hindrance to job creation. The second wave of contagion. Among the Baltic economies.4 These.0 Hungary –3.0 Latvia –12. Although the country continues to face difficulties with respect to macroeconomic stability (43rd) and the quality of infrastructure (48th). Poland. the years up to 2007 have seen a streamlining of fiscal and monetary policies. Among the 12 countries that have joined the European Union since 2004.26 For more analysis of the 12 recent EU accession countries.9 percent on average—more than Asia or Latin America. and has seen measurable improvements in the quality of its public institutions.

which is a new preventive facility. Over the past decade. the GCI results provide interesting insight into the region’s strengths and weaknesses and the necessary steps to be taken. The European Union and the European Bank for Reconstruction and Development (EBRD). 7 See Drzeniek Hanouz et al. 5 See IMF 2009b for more details. 5. Latvia. which remain far below EU15 levels.74 vs. many countries are transitioning toward the most advanced stage of development. physical infrastructure remains a major weakness that. 8 Many Western European Banks acquired the newly privatized banks in Eastern European countries. A similar gap can be observed with respect to the functioning of private institutions (4. 4.) The steep downturn necessitated immediate action to stabilize the economies. Much progress in upgrading competitiveness has been achieved in the course of the transition to market economies and EU accession. But to do this. the ease of access to finance through the local equity market (3.46 for the established EU countries. Accession to the European Monetary Union or the prospect thereof helped discipline fiscal and monetary policy. 5. Latvia. and Romania. but even regional best performer in this area Estonia. such as the Czech Republic (66th) or Slovenia (43rd). and the participation of women in the workforce.42 vs. the countries’ institutional environments will need to be strengthened. Because of this relative strength. for example through stricter capital requirements for weaker banks and putting in place forward-looking provisioning measures for loan losses.21 for the EU15. does not reach the average level of the EU15 with respect to the quality of public institutions. The present crisis has also highlighted weaknesses in the countries’ financial sectors.81 for the EU15). despite significant pressures.04 compared with 5.31 for the EU15). other relatively advanced countries from the region.50 vs. The IMF has bailed out Hungary. access to loans (3. tax rates tend to be lower and government regulation is less pervasive than in the EU15. reducing budget deficits and inflation rates.13 for the EU15). ranked 31st. Stronger private and public institutions would ultimately reduce vulnerability related to greater integration with the global economy. have also jumped in to support the banking sector.54 vs. 6 Measures implemented by some EU countries to support automotive industries had significant spillover effects on some countries in the region such as Poland.12). Yet the risks remain high and a significant gap vis-à-vis the “old Europe” remains visible with respect to financial markets sophistication (4. Slovenia. to a lesser degree. to Poland. the new EU members achieve a score of 4. In many Eastern European countries.62). this is the result of the relatively more critical assessment of this indicator in the EU15 in 2009. lag behind by an even wider margin. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . in particular with respect to regulations related to hiring and firing. advances will not only facilitate recovery over the next few years. Yet the present situation also provides an opportunity to strengthen economic fundamentals and overall competitiveness in order to put growth on a sustainable footing and prevent future crises. Notes 1 The Economist 2009a and IMF 2009a. the flexibility of wage determination. with only air transport infrastructure performing somewhat better. foreign direct investment from Western European banks (including the associated transfer of know-how). According to the GCI results. so that business sophistication and innovative capacity. on a scale of 1 to 7).9 Among other factors.7 This was attributable to. On average. and the Czech Republic. and also. Most of all. Latvia has experienced social unrest as a result of the crisis. as well as a few Western European governments. countries must seize this opportunity to put their economies on a more sustainable footing despite major short-term challenges. On all these counts. 2008. Similarly. the relationship between pay and productivity.42 vs. and public trust in politicians is low (2. however. and granted a flexible credit line. the GCI points to other areas that will need to be addressed on a priority basis in the region. While this relative flexibility and stability will provide advantages on the way to recovery. 9 See C˘ihák and Mitra 2009 for a discussion of financial sector reform in the region. In this context. will become increasingly more important in order to sustain the productivity gains achieved over the past years. if adequately addressed. no systemic failures of banking systems have been observed to date. Lithuania. labor markets are more flexible and efficient than they are in the EU15. Much progress has been achieved since the early days of transition. among other factors.68 vs. would significantly contribute to raising the competitive performance of many of these countries.1. 4 Combined with fixed exchange rates. In most countries. this has led to inflation in many countries. There is also scope for strengthening financial supervision in some countries. Also.39 in the EU15). but will further solidify the region’s competitive position going into the future. 5. 4. corruption is rampant (3. and Bulgaria have fixed exchange rates. 3 Estonia.8 as well as fairly solid financial policy frameworks. the soundness of the banking sector is approximately at the level of Western Europe.1: The Global Competitiveness Index 2009–2010 26 Box 3: Eastern Europe: The road to recovery (cont’d. 2 For example. governments are considered inefficient (3. 3. the sophistication of the financial sector as well as the stability of the banking systems in Eastern Europe converged toward EU15 levels.44 vs. 4.

see Box 4. an area one would expect to reflect some effects of the financial crisis. Labor markets are ranked a high 13th (up from 34th last year). although this is mainly because of other countries’ weakening rather than particular improvements in Turkey’s fiscal and monetary policies. The expert survey of Box 1 is also in line with this decline. The experience of the four large emerging market BRIC economies is illustrative of this point. Although GDP growth rates in emerging markets have not fallen as much as they have in advanced economies. What is causing this divergence in performance? Table 1: Comparison of GCI 2009 and 2008 for BRIC countries Country GCI 2008–2009 GCI 2009–2010 Change in rank Brazil 64 56 8 China 30 29 1 India 50 49 1 Russian Federation 51 63 –12 The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum (Cont’d. 27 . characterized by high and improving flexibility (for example.Within goods markets (up 18 places. and India have continued to improve on their competitiveness fundamentals. However. as shown in Table 1. little judicial independence in meting out justice (116th). However. especially labor and goods markets. posting strong showings in the most recent GCI results. goods markets (ranked 108th) and financial markets (ranked 119th) getting poor marks. a large budget surplus.The country is characterized by strong and improving macroeconomic stability. and reinforcing the efficiency and transparency of public institutions. Compared with other countries. and other types of financing. the country improved from 70th to 4th position in the rigidity of employment index). and low and shrinking government debt. with corporate ethics in the country placing Russia 110th overall on this indicator. with high national savings. foreign direct investment.Turkey has also seen an improvement in its macroeconomic stability. which rated these same three countries among those on which the global recession will probably have a mildly positive effect on their longer-term competitiveness. improving the human resources base through better primary education and better healthcare (74th). Within this group. On the other hand. China. it has become much easier and less expensive to start a business: the number of procedures required more than halved from 13 to 6. Brazil. As discussed in the chapter. Indeed. those countries that are more competitive are better placed to weather such economic storms as the present one.1 the notion that the developing world would be only marginally affected by the crisis.The drop in overall rank is mainly attributable to a weaker assessment of the functioning of factor markets. the country must tackle a number of structural weaknesses. remittances. with a stable performance overall. which is characterized by strong competition (26th) and reasonably sophisticated business practices (52nd). in particular. Of major concern are a perceived lack of government efficiency (110th). although high inflation does raise some concerns. On the other hand.There have also been measurable improvements in the efficiency of the country’s markets. Russia collapsed by 12 places. it rapidly spilled over to the developing world through the contagion mechanisms of reductions in trade. now ranked 62nd (especially ports and the electricity supply). the country is one of the ten biggest improvers in the World Bank’s Doing Business 2009 report. Private institutions also get poor marks. with experts on average expecting Russia’s competitiveness to be negatively effected in the longer-term by the crisis. All three countries improved their ranks. losing significant ground in general competitiveness. moving up 18 spots to 27th place this year. with.) 1.Box 4: The competitiveness of the BRICs amid the global economic crisis Although the present major economic crisis began in the advanced economies.1: The Global Competitiveness Index 2009–2010 many aspects of the Index. from 89th to 71st). and more general concerns about government favoritism in its dealings with the private sector. addressing the inefficiencies in the labor market (120th). moving up from 79th to 64th this year. with a notable deterioration in financial market efficiency. it is important to note that the crisis has not affected developing countries in a homogenous way— some economies are showing a higher resilience and even managing to enhance their competitiveness in the midst of the global downturn. Russia falls 12 places this year to 63rd. a lack of property rights (119th). some more basic issues must still be tackled. For a comparative analysis of the competitiveness of the four BRIC economies. the only BRIC economy to see a decline in performance. and the time required has been reduced from 30 to 16 days. Russia’s main strengths are its large market size and reasonable macroeconomic stability (although this has been partly the result of windfall oil revenues and might not prove sustainable in the longer term). This was also mirrored in the results of the expert survey discussed in Box 1.Turkey continues to benefit from its large market. with China and India each improving by one place and Brazil by a remarkable eight places. Turkey moves up two places to 61st this year. such as upgrading the quality of infrastructure. having decoupled from the business cycle of industrialized economies. has not held true. to improve its competitiveness further.

and Brazil with respect to technological readiness. Goods market efficiency 5. Institutions 1 28 Figure 1 shows the score (on a scale of 1–7) of each of the four BRICs. and India have benefited from their more diversified production and export structures. Indeed. given the structure of its output. is also marked in a few other key areas measured by the GCI. India for financial market sophistication. and with Russia lagging well behind. China. and the 133 country sample average 7 Score 1. 4th.) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . Financial market sophistication 7. Finally. Macroeconomic stability 2. with especially India but also Brazil above the GCR average and China close to it. India. and India on the one hand.2 For example. The BRICs also benefit significantly from the economies of scale afforded by their large markets. respectively. Russia. The country not only exports a large proportion of its GDP (although somewhat less than China). China. Higher education and training 4. and Brazil boast the 2nd. combined with sound macroeconomic fundamentals—particularly in China and Brazil—might also help to explain why the three have not been affected as strongly by the financial crisis as Russia. A distinction emerges with Russia with regard to the size and structure of the export component of the market size pillar: Russia is less sheltered from price and demand shocks than the others. The difference in performance between Brazil. Infrastructure 1. such as China in the areas of infrastructure and macroeconomic stability. with regard to human resources. Market size 9. namely innovation and business sophistication—areas on which these countries will need to focus increasingly as they (Cont’d. Labor market efficiency 6. in the 12 pillars of the GCI. we come to the more complex areas measured by the GCI. Their comparatively developed financial markets.) India Russian Federation Brazil China GCI average 4 12. all four countries are near or above the average country score for health and primary education and higher education and training. Innovation 11. but its exports also are dominated by oil and gas (65 percent of total exports in 2007).1: The Global Competitiveness Index 2009–2010 Box 4: The competitiveness of the BRICs amid the global economic crisis (cont’d. There are also some areas in which particular countries perform comparatively well. as shown in the figure. Health and primary education 3. scoring well ahead of the overall GCI average country score. China. Business sophistication 10. the gray bars indicate the average score of the 133 countries included this year. Financial markets are more highly developed in the former three countries. Russia is the laggard in the business sophistication pillar. Brazil. with companies operating higher on the value chain and successfully exporting value-added products to international markets. and 9th largest domestic markets in the world. 8th. which partly explains its less positive performance vis-à-vis the external shocks caused by the crisis. In contrast. This has provided a buffer in the face of the economic crisis because they depend less on exports than the average developing country: the sheer size of BRIC economies means that their companies can rely on millions of domestic customers when foreign demand declines. Technological readiness 8. and Russia on the other. The figure shows that all of the BRICs do better than the world average in specific areas.Figure 1: Comparison of GCI scores for the four BRIC economies. each represented by a colored dot. In addition. as well as for labor market efficiency (with India lagging a bit compared with the others).

and this has been of great benefit through the recent difficulties.Figure 2: Comparison of BRIC and OECD average scores across the 12 pillars of the GCI Institutions 7 Innovation Infrastructure 6 5 Business sophistication Macroeconomic stability 4 3 2 Market size 1. strengthening human and hard infrastructure. and enhancing market efficiency as well as further developing their innovation capacity. but rather a powerful incentive to push through the necessary reforms and policies that would fully unleash their enormous competitive potential. The above factors demonstrate how Brazil. and India confronted the crisis from a stronger competitiveness footing than Russia. improving the educational system remains a significant challenge for Brazil. Notes 1 According to International Monetary Fund estimates (IMF 2009a).3 percent in emerging and developing economies. while Russia remains below average in both pillars. improved business environments. one should not forget the significant remaining challenges ahead in building better institutional frameworks. China. can cloud weaknesses in the individual BRICs when held to a more stringent benchmark. and/or more competitive productive sectors. For example. China. as shown in Figure 2.) Health and primary education 1 Higher education and training Technological readiness Financial market sophistication Goods market efficiency Labor market efficiency BRICs OECD 29 move up the development ladder. and financial market development is a priority for China. which includes several low-income and less-developed economies. the comparison of the BRICs with the OECD average. be it through enhanced macroeconomic stability. In both these areas.1: The Global Competitiveness Index 2009–2010 Box 4: The competitiveness of the BRICs amid the global economic crisis (cont’d. it is important to keep in mind that strong performance vis-à-vis the world average. The relatively rosy outlook in relation to most of the world should not be a reason for complacency. although it is important to give credit to these economies for the strides they have made toward stronger competitiveness underpinnings. it will significantly slow down but still reach 3. Indeed. their competitiveness has improved markedly in recent years. However. shown across the 12 pillars in Figure 2. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . while GDP growth will be negative in 2009 for advanced economies (with a 2 percent contraction). A comparison with the OECD average. 2 The world average is useful for comparing the BRICs’ performance with that of countries at all stages of economic development. Yet. Brazil. is much more useful for this purpose. Indeed. This represents a downturn similar in proportion to the one suffered by developed economies when one takes into account the higher trend growth rates experienced by the region in past cycles. demonstrates the efforts still needed across most areas. and India again outperform Russia and are assessed as above the overall country average. as discussed in the chapter.

More generally. as it struggles with the consequences of the economic crisis. Ukraine faces daunting challenges in the short term. Australia managed to balance its budget and reduce its public debt to 14 percent of GDP—the second lowest among OECD countries after Luxembourg. and rendering goods markets more efficient (109th). and if Taiwan can improve on its institutional framework (38th) and the efficiency of its financial market (54th)— by far its two weakest spots—the competitiveness landscape will be even brighter in the years to come. On a more negative note. up 10 positions). and trade profile—the country is one of the world’s biggest commodity exporters. with its score decreasing less than that of other large economies. the quality of public institutions (10th overall). and in particular the efficiency of the government (2nd). Its performance remains very much in line with that of last year. geographical. with Timor-Leste (126th) closing the regional ranking.28 A second area of concern is the financial market. past reform efforts will have to continue. Singapore and Japan. It places no lower than 8th in all indicators but one. Sparsely inhabited Mongolia stands in contrast to countries such as Bangladesh. continues to be praised by business leaders. remoteness. Provided macroeconomic fundamentals are kept in check. down seven places): inflation. thanks to a combination of small improvements in the areas of institutions (38th). and a near breakdown of the financial system. and excellent public (14th) and private (9th) institutions.The territory has improved its marks in the infrastructure pillar. one of the world’s most densely populated countries. interest rate spreads. Hong Kong SAR retains its 11th position. with a great diversity among individual countries. the country ranks 118th with respect to labor market flexibility. infrastructure (16th). the other countries from Asia and the Pacific span the entire GCI ranking. It is thus the region with the largest spread in performances. although its score and lead are eroding. and ultimately hurting Australia’s competitiveness. Despite the waves of consolidation and The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . It continues to top the financial market pillar. and continues to lure both investors and companies. In 2008.A major labor law reform bill aimed at increasing flexibility while providing a better safety net exists. resulting in delays and contractual issues. and cultural diversity is reflected in the variations in the competitiveness landscape. With a steep fall in demand for export products. Australia remains a prime location for doing business with efficient goods markets and flexible labor markets (both ranked 9th). but it has yet to be approved by the parliament. Asia and the Pacific Behind the two regional economies in the top 10. a devaluation of the currency.27 Korea falls six places to 19th position. the only notable improvement coming from the macroeconomic environment (18th. Kazakhstan. Above all. high-tech Taiwan and innovationdriven Korea are grouped together in the region with oil-rich Brunei.1: The Global Competitiveness Index 2009–2010 30 The remaining countries from the region place below Russia. and education (15th). strengthening financial markets (106th). the country will need to improve on several measures of business sophistication (26th) and strengthen its innovation capacity (20th). Finally. and features in the top 10 in five of the 12 GCI pillars. drops one position to 67th place and Ukraine drops by 10 spots to 82nd. thus creating precarious working conditions and giving rise to tensions—Korea ranks third to last for the quality of relations between employers and workers. Even though the crisis hit the country hard—the Hang Seng Index lost over 60 percent within six months from its peak in November 2008—Hong Kong undoubtedly remains one of the world’s major financial centers. Infrastructure is a keystone of Australia’s economy given its large land mass. perhaps not surprising given that it hosts almost two thirds of the world’s population. Hong Kong offers one of the world’s most business-friendly environments. Nonetheless.To progress even further. First.The regional ranking closes with Tajikistan at 122nd and the Kyrgyz Republic at 123rd. in particular aiming at upgrading the institutional environment (120th). Australia improves by three positions to rank 15th overall. This leads companies to resort extensively to temporary employment. In effect.The trustworthiness and confidence in the banking system remain essentially intact (4th). By the government’s own account. Taiwan is up five places to 12th position overall.1. and the government posted a small budget deficit. Australia also has improved its showing in the financial markets pillar by two places (4th worldwide).Taiwan’s significant progression owes to the fact that the island has now entered the third and most advanced stage of development as defined by the Global Competitiveness Index frame- work.Taiwan now gets fully rewarded for its outstanding capacity to innovate (6th).The decline is attributable to deteriorations in three categories that were already of concern. particularly ports (50th). and to small. and public debt were all on the rise in 2008. particularly the banking sector. there is a need to upgrade infrastructure (25th). urban Singapore.This is partly because of its close links with mainland China’s financial market.The business community’s discontent about the difficulty of hiring and firing employees (108th) is particularly pronounced and mirrored by Korea’s low rank in the World Bank’s Doing Business rigidity of employment index (92nd). Most importantly. now placing second only to Germany. the innovation pillar accounts for 15 percent of the overall GCI score. deficient port infrastructure represents a bottleneck in the export process. for countries in the third stage.This significant economic. we observe a generalized weakening of the macroeconomic situation (25th.

1: The Global Competitiveness Index 2009–2010 restructuring the sector has undergone since 1997. while it remains one of the world’s innovation powerhouses (11th in the innovation pillar). as reflected in the country’s 35th rank in this area—its lowest for any of the 12 pillars. It ranks 1st with respect to corporate ethics. by 20 positions. ahead of the closest contender.0). particularly ICT penetration. to a lesser extent. And when it comes to private institutions. health and primary education (42nd. higher education (61st).9 to 5. essentially as the result of a much poorer assessment of its institutional framework. behind only Singapore and three Nordic countries. down two). It is the only country within the top 20 to improve its score year on year (4. strong macroeconomic stability (11th). But China can already rely on a relatively sophisticated business environment (38th. India. namely institutions (36th. which drive its overall productivity and keep it placed in the top 20 of the rankings. an increase attributable to a number of small improvements across the board.These combined strengths provide the basis for China’s overall strong position in the GCI ranking.Third. Korea ranks a low 53rd with respect to the quality of its institutions. Yet Korea continues to be characterized by a number of strengths. every indicator has been exhibiting a downward trend since 2007.The sultanate continues to do relatively well in all the categories that matter the most given its stage of development. Security is of particular concern (85th. particularly in those factors at the top end of the value chain.32 Brunei tops this latter category thanks to a hefty budget surplus equivalent to one third of its GDP (4th highest). In this light.To maintain its competitive edge. its competitive edge can no longer be based on the use of cheap factors of production alone and increasingly must be based on efficiency improvements. New Zealand’s infrastructure is in need of upgrading. in just three years.30 The GCI captures a number of these efficiency-enabling factors and reveals that China still presents some shortcomings—in particular with respect to financial market sophistication (81st) and technological readiness (79th). up five). Also of concern is the budget deficit. supported by efficient goods (8th. New Zealand (20th) advances four ranks and joins the top 20. Malaysia now needs to prepare its conversion into a knowledge-based.The country maintains or improves its ranking in no less than 85 indicators out of the 113 that compose the GCI. up nine places) and labor (11th) markets. innovation-driven economy. infrastructure (41st. the perceived opacity of policymaking (100th).The goods market does not The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1.Yet in most other 31 . the high level of household indebtedness.Yet the country is not immune to the crisis. causing Malaysia to tumble from 17th to 43rd position in this dimension in just two years. Expectations are high for a country that averaged an impressive 7 percent growth per year between 1990 and 2000 and a healthy 5 percent since then.Yet the challenges inherent in diversifying away from oil and gas are enormous. which increased in 2008. after market size. Furthermore. Public institutions are assessed very well. and controlled inflation (2. as measured by the GCI. up five). up two) to move up the value chain. very much like neighboring Australia.This rapid progression is posing new challenges to China. Overall. In this area. investment in infrastructure projects and incentives to boost innovation capacity would be expected to improve the country’s competitiveness going into the future. banks are still very much seen as unsound (90th). After 10 years of uninterrupted growth. As the country moves up the development ladder.dimensions it scores high. Korea has world-class infrastructure (17th). it remains the most competitive Stage 2 (efficiency-driven) country. and by one of the soundest financial systems in the world (3rd). China’s enviable fiscal situation allows the government to stimulate internal demand. and an excellent higher educational system (16th). would serve this effort well. Survey data show a general dissatisfaction with the government. and protection of shareholders. New Zealand is second to none. Malaysia has featured prominently in the competitiveness rankings ever since its first inclusion in 1994. According to the business community. 6th lowest). Specifically. and 2nd for the efficiency of corporate boards. and the burden of red tape (98th). In addition. it outperforms the other BRIC economies. A number of measures also reveal the relative rigidity of the labor market. and macroeconomic stability (1st). and. and pursue economic reforms.The overall environment is generally not conducive to doing business.The country’s very high growth rates in recent years have moved China from Stage 1 to Stage 2. the potential of terrorism (97th) and crime (95th) both impose significant business costs. within the government’s stimulus plan. down 25 ranks). invest in infrastructure. Mirroring this economic success. up five) and its capacity to innovate (26th. New Zealand will experience a mild recession in 2009.29 Malaysia (24th) drops three positions. At 29th. Improving both the quantity and quality of higher education (41st) and boosting technological readiness (37th).7 percent. Up one position from last year. placing New Zealand in 5th position worldwide. which has been aggravated by its large current account deficit. namely business sophistication (24th) and innovation (24th). and the fall in commodity prices.This will pose challenges for the country to achieve the minimum growth rate—8 percent by the government’s own estimates— necessary to prevent any rise in unemployment and avoid social unrest.31 Following last year’s first inclusion. China consolidates its presence in the top 30. Indeed. the environment is extremely conducive to business. Brunei Darussalam leaps seven places to 32nd. high savings (2nd). the strength of auditing standards. as reflected in the mediocre level of trust in politicians (67th).The incidence of corruption is minimal by all measures. amounting to almost 5 percent of Malaysia’s GDP.

Addressing and overcoming these challenges is a condition that must be met to further widen the economic base beyond oil and gas. Unsurprisingly. in particular.With respect to public health (78th). Although mobile telephony penetration is among the densest in the world at 124 mobile subscriptions per 100 population. Insufficient protection of property rights (75th) and security (85th) are of particular concern to the business community. ICT penetration rates remain low by all measures and have been improving more slowly than in other countries. down two places. Ranked 63rd in this category.The country also boasts fairly well functioning institutions (54th). while inefficiencies in the labor market (83rd) prevent an optimal allocation of human capital.Thailand’s technological readiness (63rd) is also lagging. Thailand (36th) drops for the second year in a row. namely health and primary education (101st). in particular with respect to ports (95th) and roads (94th). It ranks an outstanding 28th in the most complex areas measured by the business sophistication and innovation subindex. Although the country improves in most of the categories of the Index. Sri Lanka is at 79th. HIV/AIDS. the assessment of Indonesia (54th) is very much in line with that of the previous three years. macroeconomic stability (96th)—though improving—and infrastructure (76th). technological readiness (60th). the quality of public institutions continues to deteriorate. while infant mortality remains high. financial markets. On a more positive note. the Internet (104th). and innovation (75th) all exhibit major shortcomings. several indicators reveal the poor level of public health: tuberculosis and malaria incidence are among the highest in the world. higher education. the country fails to improve significantly on any of the basic determinants of its competitiveness. and a sound banking sector (25th) supported by a vast domestic market (4th largest in PPP terms).6 percent per year on average since 1991. similar to the situation in India.Thailand has dropped 20 places over the past three years. but does not reduce the urgency of making improvements in the other priority areas highlighted above. At the same time. which afflicts 1. the considerable worsening of its macroeconomic situation—dropping from 70th to 112th place—weighs heavily on its economy and competitiveness. India’s GDP has grown 6.This certainly bodes well for the future. Looking at the most positive aspects of Thailand’s performance.The global downturn added to Thailand’s severe political turmoil and social unrest with grim consequences for the country’s economy.The government coalition is now faced with the double challenge of jumpstarting the economy and restoring political stability. Vietnam is down five positions to 75th. A widening trade deficit.000 population) are all major concerns. and personal computers (96th) remain among the lowest in the world. related to this last area. Furthermore.000 population).1. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . respectively. business sophistication (77th). Indonesia is now in transition between being a factor-driven economy and becoming an efficiency-driven one. Still at an early stage of development. and the gap with the other countries of the region is widening. Like last year.The third area of concern relates to technological readiness (88th). In addition.Three areas—among the most important given Indonesia’s current stage of development—are of particular concern. the macroeconomic situation (22nd) improved slightly between 2007 and 2008. Indonesia ranks higher in more complex factors such as business sophistication (40th) and innovation (39th). when many economic reforms began in earnest. and malaria (400 cases per 100. more than twice China’s equivalent figure. Second. bustling financial markets (16th). the use of the Internet (21 users per 100) and computers (6 per 100) remains scarce. the local currency. It is crucial for monetary authorities and the government to bring inflation back under control and restore macroeconomic stability so that Vietnam can reap the benefits of the efforts and successes achieved in other areas.This in turn triggered a crisis of confidence.The country’s competitiveness inevitably suffers from protracted instability. On the other hand.4 percent of the adult population. India’s competitive performance continues to exhibit a rather reversed development pattern. which together account for half of Brunei’s GDP. the sheer size of its domestic (22nd) and foreign (18th) markets is a source of economies of scale. penetration rates for mobile telephony (116th). Mirroring this dichotomy.The efficiency of the labor market (25th) constitutes another strength. big swings in interest rates. and a sharp fall of the dong. the country underperforms on some of the basic determinants of competitiveness. tuberculosis (142 cases per 100. which is expected to shrink between 3 and 4 percent in 2009—the first contraction since the Asian Financial Crisis of the late 1990s. First. Finally. ahead of several advanced economies. the level of competition is disturbingly low (106th). some 42 percent of the population lives on less than $1. and a global rise in commodity prices caused inflation to shoot up to 23 percent in 2008. India hosts some of the best universities in the world. an overheating economy. infrastructure is in need of upgrading (84th). Indeed.The country’s competitiveness will therefore increasingly be driven by such efficiencyenhancing factors. yet its GDP per capita remains just above US$1.1: The Global Competitiveness Index 2009–2010 32 function efficiently (100th). A wide gap also remains between rural India and its thriving economic and technological hubs. and a number of Indian corporate giants have become major global players or even leaders in their fields. of those in China and Russia. Moving up one place. India is up one position at 49th. Improvements in these areas would place India on a stronger growth trajectory going into the future. Once a member of the top 30. Pakistan ranks 101st.25 a day (in PPP international dollars).000—a third and a tenth.

and Uruguay (65th). Completing the picture. respectively. Bangladesh inches up five ranks to place 106th. and well-functioning goods (26th). Puerto Rico follows Chile as the second-most competitive economy in Latin America and the Caribbean. infrastructure (89th). namely Costa Rica (55th) and Brazil (56th). the region’s important competitiveness potential does not seem to have fully been reflected to date in the GCI rankings. as well as excellent primary (6th) and higher (26th) education. and benefits for the poor. Furthermore. Only Chile (30th) appears among the top 30 performers globally.9 percent in 2009.9 percent. highly developed infrastructure (30th). although it has lost some ground in the last two years. and. several economies are still expected to grow moderately in 2009: growth estimates include Panama (2. although average GDP for the region is expected to contract by 1. Peru (2 percent). Most notable among these are reduced debt levels and increased foreign currency reserves. Barbados improves three places to 44th. labor (41st).Third in the region. up one) and TimorLeste (126th. and Colombia (0. temporary tax cuts for small enterprises.This has consistently focused on high-quality education. the threat of terrorism bears heavily on the business community. whereby very poor macroeconomic fundamentals (115th). and basic (128th) and higher education (118th).1 percent— a higher rate than the projected average world growth rate in that year of just 1. effectively absorbing technology and knowledge coming from abroad. featured in the upper half of the rankings. as well as consistent macroeconomic management have resulted in extremely high growth rates over the last two decades or so. Chile leads the region in competitiveness at a stillremarkable 30th place.The main area requiring improvement for Chile going forward remains the unsatisfactory quality of its educational system. Brazil (up 8 places). Indeed.5 percent). 33 .This reflects the rather strong footing of most of the countries in the region that enables them to weather the crisis. and there is still a significant—although closing over the past few years— gap with respect to the second tier of Latin American best performers. with dynamic businesses operating high in the value chain (29th) and with an important innovation potential (31st). A number of countries—among them Uruguay (up 10 places). among others. an extra US$1 billion to finance the National Copper Corporation of Chile (CODELCO)’s investment activities. and Costa Rica (up 4 places)—are realizing important advances in the midst of a major external shock on export demand and financing availability. Costa Rica climbs another four ranks from last year to reach 55th place. with an overall 13-position improvement since that year. it is projected to start growing again in 2010 at 3. among other things. good governance standards. a relatively inefficient goods market (72nd) go hand in hand and are counterbalanced by first-class institutions (20th) and infrastructure (21st). able to stimulate the economy in the current slowdown with a comprehensive stimulus package. and production and export diversification—notably toward high-tech The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. to a lesser extent. Despite a slight improvement in both cases.Latin America and the Caribbean The competitiveness landscape described by the GCI this year for Latin America and the Caribbean is fairly encouraging.The country displays a rather mixed performance. Mongolia falls to 117th place. Among the island’s main competitive advantages are its sound innovation and sophistication factors (31st). thanks to the sounder macroeconomic fundamentals achieved in recent years. more than any other economy in the region. a small market size (126th). and financial (32nd) markets— the latter displaying the largest pension industry in the region.1: The Global Competitiveness Index 2009–2010 namely institutions (104th). Chile is now. primary and higher education continue to be assessed fairly poorly at 96th and 45th ranks. notwithstanding increasing investment in education and rising educational attainment rates. and US$700 million for infrastructure projects. among other factors. macroeconomic stability (114th). pointing to the need for further upgrading if Chile is to catch up with best practice countries and establish an innovation-conducive environment. demonstrating the success of the unique development strategy followed by the country over decades. with a four-position fall overall.33 At the same time. Panama (59th). followed by the small Caribbean economies of Puerto Rico (42nd) and Barbados (44th). complete the list of the region’s most competitive economies. Notably. Chile’s performance in the GCI is especially boosted by efficient and transparent institutions (35th). continuing the upward trend observed last year.The package involves fiscal measures worth US$4 billion. whereas Nepal (125th. while Cambodia drops one rank to 110th.To make things worse. notably through FDI (21st for FDI and technology transfer). It is worth noting Costa Rica’s remarkable evolution in the rankings since 2006. Fairly stable at 42nd. up three) improve their performance slightly but remain among the world’s least competitive nations.Trinidad and Tobago (up 6 places). Colombia and Peru (both up 5 places).6 percent). brought about by the current global economic crisis and lower commodity prices. thanks to the countercyclical policies followed in recent times of high commodity prices. Chile also boasts a sophisticated business sector (39th). overtaking Panama (59th) as the best performer in Central America.34 Besides sound macroeconomic fundamentals (19th). Mexico (60th). It also has a well-developed financial sector (19th) and efficient goods markets (34th). The country’s successful early and timely market liberalization and trade opening.

the government has earmarked approximately US$80 billion to support small. At the same time. and a comprehensive value chain breadth (54th). overcoming Russia for the first time.35 The regional giant Brazil. and diversifying its economy are now enabling the country to address the recession more effectively. macroeconomic stability. a number of shortcomings remain to be addressed for Brazil to fully tap its important competitive advantages and further reduce poverty and income inequality. Mexico was the first country to access a new International Monetary Fund (IMF) facility—the Flexible Credit Line—aimed at supporting otherwise sound economies in addressing economic challenges without conditionalities. liberalizing. macroeconomic stability. Multilatinas have made this transition notably by investing massively abroad. in the region and beyond. the GCI analysis points to some important weaknesses in key areas for the country’s sustained growth in the medium to long term.The important steps taken since the 1990s toward fiscal sustainability. and a particular effort should be made to reduce the high student dropout rates and regional disparities in education attainment and quality. one of the most developed financial markets in the region (51st). the educational system at all levels (79th and 58th for health and primary education and higher education and training. high payroll taxes.41 The important steps taken by Mexico in the last two decades toward more responsible fiscal policies (28th in the macroeconomic stability pillar) as well as in opening.8 million in 2006) because of a number of significant acquisitions and investments abroad made by the national multilatinas that year. housing. and is not creating an environment conducive to adopting new technologies (71st in the technological readiness pillar) and generating new ones (78th in the innovation pillar). at 65th and up 10 places from last year. Brazilian FDI outflows exceeded inflows in 2007 (US$28 million vs. On a less positive note. and partially closing the competitiveness gap with India and China among the BRIC economies.This is particularly notable given Mexico’s close association with the US business cycle in terms of availability of financing. 18. and that exports mainly manufactured products. while the poor state of the country’s infrastructure (82nd) represents a potential bottleneck for further economic modernization and diversification. with widespread red tape and insufficient competition. macroeconomic stability (109th). trade. together with Mexico. red tape and rigidities in different sectors continue to affect the country’s business environment.1. gaining another eight positions. at 56th.These include the sound macroeconomic fundamentals already mentioned. and a diversified and fairly sophisticated business sector (62nd) that displays relatively well developed clusters (53rd). Further action is needed to liberalize markets. and remittances.36 as well as measures taken to liberalize and open the economy. and improve public governance in the country.39 However. Among the anti-crisis measures. Last but not least. notably scientists and engineers (94th). and the peso.and medium-sized enterprises. upgrade the educational system. Equally worrisome are Mexico’s rigid labor market (115th)—characterized by burdensome labor regulations. quality local suppliers (47th). from which Brazil’s growth potential critically depends in its current stage of development. higher education and training. antipoverty programs. and a diversified and sophisticated business sector (32nd) with a significant potential for innovation (43rd). continues the impressive upward evolution it started last year. together with high insecurity (125th) due to spiraling and widespread violence and crime.37 Brazil. Finally. notably its extensive and growing domestic market (9th).42 A number of competitive advantages underpin Mexico’s competitiveness performance. notwithstanding recent progress. and thus realizing an increasing portion of their revenues internationally. remains a cause for concern. demonstrating some resilience to the current international economic downturn. Moreover. at 101st. Moreover.The GCI underscores Costa Rica’s fairly good institutional environment (47th). respectively) remains in serious need of upgrading.38 has been at the forefront of the Latin American multilatinas phenomenon by which—thanks to superior technology and organization—local companies have successfully turned global. It has made significant progress in various areas. quality education at all levels (29th for primary education and 44th for higher education and training).The inefficiency of public institutions (101st). notwithstanding some improvements in recent years.The country’s development model and competitiveness strategy rest on a continuous emphasis on education at large (ranked 52nd for health and primary education and 50th for The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . presents the largest improvement in the region. providing a better environment for private-sector development. and the efficiency of the goods (99th) and labor markets (80th) continue to be poorly assessed. and technological readiness. and high social contributions—and inefficient goods market (90th).40 Mexico’s rank remains unchanged at 60th.43 Uruguay. oil prices. are reasons for concern. have significantly boosted the country’s competitiveness fundamentals. It also reflects Brazil’s main competitive strengths. including infrastructure.The GCI assessment highlights further improvements across the board from last year. thanks to a comprehensive network of preferential trade agreements and an important and expanding domestic market. the higher education and training system (74th) does not seem to provide the economy with the necessary pool of skilled labor. one of the largest markets in the world available for local companies (11th).1: The Global Competitiveness Index 2009–2010 34 products and eco-tourism. and the sophistication of its businesses (41st) and innovation potential (34th) as areas of strength. despite the government’s increased focus.The institutional environment (93rd). particularly in the efficiency enhancers.

and it has among the best regional public governance standards (39th for public institutions). and financial (116th) markets. infrastructure in sore need of improvement (83rd).The country’s positive recent performance has much to do with the competent monetary and fiscal policy pursued particularly over the last decade. respectively) are among the areas hindering Colombia’s competitive potential going forward. respectively) and a large market size (23rd). and 78th for goods. However. this poor showing is mainly due to expansionary fiscal policies and discretionary administrative measures.51 percent of GDP in 2006 to 53 percent in 2008). Finally. the dismal 126th rank for the quality of the institutional environment highlights the business community’s deep distrust of. and even-handedness in dealing with the private sector. serious flaws continue to affect the country’s competitiveness landscape.The dreary quality of its institutional environment. with a projected 2 percent growth rate this year.domestic market. despite the current administration’s efforts to increase social expenditure and public investment in infrastructure. On the other hand.8 percent of GDP in 2006 to 24 percent in 2008) and consistent budget surpluses (2. a stilldisappointing result given the country’s many competitive strengths and strong GDP growth between the major economic crisis of 2001 and 2008.The country benefits from a fairly educated labor force (59th and 55th on the health and primary education and higher education and training pillars. 78th. with falling levels of public indebtedness (from 37.40 percent of GDP in 2008). Colombia has gained five positions since last year and is now placed 69th. the expansionary fiscal and monetary policies of recent years have caused the economy to overheat.The country’s impressive 9. respect of the rule of law.59 percent in 2008). thus creating greater incentive for capital outflows. notably with a significant reduction of public debt levels in the last few years (reduced from 116. to a lesser extent. and maximization of the revenues from the country’s rich natural and mineral resources. a greater respect for the rule of law. Argentina climbs three places to 85th place. On a related note. especially in the labor market (119th). continuing the upward trend started last year and improving in most of the dimensions assessed by the GCI. and financial markets. trade and FDI opening. Peru is up five places to 78th.This will include improving the quality of the institutional environment (90th). labor (123rd). but also.5 percent of GDP in 2008). respectively). Peru also benefits from strengths such as the fairly large size of its market (46th) and its sophisticated and rather deep financial sector (39th). displaying notably low levels of security for businesses and the population at large (132nd). this has gone hand in hand with goods and labor market liberalization. institutionalization of sound fiscal policies. the liberalization of the factor markets. representing enduring vulnerabilities in the current difficult economic outlook and going forward. and rather inefficient factor markets (88th. In particular. despite some marginal improvements in macroeconomic stability and infrastructure quality and the sheer size of its market (37th). and pessimism about.8 percent growth rate in 2008 made it among the fastest-growing economies in the region. Among these is its poor macroeconomic environment (91st)—despite windfall oil revenues in recent years. in the financial (88th) and goods (78th) markets. Furthermore. despite debt restructuring. government efficiency and transparency. and a reduction of red tape will be crucial to restoring investors’ trust in the fairness of the government and in the business environment in Argentina.The still-high public debt (48. an improved educational system will better cater to the needs of an efficiency-driven economy such as Peru and facilitate technological adoption (77th for technological readiness) and generation (109th for innovation) in the 35 . Venezuela falls to 113th place. In particular. For Peru to continue to grow in a sustained fashion and fulfill its competitive potential going forward. losing eight positions from last year and continuing the downward trend observed in recent years.Widespread rigidities in the factor markets remain a cause of concern. are particularly worrisome features in the face of the current global economic downturn. factor markets continue to be unable to allocate resources to their most efficient use because of the many rigidities troubling the goods (124th). Peru will still be one of the lucky few spared a recession. coupled with the reduction in tax revenues brought about by decreased commodities prices. poverty levels and income and regional inequalities continue to loom as a cause of social unrest in the country.The GCI assessment continues to highlight major problematic areas in Venezuela’s competitiveness performance. Although the growth rate is expected to significantly slow in 2009. labor. Going into the future. Strides toward macroeconomic stability have also been made in recent years.The country has achieved significant advances in macroeconomic stabilization and civil pacification and can count on a rather extensive market size (31st) and sophisticated business sector (60th). upgrading the country’s poor infrastructure (97th) and educational standards and access at large (91st and 81st for health and primary education and higher education and training. the poor institutional environment (101st). as well as the nationalization of the private pension system) has eroded the confidence of national and international investors. resulting in high inflation levels (8. successfully absorbing technology from abroad (66th for technological readiness) and with a fairly high innovation potential (63rd). a number of weaknesses will need to be tackled.1: The Global Competitiveness Index 2009–2010 higher education and training).The tendency of the last two administrations to adopt discretionary policies (including a recent attempt to increase taxes on agricultural exports. for which Venezuela continues to be assessed as worst out of all The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1.

at 132nd (goods market efficiency).With respect to national competitiveness. Bolivia (120th). and in opening up to foreign investment (it is ranked 13th on the restrictiveness of rules and regulations on FDI). this mirrors enduring concerns on the part of the business community in Venezuela about the respect of the rule of law. such reform should also ensure that public spending on health and education are better targeted. serious doubts persist about the sustainability of public finances in Dubai and the potential effect a further deterioration may have on the country as a whole. improving competitiveness will necessitate further measures to encourage students to pursue tertiary education. and Saudi Arabia (28th). the country’s priorities remain to reduce inflation. as well as underdeveloped factor markets. Additionally. and Paraguay (124th) lag behind the rest of the region and most of the world in competitiveness. significant differences between countries persist. Restoring investors’ trust in the country’s institutional and business environment would be equally important for unleashing Venezuela’s competitiveness potential going forward. with an estimated 18 percent growth rate in 2009. As the global downturn continues to limit the availability of finance and reduces tourism and trade. the country moved up by six places from last year’s already high base in the macroeconomic stability pillar.They all exhibit poor governance standards. As in previous years. in spite of the fall in real estate prices. building on the positive trend of the past few years. the progress in improving competitiveness has been less pronounced or nonexistent. ranked 21st and 14th.The upgrading of the institutional framework continues (9th). gaining four positions compared with last year’s edition of this Report. In many energyexporting countries. abundant oil windfall profits have triggered a wave of reforms aimed at improving competitiveness. is another major problem area. such as mobile telephony (2nd) and broadband (37th). However. respectively) complete the picture. Over the past year. Underdeveloped infrastructure (106th) and poor educational standards at all levels (81st and 83rd for primary health and primary education and higher education and training. The United Arab Emirates (UAE) occupies the 23rd position in this year’s Report and 2nd in the region. and the high violence and crime levels in the country. Nicaragua (115th).With the exception of Kuwait and Saudi Arabia. and 126th (financial market sophistication). In addition. the poorest regional performers—such as Libya (88th) and Syria (94th)—continue to lag behind most of the world’s economies with respect to national competitiveness. Other serious concerns include factor markets that are among the least efficient in the world. such as Qatar (22nd). the available data suggest that the UAE has in place the underlying fundamentals of a competitive economy. the fairness and efficiency of the government in its day-to-day operations and strategy.45 The lower score in macroeconomic stability due to rising public debt and lower budget surplus is in line with most other countries’ results in this pillar and therefore does not lead to significant changes in the ranking. infrastructure.The growing distortions in the economy and the high vulnerability of public finance to changes in oil prices are particularly troubling and require urgent structural reform.44 the fastest-growing economy in the Gulf Cooperation Council region. At 22nd. However. the United Arab Emirates (23rd). which was exacerbated by rising food and housing prices in 2008. Ecuador (105th).This is a reflection of both absolute improvements—notably in the budgetary surplus and public debt levels—and the poorer macroeconomic performance of many other countries due to the financial crisis and concurrent countercyclical measures. displaying common flaws in their institutional environment. Suriname (102nd).The country ranks 71st for the strength of investor protection and 98th for the strength of legal rights. The country continues to weather the economic crisis well thanks to its abundant resources in natural gas remaining. the country has made great strides in harnessing the latest technologies. In terms of macroeconomic management. Although non–oil exporting countries from the region also benefited from the boom through foreign investment and remittances. Notwithstanding the current cyclical downturn. all countries in the region expect positive growth rates for 2009. the assessment of its financial markets so far proves more resilient than for many other countries. that businesses assess banks as somewhat less sound than previously (down by five positions to 36th). to 13th. however. Qatar takes the lead in the Middle East and North Africa region. red tape. Moving forward. respectively.1: The Global Competitiveness Index 2009–2010 36 countries covered by the GCI. 133rd (labor market efficiency). some of the more successful reformers. As a result. The UAE has improved by eight positions to 33rd in this pillar. the country’s main sectors of activity are likely to be adversely affected. where enrollment rates remain low (93rd).This positive economic performance is reflected in a number of indicators captured by the GCI. the stability of Qatar’s financial sector (35th) would benefit from a stronger protection of investor’s rights. and rampant crime and violence. although the score has gone down. Qatar is moving in the right direction in many areas of competitiveness.The changing global environment is The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . place in the top tier of the emerging markets. Consequently. It has to be noted. Middle East and North Africa The Middle East and North Africa region appears to be on average somewhat less affected by the global economic crisis than other emerging regions. and educational systems. and goods and labor markets are more efficient than in previous years.1. and to expand credit.

As well as addressing the educational system. provided the basis of the successful technology-focused development strategy followed by the country over the last three decades. ranked 9th. and public and private institutions. although rising recently. and 72nd for tertiary enrollment—have not improved. two priorities for Tunisia emerge from the GCI results in order to become more competitive. investors cannot rely on the legal framework for protection of their rights (110th). but retains the lead among the North African countries. improving from 98th to 81st. are still assessed as relatively weak. and the sophistication of financial markets and restrictions on capital flows are The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. Since its first inclusion in the GCR in 2006. this is buoyed by the still relatively high oil prices in 2008.48 Major reforms in the area of the investment climate. In the course of the past years. the low confidence in the stability of the banking system (94th) and the efficiency of financial markets (68th) will need to be addressed. which remain low. Perhaps more emphasis will be needed on education. as reflected in the falling public education expenditure as a share of gross national income. Saudi Arabia has in particular made progress with respect to upgrading its public institutions. this relative stability has lead to a significant improvement in rankings for Tunisia on the related pillar (55th). Despite these commendable moves. along with a high level of security (23rd) and an educational system that ensures a good quality of education (29th). remains its main strength. education. and the judiciary are under way or envisaged. respectively).The low ranking of 98th reflects in particular rigid employment regulations (108th) and wage-setting processes (118th). the challenges to be tackled going into the future are to be found in a number of other basic areas of the GCI. health. in particular for air and rail transport. along with the high level of sophistication of its financial markets. the sophistication of business strategies as well as innovative capacity have deteriorated over the past two years. which may in turn have positive effects on the country’s future development path. and the judiciary has made gains in independence. in particular with respect to the capacity of government to ensure security (69th) and the efficiency of government operations (51st). although enrollment rates in secondary and tertiary institutions are fairly low (ranked 66th and 70th. which remains constrained by the quality of research institutions (53rd) and relative disconnect between universities and businesses (39th). four positions down from last year. and inflation. and on further boosting the country’s innovative capacity.8 percent of GDP in 2008) have contributed to pulling the ranking on this pillar down to 67th this year. In light of the recent deterioration in the macroeconomic stability of many countries worldwide.The country has also made great strides in improving the competitive environment for firms. corruption has been reduced. the country’s innovative capacity. Saudi Arabia has made continuous progress in improving its competitive position in the framework of the ambitious 37 . Rising inflation (4. such as engineers and scientists. 45th for secondary.The government continues to run a small deficit of about 3 percent. As in previous years. although recovering. some of the most serious challenges have not been addressed sufficiently.10 x 10 program. as well as enrollment rates at all levels—Saudi Arabia ranks 109th for primary.The quality of infrastructure (44th) is assessed below levels expected from a country at such a high level of income. ranked 9th.75 percent in 2008) and an increasing budget deficit (2. and the low participation of women in the labor force (124th). although public expenditures on education are among the highest in the world (7th).The protection of property rights has been improved. and are being registered in the country’s performance in the GCI. At the same time. the country will have to tackle inefficiencies related to its labor market.The country’s efficient government institutions (15th) remain its main strength. Tunisia drops four places to 40th in this year’s rankings. Moving forward. where quantitative measures still point to low secondary and tertiary enrollment rates (50th and 81st.The quality of education (74th). Israel’s competitive position continues to erode. and has fairly efficient domestic markets for goods and services (39th). In addition to the quality of education. The consistent upgrading of institutions and infrastructure and rising technological readiness and innovative capacity over the past few years will help the UAE maintain its competitive edge in the longer term. Saudi Arabia ranks 28th.1: The Global Competitiveness Index 2009–2010 also reflected in the intensifying competition in goods markets in the Emirates.The other challenges Saudi Arabia will have to address are the fairly rigid labor market (71st) and the trustworthiness and confidence in the financial sector. coming in at 27th. respectively). the macroeconomic environment in the country has remained stable. the country’s macroeconomic stability.47 It appears that reductions in overall government spending have affected the educational system. remains a key competitive advantage.The deteriorating quality of education in Israel is worrisome because the availability of a welleducated workforce. remains largely under control. public debt appears manageable and is being reduced continuously. In particular. ranked 28th this year.The present economic crisis has also taken a toll on macroeconomic stability in Israel. Despite this slightly downward trend.46 This deterioration is mainly due to a continuously lower assessment of the quality of the educational system (from 15th in 2006 to 65th in 2009). high taxes (108th). the financial sector. First. ranked 15th. Second. with a fairly stable performance. Tunisia boasts fairly well developed infrastructure (37th). which was also mirrored in the OECD’s PISA assessment in 2006. although they have held up well in the current financial crisis.

the country’s innovative potential could be at risk with a university enrollment rate of only 15 percent.The budget deficit has reached 6. to an even greater extent. Egypt moves up 11 places to 70th in this year’s GCI rankings. overtaking Morocco at 73rd and reflecting recent liberalization efforts in the country. although good by regional standards. The improvement in the overall ranking stems mainly from the upgrading of infrastructure across all categories and from positive developments related to labor market efficiency and. South Africa and Mauritius have both maintained a stable performance since last year and are still in the top half of the rankings. benefiting from good scientific research institutions (ranked 29th) and strong collaboration between universities and the business sector in innovation (ranked 25th). In this area there has been a notable improvement in the evaluation of the country’s financial markets. and poor labor-employer relations (121st). remains the highestranked country in sub-Saharan Africa. which allows businesses to exploit economies of scale.1. the improvements in transport infrastructure related to the 2010 World Cup is a welcome development that should reinforce South Africa’s competitiveness. South Africa.9 in 2008).The country ranks 90th in labor market efficiency.The business costs of crime and violence (133rd) and the sense that the police are unable to provide protection from crime (106th) do not contribute to an environment that fosters competitiveness. 101st). the fairly solid private institutions (53rd). the budget deficit and inflation continue to rise. indicating strong confidence in South Africa’s financial markets at a time when trust has been eroded in many other parts of the world. despite some progress achieved in the context of a government program. On the other hand. but face numerous serious challenges related to the inefficiency of their goods. Another major concern remains the health of the workforce.The country continues to benefit from the large size of its economy.8 percent of GDP in 2007 to 85. 128th position). More generally. Inflexible hiring and firing procedures keep the country’s many unemployed young people. Although Africa’s economies are less linked than many other parts of the world to global markets. the current global economic turmoil has raised questions about how sustainable this growth will be over the longer term. the region has not been spared from the fallout of the economic crisis: the IMF is projecting a slight decline in GDP for the region in the year ahead.49 Egypt’s main competitive strengths are the sheer size of its market (26th). ranked 127th out of 133 countries. and inflation is also among the highest in the world at 11. requires upgrading (ranked 45th). On the other hand. and goods market efficiency (35th). Sub-Saharan Africa After an impressive upward trend in African GDP in recent years.The labor market continues to be over-regulated. In this light. brain drain from the country (123rd). the participation of women in the labor force continues to be low (127th). respectively). The regional ranking closes with Libya at 88th and Syria at 94th. and the satisfactory quality of the transport and energy networks (55th overall). Both countries display fairly solid public institutions (59th for Libya and 56th for Syria) and high levels of security (32nd and 17th. some African countries continue to fare quite well.The challenges. the persisting labor market rigidities are particularly worrisome. South Africa’s infrastructure. are numerous. the accountability of private institutions (5th). at 45th overall. as reflected in the 107th position in the rankings. Egypt’s banking system continues to lack trustworthiness and solidity. from entering the formal labor market. Furthermore.7 (in 2008. the result of high rates of communicable diseases and poor health The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . on the other hand. there have been some significant declines registered in countries that were previously making strides ahead. and there have been measurable improvements across specific areas in a number of other African countries. Also. which have increased in rank from 24th last year to a very high 5th this year. labor. Although government debt has been reduced somewhat (from 105. Although some progress has been achieved. we continue to note that sub-Saharan Africa as a whole lags behind the rest of the world in competitiveness. Egypt continues to struggle with serious challenges related to macroeconomic stability (120th). which places the country 94th overall. with a stable performance compared with last year. particularly by regional standards (it is ranked 24th in the market size pillar). requiring efforts across many areas to place the region on a firmly sustainable growth and development path going forward. thanks to the significant gains in oil revenues realized in recent years. a lack of flexibility in wage determination by companies (123rd). despite such concerns. which diminishes its efficiency. such as intellectual property protection (24th).1: The Global Competitiveness Index 2009–2010 38 considered burdensome by the business community (89th). financial markets sophistication. In addition. South Africa’s competitiveness would be enhanced by tackling some enduring weaknesses. and potentially causing social problems.8 percent of GDP (in 2008. with inflexible hiring and firing practices (125th). raising the risk of a degradation of human capital.50 Furthermore. a large number of whom are well educated. South Africa also does reasonably well in more complex areas such as business sophistication (36th) and innovation (41st). Libya has the additional advantage of a stable macroeconomic environment (4th). and financial markets.The poor security situation remains another important obstacle to doing business in South Africa. South Africa does well on measures of the quality of institutions and factor allocation.51 However.

secondary. Botswana’s primary weaknesses are related to the country’s human resources base. although there has been a weakening in this area since last year. as well as the incidence of malaria (94th) and tuberculosis (130th). particularly roads. dropping from 22nd to 41st.1: The Global Competitiveness Index 2009–2010 indicators more generally. However. with improvements registered in both areas since last year. Kenya’s key strengths continue to be found in the more complex areas measured by the GCI. particularly at the university level (placing Mauritius 97th). and the assessment of the quality of the educational system remains poor. Namibia has moved up six ranks to 74th place this year. enrollment rates remain low. Despite high spending on education. respectively). On the educational side. with strong auditing and accounting standards and a system that protects minority shareholders’ interests. Yet it is clear that by far the biggest obstacle facing Botswana in its efforts to improve its competitiveness is the health situation in the country. both goods and financial markets function well (ranked 37th and 26th. and both have seen improvements in their functioning since last year. ranked 98th. With regard to weaknesses. and a security situation that is good by regional standards (44th). respectively). with low penetration rates of new technologies such as mobile phones and the Internet. However. although this is an area that has weakened since last year. the same ranking it held last year. and tertiary enrollment. is also excellent by regional standards (ranked 32nd). Mauritius is ranked 57th this year. and the educational system gets mediocre marks for quality. Among Namibia’s comparative strengths is the quality of the institutional environment (ranked 37th. and the second-highest in sub-Saharan Africa. Beyond the educational weaknesses.The country’s infrastructure is well developed by regional standards. Botswana falls back by 10 places to 66th. Continuing to improve the health and education levels of the workforce remain the key priorities for improving Botswana’s competitiveness. with small improvements across most of the areas measured by the GCI. Goods and labor markets (77th) function fairly well by regional standards. Kenya. Health standards are also impressive compared with other sub-Saharan African countries. with high infant mortality and low life expectancy—the result in large part of the high rates of communicable diseases. Further. with relatively easy access to loans and share issues on the local stock market.The economy is also supported by financial markets that are sophisticated by international standards (37th). up from 42nd last year). Over past years. education spending is low. and 115th for primary.The country is characterized by strong and transparent public institutions. educational enrollment rates at all levels of the educational ladder remain low by international standards (ranked 111th. 92nd. 19th for public trust of politicians. Supporting this innovative potential is an educational system that—although reaching a relatively small proportion of the population compared with most other countries—gets good marks for quality (34th) as well as for on-the-job training (44th). these rates are for the most part coming down. with stringent hiring and firing laws (87th) and wages that are not flexibly determined (105th). and there is strong public trust in politicians (27th). strong judicial independence. ranking 16th worldwide for the efficiency of government spending.The country is ranked a low 115th on the health subpillar. Kenya’s innovative capacity is ranked an impressive 48th. Botswana is rated as the country with the lowest corruption in Africa (ranked 22nd overall. Financial markets also function particularly well. Botswana’s HIV prevalence rate remains very high (ranked 133rd). air transport. Among the country’s strengths are its reliable and legitimate institutions. leading to an improvement in life expectancy 39 . and the quality of the educational system receives mediocre marks. falling from 27th to 66th overall. with particular advances in aspects related to trustworthiness and confidence. with a weakening especially in its institutional environment. Property rights are well protected (ranked 21st). the country could do more to harness new technologies to improve its productivity levels. labor markets could be made more flexible. there are a number of basic weaknesses that are eroding Kenya’s overall competitive potential. As mentioned above. most particularly its transport infrastructure. Private institutions are rated as accountable and improving (ranked 22nd). the transparency and accountability of public institutions have contributed to a stable macroeconomic environment. the judiciary is perceived as independent from undue influence (21st). has fallen five places this year. However.from 52 to 56 years by the most recent estimate. with clear property rights. down The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 1. although it is still in the top half of the rankings and counted as one of the three most competitive economies in the region. and 27th for judicial independence. Namibia’s health and education indicators are worrisome. with high company spending on research and development and good scientific research institutions collaborating well with the business sector in research activities.The quality of the country’s infrastructure. on a par with countries such as Austria and Germany). After climbing significantly in the rankings last year. with the rank in this pillar going up from 53rd to 31st this year. a drop mainly attributable to the government’s deficit spending. For example. ranked 104th. Improvements in these areas will enhance South Africa’s competitiveness outlook. although there have been measurable improvements in this area since last year.The country also continues to be characterized by reasonable macroeconomic management. In addition. and telephony. Educational enrollment rates remain somewhat low. the country’s public institutions are assessed as increasingly inefficient (ranked 117th. efforts continue to be required in the area of education.

Nigeria is ranked 99th this year. Zimbabwe continues to be among the least competitive economies included in the GCI. The security situation in Kenya is also worrisome. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . relative judicial independence (69th). tuberculosis. And even amid the international economic turmoil affecting so many countries. and official markets that are functioning only with great difficulty (particularly with regard to goods and labor markets. and corruption levels lower than in most other countries of the region (71st for ethics and corruption). the adoption of new technologies is low in Tanzania (ranked 120th). Finally. Ghana is ranked 114th this year. and government spending that is perceived as wasteful (120th).The country’s greatest area of strength remains its macroeconomic environment (ranked 20th). engendering unsustainable public debt. the country is characterized by high and increasing macroeconomic instability. ranked second to last at 132nd overall. Zimbabwe continues to carry out massive deficit spending. Financial markets are also relatively sophisticated (ranked 59th). providing its companies with opportunities for economies of scale. ranked 118th in this area. such as the high female participation in the labor force (ranked 4th) and reasonable taxation and firing costs. having notably seen a peaceful transition of political power through presidential elections. which are ranked 76th and 69th. with poor-quality roads. And although primary education enrollment is commendably high (25th). low educational enrollment rates. respectively. In addition. Health is another area of serious concern (ranked 119th). The country benefits from public institutions that are characterized by reasonable public trust of politicians (ranked 61st). Nigeria’s economy is characterized by weak institutions (ranked 102nd). down five places since last year. inflation is well into the double digits.The weakening of Ghana’s performance is attributable to a deterioration of the country’s macroeconomic stability since last year. with poor health indicators and high levels of diseases such as malaria. Tanzania has seen an impressive improvement this year of 13 ranks. and directly following Kenya and Nigeria in the overall rankings. 61st. and high interest rate spreads point to inefficiencies in the financial system. with the government running budget surpluses. In addition. and a lack of evenhandedness of the government in its dealings with the public (129th) as well as basic government inefficiency (124th). particularly roads and ports. Overall. including a serious security problem (117th).There has also been a measurable improvement in the sophistication of financial markets. respectively). Ghana continues to display excellent public institutions and governance indicators. down 12 ranks since last year. and the country is not harnessing new technologies for productivity enhancements (ICT adoption rates are very low). The government is running high and increasing fiscal deficits. high levels of corruption (122nd). up to 100th place. On the other hand. But Tanzania demonstrates weaknesses throughout most of the other areas measured by the Index.1. high levels of corruption (122nd). labor. the country is not harnessing the latest technologies for productivity enhancements. and financial markets ranked 62nd. a high national savings rate. Ghana’s institutions are ranked 68th. relative government evenhandedness in its dealings with the private sector (ranked 60th). and electricity supply. enrollment rates at the secondary and university levels are among the lowest in the world (ranked 125th and 129th. On the other hand. with very low uptake of ICTs such as the Internet and mobile telephony. for which it has often been commended by international leaders in recent years. government inefficiency (101st). the quality of the educational system receives a poor assessment. some aspects of the labor markets lend themselves to efficiency. and HIV. and low national debt. and high and rising corruption (116th. ranked 130th and 125th. And the basic health of the workforce is also a serious concern.Weaknesses in other areas include health (ranked 128th in the health subpillar). and 57th. particularly in regard to crime and violence (122nd). and few telephone lines. education levels continue to lag behind international standards at all levels.1: The Global Competitiveness Index 2009–2010 40 from 100th last year). Related to the education level of the workforce. with a complete absence of property rights (ranked last out of all countries at 133rd). Some aspects of the country’s infrastructure are also good by regional standards. respectively). the potential of terrorism (127th).The institutional environment continues to be ranked among the worst of all countries. It also receives poor assessments for its infrastructure (127th) as well as health and primary education (132nd). Raging hyperinflation that was unparalleled internationally recently pushed the government to suspend the printing of Zimbabwean dollars and to dollarize the economy in the early months of 2009. down from 101st last year). the extreme mismanagement of the public finances and monetary policy has placed Zimbabwe once again at the bottom of all countries covered with regard to macroeconomic stability (ranked 133rd). and the prevalence of organized crime (118th). Factor markets also function relatively well by regional standards. having gone from 121st on this pillar last year to a very low 129th this year. with reasonable public trust of politicians (ranked 62nd). Nigeria also benefits from a relatively large market (42nd). ports. plagued by undue influence (120th). In addition. and a security situation that is good by regional standards (ranked 64th). goods and labor markets continue to be characterized by inefficiencies. debt levels are high. with a high prevalence of communicable diseases contributing to the low life expectancy of 54 years. respectively. with goods. up from 90th to 74th place this year. Infrastructure in the country is underdeveloped (ranked 123rd). as demonstrated by its low rates of ICT penetration.

when Belgium sells goods to the Netherlands. 3 See. 2005. and notably in the soundness of banks and measures of access to capital. the crisis has exacerbated macroeconomic instability in some countries. for example. 21 See Romer 1990. Related to this point. under-regulation of the financial sector in the United States and the United Kingdom has been blamed for the economic crisis. Amin 2009. 1. 2 Schumpeter 1942. 12 See Sachs 2001. Grossman and Helpman 1991. and Easterly 2002. and innovation potential. is one which in any given period makes a particular contribution to overall economy’s growth thanks to its ability to transform the methods of production in a wide array of industries. with the aim of boosting living standards of the world’s citizens. economic performance. covering 133 countries from all of the world’s regions. and Aghion and Howitt 1992. business. 6 See de Soto and Abbot 1990. In this context. 15 Data previously included in this pillar measuring non-wage labor costs have been excluded this year. Of course. the assessment by business leaders of the institutional environment has been affected by revelations of privatesector and public-sector behaviors that contributed to the crisis.The GCI demonstrates the extent to which national competitiveness is a complex phenomenon. among others. 10 See Aschauer 1989. In response. countries that have competitive strengths in a variety of areas can be expected to exit the crisis faster and to rebound much more strongly. 20 This is particularly important in a world in which economic borders are not as clearly delineated as political ones. if the economic crisis affects the longerterm drivers of competitiveness this should be reflected by specific aspects of the GCI. Gramlich 1994.The GCI clearly shows the importance of efficient markets for national productivity and competitiveness. 2002. the GCI provides a platform for dialogue among government. Indeed. Solow 1956. 17 A general purpose technology (GPT). Examples of GPTs have been the invention of the steam engine and the electric dynamo. Becker 1993. while competitiveness is very much about a country’s development potential over the medium to long term.The clear and intuitive structure of the GCI framework is useful for prioritizing policy reforms because it allows countries to determine the strengths and weaknesses of the 4 See Easterly and Levine 1997. governments all over the world are now tempted to increase regulation in other aspects of the economy. 16 See Aghion and Howitt 1992 and Barro and Sala-i-Martin 2003 for a technical exposition of technology-based growth theories. the national accounts register the transaction as an export (so the Netherlands is a foreign market of Belgium). the national accounts register the transaction as domestic (so Nevada is a domestic market of California). 2002. each capturing one of the issues more specifically. 18 See UNCTAD 2009. 8 See Shleifer and Vishny 1997. and civil society that can serve as a catalyst for productivity-improving reforms. Rodrik and Rodriguez 1999. according to Trajtenberg (2005). technological adoption. Notes 1 IMF 2009a. Rodrik et al.These range from good governance and macroeconomic stability to the efficiency of factor markets. 5 See de Soto 2000. 2001. More generally. which can be improved only through an array of reforms in different areas that affect the longer-term productivity of a country. as well as some government actions taken in response. but when California sells the same kind of output to Nevada.national competitiveness environment and to identify those factors most constraining their economic development. 14 See Almeida and Carneiro 2009. as they are no longer collected by the World Bank Doing Business group. and Kaplan 2009 for country studies demonstrating the importance of flexible labor markets for higher employment rates and. 2004 for an extensive list of potential robust determinants of economic growth. and Swan 1956. It would be dangerous to conclude that the need for more financial regulation in a few highly unregulated economies means that already highly regulated economies should further increase red tape elsewhere. it is important to bear in mind that the present economic crisis is short term in nature and related to the business cycle. this is indeed the case this year. with individual governments running up significant deficits through stimulus spending to support demand and thus generating increased debt and expectations that they will generate inflation to reduce the future debt burden. For example. 1994. and Sala-i-Martin and Subramanian 2003. therefore. More specifically. The full impact of these actions for future national competitiveness has yet to be seen. 19 See Sachs and Warner 1995. the GCI has been used by an increasing number of countries and institutions to benchmark national competitiveness. one Survey-based variable capturing the efficiency of the legal framework for (1) settling disputes and (2) challenging the legality of government actions and/or regulations has been replaced by two variables. Lucas 1988. Sala-i-Martin et al. there has been a weakening in the assessment of financial markets in a number of countries. Since its introduction in 2004. Frenkel and Romer 1999. 7 In this pillar. 9 See Kaufmann and Vishwanath 2001. and Feyrer 2009. Acemoglu et al. 13 See Schultz 1961. Canning et al. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 41 .Yet this would be reading the wrong lessons from the crisis. In other words.The crisis has also had consequences on ratings in other pillars.1: The Global Competitiveness Index 2009–2010 Conclusions This chapter has discussed the results of the Global Competitiveness Index 2009–2010. and Kremer 1993. 11 See Fischer 1993. Zingales 1998. Most directly. notably in goods and services markets. Alesina et al.

The higher the minerals export share. Please see Chapter 1. Endogenous Growth. Durlauf. Available at http://www. 32 Exports of oil and gas account for 93 percent of Brunei’s exports. Aghion P. Alesina. “A Model of Growth through Creative Destruction. 2009. 2002.pisa.intracen. 47 See http://www. W. All countries that export more than 70 percent of mineral products are considered to be to some extent factor driven.au/ siss/documents/AFTF_Task_Force_Report. a country that exports 95 percent of mineral exports and that. 45 It has to be noted.html.1. and R. The income and primary exports criteria are weighted identically. For example. Rostow in the 1960s (see Rostow 1960).40 percent in 2008. the three coefficients for each stage had to add up to one. and precious stones. Volume 1. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum . 31 For a more detailed assessment of China’s competitiveness. 43 For a more comprehensive assessment of Mexico’s competitiveness.. 2008. and J. the budget deficit was exacerbated by energy subsidies. 34 The Economist 2009a. see Mia et al. as well as the more general negative impact on the tourism industry.edu. this category also contains all metal ores and other minerals as well as petroleum products.pdf.. the stronger the adjustment and the closer the country will move to Stage 1. coal. cement. Challenges and Directions for Australia’s Urban and Regional Future. The data used cover the years 2003 through 2007. 2007. Amsterdam: Elsevier. As a result. based on the income criteria. 44 IMF 2009a.L-3478838. Cambridge. 11 are Brazilian and 6 are Mexican.6 according to the IMF (2009a). 2001. In addition to crude oil and gas. E. Stages of development are dictated uniquely by income for countries that export less than 70 percent minerals.50 percent of GDP in 2006 to 39. Amin. 1499–1542. eds. 1989. This unconditional facility. 1992. 35 For a more detailed analysis on Costa Rica’s performance. Handbook of Economic Growth. liquefied gas.gcf. Consequences included the partial economic shutdown of the country for approximately two weeks. A. 2009. Brazilian companies such as Petrobras. Almeida. and all the weights had to be non-negative. 1: Identifying the Key Issues. For example. Growth and the Size of Countries. Among the 100 most important multinationals from emerging markets.” American Economic Review 91: 1369–1401. Further information on these data can be found at the following site: http://www. D. “Reversal of Fortune: Geography and Institutions in the Making of the Modern World Distribution of Income. The planned establishment of a national statistics bureau will be helpful in this regard. 48 See http://www.” In P. among the 50 most profitable multilatinas. R.” Journal of Comparative Economics 37 (1): 28–46. 40 For a more detailed analysis on Brazil’s competitive potential. 46 Since 2006. Howitt. 36 In particular. Robinson. “The Colonial Origins of Comparative Development: An Empirical Investigation. metals and mining.htm. 49 Labor market efficiency improved by 8 ranks and financial market sophistication by 22. MA: MIT Press. 50 While inflation resulted mainly from rising prices for food and building material. we treat Brunei as an economy in transition from Stage 1 to Stage 2. 2008. however. ———. and P. Carneiro. however.” Journal of Comparative Economics 37 (1): 47–61. and P. 28 Reuters 2009. and the low level of transformation. adopted as part of the precautionary measures to avoid contagion. 41 The recent H1N1 flu epidemic has also hit the economy hard. ARCRNSISS (Australian Research Council Research Network in Spatially Integrated Social Science). we use as a proxy the exports of mineral products as a share of overall exports according to the sector classification developed by the International Trade Centre in their Trade Performance Index. This was achieved in part by a significant reduction of public indebtedness. see Box 3 in Sala-i-Martin et al. Vale. the four pillars within the basic requirements subindex account for 51 percent of the overall GCI score for Brunei. Here we adapt Michael Porter’s theory of stages (see Porter 1990). would be in Stage 3 will be in transition between Stages 1 and 2. 2005.oecd. Sadia. 37 See UNCTAD 2008.siss. food and beverage. steel. 2009.org/pages/ 0. 2009. 1st Edition. 33 Estimates for Latin America are from CEPAL/ECLAC 2009 and for the world are from IMF 2009a. 23 Some restrictions were imposed on the coefficients estimated. falling from 65.” Quarterly Journal of Economics 117 (4): 1231–94.ynetnews. for example. References Acemoglu. “Labor Regulation and Employment in India’s Retail Stores.. 26 Poland has applied for and has been granted the IMF Flexible Credit Facility. ———. Spolaore.1 of The Global Competitiveness Report 2007–2008 for a complete description of how we have adapted Michael Porter’s theory for the present application. November. Johnson..1: The Global Competitiveness Index 2009–2010 22 Probably the most famous theory of stages of development was developed by the American historian W. 42 25 The extent of Iceland’s economic crisis can be grasped by looking at the projected contraction in overall GDP expected for 2009: –10. 27 See. which soared as fuel prices peaked. Enrico. ARCRNSISS 2007 and Swan 2009. 35 are from either Mexico or Brazil. Because of this strong dependence on mineral production. and high tech. D. 24 In order to capture the resource intensity of the economy. 38 According to Santiso 2008. 51 IMF 2009a. 29 Parliament of New Zealand 2009.com/articles/0. and Embraer are among those that have proven their ability to compete in international markets. M.7340. see Hausmann et al.00. A.The better assessment of the financial markets reflects the fact that Egypt’s banks remained fairly unaffected by the financial turmoil of 2008 because they were not engaged in activities such as the sub-prime lending that took place in the United States. 1998. “Is Public Expenditure Productive?” Journal of Monetary Economics 23 (2): 117–200.org/menus/ countries.” Econometrica LX: 323–51.00.html and http://www. the country has lost 13 positions in the rankings.sa/en/content/10-x-10-program for more information on Saudi Arabia’s 10 x 10 program. 42 See Noriega 2009. Report No.org. 39 The multilatinas are now global players in sectors as diverse as oil and gas. Aschauer. the macroeconomic stability pillar has registered a remarkable 17-place improvement over the last two years (gaining 13 places since last year alone). The government has estimated that the H1N1 flu might shave off an additional half point from national GDP in 2009.en_32252351_32235731_1_1_1_1_1. is a preemptive support to otherwise sound economies in their efforts to counter potential effects of the crisis. that gaps in macroeconomic and other data in the United Arab Emirates obfuscate the assessment of the situation somewhat.2987. “Enforcement of Labor Regulation and Firm Size. 30 Xinhua 2009. see Box 2 in Sala-i-Martin et al. S. Countries that export only primary products would automatically fall into the factor-driven stage (Stage 1). “Trade. Aghion and S. in traditional as well as less traditional (Embraer) industries. The stage of development for these countries is adjusted downward smoothly depending on the exact primary export share.

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.......... the weight put on each of the three subindexes (Basic requirements..........20% 1............... Corporate ethics ...................Variable 1.....06 2...................07 Wastefulness of government spending 1......08 Burden of government regulation 1..............................04 Public trust of politicians 1. and variable 12.14 Organized crime 1...........18 Efficacy of corporate boards 1.... and Innovation and sophistication factors) is not fixed....09 on the efficiency of the legal framework has been split into two distinct variables......................... Efficiency enhancers.. the score a country achieves in the 9th pillar accounts for 17 percent of this country’s score in the Efficiency enhancers subindex..01 Property rights 1... we give them a half-weight in each place by dividing their value by 2 when computing the aggregate score for the two categories in which they appear.20% 1......... Ethics and corruption......20% 1........11 Transparency of government policymaking 5.......08 infrastructure ..........03)............ For example..............03 2. It depends on each country’s stage of development..............20% 1.13 Business costs of crime and violence 1...The second alteration to the structure is the exclusion of the measure of non-wage labor costs (formerly variable 7......12 Business costs of terrorism 1...... Finally.......02 3........... Government inefficiency .... Reported percentages are rounded to the nearest integer......25% A... in the case of Dominican Republic—a country in the second stage of development—the score in the Basic requirements subindex accounts for 40 percent of its overall GCI score...................................06 Favoritism in decisions of government officials 4.......04 3.............. Those variables that are followed by the symbol1/2 enter the GCI in two different places...The computation of the GCI is based on successive aggregations of scores...........Variables 1......03 Diversion of public funds 1.10 Efficiency of legal framework in challenging regulations 1. Public institutions.................c For instance. Undue influence..... The hard data indicators used in the GCI are normalized on a 1-to-7 scale in order to align them with the Executive Opinion Survey’s results....e.10 now measure the degree of efficiency of the legal framework in settling disputes (1.......15 Reliability of police services B. General infrastructure ...............01 3..........e.....................25% 3........ from the variable level (i....02 2.05 2....... Accountability .19 Protection of minority shareholders’ interests 2nd pillar: Infrastructure.. but exact figures are used in the calculation of the GCI............The number preceding the period indicates to which pillar the variable belongs (e. In order to avoid double counting....... Property rights .... Weight (%) within immediate parent category BASIC REQUIREMENTS 1st pillar: Institutions......................................01 belongs to the 1st pillar...........The variables that belong to the two pillars affected by these changes (i.. The numbering of the variables matches the numbering of the Data Tables.... the highest level)..03 3............... as discussed in the text...........50% 1.......................09 Efficiency of legal framework in settling disputes 1............04 belongs to the 12th pillar)................50% 2...25% A....... Unlike for the lower levels of aggregation...This appendix presents the structure of the Global Competitiveness Index 2009–2010 (GCI)......07 2..50% Quality of roads Quality of railroad infrastructure Quality of port infrastructure Quality of air transport infrastructure Available seat kilometers (hard data) Quality of electricity supply Telephone lines (hard data) 3rd pillar: Macroeconomic stability....09 and 1.......... 1st and 7th pillars) were renumbered accordingly..05 Government budget balance (hard data) National savings rate (hard data) Inflation (hard data) d Interest rate spread (hard data) Government debt (hard data) The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum (Cont’d......) 45 ..10)......75% 1............... the score achieved on the subpillar Networks and supporting industries accounts for 50 percent of the score of the 11th pillar. Similarly......02 Intellectual property protection 1/2 2......04 2.........05 Judicial independence 1........ a country in the third stage of development........09) and in challenging regulations (1....... Specific 2....... Security ......50% 1...... variable 1........ note that this year the structure of the GCI has undergone two minor changes..17 Strength of auditing and reporting standards 1........ Private institutions ........................b The percentage next to each category represents this category’s weight within its immediate parent category..25% 1......1: The Global Competitiveness Index 2009–2010 Appendix A: Structure of the Global Competitiveness Index 2009–2010 3.. the lowest level) all the way up to the overall GCI score (i......01 Quality of overall infrastructure B............ using the weights reported below.... while it represents just 20 percent of the overall GCI score of Australia.....a The Technical Notes and Sources at the end of this Report provide detailed information on all the hard data indicators.......20% 1.....16 Ethical behavior of firms 2...g...e...................................

.....01 7.33% 5..................04 5.......67% 10th pillar: Market size ......... Primary 4..........................02 9....................................04 9..........75% 10...................08 Agricultural policy costs 2...17% 5th pillar: Higher education and training.... Sophistication of firms’ operations and strategy 50% 11............33% 5.08 Extent of staff training 9th pillar: Technological readiness......05 Business impact of HIV/AIDSe 4.06 Control of international distribution 11........06 Strength of investor protection (hard data) A...01 Local supplier quantity 11............................. Efficient 7....04 Venture capital availability 8........02 Foreign market size index (hard data)i INNOVATION AND SOPHISTICATION FACTORS 11th pillar: Business sophistication................14 Degree of customer orientation 6.......................03 Effectiveness of anti-monopoly policy 6......02 Tertiary enrollment (hard data) 4................17% A............03 9...05 Restriction on capital flows 8........04 6................03 State of cluster development B........... Health.....15 Buyer sophistication 7th pillar: Labor market efficiency ........ Trustworthiness and confidence ............04 Imports as a percentage of GDP (hard data) B..........................08 Regulation of securities exchanges 8.........50% 8.07 Local availability of specialized research and training services 5.................01 Secondary enrollment (hard data) 5.............1............................02 Local supplier quality 11.....02 Financing through local equity market 8.) 4th pillar: Health and primary education .....08 Availability of latest technologies Firm-level technology absorption Laws relating to ICT FDI and technology transfer Mobile telephone subscriptions (hard data) Internet users (hard data) Personal computers (hard data) Broadband Internet subscribers (hard data) 6th pillar: Goods market efficiency .........12 Business impact of rules on FDI 6.08 Extent of marketing 11............01 Financial market sophistication 8.......03 5...50% Pay and productivity Reliance on professional management1/2 Brain drain Female participation in labor force (hard data) 8th pillar: Financial market sophistication.....09 4.06 7.........07 Soundness of banks 8.....07 Time required to start a business (hard data)g 6. Domestic 6...07 Infant mortality (hard data) 4...08 Life expectancy (hard data) B....... Foreign competition ...................04 6.... Domestic market size....09 Legal rights index (hard data) EFFICIENCY ENHANCERS 46 7......06 Number of procedures required to start a business (hard data)g 6......04 Nature of competitive advantage 11...17% 9...02 Malaria incidence (hard data)e 4...... Flexibility ..........07 Reliance on professional management1/2 The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum ...............50% 8......33% Quality of the educational system Quality of math and science education Quality of management schools Internet access in schools C......1: The Global Competitiveness Index 2009–2010 Appendix A: Structure of the Global Competitiveness Index 2009–2010 (cont’d.05 Total tax rate (hard data)1/2 6.17% A..................01 Intensity of local competition 6....................08 7........ Competition ............11 education ..50% A.01 Business impact of malariae 4.01 9.......05 5.....04 Extent and effect of taxation1/2 6......07 Production process sophistication 11............33% 6...............variablef A..... Quality of demand conditions ............ On-the-job training .05 B......................09 Willingness to delegate authority 7...50% 11.......11 Prevalence of foreign ownership 6........................................ Networks and supporting industries ......25% A.05 Value chain breadth 11.......03 Business impact of tuberculosise 4.....05 9...09 Prevalence of trade barriers 6..01 Domestic market size index (hard data)h 1.....06 HIV prevalence (hard data) 4...10 4..........10 Tariff barriers (hard data) 6............... Efficiency .......04 Tuberculosis incidence (hard data)e 4...50% 4...02 Extent of market dominance 6.....................07 7..............06 9..................06 of education .......25% 10..........09 Cooperation in labor-employer relations Flexibility of wage determination Rigidity of employment (hard data) Hiring and firing practices Extent and effect of taxation1/2 Total tax rate (hard data)1/2 Firing costs (hard data) use of talent ............ Quality 5.50% Quality of primary education Primary enrollment (hard data) Education expenditure (hard data)1/2 B.02 7.......17% A.................03 Ease of access to loans 8.variablef 6.........05 7..13 Burden of customs procedures 10... Foreign market size ............ Quantity of education ..........11 Education expenditure (hard data)1/2 B..................50% B.........03 7..............07 9.17% competition ...

Domestic competition is the sum of consumption (C)..02 12....5 and 2.. 10. the lowest and highest country scores in the sample of countries covered by the GCI. Data are then normalized on a 1-to-7 scale.01 12..06 Availability of scientists and engineers 12.. + 7 (sample maximum – sample minimum) b For those groups of variables that contain one or several halfweight variables. adjustments were made to account for extreme outliers.9 percent....... and 10.07 combine to form one single variable. and exports (X). Therefore.... but also on how costly they are for business.....1: The Global Competitiveness Index 2009–2010 Appendix A: Structure of the Global Competitiveness Index 2009–2010 (cont’d. To combine these data we first take the ratio of each country’s disease incidence rate relative to the highest incidence rate in the whole sample.05). The inverse of this ratio is then multiplied by each country’s score on the related Survey question. government spending (G). government debt). tuberculosis. we rely on a normalization formula that.... inflation enters the model in a U-shaped manner as follows: for values of inflation between 0. investment (I).. Note that countries with zero reported incidence receive a 7. This product is then normalized to a 1-to-7 scale. The relative importance of these distortions depends on the relative size of domestic versus foreign competition. in addition to converting the series to a 1-to-7 scale.. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 47 . Outside this range. and HIV/AIDS on competitiveness depends not only on their respective incidence rates... scores decrease linearly as they move away from these values. the weights are the following: Weights FactorEfficiency. g Variables 6..50% 12.06 and 6.07 Utility patents (hard data) 1.. regardless their scores on the related Survey question.. This interaction between the domestic market and the foreign market is captured by the way we determine the weights of the two components. while foreign competition is equal to imports (M). so that 1 and 7 still corresponds to the worst and best possible outcomes. PPP estimates of imports and exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP.. e The impact of malaria. the included variables provide an indication of the extent to which competition is distorted... In both components. reverses it.... minus the total value (PPP estimates) of exports of goods and services.Innovationdriven driven driven stage (%) stage (%) stage (%) Basic requirements 60 40 Efficiency enhancers 35 50 50 5 10 30 Innovation and sophistication factors 1.05 Capacity for innovation Quality of scientific research institutions Company spending on R&D University-industry collaboration in R&D Government procurement of advanced technology products 12..g.02 Intellectual property protection1/2 f The Competition subpillar is the weighted average of two components: Domestic competition and Foreign competition.. disease incidence.04 12.03 12. a country receives the highest possible score of 7.12th pillar: Innovation..... country scores for those groups are computed as follows: (sum of scores on full-weight variables)   (sum of scores on half-weight variables) (count of full-weight variables)   (count of half-weight variables) c As described in the chapter. The underlying data are reported in the Data Tables. The underlying data are reported in the Data Tables section (see tables 10. we combine its incidence rate with the Survey question on its perceived cost to businesses.03.. respectively. Notes a The standard formula for converting hard data is the following: (country score – sample minimum) 6 x + 1 (sample maximum – sample minimum) The sample minimum and sample maximum are... In some instances.04.. in order to estimate the impact of each of the three diseases.) 20 d In order to capture the idea that both high inflation and deflation are detrimental. normalized on a 1-to-7 scale.. PPP estimates of exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP.. i The size of the foreign market is estimated as the natural log of the total value (PPP estimates) of exports of goods and services. respectively: (country score – sample minimum) –6 x h The size of the domestic market is constructed by taking the natural log of the sum of the gross domestic product valued at PPP plus the total value (PPP estimates) of imports of goods and services. Thus we assign a weight of (C+I+G+X)/(C+I+G+X+M) to Domestic competition and a weight of M/(C+I+G+X+M) to Foreign competition. For those hard data variables for which a higher value indicates a worse outcome (e.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

The Executive Opinion Survey:
Capturing the Views of the
Business Community
CIARA BROWNE, World Economic Forum
THIERRY GEIGER, World Economic Forum

The Global Competitiveness Report has, over the last three
decades, become one of the world’s most respected
assessments of national competitiveness, providing a
mirror image of a nation’s economic environment and
its ability to achieve sustained levels of prosperity and
growth. In view of presenting an image that is as close
to reality as possible, the World Economic Forum draws
its data from two sources: international hard data sources
and the Executive Opinion Survey (Survey).The Survey
is a unique tool for capturing timely and vital information that is not available on a global level. It captures the
perception of business executives about the environment
in which they operate, thus imparting a unique source
of insight about the competitiveness of their economy.
The World Economic Forum has conducted the
annual Survey for 30 years.The Survey has evolved over
time to capture new data points essential to the Global
Competitiveness Index and several other projects.The
Survey has also expanded in its scope of completion,
achieving this year a record sample of over 13,000 surveys
from 133 countries between January and May 2009.
Following the editing process (see below), a total of
12,614 surveys were retained.This represents an average
of 95 respondents per country.Table 1 shows key attributes of the Survey respondents for the 2009 dataset.
The Survey is divided into 13 sections related to
the 12 pillars of the Global Competitiveness Index,
and includes a general “About your company” section
capturing information about the respondent’s company
as well.The data gathered thus provide a unique source
of insight and a qualitative portrait of each nation’s economic and business environment, and how it compares
with the situation in other countries. Given the scope
of the Survey’s coverage and in order to maximize its
outreach, it is translated into more than 20 languages.

Geographic expansion
In 1979, on the occasion of the Forum’s 10th anniversary, the first competitiveness report using survey data
covering just 16 European countries was launched.Thirty
years later, the Survey is conducted in 133 economies
from all the world’s regions (see Figure 1 for details).This
year the Report does not, for the first time in many years,
include any new countries although continued efforts
are made to cover those not yet included.1 Although
the Forum aims to present comprehensive international
coverage, expansion to additional countries may be
constrained by the absence of adequate infrastructure
to support the Survey process in some areas, and also
because some of the hard data sources are themselves
not available for some countries. Furthermore, the first
quarter of 2009 was a difficult time for conducting a
survey given the business executives’ concerns related
to the global economic downturn. Nonetheless, the 133
economies included in the Report account for more than

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.2: The Executive Opinion Survey

CHAPTER 1.2

49

1.2: The Executive Opinion Survey

Figure 1: Country/economy coverage of the Executive Opinion Survey

I 2009 coverage

50
98 percent of the world’s total gross domestic product,
demonstrating that the findings are indeed global in scope.

Survey structure and methodology
The Survey is reviewed and streamlined every year
to reflect the variables captured in the Global
Competitiveness Index (GCI), which is at the heart of
this Report. The 2009 Survey was very much aligned
with the previous edition.
Most questions in the Survey follow a structure
asking participants to evaluate, on a scale of 1 to 7, one
particular aspect of their operating environment. At one
end of the scale, 1 represents the worst possible situation,
and at the other end of the scale, 7 represents the best
(see Box 1 for an example).
In view of reaching out to business executives at
national level, the Forum has established a close collaboration with its network of over 150 Partner Institutes
that administer the Executive Opinion Survey in their
respective countries.The Partner Institutes are, for the
most part, recognized economics departments of national
universities, independent research institutes, or business
organizations.2 The valuable collaboration helps to
ensure that the Survey is conducted in a consistent
manner across the globe. In addition, the Partner
Institutes also take an active part in disseminating the
findings of the various competitiveness report series
by holding events or press conferences to explain the

Box 1: Example of a typical Survey question
How would you rate the intellectual property protection,
including anti-counterfeiting measures, in your country?
Very weak < 1 2 3 4 5 6 7 > Very strong

Circling 1....means you agree completely with the answer
on the left-hand side
Circling 2....means you largely agree with the left-hand side
Circling 3....means you somewhat agree with the left-hand
side
Circling 4....means your opinion is indifferent between the
two answers
Circling 5....means you somewhat agree with the right-hand
side
Circling 6....means you largely agree with the right-hand side
Circling 7....means you agree completely with the answer on
the right-hand side

results at the national level.The further dissemination
outreach allows the Report’s findings to be used as a tool
for improving the competitiveness outlook in each
country, whether by the policymaker or the business
executive.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1. Prepare a “sample frame,” or large list of potential
respondents, which includes firms representing
the main sectors of the economy (agriculture,
manufacturing industry, non-manufacturing
industry, and services).
2. Separate the frame into two lists: one that
includes only large firms, and a second list that
includes all other firms (both lists representing
the various economic sectors).5
3. Based on these lists, and in view of reducing
survey bias, choose a random selection of these
firms to receive the Survey.6
An additional feature of the 2009 Executive Opinion
Survey process was to ask the Partner Institute to collect
a combination of random respondents with some repeat
respondents for further comparative analysis. Despite the
significantly increased complexity of the process this year,
the 2009 Survey guidelines were carefully followed by a
large majority of Partner Institutes, improving the robustness of the sample.
Beyond the sampling guidelines, the actual administration of the Survey to the selected group of companies
is tailored at the national level to differences in infrastructure, distance, cultural preferences, and other such factors.
For example, in some instances, the Partner Institute
may deem that face-to-face interviews with business
executives are the most effective method, as opposed to
a mailing or telephone interview method, or offering
the online version as an alternative.
Over the past year, the online completion of the
Survey has increased further. Specifically, this year there
has been an increase of 7 percentage points—online
participation now represents 27 percent of all responses,
with over 10 countries using the online system solely
and 27 percent of countries having an online usage
above 70 percent.The online Survey is available in 15
languages.

Who else uses the Executive Opinion Survey?
The Survey data used for the calculation of the Global
Competitiveness Index as the backbone of The Global
Competitiveness Report is also used as a prime data source
for the Forum’s industry-specific reports, including The
Global Information Technology Report,The Travel & Tourism
Competitiveness Report,The Global Enabling Trade Report,
The Gender Gap Report, and The Financial Development
Report. The data are also used extensively for regional
studies. Most recently, the Forum published The Mexico
Competitiveness Report,The Brazil Competitiveness Report,
The Africa Competitiveness Report, and The Lisbon Review.
In addition, the Executive Opinion Survey data have
long served a number of international and national organizations, government bodies, academia, and private-sector
companies for their policy or strategy review. For example,
the data are used for the elaboration of the renowned
Corruption Perceptions Index and the International Bribe
Payers Index published by Transparency International
and for the global review of business perceptions and
the response to the HIV/AIDS epidemic produced by
Harvard School of Public Health in collaboration with
the Forum’s Global Health Initiative, as well as a number
of academic publications.
Finally, an increasing number of national competitiveness reports that make use of or refer to the Executive
Opinion Survey data are being published worldwide.

Data treatment and score computation
The previous sections described how the Survey is actually conducted and the data collected.The following
pages describe in detail how the data are then processed
to arrive at country-level scores.These results,7 together
with hard data indicators, then feed into the GCI, as
well as other projects as described above.
Data editing

The collected respondent-level data are subjected to a
careful editing process.The first editing rule consists
of excluding those surveys with a completion rate inferior to 50 percent.8 This is because partially completed
surveys likely demonstrate a lack of sufficient focus on
the part of the respondent. In a second step, a multivariate outlier analysis is applied to the data using the
Mahalanobis distance technique.This test assesses
whether each individual survey is representative, given
the overall sample of survey responses in the specific
country, and allows for the deletion of clear outliers (see
Box 2 for more detail).

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.2: The Executive Opinion Survey

To this end, and in order to obtain a representative
and comparable sample of Survey responses from each
economy, the Partner Institutes are each year required to
follow a detailed set of guidelines.The process has been
in constant review with the advice of an internationally
renowned survey consultancy and in collaboration
between the World Economic Forum and the Institute
of Strategy and Competitiveness at the Harvard Business
School.3 In this way, the process is moving toward a best
practice procedure, ensuring greater data accuracy and
allowing for more robust comparison across economies.
The Survey sampling follows a dual stratification
based on the size of the company and the sector of
activity.4 Specifically, the Survey sampling guidelines ask
the Partner Institutes to carry out the following steps:

51

1.2: The Executive Opinion Survey

52

Table 1: Distribution of respondents to the Executive Opinion Survey 2009 by country and firm size
Sample size
Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Barbados
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Côte d’Ivoire
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Gambia, The
Georgia
Germany
Ghana
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Libya

Count*

100
74
85
78
67
87
79
58
89
64
68
92
48
99
99
181
44
107
39
80
93
69
100
136
77
373
235
42
94
82
86
86
49
61
65
83
74
81
98
53
128
84
83
86
132
78
88
102
91
39
96
38
120
90
78
85
93
53
150
95
124
112
95
52
79
85
50
31

Online (%)

0
0
99
0
13
36
0
98
0
42
94
0
100
0
3
54
36
0
0
0
0
0
71
0
26
2
18
74
0
40
0
52
100
3
11
1
32
100
0
100
1
0
100
28
6
51
0
0
13
26
0
100
20
0
58
99
3
2
6
4
2
0
0
13
0
79
0
100

Respondents by firm size as a share (%) of country sample
<101

68
61
24
62
42
7
68
52
33
41
43
90
83
90
64
20
59
49
62
80
35
59
32
91
14
25
43
48
74
40
51
22
31
46
35
27
28
60
71
28
27
77
66
24
54
18
40
75
56
38
20
68
16
31
36
33
32
58
12
44
43
58
34
50
67
58
84
61

101–
500

501–
1,000

1,001–
5,000

5,001–
20,000

>20,000

No response

29
18
27
29
21
32
23
28
20
38
21
5
8
7
25
21
30
40
28
11
28
32
18
5
29
26
37
26
13
24
40
38
39
33
51
23
47
33
20
40
19
15
22
21
32
15
28
17
25
15
39
24
18
36
24
46
20
21
20
33
41
22
27
21
27
20
10
3

2
12
14
4
10
28
5
10
17
16
9
0
6
1
7
23
5
7
3
6
17
4
8
0
14
13
8
14
6
13
7
21
10
8
6
25
11
2
3
11
8
1
4
3
9
26
11
4
8
3
21
3
8
10
15
9
2
9
29
12
6
5
9
6
1
8
2
10

1
5
19
5
16
25
4
10
19
6
16
0
2
2
3
24
5
1
3
0
15
3
25
1
27
22
8
7
3
17
2
15
18
11
6
23
14
4
2
19
13
1
6
20
5
31
15
2
8
15
19
5
28
14
19
9
30
11
25
11
6
10
17
15
3
8
0
13

0
1
12
0
9
6
0
0
10
0
4
0
0
0
0
7
0
1
0
0
2
0
11
0
8
9
3
5
3
2
0
2
2
2
2
1
0
0
0
2
15
0
0
13
0
8
5
1
3
21
0
0
19
7
5
2
6
0
9
0
0
2
7
6
0
4
0
10

0
0
5
0
1
1
0
0
1
0
7
0
0
0
0
4
0
0
0
0
0
0
5
0
5
6
1
0
0
1
0
1
0
0
0
1
0
0
0
0
17
0
0
19
0
3
1
0
0
3
1
0
11
2
0
0
9
0
5
0
1
0
5
2
0
0
0
0

0
3
0
0
0
1
0
0
0
0
0
4
0
0
1
1
2
3
5
3
2
1
1
3
3
0
1
0
0
1
0
0
0
0
0
0
0
0
3
0
1
5
2
0
0
0
0
1
0
5
1
0
1
0
0
0
0
0
1
1
2
3
0
0
3
2
4
3

(Cont’d.)

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

Sample size
Country/Economy

Count*

Online (%)

Respondents by firm size as a share (%) of country sample
<101

101–
500

501–
1,000

1,001–
5,000

5,001–
20,000

>20,000

No response

Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malawi
Malaysia
Mali
Malta
Mauritania
Mauritius
Mexico
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Serbia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Suriname
Sweden
Switzerland
Syria
Taiwan, China
Tajikistan
Tanzania
Thailand
Timor-Leste
Trinidad and Tobago
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Venezuela
Vietnam
Zambia
Zimbabwe

102
38
91
101
95
68
79
65
58
58
154
83
82
103
67
55
101
119
47
83
123
86
168
300
92
129
89
39
184
81
65
80
45
368
104
98
78
144
65
110
44
103
100
36
38
103
126
62
99
97
86
31
34
83
96
101
105
122
122
404
88
36
144
91
54

62
21
11
0
2
34
0
60
0
24
87
0
0
0
3
7
2
90
100
20
1
60
96
1
1
18
1
0
76
7
97
100
33
1
1
0
0
48
72
1
57
52
0
0
79
66
13
56
0
1
0
0
68
16
3
0
2
14
95
96
1
100
1
0
24

26
45
44
74
62
35
66
74
84
40
25
42
87
66
57
47
54
25
17
47
66
24
20
41
49
60
9
21
32
28
54
20
67
26
21
65
40
25
32
48
14
36
31
78
16
43
72
2
76
64
19
81
29
39
6
62
35
15
48
68
55
44
48
63
15

52
24
46
18
29
31
23
18
10
40
10
51
9
25
27
25
38
22
21
40
21
28
42
28
29
28
45
28
29
28
17
31
9
27
29
27
50
36
40
29
14
25
40
22
32
13
21
24
18
25
29
16
41
45
65
32
31
39
15
6
31
22
40
23
33

14
21
4
3
1
10
5
3
0
9
12
6
0
4
12
15
2
11
15
7
7
14
15
9
10
7
22
13
19
12
12
11
9
27
13
4
5
17
11
8
5
5
18
0
5
12
2
21
2
5
17
0
12
10
19
4
16
9
6
1
11
8
8
4
26

6
8
5
4
5
15
3
3
0
10
25
0
0
2
4
11
5
23
28
5
4
28
13
14
10
2
17
23
17
21
14
15
13
15
27
3
5
18
15
8
25
17
8
0
13
20
4
35
4
4
24
0
18
6
8
0
10
22
15
7
3
19
2
8
20

1
3
0
1
1
6
0
0
0
0
11
0
0
2
0
0
1
11
19
0
2
3
8
6
2
0
6
8
2
7
3
0
0
1
6
0
0
3
2
2
18
9
2
0
29
8
0
11
0
0
8
3
0
0
2
2
4
9
6
6
0
6
0
1
6

0
0
0
0
0
1
0
0
0
0
15
1
0
0
0
0
0
8
0
0
0
1
1
2
0
0
1
5
1
0
0
0
2
2
5
0
0
0
0
5
25
8
1
0
5
4
0
6
0
0
2
0
0
0
0
0
1
3
11
11
0
0
1
0
0

1
0
0
0
1
1
4
2
5
2
1
0
5
1
0
2
0
1
0
1
0
1
1
0
0
2
0
3
1
2
0
23
0
1
0
1
0
1
0
0
0
1
0
0
0
1
0
0
0
2
0
0
0
1
0
0
2
2
1
0
0
0
1
1
0

TOTAL/AVERAGE (%)

12,614

27

44

27

10

12

4

3

1

*Final count, after editing of the data. See text for details.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

1.2: The Executive Opinion Survey

Table 1: Distribution of respondents to the Executive Opinion Survey 2009 by country and firm size (cont’d.)

53

1.2: The Executive Opinion Survey

54

Data weighting: Sector-weighted country averages

Box 2: A multivariate outlier detection technique:
The Mahalanobis distance
The Mahalonobis distance measure is used to estimate
the likelihood that one particular point of N dimensions
belongs to a set of such points. It extends a standard
Euclidean measure of distance by taking into account the
variance and covariance of points in the set across the N
dimensions. It is therefore perfectly suited for the treatment
of survey data. In effect, one single survey made up of N
answers can be viewed as the point of N dimensions, while a
particular country sample c is the set of points. The
Mahalanobis distance is used to compute the probability that
any survey i does not belong to the sample c. If the probability is high enough—we use 99.9 percent as the threshold—
we conclude that a survey is a clear outlier and does not
“belong” to the sample.
There is a limitation in applying this technique to the
Survey data. In order to compute the Mahalanobis distance,
the number of surveys in a country (i.e., the set of points)
must be greater than the number of questions considered
(i.e., the dimension or “degree of freedom”). Given the limited
number of respondents in many countries, we cannot include
all the Survey questions—over 150—and therefore limit the
test to a group of 67 questions, selected for their relevance
and placement in the Survey instrument. This allows us to
calculate the measure in 106 country samples. A total of 168
surveys in 14 countries were excluded based upon the
Mahalonobis outlier test.

Following the multivariate outlier test, a univariate
outlier test is applied at the county level for each question
of each Survey.We use the standardized score—or “zscore”—method, which indicates by how many standard
deviations any one individual answer deviates from the
mean of the country sample. Formally, this is calculated
as follows:

=

,

Once the data have been edited, individual answers are
aggregated at the country level.We compute sectorweighted country averages to obtain a more representative
average that takes into account the structure of a country’s economy.The structure is defined by the estimated
contributions to a country’s gross domestic product of
each of the four main economic sectors: agriculture,
manufacturing industry, non-manufacturing industry,
and services (see Table 2).9
An additional step is taken to prevent individual
responses within a sample from receiving an excessive
weight when the structure of the sample and the underlying economy differ greatly. As an extreme example,
imagine the case of a country where just 3 percent of
responses came from the services sector, but that sector
actually represents 90 percent of the country’s economy.
By applying the above sector-weighting scheme, we
would be giving a very high weight to a very few
surveys.This is avoided by trimming the sector weights.
When for a country the ratio of the weight of one sector
in the economy to the percentage of surveys from that
sector in the country sample exceeds 5, the sector weight
used for the weighted average is capped to five times the
percentage of surveys from that sector in the sample.The
weights of the other sectors are then adjusted proportionally to their weight in the country’s GDP.
Formally, the sector-weighted country average of a
Survey indicator,
, is computed as follows:

with

,

where
is sector s’s contribution to the economy of
country c (e.g., .36 for the services sector in Bahrain);
and
is the mean of the responses from sector s in
country c (
is response j from sector s and country c
and
is the number of responses from sector s in
country c ).

where
is respondent i ’s answer to question q in country
c; and
and
are the average and standard deviation,
respectively, of individual answers to question q within
country c’s sample.
Individual answers with an absolute value for
greater than 3 are dropped.

Data weighting: Moving average

As a final step, the sector-weighted country averages for
2009 are combined with the 2008 averages to produce
the final country scores that are used for the computation of the GCI 2009–2010 and for other projects.10
This moving average technique, introduced in
2007, consists of taking a weighted average of the most
recent year’s Survey results together with a discounted
average of the previous year.There are several reasons
for doing this. First, it makes results less sensitive to the
specific point in time when the Survey is administered.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

10/7/09

11:36 AM

Page 55

Table 2: Sectoral value-added as a share (%) of GDP

Country/Economy

Albania
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Barbados
Belgium
Benin
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Chad
Chile
China
Colombia
Costa Rica
Cote d’Ivoire
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
France
Gambia, The
Georgia
Germany
Ghana
Greece
Guatemala
Guyana
Honduras
Hong Kong SAR
Hungary
Iceland
India
Indonesia
Iran
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep.
Kuwait
Kyrgyz Republic
Latvia
Lesotho
Libya

Agriculture

Manufacturing
industry

21
8
9
20
2
2
6
0
19
4
1
32
13
10
2
6
1
6
33
35
32
19
2
23
4
11
9
9
24
7
2
3
1
12
7
14
12
3
46
3
2
29
11
1
34
4
11
31
13
0
4
6
18
14
10
2
3
2
6
1
3
6
26
3
0
34
3
12
2

12
5
21
17
11
20
6
12
18
7
17
8
15
13
3
18
10
17
14
9
19
17
16
6
14
34
18
21
18
21
8
27
14
13
10
16
22
18
5
24
12
5
12
23
8
13
18
8
20
3
22
10
16
27
11
23
22
18
13
21
19
12
11
28
2
11
11
19
4

Nonmanufacturing
industry
Services

8
56
12
27
18
11
67
51
11
11
7
6
22
8
46
11
61
16
9
11
8
14
16
38
33
15
18
8
8
11
11
12
11
14
27
21
6
13
8
9
8
10
12
7
18
10
10
16
8
5
8
14
13
20
34
12
10
9
20
9
10
28
7
11
49
8
11
28
76

59
31
57
36
69
67
21
36
52
78
75
54
51
69
49
66
28
61
44
45
41
50
66
32
49
40
56
63
51
61
79
59
73
60
56
50
59
67
40
65
77
56
65
69
41
73
61
44
59
92
66
71
52
39
45
63
63
71
61
68
67
53
56
58
49
47
75
41
18

(Cont’d.)

Country/Economy

Lithuania
Luxembourg
Macedonia, FYR
Madagascar
Malawi
Malaysia
Mali
Malta
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Montenegro
Morocco
Mozambique
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Qatar
Romania
Russian Federation
Saudi Arabia
Senegal
Serbia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Suriname
Sweden
Switzerland
Syrian Arab Republic
Taiwan, China
Tajikistan
Tanzania
Thailand
Timor-Leste
Trinidad and Tobago
Tunisia
Turkey
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Venezuela
Vietnam
Zambia
Zimbabwe

Agriculture

Manufacturing
industry

5
0
12
26
34
10
37
3
13
5
4
12
23
11
14
28
11
34
2
7
19
33
1
2
21
7
22
7
14
4
3
1
0
9
5
3
14
13
0
3
2
3
3
12
5
2
1
18
2
21
45
11
9
0
10
9
24
8
2
1
1
10
4
20
22
19

19
8
19
16
14
28
3
22
5
20
19
14
4
9
15
15
11
8
13
16
19
3
10
8
19
7
13
16
22
18
15
40
8
22
19
10
14
25
25
22
23
18
16
19
14
20
20
12
25
20
7
35
3
6
17
19
8
23
12
14
14
23
16
21
11
14

Nonmanufacturing
industry
Services

14
6
11
2
6
20
21
75
42
8
17
1
37
11
12
10
19
9
11
9
11
37
33
47
8
9
7
21
10
14
10
3
64
14
19
56
9
4
6
14
11
13
14
11
22
9
8
23
4
8
10
9
21
53
12
9
18
14
47
10
8
9
41
20
27
10

Source: World Bank; Economist Intelligence Unit; national sources.
Note: Data are for 2007 or the most recent year available.

61
85
59
56
45
42
39
41
67
60
73
36
69
59
47
59
49
74
68
51
28
56
43
53
77
58
56
54
65
73
56
28
55
57
32
62
59
69
61
63
66
67
58
59
70
71
47
70
51
37
45
68
41
60
63
50
55
39
76
77
58
38
38
40
57

1.2: The Executive Opinion Survey

Part 1

55

1.2: The Executive Opinion Survey

Box 3: Country score calculation
For any given Survey question qi , country c’s score, qi,c08–09 , is given by:
qi,c08–09 ⫽ wc2008 ⫻ qi,c2008 ⫹ wc2009 ⫻ qi,c2009

(1)

where
qi,ct is country c ’s score on question qi in year t, with t = 2008, 2009, as computed following the
approach described in the text;
t
is respondent n ’s response (on a 1–7 scale) to question qi in year t;
qi,n,c

Nct is the sample size (i.e., the number of respondents) for country c in year t; and
wct is the weight applied to country c ’s score in year t (see below).

The weights for each year are determined as follows:
(1⫺␣) ⫹
2008

c

w

2008
c
2008
2009

c
c

N

N

N

(2a)

2

and
␣⫹
wc2009⫽

N

N

N

2

.

(2b)

Plugging equations (2a) and (2b) into (1) and rearranging yields:

2008
2009
1
1
⫻ (1⫺␣) ⫻ qi,c ⫹ ␣ ⫻ qi,c


2
2

Nc2008
Nc2009
2008
2009
.
⫹ 2008
⫻ qi,c
2009 ⫻ q i,c
N ⫹ Nc
Nc ⫹ Nc2009
2008
c

(3)

qi,c08–09 ⫽

discounted-past weighted average

sample-size weighted average

In equation (3), the first component of the weighting scheme is the discounted-past weighted average.
The second component is the sample-size weighted average. The two components are given half-weight
each. The value for  is 0.6, which corresponds to a discount factor of 2/3. That is, the 2008 score of
country c is given 2/3 of the weight given to its 2009 score. One additional property of this approach is
that it prevents a country sample that is much larger in one year from overwhelming the smaller sample
from the other year.
The same treatment is applied to the results of the previous editions of the Survey. That is, for any
two consecutive editions t and t+1 of the EOS, country c’s score on question i is computed as follows:

qi,ctt ⫽
, +1

t
t
1
1
⫻ (1⫺␣) ⫻ qi,c ⫹ ␣ ⫻ qi,c ⫹

2
2
+1

Nct
N ⫹ Nct+1
t
c

Nct

t

⫻ qi,c ⫹

+1

N ⫹ Nct+1
t
c

t+1

⫻ qi,c

冥.

Example

For the sake of concreteness and clarity, let us compute the score of Turkey on indicator 2.05 on the
quality of air transport infrastructure.
Turkey’s score was 4.71 in 2008 and 5.33 in 2009. The weighting scheme described above indicates
how the two scores are combined. In Turkey, the size of the sample was 77 in 2008 and 96 in 2009. Using 
= 0.6 and applying formulas (2a) and (2b) yield weights of 42.3 percent for 2008 and 57.7 percent for
2009. The final country score for this question is given by formula (1):
0.423⫻ 4.71 ⫹ 0.577⫻ 5.33 ⫽ 5.07 .


56

2009
c
2008
⫹ c2009
c

2008

2009

This is the final score used in the computation GCI. Although numbers were rounded to two decimal
places in this example, exact figures are used in the actual calculation.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

(4)

7 The results are the scores obtained by each country in the various
questions of the Survey. The two terms are used interchangeably
throughout the text.
8 The completion rate is the proportion of unanswered questions
among the 120 core questions in the survey instrument.
9 In a few cases, the respondent has not answered the question
relative to their company’s activity. In order to include the surveys
with missing sector information in the country averages, the average response values for the surveys without sector information
are apportioned to the other sectors according to the sample
sizes in those other sectors. This has the effect of including these
surveys on a one-for-one basis as they occur in the sample—that
is, with no adjustment for sector.

1.2: The Executive Opinion Survey

Second, it increases the amount of available information
by providing a larger sample size. Additionally, because
the Survey is carried out during the first quarter of the
year, the average of the responses in the first quarter of
2008 and first quarter 2009 better aligns the Survey data
with many of the hard data indicators, which typically
are year-average data.
Practically, to calculate the moving average, a
weighting scheme is used composed of two overlapping
elements. On one hand, we want to give each response
an equal weight and, therefore, place more weight on
the year with the larger sample size. At the same time,
we would like to give more weight to the most recent
responses because they contain more updated information.That is, we also “discount the past.” Box 3 details
the methodology and provides a clarifying example.

10 For details about the 2008 dataset of the Survey, please refer to
Browne et al. 2008.

Reference
Browne, C., R. Bryden, M. Delgado, and T. Geiger. 2008. “Executive
Opinion Survey: Capturing the Voice of the Business
Community.” The Global Competitiveness Report 2008–2009.
Geneva: World Economic Forum. 67–77.

Conclusion
Despite all the challenges associated with conducting a
survey in 133 countries, the World Economic Forum collected over 13,000 responses from high-level executives.
This makes the Executive Opinion Survey data unique
as a portrayal of the opinion of business leaders concerning the many factors that contribute to shaping up the
competitive landscape of a nation.The Survey is by far
the largest poll of its kind; a scale which would not be
possible without the incredible work carried out by the
Forum’s network of over 150 Partner Institutes. Going
forward, sampling and comparability across the globe for
a more robust dataset will remain the major aims of the
Forum.

Notes
1 Data were collected for the Islamic Republic of Iran, but—in
keeping with our moving average methodology—one more year
of Survey data will be collected in 2010 in order to include the
country in the rankings of The Global Competitiveness Report
next year.
2 The World Economic Forum’s Global Competitiveness Network
would like to acknowledge e-Rewards Market Research for carrying out the Executive Opinion Survey 2009 in the United States,
collecting over 400 surveys following the detailed sampling guidelines.
3 Special appreciation is extended to Richard Bryden, Director of
Information Products, Institute for Strategy and Competitiveness,
Harvard Business School and Mercedes Delgado, Assistant
Professor, Fox School of Business, Temple University and
Member, Institute for Strategy and Competitiveness, Harvard
Business School for their invaluable input into the Survey
sampling methodology and Survey design.
4 The Survey sampling guidelines each year emphasize the need
to have a sample with a sufficient presence of large companies.
5 Company size is defined as the number of employees of the firm
in the country of the Survey respondent. The company size value
used for delineating the large and small company sample frames
varies across countries. The size value tracks closely with the
overall size of the economy. Adjustments were made to the value
based on searches in company directories and data gathered
through the administration of the Survey in past years.
6 In order to reach the required number of surveys in each country
(80 for most economies and 300 for the BRIC countries and the
US), a Partner Institute uses the response rate from previous years.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

57

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

Part 2 Data Presentation The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

2.1 Country/Economy Profiles The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .

....................... please refer to Chapter 1................................... 2008 .......3 0 5 10 15 20 25 30 Percent of responses • The chart on the upper right-hand side displays the evolution of GDP per capita adjusted for purchasing power parity (PPP).............10.5 Poor public health ...........................000 6...............4 8th pillar: Financial market sophistication...2 GDP (US$ billions)................3.......................3.............11..........................90 ..12.............3...........93 .........................0.............6..3..... 2008..........................2 10th pillar: Market size..4...........8 Restrictive labor regulations . Note that no data are available for Puerto Rico........5 Government instability/coups .....13.................................03 12...3..4 Access to financing ..............2... Global Competitiveness Index This section details the country’s performance on the various components of the Global Competitiveness Index (GCI)......................89 . GDP aggregates (available only through 2007) are from the World Bank’s World Development Indicators Online Database (data retrieved in August 2009)...6 2nd pillar: Infrastructure.............................121 ...108 .....................” “Middle East and North Africa..The information is drawn from the 2009 edition of the World Economic Forum’s Executive Opinion Survey..4...................................8 • Macroeconomic data come from the April 2009 edition of the International Monetary Fund (IMF)’s World Economic Outlook....................The black line plots the aggregate performance of the group of economies to which the economy under review belongs..........97 . which divides the world into six regions (“East Asia and the Pacific...... 2008............90 .....7 The first section presents a selection of key indicators: • Population figures come from the United Nations Population Fund (UNFPA)’s State of World Population 2008 and the Economist Intelligence Unit’s CountryData Database....11...”“South Asia..........8 3rd pillar: Macroeconomic stability...............126 ..........” “Latin America and the Caribbean...8 Inadequately educated workforce.................................. respondents were asked to select the five most problematic and to rank those from 1 (most problematic) to 5................87 ...... a chart shows the country’s performance in the 12 pillars of the GCI (blue line) measured against the average scores across all the countries in the same stage of development (black line).......96 ...............................3................3.........9 Inadequate supply of infrastructure ........9 9th pillar: Technological readiness.2... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.....2 4th pillar: Health and primary education ..3...66 .......5 Factor driven Basic requirements...The results were then tabulated and weighted according to the ranking assigned by respondents..................................................................3.4...... For more information on the methodology and results of the GCI....9 GDP (PPP) as share (%) of world total.3....................................................1 of this Report......................106 .................................................3 63 Crime and theft ...........................0... Policy instability...........................7 Poor work ethic in national labor force .” and “Sub-Saharan Africa”) and two income groups (“high-income OECD” and “other high income”).....The first column shows the country’s ranks among the 133 economies........................6 6th pillar: Goods market efficiency...........1.......................................5...... a different comparator than the economy’s corresponding group is used..............3........................... The bars in the figure show the responses weighted according to their rankings..90 .............4......0...4 Financial market sophistication Goods market efficiency Labor market efficiency Albania Efficiency-driven economies The most problematic factors for doing business Corruption.....................9 7th pillar: Labor market efficiency ...........................................0 1st pillar: Institutions ....6 GCI 2007–2008 (out of 131)..............................9....... while the second column presents the scores..............073....6 5th pillar: Higher education and training ........................... Note: From a list of 15 factors....95 ..8 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..... Albania Key indicators GDP (PPP int'l $) per capita.........1.... The most problematic factors for doing business This chart summarizes those factors seen by business executives as the most problematic for doing business in their economy..............9 11th pillar: Business sophistication.4 12th pillar: Innovation..9 Foreign currency regulations.........0 GDP per capita (US$).............109 ..................................................................2............... 1980–2008 Population (millions)...............We draw on the World Bank’s classification of economies. from 1980 through 2008 (or the period for which data are available) for the economy under review (blue line)....10............5 Inflation . On the right-hand side................7..........................” “Europe and Central Asia.....4 Tax rates ..... 2008 ......2....65 .....000 3..............................................................................................................................................104 .3..000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Page 1 Global Competitiveness Index Rank (out of 133) Key indicators Stage of development Score (1–7) GCI 2009–2010...............6..... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum .............000 Albania Europe and Central Asia 9....109 ........ Transition 1–2 1 GCI 2008–2009 (out of 134)...................................5 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...................8 Inefficient government bureaucracy.......4 Tax regulations .......The source for these figures is the April 2009 edition of the IMF’s World Economic Outlook..How to Read the Country/Economy Profiles How to Read the Country/Economy Profiles The Country Profiles section presents a two-page profile for each of the 133 economies covered by The Global Competitiveness Report 2009–2010..............................4......... From a list of 15 factors. In some cases.......

....................118 ....1 ............102 ....90 .............■ State of cluster development .................89 ....................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....................04 1.......■ Malaria incidence* ........■ Burden of customs procedures ........... Please refer to the appendix of Chapter 1............................01 8.........................................................■ Education expenditure* .07 9....................................■ Reliance on professional management ....01 7.......101 ..............125 ...■ Internet access in schools ......................................................................100 .........................1 for the detailed structure of the GCI..........04 12..........02 National savings rate*.......02 7.......68 ....13 6...117 ...............................................................................■ HIV prevalence*.......54 .......90 ..........................04 7......04 2...........■ Reliability of police services.................. the Data Tables in the following section of the Report provide detailed rankings and scores for all the variables of the GCI.................109 ...96 ....................76 ...........................■ 7th pillar: Labor market efficiency 7......20 ...04 4........... a colored square indicates whether the indicator constitutes an advantage (blue square) or a disadvantage (black square) for the country.....................................................■ Firing costs* .....03 4............83 ...09 Financial market sophistication..............09 4...96 .......03 9..17 1............................86 ..........................02 2...03 2..65 ............06 8..99 ..............120 ..................22 ...............■ 2nd pillar: Infrastructure 2.......................63 ...............01 2.........................■ Wastefulness of government spending....■ Utility patents*.......56 ........................................03 1.......................■ Transparency of government policymaking ....■ Efficacy of corporate boards .....■ 4th pillar: Health and primary education 4........14 ....... any individual variables ranked higher than 51 are considered to be advantages........02 5......................... variables ranked higher than the economy’s own rank are considered to be advantages...■ Laws relating to ICT. the following rules were applied: The Global Competitiveness Index in detail INDICATOR Property rights ...................12 ..78 ..80 ...... On the other hand....... For indicators allocated a half-weight in the GCI...03 8.... For Vietnam......91 ...........63 ...........................................................03 6................80 .................05 2.......05 11........■ Life expectancy*................07 5.■ Brain drain ........................................■ Extent and effect of taxation ......18 1.......................................11 Business impact of malaria...........■ Business costs of crime and violence ................................................................94 .....06 11......03 7..........................64 .....................................................■ Mobile telephone subscriptions*.117 .........119 ....15 1.■ 10.............................97 .......................................■ 9th pillar: Technological readiness 9............ ■ Competitive Advantage RANK/133 5..........................87 .............01 5.................133 ...........................93 ..........■ Restriction on capital flows ............84 .........■ Local supplier quality .■ Quality of port infrastructure .83 ........................................................12 1.....................................................126 ..........................75 ....................■ Protection of minority shareholders’ interests ............57 ...........■ Diversion of public funds .................■ Effectiveness of anti-monopoly policy ...................... For further analysis...... In order to identify variables as advantages or disadvantages..........■ Control of international distribution .......... Any variables ranked equal to or lower than the economy’s overall rank are considered to be disadvantages..................................■ FDI and technology transfer ..............02 4..........................69 .........................................................54 .......................................■ 11th pillar: Business sophistication 11................................................26 .......63 ........92 .......19 ...........................74 .................14 1...................................66 ...How to Read the Country/Economy Profiles Page 2 Albania The Global Competitiveness Index in detail This page presents the rank achieved by a country on each of the indicators entering the composition of the GCI...............................07 Capacity for innovation ..........103 ... ranked 75th overall......■ Ease of access to loans ...90 .........03 11................................ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum ..........117 ................1 ............90 .......■ Financing through local equity market........................■ Quality of management schools .............................04 8...........................08 4....................... Next to the rank................115 ......■ Tertiary enrollment* ..... For instance................09 Cooperation in labor-employer relations ............................■ Tariff barriers* ........................................Any variables ranked lower than 50 are considered disadvantages...........■ Intellectual property protection..120 ... whereas the variable Telephone lines (which shows 32.07 1...■ 12.08 Secondary enrollment* ...09 6......................................................■ Strength of auditing and reporting standards ..... represents a competitive disadvantage.......09 1..........02 Foreign market size index*...■ Extent of market dominance .......................■ Quality of electricity supply ..01 4...............................72 ......34 ..............116 ...........98 ...........■ Business costs of terrorism..............06 6...47 ...................11 6.......... its rank of 11th for Quality of overall infrastructure makes this variable a competitive advantage........01 6.......105 .................01 1.......■ No....■ Production process sophistication .........15 Intensity of local competition ......08 8..■ Gov’t procurement of advanced tech products ..13 1....11 1...................................59 ...........................07 11...04 Interest rate spread* ............................................................06 7......01 Government surplus/deficit* ............54 ..5 ................................04 11...............20 ..05 8...133 .. Indicators are organized by pillar...................................................07 7..03 5...........■ Pay and productivity................. In the case of United Arab Emirates..06 4.■ Availability of scientists and engineers ..06 9.........................02 11..............77 ....................... in the case of the United States—which is ranked 2nd overall—its 3rd rank in the variable Local availability of specialized research and training services makes this variable a competitive advantage..........■ Tuberculosis incidence*.■ Efficiency of legal framework in challenging regs ...........................10 1.05 7...............128 ..........■ Venture capital availability ... for which United Arab Emirates ranks 81st..■ Business impact of HIV/AIDS ..116 ....02 8.....70 . • For those economies ranked from 11 through 50 in the overall GCI...■ 3....07 4............59 .....■ 8th pillar: Financial market sophistication 8.03 12.. whereas the Number of procedures required to start a business.......10 6.............130 .........................................................■ Firm-level technology absorption....................■ Judicial independence .■ Business impact of rules on FDI ........ Any variables ranked below 10 are considered to be disadvantages....................... • For those economies ranked lower than 50 in the overall GCI.........................................................■ Broadband Internet subscribers*....................................94 .........■ Willingness to delegate authority ........■ Soundness of banks ...... Tertiary enrollment.....■ 12th pillar: Innovation * Hard data Note: For further details and explanation.63 ..........■ Degree of customer orientation ............■ Female participation in labor force*............■ Organized crime.............40 ...■ Value chain breadth..............■ 5th pillar: Higher education and training • For those economies ranked in the top 10 in the overall GCI...05 4.......7 per 100 population................■ Favoritism in decisions of government officials ........................ 36th rank) constitutes a competitive advantage.......... on which it ranks 26th.....■ Burden of government regulation....■ Total tax rate* ...07 2......19 RANK/133 6th pillar: Goods market efficiency 6......................■ Efficiency of legal framework in settling disputes..32 .01 11....110 ...........■ Internet users* .................116 ....................■ Available seat kilometers* ....02 9...06 12......05 5..............■ 10th pillar: Market size 10.............................■ 3rd pillar: Macroeconomic stability 3...........12 6................■ Quality of air transport infrastructure..................■ Prevalence of trade barriers..........08 Quality of overall infrastructure.04 9...■ Ethical behavior of firms .........69 ....................................01 9............................................................05 12.................................105 .■ Quality of railroad infrastructure .....................................05 Government debt*....■ Time required to start a business* ...............■ Strength of investor protection*........................16 1...........128 ..............■ Legal rights index*................................101 .........01 Domestic market size index* ....... variable Burden of government regulation constitutes a disadvantage (106th).08 Availability of latest technologies......74 .......................■ Quality of scientific research institutions................■ Local availability of research and training services .........85 ..............................08 6.......04 5.............................................................14 6..............91 .............■ Telephone lines* .02 6..................04 6..........................■ 64 ■ Competitive Disadvantage INDICATOR 1st pillar: Institutions 1..............■ Quality of primary education....................80 ..................■ Quality of the educational system ...........■ Primary enrollment* ..........106 ....116 .....62 ....■ Extent of marketing ...................................70 ....................■ Quality of roads.................. ranked 23rd overall....■ Agricultural policy costs ..45 ............ of procedures required to start a business* ................■ Company spending on R&D .............. only the first instance is shown on this page..................05 9...........05 1............08 11...101 .......03 Inflation* ...............................................■ Public trust of politicians.....06 1........08 1................■ Nature of competitive advantage .05 6..............................85 ............... individual variables ranked from 1 through10 are considered to be advantages.........95 .06 5..71 .....08 7...■ 3.......■ Buyer sophistication ..■ University-industry collaboration in R&D .■ Business impact of tuberculosis.....................103 .............06 2....09 Local supplier quantity ..........■ Flexibility of wage determination.■ Regulation of securities exchanges ........07 6...95 .......................■ Rigidity of employment*............104 ........01 12.........................................■ Infant mortality*...............104 ...............10 4....................................■ 3................119 ..............99 .......... constitutes a competitive disadvantage for the country............■ Hiring and firing practices ........02 12...........................114 .......■ Quality of math and science education .......88 ..................98 ....02 1.............81 .........■ 3.......■ Personal computers* ...............■ Prevalence of foreign ownership ..............■ Extent of staff training ...............07 8..

Rep. China 296 Colombia 118 Madagascar 208 Tajikistan 298 Costa Rica 120 Malawi 210 Tanzania 300 302 Côte d’Ivoire 122 Malaysia 212 Thailand Croatia 124 Mali 214 Timor-Leste 304 Cyprus 126 Malta 216 Trinidad and Tobago 306 Czech Republic 128 Mauritania 218 Tunisia 308 Denmark 130 Mauritius 220 Turkey 310 Dominican Republic 132 Mexico 222 Uganda 312 Ecuador 134 Mongolia 224 Ukraine 314 Egypt 136 Montenegro 226 United Arab Emirates 316 El Salvador 138 Morocco 228 United Kingdom 318 Estonia 140 Mozambique 230 United States 320 Ethiopia 142 Namibia 232 Uruguay 322 Finland 144 Nepal 234 Venezuela 324 France 146 Netherlands 236 Vietnam 326 Gambia. 190 Slovenia 280 Burkina Faso 102 Kuwait 192 South Africa 282 Burundi 104 Kyrgyz Republic 194 Spain 284 Cambodia 106 Latvia 196 Sri Lanka 286 Cameroon 108 Lesotho 198 Suriname 288 Canada 110 Libya 200 Sweden 290 Chad 112 Lithuania 202 Switzerland 292 Chile 114 Luxembourg 204 Syria 294 China 116 Macedonia. FYR 206 Taiwan. The 148 New Zealand 238 Zambia 328 Georgia 150 Nicaragua 240 Zimbabwe 330 Germany 152 Nigeria 242 Ghana 154 Norway 244 The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 65 .List of Countries/Economies List of Countries/Economies Country/Economy Country/Economy Page Country/Economy Albania 66 Greece 156 Oman 246 Algeria 68 Guatemala 158 Pakistan 248 Argentina 70 Guyana 160 Panama 250 Armenia 72 Honduras 162 Paraguay 252 Australia 74 Hong Kong SAR 164 Peru 254 Austria 76 Hungary 166 Philippines 256 Azerbaijan 78 Iceland 168 Poland 258 Bahrain 80 India 170 Portugal 260 Bangladesh 82 Indonesia 172 Puerto Rico 262 Barbados 84 Ireland 174 Qatar 264 Belgium 86 Israel 176 Romania 266 Benin 88 Italy 178 Russian Federation 268 Bolivia 90 Jamaica 180 Saudi Arabia 270 Bosnia and Herzegovina 92 Japan 182 Senegal 272 Botswana 94 Jordan 184 Serbia 274 Brazil 96 Kazakhstan 186 Singapore 276 98 Brunei Darussalam Page Page Kenya 188 Slovak Republic 278 Bulgaria 100 Korea.

.....................89 ..........................................................................95 ...............8 3rd pillar: Macroeconomic stability....109 ....................65 .........................66 .2......000 3.5 Government instability/coups .......................................... 2008........2 4th pillar: Health and primary education ..........3.......4..............13................................9........................5....3...........126 ...........5 66 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers........................................3...............87 .2...............1: Country/Economy Profiles Albania Key indicators GDP (PPP int'l $) per capita..................8 Inefficient government bureaucracy..3................................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ......106 ...........................................................................9 11th pillar: Business sophistication.10....................000 Albania Europe and Central Asia 9...........03 12...4.................8 Restrictive labor regulations ..........................8 Inadequately educated workforce...........121 ..........................10..............................2...6 2nd pillar: Infrastructure..................4 Tax rates .90 ......3...0 1st pillar: Institutions ....1...................4 Tax regulations ..000 6..............6. 2008 ............109 ......9 7th pillar: Labor market efficiency .....11.............................. 2008 ..............................4............................................4 Access to financing .....................................................................4 Financial market sophistication Goods market efficiency Labor market efficiency Albania Efficiency-driven economies The most problematic factors for doing business Corruption...4.......3...............................7.........108 .................................................5 Poor public health ...................................................90 .............. The bars in the figure show the responses weighted according to their rankings.....6 6th pillar: Goods market efficiency.9 9th pillar: Technological readiness...4.....................................6 GCI 2007–2008 (out of 131)...7 Poor work ethic in national labor force .............90 .....3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......................................93 .........5 Factor driven Basic requirements..9 Foreign currency regulations...............................................2 10th pillar: Market size..104 ...........................2.....9 Inadequate supply of infrastructure ........8 Policy instability.....000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...................................3..........................6 5th pillar: Higher education and training .....8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...97 .................12........................................11.....0..................................0...5 Inflation ...073....................................1.....3. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...................2 GDP (US$ billions)...3 Crime and theft ............................3.....2...9 GDP (PPP) as share (%) of world total........... 2008..............................0 GDP per capita (US$).............0............6..................................................96 ..........................................3...... 1980–2008 Population (millions)....................3.........4 8th pillar: Financial market sophistication........7 Transition 1–2 1 GCI 2008–2009 (out of 134)....4 12th pillar: Innovation............................3...

.................11 Business impact of malaria.....................................96 ................133 ....................................62 .....■ Restriction on capital flows ............93 ..................01 3.........................■ Quality of management schools ................11 6.....80 ............................54 .................................................128 ..................07 5..■ Utility patents*........■ Strength of auditing and reporting standards ....84 ............90 ........04 6....................116 ..03 2.......................................03 6........07 6.........................■ Rigidity of employment*..........■ Legal rights index*.......................................13 1...............07 1..............08 Secondary enrollment* .15 1..■ Efficiency of legal framework in challenging regs ...............08 1..........................05 5.........92 ....■ Quality of railroad infrastructure ............■ 8..................103 ......59 ...01 6.■ Ethical behavior of firms .........01 5.........14 6.04 5.......■ Tuberculosis incidence*.........................90 .■ Quality of the educational system ...............................■ Willingness to delegate authority ...............99 ....■ Quality of scientific research institutions.......................................91 ........08 6..............................54 ...........................■ Malaria incidence* .............1 .....63 ...............■ State of cluster development .....................04 4...............05 6.32 ...........■ Degree of customer orientation .06 9............14 1.■ Mobile telephone subscriptions*..............■ Pay and productivity...05 11.........116 .........03 4..............................................................81 .....03 12.................................................1 ................■ Nature of competitive advantage ...........■ Personal computers* .■ Extent of staff training .......................■ Business impact of HIV/AIDS . please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..........................116 ..................09 Cooperation in labor-employer relations ....02 3.........■ Quality of roads..............14 ....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..............................................05 1.........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...............12 1...08 4.................■ Local availability of research and training services ..........54 ................74 .............................05 2.............■ 2....03 11......125 .............119 ...............................................................................126 .........................70 .66 .........■ Value chain breadth.......................63 .08 Availability of latest technologies................06 4...............................02 8....................................■ Venture capital availability ....................................................................■ Government debt*................80 ..............■ Protection of minority shareholders’ interests .................................■ Extent of marketing .............................■ Organized crime..........■ Gov’t procurement of advanced tech products .....................................■ Prevalence of foreign ownership .............95 ..86 .............59 ...101 ............................03 9....■ 7th pillar: Labor market efficiency 7...................■ 10................88 ..■ Infant mortality*.................................................■ Quality of primary education............................118 ....■ Reliability of police services..........09 Local supplier quantity .06 5...........................06 12.......120 ....07 11...............02 9..07 2.........01 9.........105 ...............................■ Life expectancy*............05 Government surplus/deficit* ................................70 ........................71 .......■ 12..........................110 .............■ Flexibility of wage determination..........................■ University-industry collaboration in R&D ..............10 4.■ Company spending on R&D .......■ Business costs of crime and violence .............................■ Efficiency of legal framework in settling disputes....■ Tariff barriers* ..........................01 2..............................................22 ................■ Diversion of public funds ..77 ......................................................117 ..10 6.............................................95 .98 ...............................04 11................................16 1....87 .................................109 ........02 7.....19 Property rights ......06 1............97 ..............■ Ease of access to loans ..09 4.10 1...■ Control of international distribution ....■ Judicial independence ........106 ..■ Quality of port infrastructure ...............................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..............■ Extent of market dominance ............................03 3......1: Country/Economy Profiles Albania The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 67 .......68 ..............07 Capacity for innovation ................01 12......................................116 .........04 1................117 ................................................................09 Financial market sophistication....................05 8.......■ Tertiary enrollment* ...20 ..........................................................18 1.......................................■ Regulation of securities exchanges ..02 11............................................06 6.08 11........■ Female participation in labor force*........................................08 Quality of overall infrastructure........................................105 ...................02 4...........................06 11......■ Total tax rate* ........05 7......99 ...■ Financing through local equity market.■ Time required to start a business* ......................................■ Effectiveness of anti-monopoly policy ......11 1......■ Burden of government regulation....................114 ...............■ Firing costs* ..................103 ......................90 ..78 ....■ Extent and effect of taxation ..........................................04 7.■ Business costs of terrorism.................................94 .....47 ...■ No...............07 9....................................■ Business impact of rules on FDI ..........................04 9...128 ....64 ..........................................■ Hiring and firing practices ....................01 8........■ Prevalence of trade barriers...................57 ........02 Foreign market size index*..........................■ Public trust of politicians....03 1................104 ..................65 ..■ Quality of air transport infrastructure...12 ..............01 1...........■ Strength of investor protection*....■ 10th pillar: Market size 10......................■ Soundness of banks ................................90 ..........40 ................■ Wastefulness of government spending......................117 ..........06 7.................................15 Intensity of local competition ....75 .........■ Internet access in schools .................................06 8..........................■ Available seat kilometers* .............................04 12.■ Intellectual property protection.......................................05 9......08 8...............76 .......■ Education expenditure* ...............04 3...02 1.......................20 .........120 ......................91 .......■ Business impact of tuberculosis......04 2.........................07 7...■ Quality of math and science education ............83 ....01 Domestic market size index* ..■ Agricultural policy costs .............69 ..............07 8..............5 ...........■ Availability of scientists and engineers ...................■ HIV prevalence*...............01 7.........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...12 6...................■ Reliance on professional management ....................09 6....■ National savings rate*....................03 7.130 ...........................■ Telephone lines* ..................04 8.17 1..119 ...............................96 .......................■ Brain drain ....................... 2.....83 ...01 11..........03 5...............02 6....................................................................................06 2....72 ....104 ..........02 2.■ Favoritism in decisions of government officials ................26 ....01 4............85 .......85 ...■ Burden of customs procedures ....19 ....102 ...........................■ FDI and technology transfer ..........................................■ Buyer sophistication ....................09 1................80 ...................................100 .....■ 12th pillar: Innovation * Hard data Note: For further details and explanation...........................■ Local supplier quality ......................89 .69 .133 .......■ Interest rate spread* ................56 .......■ Broadband Internet subscribers*...101 .................05 4............................................. of procedures required to start a business* .■ Firm-level technology absorption.......................45 ..............07 4.......................94 ..101 .........■ Laws relating to ICT...................115 .............63 ...........98 ..■ Production process sophistication .....................■ 9th pillar: Technological readiness 9..............13 6.......■ Inflation* ..........03 8................74 ...........34 .............■ 4......................................05 12......■ Primary enrollment* ........................02 12....■ 11th pillar: Business sophistication 11............................................02 5.....................■ Efficacy of corporate boards ..■ Internet users* ....■ Quality of electricity supply ............■ Transparency of government policymaking ..........................08 7......63 ...

.................................2 Poor work ethic in national labor force ..................................128 .............................3 5th pillar: Higher education and training ............................5 8th pillar: Financial market sophistication...............................3 Poor public health ..6 10th pillar: Market size...000 Algeria Middle East and North Africa 6.....................4 7th pillar: Labor market efficiency .....9 11th pillar: Business sophistication...81 ...........1: Country/Economy Profiles Algeria Key indicators GDP (PPP int'l $) per capita..................7 GDP per capita (US$).....................................................3 68 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.............................6 Crime and theft .......... 2008....................3................6 Restrictive labor regulations ...................4....0...3........................................5...........114 ....2 ..................... 2008 ....................6 Tax regulations ....99 ..1 Corruption.......117 ......3.....2 GDP (PPP) as share (%) of world total....................................83 .............2........6....................51 ...10...............6 Financial market sophistication Goods market efficiency Labor market efficiency Algeria Economies in transition from 1 to 2 The most problematic factors for doing business Access to financing ....................7 Tax rates .......................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.....................................20.............................................................6..........................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..................................7 GCI 2007–2008 (out of 131)............... 2008 .123 ....0 Inefficient government bureaucracy...................3 6th pillar: Goods market efficiency............................8 Inflation ..3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....9 3rd pillar: Macroeconomic stability...................9 Transition 1–2 1 GCI 2008–2009 (out of 134).2.............0..3...............588.................................3 Inadequate supply of infrastructure ....... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ............................4 1st pillar: Institutions ...............2 2nd pillar: Infrastructure...........132 .2 Inadequately educated workforce....0...........2..................34 8......................2...............159...............................5..............3...................................8 9th pillar: Technological readiness. 1980–2008 Population (millions).........102 ........................ 2008..4 4th pillar: Health and primary education .......7.........................1 12th pillar: Innovation....0.4 GDP (US$ billions).............................................23.1.....................................................................................................................77 .3................122 .......................9 Foreign currency regulations..................................... The bars in the figure show the responses weighted according to their rankings......5....................000 2.......................6.............000 4.......3.6 Policy instability.99 ...........2..................2..............................................................2...........4.9 Factor driven Basic requirements...........1 Government instability/coups .........3.......61 ......................6..........................................115 .....................................3....4..............34......0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...........126 ...127 ............3.

...........................................................06 2............90 ...■ Extent and effect of taxation ................................................03 7...............02 11...........09 6..................04 6.........■ 10th pillar: Market size 10.....05 7..04 3...........................................117 ...........................■ Quality of railroad infrastructure ....................................................94 ........................................................................................07 4.................................57 ...........42 ......67 ......................123 .........................■ 9th pillar: Technological readiness 9..........................................................................................11 1..................08 6..............02 6...................................02 4................02 9..................■ Education expenditure* .............................13 1............133 .04 4..............■ Quality of math and science education ............■ Brain drain .......................................83 ..........■ Regulation of securities exchanges .......■ Effectiveness of anti-monopoly policy .04 1...........125 ...........05 9.................................110 .....................■ Reliance on professional management ...........06 8..................■ Transparency of government policymaking ....................01 9.62 ..05 5.....■ Government debt*..104 ..70 ..........02 8...........09 1........90 ........................................120 .........................■ Buyer sophistication ....................■ Utility patents*.......■ Quality of port infrastructure .50 ............■ Ease of access to loans ........84 .127 ...■ Public trust of politicians....01 7........................................................................93 ........100 ..........■ Agricultural policy costs .............06 5.................................■ Strength of investor protection*.■ State of cluster development ................117 ..05 12.........................117 .79 ...............................06 4........■ No.....................................02 1...........................01 2...........126 .........07 2.....02 5.......119 .............08 7..■ Business impact of tuberculosis.....06 11...80 .........03 11....118 ....120 .................■ Burden of customs procedures .............01 4.01 12....120 ............................■ Legal rights index*........10 6.......■ FDI and technology transfer ...............05 2......................76 ..............■ Strength of auditing and reporting standards ..................................■ Value chain breadth...06 1..........................................76 ...............■ Life expectancy*.....111 ...............100 ..■ Protection of minority shareholders’ interests .04 9......06 7.......■ Business costs of crime and violence ..........■ Venture capital availability ............19 Property rights ...■ Personal computers* .........133 ......■ Business costs of terrorism...........15 Intensity of local competition ..........02 Foreign market size index*............01 3...■ Quality of management schools .......■ Malaria incidence* .....07 5......28 ..........07 1.......................■ Restriction on capital flows ...........................■ Efficacy of corporate boards .113 ....................................121 ..■ Organized crime...........■ Extent of marketing ..........126 ................................................................■ Efficiency of legal framework in challenging regs ..............................17 1..........104 ......................................13 ....9 .96 ......95 ...................11 6......70 .............................................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5....................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.■ Reliability of police services..02 2..■ Nature of competitive advantage .■ 2........................................15 .....■ Pay and productivity.....08 11.....■ Infant mortality*......................................................................124 ..52 .....■ Quality of primary education.....■ Intellectual property protection......................■ Wastefulness of government spending................07 7.........101 ...............■ Flexibility of wage determination........................118 .....68 ...............■ Quality of electricity supply .....■ Gov’t procurement of advanced tech products .......91 .......................................03 1...............02 3..........09 Cooperation in labor-employer relations ................74 .......................................133 .......133 ..■ Quality of roads.07 11.............111 ..32 ....126 ........5 .09 Local supplier quantity ...........■ Burden of government regulation..86 ........................................128 ..115 ...........................01 1.........1 ..■ Favoritism in decisions of government officials ...07 8.116 ....88 ..........................10 1...■ 7th pillar: Labor market efficiency 7..■ Diversion of public funds ....06 12..............................■ Efficiency of legal framework in settling disputes......................................■ Laws relating to ICT.........■ 12th pillar: Innovation * Hard data Note: For further details and explanation...............128 ..........■ Female participation in labor force*..■ Production process sophistication .........................03 12.........■ HIV prevalence*...............10 4..■ 11th pillar: Business sophistication 11.............■ Interest rate spread* .........16 1..............130 .04 12...■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..................■ Firm-level technology absorption.........98 ...127 ................■ Control of international distribution ........................................................................■ Mobile telephone subscriptions*.....................■ Tertiary enrollment* .....80 ......131 ..................06 9.........03 9............123 ...■ Quality of scientific research institutions.100 ........................82 ...........■ Telephone lines* ..........................■ Internet access in schools ..................................................55 .54 ...........105 .......................03 8.........131 .............02 7................93 ..05 11...............69 ...........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3........128 ...............................07 Capacity for innovation ................■ Time required to start a business* ..............................120 ...................07 6............................■ Tariff barriers* ...01 Domestic market size index* .......122 .............■ Availability of scientists and engineers ..■ Business impact of HIV/AIDS ....The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1............■ Local supplier quality ..08 Secondary enrollment* .......................................04 2......................06 6....................................................120 ....64 .....................................118 .....1: Country/Economy Profiles Algeria The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 69 ....................................................129 .......08 4.......05 Government surplus/deficit* .01 6..12 6.05 6................■ Broadband Internet subscribers*......................02 12.................................■ Prevalence of trade barriers..............05 1.05 8.......................................03 2..........109 .............................................■ Quality of the educational system ..............................99 ...................125 ..102 .........129 ........................................■ Prevalence of foreign ownership ..........112 ...........01 11...■ Rigidity of employment*...............14 1.......... of procedures required to start a business* .....131 ....93 ............................................................................13 6...........................................127 .....................................................................■ Willingness to delegate authority .................................■ University-industry collaboration in R&D ...■ Quality of air transport infrastructure...............123 ............03 6.....■ 10......15 1.............................■ Company spending on R&D .................................09 Financial market sophistication..........................................................■ Inflation* .................................■ Primary enrollment* ...119 .........................■ Hiring and firing practices ..76 ........08 1........................112 .............12 1..04 7...............05 4.......09 4..........................127 .......08 Availability of latest technologies...................................01 8...........18 1......113 .....................■ Business impact of rules on FDI ...03 3......■ Tuberculosis incidence*...............14 6...............■ National savings rate*...........1 .......■ 12........■ Extent of staff training .............. 2......114 ...........................■ Ethical behavior of firms ...124 .......................128 .....................................04 11..........■ Internet users* .....■ Financing through local equity market...........■ Firing costs* .....■ 8........................................118 ...............................................................04 5............08 8...........■ Extent of market dominance ....................07 9..04 8.......121 ......03 5..03 4..........■ Degree of customer orientation .........................■ Local availability of research and training services .................01 5.....■ Judicial independence ......■ Total tax rate* .............08 Quality of overall infrastructure.......■ 4.........125 ........................■ Available seat kilometers* ........80 ...11 Business impact of malaria............................■ Soundness of banks .

......................................................2...............................................3.... The bars in the figure show the responses weighted according to their rankings.. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..................................000 3.....................15....59 ..6 Inefficient government bureaucracy.......................8 5th pillar: Higher education and training .......68 ... 2008..........................................4 Restrictive labor regulations ...124 ...........4 Tax rates ...............1 GDP (PPP) as share (%) of world total....................2.................4 9th pillar: Technological readiness.3.............. 2008 ...........73 ......................3....4.............................................9......84 ..........................3 Poor public health .......................3....................5 7th pillar: Labor market efficiency .......................................................2......................5..............................9 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors................85 .....5 10th pillar: Market size...000 9.9 Financial market sophistication Goods market efficiency Labor market efficiency Argentina Efficiency-driven economies The most problematic factors for doing business Policy instability...............................................9 GDP (US$ billions).............1 Access to financing .....1................................... 2008 ....9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............9 12th pillar: Innovation.........000 Argentina Latin America and Caribbean 12...................3.9 2nd pillar: Infrastructure.9 Factor driven Basic requirements.........116 ..............2......0.......................................0......000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..............................9 Tax regulations ...8....................... 1980–2008 Population (millions)...............84 .....88 ..........5 70 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...........8................1......76 .................................................................55 ................3 Crime and theft ............3.............7...................4....3 Poor work ethic in national labor force .....................9 Transition 1–2 1 GCI 2008–2009 (out of 134).86 .........................126 .................................................................1..........39.................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..............4............1: Country/Economy Profiles Argentina Key indicators GDP (PPP int'l $) per capita....6...........................................6 8th pillar: Financial market sophistication....1 1st pillar: Institutions .....................3....................3........3..................23 ..........20..83 15...................3.....................9 Foreign currency regulations...........4........................000 6..........4.....................9 GCI 2007–2008 (out of 131).326............0 Inadequately educated workforce......1 Corruption..................................................... 2008................3..............0.......17...0 Government instability/coups .........7 Inadequate supply of infrastructure ...........................88 ...............9 4th pillar: Health and primary education .............214.......3.......................................4 11th pillar: Business sophistication..............................................0 Inflation .............123 .................48 .....1 3rd pillar: Macroeconomic stability...5 GDP per capita (US$).................2 6th pillar: Goods market efficiency.............85 .................

04 1.......10 1........39 .........86 ...05 5.■ Production process sophistication ..............................04 12..■ Quality of primary education....................................■ Ethical behavior of firms ...............29 ...126 .............12 6.......■ Strength of auditing and reporting standards ..■ Venture capital availability ..........08 8.....................133 ..................128 ...................113 .■ Extent and effect of taxation .........■ Extent of market dominance ....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..........................04 5...84 .14 1....................................■ Tertiary enrollment* .■ Financing through local equity market......03 11....................................................03 5....................01 7........07 9......................................26 ....■ HIV prevalence*.....................04 2......................................................................................56 ...................■ Strength of investor protection*...............91 ......68 .....................■ Efficiency of legal framework in settling disputes......131 .................................08 7......................■ Diversion of public funds .............60 ................■ Available seat kilometers* ..................08 Secondary enrollment* ...............06 1................19 Property rights ..................................15 1................02 7.03 3........64 .01 11...........121 ...48 .........129 ......12 1..■ Protection of minority shareholders’ interests ..............01 9................■ Willingness to delegate authority ...08 Quality of overall infrastructure.......■ Time required to start a business* ........11 Business impact of malaria..125 ......■ Female participation in labor force*.....■ 8.90 ..................................................■ Effectiveness of anti-monopoly policy .......■ 9.....■ 2...■ Total tax rate* ...................70 ..■ Education expenditure* ...........56 .....■ Business impact of rules on FDI ..■ Reliance on professional management ...61 ...■ FDI and technology transfer .....121 .......................................100 ..........53 ......■ Business costs of crime and violence .......05 2...........................■ Rigidity of employment*....114 ....06 12.........................127 ..........18 1...83 ..02 3.....86 .........■ Personal computers* .....45 .............................■ Buyer sophistication ......91 ...........................110 ................13 6..............■ Quality of math and science education ......................■ 12.................■ Transparency of government policymaking ...05 9.............................................................................................04 3......■ Quality of the educational system ...■ Primary enrollment* ..126 ......................................................03 9......71 .....................02 5...........06 8.■ Pay and productivity.....................118 ..........117 ......17 1...................31 ........■ Internet users* ....................................................................................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...................83 ........68 ..■ Business impact of HIV/AIDS ........42 ..........................................■ Utility patents*..........02 9..130 ...............09 6.....................01 4..........■ Availability of scientists and engineers .......................■ Inflation* .................................69 ............................................................09 Local supplier quantity .■ Efficiency of legal framework in challenging regs ...03 12....................■ Gov’t procurement of advanced tech products ...65 .69 .07 7...........08 Availability of latest technologies..........06 9...............94 .................59 .................................01 8....41 ..................85 ...............................78 .....64 ............■ State of cluster development .............10 6...................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.......................■ 7th pillar: Labor market efficiency 7.....02 4.......................04 9.....■ Public trust of politicians......02 2...........■ 4.....03 7.....06 5.......13 1.................. of procedures required to start a business* ..........■ Mobile telephone subscriptions*..........................................■ 11th pillar: Business sophistication 11..............................................124 ................80 ...................89 .......96 ....................05 7......04 11.......................■ Flexibility of wage determination.....■ Firm-level technology absorption.....05 12....84 .........................................■ Internet access in schools .■ Quality of scientific research institutions.......................03 4................113 ....■ Malaria incidence* ....................................11 1.........08 6..........125 .........■ Extent of marketing ............59 .03 2.......................01 1.......■ Burden of customs procedures ................■ Agricultural policy costs ........■ Broadband Internet subscribers*....05 8................■ Efficacy of corporate boards ...............■ Ease of access to loans ..94 ..................■ Company spending on R&D .......................03 8.............................83 .........................................■ Organized crime....................■ Judicial independence ....60 ..............................■ Hiring and firing practices ..........................23 ........107 .....14 6..09 Financial market sophistication........01 3.........................98 ....08 4..........■ Extent of staff training .......................................................................107 .112 .......97 ....06 4............■ University-industry collaboration in R&D ....01 2.............................................18 ............................................................................................■ Regulation of securities exchanges ..................■ Tariff barriers* ...........................127 ..........128 ...43 .......131 .........04 6..........1: Country/Economy Profiles Argentina The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 71 .....................................................71 ..............................................■ Quality of management schools .05 11.130 ................02 11.......................■ 10.11 6..52 ........120 .....................■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......05 1..06 6.........07 6...94 ....120 ........97 ..................20 .........■ Prevalence of foreign ownership ...............■ Soundness of banks ..............................................................■ Life expectancy*.......■ Telephone lines* ...................■ Burden of government regulation.■ National savings rate*...........■ Government debt*..................................................■ Quality of air transport infrastructure....................................................■ Legal rights index*...........................................04 4......07 4......■ Quality of roads.109 .......................■ Degree of customer orientation ...........04 8.........................107 ..........................71 .......................01 5.............................■ 9th pillar: Technological readiness 10th pillar: Market size 10......05 Government surplus/deficit* ....................02 Foreign market size index*.............................................. 2..................................................126 .....120 ..........88 ..........57 .................07 1..07 5.■ Nature of competitive advantage ...■ Value chain breadth............................................................................08 11..................02 12.........02 6...........................................02 1.....01 12.................................................■ Local supplier quality .............124 .............■ Laws relating to ICT..........63 ..........■ Prevalence of trade barriers.........53 .05 6................................74 .....■ Business impact of tuberculosis....................102 .........95 .....07 11................■ Control of international distribution ......■ Quality of port infrastructure............................03 1.09 4........■ Reliability of police services......16 1...■ Favoritism in decisions of government officials ............07 2............■ Brain drain ..........84 ........................04 7.........■ Business costs of terrorism....■ Firing costs* ..............■ Intellectual property protection........21 .07 8.............................................118 ...02 8..............128 ..............83 ......107 ..........................10 4..........................■ Quality of electricity supply ..75 .......07 Capacity for innovation .......................01 Domestic market size index* .....■ Infant mortality*.....■ No.............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.....................■ Interest rate spread* .06 11...........................09 1...................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6....01 6..............81 ..................78 ........15 Intensity of local competition .......■ Tuberculosis incidence*...........03 6..............................................112 ............................................................................................■ Restriction on capital flows ..................130 .........53 ...06 2.......08 1...■ Local availability of research and training services .117 ...............................48 .05 4.........■ Wastefulness of government spending...........121 ...............06 7.............................................................85 ..........................................................■ Quality of railroad infrastructure .............................09 Cooperation in labor-employer relations ................

................................... 2008 .97 ...97 ...........................8 Crime and theft ...........8 4th pillar: Health and primary education ...............81 ............2.................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ................4.......47 ..3.....................3................................................53 .........3 Government instability/coups ....3...2.............9 10th pillar: Market size....................7 GCI 2007–2008 (out of 131).............................0 Inefficient government bureaucracy...2.....................................................5.3...........3 12th pillar: Innovation......4...0..0...............3....................109 .....96 ............7 Financial market sophistication Goods market efficiency Labor market efficiency Armenia Efficiency-driven economies The most problematic factors for doing business Corruption............................................3 Inadequate supply of infrastructure ........6 Inflation ............03 12.........9 GDP per capita (US$)............5 2nd pillar: Infrastructure................................. The bars in the figure show the responses weighted according to their rankings..000 3....................................0 GDP (US$ billions)...............000 Armenia Europe and Central Asia 9.......3...........................8 Factor driven Basic requirements..1: Country/Economy Profiles Armenia Key indicators GDP (PPP int'l $) per capita.... 2008.........3.......2 Access to financing ......................7 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...........................3..........................................................97 ......2 Poor work ethic in national labor force ..........................360............. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.............................................5 6th pillar: Goods market efficiency..........15....................116 ......................2 Restrictive labor regulations ...........3................5...........3............................................112 ............3 Inadequately educated workforce..000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.....................112 ......8............5 Poor public health ....................................17......2............... 1980–2008 Population (millions)...............2..............................................81 ...............................6......3.......................................9 Tax rates ................................................................0.....................3.... 2008 ..............................6..................108 ......6 Tax regulations .......................................93 ..........3.......95 ........6 8th pillar: Financial market sophistication......................0 72 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....................1....7 Foreign currency regulations.3.......2............................12.............8 9th pillar: Technological readiness.......14........................0 11th pillar: Business sophistication....................11.....................................97 .............3.........................000 6............105 ..................99 ......7 7th pillar: Labor market efficiency ..3 Policy instability.................... 2008.........................7 Transition 1–2 1 GCI 2008–2009 (out of 134).......5 5th pillar: Higher education and training ......4.........5 GDP (PPP) as share (%) of world total...2 3rd pillar: Macroeconomic stability.......................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors........................................1 1st pillar: Institutions ....

...36 .....04 7.■ 2.......................11 6..................36 ..............■ Flexibility of wage determination...................■ Female participation in labor force*.......106 .123 .............04 2...■ Primary enrollment* ..■ Protection of minority shareholders’ interests .............................1 ...............................................97 .............06 2..................85 .................■ Judicial independence .....■ Wastefulness of government spending.05 8.■ Strength of investor protection*.....................82 ... 2........07 Capacity for innovation ............................................................................12 1..■ Value chain breadth.............19 ..............................05 4.............................................66 ....05 6...■ Broadband Internet subscribers*...........■ 10.....................■ 12.............09 Financial market sophistication.....03 9..................................................■ Telephone lines* .■ Extent of staff training ...............................01 9..11 1.......03 1......103 ....01 6................66 .......02 3..............112 ..105 .......................07 4.....78 ..........41 ....■ Control of international distribution ...............05 5..........................104 ...........125 ................03 11....111 .....64 ..81 ..............■ Education expenditure* .......................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.........................08 7.....................................04 6..............69 .....■ Business impact of tuberculosis..■ 4....■ National savings rate*.....■ Quality of the educational system ....74 ............■ Business impact of rules on FDI ..........................................................65 .......14 6..■ Infant mortality*.......91 ..................................■ Transparency of government policymaking .......................■ No..............114 .................■ Quality of roads..........57 ..............................................92 .09 Local supplier quantity .....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3......■ Availability of scientists and engineers ..■ Business costs of crime and violence ........................■ University-industry collaboration in R&D ...........................................04 5......■ Tuberculosis incidence*...........48 ...........101 .....06 5.......1 ........08 8......................06 11.89 .................■ Firm-level technology absorption.......■ Legal rights index*...........107 ..........11 Business impact of malaria.......................■ Rigidity of employment*...26 ..............01 Domestic market size index* ......................■ Degree of customer orientation .05 9.................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...122 ..........08 4...................■ Interest rate spread* ...........07 1.82 ........................04 11..............................115 ......................69 .............................113 .....................................09 Cooperation in labor-employer relations .......04 1.....................05 7..03 6...03 7..........■ Government debt*.............112 ......■ Prevalence of trade barriers..............13 1...................................58 .............119 ........■ Buyer sophistication ...115 ..........................07 2....03 3...........04 9..........................118 ....................98 .........■ 11th pillar: Business sophistication 11......................103 ......................■ Quality of air transport infrastructure...06 4...................■ Total tax rate* .............................................................................02 8......■ Firing costs* .......................■ 10th pillar: Market size 10................................................................................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...66 ............■ Quality of management schools ....................................................■ Extent of marketing ...75 ........15 Intensity of local competition ....86 ...........................23 .............■ Tariff barriers* ......03 12....10 1..............16 1......123 ...09 4....■ Public trust of politicians...................03 8.......................................79 ............07 11.........................................................................■ Organized crime..........■ Quality of math and science education ..........112 ....................................03 4..........................................................08 11.............■ 12th pillar: Innovation * Hard data Note: For further details and explanation........■ Quality of port infrastructure ..............................■ Time required to start a business* .................■ 8.....03 2..117 ................01 11.....................81 ......■ Internet users* ...........■ Utility patents*..........................................124 .................09 6.......08 Availability of latest technologies.■ Ethical behavior of firms .........................................1: Country/Economy Profiles Armenia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 73 ..108 ............114 .. of procedures required to start a business* ...............................■ Company spending on R&D .04 4.....■ Reliability of police services................................................07 9..........08 Secondary enrollment* .01 2.02 5.........13 6...........■ Willingness to delegate authority ..06 7.............................................................................52 ..........01 4......................62 .............................07 7...........................■ Personal computers* ...........................................................................73 ...............■ Efficacy of corporate boards ...........................83 ................................................53 .............................65 .....................05 2.......................■ Inflation* .............88 ............................■ Life expectancy*............................................................06 12.............■ Intellectual property protection........■ Regulation of securities exchanges .......■ State of cluster development .02 11.....05 11..........09 1.........71 ..........................19 .....■ Quality of primary education......■ Extent and effect of taxation ...........................................■ Burden of customs procedures ................34 .05 1............129 .....■ Efficiency of legal framework in settling disputes......■ Favoritism in decisions of government officials ..................■ Tertiary enrollment* .....02 7...........02 12......115 .................01 1......■ 7th pillar: Labor market efficiency 7...................01 5.....99 ...............................12 6.......................■ Internet access in schools ......................■ Prevalence of foreign ownership .........124 ............19 Property rights .............................■ Mobile telephone subscriptions*.■ Effectiveness of anti-monopoly policy .....92 .............■ Local availability of research and training services ......22 .86 ...............................................02 2.................93 .........02 6................14 1..36 ........104 .....■ Laws relating to ICT.....06 8.........................61 ........................................104 ...................■ Diversion of public funds ..........................08 Quality of overall infrastructure...........15 .01 12..01 3..........75 .......10 4....04 12.....................04 8.100 ...................................128 ........................107 ........................08 6............■ Business impact of HIV/AIDS ..........................46 ....131 ..■ Business costs of terrorism.........■ Reliance on professional management ..........................■ Burden of government regulation...........■ Nature of competitive advantage ................................125 ..........82 .....132 ......06 9...........................■ Quality of railroad infrastructure .....75 ..02 Foreign market size index*....■ Production process sophistication .............■ Quality of scientific research institutions...109 ......■ Local supplier quality .............119 ...................111 ..........95 ...■ Hiring and firing practices ...................■ Strength of auditing and reporting standards ....■ Agricultural policy costs ...■ FDI and technology transfer ....................................01 7...........................105 ...■ 9th pillar: Technological readiness 9...■ Quality of electricity supply ..........■ Malaria incidence* ......................122 ..■ Financing through local equity market.........07 6....79 .........05 12................52 ....................125 ................02 1.......................06 6..........................................................98 ...17 1...........120 ...26 ................■ Venture capital availability ........................■ Available seat kilometers* .....■ Efficiency of legal framework in challenging regs .................................■ Ease of access to loans .....18 1..............■ Soundness of banks .......■ Extent of market dominance ...02 4.....................■ Restriction on capital flows ...................05 Government surplus/deficit* ........................................01 8.....03 5..........................................117 .............................................................15 1...........54 ..07 8..........115 ....................■ Brain drain .................72 ...........................04 3............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...................02 9........■ HIV prevalence*.....................................129 ............45 ....................■ Pay and productivity................07 5.........06 1...08 1....10 6.■ Gov’t procurement of advanced tech products ..................................................................118 .....

............................010..1: Country/Economy Profiles Australia Key indicators GDP (PPP int'l $) per capita.5............................000 10..................2 Poor public health ................................0 Government instability/coups ...................11.............................................2 GCI 2007–2008 (out of 131)......14............................2 7th pillar: Labor market efficiency .................6 11th pillar: Business sophistication.............6...................4 Financial market sophistication Goods market efficiency Labor market efficiency Australia Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations .......15 .0..............5............20 ..4..................5 Crime and theft ..............4 GDP (PPP) as share (%) of world total...............................................................7 Poor work ethic in national labor force .....................5...............................15...5............. 1980–2008 Population (millions).8........................2 8th pillar: Financial market sophistication............................5.....................5 Inadequately educated workforce....4 ......0 GDP (US$ billions)..................5......000 Australia OECD 30....47...5.......1 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .8 Access to financing .............. 2008 ..................................0 Inflation ................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...5..6 4th pillar: Health and primary education ..........1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....400..........................5....................................14 .......19 ..................18 ........................................1............................ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...2 Factor driven Basic requirements.1...5 9th pillar: Technological readiness..............4....................16 40.....2 74 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers. The bars in the figure show the responses weighted according to their rankings.............................................................................0 Tax rates ..............12 ...........................000 20...........................................18 ...........4 10th pillar: Market size....6..........................................25 ....................5.............3 6th pillar: Goods market efficiency...9 Foreign currency regulations.....................0........2 3rd pillar: Macroeconomic stability....2....................8 Tax regulations ............7 Inadequate supply of infrastructure ..........................................2 Inefficient government bureaucracy..4............3 5th pillar: Higher education and training ...................11.................14 .................19 .........6 2nd pillar: Infrastructure........................20 ....................26 ..............................0....7 GDP per capita (US$)........................................10....10.....2.............9 ....... 2008....... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5........16 .....................................9 .................................................. 2008 ..................4 Policy instability.............................1..........21 .........................................................9 .............21........ 2008..4......8 12th pillar: Innovation...............5.............5..........................2.....2 Transition 1–2 1 GCI 2008–2009 (out of 134).............6 1st pillar: Institutions ..........................2 Corruption..5......................5..........

..........■ Favoritism in decisions of government officials ...............■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..................■ Interest rate spread* ......06 12.22 ............................................................. of procedures required to start a business* .....................................................................■ Firing costs* ......■ Prevalence of foreign ownership ...■ Life expectancy*.................................................■ Local supplier quality .......................................................................10 6.............................34 .........37 .............■ Quality of railroad infrastructure .......■ Judicial independence .........................................................09 Cooperation in labor-employer relations .■ Protection of minority shareholders’ interests .............................................■ Personal computers* ................■ Strength of investor protection*....................01 1.............................06 7...05 7.....................13 1......18 ......07 6.........17 1...........■ 7th pillar: Labor market efficiency 7......■ HIV prevalence*................n/a Broadband Internet subscribers*............................1 .......■ Quality of math and science education .....07 1.....................15 Intensity of local competition ..............62 .......................01 3.....■ 4........03 3.■ Wastefulness of government spending...28 ..............■ Burden of government regulation.............03 2..................■ Ease of access to loans ....■ Extent and effect of taxation ..33 ................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............03 6....................■ Tuberculosis incidence*....24 .02 Foreign market size index*......12 .......78 ............10 ...13 .20 .....................03 7..............01 4............■ Total tax rate* .................................38 .......................02 1.........■ Diversion of public funds ............... 2..44 ...The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...09 6...13 ..............17 ...06 2..........................1 ...■ Agricultural policy costs .04 12..■ Intellectual property protection.......■ Education expenditure* .■ Venture capital availability ...........13 ..........01 11.................■ Extent of market dominance ........26 ..................08 Secondary enrollment* ...........................55 .........14 1.................■ 11th pillar: Business sophistication 11..■ Organized crime...............................09 4......................................■ Prevalence of trade barriers..............................05 Government surplus/deficit* .......17 ..........7 .......■ 2......■ Primary enrollment* .....6 ...............11 Business impact of malaria.......................03 8..04 9..■ Flexibility of wage determination................................16 1...........02 8....■ 12th pillar: Innovation * Hard data Note: For further details and explanation......................................14 ........■ Strength of auditing and reporting standards ..............42 ............................................................................50 ...........■ Firm-level technology absorption.......................................................■ Reliability of police services......14 6......................12 ............07 11.■ FDI and technology transfer ...■ Laws relating to ICT..........................................................................15 ...............■ Quality of roads......■ No.....................................................29 ..38 ......24 .......20 ..05 5.......1: Country/Economy Profiles Australia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 75 .............................................................■ Tertiary enrollment* ...09 Financial market sophistication.......................■ Restriction on capital flows .............01 8....................08 Availability of latest technologies...08 1..■ Business costs of crime and violence ...........................32 .........................02 3.........................5 ............■ National savings rate*.....................................18 ....■ Pay and productivity......................16 ......8 .10 4...........................41 ............07 4.29 ..07 9.......................................37 ........13 ........04 1..................06 11....................................■ Internet access in schools ..........................................................■ Value chain breadth............................■ Quality of scientific research institutions.......................01 12..37 ..■ Efficiency of legal framework in challenging regs ..05 11....................07 8........26 .......42 .....................30 ...................■ Rigidity of employment*.......21 ........■ Efficacy of corporate boards ...................■ Extent of marketing .............................................■ Transparency of government policymaking ......■ Regulation of securities exchanges .........■ Utility patents*................................10 .................54 ................12 6..04 3.............15 1..............05 9................17 .........17 ..................■ Public trust of politicians.....................22 ............................................................■ Infant mortality*....■ Availability of scientists and engineers ......01 6...........■ Mobile telephone subscriptions*.............................7 ...........06 4...............■ Business impact of tuberculosis........05 4..........7 .........................................................................■ Tariff barriers* .........01 Domestic market size index* ..■ Available seat kilometers* ........................■ Business impact of HIV/AIDS .................84 .....25 ............■ 10.......21 ..11 .....................................................10 1.■ Buyer sophistication ...............66 ...........................................................02 9.....■ Female participation in labor force*...05 1...................42 .......3 ...............■ Burden of customs procedures ..................................08 7........................18 .........34 ..........47 ..................................16 ..........06 9........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..............................................■ Effectiveness of anti-monopoly policy ..............■ Production process sophistication ......03 12..10 ......■ Willingness to delegate authority ....................1 .........■ Gov’t procurement of advanced tech products ...............■ Local availability of research and training services ..........66 ............03 9....25 .............12 1............................05 8...........................................28 ...5 ..........................■ State of cluster development .........27 ..........4 .....■ Legal rights index*...03 11..04 7..07 7.05 12............................30 ..............................................................03 4.................■ Soundness of banks .........12 ......08 6....08 Quality of overall infrastructure.■ Time required to start a business* ..5 ......................................................................................■ 8.......................................■ 9...2 ......................■ Control of international distribution ...................96 ....05 6..............07 Capacity for innovation ......................■ Quality of air transport infrastructure........01 7..6 .....................■ Brain drain .....38 ..................02 7...06 5......15 .......11 ......02 11..12 .........................................07 5..................19 Property rights ............................................................23 ...........................7 ....02 2.....................................................08 8..............04 2.....................03 5..11 6........11 1......21 ..■ Inflation* ...........................08 4.■ Extent of staff training ...........■ Reliance on professional management ....................02 5......■ Business costs of terrorism.....................■ Quality of the educational system ...............................02 6......■ Quality of primary education.....■ Internet users* ...............18 ................................■ Malaria incidence* .............................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5......07 2...56 ...10 .................48 ....04 4......04 6..........................................................09 1........■ Financing through local equity market.......06 6....................90 .......05 2...................................02 4.......42 ...............■ 9th pillar: Technological readiness 10th pillar: Market size 10...■ Hiring and firing practices ................................13 ......■ Quality of electricity supply ..................04 11........34 ..................................3 ........■ Business impact of rules on FDI ................................14 ....43 ...18 1.......89 .■ Quality of port infrastructure.........................................06 8........01 2..........................01 5...16 ..04 8...............15 ...............■ Nature of competitive advantage ........02 12.....08 11...3 ...............10 .................01 9...■ Company spending on R&D .09 Local supplier quantity .........■ Telephone lines* ....................■ 12.......................................................................04 5......................■ Efficiency of legal framework in settling disputes.............14 .......................■ Degree of customer orientation ................26 ..........06 1...47 ......................................■ Government debt*.......................................................................■ Quality of management schools .......■ University-industry collaboration in R&D ..13 6..........03 1...........■ Ethical behavior of firms .....................17 .................................3 ............12 .................

...13 .......7....4.......4........2............2 6th pillar: Goods market efficiency...............6 2nd pillar: Infrastructure.....6.......1 76 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...............14 ..........................5................................8 Access to financing ...................2................................................5...............................0.......9 .......5.19 ........4............................................34 .........19 ...............15 .............................3 Government instability/coups ........................5....0....8 Corruption.......................................8 Poor work ethic in national labor force .........13..........................37 ..000 Austria OECD 30............. 2008... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ........4 GDP (PPP) as share (%) of world total............19.................................................................................5.....................................................7 1st pillar: Institutions ...9 Inadequate supply of infrastructure ............................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.........................5.5..000 10.....2 GCI 2007–2008 (out of 131).......................8..............5...18 .....................0 5th pillar: Higher education and training ..............5.................... 2008............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..11...........5... 2008 ...........2 Inflation ....2.........7 ......3.................11 ...5.................................................................14 ...........................098. 1980–2008 Population (millions)............................................................................48 40...........1: Country/Economy Profiles Austria Key indicators GDP (PPP int'l $) per capita...11 ......................................6 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....................50.....6 Foreign currency regulations............5 Financial market sophistication Goods market efficiency Labor market efficiency Austria Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations .................................8 9th pillar: Technological readiness......................0 11th pillar: Business sophistication.........................1....................3 GDP per capita (US$)......4..........................5 Inadequately educated workforce.......4 GDP (US$ billions)................................12...1 Crime and theft .........................................................5.................. 2008 ..27 ...................3 Inefficient government bureaucracy.....9 3rd pillar: Macroeconomic stability...1..2 Factor driven Basic requirements.......3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......6 Policy instability...................................... The bars in the figure show the responses weighted according to their rankings...............................7.....................5 12th pillar: Innovation.......5..0......................17 .....000 20...............7 Tax regulations ..................415.19 ............................17 ........................4 10th pillar: Market size...................................2 4th pillar: Health and primary education ........................................1 Transition 1–2 1 GCI 2008–2009 (out of 134).....................5 Poor public health ...................7 8th pillar: Financial market sophistication..........................6 Tax rates ....................................33 ............0...14...1 7th pillar: Labor market efficiency ........

...39 ..07 7.....■ Extent of staff training ......................30 ..06 12.......133 ...................17 ......................■ Reliability of police services..................18 1.........01 Domestic market size index* ............04 2..................■ Wastefulness of government spending...■ Telephone lines* .■ Pay and productivity............39 ..........1 ................■ Tuberculosis incidence*.................................44 .......22 ..■ Willingness to delegate authority ..........................02 8.....36 ....02 2....................25 ...........23 ..................................06 4...............................■ National savings rate*...■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........................................78 ..05 12..........06 6..1 ............................15 Intensity of local competition ....24 .......................04 1..........9 ....■ Education expenditure* ............................................................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation.....................■ Business costs of terrorism...............■ Primary enrollment* .08 Availability of latest technologies..............■ Burden of customs procedures ..................................07 9.................................■ No...............12 1.19 ...08 8............04 12........■ 4........24 ..................■ Prevalence of trade barriers..........19 Property rights ...............................................................06 8...........■ Extent of market dominance .............100 .............9 ..............03 11.■ 10....05 6.08 4...........................03 7......................12 ...............6 ............48 .......................46 ...................05 11....................................................31 ...............................................04 5......................13 6.......■ Laws relating to ICT................................13 ..................................■ Tertiary enrollment* ..........07 6.04 11..■ HIV prevalence*................■ Inflation* ....................................11 ........■ Prevalence of foreign ownership ..........................69 .......■ Ethical behavior of firms .....................01 6.....34 .............................................■ Time required to start a business* ..........................................................07 4.07 2...................19 ..........................24 .■ Regulation of securities exchanges ...13 1.....................................03 2.....6 ..............................■ Protection of minority shareholders’ interests .......4 ........15 ........■ Quality of port infrastructure...........04 7...................................................................03 1...............................■ Malaria incidence* ..07 5....................03 12.........................■ Diversion of public funds .10 ............04 6................................03 3...................■ Firm-level technology absorption.....................13 .....■ Total tax rate* ..............................■ Quality of roads..■ Intellectual property protection...................38 ... 2...40 .■ Interest rate spread* ....41 .................................................................04 3........................................■ Quality of electricity supply ............■ Female participation in labor force*.31 .................................16 1....■ Tariff barriers* .........16 .................■ Legal rights index*.......................................................17 1.............................■ Quality of railroad infrastructure .................02 7......................■ Local availability of research and training services .............................24 ....19 ..............1 ............................04 4...........21 ........01 2.41 ......................04 8...............■ 3rd pillar: Macroeconomic stability 3.................02 9.............07 1.......................................................■ Hiring and firing practices ...........■ Efficacy of corporate boards ...............15 ..100 ............20 .....................2 ...................................11 6....................22 ....................09 Financial market sophistication..................■ Organized crime............■ Flexibility of wage determination..................................................■ Quality of management schools .............................................02 5.............06 2.....................■ Business costs of crime and violence ...02 1....05 Government surplus/deficit* ..............11 ...........................................................■ Transparency of government policymaking ..............25 ........■ Financing through local equity market...................................... of procedures required to start a business* ........54 ................................08 7.................................................■ Quality of math and science education .......09 6........01 1....09 1.................................17 ...............55 ....................................■ Efficiency of legal framework in settling disputes............■ Restriction on capital flows ....■ Strength of auditing and reporting standards ............■ University-industry collaboration in R&D ..05 4.......01 5......10 4.18 .....................................■ Extent and effect of taxation ..............6 ........61 .........6 ..■ Internet access in schools ....31 .....02 11.....................................................13 ..........■ Government debt*..6 .................................................................7 ..14 1..............15 .....24 ...........18 .......................................08 6............45 .........■ 7th pillar: Labor market efficiency 7..■ Available seat kilometers* ..............5 ............11 1...■ Mobile telephone subscriptions*................................11 Business impact of malaria..................09 Cooperation in labor-employer relations .■ Business impact of tuberculosis..6 .......................................01 9..............■ Infant mortality*............■ Availability of scientists and engineers .....................08 Secondary enrollment* ..................■ Quality of the educational system ...................................02 6................1 ............24 .■ Ease of access to loans ..30 ....................02 4.......■ FDI and technology transfer ................................................................5 ..03 6............05 8.....12 ........01 11......26 .06 1.............■ Internet users* ..........................15 ....................28 ...........................67 ...............05 5..................■ Strength of investor protection*.........13 ...09 4.01 7..08 11.03 4..03 8....................■ Broadband Internet subscribers*..■ Degree of customer orientation .....07 Capacity for innovation .............37 ........12 ......................8 .....01 12......................■ Quality of primary education...............■ Company spending on R&D ..14 6................06 11............34 ......................05 7..28 ...■ Reliance on professional management ........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.........................7 ......10 1.....■ Buyer sophistication ..............................10 6............■ Judicial independence .....06 5..15 1........07 8.......................■ Personal computers* ...........■ Business impact of rules on FDI ..........■ Business impact of HIV/AIDS ....09 Local supplier quantity ..04 9......................■ Agricultural policy costs ..................■ Rigidity of employment*.........07 11...■ Nature of competitive advantage ....■ Firing costs* .18 .....28 .....................■ Quality of scientific research institutions..........■ 11th pillar: Business sophistication 11..........01 4........................................................18 ..99 .................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..05 2.................5 ......................08 Quality of overall infrastructure......08 1............05 9....12 ............01 3.............■ Local supplier quality ....10 ....................................................12 ..■ Quality of air transport infrastructure..............■ Value chain breadth.............10 ......................13 .....■ Extent of marketing ....06 9........................................■ Public trust of politicians.....■ Control of international distribution ..........■ Effectiveness of anti-monopoly policy .......12 .■ 9......■ 12..............................05 1.....■ Production process sophistication ..........27 ................60 .76 .....■ Brain drain ....3 ........03 5.53 .........02 Foreign market size index*...............................................5 ....................03 9.................■ 8..................12 6.............................111 ............■ State of cluster development ...........■ Utility patents*..................................06 7.......15 ..............................................5 .........17 .............1: Country/Economy Profiles Austria The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 77 ........................01 8.........24 ..........................■ Efficiency of legal framework in challenging regs ................................................................................................................4 ..........■ 9th pillar: Technological readiness 10th pillar: Market size 10................■ Soundness of banks ...........................■ Favoritism in decisions of government officials .02 12..........■ Burden of government regulation....■ Venture capital availability ..........................................................■ Life expectancy*..■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..................■ Gov’t procurement of advanced tech products .......................14 ............11 .......■ 2nd pillar: Infrastructure 2......................................02 3..

..........19.................................46....4 GDP (PPP) as share (%) of world total...........................71 .........72 ........................................................3......2..................4 GDP per capita (US$).........4 10th pillar: Market size.............5 Financial market sophistication Goods market efficiency Labor market efficiency Azerbaijan Economies in transition from 1 to 2 The most problematic factors for doing business Corruption.... The bars in the figure show the responses weighted according to their rankings.............................5....56 ...5.........4...........................11 12...........1: Country/Economy Profiles Azerbaijan Key indicators GDP (PPP int'l $) per capita.....8 Tax regulations .....................................................000 Azerbaijan Europe and Central Asia 9........................0........................................50 ................0 5th pillar: Higher education and training .......................7 11th pillar: Business sophistication....... 1980–2008 Population (millions)....................................................96 ....................................0 78 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers........ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.....8....71 ............4..............................51 ...........42 ...........3.........1 Policy instability.......................4.................9...................1 Poor work ethic in national labor force .............27 ..........................1 2nd pillar: Infrastructure....5.. 2008 ........1 8th pillar: Financial market sophistication.............4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....4..........................................5 Inefficient government bureaucracy................3....5 Inflation .......0.2.5 GDP (US$ billions).......................3......................4...................................13 ..............8 Restrictive labor regulations ..................4...000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...5.6 Inadequately educated workforce.... 2008 ........2 7th pillar: Labor market efficiency .................9.................................................................3........ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..3..............3 Access to financing ...................2 9th pillar: Technological readiness........8..........................7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......4..58 .................2 Tax rates ..................55 ... 2008................66 ............1 Factor driven Basic requirements..................74 ...........78 ......................9 6th pillar: Goods market efficiency.............66 ...........2........................................................2 Inadequate supply of infrastructure .......0 Poor public health .....3....................0 Foreign currency regulations.............................8.1 GCI 2007–2008 (out of 131).............3 4th pillar: Health and primary education .......................................69 .349.............................................................0 3rd pillar: Macroeconomic stability............1 Government instability/coups .........................6 1st pillar: Institutions ....................000 3................10....................................75 ..................... 2008..................3 Transition 1–2 1 GCI 2008–2009 (out of 134)..............1...........................8....4.......000 6....................1 Crime and theft .....4......................................9 12th pillar: Innovation.7.....1...8......................................................................................

........................49 ........51 ........54 ......................06 4......................................01 3.70 ...................................01 7..........■ Business costs of terrorism....08 11...........02 2......63 ........42 ......08 7.................■ Quality of electricity supply ........70 ......56 ..........................04 5......................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..........................................................................51 ..61 ........■ Public trust of politicians.................................................................08 Availability of latest technologies.............■ Strength of auditing and reporting standards .......02 3.......................09 1..■ Pay and productivity................................07 9.07 4........07 5..........................................42 .......................................09 Local supplier quantity .............■ Business impact of rules on FDI ....■ Telephone lines* ................................42 ........91 ...64 ...........................09 Cooperation in labor-employer relations ........02 8.....80 ..............33 ................................03 8................................■ Diversion of public funds ....■ Wastefulness of government spending...........74 ..86 ...........08 1.■ Organized crime.....01 1...................109 ..39 ...03 11....13 1....................■ Quality of primary education..........31 .........48 .........■ Restriction on capital flows ..................................................116 ........................03 6.31 ..............16 ...■ 4.......................................................■ HIV prevalence*.......77 .02 5......................05 12..........................................................................■ Gov’t procurement of advanced tech products ......................89 ...56 ..........117 .................................■ Control of international distribution .........■ Primary enrollment* .......................72 ..............................04 8....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.............13 6......03 12.......05 11..................06 1..................................■ Tuberculosis incidence*..................................02 1.■ Quality of math and science education ...95 ..........■ Burden of government regulation.05 Government surplus/deficit* ........79 ............55 ...............■ Availability of scientists and engineers ..................................05 4...............92 ....■ Extent of staff training ..........................................63 ................................03 1..........■ Flexibility of wage determination................................■ Time required to start a business* .................47 .....■ 11th pillar: Business sophistication 11.............................................■ Tariff barriers* ..............................................04 2.......................................■ Total tax rate* .............53 ..............■ Venture capital availability ..........09 Financial market sophistication..■ 9th pillar: Technological readiness 10th pillar: Market size 10.............09 4............01 9........64 .........................■ Quality of scientific research institutions.............■ 10.................■ Quality of roads.......58 ...........18 1...61 ..............11 Business impact of malaria.................................................■ Protection of minority shareholders’ interests ......■ Strength of investor protection*.......01 11.........■ Personal computers* ....42 ...............72 .......................................04 4.............................................■ Nature of competitive advantage ...........02 4.....113 ..................■ Quality of railroad infrastructure ...................................05 5......55 ...............................■ Legal rights index*.........................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...26 ..................................08 Quality of overall infrastructure........................1 ...........................06 9......................................83 ..........106 .....................................■ Broadband Internet subscribers*.....................01 6.■ 8.........................................■ Intellectual property protection......■ Business impact of tuberculosis......■ Willingness to delegate authority .......................................45 ..................................63 ..■ 12th pillar: Innovation * Hard data Note: For further details and explanation.........................62 ..............36 ..07 Capacity for innovation .........96 ........................■ Utility patents*...............80 ..........■ Efficacy of corporate boards .................15 1.............80 ....................05 7.......................................15 Intensity of local competition ....10 1..............05 9...........■ Burden of customs procedures ..............■ Interest rate spread* ............17 ......................105 .....18 .....................6 ...........................■ State of cluster development ....................................................................58 .06 8......14 1...04 7...■ Reliability of police services..................................................82 .........■ Efficiency of legal framework in settling disputes..36 ..........................■ Agricultural policy costs ........■ Financing through local equity market............................70 .04 3...........................................86 ...................29 ..06 11....■ Favoritism in decisions of government officials ...■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...41 ..............65 .................54 ...............85 .....■ Tertiary enrollment* ...........42 ........11 6............................51 .........02 6........02 12................04 12.......................44 ..........■ Hiring and firing practices ........102 .................■ Extent of marketing .....■ Company spending on R&D ..............03 5...............................................07 6..■ Mobile telephone subscriptions*.....■ Quality of the educational system .16 1.............................■ Internet access in schools ....................07 8..12 1................06 5.......................■ Soundness of banks .......11 1........01 8.....■ Rigidity of employment*.............37 ...............14 ..........................02 7...................................................■ Education expenditure* .......■ Effectiveness of anti-monopoly policy .....■ Degree of customer orientation ....■ Prevalence of trade barriers...............■ 12......................................03 7.........08 8................................1: Country/Economy Profiles Azerbaijan The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 79 ..........■ Female participation in labor force*...............89 .............05 8.■ Ease of access to loans ..........■ FDI and technology transfer .. 2......07 11.......■ Buyer sophistication ..30 .■ Life expectancy*..............................08 4.......................12 .................06 6.....................■ Business impact of HIV/AIDS .............32 ....■ Government debt*........■ Prevalence of foreign ownership .............■ Brain drain .................................■ Extent and effect of taxation .■ Quality of air transport infrastructure.............17 1.........................................05 2...02 9..02 11.65 ..............11 ....................................18 ............03 9....04 1.......64 ...10 6............................■ National savings rate*......■ 9..........................93 ................97 ....................63 .............06 2........01 5...................................................08 6..■ Value chain breadth.....111 ........................■ Business costs of crime and violence ..............................03 2..■ 2.......■ University-industry collaboration in R&D ....01 2........................60 ...........■ Internet users* ........................■ Available seat kilometers* ...................................05 1.■ Extent of market dominance .....09 6...■ Inflation* ............................■ Reliance on professional management .....................59 ...■ Regulation of securities exchanges ...................■ Local supplier quality ...................... of procedures required to start a business* .................................■ Local availability of research and training services ...............81 ...............04 6.............03 3..........01 4...■ No.■ Transparency of government policymaking .03 4..75 .........4 .........................06 12.....19 Property rights .................85 .................01 Domestic market size index* ............................................................89 .07 2...86 .......................■ Efficiency of legal framework in challenging regs ......76 .........84 .....90 ............................................■ Firm-level technology absorption.........................■ Judicial independence ...........................50 ...................................................123 ...06 7.......■ Firing costs* .......95 ........■ Ethical behavior of firms ............12 6...■ 7th pillar: Labor market efficiency 7..10 4......44 .....04 11............................■ Laws relating to ICT.....■ Malaria incidence* .....04 9...............................14 6...05 6.......■ Production process sophistication ....60 ... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.................75 ......62 .38 .........................■ Quality of port infrastructure......■ Quality of management schools ...............08 Secondary enrollment* .....................................■ Infant mortality*..........97 ............35 ...........02 Foreign market size index*......07 1.112 ......88 .......................................................................................07 7....01 12...

..........22.......35 ...........................30 ..........7 11th pillar: Business sophistication.......3...........5.60 .............................. The bars in the figure show the responses weighted according to their rankings.............................37 ..3 Access to financing ..............................43 .............................................11...........................22 .........................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.2..............6 10th pillar: Market size..............5 Transition 1–2 1 GCI 2008–2009 (out of 134)............8 Poor public health ....0...................... 2008 ...................5............27 ..........8 Inflation ......................4.......3.....................4........0 4th pillar: Health and primary education ....4.............................44 ................3 Government instability/coups ....................4.......6.5............................0............1 Foreign currency regulations........2 12th pillar: Innovation....................................6 GCI 2007–2008 (out of 131)..4...........................000 10....................................8 80 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.....0 7th pillar: Labor market efficiency .................2 GDP per capita (US$).................4 1st pillar: Institutions .........................4...................4......................................................................................................3.......................9......................4 6th pillar: Goods market efficiency.....0.........60 .......0......14..........................30 ..... 2008..97 ...........................6....................4....... 1980–2008 Population (millions)...............247...........0 Poor work ethic in national labor force ........7 Inadequately educated workforce.......................................48 ................11...................................1: Country/Economy Profiles Bahrain Key indicators GDP (PPP int'l $) per capita.. 2008..8 Tax regulations .........................3........0 Crime and theft .............4 5th pillar: Higher education and training ................15.......8 9th pillar: Technological readiness....8 GDP (PPP) as share (%) of world total.....0 Policy instability.......0...................0.............................. 2008 .....04 40.................................................................37 .................................................61 ..........4 Factor driven Basic requirements......................................5..........................7 8th pillar: Financial market sophistication................................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ......................0...........27........35 ...22 ...............................................................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.....3 Tax rates .......................2..........................................000 20.2 Financial market sophistication Goods market efficiency Labor market efficiency Bahrain Economies in transition from 2 to 3 The most problematic factors for doing business Restrictive labor regulations ....0 3rd pillar: Macroeconomic stability............. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..........8 GDP (US$ billions)....................000 Bahrain Middle East and North Africa 30..38 ..........................4........................9 2nd pillar: Infrastructure...9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............9 Inefficient government bureaucracy..5 ....21....3 Inadequate supply of infrastructure ..............4..........0.6 Corruption.............

..............01 Domestic market size index* ..................21 ....................................■ Wastefulness of government spending...........................10 4....02 11...........■ Education expenditure* .......................................51 ...04 2...18 1.......12 ....................■ Production process sophistication ...........................26 ..............07 4..........................03 5..................................03 8...........................■ State of cluster development .....01 7......■ Local supplier quality .....82 .......01 4..................07 2..........................................................................................................■ Extent of marketing ......62 ...39 ...........................■ Strength of auditing and reporting standards .....................08 11.........................12 6........■ Internet users* ..........................51 ..........................................■ Personal computers* .25 ..............................■ Burden of government regulation.17 ...............................................................15 Intensity of local competition .......................■ Infant mortality*..............................................43 .........02 7..........■ Quality of primary education.....01 11.........................................................................58 ....................09 4....28 ..........5 ................................11 ......■ Mobile telephone subscriptions*....................................................06 11....... 2....07 5..........04 11..118 .................................................05 8................■ Quality of the educational system .............23 .........■ Buyer sophistication ....28 .......................■ Burden of customs procedures ................03 3...................■ Life expectancy*...................................................07 6.....■ 9th pillar: Technological readiness 10th pillar: Market size 10.................................................40 ...87 .............................05 4...45 ..1: Country/Economy Profiles Bahrain The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 81 .61 ..30 ...03 7..............31 ........12 .......14 .................15 ..............■ FDI and technology transfer .■ Soundness of banks .85 ...........102 .......02 12........08 Secondary enrollment* .■ Flexibility of wage determination.28 ......■ Local availability of research and training services ...............19 Property rights .......■ 9...■ Financing through local equity market.....83 .........■ Efficiency of legal framework in challenging regs ........■ Nature of competitive advantage ...............■ Degree of customer orientation ..■ Business impact of HIV/AIDS ..............■ Ease of access to loans ..........05 1........03 2..................52 ..■ 2..30 .64 .18 ............■ Female participation in labor force*...11 1........................07 Capacity for innovation ....................05 11...........01 9................■ 8..................................................11 6.....08 Quality of overall infrastructure......................................................■ Hiring and firing practices .............04 8....■ 12......32 .■ Intellectual property protection..............41 ............■ Quality of railroad infrastructure..............................09 Cooperation in labor-employer relations .....70 ...................112 ...........12 ................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5............17 .07 1.......33 ........................................................50 ........18 .................................■ Business costs of crime and violence ...■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.....................................■ Strength of investor protection*.■ Laws relating to ICT.....74 .......■ Business costs of terrorism.......06 5..........................................■ Transparency of government policymaking ................03 11...02 2.......36 ..02 4.....■ Business impact of tuberculosis....................................■ Reliability of police services................................................................■ HIV prevalence*.....................■ Quality of scientific research institutions....................................................■ Prevalence of trade barriers.................................■ Legal rights index*..■ Firm-level technology absorption...............■ Pay and productivity.........19 .■ Diversion of public funds .■ Brain drain .......04 5.................42 .........................................................................................................07 8........35 ...................................................................26 .08 Availability of latest technologies...02 8...48 .46 ...................08 7....................06 8.......................■ Public trust of politicians...................04 9.....06 6.........................59 ..................................■ Tertiary enrollment* .28 ...................83 ...67 .........02 6...■ Extent of market dominance .06 1...........09 6........05 Government surplus/deficit* .........02 5...............................................................36 ...............14 1................103 ..................................................................■ Gov’t procurement of advanced tech products ...................31 .....■ Venture capital availability .............10 1..................15 .......36 ...■ Efficacy of corporate boards ..........................■ 12th pillar: Innovation * Hard data Note: For further details and explanation..................................................... of procedures required to start a business* ................................04 1.......7 .....05 9.05 6.........1 . please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..........................■ 7th pillar: Labor market efficiency 7............■ Broadband Internet subscribers*.................79 .............................06 7......23 ............06 4.....................................12 1.............15 1...■ Organized crime.17 1...........■ Effectiveness of anti-monopoly policy ..............08 6.1 ........................................................08 1.............................■ Quality of math and science education ............................................■ Protection of minority shareholders’ interests .................................10 6......................11 Business impact of malaria........■ Time required to start a business* ....................08 4........■ Reliance on professional management ..............31 .....................■ Government debt*...05 2...........■ Value chain breadth...06 2.............................................................■ Extent and effect of taxation ............■ Telephone lines* ...............n/a Quality of port infrastructure............60 ...........■ Extent of staff training .....■ Regulation of securities exchanges ......05 5..........................■ Agricultural policy costs ............54 .............04 7.................................................01 12........■ National savings rate*..............03 9.............................■ Control of international distribution ...03 1............06 9.............16 1........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........■ Inflation* ......04 6.09 1.■ Quality of roads.........09 Local supplier quantity .....................................71 ...49 ...........................01 2............04 3........22 .........108 ...................17 ......................■ Willingness to delegate authority ....45 ................■ Total tax rate* ......■ Prevalence of foreign ownership .55 .....07 7...............■ No......■ Primary enrollment* ...4 ........................................................■ Quality of management schools ............................23 .....................................40 ....................32 .............■ Firing costs* ........90 .....33 ........01 8.........................■ 10....123 ......■ 11th pillar: Business sophistication 11..............02 3....26 .■ 4...................01 6.■ Ethical behavior of firms ............................02 1.....................................................■ University-industry collaboration in R&D ....62 .............85 ..............................20 .07 11.......................45 ....................04 4..■ Availability of scientists and engineers ...........................................101 .07 9....06 12...............28 ...............................■ Tariff barriers* ................................■ Judicial independence ..........■ Interest rate spread* .........03 12................■ Business impact of rules on FDI .13 1....24 ...............08 8........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1..........................16 ..05 12..■ Favoritism in decisions of government officials ....68 .................................■ Restriction on capital flows ..................02 Foreign market size index*....■ Malaria incidence* ..4 ............................83 .................1 .............01 1.........55 .........■ Rigidity of employment*...........05 7.....36 ......8 .......■ Utility patents*...........18 ...■ Company spending on R&D ..45 ..............34 .....6 ................02 9...........................................09 Financial market sophistication............................................................01 3............03 4........................................................04 12........................■ Tuberculosis incidence*...25 ..■ Internet access in schools .14 6.......13 6........46 ..........................42 .32 .....................■ Efficiency of legal framework in settling disputes..............■ Available seat kilometers* .03 6..01 5.......................................................■ Quality of electricity supply ..10 .....44 ............■ Quality of air transport infrastructure....................................

......161....71 ...2 Tax regulations .............114 ..............129 ..............48 ..............................................3.............................4......122 ......................5............20.........2 9th pillar: Technological readiness..............................1..........9 GDP per capita (US$)................................................6 6th pillar: Goods market efficiency....................................5 Poor public health .............0 Inefficient government bureaucracy..................9.....................2.......2.................000 Bangladesh South Asia 2....84 .. 2008 ....4 4th pillar: Health and primary education ......0 11th pillar: Business sophistication......................6 Crime and theft .......81...........4.....................................................................3 Corruption...............6 Transition 1–2 1 GCI 2008–2009 (out of 134)..............................000 1...4......100 ................506........................4 3rd pillar: Macroeconomic stability.......................... 1980–2008 Population (millions)................................3........3.....000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.................................105 ...4 Inflation ......................3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..............3.................................1 2nd pillar: Infrastructure....................4.....................3...3.............. 2008 ........................4 Access to financing .....7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......................102 ....5 GCI 2007–2008 (out of 131)....0.......................3....8 7th pillar: Labor market efficiency ...............111 ...5 82 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....5 Financial market sophistication Goods market efficiency Labor market efficiency Bangladesh Factor-driven economies The most problematic factors for doing business Inadequate supply of infrastructure ..1.... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..33 3..........................................................................106 ...4....................................3 GDP (US$ billions)........................122 ..........................3.............5 Factor driven Basic requirements............. The bars in the figure show the responses weighted according to their rankings.107 ......................................................1 GDP (PPP) as share (%) of world total................................9 8th pillar: Financial market sophistication.0.............4 10th pillar: Market size....2.......15.................7 Government instability/coups ... 2008.5 5th pillar: Higher education and training .......................1....3.............2...........2....1: Country/Economy Profiles Bangladesh Key indicators GDP (PPP int'l $) per capita................................. 2008........................10...................................6 Foreign currency regulations....5 12th pillar: Innovation.....................................................................16...4.3...........6 1st pillar: Institutions ..97 ........................................................2..............4 Tax rates .............3..............................................2.....8 Policy instability..........112 ............................................125 ...................126 .......................3 Inadequately educated workforce............. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.........108 ..................8 Poor work ethic in national labor force .............................1 Restrictive labor regulations ........

.................■ Education expenditure* ...........................17 1......113 .■ Local availability of research and training services ..■ Production process sophistication ....115 ...08 6.....63 .................■ Quality of math and science education ..........60 ........................116 ...■ Value chain breadth.....03 6.......01 2.........................................04 4....33 .■ Extent of market dominance ......14 1..........95 ......90 .....68 ............................11 6......115 .........................................01 7.....05 7.97 .........05 6........■ No.65 ...........■ Reliability of police services.107 ...............1 .............................12 6................................................02 12..........117 .100 .......115 ....■ Mobile telephone subscriptions*....■ National savings rate*...............119 ..............117 .................■ Organized crime.............■ Malaria incidence* .......................................10 1...■ Personal computers* ...........■ Utility patents*..07 2..................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.........■ Intellectual property protection.......................................■ Strength of investor protection*...............................■ Extent of marketing .07 4..■ Flexibility of wage determination..■ 8...................■ Quality of management schools ....................108 ...........103 .......................101 ............03 12......................106 .■ Tertiary enrollment* ...........104 ............118 ...........01 8....■ Burden of government regulation.....110 ..........118 .......05 1..■ Ease of access to loans ....07 9......109 .........■ Business impact of rules on FDI ............110 .................................................................128 ......■ Availability of scientists and engineers ...........................■ Life expectancy*...124 .......128 ......................................125 ................■ Restriction on capital flows ......■ Total tax rate* ..............■ Protection of minority shareholders’ interests ..............................................................................................................02 Foreign market size index*..92 ..........................................■ Firm-level technology absorption..........02 6.............................................■ Brain drain ...74 ........■ Quality of primary education................13 1...130 ...........94 ................95 .■ Quality of roads............................1: Country/Economy Profiles Bangladesh The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 83 .................................................................■ Financing through local equity market.....................................................02 11....................■ Hiring and firing practices .......08 7................105 .........................................................06 7.........■ Gov’t procurement of advanced tech products ...................................................■ Extent of staff training ..........■ Prevalence of trade barriers..................■ Quality of scientific research institutions............................................................... 2.........■ Laws relating to ICT.....■ Efficiency of legal framework in settling disputes......09 Financial market sophistication..............................05 2.....02 7...........................119 ...............................01 4........................................■ Efficiency of legal framework in challenging regs .............................................................02 4.....■ Telephone lines* .................89 ...................15 Intensity of local competition ..............69 .■ Firing costs* ...60 .........07 7....82 ....06 4.113 .......116 .................06 5...........108 .109 ...................09 6.......06 6.112 .............06 1.....................................■ 11th pillar: Business sophistication 11..■ Agricultural policy costs ...■ 10............■ Quality of the educational system ..........................................■ Company spending on R&D ............................128 ....25 ...■ Efficacy of corporate boards .....................03 7............03 4....................................123 ...........................06 9..18 .......................■ Quality of air transport infrastructure.119 ............■ Business impact of tuberculosis...............09 1...............08 Secondary enrollment* ..46 ..............................75 ......91 ..............................................01 12..................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1......118 ..122 ............42 ....■ Quality of railroad infrastructure .....■ HIV prevalence*......13 6.........18 ............................................92 ..11 1................93 ....■ Infant mortality*....................125 .........125 ..............................98 .............................................................................■ Inflation* ...118 .02 1..............02 2...................02 8......04 11................81 ....112 ...■ Pay and productivity.98 .......85 ...........................................................112 ...........................................04 6..........■ Buyer sophistication ................03 8........................■ Quality of port infrastructure ..............■ Business costs of terrorism..05 9.................................68 ..131 .................110 ...■ Primary enrollment* ....■ 7th pillar: Labor market efficiency 7.................................07 Capacity for innovation ..08 4...................06 11....04 12......■ Tuberculosis incidence*.........................................■ Control of international distribution ............................■ Rigidity of employment*..............■ Broadband Internet subscribers*.........10 6...................46 ................05 4..........■ Venture capital availability ...........■ Judicial independence .......08 1.05 5..117 ...............■ Nature of competitive advantage .132 ........05 8..125 .........■ 4...........04 5..04 8..........................................■ 9th pillar: Technological readiness 9.88 ............................................................120 ...04 1....127 .........09 Local supplier quantity ......................................................................02 9.....16 1...................■ Prevalence of foreign ownership .................130 ..........■ Government debt*...05 11.......................................01 5...........■ Soundness of banks .....07 6..................108 .............■ Willingness to delegate authority ..■ Female participation in labor force*..........................................■ Interest rate spread* ........119 ....61 ...............■ Transparency of government policymaking ................■ Effectiveness of anti-monopoly policy ...01 1.■ Degree of customer orientation ...........................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.■ Burden of customs procedures ........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..........07 5..............................................................05 12.........108 .....................100 .................05 Government surplus/deficit* ......................104 ...................................06 12.............■ 2....08 Availability of latest technologies...................................09 4.....■ Extent and effect of taxation ..............................................................01 Domestic market size index* ............................■ Available seat kilometers* ........................■ Wastefulness of government spending........■ Favoritism in decisions of government officials ..........................................■ Business impact of HIV/AIDS ....................................03 5...■ 12th pillar: Innovation * Hard data Note: For further details and explanation......07 1.........47 ......01 6.......128 .........■ 12..............122 ...■ Time required to start a business* ........................55 ...................01 11....■ Internet users* ..03 2........................08 Quality of overall infrastructure..........■ 10th pillar: Market size 10......................................................................................122 ...........11 Business impact of malaria.....................................................18 1......................14 6.128 .....03 11.........................■ University-industry collaboration in R&D ................... of procedures required to start a business* .........................................................■ Quality of electricity supply ..........06 8.........■ Legal rights index*.......■ Internet access in schools .................■ Public trust of politicians....01 9...118 ...............09 Cooperation in labor-employer relations ....■ Regulation of securities exchanges .....07 11...............■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5............97 .................02 5...10 4........................................114 ......19 Property rights ...............................■ State of cluster development .90 ..■ FDI and technology transfer ..........................■ Diversion of public funds ....63 ....■ Strength of auditing and reporting standards ...123 ....12 1............04 9.................98 ...............123 ....■ Local supplier quality ......08 11.................04 7...08 8...................15 1....04 3....■ Tariff barriers* ...03 9...............■ Ethical behavior of firms ...........................66 .......................131 .....................65 ..07 8...............................■ Business costs of crime and violence ...02 3...06 2..............03 3.......104 ......04 2......................01 3.........................................................................■ Reliance on professional management ...99 ...132 ....................03 1.101 ......

.................4 3rd pillar: Macroeconomic stability....2 1st pillar: Institutions .........................................................................9 GDP (PPP) as share (%) of world total.....13...... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .................. The bars in the figure show the responses weighted according to their rankings.....8 Foreign currency regulations...............................5...4 10th pillar: Market size..................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.......72 ............................20 .....9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .5 Inadequately educated workforce............8 Tax rates ..0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......4 Transition 1–2 1 GCI 2008–2009 (out of 134).31 ....................47 .................. 2008 ...............3....0................01 20........2......................3.................................1.......0..126 ...........9 6th pillar: Goods market efficiency.......................49 .....115 ............................................................47 .........................8 Inefficient government bureaucracy...........................................1 5th pillar: Higher education and training ................................. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5................ 2008..............000 5........3 Poor public health ......... 2008 ....44 .....7 9th pillar: Technological readiness...............................................7.....9 ..................4...............................................0....................21 ...............................................13............4.........14...26 ..355............3.......48 .........3 GDP (US$ billions).....................................8...........3..............8 11th pillar: Business sophistication.........................................................000 Barbados Latin America and Caribbean 15...6 Corruption...........................7 Access to financing ........8 4th pillar: Health and primary education ..4.3...................38 ..7 GDP per capita (US$)............6 8th pillar: Financial market sophistication.....................................1: Country/Economy Profiles Barbados Key indicators GDP (PPP int'l $) per capita..................3.7............3 Inadequate supply of infrastructure ...6.50 .... 1980–2008 Population (millions)..3.........................4..........................5..................................9 Restrictive labor regulations .41 .........1 Crime and theft .....................2 2nd pillar: Infrastructure...................3 84 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....0..........................4.3.............................................4...........4............4......10.........................3 Factor driven Basic requirements..............................................................................................................4 Financial market sophistication Goods market efficiency Labor market efficiency Barbados Economies in transition from 2 to 3 The most problematic factors for doing business Poor work ethic in national labor force .........................................................................4.......60 ..............4 GCI 2007–2008 (out of 131)............................................5 Government instability/coups .. 2008........7 Inflation ............1 7th pillar: Labor market efficiency ........................................17...............2 12th pillar: Innovation...5.....4........000 10.......................................................58 ...............0..4 Policy instability...4......7 Tax regulations ....

...............61 .............63 ....................................38 ..■ Life expectancy*......37 ......■ Company spending on R&D ..........■ Total tax rate*.....14 1...................■ Quality of roads................................................n/a Hiring and firing practices .........■ Interest rate spread* ..96 ........1: Country/Economy Profiles Barbados The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 85 ...............09 4..05 8................■ Production process sophistication ........06 1..69 ..04 4..01 6............15 Intensity of local competition .............................55 ..........................................66 ..............................04 9.....10 4....................42 .......................................................................03 12......................60 ......13 .............77 ............■ Flexibility of wage determination...........03 1......................11 6....................................67 .................09 6...................................05 4...............07 7............47 ..............■ Internet users*........04 11....10 6.......19 ............45 ..................06 9.........■ Strength of auditing and reporting standards ............70 ......................24 ..........................08 8.............03 6..................35 ....................■ Judicial independence .............01 9......................■ State of cluster development ................■ Wastefulness of government spending........................06 4...05 5........07 1..............101 .....■ Reliance on professional management ......................■ Burden of customs procedures ...........94 ...............■ Quality of the educational system ...................................................1 ........................................................103 ......................10 1.........................01 4.......................03 7...........■ Tariff barriers* ........07 9.......■ Education expenditure* ........■ Nature of competitive advantage .....................28 .........................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...................■ Business impact of tuberculosis............07 5................02 12...........04 6...........................■ Public trust of politicians..................■ Malaria incidence* ......■ Value chain breadth.....46 .................■ Business impact of HIV/AIDS .................16 ..■ Ease of access to loans ..............41 .....07 2................................16 1.26 ...............■ Regulation of securities exchanges .............................................77 .....................18 ..................16 .......................................................01 Domestic market size index* .......................■ Mobile telephone subscriptions*......n/a Agricultural policy costs .........125 ...............■ Quality of scientific research institutions...........03 2.................22 ................19 ...07 6............02 11.................................■ Prevalence of trade barriers..38 .....37 ..02 2.■ Utility patents*...........17 ............35 .......................................................................37 .............34 ..................66 ..........01 5..................................................................................■ Restriction on capital flows ................................12 6.............................■ Venture capital availability ......06 8...............................27 ........62 ........27 ............................................01 8...............................n/a 9...........................06 2........................................................................18 .....■ 10.........53 ...09 Cooperation in labor-employer relations .............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...............08 4.........1 ..........02 4..08 Secondary enrollment* ................03 3.....n/a Soundness of banks ...32 ...■ Efficacy of corporate boards ........14 6...................................04 3..............................................■ Broadband Internet subscribers*..............■ Firing costs*..05 11.....63 ..........................■ Inflation* ....87 .................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation....87 ...................................................04 12.........................................................18 1........................................■ Extent of marketing ..............■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.............08 Availability of latest technologies....................................02 7...................25 .......■ Business costs of crime and violence ...■ Willingness to delegate authority ..08 11..................■ Efficiency of legal framework in settling disputes...............37 .................13 6........................................................42 ..........■ Quality of management schools .............................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6................................................07 11..................■ Rigidity of employment*............08 1........■ Business costs of terrorism........57 ............67 ..............■ 2.n/a No..94 ..................38 .........01 3.........17 ..............■ Control of international distribution ..............01 11..07 Capacity for innovation ...................121 .........■ Local availability of research and training services .....08 6.03 11................................■ 9th pillar: Technological readiness 10th pillar: Market size 10..................06 7................08 7.......29 ....................n/a Quality of port infrastructure.................................38 ...03 4...■ Quality of air transport infrastructure....■ 8.06 5.......■ Intellectual property protection................03 5..................................................02 Foreign market size index*.............■ 4..27 ....05 Government surplus/deficit* ......05 7....■ Strength of investor protection* .................................46 ............■ Quality of railroad infrastructure...............68 ...........07 8.....28 ...............................■ 7th pillar: Labor market efficiency 7........................................................................■ Business impact of rules on FDI ..04 8...........20 .........35 ..54 .................................................................................................01 2............. 2........................12 ...............90 ..................................01 7.........................................04 1...........................■ Laws relating to ICT.............06 12................09 1...................................................■ Female participation in labor force*........................■ Protection of minority shareholders’ interests ..........16 ...........16 .............................■ Burden of government regulation......... of procedures required to start a business* ..........13 1.....24 .....20 ......................05 2................................■ Organized crime.....■ Firm-level technology absorption................................04 7.99 ........................9 .............................................123 .12 1.............05 1..17 1.32 .........■ Available seat kilometers* ....05 9..............■ Internet access in schools .■ 12..............■ National savings rate*...............■ Quality of electricity supply ...........102 .16 ..........127 ..1 ..........■ Legal rights index*..■ Buyer sophistication .......64 .21 ...■ 11th pillar: Business sophistication 11..........................................................12 ....51 .............05 12............03 9...15 1....20 ............................n/a Personal computers* ....54 ..■ Extent of staff training ......■ Diversion of public funds ......................■ HIV prevalence*...........01 12.......09 Local supplier quantity .....................................................................04 5..........04 2..06 6.......■ Tertiary enrollment* ...............■ Degree of customer orientation ........■ Gov’t procurement of advanced tech products ........■ Transparency of government policymaking ............................■ University-industry collaboration in R&D ...67 .112 ..■ Quality of primary education....■ Infant mortality*........02 9.................■ Tuberculosis incidence*..........n/a Time required to start a business* ....24 .......................................................02 8........................21 ..........................................................■ Extent of market dominance ......■ Extent and effect of taxation ...................17 ...11 1...............■ Financing through local equity market.■ Brain drain .........73 ........114 .11 Business impact of malaria...02 5.....................06 11......07 4..■ Reliability of police services..............................■ Government debt*......■ Local supplier quality .......................05 6....................................42 .■ Quality of math and science education .....■ Prevalence of foreign ownership .■ FDI and technology transfer ....02 1.■ Telephone lines* .......5 ............................................76 .■ Primary enrollment* . please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....................................n/a Pay and productivity..........19 Property rights ..............02 3..................................104 ....01 1...................80 .■ Efficiency of legal framework in challenging regs ........09 Financial market sophistication.....■ Favoritism in decisions of government officials ................■ Effectiveness of anti-monopoly policy ......................■ Availability of scientists and engineers ...03 8.............■ Ethical behavior of firms ......02 6................08 Quality of overall infrastructure........

0............ 1980–2008 Population (millions)...... 2008 ........... The bars in the figure show the responses weighted according to their rankings.56 ....13 ...........57 40............................................................................18 .................0 5th pillar: Higher education and training ....5...............................107......8 Inadequately educated workforce......................................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..........3 10th pillar: Market size...............18..1 Tax regulations .........19 .........0 11th pillar: Business sophistication.............................................6 Inefficient government bureaucracy......................1.......................16......6 Financial market sophistication Goods market efficiency Labor market efficiency Belgium Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations ..4...5..............................11....6............................000 20.....................................................................4......................................0 Poor public health ......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.25 ..........................3.............44 .........................................................................................24 ....7.5.....................3 ..........000 Belgium OECD 30.............................2 Government instability/coups ....................4..............18 ..........1 Factor driven Basic requirements.4 Poor work ethic in national labor force ....20 ...............................5...................................................1........... 2008..................................2 Foreign currency regulations.................0.0.................................... 2008.5 Crime and theft ............................5.......6 Tax rates .................5...........................6 3rd pillar: Macroeconomic stability...........................................................................................14 ..........16.........8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....5..........................18 .4 GDP per capita (US$)...........................5.............1 GCI 2007–2008 (out of 131)................2 Inadequate supply of infrastructure .....4............20 ......0.............47....0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......25 .....................000 10..........506.........4..........5........8 ............................1: Country/Economy Profiles Belgium Key indicators GDP (PPP int'l $) per capita...........8 GDP (PPP) as share (%) of world total.................................. 2008 ...4 1st pillar: Institutions ..............4 86 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.......5...............................5...................7 8th pillar: Financial market sophistication...............9............................9 9th pillar: Technological readiness.................................1 Inflation .........................5....................2.........1 7th pillar: Labor market efficiency .....6..2 Access to financing .........11 ................13 .2...5 6th pillar: Goods market efficiency...5................8 Policy instability........................................2 Corruption.....5 GDP (US$ billions)...7 4th pillar: Health and primary education ....................22 ........................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ............10........................3 12th pillar: Innovation.................1 Transition 1–2 1 GCI 2008–2009 (out of 134).............0 2nd pillar: Infrastructure...

...........................................................8 .............................................■ Inflation* ...■ Company spending on R&D ....01 Domestic market size index* .................................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.6 ....................01 3.....05 2.■ Telephone lines* ............................21 .........■ National savings rate*..........■ Nature of competitive advantage .■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...05 7...................■ Tuberculosis incidence*.................■ Internet users* ......................21 ..............19 .......26 ......05 11..■ HIV prevalence*............35 ..........■ Ease of access to loans ..1 ......14 .........45 .......................05 9......■ Degree of customer orientation ..........01 5.....................■ Education expenditure* ..........20 ..■ Quality of the educational system ..............................16 .■ Protection of minority shareholders’ interests ...19 Property rights .........■ Broadband Internet subscribers*.08 7.9 ...■ 2.......................................12 ..................■ Utility patents*...........................48 ..........■ Quality of port infrastructure.32 ...07 1............06 11...10 6....25 ..................14 ...■ Business impact of HIV/AIDS .......................................................24 .................06 8..............................05 4...............15 ....................................30 ..■ Total tax rate* .12 6.....■ Favoritism in decisions of government officials ..........115 ..........................■ Judicial independence ..15 1...........87 ...........................22 ....................19 .....06 7............■ 9th pillar: Technological readiness 10th pillar: Market size 10...12 .......■ Quality of math and science education .........13 1.................26 .................................................................27 ............................................................08 4............03 7..■ Interest rate spread* ........................................................■ Malaria incidence* ........07 Capacity for innovation .............■ Tariff barriers* .................■ 9.......■ Quality of air transport infrastructure................■ Control of international distribution ..............................................40 ......1: Country/Economy Profiles Belgium The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 87 ..............................13 6..06 12..................21 .......22 .12 1.....05 Government surplus/deficit* ....................50 .............05 5..................................17 .....07 6..............................24 ......08 6...................01 9.........■ Wastefulness of government spending..................................■ Business impact of tuberculosis....................■ Available seat kilometers* ...10 ............■ Burden of customs procedures ..07 4.............................................11 ......08 8......03 6.................■ Firing costs* .................73 ..........7 .......................■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......23 ....................................02 9...................20 ..63 .........14 1...................43 ...............................................04 9......................■ 10.■ Efficiency of legal framework in challenging regs ......■ Mobile telephone subscriptions*............04 8..............01 11...........■ Intellectual property protection.......................14 .....................■ Efficacy of corporate boards ..■ Business costs of crime and violence .38 ..............07 5.................................................................09 Cooperation in labor-employer relations ......64 ........03 11.......19 ..................................■ Gov’t procurement of advanced tech products .27 ...........................................02 6.......................28 .....................20 ...................................27 ........................10 ...03 2.7 ................■ Extent and effect of taxation .............■ University-industry collaboration in R&D ........5 ......11 .■ Efficiency of legal framework in settling disputes........■ Burden of government regulation........03 1.............................................................05 8.........03 4..............8 .........01 4.18 1................02 1.................27 .........04 4.■ Financing through local equity market...........11 1.................................................■ 12........04 1........13 ..........24 .....17 ..........................■ No..........■ 11th pillar: Business sophistication 11.......02 11..................7 .........................01 7....................06 2.............10 ......................................■ Quality of roads..........■ Buyer sophistication .............................................■ Local supplier quality .......................06 5......................24 ................36 ......................................09 Financial market sophistication...■ Infant mortality*........ of procedures required to start a business* ......07 9.........................15 .....07 7.................15 Intensity of local competition ..........................................27 ........13 .............■ 7th pillar: Labor market efficiency 7...............02 Foreign market size index*............11 Business impact of malaria..29 ....■ Availability of scientists and engineers ........03 9.......................■ Reliability of police services.......105 ..................01 2........................■ Extent of marketing ...33 ................................02 12..................01 12........................18 .........04 12............■ Local availability of research and training services .......................■ Business impact of rules on FDI ....25 ......................................................16 1..■ Laws relating to ICT......................06 1......54 ......36 ........................112 ....................01 1.........119 .............■ Primary enrollment* ............08 1...........15 ...............................................................■ Regulation of securities exchanges ....14 ........■ Diversion of public funds ...■ Firm-level technology absorption...■ Organized crime....09 1......13 ...................■ 4..10 4....■ Production process sophistication .....................■ Ethical behavior of firms ....■ Extent of staff training ..........■ State of cluster development .........07 2.........05 1.......■ Life expectancy*.................................08 Quality of overall infrastructure....................................22 .....24 ....................24 .............................■ Quality of railroad infrastructure ....54 ........................■ Business costs of terrorism....23 ....................10 1......■ Quality of primary education................................08 Availability of latest technologies................06 6............05 6.■ Female participation in labor force*.........................12 ..............95 .................................47 .....5 .............02 8.......................16 ........................04 5..2 ............................................................................■ Restriction on capital flows ...................123 ........................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...26 ........4 ......08 11.15 .08 Secondary enrollment* .■ Strength of auditing and reporting standards ......■ Strength of investor protection*..............................■ Quality of management schools .......4 ..............................14 6........■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...04 3.■ Hiring and firing practices ..02 7..........................................................■ Internet access in schools ...■ Public trust of politicians..................................■ Brain drain .....................................■ Transparency of government policymaking .........35 ......................09 4..............■ Agricultural policy costs ....................................................9 ....■ Value chain breadth............36 ..........14 ...02 4.....■ Prevalence of foreign ownership .........................02 3..........................15 .................................................................15 ..........................................02 2.........■ Quality of scientific research institutions........50 .................................■ Willingness to delegate authority .........................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...........06 4.................09 6........24 ......................................■ Quality of electricity supply ..................1 ........................................■ Venture capital availability ............................■ Rigidity of employment*...07 8................05 12.........................................17 1...........04 2...............................■ Extent of market dominance .......................01 6.23 ........................03 8........11 6...........07 11....... 2...4 .....■ Government debt*........................04 6...................■ Time required to start a business* ...■ Pay and productivity................04 7................04 11....................■ Legal rights index*.....................■ Personal computers* .■ Flexibility of wage determination.........27 ..............■ Tertiary enrollment* ...130 ......■ Soundness of banks ....................03 3.....................................■ 8.......■ Effectiveness of anti-monopoly policy ................■ Prevalence of trade barriers...................03 12...■ FDI and technology transfer ..............01 8...........................03 5.....................16 .....19 ............................56 .........................................■ Reliance on professional management ..................06 9..........02 5....09 Local supplier quantity .....

..............................3 GDP (US$ billions)..................1..........................................87 ...8..9 Financial market sophistication Goods market efficiency Labor market efficiency Benin Factor-driven economies The most problematic factors for doing business Access to financing ................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..............3...2.....1 11th pillar: Business sophistication......3...............856................108 ........................ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.......... 2008 ........3..8 4th pillar: Health and primary education .....4................0 6th pillar: Goods market efficiency...3............................................115 ...........2....................111 .....54 ...3 Corruption....4 Poor public health ... 1980–2008 Population (millions).................................................................................117 ....................2 Poor work ethic in national labor force ........122 ............................17........1........8 1st pillar: Institutions ............20......................................0 Restrictive labor regulations ............000 500 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..........0....... The bars in the figure show the responses weighted according to their rankings................................................4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .5 Policy instability...103 .......6 10th pillar: Market size.......114 ..2.2......104 ......0....500 1.....6 GCI 2007–2008 (out of 131)...6 3rd pillar: Macroeconomic stability.........15.......................................2....................................0....3..3....4....3 Foreign currency regulations.6 Crime and theft ....................5 9th pillar: Technological readiness..................000 Benin Sub-Saharan Africa 1................2 Tax regulations .........5 Factor driven Basic requirements....................2....3....6 Transition 1–2 1 GCI 2008–2009 (out of 134)........................................................3........3..0 GDP (PPP) as share (%) of world total.........1: Country/Economy Profiles Benin Key indicators GDP (PPP int'l $) per capita.........4...99 ......................................................3.......................................................................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...3.........................................9 Inflation .............................. 2008 ....121 ................................................106 ............02 2.......................................108 .........9 GDP per capita (US$).79 .........3.............2 Inefficient government bureaucracy..........4 Government instability/coups ...............................6............ 2008..................................................................................................0 Inadequately educated workforce......5.........3....15................................89 ....................3 12th pillar: Innovation.............................103 ................3 5th pillar: Higher education and training ......................3.................8 7th pillar: Labor market efficiency .................................................................................9...........6 Tax rates .........7 2nd pillar: Infrastructure................................2 8th pillar: Financial market sophistication..........117 ................... 2008......................4 Inadequate supply of infrastructure .............................................2..........1 88 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers............

04 1...69 ......117 .............■ Intellectual property protection..■ Mobile telephone subscriptions*........100 .....................03 9..............10 4...........69 ...........113 ..............................................11 6.04 5......05 6...............................96 ..05 4.101 .................69 ............................................■ HIV prevalence*.......................................01 1............................................04 9.......................55 .............03 12....................117 ...■ Hiring and firing practices ......................105 ....................■ Pay and productivity.........05 12..... of procedures required to start a business* ..........30 .....■ Judicial independence .......14 6.■ Quality of math and science education ................79 .......................07 5....02 9.........................73 ..............................33 .........22 .......................................05 5.....................15 Intensity of local competition ........................................................17 1..■ Quality of railroad infrastructure .............■ 8..................96 .............■ State of cluster development ....05 7.....■ 4...........09 Financial market sophistication............68 .12 6.................................■ Burden of customs procedures .................118 ..■ Local supplier quality ....104 ...........................02 6..............■ Control of international distribution ....■ Tertiary enrollment* ...........■ Personal computers* .■ Degree of customer orientation ...01 9.■ Time required to start a business* ......■ Soundness of banks .................■ Buyer sophistication ..■ Ease of access to loans ......47 ....■ Value chain breadth....19 Property rights ......89 ..............................■ Quality of primary education........105 ............■ Gov’t procurement of advanced tech products ..08 Secondary enrollment* ...............................................................................84 .................................................................04 6......................................................90 ..66 ...■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.......116 ..................■ Business impact of HIV/AIDS ..07 2....................................98 ....07 7................■ Life expectancy*..................82 ...............05 Government surplus/deficit* .....................118 ....44 ...............................................125 ............88 ............■ Malaria incidence* ..................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...............................................................09 Local supplier quantity ....................................................■ Regulation of securities exchanges ....................■ Ethical behavior of firms ...........81 ..........■ Nature of competitive advantage ...............97 ................................14 .■ Efficacy of corporate boards ..........18 1.....................08 8................119 ...............................................................03 8....■ Tuberculosis incidence*.62 .08 6...........01 11........■ Available seat kilometers* ........■ Extent of market dominance ..68 .86 ................11 Business impact of malaria.........................................54 .......■ Firm-level technology absorption....62 ....................04 4...........■ 9th pillar: Technological readiness 9............................126 ..........■ Reliance on professional management .............................02 5..09 6....09 Cooperation in labor-employer relations .05 9.01 5.................................05 2...................................128 ........................■ Wastefulness of government spending..................................07 6..........115 ....77 ...........................................................................116 ........■ Education expenditure* .............................06 1.....................................■ Strength of auditing and reporting standards ............................................03 6...03 7......08 Availability of latest technologies.......................■ Rigidity of employment*...113 .....................................120 ......03 3....■ Business impact of tuberculosis....118 .........01 8................02 Foreign market size index*....93 ..............................................127 .........................08 1...................90 .......■ Infant mortality*.........................■ No......................04 8........■ Availability of scientists and engineers ..■ Business impact of rules on FDI ...............03 11................108 .......■ Quality of the educational system ....■ Broadband Internet subscribers*..■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.46 ..........................07 9..................................■ Production process sophistication .............06 7..........■ Internet access in schools ..........01 4........119 ....................................15 1........06 2..............11 1......................02 1..............04 11..................117 ...63 .........................■ Willingness to delegate authority .....04 2....01 3......06 5........................94 ................................................................■ Legal rights index*.......................56 ................................■ Efficiency of legal framework in challenging regs .....83 .........................05 8....................07 11.......120 ......112 .....................■ Prevalence of foreign ownership .......115 ...03 2.......86 .07 1.........■ Prevalence of trade barriers..117 .........91 ....110 .01 Domestic market size index* ............02 4........07 8..............115 ............................■ Primary enrollment* ..................71 ....................■ Female participation in labor force*................03 4............................................■ Transparency of government policymaking .............................■ Brain drain ..........■ Burden of government regulation.......06 9.......■ Public trust of politicians..■ 11th pillar: Business sophistication 11..................01 6....................■ Financing through local equity market..■ Organized crime................................05 11.107 ........■ Efficiency of legal framework in settling disputes............................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...........02 7..........................01 7..■ Internet users* .............06 11................■ 12.....116 .....06 4.........................................■ Business costs of crime and violence ......119 ..............08 7..............■ Protection of minority shareholders’ interests ...16 1.■ Quality of air transport infrastructure..........................05 1.......................104 .......■ Quality of electricity supply .....................................08 Quality of overall infrastructure.............10 1........98 ....114 ......■ University-industry collaboration in R&D ...........................■ Company spending on R&D ......13 1.......................■ Reliability of police services...........................44 .....■ Agricultural policy costs ..................■ Effectiveness of anti-monopoly policy ...01 12..■ 10...........................■ 10th pillar: Market size 10.........103 ...............■ Tariff barriers* .....................................................84 ...............■ Telephone lines* .................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.......■ 2............■ 7th pillar: Labor market efficiency 7...07 Capacity for innovation ................................................■ Quality of port infrastructure.102 ...................................................118 ........97 .........■ Extent of staff training .......■ Firing costs* ...............09 1...............123 ....01 2............06 6.........06 8...........................■ Extent and effect of taxation .....14 1.....02 11.......04 3....1: Country/Economy Profiles Benin The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 89 ..........86 ..110 ..........■ Restriction on capital flows ...........................04 12.........02 12............52 ...........98 ....107 .......82 ................07 4............■ Strength of investor protection*..88 ..........118 ..................................................................................................09 4...................■ Laws relating to ICT.................................n/a Government debt*..................08 4.98 ...............................................■ FDI and technology transfer .........105 .............111 .............................■ Local availability of research and training services .■ Utility patents*................52 ...............................77 .... 2.......79 .........■ Inflation* .......................06 12...................................■ Diversion of public funds ...........................105 ........12 1...................02 3......08 11.............■ Extent of marketing ...................................95 ..................■ Business costs of terrorism...............02 2.......■ National savings rate*......■ Total tax rate* ..83 ................66 ..................04 7..109 ....■ Interest rate spread*...........88 ...........121 ....73 ..................■ Quality of management schools ...........................13 6.10 6..46 ...............................■ Favoritism in decisions of government officials .......03 5.102 ......................................■ Quality of scientific research institutions...............114 ...............■ Quality of roads...............74 ..................03 1......................02 8.......■ 12th pillar: Innovation * Hard data Note: For further details and explanation..■ Flexibility of wage determination.....................................■ Venture capital availability ................................................

......................................................06 10..... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...........0 Inefficient government bureaucracy..................................60 ........2.................0 12th pillar: Innovation................1 90 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..............6 Factor driven Basic requirements........3.........................3.................7....132 ....................................................0 7th pillar: Labor market efficiency .......2 9th pillar: Technological readiness.............................131 ...........2 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......131 .........4 GCI 2007–2008 (out of 131).......000 4....2..0..........3..............2.......................17.....................................................................12.....................5.............3 Poor work ethic in national labor force ..7 GDP (US$ billions)..... 2008..0 Access to financing .........15..................000 6.5 6th pillar: Goods market efficiency...106 ..........................5...........2 Financial market sophistication Goods market efficiency Labor market efficiency Bolivia Factor-driven economies The most problematic factors for doing business Policy instability....2..1 5th pillar: Higher education and training ..................000 2.......... The bars in the figure show the responses weighted according to their rankings............... 2008 ....5 2nd pillar: Infrastructure................................94 .............87 ....................3................128 ...................................5..........................3..1: Country/Economy Profiles Bolivia Key indicators GDP (PPP int'l $) per capita.............3 Restrictive labor regulations ..................1 Tax rates .. 2008........................3...............................................128 ...132 ...3.......................5..............................................3..............................................93 ....3.........122 ...................................................1..................4........9 Inadequately educated workforce...105 .................................................7 1st pillar: Institutions ......18....1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...0..............6 Inadequate supply of infrastructure ...7 4th pillar: Health and primary education ......................3 Poor public health ......................................2............................3.....4 Transition 1–2 1 GCI 2008–2009 (out of 134)................3.....6 11th pillar: Business sophistication..5 3rd pillar: Macroeconomic stability.................................................................3...8 Inflation .0.........9...........................6 Government instability/coups ......133 ......120 .................................8 Corruption.5 Foreign currency regulations........................................... 1980–2008 Population (millions).................................3 Tax regulations ... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...........................................................................121 ..........................2........2.......................118 ......3 Crime and theft ..................3 10th pillar: Market size..4...............4 GDP per capita (US$)...000 Bolivia Latin America and Caribbean 8... 2008 .............................10.736.3.......2 8th pillar: Financial market sophistication..............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010....................5 GDP (PPP) as share (%) of world total..5.......131 ...................................................

...................■ Quality of electricity supply ............53 ....................14 6....123 .......................................■ Education expenditure* .............................................■ Quality of math and science education ...124 .....133 ........116 ..........108 ..■ 8....■ 12th pillar: Innovation * Hard data Note: For further details and explanation........................................................................................08 6....................................133 ...............■ Extent of marketing ....132 .......06 1..................■ Nature of competitive advantage .........................■ Degree of customer orientation ..............112 ........................11 6...........................130 ................................................■ Local supplier quality ........................■ Quality of the educational system .06 9..02 1.........112 ...................................81 ..132 ................■ Business costs of crime and violence ......................112 ..........17 1....09 Financial market sophistication..........07 8............07 2.............127 .....■ University-industry collaboration in R&D ..........12 1.03 5................129 .........101 ....................111 ..........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.....109 ...............................■ HIV prevalence*...■ Production process sophistication ............■ Prevalence of foreign ownership ...................................07 9....07 6.■ Organized crime....................123 ....01 Domestic market size index* ..............131 .........................................06 11.................■ Firm-level technology absorption................■ Ease of access to loans ........09 1...■ Judicial independence .........■ No...■ 9th pillar: Technological readiness 9.......126 ..128 .......■ Strength of auditing and reporting standards ...............89 ...............127 .................■ Efficiency of legal framework in challenging regs ...129 ..............................................15 1..127 ......131 ..................03 11.............01 5..............■ Quality of roads....................■ Legal rights index*............121 ..10 6...............................04 1........................................................24 ...............■ Available seat kilometers* ........................01 1...........................08 4.................■ Mobile telephone subscriptions*............... 2.......103 .............133 ................................■ Flexibility of wage determination......110 .......................13 6.................131 ....07 1..132 .....................■ Quality of air transport infrastructure................■ Effectiveness of anti-monopoly policy ..........................................................................■ Broadband Internet subscribers*.......09 Cooperation in labor-employer relations ........15 Intensity of local competition ..........■ Quality of scientific research institutions...06 6.............................................................112 .....................82 .02 6..............92 ..............1: Country/Economy Profiles Bolivia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 91 .................09 Local supplier quantity ...07 Capacity for innovation ...............................■ Female participation in labor force*...........■ Hiring and firing practices ..........................................100 ..........■ Willingness to delegate authority .................73 ........................■ Business impact of HIV/AIDS ....■ Buyer sophistication .02 12......04 5.........129 ................................93 .....90 .27 .........................01 2....■ Value chain breadth..■ 2...07 4................■ Intellectual property protection..........■ Firing costs* ...............117 ..02 2......98 .............133 .01 6...............05 2........................101 ...........................108 ..06 4.......08 Availability of latest technologies....■ Public trust of politicians.........................■ Wastefulness of government spending.....75 ....■ Diversion of public funds .....■ Total tax rate* ....■ Extent of staff training .......121 ............................................................■ Internet access in schools .........................01 7.................................09 6.....06 8..04 11.....93 ..■ Quality of railroad infrastructure .........02 3...................132 ...........05 6..■ Strength of investor protection*........■ Gov’t procurement of advanced tech products ..................................131 .02 7.....04 9.16 ......................................■ Company spending on R&D ..........95 .........................................................................126 ...85 .122 .....................................................■ State of cluster development .................................103 ..............01 8..............131 ................01 11.......■ Regulation of securities exchanges ...................08 1.06 2...■ Personal computers* .................121 ..03 6.....113 ...........................................................■ Time required to start a business* ..08 Secondary enrollment* ..............129 ..............................100 .....■ Availability of scientists and engineers ..■ Tariff barriers* ............■ Efficiency of legal framework in settling disputes.......■ Ethical behavior of firms .........................■ Primary enrollment* ..............................................................................03 7............................19 Property rights ..............05 4.104 .....................06 12...........................03 3.■ Transparency of government policymaking ..................................................................................■ Business impact of rules on FDI .......115 ...103 ...08 8..........■ Government debt*...............16 1..........................■ Reliability of police services.................................117 ....................■ Laws relating to ICT.............................03 4................04 4..............................111 .....08 7...■ Interest rate spread* ......................■ FDI and technology transfer ..■ 4............................................■ 12.■ Tuberculosis incidence*................■ Inflation* ......................05 11........07 7..................01 9....05 Government surplus/deficit* ......11 1.................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...............■ National savings rate*..........................03 2........04 12...117 ...............■ Soundness of banks ..............54 ......04 7...............06 7..............■ Financing through local equity market.....■ Utility patents*.....■ Prevalence of trade barriers..■ Quality of primary education........■ Extent of market dominance ..................■ 11th pillar: Business sophistication 11...........................................87 .......................■ Favoritism in decisions of government officials .....130 ......■ 10th pillar: Market size 10........90 ..■ Brain drain ...............................................07 11......05 12..........................................................18 1....117 ..........02 11..............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1................05 9.....58 ......130 ....................09 4......110 ...........131 .............................■ Extent and effect of taxation ...10 1.....................02 Foreign market size index*.......96 .....119 ....................12 6..................................................■ Venture capital availability .......................................■ Burden of government regulation..03 9......■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.........127 ..08 11........104 .................02 9.............................86 .....■ Local availability of research and training services .02 4............02 5..........................................122 ...............128 .......................132 .............02 8....112 .........................................■ Business costs of terrorism................102 ................................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..........125 .........102 ...120 .■ Quality of management schools ............■ Telephone lines* ........■ Rigidity of employment*..■ 7th pillar: Labor market efficiency 7........114 ...........89 ..13 1...........................03 12........05 1...■ Efficacy of corporate boards .............■ Restriction on capital flows .07 5....01 4........131 ........■ Reliance on professional management ...................■ Control of international distribution .........126 ........128 ..03 8.........................116 .......■ Life expectancy*.................................130 ......................■ Infant mortality*..............................04 6.......133 ...........69 ......................................04 2...............................■ 10............................................................................99 .....■ Quality of port infrastructure ............................03 1....................08 Quality of overall infrastructure............ of procedures required to start a business* ..129 ....■ Business impact of tuberculosis...04 8.■ Burden of customs procedures ..............■ Agricultural policy costs ....131 ..................■ Pay and productivity.......01 12................05 7..127 ....■ Protection of minority shareholders’ interests ............................■ Malaria incidence* .......14 1.................10 4..................129 ...97 ....06 5..............■ Tertiary enrollment* ...............................................05 5.........01 3....■ Internet users* ............................05 8.......125 .....124 .....11 Business impact of malaria..................................04 3..............................................

.....1...................................................6 Inadequately educated workforce.................107 .... 2008....104 ..8 11th pillar: Business sophistication..........0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.............................12. 2008 .................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ........3 12th pillar: Innovation.................3 Financial market sophistication Goods market efficiency Labor market efficiency Bosnia and Herzegovina Efficiency-driven economies The most problematic factors for doing business Government instability/coups ...............................................3 Foreign currency regulations..........7 Poor work ethic in national labor force ........000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...........1: Country/Economy Profiles Bosnia and Herzegovina Key indicators GDP (PPP int'l $) per capita..............5...........11...............18..................................3.......................................................3.......127 .....3.90 ............................................................4 GDP (PPP) as share (%) of world total.........................75 ......7 9th pillar: Technological readiness.100 ...............4 Corruption..5 Tax rates .....................3........................5 5th pillar: Higher education and training ........................7...............1 8th pillar: Financial market sophistication......25.......................................2................000 2...........4................................86 ........95 ................................ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.......6 4th pillar: Health and primary education .....16.....................................................................1...........69 .............6 Factor driven Basic requirements....................3..........000 Bosnia and Herzegovina Europe and Central Asia 10.2...................0............. 2008...............n/a 12...............2 Inadequate supply of infrastructure .................2..........................5 Transition 1–2 1 GCI 2008–2009 (out of 134).....................10.............................2 Infrastructure 6 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ........4 Inefficient government bureaucracy..5 GDP per capita (US$).2...............................................625....3.....128 ..9 GDP (US$ billions)..............................3............................6 Tax regulations ....................6 GCI 2007–2008 (out of 131).................2.....000 6.......125 .......94 .............8 Restrictive labor regulations .......9 2nd pillar: Infrastructure...............................................1 Policy instability...................117 ......0 10th pillar: Market size...0 Access to financing ...........109 ..........106 ....................3........................................................................3.............3.....131 .....................100 .....0....3..7 1st pillar: Institutions .0 Inflation ...........000 8....................... 1980–2008 Population (millions)...............................................3 92 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers..7 6th pillar: Goods market efficiency..................................... The bars in the figure show the responses weighted according to their rankings.........4 7th pillar: Labor market efficiency .........1 Poor public health .........................2 3rd pillar: Macroeconomic stability.........2 Crime and theft .................................................................................000 4......................3.........................128 ........4..........3...........................1...3..............3......2..4.....

...■ Internet users* ....... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................■ Laws relating to ICT.■ Buyer sophistication ......■ Wastefulness of government spending...........■ University-industry collaboration in R&D ......131 ...............71 ....................96 .13 ....■ Quality of roads...................09 4......................................■ Local supplier quality .............................................■ Flexibility of wage determination.....................................71 .........13 6.................................■ 10th pillar: Market size 10.....................05 8....07 5............06 9..............116 ..108 .......09 Cooperation in labor-employer relations .132 ....116 ....... of procedures required to start a business* ..........................................04 4..93 .............................97 ........................................................................................■ Burden of government regulation....08 8..........■ Broadband Internet subscribers*..........122 ..................................................129 .■ Willingness to delegate authority ..................80 ...7 .........129 .........■ 10..08 11...........14 6.............■ Quality of railroad infrastructure .............■ 8............................................99 .........................................04 5..........................■ Transparency of government policymaking ....17 1..........02 3............■ Intellectual property protection.............................11 1..................57 .■ Infant mortality*................................■ National savings rate*.....04 9.130 ........................08 Quality of overall infrastructure..........04 11...........56 .............03 2..............09 6........122 .......................■ Tariff barriers* ......59 ..................128 ............51 ........... 2...................................................■ Extent of staff training ........132 ..08 1......■ Favoritism in decisions of government officials .......32 ..............................132 ............................■ Efficiency of legal framework in settling disputes..........06 5.....n/a Education expenditure* ..........................................06 8..................................131 .......122 .......■ Diversion of public funds ......................01 1...............................09 Financial market sophistication..........04 2.......15 Intensity of local competition ...01 4...........125 ..117 .....■ Local availability of research and training services ..............■ Degree of customer orientation ..............88 ..01 3.............................12 1.....The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.......05 5...........■ Reliance on professional management .....................04 8.....................02 2.........................................107 ................114 ..............■ Production process sophistication ..........07 7...133 ..................■ Public trust of politicians...01 6.65 .............■ Ease of access to loans .....90 ............116 ....07 11..68 ......................■ 12..............71 ......................................14 1............................133 ..........131 .....■ Quality of scientific research institutions..........■ Extent and effect of taxation ....03 7.....1 .■ Life expectancy*....■ Organized crime..................................■ Soundness of banks ....■ Firm-level technology absorption......................................05 6..................■ Personal computers* ...........06 6....■ Firing costs* .........■ Gov’t procurement of advanced tech products ..................10 1......................131 ...............................55 ......................■ Venture capital availability ....................................................02 4.........■ Female participation in labor force*..............................................114 ................133 ....106 ...............06 2.......................................06 4........................01 7...........82 .....................05 7......................................93 .........■ 7th pillar: Labor market efficiency 7................■ Business costs of terrorism..99 ......■ Judicial independence ............................04 12.........03 9........03 3..67 .............02 8.........................................................................79 .......■ 12th pillar: Innovation * Hard data Note: For further details and explanation...........................■ Business costs of crime and violence ......................................................■ Efficiency of legal framework in challenging regs .....100 .13 1........07 Capacity for innovation .............................01 12..............................124 ..............■ Prevalence of foreign ownership ..........................129 .....117 ................................03 4.....128 ..........■ Quality of the educational system ......07 8................■ Brain drain ..03 12.......06 12....03 6....06 11.........07 6............131 .....■ Primary enrollment*...............................................78 ...1 ..............................15 1......132 ...........................06 7........................03 11........................................■ Burden of customs procedures ............................................................................02 7............07 1................................130 ...126 .......................04 7....................07 4.......07 2........................................01 5......■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5................09 Local supplier quantity ..........................48 .......■ Business impact of rules on FDI ..........122 .........■ Strength of investor protection*........................■ Financing through local equity market.......■ Tertiary enrollment* ........................123 ............................04 1............133 ...................■ 11th pillar: Business sophistication 11................................31 .......02 9........■ Protection of minority shareholders’ interests .■ Extent of market dominance ...01 2..........................118 ..........05 4.......■ HIV prevalence*....131 ........................46 .....................■ Government debt*.....01 11..02 5......08 4...................................................■ Quality of port infrastructure ..........10 4................95 ..■ Agricultural policy costs ....■ Time required to start a business* ...11 Business impact of malaria....................................■ 4.............................■ Regulation of securities exchanges ...............■ Quality of math and science education .........■ Quality of management schools ...........04 6................................106 ........................01 9.50 .................................................02 12.............■ Strength of auditing and reporting standards ............118 ....■ Rigidity of employment*........■ Quality of air transport infrastructure..■ 9th pillar: Technological readiness 9.....................................■ Quality of electricity supply ....133 .......................78 ........76 ...........■ Mobile telephone subscriptions*..■ Control of international distribution ...................................■ Tuberculosis incidence*..........05 1............■ Inflation* .......................08 Secondary enrollment* ...............n/a ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6............57 ............56 ............................115 ......■ Available seat kilometers* ...133 ..........02 1..124 .......12 6.....■ Internet access in schools ......19 Property rights ...............03 1.132 ...........................................16 1....................■ Restriction on capital flows .................72 ....................71 ..31 ...........■ Quality of primary education..■ Availability of scientists and engineers .......05 11..........03 8............■ Ethical behavior of firms ........121 ....114 .........■ Pay and productivity..................■ State of cluster development ...01 8.........................03 5.................76 ..................................................47 .......02 11..........08 6...1 ..................■ Legal rights index*.....................45 .....................■ 2...11 6...124 .94 ..........10 6........09 1...............■ Telephone lines* .........................................113 .................131 ...■ Total tax rate* .........................05 2..........................■ Business impact of HIV/AIDS ........■ Value chain breadth......05 Government surplus/deficit* ...........04 3............1: Country/Economy Profiles Bosnia and Herzegovina The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 93 ..130 .....................................................97 ...........90 ...................................08 7..............01 Domestic market size index* ..........................................■ Business impact of tuberculosis..........................................................................................06 1...02 Foreign market size index*......56 ...........02 6...............■ Malaria incidence* ...................................................................■ Efficacy of corporate boards ...................................................115 .......05 12.........75 ...■ Company spending on R&D ........128 ....127 ........................5 ......133 ....18 1.■ Reliability of police services......................■ Interest rate spread* ...■ Effectiveness of anti-monopoly policy .............■ FDI and technology transfer ...05 9...08 Availability of latest technologies.............■ Utility patents*.................................■ Hiring and firing practices .....■ Extent of marketing .■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.....■ Nature of competitive advantage ...........07 9.■ No.........■ Prevalence of trade barriers.................

..........................63 ..............0 Poor public health ........92 .......41 .....000 5........4 Tax regulations ............................................................................................87 .................................1 Transition 1–2 1 GCI 2008–2009 (out of 134)...........4 1st pillar: Institutions .....................000 10......000 Botswana Sub-Saharan Africa 15..................................... 2008..0 Factor driven Basic requirements........ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..............................2....................................................5 6th pillar: Goods market efficiency....................................5 9th pillar: Technological readiness..........4...................3...........2......................29 .......................5 8th pillar: Financial market sophistication........2 10th pillar: Market size.................12.........................................................4..........14......................................................79 ...1 7th pillar: Labor market efficiency ...6 Inadequate supply of infrastructure ..6 Inefficient government bureaucracy...4............................................................ 2008...3 11th pillar: Business sophistication..................3.................5 Inflation ...................................................4 Restrictive labor regulations ........3..........................................................61 .................................................8 94 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...........4.......................3...........9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..................7.............................9 GDP (US$ billions)..1 4th pillar: Health and primary education ................... The bars in the figure show the responses weighted according to their rankings..............94 .........4.9 Access to financing ...........5...............................................4 12th pillar: Innovation........2.....................................5 GDP per capita (US$)..........56 ...............3.............1.........8 5th pillar: Higher education and training ........2 Government instability/coups ..........................9.....................................................4...................7....................................2 GDP (PPP) as share (%) of world total.....................1 Policy instability.........9 3rd pillar: Macroeconomic stability....................................4..................5 Corruption...........2 GCI 2007–2008 (out of 131)....13..........1.....................92 ...107 ...13...66 ....71 ..........7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors............. 2008 .......2..................2 Tax rates ...............................1: Country/Economy Profiles Botswana Key indicators GDP (PPP int'l $) per capita.....0...98 .....n/a 20.....1........................554....58 ....... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..3.................9 Foreign currency regulations.....3..........4....... 1980–2008 Population (millions)....16.....1 Financial market sophistication Goods market efficiency Labor market efficiency Botswana Economies in transition from 1 to 2 The most problematic factors for doing business Poor work ethic in national labor force ............2......9 2nd pillar: Infrastructure...........................6 Crime and theft .............4.........................................76 ...6......................4.5 Inadequately educated workforce.................................3.118 ........................47 .........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...

96 ......92 .........................................05 7........115 ....85 .................81 ..20 ...............08 8....98 .....■ Diversion of public funds ..........................102 ........................126 .■ Business impact of tuberculosis........01 12.............86 ......................81 .............................................11 6......■ Laws relating to ICT....■ Firm-level technology absorption..........8 ..............■ Tertiary enrollment* ..... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........................■ Quality of port infrastructure..06 8.......................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6................................................................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1..■ Hiring and firing practices ..........■ Pay and productivity.38 .......................98 .......................................■ Strength of investor protection*....■ National savings rate*............. of procedures required to start a business* ...................■ Favoritism in decisions of government officials ........................01 3........05 11............19 Property rights ...■ 10...................01 11.............7 ...................................■ Burden of customs procedures .................95 ..................■ Government debt*...........10 4......07 9.............................................................19 ........92 ...........122 .....■ Effectiveness of anti-monopoly policy .28 ........1: Country/Economy Profiles Botswana The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 95 ..95 ..................■ Ethical behavior of firms ....■ Utility patents*.............................06 4..................08 Quality of overall infrastructure........■ 8......■ 4............................02 Foreign market size index*...14 6...........53 ......■ Female participation in labor force*........42 ...14 .........121 ........18 1.....45 ...............45 ...........04 7.............................08 1..............104 .........06 12.......02 11...................58 .................51 ........12 6.................133 ..02 7..........■ Extent of market dominance ..................................■ HIV prevalence*..........................................15 .........................■ Primary enrollment* ..............................................88 .94 .....07 4...............................■ Quality of primary education......................04 8.........■ Agricultural policy costs ............05 1............■ 7th pillar: Labor market efficiency 7.........01 8....07 5..........■ Degree of customer orientation .....................................04 3............................01 Domestic market size index* ..........05 5.............................122 .................124 ......■ Brain drain ................................■ Value chain breadth.........................02 5.................11 1.......02 9....................113 ..05 2..90 ............................■ Mobile telephone subscriptions*.08 11................■ FDI and technology transfer ..■ 12th pillar: Innovation * Hard data Note: For further details and explanation..■ Inflation* ...........10 6.................05 12..■ Efficacy of corporate boards .....................03 9..............17 1.....■ Extent and effect of taxation ......................49 ..06 11..................25 ........115 .......04 12...................................07 Capacity for innovation ..........■ Protection of minority shareholders’ interests ........06 5........................109 ...............■ Wastefulness of government spending..................■ Efficiency of legal framework in challenging regs ............■ Life expectancy*..108 ......02 1...........02 8......................08 4....................................................51 ..............................03 6...............■ Business impact of HIV/AIDS ....■ Transparency of government policymaking ...................21 ...■ Interest rate spread* .50 ..............................01 9..47 .................02 3....................................................■ Internet access in schools ...............06 1..........................34 .............85 .................... 2............10 1......................................................94 ...07 11........■ Personal computers* .....05 9.....................■ Organized crime................04 4....83 .............42 .....■ Strength of auditing and reporting standards .■ Quality of the educational system ...09 Financial market sophistication.....89 ....■ Available seat kilometers* ........................■ Prevalence of foreign ownership ...............................03 4..03 2.......................................................■ Willingness to delegate authority ....131 ....■ Quality of roads.■ Telephone lines* ..................04 9........47 .........71 .09 Local supplier quantity .............................................................40 ....32 .....................................■ Local supplier quality ....01 4............■ Legal rights index*.....07 8............68 .107 .............106 ............■ Buyer sophistication .......■ University-industry collaboration in R&D ....80 ..■ 9th pillar: Technological readiness 10th pillar: Market size 10..............08 Availability of latest technologies...........■ Business costs of terrorism.................................................................................34 .........58 ............................100 ...............■ Restriction on capital flows .......................09 4...................39 ......08 Secondary enrollment* .07 6................................................................■ Malaria incidence* ................■ 11th pillar: Business sophistication 11............49 .............................95 ..............................................................53 .....■ Gov’t procurement of advanced tech products ..............04 6.■ Extent of marketing .....■ Total tax rate* ...04 1...................................................103 ........112 ...08 7..■ Local availability of research and training services ....................■ Tuberculosis incidence*..........................................02 4...■ 12.........■ Quality of scientific research institutions.........06 7...52 ..13 6..■ Soundness of banks ....■ Nature of competitive advantage .73 .................■ 9.06 2...............44 ....■ Venture capital availability .....■ Business costs of crime and violence ............31 ...............73 ......■ Flexibility of wage determination..........................74 ....02 6........■ State of cluster development ....................................■ Quality of air transport infrastructure................■ Quality of math and science education .............■ Education expenditure* .................■ Quality of electricity supply ...06 9......106 ....................78 ..............13 1................................01 1..........................16 1.....80 ..................09 1......■ Financing through local equity market....05 4...........■ Rigidity of employment*......................■ No....................................................62 ..................07 7.■ Tariff barriers* ....................................■ Internet users* ................27 ...........................38 ................................■ Broadband Internet subscribers*..................44 ........44 .....91 ........■ Regulation of securities exchanges ..■ Ease of access to loans ..01 5.................■ Business impact of rules on FDI ........05 6...........■ Production process sophistication .......................................01 7........................................46 ..............................■ Company spending on R&D ....................................■ Burden of government regulation..........02 2..................■ Public trust of politicians..03 1.............................83 .........................................................04 11......25 ....28 ..........................................................■ Intellectual property protection.......130 ......................................................111 ......................69 .........................04 2...............................■ Prevalence of trade barriers.............127 ...05 8..................12 1.........................■ Efficiency of legal framework in settling disputes.......02 12.................03 5..09 6.................03 8....■ Time required to start a business* ..11 Business impact of malaria.......................................73 ................................40 ...................28 ........79 ......124 .........................07 2...44 ...■ Control of international distribution ................................57 ............................■ Reliance on professional management ....................68 ....38 .................■ Reliability of police services........■ Quality of railroad infrastructure ......12 ..07 1.............■ Quality of management schools .........................................08 6.14 1....................................79 .......................■ Infant mortality*.....03 11.................................■ 2....68 ....■ Extent of staff training ....118 .......................................■ Availability of scientists and engineers .....04 5.......03 7..01 2..........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3................................■ Judicial independence ............117 ........................36 .......................09 Cooperation in labor-employer relations .....................03 12.......................................................15 1...................................15 Intensity of local competition ...................26 .....03 3.........05 Government surplus/deficit* .................................06 6.......01 6............................■ Firing costs* .......■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.............................

.................56 ..4........99 .5 9th pillar: Technological readiness......................9 4th pillar: Health and primary education ................................................................................................... 2008 .2.......4..........................58 ............................5 Corruption................................000 Brazil Latin America and Caribbean 9.4...................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...........1 6th pillar: Goods market efficiency.........6 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............7.......3..............19.......................9 Policy instability.........9 Foreign currency regulations...10 .........1 GCI 2007–2008 (out of 131)...................4......................................................80 .........11.................................................10..5 3rd pillar: Macroeconomic stability......0 Inefficient government bureaucracy.....4...93 .91 ..............4 5th pillar: Higher education and training ..................................18..5..1 10th pillar: Market size..............9 Crime and theft ......................4..........0.....0 Factor driven Basic requirements.......0 Tax rates ................2 GDP (US$ billions).............38 ..........51 .....................................................0 1st pillar: Institutions .3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....................5 2nd pillar: Infrastructure........7 Poor public health ..........0........................................5 Financial market sophistication Goods market efficiency Labor market efficiency Brazil Efficiency-driven economies The most problematic factors for doing business Tax regulations ...0......................9.0...4...........................4.....................0..............6 12th pillar: Innovation.. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...................9 7th pillar: Labor market efficiency ......................................................000 3................4..............................572...................................3....................................5 Restrictive labor regulations .... 2008.............1..........1.....................0 Poor work ethic in national labor force ....3...6 Government instability/coups ....109 .........................2..86 12...............1 Inflation ........74 .......................4 GDP (PPP) as share (%) of world total.......................000 6.........0 Access to financing ................1: Country/Economy Profiles Brazil Key indicators GDP (PPP int'l $) per capita...................5.......4..................................................72 ......................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5............4 Inadequate supply of infrastructure ..................46 ........................................... 2008..............................................79 .......14..................3...................... The bars in the figure show the responses weighted according to their rankings...... 2008 .............3 8th pillar: Financial market sophistication....................................42 ............8......0 Inadequately educated workforce.......197..2 Transition 1–2 1 GCI 2008–2009 (out of 134)......................4...................1 11th pillar: Business sophistication...............................64 ............194........32 ..1...................4.........................................2 96 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...................8 GDP per capita (US$)..............43 .............. 1980–2008 Population (millions)....3..........................

....................36 ..................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation....................18 1....................35 .............117 .............................................62 ....................................................■ Broadband Internet subscribers*...■ Regulation of securities exchanges ........35 ........■ Total tax rate* ........81 ...........68 .....................129 .........................................................15 1.....68 ........................9 .......................12 ................■ Local availability of research and training services ......................12 1......07 1.......................................128 ..........94 .■ Quality of port infrastructure ..13 1........................11 1..........50 ......01 11.............86 ....96 ...........09 1........1: Country/Economy Profiles Brazil The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 97 ....................................14 6.06 8.59 .........■ Restriction on capital flows .............08 6...133 ...■ 8.■ State of cluster development .........01 Domestic market size index* ...127 ..86 ..........95 .....................05 9....................................06 11.02 Foreign market size index*..................02 1.............................59 ............02 9...............■ Reliance on professional management ...03 7...............02 4.....04 2.......................................................................................60 ....02 5.09 4..........................09 6....09 Financial market sophistication..■ Soundness of banks .05 2...01 12.............92 ...77 ..........................36 ...............■ Telephone lines* ....■ Efficiency of legal framework in settling disputes...........52 .....■ 9..................................09 Cooperation in labor-employer relations ........■ Effectiveness of anti-monopoly policy ................................05 5..................10 4............■ Value chain breadth.................................40 ...95 .....................■ Venture capital availability ...05 8......96 ...............................................05 1................08 11................■ 9th pillar: Technological readiness 10th pillar: Market size 10..................■ Agricultural policy costs ............07 8...............126 ......81 ..04 6...........57 .■ Available seat kilometers* ..............■ Extent of marketing ..............................................■ Education expenditure* .70 ....65 ..............■ Quality of primary education......22 ................06 12.........................03 8.....44 ..■ 2.........11 Business impact of malaria...........................85 ....■ HIV prevalence*.......■ Efficiency of legal framework in challenging regs .....■ Firing costs* ....132 ......■ FDI and technology transfer ........■ Internet access in schools ........................■ Life expectancy*..........................111 ............13 ........■ Tuberculosis incidence*............11 6..............................■ Reliability of police services.31 .................08 Availability of latest technologies.........................■ Company spending on R&D ..................01 8............05 Government surplus/deficit* .78 ......................91 ........■ Diversion of public funds ....06 5............................................................73 ..............■ Infant mortality*.................. of procedures required to start a business* .........89 .........29 ..........................87 .......................04 9..............................■ Nature of competitive advantage .......47 ..13 6..........04 3.....■ Business impact of tuberculosis.16 1......■ Business costs of crime and violence .57 ......................07 5............54 ....■ Firm-level technology absorption.......03 9......34 .................07 Capacity for innovation ................................26 ........■ Burden of customs procedures ..................................■ Business impact of rules on FDI .....■ Efficacy of corporate boards ..............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.................................■ Degree of customer orientation ...............■ Quality of roads..............75 ........03 4.........128 ......05 12.........................70 .....■ 10...■ Utility patents*................03 12...59 .....02 11.....................08 1.......■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...........................................41 .......■ Brain drain ...................................................................67 .........................................12 6...98 ..................59 ...■ Tariff barriers* ................02 7.................68 .05 7..................29 ...................................123 ............■ University-industry collaboration in R&D ............70 ...........98 ...............60 .......................03 5......................................55 ...................■ 11th pillar: Business sophistication 11........................................................ 2..■ Favoritism in decisions of government officials ...........04 7........■ 7th pillar: Labor market efficiency 7.........................................127 ....01 9...........................03 6...............................■ Business impact of HIV/AIDS ...................................■ Quality of railroad infrastructure ...................06 4.....................................■ 4.01 1....07 11.........■ Government debt*..117 .............................14 1.....................................................................17 1..■ Pay and productivity..01 2...........01 5..71 ...........■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5................61 ..................................■ Extent and effect of taxation ........06 2..............07 2.........■ Legal rights index*.....■ Strength of auditing and reporting standards .....■ Mobile telephone subscriptions*........................................■ Personal computers* ....03 1........................■ Quality of electricity supply ..............................29 ......07 7.......................103 ......................34 .........■ Hiring and firing practices .........■ Time required to start a business* .........74 ..................................10 ..03 11.................25 ...........................42 ...............02 8.■ Quality of management schools .......03 2.......08 8....................■ Business costs of terrorism.28 ..........25 .........01 7.....■ Internet users* ............................................■ Flexibility of wage determination..121 ...............................■ Female participation in labor force*.06 1..........■ Ease of access to loans ........04 11..........................................15 Intensity of local competition ......■ Inflation* .■ No...................06 6........■ Malaria incidence* .......................118 .....■ Local supplier quality ...............■ Public trust of politicians..........................................■ Protection of minority shareholders’ interests ...........................02 6.............................08 Secondary enrollment* ........33 ..............■ Quality of scientific research institutions................................■ Extent of market dominance ......■ Intellectual property protection...06 9.......66 .......■ Quality of air transport infrastructure.■ Judicial independence ....................................................08 4............... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.............................02 2.49 ......................■ Buyer sophistication .......03 3.........06 7....................................................................23 ...............■ Control of international distribution ...........................■ Burden of government regulation..■ Extent of staff training ................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3............................................................09 Local supplier quantity ..............................89 ..........07 4.........................■ Strength of investor protection*...........■ Quality of the educational system ................41 ..01 3.............■ 12....04 4.58 ...............■ Laws relating to ICT.........................■ Quality of math and science education ....................110 ...............................................52 .........■ Interest rate spread* .............■ Willingness to delegate authority ....04 5................10 ...................10 6..................................................■ Wastefulness of government spending...........................■ Tertiary enrollment* .......118 .......02 12......19 Property rights .............81 .....................119 ..............................121 ............04 8....69 ......05 4.............02 3................................................■ National savings rate*....■ Gov’t procurement of advanced tech products .........■ Primary enrollment* ............................................01 4....04 12.........64 .■ Rigidity of employment*.08 Quality of overall infrastructure..05 11.....................................................10 1.................■ Prevalence of foreign ownership ........35 .........07 9.......55 ..106 ...............■ Prevalence of trade barriers.....04 1....................■ Ethical behavior of firms ......................78 ............66 ............................■ Production process sophistication .01 6....................■ Financing through local equity market..............................................10 ....■ Transparency of government policymaking .........■ Organized crime................................................08 7..5 ...........55 .....................................................89 ...70 ..............05 6.■ Availability of scientists and engineers ..........................35 ................................................07 6............

.........................9 Poor public health .................................2................100 ..........6 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............1 Tax regulations ...........000 20.................................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ............1: Country/Economy Profiles Brunei Darussalam Key indicators GDP (PPP int'l $) per capita............9 Inefficient government bureaucracy.....68 ..............9 5th pillar: Higher education and training ..............2 9th pillar: Technological readiness.........4 GDP (US$ billions).............................3................... 2008...............8 2nd pillar: Infrastructure..............62 ..........0 GDP (PPP) as share (%) of world total....................................20................................2............................42 ........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..75 ........................1 6th pillar: Goods market efficiency................. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..4......................................7 Inadequate supply of infrastructure .............6 Crime and theft .5................1 Inadequately educated workforce..........................................................15..............0...................2...................................................14..................... 2008 ......n/a Factor driven Basic requirements......1.....................3 Access to financing ..5 Poor work ethic in national labor force ....3.................... The bars in the figure show the responses weighted according to their rankings..............................15.76 ...............3.19 ...........2.....4.......4 Tax rates .....................7.................................................................4 1st pillar: Institutions ......................8 98 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.........................5..............................................1 ................. 2008...n/a 60.....4................39 ....60 ..9 Inflation ....................6 4th pillar: Health and primary education ......0.....32 ......................9 7th pillar: Labor market efficiency .1.......................................17..................4...........4................4 11th pillar: Business sophistication.......2 8th pillar: Financial market sophistication..........36 ............10.........000 Brunei Darussalam East Asia and Pacific 40................1...........77 ..................................................5...........................6 GDP per capita (US$)...................................................................0 Financial market sophistication Goods market efficiency Labor market efficiency Brunei Darussalam Economies in transition from 1 to 2 The most problematic factors for doing business Restrictive labor regulations .........5 GCI 2007–2008 (out of 131).....4...........................................4 Policy instability...........................8 10th pillar: Market size.................41 ........................................115 ....1..............................053..........3......n/a ..........81 ........9 Corruption..............37...............................................................1...................3.......................................6 3rd pillar: Macroeconomic stability..6............................10 ....... 1980–2008 Population (millions)..............................6 Transition 1–2 1 GCI 2008–2009 (out of 134)..............................0.3...8 12th pillar: Innovation................3 Foreign currency regulations.1 Government instability/coups ..0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....

.......■ Efficiency of legal framework in challenging regs ......■ Telephone lines* .................03 2...........................■ Inflation* .....■ Quality of railroad infrastructure.....03 6..02 4....................39 .....................■ Tertiary enrollment* .....■ Agricultural policy costs ...33 ......57 ....07 Capacity for innovation ..........07 5............42 .........................13 6...............52 .■ Business impact of tuberculosis...................................40 .....■ Business impact of HIV/AIDS ...............■ Intellectual property protection......38 ....04 12..................................................................................2 ......42 ......................60 ...................■ Extent of market dominance ....62 .........05 6.........................................08 4................................................10 4........■ Legal rights index*............................................75 ...........126 ....63 ............■ 12th pillar: Innovation * Hard data Note: For further details and explanation...01 1..........72 ......................................03 11............37 .......................26 ................................05 5..................................17 1...............05 8......................108 ........................01 7..........................■ Reliance on professional management ....................................49 ..........121 .................■ Nature of competitive advantage .......................................16 .............■ Quality of electricity supply ..............................................................08 Availability of latest technologies.................................09 Financial market sophistication......................41 ............04 7................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.........126 .............95 ..03 9................■ Favoritism in decisions of government officials .......................08 7..............36 ..56 ..............16 .........■ Availability of scientists and engineers ..............................01 11....10 1.........09 6.........08 11..11 1...................78 .................51 .....................02 3........................................06 1.........................................■ Local supplier quality ........................13 1....08 Secondary enrollment* ................■ Degree of customer orientation ..............08 8............■ 8......................55 ...■ Prevalence of foreign ownership .....................................■ Ease of access to loans ....■ Government debt* .......................03 12..........................................■ Internet access in schools .......07 8....................................01 12........20 .........07 4..............■ Time required to start a business* .......60 ................................................■ Strength of investor protection*.■ Transparency of government policymaking .......71 ........................55 ................................91 .......46 ....07 7..............................■ Ethical behavior of firms ......06 6.......................110 .........................■ Diversion of public funds .......101 ......................................12 1................04 2..............01 4..■ Business impact of rules on FDI ...........74 ..........................................09 1................37 ......■ 10.............■ Personal computers* ...............................54 ..................68 .........................................................■ 9th pillar: Technological readiness 10th pillar: Market size 10....15 1...........■ Pay and productivity...............37 .......19 ..........................................75 ................■ Life expectancy*...............................................4 ..........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.....................■ 9.......90 .....■ Education expenditure* ...■ Available seat kilometers* ...............06 2................■ Effectiveness of anti-monopoly policy ..03 7......05 2........■ Extent of staff training ..............................................................................................................07 2..........04 6.......................16 ..........86 ......78 ...........10 6.......04 3...■ Brain drain .......................51 .....05 9.....................08 1.27 ........18 1........04 8........39 .........................................15 Intensity of local competition .......................75 .........07 1....91 ....■ Quality of scientific research institutions.....16 1...........05 4........04 11.....■ Infant mortality*.....■ HIV prevalence*..03 3.......................■ Firing costs* ..........01 2...■ Quality of roads..........................■ Quality of math and science education ...............................72 .■ 11th pillar: Business sophistication 11.................02 1.....50 ........■ 12...........117 ........■ State of cluster development ......n/a Quality of port infrastructure.....................15 ...........92 ..............................................................................■ National savings rate*..■ Burden of customs procedures ..................64 .............06 7....9 ..........108 ...71 ..........101 ..........................64 ......................05 11........................03 4..........................■ Broadband Internet subscribers*...12 6...01 3...........02 7..................................................................78 .........70 ......29 .................36 ...........06 11..........................19 Property rights .................■ Control of international distribution ................■ Production process sophistication .01 6.......................................39 ........... of procedures required to start a business* .02 11......................14 6.85 ....■ Internet users* .........06 9...............11 Business impact of malaria..04 1.......■ Mobile telephone subscriptions*...........■ Willingness to delegate authority ...........................................................■ Quality of management schools ......■ Utility patents*..............■ Firm-level technology absorption..................42 ..65 ......05 7...............................................08 6......■ Local availability of research and training services ..........03 5.....................65 .............................................14 ...................................■ Quality of the educational system ..........■ Protection of minority shareholders’ interests ..............■ Tuberculosis incidence*.....14 ...........02 12.......................■ Judicial independence ..■ Hiring and firing practices .......39 ..■ 2...........02 2.......... 2.................................■ Extent of marketing .......■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........................■ Business costs of terrorism...................08 Quality of overall infrastructure..■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.■ Flexibility of wage determination..............■ Buyer sophistication ......■ Wastefulness of government spending.82 .....................................38 .01 9.........09 Cooperation in labor-employer relations .............04 4..69 .....■ Rigidity of employment*............................67 ......■ Financing through local equity market......11 6.....................................■ Strength of auditing and reporting standards ..............................................................................................................■ Prevalence of trade barriers.....46 ..............................02 5...■ Organized crime...................................................07 6....■ Quality of air transport infrastructure.......................■ Burden of government regulation...............04 9.06 5.■ Efficacy of corporate boards .....37 .6 .........74 ......................02 8..47 ....■ Laws relating to ICT........................29 ............1: Country/Economy Profiles Brunei Darussalam The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 99 ...1 ......72 .........■ Regulation of securities exchanges ..47 .01 5.......72 ..91 ....61 ......................................................14 1....126 .........■ Public trust of politicians...................■ 7th pillar: Labor market efficiency 7................................................78 ...................................03 1...............■ Interest rate spread* .................65 ..............■ Extent and effect of taxation ..................................90 .....■ Value chain breadth.02 6.....................■ Tariff barriers* .........05 Government surplus/deficit* ......................05 12.....................■ Venture capital availability ................09 Local supplier quantity ..............................■ Reliability of police services..........02 9........05 1..■ Company spending on R&D ...■ Primary enrollment* .....■ Efficiency of legal framework in settling disputes........6 .....................09 4....................33 ..........................■ Gov’t procurement of advanced tech products ..06 8..68 .................■ Malaria incidence* ...........06 12............■ University-industry collaboration in R&D ......06 4..■ Total tax rate* ..............................93 ..............................................97 ....32 .......................■ Soundness of banks .................n/a 4...03 8....90 .....................07 9.■ Restriction on capital flows .......................................01 Domestic market size index* .............01 8.The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.........■ FDI and technology transfer .......................■ Female participation in labor force*..........51 ..............32 .....04 5.....................■ No.........................32 ...........07 11.............................■ Quality of primary education.........................■ Business costs of crime and violence .......02 Foreign market size index*......

........5.........000 Bulgaria OECD 30................45 .....2 Tax rates ..............52...89 ...............1 1st pillar: Institutions ...............4.....................................14 40...............................89 ............1 6th pillar: Goods market efficiency...........3......0 Inefficient government bureaucracy...................2...9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010................................2.......4.1: Country/Economy Profiles Bulgaria Key indicators GDP (PPP int'l $) per capita...............116 ....... 2008.........................................5 100 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.....91 .............................8 10th pillar: Market size................102 ............................6 Restrictive labor regulations ....4 Inflation .....3..............60 ...................................... 2008 .......4.76 ..............56 ....4................3.................000 20............................2.80 .................4........................3 Foreign currency regulations..... The bars in the figure show the responses weighted according to their rankings..............1 9th pillar: Technological readiness......11.............................. 2008.......................9 Factor driven Basic requirements............9 Financial market sophistication Goods market efficiency Labor market efficiency Bulgaria Efficiency-driven economies The most problematic factors for doing business Access to financing .....................................9 4th pillar: Health and primary education ......0.........76 ........7...............4...4...........................................................7 12th pillar: Innovation........ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...........................................4.................................58 ................................0 7th pillar: Labor market efficiency .3 Poor public health ...........9 GDP (PPP) as share (%) of world total....5......................856.......................................................................... 2008 ....8..........9 3rd pillar: Macroeconomic stability.............2..................7........79 ......3 Crime and theft ...............0 Poor work ethic in national labor force ...................4..........0 GCI 2007–2008 (out of 131)...................................6 GDP (US$ billions).......................................................................... 1980–2008 Population (millions)..3......54 ............................000 10....5 8th pillar: Financial market sophistication.....................................................6.............................................4....8 Government instability/coups .......................................4.............3..........4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..8 Corruption...3 11th pillar: Business sophistication...............0.........................................4 Policy instability.....15.58 .................................5............76 ....................0 GDP per capita (US$)............1 5th pillar: Higher education and training ................4.......................................................62 .........3........................81 ....8 Tax regulations .......................2 Inadequate supply of infrastructure ...................6...15............0 Transition 1–2 1 GCI 2008–2009 (out of 134)....................2 2nd pillar: Infrastructure............. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ............................2.5 Inadequately educated workforce......................6.

.■ Quality of primary education......10 4....05 6.............12 6.........■ Malaria incidence* ..13 1...........■ 10.......01 3............108 ...................................................................................16 1.........■ Gov’t procurement of advanced tech products ..........................■ 9th pillar: Technological readiness 9.....21 .........107 ...02 4......................01 6......07 Capacity for innovation ..45 .....■ Internet users* ..................81 .........75 ..........■ Prevalence of foreign ownership .....108 ..............■ Degree of customer orientation ......................■ Legal rights index*............■ 4....78 ..118 .........59 ......................08 1.............■ Company spending on R&D ...06 5..............................................■ Infant mortality*.....................116 .08 8.......09 Cooperation in labor-employer relations .......................■ Intellectual property protection......................02 7...........................■ 12th pillar: Innovation * Hard data Note: For further details and explanation......15 1....96 ....50 ....08 4.......................03 7....................■ Venture capital availability ..........128 .......................................121 ..........................07 6..................................109 ........................■ FDI and technology transfer ................■ Firm-level technology absorption..........114 ..........105 ...............04 4............05 12................................................10 6...............94 .......108 .....08 11............■ Extent of marketing ...10 1........01 1......07 1..........■ Production process sophistication ..18 ..■ Reliance on professional management ..........110 ...01 2......15 ........82 ..........................04 8........................................■ Broadband Internet subscribers*...■ Wastefulness of government spending..........■ Primary enrollment* .09 Local supplier quantity .......86 ..04 7.............05 Government surplus/deficit* ......06 9......................06 4........■ Strength of auditing and reporting standards ............98 ........■ Buyer sophistication ..03 1..............82 ..11 ......79 ....................................................................■ 12.............................06 12..............14 1..................................■ Rigidity of employment*.03 9......................■ Extent of market dominance .......................13 6..................................07 2.......................49 .............03 6.......02 Foreign market size index*...............92 ....................113 .......................05 4.......................................................07 8....■ Inflation* ...............................04 6..131 .......■ Extent and effect of taxation ..■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.03 4................■ Availability of scientists and engineers .....................88 ...................■ Local availability of research and training services .........39 ...1 ......................................04 9.....................92 .........■ Laws relating to ICT.........01 Domestic market size index* ................67 ..........01 8.......................03 2...........43 ..................■ Favoritism in decisions of government officials .......................08 Availability of latest technologies.....■ Quality of electricity supply ...............................................■ Female participation in labor force*..........................................................■ Prevalence of trade barriers....03 11..........73 ...................................01 12...............■ Hiring and firing practices .....■ Extent of staff training .............92 .....■ Judicial independence ...............................................................65 ...26 ...■ Local supplier quality ....■ Diversion of public funds .............■ Government debt*..............17 1.............01 4.........................■ No............09 6........03 3.............36 ..56 ....................■ Nature of competitive advantage ........................85 ..09 Financial market sophistication.........104 ......■ Quality of port infrastructure.....92 ...................................■ Ease of access to loans ..........■ Quality of management schools .............67 .■ Ethical behavior of firms ......................■ Burden of customs procedures ...................94 .................................02 3....05 5.......112 ...42 ................................■ Reliability of police services.................................85 .............■ 8..........................06 6.........06 2...............01 11....................■ Efficacy of corporate boards ....................32 ........................■ Pay and productivity..........58 ...................03 5............93 ..................01 7..........................................................................82 ...54 .................1: Country/Economy Profiles Bulgaria The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 101 .......94 .....................■ Burden of government regulation......75 .......■ Organized crime.....02 12.....■ Internet access in schools .....■ State of cluster development .............11 Business impact of malaria...................................05 7...................................................73 ..58 ..66 ........06 1....................05 9............................■ Business costs of crime and violence .02 5.........5 ..............■ Regulation of securities exchanges ....02 1..102 ....................................07 7...................................07 11..............................52 ..■ Transparency of government policymaking ..............■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........107 ...........................................■ Business impact of HIV/AIDS ...........................■ Quality of scientific research institutions..........109 ..................................02 2......................04 12.02 11........................07 9........81 ...............03 8....14 6.................■ Restriction on capital flows ................05 2................08 7......................04 1..........................06 8.....................08 Secondary enrollment* ....■ Effectiveness of anti-monopoly policy ...................................................■ National savings rate*.........■ Quality of the educational system ..........................112 .................■ 2...................43 .............07 5.........95 ......15 Intensity of local competition .......124 ...............1 ...............97 ...................................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...............■ 11th pillar: Business sophistication 11.........04 2...................■ 7th pillar: Labor market efficiency 7......................■ Interest rate spread* ......■ Brain drain ..114 .■ Life expectancy*........13 ....................88 ...........18 1..................................■ Soundness of banks ......■ Willingness to delegate authority ...................95 ... of procedures required to start a business* ............ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..■ HIV prevalence*.107 ..........................■ Business impact of rules on FDI ...........................■ Available seat kilometers* ....07 4..................11 1........................43 ......................................05 1.......01 5......................8 .............. 2.................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5....................................................115 ......................110 ....................08 6.43 ..........................12 1................■ Efficiency of legal framework in challenging regs ..■ Quality of roads..01 9......■ Time required to start a business* .....06 7.....04 3................■ Agricultural policy costs ............................04 5...............107 .......................■ Tuberculosis incidence*....08 Quality of overall infrastructure..........................■ Tertiary enrollment* .........................■ Control of international distribution ............06 11......04 11...................53 ...........................................02 6............................................11 6....................97 ...........................66 ..............................121 .........................■ Public trust of politicians..............................................02 8..■ Strength of investor protection*............■ Telephone lines* .............................71 .................02 9............................92 .............■ Education expenditure* ..........■ Quality of railroad infrastructure ...................09 4........................126 .....................................■ 10th pillar: Market size 10.70 ................110 ......09 1.....05 8...............93 ......■ Flexibility of wage determination..........................115 ..99 .............................................84 ..03 12....■ Value chain breadth..............................................................■ Business costs of terrorism...........56 ........1 ..................■ University-industry collaboration in R&D ............■ Business impact of tuberculosis.........19 Property rights ....■ Tariff barriers* ....73 ...............59 ....................102 ............................■ Total tax rate* ...■ Protection of minority shareholders’ interests .60 .....■ Efficiency of legal framework in settling disputes....■ Mobile telephone subscriptions*...............31 .....■ Quality of math and science education ...................................■ Firing costs* .......■ Quality of air transport infrastructure..31 ............102 .....■ Utility patents*....................■ Financing through local equity market.....................120 ......05 11....................................59 ......■ Personal computers* ................................

........1....................................3....76 .....1 11th pillar: Business sophistication............3 9th pillar: Technological readiness.......................119 ...6 10th pillar: Market size..............................1: Country/Economy Profiles Burkina Faso Key indicators GDP (PPP int'l $) per capita...................2......................3....0.............105 ....7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors........4 8th pillar: Financial market sophistication.....2 Transition 1–2 1 GCI 2008–2009 (out of 134).......................4 Factor driven Basic requirements..........7 Tax regulations ... 2008.......15........2......... 2008 ...............5 Poor work ethic in national labor force .............................5......3.................... 2008.........................2...........................6 Inadequate supply of infrastructure ...............3........6 4th pillar: Health and primary education ....................................03 2..........3.....................................................2 GDP (US$ billions)..............130 .7...122 ..............5 Infrastructure 6 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .........................................115 ......................2.........8.........................9 7th pillar: Labor market efficiency ...............................8 Poor public health ................................7 Crime and theft ......................................... The bars in the figure show the responses weighted according to their rankings..3..8 2nd pillar: Infrastructure.......................6 6th pillar: Goods market efficiency...............1 Government instability/coups .........................4.. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..............................128 ................127 ....118 .........0..3.....16.........7 Tax rates ..............................1 Inadequately educated workforce...4 Inflation ........................ 1980–2008 Population (millions)..........................2 1st pillar: Institutions ......................................1 GDP per capita (US$)...500 1...........................127 ............0 Financial market sophistication Goods market efficiency Labor market efficiency Burkina Faso Factor-driven economies The most problematic factors for doing business Access to financing ....3..6 Inefficient government bureaucracy....8..................71 .....................................11.......000 Burkina Faso Sub-Saharan Africa 1........................................98 .....2..........6 Policy instability.............3........0 GDP (PPP) as share (%) of world total....................................................122 .......................................117 .........................................4..........4 GCI 2007–2008 (out of 131)........3.....................................................................................2 5th pillar: Higher education and training ..000 500 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010............1...................3..6 3rd pillar: Macroeconomic stability.........................................................3..... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5............6.123 ......2 12th pillar: Innovation...........................577...0..............................28....2...........................................................112 ...........1..........................3...............................60 ............2...........1 Corruption.....6 Restrictive labor regulations ........... 2008 ....0 102 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers........130 ..................7 Foreign currency regulations.....................

..................................■ 2...........■ Quality of math and science education .....................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........05 Government surplus/deficit* .......... 2................119 ...07 11.02 1........................28 ..................■ Business costs of terrorism..........■ Buyer sophistication ..................................130 .............■ Quality of air transport infrastructure........79 ..........................103 ..50 ................■ Transparency of government policymaking .........92 ....113 ....02 5..................73 ...07 7................77 ....03 1..........04 7.09 Local supplier quantity ........109 ....■ 10th pillar: Market size 10.............99 ..■ Business impact of tuberculosis...........................................■ Venture capital availability ...02 9..................................103 .......131 ...02 7...........03 3.......■ Production process sophistication ...........107 .133 ........■ No.........................131 ..............................................................................................................■ Ease of access to loans .....................................■ Protection of minority shareholders’ interests ..13 6............................10 4..........06 1.............113 ...........03 7...18 1...............03 8........................02 6.......................................................................■ Hiring and firing practices ..........................................................111 .75 ............................■ Availability of scientists and engineers ...86 ....07 Capacity for innovation .09 4............ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..................■ Quality of the educational system .......01 9.............15 Intensity of local competition ..125 .■ Prevalence of trade barriers..................................................02 12....■ State of cluster development ...........16 ................................................01 6.....■ Reliance on professional management ........................................................■ Intellectual property protection...............■ Infant mortality*..........................................................■ Effectiveness of anti-monopoly policy .........................................127 ....■ Organized crime...............06 7........................132 ...44 ............................................08 4..................................■ Utility patents*.....01 7....08 6..■ Degree of customer orientation ....■ Tariff barriers* ......01 12...16 1...............■ FDI and technology transfer .........■ Efficiency of legal framework in settling disputes...............................■ Nature of competitive advantage .........■ Broadband Internet subscribers*....■ Local supplier quality ............................34 ...■ Burden of customs procedures .........76 ........■ Rigidity of employment*......118 ..■ Tuberculosis incidence*............■ Regulation of securities exchanges ...06 12.■ Female participation in labor force*.■ Extent of marketing ......■ Quality of management schools ............04 3..........■ Strength of investor protection*.....02 Foreign market size index*.........83 ......................08 1........76 ........................05 7.............................................04 5........................■ Interest rate spread*..07 8.......■ Internet access in schools ...................86 .............118 ...................127 ..........................05 4.54 .............■ Available seat kilometers* .......61 ............44 ........................■ Reliability of police services....09 Cooperation in labor-employer relations ....1: Country/Economy Profiles Burkina Faso The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 103 .........................65 .........121 .05 6................64 .............■ Quality of roads..............■ Pay and productivity.........101 ...............■ 7th pillar: Labor market efficiency 7.......■ Telephone lines* .................................................................■ Soundness of banks .14 1.....................................................................■ Time required to start a business* .....■ Favoritism in decisions of government officials ..........................................................92 ...................................■ Brain drain ...............02 3.....■ Judicial independence ..05 8.......■ 10.....17 1..■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.........................................07 9......98 ...........................■ 4............................................03 5..........08 Secondary enrollment* .............■ University-industry collaboration in R&D ...................................109 ................................109 ..........................82 ................................■ Local availability of research and training services ....110 ....................89 ....74 .06 6..............................08 Availability of latest technologies....12 1....■ Quality of scientific research institutions..................■ Financing through local equity market.............■ Restriction on capital flows ...........................94 ...........................................................01 3........99 ......................96 ...94 ..03 4..05 12.........................■ 12.............■ Legal rights index*....................01 5..................07 4...03 6...........■ Personal computers* ..■ Diversion of public funds ........93 ........08 7............................37 ....................127 ............110 ..n/a Government debt*...........................................................04 12....■ Total tax rate* .■ Efficacy of corporate boards ...53 ...........05 1....06 2.....05 5...........119 ......■ Malaria incidence* ....................10 6.....03 11...................04 11..................................■ Internet users* ....................■ Laws relating to ICT........■ 9th pillar: Technological readiness 9..............................................11 6..............................................................■ Value chain breadth.............■ Gov’t procurement of advanced tech products ......■ Mobile telephone subscriptions*................................................132 .....11 1..........................05 11.......■ Life expectancy*.......................■ Quality of electricity supply ......■ 8....59 ......................04 6...110 .07 1......................■ Extent and effect of taxation ........■ HIV prevalence*.......67 ................................07 5......121 ............................132 ..■ Business impact of HIV/AIDS .......■ Agricultural policy costs .......13 1.■ Extent of staff training ........05 2.....08 11.............92 ........01 8.................................67 ..........127 .......................................................................■ Firing costs* ....................■ 11th pillar: Business sophistication 11.........................■ Education expenditure* .......................................124 ......................07 2..98 ............................■ Public trust of politicians...........02 2...........05 9..................02 8.............■ Firm-level technology absorption.....................71 ........................................14 6...............04 1........122 ...............................01 Domestic market size index* ..........105 ..........128 .......64 ...96 .......The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.............132 ........101 ..................04 4...............■ Tertiary enrollment* .....129 ....02 4.......19 Property rights .....81 ......■ Quality of primary education..........■ Willingness to delegate authority ...............................03 2..............■ Prevalence of foreign ownership ..................................132 ...............01 2.125 .............07 6.........53 ...................................65 ..........................................................06 8...........29 ....■ Business impact of rules on FDI ..........04 9.......................................02 11.....03 12.92 .........90 ............■ Extent of market dominance ............................................127 ..........06 5..71 ........................03 9.04 8........................08 Quality of overall infrastructure................■ Primary enrollment* ......................01 11......64 ...............87 ......01 4............104 ..................60 .06 4............09 6...............86 ..........................................78 ..61 ..............................15 1...................92 .........83 ...■ Quality of port infrastructure.........■ Ethical behavior of firms ....................................................08 8................120 ................................10 1.........................09 Financial market sophistication..........80 ...06 9...................■ Wastefulness of government spending....................■ Inflation* ...................113 ..122 ............■ Control of international distribution ..........................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..........12 6.....126 .......04 2..................01 1.........101 .................................58 .11 Business impact of malaria...... of procedures required to start a business* ....................■ Efficiency of legal framework in challenging regs ..................■ National savings rate*.........107 ..■ Company spending on R&D ....■ Business costs of crime and violence ...72 ...........09 1....06 11..............................■ Quality of railroad infrastructure ......113 ..............88 ...■ Strength of auditing and reporting standards ....■ 12th pillar: Innovation * Hard data Note: For further details and explanation............■ Burden of government regulation...........................................■ Flexibility of wage determination....

...............129 .............8.....119 ......................0............7 5th pillar: Higher education and training ..............................................132 ......2................2.............2..101 . 2008...........000 Burundi Sub-Saharan Africa 1............2..........3.14...............................1...........2.......5....0 GDP (PPP) as share (%) of world total......500 1.....3........................................4...............2..... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...116 .......................1..........................8 Crime and theft ...........................8 Government instability/coups .....................................8 Inadequately educated workforce........6...133 ..129 ..2 Inefficient government bureaucracy...7 104 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..................2...0 GCI 2007–2008 (out of 131). 2008 .....1 8th pillar: Financial market sophistication.......................................3.................................................................................................................2...............0......................................3........5 Corruption........................3.............125 ......5 Poor public health ....1......9 11th pillar: Business sophistication.............3 Restrictive labor regulations .............................. 2008 ...............................8 Inflation .............................5 1st pillar: Institutions .133 .....2.....16.........................7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......1 GDP per capita (US$)..8 Factor driven Basic requirements........................133 ...1........131 .........2..................8..................119 ............................................6...................2...................................8 Policy instability... The bars in the figure show the responses weighted according to their rankings..132 ..................................129 ..................................0 4th pillar: Health and primary education ............6 Foreign currency regulations....................2........8 Poor work ethic in national labor force ..............................2...4 Tax rates ..........1 Tax regulations .......121 ..1 Inadequate supply of infrastructure .....3............................................7 9th pillar: Technological readiness.............2 7th pillar: Labor market efficiency ..........................................................3 12th pillar: Innovation............................ 2008...........5 6th pillar: Goods market efficiency......... 1980–2008 Population (millions)......................................2........132 ...........3 10th pillar: Market size..............000 500 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010....8 2nd pillar: Infrastructure.........1: Country/Economy Profiles Burundi Key indicators GDP (PPP int'l $) per capita...6 Financial market sophistication Goods market efficiency Labor market efficiency Burundi Factor-driven economies The most problematic factors for doing business Access to financing .6 Transition 1–2 1 GCI 2008–2009 (out of 134)......................................................4 3rd pillar: Macroeconomic stability...........................................5...............130 ......00 2........1................................133 ..........................................138.......9 GDP (US$ billions)..........3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ........................................................................................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...............20........

...........................■ Mobile telephone subscriptions*.............................................■ Laws relating to ICT..............................................02 3.........05 8.....................03 1...■ Control of international distribution ................05 Government surplus/deficit* ...................41 ..............................02 4................132 ....■ Ethical behavior of firms ...................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..............05 9...■ 7th pillar: Labor market efficiency 7...............■ Tariff barriers* ......................98 ...........................01 12.....■ Hiring and firing practices ..................................■ Organized crime............■ Favoritism in decisions of government officials ..125 ..05 7..........■ No.........10 4......1: Country/Economy Profiles Burundi The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 105 ....125 .12 1....................06 9.......................n/a Government debt*......10 6..............■ Infant mortality*.....■ Burden of government regulation...02 5.....04 6............14 6....112 ...........121 ......................09 1..............08 11.........■ Quality of electricity supply ................................■ Prevalence of foreign ownership ...123 .........01 Domestic market size index* ...............115 ...........................04 1.......123 ........08 Availability of latest technologies..................■ 10................■ Judicial independence ..............08 Quality of overall infrastructure..04 12.....02 Foreign market size index*...122 ....13 1..130 .......121 ........09 Financial market sophistication........................■ Quality of the educational system ...........■ Prevalence of trade barriers........16 1........................................■ Rigidity of employment*.129 ..........133 .................121 .■ State of cluster development ......................130 ..........04 8........................■ Time required to start a business* ...109 .........■ Transparency of government policymaking ..■ Buyer sophistication ...............................................................................06 8.....04 2......116 .......129 ....................................15 Intensity of local competition ........11 Business impact of malaria.....................02 8..........■ Firm-level technology absorption............■ 9th pillar: Technological readiness 9...........05 1........................................■ Effectiveness of anti-monopoly policy ..■ Extent of market dominance .................................■ Tertiary enrollment* ..■ 12....■ Gov’t procurement of advanced tech products .....127 ......■ Ease of access to loans ................................................90 ........98 ..■ Extent of staff training .127 .............09 Local supplier quantity ......................■ Inflation* .............■ Value chain breadth...................................................114 .....................■ Venture capital availability .........08 Secondary enrollment* ........17 1...............................07 6....................■ Quality of roads...................■ Personal computers* ....................................130 ....02 9......■ Female participation in labor force*....06 12.........125 ....03 6...■ Quality of management schools .........................■ Availability of scientists and engineers ....................................................................101 .............................................................................................................■ Extent of marketing ...............07 2....■ Brain drain .................................■ Reliance on professional management .......12 6...■ Extent and effect of taxation ...............117 ...................01 3...04 9..111 ........................46 ....................05 12...07 1..............3 .......06 11.........................■ Flexibility of wage determination.........14 1..123 ........................■ Efficacy of corporate boards .■ Quality of air transport infrastructure.....13 6......121 ................................................................05 11................02 11........................03 11............■ Internet access in schools ....................127 .01 4.132 ....■ Malaria incidence* ....03 3............■ Internet users* ..................130 .....................01 7...................115 .............01 5...■ Restriction on capital flows ....................126 ...........................................................................01 2..........123 ...■ 11th pillar: Business sophistication 11................111 .....................01 8...■ Firing costs* ...........116 ...................■ Production process sophistication ..........................■ Regulation of securities exchanges ..122 ..................■ Wastefulness of government spending.....04 11..........03 9..■ Efficiency of legal framework in settling disputes.................02 6.................................■ Quality of primary education.....08 4....■ Soundness of banks .18 1............................................109 ...■ Business impact of tuberculosis.....■ Quality of railroad infrastructure.........99 ..........................63 ..127 ....11 1....................94 ........11 6.......■ Quality of math and science education ......133 ................94 ........■ Nature of competitive advantage .....07 Capacity for innovation ..................05 4.07 8...116 ........................................09 4........76 ....■ Telephone lines* ...123 ....■ 8..................05 6...............128 ..........................■ Protection of minority shareholders’ interests ...■ Broadband Internet subscribers*.....126 ...................................................................111 .........■ Diversion of public funds ....■ Life expectancy*...............■ Reliability of police services.......125 ........83 .........■ HIV prevalence*.......................■ Intellectual property protection.....................................02 7...54 ....................................03 8......................01 6..................................07 7.........108 .............37 ........■ Degree of customer orientation ........104 ................■ Strength of investor protection*.............02 1..............126 ..........07 9............................■ Willingness to delegate authority ..120 ...........................112 .......................................123 .............................................01 1........15 1.........09 6.........129 .....................129 ...131 ..........■ Interest rate spread*.131 .............■ Education expenditure* .131 ....08 8......130 .................06 5............05 5.....130 .........125 .....116 .........132 ....■ National savings rate*................................10 1.....123 ......................■ Burden of customs procedures .......07 5................112 ..■ 2..............128 .....131 .108 ....■ 4...........■ Strength of auditing and reporting standards ....................................75 ....124 ...88 .............................................115 .................128 ..........■ Tuberculosis incidence*........128 ....01 11....07 4............................101 ......................90 ............105 ................108 ...........116 ............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.05 2..............03 4.......................116 ......126 ...........................................04 7..........■ 10th pillar: Market size 10............................................................■ Company spending on R&D ...................................................■ Financing through local equity market.........03 5....115 ....................................117 .......................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.........................06 6.....07 11................... of procedures required to start a business* ......03 12....................■ Pay and productivity................■ Utility patents*..........■ Public trust of politicians..........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.....................122 .... 2.....................■ University-industry collaboration in R&D ..................■ Local availability of research and training services ....................06 1.........n/a Quality of port infrastructure ...............130 ..................08 6..........................................04 4..............................■ Available seat kilometers* ...................................................■ Primary enrollment* .......................................................■ Business impact of HIV/AIDS ..133 .................03 2............................06 2.....................04 5....114 ............................■ Agricultural policy costs .....85 ............................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.........03 7.08 1.....................87 .04 3.....131 ......■ Quality of scientific research institutions.........................................131 ..19 Property rights ...........■ Business impact of rules on FDI ................09 Cooperation in labor-employer relations .............■ Business costs of terrorism............................■ Business costs of crime and violence ..02 12..............06 7................02 2.........■ Total tax rate* ..........................119 ..........................08 7......................■ 12th pillar: Innovation * Hard data Note: For further details and explanation...............................................06 4.......129 ..................01 9.............■ Legal rights index*..........■ Efficiency of legal framework in challenging regs ................■ Local supplier quality .................................................110 ..................................127 ....................■ FDI and technology transfer ...

3.............................9 Tax regulations .................1 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......4 12th pillar: Innovation...........85 ...2................5 Factor driven Basic requirements... The bars in the figure show the responses weighted according to their rankings......................04 6...................................122 ..........2.0.............................6 Policy instability.........................52 ...................................3....7 Financial market sophistication Goods market efficiency Labor market efficiency Cambodia Factor-driven economies The most problematic factors for doing business Corruption........9 Inefficient government bureaucracy..............92 ....................4..........................1: Country/Economy Profiles Cambodia Key indicators GDP (PPP int'l $) per capita........................5....................4.......................................................................................8 Crime and theft ...107 ...........................112 .............7 GDP (US$ billions)........................................................ 2008....................................................2.............................6...............................................4 Inflation ......000 2.....2......2 GDP per capita (US$)...5 Transition 1–2 1 GCI 2008–2009 (out of 134)......................... 2008 ........4 4th pillar: Health and primary education .........3...1 GDP (PPP) as share (%) of world total.....................6......................8 9th pillar: Technological readiness...........................1.........8 6th pillar: Goods market efficiency.................8.103 .....3...7 10th pillar: Market size....109 ....3.4 Inadequately educated workforce..............6 Inadequate supply of infrastructure ....................2...............................101 ........2 Foreign currency regulations.. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...........................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010....3.4.............................3.......................................9 3rd pillar: Macroeconomic stability.5 2nd pillar: Infrastructure.....................................................................11...........................3...4 Restrictive labor regulations .......................110 ........94 .....0 7th pillar: Labor market efficiency ....... 2008..............................000 Cambodia East Asia and Pacific 4...................................................95 .............23........................................0...........................4 Tax rates ..2...................1 11th pillar: Business sophistication...................2.....92 .........9........................113 .......4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...........................................818...................................................5.....3......5 GCI 2007–2008 (out of 131)........ 1980–2008 Population (millions)......................3..3 Poor work ethic in national labor force ....2 Poor public health ..4........................107 .......3...........6 1st pillar: Institutions ..................2..3...107 ...........122 ............................. 2008 ......................................5 5th pillar: Higher education and training ...................................14...3 Access to financing ......17..2 Government instability/coups ......... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5....110 .5 8th pillar: Financial market sophistication...........................4 106 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....................................

19 Property rights ............. 2...............103 .............................71 ...................................■ 10.....09 4...............................■ Diversion of public funds .........13 ............75 .....05 6........................02 7...................................11 1....■ Business costs of crime and violence ...■ Company spending on R&D ...........................113 ....28 ..72 .............101 ..........................................55 .....11 Business impact of malaria.........07 1.........................■ Efficacy of corporate boards ............................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter......................................01 2.........■ Telephone lines* .55 ......14 1...........................■ Primary enrollment* .........■ Firing costs* ...■ Broadband Internet subscribers*......................01 Domestic market size index* ......73 ...106 ................................08 4......03 2..........................02 3...............................■ No....■ 11th pillar: Business sophistication 11..............114 ......■ Willingness to delegate authority .■ Infant mortality*..................■ Rigidity of employment*.■ Nature of competitive advantage ...........................■ Venture capital availability .......■ Effectiveness of anti-monopoly policy ................................03 1.........03 8.......127 .....01 6...92 ..............90 .......................................08 Availability of latest technologies.......................■ Mobile telephone subscriptions*.................09 1.......■ Degree of customer orientation ..................■ Legal rights index*...................................................75 .....04 6..........■ Local supplier quality ....120 ......................■ Firm-level technology absorption.■ Quality of math and science education .............................109 ........■ University-industry collaboration in R&D ...............04 4.100 .........77 ........................................06 4..15 Intensity of local competition ................09 Financial market sophistication.......02 8.......■ Quality of port infrastructure....................................72 .06 7....■ 8..............■ Time required to start a business* ......................04 8......................■ Burden of customs procedures ........................■ Extent of staff training ....................................121 .....■ Pay and productivity....06 12.■ Judicial independence ........■ Tertiary enrollment* ............■ Agricultural policy costs .....■ 4.................110 ...114 ...............102 ..........................13 6...................................................■ Wastefulness of government spending...........48 .......07 6.............................119 ......................■ National savings rate*..................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6......85 ..........■ Availability of scientists and engineers ......■ Life expectancy*..................................58 ...91 ...................05 Government surplus/deficit* ........05 2.........■ Business impact of rules on FDI .................................07 Capacity for innovation .........■ Reliance on professional management .........................84 ........ of procedures required to start a business* ....................03 6......05 7................129 .......■ Available seat kilometers* .................■ 7th pillar: Labor market efficiency 7...............89 .....■ Transparency of government policymaking ...........■ Prevalence of foreign ownership ....09 6..........05 9.....................69 ................107 ...■ Interest rate spread* ....................01 5........101 .........■ Soundness of banks .................125 ....................................■ Buyer sophistication ...................■ Protection of minority shareholders’ interests .■ Extent of market dominance .............................................114 ...120 ...............■ Reliability of police services........07 7............................■ Internet users* ..........08 7...01 11...106 .......................................108 .02 2......02 12.....................................................105 ..........................................93 .....................■ Quality of scientific research institutions............07 8...........106 ....................106 .........94 .................06 5...........78 ..............06 8............118 ...............■ Tariff barriers* .........................................■ Efficiency of legal framework in settling disputes.03 11.04 5......98 ............93 ...........02 9....■ Business impact of HIV/AIDS ...........................130 ...................................77 .....................................■ Personal computers* ..........13 1.........105 ...........■ Business costs of terrorism................................06 9........■ Regulation of securities exchanges .................■ Burden of government regulation...........10 1................06 1......■ Restriction on capital flows ........■ Efficiency of legal framework in challenging regs ......108 .....................07 9............................................................17 1..............77 ....109 ...........................11 6.........06 6.............07 11....81 ...........................■ Quality of roads..................36 ....47 ................................04 1.....50 ..........■ State of cluster development ..107 ......08 Secondary enrollment* ....................................49 ...............................................01 7...........................111 ..................................■ 10th pillar: Market size 10.........01 12..................65 .....■ Quality of electricity supply .........86 ...111 ......................................................114 ........88 ..07 5....114 ..............04 9...............04 7.56 .................................................................■ 2.09 Local supplier quantity ...................................05 12..■ Inflation* .............................15 1...............................08 6.....96 ................10 4...........................■ Business impact of tuberculosis.............10 6...................76 ..........................■ Hiring and firing practices ........■ Control of international distribution .........118 ..................03 9......■ Education expenditure* ..............06 2.....................04 3...................■ Extent and effect of taxation .....■ Quality of the educational system ........■ Quality of primary education..........■ Value chain breadth.........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.......■ Quality of air transport infrastructure................................................................................................................................02 11....■ Ethical behavior of firms .....94 ..............................................126 .........09 Cooperation in labor-employer relations ...03 5..■ Laws relating to ICT.................■ Internet access in schools ..................03 4....................92 ..............................■ Government debt*.........■ Flexibility of wage determination....03 7................■ Prevalence of trade barriers.58 ..................■ FDI and technology transfer ...................88 ..........................01 1.......■ Gov’t procurement of advanced tech products ............18 1...............89 ...92 ....06 11.......07 2.............................................................12 6............................71 ..............51 ................03 3..................5 ..................95 ........115 .......57 .05 8..............■ Public trust of politicians......05 4...............................125 .....12 1.............04 12............114 .02 1...............■ Malaria incidence* .08 Quality of overall infrastructure............113 ...............■ Intellectual property protection....................................................................................■ Strength of investor protection*.......05 11..101 ........14 6..105 ....59 ..............90 .......50 ...■ Tuberculosis incidence*.....■ Brain drain .07 4..............................................................■ Utility patents*.............01 8....05 5.................08 1.........72 ...........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..■ Organized crime...............................■ Female participation in labor force*.16 1......................■ Financing through local equity market...........120 ..................109 ........■ Quality of management schools .02 4...02 6...90 ....02 Foreign market size index*............■ 9th pillar: Technological readiness 9....01 3..............■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.....................01 4................................................■ 12.08 11..................................................107 ...02 5...■ Extent of marketing ................124 ..■ Production process sophistication ....................................111 .......05 1.......................................■ Quality of railroad infrastructure ....113 .....■ Ease of access to loans ..............01 9...................................82 ...........■ HIV prevalence*.......106 .............1: Country/Economy Profiles Cambodia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 107 ......124 ...............................04 2.......................................................98 ..........■ Strength of auditing and reporting standards .......................127 ..........................08 8..............■ 12th pillar: Innovation * Hard data Note: For further details and explanation...........................................................123 ............■ Favoritism in decisions of government officials .......■ Total tax rate* .....03 12.........112 ...............■ Local availability of research and training services ............04 11..

..................... 2008 ....104 .......120 ..............2.........500 1..........102 .....5 Tax rates ..............................2 9th pillar: Technological readiness....3................................122 .........................................4 Factor driven Basic requirements.................9 Poor public health ............................................................................................23.. 2008.......................2..................000 500 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010................................2...............500 Cameroon Sub-Saharan Africa 2......................................7 Inadequate supply of infrastructure ......................2 Restrictive labor regulations ..............89 .5 3rd pillar: Macroeconomic stability......2........................2 GDP (PPP) as share (%) of world total... The bars in the figure show the responses weighted according to their rankings...3........06 2....2 GDP per capita (US$)......................116 ....111 .............5 Government instability/coups .................118 ....................................3....9...............1.........8 6th pillar: Goods market efficiency..............................0 8th pillar: Financial market sophistication....1 Tax regulations ........4 12th pillar: Innovation.............................................9..........................................................................2........7 Inflation ....................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...2.............. 2008...5 GCI 2007–2008 (out of 131).....2 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...........................................................121 ....24......7 108 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.......7 1st pillar: Institutions .......................1 11th pillar: Business sophistication...............0.......106 ...............................000 1..............5 Transition 1–2 1 GCI 2008–2009 (out of 134)...................................................................3 Foreign currency regulations.........0....................4.............2.......9 Policy instability..................3.3.........3..34 ..........6 7th pillar: Labor market efficiency ....................1: Country/Economy Profiles Cameroon Key indicators GDP (PPP int'l $) per capita..........................................................12.......3..............3......18.........................112 .................4................199....................................1...............119 ........8 Financial market sophistication Goods market efficiency Labor market efficiency Cameroon Factor-driven economies The most problematic factors for doing business Access to financing ..... 1980–2008 Population (millions)....0...2 4th pillar: Health and primary education .1 Poor work ethic in national labor force ........................2 Inadequately educated workforce.119 ....7 10th pillar: Market size....106 ..............3................114 ..........0...................2.........................................1 Crime and theft ...7....2................ 2008 ............3.........3.............8 Corruption..........20..........2 Inefficient government bureaucracy... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .....111 ......................................3 5th pillar: Higher education and training .....2 2nd pillar: Infrastructure.............5............ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..........................................................................3....107 ......................9 GDP (US$ billions).....................................

.....................................07 2.........■ 12th pillar: Innovation * Hard data Note: For further details and explanation........127 .13 1........04 11....................15 ........................98 .........04 4.......126 .■ Quality of management schools .............................................03 12....96 ....................................111 ................■ Malaria incidence* .............■ Quality of electricity supply .....107 ........■ Quality of air transport infrastructure....05 6.........04 7........01 5...08 Secondary enrollment* ..............■ Strength of investor protection*...................■ Buyer sophistication ..116 .............................119 ...........................■ Telephone lines* .............................15 1....................................■ Utility patents*....110 ..............................108 ............109 .............117 .........70 ..01 4.............04 2.....115 ..109 ..................................03 3...............06 12...............................07 Capacity for innovation ..........................114 ............04 8.......■ Company spending on R&D ....................................57 ............................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5......................................60 ......................................■ Tariff barriers* ..........88 .............■ Organized crime........................................01 Domestic market size index* .....................77 ..........■ Availability of scientists and engineers ...........03 9....80 .................■ 4............................100 ...........................................................07 8.....................................■ Mobile telephone subscriptions*..05 7..........■ 12.......................................................... of procedures required to start a business* ....112 ......02 1.83 .....127 ..■ No.........................05 8.....................................04 9...■ Favoritism in decisions of government officials ........09 Local supplier quantity .........................02 11.....■ Effectiveness of anti-monopoly policy .....■ Government debt*..■ Extent of staff training .....................■ Strength of auditing and reporting standards ..■ Regulation of securities exchanges ..........................95 ..........01 8.....■ Life expectancy*.................103 ..11 6.....■ Laws relating to ICT.................■ 9th pillar: Technological readiness 10th pillar: Market size 10.................■ Quality of railroad infrastructure ...............■ Gov’t procurement of advanced tech products .............■ Extent and effect of taxation ....................■ Quality of the educational system ................09 Financial market sophistication....................95 .............02 4.....................................01 12......■ Firm-level technology absorption................115 ................■ Control of international distribution ..08 4.....90 .........■ National savings rate*.01 6.....................■ Broadband Internet subscribers*....06 2........................■ Public trust of politicians.................93 ..........................■ Legal rights index*....................■ Flexibility of wage determination.........■ Available seat kilometers* .... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..................115 ...........14 6.........16 ......................122 ..........104 .........................................................02 12...................................99 .......121 ........................03 11..............................11 1..................................................10 4...........■ Transparency of government policymaking ......................................■ Time required to start a business* .......■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...............................................75 ....................■ Tuberculosis incidence*..04 6.........39 ......................................■ Wastefulness of government spending..............■ Quality of roads.■ Brain drain .......................................92 .....122 ......................07 9..14 1......................■ Quality of scientific research institutions...............102 ......................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...............13 6.......................06 7.................■ 11th pillar: Business sophistication 11..................................08 7...■ Protection of minority shareholders’ interests ......■ Firing costs* ................................................................105 ..115 ......................09 6...............................................109 ...05 Government surplus/deficit* ...■ Hiring and firing practices .............07 4..................04 12.....................■ Reliance on professional management .......125 .......................................................111 .05 9.............01 2.1: Country/Economy Profiles Cameroon The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 109 ..■ Financing through local equity market....129 .... 2...................123 ...............................................................................03 1.06 8......04 5.05 4.............04 3..................05 2........92 .....12 1.06 11.............86 ...............84 .95 ...........88 .........................■ HIV prevalence*..............■ Efficiency of legal framework in challenging regs ...115 .■ Extent of marketing ...........82 .06 6................79 ............■ Judicial independence ..■ Extent of market dominance ....16 1............98 .97 ........................................................................................■ Ethical behavior of firms ......■ University-industry collaboration in R&D .......09 4.............................■ Internet access in schools ...■ Willingness to delegate authority .95 .............08 Availability of latest technologies.........110 ......71 ....................119 .......09 1..95 ...08 Quality of overall infrastructure......15 Intensity of local competition .07 5.■ Business impact of HIV/AIDS .....................................41 ..07 1....05 5..114 .......■ 7th pillar: Labor market efficiency 7...................■ Pay and productivity....................................01 3..............................■ Value chain breadth.......................■ Primary enrollment* ...........103 ............................................08 11....11 Business impact of malaria.............115 ......................................................121 .111 ..123 .............■ Reliability of police services.....91 ...117 ..61 ................■ Agricultural policy costs ......96 ..........................................■ Quality of primary education......................................................02 2.....................■ 9........06 9...08 8.....03 5................■ Business impact of rules on FDI .....■ 10......................................■ Business costs of terrorism.......■ Nature of competitive advantage ..........................128 ......124 ....■ Production process sophistication ...........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6....■ Quality of port infrastructure ........03 8...................................107 ..........■ Venture capital availability ..........■ 8...■ 2......05 12......■ Interest rate spread* ..........02 8............87 .......................■ Tertiary enrollment* ....17 1.......................................01 7......■ Prevalence of trade barriers.............102 ................................................................................................■ State of cluster development ..............................112 ...........................■ Education expenditure* ................■ Business impact of tuberculosis....................................02 6.............89 .111 ..■ Efficacy of corporate boards .....103 ..115 ........................■ Local supplier quality .....106 ..106 .........................06 1...07 11..........................08 1....04 1.......................................................10 1.........................■ Total tax rate* ..99 .......■ Female participation in labor force*............■ Restriction on capital flows ....122 ....113 ..........02 9..........................................■ Infant mortality*........................06 4.126 .......12 6.83 .■ Degree of customer orientation ...................■ Personal computers* ....08 6........■ Intellectual property protection............................87 .......................03 6......■ Soundness of banks .......07 6........05 1......78 ..............90 ...................05 11......■ Inflation* .................03 7..........19 Property rights ...............................................................102 .............73 ....03 2..............................01 1.84 .06 5...............02 7..............................52 ....................■ Quality of math and science education ....................■ FDI and technology transfer ......■ Rigidity of employment*.125 .....................................01 9.........18 1.....47 ...07 7...111 ....119 ...........................................■ Prevalence of foreign ownership .........■ Internet users* .................76 ...10 6...■ Burden of government regulation.....■ Efficiency of legal framework in settling disputes.......................03 4.............................126 ..02 Foreign market size index*..................................116 ......................■ Local availability of research and training services ...■ Business costs of crime and violence .............02 3......105 ..........96 ..............88 ........01 11.........■ Diversion of public funds ...............................■ Ease of access to loans .................................■ Burden of customs procedures ......................02 5...........................09 Cooperation in labor-employer relations .......

............. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ..............................5......12 .....................45.....14 ..4 8th pillar: Financial market sophistication...............0 Policy instability.....0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors........1: Country/Economy Profiles Canada Key indicators GDP (PPP int'l $) per capita...........9 ....................0 11th pillar: Business sophistication..9 3rd pillar: Macroeconomic stability.................5.........3 Transition 1–2 1 GCI 2008–2009 (out of 134).........0.......8 Tax regulations ..................13.......5....... 1980–2008 Population (millions).................................................4....................5.511.......428.....5 2nd pillar: Infrastructure.....12......................2 4th pillar: Health and primary education ................ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...............17 ...........................2 9th pillar: Technological readiness....2... The bars in the figure show the responses weighted according to their rankings.....................................13 .............12........2 GDP (PPP) as share (%) of world total..............5.........6 Crime and theft ....000 Canada OECD 30..................................................................................................................................1.............5.5...........5...................................3 Inefficient government bureaucracy...................5 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .........................4.......000 10.......................................................7 Inadequately educated workforce.................................................5 6th pillar: Goods market efficiency..3 Factor driven Basic requirements................16 .....................2 GDP (US$ billions)...................10 .....17 ..........0.............................7 ............11 ..............................11 ..............6 10th pillar: Market size............000 20.............1 Corruption.................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..................................6 Foreign currency regulations..........4 5th pillar: Higher education and training ............................6.......6 Inflation ..................5 Government instability/coups ..............89 40.5...............1........7 Restrictive labor regulations ...... 2008....4 GCI 2007–2008 (out of 131)....5........4....................................................................1 7th pillar: Labor market efficiency ...............22................................................................................33.......................10 ..............4 .5...7 ..........................3.....................5.......................................8 Financial market sophistication Goods market efficiency Labor market efficiency Canada Innovation-driven economies The most problematic factors for doing business Access to financing ..................7 1st pillar: Institutions .....6........................ 2008 ....................31 ...................1 12th pillar: Innovation.....5......5....6 Tax rates .........3 Inadequate supply of infrastructure .............7 ................0...1...3 110 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers............12 ...0 GDP per capita (US$)..........9 ..... 2008 .....1 Poor work ethic in national labor force ........................................................1........................................16..............0............... 2008................5................5..2 Poor public health .............................

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights .............................................................12 ........■
Intellectual property protection....................................18 ........■
Diversion of public funds .............................................19 ........■
Public trust of politicians..............................................23 ........■
Judicial independence .................................................11 ........■
Favoritism in decisions of government officials ..........15 ........■
Wastefulness of government spending.......................29 ........■
Burden of government regulation................................42 ........■
Efficiency of legal framework in settling disputes.......16 ........■
Efficiency of legal framework in challenging regs .......16 ........■
Transparency of government policymaking .................14 ........■
Business costs of terrorism.........................................74 ........■
Business costs of crime and violence .........................38 ........■
Organized crime...........................................................40 ........■
Reliability of police services.........................................11 ........■
Ethical behavior of firms ..............................................10 ........■
Strength of auditing and reporting standards ................7 ........■
Efficacy of corporate boards ..........................................4 ........■
Protection of minority shareholders’ interests ..............8 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure....................................13 ........■
Quality of roads............................................................21 ........■
Quality of railroad infrastructure ..................................15 ........■
Quality of port infrastructure........................................14 ........■
Quality of air transport infrastructure...........................25 ........■
Available seat kilometers* .............................................9 ........■
Quality of electricity supply .........................................15 ........■
Telephone lines* ..........................................................10 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .......................................39 ........■
National savings rate*..................................................58 ........■
Inflation* ........................................................................3 ........■
Interest rate spread* ...................................................28 ........■
Government debt*.....................................................108 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria............................................1 ........■
Malaria incidence* .........................................................1 ........■
Business impact of tuberculosis..................................16 ........■
Tuberculosis incidence*.................................................5 ........■
Business impact of HIV/AIDS ......................................29 ........■
HIV prevalence*...........................................................74 ........■
Infant mortality*...........................................................26 ........■
Life expectancy*............................................................7 ........■
Quality of primary education........................................10 ........■
Primary enrollment* ......................................................7 ........■
Education expenditure* ...............................................47 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ......................................24 ........■
Extent of market dominance .......................................13 ........■
Effectiveness of anti-monopoly policy .........................19 ........■
Extent and effect of taxation .......................................65 ........■
Total tax rate* ..............................................................75 ........■
No. of procedures required to start a business* ...........1 ........■
Time required to start a business* ................................6 ........■
Agricultural policy costs ...............................................41 ........■
Prevalence of trade barriers.........................................45 ........■
Tariff barriers* ..............................................................36 ........■
Prevalence of foreign ownership .................................22 ........■
Business impact of rules on FDI .................................51 ........■
Burden of customs procedures ...................................31 ........■
Degree of customer orientation ..................................18 ........■
Buyer sophistication ....................................................14 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ......................31 ........■
Flexibility of wage determination.................................29 ........■
Rigidity of employment*................................................7 ........■
Hiring and firing practices ............................................21 ........■
Firing costs* ................................................................52 ........■
Pay and productivity.....................................................26 ........■
Reliance on professional management .........................9 ........■
Brain drain ....................................................................14 ........■
Female participation in labor force*.............................22 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication......................................3 ........■
Financing through local equity market.........................17 ........■
Ease of access to loans ...............................................25 ........■
Venture capital availability ............................................18 ........■
Restriction on capital flows .........................................37 ........■
Strength of investor protection*....................................5 ........■
Soundness of banks ......................................................1 ........■
Regulation of securities exchanges .............................21 ........■
Legal rights index*.......................................................58 ........■

9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies...................................9 ........■
Firm-level technology absorption.................................21 ........■
Laws relating to ICT.....................................................12 ........■
FDI and technology transfer ..........................................9 ........■
Mobile telephone subscriptions*.................................92 ........■
Internet users* ............................................................12 ........■
Personal computers* .....................................................1 ........■
Broadband Internet subscribers*.................................10 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ................................................21 ........■
Tertiary enrollment* .....................................................25 ........■
Quality of the educational system .................................5 ........■
Quality of math and science education .......................14 ........■
Quality of management schools ....................................2 ........■
Internet access in schools ...........................................12 ........■
Local availability of research and training services ......11 ........■
Extent of staff training .................................................12 ........■

9th pillar: Technological readiness

10th pillar: Market size
10.01 Domestic market size index* ......................................14 ........■
10.02 Foreign market size index*..........................................15 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................17 ........■
Local supplier quality .....................................................8 ........■
State of cluster development ........................................8 ........■
Nature of competitive advantage ................................48 ........■
Value chain breadth......................................................38 ........■
Control of international distribution .............................33 ........■
Production process sophistication ...............................20 ........■
Extent of marketing .....................................................10 ........■
Willingness to delegate authority ................................10 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ................................................20 ........■
Quality of scientific research institutions.....................11 ........■
Company spending on R&D ........................................22 ........■
University-industry collaboration in R&D .......................9 ........■
Gov’t procurement of advanced tech products ...........25 ........■
Availability of scientists and engineers ..........................6 ........■
Utility patents*.............................................................10 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

Canada

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

111

2.1: Country/Economy Profiles

Chad
Key indicators

GDP (PPP int'l $) per capita, 1980–2008

Population (millions), 2008.......................................11.1
GDP (US$ billions), 2008.............................................8.4
GDP per capita (US$), 2008 ...................................862.3
GDP (PPP) as share (%) of world total, 2008 .......0.02

2,000

Chad

Sub-Saharan Africa

1,500
1,000
500
0

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index
Rank
(out of 133)

Stage of development

Score
(1–7)

GCI 2009–2010.......................................................131 ......2.9

Transition
1–2

1

GCI 2008–2009 (out of 134)................................................134 ........2.8
GCI 2007–2008 (out of 131)................................................131 ........2.8

Factor
driven

Basic requirements...........................................................131 ........2.9
1st pillar: Institutions .........................................................131 ........2.7
2nd pillar: Infrastructure...................................................133 ........1.9
3rd pillar: Macroeconomic stability..................................82 ........4.5
4th pillar: Health and primary education .......................133 ........2.6

112

2

Transition
2–3

3

Efficiency
driven

Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers........................................................131 ........2.8
5th pillar: Higher education and training .......................133 ........2.2
6th pillar: Goods market efficiency.................................133 ........2.9
7th pillar: Labor market efficiency ..................................102 ........4.0
8th pillar: Financial market sophistication.....................131 ........2.8
9th pillar: Technological readiness.................................127 ........2.4
10th pillar: Market size......................................................116 ........2.5

Infrastructure
Macroeconomic
stability

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ..........................126 ........2.8
11th pillar: Business sophistication................................129 ........3.1
12th pillar: Innovation........................................................120 ........2.6

Financial market
sophistication

Goods market
efficiency
Labor market efficiency

Chad

Factor-driven economies

The most problematic factors for doing business
Corruption.......................................................................19.6
Access to financing ......................................................16.3
Government instability/coups .......................................9.8
Tax regulations ................................................................8.8
Inadequate supply of infrastructure ............................8.0
Policy instability...............................................................8.0
Tax rates ...........................................................................6.5
Crime and theft ................................................................5.3
Inadequately educated workforce...............................4.8
Inefficient government bureaucracy...........................3.3
Poor work ethic in national labor force ......................2.6
Inflation .............................................................................2.5
Restrictive labor regulations .........................................2.0
Poor public health ...........................................................2.0
Foreign currency regulations........................................0.4
0

5

10

15

20

25

Percent of responses
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country/economy and to rank them
between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights ...........................................................130 ........■
Intellectual property protection..................................127 ........■
Diversion of public funds ...........................................132 ........■
Public trust of politicians............................................110 ........■
Judicial independence ...............................................125 ........■
Favoritism in decisions of government officials ........116 ........■
Wastefulness of government spending.....................124 ........■
Burden of government regulation................................79 ........■
Efficiency of legal framework in settling disputes.....113 ........■
Efficiency of legal framework in challenging regs .....107 ........■
Transparency of government policymaking ...............129 ........■
Business costs of terrorism.......................................115 ........■
Business costs of crime and violence .......................113 ........■
Organized crime.........................................................126 ........■
Reliability of police services.......................................128 ........■
Ethical behavior of firms ............................................126 ........■
Strength of auditing and reporting standards ............133 ........■
Efficacy of corporate boards ......................................129 ........■
Protection of minority shareholders’ interests ..........114 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure..................................131 ........■
Quality of roads..........................................................128 ........■
Quality of railroad infrastructure..................................n/a
Quality of port infrastructure .....................................125 ........■
Quality of air transport infrastructure.........................130 ........■
Available seat kilometers* .........................................126 ........■
Quality of electricity supply .......................................132 ........■
Telephone lines* ........................................................130 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .........................................9 ........■
National savings rate*................................................128 ........■
Inflation* ......................................................................66 ........■
Interest rate spread* .................................................111 ........■
Government debt*.......................................................58 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria........................................129 ........■
Malaria incidence* .....................................................129 ........■
Business impact of tuberculosis................................123 ........■
Tuberculosis incidence*.............................................115 ........■
Business impact of HIV/AIDS ....................................124 ........■
HIV prevalence*.........................................................120 ........■
Infant mortality*.........................................................133 ........■
Life expectancy*........................................................130 ........■
Quality of primary education......................................122 ........■
Primary enrollment* ..................................................129 ........■
Education expenditure* .............................................126 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ....................................133 ........■
Extent of market dominance .....................................117 ........■
Effectiveness of anti-monopoly policy .......................126 ........■
Extent and effect of taxation .....................................117 ........■
Total tax rate* ............................................................110 ........■
No. of procedures required to start a business* .......129 ........■
Time required to start a business* ............................120 ........■
Agricultural policy costs .............................................111 ........■
Prevalence of trade barriers.......................................129 ........■
Tariff barriers* ............................................................124 ........■
Prevalence of foreign ownership ...............................128 ........■
Business impact of rules on FDI ...............................129 ........■
Burden of customs procedures .................................132 ........■
Degree of customer orientation ................................130 ........■
Buyer sophistication ..................................................132 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ....................130 ........■
Flexibility of wage determination.................................49 ........■
Rigidity of employment*..............................................96 ........■
Hiring and firing practices ............................................71 ........■
Firing costs* ................................................................66 ........■
Pay and productivity...................................................115 ........■
Reliance on professional management .....................133 ........■
Brain drain ..................................................................119 ........■
Female participation in labor force*.............................10 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication..................................129 ........■
Financing through local equity market.......................127 ........■
Ease of access to loans .............................................127 ........■
Venture capital availability ..........................................123 ........■
Restriction on capital flows .......................................130 ........■
Strength of investor protection*................................100 ........■
Soundness of banks ..................................................124 ........■
Regulation of securities exchanges ...........................129 ........■
Legal rights index*.......................................................98 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ..............................................130 ........■
Tertiary enrollment* ...................................................131 ........■
Quality of the educational system .............................109 ........■
Quality of math and science education .....................110 ........■
Quality of management schools ................................124 ........■
Internet access in schools .........................................131 ........■
Local availability of research and training services ....127 ........■
Extent of staff training ...............................................130 ........■

9th pillar: Technological readiness
9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies...............................131 ........■
Firm-level technology absorption...............................128 ........■
Laws relating to ICT...................................................112 ........■
FDI and technology transfer ......................................130 ........■
Mobile telephone subscriptions*...............................126 ........■
Internet users* ..........................................................125 ........■
Personal computers* .................................................128 ........■
Broadband Internet subscribers*................................n/a

10th pillar: Market size
10.01 Domestic market size index* ....................................120 ........■
10.02 Foreign market size index*........................................100 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................97 ........■
Local supplier quality .................................................132 ........■
State of cluster development ....................................120 ........■
Nature of competitive advantage ................................86 ........■
Value chain breadth......................................................97 ........■
Control of international distribution ...........................129 ........■
Production process sophistication .............................133 ........■
Extent of marketing ...................................................132 ........■
Willingness to delegate authority ..............................129 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ..............................................111 ........■
Quality of scientific research institutions...................122 ........■
Company spending on R&D ........................................91 ........■
University-industry collaboration in R&D ...................119 ........■
Gov’t procurement of advanced tech products .........107 ........■
Availability of scientists and engineers ......................114 ........■
Utility patents*.............................................................84 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

Chad

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

113

2.1: Country/Economy Profiles

Chile
Key indicators

GDP (PPP int'l $) per capita, 1980–2008

Population (millions), 2008.......................................16.8
GDP (US$ billions), 2008.........................................169.6
GDP per capita (US$), 2008 ..............................10,123.8
GDP (PPP) as share (%) of world total, 2008 .......0.36

15,000

Chile

Latin America and Caribbean

10,000

5,000

0

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index
Rank
(out of 133)

Stage of development

Score
(1–7)

GCI 2009–2010.........................................................30 ......4.7

Transition
1–2

1

GCI 2008–2009 (out of 134)..................................................28 ........4.7
GCI 2007–2008 (out of 131)..................................................26 ........4.8

Factor
driven

Basic requirements.............................................................32 ........5.1
1st pillar: Institutions ...........................................................35 ........4.8
2nd pillar: Infrastructure.....................................................30 ........4.9
3rd pillar: Macroeconomic stability..................................19 ........5.5
4th pillar: Health and primary education .........................69 ........5.4

114

2

Transition
2–3

Efficiency
driven

3
Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers..........................................................33 ........4.6
5th pillar: Higher education and training .........................45 ........4.4
6th pillar: Goods market efficiency...................................26 ........4.8
7th pillar: Labor market efficiency ....................................41 ........4.7
8th pillar: Financial market sophistication.......................32 ........4.7
9th pillar: Technological readiness...................................42 ........4.3
10th pillar: Market size........................................................44 ........4.4

Infrastructure
Macroeconomic
stability

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ............................43 ........4.0
11th pillar: Business sophistication..................................39 ........4.5
12th pillar: Innovation..........................................................49 ........3.4

Financial market
sophistication

Goods market
efficiency
Labor market efficiency

Chile

Economies in transition from 2 to 3

The most problematic factors for doing business
Restrictive labor regulations .......................................28.9
Inefficient government bureaucracy.........................20.9
Inadequately educated workforce.............................13.0
Tax regulations ................................................................8.2
Access to financing ........................................................6.4
Tax rates ...........................................................................5.7
Poor work ethic in national labor force ......................4.1
Inadequate supply of infrastructure ............................3.5
Corruption.........................................................................3.5
Crime and theft ................................................................1.9
Poor public health ...........................................................1.4
Inflation .............................................................................1.3
Foreign currency regulations........................................1.1
Policy instability...............................................................0.0
Government instability/coups .......................................0.0
0

5

10

15

20

25

Percent of responses
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country/economy and to rank them
between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights .............................................................31 ........■
Intellectual property protection....................................65 ........■
Diversion of public funds .............................................52 ........■
Public trust of politicians..............................................47 ........■
Judicial independence .................................................43 ........■
Favoritism in decisions of government officials ..........41 ........■
Wastefulness of government spending.......................40 ........■
Burden of government regulation................................41 ........■
Efficiency of legal framework in settling disputes.......26 ........■
Efficiency of legal framework in challenging regs .......29 ........■
Transparency of government policymaking .................18 ........■
Business costs of terrorism.........................................25 ........■
Business costs of crime and violence .........................80 ........■
Organized crime...........................................................29 ........■
Reliability of police services.........................................10 ........■
Ethical behavior of firms ..............................................21 ........■
Strength of auditing and reporting standards ..............24 ........■
Efficacy of corporate boards ........................................11 ........■
Protection of minority shareholders’ interests ............29 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure....................................23 ........■
Quality of roads............................................................15 ........■
Quality of railroad infrastructure ..................................76 ........■
Quality of port infrastructure........................................27 ........■
Quality of air transport infrastructure...........................19 ........■
Available seat kilometers* ...........................................40 ........■
Quality of electricity supply .........................................37 ........■
Telephone lines* ..........................................................62 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .......................................16 ........■
National savings rate*..................................................62 ........■
Inflation* ......................................................................72 ........■
Interest rate spread* ...................................................70 ........■
Government debt*.........................................................6 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria............................................1 ........■
Malaria incidence* .........................................................1 ........■
Business impact of tuberculosis..................................20 ........■
Tuberculosis incidence*...............................................24 ........■
Business impact of HIV/AIDS ......................................35 ........■
HIV prevalence*...........................................................69 ........■
Infant mortality*...........................................................41 ........■
Life expectancy*..........................................................30 ........■
Quality of primary education......................................118 ........■
Primary enrollment* ....................................................61 ........■
Education expenditure* ...............................................93 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ......................................23 ........■
Extent of market dominance .......................................63 ........■
Effectiveness of anti-monopoly policy .........................28 ........■
Extent and effect of taxation .......................................42 ........■
Total tax rate* ..............................................................16 ........■
No. of procedures required to start a business* .........75 ........■
Time required to start a business* ..............................75 ........■
Agricultural policy costs .................................................4 ........■
Prevalence of trade barriers...........................................2 ........■
Tariff barriers* ..............................................................54 ........■
Prevalence of foreign ownership ...................................7 ........■
Business impact of rules on FDI .................................15 ........■
Burden of customs procedures .....................................5 ........■
Degree of customer orientation ..................................47 ........■
Buyer sophistication ....................................................26 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ......................52 ........■
Flexibility of wage determination.................................20 ........■
Rigidity of employment*..............................................35 ........■
Hiring and firing practices ............................................98 ........■
Firing costs* ................................................................81 ........■
Pay and productivity.....................................................34 ........■
Reliance on professional management .......................23 ........■
Brain drain ......................................................................8 ........■
Female participation in labor force*...........................108 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication....................................20 ........■
Financing through local equity market.........................14 ........■
Ease of access to loans ...............................................27 ........■
Venture capital availability ............................................30 ........■
Restriction on capital flows .........................................23 ........■
Strength of investor protection*..................................31 ........■
Soundness of banks ......................................................4 ........■
Regulation of securities exchanges .............................58 ........■
Legal rights index*.......................................................83 ........■

9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies.................................32 ........■
Firm-level technology absorption.................................31 ........■
Laws relating to ICT.....................................................27 ........■
FDI and technology transfer ........................................21 ........■
Mobile telephone subscriptions*.................................67 ........■
Internet users* ............................................................53 ........■
Personal computers* ...................................................37 ........■
Broadband Internet subscribers*.................................47 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ................................................57 ........■
Tertiary enrollment* .....................................................38 ........■
Quality of the educational system .............................107 ........■
Quality of math and science education .....................116 ........■
Quality of management schools ..................................17 ........■
Internet access in schools ...........................................38 ........■
Local availability of research and training services ......41 ........■
Extent of staff training .................................................39 ........■

9th pillar: Technological readiness

10th pillar: Market size
10.01 Domestic market size index* ......................................45 ........■
10.02 Foreign market size index*..........................................45 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................31 ........■
Local supplier quality ...................................................26 ........■
State of cluster development ......................................45 ........■
Nature of competitive advantage ................................90 ........■
Value chain breadth......................................................60 ........■
Control of international distribution .............................30 ........■
Production process sophistication ...............................34 ........■
Extent of marketing .....................................................20 ........■
Willingness to delegate authority ................................48 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ................................................60 ........■
Quality of scientific research institutions.....................57 ........■
Company spending on R&D ........................................56 ........■
University-industry collaboration in R&D .....................41 ........■
Gov’t procurement of advanced tech products ...........54 ........■
Availability of scientists and engineers ........................23 ........■
Utility patents*.............................................................54 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

Chile

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

115

2.1: Country/Economy Profiles

China
Key indicators

GDP (PPP int'l $) per capita, 1980–2008

Population (millions), 2008..................................1,336.3
GDP (US$ billions), 2008......................................4,401.6
GDP per capita (US$), 2008 ................................3,315.3
GDP (PPP) as share (%) of world total, 2008 .....11.40

6,000

China

East Asia and Pacific

4,000

2,000

0

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index
Rank
(out of 133)

Stage of development

Score
(1–7)

GCI 2009–2010.........................................................29 ......4.7

Transition
1–2

1

GCI 2008–2009 (out of 134)..................................................30 ........4.7
GCI 2007–2008 (out of 131)..................................................34 ........4.6

Factor
driven

Basic requirements.............................................................36 ........5.1
1st pillar: Institutions ...........................................................48 ........4.4
2nd pillar: Infrastructure.....................................................46 ........4.3
3rd pillar: Macroeconomic stability....................................8 ........5.9
4th pillar: Health and primary education .........................45 ........5.7

116

2

Transition
2–3

3

Efficiency
driven

Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers..........................................................32 ........4.6
5th pillar: Higher education and training .........................61 ........4.1
6th pillar: Goods market efficiency...................................42 ........4.5
7th pillar: Labor market efficiency ....................................32 ........4.7
8th pillar: Financial market sophistication.......................81 ........4.1
9th pillar: Technological readiness...................................79 ........3.4
10th pillar: Market size..........................................................2 ........6.6

Infrastructure
Macroeconomic
stability

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ............................29 ........4.2
11th pillar: Business sophistication..................................38 ........4.5
12th pillar: Innovation..........................................................26 ........3.9

Financial market
sophistication

Goods market
efficiency
Labor market efficiency

China

Efficiency-driven economies

The most problematic factors for doing business
Access to financing ......................................................16.8
Inefficient government bureaucracy.........................11.1
Tax regulations ................................................................9.6
Policy instability...............................................................9.3
Inadequate supply of infrastructure ............................8.5
Corruption.........................................................................7.4
Inadequately educated workforce...............................7.3
Tax rates ...........................................................................7.1
Inflation .............................................................................5.8
Restrictive labor regulations .........................................5.4
Poor work ethic in national labor force ......................5.2
Foreign currency regulations........................................3.6
Government instability/coups .......................................1.3
Poor public health ...........................................................0.9
Crime and theft ................................................................0.7
0

5

10

15

20

25

Percent of responses
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country/economy and to rank them
between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights .............................................................39 ........■
Intellectual property protection....................................45 ........■
Diversion of public funds .............................................55 ........■
Public trust of politicians..............................................26 ........■
Judicial independence .................................................62 ........■
Favoritism in decisions of government officials ..........35 ........■
Wastefulness of government spending.......................35 ........■
Burden of government regulation................................21 ........■
Efficiency of legal framework in settling disputes.......43 ........■
Efficiency of legal framework in challenging regs .......57 ........■
Transparency of government policymaking .................32 ........■
Business costs of terrorism.........................................66 ........■
Business costs of crime and violence .........................43 ........■
Organized crime...........................................................71 ........■
Reliability of police services.........................................49 ........■
Ethical behavior of firms ..............................................54 ........■
Strength of auditing and reporting standards ..............72 ........■
Efficacy of corporate boards ........................................92 ........■
Protection of minority shareholders’ interests ............71 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure....................................66 ........■
Quality of roads............................................................50 ........■
Quality of railroad infrastructure ..................................27 ........■
Quality of port infrastructure........................................61 ........■
Quality of air transport infrastructure...........................80 ........■
Available seat kilometers* .............................................2 ........■
Quality of electricity supply .........................................61 ........■
Telephone lines* ..........................................................49 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .......................................56 ........■
National savings rate*....................................................7 ........■
Inflation* ......................................................................46 ........■
Interest rate spread* ...................................................25 ........■
Government debt*.......................................................20 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria..........................................78 ........■
Malaria incidence* .......................................................78 ........■
Business impact of tuberculosis..................................70 ........■
Tuberculosis incidence*...............................................86 ........■
Business impact of HIV/AIDS ......................................49 ........■
HIV prevalence*...........................................................15 ........■
Infant mortality*...........................................................73 ........■
Life expectancy*..........................................................53 ........■
Quality of primary education........................................32 ........■
Primary enrollment* ......................................................6 ........■
Education expenditure* .............................................123 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ......................................13 ........■
Extent of market dominance .......................................26 ........■
Effectiveness of anti-monopoly policy .........................50 ........■
Extent and effect of taxation .......................................32 ........■
Total tax rate* ............................................................124 ........■
No. of procedures required to start a business* .......117 ........■
Time required to start a business* ..............................99 ........■
Agricultural policy costs .................................................6 ........■
Prevalence of trade barriers.........................................69 ........■
Tariff barriers* ............................................................120 ........■
Prevalence of foreign ownership .................................98 ........■
Business impact of rules on FDI .................................23 ........■
Burden of customs procedures ...................................41 ........■
Degree of customer orientation ..................................71 ........■
Buyer sophistication ....................................................13 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ......................60 ........■
Flexibility of wage determination.................................53 ........■
Rigidity of employment*..............................................43 ........■
Hiring and firing practices ............................................77 ........■
Firing costs* ..............................................................109 ........■
Pay and productivity.....................................................12 ........■
Reliance on professional management .......................46 ........■
Brain drain ....................................................................39 ........■
Female participation in labor force*.............................20 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication....................................78 ........■
Financing through local equity market.........................66 ........■
Ease of access to loans ...............................................89 ........■
Venture capital availability ............................................38 ........■
Restriction on capital flows .......................................125 ........■
Strength of investor protection*..................................71 ........■
Soundness of banks ....................................................66 ........■
Regulation of securities exchanges .............................91 ........■
Legal rights index*.......................................................58 ........■

9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies.................................87 ........■
Firm-level technology absorption.................................47 ........■
Laws relating to ICT.....................................................48 ........■
FDI and technology transfer ........................................77 ........■
Mobile telephone subscriptions*...............................104 ........■
Internet users* ............................................................72 ........■
Personal computers* ...................................................81 ........■
Broadband Internet subscribers*.................................52 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ................................................89 ........■
Tertiary enrollment* .....................................................80 ........■
Quality of the educational system ...............................52 ........■
Quality of math and science education .......................35 ........■
Quality of management schools ..................................72 ........■
Internet access in schools ...........................................23 ........■
Local availability of research and training services ......47 ........■
Extent of staff training .................................................50 ........■

9th pillar: Technological readiness

10th pillar: Market size
10.01 Domestic market size index* ........................................2 ........■
10.02 Foreign market size index*............................................1 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................11 ........■
Local supplier quality ...................................................53 ........■
State of cluster development ......................................16 ........■
Nature of competitive advantage ................................61 ........■
Value chain breadth......................................................46 ........■
Control of international distribution .............................45 ........■
Production process sophistication ...............................50 ........■
Extent of marketing .....................................................46 ........■
Willingness to delegate authority ................................65 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ................................................22 ........■
Quality of scientific research institutions.....................35 ........■
Company spending on R&D ........................................23 ........■
University-industry collaboration in R&D .....................23 ........■
Gov’t procurement of advanced tech products ...........13 ........■
Availability of scientists and engineers ........................36 ........■
Utility patents*.............................................................50 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

China

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

117

2.1: Country/Economy Profiles

Colombia
Key indicators

GDP (PPP int'l $) per capita, 1980–2008

Population (millions), 2008.......................................46.7
GDP (US$ billions), 2008.........................................240.7
GDP per capita (US$), 2008 ................................4,985.2
GDP (PPP) as share (%) of world total, 2008 .......0.58

10,000

Colombia

Latin America and Caribbean

8,000
6,000
4,000
2,000

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index
Rank
(out of 133)

Stage of development

Score
(1–7)

GCI 2009–2010.........................................................69 ......4.1

Transition
1–2

1

GCI 2008–2009 (out of 134)..................................................74 ........4.0
GCI 2007–2008 (out of 131)..................................................69 ........4.0

Factor
driven

Basic requirements.............................................................83 ........4.1
1st pillar: Institutions .........................................................101 ........3.4
2nd pillar: Infrastructure.....................................................83 ........3.2
3rd pillar: Macroeconomic stability..................................72 ........4.6
4th pillar: Health and primary education .........................72 ........5.3

118

2

Transition
2–3

Efficiency
driven

3
Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers..........................................................64 ........4.1
5th pillar: Higher education and training .........................71 ........3.9
6th pillar: Goods market efficiency...................................88 ........4.0
7th pillar: Labor market efficiency ....................................78 ........4.3
8th pillar: Financial market sophistication.......................78 ........4.1
9th pillar: Technological readiness...................................66 ........3.6
10th pillar: Market size........................................................31 ........4.6

Infrastructure
Macroeconomic
stability

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ............................62 ........3.7
11th pillar: Business sophistication..................................60 ........4.2
12th pillar: Innovation..........................................................63 ........3.2

Financial market
sophistication

Goods market
efficiency
Labor market efficiency

Colombia

Efficiency-driven economies

The most problematic factors for doing business
Corruption.......................................................................12.4
Access to financing ......................................................12.3
Tax rates .........................................................................10.3
Inefficient government bureaucracy.........................10.1
Tax regulations ................................................................9.3
Inadequate supply of infrastructure ............................7.8
Restrictive labor regulations .........................................7.8
Inflation .............................................................................6.7
Policy instability...............................................................5.1
Inadequately educated workforce...............................4.5
Crime and theft ................................................................3.7
Poor work ethic in national labor force ......................3.7
Foreign currency regulations........................................3.6
Government instability/coups .......................................1.5
Poor public health ...........................................................1.2
0

5

10

15

20

25

Percent of responses
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country/economy and to rank them
between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

■ Competitive Advantage

RANK/133

INDICATOR

1st pillar: Institutions
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19

Property rights .............................................................83 ........■
Intellectual property protection....................................94 ........■
Diversion of public funds .............................................99 ........■
Public trust of politicians..............................................88 ........■
Judicial independence .................................................76 ........■
Favoritism in decisions of government officials ........111 ........■
Wastefulness of government spending.......................85 ........■
Burden of government regulation..............................107 ........■
Efficiency of legal framework in settling disputes.......85 ........■
Efficiency of legal framework in challenging regs .......72 ........■
Transparency of government policymaking .................52 ........■
Business costs of terrorism.......................................133 ........■
Business costs of crime and violence .......................126 ........■
Organized crime.........................................................131 ........■
Reliability of police services.........................................69 ........■
Ethical behavior of firms ..............................................68 ........■
Strength of auditing and reporting standards ..............91 ........■
Efficacy of corporate boards ........................................70 ........■
Protection of minority shareholders’ interests ............87 ........■

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08

Quality of overall infrastructure....................................83 ........■
Quality of roads..........................................................101 ........■
Quality of railroad infrastructure ..................................99 ........■
Quality of port infrastructure .....................................107 ........■
Quality of air transport infrastructure...........................81 ........■
Available seat kilometers* ...........................................45 ........■
Quality of electricity supply .........................................58 ........■
Telephone lines* ..........................................................76 ........■

2nd pillar: Infrastructure

3rd pillar: Macroeconomic stability
3.01
3.02
3.03
3.04
3.05

Government surplus/deficit* .......................................82 ........■
National savings rate*..................................................64 ........■
Inflation* ......................................................................52 ........■
Interest rate spread* ...................................................87 ........■
Government debt*.......................................................78 ........■

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11

Business impact of malaria..........................................90 ........■
Malaria incidence* .....................................................101 ........■
Business impact of tuberculosis..................................84 ........■
Tuberculosis incidence*...............................................57 ........■
Business impact of HIV/AIDS ....................................100 ........■
HIV prevalence*...........................................................85 ........■
Infant mortality*...........................................................66 ........■
Life expectancy*..........................................................45 ........■
Quality of primary education........................................75 ........■
Primary enrollment* ..................................................100 ........■
Education expenditure* ...............................................43 ........■

■ Competitive Disadvantage
RANK/133

6th pillar: Goods market efficiency
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ......................................78 ........■
Extent of market dominance .....................................113 ........■
Effectiveness of anti-monopoly policy .........................65 ........■
Extent and effect of taxation .....................................120 ........■
Total tax rate* ............................................................123 ........■
No. of procedures required to start a business* .........75 ........■
Time required to start a business* ..............................94 ........■
Agricultural policy costs ...............................................63 ........■
Prevalence of trade barriers.......................................128 ........■
Tariff barriers* ............................................................101 ........■
Prevalence of foreign ownership .................................89 ........■
Business impact of rules on FDI .................................94 ........■
Burden of customs procedures ...................................77 ........■
Degree of customer orientation ..................................30 ........■
Buyer sophistication ....................................................70 ........■

7th pillar: Labor market efficiency
7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations ......................48 ........■
Flexibility of wage determination.................................60 ........■
Rigidity of employment*..............................................35 ........■
Hiring and firing practices ............................................79 ........■
Firing costs* ................................................................89 ........■
Pay and productivity...................................................110 ........■
Reliance on professional management .......................81 ........■
Brain drain ....................................................................82 ........■
Female participation in labor force*.............................49 ........■

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Financial market sophistication....................................62 ........■
Financing through local equity market.........................77 ........■
Ease of access to loans ...............................................60 ........■
Venture capital availability ............................................76 ........■
Restriction on capital flows .......................................115 ........■
Strength of investor protection*..................................24 ........■
Soundness of banks ....................................................54 ........■
Regulation of securities exchanges .............................81 ........■
Legal rights index*.......................................................71 ........■

9.01
9.02
9.03
9.04
9.05
9.06
9.07
9.08

Availability of latest technologies.................................96 ........■
Firm-level technology absorption.................................95 ........■
Laws relating to ICT.....................................................50 ........■
FDI and technology transfer ........................................75 ........■
Mobile telephone subscriptions*.................................66 ........■
Internet users* ............................................................46 ........■
Personal computers* ...................................................70 ........■
Broadband Internet subscribers*.................................61 ........■

8th pillar: Financial market sophistication

4th pillar: Health and primary education

5th pillar: Higher education and training
5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary enrollment* ................................................77 ........■
Tertiary enrollment* .....................................................68 ........■
Quality of the educational system ...............................73 ........■
Quality of math and science education .......................86 ........■
Quality of management schools ..................................61 ........■
Internet access in schools ...........................................81 ........■
Local availability of research and training services ......59 ........■
Extent of staff training ...............................................105 ........■

9th pillar: Technological readiness

10th pillar: Market size
10.01 Domestic market size index* ......................................26 ........■
10.02 Foreign market size index*..........................................55 ........■

11th pillar: Business sophistication
11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity .................................................35 ........■
Local supplier quality ...................................................48 ........■
State of cluster development ......................................51 ........■
Nature of competitive advantage ................................71 ........■
Value chain breadth......................................................56 ........■
Control of international distribution .............................63 ........■
Production process sophistication ...............................71 ........■
Extent of marketing .....................................................82 ........■
Willingness to delegate authority ................................67 ........■

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ................................................62 ........■
Quality of scientific research institutions.....................87 ........■
Company spending on R&D ........................................72 ........■
University-industry collaboration in R&D .....................36 ........■
Gov’t procurement of advanced tech products ...........44 ........■
Availability of scientists and engineers ........................89 ........■
Utility patents*.............................................................70 ........■

12th pillar: Innovation

* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.

2.1: Country/Economy Profiles

Colombia

The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum

119

.....8 GDP per capita (US$)......1 5th pillar: Higher education and training .....6..0 Poor public health .................1 Government instability/coups ...41 ....7 8th pillar: Financial market sophistication...................9 GDP (PPP) as share (%) of world total....3.4.................15..47 ....................4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .6.............2 Inadequately educated workforce..55 .............16.................................29 .............5............................4 Poor work ethic in national labor force ........................ The bars in the figure show the responses weighted according to their rankings...............101 ...3... 2008 .............................4.........0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......0..............44 .........................................4 7th pillar: Labor market efficiency ........07 12................29...................5 Inflation ...........5 GDP (US$ billions).....1 Factor driven Basic requirements.9 Access to financing .....................1.62 ...000 3...................4 Crime and theft .........000 6........4...............................63 ...........................................6..............................4.....0......4.000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.....4 1st pillar: Institutions ...4 6th pillar: Goods market efficiency...............4...........................58 .....4...........62 ...............2....................................2 3rd pillar: Macroeconomic stability...........3..............................4.......................................................4......................37 ........4..........34 ......... 2008 ...........000 Costa Rica Latin America and Caribbean 9........3 Restrictive labor regulations ................... 1980–2008 Population (millions)..4...............1 Corruption.....................................579...................0...........1 9th pillar: Technological readiness....2.......................79 ......9 Policy instability......82 ...........................................................................5 12th pillar: Innovation....................3..........................................36 ...............4.....................................3...6 Inadequate supply of infrastructure ...........................................4.......................................................4...................................................1 4th pillar: Health and primary education ..... 2008..77 ...................................................3................................1: Country/Economy Profiles Costa Rica Key indicators GDP (PPP int'l $) per capita..........8...........................4 2nd pillar: Infrastructure......1.............................4 Tax regulations ..............24...............7 Financial market sophistication Goods market efficiency Labor market efficiency Costa Rica Efficiency-driven economies The most problematic factors for doing business Inefficient government bureaucracy..........................7 10th pillar: Market size..........3 Foreign currency regulations.......................4...............47 ...............................0 120 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.......1 11th pillar: Business sophistication..................2 Transition 1–2 1 GCI 2008–2009 (out of 134)...........................................7.........0 Tax rates .... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ........59 ....... 2008.............................................2 GCI 2007–2008 (out of 131).................................. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.....................

.27 ..............■ Brain drain .......................10 4......................06 4.............05 7.....01 4........................1 ....74 ....■ Quality of scientific research institutions...........................■ FDI and technology transfer ...............09 Cooperation in labor-employer relations ..........................05 6...13 . of procedures required to start a business* ...........................08 7..............03 6.................................■ Judicial independence ......................................04 3..................■ Regulation of securities exchanges .............04 12.......................................................53 .04 4........77 ......03 7...........................06 11......................■ Business costs of terrorism.................60 ...... 2...■ Tuberculosis incidence*..............................01 3....................................05 11....................63 .02 2.................02 8.....■ Extent of market dominance ......................................................................■ Intellectual property protection......■ Utility patents*.51 .............11 Business impact of malaria....................................76 ....■ Rigidity of employment*....28 .14 6........02 5..........................................................................................................48 ...01 6.....12 1...............02 Foreign market size index*..................................01 11..37 ..........62 .51 ......26 ...76 ...........................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.........92 .........09 Financial market sophistication...■ Interest rate spread* ...54 ...■ 12th pillar: Innovation * Hard data Note: For further details and explanation..............■ Business impact of rules on FDI ................39 ................................■ Telephone lines* .....................................01 9..07 5.09 Local supplier quantity ...............■ Public trust of politicians..........45 ..........................■ Reliability of police services.........104 .........66 .03 8........41 ...........76 .......34 .........................................■ Hiring and firing practices ..14 1...........■ Tariff barriers* ......................03 1............■ Soundness of banks ............................................25 .................40 ...........09 6.......................................05 8..71 ...........07 6............ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter......................................49 .........■ University-industry collaboration in R&D .......74 .■ Burden of government regulation........05 4.............■ Quality of air transport infrastructure.........................34 .........................■ Ethical behavior of firms ................41 .................■ Financing through local equity market.................48 ....................■ Favoritism in decisions of government officials ...................................09 4............................■ Mobile telephone subscriptions*..06 2...................16 .....................40 ......■ Internet users* ................................■ 9th pillar: Technological readiness 10th pillar: Market size 10....19 Property rights .............06 9................................06 7...................■ Quality of the educational system ..06 5.............27 ................................15 Intensity of local competition ......■ Quality of primary education............................30 .......■ Firing costs* .....................106 .......■ 11th pillar: Business sophistication 11..07 11..63 .................38 .........................................28 ......■ Quality of math and science education ............................11 1..16 .........■ Inflation* .........■ Flexibility of wage determination............■ Business impact of tuberculosis.04 8....10 1..05 Government surplus/deficit* .........05 2..■ Nature of competitive advantage ...............................30 ...51 .............■ Ease of access to loans .........................................................01 12...................08 6......■ Strength of auditing and reporting standards ..........03 4.................05 5............05 9.................................................................43 ....1: Country/Economy Profiles Costa Rica The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 121 .........................■ Total tax rate* .....44 .■ Personal computers* .07 Capacity for innovation ....................29 ......■ 8..................■ Internet access in schools .................................................67 ..............■ Prevalence of trade barriers...............................■ National savings rate*...17 1....................12 6.06 8.......................................■ Transparency of government policymaking ................■ Organized crime....................114 .......55 .........01 1................04 2.......38 .■ Quality of management schools ........08 11......107 ..........■ Degree of customer orientation ............■ Quality of electricity supply ......................30 .....................■ Extent of staff training ..............................■ Wastefulness of government spending................07 9.........■ Restriction on capital flows .....■ Efficacy of corporate boards ...■ Business costs of crime and violence ....................■ Buyer sophistication ..........74 .......................................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5....07 8.■ Efficiency of legal framework in challenging regs ................38 ....■ Life expectancy*........33 .............................................91 ......................■ Business impact of HIV/AIDS ............■ 4....................................■ Local availability of research and training services .....58 .........■ Extent and effect of taxation .....■ Protection of minority shareholders’ interests ...............49 ........01 7..........13 6...................71 .............................................■ Quality of port infrastructure .........54 ..........■ Time required to start a business* ..............................07 2................32 ..15 1......70 .........■ Available seat kilometers* ..............■ Tertiary enrollment* ............■ 10..............................02 6..........■ State of cluster development ..32 ..08 4................................................03 9.............110 ...............02 3...............................................63 ....■ Production process sophistication ....................................................■ Reliance on professional management .........04 6.......37 ...............08 Quality of overall infrastructure........■ Effectiveness of anti-monopoly policy ..29 ...................■ Gov’t procurement of advanced tech products .........02 12....................................11 .....43 ...20 .......33 .........08 1...............98 ........■ Availability of scientists and engineers .....................................■ 12..............................■ Strength of investor protection*.....................................■ Burden of customs procedures ..............128 .....................■ Infant mortality*...........................■ Local supplier quality ......58 ............■ Quality of roads.....13 1..122 ............................................59 ..............56 ..................79 ..................55 ..07 7...107 .■ Female participation in labor force*...........44 .......................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...78 ....06 1....07 4.....04 1.01 Domestic market size index* ....................................04 5.......08 Availability of latest technologies.................................22 ......■ Control of international distribution ...........02 11..............................49 .....02 4.....■ Prevalence of foreign ownership ...................08 8..........................................08 Secondary enrollment* ......06 6....28 .....■ Company spending on R&D ...04 7..............72 ....................................................■ Primary enrollment* ......18 1......................................■ HIV prevalence*.................■ Malaria incidence* .........11 6...................01 8..................■ No.......110 ...................■ Government debt*.........102 ..............63 ...................................................................02 9...........................................................■ Laws relating to ICT................40 ..53 ......04 9..................................85 ................03 2...................■ Efficiency of legal framework in settling disputes..........................■ Education expenditure* ......■ Value chain breadth...04 11...............................................05 12............................................01 2.............06 12..............37 ................................114 ....■ Diversion of public funds ..76 ........70 ..................16 1....22 .....■ Firm-level technology absorption....................02 7.......................................................03 12...........70 ..............■ Willingness to delegate authority ....107 ...■ Broadband Internet subscribers*................05 1...03 11.......■ 2...................10 6..............■ 7th pillar: Labor market efficiency 7................■ Venture capital availability ........54 ...........39 .........................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6............■ Legal rights index*..............09 1.......■ Agricultural policy costs ....................40 ........................■ Extent of marketing ..........■ Quality of railroad infrastructure ..63 .62 ..................01 5...03 3............52 ............03 5....................................................47 .......................................................■ Pay and productivity.........................71 .........■ 9......02 1..7 ........................07 1...............

...1: Country/Economy Profiles Côte d’Ivoire Key indicators GDP (PPP int'l $) per capita.........3.................8 Financial market sophistication Goods market efficiency Labor market efficiency Côte d’Ivoire Factor-driven economies The most problematic factors for doing business Corruption.............................. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.......17.......................... 2008 ..2 GDP (PPP) as share (%) of world total....7 Access to financing .......................000 500 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...............19.............105 ...000 Côte d’Ivoire Sub-Saharan Africa 1....5 3rd pillar: Macroeconomic stability................113 .....................3.....73 ..7.............1 122 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers.....23...........................................................3.....9 2nd pillar: Infrastructure...............................................................4 9th pillar: Technological readiness............n/a ............................................................................... 2008 ......................500 1......3 Foreign currency regulations..........................3...............5 GDP per capita (US$).127 ................................ The bars in the figure show the responses weighted according to their rankings.....9......................97 ...........6 Tax rates .......6 Inflation ................................................................................................... 2008..................3..................5 1st pillar: Institutions ...................4.....................................0...4 Poor public health .....n/a Factor driven Basic requirements...................3...2 Poor work ethic in national labor force ..........1 Infrastructure 6 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..........3.................2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.112 .......................................0 10th pillar: Market size..................................................... 1980–2008 Population (millions).........6..........................................116 ......................0......................................................4 Transition 1–2 1 GCI 2008–2009 (out of 134).104 ..110 ..........................4 4th pillar: Health and primary education ...........4 Crime and theft ..................89 ................17........................1.............2.....20..............98 .........3.........................................................3..........109 ...........................................9 Restrictive labor regulations .3...3..................6 12th pillar: Innovation............................................... 2008.........128 .............4.121 ...............................132........1 6th pillar: Goods market efficiency........... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ....115 .........4 5th pillar: Higher education and training ............3..........2...................................3..........95 ......8 Tax regulations ...0..7 7th pillar: Labor market efficiency ....0 Policy instability...............92 .4.........................................6 GDP (US$ billions)...........4......................................0....1 Inefficient government bureaucracy......5 GCI 2007–2008 (out of 131)............................2..............................................3......2...05 2......2..3...2 11th pillar: Business sophistication.....0 Inadequate supply of infrastructure ..0 8th pillar: Financial market sophistication............1 Inadequately educated workforce..........6 Government instability/coups ................................

...........01 2..................................................................................................■ Telephone lines* .........05 7...■ Quality of scientific research institutions................................92 ............02 12..■ Prevalence of foreign ownership .......70 ..................09 4............125 ......06 9..........99 .......................122 ...108 .71 ..............................■ Intellectual property protection....■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5....02 11.......................02 2...................................................■ Quality of primary education...........■ Business costs of terrorism................................05 1.12 6...................■ National savings rate*.............08 Quality of overall infrastructure.....■ Legal rights index*.................93 ........■ No......................................09 Local supplier quantity .01 3...............60 .........09 6.01 4.133 ..............06 5.....................................■ Buyer sophistication ............06 12....14 6.............................■ Burden of government regulation.113 ........108 ................................................106 ............................96 .....58 ...............................97 ...................08 11............07 5.....■ Quality of roads.......■ Strength of investor protection*...................04 9............................................................124 .............................08 1..48 ...03 6..................01 8.........■ Availability of scientists and engineers ................................................................■ Total tax rate* .......................................05 8.■ Protection of minority shareholders’ interests ...................98 .......................................■ 7th pillar: Labor market efficiency 7........124 ......................101 ...............115 .. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....■ FDI and technology transfer ............84 ........■ 8.........03 11.■ 9th pillar: Technological readiness 10th pillar: Market size 10....................■ Quality of math and science education .............99 ....01 6.............112 ........02 7..................03 3.......121 ...............115 .■ Reliability of police services........................17 1..................130 .....................02 1.....■ Organized crime..............05 5.............■ Reliance on professional management .............■ 2...90 ....117 ............................58 ............................................................................88 .....■ 9.....■ 11th pillar: Business sophistication 11..04 2....................1: Country/Economy Profiles Côte d’Ivoire The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 123 ..05 12............................■ Life expectancy*.....97 .....■ Local supplier quality .......■ Restriction on capital flows ...................01 9.......■ Utility patents*...................75 ................90 .......................131 ...........■ Favoritism in decisions of government officials ..12 1.....107 .................■ Extent of market dominance ....................................50 ....■ Local availability of research and training services ..........64 ........65 ....................■ Efficiency of legal framework in settling disputes.................................10 1............■ Quality of electricity supply .71 .....■ 12th pillar: Innovation * Hard data Note: For further details and explanation................................84 ..........110 ................03 12......08 8.49 ............03 7........................■ Inflation* ....................01 5.............02 9.................■ Mobile telephone subscriptions*..■ Prevalence of trade barriers............07 6.......■ Pay and productivity..........49 ..05 9..............10 6.....■ Nature of competitive advantage ......83 ............................02 4.................04 11............04 6..................................30 .128 ..............................06 6..................■ Firing costs* .......10 4...........................................■ Firm-level technology absorption..................05 Government surplus/deficit* ......■ Business costs of crime and violence ...........75 ............................................15 Intensity of local competition .....................................■ Efficacy of corporate boards ..............92 ...............■ Infant mortality*............................73 ......■ Transparency of government policymaking ..■ Primary enrollment* ...........................99 ............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1............■ Quality of management schools .......................................11 1..14 1.09 Cooperation in labor-employer relations .........................118 .....................................05 11....128 .........■ Internet access in schools ......................................■ 10......06 4................07 4...■ Judicial independence .......05 2.............................................................................................■ Business impact of tuberculosis.....................121 .....................................62 ............13 1...........09 Financial market sophistication...07 7.................01 12........03 2.....125 ......................■ Business impact of rules on FDI ...02 6...............................121 .............115 ............80 ............■ Effectiveness of anti-monopoly policy ......................113 ............09 1......121 ..............39 ...........................111 .............................118 ..........................................07 1..........................129 .......■ Hiring and firing practices ....103 ..............■ Education expenditure* ..............■ Agricultural policy costs ..75 ................■ Regulation of securities exchanges ......■ Tuberculosis incidence*....................07 8..................................129 ...........■ Tertiary enrollment* .■ Extent of marketing ..........131 ..■ Financing through local equity market....03 8.94 ..........02 8..........115 ........................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.89 ...........122 ..............................07 2.....08 Availability of latest technologies.......95 ...................................■ Ease of access to loans ..08 6...........■ Public trust of politicians..................................................................05 4....................................94 ............................................................11 Business impact of malaria.......................■ Extent of staff training ...50 .....................04 5...■ Flexibility of wage determination.............67 .........................................■ Time required to start a business* ...■ Brain drain ..■ Available seat kilometers* .................■ State of cluster development ...■ Diversion of public funds ........11 6.......04 7..............................................................118 .....107 ..■ HIV prevalence*...........06 11...................................................................06 2..................................03 5............. of procedures required to start a business* ..68 ...01 7.04 4...................................95 ........... 2.08 Secondary enrollment* ............93 ..■ Internet users* ...............................■ Degree of customer orientation .......■ Quality of railroad infrastructure ....47 ..............................01 1....07 9......■ Quality of port infrastructure......105 ...............07 Capacity for innovation .............................................................■ Tariff barriers* ....85 .......71 ..........122 .....133 ..............03 1.....................■ Laws relating to ICT...■ Interest rate spread* ..66 ................■ Government debt*..............................................02 5...................■ Soundness of banks ...........02 Foreign market size index*.....■ Quality of air transport infrastructure................13 6......06 1..............■ Willingness to delegate authority .......................04 8..............................03 9..........................................120 ....................103 ........124 ....■ Value chain breadth......■ Ethical behavior of firms ..........70 .........■ Gov’t procurement of advanced tech products .....■ Venture capital availability ...........90 .............................18 1.86 .............06 8......................................02 3........107 .■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3...............69 ....................................................................08 7..131 ..............■ Malaria incidence* ....................■ Strength of auditing and reporting standards ..........128 ....................................■ Quality of the educational system ........85 .......15 1...............■ Female participation in labor force*.■ Production process sophistication ..........08 4.....04 3..........................................55 .......07 11...............................■ Control of international distribution ...06 7.....................................04 12.......................■ Wastefulness of government spending...........01 Domestic market size index* .16 1....................................03 4.........■ Business impact of HIV/AIDS ..92 ...............................................■ 12.■ University-industry collaboration in R&D ...■ Efficiency of legal framework in challenging regs ........27 ...............79 ................127 .....■ Broadband Internet subscribers*.........................■ 4.........05 6.......■ Extent and effect of taxation .....113 .....................■ Company spending on R&D ........77 .....■ Rigidity of employment*....04 1.................126 ...............19 Property rights ...........01 11.■ Burden of customs procedures .....■ Personal computers* .103 ........

...............0 Poor work ethic in national labor force ............4........................56 .....................................7..1 5th pillar: Higher education and training ....................................................4...1..0 Poor public health .65 ....................69.......................................77 ...................4..............72 ............ 1980–2008 Population (millions)..............43 .3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....2 6th pillar: Goods market efficiency...............1...6 GDP (US$ billions)......61 ..........7 124 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...................1: Country/Economy Profiles Croatia Key indicators GDP (PPP int'l $) per capita.......000 10............................15..............4.0...2.................................3 GDP per capita (US$)...................72 ..................1 Inadequately educated workforce. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5........8................3..............................................................................3...6 1st pillar: Institutions ....................4.........8 4th pillar: Health and primary education ........................94 ..6..........................3...............................3.............7 Inadequate supply of infrastructure ..................44 .......92 .............................. 2008 ........4..............................................4......................5......4..........50 ..................84 ..............2 Tax rates .....................1 Foreign currency regulations..............0 Transition 1–2 1 GCI 2008–2009 (out of 134).4..................3 3rd pillar: Macroeconomic stability..... 2008 .......2 10th pillar: Market size............................8 12th pillar: Innovation......1 GDP (PPP) as share (%) of world total..................57 .............................................9 7th pillar: Labor market efficiency .............................61 .................1.......................................1 8th pillar: Financial market sophistication............................................ The bars in the figure show the responses weighted according to their rankings...............................49 ...6 Government instability/coups ..................9...628........................3.......0 Access to financing .........1 9th pillar: Technological readiness..........52 ..........................................000 Croatia OECD 30...........8 Inflation .......................5 Policy instability........................................................6 2nd pillar: Infrastructure...15..3.............2 GCI 2007–2008 (out of 131).......... 2008. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .0......4..................0..5.............1...................7 Corruption.5 Restrictive labor regulations .20................4....................................11 40..............................000 20..........................7 Crime and theft ..............................................................16..........................................................85 .....................................4.......................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..............................67 .................7 Tax regulations ...5 11th pillar: Business sophistication....... 2008.4..2 Factor driven Basic requirements..............2 Financial market sophistication Goods market efficiency Labor market efficiency Croatia Economies in transition from 2 to 3 The most problematic factors for doing business Inefficient government bureaucracy.8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......

.....109 .......■ 2...01 12................10 1.44 ............................................75 .......■ Quality of port infrastructure...................48 .....06 11........■ 9....14 1..............................................11 1.02 3......03 11...............................................................................■ Total tax rate* ................................03 6.91 ........................84 ......03 2..............■ Education expenditure* ......................07 11...79 ................07 4................■ Nature of competitive advantage ..................................02 9.......................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..............■ Prevalence of foreign ownership .....................................34 .............................85 ............36 ........................■ Transparency of government policymaking ................................74 ...09 6............89 ...................................■ Efficacy of corporate boards .......................■ Business costs of crime and violence .....................................03 7.........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1..........■ Quality of math and science education .......82 ....■ Extent of market dominance ............■ Personal computers* ........104 ..............75 .........................................■ Degree of customer orientation .......102 ........................■ Ease of access to loans ......18 1.........■ Efficiency of legal framework in challenging regs ..03 3................■ Quality of railroad infrastructure ..........■ Time required to start a business* ....................................................................■ Regulation of securities exchanges .............99 ..03 8..........86 .........................................■ Venture capital availability ...............................................■ Quality of roads.............................................................105 .......08 1..47 ....................06 1................................................05 11.................................■ Financing through local equity market.............................115 ...03 5.■ Business impact of tuberculosis.......66 ..........07 5....02 11.■ 8....................................■ Quality of management schools ........................................66 ................01 7.......■ Internet users* ......................75 ......57 ..........................................................................26 ........09 4.................■ Primary enrollment* .....02 2.06 8.....54 .......................■ Reliance on professional management ....................1 .........................■ Brain drain ................08 8..............31 ..............■ University-industry collaboration in R&D .....■ Agricultural policy costs ...........■ Legal rights index*............■ Gov’t procurement of advanced tech products .......60 .....61 .......■ Business impact of HIV/AIDS ..37 .................01 2..........................77 .06 6...111 .....■ Soundness of banks .....54 ...............................................................■ 9th pillar: Technological readiness 10th pillar: Market size 10.97 .........08 Quality of overall infrastructure.............02 8..■ Utility patents*........07 2....124 ....35 ..........................■ Intellectual property protection......31 .....■ 4..8 .......29 ..................116 ........■ Buyer sophistication ......■ State of cluster development ................04 5....08 11..................................04 8.....51 .....36 .......12 1..■ 12.......■ Broadband Internet subscribers*........04 2.......................................................63 ...80 ......................■ Malaria incidence* .....................................■ Extent and effect of taxation .....■ Inflation* ........8 .04 1....................05 6...........04 3......................■ Internet access in schools ..■ 11th pillar: Business sophistication 11..13 1..........■ Local availability of research and training services ................07 6..................16 1...........................■ Prevalence of trade barriers.■ Interest rate spread* ....■ Company spending on R&D ............■ Judicial independence .................................................79 .....................01 4........01 3............09 Financial market sophistication...■ Wastefulness of government spending................................■ Firm-level technology absorption...................01 11.........■ Willingness to delegate authority ............ of procedures required to start a business* ............■ Value chain breadth..........11 Business impact of malaria.............02 12......................■ Available seat kilometers* .........................04 11......■ HIV prevalence*...........01 1.....................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation........08 4....................76 ..116 ...80 ............■ Tuberculosis incidence*..........................03 1.■ Burden of government regulation................07 9..........06 2.43 ...............................87 ...........■ Strength of auditing and reporting standards .■ No.....07 1...........■ Extent of staff training ..........02 Foreign market size index*......................106 ....................................................1: Country/Economy Profiles Croatia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 125 ....08 6..........................................01 6..........................................................98 ..................01 9..........................64 .09 1.......■ Pay and productivity......................01 5......13 6..........■ Infant mortality*..........................................05 1...............■ Ethical behavior of firms ..41 ..........................02 6...........................■ Tariff barriers* ...................■ Organized crime.......08 7....■ Flexibility of wage determination..06 5..........................■ Laws relating to ICT...............................................■ Diversion of public funds ..................06 4..........■ 10.............120 ..............................................................06 7...............■ Rigidity of employment*.....49 .......................■ Favoritism in decisions of government officials ..05 5.............■ Reliability of police services.....................■ Firing costs* ..............126 .................98 .............79 ............120 .........................................56 .■ Business impact of rules on FDI ..........05 7..............05 12.......73 ......33 ....■ Production process sophistication .......................12 6....................08 Secondary enrollment* ............................................................................05 2.86 ....................02 7............................10 6................71 .■ Quality of electricity supply .........38 ...............107 ..09 Local supplier quantity ...........................■ Telephone lines* ....04 4............01 8..............78 ...................................11 6.......................................................■ Control of international distribution ...........05 4....88 .....03 4...............................92 .52 ...48 .....04 12.......61 .......■ Quality of scientific research institutions.................02 5.........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3....06 9.15 ............110 ......■ Local supplier quality ........................................93 .......■ Restriction on capital flows ..■ National savings rate*.......■ Extent of marketing ...................102 ...................................72 ......17 1.......■ Strength of investor protection*.......57 ......64 ...................08 Availability of latest technologies.......................04 6...50 ...07 8...■ Quality of primary education.....................■ Efficiency of legal framework in settling disputes............■ Hiring and firing practices .......■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.......................................07 7...........100 ...............97 ................06 12....1 ...........09 Cooperation in labor-employer relations ..14 6...............................................................................■ Life expectancy*.................82 ..........■ Burden of customs procedures .........................39 ..................87 ...03 9............................89 ...05 Government surplus/deficit* .......10 4.....................................57 ...................................................................■ FDI and technology transfer ...■ 7th pillar: Labor market efficiency 7.......54 .04 9...........................................03 12..........................................■ Female participation in labor force*...........69 ...................58 ....74 ...................................■ Quality of air transport infrastructure...................05 8.....43 .........................■ Public trust of politicians......76 . please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........................■ Effectiveness of anti-monopoly policy .60 ...........1 ......................................................19 Property rights .......68 ....■ Availability of scientists and engineers ....■ Tertiary enrollment* ..........79 .................86 .... 2...■ Mobile telephone subscriptions*......................05 9........02 1...........................................118 ............07 Capacity for innovation ................15 1..............................70 ...01 Domestic market size index* ...........................94 .....73 ................02 4........■ Government debt*.........■ Protection of minority shareholders’ interests ............................66 .......89 ..■ Business costs of terrorism...............04 7.■ Quality of the educational system ...................64 .............................15 Intensity of local competition ...............

................... 2008 .........3.................................................6...........1 Tax regulations ............28 ....24.......................................................0 9th pillar: Technological readiness......8 Tax rates ...............55 ...4........000 10..................4.34 ..........2.....................................................................3........6 Access to financing .2......................................................................................3 Inadequate supply of infrastructure ......5..........................32 ......................18 ...5 GCI 2007–2008 (out of 131)................2 Poor public health .......................................................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.......................................................................4.......................................39 ..21 .................5.4 1st pillar: Institutions ....38 ....................0 Inadequately educated workforce........................0..0...............................5.....................................3 Inflation .................................41 .......31 .....3....03 40.......0 2nd pillar: Infrastructure............2..........10.........4.................4....3 Crime and theft .1 Poor work ethic in national labor force ........................................8 Foreign currency regulations.4 Corruption..5..........8 6th pillar: Goods market efficiency.........................2 Factor driven Basic requirements.............................9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............................5 5th pillar: Higher education and training ....... 1980–2008 Population (millions)......32................6 Transition 1–2 1 GCI 2008–2009 (out of 134)........................4.....9 GDP (US$ billions)....1...........35 .2 4th pillar: Health and primary education .....000 Cyprus OECD 30.........................1 Policy instability..... The bars in the figure show the responses weighted according to their rankings................24 ........2..4.....772...................46 ...................9 GDP per capita (US$)....19........................................7 12th pillar: Innovation......22 ...6 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.7 Government instability/coups ............2 11th pillar: Business sophistication................................1: Country/Economy Profiles Cyprus Key indicators GDP (PPP int'l $) per capita................1 GDP (PPP) as share (%) of world total.......24 .......................2..... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.....40 ......4...............3 126 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.........12.............................000 20.2 3rd pillar: Macroeconomic stability......................... 2008...........................6 8th pillar: Financial market sophistication.......7 Financial market sophistication Goods market efficiency Labor market efficiency Cyprus Innovation-driven economies The most problematic factors for doing business Inefficient government bureaucracy..5....................4..........................5..........................................................................5 10th pillar: Market size.......4...................................6 Restrictive labor regulations . 2008 ...........................4........6.......................................4...................16. 2008.....5 ..5.............................9 7th pillar: Labor market efficiency ........99 ............................................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ........................

.................11 6...........................................5 ......................................03 4......06 5.....■ Efficiency of legal framework in challenging regs ............................................24 .............................43 ........................................03 3...................................06 9.40 ...........12 6............n/a No...........................................■ Favoritism in decisions of government officials .........■ Business costs of terrorism..........03 9....32 ..30 .....■ Interest rate spread* .................■ Quality of management schools .................03 1.........22 ..........■ Company spending on R&D ..........29 .....................................■ Firing costs*........................■ Regulation of securities exchanges ...................................32 ....................08 6...............................52 ...............................05 4....08 Quality of overall infrastructure......07 4.......................■ Total tax rate*...............■ Availability of scientists and engineers ...........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.......■ Extent and effect of taxation ...........10 6...............09 1..............■ Control of international distribution .....................................01 2.....................05 2......21 .......................■ Quality of railroad infrastructure...............................30 .05 Government surplus/deficit* ......14 6............■ Business impact of tuberculosis....27 ...03 12.....................................20 ..........01 3...............................................47 ......25 .....99 ..05 11........08 7...........................................07 11........04 2....5 ....10 1........................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..................06 1...................................■ Legal rights index*................................■ Protection of minority shareholders’ interests ...................18 ......07 2.............n/a Hiring and firing practices ...........09 4..........■ Gov’t procurement of advanced tech products ..........................................................03 2.■ State of cluster development .....................07 6.27 ..■ FDI and technology transfer ..36 .02 2.49 .....09 6........04 11...................■ Mobile telephone subscriptions*..............................■ Utility patents*..............■ Burden of customs procedures .....................■ Strength of auditing and reporting standards ..............07 5.....01 6..................■ Primary enrollment* .................................................29 .....................20 ...60 ..........■ Prevalence of foreign ownership ..■ Ease of access to loans .................25 .....■ Efficacy of corporate boards ...................n/a Quality of port infrastructure...........■ Diversion of public funds .................13 .........................03 8...72 .04 9..........■ Flexibility of wage determination............45 ..08 1..............■ Broadband Internet subscribers*....■ Extent of market dominance ..........■ 8..........................n/a Pay and productivity.......................03 5..70 ...................................................■ National savings rate*.......34 .............29 .■ Extent of marketing .....................■ Rigidity of employment*...............■ Efficiency of legal framework in settling disputes......01 12..■ Internet access in schools ..............38 .07 7....................■ Quality of math and science education ................30 .....................14 1.04 3................■ Government debt*.....09 Financial market sophistication.....................................02 4.■ Value chain breadth...........08 4.......................23 ...04 4.....08 11...........22 ..........■ Organized crime......................09 Cooperation in labor-employer relations .26 .....■ Business impact of rules on FDI ..................................■ Restriction on capital flows .........■ Tertiary enrollment* .......................19 Property rights ..■ Tuberculosis incidence*.39 ...01 9...39 .................■ Education expenditure* ....64 ..............................................................10 4....................20 ...................................18 .........................■ 10....................................3 .07 Capacity for innovation .................9 .........................■ Effectiveness of anti-monopoly policy .........02 9..................03 11........................26 .....................................02 3.19 .43 .................39 .........24 ..............1 ..01 Domestic market size index* .........02 6..........■ Financing through local equity market............................................■ Venture capital availability ...37 ...............37 .....................................................08 Availability of latest technologies..................■ Brain drain ......05 9...........................................24 ..........n/a Agricultural policy costs ..05 8...34 ............72 ....29 ..........................05 12..........n/a Time required to start a business* .......25 ...18 1................................................................................13 .05 1....................................................08 8...................16 1......■ Intellectual property protection..........■ Business costs of crime and violence ..................■ Judicial independence ............■ Transparency of government policymaking .....■ Quality of the educational system .......................27 ............................................n/a 9..................22 .......................................................................................■ Tariff barriers* ..■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.................................101 ........................■ Quality of roads....18 ............47 ..97 ................■ 4....05 5.........02 1..02 11.........................11 Business impact of malaria............■ Inflation* ...........................■ Personal computers* ...■ Prevalence of trade barriers.......18 ............................................10 .....................................15 ...............■ Local supplier quality ..........111 ....29 ......■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..........02 Foreign market size index*.......................11 ....38 ....■ Buyer sophistication .......................03 6.........................................■ Infant mortality*......04 6.........■ Extent of staff training ........03 7.....................■ Degree of customer orientation .■ Wastefulness of government spending............■ Life expectancy*...■ Telephone lines* .........................................19 .................................................................06 2..................................■ 12th pillar: Innovation * Hard data Note: For further details and explanation.......11 .............■ Malaria incidence* .........1: Country/Economy Profiles Cyprus The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 127 ...................1 ..........................28 ..............29 ..............................................04 5......37 ..........35 .................07 8.............. of procedures required to start a business* ....................................■ Willingness to delegate authority .....■ HIV prevalence*....................................................12 1.....07 1......................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.■ University-industry collaboration in R&D ....04 1..07 9......52 ..................58 ..............13 1..................■ Production process sophistication ...04 8..................................................................96 .06 6..............................17 1..........■ Ethical behavior of firms ..................................................11 1.....■ 12..........■ Reliability of police services...........05 6...................02 5........06 8...............02 8.............17 ...33 ....30 ............36 ..................■ Local availability of research and training services .......................................................40 ........42 ..............■ Strength of investor protection* ...........■ Quality of air transport infrastructure...92 .............................01 11....16 ..■ 9th pillar: Technological readiness 10th pillar: Market size 10.........■ 11th pillar: Business sophistication 11.■ Internet users* ..................16 ......................01 1.......09 Local supplier quantity .. 2.........15 1....■ Business impact of HIV/AIDS ........06 11...........................■ Female participation in labor force*...■ 2............59 .........21 ..■ Quality of electricity supply ........................04 12.......................................30 .01 5..............21 ..........................04 7..............................................06 7........01 7.......08 Secondary enrollment* ....................................01 4..............................................................■ Quality of scientific research institutions................................................01 8.........10 ...31 ..........................29 ...■ Firm-level technology absorption.......02 7........................■ Laws relating to ICT......................................29 ......13 ..................15 Intensity of local competition ........67 ...........06 12.....02 12....13 .............13 6.........■ 7th pillar: Labor market efficiency 7.■ Available seat kilometers* .......05 7.....■ Nature of competitive advantage ........................................................................n/a Soundness of banks .........06 4........■ Burden of government regulation.■ Reliance on professional management ....■ Public trust of politicians.................................57 ..■ Quality of primary education..........

.....................6 Factor driven Basic requirements........................................................................................4......25 .....................7 Crime and theft . The bars in the figure show the responses weighted according to their rankings........5.........................40 ..............4........30 .....9 8th pillar: Financial market sophistication...............5........................4..8 12th pillar: Innovation..............................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010............4 11th pillar: Business sophistication................................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 . 2008......3...................5......3 3rd pillar: Macroeconomic stability.....20 ......9 Inadequate supply of infrastructure ...........................000 10.................................... 2008..................8 7th pillar: Labor market efficiency .......................4 Inadequately educated workforce.........................000 20............5...........21..................................0.................................................1....2 Access to financing .......7 Transition 1–2 1 GCI 2008–2009 (out of 134)....6 Inflation ............................5.............1............ 2008 ................ 1980–2008 Population (millions).........25 ..2................................................48 ..4.......8 5th pillar: Higher education and training .6..............................................62 ..................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.......1.38 40....6...4......7 Poor public health ...6 9th pillar: Technological readiness.........5 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....3 Foreign currency regulations.......10...........4...........0 4th pillar: Health and primary education .................2...33 ..................................................10........0 Tax rates ................................43 ...................45 ....................................7 10th pillar: Market size...4....................8 1st pillar: Institutions .24 .............2...................................33 ...............8..............................................4.................9 Tax regulations ..... 2008 ..4...4.......4.................................9 Corruption......................0 Financial market sophistication Goods market efficiency Labor market efficiency Czech Republic Innovation-driven economies The most problematic factors for doing business Inefficient government bureaucracy...............31 .......................5 GDP (PPP) as share (%) of world total............4...4...........13.....1: Country/Economy Profiles Czech Republic Key indicators GDP (PPP int'l $) per capita..........1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......................................5 Policy instability.....3...................................9 128 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.................27 ..................................................................6 GCI 2007–2008 (out of 131).........5 Government instability/coups .....1 GDP per capita (US$).......9 2nd pillar: Infrastructure..................................027...........24 ...........000 XXX Republic Czech &&& OECD 30...........42 ...................................1 6th pillar: Goods market efficiency...........................................14................................2 GDP (US$ billions).2 Restrictive labor regulations ......15.............26 ...........................33 .......................9 Poor work ethic in national labor force .4............................................217...................

.......49 ........................03 9..................................■ Strength of investor protection*........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.......07 7...■ Degree of customer orientation .............■ Public trust of politicians...■ Brain drain ........1 ...........................01 9..................................■ Quality of management schools ....................................................32 ......................■ Mobile telephone subscriptions*.......................60 .......02 12...........................................■ Extent and effect of taxation .....................01 6......................26 ..............■ Available seat kilometers* ..........................................................■ Government debt*........................................06 9.................■ Inflation* .................................................24 ..............88 ..........32 ........04 7....■ 12th pillar: Innovation * Hard data Note: For further details and explanation.................■ Prevalence of foreign ownership .....91 ...04 12...................................01 8...■ Extent of market dominance ...........■ Malaria incidence* ...■ No....................................03 1..........05 11....01 Domestic market size index* ..............................■ Quality of the educational system .........08 4..........28 ...07 2.........07 Capacity for innovation ...........................■ Favoritism in decisions of government officials .61 ..02 8..........................■ Business impact of rules on FDI .............................08 Availability of latest technologies...........................19 ......24 ................................................■ Availability of scientists and engineers ...............21 ............■ Gov’t procurement of advanced tech products .....16 1.................................21 ..........07 1......09 4.....04 11.................................................23 ......................................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...................■ Tertiary enrollment* ..............19 ...■ Organized crime..79 ....■ Business impact of HIV/AIDS ......10 4.........■ Quality of math and science education ..........19 Property rights .............................■ Time required to start a business* ...02 2.... 2..............■ Soundness of banks ..........................14 6................................■ Nature of competitive advantage ..01 3..................................06 2.........71 .....08 6.........................................■ Production process sophistication ........................■ Protection of minority shareholders’ interests ..■ Quality of air transport infrastructure............04 1.........01 1....62 ............................07 8..................09 Local supplier quantity ..................06 12........47 .........68 ............26 ....................................76 ...................02 11.....■ Female participation in labor force*...............05 12.....05 Government surplus/deficit* ............■ Prevalence of trade barriers..................04 3......08 1....03 11....103 ........■ Reliance on professional management ................................03 6...................37 .......................................................................................32 ..■ Quality of electricity supply .41 ...............■ Personal computers* ...............06 6.................................12 6...............07 4........................................35 ........... of procedures required to start a business* ..........................05 7.......................................08 7.17 ...19 ............■ Diversion of public funds ..45 .................■ 2...........10 ......■ Quality of primary education..............16 ........■ Infant mortality*................31 ......■ 4.............■ Internet access in schools ............■ 9th pillar: Technological readiness 10th pillar: Market size 10......................58 ...■ Laws relating to ICT....■ Ease of access to loans ...14 ..03 5...........48 ...27 ............08 Quality of overall infrastructure........................................09 1..................52 ..............................01 11....................25 ...19 ...■ Tariff barriers* .12 ........70 ...■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5............................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........114 .........■ Efficiency of legal framework in challenging regs ..........................■ Rigidity of employment*...85 ..........................................■ Firing costs* ...............03 8.......................21 ..■ Ethical behavior of firms .........■ Restriction on capital flows ..03 12...........27 ............14 .......................................■ Life expectancy*.............16 .■ Utility patents*........................■ Business impact of tuberculosis............■ Interest rate spread* ...............32 ..........................................01 7...............■ Local availability of research and training services ...............................................■ 7th pillar: Labor market efficiency 7....40 ..65 ................................36 ........8 .02 3.................■ Quality of scientific research institutions............05 6.......08 8.............1 .........27 .15 ....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.................115 ............■ Telephone lines* ........38 .....1: Country/Economy Profiles Czech Republic The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 129 .............81 ..............02 7...25 .......................■ Strength of auditing and reporting standards ................09 6...........02 5...........■ Quality of roads..............................■ Burden of government regulation.............................03 3.■ Total tax rate* ...10 6........................13 6......................................................................50 ..02 6............29 ......34 ......59 .....■ HIV prevalence*..................................06 4....■ University-industry collaboration in R&D ..............■ State of cluster development ...............06 5........................■ Venture capital availability .....................58 ........................17 1...............................................................■ 8............................14 1.....................04 2...........................■ Local supplier quality ...03 7.................71 ......05 4.......28 ....■ 9.........................55 ................■ National savings rate*...........................09 Cooperation in labor-employer relations .........................................■ Business costs of crime and violence ..........■ Control of international distribution ..07 9.........■ Buyer sophistication ....................■ Judicial independence .06 11.......................04 4........................46 ............................■ Burden of customs procedures .................................................04 9...43 .■ Business costs of terrorism.......25 ............................01 12.........■ Efficacy of corporate boards .......■ 11th pillar: Business sophistication 11.....41 ...........................01 2.......05 8........■ Wastefulness of government spending..05 9................................................02 Foreign market size index*....■ Flexibility of wage determination.................■ Hiring and firing practices .................36 ........10 .....■ Extent of marketing .05 1.....45 ................05 5......01 4.......................■ Pay and productivity......■ Quality of railroad infrastructure .......07 6..........................06 7..................80 ....44 ............................50 ................07 5....................................13 ...07 11.............36 .....■ Financing through local equity market.............■ 10.................................02 9.....18 1................91 ...........21 ................................................................................04 8...............................36 ..................................3 ...............10 1....11 6..................■ Effectiveness of anti-monopoly policy ........104 .......24 .........................■ Company spending on R&D ...............................■ Firm-level technology absorption......■ Value chain breadth...........■ Internet users* ..■ Primary enrollment* ...54 ...49 .........37 .................08 11......38 .....■ Intellectual property protection................104 ..57 ...........................41 ...............................................11 1.................56 ............■ Efficiency of legal framework in settling disputes.01 5.....24 .................................04 5........................................34 ........................■ 12..............55 .37 .........12 1.................■ Tuberculosis incidence*.............11 Business impact of malaria..................06 8.......09 Financial market sophistication....■ Agricultural policy costs ......................................5 ............................■ Education expenditure* .............................08 Secondary enrollment* ...41 ....■ Regulation of securities exchanges ...........■ FDI and technology transfer ..■ Broadband Internet subscribers*..........74 .02 4.........■ Extent of staff training .....................06 1.......■ Transparency of government policymaking ............■ Legal rights index*.................15 .....03 4...........................................60 ........................35 ........02 1...............................■ Reliability of police services....■ Willingness to delegate authority ................15 Intensity of local competition .....................................32 .....................................■ Quality of port infrastructure............87 ....13 1......05 2....04 6..........9 ...56 .03 2..................................................15 1............

........25.......0 Financial market sophistication Goods market efficiency Labor market efficiency Denmark XXX Innovation-driven Innovation-driven economies economies The most problematic factors for doing business Tax rates ..........2 ..6.......2......5...7 ...1 2nd pillar: Infrastructure...........30 40..625..........0 Poor work ethic in national labor force ........1: Country/Economy Profiles Denmark Key indicators GDP (PPP int'l $) per capita.9 GDP per capita (US$)...................................6 .......0 Corruption.............0 1st pillar: Institutions .5...........2.......................5 .........000 10.....................0.......................1..................3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......... 2008............. The bars in the figure show the responses weighted according to their rankings........................5 ...5...........14 ...................................4............................................. 2008...342..................................................5...........................................3 9th pillar: Technological readiness............4 Inadequately educated workforce....................3 ......10 ....................3 ..........5 Policy instability...................................5 GDP (US$ billions)................ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.7 .......8 3rd pillar: Macroeconomic stability......6.................5...............................0...............25.................3 11th pillar: Business sophistication....5..000 Denmark OECD 30..................................................................................000 20........6 GCI 2007–2008 (out of 131)...........................5........................8 .........................4.....7 Restrictive labor regulations ............................................................................0................4 5th pillar: Higher education and training .....5 Transition 1–2 1 GCI 2008–2009 (out of 134)...........................................6.....0........................................................0..............................................0 Inflation .....5.......5 Government instability/coups .5...................................62..13..................................5......8 Inadequate supply of infrastructure ..4 ...9................................9 Inefficient government bureaucracy.....................5....7 4th pillar: Health and primary education .......9 10th pillar: Market size................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..............49 ........ 2008 ...........5.....................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010......................2 7th pillar: Labor market efficiency ...1........................................3 Crime and theft ........................ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ......................................................................................................................3 130 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...5 12th pillar: Innovation.................9 6th pillar: Goods market efficiency.............................5..........................8 .......6............12 .............................8 Foreign currency regulations.............0 Poor public health ....................6 GDP (PPP) as share (%) of world total..2..................................4 ...5..............5 Tax regulations .6 Access to financing .............6 ..............................3 ..........6 Factor driven Basic requirements...................5 8th pillar: Financial market sophistication........... 2008 ..........6.......5. 1980–2008 Population (millions)............

.......20 .........02 5...........................................................................11 Business impact of malaria...............................11 1..........5 .........................9 .............■ Soundness of banks ..........................02 9....■ Financing through local equity market................01 8...................14 ....3 .............................15 ...........01 9............09 Cooperation in labor-employer relations .......................................02 11........■ Intellectual property protection....■ Prevalence of foreign ownership ..■ Time required to start a business* ...........................■ State of cluster development ..................■ Brain drain .........04 4........................................7 ....09 Financial market sophistication.........................................................■ Business costs of terrorism......03 11...........01 Domestic market size index* ..................12 6...........05 5..............................■ Business impact of HIV/AIDS ....................■ Available seat kilometers* ...................................01 3..2 ..........21 ........08 7............................■ 12..2 .............03 2..........................4 .14 1...................................................................................................................................3 .....■ 4.........................07 9...10 ....................02 2......■ Quality of the educational system ......................04 3............02 8...................104 .......■ 12th pillar: Innovation * Hard data Note: For further details and explanation........06 7........19 Property rights .........■ Diversion of public funds .........................................................8 .............■ 9....■ Interest rate spread* .....................................................................02 3..................54 ............................................■ Burden of government regulation.....44 .....................................54 .....■ Transparency of government policymaking .........1 .......■ No.........................■ Inflation* ....................03 8............01 6.........................02 Foreign market size index*..............................57 ..........6 ...................................................■ Firing costs* .9 ...........05 9.................27 ................■ 11th pillar: Business sophistication 11...........19 .6 ...................■ Ethical behavior of firms ..........................13 6.09 4...............03 7...................7 ..............3 ..■ Quality of math and science education ..........■ Internet users* ............03 9.........36 ..........................................■ Total tax rate* .................................6 .............................1 ...........■ Company spending on R&D .8 .....■ Reliance on professional management ......■ Efficiency of legal framework in challenging regs ...................■ Gov’t procurement of advanced tech products ..7 ........05 2.............................■ Prevalence of trade barriers.......06 2..........................48 ....................09 6...........................■ Pay and productivity......4 ..............18 ..■ Venture capital availability ................07 2................2 ...■ Judicial independence ..........■ Personal computers* ......................7 ...08 4............04 6.....10 4.8 ....05 11.......................03 1.............08 6............■ Business impact of rules on FDI ...........................69 ..12 ................08 11........ of procedures required to start a business* .........02 12....................7 ..................04 9..................■ Government debt*.■ Wastefulness of government spending.......................................................4 ...■ Legal rights index*...................................24 ...08 Quality of overall infrastructure...................8 ...........................................46 ....6 ....■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...■ Infant mortality*...................................................................■ Agricultural policy costs ..06 6........129 .............................18 ....21 ......01 2.....■ Female participation in labor force*.4 ...........................................■ Regulation of securities exchanges ..........................................................13 1............................2 ...09 Local supplier quantity .■ Primary enrollment* .....................01 12.............15 1......14 6....................04 12..3 ........■ Public trust of politicians....■ 3rd pillar: Macroeconomic stability 3......................■ National savings rate*.............■ Production process sophistication ..................................................■ Quality of scientific research institutions......................10 6.........................05 8................10 1.......2 ........40 .....................■ Malaria incidence* .■ Quality of management schools ...............9 ........01 5.40 ..................07 11...............04 7.......■ Restriction on capital flows ..............49 .....■ Efficacy of corporate boards .....6 ..............07 5.................08 Secondary enrollment* ...............................04 5.18 ...............................4 ...■ Quality of electricity supply .......................■ Business costs of crime and violence ........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1................11 6...............................■ Extent of market dominance .............2 ...........■ Life expectancy*................05 7...........................................06 8..................4 ...................08 Availability of latest technologies...........5 .....................................................7 ..■ Quality of primary education........................................02 4...........03 3..............■ Extent and effect of taxation .............06 1................................■ Tuberculosis incidence*........................06 4.21 ...............................24 .......11 ................■ Protection of minority shareholders’ interests ............................15 ........................................07 7......14 ................■ 2nd pillar: Infrastructure 2............................9 .........................■ Value chain breadth................04 1..03 12.........07 8..........................■ 10......12 1......28 .....■ Firm-level technology absorption.......9 ...........■ Business impact of tuberculosis........06 11................................05 12.■ 9th pillar: Technological readiness 10th pillar: Market size 10....12 ..............■ Willingness to delegate authority ...■ Organized crime......■ Quality of port infrastructure...■ Utility patents*.....■ Internet access in schools ..............5 ...............................18 .....08 1.........■ Education expenditure* .....04 11...02 7.........■ Mobile telephone subscriptions*.........................................04 8............14 ......................................17 ..........................■ University-industry collaboration in R&D ........................6 .............................08 8...........................................................6 .....................05 Government surplus/deficit* .......................■ Broadband Internet subscribers*.............09 1.......17 1........................................................................■ Tariff barriers* .....16 1..........................■ Rigidity of employment*.....................■ Availability of scientists and engineers .....■ Telephone lines* .....................05 6.............................7 .....................44 .......4 ......................5 ..■ Quality of air transport infrastructure...9 .........3 ..■ Tertiary enrollment* ............................................■ Laws relating to ICT...........................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5............ 2...........03 4....................1 .................................................■ Flexibility of wage determination....06 12.03 6..6 .....9 ....................5 .■ 7th pillar: Labor market efficiency 7.6 ..■ Extent of staff training ..............................................■ 8...16 .........................05 1.....■ Strength of investor protection*.■ Hiring and firing practices ............■ Burden of customs procedures ..05 4.30 .....................5 ...04 2.26 ....06 5....................■ HIV prevalence*.......■ Efficiency of legal framework in settling disputes......23 .......13 .02 6.....................................■ FDI and technology transfer ....■ Quality of roads.....02 1..........■ Quality of railroad infrastructure .......■ Favoritism in decisions of government officials .....■ Effectiveness of anti-monopoly policy ..........■ Reliability of police services...................................8 ....■ Strength of auditing and reporting standards ....................10 ......14 ............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............................07 1....■ Extent of marketing ......................1 ...................................................................06 9...............19 ...................................07 6..........58 ..01 4.............01 11..........01 1..............■ Buyer sophistication ........01 7..........■ Degree of customer orientation ..03 5....14 .......................8 .......................07 Capacity for innovation ...............18 1................................................6 ...........................14 ...........07 4..1: Country/Economy Profiles Denmark The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 131 ............13 ..............■ Control of international distribution ...................■ Local supplier quality .........15 Intensity of local competition ....2 ..14 .............2 ......■ Nature of competitive advantage ..........................................■ Ease of access to loans ...■ Local availability of research and training services ..................................

........73 ...........................3..................................................82 .......................................5.............................. The bars in the figure show the responses weighted according to their rankings...8 Financial market sophistication Goods market efficiency Labor market efficiency Dominican Republic Efficiency-driven economies The most problematic factors for doing business Corruption..................4.....3.................0 Access to financing ...3 8th pillar: Financial market sophistication.3...89 ................................71 ..12........1...................................6 9th pillar: Technological readiness..........................1 Poor work ethic in national labor force ..........2..9.............................95 ..............7 Government instability/coups ...........................................7 Factor driven Efficiency driven Basic requirements.....................3 4th pillar: Health and primary education ....2........................5 Tax rates ................... 2008 ..3.....6 GDP per capita (US$)............................................................ 2008......................................................... 2008... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.................96 .....100 .3...................4 11th pillar: Business sophistication....3............8 Policy instability.....3.........................1 Poor public health .........................................................0.........4..................................5 10th pillar: Market size......9 GDP (US$ billions).88 .......................8 1st pillar: Institutions ......................................................................98 ......8 Transition 1–2 1 GCI 2008–2009 (out of 134)........0 Inflation ....3.1 Foreign currency regulations............000 Dominican Republic Latin America and Caribbean 9...............................103 ..............98 ......................6 132 Transition 2–3 2 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers.....7 GCI 2007–2008 (out of 131)......2 Tax regulations .000 6..........117 .3.5 Restrictive labor regulations ..........45....................................................13..............................................3.................8.........................122..................12.72 ................0...........5..................3..................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...........................................4...........9........4............3.........................89 ....0 GDP (PPP) as share (%) of world total......................4.........................000 3......6 6th pillar: Goods market efficiency.85 ...............................5 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010............1: Country/Economy Profiles Dominican Republic Key indicators GDP (PPP int'l $) per capita.8 5th pillar: Higher education and training ............ 2008 ......................................................2 2nd pillar: Infrastructure. 1980–2008 Population (millions).......105 .6......................2...3...........11 12.......5.............................94 ...................7 Crime and theft ...........................0..................................................6 Infrastructure 6 Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .........................................2 Inadequate supply of infrastructure .............................0 12th pillar: Innovation....2..........2 3rd pillar: Macroeconomic stability.......3 Inadequately educated workforce............17..68 ..0 7th pillar: Labor market efficiency .............4 Inefficient government bureaucracy......................

........103 ......06 7.71 .■ Internet users* ............■ Government debt*.....■ Business impact of rules on FDI .....05 Government surplus/deficit* ..... of procedures required to start a business* .06 2..................■ Firm-level technology absorption.....■ Strength of auditing and reporting standards ....................■ Local supplier quality ......02 5....82 ..118 ......■ Burden of customs procedures ....................88 ........03 3......................................................................■ Buyer sophistication ...........................96 .........................■ Wastefulness of government spending..■ Laws relating to ICT..............■ Efficiency of legal framework in challenging regs ...03 11....■ Extent of staff training .03 1..........■ Tertiary enrollment* .................■ 10....................16 1....■ Inflation* ................05 11.......■ Willingness to delegate authority ................................................................................115 .86 ...................................................■ Time required to start a business* ....................06 8.■ Control of international distribution ................................93 .......................68 ..................................03 7.......■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..102 .....■ Telephone lines* ...........03 5......................................■ Restriction on capital flows ...................■ Value chain breadth............17 1........■ Agricultural policy costs ...........65 ........02 11..01 5.....100 ...............81 ..■ Prevalence of foreign ownership ......120 ............■ Public trust of politicians........02 2.....05 1.........■ Education expenditure* .................03 8.....................08 1..................................................................87 .......05 7......■ Ethical behavior of firms .115 ...............■ Regulation of securities exchanges .............■ Business impact of HIV/AIDS .....114 ..........04 2..................■ Quality of air transport infrastructure................................■ Prevalence of trade barriers.................08 6................09 4....................102 ......................49 .............■ Life expectancy*.......................■ 9.................................36 .......■ Soundness of banks ............■ Internet access in schools ..................06 11...............01 11......50 ...............115 .....■ Business costs of terrorism................■ Gov’t procurement of advanced tech products ............88 .......■ Quality of railroad infrastructure ....■ Financing through local equity market...........................06 5....■ Personal computers* ....................................86 .........................................................■ Quality of the educational system .............................................80 ..............................................■ Tariff barriers* ...........05 4.........■ Extent of market dominance ...........18 1....108 ..07 4...............11 Business impact of malaria...............................................................09 Local supplier quantity ............03 9...63 .......96 .........07 9.........65 .................1: Country/Economy Profiles Dominican Republic The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 133 ...........................37 .......10 4...79 ...04 4....................................07 5....09 Cooperation in labor-employer relations .....................■ Brain drain ...........................■ Hiring and firing practices ....02 4.....................................................................................72 .....■ Firing costs* ...................................■ 11th pillar: Business sophistication 11............................................................08 7.............................84 .........01 6...............98 ....130 ...............■ Favoritism in decisions of government officials .29 .....64 .....■ University-industry collaboration in R&D ...........■ Total tax rate* ..■ Female participation in labor force*...........68 ................66 .......................13 6....................04 9..................................115 .......................................132 .........01 8......■ Availability of scientists and engineers ...102 ........................■ Strength of investor protection*.........................................................................................08 8..■ No..........07 8........■ FDI and technology transfer .......■ Pay and productivity..............75 ................07 Capacity for innovation .................................................98 .......129 .62 ..02 Foreign market size index*.......■ Interest rate spread* ..58 ......14 6..................■ Infant mortality*..02 9...........................................■ Broadband Internet subscribers*......................................................63 ..........04 12.......56 .........................................................82 ............................60 ............................................50 ...............13 1......■ Production process sophistication .65 .................................................................■ Transparency of government policymaking ..............05 2.......06 12.................93 .......................■ Intellectual property protection........■ Degree of customer orientation ......07 1.....90 ...........03 2..■ Quality of electricity supply .............03 4.....................93 ........■ 12............................................■ Organized crime....■ Efficacy of corporate boards ...15 1.............88 .........................................................70 .......75 .......05 5..84 ................. 2.............................................02 1.............■ National savings rate*...........................10 6.............04 1..........62 .....................................■ Quality of math and science education .............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..............................■ Quality of roads...................105 .................................06 4.........................■ Quality of primary education..........10 1...07 6................05 12.....................................■ Malaria incidence* ...............01 9.....................................................................05 9.......122 ...............■ Rigidity of employment*.......................■ Reliability of police services.......■ Available seat kilometers* .....................................04 8.■ Burden of government regulation...■ 9th pillar: Technological readiness 10th pillar: Market size 10................■ 4.......09 6.....02 7......62 .......94 .........01 12...................................63 ........■ Extent and effect of taxation .........■ Company spending on R&D ..........12 6.......................■ Judicial independence .....................................05 8....■ Utility patents*........01 2.................................11 1.................49 ......90 .......62 ....82 .............................05 6.........02 12.............59 .................71 ....................................04 6.........................19 Property rights ........90 .............01 3.............................■ HIV prevalence*..06 1.08 Quality of overall infrastructure.■ Primary enrollment* .......76 .........................121 .■ Tuberculosis incidence*.........................................131 ..■ Effectiveness of anti-monopoly policy ..14 1.86 ......09 1........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...79 ..............■ Protection of minority shareholders’ interests ........08 Secondary enrollment* ...............................95 ...............................07 11.......................91 ................................95 .............02 3..40 ......................100 ..112 ....................................01 Domestic market size index* ........■ Legal rights index*........78 ...■ Business costs of crime and violence ...........■ Ease of access to loans .....■ Diversion of public funds .87 ............................................■ Flexibility of wage determination.......................45 ........78 ..............56 ........127 ...■ Business impact of tuberculosis.........06 6.............■ State of cluster development ......■ Reliance on professional management ......01 4......85 ...■ Extent of marketing ..........................04 7.............................■ 7th pillar: Labor market efficiency 7..............................55 ......68 ..........■ Mobile telephone subscriptions*.11 6....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.........03 12......04 5.............................12 1....114 .............105 .........35 ........06 9.........................................79 ......03 6...........................................................■ 8..........60 ...........63 .....■ Quality of management schools .................■ Nature of competitive advantage ..■ Quality of port infrastructure.....69 .................................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6..02 8.............07 7............133 ....................................08 Availability of latest technologies..■ Venture capital availability ...........90 ...15 Intensity of local competition ..■ 12th pillar: Innovation * Hard data Note: For further details and explanation......77 .............02 6...........08 11..........07 2.....70 ....■ 2.....■ Quality of scientific research institutions.........04 11..........................................■ Local availability of research and training services .......................................105 ...................116 ........■ Efficiency of legal framework in settling disputes......01 7.................132 .............09 Financial market sophistication......08 4..............................36 ...........04 3............01 1......130 .................................................

.................................2.................................127 ..............................11.............2 Inflation ...... 2008.129 .000 6...........................3 5th pillar: Higher education and training ........000 Ecuador Latin America and Caribbean 8.................................3.......................................2............6 GDP per capita (US$)..4 12th pillar: Innovation....14..........2...............3 7th pillar: Labor market efficiency .......3...............89 ....2................................................ 1980–2008 Population (millions)..2 Tax regulations ......130 ..15................1...........................................93 .....................................1 Crime and theft ..3...000 2....3......................................3...100 ...0 4th pillar: Health and primary education ......1: Country/Economy Profiles Ecuador Key indicators GDP (PPP int'l $) per capita..........................1........4 Restrictive labor regulations ......0 2nd pillar: Infrastructure......................4 9th pillar: Technological readiness........5 Poor work ethic in national labor force .........................................................................776..0...............................9 11th pillar: Business sophistication.........5 GDP (US$ billions)..................4................9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............................123 .5..............................................3...3 GDP (PPP) as share (%) of world total...13..3...............5..3......1 134 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.......................9 3rd pillar: Macroeconomic stability......................................................................7..................................125 .....2...................105 ................6 Transition 1–2 1 GCI 2008–2009 (out of 134)...............104 .......... The bars in the figure show the responses weighted according to their rankings..........3 Financial market sophistication Goods market efficiency Labor market efficiency Ecuador Efficiency-driven economies The most problematic factors for doing business Policy instability.........2.......1........................ 2008...............5........................................... 2008 ..........................114 ......................................................................8.......... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5............................6 GCI 2007–2008 (out of 131)..3...........19.......3 Poor public health .... 2008 ..................102 .................2 6th pillar: Goods market efficiency............60 ............0.............................................................103 .......................................44 ....5.......0 1st pillar: Institutions ...................3.....52..3...........105 .......15 10............7 Inefficient government bureaucracy.......................6 Factor driven Basic requirements................5 Foreign currency regulations.....1 Government instability/coups ............................103 ...................4 Corruption......000 4.. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ............................................1 Inadequately educated workforce..............2....8 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors................6 Access to financing ..................9 10th pillar: Market size...............7 Tax rates ..........3....3 8th pillar: Financial market sophistication.................3..........000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010........................................3 Inadequate supply of infrastructure .....113 .....

......■ Company spending on R&D .....105 ....................116 ....■ Burden of government regulation.................06 7.........■ Firm-level technology absorption...........■ 9th pillar: Technological readiness 9.......■ Utility patents*..........................■ Mobile telephone subscriptions*..................■ Nature of competitive advantage ...................................114 .............■ Malaria incidence* ...............59 ..■ Protection of minority shareholders’ interests ...119 ....120 ..........06 2......08 8..128 ...........116 ....................100 .....04 4...............125 .........115 ....................................■ Quality of scientific research institutions..130 ....................106 .....................13 1.......10 4...■ 11th pillar: Business sophistication 11.......................109 .....................05 4. 2...............02 12........03 5...■ Primary enrollment* ..01 2..................................................05 9......................120 ...............129 ...........................46 .■ Internet users* .....■ Strength of investor protection*....................■ Venture capital availability ...........■ Reliance on professional management .■ Value chain breadth................09 4........126 ..............................................................■ Business costs of crime and violence ...126 ........07 1.....14 6......117 ...............■ Brain drain ...1: Country/Economy Profiles Ecuador The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 135 ................■ Quality of the educational system .............■ Total tax rate* ................■ Tariff barriers* ....03 2........................................■ Strength of auditing and reporting standards ...........85 .■ Life expectancy*............................................11 1..■ Degree of customer orientation .02 9.............................123 ...122 .....................126 ...09 Local supplier quantity ....93 ............................06 12...17 1....123 .......43 ............92 ..........■ Efficiency of legal framework in challenging regs .....................04 7.....60 ...120 .....................................................06 6............■ Local supplier quality ............................................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............07 6.....................................■ Laws relating to ICT............119 ...........86 .97 ..■ Judicial independence ...08 Quality of overall infrastructure.........................133 .......................01 Domestic market size index* ...08 Availability of latest technologies.....05 Government surplus/deficit* .........................09 1...........................................06 9...........18 1.................■ 12....................................04 2..................16 1.................................■ Inflation* ............................................09 Cooperation in labor-employer relations ....................15 Intensity of local competition ................■ Business costs of terrorism....................03 7...............02 3.........■ Business impact of HIV/AIDS ...........................■ National savings rate*...73 ...122 ................................02 2..114 ...■ Quality of electricity supply .....73 .............08 Secondary enrollment* .03 9............39 ............................■ No..68 ...■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..............69 .124 ..03 12..54 .■ Time required to start a business* ......■ Rigidity of employment*..............125 ....■ Quality of roads..98 .......■ Quality of management schools .................■ Extent of marketing ........05 1............................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...................04 3......................................131 ...............■ Soundness of banks ..........90 .....................■ Quality of math and science education ............02 8....■ Prevalence of trade barriers............01 5......04 8...................■ Ease of access to loans ............119 ........................117 ............■ Available seat kilometers* ....120 .......... of procedures required to start a business* ........08 6.......03 6......■ Business impact of tuberculosis..........■ Tuberculosis incidence*...........02 7.....107 .04 11...........113 .............03 4.■ Availability of scientists and engineers ......05 11.10 6...05 5....13 6.........■ Extent of market dominance ....................................■ 10th pillar: Market size 10...............................■ Internet access in schools ...........14 1..........■ Efficiency of legal framework in settling disputes.........■ HIV prevalence*...05 7............................................................96 ....................................................................01 1.........................................■ 4........04 6.......01 12...........07 2............■ Personal computers* ............■ Telephone lines* .......07 7................■ Burden of customs procedures .108 ...■ Ethical behavior of firms .................................................■ Diversion of public funds .......■ Quality of railroad infrastructure ....................■ Interest rate spread* .........................■ Transparency of government policymaking ................■ Business impact of rules on FDI ..........01 7...........................96 .....................................80 ........07 Capacity for innovation ...104 .■ Effectiveness of anti-monopoly policy .01 11...............04 1...............................................................109 .......115 ...............■ Local availability of research and training services ....■ Wastefulness of government spending......................................01 4.....01 8....124 ................07 4............■ Regulation of securities exchanges ...............06 11...................02 6.......................................88 ............................................................69 ......................................07 8................................■ Broadband Internet subscribers*.............03 11..............................................104 .........131 ..100 .............................................................123 ......................................04 12.........................................................................79 ...............01 9....................................................100 .■ Public trust of politicians............■ Legal rights index*...........115 ....................98 ...............98 ...........■ Restriction on capital flows ..122 .................02 11.........................19 Property rights ..■ Quality of primary education......................................11 Business impact of malaria...................................................08 1..........11 6............■ Infant mortality*...............91 .96 .....01 6............................123 ....03 1............07 9.......................................................103 .........................................02 Foreign market size index*........111 ...................15 1......................■ Favoritism in decisions of government officials ..........12 1.............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.■ 8..06 5...09 6.............123 ...............................93 ..........■ Control of international distribution ...........■ Pay and productivity...79 .........08 11.....................................................07 5......113 ...79 ..111 ....................................................■ Flexibility of wage determination...■ Efficacy of corporate boards .....................................■ Extent and effect of taxation ......................................................05 2............■ Agricultural policy costs .02 1..■ Female participation in labor force*...................................................122 ...........................................103 .123 .....................■ Hiring and firing practices .........06 8.......111 ....................................................107 ...................■ Reliability of police services.................05 8....................■ 7th pillar: Labor market efficiency 7...■ Intellectual property protection..59 ...............................69 .........■ FDI and technology transfer ............................■ Financing through local equity market.....01 3.................61 ........04 5................10 1.......................110 ...........................................................93 .......................117 ........................................07 11.........■ University-industry collaboration in R&D ..........■ State of cluster development ...........06 1....■ Firing costs* ...................02 5...........■ Tertiary enrollment* ..08 4....73 .................97 ......................04 9.................■ Education expenditure* ...................■ Willingness to delegate authority .......114 .......................05 6...............75 .............■ Production process sophistication ..02 4.......■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........■ Government debt*.......■ Buyer sophistication .....112 ..■ Organized crime..■ Prevalence of foreign ownership ............03 8................................116 .99 ...................■ 10............113 ..78 .....87 ........08 7........129 .......118 ......................................................32 .........................■ Gov’t procurement of advanced tech products .05 12...■ 12th pillar: Innovation * Hard data Note: For further details and explanation.....■ Quality of port infrastructure..............■ Quality of air transport infrastructure..06 4....03 3.................93 ...130 ................................■ Extent of staff training ..........09 Financial market sophistication........■ 2........................................75 .12 6.....................

.....84 ............78 .126 ...............1...........8 Access to financing ..1....................................................3....... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .......................8 GDP (US$ billions)..................................2....................000 2...................4...................10.....4 Inflation ....................................3.......... 2008 ......................4..76............... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5........................4 10th pillar: Market size....120 .......9...............5 Poor work ethic in national labor force ..0............... 2008 .............5........0............4...............81 .............4.................................................................... The bars in the figure show the responses weighted according to their rankings.6 6th pillar: Goods market efficiency...........80 ...0 7th pillar: Labor market efficiency ....6 Tax rates ...............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..................................56 .4 Government instability/coups ........................................................72 ...................88 ................................0 Transition 1–2 1 GCI 2008–2009 (out of 134)..........................9 Foreign currency regulations....................................2 136 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.........5 4th pillar: Health and primary education ...................................................................................4...71 ...7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......9 Corruption...............77 ...............................0 12th pillar: Innovation..............................1 3rd pillar: Macroeconomic stability...............1: Country/Economy Profiles Egypt Key indicators GDP (PPP int'l $) per capita...3...........................5 Poor public health ....3 Restrictive labor regulations ....3............................5 11th pillar: Business sophistication..........................87 ................................2 1st pillar: Institutions ..........4....4.............2...8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .82 ......................... 2008.8 Crime and theft ........26 ...........................................5 8th pillar: Financial market sophistication.4.2 GDP per capita (US$). 2008....................12....4.......7................0 Inadequate supply of infrastructure .......3....................162........................4. 1980–2008 Population (millions).7.....3 Tax regulations ...........................................7.000 4................3...............................9 GDP (PPP) as share (%) of world total.160....................................4.0 9th pillar: Technological readiness.....................9...............000 Egypt Middle East and North Africa 6......................0 Financial market sophistication Goods market efficiency Labor market efficiency Egypt Economies in transition from 1 to 2 The most problematic factors for doing business Inefficient government bureaucracy............................................................9 5th pillar: Higher education and training .........0 GCI 2007–2008 (out of 131)..............7..4...............84 ..................12...........................74 ..........................................................................................................0 Factor driven Basic requirements...3...............3...........0 2nd pillar: Infrastructure.............55 ....0 Inadequately educated workforce.........................0 Policy instability.......................70 ......64 8.....................

.........■ Quality of port infrastructure.......03 11..............................................48 .....15 1...............................................63 ...............78 .■ State of cluster development ......99 .■ Reliance on professional management .............44 ..............05 8....................................■ Control of international distribution ..69 ........................06 5.....53 .....................■ Nature of competitive advantage .....■ Burden of government regulation.................................................05 11....... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....04 4.....................................07 5...................................■ Restriction on capital flows ...............................■ Broadband Internet subscribers*.....................04 11..04 6...01 Domestic market size index* ...............101 .....10 1.......02 11................■ Reliability of police services..........14 1.......................■ Transparency of government policymaking .................................72 ...........54 .......03 2.............72 .114 ..................15 ...............■ Burden of customs procedures .....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3..................■ Quality of electricity supply ..96 ............................05 9...................32 .■ Education expenditure* ..........01 3.52 ........................................08 8...............95 ...■ Financing through local equity market................................16 1....................................■ Organized crime.37 ..■ Time required to start a business* .11 Business impact of malaria...........10 6....1 .................■ Pay and productivity....06 6..02 Foreign market size index*..■ Extent of staff training ..■ Flexibility of wage determination.............■ Local supplier quality ...............................08 Quality of overall infrastructure.........................................14 6........01 5...............31 ..........■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...............■ Strength of auditing and reporting standards .......................................................................................12 1......................................02 2.79 ...................■ Business impact of rules on FDI ...............07 7...........................83 ....................................................................■ Primary enrollment* ..■ 10......................09 Financial market sophistication.07 Capacity for innovation .106 ..78 ...■ Laws relating to ICT............66 ........................................15 .............56 .............51 ........03 7........40 ...............02 4....06 11.....44 ...................................■ Malaria incidence* ...03 12..........96 .....86 ...........................03 6.............1 .................43 .................■ Extent and effect of taxation ..........■ Quality of primary education..05 1..........03 4..............131 .51 ..............05 6..............................................■ Legal rights index*.........50 ...128 .............■ Rigidity of employment*................04 1..........................114 .■ Tertiary enrollment* .....05 2.............................06 4...........66 ...................................................57 .■ Availability of scientists and engineers ..............01 4..07 8........................■ Favoritism in decisions of government officials ..........■ Efficiency of legal framework in challenging regs ............07 9.........................01 9....11 1...................................■ Personal computers* ................05 4................09 1.....................■ 8.■ HIV prevalence*.......■ Firing costs* ......08 1......................03 3...................73 .......■ FDI and technology transfer ......09 Local supplier quantity ....■ Regulation of securities exchanges ...........04 2........101 ........................■ Tariff barriers* ..12 6.....124 .....................................19 Property rights ..22 ......................01 6.................13 6.......................■ No............................................93 .......52 ..08 11...............■ Telephone lines* ..■ University-industry collaboration in R&D ..03 8....08 Secondary enrollment* ..10 4.............................05 5.............. of procedures required to start a business* ........................■ Value chain breadth...................................................................................69 .. 2...18 1...106 .................04 8..................06 2....................07 11.............124 .....................■ Quality of the educational system ..............................■ Total tax rate* ...04 9.06 8.........■ Quality of roads......■ Business costs of terrorism...........06 9.........02 7.............■ Ease of access to loans ............41 .........................07 4..................................................54 ..............05 12...........127 .......■ Efficacy of corporate boards .........03 9..■ Mobile telephone subscriptions*.....................56 ....■ Local availability of research and training services ..........02 5..........■ National savings rate*......................■ Tuberculosis incidence*....■ Business impact of tuberculosis.....................................................■ Inflation* ...........................04 7.....45 ...........71 ....................................63 ....................■ Degree of customer orientation ............02 3...................98 ..........■ Buyer sophistication ..■ Internet access in schools ....................66 ..........■ 4.■ Effectiveness of anti-monopoly policy .................08 Availability of latest technologies..........................................102 ...............................................57 .................68 .............■ Quality of management schools ...................................08 4......................................................07 1...03 1..................................47 ................................01 8...........................................................92 ..03 5.....04 5.................61 ......95 .........73 ................■ Judicial independence ......58 .........■ Extent of market dominance .....60 .......1: Country/Economy Profiles Egypt The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 137 .............86 ....................02 6........82 ..■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..........121 .............■ Prevalence of foreign ownership ...............................04 3.............■ Infant mortality*...............■ Quality of scientific research institutions..■ 7th pillar: Labor market efficiency 7.26 ...59 ...................................97 .....................■ Brain drain ..........89 .......05 Government surplus/deficit* ..■ 9th pillar: Technological readiness 10th pillar: Market size 10...............■ Quality of railroad infrastructure ..■ 12th pillar: Innovation * Hard data Note: For further details and explanation..............72 ...■ Firm-level technology absorption............................................06 1......................■ Internet users* .........09 Cooperation in labor-employer relations .....................01 2................................07 6....123 ...................88 .01 11..■ 12................■ Protection of minority shareholders’ interests ...........■ Interest rate spread* ..........■ Extent of marketing .........■ Ethical behavior of firms ...............................121 ............01 12............................................................17 1...106 ..■ Government debt*.............................02 12..................06 7.........104 .....26 ..64 ........................63 .06 12.......■ Female participation in labor force*........................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.....08 6.......................................................................56 .........■ Agricultural policy costs .............■ Soundness of banks ...............................................................................................................■ Gov’t procurement of advanced tech products ................25 ............................................................39 .64 ...........09 6......................53 ......■ Diversion of public funds .....34 .08 7........■ Hiring and firing practices .........39 ...............■ Strength of investor protection*..............13 1..............30 ......84 ......................................■ Intellectual property protection.57 ................■ Quality of air transport infrastructure.........................■ Life expectancy*........■ Business costs of crime and violence ....................................07 2...................67 ....70 ....■ 9................................123 ...................................01 7...........................68 ............02 8........■ Wastefulness of government spending..........11 6...................................................■ 2..........■ Willingness to delegate authority .............■ Production process sophistication .........................55 ....................................04 12.05 7..........................15 Intensity of local competition .............................................................68 ..........02 1......1 .....■ Public trust of politicians.......................................85 .........................66 ......81 ....02 9.....43 ...........................106 ..■ Available seat kilometers* .■ Company spending on R&D ...............80 .........■ Business impact of HIV/AIDS ........■ Utility patents*.......■ 11th pillar: Business sophistication 11..............................■ Efficiency of legal framework in settling disputes..................■ Venture capital availability ....46 .....................■ Quality of math and science education .........■ Prevalence of trade barriers.01 1..85 ........................09 4..................

......................4..67 ......................................................113 ........50 ............6 Foreign currency regulations............................0 Policy instability..........3.........4 11th pillar: Business sophistication......2.................66 ...1............................8.4................................4................................000 2...................06 10........2..........7 Poor public health ........61 ... The bars in the figure show the responses weighted according to their rankings............2..................3..............................................3 Inflation ..3 Poor work ethic in national labor force ...................................5 2nd pillar: Infrastructure...........8 Corruption....... 2008 ...................................4 8th pillar: Financial market sophistication...............68 ...................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.................................3...........................................................................................4....2 Tax regulations ....1 Restrictive labor regulations ....3 Inefficient government bureaucracy....................4..4...............823.......70 ........000 4.................5.... 2008...........................................91 ........................0...2 9th pillar: Technological readiness.....2................................000 6...4 10th pillar: Market size.....3.......................77 .................1 Tax rates .....................6 Financial market sophistication Goods market efficiency Labor market efficiency El Salvador Efficiency-driven economies The most problematic factors for doing business Crime and theft ............................................80 ... 2008 ......................................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ........5 Inadequately educated workforce.......................0 Transition 1–2 1 GCI 2008–2009 (out of 134)......................................3........................8 5th pillar: Higher education and training .............3 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ........2 138 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers...................0..5 6th pillar: Goods market efficiency........................................000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.......22.......................................1 GDP per capita (US$)...4.87 ...... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5........7 Access to financing ................ 2008.4 7th pillar: Labor market efficiency ...6 GDP (PPP) as share (%) of world total......................5...................4..........4.81 .........1: Country/Economy Profiles El Salvador Key indicators GDP (PPP int'l $) per capita...................83 ..86 ..........18............79 .....9 Government instability/coups ..2...........51 ...4......................................3.................2......................................000 XXX El Salvador &&& Latin America and Caribbean 8.3.........................0 GCI 2007–2008 (out of 131).................................1 12th pillar: Innovation.............9......0 GDP (US$ billions).............22...................2 3rd pillar: Macroeconomic stability...............7.......................................................4 1st pillar: Institutions ..14.......1 Factor driven Basic requirements.........................................63 ............6............4 Inadequate supply of infrastructure ...............................3..........................95 ....7 4th pillar: Health and primary education ..............................0..................................... 1980–2008 Population (millions)..

...................40 ........07 11.........■ Flexibility of wage determination.............07 Capacity for innovation ...03 6..............■ Degree of customer orientation ..........................52 ........■ FDI and technology transfer ..01 11....75 ....29 ..........................................53 ...............................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.....87 ..............................■ Strength of auditing and reporting standards .................................■ Business impact of HIV/AIDS ...........................■ 10.....■ 12th pillar: Innovation * Hard data Note: For further details and explanation........05 Government surplus/deficit* ................................02 5.......................06 5.........01 1.01 12.......98 .70 ......92 ............118 ....................■ Brain drain ..........16 1...........08 6...............09 Financial market sophistication..................78 ...■ Protection of minority shareholders’ interests ..........08 Secondary enrollment* .........■ Ethical behavior of firms .....01 8............10 6............■ National savings rate*.......................32 ....80 ............■ Quality of scientific research institutions...40 ..........■ Organized crime...................77 .....................................................03 11.■ Prevalence of foreign ownership ...........05 11............62 .......................................05 9.....................07 9.........................82 .............14 1.....■ Willingness to delegate authority ..77 .............................................06 11.................... of procedures required to start a business* ..................10 1........82 .............................■ Business costs of crime and violence ..18 ...........90 ...........................01 9............60 ..02 4.........................................■ Buyer sophistication ............84 ..43 ..1: Country/Economy Profiles El Salvador The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 139 ......................■ Life expectancy*................51 .93 ..............01 4......................■ Quality of the educational system ...40 .■ Judicial independence .................■ Diversion of public funds ................................................■ Reliance on professional management ...............................................08 4...05 6.............■ Ease of access to loans ......51 ......08 8....07 4..........................................78 ... 2.................07 6.................................05 8..■ Effectiveness of anti-monopoly policy ............................03 2..11 6..■ Local supplier quality ..103 ....................15 1..............................................................................................................04 1...............................................43 ...........■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3........131 ....99 ..................................03 4........■ Interest rate spread* .....................................77 .02 11....................■ Local availability of research and training services ....90 .............■ Efficacy of corporate boards .........................................■ Quality of math and science education ..................13 1...61 ....■ 8.......111 .02 8...27 .................03 12...................35 ...............................................■ No.■ Quality of railroad infrastructure ...06 12........06 8..............................■ Gov’t procurement of advanced tech products ..............06 1.09 Cooperation in labor-employer relations .......94 ................................21 .........................09 Local supplier quantity .............................89 .05 2.....................01 7...38 ........37 .............68 ........■ Strength of investor protection*......99 ....03 1....15 Intensity of local competition ................................................................67 .......................................................06 7..............39 ......04 12.................55 ...........................03 9........■ Business impact of rules on FDI .89 ...................................................................■ Reliability of police services.■ Quality of air transport infrastructure..............................70 .....96 .......■ Restriction on capital flows ............................■ Tariff barriers* .12 1.....■ Extent of market dominance .........94 .........................■ Transparency of government policymaking ........................■ Prevalence of trade barriers..................77 ...■ 4.....04 4.............................11 1......81 ...................................35 ...............................04 11...................................121 .........■ Legal rights index*........43 ............................................■ Business impact of tuberculosis........60 ............07 2..........74 .........110 ..■ Control of international distribution .....45 .56 .......................08 Quality of overall infrastructure...■ Pay and productivity......02 6............................■ 9....69 .....70 ................................56 ..■ Efficiency of legal framework in settling disputes..........04 9.......................................100 .....■ Availability of scientists and engineers .........................02 1......■ HIV prevalence*.06 9.............................■ Inflation* .......................■ Quality of primary education...77 .01 5..........................04 8.......81 ..04 6...........■ Production process sophistication .............81 ....................................................................■ Wastefulness of government spending.......■ 7th pillar: Labor market efficiency 7...........07 1.............58 ..................■ Primary enrollment* ............05 1.■ Tuberculosis incidence*....■ 9th pillar: Technological readiness 10th pillar: Market size 10.................................01 6..........■ Nature of competitive advantage .....■ Personal computers* ...................■ Agricultural policy costs ........................10 4...........■ Laws relating to ICT.13 6........................................................60 ..■ Extent of staff training .....................................■ Extent and effect of taxation .............27 ........................................................125 ...............................■ Tertiary enrollment* ............01 Domestic market size index* ..■ Value chain breadth....02 Foreign market size index*..............03 7..■ Quality of port infrastructure...................06 4.......58 .................80 .........................................■ Burden of customs procedures ......■ 2.....08 7.......55 ..............■ Efficiency of legal framework in challenging regs ..................................55 .....................■ Quality of management schools ....49 .... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....................07 7.17 1.......07 8....71 ...■ 11th pillar: Business sophistication 11....■ Regulation of securities exchanges ...................................................■ Quality of roads.■ Firm-level technology absorption..............................02 9.............................................74 ....................48 ..........................................08 11.........■ Female participation in labor force*............19 Property rights .................101 .............■ Company spending on R&D ...............................................■ Extent of marketing ..................04 7...■ Intellectual property protection..................116 .................................80 .....01 2..................................................................■ Time required to start a business* ..................02 12..............85 ....................................................06 2.102 ...............08 1........................■ Government debt*......■ Malaria incidence* ........07 5...........106 ......83 .09 1.....................................■ Hiring and firing practices .......................................14 6..04 5...........02 7........■ Internet access in schools ..........■ Total tax rate* ...........02 2.....71 .........................09 6..............79 ......................................■ Internet users* ...............97 ..■ Favoritism in decisions of government officials .........................■ Mobile telephone subscriptions*........................101 ...03 3......05 7.....71 .........85 ...70 ............................................■ Public trust of politicians.....................18 1......25 .........108 .........77 ....■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.............■ University-industry collaboration in R&D .....02 3.................................101 .05 5....11 Business impact of malaria.....................................■ 12..........■ Available seat kilometers* ......03 5...........................■ Burden of government regulation........83 ......................77 .......■ Firing costs* ..........80 ...............................64 ..........12 6............■ Financing through local equity market.....08 Availability of latest technologies..■ Soundness of banks ...........09 4........04 3.....................■ Utility patents*.....62 .................■ Business costs of terrorism........■ Rigidity of employment*........■ Telephone lines* ......■ Education expenditure* ............62 ........06 6.........................■ Quality of electricity supply ..........................■ State of cluster development ......■ Infant mortality*...............03 8...............................................05 12................................■ Venture capital availability .............■ Broadband Internet subscribers*.44 ....................04 2........36 ...........................133 ........05 4..................01 3.........................................44 .........................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.........

..................................................7 GCI 2007–2008 (out of 131).............3.............23...........34 ..........................................7 Policy instability........................5..........34 .1.10...............4..................................................0....................4.......6 Tax rates .7 Inadequately educated workforce................4.6.................000 20...7 Factor driven Basic requirements............................ 2008 .........................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.7 3rd pillar: Macroeconomic stability.........28 ..6............................6 Poor work ethic in national labor force ....................................................................9............21 ......... 2008...299...6 Financial market sophistication Goods market efficiency Labor market efficiency Estonia Innovation-driven economies The most problematic factors for doing business Access to financing .4.......5 10th pillar: Market size.........27 ....1 6th pillar: Goods market efficiency...................................29 .........21..................3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.........................................1 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....6.21 .....................................................................1......5 Corruption.............................2.........................5 Tax regulations ..................9 Inadequate supply of infrastructure ............................................5....................................6....1..............8 7th pillar: Labor market efficiency ..................000 Estonia OECD 30.........................................5 Restrictive labor regulations ................1 1st pillar: Institutions .............. respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5....................37 .5..................04 40..........10....4 Government instability/coups ...............32 ...........4 Poor public health ...................11..........27 ...................................................................................4.7 Crime and theft ...4............................1 GDP (PPP) as share (%) of world total.............................................................9 8th pillar: Financial market sophistication...........16 .........3 Inefficient government bureaucracy................8 Inflation ........94 .............47 .......................4...............................4...................6 Transition 1–2 1 GCI 2008–2009 (out of 134).............7 5th pillar: Higher education and training ................................................3...0.............17. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ......2 GDP per capita (US$).................48 ...9 4th pillar: Health and primary education ........31 ...........35 ............................3 GDP (US$ billions)......................................................... 2008 ...............................4...........8 9th pillar: Technological readiness......0 140 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..............9 2nd pillar: Infrastructure............................2 Foreign currency regulations.........2.....................3 12th pillar: Innovation..4..0.....4...............4....4........ 1980–2008 Population (millions)....0 11th pillar: Business sophistication................42 .... The bars in the figure show the responses weighted according to their rankings...........................5.........1: Country/Economy Profiles Estonia Key indicators GDP (PPP int'l $) per capita................. 2008..000 10......................28 ..................

..............87 ...........................................34 ...................11 Business impact of malaria...05 4..........■ Nature of competitive advantage ......■ Ethical behavior of firms ..■ Tertiary enrollment* ...3 ........01 3..............................04 5.......The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1................03 5..11 1...........05 9..............■ Extent of marketing .............■ Infant mortality*.....■ Personal computers* ...13 1............■ Pay and productivity..27 ...........................................■ Intellectual property protection..........................02 12...............................................................06 9.......3 ...................■ Available seat kilometers* ..25 ......15 .....■ Life expectancy*............71 .................08 Secondary enrollment* ....01 5....19 Property rights ......■ Legal rights index*..07 8.................................................................................■ FDI and technology transfer ...............■ Transparency of government policymaking .......................................................21 .......................22 ...05 11..■ Local availability of research and training services ..............................02 5...........................................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.....07 2.02 2....■ Quality of air transport infrastructure...........................14 6............................................96 ..........87 .....................13 ......24 ...11 ......32 .......■ Quality of primary education..............15 ..................25 ...............01 4...05 7............................59 .......01 1......49 .........■ No..2 .............■ State of cluster development ..................■ Willingness to delegate authority ...........■ Financing through local equity market.............03 7.........■ Primary enrollment* ......................................................08 8..3 .....39 ..............................27 ...04 2.......10 6........49 ...................02 3.32 .............................................07 1........................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...........................■ Public trust of politicians.............■ Reliance on professional management .............................................................15 Intensity of local competition .■ Local supplier quality .................................................06 11.......■ Strength of investor protection*............02 6.03 8................16 1.■ Total tax rate* ..........63 ............26 ..■ Female participation in labor force*...........16 .................. 2..................................58 ..........06 8.........................05 Government surplus/deficit* ................■ Reliability of police services..118 ......40 ....................................■ Diversion of public funds ...........05 12............■ Tariff barriers* .....62 ....................■ Extent and effect of taxation ...■ Favoritism in decisions of government officials ...17 1........07 6.........01 Domestic market size index* ....12 .......22 ...........................................07 9.................................05 1..........05 5.............04 8.■ Quality of management schools .26 .............38 .......05 8.........■ Internet access in schools ...........27 ......................07 4...........04 11............■ HIV prevalence*...........................■ 9th pillar: Technological readiness 10th pillar: Market size 10.............................10 4........21 ............01 7................04 3...■ Laws relating to ICT..01 6.■ Business costs of terrorism.......................18 ..............................■ Business costs of crime and violence .....34 ......................................04 7............................................................................01 9................07 Capacity for innovation .................■ Production process sophistication .........................09 Cooperation in labor-employer relations .........58 .........................................■ Agricultural policy costs .....................01 2..........02 Foreign market size index*..........................06 7.............17 .........................................62 ..............■ 9....09 Local supplier quantity ......06 6..■ Degree of customer orientation ...■ Effectiveness of anti-monopoly policy ..............................43 ...13 6...35 ..............■ Strength of auditing and reporting standards .01 12.............04 9....51 ...■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.....................................37 .............................■ Rigidity of employment*......05 2.32 ....59 ..■ 12th pillar: Innovation * Hard data Note: For further details and explanation...................85 ..........................■ Organized crime...........■ Soundness of banks ............■ Efficiency of legal framework in settling disputes...47 ......10 ..■ University-industry collaboration in R&D ............................39 .............................26 ..................17 ...........■ Ease of access to loans .■ Inflation* ..............04 1.........................34 ..............................................................■ Prevalence of foreign ownership ...34 ..........................................................................■ Restriction on capital flows ....■ Firm-level technology absorption........................................12 6................................................06 2. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.09 6.........77 ............27 ...■ Availability of scientists and engineers ....4 .............■ Judicial independence ............■ Wastefulness of government spending.................■ Burden of customs procedures .....■ Mobile telephone subscriptions*....40 .................24 .........21 .03 6..................■ Extent of staff training ...07 5.........02 1............................119 ............10 1..............44 .....06 5......05 6..............................02 11................■ Brain drain .........................................42 ..............1 ...............................................■ 7th pillar: Labor market efficiency 7..........08 1..15 1................60 ........82 ......................5 .......17 ......................................................51 .......■ Utility patents*.08 11.............................................................■ Venture capital availability ........................01 8..................14 1...................................56 .............................................59 ............29 ..............................................■ Quality of the educational system ..................09 4......■ Quality of math and science education ..8 .....10 ........................■ National savings rate*....................16 ................................30 ....................................1: Country/Economy Profiles Estonia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 141 .....■ Business impact of HIV/AIDS .....................01 11...................■ Gov’t procurement of advanced tech products ........................07 11...■ Prevalence of trade barriers..........35 ..........................■ Telephone lines* ......86 ....................................................■ Quality of railroad infrastructure ......59 ..........■ Quality of roads..............■ Tuberculosis incidence*........09 Financial market sophistication.......09 1......36 ......................■ Malaria incidence* ........■ Protection of minority shareholders’ interests ..03 4.....................■ Buyer sophistication ....................■ Time required to start a business* .....................02 7....................................■ Quality of scientific research institutions.......04 4....39 .■ Extent of market dominance ..................................26 .........................................................................77 ........■ Quality of port infrastructure.............................................................■ Firing costs* ............52 ...........................■ 4..106 .................■ Business impact of rules on FDI ..........■ Education expenditure* ..........08 Availability of latest technologies.............■ 12...02 4..27 .....................03 11...■ Internet users* ......................18 1.................................■ Quality of electricity supply ...............■ 2...■ Business impact of tuberculosis...................08 Quality of overall infrastructure...........36 ........................................■ Burden of government regulation......■ Control of international distribution .............■ Regulation of securities exchanges .....33 ..29 .04 6.....■ Value chain breadth..7 ..............................................................07 7...■ Flexibility of wage determination..................................12 1......50 ........03 12........04 12..51 ...........43 ............02 9...........03 3................67 ...............51 .........03 2........................................................................................41 ...................22 ...................................03 9....................................................11 6........■ Efficacy of corporate boards .............................................■ Government debt*..............................06 12..........................................■ Hiring and firing practices .1 ................08 7................06 4...39 ..........................................06 1..08 6.51 .■ 10..............................■ Interest rate spread* .......................■ Efficiency of legal framework in challenging regs ..........38 ...........29 ......19 ..15 .....36 ..................08 4......■ 11th pillar: Business sophistication 11.......■ Broadband Internet subscribers*...........02 8.■ Company spending on R&D .....■ 8........03 1.. of procedures required to start a business* .......60 ..

..................4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...........2 Government instability/coups ..............3 Poor public health ................................................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..................3..............131 .......................................0 GDP (PPP) as share (%) of world total.................................106 ...............................................0........7 Crime and theft ............................0....10 2.....................116 ........16..........7 Tax regulations ....324..500 1.....................9....................4 Transition 1–2 1 GCI 2008–2009 (out of 134).....................................................2.......2.2............8 2nd pillar: Infrastructure........69 ...2..................76 .......0 Inadequate supply of infrastructure .......1 Poor work ethic in national labor force .118 .....................4 GCI 2007–2008 (out of 131).............................120 ..........1 Inadequately educated workforce...................................8 7th pillar: Labor market efficiency ........75 .........................3..............0 Access to financing ............7............................................3.. 2008 ............2 GDP (US$ billions)...0 11th pillar: Business sophistication..7 GDP per capita (US$)................112 ............25.............3.......3.........85............6 1st pillar: Institutions .....................................3....121 ..................123 ..............7 Financial market sophistication Goods market efficiency Labor market efficiency Ethiopia Factor-driven economies The most problematic factors for doing business Inflation ..... 1980–2008 Population (millions).............3.............................................3...96 ...................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..7 Foreign currency regulations................................ The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .4 Tax rates ..3............4......118 ................3........111 ..3..3 Inefficient government bureaucracy.........................................8 4th pillar: Health and primary education ....... 2008.........................................................3.............1: Country/Economy Profiles Ethiopia Key indicators GDP (PPP int'l $) per capita........7 Policy instability..3 10th pillar: Market size..9 Corruption...................................................3...............0........................6............9 3rd pillar: Macroeconomic stability.8 142 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers......3.7 6th pillar: Goods market efficiency................................0.............2...................................................................16.......................................................................120 ...........................125 .......1 9th pillar: Technological readiness. 2008..........1 Restrictive labor regulations ...................000 500 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..............3 8th pillar: Financial market sophistication............3 12th pillar: Innovation....4..........................3........13..............6....000 Ethiopia Sub-Saharan Africa 1.........................................................................................................................12.........115 ...................................3 Factor driven Basic requirements................ 2008 ........ The bars in the figure show the responses weighted according to their rankings....0...127 ......3 5th pillar: Higher education and training ..............................

....110 .......................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.........106 ...................■ Reliance on professional management ..05 12.■ Business impact of tuberculosis........................................04 5....08 7........96 .....................03 7...................................■ Tariff barriers* ...10 4................■ Prevalence of trade barriers.......................................12 1...................■ Tuberculosis incidence*.............................10 1.■ Buyer sophistication ....■ Business impact of HIV/AIDS ............................04 9................................■ Quality of electricity supply .............................130 ...........116 .......05 4............■ Strength of auditing and reporting standards .............■ Internet users* ...62 .................................................97 ....■ Inflation* ..............■ University-industry collaboration in R&D ....■ Quality of primary education............04 3....74 ............................121 ...........59 ..93 ...................■ Extent of market dominance ..................................114 ........■ Extent of staff training .......................06 4............01 4.....■ HIV prevalence*.....................01 8................122 .........................................02 12..........................................74 .....................................113 .11 6......■ Burden of government regulation..........03 8...........................................................104 ....................114 ...04 12.......■ Education expenditure* ...............70 ..11 1................23 ..................78 ............■ Life expectancy*.......■ Ethical behavior of firms ..............■ Availability of scientists and engineers ...65 ...................................07 4.09 Cooperation in labor-employer relations ...■ Business costs of terrorism..........09 6...............123 .........63 ........■ Prevalence of foreign ownership ...........117 ............15 1.............130 ............01 Domestic market size index* .............42 ...........05 2.....07 2.....96 ..........13 1.........07 5................................■ Firing costs* ................................................119 ......115 .06 2..........■ Soundness of banks .........................................■ Company spending on R&D ..03 9....................................63 ........119 ...129 ............................130 ..........02 8..........................................04 8........04 6..................07 7.05 7..■ 11th pillar: Business sophistication 11........124 .....................................................■ Organized crime.08 8..............■ Efficiency of legal framework in challenging regs ...........02 7........................87 ......■ 12....61 .....■ Malaria incidence* ..............95 .......■ Infant mortality*................119 ....■ Quality of the educational system .......123 .....08 6................03 1.....119 .■ Nature of competitive advantage ...........04 1..■ 8.........■ Control of international distribution .......................................15 Intensity of local competition ..01 12.....................................................................■ Judicial independence ...........■ Quality of math and science education .....01 7.03 2... 2................■ Hiring and firing practices ..■ Local supplier quality .........07 9............06 11.............................123 .............02 4......................................................................■ Ease of access to loans ....96 ..............96 .............08 Quality of overall infrastructure.........■ Quality of port infrastructure................09 4...............................61 .......■ 9th pillar: Technological readiness 9........68 .■ Willingness to delegate authority ...14 6..................■ Quality of roads.............08 1............................67 .......19 Property rights ..■ Personal computers* .....■ Utility patents*.02 6.................................................■ Interest rate spread* ......................91 ......................05 8..................■ Pay and productivity......58 ..107 ............................02 11.....■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3................121 ..........................16 1....................................................05 5......................124 ..................10 6..............................■ Legal rights index*.............68 .................................................................105 .03 3..14 1..........90 ................12 6...........■ Government debt*..........01 11.........67 ..08 Secondary enrollment* ............■ Strength of investor protection*...........80 ...............118 ....................■ Primary enrollment* ..01 5...■ Local availability of research and training services ..............■ Intellectual property protection..............01 6......02 2.....106 .......................126 ........01 1.■ Extent of marketing .......■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6....■ Regulation of securities exchanges ...44 .■ Gov’t procurement of advanced tech products .........................■ Quality of scientific research institutions..........................■ Protection of minority shareholders’ interests .....83 ...........■ Restriction on capital flows .............................05 6...................................................■ Mobile telephone subscriptions*...................................■ Financing through local equity market....................92 .....................................64 ....................02 1......07 1.............■ Time required to start a business* ...............03 5.............83 .......■ Effectiveness of anti-monopoly policy .................01 3.......................83 ................■ No..■ Reliability of police services.09 1.01 2.........................116 ..................110 ..........06 1....................■ 10....124 ........■ Business impact of rules on FDI ...............................04 4..■ 7th pillar: Labor market efficiency 7.............■ 4.120 ................................■ Broadband Internet subscribers*..121 ......................................121 ........................74 .........................■ National savings rate*..09 Local supplier quantity ...............■ 10th pillar: Market size 10..............07 6..123 ..................................01 9.............................................90 .13 6.................................................................................46 .....■ Efficiency of legal framework in settling disputes........................89 ............130 ...........111 ....................................08 4................95 .......113 ......■ Brain drain .........................03 12.........■ Efficacy of corporate boards .60 .................■ Degree of customer orientation ..18 1.........■ Quality of management schools ..■ Diversion of public funds .■ Laws relating to ICT....06 12..........■ 12th pillar: Innovation * Hard data Note: For further details and explanation..........04 11........107 .................................96 .......... of procedures required to start a business* ..................03 11.......■ Extent and effect of taxation ...........130 .................................................80 ..............................................■ Business costs of crime and violence .................................................■ Burden of customs procedures ..■ State of cluster development ...■ Venture capital availability ................■ Quality of railroad infrastructure .........................■ Value chain breadth.....■ Telephone lines* ..........................98 ..132 ...............................08 Availability of latest technologies...06 9.....................■ Internet access in schools ..75 .■ Transparency of government policymaking ................................02 3.......■ Flexibility of wage determination............05 Government surplus/deficit* .....................122 ........The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.....■ Firm-level technology absorption......................................110 ..............06 7..............................................08 11.....■ Wastefulness of government spending................1: Country/Economy Profiles Ethiopia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 143 ........................................112 ............04 7....02 9................................■ Production process sophistication ............03 6...02 Foreign market size index*......05 1....■ Available seat kilometers* .......28 ..............................124 ..........117 ..........05 9..109 ...07 Capacity for innovation ....124 .......................................■ Quality of air transport infrastructure...............06 6...........................11 Business impact of malaria....103 ..............■ Rigidity of employment*..............................■ Female participation in labor force*.■ Tertiary enrollment* ............................................110 .............■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5...................................................■ Agricultural policy costs ...05 11..................101 ..................................17 1.....126 ......111 ...............06 8....09 Financial market sophistication.......................................................................................07 8...80 .............63 ..................03 4........114 ....■ FDI and technology transfer ..............58 ...................■ Public trust of politicians....07 11.................................02 5..04 2.■ Favoritism in decisions of government officials .77 ...................126 ...............75 .............................................................■ Total tax rate* ............................................118 ........■ 2...26 ..06 5...........................

....................10 ...................0.....................................5.......................5 Factor driven Basic requirements.................989.............4..... 2008 ......0 2nd pillar: Infrastructure.....9 .5....9 Inadequate supply of infrastructure ...........2 5th pillar: Higher education and training ..5................ 1980–2008 Population (millions).........................1......6 ..000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..1 Corruption.....................0..3 9th pillar: Technological readiness.21..........6...................................0...................................4 ....0...........................0 7th pillar: Labor market efficiency ..9 Tax regulations .................................5............................3...............6 ......................................10 ..........1 ...........28 40..............9 Inflation ..........................................................6 ..6 10th pillar: Market size.5..........................5....................................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..................................................................3 GDP (US$ billions)....19 .........................................................5 144 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers........................................22......2 Foreign currency regulations...........2 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..0 6th pillar: Goods market efficiency......................17........1: Country/Economy Profiles Finland Key indicators GDP (PPP int'l $) per capita..........................8 4th pillar: Health and primary education ...................000 Finland OECD 30...5.......................0 GDP per capita (US$)......1 ............................... 2008...............5.....................5..... 2008 ....................................6..............000 20.6 Restrictive labor regulations ...000 10..................................5 Financial market sophistication Goods market efficiency Labor market efficiency Finland Innovation-driven economies The most problematic factors for doing business Tax rates .........0........................1........................23 .....................................................6 .....5 GCI 2007–2008 (out of 131)........................5.......................6 Government instability/coups ...5..12......................................................3...........................4 12th pillar: Innovation........5 11th pillar: Business sophistication.....................12 ..........6...3 ......9 3rd pillar: Macroeconomic stability... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ... 2008........6...........................................2............53 ......................7 Inadequately educated workforce.............5..6 Access to financing ........4.............7 ...........4 Transition 1–2 1 GCI 2008–2009 (out of 134)..............................................9 8th pillar: Financial market sophistication...............................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors............5 Poor public health .............0 1st pillar: Institutions ..7 Inefficient government bureaucracy........3.......................2..............5...................51................. The bars in the figure show the responses weighted according to their rankings..............1 .....9 Poor work ethic in national labor force ...................................12 ...............8 Policy instability..4 Crime and theft ...6...............4 GDP (PPP) as share (%) of world total..........................................................274..................

.....................■ Female participation in labor force*.............02 9.....3 .....■ Organized crime......■ Laws relating to ICT....................3 ........08 8.................53 ...................03 7...........06 1...■ Favoritism in decisions of government officials ....08 1.... 2.....................................05 12........■ Extent of market dominance .....01 6................................■ HIV prevalence*...........................04 8.............■ Inflation* ........■ Prevalence of foreign ownership ......■ Soundness of banks .02 6.....51 ....................06 2....5 ..■ Public trust of politicians...■ Intellectual property protection.......03 5.................................6 .■ Quality of port infrastructure.11 Business impact of malaria....................05 8......02 Foreign market size index*.........■ Total tax rate* ...........■ Reliability of police services..................................................................................9 .....04 1....2 ..................18 ...........................15 ............09 Cooperation in labor-employer relations ...................05 11....7 ....................10 .........■ Local supplier quality .....04 4..............07 7........................................06 5....■ Tertiary enrollment* ....................................22 ......■ Local availability of research and training services .04 7............................08 11................05 2.■ National savings rate*.........■ Judicial independence ...9 .................................4 ...................................................04 3.........■ Diversion of public funds .................01 7....................................46 .01 5..................................................................................■ Ease of access to loans ...03 4.............■ Venture capital availability .............09 6................05 Government surplus/deficit* .....41 .......9 ..................................................69 ...31 ..................9 ..........05 1..12 ..................3 ..............................5 ...............■ Extent and effect of taxation ...............4 ..................7 ....................■ Business impact of tuberculosis....3 ............5 .............3 ...................................................■ State of cluster development .........46 .......15 1.........■ Strength of investor protection*.............■ Tuberculosis incidence*.....................08 4.07 11....86 ........■ Malaria incidence* .........7 .....■ Quality of the educational system ...............02 3.........................18 ...................42 ....04 11.....■ Degree of customer orientation ...■ 2nd pillar: Infrastructure 2..........80 ........■ Government debt*............5 ......04 9............................01 12.............■ Quality of primary education..............................■ Value chain breadth............................■ Tariff barriers* .....................................03 3........................03 9.......09 Local supplier quantity ....................................12 6.......31 ....................02 1.........■ Business impact of HIV/AIDS ...■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.......07 8....05 5.■ Burden of government regulation.13 1..............13 ..12 ....................................7 ....03 6.9 ..............■ Efficacy of corporate boards .................................2 .............................04 12.05 9...........■ Personal computers* ...............7 ......■ Extent of marketing ...............■ Rigidity of employment*...............07 2.10 1................................................................01 1....................05 6.....................................06 6....................■ Efficiency of legal framework in settling disputes.........................................102 ..............................13 6............................■ 11th pillar: Business sophistication 11..18 ...............■ 3rd pillar: Macroeconomic stability 3.......................16 1..........................■ Nature of competitive advantage ....19 ...................109 ................................06 11............................■ Business costs of terrorism............27 .......................■ Production process sophistication .................01 Domestic market size index* ................4 .....03 8.............07 9.........■ Quality of math and science education .....10 ........................12 1...............................................................■ Legal rights index*...83 ...........■ Restriction on capital flows ........■ Quality of scientific research institutions............................3 ........6 .......................08 Quality of overall infrastructure.....................16 .......................■ Utility patents*........49 .....................4 ...8 .....■ 10.......................................................................07 5...............■ Quality of management schools ................................■ Time required to start a business* .......................................................19 ......■ Control of international distribution ..06 7....07 4................................6 .........02 11..............................04 5......................■ Telephone lines* ....................................09 1........71 ..............■ Prevalence of trade barriers.........■ FDI and technology transfer ............10 4..13 ..■ Firm-level technology absorption....02 2.................................................38 ....■ 9....................06 12..........13 ....6 ..............■ Availability of scientists and engineers .........17 .........1: Country/Economy Profiles Finland The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 145 .....1 ......................71 .............01 8.....................................................14 ...■ Education expenditure* ........7 .......................5 ........■ Strength of auditing and reporting standards .........................15 Intensity of local competition ...03 2........................................................................■ Quality of railroad infrastructure ...........07 1.....■ Burden of customs procedures ........ of procedures required to start a business* ............................................03 1................14 1................■ Buyer sophistication ...............................■ Quality of air transport infrastructure.........................02 7...................■ Wastefulness of government spending..........................■ Infant mortality*..3 ..............02 4.......■ 7th pillar: Labor market efficiency 7.■ Available seat kilometers* .............06 4..08 Availability of latest technologies......................................................■ Quality of roads.........4 ....■ Regulation of securities exchanges .............................■ Effectiveness of anti-monopoly policy ......1 ..................................................................125 ...05 4....5 ..■ 12................12 .....■ Ethical behavior of firms ..............................■ Extent of staff training ....................................■ Transparency of government policymaking ....6 .............■ Flexibility of wage determination................03 11.........................6 ...............■ Life expectancy*.6 ........11 ............................................................9 ............................................................................■ Pay and productivity.■ Broadband Internet subscribers*..........7 ............1 ................11 1............■ 4........■ Company spending on R&D ......■ Firing costs* .......02 8.........................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1..............................................................25 .09 Financial market sophistication...24 .........■ Protection of minority shareholders’ interests ..........................08 7................■ Reliance on professional management .............12 .....■ Quality of electricity supply .........................................................................................................................■ Willingness to delegate authority .........31 .........................■ 9th pillar: Technological readiness 10th pillar: Market size 10....15 .....07 Capacity for innovation ...............................■ Interest rate spread* ..................42 ............ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........3 .....................................04 6.......■ Brain drain .......1 ..........■ No........39 ........6 .............................................■ Gov’t procurement of advanced tech products ..................................■ Financing through local equity market................................................7 ...........................09 4.....36 ..........08 6............................01 2.................................02 12......■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6....................18 1..................11 6.........10 6........■ Primary enrollment* ..............5 .......................02 5.......................■ Internet users* .....06 9................03 12.......08 Secondary enrollment* .17 1......15 ......01 11...........■ 12th pillar: Innovation * Hard data Note: For further details and explanation...............■ Hiring and firing practices ..1 ....01 4.......................4 .....01 3...................10 ...■ 8.3 .......■ Efficiency of legal framework in challenging regs ..■ Internet access in schools .............4 ...■ Mobile telephone subscriptions*...............8 .............01 9...........................................36 .■ Business impact of rules on FDI .............■ University-industry collaboration in R&D ....................■ Business costs of crime and violence .....06 8.....14 6...3 .................07 6.4 .............................8 ...................................................9 ...........1 .........■ Agricultural policy costs ...04 2...19 Property rights ...........3 ...05 7................

................3 12th pillar: Innovation...........1..............................4.......................................3 ..........8 Policy instability............2 146 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..........................1 5th pillar: Higher education and training .......17.............15 ..... 1980–2008 Population (millions).................................7 Inadequate supply of infrastructure .3 Inefficient government bureaucracy.............................................3 Inflation .........................46...9 9th pillar: Technological readiness....................6..............5.................4 8th pillar: Financial market sophistication................4.....0.........................................................2 Factor driven Basic requirements..1: Country/Economy Profiles France Key indicators GDP (PPP int'l $) per capita.........................................5 Inadequately educated workforce.....9 GDP (US$ billions)........................................................8 .................................................3...........000 20.................................08 40...................18 ..............5 Financial market sophistication Goods market efficiency Labor market efficiency France Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations ................5...10 .............23..3 Poor public health ..........11 ..................................4...............5...........................................................................................5......4..000 France OECD 30............... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .4.... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5......................................61...5..................................2 Government instability/coups ..................................................2....... 2008...............9 GDP (PPP) as share (%) of world total....................................................16 .................................................................1 Transition 1–2 1 GCI 2008–2009 (out of 134)........................6.....................3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..............24 .............2 10th pillar: Market size..3 6th pillar: Goods market efficiency...................................16 .............5................................4 Access to financing ........................................0...... 2008............................ 2008 ...5...5.....15........................1...58 ..............................1......9...........2.........015...000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010..........................................000 10.......5 Crime and theft ...........9 7th pillar: Labor market efficiency .........18 ....21 ............7 Corruption..4..7 GDP per capita (US$)...........................2 GCI 2007–2008 (out of 131).......1.3 Tax regulations ...............................................5........5.....5 3rd pillar: Macroeconomic stability.2.....................9 11th pillar: Business sophistication......3 Foreign currency regulations.............15 ......8 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....................7 Tax rates ..........................6 1st pillar: Institutions ...................67 .......................865.......... The bars in the figure show the responses weighted according to their rankings....15 .............7 Poor work ethic in national labor force ..25 .... 2008 .1......17...........0 2nd pillar: Infrastructure.........26 .......5..16 ..0........7 4th pillar: Health and primary education .......

.... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.........■ Soundness of banks ...................................................................116 ...16 1................■ 2nd pillar: Infrastructure 2.........06 6.................................■ Wastefulness of government spending.............11 1..8 ..............................■ Internet users* ...04 12...............................................................................01 11....5 .........■ Value chain breadth...17 ........76 ...................................................05 4.................08 8.............................................42 .............03 3........■ Extent of market dominance .....11 ......03 1...■ 9th pillar: Technological readiness 10th pillar: Market size 10.........................................10 1.......■ 11th pillar: Business sophistication 11.............................■ 8..............06 1....................................■ Business costs of crime and violence .............■ Government debt*..■ Burden of customs procedures .......03 11................06 8.....13 .................■ FDI and technology transfer ..............36 ........■ Restriction on capital flows .....04 2.......................07 5....24 .....03 8...01 1.2 .................................................02 9.........■ Quality of the educational system .■ Financing through local equity market......37 .......07 8................15 ....05 1..............7 .....................................................01 3.■ Pay and productivity...................................■ Internet access in schools ...................................................................................................................■ Transparency of government policymaking ...........32 .........................15 Intensity of local competition ..■ Reliability of police services.............33 ...42 .........04 3....................02 12..■ Business impact of HIV/AIDS ....................................09 Financial market sophistication..............................■ No............................45 ..................................07 7........................40 .................................................■ Gov’t procurement of advanced tech products .■ Control of international distribution ........02 8.........04 4....10 .........................■ Diversion of public funds ..................■ Organized crime........40 ..12 6.....■ Malaria incidence* ...........25 .............................................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1...........1 ..........................................■ Legal rights index*...............■ Extent of marketing .........09 6...06 2..........09 1.......04 1.............05 11........■ Utility patents*..................02 5.................■ Inflation* ..............01 6.........■ Tariff barriers* ....................■ University-industry collaboration in R&D ......................6 ......06 7...................70 ...............................14 ..■ Primary enrollment* ...31 .........05 Government surplus/deficit* ...42 ...................■ Prevalence of foreign ownership ..21 .......7 .08 Quality of overall infrastructure.................■ 12..........05 9..........................11 6..■ Efficiency of legal framework in settling disputes.12 1..............02 2....................09 Local supplier quantity .................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5.......9 ...27 ......■ Quality of electricity supply .......5 ......1: Country/Economy Profiles France The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 147 ..........06 11......................................■ Production process sophistication ...47 ........................ of procedures required to start a business* .........................................08 11........................................................................■ Personal computers* ..................03 5......01 2............................15 1......................................................................................05 7.................127 ...........■ Flexibility of wage determination............03 7..25 .5 .....■ Buyer sophistication ..............05 5............04 7........05 12............■ National savings rate*.........................................10 6...02 Foreign market size index*......13 6....■ Rigidity of employment*..........................10 4...................05 8........8 ...... 2....14 1............................................................■ Firm-level technology absorption..■ Infant mortality*.................9 .37 ......................■ Intellectual property protection...................■ Efficacy of corporate boards .....■ Mobile telephone subscriptions*..................................................■ Firing costs* .....................................................07 4......................................................■ Brain drain .......................................................■ Broadband Internet subscribers*.........119 .......10 .■ Protection of minority shareholders’ interests ........................■ 12th pillar: Innovation * Hard data Note: For further details and explanation............29 ..............11 Business impact of malaria................01 12...............................................7 ............■ 9....04 9.04 8...................19 Property rights ..................14 6....8 ...................................................8 ...........17 ...................05 2........................32 ...31 .................07 9.......74 ........01 5...........■ Willingness to delegate authority .........................■ Regulation of securities exchanges ..■ Prevalence of trade barriers......01 Domestic market size index* ..............■ Life expectancy*.........06 9.........03 6.............01 7.......■ Tuberculosis incidence*..24 ......02 11.■ Education expenditure* ...................■ Extent of staff training .57 .............04 5...............................■ Quality of air transport infrastructure..............18 1...........................26 ........................17 .........■ Favoritism in decisions of government officials ..11 ..............................03 2.............■ Strength of investor protection*.........49 ..................■ 7th pillar: Labor market efficiency 7.......26 ............87 ..55 .....01 9.....■ Efficiency of legal framework in challenging regs ................................02 1...■ Interest rate spread* ..........126 ........15 .............■ Venture capital availability .......55 ....■ Local availability of research and training services ..42 .........■ State of cluster development ..........................................................1 ...................................■ 4.......................................51 ..................................■ Strength of auditing and reporting standards ..........................................15 ....92 ...41 ...........08 Secondary enrollment* .......03 12.............■ Tertiary enrollment* ......17 1.....................11 ...............................10 ......05 6....................■ Public trust of politicians..■ HIV prevalence*................11 .................................................................08 6...............3 ..66 .........■ Quality of management schools .■ Company spending on R&D .......................................................11 ..62 ...4 ...................................02 7.......................■ Effectiveness of anti-monopoly policy .......17 ..■ Quality of primary education...............■ Quality of scientific research institutions......................................13 1...........02 6.............■ Degree of customer orientation .■ Judicial independence ....27 .....................................................■ Available seat kilometers* ..................■ Female participation in labor force*....31 ................17 ....06 12........................■ 3rd pillar: Macroeconomic stability 3.......01 8.59 .07 1............■ 10......25 ................■ Nature of competitive advantage .....113 ..06 4.35 ....06 5.31 ................04 11.....8 ..07 Capacity for innovation ..................■ Telephone lines* ...........................116 ....25 .................■ Ethical behavior of firms .............■ Quality of math and science education .........5 ...................18 .........22 .................................■ Reliance on professional management .■ Business impact of tuberculosis.....................02 4.......36 ................................92 .........12 .04 6....................09 Cooperation in labor-employer relations ..................................03 4.....................................9 .■ Burden of government regulation.................................................03 9............■ Quality of roads.■ Time required to start a business* ...........28 .09 4................■ Hiring and firing practices ..........07 6.....................54 .........15 ........08 1...■ Extent and effect of taxation ..10 ...........5 ................08 4...................29 ...........................................................................■ Business impact of rules on FDI ......16 .■ Quality of railroad infrastructure ............07 2................■ Agricultural policy costs ..........08 7.......■ Quality of port infrastructure......................29 ............................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6........................■ Total tax rate* .........................................................■ Business costs of terrorism.....................................15 ............29 .....01 4..............■ Availability of scientists and engineers ..................................■ Ease of access to loans .■ Local supplier quality .............................35 ..................08 Availability of latest technologies........44 .......07 11.......02 3..............................................10 ....42 ...........■ Laws relating to ICT........................................19 .

.............................4..........................131 .....................1.....8...............................................................1: Country/Economy Profiles Gambia......................26 ........................3......... 2008 .......................5 5th pillar: Higher education and training ......... The bars in the figure show the responses weighted according to their rankings....9 9th pillar: Technological readiness..........102 ....0 Inflation ......................... The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 .....................4...............4 6th pillar: Goods market efficiency...................0...............................................000 The Gambia Sub-Saharan Africa 1......................2...............3 7th pillar: Labor market efficiency .....0..........2 Inadequate supply of infrastructure ........7 Poor work ethic in national labor force ...........6 Factor driven Basic requirements.......6 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.........4... The Key indicators GDP (PPP int’l $) per capita.....................................................0..............7 Restrictive labor regulations ..0 Transition 1–2 1 GCI 2008–2009 (out of 134)... 1980–2008 Population (millions)..4....92 .....67 ..9 GCI 2007–2008 (out of 131)............3 Government instability/coups .......9..........2 10th pillar: Market size............... 2008.............87 ..12.............4.9 Tax regulations ..2 Inefficient government bureaucracy.............3.........0.............2...........117 ......00 2...............3..........3.........................4....60 ......3.....1............................4 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......9 2nd pillar: Infrastructure..................................69 ..................9 Foreign currency regulations.............................9 148 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers........90 ...........2...100 ......6 GDP (PPP) as share (%) of world total......3 4th pillar: Health and primary education .....3........4...................................4...............................8 8th pillar: Financial market sophistication..........................................6 Tax rates .......................6 Inadequately educated workforce.....1 Policy instability....8 GDP per capita (US$)..........................................72 .........................8 GDP (US$ billions).........7 Poor public health ..............4... 2008.................................................................7................................1....000 500 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.......4.......500 1.....................76 ...............16...........0 12th pillar: Innovation..0 3rd pillar: Macroeconomic stability...3............ respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5...........................................................60 ..............101 .....................................3.......................................495............................................5 11th pillar: Business sophistication............................2.................24....1..............................81 ............................................................................91 ...................27 ...........................................................................3 1st pillar: Institutions ..........1 Financial market sophistication Goods market efficiency Labor market efficiency The Gambia Factor-driven economies The most problematic factors for doing business Access to financing . 2008 .......8 Crime and theft .......................................................6 Corruption......3...

.........................90 ...........................91 .........■ Rigidity of employment*....................08 7...................01 6......11 ...■ Pay and productivity...........................■ Available seat kilometers* .......................■ Availability of scientists and engineers ..............■ Quality of roads..35 ......■ 12th pillar: Innovation * Hard data Note: For further details and explanation....... 2..■ Firm-level technology absorption....03 2..................01 11......01 7........55 .■ 4..■ Quality of management schools .......................................03 12.....................01 1......■ Government debt*........................................48 ..................06 4............■ Ease of access to loans ....46 .....■ Willingness to delegate authority ..■ Ethical behavior of firms ..21 .......58 ......................................................................................■ Quality of scientific research institutions..02 12.......................35 ............................■ Brain drain ..............106 ....................................07 6................■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..........■ Intellectual property protection..■ Public trust of politicians........................06 6..........■ Degree of customer orientation .............02 7.........02 6................06 8.............95 ................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.................20 ................................08 8................121 ............■ Internet users* ...........11 Business impact of malaria....■ Business costs of crime and violence ....■ Reliance on professional management ....■ Internet access in schools ..........................21 ..09 Cooperation in labor-employer relations ...................■ Business impact of rules on FDI ...........12 6................76 .....22 .108 ......................................................................................■ Life expectancy*.........06 11.......■ Favoritism in decisions of government officials ............■ Reliability of police services......05 2.......................................................................................■ Agricultural policy costs .......40 ..■ Tariff barriers* ....41 ............................07 Capacity for innovation .04 9.......15 Intensity of local competition ................45 ..............................■ Mobile telephone subscriptions*..............07 1..03 7...............................■ Restriction on capital flows .........................■ Prevalence of foreign ownership ...■ 10...................................37 ..■ 9........................45 ................03 3............33 .............■ Utility patents*.....................................20 ................13 1..49 ..04 3....15 ...13 ....■ 8.....■ Business impact of HIV/AIDS .....................■ University-industry collaboration in R&D .....130 ........41 ......18 1..........................■ Value chain breadth...................49 .■ Prevalence of trade barriers..............08 4...........................■ Legal rights index*.........04 1...04 8....................■ Extent and effect of taxation ..............................................................................................■ Broadband Internet subscribers*..84 ..07 5.........04 5...........02 Foreign market size index*.......54 ........................................................05 5......31 .................■ Strength of auditing and reporting standards .......■ Tertiary enrollment* .........106 ......................04 4........................9 ..............■ 9th pillar: Technological readiness 10th pillar: Market size 10.......02 8..........01 8...............■ Wastefulness of government spending....................129 .........14 6..36 ..........10 6.............43 .....03 1.01 9..................02 2.........07 4..................■ State of cluster development .................126 .......n/a Quality of port infrastructure.....................................................■ Inflation* .9 .............................................■ Quality of railroad infrastructure......................46 ........124 .........04 6..■ Quality of electricity supply .................................................13 6.....■ 11th pillar: Business sophistication 11....................109 ..09 4.................01 3.................70 ..........■ Organized crime...03 4.....■ Quality of air transport infrastructure....27 .............■ Hiring and firing practices ..........................01 5...................112 ....................................................65 ......75 ...............02 4.............................60 .■ Business impact of tuberculosis......19 Property rights .01 12...118 .54 .............05 1............■ Production process sophistication .........................................02 5.....■ Education expenditure* .................................03 5..02 11..............................■ Control of international distribution .................48 ..........78 ................02 9.....■ Extent of market dominance ...71 ...................■ Financing through local equity market...................16 1..........■ Business costs of terrorism..........................................................89 .......................................04 7..............11 ...76 .......81 ..................................................40 ..................................05 11..........■ Gov’t procurement of advanced tech products ........130 .......................07 7.....■ Venture capital availability .................05 4.01 4.03 8. The The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 149 ..............................07 8..............04 12.....................................53 .................■ 12..................................11 1..............117 ................06 12...............................81 .......107 ..... of procedures required to start a business* ...............................................................■ Time required to start a business* ...............58 .■ Total tax rate* ...37 .................36 ...................■ Regulation of securities exchanges ..........02 3............10 1..■ Burden of customs procedures .....................06 9.05 7......08 Quality of overall infrastructure.........................129 .......................121 .03 9...113 .............■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.........■ Extent of staff training .■ Quality of math and science education ...............................09 1...05 9...............105 ............20 ........................■ Flexibility of wage determination........98 .......■ Judicial independence ............08 11.44 ..........111 .................29 .109 .........44 ...............01 2..........................The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.....03 11.........■ Extent of marketing .....11 6..■ Soundness of banks .............44 ..07 9..................................41 ......08 Secondary enrollment* ...............83 ..................05 8......■ National savings rate*.............................................95 ..................■ 7th pillar: Labor market efficiency 7.........................................................17 1.37 .....15 1...........120 ................................■ Efficiency of legal framework in challenging regs .....................................................■ Tuberculosis incidence*........09 6..............05 12.................................■ Primary enrollment* ................■ HIV prevalence*.............04 11..■ Company spending on R&D ...............................10 4...............77 .■ Quality of primary education.......................................90 .......110 ...............06 7..................................................................06 5..........09 Financial market sophistication...........................60 ....................■ FDI and technology transfer ..........■ Efficacy of corporate boards ......63 .....09 Local supplier quantity .........................■ Firing costs* .■ No.................■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6...............05 Government surplus/deficit* ...............................08 6.....................77 ...............................133 .............01 Domestic market size index* .......42 ......■ Diversion of public funds ....60 .................................4 .71 ............■ Efficiency of legal framework in settling disputes.........75 ................................■ Transparency of government policymaking ..............■ Interest rate spread* ......................■ Female participation in labor force*..................................07 2.....■ Buyer sophistication .....................08 1....................121 .............■ Local supplier quality ..............132 ......67 .61 .....■ Effectiveness of anti-monopoly policy .........05 6.........................................................02 1..........................105 .....................................■ Nature of competitive advantage ..........................16 .........14 1............■ Strength of investor protection*........................15 ...03 6.........................■ Protection of minority shareholders’ interests ........................71 ....■ Malaria incidence* ............................■ Local availability of research and training services ...............04 2..........■ Quality of the educational system ......................■ Burden of government regulation..........07 11.......65 ....■ 2.......■ Infant mortality*..1: Country/Economy Profiles Gambia.■ Telephone lines* ....08 Availability of latest technologies.................■ Laws relating to ICT...................................................................................................................06 2..76 ..........06 1...............................26 ....12 1..22 ................................■ Personal computers* .

....17 ........0...................................0...........2................................7 5th pillar: Higher education and training .......7 Inadequately educated workforce...................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5..................117 ..............................................................7 4th pillar: Health and primary education ...........5 Poor public health ...........2.2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....................................................8 Transition 1–2 1 GCI 2008–2009 (out of 134).13.........5...1 GDP (PPP) as share (%) of world total.......000 6.............................1: Country/Economy Profiles Georgia Key indicators GDP (PPP int'l $) per capita..18................................4 GDP (US$ billions)........................2....2...................8 Government instability/coups ...3..1 7th pillar: Labor market efficiency ...000 3....1 1st pillar: Institutions ..1 Policy instability...................................74 .................... 2008...............2 Poor work ethic in national labor force ............8 Inefficient government bureaucracy..0........90 ..............9 GDP per capita (US$)...113 ......... 2008 .90 ...3...............................................1.....................7...........3.................72 ......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010...8 2nd pillar: Infrastructure......119 ............... The bars in the figure show the responses weighted according to their rankings...........4 Restrictive labor regulations ..................... 1980–2008 Population (millions).......925...........7 6th pillar: Goods market efficiency....6 Financial market sophistication Goods market efficiency Labor market efficiency Georgia Economies in transition from 1 to 2 The most problematic factors for doing business Access to financing ............000 Georgia Europe and Central Asia 9............................................................9 8th pillar: Financial market sophistication..............3........................................03 12............6 3rd pillar: Macroeconomic stability...........................2...........3............................100 .....78 .4..........1 Inflation ...................89 ...................................................6...72 ........3.......... 2008 .. 2008......................5.........................9 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....101 .....2...............................4 Tax rates ....95 .........16...............0 Inadequate supply of infrastructure ...............................3 12th pillar: Innovation..............................................90 ............................13.......................3.....3.........................................................3................8 9th pillar: Technological readiness..........................................................4....4...........................6 Foreign currency regulations........117 ....84 ...................................5 Corruption..............................................................................9 Tax regulations .9 Crime and theft ...................5...3 150 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....................................8 Factor driven Basic requirements................12......9 10th pillar: Market size..............9 GCI 2007–2008 (out of 131)..................4.........................4. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ...................0...............3.3......2.....................85 ...........................................9 11th pillar: Business sophistication....................

.........06 1..............96 ......08 7..............07 11...............06 7........■ Gov’t procurement of advanced tech products .................................................■ Quality of the educational system ........................■ Ethical behavior of firms .09 1....09 4..................................■ Quality of port infrastructure...■ Business costs of crime and violence ........................■ Availability of scientists and engineers ..124 .....03 3.............................. 2.....................................93 ...........■ Internet users* ....... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....04 5..■ Willingness to delegate authority ..■ 8th pillar: Financial market sophistication 4th pillar: Health and primary education 5th pillar: Higher education and training 5..............■ Degree of customer orientation ...............06 2..........01 12.....■ Malaria incidence* ..............The Global Competitiveness Index in detail INDICATOR ■ Competitive Advantage RANK/133 INDICATOR 1st pillar: Institutions 1.......■ Internet access in schools ........................................16 ......70 .......■ Business impact of HIV/AIDS ............■ Agricultural policy costs ...............................................■ Laws relating to ICT..................31 ..04 2......108 ............05 8..............88 ................................08 6..........■ Business costs of terrorism...87 ..............79 .........98 ........■ Reliance on professional management ....................................45 .....■ Production process sophistication ..02 9............................115 ..........7 ...............................■ Buyer sophistication .........................................70 .....07 8.....................................57 ....■ Wastefulness of government spending.........■ Intellectual property protection..■ Quality of scientific research institutions....108 ..........09 6...............................................07 7.............................■ Quality of railroad infrastructure ..........■ Available seat kilometers* ...........................05 Government surplus/deficit* ..■ ■ Competitive Disadvantage RANK/133 6th pillar: Goods market efficiency 6.....................43 .03 4..07 9.....■ Personal computers* ....75 ..................03 11..06 4..........................................■ Firing costs* ...........07 6..........08 Quality of overall infrastructure..........................01 11.............................01 2.............................■ Government debt*................■ Favoritism in decisions of government officials ....02 Foreign market size index*............■ Interest rate spread* ........■ Business impact of rules on FDI ...05 11......■ Soundness of banks ..........................4 .........100 ....................................■ Reliability of police services.....■ Legal rights index*...................................................41 ................................104 .....03 12....02 12.■ Female participation in labor force*...........76 .10 1......12 6...........■ Public trust of politicians.............................82 ......103 .......02 8.........................■ Prevalence of trade barriers.............107 ...............................08 11.......................15 ..03 6........40 ....................................■ Local supplier quality .....■ Education expenditure* .95 ......................101 .............................126 ...................52 .....................04 4.......119 .102 .........■ Quality of math and science education ..........................................■ 8.....■ HIV prevalence*.1: Country/Economy Profiles Georgia The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 151 ....■ FDI and technology transfer ............................73 .....................................06 9...............29 .........................■ Transparency of government policymaking .................................■ National savings rate*.........■ Diversion of public funds ........................19 Property rights ............02 11......................................■ No..■ Firm-level technology absorption.........84 .........■ Utility patents*..................................96 .....................99 ................................03 8..............03 7..41 .....................05 1...........................................60 .4 .■ State of cluster development .............58 .....................................................................................07 2.129 ...19 .82 .....................................04 7....................117 ....................................................■ Organized crime.........................■ 10..65 .04 11.........96 ........................ of procedures required to start a business* .........13 1...07 4........................................97 ................■ 11th pillar: Business sophistication 11.........■ Mobile telephone subscriptions*......14 1.08 Secondary enrollment* .................■ Judicial independence .....................................■ Burden of government regulation.....................08 4.........66 ..06 5..................07 1...15 Intensity of local competition ..05 12..............61 ....................................89 ............08 8.....■ Extent and effect of taxation ...............58 .......03 9...................■ Nature of competitive advantage ..............................39 ..........................93 ....■ Local availability of research and training services ......72 ...................................................................01 8...............................16 ..01 1.............67 ......■ Business impact of tuberculosis.....97 .......■ 4.............112 ......................................................05 7...........01 4................97 .50 ...............08 1........................■ Efficiency of legal framework in settling disputes..................■ Tuberculosis incidence*......■ Infant mortality*...........................■ Efficiency of legal framework in challenging regs ...............................01 5...........■ Strength of investor protection*..............12 1...9 ............................122 ......■ Time required to start a business* .............02 7...11 1......77 .....04 6...................119 ........■ Burden of customs procedures .............■ Venture capital availability ................................14 6....................■ Brain drain ..97 .............55 ....10 4..............■ Broadband Internet subscribers*.......■ Restriction on capital flows .....06 12........■ Protection of minority shareholders’ interests ...............78 .................64 ....................■ Quality of primary education....................................................................117 ...........................................06 11.........70 .■ Quality of management schools .....................................................................125 ..■ Tertiary enrollment* ............................80 ........■ Extent of staff training .11 Business impact of malaria...88 ...........3 ...................................■ Ease of access to loans ......18 1.........38 ..................................................................69 ...04 3...................03 5....01 3................................■ Flexibility of wage determination...........................■ Extent of market dominance ...05 5...........................................■ Quality of air transport infrastructure..............................01 7................................81 ...........66 ....................82 ....................88 ..05 9..........81 ....05 6.....55 ...........................................125 ...................109 .02 5...................05 4...............08 Availability of latest technologies........54 ......85 ..............................................■ Value chain breadth....................................................130 ..........................................19 .........02 6...........09 Local supplier quantity .......90 ............■ Primary enrollment* .■ 12th pillar: Innovation * Hard data Note: For further details and explanation.............................................................................122 ................■ Rigidity of employment*........■ Extent of marketing ...07 Capacity for innovation .....■ Life expectancy*.........07 5......■ Pay and productivity..■ 7th pillar: Labor market efficiency 7...................................................34 ................02 4....■ Quality of electricity supply ....92 .........................95 .....■ Prevalence of foreign ownership ..........................■ 2nd pillar: Infrastructure 3rd pillar: Macroeconomic stability 3.■ Efficacy of corporate boards ...........................................65 .122 ..09 Financial market sophistication........117 .......■ 2..........■ Hiring and firing practices ...........■ Financing through local equity market......81 .....13 6........................04 12....................01 Domestic market size index* ......91 ...91 .........■ Control of international distribution .......................■ Tariff barriers* .........................................■ 12..............■ Inflation* ..........03 2......17 1.....■ Quality of roads....■ University-industry collaboration in R&D ...■ Strength of auditing and reporting standards ....60 ......04 9....................................■ Effectiveness of anti-monopoly policy ...........6 ....................06 6......................................02 3......06 8..09 Cooperation in labor-employer relations .........01 9...................02 2.............................................................3 ....115 ..................106 ..............04 1........05 2.........16 1....15 1..............123 ..........02 1....■ Telephone lines* ...■ 9th pillar: Technological readiness 10th pillar: Market size 10............................10 6..................04 8.....................109 ..........■ 9.■ Company spending on R&D .................03 1............11 6.........................■ Total tax rate* .....■ Regulation of securities exchanges .............01 6..........

.....5...5 2nd pillar: Infrastructure..................6..............................................................0 Inadequate supply of infrastructure .................5 GDP (US$ billions)........7 ...........44..........................5 Inadequately educated workforce.................000 10.................9 Policy instability..............0................. The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 30 ................................ 1980–2008 Population (millions).........1 6th pillar: Goods market efficiency....6...............5 ..................0......... The bars in the figure show the responses weighted according to their rankings........7 ............82................0.......5 ..........................5 GDP per capita (US$)....8 1st pillar: Institutions ......................................18 .........9 Restrictive labor regulations ....................................... 2008...................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 133) Stage of development Score (1–7) GCI 2009–2010.................0.................23 40........................................14 ..2 ..19...9 Tax rates .................................................................................................5 11th pillar: Business sophistication........16 ....5...........................12 ...................1 Poor public health .............................. 2008...5...............5...............................................................4 Transition 1–2 1 GCI 2008–2009 (out of 134)............1: Country/Economy Profiles Germany Key indicators GDP (PPP int'l $) per capita.........................6.........0 152 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..........6 Poor work ethic in national labor force .............3 4th pillar: Health and primary education ............4.4...........0 Infrastructure Macroeconomic stability 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....5 Factor driven Basic requirements...........................................................20........................................6..1.................................................9 Crime and theft ................5................14...............8 .......6 10th pillar: Market size.....6 Inflation .....5.......667..............14..........4 Inefficient government bureaucracy......2........5..5...................8 12th pillar: Innovation..........5..7 .........................3 Corruption.....10..6 3rd pillar: Macroeconomic stability....... 2008 ..............1 5th pillar: Higher education and training ....24 ......6 Access to financing ...............................................................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..............0......................0 7th pillar: Labor market efficiency .......................................000 Germany OECD 30.....5...1 Financial market sophistication Goods market efficiency Labor market efficiency Germany Innovation-driven economies The most problematic factors for doing business Tax regulations ....660.......000 20......36 .............4 GDP (PPP) as share (%) of world total......22 .0............................................................6....................2...70 .........3 8th pillar: Financial market sophistication..3.......................................................... respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5.........5..............................4............5............................7 Government instability/coups ............................. 2008 .........1 .....5......30 ...........................................5 ..................6 Foreign currency regulations...............7 9th pillar: Technological readiness..................5 GCI 2007–2008 (out of 131).................

...■ Female participation in labor force*..............................15 ...........■ 12th pillar: Innovation * Hard data Note: For further details and explanation..............■ Judicial independence ........14 1..................................30 ..............................................02 2..........................56 .............................08 8. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...........■ Control of international distribution ..............80 ......■ Quality of electricity supply .2 ................................■ Quality of management schools ..28 ............14 ...............1: Country/Economy Profiles Germany The Global Competitiveness Report 2009-2010 © 2009 World Economic Forum 153 .................................09 4............