In its 30th year, The Global Competitiveness Report is published against the backdrop of

the deepest global economic slowdown in generations. Policymakers find themselves

Schwab

struggling to manage new challenges while preparing their economies to perform well in
a future characterized by high uncertainty.
In such a difficult economic environment, it is more important than ever for countries
to put into place the fundamentals underpinning growth and development. The Global
Competitiveness Report series has, for the past three decades, facilitated this process

The Global Competitiveness Report 2010–2011

by providing detailed analysis of the productive potential of nations worldwide. The
Report offers policymakers, business executives, and academics as well as the public
at large one of the world’s most respected assessments of national competitiveness,
thus providing invaluable insights into the policies, institutions, and factors that enable
robust economic development and long-term prosperity.
Produced in collaboration with leading academics and a global network of Partner Institutes,
The Global Competitiveness Report 2009–2010 offers users a unique dataset on a broad
array of competitiveness indicators for 133 economies, which together account for more
than 98 percent of the world’s GDP. The data used in the Report come from leading
international sources as well as from the World Economic Forum’s annual Executive
Opinion Survey, which provides a distinctive source capturing the perceptions of several
thousand business leaders on topics related to national competitiveness.
This year’s edition presents the rankings of the Global Competitiveness Index (GCI),
developed by Professor Xavier Sala-i-Martin and originally introduced in 2004. The GCI
is based on 12 pillars of competitiveness, providing a comprehensive picture of the
competitiveness landscape in countries around the world at different stages of economic
development. The Report also contains detailed profiles highlighting competitive strengths
and weaknesses for each of the 133 economies featured, as well as an extensive
section of data tables displaying relative rankings for more than 100 variables.

The Global
Competitiveness Report
2010–2011

Klaus Schwab, World Economic Forum

Cover design: Neil Weinberg
Cover art: Getty Images;
Getty Images; iStock
Photography; Getty Images
ISBN-13: 978-92-95044-25-8

World Economic Forum
Geneva, Switzerland 2010

Professor Klaus Schwab
World Economic Forum
Editor

The Global
Competitiveness Report
2010–2011

Professor Xavier Sala-i-Martin
Columbia University
Chief Advisor of the Centre for Global Competitiveness and Performance

Members of the Global Competitiveness Report Advisory Board
Dr Kemal Dervis
Brookings Institution
Vice-President and Director, Global Economy and Development
Professor Ricardo Hausmann
Harvard University
Director, Center for International Development, John F. Kennedy School of Government
H.E. Dr Felipe Larraín Bascuñán
Minister of Finance of Chile
H.E. Dr Mari Elka Pangestu
Minister of Trade of Indonesia

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

The Global Competitiveness Report
2010–2011 is published by the World
Economic Forum within the framework of
the Centre for Global Competitiveness and
Performance

Professor Klaus Schwab
Executive Chairman
Professor Xavier Sala-i-Martin
Chief Advisor of the Centre for Global
Competitiveness and Performance

World Economic Forum
Geneva
Copyright © 2010
by the World Economic Forum
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.
ISBN-13: 978-92-95044-87-6
ISBN-10: 92-95044-87-8

Robert Greenhill
Chief Business Officer
CENTRE FOR GLOBAL COMPETITIVENESS AND PERFORMANCE

Jennifer Blanke, Director, Lead Economist,
Head of the Centre for Global
Competitiveness and Performance
Margareta Drzeniek Hanouz, Director,
Senior Economist
Irene Mia, Director, Senior Economist
Thierry Geiger, Associate Director,
Economist
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
Miriam Poretti 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 2010-2011 © 2010 World Economic Forum

Contents

Partner Institutes

Preface

v

Part 2: Data Presentation

67

xi

2.1 Country/Economy Profiles

69

by Klaus Schwab

How to Read the Country/Economy Profiles ...............................71
List of Countries/Economies .........................................................73
Country/Economy Profiles .............................................................74

Part 1: Measuring Competitiveness
1.1 The Global Competitiveness Index 2010–2011:
Looking Beyond the Global Economic Crisis

1

2.2 Data Tables

3

How to Read the Data Tables......................................................355
Index of Data Tables ....................................................................357
Data Tables ..................................................................................359

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

1.2 The Executive Opinion Survey: The Business
Executives’ Insight into their Operating Environment
by Ciara Browne and Thierry Geiger

57

353

Technical Notes and Sources

495

About the Authors

499

Acknowledgments

501

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

Partner Institutes

Partner Institutes

The World Economic Forum’s Centre for Global
Competitiveness and Performance is pleased to
acknowledge and thank the following organizations
as its valued Partner Institutes, without which the
realization of The Global Competitiveness Report
2010–2011 would not have been feasible:
Albania
Institute for Contemporary Studies (ISB)
Artan Hoxha, President
Elira Jorgoni, Senior Expert
Endrit Kapaj, Junior Expert
Algeria
Centre de Recherche en Economie Appliquée
pour le Développement (CREAD)
Youcef Benabdallah, Assistant Professor
Yassine Ferfera, Director
Angola
MITC Investimentos
Estefania Jover, Senior Adviser
PROPETROL—Serviços Petroliferos
Arnaldo Lago de Carvalho, Managing Partner
South Africa-Angola Chamber of Commerce (SA-ACC)
Roger Ballard-Tremeer, Hon Chief Executive
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
Colleen Dowling, Senior Research Coordinator
Nick James, Economist
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, Project Manager
Zaur Veliyev, Consultant
Bahrain
Bahrain Competitiveness Council, Bahrain Economic
Development Board
Nada Azmi, Manager, Economic Planning and 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
Priscilla Boairdi, Associate, Competence Centre
Entrepreneurship, Governance and Strategy
Wim Moesen, Professor
Leo Sleuwaegen, Professor, Competence Centre
Entrepreneurship, Governance and Strategy
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
Letsogile Batsetswe, Research Consultant and Statistician
Parmod Chandna, Acting Executive Director
Phumzile Thobokwe, Manager, Information and
Research Services Department
Brazil
Fundação Dom Cabral
Marina Araújo, Economist and Researcher,
The Competitiveness and Innovation Center
Carlos Arruda, Executive Director, International Board and
Professor and Coordinator, The Competitiveness
and Innovation Center
Arthur Kux, Economist and Research Assistant,
The Competitiveness and Innovation Center
Movimento Brasil Competitivo (MBC)
Erik Camarano, Director President
Cecília Macedo, Economist and Senior Projects Coordinator
Nikelma Moura, Communications Assistant
Brunei Darussalam
Ministry of Industry and Primary Resources
Pehin Dato Yahya Bakar, Minister
Dayang Hajah Suriyah Haji Umar, Permanent Secretary I
Dato Dr Amin Abdullah, Permanent Secretary II
Bulgaria
Center for Economic Development
Anelia Damianova, Senior Expert

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

v

Partner Institutes

Burkina Faso
lnstitut Supérieure des Sciences de la Population (ISSP),
University of Ouagadougou
Samuel Kabore, Economist and Head of Development Strategy
and Population Research

Croatia
National Competitiveness Council
Martina Hatlak, Research Assistant
Kresimir Jurlin, Research Fellow
Mira Lenardic, General Secretary

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

Cyprus
Cyprus College Research Center
Bambos Papageorgiou, Head of Socioeconomic
and Academic Research

Cambodia
Economic Institute of Cambodia
Sok Hach, President
Poch Kongchheng, Researcher

Czech Republic
CMC Graduate School of Business
Tomas Janca, Executive Director

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
Cape Verde
INOVE RESEARCH—Investigação e Desenvolvimento, Lda
Rosa Brito, Senior Researcher
Júlio Delgado, Partner and Senior Researcher
Frantz Tavares, Partner and Chief Executive Officer

vi

The Cyprus Development Bank
Maria Markidou-Georgiadou, Manager, International
Banking Services Unit and Business Development

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
Chile
Universidad Adolfo Ibáñez
Fernando Larrain Aninat, Director of the Master in Management
and Public Policy, School of Government
Camila Chadwick, Project Coordinator
Leonidas Montes, Dean, School of Government
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

Denmark
Department of Business Studies, Aalborg University
Birgitte Gregersen, Associate Professor
Gert Villumsen, Associate 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
Omneia Helmy, Deputy Director of Research and
Lead Economist
Magda Kandil, Executive Director and Director of Research
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

Colombian Council of Competitiveness
Hernando José Gomez, President

Georgia
Business Initiative for Reforms in Georgia
Tamara Janashia, Executive Director
Giga Makharadze, Founding Member of the Board of Directors
Mamuka Tsereteli, Founding Member of the Board of Directors

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

Germany
WHU—Otto Beisheim School of Management, Vallendar
Ralf Fendel, Professor of Monetary Economics
Michael Frenkel, Professor, Chair of Macroeconomics
and International Economics

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

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

Partner Institutes

Ghana
Association of Ghana Industries (AGI)
Patricia Djorbuah, Projects Officer
Cletus Kosiba, Executive Director
Nana Owusu-Afari, President

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
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, Managing Director, Keizai Doyukai
Jordan
Ministry of Planning & International Cooperation
Jordan National Competitiveness Team
Hiba Abu Taleb, Primary Researcher
Maher Al Mahrouq, Team Leader and Director of Policies
and Studies Department
Kawther 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, Project Manager
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
Kuwait National Competitiveness Committee
Adel Al-Husainan, Committee Member
Fahed Al-Rashed, Committee Chairman
Sayer Al-Sayer, Committee Member
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
Lebanon
Bader Young Entrepreneurs Program
Antoine Abou-Samra, Managing Director
Hiba Zunji, Assistant
Lesotho
Mohloli Chamber of Business
Libya
National Economic Development Board
Entisar Elbahi, Director, Relations and Supported Services
Lithuania
Statistics Lithuania
Ona Grigiene, Head, Economical Survey Division
Algirdas Šemeta, Director General

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

vii

Partner Institutes

Luxembourg
Chamber of Commerce of the Grand Duchy of Luxembourg
François-Xavier Borsi, Attaché, Economic Department
Carlo Thelen, Chief Economist, Member of the Managing Board
Marc Wagener, Attaché, Economic Department

Centre for Economic Research (CER)
Corneliu Gutu, Director

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

Mongolia
Open Society Forum (OSF)
Munkhsoyol Baatarjav, Manager of Economic Policy
Erdenejargal Perenlei, Executive Director

Madagascar
Centre of Economic Studies, University of Antananarivo
Ravelomanana Mamy Raoul, Director
Razato Rarijaona Simon, Executive Secretary

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

Malawi
Malawi Confederation of Chambers of Commerce and Industry
Chancellor L. Kaferapanjira, Chief Executive Officer
Malaysia
Institute of Strategic and International Studies (ISIS)
Mahani Zainal Abidin, Chief Executive
Steven C.M. Wong, Senior Director, Economics
Malaysia Productivity Corporation (MPC)
Mohd Razali Hussain, Director General
Lee Saw Hoon, Senior Director
Mali
Groupe de Recherche en Economie Appliquée et
Théorique (GREAT)
Massa Coulibaly, Coordinator

viii

Moldova
Academy of Economic Studies of Moldova (AESM)
Grigore Belostecinic, Rector

Malta
Competitive Malta—Foundation for National Competitiveness
Margrith Lutschg-Emmenegger, Vice President
Adrian Said, Chief Coordinator
Caroline Sciortino, Research Coordinator
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
Kevin Bessondyal, Assistant Director, Planning and Policy
Dev Chamroo, Director, Planning and Policy
Veekram Gowd, Senior Investment Advisor, Planning
and 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 Alarcón Esteva, Economist
Luis César Castañeda Valdés, Researcher
Manuel J. Molano Ruíz, Deputy General Director
Roberto Newell García, General Director
Ministry of the Economy
Paulo Esteban Alcaraz, Research Director, ProMéxico
Trade & Investment
Felipe Duarte Olvera, Undersecretary for Competitiveness
and Standardization
Javier Prieto, Technical Secretary for Competitiveness
Jose Antonio Torre, Head of the Business Intelligence Unit,
ProMéxico Trade & Investment

Morocco
Université Hassan II, LASAARE
Fouzi Mourji, Professor of Economics
Mozambique
EconPolicy Research Group, Lda.
Peter Coughlin, Director
Donaldo Miguel Soares, Researcher
Ema Marta Soares, Assistant
Namibia
Namibian Economic Policy Research Unit (NEPRU)
Jacob Nyambe, Senior Researcher
Fanuel Tjingaete, Director
Nepal
Centre for Economic Development and
Administration (CEDA)
Ramesh Chandra Chitrakar, Professor and
Country Coordinator
Bharat Pokharel, Project Director and Executive Director
Mahendra Raj Joshi, Member
Netherlands
Erasmus Strategic Renewal Center,
Erasmus University Rotterdam
Frans A. J. Van den Bosch, Professor
Henk W. Volberda, Professor
New Zealand
Business New Zealand
Phil O’Reilly, Chief Executive
The New Zealand Institute
Lisa Bailey, Executive Assistant
Rick Boven, Director
Nigeria
Nigerian Economic Summit Group (NESG)
Frank Nweke Jr., Director General
Sam Ohuabunwa, Chairman
Chris Okpoko, Research Director, Research
Norway
BI Norwegian School of Management
Eskil Goldeng, Researcher
Torger Reve, Professor
Oman
The International Research Foundation
Salem Ben Nasser Al-Ismaily, Chairman
Arabian Research Bureau
Gus Freeman, Managing Director
Mahir Al-Maskari, General Manager
Pakistan
Competitiveness Support Fund
Arthur Bayhan, Chief Executive Officer
Imran Naeem Ahmad, Communication Specialist
Maryam Jawaid, Communication Specialist

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

Communications Manager Alexander Jungmeister. Executive Director Peter Klatik. Head of State Planning Commission Syrian Enterprise Business Center (SEBC) Tamer Abadi. President Francisco Montalvo Fiol. Associate Professor Katerina Marandi. Director Dusko Vasiljevic. Director Serbia Center for Applied European Studies (CPES) Srdjan Djurovic. Director Taiwan. J. Vice Executive Director Rubén Rodriguez Startz. Principal. Jimenez. Planning Peru Centro de Desarrollo Industrial (CDI). Area Principal Carl F. Research Officer Swaziland Federation of Swaziland Employers and Chamber of Commerce Zodwa Mabuza. Executive Director Slovak Republic Business Alliance of Slovakia (PAS) Robert Kicina. Program Coordinator Russian Federation Bauman Innovation Alexei Prazdnitchnykh. Vice President Senegal Centre de Recherches Economiques Appliquées (CREA). Vice President of the Board of Directors Fórum de Administradores de Empresas (FAE) Paulo Bandeira. National Bank of Poland Mateusz Pipien´. Minister Hung. MBC Slovenia Institute for Economic Research Mateja Drnovšek. Faculty of Economics Peter Stanovnik. Inc. Project Director Luis Tenorio. MAP Marc P. Executive School of Management. President Khaldon Mahasen. Stockholm School of Economics Christian Ketels. Professor. Research Member South Africa Business Leadership South Africa Friede Dowie. Secretary-General Sarah Abdallah. MBC Arnold P.Research Analyst Sweden Center for Strategy and Competitiveness. Researcher Philippines Makati Business Club (MBC) in association with Management Association of the Philippines (MAP) Alberto A. Technology and Law (ES-HSG) Beat Bechtold. Research Member Fernando Masi. Head. General Director Pedro do Carmo Costa. Professor Sonja Urši . Professor. Executive Yuan Liu. Faculty of Economics Poland Economic Institute. Fey. Professor Switzerland University of St. Suzette M. Economic Research Department Shieh. Deputy General Manager Romania Group of Applied Economics (GEA) Liviu Voinea. Project Manager Syria Ministry of Economy and Trade Amer Housni Louitfi. Director Michael Spicer. President of the Board of Directors Puerto Rico Puerto Rico 2000. Researcher Alikul Isoev. Executive Director Manoj Thibbotuwawa. Research Officer Saman Kelegama. Director María Belén Servín. Researcher Matej Tunega. Senior Researcher Ales˘ Vahc˘ic˘. Chief Executive Officer Spain IESE Business School. Chief Executive Officer Business Unity South Africa Simi Siwisa. B. Executive Director. Senior Researcher Partner Institutes Paraguay Centro de Análisis y Difusión de Economia Paraguaya (CADEP) Dionisio Borda. Acting Chief Executive Officer Emmanuel Rutagengwa. Russia Igor Dukeov. Christina. Project Coordinator Qatar Qatari Businessmen Association (QBA) Issa Abdul Salam Abu Issa. Chief Economist. Sociedad Nacional de Industrias Néstor Asto. General Director Piotr Boguszewski. Research Associate Sri Lanka Institute of Policy Studies Ayodya Galappattige. Executive Director Irina Zgreaban.. Director Gulnora Beknazarova. Member of the Board of Directors Esmeralda Dourado. Associação para o Desenvolvimento da Engenharia Ilídio António de Ayala Serôdio. Chief Executive Officer Sihle Fakude. Economic Research Department Tajikistan The Center for Sociological Research “Zerkalo” Qahramon Baqoev. University of Dakar Diop Ibrahima Thione. Chung Chung. Gallen. Consultant Stockholm School of Economics. Y. Advisor Portugal PROFORUM. Sociologist and Economist The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum ix . Director Jerry Vilakazi. International Center for Competitiveness Antoni Subirà. Deputy Director. China Council for Economic Planning and Development. Opulencia. Mundo. MBC Michael B. Policy Analyst Saudi Arabia National Competitiveness Center (NCC) Awwad Al-Awwad.Singapore Economic Development Board Lim Hong Khiang. Director. Director Planning 2 Chua Kia Chee. Researcher. Research and Statistics Unit Cheng Wai San. Associate Dean of Research Rwanda Private Sector Federation Molly Rwigamba. Minister of Economy and Trade State Planning Commission Tayseer Al-Ridawi. Professor María Luisa Blázquez. Executive Director. Lim. Head. Salvador. Senior Research Fellow Örjan Sölvell.

Professor and President Du Phuoc Tan. Chulalongkorn University Pongsak Hoontrakul. Professor United Kingdom LSE Enterprise Ltd. Director of Sasin Piyachart Phiromswad. University of Zimbabwe A. Staff Development Fellow Jolly Kamwanga. London School of Economics and Political Science Niccolo Durazzi. Professor Venezuela CONAPRI—Venezuelan Council for Investment Promotion Eduardo Porcarelli. Rector Uganda Kabano Research and Development Centre Robert Apunyo. Economic Affairs The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . Coordinator Zimbabwe Graduate School of Management. Dominican Republic. CLACDS Latvia. Center for Social and Economic Research Dmytro Boyarchuk. Researcher. Department of Macroeconomic Management Pham Hoang Ha. Research Associate Ukraine CASE Ukraine. Lithuania Stockholm School of Economics in Riga Karlis Kreslins. Distinguished Fellow Yos Vajragupta. Special Projects Manager Emirates Competitiveness Council Abdullah Nasser Lootah. International Centre The Competitiveness Company Rolph Balgobin. Senior Research Fellow Toemsakdi Krishnamra. Ecuador. El Salvador. Director and Professor Funda Kalemci. President Phan Thanh Ha. Director. Department of Macroeconomic Management Institute for Development Studies in HCMC (HIDS) Nguyen Trong Hoa. Commissioned Research Department Thailand Sasin Graduate Institute of Business Administration. Professor Bolivia. Zayed University Nico Vellinga.Secretary General Institute for Social and Economic Research (ISER). Project Manager Uruguay Universidad ORT Isidoro Hodara. Survey Supervisor Palmira Pires. Senior Researcher Timor-Leste East Timor Development Agency (ETDA) Jose Barreto Goncalves. Director David Wilkes. Chairman Tunisia Institut Arabe des Chefs d’Entreprises Majdi Hassen. Executive MBA Programme Director Anders Paalzow. Leading Economist United Arab Emirates Dubai Economic Council Gayane Afrikian. Executive Director Vladimir Dubrovskiy. Bull. Panama INCAE Business School. University of Zambia Mutumba M. Researcher Jane Lac. Executive Counsellor Chekib Nouira. Manager. Executive Director Catherine Ssekimpi. Director. Head of Department Trieu Thanh Son. Professor and Executive Director Lucas Katera. Project Specialist Vietnam Central Institute for Economic Management (CIEM) Dinh Van An. Director of External Relations Lawrence Pratt. Deputy Director. Nicaragua. Latin American Center for Competitiveness and Sustainable Development (CLACDS) Arturo Condo. Director Patricia Funjika. Hawkins. Costa Rica. Rector Marlene de Estrella. Executive Director Harrylal Nirmala. Director. Researcher Zambia Institute of Economic and Social Research (INESOR). President x Turkey TUSIAD Sabanci University Competitiveness Forum Dilek Cetindamar. Program Manager Delius Asiimwe. Executive Director Litsay Guerrero. Director. Project Administrator Robyn Klingler Vidra. Survey Field Officer Trinidad and Tobago Arthur Lok Jack Graduate School of Business Miguel Carillo. Dubai Competitiveness Centre Khawla Belqazi. Faculty of Economics Thailand Development Research Institute (TDRI) Somchai Jitsuchon. M. Research Director Chalongphob Sussangkarn. Researcher and Project Manager. Honduras.Partner Institutes Tanzania Research on Poverty Alleviation (REPOA) Joseph Semboja. Senior Researcher. CLACDS Víctor Umaña. Commissioned Research Cornel Jahari.

Appreciation also goes to Robert Greenhill. China.Preface Preface KLAUS SCHWAB Executive Chairman. as well as various regional and country studies. Despite significant government stimulus spending aimed at dampening the recession.E. the world increasingly looks to the developing world as the major engine of the global economy. which produces a number of research studies that truly mirror the increased integration and complexity of the world economy. We have also received important feedback from our Advisory Board: Dr Kemal Dervis. and India are expected to grow at rates of between 5. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum xi . have added to the list of concerns. Chief Business Officer at the Forum. World Economic Forum This year’s Global Competitiveness Report is being published amid uncertainty in the global economy and a continuing shift in the balance of economic activity away from advanced economies and toward developing ones. Dr Felipe Larraín Bascuñán. In such a global economic environment. helps to explain why some countries are more successful than others in raising income levels and opportunities for their respective populations. with growth holding up well over the next few years. who carry out the Executive Opinion Survey. Margareta Drzeniek Hanouz. On the other hand. Irene Mia. our partners in this Report. Recent concerns about the sustainability of sovereign debt in Europe. as well as the competitiveness team members Ciara Browne. this Report would have not been possible without the commitment and enthusiasm of our network of over 150 Partner Institutes worldwide. Pearl Samandari. The Global Competitiveness Report 2010–2011 could not have been put together without the thought leadership of Professor Xavier Sala-i-Martin at Columbia University. The World Economic Forum has. Kennedy School of Government. and Jennifer Blanke. We thank the Africa Commission and FedEx. The present situation emphasizes the importance of mapping out clear exit strategies to get economies back on a steady footing. Minister of Finance of Chile. Global Economy and Development. Brookings Institution. This year’s Report features a record number of 139 economies. Indeed.5 and 10 percent in 2010. and the stability and efficient functioning of financial markets more generally. and The Travel & Tourism Competitiveness Report. H. Head of the Centre for Global Competitiveness and Performance. Vice-President and Director. The Global Gender Gap Report. it is more important than ever for countries to put into place the fundamentals underpinning economic growth and development. Yet charting out such a process remains elusive in many countries for fear of a “double dip” as well as for political considerations. Harvard University. for their support in this important venture. The Global Information Technology Report. who has provided ongoing intellectual support for our competitiveness research. Professor Ricardo Hausmann. John F. developing economies have for the most part fared comparatively well during the crisis: countries such as Brazil. growth in advanced economies remains sluggish as they are mired in persistent unemployment and weak demand. Carissa Sahli. and H. Thierry Geiger. Finally. which provides the basis of this Report. This Report remains the flagship publication within the Forum’s Centre for Global Competitiveness and Performance. and whose valuable inputs made the publication of this Report possible. Policymakers are struggling with ways of managing the present economic challenges while preparing their economies to perform well in a future economic landscape characterized by uncertainty and shifting balances. and offers policymakers and business leaders an important tool in the formulation of improved economic policies and institutional reforms. Additional regular publications include The Global Enabling Trade Report. In addition. played a facilitating role in this process by providing detailed assessments of the productive potential of nations worldwide. and Eva Trujillo Herrera. we would also 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. The Report contributes to the understanding of the key factors determining economic growth. Director. It 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. for more than 30 years. and thus continues to be the most comprehensive assessment of its kind.E. Center for International Development. Minister of Trade of Indonesia. Dr Mari Elka Pangestu.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

Part 1 Measuring Competitiveness The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

In this context. and spiraling debt. For more than three decades. fears of a double dip are hindering many governments from articulating clear exit strategies. While emerging economies have. Today’s still-difficult economic environment requires not losing sight of long-term competitiveness fundamentals amid short-term urgencies.25 percent for emerging markets. health. advanced economies face continuing difficulties such as persisting unemployment.1 3 .25 percent for advanced economies in 2010. weak demand. while still struggling with reforms in the financial and labor markets. Yet economies are advancing at different speeds and there is still the risk of a “double dip” in a number of countries. 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. Indeed. any exit strategies must be complemented by competitiveness-enhancing efforts aimed at improving the potential for growth in the medium to longer run. countries will compromise their future ability to make pro-growth investments in areas such as infrastructure.1 Yet without a clear commitment to getting spending under control in the medium term. thus stimulating discussion on the best strategies and policies to overcome them. Our goal over the years has been to provide benchmarking tools for business leaders and policymakers to identify obstacles to improved competitiveness. which are necessary for sustained development and competitiveness over the longer term. A competitiveness-supporting economic environment can help national economies to support high incomes and ensure that the mechanisms enabling solid economic performance going into the future are in place. compared with 2. for the most part. of government stimulus spending aimed at counterbalancing the worst global recession in decades. in many countries. a major topic of discussion in recent G-20 summits. and education. The International Monetary Fund (IMF) predicts growth of 6. which will in turn help to eliminate fiscal imbalances. Indeed.1: The Global Competitiveness Index 2010–2011 CHAPTER 1. Competitive economies are those that have in place factors driving the productivity enhancements on which their present and future prosperity is built. governments are struggling to unwind their deficit spending in an effort to control soaring debts. policymakers are being confronted with difficult economic management challenges. In the current challenging economic environment. among other challenges. Growth has resumed following important injections. bounced back to healthy growth. Following their active stance in addressing the crisis and the ensuing recession. our work specifically serves as a critical reminder of the importance of taking into account the The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1.The Global Competitiveness Index 2010–2011: Looking Beyond the Global Economic Crisis XAVIER SALA-I-MARTIN JENNIFER BLANKE MARGARETA DRZENIEK HANOUZ THIERRY GEIGER IRENE MIA World Economic Forum The Global Competitiveness Report 2010–2011 is being released at a time when the global economy continues to be characterized by significant uncertainty.

For example.8 Private-sector transparency is indispensable to business. good governance.3 and. Understanding the factors behind this process has occupied the minds of economists for hundreds of years.2 We define competitiveness as the set of institutions. In addition. The importance of a sound and fair institutional environment has become even more apparent during the economic crisis. ensuring good governance. These components are grouped into 12 pillars of economic competitiveness: First pillar: Institutions The institutional environment is determined by the legal and administrative framework within which individuals. and the political dependence of the judicial system impose significant economic costs to businesses and slow the process of economic development. The concept of competitiveness thus involves static and dynamic components: although the productivity of a country clearly determines its ability to sustain a high level of income. Since 2005. other firms. firm sophistication. dishonesty in dealing with public contracts. technological progress. Well-developed infrastructure reduces the effect of distance between regions. An economy is well served by businesses that are run honestly.6 The role of institutions goes beyond the legal framework. which is one of the key factors explaining an economy’s growth potential. Because the rates of return are the fundamental drivers of the growth rates of the economy. and governments interact to generate income and wealth in the economy. The quality of institutions has a strong bearing on competitiveness and growth. lack of transparency and trustworthiness.4 This open-endedness is captured within the GCI by including a weighted average of many different components. macroeconomic stability. more recently. and in fact that is what has been shown in the economic literature. and technological) in an economy. and factors that determine the level of productivity of a country. and maintaining investor and consumer confidence. each measuring a different aspect of competitiveness. sets the sustainable level of prosperity that can be earned by an economy. While all of these ideas are likely to be important. 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. in turn.7 overregulation. among others.10 A welldeveloped transport and communications infrastructure network is a prerequisite for the access of less-developed The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . human. The level of productivity. integrating the national market and connecting it at low cost to markets in other countries and regions. Government attitudes toward markets and freedoms and the efficiency of its operations are also very important: excessive bureaucracy and red tape. they are not mutually exclusive—two or more of them can be true at the same time. The recent global financial crisis.9 Second pillar: Infrastructure Extensive and efficient infrastructure is critical for ensuring the effective functioning of the economy. corporate shares. to interest in other mechanisms such as education and training. along with numerous corporate scandals.1: The Global Competitiveness Index 2010–2011 4 consequences of our present actions on future prosperity based on sustained growth. the quality and extensiveness of infrastructure networks significantly impact economic growth and affect income inequalities and poverty in a variety of ways. a highly comprehensive index for measuring national competitiveness. Indicators capturing the quality of government management of public finances are included here to complement the measures of macroeconomic stability captured in pillar 3 below. firms. the World Economic Forum has based its competitiveness analysis on the Global Competitiveness Index (GCI). and market efficiency.5 It influences investment decisions and the organization of production and plays a key role in the ways in which societies distribute the benefits and bear the costs of development strategies and policies. ranging from Adam Smith’s focus on specialization and the division of labor to neoclassical economists’ emphasis on investment in physical capital and infrastructure. In addition. it is also one of the central determinants of the returns to investment. proper management of public finances is also critical to ensuring trust in the national business environment. owners of land. which captures the microeconomic and macroeconomic foundations of national competitiveness. 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. corruption. where managers abide by strong ethical practices in their dealings with the government. has highlighted the relevance of accounting and reporting standards and transparency for preventing fraud and mismanagement.1. The 12 pillars of competitiveness There are many determinants driving productivity and competitiveness. given the increasingly direct role played by the state in the economy of many countries. Although the economic literature has focused mainly on public institutions. policies. more competitive economies tend to be able to produce higher levels of income for their citizens. and the public at large. The productivity level also determines the rates of return obtained by investments (physical. or intellectual property are unwilling to invest in the improvement and upkeep of their property if their rights as owners are not protected. private institutions are also an important element in the process of creation of wealth. a more competitive economy is one that is likely to grow faster in the medium to long run. In other words.

enable entrepreneurs to get their goods and services to market in a secure and timely manner and facilitate the movement of workers to the most suitable jobs. the economy cannot grow in a sustainable manner unless the macroeconomic environment is stable. is important for the overall competitiveness of a country. therefore. Box 1 discusses the relationship between fiscal imbalances and competitiveness. including those of the United States and China. The government cannot provide services efficiently if it has to make high-interest payments on its past debts. Sixth pillar: Goods market efficiency Countries with efficient goods markets are well positioned to produce the right mix of products and services given their particular supply-and-demand conditions. Moreover. Finally. producing goods demanded by the market. Economies also depend on electricity supplies that are free of interruptions and shortages so that businesses and factories can work unimpeded. and in the context of the recent buildup of sovereign debt. as well as moral. Firms cannot operate efficiently when inflation rates are out of hand. Fifth pillar: Higher education and training Third pillar: Macroeconomic environment The stability of the macroeconomic environment is important for business and. Workers who are ill cannot function to their potential and will be less productive. The best possible environment for the exchange of goods requires a minimum of impediments to business activity through government intervention. are those that thrive. Market efficiency also depends on demand conditions such as customer orientation and buyer sophistication. a solid and extensive telecommunications network allows for a rapid and free flow of information. including quality roads. in spite of the fact that government budgets will need to be cut to reduce public debt brought about by the present stimulus spending. For the longer term. Lack of basic education can therefore become a constraint on business development. so it does not directly take into account the way in which public accounts are managed by the government.13 In particular. This qualitative dimension is captured in the institutions pillar described above. by ensuring that the most efficient firms. is important in driving market efficiency and thus business productivity. 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. considerations. 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. This pillar measures secondary and tertiary enrollment rates as well as the quality of education as evaluated by the business community. Fourth pillar: Health and primary education A healthy workforce is vital to a country’s competitiveness and productivity. Running fiscal deficits limits the government’s future ability to react to business cycles.In addition to health. This is an area where the crisis may prove to have positive longer-term effects. In sum. with firms finding it difficult to move up the value chain by producing more sophisticated or value-intensive products. of particular relevance given recent fiscal stimulus spending and the discussions related to the importance of winding down spending and articulating clear exit strategies. ports. The recent economic crisis has highlighted the degree of interdependence of economies worldwide and the degree to which growth depends on open markets. railroads. both domestic and foreign. Investment in the provision of health services is thus critical for clear economic.12 Quality higher education and training is crucial for economies that want to move up the value chain beyond simple production processes and products. This issue has captured the attention of the public most recently through discussions on exit strategies to wind down deficit spending. as sick workers are often absent or operate at lower levels of efficiency.11 Although it is certainly true that macroeconomic stability alone cannot increase the productivity of a nation. 1. Protectionist measures are counterproductive as they reduce aggregate economic activity. Basic education increases the efficiency of each individual worker. today’s globalizing economy requires countries to nurture pools of well-educated workers who are able to adapt rapidly to their changing environment and the evolving needs of the production system. It is important to note that this pillar evaluates the stability of the macroeconomic environment. as well as to ensure that these goods can be most effectively traded in the economy. it is also recognized that macroeconomic disarray harms the economy. and air transport. 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. Poor health leads to significant costs to business. Effective modes of transport. Healthy market competition. which increases overall economic efficiency by helping to ensure that businesses can communicate and decisions are made by economic actors taking into account all available relevant information. this pillar takes into account the quantity and quality of basic education received by the population. given the significant resources earmarked for infrastructure development by many national stimulus packages. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 5 . which is increasingly important in today’s economy. it will be essential to avoid significant reductions in resource allocation to these critical areas. For example.1: The Global Competitiveness Index 2010–2011 communities to core economic activities and services.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 2010 2015 . leading to sovereign default. As the recession cut government revenues and automatic stabilizers kicked in. disarray can be very harmful.1: The Global Competitiveness Index 2010–2011 Box 1: Fiscal policy and competitiveness As the world emerges from the global recession. Because of higher interest payments on debt. as recently seen in the case of Greece. First. making it even more difficult to repay debt in the future and potentially leading to a vicious cycle. thereby sharply raising the refinancing cost of short-term debt and. the full extent of the deterioration of fiscal accounts is becoming visible and is raising questions about the consequences for longer-term competitiveness. Note: Data are shown for the longest available period for each country group. 1950–2015 Advanced economies Emerging and developing economies World G-7 economies 120 Percent of GDP 100 80 60 40 20 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Source: IMF. It continues a trend that has been prevalent in G-7 countries over the past 40 years (see Figure 1). This development is not new. investing less and saving more. Taken together those factors may lower growth. (Cont’d. In the Global Competitiveness Index. interest rates across the economy will tend to rise. and many policymakers resorted to bank bailouts and stimulus packages. and the higher cost of capital for enterprises will stifle investment and future growth. Debt increases can lead to downgrades of sovereign risk ratings. economic agents will adapt their growth expectations. In countries that are fiscally challenged.1 Debt accumulated since the 1970s because fiscal policy was used to dampen the effect of cyclical downturns but was not cut back when the business cycle went up again. based on the belief that. the debt-to-GDP ratio of G-7 economies is expected to break the 100 percent mark in 2011. As a consequence. in the most extreme case. education.) 6 Figure 1: The evolution of public debt in G-7 and other country groups. fiscal policy is assessed by including the budget balance and public debt in the macroeconomic environment pillar. many developed countries have observed the largest weakening of fiscal accounts since World War II. or the upkeep of infrastructure. 2010a. Because taxes will most likely have to be raised in order to repay debt.1. the government will have fewer funds available to invest in areas that are necessary to maintain future growth such as public health. because the government needs to finance spending by issuing new debt. they reduce fiscal flexibility. Continued budget deficits and high public debt are likely to have a negative impact on productivity for a number of reasons. however. The government will also be unable to use fiscal stimulus in any new downturns. although sound fiscal policy does not contribute directly to raising productivity and competitiveness. Second. increases in debt could set off a different type of spiral. These effects can be exacerbated by the fact that economic behavior is driven by expectations.

) 2 Reinhardt and Rogoff 2009. and—as has been made so clear recently—financial markets need appropriate regulation to protect investors and other actors in the economy at large. 2010.15 ICT has evolved into the “general purpose technology” of our time. the United Kingdom. at their summit in June 2010 in Toronto. in order to maintain macroeconomic stability and competitiveness. 6 In the Global Competitiveness Index. and the United States. 5 Blanchard and Cotarelli 2010. where weakening competitiveness over the past years has been a root cause of macroeconomic instability. technology has increasingly become an important element for firms to compete and prosper. Business investment is critical to productivity.16 given the critical spillovers to the other economic sectors and The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 7 . as well as those entering the economy from abroad. Germany. Labor markets must therefore have the flexibility to shift workers from one economic activity to another rapidly and at low cost. but also in some European and G-20 economies—will have to be put on a sounder footing. which in turn will improve the fiscal position. customers may be more demanding in some countries than in others. but they will also enhance growth in the longer term. The technological readiness pillar measures the agility with which an economy adopts existing technologies to enhance the productivity of its industries. Japan.According to research by Reinhardt and Rogoff. The importance of such access to capital was recently underscored by the liquidity crunch experienced by businesses and the public sector in both developing and developed countries. Ninth pillar: Technological readiness In today’s globalized world.2 these levels will have a serious impact on future growth rates of these economies. 4 Alesina et al.6 Notes 1 The G-7 countries are Canada. and to allow for wage fluctuations without much social disruption. 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. Toward that end. A thorough and proper assessment of risk is therefore a key ingredient. ductive uses. 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. 3 In comparison to growth at low debt levels (below 30 percent of GDP). as well as equity in the business environment between women and men. G-20 leaders agreed on a strategy to cut fiscal deficits in half by 2013 and to stabilize the debt-to-GDP ratio by 2016. It channels resources to those entrepreneurial or investment projects with the highest expected rates of return rather than to the politically connected. They estimate that median GDP growth rates in developed economies fall by about one percentage point a year once a debt-to-GDP ratio of 90 percent is reached. the average rate of growth is reduced by 4 percentage points. to their most pro- effect of fiscal tightening on short-term growth.4 Fiscal consolidation will have to be accompanied by structural reforms in order to increase overall competitiveness. these reforms can mitigate the negative For cultural or historical reasons. with specific emphasis on its capacity to fully leverage information and communication technologies (ICT) in daily activities and production processes for increased efficiency and competitiveness. fiscal policies—in particular in G-7 countries. the country has dropped from 61st in the 2006–2007 edition to 83rd this year. Such reforms are of particular importance in the context of Greece.5 By sending a signal. This can create an important competitive advantage.3 In the medium to longer term. Italy. In order to fulfill all those functions. Eighth pillar: Financial market development The recent financial crisis has highlighted the central role of a sound and well-functioning financial sector for economic activities. venture capital. Although this may seem politically painful. properly regulated securities exchanges. the banking sector needs to be trustworthy and transparent.1: The Global Competitiveness Index 2010–2011 Box 1: Fiscal policy and competitiveness (cont’d. An efficient financial sector allocates the resources saved by a nation’s citizens. and other financial products. recent research shows that governments that implement painful budgetary reforms tend to be rewarded politically. France. The challenge will be to implement fiscal adjustment without undermining the frail economic recovery in the shorter term. as it forces companies to be more innovative and customer oriented and thus imposes the discipline necessary for efficiency to be achieved in the market. Efficient labor markets must also ensure a clear relationship between worker incentives and their efforts. 1.14 The importance of the latter has been dramatically highlighted by the difficulties countries with particularly rigid labor markets—such as Spain—have encountered in recovering from the recent major economic downturn.

the presence of a value chain. That is why we separate technological readiness from innovation. it means sufficient investment in research and development (R&D). Among the main sources of foreign technology. The quality of a country’s business networks and supporting industries. the markets available to firms have been constrained by national borders. This is particularly important for countries at an advanced stage of development.18 By including both domestic and foreign markets in our measure of market size. which is captured in the 12th pillar below. financial. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . especially for small countries. Firms in these countries must design and develop cutting-edge products and processes to maintain a competitive edge. reducing macroeconomic instability. measures are reported for the 12 pillars separately because such details provide a sense of the specific areas in which a particular country needs to improve. especially for countries with small domestic markets. and barriers to entry for new firms are reduced.1: The Global Competitiveness Index 2010–2011 their role as industry-wide enabling infrastructure. Even if some recent research casts doubts on the robustness of this relationship. The central point is that the firms operating in the country have access to advanced products and blueprints and the ability to use them. This leads. all these factors eventually seem to run into diminishing returns. this is no longer sufficient for increasing productivity.1. the presence of highquality scientific research institutions.19 Although less-advanced countries can still improve their productivity by adopting existing technologies or making incremental improvements in other areas. standards of living can be enhanced only by technological innovation. and a weakness in one area often has a negative impact on other areas. FDI often plays a key role. efficiency is heightened. 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. to increased productivity. Business sophistication concerns the quality of a country’s overall business networks as well as the quality of individual firms’ operations and strategies. The same is true for the efficiency of the labor. Therefore ICT access and usage are key enablers of countries’ overall technological readiness. There is vast empirical evidence showing that trade openness is positively associated with growth. 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. Twelfth pillar: Innovation The final pillar of competitiveness is technological innovation. and the production of unique and sophisticated products) all lead to sophisticated and modern business processes. Amid the present economic uncertainty. the general sense is that trade has a positive effect on growth. Tenth pillar: Market size 8 The size of the market affects productivity since large markets allow firms to exploit economies of scale. Individual firms’ operations and strategies (branding. and goods markets. in turn. It is important to note that. and without sufficient financing (pillar 8) for R&D or an efficient goods market that makes it possible to take new innovations to market (pillar 6). is important for a variety of reasons. it will be important to resist pressures to cut back on R&D spending—both at the private and public levels—that will be so critical for sustainable growth going into the future. Appendix A describes the exact composition of the GCI and technical details of its construction. it is important to keep in mind that they are not independent: they tend to reinforce each other. Although substantial gains can be obtained by improving institutions. and the protection of intellectual property. or improving human capital. when the more basic sources of productivity improvements have been exhausted to a large extent. supported by both the public and the private sectors. For example. greater opportunities for innovation are created. thus enhancing a nation’s competitiveness. extensive collaboration in research between universities and industry. Whether the technology used has or has not been developed within national borders is irrelevant for its ability to enhance productivity. innovation (pillar 12) will be very difficult without a well-educated and trained workforce (pillars 4 and 5) that are adept at absorbing new technologies (pillar 9). in this context. especially by the private sector. marketing. In the long run. for those that have reached the innovation stage of development.17 Thus exports can be thought of as a substitute for domestic demand in determining the size of the market for the firms of a country. international markets have become a substitute for domestic markets. This requires an environment that is conducive to innovative activity. building infrastructure. as measured by the quantity and quality of local suppliers and the extent of their interaction. When companies and suppliers from a particular sector are interconnected in geographically proximate groups (“clusters”). While the pillars are aggregated into a single index. In particular. we give credit to export-driven economies and geographic areas (such as the European Union) that are broken into many countries but have a single common market. The interrelation of the 12 pillars Eleventh pillar: Business sophistication Business sophistication is conducive to higher efficiency in the production of goods and services. Traditionally. While we report the results of the 12 pillars of competitiveness separately. In the era of globalization.

in order to sustain this higher income. efficient goods markets (pillar 6). wages tend to increase and. a stable macroeconomic environment (pillar 3). The efficiency enhancers subindex includes those pillars critical for countries in the efficiency-driven stage. The GCI takes the stages of development into account by attributing higher relative weights to those pillars that are more relevant for an economy given its particular stage of development. competitiveness is increasingly driven by higher education and training (pillar 5). and a large domestic or foreign market (pillar 10). Finally. Maintaining competitiveness at this stage of development hinges primarily on well-functioning public and private institutions (pillar 1). although all 12 pillars matter to a certain extent for all countries.Basic requirements • • • • Institutions Infrastructure Macroeconomic environment Health and primary education Key for factor-driven economies Efficiency enhancers • • • • • • Higher education and training Goods market efficiency Labor market efficiency Financial market development Technological readiness Market size Innovation and sophistication factors • Business sophistication • Innovation 1. wages will have risen by so much that they are able to sustain those higher wages and the associated standard of living only if their businesses are able to compete with new and unique products. And the The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . This is because Rwanda and Germany are in different stages of development: as countries move along the development path. That is. the economy is factor-driven and countries compete based on their factor endowments: primarily unskilled labor and natural resources.20 Companies compete on the basis of price and sell basic products or commodities. developed financial markets (pillar 8). the pillars are organized into three subindexes. the ability to harness the benefits of existing technologies (pillar 9). each critical to a particular stage of development. well-developed infrastructure (pillar 2). it is clear that they will affect them in different ways: the best way for Rwanda to improve its competitiveness is not the same as the best way for Germany to do so. Countries will then move into the efficiency-driven stage of development.1: The Global Competitiveness Index 2010–2011 Figure 1: The 12 pillars of competitiveness Key for efficiency-driven economies Key for innovation-driven economies 9 Stages of development and the weighted Index While all of the pillars described above will matter to a certain extent for all economies. well-functioning labor markets (pillar 7). At this stage. the GCI assumes that. The basic requirements subindex groups those pillars most critical for countries in the factor-driven stage. companies must compete by producing new and different goods using the most sophisticated production processes (pillar 11) and through innovation (pillar 12). with their low productivity reflected in low wages. and a healthy workforce that has received at least a basic education (pillar 4). in the first stage. labor productivity must improve. productivity will increase and wages will rise with advancing development. In line with the well-known economic theory of stages of development. At this point. As a country becomes more competitive. when they must begin to develop more efficient production processes and increase product quality because wages have risen and they cannot increase prices. To implement this concept. as countries move into the innovation-driven stage. the relative importance of each one depends on a country’s particular stage of development.

reflecting the smooth transition from one stage of development to another. The three subindexes are shown in Figure 1.22 Table 2: Income thresholds for establishing stages of development Stage of development 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 GDP per capita (in US$) < 2.1: The Global Competitiveness Index 2010–2011 innovation and sophistication factors subindex includes the pillars critical to countries in the innovation-driven stage.000 2. given the general scope of the Index. the variable on the laws relating to ICT was dropped as it was deemed too specific. Within the infrastructure pillar (2nd).000–9.000–3. This widely available measure is used as a proxy for wages. The thresholds used are shown in Table 2. has been included because of the rising importance of this factor for competitiveness.000 3.000 > 17.21 The rounding of these econometric estimates led to the choice of weights displayed in Table 1. The technological readiness pillar (9th) has been separated into two relevant subpillars: technological adoption and ICT use. The first is the level of GDP per capita at market exchange rates. Overall the JRC found that the GCI is robust to changes in weights and is a solid index. Box 2 provides details of their findings. as follows: In the institutions pillar (1st). The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . The indicator on personal computers is no longer included as the data are no longer collected by the International Telecommunication Union. this variable was also included in the labor market efficiency pillar and in each instance it was given half weight. The weights attributed to each subindex in every stage of development are shown in Table 1.000–17. The density of fixed telephone lines is included in the ICT use category.” For these countries. some minor adjustments to the structure of the GCI have been made. as well as the Forum’s own analysis and changes in data availability.000 Any countries falling in between two of the three stages are considered to be “in transition. the indicators have been reorganized into two relevant subpillars. 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 10 Implementation of stages of development Two criteria are used to allocate countries into stages of development. The classification of countries into stages of development is shown in Table 3. Finally. Since it is also included in the infrastructure pillar. a measure of the extent of bribery and irregular payments derived from the Executive Opinion Survey has been added under ethics and corruption. assuming that countries that export more than 70 percent of mineral products (measured using a fiveyear average) are to a large extent factor driven. The index of the strength of investor protection compiled by the World Bank. is now included in the private institutions subpillar. The latter now includes mobile telephone subscriptions. This variable is also part of the technological readiness pillar and therefore receives half weight in each pillar. namely transport infrastructure and energy and telephony infrastructure. A second criterion measures the extent to which countries are factor driven. Previously.1.000 9. we have dropped the variable on education expenditure as it is no longer collected by UNESCO. Within the health and primary education and the higher education and training pillars (4th and 5th). a maximum likelihood regression of GDP per capita was run against each subindex for past years. The JRC is widely recognized as holding the world’s leading expertise on composite indicators. the JRC made some recommendations on how to further strengthen the GCI. Based on their findings. Adjustments to the GCI Over the past year. allowing for different coefficients for each stage of development. This allows us to place increasingly more weight on those areas that are becoming more important for the country’s competitiveness as the country develops. In addition to this overall assessment. A new variable on Internet bandwidth. previously in the financial market development pillar. because internationally comparable data on wages are not available for all countries covered. In the goods market efficiency pillar (6th). each instance is given half weight. the weights change smoothly as a country develops. the Global Competitiveness Index has been put through a rigorous analysis by the Joint Research Centre of the European Commission (JRC). such as the GCI. on the other hand. To obtain the weights. This is measured by the share of exports of mineral goods in total exports (goods and services). the variable used as a proxy for the tax rate is now given full weight. ensuring that the GCI can gradually “penalize” those countries that are not preparing for the next stage.

Finally. These include four African countries (Angola. we have employed a logarithmic transformation as one step in converting them to a 1-to-7 scale. Rwanda. The Ghana Honduras India Kenya Kyrgyz Republic Lesotho Madagascar Malawi Mali Mauritania Moldova Mongolia Mozambique Nepal Nicaragua Nigeria Pakistan Philippines Rwanda Senegal Tajikistan Tanzania Timor-Leste Uganda Vietnam Zambia Zimbabwe Algeria Angola Armenia Azerbaijan Botswana Brunei Darussalam Egypt Georgia Guatemala Guyana Indonesia Iran.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. and Swaziland) and two Middle Eastern countries (the Islamic Republic of Iran and Lebanon). FYR Malaysia Mauritius Mexico Montenegro Namibia Panama Peru Romania Russian Federation Serbia South Africa Thailand Tunisia Turkey Bahrain Barbados Chile Croatia Estonia Hungary Latvia Lithuania Oman Poland Puerto Rico Slovak Republic Taiwan. China Trinidad and Tobago Uruguay Australia Austria Belgium Canada Cyprus Czech Republic Denmark Finland France Germany Greece Hong Kong SAR Iceland Ireland Israel Italy Japan Korea. The Global Competitiveness Index 2010–2011 rankings Tables 4 through 8 provide the detailed rankings of this year’s GCI. Cape Verde. As Table 4 shows. in order to deal with skewness of two of the hard data variables (4. but instead groups all variables together. has now been reinstated. Moldova. Jamaica Kazakhstan Kuwait Libya Morocco Paraguay Qatar Saudi Arabia Sri Lanka Swaziland Syria Ukraine Venezuela Albania Argentina Bosnia and Herzegovina Brazil Bulgaria Cape Verde China Colombia Costa Rica Dominican Republic Ecuador El Salvador Jordan Lebanon Macedonia. Rep. Luxembourg Malta Netherlands New Zealand Norway Portugal Singapore Slovenia Spain Sweden Switzerland United Arab Emirates United Kingdom United States The business sophistication pillar (11th) is no longer divided into two subpillars. This has led to an increase in coverage to a total of 139 economies this year. Islamic Rep. all of the countries in the top 10 remain the same as last year. could not be included in this edition because of a lack of Survey data. which was covered last year. Country coverage A number of new countries have been added this year. a country that had been covered for several years but was excluded last year because of insufficient Executive Opinion Survey data.04 Imports as a percentage of GDP). On the other hand.10 Primary enrollment and 10. with some shifts in The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. All of the adjustments described above are reflected in Appendix A at the end of this chapter. Suriname.1: The Global Competitiveness Index 2010–2011 Table 3: List of countries/economies at each stage of development 11 .

Relatively higher volatility (longer error bars) is present in the middle part of the graph. GCI scores are rather robust: the median score is always close to the reference score.0. The range of variation of the set of weights takes into account this simplification by overlapping uncertainty intervals (see Table 1). Namibia. macroeconomic environment. moderate in absolute terms. Countries in transition are assigned to the nearest development stage. Looking at the shift in ranks (see Appendix B). the Unit developed the Handbook on Constructing Composite Indicators: Methodology and User Guide. European Commission Joint Research Centre Analyzing the robustness of the Global Competitiveness Index (GCI) and identifying how a country’s performance improves or deteriorates under certain assumptions are necessary steps for ensuring the transparency and reliability of the Index and putting the results into a contextual framework.4] Sources: European Commission Joint Research Centre. Evaluating each pillar's contribution to the final score Is the GCI framework well balanced across the 12 different dimensions that define country competitiveness? This is tested by assigning a zero weight to one pillar at a time and comparing the resulting score with the GCI values.5] w13 0. often populated by a different number of indicators. The main results are shown in Figure 2. the need to ensure a wide enough interval to have meaningful robustness checks.6 U[0. the need to keep the rationale of the GCI weighting scheme. More on the robustness analysis of the weighting scheme is discussed in Appendix B. the maximum shift of a country is up to 5 positions for 75 percent of the cases.3.4 U[0.1.5 U[0.1. where k = 1. (Cont’d. World Economic Forum. Considering this trade-off.0.3] w31 0.0. Table 1: Uncertainty intervals of GCI weights Stage of development Stage 1: Factor-driven Stage 2: Efficiency-driven Stage 3: Innovation-driven Weight Distribution Reference assigned for the value robustness analysis w11 0. The Unit of Econometrics and Applied Statistics at the European Commission Joint Research Centre has longstanding experience in constructing and testing composite indicators. the final GCI scores are computed as a weighted average of three subindexes. for each country. Bahrain.05 U[0.0. The robustness of the GCI weighting scheme is tested by randomly sampling the set of weights wjk. The robustness analysis performed for the GCI challenges some of its key assumptions: the differentiated weighting scheme adjusted to the countries’ development stage and the contribution to the final score of each of the 12 pillars. The Monte Carlo simulation comprises 1. The influence is.6] w22 0. efficiency enhancers.3 U[0. originally designed to take into account intrinsic differences across countries. only the three major development stages (stages 1.4] w32 0.200 Monte Carlo simulations. Error bars represent. on the other hand. health and primary education. 2009.7] w33 0.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . The choice of the range of variation has been driven by two opposite needs: on the one hand. enabling policymakers to derive more accurate and meaningful conclusions. where the black line of the reference score is less steep. Suriname. infrastructure.1. and innovation and sophistication factors as follows: GCIij = wj1Basici + wj2Effciencyi + (1 − wj1 − wj2)Innovation where i is the country index and j is the country development stage. limit values of uncertainty intervals have been defined as shown in Table 1.3. For technical reasons.2.0.0. which has become the international reference in the field.7] w23 0. Changing these assumptions is likely to affect the inferences drawn from the model.0. the 90 percent confidence interval.2 U[0.0.35 U[0. and market size. 2. Brunei Darussalam.2.5 U[0.0. and Syria.1 U[0.2. and 3) are considered for the robustness analysis. All but the last belong to the basic requirements subindex. Robustness analysis assesses the major drivers of uncertainty in model predictions. This demonstrates that almost all of the 12 pillars contribute to the GCI score in a balanced way. For only 7 countries out of 133 is the width of confidence interval slightly higher than 10 percent of the GCI reference value—these are Algeria.1] w21 0. The black line is the median across all countries and the boxes include 75 percent of the cases. Oman. Together with the Organisation for Economic Co-operation and Development (OECD). The most influential pillars are institutions. Every model depends on a set of assumptions.3 from uniform continuous distributions centered in the corresponding GCI reference value (see Table 1 in the main text of this chapter). however. each corresponding to a different set of weights of the three subindexes.8] w12 0. The main outcome of the robustness analysis is shown in Figure 1 with median scores and 90 percent confidence intervals computed across the 1. meaning that higher volatility is associated with countries with similar scores.4.1 The robustness of the GCI with respect to its weighting scheme As described in the main text of this chapter.0.200 runs.1: The Global Competitiveness Index 2010–2011 12 Box 2: Testing the robustness of the Global Competitiveness Index MICHELA NARDO and PAOLA ANNONI. The whole distribution of the score differences is displayed by the vertical blue lines. Countries are ordered from best to worst according to their GCI reference score (black line). which describe basic requirements.05. A median close to zero with a small box and a short blue line indicates a pillar whose exclusion does not affect the final score in a significant manner. the blue dot being the median score.

with the most influential pillars being those of the basic requirements subindex.0 –0.Overall.4 .3 Sources: European Commission Joint Research Centre. the GCI proved to be robust.2 0.1 –0.4 GCI score–simulated score 0. See World Economic Forum 2009. 2009.5 0.3 0. Note 1 The analysis was carried out on the GCI from The Global Competitiveness Report 2009–2010. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum Innovation Business sophistication Market size Technological readiness Financial market development Labor market efficiency Goods market efficiency Higher education and training Health and primary education Macroeconomic environment Infrastructure Institutions –0. Figure 2: GCI framework balance of pillars: Score differences 0.2 –0. 2009. World Economic Forum.) Median score — GCI 2009–2010 score 6 Score 5 4 3 2 1 Countries in the GCI 2009–2010 13 Sources: European Commission Joint Research Centre.1 0. Figure 1: Robustness analysis: Median scores and their confidence intervals 7 1. Almost all pillars contribute in a balanced way to the overall GCI score. World Economic Forum.1: The Global Competitiveness Index 2010–2011 Box 2: Testing the robustness of the Global Competitiveness Index (cont’d. Country scores and ranks are not significantly affected by different weighting schemes with only few exceptions.

a well-functioning goods market (4th). and air transport facilities. Goods and financial markets are also very efficient. the innovation-driven stage. efforts should be made to boost higher education attainment to ensure sufficient national talent to continue contributing to productivity improvements. while the competitiveness of more industrialized economies is worsening. reinforced by strong intellectual property protection and government support of innovation through its procurement processes. supported by an excellent university system that collaborates strongly with the business sector in R&D.1. Singapore maintains its position at 3rd place. resulting in a small convergence in performance. 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. Latin America and the Caribbean. while those countries in the first and second stages have seen a slight improvement in score. In addition. The country benefits from the world’s most transparent and efficient public institutions. Competitiveness is also buttressed by excellent infrastructure (6th). highlighting the stability among the top 10 performers.1: The Global Competitiveness Index 2010–2011 14 rank. Public institutions in Switzerland are among the most effective and transparent in the world (5th). the university enrollment rate of 49. the country’s competitiveness is buttressed by a strong focus on education. placing it 48th on this indicator. Switzerland’s scientific research institutions are among the world’s best. And Switzerland’s macroeconomic environment. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . and a highly accountable public sector.95 per million inhabitants) in the country. receiving an even better comparative assessment this year than in past years. ports.23 One trend worth noting is the slight decline on average among countries in the most advanced stage of development. Asia and the Pacific. ensures that much of this research is translated into marketable products and processes. Sweden has moved ahead of Singapore and the United States to claim 2nd position this year. This strong innovative capacity is captured by the high rate of patenting (158. Private institutions also receive excellent marks (ranked 3rd). The following sections discuss the findings of the GCI 2010–2011 for the top 10 performers globally. developing countries are improving. Labor markets are ranked 4th. With an eye to the future. Singapore could encourage even stronger adoption of the latest technologies as well as policies that enhance the sophistication of its companies. ranked 4th for its business sophistication and 2nd for its innovation capacity. combined with high company spending on R&D. ensuring the proper allocation of these factors to their best use. with firms that demonstrate the utmost ethical behavior (ranked 1st). as well as for a number of selected economies in each of the five following regions: Europe and Central Asia. providing individuals with the skills needed for a rapidly changing global economy. and sub-Saharan Africa. The country’s institutions continue to be assessed as the best in the world. characterized by the ease and affordability of hiring workers and significant wage flexibility. with excellent roads. Top 10 The countries that constitute the top 10 remain the same as last year. Singapore also has world-class infrastructure (ranked 5th). Combined with a strong focus on education over the years (ranked 2nd for higher education and training) and the world’s strongest technological adoption (ranked 1st in the technological readiness pillar). and well-functioning corporate boards. ranked 1st for both the lack of corruption in the country and government efficiency. strong rule of law. Governance structures ensure a level playing field. a number of escalating weaknesses have lowered the US ranking over the past two years. These characteristics come together to make Sweden one of the most productive and competitive economies in the world. and the strong collaboration between the academic and business sectors. Sweden has developed a very sophisticated business culture (2nd) and is one of the world’s leading innovators (ranked 5th). just behind Singapore’s). after weakening slightly last year. In order to strengthen its competitiveness further. for which Switzerland ranks 7th worldwide on a per capita basis. falling two more places to 4th position.4 percent continues to lag behind many other high-innovation countries. with very low levels of corruption and undue influence and a government that is considered to be one of the most efficient in the world: public trust of politicians is ranked a high 3rd. these include an independent judiciary. enhancing business confidence. The United States continues the decline that began last year. with some changes in rank among them. US companies are highly sophisticated and innovative. has bounced back and is among the most stable in the world (ranked 5th) at a time when many countries are struggling in this area. still the highest-ranked country from Asia. Switzerland retains its 1st place position. In other words. and a highly developed financial market (8th) as well as a labor market that is among the most efficient in the world (2nd. While Switzerland demonstrates many competitive strengths. characterized by an excellent capacity for innovation and a very sophisticated business culture. although labor markets lack flexibility. the Middle East and North Africa. strong auditing and reporting standards. Singapore places 1st for the efficiency of its goods and labor markets and 2nd for its financial market sophistication. While many structural features that make its economy extremely productive.

The Honduras Lebanon Georgia Moldova Jamaica Serbia Syria Armenia Mongolia Libya Dominican Republic Bosnia and Herzegovina Benin Senegal Ecuador Kenya Bangladesh Bolivia Cambodia Guyana Cameroon Nicaragua Tanzania Ghana Zambia Tajikistan Cape Verde Uganda Ethiopia Paraguay Kyrgyz Republic Venezuela Pakistan Madagascar Malawi Swaziland Nigeria Lesotho Côte d’Ivoire Nepal Mozambique Mali Timor-Leste Burkina Faso Mauritania Zimbabwe Burundi Angola Chad 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 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 4.49 3.10 5.45 3.35 3.70 3.) GCI 2010–2011 Country/Economy Rank Score Kazakhstan Peru Namibia Morocco Botswana Croatia Guatemala Macedonia.11 5.73 GCI 2010– 2011 rank among 2009 countries 71 72 73 74 75 76 77 78 n/a 79 80 81 82 83 84 85 86 87 88 89 n/a 90 n/a 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 n/a 113 114 115 116 117 118 119 120 n/a 121 122 123 124 125 126 127 128 129 130 131 n/a 132 GCI 2009–2010 rank * 67 78 74 73 66 72 80 84 n/a 70 77 71 86 87 83 85 96 82 81 89 n/a 90 n/a 91 93 94 97 117 88 95 109 103 92 105 98 106 120 110 104 111 115 100 114 112 122 n/a 108 118 124 123 113 101 121 119 n/a 99 107 116 125 129 130 126 128 127 132 133 n/a 131 * The 2009–2010 rank shown is the one published last year out of 133 countries.74 3.34 3.25 5.57 4.14 4.21 5.50 4.43 4.95 3. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1.04 4.12 4.53 3.13 5.76 3.86 3.32 3.64 3.96 3.91 4.88 4.92 4.51 4.48 3.33 4.33 4. FYR Rwanda Egypt El Salvador Greece Trinidad and Tobago Philippines Algeria Argentina Albania Ukraine Gambia.14 4.93 2.89 4.21 4.08 4.23 3.96 2.28 3. China Norway France Australia Qatar Austria Belgium Luxembourg Saudi Arabia Korea.90 3. Latvia Bulgaria 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 69 70 71 5.25 4.65 3.99 3.68 4.14 4.37 5.51 4.48 5.55 3.51 3.16 4.69 3.20 3.90 3.54 4.61 4.00 3.30 5.19 4.64 3.05 4.56 5.48 3.38 4.86 3.45 4.85 3.00 4.40 3. Suriname’s rank of 102 from last year is therefore not shown in the table.49 3.58 3.37 4.75 3.14 3.67 3.63 3.56 3.14 5.37 5.05 4.36 4.94 3.25 4.27 4. One country that was included last year.79 3.49 4.59 4.89 3.38 4.28 4.24 4.75 4.32 4.61 4.09 4.65 4.95 4.49 4.32 5.34 4.42 4.72 3.99 3.93 4.07 5. has been excluded this year for lack of Survey data.13 GCI 2010– 2011 rank among 2009 countries 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 n/a 69 70 GCI 2009–2010 rank * 1 4 3 2 7 8 6 10 5 9 11 13 12 14 16 15 22 17 18 21 28 19 20 27 23 24 29 32 25 30 26 40 35 41 39 31 38 36 46 34 42 33 44 54 37 43 53 48 62 52 49 58 59 45 57 55 51 56 75 47 61 79 63 65 50 60 64 69 n/a 68 76 (Cont’d.57 3.31 4.36 3.11 4.97 3.43 5.04 4.03 2.38 3.GCI 2010–2011 Country/Economy Switzerland Sweden Singapore United States Germany Japan Finland Netherlands Denmark Canada Hong Kong SAR United Kingdom Taiwan.65 3.84 3.23 4.84 4.32 4.51 3. Islamic Rep. Rep.96 3.33 4.29 4.09 5.74 4. Suriname.39 5.69 4.63 5.46 3.1: The Global Competitiveness Index 2010–2011 Table 4: Global Competitiveness Index 2010–2011 rankings and 2009–2010 comparisons 15 .30 5.51 3.02 4.62 3.56 3.33 5. New Zealand Israel United Arab Emirates Malaysia China Brunei Darussalam Ireland Chile Iceland Tunisia Estonia Oman Kuwait Czech Republic Bahrain Thailand Poland Cyprus Puerto Rico Spain Barbados Indonesia Slovenia Portugal Lithuania Italy Montenegro Malta India Hungary Panama South Africa Mauritius Costa Rica Azerbaijan Brazil Vietnam Slovak Republic Turkey Sri Lanka Russian Federation Uruguay Jordan Mexico Romania Colombia Iran.89 3.25 4.

32 5.17 5.82 4.91 4.92 4.27 5.03 3.18 4. Basic requirements Efficiency enhancers Innovation and sophistication 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 68 69 5.91 5.52 4.31 4.42 4.97 4.77 6.74 4.50 4.48 5.82 4.48 4.39 4.81 4.67 4.68 4.93 5.13 5.11 5.41 5.46 3.43 5.49 4.32 5.14 4.50 4.36 4.51 4.81 5.27 4.68 4.13 3.69 4.24 4.97 4.71 3.76 2 3 10 4 5 1 6 8 9 14 24 12 7 17 16 22 23 13 15 19 26 18 28 11 27 25 31 72 21 44 20 34 45 47 60 30 55 49 50 36 29 41 52 37 35 39 48 32 56 46 42 51 54 43 59 33 66 38 53 63 57 40 80 70 65 69 91 61 82 5.01 5.46 5.34 4.61 4.12 5.05 5.88 3.35 5.54 4.15 5.41 4.87 3.73 5.36 3.68 3.67 4.37 4.1.43 4.35 4.42 4.67 3.18 4.67 5.09 5.49 4.61 4.69 4.19 4.38 4.58 5.37 4.58 4 5 1 3 13 11 14 8 9 6 2 7 16 12 15 10 26 19 17 20 27 22 18 23 21 24 29 67 25 35 31 50 34 48 68 28 33 39 30 36 40 32 52 51 46 43 49 45 64 47 38 41 62 42 66 58 75 44 57 37 55 69 53 74 73 61 54 60 90 5.91 4.29 4.79 4.43 5.46 4.24 5.09 3.74 5.37 5.45 5.01 4.19 3.93 3.61 4.41 4.11 3.82 5.38 4.42 5.49 5.56 5.34 (Cont’d.77 4.84 4.51 4.21 4.39 5.25 5.25 5.09 4.81 4.67 3.08 3.57 4.72 5.05 5.26 4.05 5.51 5.38 4.23 4.36 4.55 3.14 2 4 3 32 6 26 5 9 7 11 1 18 19 17 16 12 13 15 22 10 28 23 14 39 8 33 30 20 35 37 41 31 25 24 36 44 21 48 56 29 43 38 27 60 34 42 52 46 45 40 81 59 49 79 47 62 58 86 74 53 68 73 65 51 57 66 77 78 63 6.45 4.37 4.11 3.65 4.07 5.62 5.21 5.13 5.25 4.19 5.84 4.97 3.71 5.96 3.68 4.51 4.42 4.08 4.1: The Global Competitiveness Index 2010–2011 16 Table 5: The Global Competitiveness Index 2010–2011 SUBINDEXES OVERALL INDEX Country/Economy Switzerland Sweden Singapore United States Germany Japan Finland Netherlands Denmark Canada Hong Kong SAR United Kingdom Taiwan.12 5.89 5.83 4.98 5.96 3.46 4.52 4.18 5. New Zealand Israel United Arab Emirates Malaysia China Brunei Darussalam Ireland Chile Iceland Tunisia Estonia Oman Kuwait Czech Republic Bahrain Thailand Poland Cyprus Puerto Rico Spain Barbados Indonesia Slovenia Portugal Lithuania Italy Montenegro Malta India Hungary Panama South Africa Mauritius Costa Rica Azerbaijan Brazil Vietnam Slovak Republic Turkey Sri Lanka Russian Federation Uruguay Jordan Mexico Romania Colombia Iran.61 4.18 5.88 4.76 4.71 5.13 3.38 5.75 4.08 4.24 3.48 5.75 4.39 4.30 5.33 5.59 4.48 5.77 4.33 4.32 5.33 4.16 4.63 3.82 4.01 4.09 3.65 5.90 5.24 3.31 4.56 4.45 4. China Norway France Australia Qatar Austria Belgium Luxembourg Saudi Arabia Korea.63 4.22 4.33 4.67 4.79 4.82 5.58 5.24 4.66 4.46 3.15 4.35 4.21 5.32 4.23 4.86 5.57 4.35 4.56 3.89 4.65 4.72 4.11 5.25 4.06 4.28 4.09 5.19 3.63 5. Islamic Rep.42 4.05 4.62 4.43 4.32 5.05 4.01 4.16 4.67 5.98 3.97 5.90 3.05 4.54 4.53 5.09 5.28 4.30 5.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .28 4.69 5.03 4.91 4.76 4.95 4.98 3.95 4. Rep.54 4.07 4.08 4.83 4.77 4.36 4.16 4.28 5.10 5.49 4.57 4.33 4.50 3.33 4.34 4.20 5.59 4.30 4.30 4.54 3.07 5.30 5.14 5.69 3.98 6.93 4.97 4.05 4.16 5.05 5.78 3.98 4.51 4.67 5.28 5.37 5.20 4.25 4.92 4.13 5.48 4.32 4.41 5.

53 3.59 3.56 3.41 3.65 3.87 3.96 2.76 3.93 3.07 4.05 3.36 3.56 2.96 3.89 3.29 3.56 3.93 3.41 3.47 3.29 4.36 3.08 4.40 3.98 2.66 3.90 2.87 2.48 3.71 3.04 4.63 3.43 3.1: The Global Competitiveness Index 2010–2011 Table 5: The Global Competitiveness Index 2010–2011 (cont’d.55 3.87 4.57 3.69 3.15 4.94 3.32 3.57 3.89 3. FYR Rwanda Egypt El Salvador Greece Trinidad and Tobago Philippines Algeria Argentina Albania Ukraine Gambia.93 2.83 3.19 4.51 3.22 4.49 3.15 3.85 3.79 The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1.64 3.13 4.38 3.24 2.89 3.75 3.35 3.77 3.77 3.90 3.74 3.14 3.08 2.36 3.53 3.41 2.72 3.51 3.62 3.76 3.48 4.33 2.80 3.64 3.52 3.49 4.78 3.95 3.45 3.20 3.02 4.89 3.06 3.30 3.22 3.90 3.58 2.97 2.65 3.18 3.17 2.54 3.65 3.99 2.20 3.51 3.60 4.00 2.44 4.95 3.) 17 .39 3.43 4.38 3.89 3.35 3.43 3.05 4.26 4.49 3.49 3.48 2.01 2.59 3.09 4.46 3.23 3.90 3.00 4.72 3.30 3.31 3.00 3.51 3.66 3.34 3.24 3.SUBINDEXES OVERALL INDEX Country/Economy Latvia Bulgaria Kazakhstan Peru Namibia Morocco Botswana Croatia Guatemala Macedonia.37 3.85 3.14 3.64 3.12 3.89 2.79 3.96 2.38 3.98 3.38 3.19 3.51 3.63 2.12 4.55 4.44 3.88 3.84 2.21 3.98 3.49 3.84 3.02 4.78 3.95 2.14 3.96 3.91 3.99 3.28 3.14 3.12 3.49 3.79 3.28 4.29 3.08 4.54 3.99 3.04 3.45 4.47 3.20 3.50 3.57 4.71 3.71 2.56 3.01 2.75 3.74 4.78 3.79 3.56 3.78 4.97 4.15 3.14 4.04 2.17 3.32 4.96 3.81 77 95 102 89 92 79 93 85 62 97 87 68 96 73 78 75 108 71 104 88 64 98 74 121 123 86 107 115 114 119 135 99 120 81 67 124 58 109 125 106 103 105 126 94 100 90 118 128 111 117 132 137 129 76 113 84 131 83 116 110 133 101 112 136 127 134 122 138 139 130 3.45 3.13 3.63 3.66 3.09 3.37 4.73 61 72 69 87 54 64 76 50 85 70 84 89 71 67 55 99 80 82 75 102 90 91 106 95 97 103 93 83 94 100 88 107 98 104 108 92 126 114 101 113 105 111 109 116 122 121 112 96 123 119 115 120 117 132 118 129 110 136 124 133 125 130 128 127 134 131 137 135 138 139 4.28 4.00 4.39 3.60 2.97 3.35 3.86 3.88 3.42 3.67 3.78 4.89 3.56 3.01 2.48 3.38 3.67 3.32 3.20 3.53 3.16 2.25 3.37 3.13 4.53 3.70 4.20 3.29 3.62 3.43 3.20 3.31 3.15 2.36 3.13 3.70 4.04 4.53 3.78 3.58 3.63 3.16 3.11 3.46 3.22 3.32 2.80 4.38 2.00 3.96 2.96 3.11 4.68 63 65 71 56 91 88 85 76 81 83 98 82 87 59 77 78 107 86 89 72 105 104 70 94 99 80 93 117 106 109 127 92 100 120 108 115 79 97 125 103 112 121 122 114 96 101 123 129 102 118 119 111 113 95 124 110 126 84 132 116 131 128 135 136 133 138 134 139 130 137 4.03 2.48 3.62 3.84 3.80 3.69 3.08 2.84 3.70 3.38 3.92 4. The Honduras Lebanon Georgia Moldova Jamaica Serbia Syria Armenia Mongolia Libya Dominican Republic Bosnia and Herzegovina Benin Senegal Ecuador Kenya Bangladesh Bolivia Cambodia Guyana Cameroon Nicaragua Tanzania Ghana Zambia Tajikistan Cape Verde Uganda Ethiopia Paraguay Kyrgyz Republic Venezuela Pakistan Madagascar Malawi Swaziland Nigeria Lesotho Côte d’Ivoire Nepal Mozambique Mali Timor-Leste Burkina Faso Mauritania Zimbabwe Burundi Angola Chad Basic requirements Efficiency enhancers Innovation and sophistication factors Rank Score Rank Score Rank Score Rank Score 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 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 4.42 3.75 3.56 3.16 4.82 4.14 3.97 3.24 3.62 3.10 3.92 4.20 3.28 2.00 2.90 3.05 3.50 2.86 3.

86 3.24 3.14 5.00 3.37 4.89 6.56 4.05 4.77 3.87 6.88 3.56 3.49 4.79 89 87 136 77 90 22 20 76 27 133 23 21 113 100 98 84 62 52 80 134 132 114 126 9 109 137 40 50 79 78 99 41 26 39 13 107 96 64 59 32 115 17 4 69 73 2 106 42 66 103 85 1 51 12 86 82 74 38 34 31 65 11 61 81 102 18 60 124 55 3.72 4.78 5.58 4.67 4.77 4.60 4.57 3.62 5. Islamic Rep.52 4.72 3.50 3.76 4.47 4.1.16 5.99 5.60 63 98 119 132 97 14 15 71 27 115 22 29 87 136 126 32 93 36 114 90 138 94 107 11 56 135 28 49 103 51 133 86 30 72 5 117 128 57 101 31 59 4 26 37 69 13 67 84 124 95 108 8 79 18 58 61 82 24 33 92 85 25 41 91 123 62 46 131 75 3.64 6.59 6.37 5.75 3.24 5.42 3.27 4.65 5.54 4.69 4.42 4.66 5.88 (Cont’d.76 6.48 4.69 4.98 3.86 5.12 4.84 3.19 2.68 5.13 5.67 5.85 3.82 4.00 4.49 4.20 4.21 5.05 6.39 5.96 4.40 3.67 4.53 5.48 3.16 4.20 4.66 4.52 6.26 5.83 4.81 5.57 2.35 4.43 3. Macroeconomic environment 4.45 3.96 6.71 3.52 5.12 4.80 2.30 5.77 4.94 3.61 5.02 6.66 5.84 3.56 4.91 4.33 5.90 5.55 4.49 3.26 4.78 5.27 3.50 5.36 6.04 4.41 5.25 5.48 5.18 3.37 6.48 4.01 3.49 6.56 2.17 4.50 6.13 2.43 2.48 3.22 2.98 3.97 3.58 4.37 5.92 3.94 2.37 3.29 3.29 5.27 4.16 3.14 4.44 5.76 5.30 4.15 4.19 5.75 4.15 4.98 3.37 4.71 5.98 4.71 4.35 4. Health and primary education Rank Score Rank Score Rank Score Rank Score Rank Score 75 80 138 82 94 12 15 58 21 114 27 22 104 101 98 76 86 20 72 134 135 113 111 11 96 139 37 30 78 62 133 50 29 44 7 107 92 89 71 25 119 5 16 90 95 6 122 67 85 105 91 1 59 41 81 60 63 35 39 46 103 26 57 69 126 23 36 120 61 4.26 4.28 4.36 4.11 4.46 3.62 3.75 6.78 5.55 5.04 3.57 2.34 5.18 5.67 3.44 5.65 4.84 4.26 5.00 6.87 5.42 5.16 3.69 3.91 5.1: The Global Competitiveness Index 2010–2011 18 Table 6: The Global Competitiveness Index: Basic requirements PILLARS BASIC REQUIREMENTS Country/Economy Albania Algeria Angola 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 Cape Verde 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 3.66 5.86 5.36 5.80 4.23 5.75 4.78 3.93 3.62 5.42 5.33 3.59 4.73 5.61 4.43 4.13 4.58 5.85 4.08 2.47 4.15 6.13 5.48 5.73 3.48 6.58 3.03 3.55 6.46 5.15 5.85 3.20 3. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran.43 4.38 3.76 3.16 3.23 5.89 3.83 3.20 5.50 5.38 4.15 5.21 5.11 3.74 5.50 6.14 4.05 4.07 4. Infrastructure 3.62 4. Institutions 2.58 3.52 2.36 4.91 5.25 3.77 3.45 3.89 4.89 4.67 4.91 3.70 2.69 3.91 3.11 2.56 3.99 3.19 6.27 4.63 5.49 6.08 4.66 6.83 3.90 2.26 3.03 5.79 5.65 4.81 1.86 5.96 5.63 3. Kuwait Kyrgyz Republic Latvia 1.60 5.26 101 57 122 54 99 17 24 13 11 80 91 72 82 59 81 74 111 1 42 98 121 116 53 36 102 134 27 4 50 108 94 51 67 48 16 88 55 129 64 19 127 15 44 117 130 23 136 123 63 126 100 10 69 138 73 35 45 95 60 76 137 105 103 26 128 6 2 119 84 4.96 4.55 5.37 6.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .81 4.35 2.32 4.67 4. Rep.05 4.69 2.21 4.69 5.34 5.10 6.29 4.02 4.74 5.59 4.51 6.23 3.35 4.49 1.05 4.12 4.59 2.10 5.84 3.30 4.03 3.44 4.63 5.49 5.68 5.29 3.42 5.87 4.59 4.15 3.52 4.60 2.14 6.97 4.96 3.53 2.93 4.47 56 77 139 60 93 13 17 83 36 106 14 1 108 100 89 114 87 32 58 135 120 110 116 6 88 138 71 37 79 22 136 48 12 43 20 107 75 91 81 29 119 2 16 124 73 25 122 40 96 78 82 28 57 4 104 62 54 10 46 26 102 9 66 85 121 21 68 101 55 5.80 4.61 4.75 6.45 6.63 3.76 3.66 5.24 6.13 2.83 5.36 4.46 3.24 3.44 2.33 3.84 3.10 4.64 2.02 3.51 6.16 5.78 5. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.13 4.30 5.19 4.87 5.90 5.65 5.54 4.89 5.34 6.59 3.58 5.01 4.92 5.42 3.64 3.48 4.44 3.82 4.59 3.32 3.54 3.32 2.97 5.06 2.50 6.

22 4.58 5.56 4.33 4.74 3.40 3.82 2.07 6.61 4.83 6.23 4.19 4.00 3.21 2.32 4.61 3.65 4.94 3.05 113 100 111 60 9 80 129 52 42 109 34 116 43 106 102 122 45 66 99 38 130 12 3 127 121 6 16 112 73 137 96 125 54 48 44 10 81 118 19 21 76 120 1 89 50 47 53 55 70 2 7 78 35 77 83 64 110 68 23 88 104 134 20 17 40 39 139 74 65 105 3.75 5.21 4.88 5.10 3.06 3.74 3.85 3.39 4.00 6.89 3.81 4.74 6.72 2.77 3.27 4.60 3.64 4.70 5.70 4.11 5.05 4.05 4.58 3.43 3.02 4.77 3.01 4.54 6.66 4.47 3.81 5.50 5.07 5.82 5.29 5.11 3.86 6.54 4.) 19 .53 4.73 4.10 3.87 4.52 4.82 3.41 5.29 2.37 4.13 3.19 4.06 6.53 3.76 6.69 5.64 5.70 6.09 4.17 4.75 4.56 3.37 3.34 3.69 4.50 5.08 3.64 3.24 4.99 3.27 5.53 4.52 4.99 4.07 3.41 6.60 4.16 The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1.53 5.57 3.80 3.96 5.45 3.92 4.91 3.53 3.98 6.16 5.46 5.08 5.35 4.42 6.90 5.33 5.45 2.22 3. Infrastructure 3.82 3.19 6. 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 1.22 4.52 4.45 3.46 4.49 3.17 5.46 3.18 3.66 5.28 4.36 4.18 5.PILLARS BASIC REQUIREMENTS Country/Economy Lebanon Lesotho Libya Lithuania Luxembourg Macedonia.17 4.13 4.95 6.87 3.18 3.53 6.65 5.67 4.39 3.70 4.47 5.30 4.08 3.24 3.56 5.39 4.56 2.93 5.42 3.66 4.50 5.85 3.90 4.94 2.33 3.28 5.70 3.80 5.49 4.20 5.67 4.58 4.14 6.92 5.23 4.73 2.76 3.71 4.63 2.35 2.52 5.12 6.90 4.01 5.78 2.59 2.22 5.77 3.43 5.56 3.13 5.13 6.95 6.65 4.81 5.73 3.35 5.32 6.78 6.81 6.62 3.01 5.19 3.00 4.56 5.79 3.37 4.37 5.98 5.26 5.26 1.42 5.25 4.26 5.28 5.28 5.09 2.76 3. Macroeconomic environment 4.22 4.76 4.55 3.19 5.47 2.26 44 131 115 52 27 69 103 125 34 134 30 127 59 70 84 98 33 94 133 112 109 8 5 95 137 24 99 123 76 105 92 90 39 41 51 15 63 53 111 74 118 50 3 45 23 129 49 35 130 18 7 64 11 97 113 80 132 61 31 72 117 67 38 19 42 47 86 65 128 126 6.38 4.35 3.99 5.34 3.69 5.56 4.83 3.39 6. Health and primary education Rank Score Rank Score Rank Score Rank Score Rank Score 106 124 88 52 10 70 118 129 33 128 40 131 47 66 97 100 45 64 130 54 125 9 14 109 136 17 24 132 49 115 87 99 56 42 43 13 77 65 84 28 108 93 3 53 34 79 38 73 110 4 2 83 19 112 116 48 127 55 31 68 123 102 8 18 32 51 117 74 121 137 3.51 4.47 2.71 3.75 3.63 4.56 5.15 6.40 3.22 6.02 5.22 4.77 5.47 5.93 4.74 3.46 2.07 2.43 6.97 4.14 4.43 3.01 6.03 5.82 4.41 3.81 2.42 2.82 5.73 6.74 3.82 5.46 3.37 4.23 5.1: The Global Competitiveness Index 2010–2011 Table 6: The Global Competitiveness Index: Basic requirements (cont’d.18 3.74 4.18 4.09 5. Institutions 2.32 3.82 3.25 4.61 3.28 4.44 5.31 4.95 6.55 3.60 5.25 5. 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 Rwanda Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Swaziland Sweden Switzerland Syria Taiwan.26 5.22 4.99 5.44 4.67 3.65 4.81 4.25 3.45 2.18 4.49 4.56 5.88 5.50 4.82 3.20 5.97 2.23 6.76 5.20 5.26 4.39 4.77 5.81 4.40 6.20 4.36 3.82 3.63 2.84 1.21 4.64 2.47 3.67 5.89 5.22 4.40 4.36 125 77 7 71 9 47 112 135 41 65 52 118 62 28 90 49 37 31 104 40 86 25 20 110 97 18 3 133 30 93 75 68 61 96 39 8 78 79 106 22 89 109 33 32 34 43 66 124 92 14 5 58 21 131 115 46 29 70 38 83 114 132 12 56 87 107 113 85 120 139 3.04 4.43 4.95 3.12 5.77 5.61 5.61 3.29 5.72 4.67 5.59 5.60 4.58 5.67 6.05 5.25 5.83 3.19 5.06 4.60 4.07 5.76 4.36 4.75 4.18 2.53 2.05 4.02 5.79 5.80 3.80 4.36 3.71 3.19 3.01 4.26 5.50 4.56 3.41 123 120 95 43 19 91 130 131 30 121 48 122 58 75 97 117 67 71 119 54 139 7 37 111 135 29 33 110 44 125 88 104 72 24 49 25 92 47 101 28 112 93 5 57 36 63 14 70 94 10 6 105 16 116 128 35 138 45 46 56 127 68 3 8 15 53 108 83 118 129 2.34 4.38 5.11 5.92 3.37 3.95 3.

97 5.11 2.89 3.80 5.96 5.05 4.97 3.01 2.75 5.22 5.05 3.45 4.32 3.79 2.75 5.84 3.66 2.76 1.70 4.78 4.13 4.38 4.09 4.00 5.33 3.04 3.97 5.23 5.77 3.47 1.32 4. Rep.11 5.29 4.09 4.97 4.40 3.82 4.22 2.24 3.63 4.76 3.14 3.10 5.21 4.16 3.75 4.76 4.39 4.40 4.46 2.46 5.13 3.25 4.16 2.59 3.35 4.82 4.54 3.88 4.43 3.46 1.34 6.97 4.54 3.95 4.49 3.65 4.05 4.98 4.60 2.83 4.91 4.25 3.71 4.24 5.98 3.26 3.40 4.14 5.21 4.16 3.50 5.61 3.51 5. Islamic Rep.59 3.80 4.32 3.85 5.01 3.69 4.57 3.01 3.56 4.70 4.44 4.09 4.98 3.61 4.49 4.08 2.1.75 3.95 3.77 2.82 4.23 3.97 4.91 4.82 4.88 4.55 4.23 4.76 4.55 4.71 4.38 3.32 3.35 4.19 3.08 84 98 138 55 91 14 16 77 44 126 27 7 112 100 88 94 58 64 67 135 139 122 117 8 109 136 45 60 69 43 116 56 29 24 3 99 92 97 101 22 129 1 17 103 90 19 108 42 104 81 106 28 34 6 85 66 87 23 33 47 80 20 57 65 96 15 83 86 35 3.96 3.64 3.03 3.79 3.11 3.20 3.88 4.71 3.00 4.64 2.12 3.98 5.08 3.25 4.51 3.19 4.88 2.61 3.90 4.11 3.37 4.41 5.89 4.74 4.10 2. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran.53 2.09 3.42 4.71 4.56 4.17 4.87 3.70 4.57 3.45 4. Kuwait Kyrgyz Republic Latvia 5.81 4.31 3.64 4.43 4.58 4.96 4.74 4.64 4.17 3.99 4.75 3.94 3.96 4.55 5.13 63 123 87 128 47 11 32 25 28 108 49 43 85 136 94 61 96 10 58 91 81 51 99 6 122 95 44 38 69 45 105 113 42 33 5 89 137 133 88 17 72 22 60 16 31 70 93 125 101 100 134 3 62 7 92 84 135 20 19 118 83 13 112 21 46 78 64 65 52 4.39 4.49 4.55 5.63 2.19 2.01 4.20 4.99 3.78 3.56 3.12 3.24 3.57 4.28 3. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.18 4.22 3.42 4.65 3.08 2.62 3.72 6.65 3.00 3.06 5.33 3.23 5.94 2.12 4.16 3.41 4.31 5.13 4.29 3.60 3.32 3.46 3.62 4.75 4.60 3.32 1.21 3.00 3.61 4.29 2.88 3.35 3.57 4.53 3.32 4.52 2.36 3. Labor market efficiency 8.01 3.09 5.92 5.66 5.92 3.68 4.45 2.40 4.47 4.52 3.92 5.90 5.66 3.00 3.25 4.66 5.00 4.62 5.16 4.83 4.02 4.78 3.01 3.58 3.84 3.36 3. Market size Rank Score 103 50 64 24 116 18 33 76 98 47 133 27 124 86 93 102 10 118 63 119 137 96 91 14 139 120 46 2 32 82 94 70 104 42 52 71 61 26 87 101 79 56 7 138 107 5 83 39 75 131 90 28 49 122 4 15 20 54 53 9 99 3 84 55 74 11 59 115 95 2.81 5.81 4.94 4.75 4.02 3.91 5.17 2.23 3.80 4.07 3.38 4.63 4.53 3.06 3.16 5.35 3.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .22 3.09 3.84 4.25 5.10 5.62 4.94 4.84 3.20 3.71 2.81 4.44 4.89 3.47 4.50 3.28 4.85 2.76 4.94 4.33 3.08 3.91 3.18 3.46 3.20 4.63 4.88 3.81 4.96 4.06 4.09 3.90 4. Financial market development 9.61 5.44 3.07 3.46 4.56 3.79 5.59 2.11 5.40 3.71 5.1: The Global Competitiveness Index 2010–2011 20 Table 7: The Global Competitiveness Index: Efficiency enhancers PILLARS EFFICIENCY ENHANCERS Country/Economy Albania Algeria Angola 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 Cape Verde 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.09 3.36 3.85 4.86 5.75 4.06 4.94 6.17 4.27 5.26 4.69 3.44 2.96 10.25 4.18 3.94 4.28 4.87 2.36 3.27 2.09 4.23 3.58 5.13 4.74 2.38 5.86 3.57 3.71 4.00 3.24 3.36 2.80 6.08 3.35 3.76 2.34 3.52 5.75 4.15 3.86 4.06 5.98 4.48 4.05 3.20 3.58 100 135 134 126 110 3 23 71 20 66 38 34 95 118 113 47 50 55 91 128 139 92 123 12 104 137 41 57 79 85 112 88 15 48 18 99 115 82 78 45 121 4 16 76 108 36 60 93 44 102 67 1 68 122 17 62 120 98 14 101 46 39 54 117 27 83 63 111 86 3.07 3.98 2.96 4.47 4.41 3.04 (Cont’d.47 4.25 2.97 4.87 3.10 3.93 3.21 5.36 3.33 4.15 3.59 2.14 3.64 4.17 5.59 3.74 3.67 3.93 3.99 4.04 5.00 5.62 4.88 2.41 5.92 4.65 5.50 3.38 3.52 3.29 3.16 4.27 5.80 3.85 4.74 5.98 4.85 4.59 4.62 4.11 3.27 4.46 4.51 5.02 5.62 4.42 3.55 3.29 3.59 4.47 3.60 4.16 4.62 2. Higher education and training 6.71 3.25 4.90 4.19 4.78 4.44 4.37 6.03 2.14 2.58 2.48 3.35 4.12 4.17 4.85 4.85 3.13 3.91 4.85 3.20 3.81 63 126 133 135 113 18 19 93 9 102 55 16 100 136 127 58 114 78 82 120 137 81 119 11 111 138 28 43 103 48 118 110 20 35 13 109 132 90 53 29 92 24 32 66 64 21 75 94 61 95 83 2 67 30 71 49 98 14 37 68 80 17 46 86 88 38 54 121 72 4. Goods market efficiency 7.98 72 106 130 73 108 23 18 70 27 126 22 13 122 127 85 99 54 49 48 124 137 115 118 16 79 138 45 78 63 57 102 39 38 32 6 66 107 87 81 24 133 15 12 97 98 10 117 46 67 103 94 5 37 4 86 91 96 21 26 43 60 28 62 82 101 19 77 119 51 3.16 3.28 4.53 5.33 3.49 5.72 5.49 4.13 3.65 3.64 3. Technological readiness Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 89 107 130 86 106 10 19 75 33 97 52 17 120 125 100 85 44 67 65 133 139 103 121 6 129 137 35 29 60 58 116 76 36 28 9 92 115 82 87 34 118 14 15 105 94 13 96 59 81 112 104 2 41 31 38 51 90 25 23 45 80 11 73 71 79 22 68 111 63 3.17 3.48 1.24 4.42 4.27 4.22 3.23 3.60 5.31 2.71 3.50 3.59 3.93 4.51 4.47 4.46 2.92 4.80 3.42 3.65 4.38 4.32 3.74 4.87 4.15 5.02 4.83 4.18 4.18 4.13 4.92 4.67 2.96 4.25 3.13 3.77 4.82 2.06 4.14 5.51 4.58 4.

64 4.26 4.66 4.85 3.95 1.58 4.37 2.68 4.50 2.24 4.22 2.50 5.14 5.68 4.82 3.97 3.21 4.25 2.11 4.34 5.58 3.13 4.92 2.16 3.31 2.66 4.45 4.04 2.20 4.46 2.78 3.33 4.92 3.79 4.55 2.21 3.87 3.58 3.74 4.25 3.73 4.01 4.78 4.76 3.55 3.24 4.97 4.58 4.92 3.20 5.22 4.70 2.63 3.97 4.48 4.05 3.80 3.98 4.39 4.38 4.73 3.87 4.31 2.07 4.54 4.07 4.97 2.84 5.15 4.84 4.95 4.35 4.00 3.18 3.70 2.47 3.19 4.03 4.94 4.43 2.11 3.74 3.68 3.56 3.59 5.62 4.00 4.30 5.19 5.74 2.85 4.93 4.31 5.10 3.26 5.66 4.56 3.17 3.19 4.35 4.26 4.98 4.38 5.22 3.80 4.28 4.36 4.92 3.33 3.71 5.72 2.84 4.51 2.33 2.82 5.43 4.80 3.96 4.56 4.75 4.63 3.68 4.29 4.51 6.11 4.95 5.65 4.28 4.24 2.28 3.46 6.80 2.41 5.94 4.53 3.95 4.82 4.28 4.PILLARS EFFICIENCY ENHANCERS Country/Economy Lebanon Lesotho Libya Lithuania Luxembourg Macedonia.10 3.14 3.49 4.29 3.38 4.80 6.82 5.55 3.99 5.25 4.01 5.76 4.18 3.93 4.04 2.56 3.04 2.23 3.69 3.48 4.34 3.57 4.52 103 86 139 48 37 71 67 50 35 121 98 114 59 120 68 29 39 130 116 55 126 23 12 110 74 15 36 131 106 124 56 111 53 117 41 14 76 57 9 66 109 102 1 40 80 97 115 104 90 18 2 132 34 73 77 24 75 82 79 127 27 54 26 8 4 119 138 30 107 129 4.30 3.67 4.62 5.02 5.91 4.79 2.39 2.72 5.92 4.83 3.41 1.26 4.11 4.58 4.00 4.63 5.97 2.87 2.47 4.49 2.68 3.76 4.64 3.07 3.93 5.47 3.67 4.49 5.81 3.44 3.70 3.01 3.92 5.67 3. Labor market efficiency 8.30 3.49 4.57 4.46 3.83 4.62 3.41 4.68 4.90 5.63 5.34 3.81 4.04 5.01 4.59 3.49 3.56 2.10 3.45 3.83 3.17 3.75 5.25 3.76 4.98 4.91 4.63 5.32 4.12 5.54 3.60 2.18 4.41 2.) 21 .09 4.76 3.41 5.51 5.99 4.66 4.84 1.17 5.78 4.79 3.18 4.18 4.39 4.19 4.17 2.23 4.32 4.58 5.37 4.69 5.68 3.54 4.51 3.66 3.82 3.89 5.16 3.51 4.21 5.54 2.97 3.28 5.98 3.91 3.42 3.86 4.06 5.59 3.70 1.04 4.14 5.09 2.94 4.55 3.13 2.78 4.34 3.08 3.56 2.85 2.76 4.80 4.64 5.92 5.71 4.02 4.40 2.45 3.27 4.15 4.27 3.61 4.74 4.82 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 5.01 48 124 95 25 41 72 128 120 49 132 37 137 70 79 78 89 52 102 134 111 131 10 13 113 118 12 63 123 82 119 76 73 26 39 38 32 54 50 121 51 110 74 5 53 21 75 31 62 125 2 4 107 11 105 133 59 130 61 30 71 127 46 36 18 9 40 68 93 114 115 4.80 3.49 3. Goods market efficiency 7.24 2.48 4.20 4.75 5.29 5.64 3.35 3.09 4.19 3.01 3.31 4.41 2.65 4.31 2.94 4.55 2.36 3.63 3.38 4.95 3.21 2.95 4.32 5.17 2.93 2.94 4.00 3.84 3.76 2.85 2.97 4.05 4. Higher education and training 6.94 3.81 5.39 4.10 4.07 42 84 134 73 3 57 107 85 27 124 36 131 31 96 104 99 44 77 112 56 122 8 7 116 87 23 25 91 50 101 69 97 45 52 34 12 76 123 70 10 79 125 1 51 39 40 62 47 106 5 4 115 15 128 108 41 105 89 33 59 117 129 6 22 26 74 139 60 65 130 4.02 5.60 4.99 4.55 3.67 3.09 3.59 2.86 3.26 3.03 4.59 4.24 3.10 4.37 4.09 3.59 4.47 4.10 4.12 5.09 3.92 4.51 3.71 4.93 4.88 3.52 3.49 3. Technological readiness Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 70 132 127 49 20 83 124 110 24 135 47 138 66 61 99 109 64 88 128 91 131 8 18 122 84 12 48 95 62 119 56 78 30 43 40 26 54 53 98 27 108 93 1 37 46 42 32 69 126 5 4 117 16 123 114 39 136 77 50 55 102 72 21 7 3 74 113 57 101 134 4.60 4.60 3.62 4.92 4.63 3.16 2.73 3.93 3.43 4.52 4.30 4. Financial market development 9.87 4.80 2.91 4.10 3.64 3.51 53 114 130 89 6 87 131 64 7 133 11 138 29 96 103 129 28 74 116 24 106 26 10 109 84 5 30 73 21 97 42 75 32 59 40 19 81 125 69 22 107 94 2 37 77 9 56 52 80 13 8 124 35 127 90 51 136 43 58 61 72 119 33 25 31 70 132 65 49 105 4.61 3.24 3.66 4.13 3.09 3.46 3.79 2.60 2.83 5.88 4.1: The Global Competitiveness Index 2010–2011 Table 7: The Global Competitiveness Index: Efficiency enhancers (cont’d.85 4.58 2.83 3.20 3.54 3.15 3. Market size Rank Score 80 135 69 77 89 106 110 127 29 117 125 130 112 12 121 123 129 57 113 114 100 19 60 109 30 44 73 31 85 97 48 37 21 45 62 66 43 8 128 22 105 72 41 58 78 25 13 68 132 34 36 65 17 126 81 23 136 108 67 16 92 38 51 6 1 88 40 35 111 134 3.34 4.58 5.35 3.61 4.28 4.92 3.01 4.45 4.66 4.89 4.68 2.31 4.86 3.86 3.56 3.47 3.53 4.23 4.31 3.89 3.51 3.98 3.64 92 129 114 33 2 64 123 121 40 128 29 132 61 71 89 105 44 75 113 88 134 3 25 125 104 9 59 109 41 116 74 95 47 31 52 36 58 69 100 42 93 80 11 34 35 76 30 84 136 1 7 111 20 120 131 68 139 53 55 56 112 83 14 8 17 50 90 65 110 135 3.81 4.08 3.12 3.80 4.77 4. 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 Rwanda Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Swaziland Sweden Switzerland Syria Taiwan.22 2.17 3.62 2.06 3.15 5.21 3.41 4.68 4.61 4.43 4.36 4.01 5.74 2.27 4.08 4.04 2.48 The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 10.08 3.81 5.59 4.83 5.64 1.08 3.34 2.80 4.57 2.44 3.32 4.64 4.45 4.78 3.75 4.19 2.77 4.82 2.37 4.95 4.54 2.20 4.15 2.99 5.41 3.80 5.68 4.37 5.04 2.11 3.35 4.42 4.99 3.00 4.21 4.53 5.80 5.84 4.63 3.54 5.57 4.18 3.22 2.00 3.56 4.57 4.23 3.89 4.64 4.73 3.45 4.57 5.99 3.

55 .52 3.52 3.35 2.21 2.93 3.03 3.38 3.08 2.80 3.95 3. Rep.42 3.99 4.71 4.05 4.73 2.20 4.27 5.09 3.71 2.85 4.46 2.24 4.91 3.36 4.47 3.22 3.77 3.05 2.56 4.91 3.37 4.88 2. Business sophistication Rank Score Rank Score 104 108 139 71 114 22 13 66 55 109 52 15 81 125 120 93 38 72 95 127 138 106 105 14 128 130 44 31 61 33 110 85 36 30 9 99 124 68 96 45 117 6 16 64 121 5 100 73 62 103 98 24 51 20 42 37 82 21 11 32 86 1 65 102 58 18 60 137 77 3.11 2.73 3.16 3.41 3.98 3.40 3.33 4.69 4.69 4.03 3.30 4.30 4.06 3.34 4.32 5.60 3.15 3.48 2.36 3.36 3.43 4.08 4.29 3.00 3.50 3.01 3.50 3.38 3.98 4.01 3.10 2.24 The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 12.70 3.45 3.61 3.27 3.74 4.98 2.53 2.46 4.04 3.61 3.33 4.55 4.73 3.93 2.23 3.06 4.25 3.56 4.93 5.75 2.79 2.76 3.28 3.91 3.79 3.48 3.65 5.14 3.85 3.33 5.84 3.53 2.13 3.50 3.29 4.98 3.49 2.67 3.28 2.54 3.07 4.50 3.33 4.63 3.91 3.87 2.29 5.52 2.55 3.81 3.97 2.) Country/Economy Lebanon Lesotho Libya Lithuania Luxembourg Macedonia.67 5.51 3.76 3.05 3.45 5.41 3.34 2. Islamic Rep.73 4.74 3.72 3.14 3.46 3.23 2.61 3.64 3.07 3.10 4.17 4.08 3.76 5.76 3.37 4.10 2.10 3.76 3.16 4.96 2.60 3. Innovation Rank Score 121 107 133 73 116 21 20 61 59 119 53 15 60 127 120 74 42 69 92 90 134 108 95 11 117 115 43 26 65 35 109 70 38 27 10 118 130 83 126 37 105 3 19 62 125 8 99 79 89 114 106 29 41 17 39 36 66 22 6 50 93 4 68 101 56 12 76 139 77 2.29 5.72 2.38 3.75 3.92 3.88 5.15 5.65 2.34 2.85 3.66 3.13 3.67 5.07 5.08 4. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran.65 2.91 4.87 4.64 3.21 2.17 5.89 3.98 3.90 4.24 3.97 2.28 2.81 3.63 4.50 3.21 4.89 2.01 2.12 3.42 4.31 5.48 3.72 3.81 3.24 3.1: The Global Competitiveness Index 2010–2011 22 Table 8: The Global Competitiveness Index: Innovation and sophistication factors INNOVATION AND SOPHISTICATION FACTORS Country/Economy Albania Algeria Angola 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 Cape Verde 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.86 4.32 4.53 3.37 87 108 139 75 109 29 6 72 55 105 59 11 99 117 115 104 31 77 95 137 138 106 116 16 131 133 43 41 61 32 112 92 33 34 7 82 107 63 68 56 123 10 12 65 111 3 97 74 54 86 85 17 69 28 44 37 91 20 26 23 81 1 66 102 62 24 58 130 80 3.1.00 4.41 2.48 4.73 INNOVATION AND SOPHISTICATION FACTORS 12.09 3.67 3.62 3.78 2.00 3.30 2.69 3.05 2.00 2.85 4.66 3.84 2.51 5.25 5.55 3.13 3.77 5.36 3.21 3.87 3.59 3.83 3.47 3.90 5.02 (Cont’d.91 2.44 4.84 5.54 4.81 3.17 3.19 5.41 4.89 3.79 5.12 4.61 3.33 2.56 4. 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 Rwanda Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Swaziland Sweden Switzerland Syria Taiwan.29 3.63 2.62 3.10 2.36 3.59 4.97 5.53 3.04 2.03 2.12 3.08 3.79 3.18 3.07 3.83 4.49 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 11.31 2.03 3.79 4.82 3.75 2.72 5.65 2.27 4.06 3.35 2.96 2.22 2.53 3.16 3.27 3.38 3.68 2.04 2.24 3.11 3.32 4.24 3.91 4.88 3.91 3.71 3.34 4.95 3.47 5.32 4.29 2.24 4.75 3.79 4.93 3.90 2.60 2.50 3.14 2.11 4.15 3.20 2.61 3.90 4.90 3.90 4.00 2.49 5.19 2.42 4.11 3.88 2.43 2.20 3.20 2.83 3.54 4.71 3.87 4. Business sophistication Rank Score Rank Score 74 116 135 48 19 97 113 84 25 112 46 134 59 69 123 119 56 79 101 92 133 8 28 126 83 17 47 76 54 132 89 75 50 39 29 23 91 80 87 26 67 107 10 63 35 43 41 40 131 3 2 115 7 118 94 49 136 78 34 57 111 88 27 12 4 70 129 53 90 122 3.34 4.84 4.93 2.50 2.77 4.51 3.52 2.40 2.89 2.48 3.43 2.46 3.31 3.06 3. Innovation Rank Score 112 113 131 51 16 97 102 72 24 91 48 132 82 78 129 100 45 81 84 96 137 13 25 124 98 18 47 75 64 138 110 111 54 32 33 23 87 57 71 28 55 88 9 85 34 44 46 40 135 5 2 128 7 103 86 52 136 94 31 67 104 63 30 14 1 58 123 49 80 122 2.45 5.62 2.87 2.56 3.49 3.89 2.94 4.56 4.81 3.95 3.01 2.17 2.30 4.16 3.92 4.16 3.80 3.97 3.88 2.80 2.92 3.04 4.81 3.40 3.17 3.59 3.24 2.38 4.57 2.46 3.59 3.25 3.94 3.04 5.78 3.90 5.81 4.92 3.49 3.34 3.50 3.58 2.98 3.47 4.13 3. Kuwait Kyrgyz Republic Latvia PILLARS 11.55 5.26 3.89 53 114 136 49 18 96 124 89 25 128 40 134 47 67 113 127 70 78 110 88 132 5 30 118 76 14 45 79 46 122 71 60 50 51 27 21 93 101 94 19 84 125 15 57 36 38 35 39 121 2 4 103 13 126 98 48 135 73 42 52 120 100 22 9 8 83 129 64 90 119 4.47 3.96 4.36 2.58 3.95 2.23 2.31 3.21 2.98 3.63 4.92 3.57 3.98 5.48 3.86 3.65 3.19 4.63 3.96 3.93 3.96 3.22 5.46 2.83 4.04 5.79 3.57 2.01 3.11 3.55 4.98 4.41 3.53 4.48 3.68 2.96 5.50 4.14 3.64 5.40 3.67 5.11 3. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.74 4.11 2.20 4.30 3.30 2.42 2.

and 12th. just behind the United States. while placed a bit further behind Sweden this year. with a measurable weakening of the assessment of auditing and reporting standards (down from 39th last year to 55th this year). Japan continues to enjoy a major competitive edge in the areas of business sophistication and innovation. 6th. with particularly good marks for its transport and telephony and electricity infrastructure. and is ranked 1st and 4th.” this pays off with a rate of patenting per 23 . Dutch businesses are highly sophisticated (ranked 5th) and are among the most aggressive internationally in absorbing new technologies for productivity enhancements (ranked 3rd for their technological readiness). The country’s overall competitive performance. narrow interest rate spreads (especially in Finland).1: The Global Competitiveness Index 2010–2011 On the other hand. maintaining its performance compared with last year. Canada benefits from highly efficient markets (with goods. Canada has dropped one place this year to 10th. Germany has moved up two places to 5th position. Similar to Sweden. the positive result of a strong focus on education over recent decades. A marked difference among the Nordic countries relates to labor market flexibility. at 7th and 9th positions. dropping from 9th two years ago to 31st overall this year in that pillar. continues to be dragged down by its macroeconomic weaknesses. 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. Germany’s labor market remains rigid (126th for the labor market flexibility subpillar).There is also increasing concern related to the functioning of private institutions. and excellent infrastructure (9th). Indeed. These attributes allow Germany to benefit greatly from its significant market size (5th). this has been exacerbated by significant stimulus spending. while some other countries in the top 10 have weakened (its score since last year remains unchanged). Finland and Denmark. A lack of macroeconomic stability continues to be the United States’ greatest area of weakness (ranked 87th). In this context it is clear that mapping out a clear exit strategy will be an important step in reinforcing the country’s competitiveness going into the future. have now become concerns for many other countries. They also continue to occupy top positions in the higher education and training pillar. Germany is ranked 2nd for the quality of its infrastructure. Japan’s rise in the rankings can in large part be traced to the fact that its main areas of weakness. in terms of innovation “output. there are some weaknesses in particular areas that have deepened since our last assessment. with a stable performance and rounding out the top 10. Their macroeconomic environments are healthy. the country has been successful in nurturing its The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. they have among the best-functioning and most transparent institutions in the world.capita (279. Germany has very sophisticated businesses. improving on a relative basis compared with last year. The public does not demonstrate strong trust of politicians (54th). with government budgets approximately in balance through 2009. or second to last on this indicator). Its goods market is efficient (21st). with repeated fiscal deficits leading to burgeoning levels of public indebtedness.6 percent of GDP in 2009. where a lack of flexibility in wage determination and the high cost of firing provide a hindrance to job creation (although this has admittedly helped to keep unemployment down during the crisis). respectively. The Netherlands moves up two positions to 8th place. as in past years. in these two pillars. well-functioning and transparent institutions (11th). linked to macroeconomic instability and weaknesses in the banking sector. firing. continue to be ranked among the most competitive economies in the world. and financial markets ranked 11th. with intense local competition (2nd) and effective antitrust policy. and excellent country credit ratings. Denmark (ranked 5th in this pillar) continues to distinguish itself as having one of the most efficient labor markets internationally. The evaluation of institutions has continued to decline. The Netherlands is also characterized by a comparatively stable macroeconomic environment. with more flexibility in setting wages. as well as corporate ethics (down from 22nd to 30th). however. are highly supportive of business activity. ranked 3rd. for example. which have led to the buildup of one of the highest public debt levels in the world (217. labor. The macroeconomic environment has improved compared with other advanced economies (up from 30th to 23rd in this pillar). just behind Japan and Sweden. Measures of financial market development have also continued to decline. and the business community remains concerned about the government’s ability to maintain arms-length relationships with the private sector (55th) and considers that the government spends its resources relatively wastefully (68th).1 per million inhabitants) that is 2nd worldwide. German businesses are also aggressive in adopting technologies for productivity enhancements (10th). corresponding to a 137th rank. Prior to the crisis. falling from 34th to 40th this year. and therefore hiring workers than in the other Nordics and in most European countries more generally. the United States had been building up large macroeconomic imbalances. In addition. The country’s excellent educational system (ranked 8th and 10th for the two related pillars) and efficient factor markets. The country’s competitiveness would be further enhanced by introducing more flexibility into the labor market (ranked 80th on this subpillar). especially goods markets (ranked 8th). Company spending on R&D remains high and the country benefits from the availability of many scientists and engineers buttressing a strong capacity for innovation. with high budget deficits over several years (ranked 134th). On the other hand. Japan moves up two places to 6th overall. respectively. respectively).

The health of the workforce and the quality and quantity of education provision are other clear strengths (ranked 16th for health and primary education and 17th for higher education and training). the United Kingdom (12th). While somewhat improved since last year. are important attributes that have helped to boost the country’s growth potential. ranking 33rd and 36th. with greater R&D spending and producing higher on the value chain. Poland moves up by seven positions to 39th. as well as well-functioning goods and labor markets. and Luxembourg (20th). standing in contrast to the rigidity of many other European countries. In addition. Austria (18th). with deficit spending that must be reined in to provide a more sustainable economic footing going into the future. Norway (14th). These attributes have fostered a sophisticated and innovative business culture (ranked 20th for business sophistication and 22nd for innovation). Ireland declines in the rankings for the second year in a row. ranked a low 105th because of the strict rules on firing and hiring as well as the poor labor-employer relations in the country. would enhance Canada’s competitiveness and productive potential going into the future. and. These include the country’s topnotch educational system at all levels (4th and 6th in the health and primary education and higher education and training pillars. The country continues to benefit from a number of strengths. respectively. the macroeconomic environment remains the country’s greatest competitive weakness. Finland (7th). Iceland also benefits from a number of clear competitive strengths in moving to a more sustainable economic situation. Germany (5th). This significant improvement for a second year in a row reflects the country’s relatively stronger resistance to the economic crisis as a result of more pru- The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . ranked 14th and 20th. The country continues to have sophisticated and innovative businesses that are highly adept at harnessing the latest technologies for productivity improvements and operating in a very large market (ranked 6th for market size). which is particularly commendable given that the region has been strongly affected by the economic crisis. European Commissioner Joaquín Almunia explores the differences in competitiveness performance across the EU27 members in Box 3. France (15th). buttressed by a highly developed financial market (ranked 16th). the Netherlands (8th). France is ranked 15th. the United Kingdom moves up one spot to 12th place this year. with a stable performance. The country benefits from clear strengths. respectively) coupled with an innovative business sector (17th) that is highly adept at adopting new technologies for productivity enhancements (4th). and twelve are among the top 20. In addition. respectively. the sophistication of its business culture (12th in the business sophistication pillar) and its leadership in the area of innovation (19th in the innovation pillar). After already falling six places last year. Denmark (9th). These elements have provided the basis for a business culture that is aggressive in adopting new technologies for productivity enhancements (ranked 12th for technological readiness). Europe and Central Asia The global economic crisis has hit a number of European countries particularly hard. labor. Estonia’s lead reflects solid institutions and improving macroeconomic stability. The country’s infrastructure is among the best in the world (ranked 4th). Belgium (19th). six European countries are among the top 10. On the other hand. Estonia and the Czech Republic remain the best performers within Eastern Europe. Yet despite these concerns. concerns about the sustainability of sovereign debt. the countries’ competitive strengths are based on a number of common features. Business activity is further supported by an extremely flexible labor market (7th) and well-developed infrastructure (12th). and financial services. They rely on excellent education and highly efficient and well-developed markets for goods. After having fallen four positions over the past two years. to 29th position this year. in some cases. overall Europe continues to feature prominently among the most competitive regions in the world. Despite the fallout of the economic crisis. As in previous years.1. Sweden (2nd). such as the efficiency of its labor market (8th).1: The Global Competitiveness Index 2010–2011 24 human resources: it is ranked 6th for health and primary education and 8th for higher education and training. with outstanding transport links. As described above. mainly because of a continuing deterioration in the macroeconomic environment (from 119th to 138th) and weaker financial markets (down from 20th two years ago to 85th last year and 122nd this year). leading to rising unemployment. The largest country among the new European Union (EU) members. the decline in rank is attributable to a weakening macroeconomic environment as well as continuing concerns related to financial markets (with a precipitous fall from 7th two years ago to 45th last year and 98th position this year in this pillar). Improving the sophistication and innovative potential of the private sector. plunging demand. These are all characteristics that are important for spurring productivity enhancements. providing the economy with a healthy and educated workforce. Iceland drops a further five places to 31st position. and communications. energy infrastructure. moving up one place since last year and demonstrating a number of competitive strengths. including excellent health and primary education (ranked 10th) and strong higher education and training (23rd). France’s competitiveness would be enhanced by injecting more flexibility into its labor market. On the other hand. However. as well as a strong commitment to advancing technological readiness. as follows: Switzerland (1st). particularly in the case of Estonia.

A strong emphasis is also put on upgrading skills and promoting innovation. But the country is quickly catching up on infrastructure and market efficiency and will increasingly benefit from its expanding market size.33 4. and Luxembourg) top the list and are all in the top 20 most competitive economies in the world.42 4.51 4.1. But the sources of their strength vary somewhat.37 5. Germany.34 4. nonetheless. a strong capacity for innovation. China shares with mid-range European countries the relative handicap of rigid institutions and very low innovation. sustainable. The Benelux and the Scandinavian countries compensate for the lack of market size with excellent skill sets. More importantly.25 4. The table shows the global competitiveness ranking of EU Member States. investing in pan-European energy and transport infrastructure. Spain has also made a notable effort of investment in infrastructure. and the Benelux (Belgium.49 4. the need for energy efficiency and security. adding to a particularly poor institutional setup and low efficiency of markets. Also. Member States from Eastern Europe have bet more heavily on open and flexible markets for both goods and labor. Europe cannot afford to lose out (Cont’d. Europe as a group lags in all three.1: The Global Competitiveness Index 2010–2011 Box 3: How competitive is the European Union? JOAQUÍN ALMUNIA. and Spain—were facing unsustainable public deficits that endangered their growth prospects to the point of potential insolvency. But Member States within this middle group also have different strengths. except for a small subset of countries. sound institutions.32 5. Portugal. The strategy consists of consolidating public finances while promoting economic integration. Most of the other EU Members States are among the top 50 performers globally. Netherlands. Vice-President and Commissioner for Competition Policy. It did. Europe stands to gain a lot from greater market integration because this would increase the size of markets easily accessible to businesses. These worries seem exaggerated because European economies are generally faring well in relative terms.74 4. a confidence crisis triggered by the severe financial difficulties of the Greek government put the financial and monetary stability of the entire euro zone into question. Although the differences in situation seem to argue against a one-size-fits-all strategy. The market appreciation was not accurate. It is notable that the group of countries in the middle ground distinguish themselves from the front-runners particularly in that they have substantially less innovation and a much poorer institutional environment. Italy. There is still scope for increasing structural reforms to increase market flexibility. but there are five Member States well below this mark. France.38 4. while Italy and Spain have relied instead on the economies of scale their markets can provide. Even as the Europe 2020 strategy was being adopted.61 4.16 4.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . European Commission The economic performance of the European Union (EU) has been the subject of much political unease in past few years.25 5.05 4.13 5.39 5.13 3. On the other hand. the Scandinavian countries. Greece shows a dismal performance in 2010 due to the severe deterioration of its macroeconomic environment. and developing further information and communication technologies. given that the situation of Greece was particular. As infrastructure and market efficiency levels converge among the main global players. and. and inclusive growth. it is clear that Europe as a whole faces common challenges. Market size.09 5. The public perception was that a few southern countries—notably Greece. But many will agree that Europe is not living up to its full potential and that the current crisis is imposing unprecedented stress on the most traditional parts of the economy.50 4. particularly in the case of the Scandinavian countries. and strong innovation are at the core of the US competitive advantage.57 4. their performance with respect to macroeconomic stability and their Table 1: Rankings of the EU27 in the Global Competitiveness Index 2010–2011 Economy Sweden Germany Finland Netherlands Denmark United Kingdom France Austria Belgium Luxembourg Ireland Estonia Czech Republic Poland Cyprus Spain Slovenia Portugal Lithuania Italy Malta Hungary Slovak Republic Romania Latvia Bulgaria Greece Rank Score 2 5 7 8 9 12 15 18 19 20 29 33 36 39 40 42 45 46 47 48 50 52 60 67 70 71 83 5.33 5.37 4. remind us of the fact that the European Union is not a homogeneous area and that Member States vary in the nature and degree of their competitive advantage.56 5. The European Union has proposed a new strategy—Europe 2020—for smart. flexible labor markets.07 5. There has been a concern that Europe is not sufficiently equipped to face new global challenges such as the rise of large competitive economies.14 4.99 25 population’s basic skills is similar.38 4. Overall. Europe does not provide an environment that is sufficiently conducive to innovation. The Global Competitiveness Index provides a useful tool for disaggregating these differences to better understand the strengths and weaknesses of individual EU members and of Europe as a whole. the United Kingdom. or the rapid pace of technological innovation.

and supporting innovation. and level of skills. Figure 1: Comparative performance of selected EU countries Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness 26 Financial market development Goods market efficiency Labor market efficiency Spain Innovation Italy Poland Institutions 7 6 Czech Republic Infrastructure 5 Business sophistication Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency France Germany United Kingdom Sweden The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . encouraging investment in better skills. The priorities of the Europe 2020 strategy should contribute to European competitiveness by eliminating further barriers to the European Single Market.1: The Global Competitiveness Index 2010–2011 Box 3: How competitive is the European Union? (cont’d. they must also improve their market efficiency.1. technological readiness.) on the potential of scale economies and innovation. But the data highlight the fact that many countries still need to take measures to improve basic competitive requirements. such as their institutional setting and infrastructure levels. It will take the combined effort of all European and national authorities to improve the economic potential of the European Union so that it remains a prominent player in the 21st century.

The financial sector is well developed (32nd). and good higher education and training (31st). The country drops by seven positions to 89th (or by five positions in a constant sample). in particular its high innovation potential and its solid performance in terms of higher education and training. the business sector remains very critical of the efficiency of the government (103rd). The country continues to do well in more complex areas measured by the GCI. and intensified collaboration between universities and the private sector would help the country to move toward a more future-oriented development path. The labor market remains highly rigid. should address as a priority the country’s weak institutional framework (134th) and the highly inefficient markets for goods and services (129th). which is characterized by intense local competition (15th) and reasonably sophisticated business practices (52nd). After a significant slide in the rankings last year. Italy also benefits from its large market size—the 9th largest in the world—which allows for significant economies of scale. flexible and efficient labor markets. which stifles competition and prevents entrepreneurship from flourishing. which lags behind international standards by a significant margin. Turkey benefits from its large market. Stronger clusters. On a more positive note. the efficiency of goods markets. hindering job creation. As Poland transitions to the innovation-driven stage of development. both domestic and foreign. Turkey remains stable at 61st position. it will have to focus more strongly on developing capacities in innovation and business sophistication. A particular challenge for Russia is related to its very weak institutions. The new government announced an ambitious reform agenda that. according to the GCI. The decline is in large part attributable to an increasingly negative assessment of the labor and financial markets as well as the level of sophistication of the country’s businesses. undue influence (114th). Ukraine’s performance over the past year reflects the daunting challenges the country has faced during the global economic crisis. The country displays fairly even performance across all 12 pillars of competitiveness. Poland was the only European economy to register positive growth in 2009. Ranked 118th in this area. as well as technological readiness. particularly roads and air transport infrastructure. Spain’s competitiveness performance continues to be boosted by the large market (13th) available to its national companies. Financial markets are not sufficiently developed to provide needed finance for business development (ranked 101st). and reinforcing the efficiency and transparency of public institutions (90th). And although its institutional framework has improved significantly this year. A well-educated population. In order to further enhance its competitiveness. and weak corporate governance standards (119th). Italy’s overall competitiveness performance continues to be held back by some critical structural weaknesses in the economy. although ports and the electricity supply require upgrading. still by far the lowest-ranked G-7 member country. reflecting the fact that the deterioration in macroeconomic stability has been somewhat balanced by improvements in other areas. However. A particularly severe weakening of its already poor macroeconomic stability contributed to this slide. the country’s recent accession to the World Trade Organization (WTO) should contribute to intensifying competition in the country. The country also benefits from reasonably developed infrastructure (56th). ranked 108th. is stifled by inefficient anti-monopoly policies as well as restrictions on trade and foreign ownership. the country suffers from insufficient protection of property rights (126th).mine investor confidence. the greatest area of concern remains the highly inflexible labor market (130th on the related subpillar). At the same time. These inefficiencies in goods markets reduce the country’s ability to take advantage of some of its strengths. Spain has dropped nine ranks this year to 42nd place. producing goods high on the value chain and with the world’s top business clusters (1st). Italy remains stable at 48th place this year. addressing the inefficiencies in the labor market (127th). which discourages job creation—a matter of particular concern considering the high and persistent unemployment in the country. where it is ranked 23rd. In this context. Other institutional weaknesses include high levels of corruption and organized crime and a perceived lack of independence within the judicial system. notably infrastructure. and a large market size continue to set a good base for the country’s future growth performance. The country nevertheless maintains the characteristics that made up its competitive strengths in the past years. Notable strengths include its large market size (21st) and high educational standards. Overall. and education. more R&D orientation of companies. which increase business costs and under- 27 . through reducing both trade barriers and domestic obstacles such The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. Maintaining its improved position will necessitate significant upgrading of transport infrastructure. particularly the sophistication of its businesses environment. Turkey must focus on improving its human resources base through better primary education and better healthcare (72nd). first-class infrastructure (14th).1: The Global Competitiveness Index 2010–2011 dent economic policies and its growing domestic market size. and the increased confidence in the banking sector (18th) has contributed to Poland’s very good performance over the past years. with Italy ranked 92nd overall for its institutional environment. In fact. Competition. Russia’s competitiveness continues to worsen in what is one of the major areas of concern. The quality of roads in Poland is particularly poor. ranked 118th for its labor market efficiency. strong technological adoption (30th in the technological readiness pillar). in particular its high enrollment rates (18th). health. as has a more negative assessment across many of the areas measured by the GCI. the Russian Federation maintains its 63rd position.

g. down to ranks 123rd and 115th. Australia now ranks 16th. The Republic of Korea falls by three places to 22nd position. but its performance in three of them holds the economy back from its full competitiveness potential: institutions. and the business community continues to express doubts as to the soundness of the banking sector (99th) and complains about the limited availability (98th) and high costs (82nd) of financial services. with a slight improvement in score. It possesses world-class transport infrastructure (12th). Given the recent turmoil it is perhaps not surprising that the evaluation of public institutions (e. up from 40th in 2008. Another major area of concern is the country’s inefficient labor market (125th). with its economy growing at a subdued rate in the second half of 2008 and contracting by 2. The quality of the institutional framework continues to improve although by small increments. one place lower than last year. the banking sector held out remarkably well. financial market development. and excellent public (14th) and private (11th) institutions. It offers one of the world’s most business friendly environments thanks to world-class institutions. Hong Kong appears in the top 10 of seven of the twelve GCI pillars. for the difficult relations between employers and workers. ranking no lower than 29th in any of the 12 pillars. which will make it more difficult to emerge from the crisis. including a reasonably well educated workforce that is adept at adopting new technologies for productivity enhancements. In total. respectively. The regional ranking closes with Tajikistan at 116th and the Kyrgyz Republic at 121st. and the ensuing sovereign debt crisis. with the highest rate of tertiary education enrollment in the world. Korea remains one of the world’s innovation powerhouses (12th in the innovation pillar). Business leaders express dismay at the difficulty of hiring and firing employees (115th). also reflected in the World Bank’s Rigidity of employment index (90th). What’s more. But Hong Kong’s economy has proved resilient and the IMF predicts a growth rate of about 5 percent for 2010. where the situation continues to deteriorate with respect to the flexibility.1: The Global Competitiveness Index 2010–2011 Part1 FINAL:Part1 9/24/10 9:52 AM Page 28 28 as ineffective anti-monopoly policies (126th). Hong Kong ranks behind only Singapore for government efficiency.1. Thanks to greater efficiency. The third area of relative weakness is its labor market (34th). corruption. a category where it used to place below the 50th mark. The results confirm the continued dynamism and high level of development of Australia’s financial market. and excellent higher education (15th). To progress even further. with high efficiency in both the goods market (18th) and the labor market (11th). and the dynamism of its financial sector. tops the infrastructure pillar. a healthy macroeconomic environment at a time when many industrialized countries are struggling in this area (6th. demonstrating the importance of recent efforts to increase the retirement age and increase labor market flexibility. The quality of transport. the World Bank estimates that the average severance pay for dismissing an employee is equivalent to 91 weeks worth of salary (placing Korea 114th on this indicator). energy. infrastructure. Down by one position. for the first time. One of the world’s major trade hubs. Greece has a number of strengths to build upon. undue influence) has also suffered since last year. Yet Korea continues to suffer from weaknesses that represent a major drag on its competitiveness. ahead only of Venezuela. Taiwan ranks among the top 20 economies in nine pillars. This leads companies to resort extensively to temporary employment. Greece falls 12 places in the rankings to 83rd (or by 10 positions in a constant sample) and is the lowestranked country within the European Union. with a score of 6. Given its many strengths.8 out of 7 in the pillar. and even slightly improves in each these dimensions. thus creating precarious working conditions and giving rise to tensions—Korea ranks 138th. . The remaining countries from the region place below Greece. The second area of concern is the country’s financial market (83rd). Hong Kong maintains its leadership in measures of financial market development and. Asia and the Pacific For the third consecutive year. improvements in these areas would make Taiwan an even more competitive economy. While credit access conditions deteriorated during the financial crisis. the major weaknesses of which exacerbated the effects of the crisis on Ukraine.7 percent in 2009. In particular. now standing at 35th position. up five positions). Priority should also be given to fostering the development of the financial sector (119th). with a stable performance overall. government efficiency. with Greece falling from 103rd to 123rd in the macroeconomic environment and also declining by 10 places to 93rd place in measures of financial market development. Taiwan has improved by 19 positions in the financial market development pillar to 35th. Hong Kong SAR retains its position at 11th overall. Australia remains a prime location for doing business. The country ranks a dismal 124th with respect to labor market flexibility.. Finally. The decline follows the well-publicized revision to the government’s fiscal spending numbers. Taiwan. market efficiency. where the assessment has considerably worsened over the past year. and telephony infrastructure is simply outstanding. Both financial market efficiency and trustworthiness have continued to deteriorate since the past edition of the Report. The country continues to do very well in most categories. the country will need to increase the sophistication of its businesses (29th) and strengthen its innovation capacity (21st). In working to overcome the present difficulties. Access to credit and financing has become more difficult. Finally. and labor market efficiency. China ranks 13th. ranked a low 82nd overall. the crisis hit Hong Kong quickly and strongly.

In 2009 alone. although the labor market is indeed quite efficient. This is the result of easier access to credit and financing through equity markets. the area with the most room for improvement remains infrastructure (37th). The two-rank improvement is almost entirely attributable to a better assessment of its financial market (up 24 places to 57th). India’s performance remains quite stable. Competitiveness would also be enhanced through improvements of the higher education system (64th). as well as infant mortality rates. the environment is extremely conducive to business. Brunei Darussalam continues to move up the rankings to 28th this year. Indonesia managed to maintain a relatively healthy macroeconomic environment (35th. And although primary enrollment is becoming universal. In addition. Specifically. Yet ample room for improvement remains in this and other areas. and innovation (39th). Indonesia has improved across all education-related indicators included in the GCI. thus increasing the gap with the other three. and high inflation. Notwithstanding the relatively small size of its domestic and export markets (60th). with high rates of communicable diseases and high infant mortality. with low ICT penetration. and the electricity supply (97th). The macroeconomic environment continues to be characterized by persistent budget deficits. the overall environment for doing business remains challenging. Up two positions to 27th place. namely institutions (36th). banks. but there remains considerable room for improvement in what constitutes an important area going forward. with its main strengths its large and growing market size. specifically ports (96th). the lack of trust of politicians (105th) and the perceived inefficiency of the government (91st). with low enrollment rates at the secondary and tertiary levels. Other areas for improvement are related to its human resources base. which has historically been a notable weak point. complaints about excessive regulation (108th). and venture capital. the quality of primary education remains fairly poor (98th). inflation in 2009 slowed down to 4. While the basic requirements are in place. ranking 3rd.continues to do well in the categories that matter the most given its stage of development. with India falling 10 places in this area this year. life expectancy in India is 10 years shorter than in Brazil and China. up six places). several indicators highlight the worrisome health situation: tuberculosis and malaria incidence. ports. ICT use remains low in international comparison (103rd). with a relatively stable performance since last year. business sophistication (44th). It is the only BRIC country to improve in the rankings this year. Goods markets are improving but continue to lack efficiency (78th) and financial markets could be further developed (55th). in particular roads and railroads (45th in both dimensions). although rates are surging. New Zealand (23rd) posts a performance largely in line with last year. falling two positions to 51st but with a small improvement in score. a lack of flexibility (96th) constitutes a major challenge. high public debt. Within this pillar. mainly driven by a healthier macroeconomic environment and improved education indictors. Mobile penetration has reached more than 50 percent. supported by efficient goods (7th) and labor markets (12th) and by one of the soundest banking systems in the world (2nd). India’s competitiveness is based on its large market size and good results in more complex areas including financial markets (17th). The country has a well-developed financial market (7th) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. and low transparency of policymaking (111th) are particularly worrisome. half the rate of 2008. China has reinforced its position within the top 30. Indonesia (44th) posts an impressive gain of 10 places. with improvements across many areas measured by the GCI. Indonesia kept its deficit under control. A third area of concern relates to technological readiness (91st). Malaysia drops two places to 26th position this year. Technological readiness is another area where China has traditionally underperformed (78th).1: The Global Competitiveness Index 2010–2011 Korea has not improved its institutional framework. and savings rose to 33 percent of GDP. The country possesses some of the best-functioning institutions in the world. Higher education also remains a weak point. Additionally. losing further ground at 62nd. and about a quarter of the population uses the Internet on a regular basis. macroeconomic stability. Labor markets are also in need of greater efficiency and flexibility (92nd).8 percent. While most other countries saw their budget deficits surge. India has failed to improve significantly on any of the basic drivers of its competitiveness.24 China’s performance remains stable in most areas measured with the Index compared with last year. especially with respect to quality of roads. On the other hand. Moreover. It ranks 104th in the health and primary education pillar. China has made small strides in the quality of higher education and training (60th). Despite losing three positions and a small worsening in its score. Overall. roads (84th). Brunei 29 . Despite rapid uptake in recent years. China added over 100 million mobile telephone subscriptions and some 86 million new Internet users. The economy is categorized as one in transition from stage 1 to stage 2 because of its economy’s dependency on oil and gas (accounting for some 83 percent of exports). behind only Singapore and Hong Kong in this pillar. Of particular concern is the quality of Indonesia’s infrastructure (82nd). In addition. which has been accompanied by a slight improvement in the perceived soundness of the banking sector (60th. Infrastructure (86th) is in need of upgrade. it ranks 4th for the quality of public institutions while it retains its leadership in the private institutions component. health and primary education (32nd). Public debt remains low at 31 percent of GDP. Indeed. and relatively sophisticated and innovative businesses. and the macroeconomic environment (1st). remain among the highest in the world. up 17) throughout the crisis. and the electricity supply.

Up 16 positions. Finally. Sri Lanka achieves higher scores this year in every measure of the public institutions category. ICT use remains low (101st). namely business sophistication (25th) and innovation (24th). its excellent transport infrastructure (23rd). improving its position from 73rd to 55th in the institutions pillar. and a poor credit rating (111th). up 27). the country’s business environment is relatively sophisticated with developed clusters (34th) and companies operating across the value chain. Against this largely positive background. up 12) and financial markets (52nd. Sri Lanka’s GDP is rising and the country is now transitioning from the factor-driven to the efficiency-driven stage in the GCI framework. and a relatively well functioning goods market (ranked 41st). Following a hectic period marked by high inflation. The labor market is another area of major concern (104th). However. Such efforts will then buttress the country’s innovation potential. strained by rapid economic growth. a rise attributable to improvements across the board. in addition to urgently improving its institutional framework. there are concerns regarding the level of intellectual property protection (109th) and to a lesser extent the respect of property rights (81st). particularly for a country at its stage of development. 102nd. Thailand continues to benefit from its relatively large domestic and export markets (23rd). weakening across most areas measured by the GCI. Regulation is perceived as burdensome (120th). enrollment rates at all levels remain low (ranked 71st. boding well for the future. crippled by rigidities and high redundancy costs. Among the country’s competitive strengths are its efficient labor market (30th) and its impressive innovation potential given its stage of development (49th). Mongolia moves up to 99th place. secondary. the macroeconomic situation improved sharply (85th. And while there is a sense that the quality of education is improv- ing. The main drag within this pillar remains the security situation (80th. has fallen 2 places this year and 10 ranks since 2006. particularly the use of ICTs. The four-year decline in the quality of institutions that pushed Malaysia from 17th in to 43rd has finally come to a halt. which are becoming increasingly important given this level of development. remains a major challenge for the country despite some improvement in recent years. On the corporate governance side. infrastructure. Pakistan falls to 123rd place. As a result of this healthy growth. with debt and deficits going up. and 109th for primary. Thailand. other trade barriers (112th).1. Corruption is considered frequent and pervasive (107th). three notable areas of weakness persist. with the country remaining stable at 42nd place this year. Vietnam (59th) has improved in 10 of the 12 GCI pillars. the savings rate declining. Other areas of improvement include health and primary education (35th. Going forward. contributing to rising public debt and pointing to a need to continue efforts toward macroeconomic stability.Vietnam must also continue to strengthen its institutional environment.5 percent in 2009). likely related to recent problems of social unrest and political instability in the country. trade remains hindered by very high import tariffs (8. which will become increasingly important as it moves toward the most advanced stage of economic development. at 38th position. while improving on efficiency-enhancing factors. 118th) required to start a business making this a daunting process. and macro- The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . Malaysia will need to improve its higher education system. 110th) and time (50 days. the private sector is not seen as being sufficiently accountable (124th). In order to improve its competitiveness further. up five). respectively). namely its institutions (112th). while Bangladesh and Cambodia remain quite stable at 107th and 109th.1: The Global Competitiveness Index 2010–2011 30 and an efficient goods market (27th). and tertiary enrollments. with the number of procedures (11. And this year’s performance indicates that the country is making some important improvements to this end. with particular concerns about the quality of roads (117th) and ports (97th). However. respectively. In addition. the efficiency of its labor market (24th). In addition.2 percent. Malaysia also does relatively well in more complex categories. partly because of the weakness of investor protection in the country (133rd— third to last). for productivity enhancements. the country will require efforts in particular to improve the basic determinants of its competitiveness. Sri Lanka moves up to 62nd position this year. In order to further improve its competitiveness. It would also be well served by encouraging greater technological adoption. The macroeconomic environment has worsened considerably. infrastructure (110th). Between 2003 and 2008. up 13). annual GDP growth exceeded 5 percent (slowing to 3. and large swings in interest rates. although threat of terrorism remains a serious concern (134th). Among other things. Sri Lanka needs to bolster the foundations of its competitiveness. a dramatic fall in the dong. which matter the most for advanced economies. the country needs to step up its efforts to improve its health and educational systems and encourage wider adoption of new technologies for productivity enhancements. with particularly low enrollment rates at the secondary and tertiary levels. Lower in the rankings. the perceived level of security is increasing (106th). Yet the government budget deficit remains one of the highest in the world. In addition. Sri Lanka also continues to benefit from impressive business sophistication (39th) and innovation (40th). The assessment of public institutions continues to deteriorate (70th) after a drop of 30 places over the past four years. including its relatively large market size (35th) with a particularly large export market. indicating that these tools are not yet being sufficiently employed for productivity enhancements in the country. Still at an early stage of development. 90th). and burdensome customs procedures (106th).

3 percent. a first-class educational system (ranked 7th and 27th for primary education and higher education and training. have helped it weather the global economic crisis that began in 2008. to a lesser extent. Paraguay (120th). Only Chile (30th) and the two small Caribbean islands of Puerto Rico (41st) and Barbados (43rd) feature within the top 50 most competitive economies in the world. and the largest pension industry in the region. The liberalization process took place in the context of sound macroeconomic policies (27th for macroeconomic stability) and transparent institutions (28th in the institutions pillar). with notably high deficit and debt levels (8. Also notable competitive strengths are the island’s quality higher education and training system (38th) and its wellfunctioning goods markets (34th). Up one place since last year.26 On a more negative note. Costa Rica (56th). including the country’s macroeconomic stability (91st). which is considerably lower at 2. The country has been at the forefront of market liberalization and opening. and Uruguay (64th) are also included among the top half of the rankings. some of the components of an innovation-conducive environment— including the quality of the research institutions (ranked 55th) and the collaboration between academia and industry (currently ranked 39th)—should be strengthened. Additionally. 31 . the reduced debt levels (with longer maturity profiles) of most countries in the region. among other areas. Brazil (58th).8 percent in 2009. corresponding to 56th and 43rd place. have been instrumental in reinforcing their resilience and ability to support their economy with stimulus measures. coupled with their increased foreign reserves.25 At the same time. respectively). producing all along the value chain (31st). the GCI assessment for the region for this year points to the important progress made by several countries in improving and reinforcing their competitiveness fundamentals. and Uruguay. many other regional economies improve slightly or remain stable. All of the above. Closely following Puerto Rico and ranked 3rd in the region. Stable at 30th.4 reconstruction plan envisaged by the government in the next four years is expected to come from the Economic and Stabilization Fund—one of the main tools used by the country in its counter-cyclical policies. Bolivia (108th). respectively). respectively. innovation-driven stage of development. improving its innovation potential is increasingly becoming a priority as the country approaches the most advanced. including through increased spending. the sophistication and innovation potential of its business sector (59th The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. Panama. While Bolivia. despite rising educational attainment rates and government efforts to improve educational quality. the GCI highlights a number of areas in need of improvement. Costa Rica. and Venezuela (122nd). Also a large number of regional economies continue to appear in the bottom part of the rankings. together with Mexico (66th). and Paraguay post the largest improvements. with an important capacity for innovation (33rd). thanks to its excellent institutional environment (22nd). beyond setting the region on a more sustainable growth path in the long run. the region must improve significantly in order to catch up with international best practices and fully leverage its competitiveness potential. these include Brazil. a part of the US$8. Chile. displaying a dynamic and sophisticated business sector (27th).Latin America and the Caribbean Reflecting the strong resilience within Latin America and the Caribbean in the face of the recent severe global economic downturn. Puerto Rico (41st) confirms its strong position in the region. and welldeveloped infrastructure (23rd). and export diversification. An important element of the problem is the country’s still-unsatisfactory quality of its educational system at all levels (ranked 101st for primary education and 45th for higher education and training). trailing behind most of the world in competitiveness— these include Ecuador (105th). Colombia (68th). when compared with the rest of the world. These attributes have not only spurred growth over the last 20 years. Although regional GDP contracted by 1. and Peru (73rd). but also have provided the country with the resources needed to stimulate the economy in recent times of crisis and to address the pressing reconstruction challenges brought about by the tragic 2009 earthquake.1: The Global Competitiveness Index 2010–2011 economic environment (133rd) as well as education at all levels. These results confirm the important strides the region has made in recent decades toward sounder fiscal management.6 percent and 52.6 percent. two countries that require improvements across virtually all areas captured within the GCI.6 percent of GDP. it is expected to grow by 4 percent in 2010. and. with a very convincing performance resting notably on solid basic requirements (37th) and efficiency enhancers (35th). in 2009). respectively). In particular. Indeed.27 Further efforts should be made to improve teaching quality and training as well as secondary and tertiary enrollment rates (90. Beyond its tiny market size (133rd). Nicaragua (112th). increased market efficiency and openness. Panama (53rd). Barbados consolidates its competitiveness standing in the rankings at 43rd. one of the most sophisticated financial markets (41st). The regional ranking closes with Nepal (130th) and Timor-Leste (133rd).4 and 100. driven by increased domestic consumption and better external conditions—a satisfactory performance by historical standards and more solid than that projected for advanced economies. although Chile’s business sector is fairly efficient and sophisticated (43rd). resulting in very efficient goods and labor markets (28th and 44th. Chile remains the most competitive country in Latin America and the Caribbean.

Brazil displays one of the most developed and sophisticated financial sectors in the region (50th). and its increase in ICT penetration rates.2 in 2009). the macroeconomic environment in the country remains worrisome.29 These efforts have been instrumental in putting the economy on a much sounder competitive- ness foundation and in providing a markedly more business friendly environment for private-sector development. Among its solid competitive advantages are its large market size (10th). However. Notwithstanding these strengths. up 12 places from 2009) and a relatively well functioning higher education system (58th). the soundness of the macroeconomic environment (108th) remains a problematic area amid increasing security concerns in the country (81st). Last but not least. Strengthening the quality of its educational system (ranked 89th and 82nd for primary education and higher education and training. notably via FDI (12th for the FDI and technology transfer variable) coupled with an increasing ICT adoption (57th) as a key lever in the competitiveness strategy are also notable competitive strengths. which operates high on the value chain (ranked 28th in the variable measuring value chain breadth). On the other hand. At 64th. and a large basis on which to absorb and introduce process and product innovation (ranked 44th and 42nd for technological adoption and innovation. respectively. Despite losing the top position in Central America to Panama.3 vs. Further. after following an impressive upward trend for the last couple of years (up 16 positions between 2007 and 2009). 101st). the quality of the country’s infrastructure (78th) and the development of the financial market (85th) may represent potential bottlenecks going forward. and strategic geographic position. 136th). This advance reflects the country’s recent important investment in upgrading its infrastructure.5 percent. notably in its on-the-job training component (38th). with increasing levels of public debt and a widening The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . 84th). and reducing income inequality. and a strong educational system (ranked 47th for health and primary education and 40th for higher education and training). the quality of institutions remains poorly assessed at 93rd. The country’s strong position rests on firstclass quality education (ranked 23rd and 43rd for primary education and higher education and training. after having climbed 13 ranks from 2006 to 2009. respectively). The country’s recent dynamism in the rankings has reflected the remarkable strides made in the past 20 years toward macroeconomic stability. with limited trust of politicians and in the rule of law. Uruguay overtakes Mexico for the first time in the rankings. Moreover. good governance standards. An important capacity to leverage technology (ranked 50th for technological readiness). respectively). with an expected annual growth rate of 5. up 18 places). with a slight improvement in score (4. Moreover. coupled with fairly efficient infrastructure by regional standards (ranked 62nd. Box 4 examines more in depth the infrastructure challenge for Brazil and Latin America at large. providing the efficient and dynamic business sector (ranked 31st for business sophistication) with important economies of scale.4 percent. this has allowed Brazil to successfully react to the impact of the recent global economic crisis: while the country’s GDP contracted slightly in 2009 (GDP’s growth rate was –0. Panama posts one of the largest improvements in the region. In addition.18 percent in 2009). for business sophistication and innovation). its fairly developed infrastructure (53rd). liberalizing and opening the economy. its prowess in absorbing technology (ranked 7th for the variable on FDI and technology transfer). respectively).28 Brazil is fairly stable at 58th. Costa Rica remains quite stable at 56th position. Goods and labor markets display important rigidities that hinder the allocation of resources to their most efficient use (ranked 114th and 96th. increased macroeconomic stability (30th. insufficient macroeconomic stability (at 107th) remains a cause of concern. its sound macroeconomic management in recent times of crisis. the country has been very successful in recent years in diversifying its production and export structure toward higher value-added (notably high tech) and niche (eco-tourism) sectors. and a sophisticated and innovative business sector (ranked 32nd and 35th. among other dimensions. with notably low savings rates (15 percent. The country’s good showing rests on its strong institutions and governance standards (39th). with important strengths accompanied by worrisome weaknesses and challenges that must be tackled for Brazil to fully tap its enormous competitive potential. despite the progress made toward fiscal sustainability. 4. the competitiveness picture for Brazil remains mixed. climbing to 53rd this year thanks in large part to a more positive assessment of infrastructure quality (44th.1. In addition. the focus on new technologies (including biotech and aerospace) has been highlighted as a priority of the new Chinchilla administration. further focus and efforts are required to improve the quality of the educational system at all levels (ranked 106th for primary education and 97th for the quality of the higher education) and to reduce regional disparities in educational access and attainment. respectively). up 21 places from last year). the economy has started to grow again in 2010. respectively) and increasing the flexibility of its labor market and the efficient use of talent (107th for the efficiency of the labor market) are crucial to further reinforce Panama’s long-term growth potential going into the future. fairly transparent institutions (51st). and relatively high public indebtedness (48 percent of GDP. a high interest rate spread (35. Leveraging its well-educated labor force. The country also continues to benefit from well-developed financial markets (21st). On a more negative note. up 16 places) and technological readiness (41st.1: The Global Competitiveness Index 2010–2011 32 and 53rd.

51 3.59.12 4.75 3.82 4.39 3.37 4.73 3.90 2.10 1 30 15 48 44 38 70 69 42 56 n/a 65 86 64 n/a 92 73 59 68 88 115 84 95 94 102 121 98 112 104 6. with few exceptions. The idea that the private sector could step in and fill the financing gap did not fully materialize. This challenge is particularly relevant for large emerging markets such as Brazil.18 3.46 1 12 29 37 46 58 30 31 75 66 n/a 67 51 76 n/a 57 89 111 101 82 39 94 99 122 100 79 123 102 138 6.93 4.02 3.49 3. Calderón and Servén estimate that upgrading regional infrastructure to Korea’s levels could increase annual GDP growth rates by 1. Brazil.08 4.44 4. Furthermore. the private funds did not fully compensate for the shortfalls in public investment.48 3. ranked 18th) confirms the magnitude of the challenge facing Latin America and the Caribbean in upgrading regional infrastructure to international best standards. Although Latin America was the recipient of half of the US$786 billion infrastructure investment in the developing world through publicprivate partnerships (PPP) between 1990 and 2003.17 2. placing infrastructure among the basic requirements of competitiveness.76 4. energy.08 2.95 3.49 3.53 4. and therefore needed to make even deeper cuts in long-term investment. The quality of infrastructure appears to be a shared concern for Latin America and the Caribbean. because cutting this type of investment spending proved easier than cutting current expenditures to cover salaries and pensions.51 4.55 2.31 4.86 3.91 3.82 (Cont’d.69 4.50 3. and transport).03 4. Public investment in infrastructure was the main victim of the stabilization programs implemented in the 1990s in most countries.53 4.13 4.78 2.9 3.8 percent while reducing inequality by 10 to 20 percent. together with those of selected relevant comparators.82 2.2 As a consequence.24 3.44 4. Chile. which are increasingly playing a key Table 1: Infrastructure: Latin America and the Caribbean and selected comparators Infrastructure 2010–2011 Country/Economy Hong Kong SAR Korea.75) and top-ranked Hong Kong (6.27 3.73 2. Barbados Chile Panama Trinidad and Tobago Puerto Rico China Uruguay El Salvador BRIC average Brazil Jamaica Guatemala Latin America & Caribbean average Mexico Argentina Costa Rica Colombia Honduras India Peru Ecuador Bolivia Guyana Dominican Republic Venezuela Nicaragua Paraguay A.73 2.83 4.1 The adjustment was particularly dramatic because Brazil had increased its current expenditures. among others: according to the World Bank.04 2.47 3.44 5.92 5.62 3.85 5. these investments were concentrated in a few selected countries (Argentina.10 4.83 2.29 4.28 3.96 3. Transport infrastructure 2010–2011 1. infrastructure development in the region has lagged behind that of the East Asian tigers or even China over the last two decades.77 5. and India.06 2.74 3.38 2.77) or Korea (5.3 with severe implications in terms of economic growth and poverty reduction.05 3.76 4.92 2. and Mexico) and sectors (telecommunications.58 2.14 5.59 2.54 3.94 3. Rep. The rather large gap between the regional average (3.4 Table 1 displays the rankings and scores of regional economies in the GCI infrastructure pillar this year.93 4.1: The Global Competitiveness Index 2010–2011 Box 4: The infrastructure challenge in Latin America: The case of Brazil 33 B.63 3.28 3. Korea.78 4.4 to 1. Peru.96 2.73 4.30 4.94 4.01 3. Electricity and telephony infrastructure 2010–2011 Rank Score Rank Score Rank Score 1 18 23 40 44 45 49 50 53 59 n/a 62 65 66 n/a 75 77 78 79 85 86 88 96 100 103 107 108 111 125 6. China.48 3.69 5.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . including the regional and BRIC averages.45 4.49 3.59 5.49 2.56 4.76 4.59 3.90 2.The Global Competitiveness Index highlights the key importance of well-developed and efficient infrastructure networks for countries’ long-term growth.15 3.12 4. public investment in infrastructure in the region fell from 3 percent of GDP in 1988 to 1 percent of GDP in 1998. Colombia.

transport.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .) role in the global economy and for which poor infrastructure quality results in higher logistics costs and inefficient patterns of interregional and international trade. and a relatively high level of private investment in infrastructure projects over the 1994–2005 period (2. Among Brazil’s notable competitive advantages underscored by the IPIAI in this regard were: a very low political risk. R$275 billion for energy-related projects. the Brazilian government announced a PAC 2. 4 Calderón and Servén 2004.94 123 2. the region should increase investment in infrastructure to 4–6 percent of GDP over 20 years in order to attain Korea’s infrastructure coverage and not to lose further ground with respect to China. a fairly good track record in private investment in infrastructure. 8 See HSBC 2010. with a similar showing for its transport (67th) and electricity and telephony infrastructure (65th).93 Quality of overall infrastructure Quality of roads 34 Quality of railroad infrastructure Quality of port infrastructure Quality of air transport infrastructure Available airline seat kilometers B. 2007 for more information on the IPIAI’s methodology and Brazil’s performance. it still ranks a middling 62nd in this pillar. 6 See Resende 2009 for a detailed analysis of Brazil’s state of infrastructure and main flaws. 3 According to Fay and Morrison (2005). 5 Resende 2009. Upgrading infrastructure has been a key element of the Lula administration’s ambitious Growth Acceleration Program (PAC). air transport infrastructure (93rd). 2 See Fay and Morrison 2005. thus complementing public funding and ensuring that infrastructure can truly support Brazil’s competitiveness in the years to come. have raised awareness among both the public and the government of the importance of quality infrastructure for competitiveness.98 9 3. Although the country has improved eight places since 2008 for the overall quality of its infrastructure.8 What is more.9 Figure 1 shows Brazil’s performance in the IPIAI. The Infrastructure Private Investment Attractiveness Index (IPIAI). Electricity and telephony infrastructure 87 1.79 65 4. such as the energy blackout of 2001. its congested ports and airports. (Cont’d. with respect to the best performer in that index.7 PAC was conceived as an integrated approach to infrastructure improvement. and its costly and underdeveloped telephone infrastructure.94 93 3.59 trillion to be invested in the 2011–14 period with emphasis on high social sensitivity areas. and balanced development across Brazilian states. notably through friendlier and more predictable regulations. housing. launched in 2007.28 Quality of electricity supply 63 5.76 84 3. are the quality of port infrastructure (123rd).79 105 2.79 Experiences over the past decade or so. The most problematic areas. logistics.001.5 Table 2 provides an overview of Brazil’s infrastructure as assessed within the GCI infrastructure pillar. with much of the financing going to housing (notably to first-time home owners) rather than to the improvement of physical infrastructure. roads (105th). and protected returns on investment. Notes 1 The drop contrasts sharply with the amount of public resources invested in health and education (8 percent of GDP) that resulted from an increased focus on poverty reduction. with a total budget of R$1. 7 PAC also comprised a number of measures/policies to limit regulatory risks and develop risk mitigation mechanisms as well as to improve the framework for PPP. a fairly well developed local capital market.6 Table 2: An assessment of infrastructure quality in Brazil Rank Score 2nd pillar: Infrastructure 62 4.06 Fixed telephone lines 62 21. with little unrest or expropriation risk. On March 29. as highlighted by the GCI. and roads (see Olson 2010). risk-mitigation mechanisms. This assessment reflects the appalling state of transport infrastructure in the country. and R$58 billion for logistics. aimed at increasing the coverage and quality of infrastructure networks together with better access to water. Although PAC has been a significant step in the right direction. and the sample average excluding Chile.02 A. ranked Brazil 2nd in the sample. Greater private investment in infrastructure should also be promoted in Brazil. 2010. 9 See Mia et al.2 percent of GDP). transportation. distributed as follows: R$171 billion for social infrastructure. fewer than half of its targets have been met. trade. Transport infrastructure 67 3. including housing and health. it has been said that better coordination of responsibilities among federal and state authorities is necessary to achieve higher investment in infrastructure. railroad infrastructure (87th) and mobile telephony (76th). energy. sanitation. earmarking a total of R$504 billion in investment for the 2007–10 period. with few projects cancelled or in distress. This bodes well for the country’s capacity to increasingly involve the private sector in financing and managing infrastructure networks. public transit. Yet. It was estimated that investment in infrastructure needed to reach 5 percent of GDP to keep it from becoming a bottleneck for the country’s capacity to achieve sustained growth rates going into the future. electricity.1.1: The Global Competitiveness Index 2010–2011 Box 4: The infrastructure challenge in Latin America: The case of Brazil (cont’d. private investment in physical infrastructure has been limited and has failed to make up for scarce public resources and attention. and. the unexploited potential of its 48. and energy. three years after the launch of PAC. Chile. developed by the World Economic Forum in 2007 and benchmarking 12 Latin American economies for their friendliness to private investment in infrastructure. to a lesser extent. Brazil’s experience in infrastructure development is an example of the challenges countries can face in enhancing this critical competitiveness driver. its underdeveloped railroads.000 kilometers of navigable waterways.42 Mobile telephone subscriptions 76 89.

With an unchanged score of 4.2 percent in 2010. Finally. Mexico drops six places from 2008 to 66th. trade. with burdensome regulations.3 percent of GDP in 2009 as opposed to 0. it is estimated to grow by 4. such as the large size of the market available for local companies (12th) and a sophisticated and innovative private sector (ranked 67th for business sophistication and 78th for innovation) with well-developed clusters (50th) and companies operating throughout the value chain (49th for the variable on value chain breadth).1: The Global Competitiveness Index 2010–2011 Box 4: The infrastructure challenge in Latin America: The case of Brazil (cont’d. Notwithstanding these strong attributes and the liberalization and steps undertaken in recent years to improve the business climate and make the economy more efficient.) 2 Government and society Political risk 1 Private investment track records Access to information Financial markets enablers Brazil Chile IPIAI average (excluding Chile) Source: Mia et al. clearly demonstrating the need for continuous improvement in order not to lose ground in competitiveness vis-à-vis the rest of the world. The reliability and quality of institutions continue to receive a poor assessment at 106th.1 percent in 2008). In particular. 35 public deficit (2. high payroll taxes and social contributions (ranked 103rd for flexibility). in large part attributable to its close association with the US business cycle (including links through financing. the country has shown a certain degree of resilience to the pernicious consequences of the crisis and has been able to stimulate its economy with a number of anti-cyclical policies.19. Mexico also has a number of important competitive strengths that are similar to those of Brazil. 2007. with increasing security concerns (134th. likely related to recent spiraling drug-related violence and civil unrest.. reform of the educational system to boost its quality is necessary to meet the needs The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .Figure 1: Brazil in the IPIAI Macro environment 7 6 Government readiness for private investments Legal framework 5 4 3 1. and remittances). especially labor market inefficiencies (119th). and a lessthan-efficient use of talent (122nd). down nine places from last year) among the business community. Mexico has been among the countries in the region worst hit by the global economic downturn. the labor market is ranked at a dismal 120th place. while worrisome rigidities persist in factor markets. Thanks in particular to the remarkably sound fiscal policies implemented in the past two decades (28th for macroeconomic stability).5 percent). Mexico’s factor markets remain rigid and represent a structural impediment for the country’s growth prospects over the long term.30 Although Mexico’s GDP shrank significantly in 2009 (–6.

1.1: The Global Competitiveness Index 2010–2011 36 of an economy moving toward the most advanced stage of development. notwithstanding the important strides realized by the last administration in social pacification. successfully adopting technology and enhancing innovation (ranked 63rd and 65th for technological readiness and innovation. do not seem to compensate for the serious and enduring shortcomings undermining Argentina’s long-term growth potential. infrastructure remains underdeveloped (108th) and educational standards at all levels are low (86th and 68th for health and primary education and higher education and training.6 percent of GDP in 2009. with improvements notably in labor market efficiency (up twenty-one places. Although the current administration has adopted. Improving the flexibility of factor markets as well as ensuring a more predictable business environment and a greater respect of the rule of law by the government remain the priorities going forward to restore investors’ confidence and lay the foundations for sustained longterm competitiveness. Colombia displays competitive strengths in the quality of its macroeconomic environment (50th). the worst in the entire sample) and factor markets efficiency (139th. and efficient use of the revenues from the country’s rich natural and mineral resources. efforts to encourage trade and FDI. red tape. for goods market efficiency. On the other hand. Peru was one of the few countries whose economy did not contract in 2009 but continued to grow moderately at 0. respectively). and 126th. to a lesser extent. and is not sufficiently conducive to technology adoption and innovation. 128th. and reinforcing the capacity to absorb technology and generate innovation (ranked 74th and 110th for technological readiness and innovation. On a related note. respectively). upgrading the quality of and access to the educational system at all levels (111th for primary education and 76th for higher education and training). The country can notably count on flexible goods and labor markets (ranked 69th and 56th. such as its extensive market size (24th) and fairly good educational system at the primary and higher levels (ranked 60th and 55th for health and primary education and higher education and training. In particular.5 percent between 2002 and 2008). placing it 41st in the sample).3 percent rate for this year. with an estimated 6. Venezuela’s competitiveness landscape appears to be worsening every year. Despite important investment in education and basic services. factor markets continue to suffer from worrisome rigidities. large market size (32nd). Argentina is fairly stable at 87th. particularly the goods market (103rd). respectively). which all hinder their efficient functioning (ranked 135th. further action is sorely required to reinforce Mexico’s competitiveness fundamentals. continuing to feature in the bottom part of the rankings despite its many and diverse competitive advantages and the strong growth rates experienced by the country after its 2001 economic crisis (an average of 8. coupled with liberalization of its goods and labor markets. with a notably dismal assessment of the institutional environment (139th. labor market efficiency. with moderate public indebtedness levels (26. notably scientists and engineers (89th).7 percent GDP growth between 2002 and 2009). On the other hand. or plans to adopt. Further investment is required to upgrade infrastructure networks to first-class standards (ranked now at 79th). a number of competitiveness-enhancing reforms addressing many of these shortcomings. respectively). Peru continues its upward march in the rankings with another five-place progression to 73rd place (up by six places in a constant sample). the poorly rated higher education and training system (79th) does not seem to be producing a highly skilled labor force. and financial market development. with little public trust of politicians and deep concerns about the rule of law. while the macroeconomic environment The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . with continuing concerns over security (138th). complementing its relatively large domestic market (44th). well-developed financial market (42nd). Peru faces a number of competitiveness challenges that must be addressed going forward. to 56th) and.9 percent. while factor markets continue to suffer from extensive inefficiencies and rigidities. This may reflect a number of discretionary policies adopted by the last two administrations—including the nationalization of the private pension system and the recent ousting of the central bank governor following his refusal to let the government tap the central bank’s reserves to finance growing public spending and pay its debts—and an erosion in investors’ confidence in government transparency and even-handedness in its dealings with the private sector. respectively. The economy is expected to grow strongly again in 2010 and beyond. the institutional environment is still characterized by weaknesses at 103rd. respectively). The country has improved a total of thirteen places since 2007. and financial market development). labor market efficiency. and lack of competition. In particular. Fairly stable at 68th. and access to foreign markets (59th). 138th. The competitiveness picture provided by the GCI is rather mixed: important strengths. respectively). and is now behind all other Latin American and Caribbean countries and featuring among the least competitive countries of the world. Among the elements underpinning Peru’s strong competitiveness showing is the competent macroeconomic policy pursued over the last decade. in infrastructure quality (up nine places to 88th) and higher education and training (up five places to 76th). its institutional environment is among the worst in the world at 132nd. and 132nd for goods market. and fairly sophisticated businesses (61st). including improving the poor institutional environment (96th). Venezuela (122nd) continues its fall in the rankings. mirroring its impressive growth performance in recent years (an average of 6.

Saudi Arabia moves up by seven places to take the second-highest place in the region at 21st. the country is the fastest-growing economy in the world. reducing the country’s vulnerability to commodity price fluctuations will require diversification into other sectors of the economy and improving some of the areas of competitiveness. Given its high wage level. and excellent security are the cornerstones of the country’s solid institutional framework. many countries put massive stimulus packages into place. and inefficient factor markets weaken these countries’ competitiveness fundamentals and should be addressed as a priority going forward. with soundness of banks ranked 46th and legal rights of borrowers and lenders underprotected (103rd). Last but not least. improvements are taking place from a low level. have contributed to this year’s better positioning. Despite posting important improvements since last year. In international comparison. and Paraguay (120th. Both these areas. Going forward. Qatar.5 percent for 2010. Its strong competitiveness rests on solid foundations made up of a high-quality institutional framework. although it led to a deterioration of macroeconomic stability as the budget balance moved into deficit. Low levels of corruption and undue influence on government decisions. down from 16. up sixteen places in a constant sample). the country lacks companies that demonstrate sufficient sophistication and innovation potential (129th and 123rd for business sophistication and innovation. This high growth. 37 . with average growth rates falling from 6.Middle East and North Africa Following a relatively prosperous period. The country’s main strength remains the excellent—and improving—capacity for innovation (6th). Nicaragua (112th. the global economic crisis has highlighted some of the vulnerabilities to which the economies of the region were exposed and led to a widening gap between Gulf economies and the rest of the region. The favorable financial environment (14th) and. Further. the country will also have to foster the use of latest technologies (36th) as well as business sophistication and innovation. enters the top 20 this year and reaffirms its position as the most competitive country in the MENA region. poor educational standards and infrastructure. Low educational out- The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. and an efficient goods market (12th). seven places up in a constant sample). which helped to dampen the recession and in many cases also led to improvements in infrastructure. which resulted in a strong a solid institutional framework. Finally. the Middle East and North African (MENA) region experienced a downturn during the global economic crisis. the country continues to occupy low ranks in the health and primary education (74th) and higher education and training (51st) pillars. While some progress is visible in health outcomes as well as in the assessment of the quality of education. improving infrastructure in the country. Additionally.4 in 2008. all remaining countries in the region with the exception of Tunisia (and new entrants Iran and Lebanon) decline. ranked 17th. high government efficiency. with its growth rate slowing to 9 percent in 2009. and sophisticated businesses. are of high importance to Saudi Arabia given the growing numbers of its young people who will enter the labor market over the next years. as well as one of the wealthiest. its trustworthiness and confidence is assessed as low by the business community (62nd). some room for improvement remains with respect to the use of latest technologies (42nd).1 in 2008 to 2. MENA was less affected by the downturn than some other regions because it maintained weak interlinkages with global markets. in addition to a more efficient labor market (66th). a trend that has been observed over recent years. As a result. combined with prudent government support for the financial sector. which rests not only on highly innovative businesses but also on the availability of high-quality research institutions and is reflected in a high number of patents. in particular. With a projected growth rate of 18. Overall. in particular a better assessment of the security situation by business (19th) and a stronger corporate governance framework (26th). As much as the recent improvements are commendable. Major common flaws in the quality of their institutional environment.1: The Global Competitiveness Index 2010–2011 continues to deteriorate (now ranked 113th) despite windfall oil revenues in recent years. ranked 10th overall. nine places up in a constant sample) continue to feature in the very bottom of the rankings. widespread red tape. trailing behind most of the world in competitiveness. the country was relatively unharmed by the global economic crisis. the country’s macroeconomic environment emerged stronger from the crisis. Despite efforts to strengthen its financial sector. efficient markets. Future challenges to maintaining and improving national competitiveness relate to continued upgrading of institutions (33rd) and a renewed focus on raising the bar in terms of the quality of education. up three positions after having suffered losses in competitiveness over the past years. Israel ranks 24th in this year’s GCI. including rampant crime and violence. However. the government enacted a massive stimulus package. Bolivia (108th. Health and education do not meet the standards of countries at similar income levels. contributed to maintaining macroeconomic and financial stability. The country has witnessed a number of improvements to its competitiveness in recent years. moving from 13th to 8th place. Compared with many other economies. a stable macroeconomic environment (8th). the country faces important challenges going forward.2 percent in 2009. respectively). While all the Gulf countries except for the United Arab Emirates (UAE) move up in the rankings. Improvements to the institutional framework (up by 11 places to 21st). the availability of venture capital (10th) have further contributed to making Israel an innovation powerhouse.

First. which enables businesses to reap economies of scale in the domestic market. although The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . reflecting a high national savings rate (26th) and low public debt (17th). are numerous. Following a difficult year. The Islamic Republic of Iran enters the Global Competitiveness Index for the first time at 69th position. undermine the country’s innovation-driven competitiveness strategy if not addressed. faced in paying back debt toward the end of 2009. on the other hand. which reflects a number of pronounced strengths as well as important challenges. a state-owned company. the continuing labor market rigidities are worrisome because of the widespread unemployment among young people. which are among the most restrictively regulated worldwide (135th). Improvements in productivity could also be achieved by leveraging the latest technologies available from abroad. The limited access to finance (129th) across different financial products as well as low confidence in the banking sector (114th) significantly limit private-sector growth in the country. Inflation has been lowered and the savings rate increased while the budget deficit remained stable at around 3 percent. there has been a deterioration in the assessment of institutions overall. Different forms of finance are more easily available to the private sector. Some progress has been made with respect to the efficiency of financial markets (35th). respectively. the security situation remains fragile and imposes a high cost on business (73rd). room for improvement also remains with respect to macroeconomic stability (60th). Although some progress has been achieved. and its satisfactory transport infrastructure (56th overall). the low confidence in the stability of the banking system (90th) will need to be addressed and the legal protection of investors’ rights improved. And. progress could be achieved by fostering the use of mobile telephony (95th) and access to broadband (101st). Currently. Presently. high taxes. This advantage could be further strengthened by removing barriers to trade. could. the fairly well developed private institutions (60th) that ensure good governance. high penetration rates of new technologies (14th). Tunisia will have to address inefficiencies related to its labor market. Going forward. within the country’s financial markets. Over the past year. the United Arab Emirates loses two places in this year’s GCI to take the 25th position. moving up by eight places to 32nd. Lower tariffs (135th) and more foreign ownership (139th) would also raise the efficiency of markets for goods and services (98th). Additionally. The country’s main competitive strengths are the sheer size of its market (26th) that allows businesses to exploit economies of scale. and highly efficient goods markets (6th). The challenges. the capacity of Iranian firms to absorb new technologies is very low (116th) and access to these technologies is limited (123rd). it remains manageable. the country improved its macroeconomic stability since the last assessment. The country is among the poorest performers in the GCI sample with respect to the efficiency of using talent (133rd). where accountability standards and the efficacy of corporate boards are evaluated less positively than before. Tunisia boasts relatively efficient domestic markets for goods and services. The country’s overall competitiveness reflects recent investments in infrastructure. although public debt increased. Iran boasts a relatively stable macroeconomic environment (45th). which has since been reoriented toward the more traditional role of commercial and logistics hub and away from property development. The difficulties of Dubai World raised doubts about the sustainability of the development model of Dubai. reflects in particular rigid employment regulations and wage-setting processes. the country should focus on developing its basic requirements as well as its efficiency enhancers to prepare for the future. where it ranks an excellent 3rd. in particular in the area of math and science. although improving with respect to the last edition. although enrollment rates in secondary and tertiary institutions are fairly low—53rd and 69th.1. reflecting high brain drain (109th) and incentive structures that are not based only on meritocracy (121 for reliance on professional management and 111th in terms of the link between pay and productivity). Egypt moves down to 81st in this year’s GCI rankings. most notably in the areas of health and education. Macroeconomic stability and some positive aspects of the country’s institutions. round up the list of competitive advantages. along with a high level of security (14th) and an educational system that ensures a good quality of education (22nd). It equally benefits from its large market size (20th). which shield the country from foreign competition. It will also be important to foster a more trustworthy and efficient financial sector (120th). And second. but restrictions on capital flows are still considered burdensome by the business community. This lower assessment is likely related to the difficulties that Dubai World. such as high public trust of politicians and efficient government. The low ranking of 79th. Tunisia retains the lead within North Africa. a continuation of competitivenessenhancing structural reforms will be necessary to keep the economy growing. the participation of women in the labor force continues to be low (130th). which reduces its ability to property allocate and employ human resources. The country’s efficient government institutions remain its main strength. and the low participation of women in the labor force. Transitioning from the first to the second stage of development. In this respect. and in particular of private institutions. Despite the crisis.1: The Global Competitiveness Index 2010–2011 38 comes. over the longer term. At the same time. Two areas with room for improvement emerge from the GCI results. As in previous years. The labor market continues to be overregulated. This result is commendable in light of the recent global deterioration of macroeconomic stability during the recession. Other priorities for reform include labor markets.

South Africa. While a number of attributes therefore make South Africa the most competitive economy in the region. The country can depend on a healthy and welleducated population with advantages in the quality of education.7 percent in the GCI 2009–2010). The country ranks 97th in labor market efficiency. Included for the first time in the GCR. the IMF predicts GDP growth of 4. While it has dropped somewhat in rank since last year. as well as underdeveloped infrastructures and low levels of technological adoption.7 percent in 2010 and well above 5 percent for the next few years for sub-Saharan Africa. as enrollment rates in primary and secondary education remain low (105th and 86th. property rights (29th). Lebanon occupies the 92nd position in the rankings. as reflected in its 99th position overall. the solvency of Egypt’s banking system. and low efficiency of government operations (122nd). Following its low growth performance toward the middle of the decade. electricity. However. Challenges to be addressed include dismal infrastructure for transport. at 54th overall. Furthermore. Competitiveness-enhancing reforms could help sustain its growth momentum. such as intellectual property protection (27th). its performance has in fact remained stable and the decline reflects improvements in other countries. Presently. a lack of flexibility in wage determination by companies (131st). unlike in other countries. and financial markets. More generally. continues to raise concerns. and poor labor-employer The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. Egypt continues to struggle with serious challenges related to macroeconomic stability. compared with 11. indicating high confidence in South Africa’s financial markets at a time when trust has been eroded in many other parts of the world. Lebanon’s inclusion into the GCR will provide a first step toward creating reform momentum in the country for the benefit of the population. and a welldeveloped financial sector. and has weathered the recent global economic turmoil relatively well. Sub-Saharan Africa Africa has experienced impressive growth over the past decade.6 percent of GDP in 2009 (6.31 Yet an assessment of the competitiveness of African economies raises questions about how sustainable this growth will be over the longer term and highlights areas in need of urgent attention to allow Africa to achieve its full economic potential. at 6. there have been some significant declines registered in countries that were previously making strides ahead. At the same time. Other strengths include efficient goods markets. where it achieves 7th place. sub-Saharan Africa as a whole lags behind the rest of the world in competitiveness. and telephony (128th). The regional ranking closes with Syria (97th) and Libya (100th). as well as a fragile macroeconomic environment characterized by poorly managed public finances. On the other hand. high undue influence (130th). the accountability of private institutions (3rd).2 percent. respectively). South Africa and Mauritius remain in the top half of the rankings. but. despite some improvements. South Africa still benefits from the large size of its economy. Yet the biggest challenges are associated with reforming the institutional environment related to both public institutions and corporate governance. benefiting from good scientific research institutions (ranked 29th) and strong collaboration between universities and the business sector in innovation (ranked 24th). which provides easy access to loans (36th) and other financial services (39th) and is buttressed by a solvent banking sector (4th). growth rates rebounded to 9 percent in 2008 and remained unaffected by the economic crisis in 2009. and there have been measurable improvements across specific areas in a number of other African countries. which stands out positively in regional comparison. Furthermore. with inflexible hiring and firing practices (135th). in order to further enhance its competitiveness it will need to address some weaknesses. although inflation has been rising from an already high level (16.8 percent in 2008). with a particular strength in math and science education. South Africa also does reasonably well in more complex areas such as business sophistication (38th) and innovation (44th). these were not exacerbated in a major way during the crisis. which corresponds to the 135th rank. and in the quality of primary education (12th). requiring efforts across many areas to place the region on a firmly sustainable growth and development path going forward. this excellent educational system should be put at the disposal of an even larger share of the population. particularly by regional standards (it is ranked 25th in the market size pillar). among others. and the budget deficit remained stable. reflecting a high intensity of local competition. remains the highestranked country in sub-Saharan Africa. following the downward trend of previous years. they face numerous challenges related to the inefficiency of their goods.macroeconomic environments (especially Libya). despite such concerns. Government debt has been reduced to about 80 percent of GDP. some African countries continue to fare quite well. Particularly impressive is the country’s financial market development (ranked 9th). labor. and goods market efficiency (40th). the lack of meritocracy in the labor market limits employment opportunities for young talent and is one of the factors that fuel a brain drain from the country. coming out of the crisis. The GCI results point to a number of strengths upon which Lebanon could build.1: The Global Competitiveness Index 2010–2011 the government is aiming at increasing women’s participation in the economy and has achieved some preliminary positive results in this respect. Although both countries have stable 39 . the country is affected by lack of transparency (129th). As in previous years. Lebanon ranks an excellent 16th for the quality of education. It also does well on measures of the quality of institutions and factor allocation. Indeed.

Namibia’s health and education indicators are worrisome. Goods (56th) and labor markets (55th) function fairly well. with high infant mortality and low life expectancy—the result in large part of the high rates of communicable diseases. The country is ranked a low 113th on the health subpillar. Another major concern remains the health of the workforce. as in much of the region. Improvements in these areas will enhance South Africa’s productivity and competitiveness. Health standards are also impressive compared with other sub-Saharan African countries. secondary. The country’s transport infrastructure is also excellent by regional standards (ranked 35th). Although Botswana falls to 76th place. Continuing to improve the health and education levels of the workforce remain the key priorities for improving Botswana’s competitiveness. Botswana’s primary weaknesses continue to be related to the country’s human resources base. and 30th for judicial independence. The rates of diseases remain very high (the rates of HIV. ranked 15th worldwide for the efficiency of government spending. strong judicial independence. placing the country 130th on this indicator). 88th. Rwanda benefits from strong and well-functioning institutions. it remains one of the four most competitive economies in the region. and an efficient government (ranked 29th). Educational enrollment rates remain low at all levels. particularly by today’s standards (ranked 40th). and the poor health of its workforce (life expectancy is only 50 years. up two places since last year. the same rank as last year. with effective auditing and accounting standards and strong investor protection. Labor markets are highly efficient. The country benefits from strong and transparent public institutions. although up by one place in a constant sample. there has been a deterioration in its macroeconomic environment. with clear property rights. and 135th. although on a positive note these rates are for the most part coming down. ranked 124th. Property rights are well protected (ranked 24th).1: The Global Competitiveness Index 2010–2011 40 relations (132nd). Among the country’s strengths are its reliable and legitimate institutions (32nd). The country benefits from a strong institutional environment (ranked 38th).1. air transport. and both have seen improvements since last year. With regard to weaknesses. On the educational side. and the quality of the educational system remains poor. However. Private institutions are rated as highly accountable and improving (ranked 14th). labor markets could be made more efficient. The business costs of crime and violence (137th) and the sense that the police are unable to provide protection from crime (104th) do not contribute to an environment that fosters competitiveness. dropping from 41st to 74th over the past year. the judiciary is perceived as independent from undue influence (23rd). both goods and financial markets are effective in allocating resources (ranked 31st and 29th. Further. financial markets are relatively well developed. respectively). on a par with countries such as France and Japan). particularly roads. requires upgrading (ranked 63rd) beyond what has been achieved in the preparations for the 2010 World Cup. with stringent hiring and firing laws (74th) and wages that are not flexibly determined (99th). Namibia could do more to harness new technologies to improve its productivity levels. Namibia remains in 74th place. and 114th for primary. and the educational system gets mediocre marks for quality. and tuberculosis are ranked 110th. Rwanda enters the GCI for the first time this year at 80th position. the result of high rates of communicable diseases and poor health indicators more generally. Efforts must also be made to increase the university enrollment rate of only 15 percent. enrollment rates remain low. Financial markets are well developed by international standards (24th). In addition. The country’s infrastructure is developed by regional standards. low secondary and university enrollment rates. efforts continue to be required in the area of education. respectively). In addition. although good by regional standards. South Africa’s infrastructure. and Rwanda is characterized by a high capacity for innovation for a country at its stage of development. malaria. in order to better develop the country’s innovation potential. Educational enrollment rates at all levels remain low by international standards (ranked 111th. As do the other comparatively successful African countries. 100th. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . with very low levels of corruption (certainly related to the government’s non-tolerance policy) and an excellent security environment. and there is strong public trust of politicians (30th). and tertiary enrollment. which places the country 99th overall. and fixed telephony. Botswana is characterized by extremely low levels of corruption (ranked 32nd overall. and the quality of the educational system receives mediocre marks. although there have been measurable improvements in the assessment of this area since last year. with low penetration rates of new technologies such as mobile phones and the Internet. 21st for public trust of politicians. with strong confidence in financial institutions. among the top five countries in the sub-Saharan African region. The greatest challenges facing Rwanda in improving its competitiveness are the state of the country’s infrastructure (especially electricity and telephony). Beyond the educational weaknesses.Yet it is clear that by far the biggest obstacle facing Botswana in its efforts to improve its competitiveness remains the health situation in the country. Mauritius is ranked 55th this year. While still better rated than in a number of industrialized countries. The country also continues to be characterized by good macroeconomic management. and directly following South Africa. The poor security situation remains another important obstacle to doing business in South Africa. respectively). ranked 127th out of 139 countries.

which is the low level of technological readiness in Tanzania (ranked 131st). Ghana is ranked 114th this year. the country is characterized by macroeconomic instability. On the other hand. The country’s performance remains quite stable and the change in rank is mainly related to other countries improving more quickly. the quality of the educational system requires upgrading. labor markets continue to be characterized by inefficiencies. ports. A large fiscal surplus has turned to deficit. Further. Infrastructure in the country is underdeveloped (ranked 128th). although gaining four positions in a constant sample. Supporting this innovative potential is an educational system that—although educating a relatively small proportion of the population compared with most other countries—gets relatively good marks for quality (56th) as well as for on-the-job training (58th). and the country credit rating places Nigeria 91st out of all countries covered. enrollment rates at the secondary and university levels are among the lowest in the world (ranked 131st and 136th. For example. with the government running high fiscal deficits and building up significant debt. Nigeria receives poor assessments for its infrastructure (135th) as well as its health and primary education levels (137th). education levels continue to lag behind international standards at all levels. Financial markets are also relatively well developed (ranked 60th). ranked 121st. with a high prevalence of communicable diseases contributing to the low life expectancy of just over 54 years and reducing the productivity of the workforce. with large and increasing concerns about corruption and aspects of government efficiency. the result of a weakening across many aspects of the Index. with very low uptake of ICTs such as the Internet and mobile telephony. undue influence. While the situation is therefore difficult. it is important to note that Nigeria also has a number of strengths on which to build its competitiveness. with poor health indicators and high levels of diseases such as malaria.1: The Global Competitiveness Index 2010–2011 Kenya (ranked 106th overall) has fallen four places this year. some aspects of the labor markets lend themselves to efficiency. respectively). Kenya’s key strengths continue to be found in the more complex areas measured by the GCI. and HIV. This relates to another area of concern. with high company spending on R&D and good scientific research institutions collaborating well with the business sector in research activities. with some cluster development companies that tend to hire professional managers and delegate decision-making authority within the organization. most notably in the assessment of the institutional environment and the country’s macroeconomic stability. In addition. However. as well as businesses that are sophisticated by regional standards (76th). the country is not harnessing the latest technologies for productivity enhancements. It is hoped that the reforms in the context of the new constitution will bring about improvements in several of these areas. and the country is not harnessing new technologies for productivity enhancements (ICT adoption rates are very low). and the prevalence of organized crime (123rd). falling by nine positions in a constant sample of countries included last year. The country benefits from a relatively large market (30th) providing its companies with opportunities for economies of scale. particularly ports (ranked 59th). with poor-quality roads. not counting the new countries that have entered the Index above it. particularly crime and violence (124th). The economy is also supported by financial markets that are well developed by international standards (27th) and a relatively efficient labor market (46th). with poor corporate ethics (125th) and weak auditing and reporting standards (130th) of particular concern.workforce is a serious concern. and with high interest rate spreads pointing to inefficiencies in the financial system. Finally. there are many areas that must be addressed in order to make Tanzania competitive. while the macroeconomic environment was previously the country’s greatest strength. Ghana continues to display strong public institutions and governance indicators with relatively high government efficiency. Health is an area of serious concern (ranked 122nd). Private institutions also receive a worsening assessment. Additionally. In addition. particularly by regional standards. the same position as last year. ethics and corruption. Nigeria has plunged in the rankings this year to 127th position. the basic health of the 41 . the potential of terrorism (133rd). as demonstrated by its low rates of ICT penetration. There has also been a measurable weakening in measures of Nigeria’s institutional environment. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. and electricity supply and few telephone lines. The security situation in Kenya is also worrisome. such as the high female participation in the labor force (ranked 6th) and reasonable taxation and redundancy costs. The security situation in the country continues to be dire (ranked 123rd). Some aspects of the country’s infrastructure are also good by regional standards. its ranking has gone from 20th last year all the way down to 97th this year. And although primary education enrollment is commendably high. In addition. Kenya’s innovative capacity is ranked an impressive 56th. the country is ranked 119th in this area. Tanzania benefits from public institutions characterized by reasonable public trust of politicians (ranked 62nd) and relative evenhandedness in the government’s dealings with the private sector (ranked 50th). tuberculosis. down from 102nd last year. Kenya’s overall competitiveness is held back by a number of factors. there has been a continued weakening in the assessment of its institutional environment. On the other hand. In addition. Indeed. Tanzania is ranked 113th. the interest rate spread has increased measurably. There are significant and increasing concerns about the protection of property rights. and government inefficiencies. providing universal access (13th).

when Belgium sells goods to the Netherlands. Specific areas of improvement are ethics and corruption (up from 122nd to 103rd).1: The Global Competitiveness Index 2010–2011 42 Zimbabwe continues to be among the lowestranked countries included in the GCI. Since its introduction in 2005. Rodrik and Rodriguez 1999. 21 Some restrictions were imposed on the coefficients estimated.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. 2 The first version of the Global Competitiveness Index was published in 2004. Weaknesses in other areas include health (ranked 135th in the health subpillar). where Zimbabwe continues to be among the lowestranked countries. the GCI provides a platform for dialogue among government. economic performance. The clear and intuitive structure of the GCI framework is useful for prioritizing policy reforms because it allows each country to determine the strengths and weaknesses of its national competitiveness environment and to identify those factors most constraining its economic development. Conclusions This chapter has discussed the results of the Global Competitiveness Index. China. 2005. the United Kingdom. W. Becker 1993. 3 Schumpeter 1942. Grossman and Helpman 1991. 10 See Aschauer 1989. Japan. the GCI has been used by an increasing number of countries and institutions to benchmark national competitiveness. Canada. 14 See Almeida and Carneiro 2009. and the United States. 20 Probably the most famous theory of stages of development was developed by the American historian W. Indonesia. and Feyrer 2009. 4 See. therefore. and Easterly 2002. while still weak. Rep. 5 See Easterly and Levine 1997. In other words. business. Notes 1 The G-20 economies include Argentina. increasing from 125th last year to 113th this year. with the aim of boosting living standards of the world’s citizens.. 9 See Kaufmann and Vishwanath 2001. India. countries that have competitive strengths in a variety of areas can be expected to exit the crisis faster and to rebound much more strongly. and civil society that can serve as a catalyst for productivity-improving reforms. On the other hand.1. which brought down inflation and interest rates—the situation continues to be bad enough to place Zimbabwe last out of all countries in this pillar (139th). 6 See de Soto 2000. although there have been some improvements in individual areas. 19 See Romer 1990. and Kremer 1993. France. The GCI aims at capturing the complexity of the phenomenon of national competitiveness. Australia. and Sala-i-Martin and Subramanian 2003. Acemoglu et al. 2002. which can be improved only through an array of reforms in different areas that affect the longer-term productivity of a country. 7 See de Soto and Abbot 1990. government inefficiency (up from 124th to 105th). Germany. while competitiveness is very much about a country’s development potential over the medium to long term. However. Mexico. Korea. The assessment of public institutions. Lucas 1988. it is important to bear in mind that economic crises are short term in nature and related to the business cycle. 11 See Fischer 1993. low educational enrollment rates. Saudi Arabia. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . These areas range from good governance and macroeconomic stability to the efficiency of factor markets. And despite efforts to improve its macroeconomic environment—including the dollarization of its economy in early 2009. the European Union. according to Trajtenberg (2005). but when California sells the same kind of output to Nevada. Frenkel and Romer 1999. 17 See Sachs and Warner 1995. for example. and innovation potential. and Swan 1956. technological adoption. Rostow in the 1960s (see Rostow 1960). 12 See Sachs 2001. Sala-i-Martin et al. Here we adapt Michael Porter’s theory of stages (see Porter 1990). Rodrik et al. Canning et al. among others. Alesina et al. the three coefficients for each stage had to add up to one. respectively). and official markets that continue to function with difficulty (particularly with regard to goods and labor markets. See Sala-i-Martin and Artadi 2004. Russia. 1994. Zingales 1998. the national accounts register the transaction as domestic (so Nevada is a domestic market of California). 2001. 18 This is particularly important in a world in which economic borders are not as clearly delineated as political ones. Examples of GPTs have been the invention of the steam engine and the electric dynamo. and Aghion and Howitt 1992. covering 139 economies from all of the world’s regions. More specifically. and Kaplan 2009 for country studies demonstrating the importance of flexible labor markets for higher employment rates and. For example. Turkey. 2004 for an extensive list of potential robust determinants of economic growth. Gramlich 1994. as their development is based on strong productivity fundamentals. 16 A general purpose technology (GPT). South Africa. 15 See Aghion and Howitt 1992 and Barro and Sala-i-Martin 2003 for a technical exposition of technology-based growth theories. has improved measurably. Please see Chapter 1. Italy. and the security situation (up from 85th to 66th). ranked fourth to last at 136th overall. 8 See Shleifer and Vishny 1997. some major concerns linger with regard to the protection of property rights (ranked 136th) and undue influence (126th). and all the weights had to be non-negative. is one which in any given period gives a particular contribution to overall economy’s growth thanks to its ability to transform the methods of production in a wide array of industries. 13 See Schultz 1961. Solow 1956. Amin 2009. ranked 130th and 129th. 2002. In the present context. Brazil. the national accounts register the transaction as an export (so the Netherlands is a foreign market of Belgium).

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” The Global Competitiveness Report 2007–2008. Cambridge.” The Rio Times. “Cross-Sectional Growth Regressions: Robustness and Bayesian Model Averaging. Rodriguez.org/pdf/Global_Competitiveness_Reports/ Benchmarking. “A Survey of Corporate Governance. T. August. “PAC: Growth Program Boosts in 2010. “Economic Reform and the Process of Economic Integration. Sachs.org/news/fullstory. “Innovation Policy for Development: An Overview.com/time/world/ article/0..8599. 51–80. 2001.. Blanke. V. 2002. 44 Rodrik. 1942. 1995. 1998. 1956. Paris: OECD. 2009. E. T. M.” Quarterly Journal of Economics 70 (February): 65–94. October. Available at http://www. I. World Economic Forum. and F.” Journal of Monetary Economics 22 (1): 3–42. 2009.time. and I. T. A.. and E. 2010. J. Capitalism.html. Geneva: World Economic Forum. Available at http://riotimesonline. 1990. Paua.” NBER Working Paper No.weforum. and F. Socialism and Democracy. J. M. and A. 1995. 2010. 2008. Drneziek Hanouz. G.” Mimeo. 2007. “Trade Policy and Growth: A Skeptics’ Guide to Cross National Evidence. August.1963355. “Corporate Governance. “Costa Rica’s Generational and Gender Changes. 2009.pdf.” Available at http://www. Macroeconomics and Health: Investing in Health for Economic Development: Report of the Commission on Macroeconomics and Health. “La emergencia de las multilatinas. 1997. R. D. Vishny. Schumpeter. K. 2007. 7081.” Brookings Papers on Economic Activity. A. 2003. J. “Endogenous Technological Change.” NBER Working Paper No. “The Global Competitiveness Index: Measuring the Productive Potential of Nations. Mia. Geneva: World Economic Forum. C. Geiger.” Nobel Symposium on Law and Finance. April. Trebbi. Santiso. 2009. Harvard University. “Economic Growth and Capital Accumulation. Shishiptorova. X. 3-57. 1950. “Brazil Announces PAC 2.” American Economic Review 1 (2): 1–17. Arruda. June.00. Miller.” Journal of Political Economy 98 (October): X71–S102. T. The New Palgrave Dictionary of Economics and the Law. P. 3–50. “Investment in Human Capital. and A. J.. Solow. Warner. Estrada. Development Centre. W. Zingales. Silva Araújo. M. Resende. February 10. Journal of Finance 52 (June): 737–83. New York: Macmillan. C. The Rio Times. and K. 31–39. W. Time.” The Global Competitiveness Report 2009–2010. and M.oecdobserver. “Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development. P. Lozoya Austin.” American Economic Review 94 (4) September. and R. 2004. Cambridge: University Press.” Revista de la CEPAL 95 (August): 8–30. Cambridge. Available at http://www.html. X. Trajtenberg. Romer. Tel Aviv University. 1990. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . 2009. J. Sala-i-Martin X. November 28–29. Subramanian. “A Contribution to the Theory of Economic Growth. Geiger. The Brazil Competitiveness Report 2009. I. Geneva: World Economic Forum.” Geneva: World Economic Forum. T. Swan. Artadi. “Interview Chile’s Economy. Reinhardt.com/news/ rio-politics/pac-brazils-growth-program-to-boost-in-2010/. 2005.com/news/rio-politics/ brazil-announces-pac-2/. Sala-i-Martin.. and R. 9804. Shleifer. Sala-i-Martin. L. Mia.. Geneva: World Economic Forum.” Paper prepared for American Economic Review Papers and Proceedings. 2009. 1956. 2004.” In P. Olson. OECD Observer. Latin American Economic Outlook 2010. 3rd Edition. “Addressing the Natural Resources Curse: An Illustration From Nigeria. W. Second Annual Meeting. a NonCommunist Manifesto. 2010.1: The Global Competitiveness Index 2010–2011 Lucas. Mia. R. 1961. J. Available at http://riotimesonline. Sala-i-Martin. “The Global Competitiveness Index: Contributing to LongTerm Prosperity amid the Global Economic Crisis. E.” The Global Competitiveness Report 2004–2005. Mia. Geneva: World Health Organization. 1988.” April. Porter. Rodrik. New York: The Free Press.” Paper prepared for LAEBA. Rogoff. M. Hampshire: Palgrave Macmillan. 2009. “The Global Competitiveness Index. Sachs. and F. MA: National Bureau of Economic Research. W. and T. Blanke. J. Padgett. “On the Mechanics of Economic Development. 1999. The Stages of Economic Growth. Hampshire: Palgrave Macmillan. Newman. “Benchmarking National Attractiveness for Private Investment in Latin American Infrastructure. ed. Rostow. D. Schultz. OECD (Organisation for Economic Co-operation and Development).1. Doppelhoffer. The Competitive Advantage of Nations. Subramanian. “Infrastructure: Will PAC Really Accelerate Growth?” The Brazil Competitiveness Report 2009. “Growth in a Time of Debt.php/aid/3246/ Interview_Chile_92s_economy. M. Drneziek Hanouz. New York: Harper & Row. X.. 1960. I. Geiger.” Economic Record 32 (2): 334–61. The Global Competitiveness Report 2009–2010. 1995 (1): 1–118. MA: National Bureau of Economic Research. Sala-i-Martin X.

. which preserves the order of................. Property rights ........ it depends on each country’s stage of development...........75% 1......................06 Government budget balance* National savings rate* Inflation* e Interest rate spread* Government debt* Country credit rating* The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 45 ........... Unless mentioned otherwise..d Finally.............21 Strength of investor protection* 2nd pillar: Infrastructure.01 Quality of overall infrastructure 2....20% 1... as discussed in the text..50% 1.03 Diversion of public funds 1......04 Public trust of politicians 1.. Ethics and corruption............. and variable 12.14 Business costs of crime and violence 1.05 3.......g..............19 Efficacy of corporate boards 1..13 Business costs of terrorism 1...06 Available seat kilometers* B.. but exact figures are used in the calculation of the GCI...04 Quality of port infrastructure 2........ Government inefficiency ..01 Property rights 1....20 Protection of minority shareholders’ interests 1.................. we use the percentage shown next to each category........ the weight placed on each of the three subindexes (basic requirements.....05 Irregular payments and bribes 1.....20% 1....... Accountability ....... and 9th pillars has changed this year following the adjustments made to the structure of the GCI...... Energy and telephony infrastructure...01 belongs to the 1st pillar.08 Wastefulness of government spending 1.. The computation of the GCI is based on successive aggregations of scores from the indicator level (i......01 3.......07 Quality of electricity supply 2...........18 Strength of auditing and reporting standards 1...... and the relative distance between..... a country in the third stage of development.... Unlike the case for the lower levels of aggregation.................04 3.................16 Reliability of police services B... the score achieved on the subpillar transport infrastructure accounts for 50 percent of the score of the infrastructure pillar.............. while it represents just 20 percent of the overall GCI score of Australia..... Weight (%) within immediate parent category BASIC REQUIREMENTS 1st pillar: Institutions....04 belongs to the 12th pillar)................... Similarly......................20% 1...a For the higher aggregation levels......25% 1........09 Burden of government regulation 1..... Private institutions ........... Public institutions......................10 Efficiency of legal framework in settling disputes 1.. Transport infrastructure.........02 Quality of roads 2....... For example.. This percentage represents the category’s weight within its immediate parent category.......25% 3. efficiency enhancers........... The Technical Notes and Sources section at the end of the Report provides detailed information about these indicators......... Instead.......05 Quality of air transport infrastructure 2........03 3.....07 Favoritism in decisions of government officials 4...b For instance...06 Judicial independence 1........ these variables are transformed onto a 1-to-7 scale in order to align them with the Survey results..........25% A...... Security . The numbering of the variables matches the numbering of the data tables...20% 1........12 Transparency of government policymaking 5..............................02 Intellectual property protection 1/2 2.. country scores............ Undue influence.......50% 1.50% 2. as discussed in the chapter...... In order to avoid double counting..25% A.... and innovation and sophistication factors) is not fixed....................................... Corporate ethics .. note that the numbering of variables in the 1st... 8th..................... we assign a half-weight to each instance......11 Efficiency of legal framework in challenging regulations 1.09 Mobile telephone subscriptions* 1/2 3rd pillar: Macroeconomic environment.............08 Fixed telephone lines* 1/2 2...............................This appendix presents the structure of the Global Competitiveness Index 2010–2011 (GCI)....... To make the aggregation possible....20% 1......1: The Global Competitiveness Index 2010–2011 Appendix A: Computation and structure of the Global Competitiveness Index 2010–2011 3..03 Quality of railroad infrastructure 2.....c Variables that are followed by the designation “1/2” enter the GCI in two different pillars....15 Organized crime 1....................... the most disaggregated level) all the way up to the overall GCI score......................02 3... The number preceding the period indicates to which pillar the variable belongs (e...... variable 1......50% 2................... Reported percentages are rounded to the nearest integer............... irrespective of the country’s stage of development. Variables that are not derived from the Executive Opinion Survey (Survey) are identified by an asterisk (*) in the following pages.......e. we use an arithmetic mean to aggregate individual variables within a category... the score a country achieves in the 9th pillar accounts for 17 percent of this country’s score in the efficiency enhancers subindex........17 Ethical behavior of firms 2... in the case of Benin—a country in the first stage of development—the score in the basic requirements subindex accounts for 60 percent of its overall GCI score...... We apply a min-max transformation.

......................04 Ease of access to loans 8... Foreign market size .07 Infant mortality* 4............50% 9.............................................07 Local supplier quantity Local supplier quality State of cluster development Nature of competitive advantage Value chain breadth Control of international distribution Production process sophistication Extent of marketing Willingness to delegate authority Reliance on professional management 1/2 A.........07 7.........) 4th pillar: Health and primary education ......06 Internet access in schools C.. Flexibility ..........09 Mobile telephone subscriptions* 1/2 10th pillar: Market size ...........02 Foreign market size index* k INNOVATION AND SOPHISTICATION FACTORS 11th pillar: Business sophistication.1: The Global Competitiveness Index 2010–2011 Appendix A: Computation and structure of the Global Competitiveness Index 2010–2011 (cont’d..04 11....02 Tertiary education enrollment rate* 46 B...........04 Quality of math and science education 5.................02 Affordability of financial services 8.............01 Business impact of malaria f 4.....04 Extent and effect of taxation 1/2 6......variable h 6................ Domestic market size.......... Quality of demand conditions .......09 Rigidity of employment* Hiring and firing practices Redundancy costs* Extent and effect of taxation 1/2 use of talent .17% A.............04 7....50% Pay and productivity Reliance on professional management 1/2 Brain drain Female participation in labor force* 8th pillar: Financial market development .......................12 Business impact of rules on FDI 6.................07 11......04 Internet users* 9...............17% A...25% A........................06 11....09 Prevalence of trade barriers 6..................11 Prevalence of foreign ownership 6.....08 Extent of staff training 6th pillar: Goods market efficiency .08 Fixed telephone lines* 1/2 2.17% A..09 7...............06 Number of procedures required to start a business* i 6...........09 Quality of primary education 4......................................03 Financing through local equity market 8.............................25% 10........05 Quality of management schools 5..........03 Effectiveness of anti-monopoly policy 6....06 7...........01 Intensity of local competition 6............07 Time required to start a business* i 6........05 6..........................50% 11. Primary education .......01 Domestic market size index* j B.50% 9...33% 5......... Efficient 7.......02 11....08 7............... Foreign competition........17% A.........................01 11..........07 Local availability of specialized research and training services 5..........02 Extent of market dominance 6.......50% 4............05 Total tax rate* 6....................................17% 7.......................10 Primary education enrollment rate* g EFFICIENCY ENHANCERS 5th pillar: Higher education and training .... ICT use ........06 HIV prevalence* f 4. Domestic competition ..50% 8..67% 1..........33% 6............................. Efficiency ..........06 Restriction on capital flows B......01 Availability of financial services 8.10 Trade tariffs* 6..............07 Soundness of banks 8.......01 Secondary education enrollment rate* 5..04 B...06 Internet bandwidth* 2...........1................05 Venture capital availability 8......14 Degree of customer orientation 6...13 Burden of customs procedures 10.............09 Legal rights index* 9th pillar: Technological readiness.04 Imports as a percentage of GDP* g B...........................................01 Cooperation in labor-employer relations 7.. Technological adoption.....50% 7................05 11............ Health.02 Firm-level technology absorption 9.50% 4............17% A.........08 Life expectancy* B. Competition ....... Trustworthiness and confidence ......................03 Quality of the educational system 5..variable h 6........ Quantity of education .08 Agricultural policy costs 2........03 7.........05 Business impact of HIV/AIDS f 4.04 Tuberculosis incidence* f 4............03 Business impact of tuberculosis f 4..............03 11...33% 5..) ....75% 10............................08 Regulation of securities exchanges 8..............50% 8.02 Flexibility of wage determination The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum (Cont’d..01 Availability of latest technologies 9.03 FDI and technology transfer B.....15 Buyer sophistication 7th pillar: Labor market efficiency .......08 11. On-the-job training ...02 Malaria incidence* f 4......05 Broadband Internet subscriptions* 9... Quality of education ...........33% 5....................

.02 12.06 Availability of scientists and engineers 12. while foreign competition is equal to imports (M)... country scores for those groups are computed as follows: (sum of scores on full-weight variables) ⫹ (count of full-weight variables) ⫹ 1.. and 10.1: The Global Competitiveness Index 2010–2011 Appendix A: Computation and structure of the Global Competitiveness Index 2010–2011 (cont’d. The underlying data are reported in the data tables.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... 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.03.g.) ⫻ (sum of scores on half-weight variables) ⫻ (count of half-weight variables) e In order to capture the idea that both high inflation and deflation are detrimental.. Data are then normalized on a 1-to-7 scale. regardless their scores on the related Survey question. 10..12th pillar: Innovation.. g For this variable we first apply a log-transformation and then a min-max transformation. the weights are the following: FactorEfficiency. for a category i composed of K indicators.. The inverse of this ratio is then multiplied by each country’s score on the related Survey question.. a country receives the highest possible score of 7. j The size of the domestic market is constructed by taking the natural log of the sum of the gross domestic product valued at purchasing power parity (PPP) plus the total value (PPP estimates) of imports of goods and services. For those indicators for which a higher value indicates a worse outcome (e....06 and 6.... respectively.. minus the total value (PPP estimates) of exports of goods and services..... PPP estimates of imports and exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP. tuberculosis. government spending (G). we have: (country score – sample minimum) 6 x + 1 (sample maximum – sample minimum) The sample minimum and sample maximum are..05).. government debt).04 12. Domestic competition is the sum of consumption (C).. + 7 (sample maximum – sample minimum) d For those categories that contain one or several half-weight variables. the transformation formula takes the following form..07 Utility patents* 1. the included variables provide an indication of the extent to which competition is distorted.. This interaction between the domestic market and the foreign market is captured by the way we determine the weights of the two components... and HIV/AIDS on competitiveness depends not only on their respective incidence rates but also on how costly they are for business.07 combine to form one single variable.. i Variables 6.. and exports (X). normalized on a 1-to-7 scale. The underlying data are reported in the data tables section (see Tables 10. In some instances.5 and 2. we have: K S indicatork categoryi 5 k=1 K b As described in the chapter. we combine its incidence rate with the Survey question on its perceived cost to businesses..9 percent. investment (I)... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 47 . disease incidence.. Therefore. scores decrease linearly as they move away from these values.03 12. inflation enters the model in a U-shaped manner as follows: for values of inflation between 0.. k The size of the foreign market is estimated as the natural log of the total value (PPP estimates) of exports of goods and services. adjustments were made to account for extreme outliers..50% 12. Notes a Formally. Note that countries with zero reported incidence receive a 7.. The relative importance of these distortions depends on the relative size of domestic versus foreign competition. respectively: –6 x (country score – sample minimum) h The competition subpillar is the weighted average of two components: domestic competition and foreign competition. PPP estimates of exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP... the lowest and highest country scores in the sample of economies covered by the GCI. thus ensuring that 1 and 7 still corresponds to the worst and best possible outcomes.04...Innovationdriven driven driven stage (%) stage (%) stage (%) Weights Basic requirements 60 40 20 Efficiency enhancers 35 50 50 5 10 30 Innovation and sophistication factors c Formally. 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.01 12. In both components.. This product is then normalized to a 1-to-7 scale... Outside this range..02 Intellectual property protection 1/2 f The impact of malaria... in order to estimate the impact of each of the three diseases.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

Loi for their collaboration in the analysis. Garrouste and M. which was carried out on the 2009–2010 GCI data. These include data quality. The univariate analysis is a detailed statistical analysis carried out indicator by indicator and focuses on the presence of missing data. outliers. indicator importance. European Commission Joint Research Centre Attempting to summarize complex concepts such as competitiveness in a single metric or index raises a number of empirical challenges. aggregation. and the impact of asymmetric distributions (skewness) on the Index. weighting. In other cases. The robustness analysis of an index is therefore an essential ingredient for validating the significance of its messages. These elements have been taken into We are grateful to our colleagues C.MICHELA NARDO.1 The Joint Research Centre (JRC) assessment analysis of the Global Competitiveness Index (GCI) addresses two key questions: 1. It could allow for comparisons across space and time by providing the technical ability to monitor change and identify problems.2 PCA has been applied at the pillar level to compare the number of relevant latent factors with the number of subpillars (a top-down analysis). European Commission Joint Research Centre PAOLA ANNONI. and at the subpillar level to identify a unique relevant latent dimension (a bottom-up analysis). the analysis. indicator selection.1: The Global Competitiveness Index 2010–2011 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index 1. the analysis suggests a redundancy in the subpillar division. For some pillars. Overall. some indicators are found to be statistically unrelated to the rest of the indicators populating the pillar. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 49 . This means that they may be describing aspects other than the one represented by most other indicators included in the pillar. and so on. the analysis of statistical quality of the Index has been carried out through univariate and multivariate statistical analyses. If done well. the exercise could yield a powerful tool capable of capturing the societal conditions that drive national competitiveness. What is the role of the weighting scheme based on the development stage of each economy? Is there a way to assess the importance of each pillar in shaping the GCI results? With regard to the first objective. and could contribute to priority setting and policy formulation. Is the Index internally sound and consistent from a statistical point of view? 2. For the multivariate analysis. principal component analysis (PCA) has been used to assess the consistency of the GCI framework in terms of the number of pillars/subpillars and the adequacy of indicators in describing each pillar. confirms the GCI structure with few exceptions.

for any given element (country. Sweden. efficiency enhancers. all economies are classified into three main development stages in the uncertainty analysis.). others are driven by statistical analysis. we decided not to explore all uncertainties in order to check their simultaneous and joint influence on the final score. the top performers—Switzerland. the most unstable countries are located in the middle-to-low area of the competitiveness ladders: these countries are characterized by very similar scores. The complexity of the GCI would indeed have made it difficult to disentangle influential factors and fully understand the implication of their variability. some of them considered crucial. . The OWA method consists of a family of operators that. In particular.. which is considered critical for the results of the GCI. First. which assessed the GCI robustness with respect to its weighting scheme. originally proposed by Yager (1988 and 1996). mathematical simplicity.) account by the World Economic Forum in the formulation of the 2010–2011 GCI release. Compensability is present within the GCI given its linear structure.. among other elements. As expected. Consider. for example. wk}: k fOWA(x1. Some of these choices are subjective. is applied to the GCI. Burkina Faso. or common practice. The median rank difference is in black while the boxes represent the interquartile range of the distribution (25th and 75th percentiles). x1. and Burundi—remain the same. {x(1). . The dispersion around the median is lower for economies in development stage 3 than for the others. Alternative scenarios have been simulated: (1) to evaluate the compensability effect intrinsically embedded in the linear structure of the GCI. . the United States. This exercise was used to test the weighting scheme at subindex level (basic requirements. comprised of the first four pillars.200 Monte Carlo simulations. . the GCI robustness analysis focused on some critical key points and checked the overall influence of each of them on the Index. might affect the final score and ranking of the index. x2.1: The Global Competitiveness Index 2010–2011 50 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index (cont’d. a Monte Carlo experiment was used to assess the impact of assigning different weights to the GCI subindexes according to the development stage of each country. Mali.. At the extreme ends of the ranking there are two groups of very stable countries: regardless of the weights they are assigned. the final index is the outcome of a number of choices: the framework (usually driven by theoretical models and experts’ opinions). Zimbabwe. the weights assigned to each indicator. B2. . map a set of (k) real values {x1. region. . The aim of the robustness analysis is to assess to what extent all these choices. OWA operators are not weighted averages since the set of weights depends only on the i-th ordered position of the indicators. and the aggregation method. OWA operators embed many different types of aggregations depending on the set of weights wi. Denmark. . which intrinsically embeds the possibility of offsetting a disadvantage in some pillars by a sufficiently large advantage in others. indicators observed for that element—into a single index depending on a set of weights {w1. x(k)} is the series of xi values reordered in descending order. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . w2. Instead. and B3 show the main outcomes of the 1.3 In the case of the GCI. . other tests have been carried out to examine the GCI under different conditions. the distributions of the rank differences between the GCI and that based on our simulated weights (henceforth termed the simulated GCI) are plotted country by country. so that even a small variation in their score causes a comparatively large variation in their rank. the basic requirements subindex. and the relevant adjustments to the model are described in the main text of this chapter. In every composite indicator analysis.1] i=1 ∑w 5 1 i i=1 where x(i) is the i-th largest xi—that is. and Finland—and the bottom performers—Timor-Leste. Together with the classical uncertainty analysis. individual. Although it is generally difficult to quantify the level of compensability (comparisons with fully non-compensatory multi-criteria methods should be necessary). Countries in transition from one stage to the next were assigned the closest higher or lower development stage. Figure B4 shows the median rank (blue dot) and the 90 percent confidence interval across all the Monte Carlo simulations for all the countries reordered from best to worst according to their GCI rank (black line). Mozambique. Chad. xk) 5 ∑w x i (i) k wi ∈ [0. . Figures B1. the ordered weighted averaging (OWA).. . For each development stage. In absolute terms we find only 7 volatile countries out of an overall sample of 133 countries considered in the GCI 2009–2010.4 For technical reasons. x(2).. xk}—that is. No particular volatility affects the GCI on average: the median absolute shift of a country ranking is smaller than eight positions for all countries. thus implying full compensability among indicators. (2) to test the assumption of smooth transitions in the definition of development stages. The second objective is addressed by a detailed robustness analysis. their normalization. . and (3) to assess whether the pillars play a balanced role in the GCI framework.. Mauritania. The robustness assessment of the GCI consisted of different steps.5 This offsetting might not be always desirable when dealing with fundamental aspects of a concept such as competitiveness. Singapore. operator f(or) assigns to each country the highest indicator value. and innovation and sophistication factors). the indicators to be included.1. . experts’ opinions. .

) 0 –10 –20 –30 Maximum median value: +8 Minimum median value: –1 –40 Countries Sources: European Commission Joint Research Centre.1: The Global Competitiveness Index 2010–2011 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index (cont’d. countries in development stage 2 40 GCI 2009–2010 rank – simulated rank 30 20 10 0 –10 –20 –30 Maximum median value: +4 Minimum median value: –8 –40 Countries Sources: European Commission Joint Research Centre. World Economic Forum. countries in development stage 1 40 GCI 2009–2010 rank – simulated rank 30 20 10 1.Figure B1: Uncertainty analysis and GCI rank robustness. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . 2009. World Economic Forum. 2009. 51 Figure B2: Uncertainty analysis and GCI rank robustness.

1: The Global Competitiveness Index 2010–2011 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index (cont’d. World Economic Forum. countries in development stage 3 40 Maximum median value: +8 Minimum median value: –6 30 GCI 2009–2010 rank – simulated rank 1. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . Figure B4: Robustness analysis: Median GCI ranks and confidence intervals 1 9 GCI 2009-2010 rank and interval of simulated ranks 52 Median rank — GCI 2009–2010 rank 17 25 33 41 49 57 65 73 81 89 97 105 113 121 129 133 Countries Sources: European Commission Joint Research Centre.Figure B3: Uncertainty analysis and GCI rank robustness.) 20 10 0 –10 –20 –30 –40 Countries Sources: European Commission Joint Research Centre. World Economic Forum. 2009. 2009.

54 2.3 0.60 2.6 2. On the contrary.Table B1: Shift of scores and ranks for countries in transition DEVELOPMENT STAGE Stage 1 Country 1. Figure B6 shows results in terms The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 53 .1 –1. World Economic Forum.1 –3.7 –4.24 2.0 –3. Table B1 shows results for countries in the first transition stage.9 1.7 –0.3 percent with respect to the baseline scenario (higher weight is assigned to the pillars where this country is stronger) and the country would gain three positions in the global ranking.90 1.95 Algeria Egypt Libya Indonesia Kuwait Botswana Brunei Darussalam Azerbaijan Venezuela Paraguay Morocco Saudi Arabia Syria Guatemala Jamaica Georgia Kazakhstan Qatar Score (%) –0.3 1.2 0 0.8 –1.0 –1. A simple scenario has been set up for an ex post test of this assumption.54 1.7 4.25 1.8 0.1 –0. between stage 2 and 3 (right-hand side).3 3. On the contrary.4 –2.6 2.94 1. computed with the reference set of weights.1 0.16 1.1 –3.1 –2. implying no compensability at all: all aspects must be satisfied in order to be “good” and.2 –2. For almost all countries.75 1.1 5.93 1.3 –1.4 1. the distinct contribution of the pillars to the final scores and ranks is assessed.1 4. In terms of ranking.60 1.14 2.”6 Finally.3 –2. between stage 1 and 2 (left-hand side).8 –0.82 2.7 –0. This indicates that the results are clearly in line with the GCI intention.7 –1.2 0. operator f(and) assigns to the country its lowest score. the shift in score (with respect to the reference score) is negative when assigning weights of the lower stage and positive when assigning weights of the higher stage.7 –3.43 1. meaning that best performers have high scores in almost every aspect of competitiveness.5 4.18 2. “are not preparing for the next stage.24 1.1 –0.7 3 3.8 –4.76 1.14 2.39 1. if we assign to Algeria the weights of stage 1. indicating that countries in the first development stage are more affected by compensability within each pillar group. This is implicitly equivalent to the optimistic criterion.8 DEVELOPMENT STAGE Stage 2 Rank 3 1 7 0 6 2 6 7 5 2 11 4 9 1 0 5 2 8 Score (%) 6. 2009. reflected by their weight values—are expected to score higher in the different dimensions of the GCI.46 2. Countries that are in between two of the three major stages are assigned a set of weights that gradually change as a country moves to the more advanced stage.5 2.83 Romania Uruguay Chile Mexico Turkey Oman Russian Federation Bahrain Barbados Poland Lithuania Latvia Hungary Croatia Score (%) –0. are the least affected by compensability.6 Stage 3 Rank 0 1 0 3 0 8 6 8 3 2 10 11 13 15 Score (%) 3.5 –0. for a total of 12 simulations.1 1.7 1 Rank –15 –23 –10 –10 –7 –12 –11 –5 –11 –7 –2 –11 –2 –7 1. the highest-ranked countries. in this sense.4 2. where the satisfaction of at least one aspect is enough.04 2.85 1. with only a few exceptions. The shift in country score and rank (difference between GCI and the modified GCI) is computed for each country in transition by assigning them the weights of the adjacent lower and higher stage. Results are shown in Figure B5 where separate pictures are displayed for the three development stages. All weights are set back to their reference values and country scores and ranks are computed by discarding one pillar at a time. The higher the difference between the values of f(or) and f(and).05 1.47 1.54 1.35 2.75 2.6 Stage 2 Rank –14 –8 –7 –1 –3 –13 –9 –4 –1 –1 –6 –1 –2 –3 1 –1 –1 1 The operator f(or) would be the best value each country scored within the four pillars.1: The Global Competitiveness Index 2010–2011 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index (cont’d. This reproduces the smooth transition from a lower stage of development to the upper level. its score would increase by 0. this is equivalent to the most restrictive approach.9 0.5 0.75 1. most of the countries would gain positions if assigned the weights of the adjacent lower-development stage and would lose positions if assigned the weights of the adjacent higher-development stage.3 –0.7 –1.3 0. implying that countries possessing the economic capacity to perform better— Country 2.1 0. having the capacity.4 0.2 –1.6 1.15 2.64 2.4 –1. and in the second transition stage. For instance.2 3.6 –4.1 –4. f(and) would be the worst value each country scored within the four pillars.8 –1.8 –4. namely to gradually penalize countries that.8 1. In between lies the reference GCI. The three graphs show that the width of error bars tends to decrease as the development stage increases.) Sources: European Commission Joint Research Centre. In our example.6 –2. the higher the compensability effect for that country. One of the distinctive characteristics of the GCI is the introduction of transition development stages.

World Economic Forum.Figure B5: Ordered weighted averaging analysis Figure a: Countries in development stage 1 f (or) GCI 2009–2010 score and interval of simulated scores 1.17 1 Countries Figure b: Countries in development stage 2 54 GCI 2009–2010 score and interval of simulated scores 7 6 5 4 3 2 1 Maximum bar width: 2.05 Minimum bar width: 1. 2009.68 Countries Figure c: Countries in development stage 3 GCI 2009–2010 score and interval of simulated scores 7 6 5 4 3 2 1 Maximum bar width: 2.1: The Global Competitiveness Index 2010–2011 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index (cont’d.57 Minimum bar width: 0.51 Countries Sources: European Commission Joint Research Centre.38 Minimum bar width: 0.) 7 GCI score 6 f (and) 5 4 3 2 Maximum bar width: 3. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

Kent J. infrastructure. Tarantola. CA: Academic Press. References Mardia K. Handbook on Constructing Composite Indicators: Methodology and User Guide. Drzeniek Hanouz.ec. M.” IEEE Trans Syst. Yager. Berlin Heidelberg: Springer-Verlag. Saisana. Notes 1 More information on robustness analysis applied to composite indicators can be found in http://composite-indicators. 1979. wide coverage of different countries. Man.” International Journal of Intelligent Systems 11 (1): 49–73. London and San Diego. on average. 2 Mardia et al. Saltelli et al. ———. 1996. V.eu/ . Blanke. and Bibby J. and market size—belong to the basic requirements subindex. 1988. T. 4 The weighting scheme at the pillar level has been tested by comparing the GCI weighting structure with weights derived using principal component analysis. 6 Sala-i-Martin et al.) Figure B6: GCI framework balance of pillars: Rank differences GCI 2009–2010 rank – simulated rank 25 20 15 10 5 0 –5 –10 –15 –20 Innovation Business sophistication Market size Technological readiness Financial market development Labor market efficiency Goods market efficiency Higher education and training Health and primary education Macroeconomic environment Infrastructure Institutions –25 55 Sources: European Commission Joint Research Centre. meaning that the maximum shift of country rank is up to 5 positions in 75 percent of the times. R. 5 Munda 2008. Almost all of the most influential pillars— institutions. Paris: OECD.” The Global Competitiveness Report 2009–2010. “On Ordered Weighted Averaging Aggregation Operators in Multicriteria Decisionmaking. The black line is the median rank difference across all countries and the boxes include 75 percent of the cases. “Quantifier Guided Aggregating Using OWA Operators. of rank differences (score differences are reported in Box 2. 1979. 3 OECD 2008. Geneva: World Economic Forum.1: The Global Competitiveness Index 2010–2011 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index (cont’d. Gatelli. Social Multi-Criteria Evaluation for a Sustainable Economy. J. and I. 2008. the GCI proved to be robust and consistent. the Index draws a reliable picture of national competitiveness and represents a well-balanced plurality of different fundamental aspects. The entire distribution of the score differences is displayed by the vertical lines. and complex weighting scheme. p. Andres. Saltelli A. Cybern 18 (1): 183–90... health and primary education. Figure 2). all the pillars contribute in a balanced way to the overall GCI score. 1. Cariboni.. G. 2008. Chichester. All the boxes are well between the band –5 and +5. 2009. T. europa. and S. 2008.jrc. Sala-i-Martin. D. Despite its multifaceted structure. Campolongo. Overall. Geiger. J. Munda. OECD (Organisation for Economic Co-operation and Development). M.. Mia. This confirms that. Global Sensitivity Analysis: The Primer. 2009. macroeconomic environment. Multivariate Analysis. England: John Wiley & Sons. Ratto. “The Global Competitiveness Index 2009–2010: Contributing to Long-Term Prosperity amid the Global Economic Crisis. F. M. World Economic Forum. T. R. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . X.1. 2009. 3–47. M. 2008. and with equal weighing.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

as well as the re-instatement of Moldova. a total of 13. World Economic Forum The Global Competitiveness Report remains the most respected assessment of national competitiveness. which represent over 98 percent of the world’s gross domestic product. Rwanda. VII. World Economic Forum THIERRY GEIGER. achieving this year a record of over 15. Following the editing process (see below). Given the extent of the Survey’s coverage and in order to maximize its outreach. It has also expanded the scope of its sample. For a portrayal that represents the reality as accurately as possible. Suriname is not included because of the lack of Survey data. Seven new economies are included in this edition. This year. and Lebanon.2: The Executive Opinion Survey CHAPTER 1. IV. the Islamic Republic of Iran. as well as how it compares with the situation in other countries. it is translated into over 20 languages.2 57 . the World Economic Forum draws its data from two sources: international organizations and national sources. the Report covers 139 economies where the Survey was administered and where a large enough sample was collected for inclusion.607 surveys were retained. and Swaziland). The World Economic Forum has conducted its annual Survey for over 30 years. with four new African countries (Angola.1 However. Survey structure and methodology The Survey is divided into 13 sections: I.The Executive Opinion Survey: The Business Executives’ Insight into their Operating Environment CIARA BROWNE. II. The Survey is a one-of-a-kind tool for capturing timely and vital information that is not available on a global level. About Your Company Overall Perceptions of Your Economy Government and Public Institutions Infrastructure Innovation and Technology Financial Environment Domestic Competition The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. VI. providing a mirror image of a nation’s economic environment and its ability to achieve sustained levels of prosperity and growth. and it has evolved over time to capture new data points essential to the Global Competitiveness Index (GCI) and other Forum indexes. and the Forum’s Executive Opinion Survey (Survey). the first competitiveness report using survey data covering just 16 European countries was launched. III.000 surveys from 139 economies between January and May 2010. Cape Verde. Geographic expansion In 1979. while the median country sample size is 87 responses. This represents an average of 98 respondents per country. Table 1 shows key attributes of the Survey respondents for the 2010 dataset. The data gathered thus provide a unique source of insight and a qualitative portrait of each nation’s economic and business environment. V. this year. The Report covers economies from all the world’s regions (see Figure 1 for details).

1. The Partner Institutes are. recognized economics departments of .....means your opinion is indifferent between the two answers Circling 5.. Most questions in the Survey ask respondents to evaluate.means you somewhat agree with the right-hand side Circling 6.means you somewhat agree with the left-hand side Circling 4....means you largely agree with the right-hand side Circling 7... some less relevant questions are regularly dropped. Health Every year. Travel & Tourism XII. 1 represents the worst possible situation.means you agree completely with the answer on the left-hand side Circling 2... one particular aspect of their operating environment. at the other end of the scale. However.. This year. At one end of the scale. Corruption. and Social Responsibility XI. for the most part.. the Forum’s Centre for Global Competitiveness and Performance works closely with a network of over 150 Partner Institutes that Box 1: Example of a typical Survey question To what extent is the judiciary in your country independent from influences of members of government.... on a scale of 1 to 7. In order to achieve a sample of sufficient size to be included in the dataset.. They are chosen because of their capacity to reach out to leading business executives as well as their understanding of the national business operating environment.2: The Executive Opinion Survey Figure 1: Country/economy coverage of the Executive Opinion Survey ■ Previous coverage ■ 2010 additions 58 VIII.means you agree completely with the answer on the right-hand side administer the Executive Opinion Survey in their respective countries. Company Operations and Strategy IX. Environment XIII. the Survey did not undergo any major change. or firms? Heavily influenced < 1 2 3 4 5 6 7 > Entirely independent Circling 1. Ethics.. 7 represents the best (see Box 1 for an example).. citizens. In order to keep the Survey as short as possible.. the set of questions is updated to reflect changes to the structure of the Forum indexes and meet the need for new data.means you largely agree with the left-hand side Circling 3. Education and Human Capital X. a few new questions were added to draw a more accurate picture of the quality and degree of development of a country’s financial environment in light of the recent crisis as well as to capture the rapid evolution taking place in the areas of technology and innovation.

and in view of reducing survey bias. a multivariate outlier analysis is applied to the data using the Mahalanobis distance technique. The Partner Institutes also take an active and essential part in disseminating the findings of the various reports published by the Centre for Global Competitiveness and Performance by holding events and press conferences to explain the results at the national level.1. This year. The first editing rule consists of excluding those surveys with a completion rate inferior to 50 percent. the data are also used for regional studies. Based on these lists. The Global Enabling Trade Report. Data treatment and score computation This section details the process whereby individual Survey responses are edited and aggregated in order to produce country scores. cultural preferences. Who else uses the Executive Opinion Survey? The Survey data used for the calculation of the GCI as the backbone of The Global Competitiveness Report is also used as a prime data source for the Forum’s other industry-specific projects. given the overall sample of survey responses in the specific The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. the Forum encourages the use of the online Survey administration. the Executive Opinion Survey data have long served a number of international and national organizations. the sampling guidelines specify that the Partner Institute should aim to collect a combination of random respondents with some repeat respondents for further comparative analysis. with the consultation of an internationally renowned survey consultancy and in collaboration with the World Economic Forum and the Institute of Strategy and Competitiveness at the Harvard Business School. independent research institutes. government bodies. manufacturing industry. The Gender Gap Report. the data are used for the elaboration of the renowned Corruption Perceptions Index and the International Bribe Payers Index published by Transparency International as well as a number of academic publications. and a version administered online as an alternative. Iceland. mailed or telephone interviews. and Venezuela used the online system exclusively. To this end. non-manufacturing industry. whether by the policymaker or the business executive. feed into the Global Competitiveness Index (GCI) and other projects.5 Furthermore. Israel.2 This valuable collaboration helps to ensure that the Survey is conducted in a consistent manner across the globe. an increasing number of national competitiveness reports that make use of or refer to the Survey data are being published worldwide. The further dissemination outreach allows the Report’s findings to be used as a tool for improving the competitiveness outlook in each country. and services).2: The Executive Opinion Survey national universities. choose a random selection of these firms to receive the Survey. distance. 2. The Survey sampling follows a dual stratification based on the size of the company and the sector of activity. The share of online participation has significantly increased over the years and now represents 30 percent of all responses. or business organizations.4 3. the online version of the instrument was available in 13 languages. The improved sampling guidelines have now been adopted in all countries for the last three rounds of the Survey process.” or large list of potential respondents. Online responses account for more than 50 percent of the sample in 38 countries and for 90 percent or more in 20 countries. Separate the frame into two lists: one that includes only large firms. and cost considerations.3 Specifically. together with other indicators obtained from other sources. Respondents in Estonia. These results. and privatesector companies for their policy or strategy review. which includes firms representing the main sectors of the economy (agriculture. The administration of the Survey may take a variety of forms. including The Global Information Technology Report. The Travel & Tourism Competitiveness Report. Georgia. and a second list that includes all other firms (both lists representing the various economic sectors). and in order to obtain a representative and comparable sample of Survey respondents from each economy.6 Data editing The collected respondent-level data are subjected to a careful editing process. These include face-to-face interviews with business executives. time. This process underwent a stringent review in 2008. Deciding which of these differing methodologies to use may be based on the particular country’s infrastructure. For energy. In a second step. and other such issues. and The Financial Development Report. Finally. Furthermore. up from 27 percent last year and 19 percent in 2008. Prepare a “sample frame. implementing a best practice procedure and thus ensuring greater data accuracy and allowing for more robust comparison across economies. Every year. academia. For example. the Partner Institutes are each year required to follow a detailed set of sampling guidelines.7 This is because partially completed surveys likely demonstrate a lack of sufficient focus on the part of the respondent. This test assesses whether each individual survey is representative. the Survey sampling guidelines ask the Partner Institutes to carry out the following steps: 59 .

000 5.001– 5. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.000 No response 26 62 2 30 22 40 21 8 39 27 42 21 13 4 30 24 18 26 37 37 17 20 20 21 9 7 30 21 38 29 17 22 35 33 22 82 63 32 54 31 27 32 17 17 16 16 55 21 27 17 41 17 36 36 30 26 34 11 53 12 34 4 34 50 25 19 28 31 17 22 0 5 0 1 16 9 0 23 0 9 11 42 5 0 5 3 0 13 5 20 0 2 14 3 6 1 1 10 15 11 10 4 19 22 20 11 0 0 29 14 4 4 5 7 2 6 0 3 9 11 1 18 12 14 4 0 5 7 14 10 15 6 1 23 7 10 6 19 6 3 14 4 0 31 1 18 6 8 25 26 14 19 0 27 0 0 7 0 21 0 3 5 0 12 49 31 1 0 18 23 2 3 1 7 4 6 4 0 18 27 6 1 15 30 17 0 2 22 3 34 23 0 8 7 23 2 25 8 5 13 4 16 15 28 10 5 6 13 3 5 2 7 0 0 0 0 10 0 7 2 0 0 7 0 7 0 0 2 0 13 0 1 0 0 0 0 5 0 0 10 5 3 7 0 6 0 0 3 16 0 1 0 0 3 0 8 0 0 4 0 9 1 2 0 7 0 0 25 4 0 0 0 3 0 21 0 0 4 7 5 0 2 2 0 0 0 0 3 0 1 0 0 1 6 0 0 0 0 0 0 12 0 0 0 0 0 1 7 0 0 4 9 0 0 0 0 0 3 0 0 0 0 0 0 0 0 37 0 0 17 0 0 0 0 0 0 4 0 8 4 0 0 0 34 0 38 0 0 0 5 3 0 0 0 0 0 0 0 0 2 0 0 0 1 3 0 0 0 0 0 0 1 0 1 5 0 4 1 0 0 2 0 0 2 0 0 6 0 0 0 0 0 0 0 0 2 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 2 1 3 0 2 0 0 0 0 0 6 (Cont’d. Rep.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .000 1. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran. Islamic Rep.2: The Executive Opinion Survey 60 Table 1: Distribution of respondents to the Executive Opinion Survey 2010 by country and firm size Sample size Country/Economy Albania Algeria Angola 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 Cape Verde 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. Kuwait Kyrgyz Republic Latvia Lebanon Lesotho Count* 85 30 33 104 78 45 80 70 91 89 39 76 91 55 100 104 168 111 115 39 84 79 71 90 106 130 84 362 195 42 97 97 95 78 35 43 62 83 50 87 92 35 128 90 93 68 85 91 82 86 96 42 81 56 103 86 530 48 91 90 65 134 93 122 101 176 57 79 138 59 44 Online (%) 0 10 6 99 0 69 33 1 95 0 18 96 0 98 0 11 77 52 1 0 0 0 1 77 0 0 74 1 23 74 0 15 1 45 89 7 18 0 70 100 0 97 2 0 100 46 1 41 0 0 23 24 0 100 16 0 48 60 100 3 0 10 32 0 0 0 28 0 92 98 0 Respondents by firm size as a share (%) of country sample <101 69 7 96 24 61 44 30 65 35 27 16 40 87 91 58 75 23 69 38 53 81 50 26 31 90 90 29 27 43 51 78 40 40 39 60 1 19 11 26 64 50 33 13 79 76 42 39 27 37 80 33 56 24 58 12 52 53 62 32 19 44 7 31 38 52 51 40 58 76 56 89 101– 500 501– 1.000 >20.001– 20.1.

000 >20. 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 Rwanda Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Swaziland 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 32 137 48 79 83 86 110 115 65 60 73 94 105 81 79 94 71 42 98 99 43 83 97 72 183 218 115 125 86 82 311 103 85 75 100 346 33 152 101 80 122 62 101 57 177 98 55 37 119 111 65 98 86 59 30 94 100 87 88 104 106 102 437 79 38 104 87 49 97 68 96 0 0 9 26 0 3 0 48 79 0 0 0 0 1 10 4 96 98 36 0 72 99 2 50 8 2 1 51 26 95 9 2 0 12 1 0 0 48 69 0 51 55 0 0 81 77 13 48 0 12 2 0 35 0 17 0 2 35 96 97 0 100 0 0 18 36 44 45 65 39 54 39 70 55 86 41 33 41 51 71 75 72 49 28 27 10 73 47 19 63 27 62 54 12 15 23 22 47 15 72 32 51 58 86 51 10 44 34 7 41 36 77 32 57 43 0 80 54 10 79 54 39 4 65 41 53 44 27 69 39 71 73 11 22 42 20 28 40 13 22 24 42 5 39 32 32 44 22 13 12 4 50 27 25 24 16 37 23 25 16 22 30 23 35 30 33 54 4 18 48 11 12 49 41 30 34 4 19 35 19 29 23 49 14 13 29 13 11 21 38 48 22 29 27 13 18 18 20 16 17 33 7 4 16 5 5 22 11 4 2 0 3 18 12 3 1 4 12 23 21 16 23 0 8 15 7 9 6 24 12 18 23 4 9 14 0 31 1 6 2 0 17 11 21 8 10 15 3 3 3 0 17 3 9 13 10 12 17 28 7 18 10 6 10 8 8 4 5 13 20 10 15 2 8 1 17 1 2 0 14 11 10 1 5 2 4 24 2 19 26 3 14 25 4 24 11 1 10 10 18 26 7 13 24 14 0 22 0 0 28 11 9 28 19 12 1 22 8 8 39 1 8 55 0 9 6 10 6 10 10 15 16 3 21 8 2 43 9 1 0 0 0 0 7 0 0 0 0 4 3 0 0 6 0 0 0 6 14 0 4 2 2 8 3 0 18 28 0 7 1 2 0 3 0 2 0 0 4 2 1 21 7 2 0 14 3 0 15 0 0 5 0 0 0 10 0 1 0 9 12 0 12 0 3 0 7 0 4 0 0 0 4 0 0 0 0 0 2 0 0 0 0 0 0 3 0 0 5 0 0 3 0 0 18 2 2 10 1 1 0 2 0 0 0 0 0 0 0 32 5 0 0 0 6 0 16 0 0 3 0 3 0 0 0 0 0 10 17 0 0 1 0 0 0 0 0 0 7 11 0 1 0 9 3 3 0 0 1 0 0 0 0 1 3 0 6 2 1 3 2 0 1 3 0 0 2 1 0 1 0 0 0 0 0 2 2 0 0 0 0 0 0 0 0 4 0 0 0 0 0 0 0 0 0 3 1 2 0 0 1 0 TOTAL/AVERAGE (%) 13.2: The Executive Opinion Survey Table 1: Distribution of respondents to the Executive Opinion Survey 2010 by country and firm size (cont’d.607 30 42 26 10 12 5 4 1 *Final count.000 5.001– 20.Sample size Country/Economy Count* Respondents by firm size as a share (%) of country sample Online (%) <101 101– 500 501– 1. See text for details.000 No response Libya Lithuania Luxembourg Macedonia.000 1. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1.001– 5.) 61 . after editing of the data.

Given the limited number of respondents in many countries. Following the multivariate outlier test. In order to compute the Mahalanobis distance. selected for their relevance and placement in the Survey instrument. which indicates by how many standard deviations any one individual answer deviates from the mean of the country sample. and services (see Table 2). As a final step.9 This moving average technique. the number of surveys in a country (i. If the probability is high enough—we use 99. This allows us to calculate the measure in 104 country samples. the set of points) must be greater than the number of questions considered (i. 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 ). and and are the average and standard deviation. In effect.. the dimension or degree of freedom). Formally. one single survey made up of N answers can be viewed as the point of N dimensions. individual answers are aggregated at the country level. where Individual answers with an absolute value for greater than 3 are dropped. where is sector s’s contribution to the economy of country c (e. 0. imagine the case of a country where just 3 percent of responses come from the services sector. while a particular country sample c is the set of points.9 percent as the threshold—we conclude that a survey is a clear outlier and does not “belong” to the sample..1.8 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. By applying the above sector-weighting scheme. consists of taking a weighted average of the most The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . Data weighting: Moving average is respondent i ’s answer to question q in country c. we would be giving a very high weight to a very few surveys. the sector-weighted country averages for 2010 are combined with the 2009 averages to produce the country scores that are used for the computation of the GCI 2010–2011 and for other projects. country. As an extreme example. We use the standardized score—or “zscore”—method.e. the sector-weighted country average of a Survey indicator.36 for the services sector in Bahrain).2: The Executive Opinion Survey 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.1 62 Note 1 A total of 241 surveys were excluded based upon the Mahalonobis outlier test. 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. There is a limitation in applying this technique to the Survey data.g. We compute sectorweighted country averages to obtain a more representative average that takes into account the structure of a country’s economy. respectively. The weights of the other sectors are then adjusted proportionally to their weight in the country’s GDP. 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. This is avoided by trimming the sector weights. is computed as follows: with . Formally. a univariate outlier test is applied at the county level for each question of each Survey. introduced in 2007. of individual answers to question q within country c’s sample. It is therefore perfectly suited for the treatment of survey data. The structure is defined by the estimated contributions to a country’s gross domestic product of each of the four main economic sectors: agriculture. the sector weight used for the weighted average is capped to five times the percentage of surveys from that sector in the sample. and allows for the deletion of clear outliers (see Box 2 for more detail). we cannot include all the Survey questions—over 150—and therefore limit the test to a group of 67 questions. manufacturing industry. non-manufacturing industry. The Mahalanobis distance is used to compute the probability that any survey i does not belong to the sample c. Data weighting: Sector-weighted country averages Once the data have been edited..e. but that sector actually represents 90 percent of the country’s economy. this is calculated as follows: = – . .

2: The Executive Opinion Survey Table 2: Sectoral value-added as a share (%) of GDP 63 . Kuwait Kyrgyz Republic Latvia Lebanon Lesotho Agriculture Manufacturing industry 21 7 7 10 18 3 2 6 0 19 4 1 32 13 9 2 7 1 7 33 35 35 19 2 9 14 4 11 9 7 25 6 2 3 1 7 7 13 13 3 44 3 2 29 10 1 33 3 12 28 14 0 4 6 17 14 10 2 3 2 5 1 3 6 27 3 0 30 3 5 7 12 5 5 21 15 10 20 4 12 18 7 16 8 14 14 4 16 10 15 14 9 16 17 16 7 7 13 34 16 21 18 17 8 25 15 24 10 16 22 17 5 24 12 5 12 24 6 10 20 3 22 3 22 10 16 28 11 22 22 18 9 21 20 13 12 28 2 13 11 10 16 Nonmanufacturing industry Services 8 57 63 11 30 19 10 65 51 11 11 8 6 24 14 49 12 61 15 9 11 8 14 16 11 42 30 14 20 8 8 12 12 13 12 9 31 22 7 12 8 9 9 10 9 6 19 10 10 18 9 5 8 14 13 20 34 12 10 9 17 8 14 31 7 9 49 7 12 11 19 59 31 26 58 37 68 67 24 36 52 78 76 54 48 62 45 65 28 62 44 45 41 50 66 73 38 52 40 55 64 49 65 78 60 73 60 53 49 58 68 42 65 78 56 69 69 41 77 58 50 55 92 66 71 54 37 45 64 63 71 69 69 63 51 54 60 49 51 74 73 58 Country/Economy Libya Lithuania Luxembourg Macedonia. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea. (Cont’d. Rep.Country/Economy Albania Algeria Angola 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 Cape Verde 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. Economist Intelligence Unit. Note: Data are for 2008 or the most recent year available. 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 2 4 0 11 25 34 10 37 3 24 4 4 11 21 9 15 29 9 34 2 7 19 33 1 2 20 6 20 7 15 5 2 1 0 7 5 37 2 16 13 0 3 2 3 3 13 7 2 1 20 2 18 45 12 9 0 10 9 23 8 2 1 1 11 4 22 21 19 4 19 9 22 15 14 28 3 0 5 20 19 14 4 7 14 14 14 7 14 16 19 3 9 8 20 7 13 16 22 17 14 40 8 21 18 4 8 13 25 21 24 23 19 15 18 44 20 20 13 25 16 7 35 3 5 18 18 8 23 12 13 14 18 16 21 12 14 Nonmanufacturing industry Services Sources: The World Bank. 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 Rwanda Saudi Arabia Senegal Serbia Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Swaziland Sweden Switzerland Syria Taiwan.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 74 14 7 12 2 6 20 21 22 24 9 18 1 35 11 16 10 24 9 11 9 11 39 37 47 7 10 6 20 9 14 10 3 64 4 19 10 62 9 4 7 14 11 15 15 11 5 8 8 22 4 6 10 9 21 57 15 9 18 14 48 10 8 9 41 19 35 10 20 63 84 55 57 45 42 39 75 47 67 59 74 39 73 55 47 53 50 73 68 51 27 53 43 53 76 61 57 53 65 74 56 29 68 58 48 27 63 59 72 59 63 63 68 57 43 70 71 45 70 59 37 44 68 37 58 64 52 55 38 76 77 63 38 38 33 57 1. Islamic Rep. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran.

the size of the sample was 110 in 2009 and 101 in 2010. The weights for each year are determined as follows: (12a) 1 wc20095 2009 c 2009 1 c2010 c N N N (2a) 2 and a1 wc20105 2010 c 2009 1 c2010 c N N N (2b) 2 where Nct is the sample size (i. The second component is the sample-size weighted average.5393 5.4613 5.c 1 a 3 qi. In Slovenia.c 1 t 3 qi.49 5 5. country c’s score on question i is computed as follows: qi. Although numbers are rounded to two decimal places in this example and to one decimal place in the data tables. 1 2009 3 qi.c N 1 Nc Nc 1 Nc2010 2009 c (3) 5 2009 2010 1 1 3 (12a) 3 qi. the number of respondents) for country c in year t. Using ␣ = 0. is given by: qi. For any given Survey question qi . Note that in the particular case of a new question—where no past data exist—we 09–10 2010 have wc2009 = 0 and wc2010 = 1. The two components are given half-weight each.e.ct is country c ’s score on question qi in year t.71 in 2009 and 5. Plugging equations (2a) and (2b) into (1) and rearranging yields: 64 3 4 discounted-past weighted average 3 4 Nc2009 Nc2010 2009 2010 .2: The Executive Opinion Survey Box 3: Country score calculation This box presents the method applied to compute the 2009–2010 moving average scores. Equation (1) then simply becomes qi.c t t 2 2 Nc 1 Nc Nc 1 Nct 3 1 2 4 1 2 1 1 2 2 1 2 4.c 2010 3 q i. 2009 2010 This is the final score used in the computation of the GCI and reported in Table 9.c09–105 wc2009 3 qi.c . The formula is easily generalized.1.c2009 1 wc2010 3 qi.6 and applying formulas (2a) and (2b) yield weights of 46.49 in 2010.c 5 qi. 2010. The value for ␣ is 0.. 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. For any two consecutive editions t1 and t 2 of the Survey. country c’s score. the first component of the weighting scheme is the discounted-past weighted average. qi. with t = 2009.c09–10 .71 1 0.1 percent for 2009 and 53. which corresponds to a discount factor of 2/3.c09–10 5 sample-size weighted average In equation (3). the 2009 score of country c is given 2/3 of the weight given to its 2010 score. as computed following the approach described in the text.01 on the availability of new technologies.59 . and wct is the weight applied to country c ’s score in year t (see below). (4) Example q Let us compute the score of Slovenia on indicator 9.9 percent for 2010. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .ct–t 5 1 2 3 Nct Nct t t t t 1 1 3 (12a) 3 qi.c 1 3 3 qi.c2010 (1) where qi.c 1 3 2 2 5 qi. The weighting scheme described above indicates how the two scores are combined.c 1 a 3 qi. The final country score for this question is given by formula (1): 5 5 0.01. Slovenia’s score was 5. exact figures are used in all calculations.6. That is.

place more weight on the year with the larger sample size. Geneva: World Economic Forum. it increases the amount of available information by providing a larger sample size. it makes results less sensitive to the specific point in time when the Survey is administered. The two terms are used interchangeably throughout the text. “Executive Opinion Survey: Capturing the Views of the Business Community. For newly introduced questions. which are often year-average data. is a key ingredient that turns the Report into a representative annual measure of a nation’s economic environment and its ability to achieve sustained growth. and for the integrity of our publication and related research. Second. It gathers valuable information on a broad range of variables for which data sources are scarce or nonexistent. 3 The Survey sampling guidelines each year emphasize the need to have a sample with a sufficient presence of large companies because these companies tend to have better knowledge about the overall economy and the relative quality of the business environment. This has the effect of including these surveys on a one-for-one basis as they occur in the sample—that is. Reference Browne. for which no time series exists. the average of the responses in the first quarter of 2009 and first quarter of 2010 better aligns the Survey data with many of the data indicators from sources other than the Forum. There are several reasons for doing this. collecting over 400 surveys following the detailed sampling guidelines.500 executives into their business operating environment. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 65 . we want to give each response an equal weight and. we would like to give more weight to the most recent responses because they contain more updated information. therefore. sampling and comparability across the globe remains an essential and ongoing endeavor of the Centre for Global Competitiveness and Performance. Practically. to calculate the moving average.” The Global Competitiveness Report 2009–2010. For this reason. a Partner Institute uses the response rate from previous years. 2 The World Economic Forum’s Centre for Global Competitiveness and Performance would like to acknowledge e-Rewards Market Research for carrying out the Executive Opinion Survey 2010 in the United States. this scale could not be achieved without the tremendous efforts of the Forum’s network of over 150 Partner Institutes in carrying out the Survey at a national level. In order to include the surveys with missing sector information in the country averages.2: The Executive Opinion Survey recent year’s Survey results together with a discounted average of the previous year. the final country score simply corresponds to the country score in 2010. 1. The company size value used for delineating the large and small company sample frames varies across countries. 5 In order to reach the required number of surveys in each country (80 for most economies and 300 for the BRIC countries and the United States). Adjustments were made to the value based on searches in company directories and data gathered through the administration of the Survey in past years. 49–57. That is. 8 In a few cases. 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. C. Geiger. the respondent has not answered the question relative to their company’s activity. 9 For details about the 2009 Survey dataset. because the Survey is carried out during the first quarter of the year. as the backbone of The Global Competitiveness Report. please refer to Browne and Geiger 2009. Notes 1 For these countries. and T. collecting the insight of over 13. 6 The results are the scores obtained by each country in the various questions of the Survey. The size stratification of the sample helps to better achieve this goal.” Box 3 details the methodology and provides a clarifying example. 7 The completion rate is the proportion of unanswered questions among the 120 core questions in the survey instrument. 4 Company size is defined as the number of employees of the firm in the country of the Survey respondent. with no adjustment for sector. Additionally. The Survey. On one hand. First. At the same time. a weighting scheme is used composed of two overlapping elements. only 2010 Survey data are used. we also “discount the past. 2009.Conclusion The Executive Opinion Survey remains the largest poll of its kind. The size value tracks closely with the overall size of the economy.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

Part 2 Data Presentation The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

1 Country/Economy Profiles The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .2.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .

.....0......8 5th pillar: Higher education and training ...2.3........ which divides the world into six regions: Central and Eastern Europe.............3......................... please consult www.............................................. Note that no data are available for Puerto Rico........5...63 ......12.......... The results were then tabulated and weighted according to the ranking assigned by respondents... On the right-hand side......7 9th pillar: Technological readiness... For more information regarding the classification and the data.... the methodology and results of the GCI.........75 ... respondents were asked to select the five most problematic and to rank those from 1 (most problematic) to 5.........0 Foreign currency regulations.............4. from 1980 through 2009 (or the period for which data are available) for the economy under review (blue line)..........................84 .2 7th pillar: Labor market efficiency ...................03 Albania 15.....4...87 ................3................... China are from national sources.....................0 Corruption.....1.......4....... GDP figures come from the IMF’s World Economic Outlook Database (April 2010)......................... The first column shows the country’s rank among the 139 economies.... The last group is made up of Advanced economies........................ Figures for Puerto Rico and Taiwan......................................................4 Inefficient government bureaucracy..................................................... please refer to Chapter 1.............6 Factor driven Basic requirements.............. a chart shows the country’s performance in the 12 pillars of the GCI (blue line) measured against the average scores across all the economies in the same stage of development (black line)...........................7 GCI 2008–2009 (out of 134).. 1980–2009 Population (millions).......6 Financial market development Goods market efficiency Labor market efficiency Albania Efficiency-driven economies The most problematic factors for doing business Access to financing .0..................13.....................3.............2.....6 Policy instability...........org/weo...........................0 Poor work ethic in national labor force ..3......4.000 3....100 ............. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5...................................... Sub-Saharan Africa..............63 .................. The black line plots the GDP-weighted average of GDP per capita of the group of economies to which the economy under review belongs.... which includes Georgia and Mongolia although they are not members........3 Restrictive labor regulations ..........4................................825 GDP (PPP) as share (%) of world total ....................8............................3.......1 11th pillar: Business sophistication.......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 139) Key indicators Stage of development Score (1–7) GCI 2010–2011........... We draw on the IMF classification......4..........108 .......000 9.........How to Read the Country/Economy Profiles How to Read the Country/Economy Profiles The Country/Economy Profiles section presents a twopage profile for each of the 139 economies covered in The Global Competitiveness Report 2010–2011......6 • Gross domestic product (GDP) data come from the April 2010 edition of the International Monetary Fund (IMF)’s World Economic Outlook Database.................103 ..............0....................... • The chart on the upper right-hand side displays the evolution of GDP per capita based on purchasing power parity (PPP).................. Global Competitiveness Index This section details the economy’s performance on the various components of the Global Competitiveness Index (GCI)......................................... Commonwealth of Independent States (CIS)..3......63 ........................... Transition 1–2 1 GCI 2009–2010 (out of 133)...............................2 Poor public health ....13...................3........................5 10th pillar: Market size. 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...........................104 .7 Inadequate supply of infrastructure ..3.5 Tax rates ..72 .000 Central and Eastern Europe 12... and Western Hemisphere..88 .........................8...89 . From a list of 15 factors......................................................................10...000 6.......................................9......................... Albania Key indicators........ The information is drawn from the 2010 edition of the World Economic Forum’s Executive Opinion Survey.....9 6th pillar: Goods market efficiency.................................................................2 0 5 10 15 20 25 30 Percent of responses Note: From a list of 15 factors.... Developing Asia..................1 of this Report........121 .............9 The first section presents a selection of key indicators: • Population figures come from the United Nations Population Fund (UNFPA)’s State of World Population 2009.....96 ...........3..... Reported GDP and GDP per capita are valued at current prices..................imf...........6........................5 3rd pillar: Macroeconomic environment ......2 Inflation ...........2 GDP per capita (US$) .....................................................4............... The bars in the figure show the responses weighted according to their rankings.....6 Inadequately educated workforce...............101 .... while the second column presents the score....5 8th pillar: Financial market development....0 2nd pillar: Infrastructure....0..89 .................................8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......4 Government instability/coups ..................2 71 Crime and theft .2 GDP (US$ billions)........ Tax regulations .....................................2 4th pillar: Health and primary education .....................56 .........3..................... For more information on The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum ........14.... Middle East and North Africa..5.................................3.......9 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..........................4 1st pillar: Institutions .................. 2009 GDP (PPP) per capita (int'l $)....6 12th pillar: Innovation..

.....................................08 6.............95 Value chain breadth ....................69 Local availability of research and training services................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum ......................07 11..................How to Read the Country/Economy Profiles 72 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.......10 Business impact of malaria ......................05 2......................131 Legal rights index* .........64 Hiring and firing practices............. the data tables in the following section of the Report provide detailed rankings and scores for all the indicators of the GCI...............................112 Local supplier quality .........116 11th pillar: Business sophistication 11......................76 Government debt* ...................90 Venture capital availability..................................................02 3...01 6.................05 9.............................16 1............11 1..............................109 State of cluster development......................................................................101 Diversion of public funds................. any individual indicators ranked higher than 51 are considered to be advantages.................62 Buyer sophistication ...129 Control of international distribution ......... For further analysis...03 5..06 2.63 Availability of scientists and engineers ....08 4.............02 2.............................................01 7...03 6................04 4...04 9...........................................128 Company spending on R&D....................07 8........................03 3..................09 6......14 1...01 4..........81 Quality of railroad infrastructure ........................109 Quality of port infrastructure ..84 Number of procedures required to start a business* ..............................................................03 9...........................94 Extent of staff training.82 Brain drain ...................90 Prevalence of trade barriers ....................113 Quality of electricity supply ....06 11.....................................123 Nature of competitive advantage ................................................01 Domestic market size index*.........76 12th pillar: Innovation 12.....................58 Strength of auditing and reporting standards........................................................................09 Quality of overall infrastructure ...................65 Wastefulness of government spending ..01 12.............................07 5...............113 Extent of market dominance...........................................................88 4th pillar: Health and primary education 4....................................................... ranked 66th overall...............82 Reliability of police services ............49 Business costs of terrorism ..... • For those economies ranked lower than 50 in the overall GCI.........61 Life expectancy* ... For instance............................ variables ranked higher than the economy’s own rank are considered to be advantages.......................100 Quality of air transport infrastructure .......................... • For those economies ranked from 11 through 50 in the overall GCI............................................7 Tuberculosis incidence* ...... its rank of 33rd on indicator 1............91 Tertiary education enrollment rate*.......................02 9........01 1.......88 Favoritism in decisions of government officials ..10 6... For Mexico...........04 8...............128 Affordability of financial services..........................10 1...................................02 11...............09 1............................63 Effectiveness of anti-monopoly policy .........................................02 12...09 Availability of financial services .01 8..........07 6...................15 2nd pillar: Infrastructure 2.................................. ranked 39th overall...08 8..............21 Redundancy costs* ........................05 4...........04 5.......................................82 Strength of investor protection* ................87 8...................06 6....................................................01 government budget balance.......1 Infant mortality* .......................................02 5...................... For further details and explanation...........62 Quality of management schools ............ indicator 3.......................... Competitive advantages are defined as follows: The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..............109 National savings rate* ...........03 2..........................................79 Internet bandwidth* ...............................05 3..............78 Quality of roads ...90 Firm-level technology absorption ........90 Notes: Ranks of notable competitive advantages are highlighted..............17 1............39 Total tax rate* ...............................................15 1........02 6.................42 Willingness to delegate authority....57 Interest rate spread* ............113 Financing through local equity market .....................06 7.64 Rigidity of employment* ...................................................12 6...................05 5.................................................................. • For those economies ranked in the top 10 in the overall GCI...........01 2..........................................................................07 4..............................................64 Extent of marketing...52 Production process sophistication....55 Broadband Internet subscriptions* ..........138 Gov’t procurement of advanced tech products .........03 8.............................................07 2..... in the case of Sweden—which is ranked 2nd overall—its 3rd rank on indicator 1................13 1....1 Malaria incidence*...58 Available airline seat kilometers* ............56 Organized crime .......89 Pay and productivity ........................51 Business costs of crime and violence........................................20 1.......................................109 Extent and effect of taxation................... In the case of Poland..................54 Quality of math and science education............................................................23 Time required to start a business*.........................................................................................06 4..................................................................................07 7...........................06 12.........07 Capacity for innovation ...53 Burden of customs procedures........................06 8......08 1.02 4....74 Internet users* ..........................02 Foreign market size index* ......................................................... constitutes a competitive advantage....116 Intellectual property protection .....83 Efficacy of corporate boards ........................40 Quality of primary education ...................55 RANK/139 6th pillar: Goods market efficiency 6...............................9 Agricultural policy costs.........22 3rd pillar: Macroeconomic environment 3........................13 6...............01 11..............................................................................................92 FDI and technology transfer..........................................106 Inflation*.............................................................................107 Regulation of securities exchanges ............................01 3...........................06 Availability of latest technologies .......................58 Public trust of politicians .........................100 Quality of scientific research institutions .....................107 Female participation in labor force* .1 for the detailed structure of the GCI......................................................59 7th pillar: Labor market efficiency 8th pillar: Financial market development 9th pillar: Technological readiness 10th pillar: Market size 10.20 Efficiency of legal framework in settling disputes ....04 11..............................................................................04 1...........18 1. where Mexico ranks 19th............137 Ease of access to loans......11 6........................................................42 Flexibility of wage determination .........................124 Utility patents per million population*........................................01 9........................21 Property rights......85 Internet access in schools................................................04 3......................................06 5........ Those indicators not derived from the World Economic Forum’s Executive Opinion Survey are identified by an asterisk(*).......02 1...............................04 7......... Please refer to Appendix A of Chapter 1.........................................6 9..............03 4.........47 Protection of minority shareholders’ interests .........................................59 Efficiency of legal framework in challenging regulations ............99 10.............................05 12......................................53 Burden of government regulation ...................03 12... individual indicators ranked from 1 through 10 are considered to be advantages...................05 7................................63 Irregular payments and bribes....2 HIV prevalence* ...................92 Country credit rating*......................05 11.............................................08 7..68 Judicial independence ..................................................91 Quality of the educational system..............57 Ethical behavior of firms............................. An asterisk (*) indicates that data are from sources other than the World Economic Forum.............04 public trust of politicians makes this indicator a competitive advantage..... For indicators entering the GCI at half weight in two different pillars....49 Trade tariffs*...................50 Soundness of banks .... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..08 11..................................................04 6......85 5th pillar: Higher education and training 5..... The ranks of those indicators that constitute a notable competitive advantage are highlighted in blue bold typeface....................................................... only the first instance is shown on this page.....06 Government budget balance* ..........................36 Business impact of HIV/AIDS...03 1................16 Reliance on professional management ........................07 1...................1 Business impact of tuberculosis .06 1..............................................56 Transparency of government policymaking..............................................05 1.21 strength of investor protection makes this indicator a competitive advantage..................91 University-industry collaboration in R&D ..................................09 4........................................04 2......04 12.................................88 Mobile telephone subscriptions* ..................44 Prevalence of foreign ownership .........02 8.......................01 5..........................19 1....82 Degree of customer orientation ..................................................................................02 7..............03 11......................15 Intensity of local competition ..............09 Cooperation in labor-employer relations..........................98 7.......................................08 Secondary education enrollment rate* ....107 Restriction on capital flows .08 2.............................05 6................. Indicators are organized by pillar...........58 Primary education enrollment rate* .......09 Local supplier quantity..................12 1................................................................03 7......................14 6....66 Business impact of rules on FDI ...........................90 Fixed telephone lines* .......................05 8.........................................

The 160 Netherlands 254 Zambia 348 Georgia 162 New Zealand 256 Zimbabwe 350 Germany 164 Nicaragua 258 Ghana 166 Nigeria 260 The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 73 . Rep. 204 Slovak Republic 298 Burkina Faso 112 Kuwait 206 Slovenia 300 Burundi 114 Kyrgyz Republic 208 South Africa 302 Cambodia 116 Latvia 210 Spain 304 Cameroon 118 Lebanon 212 Sri Lanka 306 Canada 120 Lesotho 214 Swaziland 308 Cape Verde 122 Libya 216 Sweden 310 Chad 124 Lithuania 218 Switzerland 312 Chile 126 Luxembourg 220 Syria 314 China 128 Macedonia. 186 Puerto Rico 280 Barbados 94 Ireland 188 Qatar 282 Belgium 96 Israel 190 Romania 284 Benin 98 Italy 192 Russian Federation 286 Bolivia 100 Jamaica 194 Rwanda 288 Bosnia and Herzegovina 102 Japan 196 Saudi Arabia 290 Botswana 104 Jordan 198 Senegal 292 Brazil 106 Kazakhstan 200 Serbia 294 Brunei Darussalam 108 Kenya 202 Singapore 296 Bulgaria 110 Korea. China 316 Colombia 130 Madagascar 224 Tajikistan 318 Costa Rica 132 Malawi 226 Tanzania 320 Côte d’Ivoire 134 Malaysia 228 Thailand 322 Croatia 136 Mali 230 Timor-Leste 324 Cyprus 138 Malta 232 Trinidad and Tobago 326 Czech Republic 140 Mauritania 234 Tunisia 328 Denmark 142 Mauritius 236 Turkey 330 Dominican Republic 144 Mexico 238 Uganda 332 Ecuador 146 Moldova 240 Ukraine 334 Egypt 148 Mongolia 242 United Arab Emirates 336 El Salvador 150 Montenegro 244 United Kingdom 338 Estonia 152 Morocco 246 United States 340 Ethiopia 154 Mozambique 248 Uruguay 342 Finland 156 Namibia 250 Venezuela 344 France 158 Nepal 252 Vietnam 346 Gambia.List of Countries/Economies List of Countries/Economies Country/Economy Page Country/Economy Page Country/Economy Page Albania 74 Greece 168 Norway 262 Algeria 76 Guatemala 170 Oman 264 Angola 78 Guyana 172 Pakistan 266 Argentina 80 Honduras 174 Panama 268 Armenia 82 Hong Kong SAR 176 Paraguay 270 Australia 84 Hungary 178 Peru 272 Austria 86 Iceland 180 Philippines 274 Azerbaijan 88 India 182 Poland 276 Bahrain 90 Indonesia 184 Portugal 278 Bangladesh 92 Iran. Islamic Rep. FYR 222 Taiwan.

2.1: Country/Economy Profiles

Albania
Key indicators, 2009
GDP (PPP) per capita (int'l $), 1980–2009
Population (millions)...................................................3.2
GDP (US$ billions).....................................................12.2
GDP per capita (US$) .............................................3,825
GDP (PPP) as share (%) of world total .................0.03

Albania

15,000

Central and Eastern Europe

12,000
9,000
6,000
3,000
0

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

Global Competitiveness Index
Rank
(out of 139)

Stage of development

Score
(1–7)

GCI 2010–2011.........................................................88 ......3.9

Transition
1–2

1

GCI 2009–2010 (out of 133)..................................................96 ........3.7
GCI 2008–2009 (out of 134)................................................108 ........3.6

Factor
driven

Basic requirements.............................................................75 ........4.4
1st pillar: Institutions ...........................................................63 ........4.0
2nd pillar: Infrastructure.....................................................89 ........3.5
3rd pillar: Macroeconomic environment .......................101 ........4.2
4th pillar: Health and primary education .........................56 ........5.9

74

2

Transition
2–3

3

Efficiency
driven

Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers..........................................................89 ........3.8
5th pillar: Higher education and training .........................84 ........3.9
6th pillar: Goods market efficiency...................................63 ........4.2
7th pillar: Labor market efficiency ....................................63 ........4.5
8th pillar: Financial market development.......................100 ........3.7
9th pillar: Technological readiness...................................72 ........3.5
10th pillar: Market size......................................................103 ........2.8

Infrastructure
Macroeconomic
environment

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ..........................104 ........3.1
11th pillar: Business sophistication..................................87 ........3.6
12th pillar: Innovation........................................................121 ........2.6

Financial market
development

Goods market
efficiency
Labor market efficiency

Albania

Efficiency-driven economies

The most problematic factors for doing business
Access to financing ......................................................14.0
Corruption.......................................................................13.6
Tax regulations ..............................................................13.4
Inefficient government bureaucracy.........................10.6
Policy instability...............................................................9.2
Inflation .............................................................................8.7
Inadequate supply of infrastructure ............................8.5
Tax rates ...........................................................................6.0
Poor work ethic in national labor force ......................5.0
Foreign currency regulations........................................4.6
Inadequately educated workforce...............................4.2
Crime and theft ................................................................1.4
Government instability/coups .......................................0.3
Restrictive labor regulations .........................................0.2
Poor public health ...........................................................0.2
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 and to rank them between
1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

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30

The Global Competitiveness Index in detail
INDICATOR

RANK/139

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
1.20
1.21

Property rights.......................................................................116
Intellectual property protection .............................................101
Diversion of public funds.........................................................58
Public trust of politicians .........................................................63
Irregular payments and bribes.................................................68
Judicial independence .............................................................88
Favoritism in decisions of government officials ......................65
Wastefulness of government spending ..................................53
Burden of government regulation ...........................................20
Efficiency of legal framework in settling disputes ..................59
Efficiency of legal framework in challenging regulations ........56
Transparency of government policymaking.............................49
Business costs of terrorism ....................................................51
Business costs of crime and violence.....................................56
Organized crime ......................................................................82
Reliability of police services ....................................................57
Ethical behavior of firms..........................................................58
Strength of auditing and reporting standards..........................83
Efficacy of corporate boards ...................................................47
Protection of minority shareholders’ interests ........................82
Strength of investor protection* .............................................15

2nd pillar: Infrastructure
2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09

Quality of overall infrastructure ...............................................78
Quality of roads .......................................................................81
Quality of railroad infrastructure ............................................109
Quality of port infrastructure .................................................100
Quality of air transport infrastructure ......................................58
Available airline seat kilometers* ..........................................113
Quality of electricity supply .....................................................90
Fixed telephone lines* ............................................................88
Mobile telephone subscriptions* ............................................22

3rd pillar: Macroeconomic environment
3.01
3.02
3.03
3.04
3.05
3.06

Government budget balance* ...............................................110
National savings rate* ...........................................................106
Inflation*..................................................................................57
Interest rate spread* ...............................................................76
Government debt* ..................................................................92
Country credit rating*..............................................................88

4th pillar: Health and primary education
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10

Business impact of malaria .......................................................1
Malaria incidence*.....................................................................1
Business impact of tuberculosis ...............................................7
Tuberculosis incidence* ..........................................................36
Business impact of HIV/AIDS....................................................2
HIV prevalence* ........................................................................1
Infant mortality* ......................................................................61
Life expectancy* .....................................................................40
Quality of primary education ...................................................58
Primary education enrollment rate* ........................................85

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

RANK/139

6th pillar: Goods market efficiency

Secondary education enrollment rate* ...................................91
Tertiary education enrollment rate*.........................................91
Quality of the educational system...........................................54
Quality of math and science education...................................62
Quality of management schools .............................................85
Internet access in schools.......................................................69
Local availability of research and training services..................94
Extent of staff training.............................................................55

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 ................................................113
Extent of market dominance...................................................63
Effectiveness of anti-monopoly policy ..................................109
Extent and effect of taxation...................................................39
Total tax rate* ..........................................................................84
Number of procedures required to start a business* .............23
Time required to start a business*............................................9
Agricultural policy costs...........................................................90
Prevalence of trade barriers ....................................................49
Trade tariffs*............................................................................44
Prevalence of foreign ownership ............................................66
Business impact of rules on FDI .............................................53
Burden of customs procedures...............................................82
Degree of customer orientation ..............................................62
Buyer sophistication ................................................................98

2.1: Country/Economy Profiles

Albania

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..................................42
Flexibility of wage determination ............................................64
Rigidity of employment* .........................................................64
Hiring and firing practices........................................................21
Redundancy costs* .................................................................89
Pay and productivity ................................................................16
Reliance on professional management ...................................82
Brain drain .............................................................................107
Female participation in labor force* ........................................87

8th pillar: Financial market development
8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Availability of financial services .............................................128
Affordability of financial services...........................................113
Financing through local equity market ..................................137
Ease of access to loans...........................................................90
Venture capital availability......................................................107
Restriction on capital flows .....................................................50
Soundness of banks ..............................................................107
Regulation of securities exchanges ......................................131
Legal rights index* ....................................................................6

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

Availability of latest technologies ............................................90
Firm-level technology absorption ............................................92
FDI and technology transfer....................................................74
Internet users* ........................................................................55
Broadband Internet subscriptions* .........................................79
Internet bandwidth* ................................................................59

10th pillar: Market size
10.01 Domestic market size index*..................................................99
10.02 Foreign market size index* ...................................................116

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...........................................................112
Local supplier quality .............................................................109
State of cluster development................................................123
Nature of competitive advantage ............................................95
Value chain breadth ...............................................................129
Control of international distribution .........................................52
Production process sophistication...........................................64
Extent of marketing.................................................................42
Willingness to delegate authority............................................76

12th pillar: Innovation
12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ..........................................................100
Quality of scientific research institutions ..............................128
Company spending on R&D....................................................91
University-industry collaboration in R&D ...............................138
Gov’t procurement of advanced tech products ......................63
Availability of scientists and engineers .................................124
Utility patents per million population*.....................................90

Notes: Ranks of notable competitive advantages are highlighted. An asterisk (*) indicates that data are from sources other than the World Economic Forum.
For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.

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75

2.1: Country/Economy Profiles

Algeria
Key indicators, 2009
GDP (PPP) per capita (int'l $), 1980–2009
Population (millions).................................................34.9
GDP (US$ billions)...................................................140.8
GDP per capita (US$) .............................................4,027
GDP (PPP) as share (%) of world total .................0.35

Algeria

10,000

Middle East and North Africa

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 139)

Stage of development

Score
(1–7)

GCI 2010–2011.........................................................86 ......4.0

Transition
1–2

1

GCI 2009–2010 (out of 133)..................................................83 ........3.9
GCI 2008–2009 (out of 134)..................................................99 ........3.7

Factor
driven

Basic requirements.............................................................80 ........4.3
1st pillar: Institutions ...........................................................98 ........3.5
2nd pillar: Infrastructure.....................................................87 ........3.5
3rd pillar: Macroeconomic environment .........................57 ........4.8
4th pillar: Health and primary education .........................77 ........5.6

76

2

Transition
2–3

Efficiency
driven

3
Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers........................................................107 ........3.5
5th pillar: Higher education and training .........................98 ........3.6
6th pillar: Goods market efficiency.................................126 ........3.6
7th pillar: Labor market efficiency ..................................123 ........3.7
8th pillar: Financial market development.......................135 ........2.8
9th pillar: Technological readiness.................................106 ........3.0
10th pillar: Market size........................................................50 ........4.3

Infrastructure
Macroeconomic
environment

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ..........................108 ........3.0
11th pillar: Business sophistication................................108 ........3.3
12th pillar: Innovation........................................................107 ........2.8

Financial market
development

Goods market
efficiency
Labor market efficiency

Algeria

Economies in transition from 1 to 2

The most problematic factors for doing business
Inefficient government bureaucracy.........................21.1
Access to financing ......................................................16.4
Corruption.......................................................................13.8
Inadequately educated workforce.............................10.7
Policy instability...............................................................8.8
Inadequate supply of infrastructure ............................6.1
Poor work ethic in national labor force ......................5.3
Foreign currency regulations........................................4.4
Tax rates ...........................................................................3.7
Tax regulations ................................................................2.9
Crime and theft ................................................................2.0
Restrictive labor regulations .........................................1.8
Government instability/coups .......................................1.5
Inflation .............................................................................1.5
Poor public health ...........................................................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 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 2010-2011 © 2010 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

RANK/139

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
1.20
1.21

Property rights.......................................................................106
Intellectual property protection .............................................105
Diversion of public funds.........................................................67
Public trust of politicians .........................................................85
Irregular payments and bribes.................................................97
Judicial independence ...........................................................112
Favoritism in decisions of government officials ......................82
Wastefulness of government spending ..................................64
Burden of government regulation .........................................132
Efficiency of legal framework in settling disputes ..................93
Efficiency of legal framework in challenging regulations ......100
Transparency of government policymaking...........................121
Business costs of terrorism ..................................................128
Business costs of crime and violence.....................................74
Organized crime ......................................................................87
Reliability of police services ....................................................79
Ethical behavior of firms..........................................................98
Strength of auditing and reporting standards........................104
Efficacy of corporate boards .................................................110
Protection of minority shareholders’ interests ........................95
Strength of investor protection* .............................................59

2nd pillar: Infrastructure
2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09

Quality of overall infrastructure ...............................................86
Quality of roads .......................................................................66
Quality of railroad infrastructure ..............................................65
Quality of port infrastructure .................................................115
Quality of air transport infrastructure ......................................98
Available airline seat kilometers* ............................................70
Quality of electricity supply .....................................................69
Fixed telephone lines* ..........................................................102
Mobile telephone subscriptions* ............................................72

3rd pillar: Macroeconomic environment
3.01
3.02
3.03
3.04
3.05
3.06

Government budget balance* ...............................................120
National savings rate* .............................................................26
Inflation*..................................................................................99
Interest rate spread* ...............................................................81
Government debt* ..................................................................10
Country credit rating*..............................................................59

4th pillar: Health and primary education
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10

Business impact of malaria .......................................................1
Malaria incidence*.....................................................................1
Business impact of tuberculosis .............................................91
Tuberculosis incidence* ..........................................................73
Business impact of HIV/AIDS..................................................63
HIV prevalence* ......................................................................22
Infant mortality* ....................................................................104
Life expectancy* .....................................................................77
Quality of primary education ...................................................96
Primary education enrollment rate* ........................................58

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

RANK/139

6th pillar: Goods market efficiency

Secondary education enrollment rate* ...................................80
Tertiary education enrollment rate*.........................................87
Quality of the educational system.........................................117
Quality of math and science education...................................84
Quality of management schools .............................................91
Internet access in schools.....................................................125
Local availability of research and training services................105
Extent of staff training...........................................................103

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 ..................................................93
Extent of market dominance...................................................55
Effectiveness of anti-monopoly policy ....................................91
Extent and effect of taxation...................................................56
Total tax rate* ........................................................................128
Number of procedures required to start a business* ...........126
Time required to start a business*..........................................79
Agricultural policy costs.........................................................119
Prevalence of trade barriers ....................................................56
Trade tariffs*..........................................................................121
Prevalence of foreign ownership ..........................................123
Business impact of rules on FDI ...........................................125
Burden of customs procedures.............................................124
Degree of customer orientation ............................................108
Buyer sophistication ..............................................................108

2.1: Country/Economy Profiles

Algeria

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..................................93
Flexibility of wage determination ..........................................105
Rigidity of employment* .......................................................104
Hiring and firing practices........................................................78
Redundancy costs* .................................................................29
Pay and productivity ..............................................................105
Reliance on professional management .................................129
Brain drain .............................................................................125
Female participation in labor force* ......................................120

8th pillar: Financial market development
8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Availability of financial services .............................................131
Affordability of financial services...........................................136
Financing through local equity market ..................................127
Ease of access to loans...........................................................67
Venture capital availability........................................................81
Restriction on capital flows ...................................................136
Soundness of banks ..............................................................121
Regulation of securities exchanges ......................................137
Legal rights index* ................................................................103

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

Availability of latest technologies ..........................................109
Firm-level technology absorption ..........................................128
FDI and technology transfer..................................................129
Internet users* ........................................................................96
Broadband Internet subscriptions* .........................................82
Internet bandwidth* ...............................................................n/a

10th pillar: Market size
10.01 Domestic market size index*..................................................51
10.02 Foreign market size index* .....................................................41

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.............................................................59
Local supplier quality .............................................................105
State of cluster development................................................126
Nature of competitive advantage ..........................................129
Value chain breadth ...............................................................123
Control of international distribution .......................................109
Production process sophistication...........................................83
Extent of marketing...............................................................105
Willingness to delegate authority..........................................111

12th pillar: Innovation
12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ..........................................................125
Quality of scientific research institutions ................................96
Company spending on R&D..................................................106
University-industry collaboration in R&D ...............................119
Gov’t procurement of advanced tech products ....................123
Availability of scientists and engineers ...................................43
Utility patents per million population*.....................................90

Notes: Ranks of notable competitive advantages are highlighted. An asterisk (*) indicates that data are from sources other than the World Economic Forum.
For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.

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77

2.1: Country/Economy Profiles

Angola
Key indicators, 2009
GDP (PPP) per capita (int'l $), 1980–2009
Population (millions).................................................18.5
GDP (US$ billions).....................................................68.8
GDP per capita (US$) .............................................3,972
GDP (PPP) as share (%) of world total .................0.15

Angola

8,000

Sub-Saharan Africa

6,000
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 139)

Stage of development

Score
(1–7)

GCI 2010–2011.......................................................138 ......2.9

Transition
1–2

1

GCI 2009–2010 (out of 133)................................................n/a .......n/a
GCI 2008–2009 (out of 134)................................................n/a .......n/a

Factor
driven

Basic requirements...........................................................138 ........2.8
1st pillar: Institutions .........................................................119 ........3.2
2nd pillar: Infrastructure...................................................136 ........1.9
3rd pillar: Macroeconomic environment .......................122 ........3.6
4th pillar: Health and primary education .......................139 ........2.7

78

2

Transition
2–3

Efficiency
driven

3
Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers........................................................130 ........3.2
5th pillar: Higher education and training .......................138 ........2.1
6th pillar: Goods market efficiency.................................133 ........3.3
7th pillar: Labor market efficiency ....................................87 ........4.2
8th pillar: Financial market development.......................134 ........2.9
9th pillar: Technological readiness.................................130 ........2.6
10th pillar: Market size........................................................64 ........3.8

Infrastructure
Macroeconomic
environment

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ..........................139 ........2.5
11th pillar: Business sophistication................................139 ........2.6
12th pillar: Innovation........................................................133 ........2.4

Financial market
development

Goods market
efficiency
Labor market efficiency

Angola

Economies in transition from 1 to 2

The most problematic factors for doing business
Inefficient government bureaucracy.........................18.4
Inadequately educated workforce.............................16.9
Inadequate supply of infrastructure ..........................16.7
Corruption.......................................................................10.9
Access to financing ........................................................9.4
Foreign currency regulations........................................9.4
Restrictive labor regulations .........................................5.8
Poor work ethic in national labor force ......................5.8
Inflation .............................................................................2.1
Tax regulations ................................................................1.9
Policy instability...............................................................1.5
Tax rates ...........................................................................0.8
Poor public health ...........................................................0.4
Government instability/coups .......................................0.0
Crime and theft ................................................................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 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 2010-2011 © 2010 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

RANK/139

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
1.20
1.21

Property rights.......................................................................130
Intellectual property protection .............................................120
Diversion of public funds.......................................................122
Public trust of politicians .........................................................66
Irregular payments and bribes...............................................110
Judicial independence ...........................................................102
Favoritism in decisions of government officials ....................132
Wastefulness of government spending ................................116
Burden of government regulation .........................................137
Efficiency of legal framework in settling disputes ................120
Efficiency of legal framework in challenging regulations ........90
Transparency of government policymaking...........................127
Business costs of terrorism ....................................................17
Business costs of crime and violence.....................................98
Organized crime ......................................................................36
Reliability of police services ....................................................83
Ethical behavior of firms........................................................138
Strength of auditing and reporting standards........................132
Efficacy of corporate boards .................................................137
Protection of minority shareholders’ interests ......................115
Strength of investor protection* .............................................45

2nd pillar: Infrastructure
2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09

Quality of overall infrastructure .............................................138
Quality of roads .....................................................................115
Quality of railroad infrastructure ............................................107
Quality of port infrastructure .................................................136
Quality of air transport infrastructure ....................................128
Available airline seat kilometers* ............................................80
Quality of electricity supply ...................................................135
Fixed telephone lines* ..........................................................120
Mobile telephone subscriptions* ..........................................117

3rd pillar: Macroeconomic environment
3.01
3.02
3.03
3.04
3.05
3.06

Government budget balance* ...............................................115
National savings rate* ...........................................................105
Inflation*................................................................................132
Interest rate spread* ...............................................................99
Government debt* ..................................................................35
Country credit rating*..............................................................90

4th pillar: Health and primary education
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10

Business impact of malaria ...................................................139
Malaria incidence*.................................................................121
Business impact of tuberculosis ...........................................123
Tuberculosis incidence* ........................................................119
Business impact of HIV/AIDS................................................126
HIV prevalence* ....................................................................120
Infant mortality* ....................................................................139
Life expectancy* ...................................................................135
Quality of primary education .................................................139
Primary education enrollment rate* .......................................n/a

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

RANK/139

6th pillar: Goods market efficiency

Secondary education enrollment rate* .................................139
Tertiary education enrollment rate*.......................................132
Quality of the educational system.........................................139
Quality of math and science education.................................139
Quality of management schools ...........................................139
Internet access in schools.....................................................137
Local availability of research and training services................133
Extent of staff training.............................................................39

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 ................................................127
Extent of market dominance.................................................130
Effectiveness of anti-monopoly policy ..................................128
Extent and effect of taxation...................................................30
Total tax rate* ........................................................................107
Number of procedures required to start a business* .............73
Time required to start a business*........................................129
Agricultural policy costs...........................................................61
Prevalence of trade barriers ..................................................123
Trade tariffs*............................................................................93
Prevalence of foreign ownership ............................................83
Business impact of rules on FDI ...........................................120
Burden of customs procedures.............................................133
Degree of customer orientation ............................................139
Buyer sophistication ..............................................................119

2.1: Country/Economy Profiles

Angola

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..................................78
Flexibility of wage determination ............................................89
Rigidity of employment* .......................................................133
Hiring and firing practices........................................................81
Redundancy costs* .................................................................93
Pay and productivity ................................................................68
Reliance on professional management .................................132
Brain drain ...............................................................................47
Female participation in labor force* ........................................43

8th pillar: Financial market development
8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Availability of financial services .............................................129
Affordability of financial services...........................................132
Financing through local equity market ..................................139
Ease of access to loans.........................................................111
Venture capital availability......................................................129
Restriction on capital flows ...................................................138
Soundness of banks ..............................................................102
Regulation of securities exchanges ......................................133
Legal rights index* ..................................................................86

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

Availability of latest technologies ..........................................138
Firm-level technology absorption ..........................................130
FDI and technology transfer....................................................72
Internet users* ......................................................................125
Broadband Internet subscriptions* .......................................114
Internet bandwidth* ..............................................................125

10th pillar: Market size
10.01 Domestic market size index*..................................................72
10.02 Foreign market size index* .....................................................51

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...........................................................139
Local supplier quality .............................................................139
State of cluster development................................................137
Nature of competitive advantage ..........................................115
Value chain breadth ...............................................................139
Control of international distribution .......................................137
Production process sophistication.........................................102
Extent of marketing...............................................................121
Willingness to delegate authority..........................................129

12th pillar: Innovation
12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ..........................................................139
Quality of scientific research institutions ..............................139
Company spending on R&D....................................................89
University-industry collaboration in R&D ...............................136
Gov’t procurement of advanced tech products ......................35
Availability of scientists and engineers .................................134
Utility patents per million population*.....................................90

Notes: Ranks of notable competitive advantages are highlighted. An asterisk (*) indicates that data are from sources other than the World Economic Forum.
For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.

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79

2.1: Country/Economy Profiles

Argentina
Key indicators, 2009
GDP (PPP) per capita (int'l $), 1980–2009
Population (millions).................................................40.3
GDP (US$ billions)...................................................310.1
GDP per capita (US$) .............................................7,726
GDP (PPP) as share (%) of world total .................0.81

Argentina

15,000

Western Hemisphere

12,000
9,000
6,000
3,000

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

Global Competitiveness Index
Rank
(out of 139)

Stage of development

Score
(1–7)

GCI 2010–2011.........................................................87 ......3.9

Transition
1–2

1

GCI 2009–2010 (out of 133)..................................................85 ........3.9
GCI 2008–2009 (out of 134)..................................................88 ........3.9

Factor
driven

Basic requirements.............................................................82 ........4.3
1st pillar: Institutions .........................................................132 ........3.0
2nd pillar: Infrastructure.....................................................77 ........3.6
3rd pillar: Macroeconomic environment .........................54 ........4.8
4th pillar: Health and primary education .........................60 ........5.8

80

2

Transition
2–3

Efficiency
driven

3
Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers..........................................................86 ........3.8
5th pillar: Higher education and training .........................55 ........4.5
6th pillar: Goods market efficiency.................................135 ........3.1
7th pillar: Labor market efficiency ..................................128 ........3.6
8th pillar: Financial market development.......................126 ........3.2
9th pillar: Technological readiness...................................73 ........3.5
10th pillar: Market size........................................................24 ........4.8

Infrastructure
Macroeconomic
environment

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ............................71 ........3.4
11th pillar: Business sophistication..................................75 ........3.8
12th pillar: Innovation..........................................................73 ........3.0

Financial market
development

Goods market
efficiency
Labor market efficiency

Argentina

Efficiency-driven economies

The most problematic factors for doing business
Policy instability.............................................................19.4
Inflation ...........................................................................15.1
Access to financing ......................................................13.9
Corruption.......................................................................12.7
Inefficient government bureaucracy...........................9.0
Restrictive labor regulations .........................................7.0
Tax regulations ................................................................6.4
Tax rates ...........................................................................5.9
Inadequate supply of infrastructure ............................2.9
Poor work ethic in national labor force ......................2.7
Government instability/coups .......................................1.6
Crime and theft ................................................................1.2
Foreign currency regulations........................................1.1
Inadequately educated workforce...............................0.6
Poor public health ...........................................................0.6
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 and to rank them between
1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

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30

The Global Competitiveness Index in detail
INDICATOR

RANK/139

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
1.20
1.21

Property rights.......................................................................134
Intellectual property protection .............................................126
Diversion of public funds.......................................................131
Public trust of politicians .......................................................138
Irregular payments and bribes...............................................115
Judicial independence ...........................................................123
Favoritism in decisions of government officials ....................137
Wastefulness of government spending ................................134
Burden of government regulation .........................................123
Efficiency of legal framework in settling disputes ................130
Efficiency of legal framework in challenging regulations ......137
Transparency of government policymaking...........................129
Business costs of terrorism ....................................................34
Business costs of crime and violence...................................116
Organized crime ....................................................................115
Reliability of police services ..................................................121
Ethical behavior of firms........................................................115
Strength of auditing and reporting standards........................122
Efficacy of corporate boards .................................................104
Protection of minority shareholders’ interests ......................121
Strength of investor protection* .............................................93

2nd pillar: Infrastructure
2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09

Quality of overall infrastructure .............................................102
Quality of roads .......................................................................89
Quality of railroad infrastructure ..............................................82
Quality of port infrastructure ...................................................88
Quality of air transport infrastructure ....................................115
Available airline seat kilometers* ............................................29
Quality of electricity supply .....................................................93
Fixed telephone lines* ............................................................53
Mobile telephone subscriptions* ............................................25

3rd pillar: Macroeconomic environment
3.01
3.02
3.03
3.04
3.05
3.06

Government budget balance* .................................................21
National savings rate* .............................................................44
Inflation*................................................................................103
Interest rate spread* ...............................................................46
Government debt* ..................................................................85
Country credit rating*............................................................103

4th pillar: Health and primary education
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10

Business impact of malaria .....................................................77
Malaria incidence*...................................................................74
Business impact of tuberculosis .............................................57
Tuberculosis incidence* ..........................................................55
Business impact of HIV/AIDS..................................................72
HIV prevalence* ......................................................................82
Infant mortality* ......................................................................66
Life expectancy* .....................................................................48
Quality of primary education .................................................101
Primary education enrollment rate* ........................................22

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

RANK/139

6th pillar: Goods market efficiency

Secondary education enrollment rate* ...................................76
Tertiary education enrollment rate*.........................................19
Quality of the educational system...........................................90
Quality of math and science education.................................106
Quality of management schools .............................................16
Internet access in schools.....................................................111
Local availability of research and training services..................42
Extent of staff training.............................................................79

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 ................................................107
Extent of market dominance.................................................104
Effectiveness of anti-monopoly policy ..................................118
Extent and effect of taxation.................................................137
Total tax rate* ........................................................................134
Number of procedures required to start a business* ...........128
Time required to start a business*..........................................86
Agricultural policy costs.........................................................136
Prevalence of trade barriers ..................................................138
Trade tariffs*..........................................................................107
Prevalence of foreign ownership ............................................33
Business impact of rules on FDI ...........................................134
Burden of customs procedures.............................................135
Degree of customer orientation ............................................118
Buyer sophistication ................................................................66

2.1: Country/Economy Profiles

Argentina

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................................134
Flexibility of wage determination ..........................................135
Rigidity of employment* .........................................................50
Hiring and firing practices......................................................134
Redundancy costs* ...............................................................120
Pay and productivity ..............................................................133
Reliance on professional management ...................................62
Brain drain ...............................................................................67
Female participation in labor force* ........................................94

8th pillar: Financial market development
8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Availability of financial services .............................................125
Affordability of financial services...........................................121
Financing through local equity market ..................................118
Ease of access to loans.........................................................134
Venture capital availability......................................................124
Restriction on capital flows ...................................................132
Soundness of banks ..............................................................123
Regulation of securities exchanges ......................................106
Legal rights index* ..................................................................86

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

Availability of latest technologies ............................................83
Firm-level technology absorption ............................................94
FDI and technology transfer..................................................115
Internet users* ........................................................................74
Broadband Internet subscriptions* .........................................52
Internet bandwidth* ................................................................55

10th pillar: Market size
10.01 Domestic market size index*..................................................22
10.02 Foreign market size index* .....................................................39

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.............................................................85
Local supplier quality ...............................................................74
State of cluster development..................................................62
Nature of competitive advantage ..........................................134
Value chain breadth .................................................................92
Control of international distribution .........................................78
Production process sophistication...........................................58
Extent of marketing.................................................................60
Willingness to delegate authority............................................62

12th pillar: Innovation
12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ............................................................62
Quality of scientific research institutions ................................46
Company spending on R&D....................................................72
University-industry collaboration in R&D .................................53
Gov’t procurement of advanced tech products ....................130
Availability of scientists and engineers ...................................76
Utility patents per million population*.....................................52

Notes: Ranks of notable competitive advantages are highlighted. An asterisk (*) indicates that data are from sources other than the World Economic Forum.
For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

81

2.1: Country/Economy Profiles

Armenia
Key indicators, 2009
GDP (PPP) per capita (int'l $), 1980–2009
Population (millions)...................................................3.1
GDP (US$ billions).......................................................8.7
GDP per capita (US$) .............................................2,668
GDP (PPP) as share (%) of world total .................0.02

Armenia

12,000

Commonwealth of Independent States

9,000
6,000
3,000
0

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

Global Competitiveness Index
Rank
(out of 139)

Stage of development

Score
(1–7)

GCI 2010–2011.........................................................98 ......3.8

Transition
1–2

1

GCI 2009–2010 (out of 133)..................................................97 ........3.7
GCI 2008–2009 (out of 134)..................................................97 ........3.7

Factor
driven

Basic requirements.............................................................94 ........4.1
1st pillar: Institutions ...........................................................97 ........3.5
2nd pillar: Infrastructure.....................................................90 ........3.5
3rd pillar: Macroeconomic environment .........................99 ........4.2
4th pillar: Health and primary education .........................93 ........5.4

82

2

Transition
2–3

Efficiency
driven

3
Innovation
driven

Institutions
7

Innovation

6
5

Business
sophistication

Efficiency enhancers........................................................106 ........3.5
5th pillar: Higher education and training .........................91 ........3.7
6th pillar: Goods market efficiency.................................113 ........3.7
7th pillar: Labor market efficiency ....................................47 ........4.6
8th pillar: Financial market development.......................110 ........3.6
9th pillar: Technological readiness.................................108 ........3.0
10th pillar: Market size......................................................116 ........2.5

Infrastructure
Macroeconomic
environment

4
3
2

Market size

Health and
primary
education

1

Higher education
and training

Technological
readiness

Innovation and sophistication factors ..........................114 ........3.0
11th pillar: Business sophistication................................109 ........3.3
12th pillar: Innovation........................................................116 ........2.6

Financial market
development

Goods market
efficiency
Labor market efficiency

Armenia

Economies in transition from 1 to 2

The most problematic factors for doing business
Corruption.......................................................................16.9
Tax regulations ..............................................................16.5
Access to financing ......................................................11.4
Inefficient government bureaucracy.........................10.8
Inadequate supply of infrastructure ..........................10.5
Foreign currency regulations......................................10.0
Tax rates ...........................................................................7.4
Inadequately educated workforce...............................5.4
Inflation .............................................................................4.5
Policy instability...............................................................2.9
Restrictive labor regulations .........................................1.7
Poor work ethic in national labor force ......................1.6
Crime and theft ................................................................0.2
Poor public health ...........................................................0.2
Government instability/coups .......................................0.1
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 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 2010-2011 © 2010 World Economic Forum

30

The Global Competitiveness Index in detail
INDICATOR

RANK/139

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
1.20
1.21

Property rights.........................................................................98
Intellectual property protection .............................................107
Diversion of public funds.......................................................103
Public trust of politicians .........................................................89
Irregular payments and bribes...............................................104
Judicial independence ...........................................................118
Favoritism in decisions of government officials ......................78
Wastefulness of government spending ..................................54
Burden of government regulation ...........................................91
Efficiency of legal framework in settling disputes ................104
Efficiency of legal framework in challenging regulations ......103
Transparency of government policymaking.............................53
Business costs of terrorism ....................................................32
Business costs of crime and violence.....................................31
Organized crime ......................................................................66
Reliability of police services ..................................................112
Ethical behavior of firms........................................................118
Strength of auditing and reporting standards........................101
Efficacy of corporate boards .................................................130
Protection of minority shareholders’ interests ......................131
Strength of investor protection* .............................................77

2nd pillar: Infrastructure
2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09

Quality of overall infrastructure ...............................................76
Quality of roads .......................................................................87
Quality of railroad infrastructure ..............................................79
Quality of port infrastructure .................................................128
Quality of air transport infrastructure ......................................77
Available airline seat kilometers* ..........................................100
Quality of electricity supply .....................................................78
Fixed telephone lines* ............................................................64
Mobile telephone subscriptions* ............................................81

3rd pillar: Macroeconomic environment
3.01
3.02
3.03
3.04
3.05
3.06

Government budget balance* ...............................................114
National savings rate* .............................................................49
Inflation*..................................................................................78
Interest rate spread* .............................................................112
Government debt* ..................................................................70
Country credit rating*..............................................................86

4th pillar: Health and primary education
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10

Business impact of malaria .......................................................1
Malaria incidence*.....................................................................1
Business impact of tuberculosis .............................................84
Tuberculosis incidence* ..........................................................80
Business impact of HIV/AIDS..................................................55
HIV prevalence* ......................................................................22
Infant mortality* ......................................................................82
Life expectancy* .....................................................................65
Quality of primary education ...................................................88
Primary education enrollment rate* ......................................115

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

RANK/139

6th pillar: Goods market efficiency

Secondary education enrollment rate* ...................................69
Tertiary education enrollment rate*.........................................68
Quality of the educational system.........................................115
Quality of math and science education...................................74
Quality of management schools ...........................................130
Internet access in schools.....................................................107
Local availability of research and training services................124
Extent of staff training...........................................................116

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 ................................................136
Extent of market dominance.................................................133
Effectiveness of anti-monopoly policy ..................................138
Extent and effect of taxation...................................................84
Total tax rate* ..........................................................................56
Number of procedures required to start a business* .............34
Time required to start a business*..........................................56
Agricultural policy costs...........................................................41
Prevalence of trade barriers ..................................................100
Trade tariffs*............................................................................35
Prevalence of foreign ownership ..........................................111
Business impact of rules on FDI ...........................................102
Burden of customs procedures.............................................138
Degree of customer orientation ............................................134
Buyer sophistication ................................................................75

2.1: Country/Economy Profiles

Armenia

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..................................53
Flexibility of wage determination ............................................63
Rigidity of employment* .........................................................50
Hiring and firing practices........................................................33
Redundancy costs* .................................................................21
Pay and productivity ................................................................63
Reliance on professional management .................................117
Brain drain ...............................................................................97
Female participation in labor force* ........................................41

8th pillar: Financial market development
8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Availability of financial services .............................................121
Affordability of financial services...........................................104
Financing through local equity market ..................................131
Ease of access to loans.........................................................124
Venture capital availability......................................................131
Restriction on capital flows .....................................................57
Soundness of banks ................................................................81
Regulation of securities exchanges ......................................121
Legal rights index* ..................................................................60

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

Availability of latest technologies ..........................................127
Firm-level technology absorption ..........................................121
FDI and technology transfer....................................................79
Internet users* ......................................................................111
Broadband Internet subscriptions* .......................................108
Internet bandwidth* ................................................................73

10th pillar: Market size
10.01 Domestic market size index*................................................111
10.02 Foreign market size index* ...................................................129

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...........................................................110
Local supplier quality .............................................................116
State of cluster development................................................124
Nature of competitive advantage ............................................39
Value chain breadth ...............................................................121
Control of international distribution .......................................110
Production process sophistication.........................................100
Extent of marketing...............................................................119
Willingness to delegate authority..........................................128

12th pillar: Innovation
12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ............................................................65
Quality of scientific research institutions ..............................103
Company spending on R&D..................................................127
University-industry collaboration in R&D ...............................124
Gov’t procurement of advanced tech products ....................134
Availability of scientists and engineers ...................................93
Utility patents per million population*.....................................90

Notes: Ranks of notable competitive advantages are highlighted. An asterisk (*) indicates that data are from sources other than the World Economic Forum.
For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum

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...2 Inflation .....17.............1: Country/Economy Profiles Australia Key indicators..........................................29 ................................................................18 ........... 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 and to rank them between 1 (most problematic) and 5....11.......................1 Restrictive labor regulations ....4.......................................................4............5...........997...................................0 10th pillar: Market size........................18 .......5...............7 Inefficient government bureaucracy..5......................................22 ......................15 ...21 ...8............7 1st pillar: Institutions ..........10 ....................5..............................1 Tax regulations ...........3...............................................................................................5............................17 .................................................1.................13 .....8 Corruption....5...12 .................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ....000 10.......................0............0 7th pillar: Labor market efficiency ............0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...5............5...........0...0.5 Poor public health ..13...........................................5 4th pillar: Health and primary education .............14 ..............................4 Financial market development Goods market efficiency Labor market efficiency Australia Innovation-driven economies The most problematic factors for doing business Access to financing .5.......................................6...................................21.....45......11 .....18 .......2 Crime and theft .............2 GCI 2008–2009 (out of 134)........................................................................................................................7 12th pillar: Innovation.............................4.......2..............................23 ..5....... 1980–2009 Population (millions).......5................................2 5th pillar: Higher education and training .....1..................................................5 Foreign currency regulations.................................................000 20...............................................1 Transition 1–2 1 GCI 2009–2010 (out of 133)........5 9th pillar: Technological readiness..........10............................................3 GDP (US$ billions)......3 ......5 11th pillar: Business sophistication....22 ........................................12....5 84 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers........................................................16 ...................17 Australia 40.......11..587 GDP (PPP) as share (%) of world total ......4 3rd pillar: Macroeconomic environment .9 Poor work ethic in national labor force .........1 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ........2 GDP per capita (US$) .....................5 Government instability/coups .....3 Policy instability...5...6..14 ...0 Inadequate supply of infrastructure ...000 Advanced economies 30..............2 Factor driven Basic requirements.........................................3......5 2nd pillar: Infrastructure..1 8th pillar: Financial market development...........................................0...........................................1 Tax rates ........ 2009 GDP (PPP) per capita (int'l $)............................5........2 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 139) Stage of development Score (1–7) GCI 2010–2011..5.....5 6th pillar: Goods market efficiency....

...........................22 Female participation in labor force* .......1 Malaria incidence*...............21 Property rights...........04 5....................................6 9th pillar: Technological readiness 9................20 Business impact of HIV/AIDS...........09 Local supplier quantity.................04 2......................8 Brain drain ............08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..................33 Fixed telephone lines* ................01 9.........03 5...........12 12th pillar: Innovation 12........................................07 6.................3 Time required to start a business*...................06 2................37 Availability of scientists and engineers ........................19 Wastefulness of government spending ...............................05 7...... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........66 Total tax rate* . An asterisk (*) indicates that data are from sources other than the World Economic Forum............23 Mobile telephone subscriptions* .....14 Intellectual property protection .............02 1.....17 Internet access in schools...............................................03 12........................................06 8.............................02 8....42 3rd pillar: Macroeconomic environment 3..................................03 8....03 2.14 Primary education enrollment rate* .............05 5...............................................04 7.20 6......51 8th pillar: Financial market development 8...........01 12.................................05 9.........................................................................................................................06 11....................................................02 12................................45 Organized crime ........20 Buyer sophistication ...............................01 2..........79 Redundancy costs* ..............24 Extent of marketing..46 Quality of air transport infrastructure .................................12 Restriction on capital flows ............................53 Reliance on professional management ............24 Trade tariffs*.................................67 National savings rate* .......................................02 3................7 Quality of primary education .......1 Tertiary education enrollment rate*.......18 1.....28 Life expectancy* ..................03 7...............................................................12 Quality of math and science education...........94 Number of procedures required to start a business* ......06 12................................................30 Quality of railroad infrastructure ........16 1...............................12 1......14 Diversion of public funds...................................................................................................................................01 11...49 Interest rate spread* .30 Available airline seat kilometers* ..35 Tuberculosis incidence* .....................10 Legal rights index* ...........................07 7......06 Government budget balance* ....................01 Domestic market size index*.....................................................................22 Internet users* .The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1....01 4..02 11................................................53 HIV prevalence* ....02 5.20 1....23 University-industry collaboration in R&D .......37 Local supplier quality ......05 4.........................1: Country/Economy Profiles Australia 7th pillar: Labor market efficiency 7....08 8..............................14 Efficacy of corporate boards .....................................................21 Burden of government regulation ..10 6......................78 Control of international distribution ........................01 7........................................................................06 4........................40 10th pillar: Market size 10.................06 1............80 Business costs of crime and violence..............08 7......................................................................................................09 Quality of overall infrastructure ..........................................................................................................04 3.......................................11 Extent of market dominance.............05 3......................17 1...................15 Strength of investor protection* ..............................03 6...................32 Soundness of banks ..........25 Financing through local equity market ....................59 Value chain breadth ........................................................................2 Agricultural policy costs.....28 Local availability of research and training services............04 9...19 Business impact of rules on FDI ......6 Quality of electricity supply .........04 11..09 Availability of financial services ............16 Venture capital availability....................02 Foreign market size index* .........09 4....03 3..........................................07 11....................02 6.....13 Quality of the educational system......................03 9......................................13 1..........14 1.........................................35 Government debt* .............05 8...........................17 Irregular payments and bribes....06 5................................................05 12....................07 8.................................................................................09 1...................................110 Rigidity of employment* .......7 Protection of minority shareholders’ interests ...................................................................................07 2...................01 3.............19 Ethical behavior of firms............................................06 7.............46 Inflation*.19 Business costs of terrorism ......................................06 6.07 5.....07 1.......................................................22 Firm-level technology absorption ....................................19 1......12 Efficiency of legal framework in challenging regulations ........43 Flexibility of wage determination .....................................................02 9......04 12.........................................................20 Broadband Internet subscriptions* .....15 Ease of access to loans.....................................9 Favoritism in decisions of government officials .......................08 4....16 Judicial independence .................................................02 2.........05 1.14 6....................01 1.............................13 6............24 Quality of management schools .........................20 Extent of staff training..02 4........................................................................................60 Efficiency of legal framework in settling disputes ...11 6...................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 85 .........10 Strength of auditing and reporting standards.....24 Degree of customer orientation ............................................................01 6......................................................................02 7..........08 1..............19 FDI and technology transfer........16 State of cluster development....31 Production process sophistication..10 1...................................................................08 2.55 Prevalence of foreign ownership ...................................................................16 Willingness to delegate authority.............................................04 6...........................................17 Notes: Ranks of notable competitive advantages are highlighted............................................15 Extent and effect of taxation.............................................................................................................................................04 4.................................11 Effectiveness of anti-monopoly policy .....03 4..................................................45 2nd pillar: Infrastructure 2....18 Internet bandwidth* ............................17 10........09 6.......................................23 Country credit rating*...........................................................................................................................08 6........01 5...1 Hiring and firing practices................10 Company spending on R&D..........08 11...15 1.........1 Business impact of tuberculosis .................9 Prevalence of trade barriers ..............................04 1............................................................13 Gov’t procurement of advanced tech products ...................35 Nature of competitive advantage .................12 6...........................................................................45 Utility patents per million population*..................................04 8....................................................................55 Infant mortality* ..............................10 Business impact of malaria .42 5th pillar: Higher education and training 5.03 11............... For further details and explanation........07 4...........................06 Availability of latest technologies .........................................05 6..............................13 Transparency of government policymaking..........................................................................................................30 11th pillar: Business sophistication 11.............................................13 Public trust of politicians ...03 1............15 Intensity of local competition .11 1..........................................................................6 Pay and productivity ..32 Reliability of police services ...07 Capacity for innovation ...............16 2.......................................3 Regulation of securities exchanges ..............05 11...............26 Quality of port infrastructure ..................................................34 Quality of roads ............................................09 Cooperation in labor-employer relations.....05 2...........01 8........14 4th pillar: Health and primary education 4.......14 Affordability of financial services.............................................23 Quality of scientific research institutions .................................................57 Burden of customs procedures..

.....................................19 .....................5 Financial market development Goods market efficiency Labor market efficiency Austria Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations .18 .............3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..................................1 Inadequate supply of infrastructure ......................4 2nd pillar: Infrastructure..........................15 .......................0......0.........1: Country/Economy Profiles Austria Key indicators.6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..................4 Access to financing ......................24 ................................8 Tax regulations .....1......3 Inflation ......................4.......0...............17 ..............2 Inefficient government bureaucracy.........................45.....6................................3 Government instability/coups .......................................5.......5....................4..................5......20 ..........3.....8 Poor work ethic in national labor force ................5........8 Crime and theft ................4................13....................................4 6th pillar: Goods market efficiency........6 ...........7 9th pillar: Technological readiness....................4 GDP (US$ billions).................381..4.........................1 GCI 2008–2009 (out of 134)....0 11th pillar: Business sophistication......1...................8.....................9 GDP per capita (US$) ..5...................................0 Foreign currency regulations....................20 ......................5 12th pillar: Innovation...................16 .13 .....................17 .....................7 1st pillar: Institutions ......5..........2 Factor driven Basic requirements..........................5......3 4th pillar: Health and primary education .......................................................6 3rd pillar: Macroeconomic environment ...............................................000 20................................. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.........................4 86 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...........12.....1 10th pillar: Market size.................................................3 Poor public health .....10............................0 7th pillar: Labor market efficiency ............................1 Transition 1–2 1 GCI 2009–2010 (out of 133)................4........5. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .........33 .........................21......................5.......2 Inadequately educated workforce.....................14 .000 Advanced economies 30....................................... 2009 GDP (PPP) per capita (int'l $)....0 Corruption........................................6 Policy instability.........8...5........................... The bars in the figure show the responses weighted according to their rankings..........4..... 1980–2009 Population (millions)...........15 ...............................................4.........18 ..11.46 Austria 40....................................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.............................5.................23 ............................6.....000 10.........989 GDP (PPP) as share (%) of world total ............32 ............9 5th pillar: Higher education and training ..........2..........19 .....5.............8 8th pillar: Financial market development.......................0.............................................................................................................................7 Tax rates .....

.................04 6..................................17 Efficacy of corporate boards ........................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..............15 1..............................................................21 Property rights.....................................39 Efficiency of legal framework in settling disputes ..............................09 Quality of overall infrastructure ............................................06 7................................................73 Time required to start a business*.......................05 1............10 Reliability of police services ........................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum....12 6........43 Restriction on capital flows ........................29 Mobile telephone subscriptions* ......03 11...................................11 Quality of scientific research institutions ................04 12...................07 5.........06 12......01 9...08 11.........................11 1..........02 9...............34 10..........................................03 12.03 4..........22 Organized crime ...................139 Rigidity of employment* .........................105 Redundancy costs* ...........07 6...........................................................................................................6 Tuberculosis incidence* ......02 6. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter......................................................01 4.............................18 Judicial independence ............30 Female participation in labor force* .....................4 Production process sophistication........................................21 Primary education enrollment rate* ..............................1 Business impact of HIV/AIDS.................................................................8 Government debt* .......................................23 Ethical behavior of firms.........................................................................................6 Extent of staff training.......................04 8.....14 1..................................................02 1.......................03 2.........................................................07 4...............................................05 12..............8 Effectiveness of anti-monopoly policy ...................................................................................11 Diversion of public funds......33 Internet access in schools........................06 1...........04 11.......05 2...................03 7...6 Extent of market dominance....20 1.16 Life expectancy* ....04 7......................04 9.................03 1..30 5th pillar: Higher education and training 5............8 Firm-level technology absorption ..18 Efficiency of legal framework in challenging regulations .................17 Affordability of financial services..........................................................................................................26 Financing through local equity market ................05 6...19 1..90 Agricultural policy costs....18 12th pillar: Innovation 12....25 2.....................08 7.....................13 6................................................46 8th pillar: Financial market development 8........63 Total tax rate* ...10 Business impact of malaria .............................................13 Degree of customer orientation ......4 Prevalence of foreign ownership .......................25 Interest rate spread* ...............06 Government budget balance* .09 1.................08 8..02 7.........05 3.......42 Venture capital availability.......................09 4.........13 1.....08 2......02 4................................112 Country credit rating*.............................................16 1...................................................8 HIV prevalence* .39 9th pillar: Technological readiness 9....12 Willingness to delegate authority..............01 1..............05 5..........................................................58 Ease of access to loans...01 7..............14 6..........................................................................................09 Cooperation in labor-employer relations................48 Quality of air transport infrastructure ....................14 6...1: Country/Economy Profiles Austria 7th pillar: Labor market efficiency 7............................7 Extent of marketing.....15 Intensity of local competition ........................................................................................15 Quality of primary education ...................................................48 National savings rate* ..........................................................................................63 Internet users* ........................................08 6...32 11th pillar: Business sophistication 11.........23 Tertiary education enrollment rate*.........11 6.13 Value chain breadth ..............04 5..45 Legal rights index* .................47 Burden of customs procedures....................03 9.....01 3.................20 Company spending on R&D..........17 1..................02 12.....01 2..01 Domestic market size index*........................................07 8...........................................75 Reliance on professional management ........................109 2nd pillar: Infrastructure 2......................38 Availability of scientists and engineers .....08 4............07 7............15 Quality of port infrastructure ..05 9.........1 Business impact of tuberculosis ........................................................................................................................05 7..........................................................17 Business costs of terrorism ............................................................22 Brain drain .............38 Quality of the educational system..........08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..................................................................16 FDI and technology transfer.....10 1........16 Extent and effect of taxation...............34 Business impact of rules on FDI ..............................16 Notes: Ranks of notable competitive advantages are highlighted..............................60 Hiring and firing practices......................28 Burden of government regulation .......................23 Broadband Internet subscriptions* ......................................01 5...............................45 Inflation*.02 Foreign market size index* ...............................................................07 Capacity for innovation .04 1...11 Strength of auditing and reporting standards...........1 Malaria incidence*.............8 Fixed telephone lines* .......06 Availability of latest technologies ....43 Quality of electricity supply ........................17 Soundness of banks ....................................24 Quality of math and science education..............7 Intellectual property protection ...............................................05 11.................................................03 8............2 Buyer sophistication ...............................7 Business costs of crime and violence.........................................................................................04 4.....................28 Irregular payments and bribes..25 Available airline seat kilometers* ..................................110 Number of procedures required to start a business* ................30 Protection of minority shareholders’ interests . The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 87 ...06 4................01 8.......06 8..................................05 4.........05 8........................18 University-industry collaboration in R&D ...... For further details and explanation.......................................................16 Local availability of research and training services....09 Availability of financial services ..................15 10th pillar: Market size 10...................................................................................................15 3rd pillar: Macroeconomic environment 3.18 1.......................................07 11........................04 2.............................................................25 Internet bandwidth* .................8 Local supplier quality .....................................................30 Utility patents per million population*.....................................................................................................................................................5 Pay and productivity ......................04 3.02 3......18 Gov’t procurement of advanced tech products .........55 Infant mortality* ..........10 Transparency of government policymaking...............06 11................48 Regulation of securities exchanges .............................................................06 5........18 Favoritism in decisions of government officials ...........................................10 6.......................................................03 5.................................................................................38 Strength of investor protection* ......................................................35 Prevalence of trade barriers .........................07 2.......06 2.........17 Public trust of politicians .................................26 Wastefulness of government spending ....12 1...........................02 5.................................................................22 Nature of competitive advantage ....................37 Quality of management schools ............7 Quality of railroad infrastructure .........................6 Control of international distribution .................................................01 12.......................03 3......................10 Flexibility of wage determination .........................17 Trade tariffs*....02 11.......01 6...........03 6........09 6..........02 8.09 Local supplier quantity........01 11.........................06 6...........02 2.6 Quality of roads ..............................................................07 1......08 1............14 4th pillar: Health and primary education 4....................1 State of cluster development....................................................................................................

.......4...............................4........................................................4....61 ........66 .............................2 Financial market development Goods market efficiency Labor market efficiency Azerbaijan Economies in transition from 1 to 2 The most problematic factors for doing business Corruption.......................................................8......77 .......................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.............000 6........1...........................13 ...............3...9 Poor work ethic in national labor force .12 Azerbaijan Commonwealth of Independent States 12..................8 8th pillar: Financial market development...............5 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .............8 Inadequately educated workforce........................................8 Government instability/coups .............5.5.................93 ......4............1.................................10.......14..............3...........................................................3.............7 3rd pillar: Macroeconomic environment .......................................................................................43....3..................................................................................1 9th pillar: Technological readiness................4 Inflation .......................70 ..............................0 5th pillar: Higher education and training .........72 .............3.........................................11...............3.........................51 ..1: Country/Economy Profiles Azerbaijan Key indicators...000 3........ 1980–2009 Population (millions)..................................25 ...9 Inefficient government bureaucracy..............................................................5 Foreign currency regulations.5 11th pillar: Business sophistication...3 GCI 2008–2009 (out of 134)........................................................000 9.......9 Tax rates .........6 Access to financing ..3 Tax regulations ..................................0.....76 ..........69 .......................4....3..................................................76 .......1 Policy instability..........................8 12th pillar: Innovation.................57 ...3 Transition 1–2 1 GCI 2009–2010 (out of 133).................................0.......7...............1 Factor driven Basic requirements...........1 GDP per capita (US$) .........3............................58 ..............3.....................................4.........................7................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011......10............0.....71 ............0.......6 4th pillar: Health and primary education ............75 ......83 ....71 .......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...5......... The bars in the figure show the responses weighted according to their rankings..............................807 GDP (PPP) as share (%) of world total ...................... 2009 GDP (PPP) per capita (int'l $)..0 6th pillar: Goods market efficiency................8 Poor public health ...................2...................................4..............................6 10th pillar: Market size. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5....1 Crime and theft ..............7 1st pillar: Institutions .....9 Restrictive labor regulations ....2.........................9 2nd pillar: Infrastructure..................5 88 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.........................4.............9 7th pillar: Labor market efficiency ...........................21.................................8 GDP (US$ billions).....0 Inadequate supply of infrastructure .4....

......................................02 3.104 Quality of math and science education.....55 Infant mortality* ......09 6...19 1.............02 2....88 Reliability of police services .......................06 4.................................................................91 Business impact of HIV/AIDS....................................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .......04 12........................................................................................05 6.09 Quality of overall infrastructure ...01 8.......88 Public trust of politicians ..................06 11..............88 Nature of competitive advantage ..................37 8th pillar: Financial market development 8....18 Hiring and firing practices............................................................81 Willingness to delegate authority..............................132 Trade tariffs*.............09 Availability of financial services ....93 Quality of primary education ...................04 3...............06 7.....................79 Mobile telephone subscriptions* .............21 Property rights..................34 Agricultural policy costs....................................114 Regulation of securities exchanges ...............103 Brain drain ........................................................95 Local supplier quality ..05 12...................12 1........................................100 HIV prevalence* ............................14 1..........................................95 Ethical behavior of firms..................08 7.........40 Quality of scientific research institutions .......82 Burden of customs procedures.......................................62 Transparency of government policymaking.............77 Company spending on R&D.............05 7.77 Business impact of tuberculosis .......................................90 Notes: Ranks of notable competitive advantages are highlighted...................................65 Internet users* ............................................43 Interest rate spread* ......02 6.....................................08 2................................................................05 3.........93 Tuberculosis incidence* ...................................9 Country credit rating*.................02 9..................07 5..............................07 1.......................16 1...........................106 Effectiveness of anti-monopoly policy ...20 2nd pillar: Infrastructure 2..........................................39 Reliance on professional management ...............................................02 5.............49 5th pillar: Higher education and training 5.................62 Business costs of crime and violence....10 6............09 Cooperation in labor-employer relations........................11 Inflation*...05 4..........70 Quality of air transport infrastructure ...............................02 7..70 Quality of railroad infrastructure .................................................01 3....................................09 4.02 11...........................32 Efficiency of legal framework in settling disputes .......................09 1......................87 Favoritism in decisions of government officials ..........02 Foreign market size index* ......................10 Rigidity of employment* ......01 4....................13 1........................................................07 6...........................107 Strength of investor protection* ...............102 Buyer sophistication .............67 Strength of auditing and reporting standards................................57 Prevalence of trade barriers ......................64 Wastefulness of government spending .........................................................................93 Business impact of rules on FDI ..................................................102 Affordability of financial services.01 Domestic market size index*.................................................101 Judicial independence .36 Value chain breadth ........124 Internet access in schools....................88 University-industry collaboration in R&D ...........................................................17 1...............................86 Fixed telephone lines* ............................................................109 Primary education enrollment rate* ...................................103 Legal rights index* .........................................................92 Gov’t procurement of advanced tech products ...........06 5.............................94 Efficiency of legal framework in challenging regulations ............................41 2.....................................48 Restriction on capital flows .........09 Local supplier quantity..........08 4............02 12................................................03 3............................................................................................68 Soundness of banks .................07 8.20 1..77 Local availability of research and training services.............55 Flexibility of wage determination ......58 Business costs of terrorism .........34 Time required to start a business*.....66 10th pillar: Market size 10.........04 8...20 9th pillar: Technological readiness 9...102 Protection of minority shareholders’ interests ............03 8.........06 1.....................98 Quality of the educational system....01 2.............................................05 1...............................06 6.........................87 12th pillar: Innovation 12.................................................................................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.......................63 Quality of roads ...13 6...................03 5..................01 7...........................03 6..................................................53 Broadband Internet subscriptions* .............................68 Financing through local equity market ..................................................................................15 1....... An asterisk (*) indicates that data are from sources other than the World Economic Forum................04 6..................46 Organized crime .....66 Venture capital availability...................................04 4.......................................10 Business impact of malaria .....101 Quality of management schools ..............................................................01 5........60 11th pillar: Business sophistication 11...............45 Irregular payments and bribes................07 11....53 Control of international distribution .....05 8..........66 Extent of staff training.....................05 2.............08 8........04 9...............05 11.............................................11 Redundancy costs* ......................06 8.................06 2..03 2................................................................70 Number of procedures required to start a business* ..............59 Burden of government regulation ........84 10..100 Life expectancy* ...................................................................................11 1.05 9....07 7......................... For further details and explanation.......91 Quality of electricity supply .11 6........................................................59 Available airline seat kilometers* ............. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 89 ................................................................95 Government debt* ................76 4th pillar: Health and primary education 4.04 7.............01 6............................................................................04 5....................................................................................01 9............................................................47 Production process sophistication........12 6.......................68 6...........63 Diversion of public funds...........02 4................................94 Female participation in labor force* ................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........................03 1..07 Capacity for innovation ...........03 4.........07 2.....36 Availability of scientists and engineers ................................92 Internet bandwidth* ..........01 1...01 11....................................03 9.............02 8....................03 7................05 5..............................06 Government budget balance* .......................................................................................99 Malaria incidence*..........01 12...................................90 Intellectual property protection .................................................................................53 Extent of marketing......78 Utility patents per million population*.03 12...134 Extent of market dominance.............................14 6.........4 National savings rate* ......................................................................81 Firm-level technology absorption .................................76 Total tax rate* ...........................07 4.............................................................08 1................................................78 3rd pillar: Macroeconomic environment 3..................................82 Prevalence of foreign ownership ...............04 2..............03 11...06 12......79 Ease of access to loans.......................................................................................................34 Quality of port infrastructure .......................62 FDI and technology transfer...1: Country/Economy Profiles Azerbaijan 7th pillar: Labor market efficiency 7...........12 Tertiary education enrollment rate*..............10 1..............112 Efficacy of corporate boards ........................06 Availability of latest technologies ..........129 Extent and effect of taxation.................40 Pay and productivity ...........................................................................................................................................18 1.......04 1...............................108 Degree of customer orientation ...............................................................................15 Intensity of local competition ...................02 1......08 11...........08 6..........04 11........102 State of cluster development.......

44 .............2..................................................................................9 10th pillar: Market size........................7 Crime and theft .....9 Inflation .............................2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..............38 .....4.......................................3....................................16.........................................5...........................1.....8.....0.................4.............9 .............000 20.4....37 ........................................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.........7 Inadequately educated workforce............27 ..............................................2 GDP per capita (US$) ........04 Bahrain 40....... The bars in the figure show the responses weighted according to their rankings..........55 ........12.............5 Foreign currency regulations.....8 GDP (US$ billions).................13...28 ......9 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......7 Corruption......5 Transition 1–2 1 GCI 2009–2010 (out of 133)...............................2 90 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers............2...................3...............55 .5 5th pillar: Higher education and training ............................................................................................................1 Inefficient government bureaucracy...........59 .....9 Poor work ethic in national labor force ....................2 Inadequate supply of infrastructure .........1 3rd pillar: Macroeconomic environment ............20...........6.......................1.....0....27 .....................4.5..............000 10..............................6 Government instability/coups ...........27 .......................5 1st pillar: Institutions ...........0................2 Tax rates ...33 .................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .......5...................................1 7th pillar: Labor market efficiency ...455 GDP (PPP) as share (%) of world total ............7 Tax regulations .............................................................................................98 ...........................1 Policy instability....6............7 4th pillar: Health and primary education ............................... 2009 GDP (PPP) per capita (int'l $)................ 1980–2009 Population (millions)...................37 ..........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.......5.........................4............................0..................19.........000 Middle East and North Africa 30...36 ......6 Factor driven Basic requirements...4........................0...........................3..............1: Country/Economy Profiles Bahrain Key indicators........6 6th pillar: Goods market efficiency..........................21 ..........4...9 9th pillar: Technological readiness.........................7 11th pillar: Business sophistication........3 Access to financing ..................5..................................................16......................1 12th pillar: Innovation........11 ...................2 Financial market development Goods market efficiency Labor market efficiency Bahrain Economies in transition from 2 to 3 The most problematic factors for doing business Restrictive labor regulations ..........9 Poor public health ......4................................20 ...............................0..........8 8th pillar: Financial market development.........................0 2nd pillar: Infrastructure...............................12.............................4...................................................5 GCI 2008–2009 (out of 134).........4....

................01 3.........................................14 Nature of competitive advantage ............................05 11....30 Reliability of police services ...............07 8......................29 12th pillar: Innovation 12.....................05 6......07 6.................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ............................................................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.............................19 Efficiency of legal framework in settling disputes .42 Wastefulness of government spending .....................................05 8..............36 Tertiary education enrollment rate*............77 11th pillar: Business sophistication 11........115 Local supplier quality .......................................02 8.............06 Availability of latest technologies .................................03 4......03 1.20 Available airline seat kilometers* ............................02 6.............05 12................................04 4................03 7..............09 Quality of overall infrastructure .........47 Extent of marketing.......................................23 Reliance on professional management .......26 Quality of roads ............... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 91 ..................05 9......01 5..................22 Diversion of public funds............... For further details and explanation.................................................................20 Strength of investor protection* ......20 1........................................................01 6..58 Efficiency of legal framework in challenging regulations ...............................................05 2...................13 1............................32 Local availability of research and training services....................02 7................................12 1......................................29 Firm-level technology absorption ...............................................................27 Irregular payments and bribes..............12 6..02 3....................11 6...........................11 1......20 Prevalence of trade barriers ......07 11....................................................................................................05 7............05 1.......................18 1............77 Control of international distribution ............12 Soundness of banks ........04 7.80 Value chain breadth ............86 9th pillar: Technological readiness 9..............08 2.......47 Infant mortality* .............14 1.............................................05 3..............03 11............................................17 1.................................................................................03 3...............................22 Public trust of politicians ....1: Country/Economy Profiles Bahrain 7th pillar: Labor market efficiency 7......................................................................1 Business impact of tuberculosis .............................................................43 Mobile telephone subscriptions* ......................................................................15 1.................32 Ethical behavior of firms...............90 Notes: Ranks of notable competitive advantages are highlighted........09 4.......................02 5........................6 Number of procedures required to start a business* ............................................................02 9.....................................09 Local supplier quantity...........................07 Capacity for innovation ...................................14 Business impact of rules on FDI ..........02 12...01 8.......45 Tuberculosis incidence* ....................06 5..............................95 Redundancy costs* ...................................................30 Agricultural policy costs.................04 12..............................................22 Availability of scientists and engineers .......07 1...........87 Business costs of crime and violence.............44 Quality of management schools ............57 Flexibility of wage determination ...........................................................................07 2...................................................43 Business costs of terrorism ................41 Primary education enrollment rate* ........................10 Business impact of malaria .......................06 6.........................15 Intensity of local competition ..........................................03 5..........................19 1.......04 6....................37 Effectiveness of anti-monopoly policy ...........57 Time required to start a business*............................45 Transparency of government policymaking.....................................30 Internet bandwidth* ......5 Burden of customs procedures..........................................01 2............................................................................................................04 2........45 Quality of primary education .............................1 Total tax rate* ..............81 Extent of staff training...................................45 Internet access in schools..................................08 11...02 2.........48 HIV prevalence* ............................14 6........02 4.......04 3...01 Domestic market size index*....08 4...............................................................................................06 2.......................58 Prevalence of foreign ownership ................06 12..41 Utility patents per million population*..... An asterisk (*) indicates that data are from sources other than the World Economic Forum.........09 Cooperation in labor-employer relations..........03 8..........106 10.....71 State of cluster development..............................10 1.......20 Efficacy of corporate boards .............................04 11.........................................19 Regulation of securities exchanges ..............................................04 5..........11 Trade tariffs*.............64 Country credit rating*.......................................08 8............51 Life expectancy* ...01 1.............................................26 Strength of auditing and reporting standards..........06 4.........03 12....................................................04 1...........................6 Pay and productivity ........................73 Brain drain ...03 9...............01 9..................33 2.3 3rd pillar: Macroeconomic environment 3.................................................................................................15 Female participation in labor force* .......................................................11 Broadband Internet subscriptions* ..............................................16 6..........34 Favoritism in decisions of government officials ..................117 Company spending on R&D..................43 4th pillar: Health and primary education 4.....The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..88 Gov’t procurement of advanced tech products ..................................18 Hiring and firing practices.................................06 7................................06 Government budget balance* ............04 8..............................................................23 National savings rate* ........................................27 Buyer sophistication ...67 Quality of scientific research institutions ................09 1.....................84 Government debt* .................................18 Restriction on capital flows .09 Availability of financial services ......................................8 Rigidity of employment* ..................................08 1..................................09 6........................01 4.......07 5......18 Affordability of financial services.................48 FDI and technology transfer.......45 2nd pillar: Infrastructure 2...........................................01 7..........................38 Production process sophistication..............................2 Venture capital availability..........................03 2......21 Property rights............21 Intellectual property protection ................10 6.....65 Business impact of HIV/AIDS.....11 Degree of customer orientation ..........................01 11..................................................................06 8...............02 Foreign market size index* ...............................06 11........27 Extent and effect of taxation..............02 11...02 1......n/a Quality of port infrastructure ...................04 9......................08 7..............................16 1.............23 Judicial independence ...........................74 Quality of the educational system..........8 Burden of government regulation .................................31 5th pillar: Higher education and training 5.....................38 Organized crime ...01 12............................................69 Interest rate spread* ..........................................62 Fixed telephone lines* ......51 Ease of access to loans..........................................................38 Quality of math and science education..03 6.........................................13 Legal rights index* ...05 5................................................11 Internet users* .........................................................54 10th pillar: Market size 10..................40 Extent of market dominance...........................25 Quality of railroad infrastructure ........................................................................................................................................08 6.........................................................................................................40 Willingness to delegate authority.......................07 7............13 6...........................24 Protection of minority shareholders’ interests .13 Quality of air transport infrastructure ............11 Financing through local equity market ................5 Inflation*........................................56 Quality of electricity supply ..................07 4...................06 1............................................................1 Malaria incidence*...........................................101 University-industry collaboration in R&D ....127 8th pillar: Financial market development 8.....05 4.........

.........................2 Tax regulations .....................4 Crime and theft ...............8 7th pillar: Labor market efficiency .115 ...........................2..........109 ................4.0 8th pillar: Financial market development.........0............ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ........2...........................000 2................107 ........................................................................2 2nd pillar: Infrastructure...........................................4.........574 GDP (PPP) as share (%) of world total ...........4..............6 Tax rates ...........................................1 Access to financing ...................................................................................................108 .........................2 9th pillar: Technological readiness............0 11th pillar: Business sophistication.......97 ..............7 10th pillar: Market size..8 6th pillar: Goods market efficiency................................................66 ..........106 ...............................................5 4th pillar: Health and primary education ......0...........24....................000 3.. The bars in the figure show the responses weighted according to their rankings......................3.........................111 ......................3 Inflation ..4 12th pillar: Innovation....5 Factor driven Basic requirements..................................................2 Inadequately educated workforce...............................................7 1st pillar: Institutions ......1: Country/Economy Profiles Bangladesh Key indicators.......5......................................................................2.....3.3............3.......162.....3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .........000 1............................4....2.....3..........2.....9..............6 5th pillar: Higher education and training ...............3..0.106 ............................6 GCI 2008–2009 (out of 134)............................................................6 Poor work ethic in national labor force .................................126 .................2...8..................3....................................14....119 ..............................................................5 Policy instability..114 ................105 .........126 ......3 Restrictive labor regulations ................................2 GDP (US$ billions)........................94...1 Inefficient government bureaucracy....3....000 Developing Asia 4...............................14.............6.........5 GDP per capita (US$) ..............................................1 3rd pillar: Macroeconomic environment .4.......0 92 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.6 Financial market development Goods market efficiency Labor market efficiency Bangladesh Factor-driven economies The most problematic factors for doing business Inadequate supply of infrastructure ....................................... 1980–2009 Population (millions)...4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.4 Poor public health ..........5...............7 Government instability/coups . 2009 GDP (PPP) per capita (int'l $)..................................................8 Corruption................133 ....4 Foreign currency regulations.....35 Bangladesh 5.....000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.................................................2.........47 ..........3.................................80 ......2.............6 Transition 1–2 1 GCI 2009–2010 (out of 133)....102 . respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5...................2................2...........

......03 3..................134 Fixed telephone lines* .........07 11..................................117 Available airline seat kilometers* .09 Availability of financial services ..79 Control of international distribution ..............................................79 Venture capital availability..............19 1.........117 Wastefulness of government spending .......03 5......06 4......01 2.........................................14 6...............................76 HIV prevalence* ........................06 7......72 National savings rate* ...04 4..............................................................................12 Ease of access to loans.................................................................................02 9............................127 Extent of staff training.13 1.90 Notes: Ranks of notable competitive advantages are highlighted............................137 Judicial independence ...........94 Tuberculosis incidence* ............................................03 6.............................................19 Redundancy costs* ....09 6.....................120 4th pillar: Health and primary education 4............75 Utility patents per million population*...113 Efficiency of legal framework in challenging regulations ................................................................ An asterisk (*) indicates that data are from sources other than the World Economic Forum................................................................................................102 Efficiency of legal framework in settling disputes .................34 Burden of customs procedures........01 8..........................................................09 1........................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........123 Ethical behavior of firms..............94 Reliance on professional management ...............................................................................................................................08 7.............02 Foreign market size index* ......02 8........................01 7......115 Quality of scientific research institutions ..........115 Extent of marketing........................05 5....................17 1......05 8........................07 6..02 11.................................................................07 4......................97 Restriction on capital flows ...........12 1....................54 Total tax rate* ..125 Strength of investor protection* .....................................................................................................71 Quality of port infrastructure ................82 Buyer sophistication ..........................................................................................................................18 1....................116 Tertiary education enrollment rate*..................................107 Quality of air transport infrastructure ..................112 Soundness of banks ......102 Extent and effect of taxation....................................................05 2.....................................05 11.............................13 6...11 1........10 Business impact of malaria ..........................................................118 Organized crime ..81 Extent of market dominance......128 Gov’t procurement of advanced tech products ............99 8th pillar: Financial market development 8.....................08 4...............126 Pay and productivity .......06 2...................39 9th pillar: Technological readiness 9..20 2nd pillar: Infrastructure 2..................................................................06 6.........126 3rd pillar: Macroeconomic environment 3.15 Intensity of local competition ..........................115 Irregular payments and bribes.........06 Availability of latest technologies .129 University-industry collaboration in R&D ........................................................................................06 Government budget balance* ......................01 3......113 Intellectual property protection ..................................................................................................................119 Primary education enrollment rate* ...10 6.....53 Nature of competitive advantage .................................................01 12......03 9................90 Local supplier quality ..........133 Local availability of research and training services.................................................................05 7...........112 5th pillar: Higher education and training 5.....57 Time required to start a business*.......07 8......09 Cooperation in labor-employer relations.................08 11...............................01 11................21 Property rights...............................106 Business costs of terrorism .................04 3...............06 12...............................................................1 Infant mortality* ......................................01 5.....116 Company spending on R&D.........07 2..........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........07 1.............................02 3.........120 Prevalence of foreign ownership ...............................79 Burden of government regulation ................................................08 6.................................04 9.116 Agricultural policy costs......15 1........................127 Mobile telephone subscriptions* .............................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .......................................04 2.......102 Transparency of government policymaking.........................................1: Country/Economy Profiles Bangladesh 7th pillar: Labor market efficiency 7..............................106 Internet users* ........01 Domestic market size index*..................07 5....07 Capacity for innovation ....02 1.....................................................................05 12.........111 Production process sophistication................116 Strength of auditing and reporting standards...............97 Affordability of financial services....................................................03 11.............................87 State of cluster development...12 6.................01 1...134 10th pillar: Market size 10......09 Quality of overall infrastructure ..............................................01 4................02 6............122 Diversion of public funds...........................................................06 11.............82 Regulation of securities exchanges ...........05 4..59 Quality of electricity supply ...71 Hiring and firing practices....................04 8........................03 4...........05 1.....138 Broadband Internet subscriptions* .................105 Quality of management schools ................................................04 11....01 9...............88 Financing through local equity market .....................................................................................04 6..................115 Effectiveness of anti-monopoly policy ...............................05 3..........................109 FDI and technology transfer..94 Quality of math and science education........04 1.............19 Prevalence of trade barriers ..........11 6...............................................................................................................................................130 Quality of roads ............08 2....03 12.......09 4....06 5.............67 Rigidity of employment* ...06 8......20 1..................129 6............................................................07 7.03 7..............................03 8..................02 7..............................02 12......................................................03 2..........................................02 4................08 1....................................111 Firm-level technology absorption ............................................................................................................................86 Government debt* ........................................137 Value chain breadth ...............................106 2..68 Country credit rating*...............................114 Business impact of tuberculosis .............................02 5...........08 8....... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 93 ..............................................116 Quality of the educational system.62 11th pillar: Business sophistication 11...........50 Number of procedures required to start a business* .......123 Protection of minority shareholders’ interests .........100 Interest rate spread* .................................................................................04 7.................03 1........14 1...........................................................09 Local supplier quantity..................................106 Life expectancy* ..119 Degree of customer orientation ...........................120 Efficacy of corporate boards .........................86 Internet access in schools..115 Availability of scientists and engineers ..................126 12th pillar: Innovation 12..37 Inflation*.............16 1.................107 Reliability of police services ............................91 Brain drain ...04 5..................................04 12.............................................02 2....................118 Business impact of rules on FDI ....10 1..............................85 Favoritism in decisions of government officials .....05 9.....100 Quality of railroad infrastructure ...............................107 Quality of primary education ............................................58 Legal rights index* ..............05 6............................................................................107 Public trust of politicians ..........103 Malaria incidence*..........................................124 Business costs of crime and violence......... For further details and explanation..........91 Female participation in labor force* .....108 Willingness to delegate authority.............................................42 10....01 6..........105 Trade tariffs*.....................86 Flexibility of wage determination .....................................112 Business impact of HIV/AIDS.........................................................06 1........124 Internet bandwidth* .....

.....5 94 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.......................0..............3.....6 GDP per capita (US$) ....................................................................003 GDP (PPP) as share (%) of world total .............................................. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.........000 Western Hemisphere 15...........000 5..............1 Restrictive labor regulations ..........................................................................3 7th pillar: Labor market efficiency .....4.........52 ..........................1.........4 GCI 2008–2009 (out of 134).........................3 Financial market development Goods market efficiency Labor market efficiency Barbados Economies in transition from 2 to 3 The most problematic factors for doing business Inefficient government bureaucracy........8....................6 Poor work ethic in national labor force ...............................................9 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...4...6 Inflation ................49 .........1 12th pillar: Innovation.......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ....................13..6 9th pillar: Technological readiness.000 10......133 ........2 2nd pillar: Infrastructure...............................4...........................................14 .....................8 Corruption..................4.........55 .....................2..59 .....1 Poor public health ................4.............14...3.....7 11th pillar: Business sophistication........................................... 2009 GDP (PPP) per capita (int'l $)....4....................0.............. 1980–2009 Population (millions)...................................................47 ........................5 Transition 1–2 1 GCI 2009–2010 (out of 133)......................3 Tax regulations ........................1 Inadequately educated workforce....................5...................5...............................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011...9.........................43 ......................................27 ....................10................................44 .....19.....0 Crime and theft ..........................6 8th pillar: Financial market development........5.........................2 5th pillar: Higher education and training ................1.....4 3rd pillar: Macroeconomic environment ...........................5......22 .....6.....0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....................3 1st pillar: Institutions ..........17..........27 ....4...............................................53 .4.3........1...........................3 4th pillar: Health and primary education .............0 6th pillar: Goods market efficiency.....52 .........38 ..........4 Factor driven Basic requirements............................5 Foreign currency regulations.........0 Tax rates ............3 GDP (US$ billions)...........01 Barbados 20............22 ..........................................4.5..............91 ................................ The bars in the figure show the responses weighted according to their rankings.........7 Policy instability.5 Inadequate supply of infrastructure ............4......................0 10th pillar: Market size.....................1: Country/Economy Profiles Barbados Key indicators.........4.................................0...............0...............4 Government instability/coups ......................................................3....................................0.........................................................................................6 Access to financing .............23 ...5...........

...01 8.....06 7...03 2..............................................................90 Notes: Ranks of notable competitive advantages are highlighted...05 9..........07 1...................02 5.....80 Extent of market dominance.30 Internet users* .........................04 7........................79 12th pillar: Innovation 12.....70 Extent of staff training.....13 Available airline seat kilometers* .........03 8.......................................................09 Quality of overall infrastructure ........11 1.04 4.......02 11.........08 8...04 5..............48 4th pillar: Health and primary education 4...............06 2.......13 6...................................................................................06 4....................20 Strength of auditing and reporting standards..14 6.......................................01 1.......09 1..............49 Protection of minority shareholders’ interests .................01 3...19 Irregular payments and bribes..................01 4....................................n/a 2nd pillar: Infrastructure 2........................74 Production process sophistication....................108 Infant mortality* ......81 Interest rate spread* ............n/a Hiring and firing practices..............40 Gov’t procurement of advanced tech products ........................19 Favoritism in decisions of government officials ..06 Availability of latest technologies ..........13 Efficiency of legal framework in settling disputes ......................01 7...75 Venture capital availability............................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ........07 2.................................................18 Quality of roads .............................120 National savings rate* .......................................41 5th pillar: Higher education and training 5..............25 Flexibility of wage determination ....................................................................118 Soundness of banks ............... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 95 ...........n/a Inflation*..........04 8................05 7..........................16 1...23 Public trust of politicians .....................................................................................14 Mobile telephone subscriptions* ...3 Business impact of HIV/AIDS......................................96 Nature of competitive advantage ....24 Legal rights index* ..................................18 Ethical behavior of firms...........................99 University-industry collaboration in R&D .....................................................14 Tertiary education enrollment rate*..........08 2......03 1........................84 Quality of electricity supply ..................29 Diversion of public funds.12 Regulation of securities exchanges ..................................................1: Country/Economy Profiles Barbados 7th pillar: Labor market efficiency 7.............07 7............01 6..............................29 Internet access in schools.....08 11...............................07 11...06 6..................34 FDI and technology transfer.................................................................................................... For further details and explanation.......52 Control of international distribution ........06 11..............08 4....04 3......01 Domestic market size index*.............................04 9..............01 2............05 6...53 Financing through local equity market .........................................05 2...21 Efficiency of legal framework in challenging regulations ........132 Prevalence of foreign ownership .............................................58 Affordability of financial services............41 Brain drain ..126 Country credit rating*..........................................02 Foreign market size index* ......n/a Quality of port infrastructure ............21 Quality of air transport infrastructure ........09 Availability of financial services ...............112 HIV prevalence* ..........22 Transparency of government policymaking.....................8 Primary education enrollment rate* .............05 12..........................01 12....................34 Quality of railroad infrastructure .........................19 1.03 12.........................10 1..................01 11............................74 Ease of access to loans.20 1......................................................12 1.....................................................04 1..............................................................39 Quality of primary education ..03 4......................02 2.......11 6........................................93 Quality of scientific research institutions .....02 12..08 7.......................06 12.............................................31 Strength of investor protection* ..........07 4.......................................................................................85 Government debt* .31 Wastefulness of government spending .......................................................................24 10th pillar: Market size 10................................................................................06 8.05 3..........06 Government budget balance* ..............................................22 Intellectual property protection ......09 6....................................02 3........20 Total tax rate* ......................15 Intensity of local competition ..............................................................................................07 8..........................................................................................................................01 9.......17 1..................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1........................................56 State of cluster development.........101 Buyer sophistication .........132 10.......09 Local supplier quantity..................27 Fixed telephone lines* .............06 5...................................................................................07 Capacity for innovation ..................................................................n/a Pay and productivity ...........................................03 6...........05 8...................................................05 4..................23 Prevalence of trade barriers ....40 Burden of customs procedures.....10 Business impact of malaria ...........02 6......................37 2..... An asterisk (*) indicates that data are from sources other than the World Economic Forum........................................................04 6.............................03 11................05 1................................10 Efficacy of corporate boards ........n/a Time required to start a business* ..................43 6..............n/a 9th pillar: Technological readiness 9...............05 5............23 Reliability of police services ...........92 Reliance on professional management ..........................................15 1.............18 Burden of government regulation ...................................n/a Number of procedures required to start a business* ...........................04 11...................................02 4..............................................................03 5.......86 Restriction on capital flows ...............97 Local supplier quality .....02 1.......08 6..........128 11th pillar: Business sophistication 11.....................03 3............................................................07 6....................................................63 Extent of marketing..103 Rigidity of employment* ....63 Degree of customer orientation ....................................41 Quality of the educational system......21 Value chain breadth .09 Cooperation in labor-employer relations...................28 Judicial independence ...........13 1..............................................................................................49 Availability of scientists and engineers ....................................21 Business costs of terrorism .23 3rd pillar: Macroeconomic environment 3................26 Internet bandwidth* ............n/a Agricultural policy costs....15 Quality of math and science education............................89 Organized crime ...............................03 9.................52 Business impact of rules on FDI ..........................27 8th pillar: Financial market development 8.................51 Tuberculosis incidence* .....................93 Trade tariffs*............................................................69 Utility patents per million population*......................................................................21 Property rights.........04 12.34 Local availability of research and training services..............................02 8....... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...............14 1.1 Malaria incidence*...................................05 11...................................................................................................03 7......12 6...................09 4.............1 Business impact of tuberculosis ..............................52 Life expectancy* .....................................................................................................29 Female participation in labor force* .........82 Redundancy costs* .......50 Company spending on R&D.....................07 5...01 5..............................................................................................................22 Broadband Internet subscriptions* .............................................................04 2..........................................................................................................06 1..................................................................28 Firm-level technology absorption ...........................................02 7.........................02 9................10 6...................................94 Effectiveness of anti-monopoly policy ......13 Quality of management schools .69 Extent and effect of taxation........68 Business costs of crime and violence........18 1..................................................................................................................................................................................................08 1.67 Willingness to delegate authority..........................

......................19 ...........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..34 ..5................................................. 1980–2009 Population (millions).20..............................................................................5.................5.....7 6th pillar: Goods market efficiency..4 Government instability/coups ..............................................................8 96 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.................................5.....27 ..2...............................................2....................5.......................1 Factor driven Basic requirements........43.....4................................................................4...........................4 GDP per capita (US$) .....1 Foreign currency regulations...................................8 Access to financing .........1 7th pillar: Labor market efficiency ............0 5th pillar: Higher education and training .......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .........5......5 Tax rates ..6 Tax regulations .....................0..............................6 Financial market development Goods market efficiency Labor market efficiency Belgium Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations .......19 ........5.......................1 Transition 1–2 1 GCI 2009–2010 (out of 133).....5 3rd pillar: Macroeconomic environment ..2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......533 GDP (PPP) as share (%) of world total .1 Inefficient government bureaucracy.........................6 GDP (US$ billions)............................16 .....6 8th pillar: Financial market development..................22...2 12th pillar: Innovation........................15 ....................................7 .........470....5 Inflation ...........11 ................................6 Crime and theft .17 .....3.......8 Corruption....7..........7 Poor work ethic in national labor force .......4...10.......................................4............................................16................................................18 ......................2 10th pillar: Market size.....................................................................................21 .................................................5.............9...................................................43 .......................5...1 ......................0...............................9 11th pillar: Business sophistication..............4............5................ respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.................2...............................55 Belgium 40...................000 20.6 4th pillar: Health and primary education ....1 GCI 2008–2009 (out of 134)............0... The bars in the figure show the responses weighted according to their rankings....1: Country/Economy Profiles Belgium Key indicators........4 Poor public health ......22 .......0...............................................7 Inadequately educated workforce...........................5.........................000 Advanced economies 30..............5...6 9th pillar: Technological readiness.......................72 .............................................5 1st pillar: Institutions ........................6..29 ........0........8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .............9 Policy instability......6 Inadequate supply of infrastructure ..4..5...............................000 10.............................................15 .... 2009 GDP (PPP) per capita (int'l $)...1..........0 2nd pillar: Infrastructure.....................13 ......................

.............................................11 1...17 Venture capital availability.................................................................................34 Prevalence of trade barriers .........................................................................................................7 Quality of math and science education............01 7...........................7 Company spending on R&D.... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 97 ...........................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .....................................01 3..........................135 Total tax rate* .05 1.......30 10.............14 1................08 6..06 7.................04 2.........26 Intellectual property protection .............65 Flexibility of wage determination ........................................01 2..................01 6...18 Broadband Internet subscriptions* ......12 Firm-level technology absorption ..................18 Control of international distribution ......25 Judicial independence ...05 11......06 5................................................126 Rigidity of employment* ..................................................................05 2..................................................08 11......................17 Interest rate spread* ................................28 Pay and productivity ..........................................................01 1........28 Favoritism in decisions of government officials . An asterisk (*) indicates that data are from sources other than the World Economic Forum..........................18 1..05 3.....10 Affordability of financial services.........04 5........................................23 Efficacy of corporate boards ..........................................06 11...26 Quality of the educational system....................20 Financing through local equity market .........24 Quality of railroad infrastructure ....1 Business impact of tuberculosis ............10 Tuberculosis incidence* ......................41 3rd pillar: Macroeconomic environment 3.......03 3.....................4 Extent of market dominance...07 4....................07 5...............................................01 5.............47 Burden of government regulation ..13 10th pillar: Market size 10.................................................41 Legal rights index* .....................................................17 1...........06 8.............13 Business impact of rules on FDI ....................21 Property rights......................01 8........02 3.........................................03 1.....................................................................32 Burden of customs procedures.............................................25 Mobile telephone subscriptions* .................................04 9...............................................................................................................................................................17 Brain drain .............................................114 Number of procedures required to start a business* ............06 2..............................................................14 Available airline seat kilometers* ...02 8..........47 Business costs of crime and violence...................................5 Effectiveness of anti-monopoly policy ..........08 2................03 12..10 Buyer sophistication .......................11 Quality of port infrastructure ..............01 9..67 Ease of access to loans.....................................................22 Life expectancy* ........................09 Quality of overall infrastructure ....25 Restriction on capital flows ..........................................................03 6........................................................................................................07 Capacity for innovation ..........09 6...31 Public trust of politicians ............................18 Quality of primary education .............................07 8........................................................................26 Nature of competitive advantage ..............................10 Value chain breadth ..................................23 Diversion of public funds.....09 Cooperation in labor-employer relations.....................................03 5...........................05 8.............................................85 National savings rate* ..............................................................................07 2.....10 Gov’t procurement of advanced tech products ........................13 1................05 6.01 4......15 6...................................................................................................127 Redundancy costs* ....03 7.......52 Efficiency of legal framework in challenging regulations ...........08 8........08 7.9 Trade tariffs*.4 Internet access in schools....55 8th pillar: Financial market development 8............................................12 Quality of scientific research institutions ............48 Irregular payments and bribes....14 6...25 Reliability of police services .........04 6...................04 4..................................................................................01 Domestic market size index*.........................................................................................12 1.......................05 5..................03 8................04 1......02 4..................................................07 6...........................................................07 1..55 Infant mortality* ...............................................14 12th pillar: Innovation 12......................26 Organized crime ....88 Reliance on professional management ..21 Strength of auditing and reporting standards.......120 Regulation of securities exchanges ....................18 Notes: Ranks of notable competitive advantages are highlighted...................................2 Primary education enrollment rate* .............4 Prevalence of foreign ownership .......................121 Efficiency of legal framework in settling disputes .08 1.....01 12.1 Malaria incidence*............................................................................05 12....................39 Production process sophistication...........12 6.......................................02 2...............10 1..................33 Soundness of banks ...........27 Wastefulness of government spending ..................................................................................................02 Foreign market size index* .....................................................................13 Fixed telephone lines* ..................07 11.................................................13 Internet bandwidth* ...........................64 Inflation*..........................6 Agricultural policy costs...........02 7...............04 8...........................................10 Local supplier quality .....6 State of cluster development............06 6...............................................06 Government budget balance* ..................02 9.......08 4......27 Protection of minority shareholders’ interests .29 Strength of investor protection* ...............................................11 Tertiary education enrollment rate*.................................................................20 Quality of roads ..........................................37 Hiring and firing practices..................17 4th pillar: Health and primary education 4.....05 4..........02 5......13 Utility patents per million population*..........02 6.............................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1................21 11th pillar: Business sophistication 11.................02 1..................................................................39 9th pillar: Technological readiness 9................................................................ For further details and explanation.................................................03 11..............................03 9......................10 Business impact of malaria ...................................04 7..9 Extent of staff training.........................................................................16 1............4 Quality of air transport infrastructure ............28 FDI and technology transfer...........28 Ethical behavior of firms..........25 5th pillar: Higher education and training 5.........16 2nd pillar: Infrastructure 2..............19 Internet users* .....2 Quality of management schools ............................19 1.......................................44 Transparency of government policymaking..........18 Female participation in labor force* ............................14 Willingness to delegate authority........................................................09 Availability of financial services ......................1: Country/Economy Profiles Belgium 7th pillar: Labor market efficiency 7......................................15 1.........................9 Extent of marketing...........04 3....04 12....................................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..................13 6....45 Degree of customer orientation ..........05 9...........18 HIV prevalence* ...........20 1..................47 Availability of scientists and engineers ................62 Business costs of terrorism ..................07 7..................82 Government debt* ...............06 1.............................04 11..06 Availability of latest technologies .............................................................02 12......11 6...........09 1.....09 Local supplier quantity...........................02 11.....................05 7...................26 Business impact of HIV/AIDS..........09 4..........01 11...10 6.20 Local availability of research and training services........13 Extent and effect of taxation.............35 Quality of electricity supply .........15 Intensity of local competition ................................15 2...............................06 4................................127 Country credit rating*...........................................6 Time required to start a business*......06 12.......03 2.....03 4........................................19 University-industry collaboration in R&D .........................................

.....02 Benin 3...............................9 GDP (US$ billions)............11.3..................................8 98 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers........4..8...............0....108 .................104 ..0.......85 ..........................3 Inflation ....2.......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..........................0...20........7 Foreign currency regulations.....2...........82 ....0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..7 10th pillar: Market size.......................................................................................................................1: Country/Economy Profiles Benin Key indicators........................4........3....................2..................................4....8 9th pillar: Technological readiness........2 Government instability/coups .................. 2009 GDP (PPP) per capita (int'l $)..........................................99 ...6 GCI 2008–2009 (out of 134)........3 11th pillar: Business sophistication.....................3 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..........6 2nd pillar: Infrastructure.....3..............2...3.........9 Inefficient government bureaucracy................. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .1 Inadequate supply of infrastructure ...................................................................9 1st pillar: Institutions ...............................5 Crime and theft .................000 1....................5 12th pillar: Innovation............................................................................................87 ..0.......2.7 3rd pillar: Macroeconomic environment ....21.........................122 ....100 ...............5 4th pillar: Health and primary education ......6 Restrictive labor regulations .......8 7th pillar: Labor market efficiency ...........................................120 .............3.......9...........60 .......................................................4 Policy instability......................................8 Poor work ethic in national labor force ..........103 .......3........................81 ...........................3......................................5 Corruption..............................................5................2....................112 ..............8........3......6........ 1980–2009 Population (millions)..3........7 Tax regulations ..2 6th pillar: Goods market efficiency..............4 5th pillar: Higher education and training .............................2 8th pillar: Financial market development..................................10.............000 Sub-Saharan Africa 2...........................2 Financial market development Goods market efficiency Labor market efficiency Benin Factor-driven economies The most problematic factors for doing business Access to financing ...............4 Inadequately educated workforce....................7 GDP per capita (US$) ......................................................7 Poor public health ..................................................3.....................................113 ..........................0..................................1...............6 Factor driven Basic requirements...................3........7 Transition 1–2 1 GCI 2009–2010 (out of 133)...............124 ......1 Tax rates ............... The bars in the figure show the responses weighted according to their rankings...........103 ............4............3...711 GDP (PPP) as share (%) of world total .95 ..........................................................106 ..................

...............................................107 Quality of railroad infrastructure ....90 Notes: Ranks of notable competitive advantages are highlighted............. For further details and explanation............................................................01 5...............04 1.....117 Public trust of politicians .....................................14 1......127 Efficacy of corporate boards ..103 9th pillar: Technological readiness 9.....................................................................................................................03 11.........112 4th pillar: Health and primary education 4....................03 12..................................06 8..01 7...............110 Firm-level technology absorption .....................................................01 9.......................................................................20 1....................09 4............84 Affordability of financial services...............................................................02 4.........................90 Business impact of rules on FDI .........................................................................................................03 3...........................................59 National savings rate* ..........40 Burden of government regulation ....................01 12............66 Efficiency of legal framework in challenging regulations ...............57 Venture capital availability...11 6.......108 Fixed telephone lines* ..................................09 Availability of financial services ................................05 7....130 Nature of competitive advantage ....................................45 Quality of math and science education..................08 7............09 Local supplier quantity...........110 Quality of primary education ....................06 11.........................................07 2....05 11.121 Mobile telephone subscriptions* ........................................06 6...................................104 6.......................................................................................................................................75 Wastefulness of government spending ...............................................................17 1..............70 Pay and productivity ................................128 Broadband Internet subscriptions* ..................82 12th pillar: Innovation 12......................................12 6...........................................................................................57 Control of international distribution ...................44 Flexibility of wage determination .........110 Extent of marketing....................................18 1......74 Extent of market dominance..............................103 Internet users* ...................13 1...............04 7.............................111 HIV prevalence* ................................................................................................................................................................................................62 Legal rights index* ...11 1..........................129 Number of procedures required to start a business* .......................15 1..............120 Malaria incidence*......09 Cooperation in labor-employer relations.02 8............................73 Production process sophistication.............................................................................................03 1.......118 Willingness to delegate authority.06 2.......................01 3.57 Time required to start a business*..............................112 Tuberculosis incidence* .........05 3..........96 Strength of auditing and reporting standards................... An asterisk (*) indicates that data are from sources other than the World Economic Forum....................101 Local availability of research and training services...............................121 10...................67 Strength of investor protection* ...................................................................................14 6.....................125 Quality of roads .......The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1...........................81 State of cluster development...........................................................................................................................10 Business impact of malaria .....02 9..................................76 Regulation of securities exchanges ..................................100 Hiring and firing practices...........................55 Intellectual property protection .05 1..........................................06 1.......118 10th pillar: Market size 10.....................................07 6...n/a Government debt* ..................................................................122 Tertiary education enrollment rate*......53 Interest rate spread* .02 6...............02 2.................................................................................60 Quality of management schools .....123 2nd pillar: Infrastructure 2......................03 9.................................03 8................................21 Availability of scientists and engineers ......................07 8......08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .....01 Domestic market size index*.................................04 2................02 1..................37 Protection of minority shareholders’ interests ....................................................................03 7......91 Diversion of public funds......60 Quality of scientific research institutions ..07 5..................................42 University-industry collaboration in R&D ................128 Reliability of police services .............02 12...................95 Agricultural policy costs.....55 Ethical behavior of firms.................126 Life expectancy* ..................85 Company spending on R&D...106 Local supplier quality ...............02 7....02 Foreign market size index* .............................................................15 Intensity of local competition ...........................................................130 11th pillar: Business sophistication 11...........02 5.........................62 Restriction on capital flows ...................90 2........87 Prevalence of foreign ownership ...............04 6........07 Capacity for innovation ........08 2............................93 Burden of customs procedures....04 4............................90 Favoritism in decisions of government officials .....89 Brain drain ....03 5..........118 Quality of electricity supply .............85 Business impact of HIV/AIDS........02 11..................................................................................................91 Value chain breadth ..80 Primary education enrollment rate* ..........12 Country credit rating*....07 1..98 8th pillar: Financial market development 8....88 Quality of port infrastructure ............................35 Redundancy costs* .....07 11.12 1...............................................21 Property rights.........115 FDI and technology transfer..........................................................04 8.....01 11..............................04 5.118 Quality of the educational system.....10 1..................04 9.......121 Inflation*...............08 8.................................................................96 Available airline seat kilometers* ...04 12.....77 5th pillar: Higher education and training 5.......134 Business impact of tuberculosis ..............01 1...................................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...69 Female participation in labor force* .........58 Rigidity of employment* ...........99 Organized crime ...............................19 1.............................50 Internet access in schools............................................78 Business costs of crime and violence....108 Infant mortality* ...........09 6..........................06 4.09 1....................08 6..........................03 6...01 8...............................75 Transparency of government policymaking.......................................1: Country/Economy Profiles Benin 7th pillar: Labor market efficiency 7......................................................................125 Judicial independence ......01 6..........................................................05 2....................................06 7............................................................128 Internet bandwidth* .........80 Irregular payments and bribes........93 Prevalence of trade barriers ..92 Soundness of banks ......05 4.55 Extent and effect of taxation.......05 6.........24 Effectiveness of anti-monopoly policy .............06 Government budget balance* .......01 2..................04 3......05 9..02 3...10 6..........106 Buyer sophistication ................................................................44 Business costs of terrorism ....106 Gov’t procurement of advanced tech products ...................................16 1...09 Quality of overall infrastructure .......................06 12.........05 8.....................................03 2............08 11.....................06 5.....................34 Efficiency of legal framework in settling disputes .......................62 Ease of access to loans................................07 7........................................03 4.................72 Degree of customer orientation ....................................................13 6.......108 3rd pillar: Macroeconomic environment 3................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 99 ......05 12......................59 Utility patents per million population*.....91 Total tax rate* .......................................06 Availability of latest technologies ...........................05 5..........................07 4.............................................102 Trade tariffs*................114 Reliance on professional management ...................04 11................................01 4..........08 4......................76 Quality of air transport infrastructure .............................08 1....................................77 Financing through local equity market .........................................82 Extent of staff training......................

........07 Bolivia 12....3............ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...................117 .5 Crime and theft ..............................................6 GDP per capita (US$) .....................................0.................7 4th pillar: Health and primary education ..........................................120 ............2 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .................000 3.9 11th pillar: Business sophistication........59 .........................2...................3....................3.........3........7 10th pillar: Market size.....136 .127 ......125 .................3.........2................6 Transition 1–2 1 GCI 2009–2010 (out of 133).........8 2nd pillar: Infrastructure....3 12th pillar: Innovation...8 Poor work ethic in national labor force .......................................................9 Poor public health ..................................................................6 6th pillar: Goods market efficiency............ The bars in the figure show the responses weighted according to their rankings...........................................724 GDP (PPP) as share (%) of world total ....................2 100 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.............................10................................3....................7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....100 .......................................136 .......2.........4 Factor driven Basic requirements........................................1 Tax rates ...........2 Inadequate supply of infrastructure ......................................3...........................................5 Financial market development Goods market efficiency Labor market efficiency Bolivia Factor-driven economies The most problematic factors for doing business Access to financing ........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011...7.......4..........3..........0...................0 1st pillar: Institutions .........................................................118 .........2..............5........................2..............9......1....................3 8th pillar: Financial market development............4...........86 ..................3......................2.......14...............2 Inefficient government bureaucracy...........................2 5th pillar: Higher education and training ...3...................118 ....................8 Inadequately educated workforce..14....20....8.100 ..3................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.......................................127 .............1.....108 ....136 ................4............2 Policy instability.............4 9th pillar: Technological readiness..................................3..............1: Country/Economy Profiles Bolivia Key indicators.0 3rd pillar: Macroeconomic environment ............9 GDP (US$ billions).......................5..............3 Government instability/coups ......................................................................101 ..000 Western Hemisphere 9...................................1 Foreign currency regulations..2................................100 ......................9 Inflation ...........................................................................2.....4 GCI 2008–2009 (out of 134)...4 Tax regulations .......................................................000 6..........1......17.............. 1980–2009 Population (millions)............................125 ..9 Corruption.. 2009 GDP (PPP) per capita (int'l $)..................................1 7th pillar: Labor market efficiency .2 Restrictive labor regulations ................

................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 101 ...................11 1..........105 12th pillar: Innovation 12...............................08 4...............................99 Willingness to delegate authority.....................................01 7.......01 2............115 Production process sophistication.......................01 3..........................................................122 Reliance on professional management .......................................62 8th pillar: Financial market development 8...................03 6..........................................139 Diversion of public funds....78 Notes: Ranks of notable competitive advantages are highlighted..........123 Flexibility of wage determination ............124 Strength of auditing and reporting standards..........................06 2.....05 9.....................74 Country credit rating*.........01 9......105 Extent of marketing..............................135 FDI and technology transfer.................108 Quality of primary education .......................................................................................08 2.......04 2............................................02 12........131 Business impact of rules on FDI ........09 6....131 Firm-level technology absorption ......................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter......................80 Regulation of securities exchanges ......127 Quality of air transport infrastructure ......123 Company spending on R&D..135 Transparency of government policymaking.10 Business impact of malaria ..............06 11..............09 1.................................................................................02 2.......05 4........................................02 1............................................14 National savings rate* ...04 1...............................................................................79 Fixed telephone lines* .....................................98 Prevalence of trade barriers ..................................................................................................15 1...................................125 Efficacy of corporate boards ........................................06 7.........................03 2.............................................................................................01 12............105 Business impact of tuberculosis .................................01 5.............................19 1............72 5th pillar: Higher education and training 5....................110 Quality of math and science education.......95 Rigidity of employment* .........126 Extent of market dominance............................04 12..............13 6...........................03 9..................03 1............................................................................................................................................128 Time required to start a business*....06 12....................03 5........04 11.......13 1.........................136 Degree of customer orientation .........85 Quality of scientific research institutions ....20 1...09 Local supplier quantity....05 6....................131 Trade tariffs*..............94 3rd pillar: Macroeconomic environment 3........................................................................................09 4.......................118 State of cluster development..........06 4.................01 6...... An asterisk (*) indicates that data are from sources other than the World Economic Forum......................................04 6.....10 6.............05 8...............120 Judicial independence ...14 6......121 Quality of railroad infrastructure ...........................................130 Buyer sophistication .........116 Soundness of banks ............117 Reliability of police services ...................89 10.................................................................................94 Quality of electricity supply ......................07 2.............07 7.11 6..........................107 Life expectancy* .................................................................01 8..............02 Foreign market size index* ...05 12.The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........................................121 6..........................................................1: Country/Economy Profiles Bolivia 7th pillar: Labor market efficiency 7......83 Financing through local equity market .................85 Tertiary education enrollment rate*......................................................01 4........132 Business costs of terrorism .......................78 Internet bandwidth* ....................100 University-industry collaboration in R&D ..............................................................110 Organized crime ........02 3................08 1.................114 4th pillar: Health and primary education 4..........135 Internet users* ........................................06 Availability of latest technologies ...06 6.....05 7...............................................07 1................................................................................................................................05 3.......74 Efficiency of legal framework in settling disputes ...............118 Primary education enrollment rate* .94 Quality of port infrastructure ....................................................................06 5.......02 4.........................16 1.15 Intensity of local competition ...................................................................................128 Wastefulness of government spending .......................... For further details and explanation.................................136 Hiring and firing practices.......129 Favoritism in decisions of government officials ...........109 Irregular payments and bribes..........................61 Quality of the educational system...............................................02 9....99 Mobile telephone subscriptions* ................05 1.....................................104 Malaria incidence*.....................................................21 Property rights......................................124 Extent and effect of taxation................................12 1...87 Legal rights index* .95 Ease of access to loans................................08 6....116 Local supplier quality .08 7......................96 Affordability of financial services.104 Business costs of crime and violence...........................05 5....................101 Broadband Internet subscriptions* .06 Government budget balance* ..........118 Agricultural policy costs...........03 12...03 4.....122 Availability of scientists and engineers ...........................................79 Restriction on capital flows .......................................................................................................07 8..............111 Nature of competitive advantage .......................01 1...............07 4..............05 2...03 11...............12 6................................................08 11.....105 Effectiveness of anti-monopoly policy ..............126 Gov’t procurement of advanced tech products ............................102 Control of international distribution .....................111 Total tax rate* ...................................................04 9.............109 Government debt* .........................................02 6.................87 HIV prevalence* ......131 Number of procedures required to start a business* .......03 3...............107 Burden of government regulation ..................109 Venture capital availability..............................97 Business impact of HIV/AIDS..............................................05 11....................14 1.................55 Infant mortality* ..134 9th pillar: Technological readiness 9.10 1.......................................................................112 Extent of staff training........02 5.....................................................................................136 Efficiency of legal framework in challenging regulations ............................................................................91 Prevalence of foreign ownership ......................................................................................................135 Brain drain .....09 Availability of financial services .......................119 Internet access in schools.............121 Local availability of research and training services.......04 7...........................09 Cooperation in labor-employer relations.07 6...128 2.................................................................09 Quality of overall infrastructure ..135 Pay and productivity ......................................................18 1............08 8...120 Utility patents per million population*.............121 Quality of management schools ....................07 11........07 Capacity for innovation ......................................04 5................129 Protection of minority shareholders’ interests ..................................03 7.................................135 Strength of investor protection* ..............02 7......................93 10th pillar: Market size 10.............98 Tuberculosis incidence* ..........118 Value chain breadth .................................04 4........06 1.114 Redundancy costs* ........81 11th pillar: Business sophistication 11................01 Domestic market size index*..............................109 Quality of roads ....52 Inflation*....................................................02 8...103 Available airline seat kilometers* ..........137 Intellectual property protection ........................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ....02 11....124 Female participation in labor force* ....138 Ethical behavior of firms.........................04 3.......................................................................................80 Interest rate spread* ....................17 1..............03 8............137 Burden of customs procedures..............................................................119 Public trust of politicians ..........................109 2nd pillar: Infrastructure 2...........06 8.......04 8...............07 5.........01 11.......

........4..2...............................2 8th pillar: Financial market development...3.............6 7th pillar: Labor market efficiency .......................109 .......... 2009 GDP (PPP) per capita (int'l $).................................................3............5 4th pillar: Health and primary education ....................127 ...................9........8 GDP (US$ billions).....................5 9th pillar: Technological readiness.......................6 Inadequate supply of infrastructure ......................................................9..........94 .....................................3.....................................................................1 2nd pillar: Infrastructure.88 ..............5..........................................11.......................................120 ........................0......04 Bosnia and Herzegovina 16............. 1980–2009 Population (millions)...........93 .3...............................................................9 11th pillar: Business sophistication...3..............................107 .......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011....2............................0....2..............................102 ......................................120 .3...................................3.....4 102 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers...............8..............................113 ........4 10th pillar: Market size...........115 .....................279 GDP (PPP) as share (%) of world total ..........7 Foreign currency regulations........................1 Infrastructure 6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....................................................................11............ respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.......................000 8.........................................................3......6 Poor work ethic in national labor force ................89 .....1 Government instability/coups ..............3..2..............6......2......................................................1 Poor public health .......85 ......17.........6 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors........................2 Tax regulations ...........8...2.........7......7 Transition 1–2 1 GCI 2009–2010 (out of 133)...........1 GDP per capita (US$) ..........13.......................3.5 Tax rates .....100 .....................................8 Inefficient government bureaucracy..........1: Country/Economy Profiles Bosnia and Herzegovina Key indicators...............4.6 Factor driven Basic requirements........81 ........................................3...........126 ..........................3.....5 Inadequately educated workforce.....000 4...............................2.1 1st pillar: Institutions ........................3......................6 Restrictive labor regulations ....5 Corruption..........................................................................6 Financial market development Goods market efficiency Labor market efficiency Bosnia and Herzegovina Efficiency-driven economies The most problematic factors for doing business Access to financing .............4...............8 6th pillar: Goods market efficiency.............4.....6 5th pillar: Higher education and training ...98 .2 3rd pillar: Macroeconomic environment .98 . The bars in the figure show the responses weighted according to their rankings..............................2 Policy instability..........................000 Central and Eastern Europe 12...................3 12th pillar: Innovation.........4 Inflation ...5 GCI 2008–2009 (out of 134)................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..5 Crime and theft ..........................................3...........

.........................4 HIV prevalence* .................................138 Available airline seat kilometers* ..................10 1....11 1...................................................................03 3.....102 Internet users* ........................................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........123 Prevalence of trade barriers ...................................................06 1...119 Affordability of financial services..........03 1...............................................18 1....................................................................................71 Local availability of research and training services.....05 8...91 10.73 Ethical behavior of firms...122 Burden of government regulation ..............05 9.........................................61 Pay and productivity .05 7.....104 Company spending on R&D.... For further details and explanation.....................................06 4.......03 8...............06 Availability of latest technologies ...................................10 Business impact of malaria ..................................05 2..............................................................133 Extent of market dominance.14 1..................06 5.....................................................06 11....................137 Efficiency of legal framework in challenging regulations ...08 8....................120 Soundness of banks ......03 4.........................06 12.............................................64 Organized crime ...........................................................02 5.08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ................114 Willingness to delegate authority.48 Fixed telephone lines* .............................................................................................01 8...............05 12.........................129 Reliance on professional management ............01 6...94 Reliability of police services ............................................01 1..................50 Mobile telephone subscriptions* .................................................109 Flexibility of wage determination ..........................120 Financing through local equity market ..............................................................139 Business costs of terrorism ..................23 Number of procedures required to start a business* ................05 11..........07 Capacity for innovation .............................................................04 4.................01 2.........................................................04 2................ An asterisk (*) indicates that data are from sources other than the World Economic Forum.........69 Notes: Ranks of notable competitive advantages are highlighted............10 6....130 Production process sophistication............................................................10 Redundancy costs* ...................................94 12th pillar: Innovation 12.................................02 3..02 Foreign market size index* ...........08 11...04 8...07 6................139 Strength of investor protection* ...40 Rigidity of employment* ...........................122 Protection of minority shareholders’ interests ..................04 11...........36 Quality of management schools ...............................116 Availability of scientists and engineers .......................02 12..05 6....................................................................112 State of cluster development........................09 Cooperation in labor-employer relations...13 1...........01 3.........02 1..................08 1.........................................................139 Quality of roads ..................................................03 7.........................117 Gov’t procurement of advanced tech products ........................................................................18 Business costs of crime and violence.04 6........................................................114 Extent of marketing..................05 5....................37 Tuberculosis incidence* ........................................13 6.........................05 1.................................48 Government debt* ......................................04 5.....................................56 Internet bandwidth* ...............................126 Restriction on capital flows .................15 1....The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1...............122 Favoritism in decisions of government officials .................................15 Intensity of local competition .....................128 Extent of staff training...........................05 4...............................100 Regulation of securities exchanges ................06 7.102 Ease of access to loans.........06 Government budget balance* .....................96 Wastefulness of government spending .......100 Irregular payments and bribes................71 Business impact of HIV/AIDS......07 7...19 1............21 Property rights..........................136 6..82 Internet access in schools..20 1.........03 12.................................02 2................................................................11 6..................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 103 .....74 National savings rate* .....................................02 8..........................07 2..........................117 2......................1: Country/Economy Profiles Bosnia and Herzegovina 7th pillar: Labor market efficiency 7.................................................113 Burden of customs procedures..............................03 6..........................................................07 1....................132 Total tax rate* ..............04 9................08 7...114 Time required to start a business*...................................95 Quality of port infrastructure .................................................................................................01 9..........12 1.................79 3rd pillar: Macroeconomic environment 3...............17 1...............02 6.126 Brain drain ..............65 Prevalence of foreign ownership .......04 7...................................77 2nd pillar: Infrastructure 2..1 Business impact of tuberculosis .............................05 3...........1 Infant mortality* .................04 12................58 Tertiary education enrollment rate*.................03 2...............07 11..................................09 4.........04 1...................................03 5.........................139 Strength of auditing and reporting standards............................100 Judicial independence .........................................06 8....................................105 Degree of customer orientation ....................02 7.09 Local supplier quantity.................107 Efficiency of legal framework in settling disputes .................................................................................................................................................16 1................97 11th pillar: Business sophistication 11..138 Female participation in labor force* ....02 4........................121 Agricultural policy costs..107 Buyer sophistication ........................96 Business impact of rules on FDI .................62 Life expectancy* .........08 4.......................06 6..........119 FDI and technology transfer.14 Interest rate spread* ...................................................................71 10th pillar: Market size 10................82 Hiring and firing practices..................122 Value chain breadth .........136 Transparency of government policymaking..................................................................................08 2.04 3..........12 6...........01 Domestic market size index*.............................09 1.............................07 4........116 Quality of scientific research institutions ........................................101 4th pillar: Health and primary education 4...........................................................................124 Inflation*........08 6........................75 9th pillar: Technological readiness 9........01 4........125 Extent and effect of taxation...............................................................................................................................03 11............133 Quality of electricity supply .........................................01 12...............64 Public trust of politicians ...................01 5....................................................................................1 Malaria incidence*....................06 2..............09 Availability of financial services .................82 Nature of competitive advantage ......................09 Quality of overall infrastructure .............................03 9.133 Diversion of public funds.........................................................59 Broadband Internet subscriptions* ..........................107 Local supplier quality .........................................07 5................................................................................14 6.........n/a 5th pillar: Higher education and training 5..........................91 Trade tariffs*...........................................108 Legal rights index* ..106 Control of international distribution ...........137 Quality of railroad infrastructure ..............50 Quality of primary education ..............................70 Quality of the educational system.................................................115 Utility patents per million population*............................44 Country credit rating*.......................................................50 Primary education enrollment rate* .........50 8th pillar: Financial market development 8.........133 Intellectual property protection ................138 Quality of air transport infrastructure ...............102 Quality of math and science education..02 9.................01 11....01 7.104 University-industry collaboration in R&D .........131 Efficacy of corporate boards ..........02 11...................116 Firm-level technology absorption .................................137 Effectiveness of anti-monopoly policy .............102 Venture capital availability..09 6...........07 8.....

............................94 .....5 Government instability/coups ...........1 GCI 2008–2009 (out of 134).......2 Corruption...1...............5 8th pillar: Financial market development..........................8.........................12............0 Financial market development 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 ..........7 Restrictive labor regulations .....4.................................9 Access to financing .............5 3rd pillar: Macroeconomic environment ..4 12th pillar: Innovation...4..56 ................3.........................2 Factor driven Basic requirements...............................................................................74 ........................000 Sub-Saharan Africa 12..4.........8 2nd pillar: Infrastructure.............04 Botswana 16.................1: Country/Economy Profiles Botswana Key indicators.............................6 6th pillar: Goods market efficiency........5 Tax regulations .....................................1 10th pillar: Market size......................0......................10...0 Inefficient government bureaucracy.......3.........................9 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......114 .........................................................3...4...17.......................... The bars in the figure show the responses weighted according to their rankings..4 Inadequately educated workforce.3...................2 11th pillar: Business sophistication.......................3.......................................4............6 Poor public health ....2.........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.......000 8..........8 Inflation .74 .................................6..........12....6 GDP per capita (US$) .............8 5th pillar: Higher education and training ...........................61 ............4 Crime and theft ..... 2009 GDP (PPP) per capita (int'l $)...................................4......0 GDP (US$ billions)........407 GDP (PPP) as share (%) of world total ............8 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......................000 4............85 ...........................................4..........................1 Tax rates .....................5 4th pillar: Health and primary education . 1980–2009 Population (millions)..............................47 ....................................58 .....3 Policy instability....76 ...66 ...........................93 .................99 .....................1 Foreign currency regulations.. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5........................0........2 7th pillar: Labor market efficiency ............2...........................104 .....................5 9th pillar: Technological readiness................................................4 1st pillar: Institutions ...................................2...................2............................3....4...................................................2............4...13......1 Transition 1–2 1 GCI 2009–2010 (out of 133).............6.....................................................................3......................8 Inadequate supply of infrastructure ..........2.........6 104 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..............32 ........102 ....................................3................11............................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..........................1...............................4..........................84 ...........76 .......4.................................................

.......09 4.................................................................................................69 Gov’t procurement of advanced tech products ......99 Extent of marketing...............................................01 Domestic market size index*............13 1..................................................................................................05 5................89 Extent of market dominance...........05 4.....82 Company spending on R&D..............................................12 6......................................................................................03 9................................17 1..101 Mobile telephone subscriptions* ....................03 7.......................01 2...............................................................................................................119 Local supplier quality .....18 1...............95 10th pillar: Market size 10............98 Internet bandwidth* ............11 Number of procedures required to start a business* ................108 Extent of staff training.....................75 Prevalence of foreign ownership .......................................03 6.........15 1........05 7.....................08 1.......................................01 9..............................65 3rd pillar: Macroeconomic environment 3....02 12..15 Burden of government regulation ..................................54 Quality of roads .........06 2..............44 Quality of port infrastructure .......4 Country credit rating*..............................................................................73 Affordability of financial services................08 8...09 Local supplier quantity.........................05 8............... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 105 ..26 Transparency of government policymaking......51 Efficacy of corporate boards ......37 Degree of customer orientation .............................12 1..........................06 12........................32 Efficiency of legal framework in challenging regulations ..84 12th pillar: Innovation 12.................65 Protection of minority shareholders’ interests .....................................107 Malaria incidence*............................81 FDI and technology transfer............................02 4....27 Hiring and firing practices.............52 Reliability of police services ...........................................................................................................08 6................................07 11....................29 Business impact of rules on FDI .........................................................08 7.06 6..................................78 Firm-level technology absorption ...79 Quality of management schools ...............................43 Ethical behavior of firms......103 Quality of scientific research institutions .........................111 5th pillar: Higher education and training 5...................52 Availability of scientists and engineers ......33 Inflation*..................................................16 1............08 2..........13 6...................22 Wastefulness of government spending ...........09 Availability of financial services ..88 Tertiary education enrollment rate*...114 Interest rate spread* .............................53 Trade tariffs*..........06 7............................07 8.................................................................60 Legal rights index* .......04 11...........................................01 8.............................................................................................99 Time required to start a business*...............83 Government debt* ..............................11 1.....................07 7..........05 3...............102 11th pillar: Business sophistication 11....................................02 6...........................................107 Production process sophistication..............48 Flexibility of wage determination ..09 Quality of overall infrastructure .......................................................29 Venture capital availability..................................................................................................47 Quality of railroad infrastructure ...............05 1..................63 Value chain breadth ......................01 5.............................................1: Country/Economy Profiles Botswana 7th pillar: Labor market efficiency 7.......................39 9th pillar: Technological readiness 9..113 Internet access in schools.............20 1..57 Primary education enrollment rate* ...........67 Redundancy costs* .09 Cooperation in labor-employer relations..............07 6.................................109 Nature of competitive advantage .01 1...............69 Ease of access to loans..........36 Prevalence of trade barriers ..............................14 6.......................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum...............01 6..................48 Quality of math and science education.............05 9......88 Fixed telephone lines* ....06 5..11 6..............................................73 8th pillar: Financial market development 8.86 Financing through local equity market ....................01 12..39 Regulation of securities exchanges ..132 HIV prevalence* ....04 7.............................94 Local availability of research and training services......................................................................................................................................83 Effectiveness of anti-monopoly policy ............06 8..........................81 Internet users* .................06 Government budget balance* ..........06 11.........35 Intellectual property protection ..............05 2....................................................................36 Strength of auditing and reporting standards.............08 11................01 7.................04 5........125 Control of international distribution ............................03 8..................................03 11......70 2.......................10 6............................................21 Property rights.......01 3..........02 7......13 Total tax rate* .......................................05 11...................................124 Agricultural policy costs.............................................02 5..............................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.......................................................46 Business costs of crime and violence....................................................117 Willingness to delegate authority........14 1.........................................................................................................02 2................27 Soundness of banks ............................................83 Extent and effect of taxation........................................................105 Utility patents per million population*................................................25 Burden of customs procedures..................................................04 12....................................46 Female participation in labor force* .........................02 3....................................................................21 Irregular payments and bribes............................................................04 8.........................................03 3...............06 Availability of latest technologies .....111 Pay and productivity ....................07 2..............................136 Quality of electricity supply ...................................................45 Diversion of public funds.......................................02 11.....................06 4..47 Restriction on capital flows .............................37 Strength of investor protection* .......47 4th pillar: Health and primary education 4........38 Judicial independence ............................05 6..............15 Intensity of local competition ........33 2nd pillar: Infrastructure 2.....................................................................10 1.........................83 Organized crime .................09 1................30 Favoritism in decisions of government officials ...............19 1...05 12................................................................................04 3...........131 Tuberculosis incidence* ......133 National savings rate* ...........10 Business impact of malaria ...........................07 4....................135 Business impact of HIV/AIDS.02 8.....................................................04 2....26 Business costs of terrorism ....03 5..................112 Buyer sophistication .......01 4.......................................................................46 Brain drain . please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...73 Reliance on professional management ................138 Infant mortality* ................................06 1.........................................................03 2...............33 Public trust of politicians ...................94 Available airline seat kilometers* ............................02 9........................122 Quality of primary education ...03 1...................04 1..............07 1............... For further details and explanation...................08 4...................................................01 11..70 University-industry collaboration in R&D ....90 Life expectancy* ..................................02 Foreign market size index* ........04 9.....................................07 5..............................90 Notes: Ranks of notable competitive advantages are highlighted.......................02 1..........09 6....04 6..86 Quality of air transport infrastructure ...101 10............................114 Quality of the educational system...................100 Business impact of tuberculosis .....94 Rigidity of employment* ..........03 12...........................................44 Efficiency of legal framework in settling disputes ..........08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .............................................03 4.....114 Broadband Internet subscriptions* ...............07 Capacity for innovation ......54 6..........................108 State of cluster development.......................04 4....

..... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ................9 10th pillar: Market size.... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5..........3......13......6 Inadequately educated workforce...11.............4...........0 GDP per capita (US$) ....................7 Poor public health ...31 ..3 1st pillar: Institutions ...........96 ........0 11th pillar: Business sophistication....574..................................2..56 ........ 2009 GDP (PPP) per capita (int'l $)......................................................5 Government instability/coups .........2............................8 Inflation ......................3 Corruption..1: Country/Economy Profiles Brazil Key indicators..........6.........7 Inadequate supply of infrastructure .......54 .................................................................................................3 Transition 1–2 1 GCI 2009–2010 (out of 133)..............7 Policy instability................000 6........44 ........................................................42 ...4.................111 ...........5 106 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.........0................4............................................4.2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...4......................... 1980–2009 Population (millions).........................................8............4.1.............1 8th pillar: Financial market development.4 5th pillar: Higher education and training ...2 Foreign currency regulations.............................................................4....................................193.................. The bars in the figure show the responses weighted according to their rankings.....87 Brazil 12.........000 Western Hemisphere 9..................6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............114 ...............................................4...............58 .....................3........93 ..............................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..19.....7 7th pillar: Labor market efficiency ......1 Factor driven Basic requirements........................0............................................7 GDP (US$ billions)..50 ..........1 Crime and theft ..........87 .....................................3....3 Tax rates ......1......5 12th pillar: Innovation.0 4th pillar: Health and primary education ..................................8 Restrictive labor regulations .........4......4 9th pillar: Technological readiness...2 GCI 2008–2009 (out of 134)......5.........................................220 GDP (PPP) as share (%) of world total ..............10 ........................9 Inefficient government bureaucracy..........6 2nd pillar: Infrastructure........17...0 3rd pillar: Macroeconomic environment .......38 ...9 Access to financing ...................................5 Poor work ethic in national labor force .......................3 6th pillar: Goods market efficiency......4..............5 Financial market development Goods market efficiency Labor market efficiency Brazil Efficiency-driven economies The most problematic factors for doing business Tax regulations .................4..........................................................4.........................................0......................12.......58 ............................................................................................................000 3..................64 ...................3..................5...........................................................................1................0.62 ..................................2....86 ..5..........5................................

......51 National savings rate* ...................................64 Strength of investor protection* .....................................04 12........64 Efficacy of corporate boards ..............06 8........50 Availability of scientists and engineers ...................................................03 9...80 Pay and productivity ..............................74 Ethical behavior of firms................06 4......................81 Burden of customs procedures.........8 10......................03 5....................................................................................06 6...05 6................................08 6......................06 12........................................................................................89 Infant mortality* ....................................01 6..76 Business impact of rules on FDI ...............01 11............................................104 Business impact of tuberculosis ........46 FDI and technology transfer..........................68 5th pillar: Higher education and training 5..............139 Total tax rate* .............123 Quality of air transport infrastructure .04 3......119 Trade tariffs*..............76 Favoritism in decisions of government officials ..........................04 1.........................................................................................01 7....................03 12...................01 5.......................87 Business costs of terrorism .............................5 Legal rights index* ...........76 Quality of primary education ..................................131 Redundancy costs* ...............................07 4...........................................................................22 Willingness to delegate authority.....60 Restriction on capital flows ................01 Domestic market size index*.136 Government debt* ...................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ............14 Regulation of securities exchanges ........05 11.............................53 6....07 6..02 8............................................12 6...................06 2.............03 2.....23 Internet users* .................................................................15 Business costs of crime and violence...................09 6.......................................61 Notes: Ranks of notable competitive advantages are highlighted.................04 7....................22 Tertiary education enrollment rate*...............09 1.......................................................................................................................................................03 4..................84 Country credit rating*.04 8.....................................25 Prevalence of trade barriers .....................103 9th pillar: Technological readiness 9....................................114 Hiring and firing practices..........................72 Local availability of research and training services......06 Availability of latest technologies ..........................71 Transparency of government policymaking..103 Quality of math and science education...............07 11.................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....................................04 6...........................105 Quality of railroad infrastructure ..................................................................................................................................................................................................09 4........................84 Quality of roads ............................................72 Intellectual property protection ............85 Reliance on professional management ...05 3........58 Internet bandwidth* ......08 4.............................71 Judicial independence ...............05 7.23 Nature of competitive advantage ....03 8...........................................................................04 11........01 8...................94 Strength of auditing and reporting standards..................121 Public trust of politicians ...02 12.......52 Financing through local equity market ...................101 Inflation*.06 5...................39 Female participation in labor force* .55 Tuberculosis incidence* ...................60 Control of international distribution .93 Available airline seat kilometers* ............02 1............65 Quality of the educational system..04 5.05 8.83 Efficiency of legal framework in challenging regulations .....................................06 Government budget balance* ....08 1...............76 3rd pillar: Macroeconomic environment 3....10 1.......................................................126 Quality of management schools ...........................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.............................36 Extent of staff training...29 State of cluster development....................07 7............................03 1...............................57 Broadband Internet subscriptions* .......05 2..................39 Extent and effect of taxation....06 1..............................................02 7..............07 Capacity for innovation ...............................65 Venture capital availability.............................02 9..............52 Brain drain .......76 Life expectancy* ...............15 1.............................05 9...08 7......................................................................9 Local supplier quality .......................................................................27 Production process sophistication...........05 5...................................116 Rigidity of employment* ...............114 Prevalence of foreign ownership ........12 1...............................07 1.....................................................................................................06 11..29 University-industry collaboration in R&D ....03 7..........................................................62 Mobile telephone subscriptions* ............................127 Primary education enrollment rate* ...................................................................09 Cooperation in labor-employer relations...................................19 1...................87 Quality of port infrastructure ....09 Quality of overall infrastructure ..18 1.......................................................................09 Local supplier quantity....................................................08 11.........................................................08 2...............................................04 2...50 Buyer sophistication ....................11 1.......05 1..........................................................01 12..............................02 4....................................42 Company spending on R&D...21 Property rights...................02 6................01 9......................................07 8...... An asterisk (*) indicates that data are from sources other than the World Economic Forum.............07 2......................................................67 Protection of minority shareholders’ interests ..................11 6..........15 Intensity of local competition .............................73 Internet access in schools....................06 7...........................................13 6...80 8th pillar: Financial market development 8...........................................1: Country/Economy Profiles Brazil 7th pillar: Labor market efficiency 7..93 Interest rate spread* ........29 Extent of marketing.........89 Value chain breadth ..9 Quality of electricity supply ..............52 2...................................................132 Time required to start a business*.......................................46 Effectiveness of anti-monopoly policy ..................02 Foreign market size index* ............07 5........................................................43 12th pillar: Innovation 12.......10 Business impact of malaria ......................136 Burden of government regulation .......................................................................63 Fixed telephone lines* ...13 1........................................125 Reliability of police services ...123 Organized crime .........05 12.......135 Agricultural policy costs.....................................17 1......................................02 5...............68 HIV prevalence* ............50 Extent of market dominance...............68 Utility patents per million population*............02 3......90 Flexibility of wage determination ....................139 Efficiency of legal framework in settling disputes ...............................01 3.............50 Firm-level technology absorption ................................................................14 1.......10 6...................122 Degree of customer orientation .............73 Soundness of banks .............................66 Business impact of HIV/AIDS....81 Malaria incidence*............................................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 107 ...59 2nd pillar: Infrastructure 2.........02 11..............01 1...........127 Irregular payments and bribes..20 1...........16 1................................29 Quality of scientific research institutions ........34 Gov’t procurement of advanced tech products ........03 6................................56 10th pillar: Market size 10.............................09 Availability of financial services .89 Diversion of public funds..........08 8.....................14 6............................74 Wastefulness of government spending ............................................04 9..........................................01 2..........................................................................................04 4..45 Ease of access to loans............................27 Affordability of financial services..... For further details and explanation...............46 4th pillar: Health and primary education 4.........................03 11................01 4.............................................................02 2............03 3................................................05 4.......................................................................................................127 Number of procedures required to start a business* .....................24 11th pillar: Business sophistication 11......

...3 3rd pillar: Macroeconomic environment .4................1.........12...5 1st pillar: Institutions ..................72 .............0....4.................................325 GDP (PPP) as share (%) of world total ................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .......10..................................1......................69 .4..................0 Crime and theft ..........118 ........................................78 ...................26........5 Inefficient government bureaucracy......0 5th pillar: Higher education and training ........5..............................7 Foreign currency regulations...........................3.............3 Poor work ethic in national labor force ..............6.......2 8th pillar: Financial market development..........................................................2......4..................1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....9 Corruption....................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.......8 Policy instability........1...................5 GDP per capita (US$) .......3 Inadequate supply of infrastructure ..1 Financial market development Goods market efficiency Labor market efficiency Brunei Darussalam Economies in transition from 1 to 2 The most problematic factors for doing business Restrictive labor regulations .....2.............................0................52 ...........0....9...................15..........................1: Country/Economy Profiles Brunei Darussalam Key indicators.....1..................2 Inadequately educated workforce.......................36 .................19..............5 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...55 ....................................1 7th pillar: Labor market efficiency ..................4 11th pillar: Business sophistication....49 ..........1 Access to financing ..................15....................8 Transition 1–2 1 GCI 2009–2010 (out of 133)...........................................................................................8 2nd pillar: Infrastructure.............4...............................0.............................3....................................77 ...........6 4th pillar: Health and primary education .............................03 Brunei Darussalam 80.............3 Inflation .........2....................6 GCI 2008–2009 (out of 134).............10 ..64 .....2 6th pillar: Goods market efficiency.4......4....................................3.............................................................4 GDP (US$ billions)..........000 Developing Asia 60............... 1980–2009 Population (millions).............................................4.................................................................32 ..............................................000 20... 2009 GDP (PPP) per capita (int'l $).......5.............................0 10th pillar: Market size..............7 Tax regulations ...5 Government instability/coups .......................1 .............................................................4...........67 .3 9th pillar: Technological readiness..............................................10....5 Poor public health ...........................................2 108 Transition 2–3 2 3 Innovation driven Institutions 7 Innovation Infrastructure 6 5 Business sophistication Efficiency enhancers...28 ...................9 Tax rates ....................5 Factor driven Efficiency driven Basic requirements...............................................................20 .............5. The bars in the figure show the responses weighted according to their rankings...............32 ..6.........4.......2.............8 12th pillar: Innovation.................000 40.....39 .................

....................04 9.......58 Quality of air transport infrastructure ...01 Domestic market size index*.....................................................03 7...48 Financing through local equity market ............................................................69 Internet access in schools..............09 Cooperation in labor-employer relations....29 Public trust of politicians ......126 10..................................04 3.............................................14 6.................75 State of cluster development.......................................87 Internet users* ...................................................................14 1......................33 Efficiency of legal framework in settling disputes .....07 7....70 Affordability of financial services......09 Local supplier quantity........................................10 1...........................13 1...................................................06 Availability of latest technologies .....................09 Quality of overall infrastructure ....................................................23 Primary education enrollment rate* ................................................................................................................................................................................................02 4..................................................02 7............................06 Government budget balance* ....................................07 5..05 9.........................................................19 1.................................................................................40 Female participation in labor force* .......07 8...03 5.33 Quality of railroad infrastructure ...........01 8..09 6..........................................60 Available airline seat kilometers* ................................72 Value chain breadth ...........................................90 11th pillar: Business sophistication 11...08 1.........58 Buyer sophistication ......................11 6................................................21 Property rights..15 1............39 Notes: Ranks of notable competitive advantages are highlighted.....04 2........96 Legal rights index* ..............05 8......14 Flexibility of wage determination ..17 1....................................................03 12.........................................................................................1 Malaria incidence*...................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 109 ................................06 11...91 Company spending on R&D.02 Foreign market size index* ........................................04 11............31 Quality of math and science education...........................93 Willingness to delegate authority........07 6.............................43 Favoritism in decisions of government officials ......................................01 2.................................................70 Burden of customs procedures...............................................................................................51 12th pillar: Innovation 12.....................................................................................01 6.......................6 Pay and productivity ..........................05 1........01 5.......68 Production process sophistication.......................................10 Business impact of malaria ..n/a Quality of port infrastructure ..................................................09 Availability of financial services ...........34 Judicial independence .....36 Ethical behavior of firms.....................................................................................55 Diversion of public funds............72 8th pillar: Financial market development 8.....46 Protection of minority shareholders’ interests ................04 6..............75 5th pillar: Higher education and training 5.....................06 8.......05 12.........................48 Interest rate spread* .............................................32 Strength of auditing and reporting standards.................05 11..................03 8..............................................................................03 3.......................................................................................................................n/a Country credit rating* .........74 Effectiveness of anti-monopoly policy ..10 6...38 Local availability of research and training services.............89 Tuberculosis incidence* ..45 Regulation of securities exchanges ...........................................................................03 1................76 Business impact of HIV/AIDS......................................02 9.............06 6..........01 11..................111 Control of international distribution ..........99 2nd pillar: Infrastructure 2...60 6.......................01 4.03 4..........................................................27 Quality of management schools ........77 HIV prevalence* ...................................................................30 Wastefulness of government spending ...............03 9...............................................13 Reliance on professional management ........................................23 Business costs of crime and violence............1: Country/Economy Profiles Brunei Darussalam 7th pillar: Labor market efficiency 7..........07 11................51 Degree of customer orientation .............13 Broadband Internet subscriptions* ..........................................13 6...............07 4.........1 Infant mortality* ................02 8.52 3rd pillar: Macroeconomic environment 3....06 2.20 1...........15 Total tax rate* ....134 Time required to start a business*............08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...........53 Efficacy of corporate boards ........06 5..............................................................36 Quality of roads ............69 Internet bandwidth* ........................03 2.......65 10th pillar: Market size 10.............05 6.......................58 Firm-level technology absorption ............80 University-industry collaboration in R&D ............................11 1........................................................................................................................75 Extent and effect of taxation........33 Availability of scientists and engineers .........112 Ease of access to loans.................................37 Quality of primary education .........................04 5.........115 Extent of staff training.......................................01 9.....04 4..02 2........02 5...07 2.......................................06 12..........................................................04 8....36 Efficiency of legal framework in challenging regulations ....................................83 Quality of scientific research institutions ........... An asterisk (*) indicates that data are from sources other than the World Economic Forum.............................37 Tertiary education enrollment rate*...............37 Redundancy costs* .110 Utility patents per million population*..............The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........03 11..................................................................05 3..................................................................................................06 1...46 Restriction on capital flows ........33 Venture capital availability....98 Local supplier quality ..55 Fixed telephone lines* .08 4..01 12.................32 Prevalence of trade barriers .......42 Brain drain .............60 Gov’t procurement of advanced tech products ....................................................................................................18 Irregular payments and bribes...........................89 Quality of electricity supply .........................04 1..02 11...22 Reliability of police services .......................46 Trade tariffs*......................................16 1....97 Quality of the educational system..........................18 1....67 Mobile telephone subscriptions* .31 Number of procedures required to start a business* ..........................................................07 Capacity for innovation ..134 Agricultural policy costs.......................................................03 6........................................................................88 Business costs of terrorism ...............08 8....67 Prevalence of foreign ownership ..............................................................05 7.......18 Organized crime ....12 1.........................19 Burden of government regulation ..........1 Hiring and firing practices..........................02 1..................................................33 Life expectancy* ........................15 Intensity of local competition ....73 Nature of competitive advantage .12 6.... For further details and explanation....................................................................02 3.................................05 5....................................................................1 Business impact of tuberculosis . please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..........52 Intellectual property protection ...2 Inflation*........08 6...............06 7..........09 4...........04 12..39 9th pillar: Technological readiness 9......................05 4.................72 Soundness of banks .........61 Extent of market dominance.......................................................................................................02 12...................05 2.......97 2...................................01 1..01 3............08 7..........................................08 11.........09 1........79 Extent of marketing.................................n/a 4th pillar: Health and primary education 4....................................................................................................................08 2..........23 Rigidity of employment* .......71 FDI and technology transfer..06 4..39 Strength of investor protection* ...................01 7........................................................6 National savings rate* ............02 6..................................07 1....................59 Transparency of government policymaking.................04 7...85 Business impact of rules on FDI .........................55 Government debt* .............

3............2.........................114 ......................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .........47.....................67 .......4.....3.......76 .........5....................................3............................................91 ............8 110 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..............1..........................15...1: Country/Economy Profiles Bulgaria Key indicators.................................................. 2009 GDP (PPP) per capita (int'l $)....5 12th pillar: Innovation.........4.......................................................0 9th pillar: Technological readiness..0 4th pillar: Health and primary education ..9...................76 ...................................1 6th pillar: Goods market efficiency...........................0 10th pillar: Market size.............................6.....................................4..................4.....8.......................80 ..5................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5...4..1 Access to financing ...............4...2..000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011....0 7th pillar: Labor market efficiency ...............8 Inefficient government bureaucracy............................................................................................42 .......9.....................1 5th pillar: Higher education and training ..........5 8th pillar: Financial market development.............................................................7 Inflation ......8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...8 Government instability/coups ...........3.5.95 ...............0 Factor driven Basic requirements.......................7 Inadequate supply of infrastructure ...........9 Financial market development Goods market efficiency Labor market efficiency Bulgaria Efficiency-driven economies The most problematic factors for doing business Corruption.............4...3 2nd pillar: Infrastructure.............000 8..............2 11th pillar: Business sophistication......7 Restrictive labor regulations .....3.............................................................................6...............................................92 ................................65 .......................................71 .......4.........1 GDP per capita (US$) .........4................2 Crime and theft ...2....13 Bulgaria 16.......000 4........2...............................................................................................5 Poor public health ...........................................6 Tax regulations ..3...........4....000 Central and Eastern Europe 12..223 GDP (PPP) as share (%) of world total .............................58 .......0 Poor work ethic in national labor force ..................48 .............4.......7........13.4 Tax rates .................................. 1980–2009 Population (millions)...........................1 Transition 1–2 1 GCI 2009–2010 (out of 133)......................9 Policy instability............................4 Foreign currency regulations...95 ............72 .....................6 3rd pillar: Macroeconomic environment ..0 GCI 2008–2009 (out of 134)........................................4....................................5 GDP (US$ billions)..........................7.63 .............7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...................... The bars in the figure show the responses weighted according to their rankings..4 1st pillar: Institutions .......................................82 ...............4.....0..............58 ..............................................................3 Inadequately educated workforce......

..113 Flexibility of wage determination ..127 FDI and technology transfer.......05 3..............06 6...........................................09 Quality of overall infrastructure .........................05 9.............................02 11.20 9th pillar: Technological readiness 9.09 1..................................84 2........................03 2........................86 Tuberculosis incidence* ......33 2nd pillar: Infrastructure 2.....................................................................................101 Favoritism in decisions of government officials .........09 6......................................................103 Organized crime ...21 Property rights..........................10 Business impact of malaria .........20 1................................................................................................105 Regulation of securities exchanges ........................................90 Control of international distribution ........................................................................112 Nature of competitive advantage ......09 Availability of financial services ...............................07 2.........................87 Effectiveness of anti-monopoly policy ..........................................................................11 1............................................................................................................06 4..............................02 6..77 Utility patents per million population*....1 Business impact of tuberculosis .................64 Business impact of HIV/AIDS............................................13 1.............................................03 6.........................65 11th pillar: Business sophistication 11....13 Country credit rating*.................65 Agricultural policy costs.........85 Quality of math and science education............05 6.............05 1....03 4.....................................................................02 9...............124 Strength of investor protection* ......09 Local supplier quantity...................42 Redundancy costs* .................44 Internet bandwidth* ..11 6............109 Legal rights index* ..06 5............................58 Reliance on professional management ....02 8........08 2............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...09 4....04 1............................16 1................................48 Broadband Internet subscriptions* ...........................107 Trade tariffs*...05 12..........125 Efficiency of legal framework in challenging regulations ................................15 Intensity of local competition .....................................31 Notes: Ranks of notable competitive advantages are highlighted................................................02 1........................04 5.................................................45 Mobile telephone subscriptions* .........................................104 Irregular payments and bribes.....................46 Quality of the educational system.................01 12..................................04 12....................130 Business costs of terrorism ......100 Production process sophistication.71 Restriction on capital flows .....................15 1......................94 Internet access in schools................................................07 8...............................47 Life expectancy* .................110 Strength of auditing and reporting standards.111 Financing through local equity market ...........................02 3...................10 1..........................71 HIV prevalence* ...........90 Burden of government regulation ...The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.................05 11.........................14 6............................18 1.......................................7 10th pillar: Market size 10.....................62 Venture capital availability.......................06 Government budget balance* .........98 Internet users* ..................................................................14 Time required to start a business*................................03 8........96 University-industry collaboration in R&D ................................35 8th pillar: Financial market development 8...........................................................................64 10......87 Availability of scientists and engineers ............................................................82 State of cluster development....08 11..............87 Quality of air transport infrastructure ..................................................79 Quality of scientific research institutions .......................................................04 8.........................................................................................08 7..........................59 Rigidity of employment* ..............116 Brain drain .................06 Availability of latest technologies ..........112 Degree of customer orientation ..........06 8.........90 Available airline seat kilometers* ............01 7..........82 Quality of electricity supply ............................................127 Female participation in labor force* ........64 National savings rate* ................05 5......................07 1................................................................91 Efficacy of corporate boards ...............01 2.....80 Extent of staff training.......67 4th pillar: Health and primary education 4...............................02 Foreign market size index* ...............14 1..07 7......112 Diversion of public funds............................................................110 Gov’t procurement of advanced tech products .......................................1 Infant mortality* .....................................................................................111 Protection of minority shareholders’ interests .....................................119 Transparency of government policymaking........02 2.................................01 1............02 5..............................................12 1..100 12th pillar: Innovation 12..................07 4....120 Quality of roads ..............................................................73 Company spending on R&D...............................4 Prevalence of foreign ownership .................................05 7..................................................................................................................................................................05 2.......137 Prevalence of trade barriers .12 6.................54 Quality of port infrastructure ......................................01 11.01 Domestic market size index*............02 12.............................. An asterisk (*) indicates that data are from sources other than the World Economic Forum......................76 Efficiency of legal framework in settling disputes .............................................08 8...........03 1................................111 Wastefulness of government spending .................04 3.92 Business costs of crime and violence....................66 Tertiary education enrollment rate*................114 Extent and effect of taxation..................67 Quality of primary education ........135 Quality of railroad infrastructure ......01 6..83 Total tax rate* ......1: Country/Economy Profiles Bulgaria 7th pillar: Labor market efficiency 7......................................76 Primary education enrollment rate* .....................89 Buyer sophistication ....................07 5................111 Soundness of banks .............06 7...............08 4......19 1.................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 111 ..............................111 Ethical behavior of firms.............................04 4....01 5...............69 Quality of management schools ................04 9......03 11..............01 3...........62 Interest rate spread* ..............121 Intellectual property protection ................51 5th pillar: Higher education and training 5...............07 Capacity for innovation .....................................05 8..................................09 Cooperation in labor-employer relations......................100 Willingness to delegate authority................................06 2.....06 1.............04 2..........................................03 12..........01 4........81 Value chain breadth .......36 Number of procedures required to start a business* ........01 8.................04 6.08 1..............................................................................08 6..................72 Local supplier quality ...94 Extent of market dominance........16 Pay and productivity ..........126 Burden of customs procedures............................135 6......................17 1..45 Local availability of research and training services.......01 9......100 Firm-level technology absorption .................................13 6............................................................1 Malaria incidence*.......................95 Affordability of financial services...................02 7..96 Fixed telephone lines* ..................................................06 11......................................16 3rd pillar: Macroeconomic environment 3.............................94 Judicial independence ...........................................64 Government debt* ............................................................................03 9.....02 4.....................................................................................06 12......................10 6..........07 6...89 Extent of marketing...................................................101 Public trust of politicians ..............................84 Inflation*................................04 11.........05 4...................03 7.........................................................................03 5.........................04 7.................46 Hiring and firing practices............................................ For further details and explanation......03 3...................................................................07 11..........102 Business impact of rules on FDI ...............................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .................124 Reliability of police services .....90 Ease of access to loans.....

............. The bars in the figure show the responses weighted according to their rankings................................................................................0 Crime and theft .................000 1................................3...90 ........................................................4.............4 Poor work ethic in national labor force .........1 Foreign currency regulations..3..........................2 112 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation Infrastructure 6 5 Business sophistication Efficiency enhancers..............6.....................134 ......5 6th pillar: Goods market efficiency..........6 Restrictive labor regulations ..........................................564 GDP (PPP) as share (%) of world total ................................0....24.124 ..............2 GCI 2008–2009 (out of 134)...3..................8 12th pillar: Innovation......................3......0.......9 11th pillar: Business sophistication...............................................................................................0 Tax rates ......1: Country/Economy Profiles Burkina Faso Key indicators.....................................8 Tax regulations ......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..........6 2nd pillar: Infrastructure................................3..............0............................................3............2 Transition 1–2 1 GCI 2009–2010 (out of 133).8 GDP (US$ billions).11...................................2...03 Burkina Faso 3............9........................127 .........................1 GDP per capita (US$) ......7 Policy instability..127 ..................98 .....9 Financial market development Goods market efficiency Labor market efficiency Burkina Faso Factor-driven economies The most problematic factors for doing business Access to financing .............8...119 .................0 Inefficient government bureaucracy.................2............................4 Inadequate supply of infrastructure ......15...3.....................1 9th pillar: Technological readiness....6 7th pillar: Labor market efficiency ....................................2.....135 .3 Corruption..........2........................................................3.........................8...........2..............7 10th pillar: Market size..................1 5th pillar: Higher education and training ................................................. 1980–2009 Population (millions)....134 ..........................................................000 Sub-Saharan Africa 2............2..............4.......2 8th pillar: Financial market development............................................... 2009 GDP (PPP) per capita (int'l $)..5 Government instability/coups ...............4 Factor driven Basic requirements.............................................15..............134 ..............................2............133 .........120 ...........3 1st pillar: Institutions ............2.........128 ...4....................4 Poor public health .........................................................3...........2 4th pillar: Health and primary education ......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...........................3....................................135 ................................91 ...........137 ............7.................................3................1 3rd pillar: Macroeconomic environment ....8 Inflation .....2.......................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.0....5 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......5 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...2.128 ..........................90 .............7 Inadequately educated workforce...................

.......................................................................................................92 Transparency of government policymaking.........................................................................12 1.................................01 2.............................04 4..02 5.......................05 8.14 1.................................02 8...........................................................12 6.......................................115 Public trust of politicians ..............08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ....05 9..........81 Reliability of police services ...................03 12.114 Brain drain ...13 6..80 Quality of air transport infrastructure .113 Firm-level technology absorption .................127 Fixed telephone lines* .............................................93 Rigidity of employment* ....09 Cooperation in labor-employer relations.......02 Foreign market size index* ...................................67 Pay and productivity .......1: Country/Economy Profiles Burkina Faso 7th pillar: Labor market efficiency 7.............................................................139 Nature of competitive advantage .......................03 6........................123 Internet bandwidth* .......................13 1..................................................................................136 Local availability of research and training services....................................................................10 6.................86 Business costs of terrorism .......14 Time required to start a business*...................06 5...................................15 Intensity of local competition ..........................................01 1................................................................................................................139 Production process sophistication................03 3..114 Judicial independence ......05 4........129 Quality of math and science education.........135 Willingness to delegate authority...............128 Extent of market dominance........................103 9th pillar: Technological readiness 9.....................................................06 8..113 Buyer sophistication ................69 Efficiency of legal framework in challenging regulations .........................................................02 9...........................................77 Strength of investor protection* ................78 Intellectual property protection ........................87 Quality of management schools ..............................89 Internet access in schools....138 Business impact of tuberculosis .....................n/a Government debt* .......09 4........................................04 9.....................91 Extent of staff training.........08 8...............01 Domestic market size index*......138 12th pillar: Innovation 12............................................................................................85 Ethical behavior of firms..............02 3..110 Efficacy of corporate boards ........137 Tertiary education enrollment rate*...........................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1...................135 5th pillar: Higher education and training 5..........................................137 Venture capital availability.............................07 11......02 2........07 2.....................70 Availability of scientists and engineers .....................................01 7......................................18 1....................128 Quality of roads .......................................05 3..............04 5...................06 7..06 2...........................................126 10th pillar: Market size 10....................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 113 ..03 11.....44 Trade tariffs*.16 1..117 Legal rights index* ...............................................06 12......132 Affordability of financial services..........................................................58 Company spending on R&D...............03 7........96 Local supplier quality .........11 1.....................86 Regulation of securities exchanges ...........................................10 Business impact of malaria .....03 4......112 10....................111 Business impact of HIV/AIDS.......131 11th pillar: Business sophistication 11..07 6...............................30 8th pillar: Financial market development 8....................................127 Favoritism in decisions of government officials .......................04 12.....134 Life expectancy* .........................02 7....................01 12.................................................................01 9.....07 Capacity for innovation .................................97 Prevalence of foreign ownership .......................................09 Quality of overall infrastructure .......................................................01 4.........................................02 11..........................................................................................................................02 12..........................................07 4.....136 Control of international distribution .......................118 4th pillar: Health and primary education 4....02 4.........................................02 6........................................................06 Availability of latest technologies ..86 Total tax rate* ............52 Agricultural policy costs............................131 Quality of the educational system........125 Value chain breadth ..............................126 Mobile telephone subscriptions* .20 1....113 HIV prevalence* ..............................101 FDI and technology transfer......07 8..........02 1....................................17 1......................05 1.................63 Organized crime ..............101 Business impact of rules on FDI .................87 Irregular payments and bribes............125 Quality of primary education ....... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.......................................77 Diversion of public funds....................124 Flexibility of wage determination ........106 Female participation in labor force* .......88 Extent and effect of taxation..............................08 4.......................11 6.......08 1........92 Quality of port infrastructure .................87 Ease of access to loans....15 1.................126 Quality of electricity supply ..............................08 2.01 11...........................08 11...06 6......................................19 1........................................06 4.........................138 Reliance on professional management ............................08 7..................................04 2......... For further details and explanation......04 6............115 Tuberculosis incidence* .................................................09 6......................................04 7............131 Available airline seat kilometers* .04 1........68 Burden of customs procedures...........................................114 Inflation*......................118 Effectiveness of anti-monopoly policy .........................................135 Financing through local equity market ............................03 5..01 8..........................07 7...........................................................72 Prevalence of trade barriers ........................................05 5......................................03 2...........................................04 11....................03 8...134 6............................................77 Burden of government regulation ........................................................................65 Efficiency of legal framework in settling disputes ....................06 11........139 2........................................09 1....................................114 Infant mortality* .........06 Government budget balance* ..................03 1..........04 3..............109 University-industry collaboration in R&D .....07 5...05 2..94 Utility patents per million population*.....................................................104 Internet users* .....................................................50 Hiring and firing practices............55 Redundancy costs* .....................................................................56 Degree of customer orientation ...............09 Availability of financial services ......................................52 Business costs of crime and violence...........................................128 Quality of scientific research institutions ...................01 5..........138 Restriction on capital flows ..............05 12.....................................05 7............................126 Soundness of banks .....................................97 Strength of auditing and reporting standards.....05 11...........................................14 6.............................................134 Broadband Internet subscriptions* .................................108 Primary education enrollment rate* ....135 3rd pillar: Macroeconomic environment 3......................71 Protection of minority shareholders’ interests .........................06 1.........................110 State of cluster development....127 Malaria incidence*......137 Extent of marketing..01 6...01 3..........................................................83 Gov’t procurement of advanced tech products .......03 9...................................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum...07 1...67 Wastefulness of government spending ......122 Quality of railroad infrastructure ......08 6................................10 1...............84 Number of procedures required to start a business* ..................................66 Interest rate spread* ...........................................................21 Property rights.....09 Local supplier quantity...................05 6..................98 National savings rate* ..........82 Notes: Ranks of notable competitive advantages are highlighted............................................................26 Country credit rating*..04 8.......119 2nd pillar: Infrastructure 2.................

................3 GDP (US$ billions)......3.................8 12th pillar: Innovation.........135 .2............19........................................................000 Sub-Saharan Africa 2.........4.....0 Inadequately educated workforce...............0 Corruption.....120 ......133 ...6 11th pillar: Business sophistication.........................137 .............138 ................................138 ...............................................137 ..............................4 Inadequate supply of infrastructure ..81 .............................................3 Financial market development Goods market efficiency Labor market efficiency Burundi Factor-driven economies The most problematic factors for doing business Access to financing ...........5 Crime and theft ..............8 2nd pillar: Infrastructure............20.3 10th pillar: Market size..............3.............1...8 Inflation .......................1...................2.0 Transition 1–2 1 GCI 2009–2010 (out of 133)...................................................................................................2 Inefficient government bureaucracy.........................................3 GDP per capita (US$) ....................132 ....3.....121 ........132 ....139 ......................7.........................................5 Government instability/coups ........0 6th pillar: Goods market efficiency..........................................1 Poor public health ....................................2 3rd pillar: Macroeconomic environment ................................................139 .........................2.............................1........2.....2.......3 8th pillar: Financial market development.........2............0 Foreign currency regulations...................138 .................5 Policy instability..................................5..2 1st pillar: Institutions .....................3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...................4 114 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...0 Factor driven Basic requirements.............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011......2..................................8 Restrictive labor regulations ...........................7..................9 Poor work ethic in national labor force ..................................6 GCI 2008–2009 (out of 134)......0.....3..............0 7th pillar: Labor market efficiency ..........................................1: Country/Economy Profiles Burundi Key indicators..............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 and to rank them between 1 (most problematic) and 5.......5 5th pillar: Higher education and training ........................3......8...........................................137 ..............2........3 9th pillar: Technological readiness......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .1........... The bars in the figure show the responses weighted according to their rankings..........01 Burundi 3.......................................2.............2.......10............................137 ........................10.......5.................... 2009 GDP (PPP) per capita (int'l $)..2...6 Tax regulations ..134 ..0...............................................5 Tax rates ................................139 ............2.....3.......................................6 4th pillar: Health and primary education ....2..................................000 1..........4............. 1980–2009 Population (millions).....................2................................163 GDP (PPP) as share (%) of world total ........................

......................07 6...06 2.01 Domestic market size index*...........03 9.................139 Efficacy of corporate boards .04 3........................1: Country/Economy Profiles Burundi 7th pillar: Labor market efficiency 7............................02 Foreign market size index* ....................................................................................04 9.......117 Burden of customs procedures.........................71 Hiring and firing practices.........................................................................................................102 Local supplier quality ..135 Soundness of banks .............................01 3...13 1...............15 1................................90 Notes: Ranks of notable competitive advantages are highlighted...................13 6...........................................................................11 1....................20 1.......112 Prevalence of foreign ownership ......................................................02 8..........................129 9th pillar: Technological readiness 9....123 2nd pillar: Infrastructure 2............................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 115 ......................07 11..........02 6...........135 Venture capital availability.............134 Regulation of securities exchanges ................................................................07 2..................136 Life expectancy* ................................06 7..125 Flexibility of wage determination ..................................09 1........................................................................................................................... For further details and explanation..........................03 11...................139 Public trust of politicians ........128 Transparency of government policymaking.119 Infant mortality* ..............................03 2.......................01 12....06 12................................................08 4........127 Intellectual property protection .........136 Brain drain ......................139 Local availability of research and training services................................05 2.......................................................................................................................................50 Effectiveness of anti-monopoly policy ..........03 6..................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...................123 Fixed telephone lines* ..................................................................................138 Business impact of rules on FDI .......120 Quality of air transport infrastructure ................136 Production process sophistication........................03 5...............133 Control of international distribution .........................129 Company spending on R&D....................................................................126 Reliability of police services .......129 Strength of investor protection* ......16 1.......129 Organized crime .....................01 6.....12 6.......................134 Quality of math and science education.......130 Business costs of crime and violence..137 10.....................................07 1.................125 Malaria incidence*....04 5......................137 10th pillar: Market size 10................01 5..............137 Quality of scientific research institutions ...................75 Efficiency of legal framework in settling disputes ................................................03 7............04 7........05 6.......................01 7.........................................................12 5th pillar: Higher education and training 5...................................138 11th pillar: Business sophistication 11.........................126 Quality of roads .......05 12......................................................................................01 11..................138 Diversion of public funds.129 HIV prevalence* .......133 6......108 Government debt* .....01 2.138 Extent of staff training.............................98 Agricultural policy costs...........14 1........................02 1.111 Prevalence of trade barriers ...........04 2......124 Interest rate spread* ......125 Burden of government regulation .....131 Internet access in schools..............................18 1.................135 Buyer sophistication ..............................................................................139 Restriction on capital flows ....................................137 Firm-level technology absorption .............................................................................................................................................02 4....02 9....02 7......02 12.........02 11...10 6.......03 4...........................48 Pay and productivity ........................................................................16 Rigidity of employment* ....134 University-industry collaboration in R&D .......................................04 8...................136 FDI and technology transfer...................................132 Primary education enrollment rate* .......................................134 Extent and effect of taxation..............06 5...........03 12.....................123 Irregular payments and bribes............................05 1.........129 Trade tariffs*...........................128 Reliance on professional management ......138 3rd pillar: Macroeconomic environment 3..........................139 Legal rights index* ...........................................128 State of cluster development...............03 1.....132 Female participation in labor force* ............126 Business impact of HIV/AIDS.......................02 5...................69 Protection of minority shareholders’ interests .................................134 Business costs of terrorism ...........................05 4..........................122 Business impact of tuberculosis ....07 8.................................................01 1..........................10 Business impact of malaria .................06 11.........................................................121 Available airline seat kilometers* .......135 Judicial independence .... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.127 Gov’t procurement of advanced tech products ....................138 Tertiary education enrollment rate*.................................................127 Total tax rate* ..........................09 4.............................................134 Mobile telephone subscriptions* ............135 Broadband Internet subscriptions* ...................................09 Local supplier quantity..................................135 Extent of market dominance.........07 Capacity for innovation .................................05 8.........09 Quality of overall infrastructure ....04 12...........06 8....132 Strength of auditing and reporting standards...05 7............136 4th pillar: Health and primary education 4..............134 Financing through local equity market ...............135 Affordability of financial services............................................................................................86 Redundancy costs* ....................................04 1.......14 6.......69 National savings rate* .........05 9......12 1.08 11..................130 Degree of customer orientation .................106 Utility patents per million population*...........09 6....................................06 4..138 Nature of competitive advantage ...................................129 Quality of primary education ....137 Quality of electricity supply .............................................03 3.................08 7......................135 Number of procedures required to start a business* .............................................05 3..........120 Tuberculosis incidence* .....................................135 Ethical behavior of firms.....................120 Quality of railroad infrastructure .............................................04 6............15 Intensity of local competition ..17 1..129 Inflation*.....02 2........................................5 8th pillar: Financial market development 8................04 4...................................................n/a Quality of port infrastructure ............................07 5...................................................................................................11 6............126 Internet users* ..08 6............21 Property rights.............110 Quality of management schools ........................06 Government budget balance* .......128 Availability of scientists and engineers ..........................09 Availability of financial services .......................05 5..................................08 2.......133 Quality of the educational system...........................43 Country credit rating*.....................................................................................................06 6.......................05 11.04 11.....................116 Efficiency of legal framework in challenging regulations ........138 Ease of access to loans.....................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........136 Favoritism in decisions of government officials ...........137 Internet bandwidth* ......................10 1.........08 8...................................01 9.........................................01 8...........09 Cooperation in labor-employer relations......................19 1.........03 8...........................................................................................06 Availability of latest technologies .....................06 1...................................................................127 Value chain breadth .....110 Time required to start a business*.........01 4................................................07 7.....................139 Extent of marketing..................... An asterisk (*) indicates that data are from sources other than the World Economic Forum..........................................08 1..........02 3.......................07 4...........138 Willingness to delegate authority...136 12th pillar: Innovation 12................138 2...........113 Wastefulness of government spending ....

.........110 .................5 GCI 2008–2009 (out of 134).................4 Inflation .......4.....114 ...........................................0 7th pillar: Labor market efficiency ...1...........................1 Tax regulations .....21.......8 116 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..........8 Tax rates .....................................................................................7 Inadequately educated workforce.....................................1 Access to financing .....109 ........3.................109 .......9 Poor work ethic in national labor force ....................................103 ......................14....3.106 ...6 5th pillar: Higher education and training ...108 .........................................3....9 6th pillar: Goods market efficiency..................3...............113 .........1 11th pillar: Business sophistication .2 Government instability/coups ...........................................3........................12...6 Transition 1–2 1 GCI 2009–2010 (out of 133)........9 10th pillar: Market size..........4 Crime and theft .................3..................................6 Poor public health ............115 ..4.......................5...3...................7 Financial market development Goods market efficiency Labor market efficiency Cambodia Factor-driven economies The most problematic factors for doing business Corruption..............5 Factor driven Basic requirements...122 ...............4...........................................94 ......................................3.....12...............................................0 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...............000 2...............3......................................1.2...........................................8 Policy instability......................3...0...........000 3..1: Country/Economy Profiles Cambodia Key indicators..............51 ..............................................................................4 12th pillar: Innovation.106 ...............81 .............................................................2...............7 3rd pillar: Macroeconomic environment ..............................7 1st pillar: Institutions .........................2 Inadequate supply of infrastructure ....................92 ....5 Inefficient government bureaucracy..........2...2..........2...2 Foreign currency regulations......775 GDP (PPP) as share (%) of world total ............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.....................................................4................................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..........................................................17...4 Restrictive labor regulations ...000 Cambodia Developing Asia 4.............96 ..............0.........................................8 GDP per capita (US$) ....................................04 5...............7.........................8 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......................... The bars in the figure show the responses weighted according to their rankings..............9 9th pillar: Technological readiness..110 ..................3....3...................................116 ..........10.. 1980–2009 Population (millions).............................. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.............2.................................000 1...8 GDP (US$ billions)....... 2009 GDP (PPP) per capita (int'l $)................6 8th pillar: Financial market development.................4..8 4th pillar: Health and primary education ....................2.......6 2nd pillar: Infrastructure............2.

.........76 Restriction on capital flows ...............................95 Organized crime .............................93 FDI and technology transfer.87 Rigidity of employment* .08 8...122 3rd pillar: Macroeconomic environment 3...............132 Agricultural policy costs........................................................13 6............................................................................................109 Willingness to delegate authority.........................13 1...........................................................37 Burden of customs procedures......54 Soundness of banks ........................................115 Ethical behavior of firms.........04 12..07 1........124 Judicial independence ........................91 Business impact of rules on FDI .......................96 10.....................108 National savings rate* .............................08 11............................................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............................01 6.................................................................................124 Production process sophistication.........111 Extent of staff training.....................................................................02 7......................05 6....................06 Government budget balance* ..................................111 Primary education enrollment rate* ................02 12................05 4....101 Regulation of securities exchanges ..................................08 6...04 3...........................03 5..................................................06 Availability of latest technologies ............................01 3......82 Quality of math and science education...................114 HIV prevalence* ...................45 Country credit rating*..................02 4............................................04 8..............................120 Life expectancy* ....................12 Interest rate spread* ...............97 Infant mortality* ..15 Number of procedures required to start a business* ......122 Legal rights index* ...03 8........01 2.........05 1.........................95 Quality of electricity supply ...01 Domestic market size index*................................09 Availability of financial services .................................90 Reliability of police services ....08 2...........................1: Country/Economy Profiles Cambodia 7th pillar: Labor market efficiency 7.................................06 8................15 1.................... An asterisk (*) indicates that data are from sources other than the World Economic Forum.......................10 6........115 Quality of the educational system......05 5...........................................................................88 Time required to start a business*.............................................................................14 1.06 6......................83 Quality of roads ...................35 Reliance on professional management .......................................64 Efficiency of legal framework in settling disputes ................................................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 117 ..................................................11 1................................................................07 7........06 7..........06 11............................06 1..14 6................................................................................................47 Prevalence of trade barriers ..06 4.......83 Available airline seat kilometers* .....................................................125 Business costs of terrorism .......07 2...................02 6....06 12............................................................................................................................................99 Quality of port infrastructure ........16 1...................58 Wastefulness of government spending ..............121 Utility patents per million population*.......05 8.....07 5........................................................04 2.................49 Irregular payments and bribes.........73 Quality of railroad infrastructure ....07 4......................02 8......06 5..........................................................82 University-industry collaboration in R&D ..................95 Protection of minority shareholders’ interests ......................................77 Value chain breadth ...132 Business impact of HIV/AIDS.......08 7................................113 Quality of primary education ..............04 1..........................................01 1.......12 6...89 Hiring and firing practices.......................05 11......101 Quality of scientific research institutions ...............106 Extent of market dominance...............................85 Strength of auditing and reporting standards...................................................19 1...............02 1........03 6.........................................................................................119 Tertiary education enrollment rate*...............04 6.............05 12.......................................................53 Female participation in labor force* ...............123 Ease of access to loans..................................................20 1.........103 Firm-level technology absorption ................02 5...104 12th pillar: Innovation 12.................03 3.........................................09 6...................................07 11.........111 Quality of management schools ...........07 8..............................................................................21 Property rights...............................................................112 Fixed telephone lines* .............................................80 Flexibility of wage determination .........................................................................................113 Business impact of tuberculosis .51 Nature of competitive advantage .....97 Brain drain .......45 Redundancy costs* ...........................02 Foreign market size index* ..........05 2................................................122 10th pillar: Market size 10...03 9........................65 Availability of scientists and engineers ............33 8th pillar: Financial market development 8....113 Malaria incidence*...................................103 Control of international distribution ............03 1..71 Financing through local equity market ............75 Pay and productivity ..50 Burden of government regulation .......87 Public trust of politicians ....107 Business costs of crime and violence.....................................04 9................................02 11......11 6..................107 Internet bandwidth* ..........15 Intensity of local competition ............01 5.69 Buyer sophistication ............09 Quality of overall infrastructure .....109 4th pillar: Health and primary education 4...03 7..110 Local availability of research and training services...............................04 4................92 6..................110 Inflation*..........................02 9....................06 2..................................................129 Local supplier quality ......................59 2nd pillar: Infrastructure 2......................................................................................05 3...............135 Mobile telephone subscriptions* ................................................................92 Venture capital availability........20 9th pillar: Technological readiness 9.......................................................................................................99 Diversion of public funds.......90 Notes: Ranks of notable competitive advantages are highlighted............................80 Effectiveness of anti-monopoly policy .09 Cooperation in labor-employer relations.........03 11....72 Efficiency of legal framework in challenging regulations .................................................................................................07 6............................................................07 Capacity for innovation ........61 Transparency of government policymaking.......................................................118 Tuberculosis incidence* ...........................01 8....................................................05 7......01 12...........02 2.............................03 4.....................18 1.....................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1...............10 1..77 Trade tariffs*..................04 7...01 11...............53 2................................118 Extent of marketing..............................................01 9..61 Total tax rate* .........116 Prevalence of foreign ownership ...05 9...........................118 Internet access in schools...............................................01 4................04 5.........121 State of cluster development...09 Local supplier quantity.....................17 1.04 11.............08 1......88 Affordability of financial services..............................01 7...............38 Internet users* ..................02 3...............115 Gov’t procurement of advanced tech products ..............................104 5th pillar: Higher education and training 5....03 2..................................................... For further details and explanation.............03 12.....08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..............................108 Favoritism in decisions of government officials .103 Strength of investor protection* ........137 Broadband Internet subscriptions* ...............................................................................121 Efficacy of corporate boards ......95 11th pillar: Business sophistication 11.........82 Quality of air transport infrastructure ....................................................................125 Government debt* .........79 Extent and effect of taxation..................10 Business impact of malaria ..................................110 Intellectual property protection ..............09 1...................................115 Degree of customer orientation .................08 4................................12 1...........106 Company spending on R&D......................09 4...................

....................1 Government instability/coups ..................................................2.......................0 6th pillar: Goods market efficiency.........8 1st pillar: Institutions .................................................9 Financial market development Goods market efficiency Labor market efficiency Cameroon Factor-driven economies The most problematic factors for doing business Corruption..3.2.....95 .......111 .3 Policy instability......................3.........7 Tax regulations ..118 ..........3...............119 ..........................06 Cameroon 3....3.................8 4th pillar: Health and primary education ....3..........................................................................3...............2 Poor public health ...107 ........ 2009 GDP (PPP) per capita (int'l $)........ The bars in the figure show the responses weighted according to their rankings..........5 Poor work ethic in national labor force .......13.............................................................................1 8th pillar: Financial market development......121 ........................................................123 ..........................................................................................11...2...........................000 1............4 Inadequately educated workforce................5 GCI 2008–2009 (out of 134)........0.................4.4..4 3rd pillar: Macroeconomic environment .....4 Tax rates .........................5 Factor driven Basic requirements.............21......................114 ...................3........1...2 GDP per capita (US$) ..6 Transition 1–2 1 GCI 2009–2010 (out of 133).............................3 12th pillar: Innovation...................................1.............................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011....19..............20...........3 Access to financing .........3 5th pillar: Higher education and training ................111 ......3.........................4.............................................................3....3...........6 7th pillar: Labor market efficiency ................116 .....1 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .............................................................105 .....2.............................................2...............................................5 Inflation .....2.... 1980–2009 Population (millions).8 10th pillar: Market size.3 9th pillar: Technological readiness...............000 Sub-Saharan Africa 2........116 ..........................................0.......3................2 Inadequate supply of infrastructure ............115 GDP (PPP) as share (%) of world total .. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5............................2.....................12...0............................................3.........................5 GDP (US$ billions)..1: Country/Economy Profiles Cameroon Key indicators........0.1...........................9 Restrictive labor regulations ...............0 Crime and theft .................................................117 ................................................................4 2nd pillar: Infrastructure.......91 ..............................................................111 ...10........................1 Inefficient government bureaucracy.....................................126 ..... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .5 118 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.....22....99 ........53 ................1 11th pillar: Business sophistication.....0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...2 Foreign currency regulations..........0......

..........................................95 FDI and technology transfer...13 1...........95 8th pillar: Financial market development 8........................70 Business costs of crime and violence............08 4...17 1...........................130 Life expectancy* ............99 Internet users* ................117 HIV prevalence* ....75 Effectiveness of anti-monopoly policy ................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 119 .02 Foreign market size index* .........................................................................................................48 Protection of minority shareholders’ interests ..........02 2..............................106 5th pillar: Higher education and training 5...108 Burden of customs procedures..99 State of cluster development..........07 5..07 Capacity for innovation ..............................................99 Control of international distribution ...129 Malaria incidence*.................................04 6.................................122 Available airline seat kilometers* ..06 11................................96 Intellectual property protection .........................................................................128 Quality of primary education ..........................113 Gov’t procurement of advanced tech products .07 1.......102 Quality of scientific research institutions ...... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...06 7..................................119 Total tax rate* ......................................06 4...........................02 6.....02 4...03 1........08 1..113 12th pillar: Innovation 12..............41 Business impact of rules on FDI .....................................................93 6...............................................................................................................................................06 1..........................03 2...................02 9....................07 2................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum.08 6..............................................09 1........................123 Efficacy of corporate boards ..114 Time required to start a business*.. For further details and explanation.............07 4..................................................................101 Efficiency of legal framework in settling disputes .............90 Efficiency of legal framework in challenging regulations ................04 3........................................06 Government budget balance* .........................06 5..........................100 Burden of government regulation ..04 9........................99 2nd pillar: Infrastructure 2.77 Primary education enrollment rate* ...................................06 Availability of latest technologies .........................81 Quality of management schools ......................101 Irregular payments and bribes..................01 5.......................................................117 Favoritism in decisions of government officials ...................75 Quality of port infrastructure ...................................................116 Quality of railroad infrastructure ..............02 3....................77 Extent and effect of taxation.......57 Extent of market dominance........................103 9th pillar: Technological readiness 9...........................................................................122 Broadband Internet subscriptions* .............128 Restriction on capital flows ..................03 7..............................01 3...........................................................................106 Diversion of public funds................101 11th pillar: Business sophistication 11......110 Quality of air transport infrastructure ......15 1..115 Government debt* .123 Judicial independence ...............................04 1...................09 6.................03 12..12 1..............................121 Tertiary education enrollment rate*...12 6........................................114 Firm-level technology absorption .............................16 Redundancy costs* .............05 3..............................85 Brain drain ..............01 8..........................06 2....131 Nature of competitive advantage ...................................07 8.............03 9.......................................21 Property rights.04 8...............................................................11 6...................109 Availability of scientists and engineers ...83 Notes: Ranks of notable competitive advantages are highlighted..................................135 Internet bandwidth* ..................................117 Business costs of terrorism ...........................16 1....................04 7.........05 12.............121 3rd pillar: Macroeconomic environment 3........................................................................................14 1..96 Hiring and firing practices..............................................09 4.........119 Mobile telephone subscriptions* .........................03 8.......01 6................................................................................................06 12..................02 7...............80 Wastefulness of government spending .15 Intensity of local competition .....................................................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........................124 Public trust of politicians ........................01 11...............127 Affordability of financial services.....................90 Degree of customer orientation .............01 12.........................................................03 6....05 4............98 Flexibility of wage determination ......................88 Buyer sophistication ........................................11 1.20 1.....04 2........................................................................10 1................131 Value chain breadth .107 Extent of marketing..........02 1....01 1........................................04 4.........07 7....121 Quality of roads .................97 Company spending on R&D...............................100 Soundness of banks .................................................................................................14 Country credit rating*..........103 Ethical behavior of firms.......................01 7...........................03 3...01 2..............121 Strength of auditing and reporting standards........................................................................113 Quality of the educational system.........................05 5.......07 6....08 11....................................................................133 2................03 4.......................02 5....132 Venture capital availability..........................................03 11.........08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .......101 Willingness to delegate authority...............................55 Prevalence of trade barriers ........................1: Country/Economy Profiles Cameroon 7th pillar: Labor market efficiency 7.19 1..............74 Rigidity of employment* .......................................................................09 Quality of overall infrastructure ...............81 Organized crime ...........79 Quality of math and science education.......................04 12..........................................08 7.........65 Strength of investor protection* ....................121 10th pillar: Market size 10...........................................................................123 Business impact of tuberculosis .....103 Number of procedures required to start a business* ..............................06 8.............................................07 11.......08 8..........80 Reliability of police services ................05 11...................01 Domestic market size index*......................................................74 Internet access in schools.02 8...........97 Transparency of government policymaking...09 Local supplier quantity.........125 Prevalence of foreign ownership .............10 6................88 Local supplier quality ........05 2.04 5.....................................................................32 Trade tariffs*.............................................................127 Production process sophistication.................................................05 1....96 Extent of staff training...........................02 12............117 Female participation in labor force* .....................................................05 6.....................................05 7...........127 Infant mortality* .........119 Tuberculosis incidence* ..........................................................................................09 Availability of financial services .........127 Financing through local equity market ............................14 6..........................11 National savings rate* .............108 Reliance on professional management ....................115 4th pillar: Health and primary education 4..........01 4............................03 5...........10 Business impact of malaria ................................................102 Agricultural policy costs....118 Fixed telephone lines* .................................................18 1..13 6.........................88 10........................04 11..81 Inflation*................................06 6.......................................01 9............102 Quality of electricity supply ........................................................................72 Interest rate spread* ...................................09 Cooperation in labor-employer relations..............39 Utility patents per million population*.........08 2..................................63 University-industry collaboration in R&D .....................05 9.........02 11.............................................88 Ease of access to loans..............................................................................122 Local availability of research and training services.104 Business impact of HIV/AIDS.........................84 Regulation of securities exchanges .................05 8.........66 Pay and productivity ...............120 Legal rights index* .

...15...............................................336.........................................................6 120 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...4 Factor driven Basic requirements..................................0 12th pillar: Innovation...................2 Tax regulations ..... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5...........1......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..... 2009 GDP (PPP) per capita (int'l $).........10 ..........0.........3 Corruption...............5................................................6 GDP (US$ billions).....................3 5th pillar: Higher education and training ................6 ...........................................................3 GCI 2008–2009 (out of 134).....13.......7 Poor work ethic in national labor force .....669 GDP (PPP) as share (%) of world total ........6......................1 10th pillar: Market size.................2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors............ The bars in the figure show the responses weighted according to their rankings........8 3rd pillar: Macroeconomic environment .......................................5.....................4 Poor public health .......12.......5......2.........12 ....1........................36 ................................9 ...0..........1.................16 .........7..1 Restrictive labor regulations ....4 8th pillar: Financial market development......33......................5......................................000 20...................6 ............................11 ..............0 Policy instability............3 Crime and theft .........4..5...................................0 Access to financing .......1 4th pillar: Health and primary education ...............5.....................................................................5 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....10 .................6 .............0 11th pillar: Business sophistication.....6.4 Inflation .....................000 10...5..5...........................................000 30..5.....................................2...5.....4 GDP per capita (US$) .....................................................................................5...........................................................0..8 1st pillar: Institutions ............9 Financial market development Goods market efficiency Labor market efficiency Canada Innovation-driven economies The most problematic factors for doing business Tax rates .................5 Government instability/coups .............1: Country/Economy Profiles Canada Key indicators................14 .........................................5..........................................11 .............................................................11 ............6 2nd pillar: Infrastructure...0..........................8 .16 .....18...................................1 7th pillar: Labor market efficiency ................................ 1980–2009 Population (millions)...................1 Foreign currency regulations............85 Canada Advanced economies 50...............................5.......3 Transition 1–2 1 GCI 2009–2010 (out of 133)...5..............................11 ........3 Inadequately educated workforce.....................2 9th pillar: Technological readiness...................7 6th pillar: Goods market efficiency......................5............000 40..................................13..............1 Inadequate supply of infrastructure .............5.........14 .....5.....4 Inefficient government bureaucracy................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...........39...9 ........................4............

..........13 Effectiveness of anti-monopoly policy .........14 Firm-level technology absorption ...........................9 Agricultural policy costs.............5 Brain drain .10 Intellectual property protection .........................01 4...............19 Quality of scientific research institutions .................60 9th pillar: Technological readiness 9..................41 Efficiency of legal framework in settling disputes ...1 Regulation of securities exchanges ..01 2.....................................................6 Utility patents per million population*..........09 Availability of financial services .............06 4..........07 11.22 Legal rights index* .................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..............08 8.36 Production process sophistication........................05 2...........03 5..............................................................18 Transparency of government policymaking..........39 Soundness of banks ....14 Extent and effect of taxation.......... For further details and explanation..............................................................05 3...............................20 Wastefulness of government spending .....................1: Country/Economy Profiles Canada 7th pillar: Labor market efficiency 7.....................04 8.......07 Capacity for innovation ..................................................................03 1....05 8...........14 Financing through local equity market ............05 1.01 9.........8 Business impact of HIV/AIDS.........8 Ease of access to loans..........................................28 Flexibility of wage determination ...05 5................02 5......01 5......27 Degree of customer orientation ...................15 1....................................14 Efficiency of legal framework in challenging regulations .............01 6.......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 121 .................................................................................04 4...09 Local supplier quantity........................05 11..............................................................07 6...................8 Hiring and firing practices........................01 7...................................................................06 1..............................................28 Prevalence of trade barriers ..........................8 5th pillar: Higher education and training 5.....04 5...........15 Redundancy costs* .................18 1.............1 Time required to start a business*.......04 2..........................06 8....01 12....................05 12..............06 5.............................................................11 Nature of competitive advantage ........11 Business costs of terrorism ........16 Public trust of politicians ...............................24 Venture capital availability...............................06 Availability of latest technologies ...............4 4th pillar: Health and primary education 4.................................................23 Irregular payments and bribes...8 Strength of auditing and reporting standards......05 7.........................12 Internet bandwidth* .....................13 Buyer sophistication .........3 Internet access in schools...........................8 Company spending on R&D...................................................................1 Business impact of tuberculosis ...............................19 1............................................02 4..............................................................15 Intensity of local competition ........55 Pay and productivity ......................................................08 1...............10 Quality of management schools .......................20 University-industry collaboration in R&D ........................49 Organized crime ...34 National savings rate* .........................12 6...................................................................02 7......................................06 7..............................................16 Quality of port infrastructure ........33 Control of international distribution ......................................................................................................17 1....................................................................18 11th pillar: Business sophistication 11................................09 Quality of overall infrastructure ..................................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ........08 2...................................11 Extent of staff training........01 Domestic market size index*....................................................10 1.......................27 Quality of the educational system.......................1 Malaria incidence*..............................................08 4......................................................11 6.....................01 11..................01 1.........................................................9 Primary education enrollment rate* ....05 4..08 7.....................................................................................56 Value chain breadth ...................................................04 12..........................77 Infant mortality* ...80 Inflation*..........................96 Business costs of crime and violence.............................07 1......................................7 State of cluster development............................................10 6................4 Protection of minority shareholders’ interests ....................13 6....05 9........07 4.......13 Diversion of public funds........................11 Quality of primary education ...20 Local supplier quality ..................................07 5................................................17 Quality of railroad infrastructure ...............................................................................................................8 Strength of investor protection* ..........................................................45 Trade tariffs*.....25 HIV prevalence* ...............14 10..................48 Total tax rate* ............5 Quality of math and science education......................6 2....2 Affordability of financial services.................................20 1.............................................38 Prevalence of foreign ownership .......................................02 6........................120 Country credit rating*..6 Efficacy of corporate boards ... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....03 7......02 3...................................14 Fixed telephone lines* .....................................23 Available airline seat kilometers* ..............................08 11......30 Reliance on professional management ...........................................................02 2..........................................................10 Business impact of malaria .03 4.................02 9..............................13 Quality of roads ...10 Willingness to delegate authority....................................................................................02 1.............14 6................9 Tuberculosis incidence* .........12 Judicial independence ...14 Quality of air transport infrastructure ....................7 12th pillar: Innovation 12..................20 Government debt* ..............................................................................08 6........20 Extent of market dominance......48 Burden of customs procedures.................04 6..............12 Mobile telephone subscriptions* .............................................07 7......................15 Broadband Internet subscriptions* ............79 Number of procedures required to start a business* .9 Female participation in labor force* .....................................................................................................................................................05 6....................................................................................................................7 Gov’t procurement of advanced tech products .........13 Local availability of research and training services..........................10 Notes: Ranks of notable competitive advantages are highlighted.............03 12...02 Foreign market size index* ..............................................................26 Availability of scientists and engineers ................18 10th pillar: Market size 10.......09 6...........................04 11...............................................................33 Rigidity of employment* ...........................16 1...............................04 3.....14 1...............21 Property rights....................04 9.........03 9............03 6..03 8................................11 Business impact of rules on FDI . An asterisk (*) indicates that data are from sources other than the World Economic Forum........12 6.....................10 Quality of electricity supply ..............................................................02 11..............07 8....02 12....................06 12........50 Reliability of police services ......06 6..06 2.....................................09 1..............22 FDI and technology transfer.........5 2nd pillar: Infrastructure 2.........02 8..........................................................................01 8..............................................7 Ethical behavior of firms.03 11................19 Restriction on capital flows ...............................19 Tertiary education enrollment rate*............11 Favoritism in decisions of government officials ....04 7.............07 2.........................06 Government budget balance* ..............................01 3......15 Extent of marketing...................................24 8th pillar: Financial market development 8...................06 11...12 1..............03 2.................13 1.........35 Life expectancy* .............04 1.11 1.....................................................32 Burden of government regulation .........................09 4.........................29 Internet users* ..............................................09 Cooperation in labor-employer relations...03 3..................................................24 Interest rate spread* .............................100 3rd pillar: Macroeconomic environment 3..................

..................3 Corruption...96 .....2.........109 ...000 Sub-Saharan Africa 3...........................5.......................8 11th pillar: Business sophistication........................1 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .........5 GDP (US$ billions)..............5 Inflation ...........................................7 8th pillar: Financial market development...........3 6th pillar: Goods market efficiency............3..4.....................104 ..........122 ....................0 12th pillar: Innovation.......22...........................................2 5th pillar: Higher education and training ......5 Restrictive labor regulations ....................................0 Foreign currency regulations...00 Cape Verde 4.................4...................................................................3................1 Inadequately educated workforce.....0............................................................................................................................6 Inefficient government bureaucracy..6 Tax rates ....4 10th pillar: Market size....3...............102 ...........................................3.....0.........3.....................3..............................................7 Poor work ethic in national labor force ........................................4 Crime and theft .................1.....2.............................9..........................79 ..........................................117 .........131 .......111 ....12...........................4..............8 7th pillar: Labor market efficiency ..........1..............117 ...000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..2.................................2.................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 . respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.....................6 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..1 2nd pillar: Infrastructure...................6 Financial market development Goods market efficiency Labor market efficiency Cape Verde Efficiency-driven economies The most problematic factors for doing business Access to financing .........................................................139 ........3.....128 ............5 Tax regulations .2....10.........................................1 1st pillar: Institutions .............0....000 2......................................................................................n/a ...................................1 Policy instability............... 1980–2009 Population (millions).............................................1: Country/Economy Profiles Cape Verde Key indicators.4 122 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...445 GDP (PPP) as share (%) of world total ......1.....5..56 .................................................1........88 .....................8 3rd pillar: Macroeconomic environment .........2.......... 2009 GDP (PPP) per capita (int'l $)..........................6...........................1 Poor public health .....................000 1.3..n/a GCI 2008–2009 (out of 134).............................n/a Factor driven Basic requirements.........4 Inadequate supply of infrastructure ..2 4th pillar: Health and primary education ..............109 .....................129 ....7 Government instability/coups .........5 Transition 1–2 1 GCI 2009–2010 (out of 133)............................2......................................10.7 9th pillar: Technological readiness..........................n/a .8 GDP per capita (US$) ..12...........................0.............3... The bars in the figure show the responses weighted according to their rankings...............................

..........06 8..................................98 Business impact of HIV/AIDS.............................................................09 Cooperation in labor-employer relations.............................................02 8.............................01 12...05 12.06 Availability of latest technologies ..................102 8th pillar: Financial market development 8....02 2...........................01 11..........117 Reliance on professional management .............01 5...........................137 11th pillar: Business sophistication 11.....................45 Judicial independence ..50 Business costs of terrorism ...121 Company spending on R&D..................99 Efficacy of corporate boards .........02 9.............................68 Quality of railroad infrastructure .....................................01 1....121 Extent of market dominance......................107 Utility patents per million population*......1: Country/Economy Profiles Cape Verde 7th pillar: Labor market efficiency 7..................................................89 Government debt* ...............07 2......................................................................................87 Life expectancy* .......03 4..........85 Mobile telephone subscriptions* .....09 Availability of financial services ....................................................02 3.....75 Female participation in labor force* ....85 HIV prevalence* .07 6.............113 Affordability of financial services..97 Infant mortality* ...................................114 Hiring and firing practices.04 4...................................125 Trade tariffs*......03 9.....................................05 7.......................24 Irregular payments and bribes.................................................04 12.75 Strength of investor protection* .............................................15 Intensity of local competition ...........................93 Reliability of police services ..........129 Extent of staff training...........................88 Time required to start a business*.......................05 6....................01 3........................................................................06 1.63 FDI and technology transfer.......................................................................05 5...............................131 Fixed telephone lines* ...............................................89 Gov’t procurement of advanced tech products .58 Favoritism in decisions of government officials .......03 1...................01 7....................................................04 11.74 Extent and effect of taxation..103 Venture capital availability....................................02 12............................................................130 State of cluster development.................88 10th pillar: Market size 10...........08 1.................................................109 Brain drain .........................72 Burden of customs procedures.....03 8....................................06 7...............................................................................114 5th pillar: Higher education and training 5.........67 Efficiency of legal framework in settling disputes ....................91 3rd pillar: Macroeconomic environment 3......................08 2...............05 1...................................05 2.....12 6.............................11 1....90 Notes: Ranks of notable competitive advantages are highlighted..................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 123 .103 Quality of the educational system........................84 Effectiveness of anti-monopoly policy ......06 2.................................................107 Quality of electricity supply ............................................................................................................103 National savings rate* .....................39 Interest rate spread* .................................................................................................................................09 Local supplier quantity...................10 6..............................................................................02 5................07 5..........03 12....82 Efficiency of legal framework in challenging regulations ........06 Government budget balance* ......07 1................................05 11..............................................05 8.....................................................121 Internet access in schools....06 11...............................................05 9.....04 1.................03 11.................................08 11...............................72 Firm-level technology absorption ...................................................04 7......137 Control of international distribution ............120 6.......................04 8.........14 6..................................01 4....96 Organized crime ...............119 Pay and productivity .............07 8......82 Available airline seat kilometers* .......................................129 9th pillar: Technological readiness 9...07 11.....14 1.....................................07 Capacity for innovation ...............................................................104 Country credit rating*.....................04 5................92 Flexibility of wage determination ..............................................04 6............................................136 Buyer sophistication ...90 Internet bandwidth* ......................................................01 2............................10 Business impact of malaria ....................................139 10.......67 Business impact of rules on FDI ..........................90 Local availability of research and training services.........................17 1.............02 4...........................................127 Degree of customer orientation .............10 1......................19 1...............09 4.....................................................................................................03 5..........03 6................................113 Willingness to delegate authority.............100 Number of procedures required to start a business* .......05 3.............16 1..132 12th pillar: Innovation 12........46 Availability of scientists and engineers ...................................134 Production process sophistication.....................134 Nature of competitive advantage .......................................82 Business impact of tuberculosis .......................................................46 Rigidity of employment* .78 Soundness of banks ....13 1.........................................................109 2nd pillar: Infrastructure 2.............07 4..........13 6...........................................02 11.........................88 Transparency of government policymaking...............116 Protection of minority shareholders’ interests ..102 Quality of air transport infrastructure .............62 Value chain breadth ....08 6.n/a Quality of port infrastructure .................06 6..........................69 Internet users* .............................................55 Ease of access to loans..............................90 Quality of primary education ................................................82 Inflation*.........08 8..............127 Diversion of public funds....................08 7..100 2..........43 Burden of government regulation ..........................................01 6.................................................................................97 Quality of management schools ....................09 Quality of overall infrastructure ...................54 Regulation of securities exchanges ...115 Restriction on capital flows ..............................03 3...01 9..............07 7...............09 1.02 Foreign market size index* ..........66 Prevalence of trade barriers ............................................................................ For further details and explanation............06 4..12 1............................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....100 Malaria incidence*...............94 4th pillar: Health and primary education 4..........75 Broadband Internet subscriptions* ....................................02 7..02 1.................................................63 Ethical behavior of firms...18 1..........................03 2................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .....06 5..............101 Tertiary education enrollment rate*....94 Total tax rate* ...............100 Intellectual property protection ....135 Quality of scientific research institutions ...............................................69 Primary education enrollment rate* ........11 6.04 3...............15 1..................01 Domestic market size index*.........................................................................................99 Quality of roads ........04 2....................................................06 12.........................................................................65 Quality of math and science education..........43 Wastefulness of government spending .....44 Strength of auditing and reporting standards.21 Property rights..............01 8................03 7..............02 6.......98 Financing through local equity market ...................................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum.......................................................09 6........103 Prevalence of foreign ownership .....................................128 Local supplier quality .109 Redundancy costs* .....................................04 9.............................................39 Public trust of politicians .........113 Extent of marketing................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..........................92 Tuberculosis incidence* ..05 4............................................51 Legal rights index* ......................................................72 Business costs of crime and violence................08 4...........................................79 Agricultural policy costs.......136 University-industry collaboration in R&D ..........................................................................20 1......

7 1st pillar: Institutions .134 ....115 ....136 ..................................1 4th pillar: Health and primary education ..........2 GDP (US$ billions)....................7 Inefficient government bureaucracy........................0 Foreign currency regulations...... The bars in the figure show the responses weighted according to their rankings....138 ............................................ 2009 GDP (PPP) per capita (int'l $)................................19....................2 Restrictive labor regulations .............5..............................................4 Poor work ethic in national labor force .............5 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......................................................................139 .............137 .............................................9 2nd pillar: Infrastructure.8 3rd pillar: Macroeconomic environment .........................8 Factor driven Basic requirements................9 7th pillar: Labor market efficiency .....16.3.... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ......................11......................6......9........ 1980–2009 Population (millions)..687 GDP (PPP) as share (%) of world total ................3.....................3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.................0 Poor public health .........2..137 ................0 Inadequate supply of infrastructure .....8 9th pillar: Technological readiness..........................2............9 Tax regulations ..............................................9 12th pillar: Innovation...........138 .....................................9 GDP per capita (US$) ..............7 Inadequately educated workforce............2......2...........................95 ........ respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5....131 ..2........2........2............3...............................4........................................................................................3 6th pillar: Goods market efficiency.........138 ...............................................8 Policy instability....137 .........................000 1..................1: Country/Economy Profiles Chad Key indicators.133 ..130 ......................02 Chad 3......3 Access to financing .......................9 124 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...............139 .............................................3 10th pillar: Market size.3....................................................................8.......1.........................3.................................2.2........8 11th pillar: Business sophistication..............................................6 Financial market development Goods market efficiency Labor market efficiency Chad Factor-driven economies The most problematic factors for doing business Corruption........1.5..............................2.......................5..0..............................135 .................2...................2.....................6 Government instability/coups ....2....2.........000 Sub-Saharan Africa 2.............................2........2........1 Tax rates .134 ........................................................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..............................2.........7 Transition 1–2 1 GCI 2009–2010 (out of 133).........................9 Crime and theft .............................................................................................120 .........2.........2 8th pillar: Financial market development..0 Inflation ..9 GCI 2008–2009 (out of 134).......10.........8 5th pillar: Higher education and training .....

................................01 Domestic market size index*....................................119 Efficiency of legal framework in challenging regulations ........05 1....11 6...................................04 2............................................90 Notes: Ranks of notable competitive advantages are highlighted..........................................129 Total tax rate* ........................134 Business impact of rules on FDI ...............................131 National savings rate* .........................01 2........................................................................................08 2............139 Mobile telephone subscriptions* ......................06 6......................................n/a Quality of port infrastructure ..................................................03 11....06 8...............................09 4...137 Business impact of tuberculosis ..................................................................................................................................................03 7.......................................133 HIV prevalence* .....................................................03 4........................03 6............................................06 Availability of latest technologies ...............................05 12........09 Quality of overall infrastructure .....126 Quality of railroad infrastructure ....134 Efficacy of corporate boards ................................................................................01 7.....................................04 9....................138 Local availability of research and training services................137 4th pillar: Health and primary education 4....03 1....................................119 Ease of access to loans.02 6..137 Buyer sophistication .......................................................130 Soundness of banks .......116 Gov’t procurement of advanced tech products .138 Life expectancy* ........119 Government debt* .............................10 6................................................................04 7..............136 Tertiary education enrollment rate*........08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ................02 5..105 Female participation in labor force* ................................................137 Degree of customer orientation ...............06 2..................................................................................................01 1....07 1.................................................................................09 6.......07 5...............16 1.........................137 2...07 7...............................122 Control of international distribution .......07 Capacity for innovation ..01 6...72 Redundancy costs* .....118 Quality of scientific research institutions ..............................08 8.131 Broadband Internet subscriptions* ................134 Legal rights index* ............. An asterisk (*) indicates that data are from sources other than the World Economic Forum......12 6..........................................................................20 1........................82 Hiring and firing practices...............................139 Extent of market dominance.........................................................................113 Reliance on professional management ..........19 1.....07 4.........139 Firm-level technology absorption .........97 Wastefulness of government spending ..........................................................................03 3..............................131 Quality of roads ......103 Value chain breadth .......................................................12 8th pillar: Financial market development 8........01 9..................136 Intellectual property protection ...........................133 Financing through local equity market ............................................07 8.............................15 1..................04 1........125 Inflation*...................02 Foreign market size index* ......................05 8........09 Cooperation in labor-employer relations..........07 11.119 Nature of competitive advantage ......................................117 Irregular payments and bribes...138 Production process sophistication..................................................................14 1.......................................................12 1.....138 Internet bandwidth* ....131 Extent of staff training........................04 11....................................................................................................131 Quality of primary education .......103 Quality of management schools .....124 12th pillar: Innovation 12.........02 12....................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..134 5th pillar: Higher education and training 5.........................................114 Organized crime .....07 2....75 Rigidity of employment* ..........129 Reliability of police services .............................05 7..............................................................................................03 12...........125 Infant mortality* ................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 125 ......................................................133 Flexibility of wage determination ...................................................................................................04 6..........04 4........................................................111 Burden of government regulation ................................114 Availability of scientists and engineers ............137 Fixed telephone lines* ...................132 Internet users* ...................................................14 6..........................02 7..................05 5................132 Regulation of securities exchanges .........131 Ethical behavior of firms............08 1.............17 1...1: Country/Economy Profiles Chad 7th pillar: Labor market efficiency 7................105 Transparency of government policymaking...........................................15 Intensity of local competition .08 7.........138 FDI and technology transfer..........................08 6.....02 3.................................02 11...............................66 University-industry collaboration in R&D .........................02 4...123 10.............03 5......................................01 4....................103 9th pillar: Technological readiness 9. For further details and explanation...............114 Business costs of crime and violence....................31 Country credit rating*................................................................05 6..................................96 Prevalence of trade barriers .................01 8..............136 Time required to start a business*.......................132 Protection of minority shareholders’ interests ......................10 1.....135 State of cluster development.....09 1......................................03 8...125 6........................110 Strength of investor protection* ...............................04 8....................................06 1..........03 9.138 Brain drain ...............01 11........................97 Utility patents per million population*.......05 11.........11 1.....07 6.........131 Diversion of public funds....97 Quality of math and science education.....................109 2nd pillar: Infrastructure 2......01 3..............................................................136 Trade tariffs*......100 Local supplier quality .....................130 Agricultural policy costs............06 11.............116 Favoritism in decisions of government officials ................02 9........................18 1......................................01 12................................137 Malaria incidence*.............................136 Available airline seat kilometers* .05 4...........................06 4.........08 11.......02 8...........................................................03 2...09 Local supplier quantity............04 12......................................................................138 Affordability of financial services....................................................................................................21 Property rights....................04 5.......................................121 Extent and effect of taxation.108 11th pillar: Business sophistication 11.133 Quality of air transport infrastructure .10 Business impact of malaria ..................02 1.05 2......................134 Tuberculosis incidence* ....................02 2..........13 1..128 Extent of marketing......................................05 9....128 Strength of auditing and reporting standards...05 3.............................133 Public trust of politicians .........................................136 Willingness to delegate authority...............118 Business impact of HIV/AIDS...................................132 Burden of customs procedures................126 Prevalence of foreign ownership ............112 Primary education enrollment rate* .....06 5...........................................138 10th pillar: Market size 10.............01 5...129 Quality of electricity supply ......81 Effectiveness of anti-monopoly policy .......................................................................06 Government budget balance* ..................................06 12.........70 Pay and productivity ......................09 Availability of financial services ...........08 4......................................................138 Judicial independence ...........92 Restriction on capital flows .13 6..................115 Venture capital availability.. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........100 Efficiency of legal framework in settling disputes .........................133 3rd pillar: Macroeconomic environment 3........117 Number of procedures required to start a business* .124 Company spending on R&D...........................................................................................120 Interest rate spread* .....................135 Quality of the educational system......................06 7.................138 Business costs of terrorism .......04 3...120 Internet access in schools.....

4..41 .......................................................................2 Inadequate supply of infrastructure ...............0.........8 Crime and theft ...............27..........4..............................4........................................6 6th pillar: Goods market efficiency......2 4th pillar: Health and primary education .........................3.7 126 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.9 Tax regulations .....1 10th pillar: Market size..............................000 Western Hemisphere 12............... 2009 GDP (PPP) per capita (int'l $)..............................9 Poor public health ..6 9th pillar: Technological readiness........0 GDP (US$ billions).....................45 ....................................4............................30 .................................46 ..................8 GDP per capita (US$) ...............2 Foreign currency regulations..28 ..................4 Policy instability.0 2nd pillar: Infrastructure....2......17...............................................................2 1st pillar: Institutions .......35 Chile 16..40 ........43 ......................37 .2...........................5..........................................................18..0................5 Financial market development Goods market efficiency Labor market efficiency Chile Economies in transition from 2 to 3 The most problematic factors for doing business Restrictive labor regulations ..4....................5.....1..44 ...................................14...............................43 ..28 ..................9.........4.......................7 Government instability/coups .................8 7th pillar: Labor market efficiency ....7 GCI 2008–2009 (out of 134)........6 8th pillar: Financial market development.............................................5................ 1980–2009 Population (millions)........................................ respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5................................5...............5 5th pillar: Higher education and training .................1 Inadequately educated workforce.............................7 3rd pillar: Macroeconomic environment ...........4......3 12th pillar: Innovation...........0......1: Country/Economy Profiles Chile Key indicators.......................5.... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ....................................................1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...........................7...................................8 Tax rates ..27 ..................9 11th pillar: Business sophistication..5......................................7 Transition 1–2 1 GCI 2009–2010 (out of 133).........000 4......6 Access to financing ..................................0..................................8 Poor work ethic in national labor force ..............3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......................4..............4..525 GDP (PPP) as share (%) of world total ...............3 Corruption.7 Factor driven Basic requirements........45 .......................3......44 ........................................................................30 .....................3 Inefficient government bureaucracy........4............4....9 Inflation ..............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.............4..................35 ........................................4.................................... The bars in the figure show the responses weighted according to their rankings...2........000 8..................4..............161..............28 ..................71 ..........3.......................................................

................................................25 Extent of market dominance...........21 Property rights.24 Judicial independence ...................................................................................77 Quality of port infrastructure ........35 Public trust of politicians ...............................10 Business costs of terrorism ..........................34 Restriction on capital flows ...........06 11..06 7.47 10th pillar: Market size 10............................................................................07 4................15 Internet access in schools......................................................................39 Flexibility of wage determination ...........09 Availability of financial services .....11 1..................24 Transparency of government policymaking.......59 Diversion of public funds.....................27 2.....44 Availability of scientists and engineers ....................................................................100 Quality of math and science education................08 8...06 6..............................................................12 Quality of railroad infrastructure .............08 7.......................................................................................................................................27 Willingness to delegate authority.........58 Local supplier quality ........39 Quality of electricity supply ...................04 5..............06 1.. For further details and explanation.......................................................................04 9..................4 Trade tariffs*..............................02 Foreign market size index* ..06 Government budget balance* .............................................37 FDI and technology transfer...........................36 Strength of investor protection* ........................................30 Fixed telephone lines* .............05 4...19 Total tax rate* ....04 6..34 Irregular payments and bribes........................................................................................................07 Capacity for innovation ...............78 Effectiveness of anti-monopoly policy ...................................13 6.....................64 3rd pillar: Macroeconomic environment 3.........07 1..............01 4.............61 Inflation*.................................................05 5.......03 2...........................07 5...................12 6........26 Firm-level technology absorption ...............19 Ease of access to loans.............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ................................21 Wastefulness of government spending ........29 Country credit rating*...62 Prevalence of foreign ownership ............02 8......04 12.............12 1..............59 Quality of scientific research institutions ...........................08 2.....18 Protection of minority shareholders’ interests ........03 3...........24 Utility patents per million population*.38 Nature of competitive advantage ........13 Female participation in labor force* . The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 127 .........................................15 1.......................123 Quality of management schools .............45 Efficiency of legal framework in settling disputes .....................................................................15 Intensity of local competition ..........07 8..................................................04 3......................67 Government debt* ................................1: Country/Economy Profiles Chile 7th pillar: Labor market efficiency 7........1 Business impact of tuberculosis .........03 12...........................................06 4...16 1..04 11................14 1..........................08 11..46 Interest rate spread* ....26 Efficiency of legal framework in challenging regulations .................................................21 Business costs of crime and violence........................................................................................08 1...............09 Local supplier quantity...........................................................26 Available airline seat kilometers* ..37 Reliance on professional management ................01 8.......04 8..........................42 Local availability of research and training services............................................................................................43 Quality of the educational system.........92 Value chain breadth ...........................................40 Production process sophistication.....................5 Regulation of securities exchanges ..26 Burden of government regulation ............................45 11th pillar: Business sophistication 11.........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.................................03 4................................07 7.....05 12......................................................................................5 Ethical behavior of firms....................................06 12..........................01 7.....................50 Notes: Ranks of notable competitive advantages are highlighted................................................................................................18 1.............................22 Extent and effect of taxation......................04 7..23 Venture capital availability..........111 Redundancy costs* ....................................................08 6......................................................................................31 Extent of staff training..............31 Extent of marketing...............................................................19 1.....................................10 Business impact of malaria ...........24 Quality of air transport infrastructure .......03 11.....05 1................11 6........................................................................06 2.......05 6.............................................................................25 Favoritism in decisions of government officials .......03 6........................................................20 Number of procedures required to start a business* .9 Business impact of rules on FDI .........121 Primary education enrollment rate* .....48 Control of international distribution ......................33 6...24 Efficacy of corporate boards ...........................88 Time required to start a business*..........................55 Company spending on R&D..................................51 Buyer sophistication ......44 Life expectancy* .............01 Domestic market size index*...............................01 9................7 Degree of customer orientation ...........................................86 9th pillar: Technological readiness 9....29 Business impact of HIV/AIDS.....46 10.....................................................................05 11...............................01 11.......01 5...........01 12...................................1 Malaria incidence*.....07 6..06 8.......37 Intellectual property protection . An asterisk (*) indicates that data are from sources other than the World Economic Forum..........................09 Cooperation in labor-employer relations....02 11.....................05 8......................................33 2nd pillar: Infrastructure 2..........86 Agricultural policy costs.....20 1...10 6.............02 6......48 Internet bandwidth* ............................13 Financing through local equity market ...........................................................................03 5..........76 National savings rate* .......................................................02 12.........104 Legal rights index* .....................................................28 Brain drain .02 1........................................................................................09 6.................................02 5..................14 6................................65 5th pillar: Higher education and training 5.......................................................................................................03 1........................................................................02 4.................................................................................................04 4.........67 12th pillar: Innovation 12.............13 1......................25 Rigidity of employment* .......05 2................63 Mobile telephone subscriptions* ..............................01 1...78 Organized crime ...............................68 Broadband Internet subscriptions* .......03 7....................................................................................26 4th pillar: Health and primary education 4.................05 9.......................20 Internet users* .........32 HIV prevalence* ..........................................05 3.........04 2............................09 Quality of overall infrastructure ..02 2........85 Pay and productivity ..................45 Reliability of police services ...........09 4...............42 Hiring and firing practices............17 1...............................................03 9........................................................20 Soundness of banks .......................31 Quality of primary education .....06 5..19 Strength of auditing and reporting standards.................27 State of cluster development.....................07 2..........01 3...............02 9.....39 Gov’t procurement of advanced tech products ...........12 Burden of customs procedures..08 4.....52 University-industry collaboration in R&D ........................................................................02 3..............................24 Quality of roads ..................................................................07 11..04 1.........09 1...71 Infant mortality* ....05 7...............03 8...............31 Tuberculosis incidence* .............................110 8th pillar: Financial market development 8.....................................56 Tertiary education enrollment rate*........01 2................................4 Prevalence of trade barriers .................01 6..........................19 Affordability of financial services.......06 Availability of latest technologies ..........................................................................................02 7....................10 1..

7 Factor driven Basic requirements.........9 Financial market development Goods market efficiency Labor market efficiency China Efficiency-driven economies The most problematic factors for doing business Access to financing .....................000 4...........................................78 ................1 Poor work ethic in national labor force .................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ........4............52 China 8................................................9 Foreign currency regulations...............................................1 Corruption......................27 ...............................................000 2..1.......................................3.........2 6th pillar: Goods market efficiency............8 Transition 1–2 1 GCI 2009–2010 (out of 133)..4......4 2nd pillar: Infrastructure...1 4th pillar: Health and primary education .......4.4.....43 .......4 10th pillar: Market size......................678 GDP (PPP) as share (%) of world total ...........4...57 ....3...0 GDP per capita (US$) ..7.....29 ....................................4...........................................................6...........................8..8.............................9...0 Inadequately educated workforce.9........................................4.............5................0 Tax regulations ...............7..........................................345....26 ..............................................3 1st pillar: Institutions .2 ...... 1980–2009 Population (millions)...................4...7 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....4 7th pillar: Labor market efficiency ...................................................49 .....8 GDP (US$ billions)..38 ..........7 8th pillar: Financial market development....4................................................0 Poor public health ..........1....5 Inefficient government bureaucracy...1......................8 Crime and theft .............909.................1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..............................6..000 Developing Asia 6........... 2009 GDP (PPP) per capita (int'l $)...9..........31 ...................................4 Inadequate supply of infrastructure ....................................................................2............................3...............4.......4 Tax rates ..........................................2 Policy instability................................................6....3 12th pillar: Innovation....30 .......2............6 5th pillar: Higher education and training ....................1 11th pillar: Business sophistication...............4.......................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.............12................2 128 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.............3 9th pillar: Technological readiness.50 .............................30 .......4................3................ respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5..................1: Country/Economy Profiles China Key indicators......... The bars in the figure show the responses weighted according to their rankings...............7 GCI 2008–2009 (out of 134)........................................3...................................................37 .................7 Restrictive labor regulations .......4 ...................60 ................5..9 Government instability/coups .....................................4 3rd pillar: Macroeconomic environment ......41 ........0 Inflation .........................................4............13............................29 ..............................10...............................

.......................................77 2nd pillar: Infrastructure 2.............................78 Hiring and firing practices....01 1........72 Quality of roads .......55 Public trust of politicians ...........................................03 4.................55 Strength of auditing and reporting standards........07 7............05 12......................05 3......74 Tuberculosis incidence* .............02 3.....14 6..................61 Legal rights index* .............................47 Organized crime ..................49 Willingness to delegate authority......................27 Quality of port infrastructure ...........................17 Nature of competitive advantage .......04 2......61 Efficacy of corporate boards ........06 2.................................................................................02 11..........................................1 11th pillar: Business sophistication 11..........................08 7.......................................................18 Country credit rating*...............................................1: Country/Economy Profiles China 7th pillar: Labor market efficiency 7...............25 Gov’t procurement of advanced tech products .................02 9...................07 8...57 Internet bandwidth* ...................... For further details and explanation...................................................................51 Ethical behavior of firms................................22 Infant mortality* .......................80 10th pillar: Market size 10......................................04 11..04 9..........22 Local availability of research and training services...52 Fixed telephone lines* .....04 8...............79 Business costs of crime and violence.....108 Agricultural policy costs.................................................01 5.............08 8.....58 Flexibility of wage determination ...............03 9...................19 Extent of market dominance.................06 7...............05 7....................................................................................................................................................................15 Intensity of local competition .................01 7...................................122 Prevalence of foreign ownership ..............37 Wastefulness of government spending ...........86 Business impact of HIV/AIDS....03 5................114 Pay and productivity ...................................................05 5..........04 3.......................................46 Degree of customer orientation ...03 12..........................................................03 3.......51 Transparency of government policymaking..............................................................10 Interest rate spread* ....................................20 1..................................................................75 Life expectancy* .......................03 11..............06 1.35 Utility patents per million population*...........04 12.........06 5.....................................................62 Redundancy costs* .......................01 8..............19 1................12 1.......................................................................................................................................................08 6.........90 Malaria incidence*...........................56 HIV prevalence* .........09 Local supplier quantity..................................................................................08 4.....................02 6..............................06 6...70 Quality of primary education ..............................05 2...................................................3 Inflation*...........................................................01 6..51 Venture capital availability..................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....32 4th pillar: Health and primary education 4......53 Quality of math and science education......70 Buyer sophistication ...............15 1..............................01 3...05 6...............04 1...............................12 6...............................................44 Financing through local equity market .........................................71 Affordability of financial services.........09 1.....12 Availability of scientists and engineers ....... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 129 ..............111 3rd pillar: Macroeconomic environment 3..................01 11............................01 Domestic market size index*.............................................................09 Quality of overall infrastructure ...........76 Reliability of police services ..............................10 Business impact of malaria ........................06 12...42 Production process sophistication................17 1.........................................44 Efficiency of legal framework in challenging regulations .....................41 Control of international distribution .........57 Mobile telephone subscriptions* .......................................................07 6.........04 4......................................................................................21 Property rights..............94 Firm-level technology absorption ...............35 National savings rate* ....................23 8th pillar: Financial market development 8..................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ......................66 Strength of investor protection* ...10 1.............................09 Cooperation in labor-employer relations..........................................55 Extent of marketing.........................14 1.13 1...........................................................07 5.............02 4.....122 Number of procedures required to start a business* ........09 6................63 Internet access in schools..........06 11............29 Total tax rate* .......08 11...........................60 Regulation of securities exchanges .........................04 7.35 Burden of government regulation ........................53 Quality of railroad infrastructure ..........................................................07 4....................33 Quality of management schools ..............................03 7..................................03 2....49 Diversion of public funds..........................................54 State of cluster development.....56 Rigidity of employment* ......................................7 2....................................................................................103 Business impact of rules on FDI .......................21 Quality of scientific research institutions ..........07 2.....................................08 1........................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum.............05 8...........06 Government budget balance* ......................................................................27 Restriction on capital flows ..The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1...................................................................03 1.........79 Available airline seat kilometers* ..................................................................................................................19 Local supplier quality .............................02 5...........35 Primary education enrollment rate* ...........09 Availability of financial services ..................21 Efficiency of legal framework in settling disputes ...................01 9...........................02 8....69 Trade tariffs*.........................................38 Business costs of terrorism .................57 6...............11 1..................03 6.......................11 6..............................................................16 1...................23 Effectiveness of anti-monopoly policy ........................50 Extent and effect of taxation...........................02 7............................................02 1....123 Soundness of banks .............................02 12..........................................................62 Favoritism in decisions of government officials ...............05 9.............02 2.....................15 Reliance on professional management ....18 Burden of customs procedures............07 1..................................................60 9th pillar: Technological readiness 9..................................................03 8......................................7 5th pillar: Higher education and training 5................................................................08 2..............38 Intellectual property protection .............85 Protection of minority shareholders’ interests ........................................05 1.......22 Irregular payments and bribes.........10 6.......06 4........................48 Value chain breadth .........................................01 4...........................................................................................126 Time required to start a business*.33 Government debt* ...04 5.....................06 8.............................92 Tertiary education enrollment rate*........61 FDI and technology transfer.....07 Capacity for innovation ...2 Quality of electricity supply .............................50 Extent of staff training................22 University-industry collaboration in R&D ....50 Brain drain ..................................................................................................13 6.......80 Internet users* .............................07 11.......88 Quality of the educational system...............................................06 Availability of latest technologies ........37 Female participation in labor force* ............5 Prevalence of trade barriers .......52 Ease of access to loans....................01 2.......................77 Broadband Internet subscriptions* ..........04 6.............68 12th pillar: Innovation 12........................................................02 Foreign market size index* .............................05 11.........51 Notes: Ranks of notable competitive advantages are highlighted..18 1.....01 12.............63 Judicial independence ................09 4............67 Quality of air transport infrastructure ......05 4..2 10......80 Business impact of tuberculosis ..39 Company spending on R&D.........................................

........61 ......4.......4..............................3..79 ..................6....................0.........4 1st pillar: Institutions .................79 ...............5...............................................69 ........................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011........2...............................................1 Transition 1–2 1 GCI 2009–2010 (out of 133).........4...50 ................................... The bars in the figure show the responses weighted according to their rankings.......11.4...........................0 12th pillar: Innovation..........5 Restrictive labor regulations ............................4...............1 5th pillar: Higher education and training .................................................................................................1 Financial market development Goods market efficiency Labor market efficiency Colombia Efficiency-driven economies The most problematic factors for doing business Corruption..............4 8th pillar: Financial market development..........69 .......................... 2009 GDP (PPP) per capita (int'l $)........................7 Poor work ethic in national labor force .............000 3....0 9th pillar: Technological readiness............................................................000 Western Hemisphere 9.....103 ............................................3..........000 6......3...............8 7th pillar: Labor market efficiency ......3.......................5.....1.103 ............................................................6 11th pillar: Business sophistication...........4.....45..8 4th pillar: Health and primary education ..6 Government instability/coups ...............................................1 Inadequate supply of infrastructure .......60 .....6 Inadequately educated workforce....................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..........................1 GCI 2008–2009 (out of 134)....................1: Country/Economy Profiles Colombia Key indicators.........1........74 ....................................32 .......................................................................0 Policy instability...........4...............61 ...........................................3......3.....5.........6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...........................4..........3 Access to financing ...68 ..................4............................................................7 GDP (US$ billions)......................................087 GDP (PPP) as share (%) of world total ................................4 2nd pillar: Infrastructure..................................4..................................1 6th pillar: Goods market efficiency..........0 Factor driven Basic requirements......... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.... 1980–2009 Population (millions).............16...................8 GDP per capita (US$) ...........5 Foreign currency regulations...........4.......................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...........7......................................7 Inflation ...................6 Crime and theft ...........79 ...11...........69 ....0 Poor public health ....58 Colombia 12....65 ....................6 130 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..........10................................7 Tax regulations .....6 10th pillar: Market size...............10..............6 Tax rates .........1 Inefficient government bureaucracy...2.........................4....................63 ..........................2.......6 3rd pillar: Macroeconomic environment .........78 ..4...228.............4................

...........75 9th pillar: Technological readiness 9.....................07 8.................................49 10th pillar: Market size 10................................113 Legal rights index* ....................02 3..................................................................12 6.03 7........................50 Rigidity of employment* .....................................................90 Strength of investor protection* .................................................................52 11th pillar: Business sophistication 11.................................................................................04 1.........................53 12th pillar: Innovation 12............21 Property rights..............06 12...............05 6.......08 8.............................................................................................................94 Pay and productivity .....10 Business impact of malaria ..................................03 5......65 Extent of staff training.41 Quality of electricity supply .................105 Quality of air transport infrastructure .05 2.........134 Organized crime .................................02 1...............................................91 Intellectual property protection ................... For further details and explanation.............01 1............................................62 Business impact of HIV/AIDS............................................................................................74 3rd pillar: Macroeconomic environment 3.......................................04 8......................05 4.................90 Primary education enrollment rate* .....09 Cooperation in labor-employer relations..............................................................................................................................118 Wastefulness of government spending ............................05 7.82 Extent of market dominance........01 3..................76 Degree of customer orientation .......................................................................................18 Hiring and firing practices..40 Nature of competitive advantage .79 University-industry collaboration in R&D .............70 Redundancy costs* ..................06 4................................................................................................................................07 6....61 Venture capital availability....................................74 Brain drain .....50 Local supplier quality ..................................................................................................66 Financing through local equity market ...............................88 Burden of customs procedures.......................................60 Protection of minority shareholders’ interests ...................................62 Production process sophistication........................................................................13 1.....03 9............................04 3.............03 8...........................05 12.02 4......................06 Availability of latest technologies ....06 Government budget balance* .......................84 Female participation in labor force* .96 Malaria incidence*......................................................09 1.....The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.......................05 11..............................................................................................42 State of cluster development..............02 9...............11 1....................................................................................................06 11..........................97 Irregular payments and bribes....72 Quality of primary education ....................................................................................02 7.............................99 6..............................54 Affordability of financial services...................................................47 Gov’t procurement of advanced tech products .............06 6.........07 5...............01 7........72 Control of international distribution ..............................................................................43 National savings rate* ............137 Reliability of police services ....18 1.........20 1......80 Quality of math and science education.................70 Quality of scientific research institutions ......71 2......................73 Life expectancy* ...08 11..................................04 5...............124 Efficiency of legal framework in settling disputes ..................85 FDI and technology transfer...01 5......................09 Local supplier quantity..............68 Extent of marketing...57 Fixed telephone lines* .................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...................17 1...03 12...................12 1......07 1......................................04 4........87 Burden of government regulation ....83 Tuberculosis incidence* ...................05 9.............51 Availability of scientists and engineers ....58 4th pillar: Health and primary education 4.........102 Quality of port infrastructure ....02 11...............................................130 Number of procedures required to start a business* .................................05 8.............................92 5th pillar: Higher education and training 5............................06 5......05 3.................................................. An asterisk (*) indicates that data are from sources other than the World Economic Forum................07 7.................04 2..........134 Trade tariffs*......................................05 1.......................57 Tertiary education enrollment rate*.....................................04 11.........46 Flexibility of wage determination ................................................01 8.........................................89 Available airline seat kilometers* ..81 Company spending on R&D......04 7..................03 1.78 Country credit rating*..............01 12....63 Strength of auditing and reporting standards.......................02 6...101 Prevalence of foreign ownership .............................................87 Interest rate spread* ............................................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 131 ............................................87 Firm-level technology absorption ........34 Regulation of securities exchanges ............58 Internet users* ........................................63 Quality of the educational system....02 5...................................................97 Quality of roads ....03 4.06 8...........83 Value chain breadth ..........106 Public trust of politicians .........02 12.......................................................04 6....04 9.......07 Capacity for innovation ..72 Ease of access to loans.............14 6..................................09 Availability of financial services ......................07 11............................01 9..124 Effectiveness of anti-monopoly policy ..........10 6........................................09 Quality of overall infrastructure ........10 1.....03 2...............89 Infant mortality* .................64 Ethical behavior of firms...........................................89 Efficacy of corporate boards .....15 1.............................................89 Prevalence of trade barriers ..................47 Broadband Internet subscriptions* .....................07 4.104 Soundness of banks ............19 1.........................................02 Foreign market size index* ......87 Efficiency of legal framework in challenging regulations ...02 8..................01 Domestic market size index*.................02 2..........107 Business impact of tuberculosis ............................................................01 6...54 8th pillar: Financial market development 8...............................04 12.......................................................................................86 Willingness to delegate authority....................93 Quality of management schools ..............07 2.28 10............15 Buyer sophistication ................14 1...........90 Judicial independence ...........71 Agricultural policy costs..86 Utility patents per million population*..92 Business impact of rules on FDI ............08 1....................77 Notes: Ranks of notable competitive advantages are highlighted..............128 Total tax rate* ..................78 Favoritism in decisions of government officials .......................15 Intensity of local competition ..08 7...........01 4.............................................................................59 Internet access in schools........................................13 6...............................................................................09 4...........................................93 Diversion of public funds........16 1................................................................................5 2nd pillar: Infrastructure 2...........................88 Local availability of research and training services...........1: Country/Economy Profiles Colombia 7th pillar: Labor market efficiency 7...............06 2.70 Internet bandwidth* ......................88 Time required to start a business*.....................................................08 2.....................................08 4....................................08 6..............01 11...................05 5.139 Business costs of crime and violence.....................................06 7..108 Quality of railroad infrastructure .............................................104 Reliance on professional management ...90 Extent and effect of taxation............60 Business costs of terrorism ..............................................77 Mobile telephone subscriptions* ....08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...........54 Inflation*......03 6.....................66 Restriction on capital flows ............................................101 HIV prevalence* ................................11 6............88 Government debt* ..............06 1.................................09 6.....73 Transparency of government policymaking..................................................................................................03 3..................03 11.......................................01 2....................

...1: Country/Economy Profiles Costa Rica Key indicators..1 11th pillar: Business sophistication.......................................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5........57 .22 ....................3................................................4...............6 Crime and theft ..........................................51 ...........48 ......5....4 2nd pillar: Infrastructure..................13............19.....................3 132 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...................... 1980–2009 Population (millions).............1..5..... The bars in the figure show the responses weighted according to their rankings.......000 3..................................................82 .......4 Inadequate supply of infrastructure ...........5..............................3.........58 .............4 7th pillar: Labor market efficiency ..................5 Foreign currency regulations............................3 Transition 1–2 1 GCI 2009–2010 (out of 133)................................4....................................2 Inadequately educated workforce.........................................................32 ....33 ............................4...................................................4......4.................59 ..................4.4.................................4..2 GCI 2008–2009 (out of 134).........1 5th pillar: Higher education and training ................................4...........2 Government instability/coups .....................3 Tax regulations .......6.......22....0................................000 6..........7 Financial market development Goods market efficiency Labor market efficiency Costa Rica Efficiency-driven economies The most problematic factors for doing business Inefficient government bureaucracy..........0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....................................6 8th pillar: Financial market development..3 GDP per capita (US$) ......1 4th pillar: Health and primary education ..............3...........35 .......6 GDP (US$ billions).3.1 Policy instability..........................4.....................3.....................................................43 .2 Factor driven Basic requirements..................3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....................................6...............................................3 Poor public health ...........................0.............4......5 Access to financing ............................07 Costa Rica 12...............0.45 ..6 Restrictive labor regulations ...........1 Tax rates .0 9th pillar: Technological readiness.8 Inflation .....................6 1st pillar: Institutions ...2..29................................................5.......................................78 ...6 Poor work ethic in national labor force .....................8 Corruption.........................8 10th pillar: Market size..................56 .....55 .....................................................................000 Western Hemisphere 9...................................345 GDP (PPP) as share (%) of world total .............62 ............3................................4............4......................5 12th pillar: Innovation.............4..................... 2009 GDP (PPP) per capita (int'l $).4..5..................6 3rd pillar: Macroeconomic environment .000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.....................4.........................................108 ............................85 ...............6 6th pillar: Goods market efficiency.................

..01 4.................................63 Internet bandwidth* ...........................................04 3............................................67 Intellectual property protection ........109 Number of procedures required to start a business* .....................................07 1..................08 11............................53 Efficiency of legal framework in challenging regulations .........................05 12.....................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .......................................................31 Company spending on R&D....75 Quality of electricity supply ....................03 4....46 Burden of government regulation .........52 Nature of competitive advantage ...............02 6..............84 Degree of customer orientation ..........................................02 12............55 Financing through local equity market ........12 1............................06 4....................43 Fixed telephone lines* ..10 6..................................................02 11.........50 Life expectancy* .....40 Protection of minority shareholders’ interests ...........119 3rd pillar: Macroeconomic environment 3.......................................................06 11........................45 HIV prevalence* ................................................03 3................05 4.............07 11......07 4.........................................................121 Agricultural policy costs..06 7.......................07 2................44 Quality of scientific research institutions ... An asterisk (*) indicates that data are from sources other than the World Economic Forum......................................15 1.04 9.........................132 Quality of air transport infrastructure ........03 7.........82 10...................04 8.........83 Restriction on capital flows .....05 7..................................................................................05 2.......................06 2................................................01 2................................................................................................... For further details and explanation...........03 12..............................................................55 Brain drain ..........................................101 Reliability of police services ......................................................................01 11.19 Tuberculosis incidence* ..................19 1.............01 8...............16 1..........................15 Intensity of local competition ........4 Internet users* .................87 Soundness of banks ...............36 Willingness to delegate authority......41 Extent and effect of taxation.38 Mobile telephone subscriptions* ................................................................................08 8.....06 1...................................................................114 Time required to start a business*............................07 8.................................................06 8..........124 Government debt* ...........................05 6.......................................111 Quality of railroad infrastructure ..1: Country/Economy Profiles Costa Rica 7th pillar: Labor market efficiency 7.......................................................50 Quality of management schools .......................77 Infant mortality* ..............57 Pay and productivity ...03 5....38 Notes: Ranks of notable competitive advantages are highlighted.....................................11 1.....09 1.........................01 Domestic market size index*......................................01 9.07 5...................68 Diversion of public funds..44 Local supplier quality .........................................48 Production process sophistication........42 Prevalence of foreign ownership ....115 Organized crime .....28 Control of international distribution ........................38 Transparency of government policymaking................................07 6........................................18 1..........................................62 Efficacy of corporate boards ...........................................95 Venture capital availability.........................................................75 9th pillar: Technological readiness 9...08 4............................................06 Availability of latest technologies .............................80 Available airline seat kilometers* ......................28 Gov’t procurement of advanced tech products ..............05 5.32 Extent of marketing..........06 12.................62 4th pillar: Health and primary education 4....02 1...1 5th pillar: Higher education and training 5..........................31 University-industry collaboration in R&D ...................33 Primary education enrollment rate* .......................04 5....05 11............................114 Ease of access to loans....14 6.40 Business costs of crime and violence.........................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1........................13 6..............................65 Affordability of financial services........................................49 Reliance on professional management ....04 6......77 Country credit rating*.........................100 Legal rights index* .......................................02 9.....03 11..............02 2.....................................................................................................70 Firm-level technology absorption .41 Total tax rate* ............55 Availability of scientists and engineers ...............41 Irregular payments and bribes........11 6..................49 National savings rate* ...............01 7......................76 11th pillar: Business sophistication 11....................07 Capacity for innovation .......16 Female participation in labor force* ............26 Favoritism in decisions of government officials ........................113 Inflation*...........63 Tertiary education enrollment rate*..................03 1...........83 Quality of the educational system.04 1.....08 6...80 Rigidity of employment* .....................................64 Local availability of research and training services.......................06 6.......................05 3.........01 5...........39 Buyer sophistication .......................127 2nd pillar: Infrastructure 2.....45 10th pillar: Market size 10...................................59 Strength of investor protection* .............03 6.............20 1.......12 6..........113 Interest rate spread* .......................32 Extent of staff training...............................................21 Property rights.................................10 1.....01 12.....29 Quality of primary education ..........09 Local supplier quantity.....................................44 2.............28 Utility patents per million population*..........................................................................04 4......04 7..................................22 Quality of math and science education....................02 8.......09 Cooperation in labor-employer relations......................43 Redundancy costs* ......................................................................................................08 1..........................20 Business impact of rules on FDI ...........05 1...................49 Public trust of politicians .............05 8................................17 1.............................56 Business costs of terrorism ........................................50 FDI and technology transfer...........................................................................................................................02 4..................69 Efficiency of legal framework in settling disputes ..................................09 Quality of overall infrastructure ............07 7...........................................29 Effectiveness of anti-monopoly policy .....................96 Hiring and firing practices......................................................................59 Extent of market dominance..........................................................22 6..98 Business impact of tuberculosis ..............14 1...............................................................04 11.........................................08 7............101 Trade tariffs*...........06 5................................................................................................................66 Broadband Internet subscriptions* .............................................09 Availability of financial services ..................03 8............................................13 Internet access in schools......................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....21 Prevalence of trade barriers ........................09 6.52 Judicial independence .......................................03 9........02 7...49 Ethical behavior of firms.......................27 12th pillar: Innovation 12......73 Malaria incidence*.................................................................04 2.........................................................................13 1.............................................................114 8th pillar: Financial market development 8...........................................28 Business impact of HIV/AIDS................02 Foreign market size index* ............................................................................22 Regulation of securities exchanges ....04 12.......35 Strength of auditing and reporting standards......................12 Flexibility of wage determination .........09 4..........36 Burden of customs procedures.....................................77 Quality of roads ..................................28 State of cluster development....27 Value chain breadth ....01 6....05 9.........................................06 Government budget balance* ...............39 Wastefulness of government spending ....01 3.................................................100 Quality of port infrastructure .............02 5. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 133 .........................10 Business impact of malaria ....08 2...................................................03 2..............................01 1.......................................................02 3.....................................

............3........................0..0.10...................1 10th pillar: Market size.....0 6th pillar: Goods market efficiency.............................05 Côte d’Ivoire 3............................................................ respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5......110 .......3......7 Policy instability................94 ..............................................5....6 Tax regulations ................................0 Tax rates ...........052 GDP (PPP) as share (%) of world total .........1 GDP (US$ billions)......3..........21......5 Factor driven Basic requirements..................2.........99 ........4 1st pillar: Institutions .....3 Transition 1–2 1 GCI 2009–2010 (out of 133).............6 Foreign currency regulations..0 11th pillar: Business sophistication.3.........3........1: Country/Economy Profiles Côte d’Ivoire Key indicators..........17.........................8 Inadequately educated workforce..3..............................................................5 Inefficient government bureaucracy...........................................................3 4th pillar: Health and primary education ..........8 Corruption..................19...........129 ...4......................4.................................000 Sub-Saharan Africa 2.........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011...................1 3rd pillar: Macroeconomic environment .....110 ......6........................3 12th pillar: Innovation.....4..........................109 .....9 Poor public health .......................................3..............1.......................................................................................7 Government instability/coups .......................4 5th pillar: Higher education and training ...............118 ......................5 GDP per capita (US$) ...........................................3.....................................3......3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.............7 Inflation ..............19................................5 9th pillar: Technological readiness.6 Poor work ethic in national labor force ......116 ..............7 7th pillar: Labor market efficiency ....133 ...0.......0 2nd pillar: Infrastructure........... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .......................105 ...... 2009 GDP (PPP) per capita (int'l $).................................. The bars in the figure show the responses weighted according to their rankings...........................133 ................................1 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ........................................136 .94 ........................................................................1 Restrictive labor regulations ...................2....................................2.......................4 GCI 2008–2009 (out of 134)............................3...............22..116 ..........................2 Inadequate supply of infrastructure .4 Crime and theft .......102 ......112 ...........................................116 ..3...........1 134 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation Infrastructure 6 5 Business sophistication Efficiency enhancers...3......................................................3.........3.0 8th pillar: Financial market development.......1................................0....... 1980–2009 Population (millions).........................2..3......................7 Financial market development Goods market efficiency Labor market efficiency Côte d’Ivoire Factor-driven economies The most problematic factors for doing business Access to financing ................3...................................112 .............000 1.........................4..........

..........54 Business costs of crime and violence...........................100 Internet access in schools................04 2................114 Control of international distribution ..............................................01 9......119 Extent of marketing............................130 Gov’t procurement of advanced tech products ...................................................................................02 4....................07 6..........................................133 Nature of competitive advantage ..63 Legal rights index* ................13 1..............20 1.............06 5........................................................15 Intensity of local competition .....06 Government budget balance* ........100 Availability of scientists and engineers ...............106 3rd pillar: Macroeconomic environment 3................................06 7.......03 1.........07 4............82 Hiring and firing practices............................123 HIV prevalence* ...................03 3...............121 Country credit rating*........................................132 Reliability of police services ........42 Quality of air transport infrastructure ........11 6...............09 Cooperation in labor-employer relations.01 5.........129 Business impact of HIV/AIDS.................................................03 2....................05 1.................................118 Efficacy of corporate boards ..........06 11......122 Internet bandwidth* ...............7 National savings rate* ........................................75 Available airline seat kilometers* ..76 Extent of market dominance..................................................................................................................................................................07 Capacity for innovation ..........................................04 7...................................94 Degree of customer orientation ..117 Transparency of government policymaking.....09 Availability of financial services ..................................123 Value chain breadth .......01 7..........................122 8th pillar: Financial market development 8..................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 135 ...112 Efficiency of legal framework in challenging regulations ...........................................05 4....26 Business impact of rules on FDI ..........99 Strength of investor protection* .........................22 Protection of minority shareholders’ interests .....75 Brain drain .........................................................69 Flexibility of wage determination .................................01 6.................................................................02 12.128 Production process sophistication.....................................103 Total tax rate* ........06 4......................................107 Soundness of banks ....................122 Tuberculosis incidence* ..06 2.......................05 8......................04 5...............08 7.....02 5...63 Extent of staff training....08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..............................................101 Financing through local equity market ..........................112 Agricultural policy costs.86 11th pillar: Business sophistication 11...04 1............114 Strength of auditing and reporting standards....................136 5th pillar: Higher education and training 5........09 1......................................01 8.............136 Diversion of public funds...115 Quality of primary education ...................................93 Quality of railroad infrastructure ....81 Local supplier quality ..............104 Quality of electricity supply .......................................................................................136 Judicial independence ....................................27 Redundancy costs* ....................71 Trade tariffs*............................07 2..............112 Inflation*.............................103 Efficiency of legal framework in settling disputes ................103 9th pillar: Technological readiness 9..............................05 7.................99 Time required to start a business*....................................128 Organized crime .............................136 2......................................................................09 4.......................36 Interest rate spread* .........08 4.18 1............................................04 8....93 University-industry collaboration in R&D ............14 1...........................................132 Public trust of politicians ............................................134 12th pillar: Innovation 12..........................100 Fixed telephone lines* .................21 Property rights.........................17 1...........................................92 Government debt* ...09 Quality of overall infrastructure ........120 Broadband Internet subscriptions* ..................................01 2....................................10 Business impact of malaria .....04 11.........126 Infant mortality* .............................02 9.................05 12.......129 Wastefulness of government spending ......................................................112 10th pillar: Market size 10.........................123 2nd pillar: Infrastructure 2.........135 Business impact of tuberculosis .............................................................................................................03 11..................03 4............02 7..........................02 6....67 Burden of customs procedures....................................................105 Affordability of financial services.....................................42 Utility patents per million population*..........124 Local availability of research and training services............................................04 3......................16 1...........08 11........02 8....................................................................97 Primary education enrollment rate* ....................................95 Reliance on professional management .........11 1....................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1...................07 11..................................64 FDI and technology transfer...83 Pay and productivity ... An asterisk (*) indicates that data are from sources other than the World Economic Forum.........................................08 2..................83 Number of procedures required to start a business* ..............................132 Burden of government regulation ...................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................................................76 Prevalence of trade barriers ....................02 Foreign market size index* ..............07 7.....138 Venture capital availability...................................................................................04 12.......................................05 9............................................10 1..........................................05 2.............................02 11..............06 8............89 Extent and effect of taxation.03 9.........................04 4.....................................08 6....................03 12.............04 9....................137 Irregular payments and bribes...................07 8................................................................... For further details and explanation.........03 5.......................................................................................06 12..03 6...............94 10..............128 4th pillar: Health and primary education 4.137 Restriction on capital flows .........................44 6...........................01 1..........114 Intellectual property protection ..........................................................................1: Country/Economy Profiles Côte d’Ivoire 7th pillar: Labor market efficiency 7................89 Willingness to delegate authority.............................................................................................80 Quality of roads ........130 Tertiary education enrollment rate*..10 6...........................05 6............122 Mobile telephone subscriptions* ..............79 Firm-level technology absorption ................................106 Quality of math and science education................................................................78 Internet users* ....90 Notes: Ranks of notable competitive advantages are highlighted.................................110 Business costs of terrorism ......................13 6.............................01 12.........................................................137 Ethical behavior of firms..137 Favoritism in decisions of government officials ........07 5.....15 1.......................05 11......92 Company spending on R&D...02 3.........................................79 State of cluster development......................01 11...........19 1..............03 7.............................................12 6............................06 6......01 4...........09 Local supplier quantity............03 8.............................08 1...132 Quality of scientific research institutions ...............................34 Ease of access to loans..............80 Buyer sophistication ..........................................43 Rigidity of employment* .......................14 6...........111 Quality of the educational system................................................................05 5.....................................................83 Quality of management schools ....................06 Availability of latest technologies ........................129 Life expectancy* ....................06 1.................78 Female participation in labor force* ........................................................02 1............130 Malaria incidence*.................................09 6.....04 6............................98 Regulation of securities exchanges ....................................07 1......12 1............................80 Quality of port infrastructure ..................................01 3..102 Prevalence of foreign ownership ....................108 Effectiveness of anti-monopoly policy ...................01 Domestic market size index*...05 3.......08 8.........02 2...............

.............4..................................88 ....................................2 Factor driven Basic requirements...........3.........................243 GDP (PPP) as share (%) of world total .....................8 Tax regulations ......13.....................4............72 .85 ...................................................4....2..11 Croatia 20........3 11th pillar: Business sophistication..13......8 4th pillar: Health and primary education ..................................................................8 Tax rates ..........8 1st pillar: Institutions .....0 Transition 1–2 1 GCI 2009–2010 (out of 133)....................6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....48 ...6...................18......0 9th pillar: Technological readiness..4 Government instability/coups .............8 7th pillar: Labor market efficiency .........8 Crime and theft ......... 2009 GDP (PPP) per capita (int'l $)......2 Access to financing ....................... 1980–2009 Population (millions)..................9 Policy instability..........10...........4 Poor work ethic in national labor force ......................110 .................0.................77 ...............9 8th pillar: Financial market development.............4..........3 6th pillar: Goods market efficiency.......................86 .............2 GDP per capita (US$) .....4..........2 Poor public health ....................................................9 Inadequately educated workforce...............8..........1......51 ..........................................................................................000 5......4....6 3rd pillar: Macroeconomic environment ................7 Inflation ....1 Foreign currency regulations............1: Country/Economy Profiles Croatia Key indicators..........2 10th pillar: Market size...14...................50 .....................3......................................................113 ..3...92 ....63.........13.41 ............61 . respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.....................70 .2..5...........................................................76 ..4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..................3............................2....................4..2............3.4...........................................0 GCI 2008–2009 (out of 134)................................................................................................................0 5th pillar: Higher education and training .........................9 Restrictive labor regulations ...4 GDP (US$ billions)...... The bars in the figure show the responses weighted according to their rankings..............................70 .............................5 Corruption.........0 136 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.....................................2.................3...........2....................................................3.............................................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011...........................................1...........................000 10..................0........................................................6 2nd pillar: Infrastructure..6 12th pillar: Innovation... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ....4....000 Central and Eastern Europe 15.......56 ..4........39 ........................4.......................................................0 Inadequate supply of infrastructure ......................1 Financial market development Goods market efficiency Labor market efficiency Croatia Economies in transition from 2 to 3 The most problematic factors for doing business Inefficient government bureaucracy......

.......131 Protection of minority shareholders’ interests .........................................................................................................................................74 Legal rights index* ......The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1........................................................71 10...............................................................122 Female participation in labor force* ...................................76 State of cluster development..............................09 4......................83 Affordability of financial services....................................................................................................................................81 Efficacy of corporate boards ...09 Local supplier quantity....40 Broadband Internet subscriptions* ...........03 6...................47 Tertiary education enrollment rate*........................19 1..........21 Property rights...................11 1..................................98 FDI and technology transfer.................................12 1...............10 1............60 Interest rate spread* ........................................................126 Efficiency of legal framework in challenging regulations .................98 Extent and effect of taxation......................60 4th pillar: Health and primary education 4..........................106 Redundancy costs* ............20 1...........07 Capacity for innovation ...........03 5............42 Quality of roads ....................................................37 Primary education enrollment rate* .............65 Inflation*..........96 Reliance on professional management ...................09 1..............79 Quality of air transport infrastructure .................01 3............03 8..............................134 Total tax rate* .......05 1.....54 Business impact of HIV/AIDS..........07 8...........................66 Trade tariffs*...............................................................................................06 11........31 Quality of railroad infrastructure ............................................96 Irregular payments and bribes.91 Soundness of banks ....................58 Ethical behavior of firms......03 4...................121 Burden of government regulation ......73 Strength of auditing and reporting standards..................38 Internet bandwidth* ..................57 National savings rate* ....12 6...........06 7......................44 Quality of primary education ..75 11th pillar: Business sophistication 11.....51 Company spending on R&D.....................99 Buyer sophistication ...............13 6..........................................128 6...69 8th pillar: Financial market development 8......................................08 8.................................................31 Life expectancy* .109 2nd pillar: Infrastructure 2...........................14 HIV prevalence* ...............40 Organized crime ......................................75 Degree of customer orientation ...............................93 Wastefulness of government spending .............................................66 Regulation of securities exchanges ............02 6..................................88 Internet access in schools..101 Control of international distribution .............16 1........................40 Number of procedures required to start a business* ..........24 Mobile telephone subscriptions* ...................134 Prevalence of trade barriers .......................................................61 Country credit rating*......1: Country/Economy Profiles Croatia 7th pillar: Labor market efficiency 7...01 9.....................02 8.............................03 1.................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 137 ...........................................57 Time required to start a business*.....................................71 Business costs of terrorism .........................03 7.........................................................................06 12......09 6..........................02 12.....................131 Burden of customs procedures.............................................................72 Available airline seat kilometers* .......08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .........................................08 11.................96 Ease of access to loans...................04 7.02 2............1 Malaria incidence*...................................................................................................................76 Rigidity of employment* ......03 2.....................07 1.......103 Government debt* ........50 Quality of the educational system............61 Extent of staff training....................94 Financing through local equity market ...........................................................41 Prevalence of foreign ownership ...........................................20 3rd pillar: Macroeconomic environment 3..................................................................................05 4...........................................07 2.................................121 Effectiveness of anti-monopoly policy ......75 Gov’t procurement of advanced tech products .........104 Nature of competitive advantage ...........02 9...........................06 6....75 Pay and productivity ..................................................................................................................04 2.......49 Fixed telephone lines* ............99 Local supplier quality ....89 5th pillar: Higher education and training 5...................08 6........01 6..................09 Quality of overall infrastructure ..................................................05 12...........................06 Availability of latest technologies .......97 Favoritism in decisions of government officials .............................126 Transparency of government policymaking...............................02 4...........................................................07 7...........03 12.......108 Restriction on capital flows ..08 7..............10 6.................01 Domestic market size index*..............87 Intellectual property protection .03 9......................01 1.....03 3.05 3.................18 1....114 Extent of market dominance.................55 Firm-level technology absorption ..................................83 Willingness to delegate authority.............04 9........01 7................................92 Production process sophistication.121 Availability of scientists and engineers .....................07 6...........01 5............................136 Efficiency of legal framework in settling disputes .....05 9......05 11.........03 11............................48 Quality of port infrastructure ....09 Availability of financial services ...............................123 Strength of investor protection* .....110 Business impact of rules on FDI .......................................................................................01 4.................................................89 Quality of math and science education......13 1........1 Business impact of tuberculosis ............................... For further details and explanation...............75 Agricultural policy costs.......................................35 Notes: Ranks of notable competitive advantages are highlighted.................01 12......02 1................................................08 1...................................04 12.................60 Value chain breadth .....................................90 Public trust of politicians ....21 Tuberculosis incidence* .............14 Business costs of crime and violence......44 Local availability of research and training services.......................04 6.......06 4.............14 6......01 11....................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....................................................05 2..................................................................................111 Internet users* .................17 1...............................................................14 1.....................15 1.136 Flexibility of wage determination ........................................................................04 3...........................................................02 11...........................................................22 Quality of management schools .......................05 7.........................................121 Hiring and firing practices..............1 Infant mortality* .............................................02 Foreign market size index* ................20 10th pillar: Market size 10........................06 5......................... An asterisk (*) indicates that data are from sources other than the World Economic Forum.............07 4..........10 Business impact of malaria ..................11 6....07 11..............60 9th pillar: Technological readiness 9...........05 5..................................................113 2..........08 2....88 Quality of electricity supply ...........................................................................................................................106 12th pillar: Innovation 12................................04 8.........................06 8...70 Diversion of public funds.......85 Utility patents per million population*......................106 Brain drain .......04 5..........04 11.........................74 Reliability of police services ........15 Intensity of local competition .............................................06 Government budget balance* ...................04 1.............80 Judicial independence ...........04 4..........81 Venture capital availability......................................................................................................................02 7.....06 2.............................09 Cooperation in labor-employer relations...........................88 Extent of marketing..01 2....08 4............................05 8.....02 3........................................................................................02 5.......................05 6..........66 Quality of scientific research institutions .....07 5....06 1.................................................01 8.60 University-industry collaboration in R&D ..............

.................................9 Government instability/coups .............................................................4.............9 Restrictive labor regulations ...........17................................7 Financial market development Goods market efficiency Labor market efficiency Cyprus Innovation-driven economies The most problematic factors for doing business Inefficient government bureaucracy..............23............. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.20 .........36 ....40 .......1 Inflation .....................0 7th pillar: Labor market efficiency ..........36 .........................................0............................3.......................03 Cyprus 50......................6............................4....1 Crime and theft ..........4................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..............................2.......................67 .....................16........................................6...........4................................5 Corruption..................8 Inadequately educated workforce.................29 ....................9 GDP (US$ billions).........................................................5 5th pillar: Higher education and training .4 10th pillar: Market size.............5 Factor driven Basic requirements..............000 10.......4..8...........4.....1 11th pillar: Business sophistication.6.....4.....0......2 Tax rates ...........................................620 GDP (PPP) as share (%) of world total ........................000 20...............................................1 3rd pillar: Macroeconomic environment ..............4.34 ................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011................2.............5 Transition 1–2 1 GCI 2009–2010 (out of 133)..............................2 Access to financing .....................4..................5 12th pillar: Innovation....000 Advanced economies 40....5......................4..........1.....15 ................................5..........................................42 ......30 ..............................11...................4..........5...................................1.........9 6th pillar: Goods market efficiency.........................................6 GCI 2008–2009 (out of 134)...1 Poor work ethic in national labor force ....1 Inadequate supply of infrastructure ......5........... The bars in the figure show the responses weighted according to their rankings.....6 GDP per capita (US$) .....38 ..1: Country/Economy Profiles Cyprus Key indicators....................................... 2009 GDP (PPP) per capita (int'l $)...29.....6 Poor public health .......3...................................4...................7..........................104 .........9 Policy instability.....3 1st pillar: Institutions ....9 Tax regulations ...................6 8th pillar: Financial market development......................8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..2............................................................40 ......... 1980–2009 Population (millions)........9 2nd pillar: Infrastructure.........6 4th pillar: Health and primary education .....38 .............4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...............................................5..............................................2.........................29 ...................12 .....33 .....5 138 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...........................000 30.........26 .............................4.........0 9th pillar: Technological readiness..............................................................5 Foreign currency regulations.....

.................60 Redundancy costs* ..........................................23 Value chain breadth ..........................................................01 11.............................44 12th pillar: Innovation 12....06 5........13 1............................01 5......................................07 5.......10 6..........10 Business impact of malaria .........................04 7..07 4.....41 Company spending on R&D............................04 6.27 Intellectual property protection ...........05 1......18 5th pillar: Higher education and training 5...............................17 Mobile telephone subscriptions* .........35 6....................................4 Prevalence of foreign ownership ...................31 Judicial independence .....................1 Malaria incidence*.......... For further details and explanation................01 8........04 4.04 9.26 Irregular payments and bribes.......................................17 1.......................14 1..............................46 Financing through local equity market ............100 11th pillar: Business sophistication 11...............................................................04 1..08 4.....37 Affordability of financial services..................................................18 1.............................................................21 HIV prevalence* ......................43 FDI and technology transfer...................................................03 3.........60 Hiring and firing practices.........31 Internet bandwidth* .........02 8...26 Extent and effect of taxation..............................................................................31 Business costs of terrorism ..36 Firm-level technology absorption .......18 Efficacy of corporate boards ................................35 Willingness to delegate authority.....07 Capacity for innovation ...........................34 Time required to start a business*..06 1.........................10 Production process sophistication..........32 Utility patents per million population*..........................................30 Tertiary education enrollment rate*.............................75 Internet users* .................01 2.15 Intensity of local competition .................05 7...............................16 1..........................25 Organized crime .01 9...........................02 12............06 6..07 2.......01 1.25 Trade tariffs*...................................................................32 Diversion of public funds...06 11.............03 8............................................................03 6......................................................03 12.............21 Flexibility of wage determination ...............16 Quality of management schools .....03 4..........04 8..............108 Protection of minority shareholders’ interests ........03 2.......04 12.................13 Quality of math and science education.......6 9th pillar: Technological readiness 9...............................................................14 6..1: Country/Economy Profiles Cyprus 7th pillar: Labor market efficiency 7.......................03 1......................33 Burden of customs procedures.....................100 Country credit rating*.....................................27 Agricultural policy costs............................104 10...........................................................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .......02 7...................................................................127 Inflation*........07 7.........................................................................................................40 Reliability of police services ..............................................05 12...........................................05 4...........06 Availability of latest technologies ......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..................61 Quality of electricity supply .1 Business impact of tuberculosis ...............n/a Quality of port infrastructure ................................................01 3............................................................50 Prevalence of trade barriers ............................06 8............21 Property rights..........................10 1.......................22 Interest rate spread* .....................09 6..........................................................66 Reliance on professional management ............11 6...................................07 6.....................................11 1.................................................25 Quality of primary education .......................................97 Rigidity of employment* ..............................23 Degree of customer orientation ..18 Venture capital availability........................................................................55 Quality of the educational system.........................................37 Local availability of research and training services...02 1...............................44 Control of international distribution ...............40 Wastefulness of government spending ............08 8........28 Efficiency of legal framework in challenging regulations ......04 5.............................02 5..................23 Efficiency of legal framework in settling disputes ..................................................................21 Strength of investor protection* ..06 Government budget balance* ..............................................15 Primary education enrollment rate* ..................20 1...........44 Nature of competitive advantage .....08 7.................................................................................................23 Soundness of banks ....................09 Availability of financial services ...............................43 Available airline seat kilometers* ....29 Availability of scientists and engineers ...96 Pay and productivity ..12 Total tax rate* ........06 2................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 139 .........................65 Ease of access to loans.......45 Gov’t procurement of advanced tech products .......................04 3....22 Favoritism in decisions of government officials ......34 State of cluster development.......07 8................53 Business costs of crime and violence......29 Burden of government regulation ........33 Notes: Ranks of notable competitive advantages are highlighted...........09 Quality of overall infrastructure ......................................04 2..32 Public trust of politicians ......................................................................49 Government debt* .................................................43 University-industry collaboration in R&D ....................................................................44 Broadband Internet subscriptions* .36 Female participation in labor force* .................................44 Extent of marketing........................05 2..................................................07 11.......................................................19 2..............................05 5.....................................................................07 1............................25 Number of procedures required to start a business* .............................01 12...02 6....12 6.....................................06 12...................35 4th pillar: Health and primary education 4....................................................05 9......................................................77 2nd pillar: Infrastructure 2.............................................................02 4.30 Internet access in schools................................................................31 Quality of roads ............05 3.....................09 4............................................63 10th pillar: Market size 10.......23 Tuberculosis incidence* .97 National savings rate* .................................................................................31 Effectiveness of anti-monopoly policy .............19 1...47 Infant mortality* ...03 7................................................02 2.......................................09 Cooperation in labor-employer relations..........................................09 1.........53 Local supplier quality ..............05 8........................06 4.....77 Brain drain .........01 6.........................15 1..................39 Strength of auditing and reporting standards........................01 Domestic market size index*.......01 4...13 6........................26 Buyer sophistication ..............................................................31 Regulation of securities exchanges .............34 Legal rights index* .....02 11.23 Restriction on capital flows ...................................................03 5...... An asterisk (*) indicates that data are from sources other than the World Economic Forum...............................02 Foreign market size index* ....................................................................02 3.....05 6.45 3rd pillar: Macroeconomic environment 3...............................08 6.....................................40 Ethical behavior of firms..............................09 Local supplier quantity..........................................04 11...............23 Quality of railroad infrastructure ..........78 Business impact of rules on FDI .....39 Quality of air transport infrastructure ....................................01 7...........................................................12 1..........................................08 1................................18 Extent of market dominance........................................03 11...............................................................................21 Transparency of government policymaking.......................03 9...........08 11........31 Fixed telephone lines* .........................58 8th pillar: Financial market development 8..............11 Business impact of HIV/AIDS..................................08 2..............05 11.....43 Extent of staff training.............02 9..................17 Life expectancy* ................43 Quality of scientific research institutions ....................06 7....................................................................

......................33 ........4.6 Transition 1–2 1 GCI 2009–2010 (out of 133)..000 40.....30 ..........0..............28 .......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011....4...............................6..44 ..4......................72 ......48 .................................4...........7 Tax rates ........7..............4 Inefficient government bureaucracy................................................4..2....4..........9 2nd pillar: Infrastructure....39 ........................000 30........................8 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......................4 Restrictive labor regulations ....43 ..................................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5..........1: Country/Economy Profiles Czech Republic Key indicators................10.....9 1st pillar: Institutions ..........................33 ...................5.......7 Policy instability....................27 .......................................................................2..................... 2009 GDP (PPP) per capita (int'l $)..4.............................42 ..........7........5 Inadequate supply of infrastructure ...............8 3rd pillar: Macroeconomic environment .............7 GCI 2008–2009 (out of 134)...........31 .............................36 ...............3...............................................7 Poor public health ................................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .........................557 GDP (PPP) as share (%) of world total ....9 Inflation ....................5 9th pillar: Technological readiness.....9 Foreign currency regulations.....9 4th pillar: Health and primary education .4.....000 20........................34 ..........................................................................................................................4.................4.....7 Crime and theft .....7 5th pillar: Higher education and training .............4.....6...........................................................3....5 10th pillar: Market size...........................2........0 Access to financing ..............5 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......2.............4.................................15............35 ................32 ........................2 Tax regulations ..........18...............................0................6 Factor driven Basic requirements.........194.................................. 1980–2009 Population (millions).....................................37 Czech Republic Advanced economies 50...............8 Poor work ethic in national labor force ...................9 Financial market development Goods market efficiency Labor market efficiency Czech Republic Innovation-driven economies The most problematic factors for doing business Corruption....48 ............11....4................15.....4......................................................8 GDP per capita (US$) ..............1 140 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..2 11th pillar: Business sophistication.......................................7................6 7th pillar: Labor market efficiency .................................0..................6 Inadequately educated workforce..........7 8th pillar: Financial market development..........1 6th pillar: Goods market efficiency.24 ...................8....................4 GDP (US$ billions).........................................4.......................5............................... The bars in the figure show the responses weighted according to their rankings............000 10..............5 12th pillar: Innovation...............................7 Government instability/coups ..............

...07 1.........21 Property rights....................09 Availability of financial services ....03 11.................................................................................18 Fixed telephone lines* ...................08 11..........46 Firm-level technology absorption ........................08 4..................09 4.................12 Extent of market dominance.........................................54 Quality of air transport infrastructure ...........47 Venture capital availability.................................................................................50 Flexibility of wage determination ...........03 4.96 Financing through local equity market ...................02 6...............................02 12........33 Brain drain ...........................................................................05 9........................................03 1..02 9.......08 1...........67 Judicial independence ..06 12.................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 141 ..................................................22 Reliance on professional management .......06 Availability of latest technologies .........27 Business impact of HIV/AIDS.................56 Agricultural policy costs..............09 Cooperation in labor-employer relations............................14 6.................03 8.........50 Utility patents per million population*.....................61 8th pillar: Financial market development 8............................25 Quality of management schools ...........................04 7...........03 3............................................34 10th pillar: Market size 10.....................02 7..........................................................................06 Government budget balance* ..69 Rigidity of employment* ...........................................................................................05 5.78 Inflation*..............59 Buyer sophistication ...............25 University-industry collaboration in R&D ...................07 Capacity for innovation ................24 Local availability of research and training services..............86 Ethical behavior of firms...................................................77 2nd pillar: Infrastructure 2..................102 Business costs of terrorism .................................05 11........118 Efficiency of legal framework in settling disputes .......................................11 6...60 9th pillar: Technological readiness 9..................................07 5...............................................03 2..............................................................47 Efficacy of corporate boards ..........04 6.....................................................47 Legal rights index* ..03 5..11 1........................................................64 Prevalence of trade barriers ....................08 6........................41 Willingness to delegate authority..................14 1......................................................25 Hiring and firing practices...................................................................1: Country/Economy Profiles Czech Republic 7th pillar: Labor market efficiency 7.52 HIV prevalence* ..................56 Internet access in schools.....................................................................................02 2........30 Broadband Internet subscriptions* .......42 Value chain breadth .............01 6.....................31 Extent and effect of taxation..........03 12.....66 Mobile telephone subscriptions* ..34 Quality of math and science education............................45 10.........................................................................4 Prevalence of foreign ownership ....................10 Business impact of malaria ......42 Tertiary education enrollment rate*.....04 4......................95 Burden of government regulation .........04 3...34 Notes: Ranks of notable competitive advantages are highlighted..01 8.....................02 8................................41 Tuberculosis incidence* .....................................40 Pay and productivity ..............................................................121 Irregular payments and bribes......102 National savings rate* ...........07 6.............01 12............05 7.... An asterisk (*) indicates that data are from sources other than the World Economic Forum...................................06 2.....37 Quality of roads ...29 Control of international distribution .....02 5.29 Gov’t procurement of advanced tech products ...............................................06 6......16 1..1 Business impact of tuberculosis ..................97 Efficiency of legal framework in challenging regulations ...........01 Domestic market size index*....19 3rd pillar: Macroeconomic environment 3................21 Company spending on R&D...........................18 1.............06 11..............60 Quality of electricity supply .........24 Quality of scientific research institutions ...........34 Extent of marketing.................19 1..................35 Organized crime ..........04 1...........................47 Affordability of financial services...........................97 5th pillar: Higher education and training 5...............................04 12................................................03 9.........04 8............................................08 2.........................................................................08 8......................................................................................12 6....05 12.........................................................43 Degree of customer orientation ......................................05 3.......20 1...........................................................................32 Quality of the educational system.......49 Reliability of police services ......................................................................................................05 1............................................12 Trade tariffs*....................................................................02 Foreign market size index* ........02 1............84 Transparency of government policymaking.................01 4............04 9.....02 3...22 Burden of customs procedures....................................... For further details and explanation................................................38 Quality of primary education ...........01 9...................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.24 12th pillar: Innovation 12.............................63 Restriction on capital flows ...............................................................................07 4..................26 Primary education enrollment rate* ........39 Ease of access to loans...01 1......04 2..........................................................................06 4......22 Local supplier quality ..1 Malaria incidence*.....04 5.02 4.........................................................03 6........................................102 Public trust of politicians ...........................91 Number of procedures required to start a business* ..........................117 Production process sophistication......25 Soundness of banks ..............................................36 FDI and technology transfer........37 Interest rate spread* ........09 1....04 11....................10 1..............................................................17 Available airline seat kilometers* .............................................24 Business costs of crime and violence......................................................................28 11th pillar: Business sophistication 11.06 5.......................05 6..........05 8....................................................................01 2.......................................................03 7.....61 Favoritism in decisions of government officials ...............................49 Total tax rate* ................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.............08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ............07 7......................................................................................02 11.........................................31 Availability of scientists and engineers .........13 1.............05 4.......01 11.......17 1...............................54 Government debt* ..........07 11..............119 Redundancy costs* ...................................107 Wastefulness of government spending .................................................................15 1.............31 4th pillar: Health and primary education 4.........06 8........................22 Quality of port infrastructure ...13 Life expectancy* ..............................................09 Local supplier quantity................42 Business impact of rules on FDI ................................................09 6.........................80 Quality of railroad infrastructure ...............................01 3.....................................12 1..............07 8.1 Infant mortality* .......15 Intensity of local competition ...........................90 Strength of auditing and reporting standards............................05 2.40 6.............65 Intellectual property protection ...................................................06 1..........................................................................01 7...............08 7..........17 State of cluster development................................17 Extent of staff training.....01 5.......07 2........36 2.....09 Quality of overall infrastructure ........................15 Effectiveness of anti-monopoly policy ..............................................52 Diversion of public funds.........89 Strength of investor protection* ..41 Nature of competitive advantage ..........10 6...........24 Regulation of securities exchanges .......................75 Country credit rating*........................73 Time required to start a business*.......................06 7...............................................................................33 Internet bandwidth* ....................................................15 Internet users* ...........................13 6................43 Protection of minority shareholders’ interests ....................61 Female participation in labor force* ..........................

........1 Inadequate supply of infrastructure ...........5 Tax regulations ...................9 Inefficient government bureaucracy............5.................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .......10 .............................................1 11th pillar: Business sophistication................................5.............................................7...... 1980–2009 Population (millions)......................5..6 4th pillar: Health and primary education ...............21.........0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.................................................56...............4 142 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.5..5 GCI 2008–2009 (out of 134)..........115 GDP (PPP) as share (%) of world total ......000 20........................6 Factor driven Basic requirements..................................................................4...................................................000 Advanced economies 40........4...........................4 12th pillar: Innovation.................0 Policy instability...2...........9 .............................12.......................24........3 .3.....5...........5......................13 .............2.0...............................1................9 9th pillar: Technological readiness.................16 ........7 3rd pillar: Macroeconomic environment ..................7 Access to financing ..............................6 Inadequately educated workforce..............5.........................................................6 Foreign currency regulations................18 ......................................7 .6........2 Government instability/coups ..8 2nd pillar: Infrastructure..................5 Corruption.......................20 .5.......9..5 ................................... The bars in the figure show the responses weighted according to their rankings...............................0....................................................5 GDP (US$ billions)..0................6 ..8 6th pillar: Goods market efficiency.....................1: Country/Economy Profiles Denmark Key indicators.......................29 Denmark 50.............5 Inflation ...........9 Financial market development Goods market efficiency Labor market efficiency Denmark Innovation-driven economies The most problematic factors for doing business Tax rates ....3 GDP per capita (US$) ........9 ......5............................52 ...9 1st pillar: Institutions .3 Transition 1–2 1 GCI 2009–2010 (out of 133).........................7........5 8th pillar: Financial market development................ respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5................000 30..000 10...4 Poor public health .13 .1 7th pillar: Labor market efficiency ............5 .....................................5.2..6 10th pillar: Market size..................4............................5.................................7 .....................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.............................................................................2 5th pillar: Higher education and training .9 ......5.........1... 2009 GDP (PPP) per capita (int'l $)......7 Poor work ethic in national labor force ....4..309....................................................................0..................5.................................................3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....7 Crime and theft .................................5............................................6 Restrictive labor regulations ............5 ......................................................5..................3 ................................

..............................02 9................05 8...........................13 State of cluster development...........................................................................12 Reliability of police services ....03 9................................11 Brain drain ....06 2..........................................................10 Business impact of malaria ......06 8.....................11 Transparency of government policymaking.05 9. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....................................09 Quality of overall infrastructure ......03 12........................04 2................21 Property rights...................................13 6........................................09 1.....55 Infant mortality* .04 12.............07 8..................................................................................12 6...............36 Soundness of banks ......1 Business impact of tuberculosis ........................04 6...........................................................................5 Wastefulness of government spending ...........1: Country/Economy Profiles Denmark 7th pillar: Labor market efficiency 7.......................13 Efficiency of legal framework in challenging regulations ..........................................26 HIV prevalence* ........................02 12.03 3.....10 Quality of air transport infrastructure ................05 7..............................14 6.........................07 1..........08 7............................13 FDI and technology transfer............02 5.........21 2..........3 12th pillar: Innovation 12...................................6 9th pillar: Technological readiness 9...03 1.........8 4th pillar: Health and primary education 4......06 4........01 8................................8 Gov’t procurement of advanced tech products ..................04 11...............06 1.............15 Organized crime .......7 Buyer sophistication .....................................................................................02 7................................02 2...........................90 Country credit rating*.........................................................................................22 Business impact of HIV/AIDS......11 1..............................................................................4 Prevalence of foreign ownership ..........05 1........................................19 1...........01 11.......................................23 Female participation in labor force* ........27 Number of procedures required to start a business* .............16 Production process sophistication.....8 Flexibility of wage determination ....................78 Burden of customs procedures............................................06 11......................................................................................................19 Efficacy of corporate boards ...01 6..........................................................01 3................07 11.....................................07 2........13 Agricultural policy costs...............................................07 7..............26 Efficiency of legal framework in settling disputes ...................................................................................02 Foreign market size index* ....................................03 11.........03 6....50 10..............................................................................................................05 11....................02 11....01 Domestic market size index*...............................02 4.................................................60 Ease of access to loans.......................20 1.........................20 Nature of competitive advantage ........................................3 Favoritism in decisions of government officials .........09 Cooperation in labor-employer relations..............................................03 5...................08 11........10 1........................................35 Financing through local equity market ................................................................09 Local supplier quantity.............................................05 2................................08 2..................21 3rd pillar: Macroeconomic environment 3...........05 3.......................10 Ethical behavior of firms..........05 12...................................................10 Quality of math and science education.....7 Quality of the educational system........................................23 Extent of market dominance.........................15 Notes: Ranks of notable competitive advantages are highlighted.....................................................................4 Public trust of politicians ........04 9...............................................................................................10 Local availability of research and training services...............................01 4..05 6......8 10th pillar: Market size 10.........................................14 Legal rights index* ...........85 Regulation of securities exchanges ..............03 4..........................................................11 6......08 4....10 Quality of roads ...........4 Tertiary education enrollment rate*...........12 Extent of marketing..27 2nd pillar: Infrastructure 2..........08 1.......04 3.......................07 4.............................02 1.......16 National savings rate* ....................................................11 Intellectual property protection ..........................01 12....03 2...7 6.................5 Judicial independence .............................................11 Willingness to delegate authority...........................................38 Local supplier quality ...........1 Malaria incidence*.......29 Restriction on capital flows ..................04 1.........................04 4.............................................................44 Business impact of rules on FDI .............6 Value chain breadth ..... For further details and explanation........45 Prevalence of trade barriers ............36 Government debt* ..........02 8....................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1............................02 3..04 8..............6 Extent and effect of taxation..03 8...................19 8th pillar: Financial market development 8.......................3 Fixed telephone lines* .........................10 Irregular payments and bribes..............9 Availability of scientists and engineers ............41 Interest rate spread* ....36 Business costs of crime and violence................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...........09 Availability of financial services ............19 Utility patents per million population*...........9 Quality of scientific research institutions .............130 Total tax rate* .......31 Mobile telephone subscriptions* .........................................54 5th pillar: Higher education and training 5.....08 8.................................................60 Inflation*.........................................15 Intensity of local competition ..........................................01 2......................................................17 1.................12 Quality of port infrastructure ..................6 Available airline seat kilometers* ..................16 1................................31 Trade tariffs*...........13 Protection of minority shareholders’ interests ...............9 Degree of customer orientation ..................04 7..........01 9....................10 Hiring and firing practices..12 Company spending on R&D....................................................................................07 Capacity for innovation .....................18 Primary education enrollment rate* .....................................05 5.....................09 4........................07 5..............................................................................14 Internet access in schools.9 Quality of railroad infrastructure ...14 1...............09 6.................................................................................................................01 5..02 6....28 Venture capital availability........................................................................8 Control of international distribution .....06 5........................5 Strength of auditing and reporting standards.........................................15 1..........1 Pay and productivity .04 5..........................................27 Reliance on professional management .............................7 University-industry collaboration in R&D .....05 4..18 1.................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum...........9 Strength of investor protection* ..................107 Rigidity of employment* .....2 Internet bandwidth* ..........6 Broadband Internet subscriptions* .......................................................14 Time required to start a business*...................12 Effectiveness of anti-monopoly policy ..............07 6...................................................9 Business costs of terrorism ..03 7........................................................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 143 ......06 7...28 Affordability of financial services..............................................................................44 11th pillar: Business sophistication 11...........................................................01 7................................................................................................06 Government budget balance* ..........08 6................................4 Tuberculosis incidence* .....20 Life expectancy* ...13 1...............43 Internet users* ..................................30 Quality of primary education .........12 1....................06 12...............16 Burden of government regulation ...................13 Firm-level technology absorption ...............................3 Redundancy costs* ....10 6............19 Quality of management schools ....................01 1......................................06 Availability of latest technologies ......................................12 Diversion of public funds................8 Extent of staff training...............42 Quality of electricity supply ......................06 6...

................7.....................10......................................11 Dominican Republic 12.........0 Poor public health ..............................................3..............................................2.............66 ............3.107 .....................................6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .............2 8th pillar: Financial market development...............3....8 GCI 2008–2009 (out of 134).............3.......92 ........................3.......................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ....0 Foreign currency regulations.....................................4......3..............7 Inadequately educated workforce................................3 Inefficient government bureaucracy.................1 Inflation .............2..................................5.............4...000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011...2 2nd pillar: Infrastructure..........3...............7 Factor driven Efficiency driven Basic requirements...........................3........9 144 Transition 2–3 2 3 Innovation driven Institutions 7 Innovation Infrastructure 6 5 Business sophistication Efficiency enhancers...3.......8 Access to financing .....................3..........................8 5th pillar: Higher education and training ......8 7th pillar: Labor market efficiency ........7 GDP per capita (US$) .......................................4 4th pillar: Health and primary education ........95 .........101 ..................................................0.........5.............................................................7 12th pillar: Innovation..........10.....2.....7 Tax rates ................................................5 Inadequate supply of infrastructure .................3............4..................................3.....000 Western Hemisphere 9..............................2 Poor work ethic in national labor force ..................1.....8 3rd pillar: Macroeconomic environment .................000 3...........................99 ....................3 Tax regulations ....................98 .....................3 Policy instability........................................................3.89 ............................................5....88 ........................8 1st pillar: Institutions ....117 . The bars in the figure show the responses weighted according to their rankings.......7 Transition 1–2 1 GCI 2009–2010 (out of 133)..99 .12.........................000 6.... 1980–2009 Population (millions)................3.......0.............................3...........................107 ....................................... 2009 GDP (PPP) per capita (int'l $)........................8.19..................................2 11th pillar: Business sophistication...........6 6th pillar: Goods market efficiency.... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5......118 ..........4 Crime and theft .............4........6 10th pillar: Market size.109 ........................5 Government instability/coups .................3...................3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....4.....99 ...............8 9th pillar: Technological readiness....................9 Restrictive labor regulations ..1: Country/Economy Profiles Dominican Republic Key indicators................6 Financial market development Goods market efficiency Labor market efficiency Dominican Republic Efficiency-driven economies The most problematic factors for doing business Corruption.....46............................................................................107 .............................................1 GDP (US$ billions).......................................10..........71 ........176 GDP (PPP) as share (%) of world total .................................82 ..

........10 1..................04 8.............02 9........................................44 Interest rate spread* ........01 Domestic market size index*....................................................................................................122 Company spending on R&D...................106 Infant mortality* .........................04 12......01 8................................1: Country/Economy Profiles Dominican Republic 7th pillar: Labor market efficiency 7..................09 4........113 Government debt* .....................................02 4...................139 Wastefulness of government spending .......07 6...01 2.................134 Public trust of politicians ........................123 Inflation*..................................77 Availability of scientists and engineers ....04 9................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .....................................78 Extent of staff training...........................113 Value chain breadth .....................................................80 Venture capital availability....................09 Availability of financial services ................18 1................................................136 Quality of management schools ...04 2................109 Strength of investor protection* ......................73 Time required to start a business*.......61 Business costs of terrorism ........06 6.........................05 2....................................06 4..................112 Restriction on capital flows .........93 Gov’t procurement of advanced tech products .....132 Fixed telephone lines* .......68 Agricultural policy costs......................................73 Female participation in labor force* ....86 Intellectual property protection ....................67 10...........................................15 1.14 6.....131 Effectiveness of anti-monopoly policy .02 8........125 Organized crime ...............................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..........03 3.01 11.............................................................................................02 2..83 Quality of port infrastructure ...................................................................08 2.....03 7............04 7........................................81 Tuberculosis incidence* ............................................................................02 11..99 Reliance on professional management ..................134 Ethical behavior of firms...............................09 1..................85 State of cluster development.14 1.....56 Firm-level technology absorption .......115 Total tax rate* .............01 1..........................................87 Redundancy costs* ........................................117 Ease of access to loans......02 Foreign market size index* ..........................08 6.....93 Internet access in schools.......................120 5th pillar: Higher education and training 5..04 1..........................09 Local supplier quantity.................................02 12...............................02 7.......06 Availability of latest technologies ...........................93 Business impact of tuberculosis ..............................................39 Business impact of rules on FDI .......................................................................................................65 Quality of air transport infrastructure ..99 2..............................06 8.....................05 8..........10 Business impact of malaria .........................121 Reliability of police services .....................09 6.........................120 Extent and effect of taxation...............78 Efficiency of legal framework in settling disputes ..08 11.....99 Favoritism in decisions of government officials ............86 Extent of market dominance.......104 Diversion of public funds.40 Degree of customer orientation ......05 1...........................................................45 2nd pillar: Infrastructure 2.......05 3........................81 Business impact of HIV/AIDS........................87 4th pillar: Health and primary education 4.........05 7.........03 9...................78 Efficiency of legal framework in challenging regulations ...........................................07 2..............03 2..06 5..51 Quality of electricity supply .............................80 3rd pillar: Macroeconomic environment 3...............................01 3...........94 6.............110 Pay and productivity .....12 6.................07 1........91 Malaria incidence*......................05 6...................................51 Rigidity of employment* ..............57 FDI and technology transfer...............01 5....52 Regulation of securities exchanges ...........16 1......01 12..........121 Trade tariffs*........13 1....01 7..48 Soundness of banks .......................96 Judicial independence .......................11 6............................................112 Brain drain .....54 National savings rate* ............90 12th pillar: Innovation 12........................................88 Control of international distribution .......................................................04 11...........................................67 10th pillar: Market size 10.05 12.......................................................03 4.........................09 Quality of overall infrastructure .........08 7.............117 Utility patents per million population*.03 5..................................02 6..............................................................95 Life expectancy* ................................02 3........78 Quality of railroad infrastructure ..07 5.........07 11..102 Prevalence of trade barriers ............................................93 Efficacy of corporate boards ....03 12............12 1.......................02 1......20 1....87 Buyer sophistication ........04 4................................................................................................73 Internet bandwidth* ....50 Internet users* .......................................................21 Property rights...................06 2........................................08 4.........................................................................................................................................................15 Intensity of local competition ............07 4................03 6...........124 University-industry collaboration in R&D ..........06 Government budget balance* .................................08 8......................................................................................................................................04 5.........73 Financing through local equity market .......................................................................................................87 Extent of marketing..............................07 7.05 11................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...06 1........................94 Tertiary education enrollment rate*........................01 6.......10 6..............80 Prevalence of foreign ownership ...........................................................................07 Capacity for innovation ....111 Quality of roads ........01 4..........80 11th pillar: Business sophistication 11.......19 1..........59 Burden of customs procedures..133 Quality of math and science education....................92 Local availability of research and training services........51 Available airline seat kilometers* ..........09 Cooperation in labor-employer relations.........................71 Quality of the educational system..................06 7....08 1........06 12..................................................................................03 8.........06 11.....41 Flexibility of wage determination .......................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 145 ....................................................................................................04 6.....................................02 5...... An asterisk (*) indicates that data are from sources other than the World Economic Forum....67 Notes: Ranks of notable competitive advantages are highlighted...............120 Transparency of government policymaking...................................................84 Broadband Internet subscriptions* ....................................................05 5.............17 1....96 Mobile telephone subscriptions* .......................................................................66 Willingness to delegate authority...............................01 9............138 Burden of government regulation .....137 Primary education enrollment rate* ......07 8.03 1.........................103 HIV prevalence* ..................................................03 11....05 9......................................63 Nature of competitive advantage ................................................65 8th pillar: Financial market development 8...........48 Country credit rating*....................77 Protection of minority shareholders’ interests ..04 3.....68 Affordability of financial services.................126 Irregular payments and bribes...........................64 Local supplier quality ...........................49 Production process sophistication.........109 Strength of auditing and reporting standards..............................05 4. For further details and explanation..........................................................79 Legal rights index* ...................................103 9th pillar: Technological readiness 9..................................................50 Hiring and firing practices.....63 Number of procedures required to start a business* ......74 Quality of primary education ..................................11 1.....................................................................................................................................................................................................................................121 Quality of scientific research institutions ......................13 6..........................................................88 Business costs of crime and violence.............................................................................................................

.......55 ..000 3....4..................................................... The bars in the figure show the responses weighted according to their rankings..3....................1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.6 GDP (US$ billions)...4 9th pillar: Technological readiness.................. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.....................3.....10....3..........................104 .........6 Tax regulations .............................................................130 ....................9 Crime and theft .......................5.........107 ....................92 ...................2........................75 ....1 Foreign currency regulations.......3................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ........124 ........................................................................................................7 Restrictive labor regulations ......000 Western Hemisphere 9...............8 Corruption..0.............105 ....1 1st pillar: Institutions ..........3...1.3.......3 GDP per capita (US$) .............................13.................................................................4..............................115 ..7 Access to financing ......................3................4 5th pillar: Higher education and training ............2 3rd pillar: Macroeconomic environment .15...........17....8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .5 Inefficient government bureaucracy............................................................3.............2 Government instability/coups ...............................................................4 Tax rates ...............6 GCI 2008–2009 (out of 134).........................115 ........2..4 Financial market development Goods market efficiency Labor market efficiency Ecuador Efficiency-driven economies The most problematic factors for doing business Policy instability.....................1: Country/Economy Profiles Ecuador Key indicators....137 .....4 7th pillar: Labor market efficiency ..3 12th pillar: Innovation...................9 11th pillar: Business sophistication.2........105 .........................................57.....0..3....000 6................. 1980–2009 Population (millions)..2 8th pillar: Financial market development.............059 GDP (PPP) as share (%) of world total .3..............16 Ecuador 12......................................8 4th pillar: Health and primary education ..10....................................4..............................3...............................132 ....................61 .6..............................96 .......................................................................4 Inflation .........6 Factor driven Basic requirements......6 146 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.........5 Inadequate supply of infrastructure ............3......0 2nd pillar: Infrastructure..............3.......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011...................................13....................3.................7 Transition 1–2 1 GCI 2009–2010 (out of 133).....................................3........................1.............6...............................9 Inadequately educated workforce...107 ...6 Poor work ethic in national labor force ....................4 Poor public health .0..................... 2009 GDP (PPP) per capita (int'l $)....................................0 10th pillar: Market size.......................128 ...............................................................................5.........................2..6 6th pillar: Goods market efficiency.........92 ....................................

............................................98 Business costs of crime and violence...04 4....07 1..............................................................................................08 7............... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................................103 Judicial independence ..97 Production process sophistication................100 8th pillar: Financial market development 8...................01 4.64 National savings rate* ...............................................................119 Business impact of rules on FDI ..........05 12..138 Burden of customs procedures..........................01 Domestic market size index*......108 Efficacy of corporate boards ........131 Internet users* .............12 6........06 8..............................................01 3...................04 12..............................03 9.........................................................................10 6...........132 Utility patents per million population*........06 Availability of latest technologies .........07 7.108 Venture capital availability........................................114 Financing through local equity market ...........03 1..................................05 3..................01 12...................02 11.........................................01 11...............................18 1..124 Total tax rate* .06 5........79 Business impact of HIV/AIDS..111 Degree of customer orientation ........01 7.............09 1..79 Tuberculosis incidence* ..................................114 12th pillar: Innovation 12....................................103 9th pillar: Technological readiness 9...... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 147 ...113 Reliability of police services ..............10 1.................................05 1.........123 Intellectual property protection ............................117 Primary education enrollment rate* ..92 Quality of air transport infrastructure ...11 6.......................................49 Number of procedures required to start a business* .......127 Brain drain ...................................124 Irregular payments and bribes..........83 Mobile telephone subscriptions* ...........02 2........05 2....129 4th pillar: Health and primary education 4..............................................................................................................................................72 Quality of electricity supply ..................................................97 Efficiency of legal framework in settling disputes ..........03 11...........49 Quality of primary education .................................................16 1........07 8.........................43 5th pillar: Higher education and training 5....15 1...59 3rd pillar: Macroeconomic environment 3................................................................................................................05 7.....................................136 Redundancy costs* ...................................................02 12.........04 1..........73 Notes: Ranks of notable competitive advantages are highlighted........................117 Restriction on capital flows .........................................08 1..............09 Cooperation in labor-employer relations....109 Local availability of research and training services.........................07 2..................................86 Control of international distribution .....................................................................120 University-industry collaboration in R&D .........07 4......................94 Broadband Internet subscriptions* ...14 6..........02 5...........17 1.......................................................................139 Trade tariffs*..........08 6...........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.....130 Public trust of politicians ...............................................75 HIV prevalence* ..........................................................................103 Extent of staff training.113 Strength of investor protection* ..........12 1.......04 11........................71 Legal rights index* ..............122 Quality of math and science education..112 Business costs of terrorism ....133 Burden of government regulation .........................135 Efficiency of legal framework in challenging regulations ........................85 Internet bandwidth* ................05 9..................................................43 Inflation*........................................98 Quality of roads ...........73 Available airline seat kilometers* ......................................................................................110 Affordability of financial services......126 Agricultural policy costs...................13 1..........02 3......03 8............................117 Local supplier quality .................92 2.............02 4......129 Buyer sophistication ...122 Flexibility of wage determination .........................113 Quality of port infrastructure .....................................................................................................99 Business impact of tuberculosis ................................................................01 5............................09 Quality of overall infrastructure ...........09 Availability of financial services .....................83 Quality of railroad infrastructure ...................01 2.83 Regulation of securities exchanges ....................................102 Fixed telephone lines* ..08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ........................................117 Quality of management schools ....03 5............................................14 1..........................................................................................................................97 Willingness to delegate authority...........................................121 Time required to start a business*........................01 8.....132 Effectiveness of anti-monopoly policy .........................113 Strength of auditing and reporting standards.................................................................07 5....................................107 6...06 6...................1: Country/Economy Profiles Ecuador 7th pillar: Labor market efficiency 7...........03 12.........................106 FDI and technology transfer....................................................................................109 2nd pillar: Infrastructure 2.....05 6.........03 2..........................19 1... For further details and explanation.....06 7................................08 2.....101 Extent of marketing...05 4..........................................................................................................................04 5..............05 5................04 8...........15 Intensity of local competition .................110 Nature of competitive advantage .........................04 3.................02 8.06 12....................................07 6.............95 Interest rate spread* ..04 2................122 Gov’t procurement of advanced tech products ..........06 11.........................135 Favoritism in decisions of government officials ..........115 Prevalence of trade barriers ....114 Quality of scientific research institutions ....72 11th pillar: Business sophistication 11........................................09 6....................................02 Foreign market size index* ............06 4.........................02 7..132 Transparency of government policymaking..........................................03 3...........21 Country credit rating*..........133 Soundness of banks ...........................116 Extent of market dominance...............................21 Property rights...........05 11.............01 9.....................................................................................................................60 10.86 Prevalence of foreign ownership ............07 Capacity for innovation ................................118 Availability of scientists and engineers ........114 Rigidity of employment* ....................135 Reliance on professional management ........................................................03 4.......................................05 8.......................................112 Female participation in labor force* ................95 Malaria incidence*.....13 6.....117 Organized crime ................................................04 7. An asterisk (*) indicates that data are from sources other than the World Economic Forum...........103 Protection of minority shareholders’ interests .97 Ease of access to loans........................02 6.................................93 Tertiary education enrollment rate*.....................................................130 Pay and productivity .....................................20 1.90 Hiring and firing practices............................01 6...............................................09 4..............06 2.11 1.....................................................................................10 Business impact of malaria .......126 Value chain breadth ............04 9..........................03 7..............................................................................................................06 Government budget balance* ......06 1....104 State of cluster development.................................04 6......07 11......................128 Diversion of public funds.......................................09 Local supplier quantity....133 Extent and effect of taxation.........106 Firm-level technology absorption ................................................................02 1..08 8..........................103 Internet access in schools.............132 Company spending on R&D.......71 Infant mortality* .................................................44 Government debt* .........84 10th pillar: Market size 10......120 Ethical behavior of firms.....................................01 1..............................................03 6......................................56 Quality of the educational system............................08 4..........................................08 11...............................112 Wastefulness of government spending ...............83 Life expectancy* ....02 9..........

................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .................4................................4...........................................3....... 2009 GDP (PPP) per capita (int'l $)...........3............................3.....................................................................9.................................188......6........9 Poor work ethic in national labor force ..5 Inadequate supply of infrastructure ..........4..0 Factor driven Basic requirements......0 Inflation .................5 11th pillar: Business sophistication.3............................8 Crime and theft ........................1: Country/Economy Profiles Egypt Key indicators......................70 .........................87 ....2 Access to financing ................0 Transition 1–2 1 GCI 2009–2010 (out of 133)..2....................................................0.........8 5th pillar: Higher education and training .3.......................3 10th pillar: Market size.....68 .............4 8th pillar: Financial market development..................0 12th pillar: Innovation............3......6 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....................................0.............19..............4....0 2nd pillar: Infrastructure..............0 GDP per capita (US$) ...........64 ...................26 ..3....9 Government instability/coups .........................0............................81 ...................000 3...................1 Tax regulations ................4 148 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.........14...450 GDP (PPP) as share (%) of world total .....82 ..2.1 Restrictive labor regulations ........................................................................................................................000 6...........8 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .............68 Egypt 12....8 Inadequately educated workforce...............000 Middle East and North Africa 9.............5................................................2 Foreign currency regulations..................................97 ......................0 GCI 2008–2009 (out of 134)........................0 GDP (US$ billions)..................................................83.............................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.....83 ..5 Policy instability..................................................89 ....8.......... The bars in the figure show the responses weighted according to their rankings.......9 7th pillar: Labor market efficiency .............................................................4.4.4.................................2 Inefficient government bureaucracy.................3........6 6th pillar: Goods market efficiency......90 .................3......133 ....................81 .....................63 ...............10................................4.............4...................................0 3rd pillar: Macroeconomic environment .....2 1st pillar: Institutions ..................................................................3.129 .....5..0 9th pillar: Technological readiness..82 ......... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.........4 4th pillar: Health and primary education .........................................4...............................6 Tax rates ...........5...........................57 ....................4..............................................3........5 Poor public health .......91 ..........0 Financial market development Goods market efficiency Labor market efficiency Egypt Economies in transition from 1 to 2 The most problematic factors for doing business Corruption....... 1980–2009 Population (millions)...

......84 Soundness of banks ..............73 5th pillar: Higher education and training 5......67 Diversion of public funds...........14 1............07 8....05 7.....60 Affordability of financial services...................................................01 12........................58 Efficacy of corporate boards ..........05 9...69 Quality of air transport infrastructure .........69 Government debt* .............90 Tertiary education enrollment rate*................80 Life expectancy* .....................29 HIV prevalence* .............................................49 Venture capital availability..........79 Efficiency of legal framework in settling disputes ...............06 2....02 1...................................................02 8.......63 Favoritism in decisions of government officials ..........................01 6..... An asterisk (*) indicates that data are from sources other than the World Economic Forum..........................11 1..........58 FDI and technology transfer............................95 Effectiveness of anti-monopoly policy ..46 Quality of port infrastructure .........................................................................15 Intensity of local competition .................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 149 ................18 1....................................................................04 12...........................................................04 8.....1 Infant mortality* .......01 4..........................07 11.....................36 Local supplier quality .............01 2...02 9...................51 Burden of government regulation ....................................................75 Quality of railroad infrastructure ....89 State of cluster development..................34 Time required to start a business*..........................07 7....02 4...................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ................04 1............................................................................61 Regulation of securities exchanges ........................................04 9..................................95 Wastefulness of government spending .......10 6.....................50 Degree of customer orientation ..01 1............................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..99 Flexibility of wage determination ..................04 11........130 8th pillar: Financial market development 8.........................................................................08 8......................................................01 7........59 Strength of auditing and reporting standards...68 Business costs of terrorism ......................................67 Hiring and firing practices.....32 Tuberculosis incidence* ....06 Availability of latest technologies .......................07 6...06 1..............................................87 Mobile telephone subscriptions* ..125 Quality of management schools .....................106 Extent and effect of taxation........10 Business impact of malaria ........... For further details and explanation..........67 Legal rights index* ........103 9th pillar: Technological readiness 9........................14 Reliability of police services ........................04 4...............................78 Number of procedures required to start a business* ...114 Trade tariffs*.16 1........................44 Business impact of HIV/AIDS...........14 6.......................04 6..................60 Rigidity of employment* ...01 9..........................90 Broadband Internet subscriptions* ....03 11...........05 8...............................82 Protection of minority shareholders’ interests ...............................................05 4............................131 Quality of math and science education..67 Control of international distribution ...................75 Burden of customs procedures...........................................01 3........72 10th pillar: Market size 10.....................................................40 Efficiency of legal framework in challenging regulations ....................................03 9...................................................19 1...............................................08 4..05 3..........................................110 Company spending on R&D......03 5...122 Internet access in schools.................57 12th pillar: Innovation 12......................................128 Pay and productivity .................................................................................02 Foreign market size index* ....................................................................11 6..............96 Local availability of research and training services.......................21 Agricultural policy costs.............63 Buyer sophistication ....................................107 National savings rate* .....................................................109 Quality of scientific research institutions ..........06 12..................................................02 6.........................01 Domestic market size index*..................126 2...............06 6...........112 6.................05 1.........................100 Business impact of rules on FDI ....................................................76 Redundancy costs* ..................06 Government budget balance* ..........09 6..................................................75 Total tax rate* ......................15 1.......05 5..........04 2.17 1...03 4..................................04 3...............21 Property rights...................09 4....................06 8.........................................................1 Malaria incidence*.....................................................27 10...............01 11...69 4th pillar: Health and primary education 4...07 2.....................08 6...................................................................64 Extent of staff training.59 2nd pillar: Infrastructure 2.................................05 11..02 3...............09 Quality of overall infrastructure .........97 Organized crime ..................................09 Local supplier quantity.84 Prevalence of trade barriers ...........................................................................................................................................114 Female participation in labor force* .03 12..39 Available airline seat kilometers* ..........135 Interest rate spread* ...............................83 Public trust of politicians .........09 Availability of financial services ............................46 Extent of marketing.....69 Financing through local equity market ............76 Reliance on professional management ............................1 Business impact of tuberculosis .......................126 Primary education enrollment rate* ...03 7.................................................................84 Notes: Ranks of notable competitive advantages are highlighted..........................08 7.....................64 Judicial independence ..........53 Internet users* ............79 Willingness to delegate authority.........35 Value chain breadth .........07 4.05 2...........................................................20 1..........................02 2...................05 6.....................................06 5.........................................102 3rd pillar: Macroeconomic environment 3...........................................91 Internet bandwidth* ....................................................................13 6...................................................................................................................94 Quality of primary education .91 Firm-level technology absorption ..............86 Brain drain ...............................................................................91 Extent of market dominance........................................07 5.....53 Fixed telephone lines* ...10 1..........25 Utility patents per million population*......................................46 Strength of investor protection* ............................................................81 Ethical behavior of firms...............................08 2.......08 11.............12 6...................................56 Intellectual property protection .............................................................40 Irregular payments and bribes..................................................02 7..........................01 5......01 8....................06 7............................02 11.........33 Quality of electricity supply .......................................1: Country/Economy Profiles Egypt 7th pillar: Labor market efficiency 7.............................03 6.......................................................119 Country credit rating*........08 1..............66 Nature of competitive advantage .......................................74 University-industry collaboration in R&D .........03 2..04 5...27 11th pillar: Business sophistication 11....................108 Inflation*...........................29 Ease of access to loans...132 Business costs of crime and violence................04 7.....................02 5...........68 Quality of roads ......02 12............................................................03 1........13 1..............................................................................................69 Transparency of government policymaking............................................................................................................94 Production process sophistication...86 Availability of scientists and engineers .................41 Restriction on capital flows ..............07 1...............................03 3..................................................................................................................09 1.....................................123 Prevalence of foreign ownership .............................03 8........................78 Quality of the educational system..........................................................12 1..........06 4...........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.................120 Gov’t procurement of advanced tech products ....09 Cooperation in labor-employer relations.........06 11..............................07 Capacity for innovation ................05 12........

..............3.......................13....................................................2 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....4.....................3................................................1 3rd pillar: Macroeconomic environment .........................................2 GDP (US$ billions).....................................81 ...................................................................................................3......1 GDP per capita (US$) .....9........3................0.....53 ...........4 2nd pillar: Infrastructure......5 Inadequately educated workforce.......4 10th pillar: Market size...3................................101 ....................1.................4.................78 ....................64 .................4 Inadequate supply of infrastructure .................4..8 5th pillar: Higher education and training .......................................................5 150 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers........................68 ..........................4....7 4th pillar: Health and primary education ...............4 Poor public health ......................87 .................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.......81 ..................................3.................................... 1980–2009 Population (millions)......................................4. The bars in the figure show the responses weighted according to their rankings........1: Country/Economy Profiles El Salvador Key indicators............4 Corruption........2...........................9 Tax rates .............. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .....1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.3 7th pillar: Labor market efficiency ............ 2009 GDP (PPP) per capita (int'l $)..................................0 GCI 2008–2009 (out of 134)...........0...........88 ..126 ................. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5....82 ....3..............................7 Policy instability.....4 Inefficient government bureaucracy.........................3..........9.......................................................................9 12th pillar: Innovation.................2 11th pillar: Business sophistication..............................1............79 ..0..06 El Salvador 12.........5 6th pillar: Goods market efficiency..5 Financial market development Goods market efficiency Labor market efficiency El Salvador Efficiency-driven economies The most problematic factors for doing business Crime and theft .......4....................77 ...............59 ................3 Tax regulations ..................0 Government instability/coups ..0 9th pillar: Technological readiness................0 Restrictive labor regulations ..3...............................................21.25..............4 1st pillar: Institutions ............................................2 8th pillar: Financial market development..........................71 ..........000 3...4.........000 Western Hemisphere 9..6............0 Transition 1–2 1 GCI 2009–2010 (out of 133)....96 ....4......0 Poor work ethic in national labor force ..0 Factor driven Basic requirements.................................8 Inflation .....................3......2...........................................................4................623 GDP (PPP) as share (%) of world total .........3 Access to financing .................17......3..........................................87 .....................................................000 6....................................3.............................4...9 Foreign currency regulations.....3..................101 .....5.......

.......06 7..13 6............01 4...................................86 Quality of electricity supply ......71 Quality of air transport infrastructure ..............................114 Gov’t procurement of advanced tech products .............73 Time required to start a business*...31 3rd pillar: Macroeconomic environment 3......04 11..113 Business costs of crime and violence...........................................................63 6..........................21 Property rights..............................................101 Transparency of government policymaking....56 Prevalence of trade barriers .....................................97 Infant mortality* .............................07 Capacity for innovation ..............................96 Extent and effect of taxation.....02 7.....106 Tertiary education enrollment rate*..........99 2nd pillar: Infrastructure 2..........................75 Country credit rating*....38 Business impact of rules on FDI ..........81 10.....................................................70 Mobile telephone subscriptions* ...............69 Burden of government regulation ....54 12th pillar: Innovation 12..........05 9...........................................85 Quality of the educational system............................03 12......04 8........68 Willingness to delegate authority...............................................................55 Efficiency of legal framework in settling disputes .................................................................................................38 Soundness of banks ...................07 1............................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....................09 1...122 University-industry collaboration in R&D .............................................................08 6..................................01 1.....01 Domestic market size index*.08 1..........58 Tuberculosis incidence* ...................81 Reliance on professional management .............32 Buyer sophistication ......................................13 1.....91 Restriction on capital flows ...........................................................06 1.......................06 4..........................................................................................91 10th pillar: Market size 10...........................01 11........93 Venture capital availability..................100 Favoritism in decisions of government officials ..........01 6......................61 Control of international distribution ..................02 Foreign market size index* ......14 6.................................75 9th pillar: Technological readiness 9.................................10 6.........................02 11..................................91 Extent of marketing.................................................15 Intensity of local competition ................113 Availability of scientists and engineers ...........08 11.................................03 9......19 1................................................06 6............................05 7.............02 2.........44 Quality of roads .............................73 Internet users* .................................................05 4.81 Internet bandwidth* ....07 7..............................04 7.......................07 8............................32 Regulation of securities exchanges ....................................................................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum........................74 Public trust of politicians ....54 Value chain breadth ............01 9.............10 1.........04 3..58 Business impact of HIV/AIDS........................................25 Protection of minority shareholders’ interests .....98 Irregular payments and bribes........................02 4..................09 Availability of financial services .....................03 2........110 Quality of port infrastructure ..............................49 State of cluster development......................................62 Strength of auditing and reporting standards.73 2............................105 Legal rights index* ........................................................................................................................................................01 8.........07 2.......08 8................................................................................................................................................20 1................................................80 Malaria incidence*.................................18 1.....06 2......................12 6...........09 6.....01 7..............02 5.....................................................01 12...............................................................06 Government budget balance* .15 1..........133 Company spending on R&D............................118 Inflation*.....02 9..........105 Local availability of research and training services.............................................................................................04 9.............66 Burden of customs procedures......107 Pay and productivity ...........07 4.....01 3.................................03 3.......07 11...................................................................05 6.........................................106 Strength of investor protection* .......85 Production process sophistication.05 2...................................................06 8.06 11...............................27 Interest rate spread* ..35 Total tax rate* .........................79 Internet access in schools.....................94 Brain drain ................04 6............77 4th pillar: Health and primary education 4.....70 Local supplier quality ..............99 Effectiveness of anti-monopoly policy ...02 8..........104 Ease of access to loans.......................89 Quality of primary education .......................................01 5................73 HIV prevalence* ...04 5...............74 Judicial independence .......................................46 Prevalence of foreign ownership .............12 1.....................03 6....63 Agricultural policy costs.....04 2...............................03 4...........50 Number of procedures required to start a business* ..121 Quality of math and science education.......................................05 11..........................82 FDI and technology transfer........................................................04 4...........................08 4..45 Government debt* .........06 Availability of latest technologies .....................................................29 Quality of railroad infrastructure ..03 5.04 1..87 Female participation in labor force* .....................13 Redundancy costs* ...........................................................................................02 1.....................29 Flexibility of wage determination ..............................................................................08 7......108 Wastefulness of government spending .................04 12..73 Business impact of tuberculosis .........................83 Extent of staff training...............................................74 Business costs of terrorism .08 2............................................99 11th pillar: Business sophistication 11.................................09 Local supplier quantity..................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...........................67 Firm-level technology absorption ............05 1.....06 12............. For further details and explanation.....02 12...........03 1.................................125 Utility patents per million population*..................07 5...........................................82 Intellectual property protection ...............41 Extent of market dominance.....................................10 Business impact of malaria ..................................................................05 8........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........................03 7......................................................03 11..........60 Hiring and firing practices...09 Cooperation in labor-employer relations.1: Country/Economy Profiles El Salvador 7th pillar: Labor market efficiency 7........11 1................06 5.........................03 8..............68 Degree of customer orientation .....80 Nature of competitive advantage ..106 8th pillar: Financial market development 8..........................................70 5th pillar: Higher education and training 5.....27 Rigidity of employment* ..........07 6...............................................55 Affordability of financial services........99 Ethical behavior of firms.....05 12..................................................................................................02 6...................................................................09 4......................14 1.60 Fixed telephone lines* ................51 Trade tariffs*...............11 6.....................................63 Efficacy of corporate boards ..61 National savings rate* ........ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 151 ........33 Available airline seat kilometers* ..70 Financing through local equity market ...............................................114 Primary education enrollment rate* ...............................................................................................................................................................117 Quality of scientific research institutions ..............01 2.......................................................124 Quality of management schools ...........................................................................05 5............90 Notes: Ranks of notable competitive advantages are highlighted......138 Organized crime ...............................96 Diversion of public funds............................................05 3...........................16 1............................09 Quality of overall infrastructure .........................17 1................95 Broadband Internet subscriptions* .........................................................02 3..................139 Reliability of police services .71 Life expectancy* ............101 Efficiency of legal framework in challenging regulations ..........

.11...............19 ...9 10th pillar: Market size..............04 Estonia 30...34 ...................................2.............................3 Poor work ethic in national labor force ..................9 8th pillar: Financial market development....000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.............2 Tax rates ...............19...4.........................................................................................17 ..........3 GDP (US$ billions).............9 2nd pillar: Infrastructure.............3 Foreign currency regulations..........4.6..1 GDP per capita (US$) .......................0 Policy instability.............................................4.........4.......1: Country/Economy Profiles Estonia Key indicators........ 1980–2009 Population (millions).................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5...........5 5th pillar: Higher education and training ..............5..............5. The bars in the figure show the responses weighted according to their rankings...................................................4..............9 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............5.......................8 Inadequate supply of infrastructure .......7 Financial market development Goods market efficiency Labor market efficiency Estonia Economies in transition from 2 to 3 The most problematic factors for doing business Access to financing .................................................................................1................29 ...........................45 ..4.....8 Crime and theft ......6.................101 ................................2....0....4.......................3 Tax regulations ............6 Transition 1–2 1 GCI 2009–2010 (out of 133)...............33 ...........3...................000 Central and Eastern Europe 20...........................................................................22 ...................................24 ........14..........1 12th pillar: Innovation....................8 Poor public health ........18........ 2009 GDP (PPP) per capita (int'l $)..................3....6..6...................9.0............56 ...12...2 6th pillar: Goods market efficiency..........................9 11th pillar: Business sophistication............................45 ..................267 GDP (PPP) as share (%) of world total ...........3............................2...............................................................................2.............31 ...1.......4.................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..9 Inadequately educated workforce..............6 GCI 2008–2009 (out of 134)......7 7th pillar: Labor market efficiency .....................10......................4 4th pillar: Health and primary education ............4.....5 Government instability/coups ....5 9th pillar: Technological readiness..............................................7 Factor driven Basic requirements...............5 Inefficient government bureaucracy..........29 ..............3 152 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers........2..................4 1st pillar: Institutions ....4.............................................................4..........................................................................37 .......8 Restrictive labor regulations .25 ......................8 Inflation ...............................32 ..................0 Corruption..........................................9 3rd pillar: Macroeconomic environment ....9 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......................................................4.........000 10............................................32 .........35 .............

...........................................................................09 4...12 1................04 2.............03 1..................07 11..........................................................03 4...................................49 Burden of government regulation ......58 Utility patents per million population*..........................................18 Interest rate spread* .07 7........................02 1..................06 2........................................................................13 1........................................................................33 Strength of auditing and reporting standards......................................14 Trade tariffs*.....43 Availability of scientists and engineers .05 5................................................................11 Soundness of banks ......................84 11th pillar: Business sophistication 11..21 Agricultural policy costs.......09 Local supplier quantity.1: Country/Economy Profiles Estonia 7th pillar: Labor market efficiency 7..........................................................................................................................................04 11..............19 Reliability of police services .................48 Business impact of rules on FDI ..........................................................................08 11....31 Extent of market dominance......42 Prevalence of trade barriers ............................46 University-industry collaboration in R&D .............62 Quality of primary education .......................12 6..................................5 Country credit rating*.....04 7................10 Business impact of malaria .....03 5.01 3................05 2.....................123 Hiring and firing practices....................26 Efficacy of corporate boards ......................01 2....03 6......................17 Quality of air transport infrastructure ........06 12..................94 Local supplier quality ..16 Primary education enrollment rate* ............1 Malaria incidence*...........34 Diversion of public funds...2 3rd pillar: Macroeconomic environment 3..20 1.........19 Internet bandwidth* .........03 7.............02 5....01 Domestic market size index*..........................................05 7...................42 FDI and technology transfer................................08 4....................................................78 2.....61 Willingness to delegate authority...................................17 1................................23 Time required to start a business*..............................................41 Efficiency of legal framework in challenging regulations .....................................29 Brain drain .................................................................................56 4th pillar: Health and primary education 4........................................03 9...........................................04 9...............43 Affordability of financial services..................................09 Cooperation in labor-employer relations..................37 Public trust of politicians .........................................................2 Local availability of research and training services.............................................................66 Protection of minority shareholders’ interests .............................................................................................................25 Life expectancy* .....................53 Value chain breadth .............................................02 6.......30 Organized crime ...........................................................01 4.................40 Buyer sophistication ..................23 Burden of customs procedures......................07 1...48 Quality of railroad infrastructure ......................47 Inflation*.................01 9......74 Available airline seat kilometers* .....07 6.....41 Internet access in schools....14 1... An asterisk (*) indicates that data are from sources other than the World Economic Forum...02 2.....................02 11...........................09 1.....................................................28 Quality of roads ........................................11 6...06 7......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 153 .........................04 12...........................12 Degree of customer orientation ..................40 Internet users* .........................................................1 Business impact of tuberculosis ..................110 Infant mortality* ..06 11...........................68 Pay and productivity ..............36 Wastefulness of government spending .............16 1...............................................03 2........................05 11.........05 9.... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..........01 8..............06 1..............................08 2.....46 Extent and effect of taxation..............................................................................02 12....54 Strength of investor protection* ........................06 6.............06 5..................08 1..14 6............................45 2nd pillar: Infrastructure 2........................31 Firm-level technology absorption ........................08 6..................06 4..........14 Business costs of terrorism ..................................................04 8........................................36 Gov’t procurement of advanced tech products ..............07 Capacity for innovation .........30 Judicial independence ...........42 Quality of math and science education...........................................36 Quality of port infrastructure ...40 Notes: Ranks of notable competitive advantages are highlighted..........................................................07 4.......07 2...............08 7..............................04 5.........4 Prevalence of foreign ownership ........................02 9..........08 8............29 National savings rate* .......40 Transparency of government policymaking...................................................03 3.........04 4...........18 1..........38 Effectiveness of anti-monopoly policy ......................................................125 Quality of electricity supply ..............................................06 Government budget balance* .............................05 3................................12 Business costs of crime and violence........................................36 State of cluster development..........................26 Tertiary education enrollment rate*.01 1....................................................................................15 1.....8 Reliance on professional management .................107 10........ For further details and explanation..........................48 6..............................................05 8..........07 5..............................52 Tuberculosis incidence* ..................03 8...05 4...........................06 8.............60 9th pillar: Technological readiness 9.............19 1.................07 8............25 Broadband Internet subscriptions* ........08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .............24 Favoritism in decisions of government officials .............33 Extent of staff training.................21 Quality of management schools ........................92 Nature of competitive advantage .06 Availability of latest technologies .....50 Venture capital availability......................................................................39 Fixed telephone lines* ........................................41 Extent of marketing........................................01 7.....................57 Female participation in labor force* .............26 Company spending on R&D.........10 1.............................................................15 Intensity of local competition ...........44 Legal rights index* ...........................................................72 Regulation of securities exchanges ..................32 Mobile telephone subscriptions* .....................................................60 Business impact of HIV/AIDS............17 8th pillar: Financial market development 8.04 3....09 6...........56 Redundancy costs* .......57 HIV prevalence* ......................09 Quality of overall infrastructure ..............................79 Production process sophistication.01 5...........13 6...........................37 Flexibility of wage determination .......5 Rigidity of employment* ...................................04 6..........................68 Ease of access to loans..............................................05 12...............................25 12th pillar: Innovation 12....53 Irregular payments and bribes...............01 12...............................02 4.....................01 6.....................02 7.........................................58 Control of international distribution .....................34 Quality of scientific research institutions ....01 11.....................................33 Ethical behavior of firms....66 5th pillar: Higher education and training 5..........................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1....21 Property rights................................................................7 Efficiency of legal framework in settling disputes ................................................02 Foreign market size index* ............27 10th pillar: Market size 10.......................................................................................05 1.......04 1.....03 11...................................02 3.....11 1......................................09 Availability of financial services ...............................................18 Total tax rate* ..............................51 Government debt* ..05 6.........................................................30 Restriction on capital flows ...................................02 8..........03 12...............................33 Intellectual property protection ...................................................................................98 Number of procedures required to start a business* ....................49 Financing through local equity market ....................................................................................10 6...25 Quality of the educational system...........................

......................8 Inadequate supply of infrastructure ..7 Tax regulations ............................................5 Government instability/coups .................0 Tax rates .....................................7 3rd pillar: Macroeconomic environment ....121 ...............6............................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.3 GDP per capita (US$) ..............82.........................................5 Policy instability........4............................8 Inflation ...127 .............72 ........................................4 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......................6 Inefficient government bureaucracy..........................................................................0.......8...................16......2.............................105 ..0 2nd pillar: Infrastructure.....000 Sub-Saharan Africa 2....118 ..........2.......3......3 9th pillar: Technological readiness........................79 ........9 Crime and theft ........4 Factor driven Basic requirements....................................... The bars in the figure show the responses weighted according to their rankings.......000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..5........................0 Inadequately educated workforce.....2 Poor public health .........................0.....................117 ..3........4.....2.........................................3..............3.................................................................4 8th pillar: Financial market development...............................................................................................................3.........5 4th pillar: Health and primary education .............8 GDP (US$ billions)............................19.............6.......................................000 1..........................6 1st pillar: Institutions ................................. 2009 GDP (PPP) per capita (int'l $)...................32.....59 ...3...............0...3..3..............................5 10th pillar: Market size........11...................8 Financial market development Goods market efficiency Labor market efficiency Ethiopia Factor-driven economies The most problematic factors for doing business Foreign currency regulations............4 154 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers......5.......3...........................133 ..........................8 Poor work ethic in national labor force ....................................118 ............................4 5th pillar: Higher education and training .........0....................................4 GCI 2008–2009 (out of 134)..........4......119 ........92 ..................................119 ......5 Restrictive labor regulations ........................390 GDP (PPP) as share (%) of world total .....1: Country/Economy Profiles Ethiopia Key indicators............0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..7 6th pillar: Goods market efficiency..................2 12th pillar: Innovation..........2................................8 Corruption...119 ...................11 Ethiopia 3...............................................4.................................................................... 1980–2009 Population (millions)..............9 7th pillar: Labor market efficiency ....9............................121 ..................................3..0 11th pillar: Business sophistication123........115 ................5 Transition 1–2 1 GCI 2009–2010 (out of 133)..3.......3.....2..129 .....0 Access to financing .1.........................

..05 5...................................03 4....04 11............................... An asterisk (*) indicates that data are from sources other than the World Economic Forum..........................................01 6..................04 8............................16 1..........................................106 Internet access in schools.............................139 Interest rate spread* .32 Number of procedures required to start a business* ........................................05 11..............................................06 6....04 2.......103 Extent and effect of taxation............................................122 6..........65 Country credit rating*..........................03 8.07 2.......09 Quality of overall infrastructure ...............................82 Effectiveness of anti-monopoly policy ................................06 11.........................127 Local availability of research and training services...........100 Degree of customer orientation ............................................04 4...............79 Burden of customs procedures..........02 Foreign market size index* ..............................................84 Redundancy costs* ...18 1.........04 6...108 Trade tariffs*.....09 1........................06 7...........................03 3...119 Financing through local equity market ..............30 Agricultural policy costs........87 Quality of roads ...........10 Business impact of malaria ...................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 155 ..................................................129 Soundness of banks ...............................07 5......04 12....................................139 3rd pillar: Macroeconomic environment 3..........07 7.......................................................67 Efficiency of legal framework in challenging regulations ..............................................11 1.............................125 Tuberculosis incidence* ...........................129 Extent of marketing................................................................................123 University-industry collaboration in R&D ..................................02 9...................08 2..60 National savings rate* .........08 7...28 Strength of investor protection* .............90 Notes: Ranks of notable competitive advantages are highlighted...........11 6.............127 Business impact of HIV/AIDS.04 1...............................................02 11................60 Quality of railroad infrastructure .100 Business costs of crime and violence.......................................................................................05 4...................................................05 6...................04 5...114 Nature of competitive advantage .....08 8.......03 12...........................................................125 Business impact of rules on FDI ........59 Government debt* ..........................................................15 Intensity of local competition .....100 Ease of access to loans.......10 1.....................123 State of cluster development...................................................................80 Protection of minority shareholders’ interests ..05 1........07 1..................................02 1........123 5th pillar: Higher education and training 5...02 8............................06 5...02 3............................................111 Extent of market dominance..............13 6............................107 11th pillar: Business sophistication 11....................03 5.......91 Primary education enrollment rate* ................................................................................................94 Quality of management schools .......................................................17 1.........105 Flexibility of wage determination .....01 Domestic market size index*.......09 6...121 Quality of primary education ......02 7..........54 Availability of scientists and engineers .................................01 3........19 1.......119 Fixed telephone lines* ..........................................................................................65 Strength of auditing and reporting standards............12 1...........48 Available airline seat kilometers* ....115 Control of international distribution .....54 Public trust of politicians ..................................................................02 5....77 Pay and productivity ......................107 Internet users* ...........................................68 10..................................................14 1........07 11..........................................1: Country/Economy Profiles Ethiopia 7th pillar: Labor market efficiency 7...98 12th pillar: Innovation 12................100 Buyer sophistication ..............06 Government budget balance* ......................................................96 Female participation in labor force* ......................12 6...................10 6...........07 8......................................................05 3.................................124 Tertiary education enrollment rate*....03 6...............02 12.......03 2.............................................................71 Hiring and firing practices.......04 7........06 12...........................................15 1...........01 4............................................... For further details and explanation.........04 3............................................................................................................129 Firm-level technology absorption .09 4..........124 HIV prevalence* ......................................118 Local supplier quality .................................09 Local supplier quantity...............08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ....132 Value chain breadth .....................70 Transparency of government policymaking.....06 2......................31 Burden of government regulation ..13 1............100 Business costs of terrorism .....................136 Internet bandwidth* ..14 6......................................................132 4th pillar: Health and primary education 4.62 Total tax rate* ................................................................48 Rigidity of employment* ...............................88 Judicial independence ......102 Company spending on R&D................117 Malaria incidence*.....................................124 FDI and technology transfer..05 12.........................06 8...60 Quality of math and science education......................20 1.................................114 Restriction on capital flows .........................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1...124 Affordability of financial services...........................................59 Ethical behavior of firms.....08 1............................................03 7....09 Cooperation in labor-employer relations........03 11....................................03 1......01 12...............01 2.01 9.......................................120 Infant mortality* ..........01 8..........07 4..................................................132 Willingness to delegate authority...........................05 7..135 10th pillar: Market size 10.............................................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........................................02 4.................................................................102 2..27 Efficiency of legal framework in settling disputes ........................................68 Quality of electricity supply .....106 Quality of scientific research institutions .............................................................................................09 Availability of financial services .......110 Brain drain ................01 5...................................71 Diversion of public funds.......90 Reliance on professional management ........05 2..............56 Irregular payments and bribes..................................................................05 9..........................................................................91 Regulation of securities exchanges ..................................08 4........86 9th pillar: Technological readiness 9...01 11...............................103 Quality of port infrastructure ......................89 Favoritism in decisions of government officials ...................21 Property rights.......118 Prevalence of foreign ownership ............08 11........................51 Wastefulness of government spending .............................................51 Reliability of police services .............................................................................................07 6.................................................118 Business impact of tuberculosis ................06 1..60 Intellectual property protection ...........121 Life expectancy* ........99 2nd pillar: Infrastructure 2.........129 Quality of the educational system.01 1.......90 Efficacy of corporate boards ..............02 2...................................120 Venture capital availability......23 Time required to start a business*.............................................................................94 Inflation*............................07 Capacity for innovation .........122 Extent of staff training..........................................................26 8th pillar: Financial market development 8...............02 6....101 Gov’t procurement of advanced tech products ..01 7..............04 9....................................................................129 Utility patents per million population*......................................06 Availability of latest technologies ................39 Prevalence of trade barriers ........77 Production process sophistication.............................................08 6.......54 Organized crime ..................................................................60 Quality of air transport infrastructure ..........136 Broadband Internet subscriptions* .............................06 4..............................................................................125 Mobile telephone subscriptions* .......03 9..............123 Legal rights index* ..................................................05 8..................................................

.6 Restrictive labor regulations ...........................0.................................6 ............................................................492 GDP (PPP) as share (%) of world total .................17 ..............................1 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....21..0.10 .....6.................................................9 7th pillar: Labor market efficiency ........0......................................8 8th pillar: Financial market development..........................................8 Inadequately educated workforce..............................................6 Financial market development Goods market efficiency Labor market efficiency Finland Innovation-driven economies The most problematic factors for doing business Tax rates .............5 Factor driven Basic requirements..................................................................22 .................4 9th pillar: Technological readiness.6 3rd pillar: Macroeconomic environment ..............5....4 11th pillar: Business sophistication.....3 Policy instability.............................................0..............................1.......4....................15 ..............1..6 4th pillar: Health and primary education .............6 ............4 Transition 1–2 1 GCI 2009–2010 (out of 133)......4......................................... 2009 GDP (PPP) per capita (int'l $)......9 Inadequate supply of infrastructure .......................000 30...........5.5..................................2 .....................15..............................3 .............1 6th pillar: Goods market efficiency..........................5..................0 1st pillar: Institutions ..........5 ..................13.............5.0 2nd pillar: Infrastructure................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...9..............................4 GCI 2008–2009 (out of 134)........4 ...............................6 .....7 .....................238..2........................6 Access to financing ......................1 Inflation ...............................26 Finland 50..........9 Tax regulations ............6....1 ..........................3......0 Crime and theft ..............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.............................56 ...................9 Corruption.........2............3 12th pillar: Innovation.............0............4 Inefficient government bureaucracy........................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .........................................8 156 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers......................14 ..6.............4................................................................5..............000 20.......000 Advanced economies 40..........................................................3...................5.......5.............. 1980–2009 Population (millions).................4 Poor work ethic in national labor force ....5........................................9 Poor public health ...........0.....5......................24...........15 ..4 Foreign currency regulations........................1 5th pillar: Higher education and training ..5......................................................................2 10th pillar: Market size.....................1 GDP per capita (US$) ........ respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5....3 GDP (US$ billions)...................8 Government instability/coups ....5......................000 10.24 ....1: Country/Economy Profiles Finland Key indicators......44......................6.... The bars in the figure show the responses weighted according to their rankings..................4 .......

...............3 Quality of management schools ...........................48 Pay and productivity .........................13 6..............................................................................................................05 5..................................05 4................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 157 ............2 Diversion of public funds.............................................................17 2.5 Public trust of politicians .......7 Life expectancy* ...................................................................................03 5..................4 Fixed telephone lines* ......82 Inflation*...................04 8....................................................49 Quality of electricity supply .......04 9...........................................2 Strength of investor protection* ........................4 Prevalence of foreign ownership .........................7 Extent of staff training........6 Notes: Ranks of notable competitive advantages are highlighted.....02 7...........................09 4................................................18 Internet access in schools.........................................................................03 6.....01 3.................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............................................13 Quality of railroad infrastructure ...............01 11....................06 2..................................................06 8.......................................20 Female participation in labor force* ................52 Agricultural policy costs.......11 6.............03 3...........41 Burden of customs procedures.......................................................................................................7 Quality of port infrastructure ......................114 Total tax rate* ..........01 Domestic market size index*.................06 7..04 12..........................................09 1............06 5..............8 Trade tariffs*.......................................................................14 6...................06 4..........48 Ease of access to loans......03 9..21 Property rights....39 9th pillar: Technological readiness 9......02 1......................4 Firm-level technology absorption ...........02 Foreign market size index* ..08 7........................................05 9...........08 11......................18 National savings rate* ....................................................................20 1...........................04 3.............10 Business impact of malaria .......................02 2.........................................1 Business impact of tuberculosis .............................................12 6............................................................. For further details and explanation..................................................03 1...........08 6......27 Effectiveness of anti-monopoly policy .....................................................4 Brain drain ...............9 Tertiary education enrollment rate*.......23 Business impact of HIV/AIDS..................................12 FDI and technology transfer................................14 Burden of government regulation ...15 Available airline seat kilometers* ...............132 Rigidity of employment* ....9 Nature of competitive advantage .........06 6.................23 Business impact of rules on FDI ......................................................5 University-industry collaboration in R&D ...............................................01 5...............01 12....4 Judicial independence ...........................................................05 12........................................................05 7.......02 12..........................................................................................17 10th pillar: Market size 10........................................07 2................2 Soundness of banks ..............................14 1......................................................................15 Intensity of local competition ......5 Reliability of police services ...............................13 3rd pillar: Macroeconomic environment 3..........07 Capacity for innovation ......73 Redundancy costs* .............. An asterisk (*) indicates that data are from sources other than the World Economic Forum................................................................................................01 1.........1 Malaria incidence*....04 4..............................4 Value chain breadth ...08 2.....05 2..............................................................................22 Infant mortality* ........10 Organized crime .......................................1 Tuberculosis incidence* .....104 Hiring and firing practices.........................13 Company spending on R&D.....01 2.................................11 Regulation of securities exchanges ........01 9...The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1............................................07 1.....................................48 5th pillar: Higher education and training 5................1 Ethical behavior of firms...02 5.............................................18 1......11 1......................................................6 HIV prevalence* .......6 Government debt* ...................01 7....09 Quality of overall infrastructure ...............8 Quality of roads ....53 10...............................................6 Quality of math and science education......9 Wastefulness of government spending .........................................................................1 Primary education enrollment rate* ......07 11............08 8........................6 Availability of scientists and engineers ............................................................7 Efficiency of legal framework in challenging regulations ....................................................................................25 Buyer sophistication ..........................................6 Financing through local equity market ...............................06 12.....04 1.............................................9 Protection of minority shareholders’ interests ..54 11th pillar: Business sophistication 11.....15 Flexibility of wage determination ...........................07 5.........7 4th pillar: Health and primary education 4..................03 7..........................13 Irregular payments and bribes..........................................................14 Internet bandwidth* .........3 Gov’t procurement of advanced tech products ....06 11...16 1.......6 Favoritism in decisions of government officials .................04 6........................................13 1..................................80 Local supplier quality ......................08 4........................................................................24 Quality of primary education ..............................................................03 4....................49 Mobile telephone subscriptions* ...........3 Strength of auditing and reporting standards..................................02 9...........................................................................04 2..5 Venture capital availability....................................05 8.03 11...............08 1..................05 3.....10 6.......07 7.......................................................10 Efficiency of legal framework in settling disputes ..................................................................................11 Local availability of research and training services.....09 Cooperation in labor-employer relations..................................................5 Efficacy of corporate boards ..........12 Affordability of financial services..............45 2nd pillar: Infrastructure 2.2 Quality of the educational system..................................................5 Extent of marketing.15 1............................................69 Reliance on professional management ......03 8............6 Time required to start a business*.....................................................07 4..........02 6...........07 6..........25 Production process sophistication.........93 Country credit rating*....................01 6.....03 12.....................93 Number of procedures required to start a business* ..........19 State of cluster development.........02 8..52 Extent of market dominance...02 4................01 8....................................09 Local supplier quantity............06 Government budget balance* ...05 11...6 Quality of air transport infrastructure ....................................6 Degree of customer orientation ............................................................................................05 6...............4 Extent and effect of taxation.......................................................................................03 2........17 1.....8 Business costs of crime and violence........02 11........07 8.............................1: Country/Economy Profiles Finland 7th pillar: Labor market efficiency 7..29 Willingness to delegate authority...........................19 1................6 12th pillar: Innovation 12................4 Restriction on capital flows ..............10 1.........................................09 6...............8 Business costs of terrorism ..................................09 Availability of financial services .........9 6...........08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...................02 3.9 Control of international distribution ......................9 8th pillar: Financial market development 8........................................2 Intellectual property protection .....................................................................05 1.......7 Legal rights index* ..01 4....12 1................4 Transparency of government policymaking...45 Interest rate spread* ................................99 Prevalence of trade barriers .......04 11..93 Internet users* .....................1 Utility patents per million population*................................................................................5 Quality of scientific research institutions ............................04 5...........................06 Availability of latest technologies ....................8 Broadband Internet subscriptions* .............................................................04 7............06 1..............................

...........................................12 .......000 Advanced economies 40............................7 7th pillar: Labor market efficiency ............................................................................................. The bars in the figure show the responses weighted according to their rankings.......2..............8 11th pillar: Business sophistication................1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...............44 .........................3 GDP (US$ billions)............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.......................0 Corruption..................8.......................000 20...7 1st pillar: Institutions ......................1..........................1 5th pillar: Higher education and training .....5 8th pillar: Financial market development..60 .......3 Government instability/coups .....19.8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .................................16 ......747 GDP (PPP) as share (%) of world total ...............................0...8 Crime and theft ..16 ......19..................15 .......................62.5.........................42.................................................6 Inflation ..............................................0 Inefficient government bureaucracy............5.....................5.......0 2nd pillar: Infrastructure.......16 ......26 .....................................1 GCI 2008–2009 (out of 134)......................................................4 ..................17..................15 ..................................................................7 Poor work ethic in national labor force ................4 158 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..........................0 4th pillar: Health and primary education .........................5....5..03 France 50.1 Transition 1–2 1 GCI 2009–2010 (out of 133)......2 Access to financing .........17 ...................................675...4........................................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.......................................16 .........0 9th pillar: Technological readiness........................2....5 Poor public health ..... 2009 GDP (PPP) per capita (int'l $)....6.4............................0...................3...............000 30..................................2 Factor driven Basic requirements..............0...16 .......5.............6.........32 .....7 Foreign currency regulations....................19 .......................................4.......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...1 Policy instability.............5 Financial market development Goods market efficiency Labor market efficiency France Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations ....................................................................................................3...............................................9 GDP per capita (US$) ....2 12th pillar: Innovation..................1.......5....3 10th pillar: Market size...............4..............0 Inadequate supply of infrastructure .........................1..9 Inadequately educated workforce..............................................................5..........2............................................................000 10...5...........1..........23...............5.......1 Tax rates ...0........7 ....................5..1: Country/Economy Profiles France Key indicators.4 6th pillar: Goods market efficiency..5.......16 ... 1980–2009 Population (millions)...12 ....2 3rd pillar: Macroeconomic environment ................1 Tax regulations ...................

....................03 11...................07 1.........................................01 6......21 Property rights.............04 1................35 Buyer sophistication ..06 Government budget balance* ............05 9................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 159 .9 4th pillar: Health and primary education 4..............10 State of cluster development....4 Quality of roads ........................74 Business costs of crime and violence...............................................01 4...................................01 12....................................................59 2nd pillar: Infrastructure 2..........................................16 Financing through local equity market ...........................................67 3rd pillar: Macroeconomic environment 3..........................................................07 6.....................51 HIV prevalence* ........03 8....................07 Capacity for innovation ............125 Number of procedures required to start a business* ...............................46 Soundness of banks ...17 1.............................04 2..108 Total tax rate* .......01 9...........................12 1...09 Quality of overall infrastructure ..................................27 Efficacy of corporate boards ............08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ............................................65 Pay and productivity .......41 Female participation in labor force* ............................................................................................................10 Fixed telephone lines* .16 Affordability of financial services...................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum.................5 Extent of staff training.......07 4........08 2.......29 Quality of math and science education.........................27 Ethical behavior of firms........12 Utility patents per million population*......................................................05 6..................................................16 Firm-level technology absorption ............17 Business impact of HIV/AIDS......09 Cooperation in labor-employer relations................07 7..............................18 1...........21 Agricultural policy costs...02 Foreign market size index* ...34 8th pillar: Financial market development 8........04 6....05 12.........10 10th pillar: Market size 10.......13 Extent of marketing...........87 National savings rate* ..........................................22 Effectiveness of anti-monopoly policy .............4 Quality of port infrastructure ..........08 4..........05 5.........02 1......02 6.........39 Favoritism in decisions of government officials .10 Business impact of malaria ....................27 Trade tariffs*......04 7.......................................125 Redundancy costs* .................................03 6...............................................................04 12........48 Availability of scientists and engineers ........14 6................................04 11...116 Country credit rating*..........1: Country/Economy Profiles France 7th pillar: Labor market efficiency 7.........01 7.....................................11 1.................................03 1..........................................................................07 2.............................30 Nature of competitive advantage ......................................13 1...........47 12th pillar: Innovation 12........5 Internet access in schools..........77 Infant mortality* .....................................................................35 Venture capital availability.......................................................................4 Prevalence of foreign ownership ...............................................................................12 Quality of air transport infrastructure ..........................9 Internet bandwidth* ....01 1........4 Government debt* .............................................40 Regulation of securities exchanges ..................46 Reliability of police services ......................12 6........7 10.......31 Irregular payments and bribes........07 11..09 6...................06 7................03 9........................10 1.................................................................................06 8...........04 8.....................................51 Internet users* ................05 3..............................................................................08 11..1 Business impact of tuberculosis ..................19 1.....................................87 Inflation*.................01 11...........02 9................................................................................14 Life expectancy* ............42 Organized crime ..........02 11......17 Local supplier quality ...6 Quality of primary education .....01 5......................................................................26 Broadband Internet subscriptions* .........................................................10 Extent and effect of taxation..........................02 7................................................................05 7........55 Reliance on professional management ............................................17 Extent of market dominance..06 11.....06 4...................................................................................43 Strength of investor protection* ............23 Efficiency of legal framework in challenging regulations .........08 7...........................15 Intensity of local competition .............7 Quality of electricity supply ..................................................................5 Control of international distribution .....29 Tuberculosis incidence* .........04 5.................................2 Quality of railroad infrastructure ......06 6.....9 Available airline seat kilometers* ......07 5..............................05 2.................20 1........17 Transparency of government policymaking.........06 5.......................30 Brain drain .................03 7...............41 Local availability of research and training services........................04 3...........................23 FDI and technology transfer........8 Mobile telephone subscriptions* ....48 Burden of government regulation ........................................05 11....................1 Malaria incidence*....31 Protection of minority shareholders’ interests ........08 8.....................................13 University-industry collaboration in R&D ...............28 Business costs of terrorism ..........02 2................................................................................................39 9th pillar: Technological readiness 9.16 Intellectual property protection ..................01 2.........................7 Tertiary education enrollment rate*............................................................26 2.........06 1.......124 Hiring and firing practices.....05 1.....14 1..................................05 4...................17 Strength of auditing and reporting standards...............122 Efficiency of legal framework in settling disputes ....10 11th pillar: Business sophistication 11..............................................10 6....................................6 Ease of access to loans..........................02 12...............44 Gov’t procurement of advanced tech products ..............................................................02 4.................................03 2..............................................03 5............................11 6........................................129 Flexibility of wage determination ..03 3.....................................09 Local supplier quantity.24 Primary education enrollment rate* .......................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........................................................................................06 2..............................................39 Quality of the educational system.......................................................................................................................26 Degree of customer orientation .............................................07 8...........09 1.............8 Quality of scientific research institutions ...............30 6.....................................................................................03 12.......32 Wastefulness of government spending ......62 Burden of customs procedures...........................01 3..............................25 Public trust of politicians ......................................................................53 Rigidity of employment* .......24 5th pillar: Higher education and training 5........................................................................................04 4.........................................................11 Quality of management schools ................21 Notes: Ranks of notable competitive advantages are highlighted............01 8..........................................13 6.01 Domestic market size index*.........................06 Availability of latest technologies ........09 4........................09 Availability of financial services .................................6 Diversion of public funds............ For further details and explanation..........................................13 Production process sophistication.....................................04 9.........46 Prevalence of trade barriers .............16 1..........02 8........03 4........16 Business impact of rules on FDI ..............05 8...............................................21 Interest rate spread* ..............................................32 Restriction on capital flows ..............................08 1....17 Legal rights index* ............................................08 6.....................................................................................15 1....23 Time required to start a business*.............15 Value chain breadth ......................8 Willingness to delegate authority...19 Company spending on R&D........29 Judicial independence .............................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............06 12..........................02 5.....................02 3.....................................

....3.........64 .......105 ................................................................5 Foreign currency regulations..........................................5 6th pillar: Goods market efficiency........000 0 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011......62 ...........1 Financial market development Goods market efficiency Labor market efficiency The Gambia Factor-driven economies The most problematic factors for doing business Access to financing ..................................................................3......... The Key indicators......66 ...................3...8 2nd pillar: Infrastructure.3..9 Factor driven Basic requirements....................5.......................00 The Gambia Sub-Saharan Africa 3....440 GDP (PPP) as share (%) of world total ............000 1..................................................................................3.......7 GDP (US$ billions).................9 Poor public health ................................................1..........9 Inadequately educated workforce................76 .................................................2 10th pillar: Market size.....................4...............1............87 ..4.................124 .3 Inadequate supply of infrastructure .....16.............4.2 160 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers..............................3.........9 12th pillar: Innovation......0 Policy instability......97 ........................1......................................7.................................138 ...............2 Inefficient government bureaucracy.........0.........90 ....................................5 11th pillar: Business sophistication...1 Tax regulations ..................................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5..........90 ..2 1st pillar: Institutions ..........................0 GCI 2008–2009 (out of 134)......8 Restrictive labor regulations ............................3 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......3..............9 8th pillar: Financial market development..........3..................................8 4th pillar: Health and primary education ..........................117 ....................16 .............0...........................................................0.........................3..69 . 1980–2009 Population (millions)....7 Crime and theft ........9 Poor work ethic in national labor force ......2 Inflation .................................7 GDP per capita (US$) ...............4......4..........................................................................................3.................2......................5 5th pillar: Higher education and training .................4.....2...............................4....000 2...........................................7.25.........0..........0 9th pillar: Technological readiness...81 ..9 Government instability/coups ..........9 Transition 1–2 1 GCI 2009–2010 (out of 133)............ 2009 GDP (PPP) per capita (int'l $)............ The bars in the figure show the responses weighted according to their rankings.................2 Corruption..........65 ..............0 Tax rates ........... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..............................................1..........................................................4.........1: Country/Economy Profiles Gambia........................................................2 7th pillar: Labor market efficiency ..103 ...........7.....7............................................................8....8 3rd pillar: Macroeconomic environment ..3....................37 ......4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...............

...........35 12th pillar: Innovation 12.....90 Notes: Ranks of notable competitive advantages are highlighted........75 Regulation of securities exchanges ........35 Diversion of public funds...................................................................................................1: Country/Economy Profiles Gambia.........................................18 1..........07 6....55 Value chain breadth ...................................76 National savings rate* .............................................72 Extent of staff training............................................06 Availability of latest technologies ...........01 4.......................04 4..........08 6.........................................132 Internet bandwidth* ........................................05 11................103 Infant mortality* ............85 3rd pillar: Macroeconomic environment 3.....90 Interest rate spread* .....03 1..........69 FDI and technology transfer............08 11.....08 8.......................................40 Quality of air transport infrastructure .................................06 8..............05 7....23 Availability of scientists and engineers ...................01 5........................................................................................112 Mobile telephone subscriptions* ....................................................................63 Quality of scientific research institutions ....................................50 Favoritism in decisions of government officials .............75 9th pillar: Technological readiness 9......09 Cooperation in labor-employer relations..........................................08 7.......................................63 Production process sophistication.............................33 Quality of math and science education.......01 2.................05 3......................................................................................................36 Reliance on professional management ................................................................116 Malaria incidence*......07 7.........................................01 3....................12 6...........31 Business impact of rules on FDI ..............06 11........47 Reliability of police services .................27 Brain drain .06 4...16 1........38 Ethical behavior of firms........04 5.....................................................................................................01 7...60 Total tax rate* .........................................05 8.....................05 5.......................76 Firm-level technology absorption ......................07 8.........................................134 4th pillar: Health and primary education 4..................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....................................................................................91 Ease of access to loans.....................................................................01 12......20 1....................07 4.................136 Number of procedures required to start a business* ...04 8........06 1....41 Efficacy of corporate boards ....................................................03 6......10 1.......80 Legal rights index* ............................95 Willingness to delegate authority................114 Tertiary education enrollment rate*............138 10..........05 12..........101 Tuberculosis incidence* ...............................04 9..........................................................04 3.................03 8..............................03 2.......................42 Extent and effect of taxation................................02 8...................................................02 4......................40 Public trust of politicians ........03 7........................06 Government budget balance* ....89 2....................09 6......51 Organized crime ....128 Quality of electricity supply .....74 Nature of competitive advantage ...114 Inflation*..........................65 Soundness of banks ....................30 Business costs of terrorism .126 Government debt* ......................................................60 Venture capital availability........................128 Utility patents per million population*.................................................................50 Trade tariffs*..............07 2............ The 7th pillar: Labor market efficiency 7........................01 Domestic market size index*............................................10 Degree of customer orientation ....01 11...............14 1.......................................................................................................................46 Primary education enrollment rate* .....03 11.....................................02 11................02 9.................................10 Burden of government regulation .02 3.......09 Availability of financial services ..............02 6...72 Affordability of financial services..45 8th pillar: Financial market development 8.................03 4..06 7..........................63 Gov’t procurement of advanced tech products ....................108 Extent of marketing..............................09 4.....................48 Pay and productivity ...............................................................21 Property rights..............................................................................................14 6.....02 1...43 Strength of auditing and reporting standards................................................08 2.................124 Business impact of tuberculosis .........................45 Buyer sophistication ........01 6....................................................3 Prevalence of trade barriers ........................................02 12.......61 Financing through local equity market .......108 Broadband Internet subscriptions* ..86 Quality of management schools ...............01 9......................................02 2.32 6..............................................67 Hiring and firing practices....................36 Transparency of government policymaking............15 1.........73 Restriction on capital flows ...................................113 10th pillar: Market size 10....................................................................66 Internet users* ..............20 Irregular payments and bribes.90 HIV prevalence* ........................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 161 ...............129 Prevalence of foreign ownership ...51 Quality of railroad infrastructure ..5 Efficiency of legal framework in settling disputes ....................................35 Effectiveness of anti-monopoly policy ...........................................10 Business impact of malaria ........90 Extent of market dominance...........86 University-industry collaboration in R&D ................28 Redundancy costs* .......................................................n/a Quality of port infrastructure .....................118 Quality of primary education .............................................................02 Foreign market size index* .........................................................................................................07 11..............................73 Time required to start a business*.............136 11th pillar: Business sophistication 11....................01 1........25 Efficiency of legal framework in challenging regulations .................................61 Available airline seat kilometers* ............................................................................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum.............04 12........................................................66 Control of international distribution .................08 4.........19 1.............86 Agricultural policy costs......... For further details and explanation................................11 1............04 1......54 Judicial independence ....................................13 1....................127 Life expectancy* ...........................78 Local availability of research and training services........52 Quality of roads ............42 Rigidity of employment* ...............09 Local supplier quantity........................................24 Burden of customs procedures.............05 9..27 Flexibility of wage determination ..15 Intensity of local competition .............02 5.......................................................................56 Country credit rating*.........................................12 1......04 11......................................05 1..........03 5.........................................78 Company spending on R&D...............03 3................................................................09 Quality of overall infrastructure ....07 5.......................04 7..................................65 Local supplier quality ......133 2nd pillar: Infrastructure 2.......................07 Capacity for innovation ........................01 8..............04 6............................53 Internet access in schools....................10 6.......................................05 4.........05 2....................................39 Intellectual property protection ...........................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1............17 1...........138 Quality of the educational system...05 6...71 Business costs of crime and violence.........................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .....................................130 5th pillar: Higher education and training 5...................................................03 12....07 1...........13 6...................09 1.....................................67 Fixed telephone lines* ...............18 Wastefulness of government spending .............................38 Protection of minority shareholders’ interests ........115 Business impact of HIV/AIDS..........11 6...06 6.......22 Strength of investor protection* .....06 5..............................................................................08 1..06 2...................58 State of cluster development...........06 12..................02 7.......................................................04 2............03 9..45 Female participation in labor force* ................................

.......448 GDP (PPP) as share (%) of world total .............9 Poor public health ....................64 ....6 162 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.......8 Foreign currency regulations.......73 .....................7 5th pillar: Higher education and training .8 8th pillar: Financial market development......130 ........................3 12th pillar: Innovation..3..............7 Inadequate supply of infrastructure ...........2..................0.....125 ..............8 GCI 2008–2009 (out of 134)................................................3...................4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.5......2....................3 Inefficient government bureaucracy................3.........................000 3.................................................90 ...........0....3..4...3 GDP (US$ billions)...5 Financial market development Goods market efficiency Labor market efficiency Georgia Economies in transition from 1 to 2 The most problematic factors for doing business Access to financing .......14.....................................................7 GDP per capita (US$) ..................4............ 2009 GDP (PPP) per capita (int'l $)..............................9 Tax regulations .......................................6 9th pillar: Technological readiness........3.3 Poor work ethic in national labor force ......... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5...............................2 Crime and theft ........4 Inadequately educated workforce.....................1: Country/Economy Profiles Georgia Key indicators...............................98 ..................2............... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ........................................000 9..............................................1 1st pillar: Institutions ...90 .............7 6th pillar: Goods market efficiency...........9.................................................................................................................. The bars in the figure show the responses weighted according to their rankings............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.....3......14.................................9 Transition 1–2 1 GCI 2009–2010 (out of 133)........................................................... 1980–2009 Population (millions).......1 10th pillar: Market size....3............3..............3..........................................03 Georgia Commonwealth of Independent States 12......10.....9 Tax rates .....8 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..4..........................................................4 Policy instability..............................................69 ..107 ...............3........111 ......................................................73 .....95 .4 Corruption..31 ......................................................................8 Inflation ......1...2...................................8 Restrictive labor regulations .....................4.................2...10.................1....................94 ...............9 Factor driven Basic requirements................3...000 6................8 3rd pillar: Macroeconomic environment .....10...2 7th pillar: Labor market efficiency ............108 ..90 ........13....................3 4th pillar: Health and primary education .....2.........................2.....................................................3.......................9 11th pillar: Business sophistication...121 ...............9 2nd pillar: Infrastructure........................................5.........................................................2..93 ....5.............................9 Government instability/coups ...

.....................08 2.....................89 Business impact of rules on FDI ........................................................125 Ease of access to loans.......................................................89 Business impact of HIV/AIDS....................................................06 4.......................01 8..92 Life expectancy* .....08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ........................03 6......03 5......................12 1..................115 11th pillar: Business sophistication 11.125 Extent of staff training..............05 6..14 1....07 8......................................105 Primary education enrollment rate* ........03 7................04 5.05 11.............68 Wastefulness of government spending ...04 8....................05 8...........04 11.........44 Burden of customs procedures..................................... For further details and explanation...............3 Prevalence of foreign ownership ............................05 7.............01 6....81 8th pillar: Financial market deve