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

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

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

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

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 many countries. bounced back to healthy growth. health. Competitive economies are those that have in place factors driving the productivity enhancements on which their present and future prosperity is built. which will in turn help to eliminate fiscal imbalances. weak demand. Indeed.1 3 . and spiraling debt. thus stimulating discussion on the best strategies and policies to overcome them. Indeed. while still struggling with reforms in the financial and labor markets.1: The Global Competitiveness Index 2010–2011 CHAPTER 1. In this context. any exit strategies must be complemented by competitiveness-enhancing efforts aimed at improving the potential for growth in the medium to longer run. 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. for the most part. Today’s still-difficult economic environment requires not losing sight of long-term competitiveness fundamentals amid short-term urgencies. policymakers are being confronted with difficult economic management challenges. Growth has resumed following important injections. fears of a double dip are hindering many governments from articulating clear exit strategies. While emerging economies have. Following their active stance in addressing the crisis and the ensuing recession. 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. governments are struggling to unwind their deficit spending in an effort to control soaring debts. a major topic of discussion in recent G-20 summits. and education. The International Monetary Fund (IMF) predicts growth of 6.1 Yet without a clear commitment to getting spending under control in the medium term. For more than three decades. countries will compromise their future ability to make pro-growth investments in areas such as infrastructure. 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. Yet economies are advancing at different speeds and there is still the risk of a “double dip” in a number of countries.25 percent for advanced economies in 2010.25 percent for emerging markets. which are necessary for sustained development and competitiveness over the longer term. Our goal over the years has been to provide benchmarking tools for business leaders and policymakers to identify obstacles to improved competitiveness.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. In the current challenging economic environment. among other challenges. of government stimulus spending aimed at counterbalancing the worst global recession in decades. compared with 2. advanced economies face continuing difficulties such as persisting unemployment.

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

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

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

15 ICT has evolved into the “general purpose technology” of our time. 5 Blanchard and Cotarelli 2010. Ninth pillar: Technological readiness In today’s globalized world. and to allow for wage fluctuations without much social disruption. 3 In comparison to growth at low debt levels (below 30 percent of GDP). The technological readiness pillar measures the agility with which an economy adopts existing technologies to enhance the productivity of its industries. and the United States. ductive uses. venture capital.6 Notes 1 The G-7 countries are Canada. the United Kingdom. 2010. the banking sector needs to be trustworthy and transparent. The challenge will be to implement fiscal adjustment without undermining the frail economic recovery in the shorter term. recent research shows that governments that implement painful budgetary reforms tend to be rewarded politically. 4 Alesina et al. 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. Such reforms are of particular importance in the context of Greece.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 average rate of growth is reduced by 4 percentage points. at their summit in June 2010 in Toronto. 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. Italy. customers may be more demanding in some countries than in others. in order to maintain macroeconomic stability and competitiveness. technology has increasingly become an important element for firms to compete and prosper. these reforms can mitigate the negative For cultural or historical reasons. 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. to their most pro- effect of fiscal tightening on short-term growth.According to research by Reinhardt and Rogoff. 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. In order to fulfill all those functions. This can create an important competitive advantage. and other financial products. It channels resources to those entrepreneurial or investment projects with the highest expected rates of return rather than to the politically connected. Germany.1: The Global Competitiveness Index 2010–2011 Box 1: Fiscal policy and competitiveness (cont’d. 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. and—as has been made so clear recently—financial markets need appropriate regulation to protect investors and other actors in the economy at large. the country has dropped from 61st in the 2006–2007 edition to 83rd this year. but also in some European and G-20 economies—will have to be put on a sounder footing. 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. Business investment is critical to productivity. 1. France. 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. Efficient labor markets must also ensure a clear relationship between worker incentives and their efforts.4 Fiscal consolidation will have to be accompanied by structural reforms in order to increase overall competitiveness.3 In the medium to longer term. which in turn will improve the fiscal position. Labor markets must therefore have the flexibility to shift workers from one economic activity to another rapidly and at low cost.) 2 Reinhardt and Rogoff 2009.5 By sending a signal. where weakening competitiveness over the past years has been a root cause of macroeconomic instability. but they will also enhance growth in the longer term. An efficient financial sector allocates the resources saved by a nation’s citizens.2 these levels will have a serious impact on future growth rates of these economies. properly regulated securities exchanges. Toward that end. 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. A thorough and proper assessment of risk is therefore a key ingredient. fiscal policies—in particular in G-7 countries. Although this may seem politically painful. Japan.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. as well as equity in the business environment between women and men. 6 In the Global Competitiveness Index.

1: The Global Competitiveness Index 2010–2011 their role as industry-wide enabling infrastructure. Traditionally. the markets available to firms have been constrained by national borders. The central point is that the firms operating in the country have access to advanced products and blueprints and the ability to use them. The interrelation of the 12 pillars Eleventh pillar: Business sophistication Business sophistication is conducive to higher efficiency in the production of goods and services. 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 barriers to entry for new firms are reduced. and the production of unique and sophisticated products) all lead to sophisticated and modern business processes. in this context. While we report the results of the 12 pillars of competitiveness separately. There is vast empirical evidence showing that trade openness is positively associated with growth.1. reducing macroeconomic instability. standards of living can be enhanced only by technological innovation. FDI often plays a key role. international markets have become a substitute for domestic markets. In the era of globalization. Amid the present economic uncertainty. Business sophistication concerns the quality of a country’s overall business networks as well as the quality of individual firms’ operations and strategies. or improving human capital.19 Although less-advanced countries can still improve their productivity by adopting existing technologies or making incremental improvements in other areas. for those that have reached the innovation stage of development. this is no longer sufficient for increasing productivity. all these factors eventually seem to run into diminishing returns. Therefore ICT access and usage are key enablers of countries’ overall technological readiness. efficiency is heightened. The same is true for the efficiency of the labor. Individual firms’ operations and strategies (branding. 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). In the long run. For example. Appendix A describes the exact composition of the GCI and technical details of its construction. to increased productivity. when the more basic sources of productivity improvements have been exhausted to a large extent.18 By including both domestic and foreign markets in our measure of market size. thus enhancing a nation’s competitiveness. It is important to note that. especially for small countries. While the pillars are aggregated into a single index. 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. financial. That is why we separate technological readiness from innovation. it means sufficient investment in research and development (R&D). Even if some recent research casts doubts on the robustness of this relationship. When companies and suppliers from a particular sector are interconnected in geographically proximate groups (“clusters”). Whether the technology used has or has not been developed within national borders is irrelevant for its ability to enhance productivity. greater opportunities for innovation are created. 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. extensive collaboration in research between universities and industry. it is important to keep in mind that they are not independent: they tend to reinforce each other.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. Although substantial gains can be obtained by improving institutions. which is captured in the 12th pillar below. 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). as measured by the quantity and quality of local suppliers and the extent of their interaction. especially by the private sector. building infrastructure. especially for countries with small domestic markets. Firms in these countries must design and develop cutting-edge products and processes to maintain a competitive edge. and a weakness in one area often has a negative impact on other areas. 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 Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . the general sense is that trade has a positive effect on growth. supported by both the public and the private sectors. This is particularly important for countries at an advanced stage of development. the presence of a value chain. marketing. The quality of a country’s business networks and supporting industries. 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. In particular. is important for a variety of reasons. and the protection of intellectual property. the presence of highquality scientific research institutions. and goods markets. Among the main sources of foreign technology. This leads. Tenth pillar: Market size 8 The size of the market affects productivity since large markets allow firms to exploit economies of scale. in turn. This requires an environment that is conducive to innovative activity.

in order to sustain this higher income. developed financial markets (pillar 8). The basic requirements subindex groups those pillars most critical for countries in the factor-driven stage. Maintaining competitiveness at this stage of development hinges primarily on well-functioning public and private institutions (pillar 1). This is because Rwanda and Germany are in different stages of development: as countries move along the development path. productivity will increase and wages will rise with advancing development. competitiveness is increasingly driven by higher education and training (pillar 5). 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. labor productivity must improve. well-developed infrastructure (pillar 2). the pillars are organized into three subindexes. and a healthy workforce that has received at least a basic education (pillar 4). a stable macroeconomic environment (pillar 3). the GCI assumes that. with their low productivity reflected in low wages. As a country becomes more competitive. well-functioning labor markets (pillar 7). 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.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. 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. At this point. And the The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . At this stage. each critical to a particular stage of development. the economy is factor-driven and countries compete based on their factor endowments: primarily unskilled labor and natural resources. wages tend to increase and. the relative importance of each one depends on a country’s particular stage of development. That is. Finally. and a large domestic or foreign market (pillar 10). To implement this concept. efficient goods markets (pillar 6). Countries will then move into the efficiency-driven stage of development. when they must begin to develop more efficient production processes and increase product quality because wages have risen and they cannot increase prices. although all 12 pillars matter to a certain extent for all countries. companies must compete by producing new and different goods using the most sophisticated production processes (pillar 11) and through innovation (pillar 12). in the first stage. the ability to harness the benefits of existing technologies (pillar 9). In line with the well-known economic theory of stages of development.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. The efficiency enhancers subindex includes those pillars critical for countries in the efficiency-driven stage. as countries move into the innovation-driven stage.20 Companies compete on the basis of price and sell basic products or commodities.

is now included in the private institutions subpillar. namely transport infrastructure and energy and telephony infrastructure. The three subindexes are shown in Figure 1. this variable was also included in the labor market efficiency pillar and in each instance it was given half weight. The latter now includes mobile telephone subscriptions. Previously. Since it is also included in the infrastructure pillar. each instance is given half weight. the indicators have been reorganized into two relevant subpillars. has been included because of the rising importance of this factor for competitiveness.21 The rounding of these econometric estimates led to the choice of weights displayed in Table 1. The JRC is widely recognized as holding the world’s leading expertise on composite indicators. Adjustments to the GCI Over the past year. allowing for different coefficients for each stage of development. The indicator on personal computers is no longer included as the data are no longer collected by the International Telecommunication Union. The index of the strength of investor protection compiled by the World Bank. This is measured by the share of exports of mineral goods in total exports (goods and services). Within the health and primary education and the higher education and training pillars (4th and 5th). Box 2 provides details of their findings. Overall the JRC found that the GCI is robust to changes in weights and is a solid index. The first is the level of GDP per capita at market exchange rates.” For these countries. Finally. the weights change smoothly as a country develops.1: The Global Competitiveness Index 2010–2011 innovation and sophistication factors subindex includes the pillars critical to countries in the innovation-driven stage. given the general scope of the Index. the JRC made some recommendations on how to further strengthen the GCI. 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. The technological readiness pillar (9th) has been separated into two relevant subpillars: technological adoption and ICT use. previously in the financial market development pillar. In addition to this overall assessment. To obtain the weights. Within the infrastructure pillar (2nd).000 2. This variable is also part of the technological readiness pillar and therefore receives half weight in each pillar. assuming that countries that export more than 70 percent of mineral products (measured using a fiveyear average) are to a large extent factor driven. Based on their findings. A second criterion measures the extent to which countries are factor driven.1. A new variable on Internet bandwidth. because internationally comparable data on wages are not available for all countries covered. The classification of countries into stages of development is shown in Table 3.000 3. In the goods market efficiency pillar (6th).000 > 17. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . some minor adjustments to the structure of the GCI have been made. on the other hand. The density of fixed telephone lines is included in the ICT use category.000–9. we have dropped the variable on education expenditure as it is no longer collected by UNESCO. the Global Competitiveness Index has been put through a rigorous analysis by the Joint Research Centre of the European Commission (JRC).000 Any countries falling in between two of the three stages are considered to be “in transition. The weights attributed to each subindex in every stage of development are shown in Table 1.000–3. the variable on the laws relating to ICT was dropped as it was deemed too specific. a measure of the extent of bribery and irregular payments derived from the Executive Opinion Survey has been added under ethics and corruption.000–17. such as the GCI. as well as the Forum’s own analysis and changes in data availability. The thresholds used are shown in Table 2. reflecting the smooth transition from one stage of development to another. 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 variable used as a proxy for the tax rate is now given full weight. as follows: In the institutions pillar (1st). ensuring that the GCI can gradually “penalize” those countries that are not preparing for the next stage.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$) < 2.000 9. This widely available measure is used as a proxy for wages. a maximum likelihood regression of GDP per capita was run against each subindex for past years.

could not be included in this edition because of a lack of Survey data. Country coverage A number of new countries have been added this year. 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. 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. All of the adjustments described above are reflected in Appendix A at the end of this chapter. 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. has now been reinstated. in order to deal with skewness of two of the hard data variables (4.1: The Global Competitiveness Index 2010–2011 Table 3: List of countries/economies at each stage of development 11 . which was covered last year. all of the countries in the top 10 remain the same as last year. with some shifts in The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. Rwanda. Suriname. a country that had been covered for several years but was excluded last year because of insufficient Executive Opinion Survey data. Islamic Rep. These include four African countries (Angola. On the other hand. Moldova. Finally. Cape Verde. 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. Rep. we have employed a logarithmic transformation as one step in converting them to a 1-to-7 scale.04 Imports as a percentage of GDP). The Global Competitiveness Index 2010–2011 rankings Tables 4 through 8 provide the detailed rankings of this year’s GCI. and Swaziland) and two Middle Eastern countries (the Islamic Republic of Iran and Lebanon). 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. This has led to an increase in coverage to a total of 139 economies this year. As Table 4 shows.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. but instead groups all variables together.10 Primary enrollment and 10.

where k = 1.5 U[0. The black line is the median across all countries and the boxes include 75 percent of the cases. on the other hand. the 90 percent confidence interval.7] w33 0. often populated by a different number of indicators.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .1. GCI scores are rather robust: the median score is always close to the reference score. The robustness of the GCI weighting scheme is tested by randomly sampling the set of weights wjk.3 U[0. The Unit of Econometrics and Applied Statistics at the European Commission Joint Research Centre has longstanding experience in constructing and testing composite indicators. enabling policymakers to derive more accurate and meaningful conclusions. moderate in absolute terms. (Cont’d.0.2 U[0. 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. 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. which describe basic requirements.4] Sources: European Commission Joint Research Centre.3.4 U[0. The whole distribution of the score differences is displayed by the vertical blue lines. however.200 Monte Carlo simulations. 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. Error bars represent.2.3 from uniform continuous distributions centered in the corresponding GCI reference value (see Table 1 in the main text of this chapter). meaning that higher volatility is associated with countries with similar scores.200 runs. Oman. The range of variation of the set of weights takes into account this simplification by overlapping uncertainty intervals (see Table 1). Robustness analysis assesses the major drivers of uncertainty in model predictions. and market size. each corresponding to a different set of weights of the three subindexes. Considering this trade-off.05. The influence is. The choice of the range of variation has been driven by two opposite needs: on the one hand. where the black line of the reference score is less steep.5 U[0. World Economic Forum. health and primary education. the Unit developed the Handbook on Constructing Composite Indicators: Methodology and User Guide. 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.3. the blue dot being the median score.4] w32 0.1. Together with the Organisation for Economic Co-operation and Development (OECD). infrastructure. for each country.05 U[0. 2009.2.0. the need to keep the rationale of the GCI weighting scheme. the final GCI scores are computed as a weighted average of three subindexes.6 U[0. originally designed to take into account intrinsic differences across countries. The main results are shown in Figure 2. The Monte Carlo simulation comprises 1.1. 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 most influential pillars are institutions.3] w31 0.0. Looking at the shift in ranks (see Appendix B).1] w21 0. Every model depends on a set of assumptions. For technical reasons. Changing these assumptions is likely to affect the inferences drawn from the model. Namibia. which has become the international reference in the field.1 The robustness of the GCI with respect to its weighting scheme As described in the main text of this chapter.0.1 U[0. Countries are ordered from best to worst according to their GCI reference score (black line). 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. the maximum shift of a country is up to 5 positions for 75 percent of the cases.0.0. The main outcome of the robustness analysis is shown in Figure 1 with median scores and 90 percent confidence intervals computed across the 1.0. More on the robustness analysis of the weighting scheme is discussed in Appendix B. This demonstrates that almost all of the 12 pillars contribute to the GCI score in a balanced way. Countries in transition are assigned to the nearest development stage. and Syria. 2. Brunei Darussalam. limit values of uncertainty intervals have been defined as shown in Table 1.35 U[0. the need to ensure a wide enough interval to have meaningful robustness checks. Suriname.2.5] w13 0.6] w22 0. and 3) are considered for the robustness analysis. Relatively higher volatility (longer error bars) is present in the middle part of the graph.1: The Global Competitiveness Index 2010–2011 12 Box 2: Testing the robustness of the Global Competitiveness Index MICHELA NARDO and PAOLA ANNONI. Bahrain. only the three major development stages (stages 1. efficiency enhancers. 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 0.0.0.4.0. All but the last belong to the basic requirements subindex.8] w12 0. macroeconomic environment.7] w23 0.

Almost all pillars contribute in a balanced way to the overall GCI score. Note 1 The analysis was carried out on the GCI from The Global Competitiveness Report 2009–2010.2 0.5 0. with the most influential pillars being those of the basic requirements subindex. Figure 1: Robustness analysis: Median scores and their confidence intervals 7 1.0 –0. the GCI proved to be robust.1: The Global Competitiveness Index 2010–2011 Box 2: Testing the robustness of the Global Competitiveness Index (cont’d. Figure 2: GCI framework balance of pillars: Score differences 0.4 .3 0. World Economic Forum. 2009.4 GCI score–simulated score 0. 2009.) 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. Country scores and ranks are not significantly affected by different weighting schemes with only few exceptions.1 0.2 –0. See World Economic Forum 2009. World Economic Forum.Overall.1 –0.3 Sources: European Commission Joint Research Centre. 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.

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

57 4.16 4.35 3.62 3. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1.32 3.07 5.86 3.69 3.64 3.61 4.31 4.32 5.25 4.04 4.96 3.38 3.58 3.68 4.39 5.36 4.49 3.33 5.00 4.25 4. Suriname’s rank of 102 from last year is therefore not shown in the table.99 3.28 4.37 5. Rep.51 4.63 3.) GCI 2010–2011 Country/Economy Rank Score Kazakhstan Peru Namibia Morocco Botswana Croatia Guatemala Macedonia.30 5.64 3.34 3.33 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 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 4.25 4.30 5.93 4.37 4.51 3.74 3.14 5.55 3.67 3.92 4.94 3.50 4.34 4.13 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.49 4.89 3.14 4.91 4.21 4.45 4.13 5.95 3.84 4.11 5.63 5. China Norway France Australia Qatar Austria Belgium Luxembourg Saudi Arabia Korea.27 4.03 2.65 4.65 3.43 5.20 3.32 4.97 3.46 3.33 4.37 5.40 3.25 5.99 3.51 4.23 3.14 4.GCI 2010–2011 Country/Economy Switzerland Sweden Singapore United States Germany Japan Finland Netherlands Denmark Canada Hong Kong SAR United Kingdom Taiwan.09 5.88 4. One country that was included last year.19 4.21 5.05 4.84 3.90 3.23 4.96 3. FYR Rwanda Egypt El Salvador Greece Trinidad and Tobago Philippines Algeria Argentina Albania Ukraine Gambia.32 4.28 3.86 3.00 3.59 4.89 3.56 5.05 4.29 4. 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.74 4.09 4.57 3.14 3.95 4.85 3.45 3.14 4.79 3.48 3.93 2.12 4.89 4.56 3.04 4.43 4.90 3.08 4.54 4.65 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 5.38 4.51 3.49 3.70 3.75 3.38 4.56 3.53 3.72 3.02 4.1: The Global Competitiveness Index 2010–2011 Table 4: Global Competitiveness Index 2010–2011 rankings and 2009–2010 comparisons 15 .48 5.76 3.42 4.24 4. has been excluded this year for lack of Survey data. Islamic Rep. Suriname.48 3.61 4.10 5.75 4.36 3.11 4.96 2.49 4.69 4.73 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.33 4.51 3.

20 5.25 4.24 4.98 6.42 5.84 4.07 5.46 3.21 4.59 4.09 5.24 4.19 3.51 4.78 3.49 4.11 5.31 4.91 4.69 3.11 3.35 4.05 4.18 5.98 3.90 5.75 4.34 4.30 4.14 5.52 4.73 5.71 5.30 5.36 4.97 4.43 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 5.87 3.16 5.98 5.1: 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.28 4.55 3.89 5.49 4.77 4.07 5.32 4.97 5.81 5.88 4.67 5.35 4.41 4.32 5.29 4.24 5.65 5.06 4.66 4.38 4.37 4.11 5.34 (Cont’d.88 3.50 4.09 3.67 4.17 5.30 5.31 4.33 4.42 4.75 4.08 3.10 5.08 4.32 5.63 3.25 4.82 4.67 4.09 3.96 3.57 4.43 5.56 3.18 4.71 5.35 4.57 4.39 4.51 4.19 4.38 5.25 5.68 3.42 4.37 5.67 5.72 5.67 4.21 5. 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 5.51 4.41 4.79 4.54 4.23 4.67 3.51 5.13 5.14 4. China Norway France Australia Qatar Austria Belgium Luxembourg Saudi Arabia Korea.54 4.27 5.91 4.59 4.72 4.65 4.74 4.46 5.33 4.42 4.36 4.16 4.37 4.49 5.82 5.42 4.46 3.68 4.82 5.69 5.35 5.03 4.13 3.82 4.92 4.28 5.65 4.69 4.30 4.24 3.32 5.15 5.16 4.39 4. 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.77 6.19 3.12 5.14 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 6.58 5.24 3.56 4.22 4.05 4.13 5.48 5.05 5.33 4.81 4.05 5.76 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 5.62 5.33 5.50 3.48 5.05 4.68 4.07 4.82 4.39 5.09 4.84 4.28 4.77 4.01 4.26 4.13 5.08 4.36 3.61 4.25 4. Islamic Rep.54 3.83 4.97 4.53 5.93 4.69 4.56 5.25 5.32 5.38 4.48 4.48 4.71 3.48 5.83 4.92 4.51 4.68 4.43 5.90 3.01 5.33 4.27 4.15 4.98 3.16 4.93 3.76 4.12 5.30 5.13 3.97 3.01 4.61 4.54 4.67 3. Rep.18 4.98 4.89 4.49 4.18 5.57 4.45 5.91 4.23 4.81 4.93 5.50 4.19 5.38 4.86 5.36 4.63 4.46 4.74 5.63 5.58 5.05 5.37 5.41 5.62 4.91 5.77 4.79 4.03 3.95 4.61 4.45 4.52 4.28 4.20 4.34 4.43 4.46 4.05 4.28 5.61 4.21 5.32 4.76 4.05 5.1.67 5.01 4.08 4.96 3.09 5.41 5.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .33 4.45 4.37 4.97 4.09 5.11 3.95 4.

64 3.31 3.29 3.15 4.92 4.58 3.14 3.08 2.34 3.04 2.78 3.80 3.09 3.35 3.48 4.65 3.08 4.1: The Global Competitiveness Index 2010–2011 Table 5: The Global Competitiveness Index 2010–2011 (cont’d.53 3.56 2.63 2.78 3.01 2.90 3.76 3.51 3.48 3.14 3.11 4.41 3.13 4.37 3.00 4.53 3.30 3.60 4.65 3.35 3.36 3.20 3.20 3.13 3.45 3.17 3.29 4. FYR Rwanda Egypt El Salvador Greece Trinidad and Tobago Philippines Algeria Argentina Albania Ukraine Gambia.58 2.99 3.62 3.14 3.90 3.54 3.30 3.79 3.50 2.04 4.37 3.13 3.15 2.55 4.12 3.99 2.25 3.19 3.20 3.97 3.38 3.02 4.52 3.49 3.96 3.49 3.53 3.55 3.85 3.77 3.89 3.24 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 3.43 3.79 3.03 2.74 4.17 2.71 2.70 4.56 3.48 3.94 3.62 3.86 3.44 3.23 3.41 3.38 3.95 3.44 4.88 3.98 3.96 2.57 4.35 3.05 3.71 3.83 3.84 3.11 3.51 3.97 4.06 3.96 2.43 3.53 3.04 4.66 3.66 3.90 2.77 3.36 3.39 3.75 3.10 3.32 3.14 3.82 4.42 3.38 3.29 3.93 3.67 3.05 4.56 3.74 3.48 2.57 3.51 3.63 3.) 17 .57 3.93 2.89 3.69 3.38 3.12 3.75 3.28 2.93 3.45 4.08 2.76 3.79 The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1.24 3.28 4.08 4.29 3.00 3.60 2.00 2.89 3.36 3.22 4.95 2.95 3.09 4.98 2.50 3.70 4.78 4.16 2.20 3.33 2.91 3.00 4.02 4.99 3.59 3.69 3.73 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 4.96 2.26 4.96 3.63 3.70 3.78 4.78 3.00 2.38 2.75 3.07 4.89 3.42 3.89 2.89 3.65 3.97 2.43 4.32 4.43 3.32 2.90 3.79 3.47 3.64 3.15 3.39 3.87 4.71 3.87 3.85 3.51 3.41 2.89 3.15 3.56 3. 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 4.20 3.56 3.18 3.31 3.49 4.21 3.87 2.88 3.32 3.72 3.40 3.98 3.67 3.49 3.37 4.51 3.46 3.22 3.12 4.28 4.05 3.45 3.84 2.63 3.84 3.62 3.78 3.SUBINDEXES OVERALL INDEX Country/Economy Latvia Bulgaria Kazakhstan Peru Namibia Morocco Botswana Croatia Guatemala Macedonia.46 3.01 2.14 3.97 3.49 3.20 3.13 4.20 3.28 3.56 3.38 3.19 4.47 3.16 4.84 3.04 3.90 3.96 3.36 3.62 3.38 3.80 4.22 3.01 2.49 3.96 3.86 3.16 3.64 3.00 3.56 3.14 4.48 3.24 2.66 3.80 3.68 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 4.54 3.72 3.92 4.53 3.59 3.

80 2.58 5.56 3.99 5.12 4.12 4.55 5.14 6.55 4.78 5.99 3.59 3.48 5. Kuwait Kyrgyz Republic Latvia 1.10 5.32 3.43 2.69 3.38 3.19 2.84 3.24 3.16 5.89 3.44 5.16 3.36 6.27 3.59 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 5.63 3.42 5.21 5.94 2.64 2.57 2.20 3.91 3.74 5.05 4.26 5.08 2.40 3.29 3.48 4.78 5.98 3.84 4. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran.78 5.18 5.21 5.52 5.71 4.86 3.56 3.15 5.58 4.16 4.30 5.76 4.66 6.37 5.85 3.50 3.85 3.51 6.57 3.43 3.60 5. Rep.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 4.90 5.32 2.45 3.05 4.49 4.13 2.43 4.98 3.65 4.77 4.44 4.36 5.56 4.63 5.67 4.73 5.96 4.56 2. Islamic Rep.87 5.62 5.97 5.80 4.83 3.12 4.30 5.35 2.93 4.49 3.50 5.52 6.24 3.26 4.11 2.45 6.87 4.91 4.75 4.91 5.77 4.37 6.83 4.46 5.65 5.77 3.45 3.87 6.62 4.58 3.69 4.76 6.48 4.38 4.34 5.89 4.48 3.88 3.70 2.89 6.50 6.15 4.37 5.64 6.37 6.48 3.69 5.71 3.47 4.02 4.16 5.22 2.62 3.85 4.03 3.62 5.66 4.23 5.25 3.76 3.49 1.10 6.15 6.36 4.66 5.82 4.42 3.42 4.67 5.16 3.54 4.68 5.46 3.13 5.26 5.52 4.1: 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.34 6.15 5.83 5.83 3.49 4.80 4.11 3.06 2.13 4.59 2.37 4. Infrastructure 3.33 3.19 4.61 5.42 3.60 4.07 4.16 3.19 6.69 4.04 4.98 4.15 3.65 4.20 4.51 6.00 3.13 2.79 5.86 5.56 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 3.29 4.81 5.23 3.35 4.55 5.11 4.67 4.87 5.05 4.50 6.44 3.53 2.35 4.20 5.52 4.58 5.08 4.23 5.44 2.42 5.67 4.49 6. Macroeconomic environment 4.63 3.01 3.66 5.05 6.28 4.25 5.00 6.66 5.50 6.97 4.33 3.69 2.27 4.71 5.72 4.67 4.75 3.91 3.84 3. 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. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.36 4.77 3.56 3.88 (Cont’d.00 4.96 5.02 3.50 5.13 4.55 6.69 3.26 4.92 3.72 3.29 5.92 5.58 4.34 5.78 5.67 3.13 5.42 5.89 5.76 5.10 4.94 3.24 6.59 6.74 5.46 3.98 3.17 4.29 3.1.30 4.30 4.60 2.57 2.58 3.93 3.19 5.26 3.75 6.37 4.37 3.59 4.48 4.96 6.24 5.49 5.48 6.21 4.02 6.91 5.81 1.84 3.82 4.97 3.73 3.54 3.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .84 3.01 4.39 5.48 5.32 4. Institutions 2.96 3.54 4.96 4.86 5.59 4.81 4.33 5.63 5.53 5.64 3.04 3.15 4.90 5.90 2.36 4.68 5.76 3.03 3.35 4.47 4.59 3.14 4.75 6.66 5.52 2.61 4.44 5.20 4.75 4.05 4.14 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 3.61 4.41 5.27 4.43 4.65 5.18 3.89 4.49 6.78 3.14 4.03 5.27 4.86 5.

53 3.35 4.77 3.36 3.39 6.39 4.64 4.97 2.76 3.81 5.76 3.43 5.46 2.18 2.47 2.28 5.89 5.26 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 6.95 3.56 3.87 4.81 6.52 4.09 4.26 1.32 4.12 5.19 3.75 4.32 6.81 4.66 4.28 5.70 4.45 3.39 3.23 4.37 3.60 3.25 5.53 4.56 5.61 5.79 5.77 5.25 4.82 4.56 5.07 2.13 5.61 3.36 125 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 3.46 4.40 4.45 3.17 5.17 4.15 6.71 3.85 3.77 3.50 5.33 5.75 4.34 4.72 4.35 5.01 4.95 6.56 2.26 5.20 4.60 5.33 4.78 6.74 6.19 5.56 5.81 4.93 4.69 4.11 5.94 2.13 4.85 3.93 5.29 2.40 3.84 1.53 4.18 4.42 3.43 6.76 6.36 4.41 123 120 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 2.22 6.90 5.22 3.23 4.67 3.50 4.31 4.80 3.63 2.13 6.39 4.) 19 .03 5.08 3.63 2.25 4.91 3.20 5.58 4.82 3.82 3.22 5.83 6.07 3.07 6. Institutions 2.01 5.05 113 100 111 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 3.37 4.73 6.98 6.77 5.76 4.88 5.12 6.23 6.44 4.27 4.34 3.81 5.44 5.46 5.54 6.90 4.38 5.73 4.77 5.88 5.18 3.94 3.43 4.29 5.24 3.59 5.70 4.01 6.46 3.07 5.87 3.74 4.27 5.66 4.43 3.63 4.22 4.71 4.28 4.56 5.14 6.80 5.23 5.28 4.65 4.56 3.05 5.11 5.05 4.75 3. Infrastructure 3.49 3.05 4.81 4.74 3.81 2.99 4.33 3.16 The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1.65 4.98 5.53 2.61 3.56 3.75 5.02 4.34 3.77 3.56 4.72 2.37 5.46 3.76 5.66 5.22 4.10 3.61 3.49 4.67 6.49 4.79 3.82 2.19 4.19 4.80 3.64 2.29 5.62 3.09 2.10 3.32 3.57 3.47 5.82 3.18 3.18 5.42 2. Macroeconomic environment 4.82 5.30 4.19 3.22 4.95 3.95 6.01 5.60 4.42 6.64 3.67 4.70 5.05 4.74 3.70 3.51 4.08 5.22 4.82 5.69 5.02 5.61 4.95 6.04 4.26 5.00 6.45 2.55 3.06 4.53 5.09 5.35 3.67 4.83 3.83 3.97 4.26 5.37 3.58 3.73 3.69 5.53 3.16 5.42 5.43 3.20 5.78 2.82 3.22 4.82 5.58 5.35 2.55 3.60 4.01 4.21 4.52 5.36 3.26 4.92 5.52 4.86 6.22 4.50 4.47 3.47 3.18 3.19 6.24 4.76 4.41 5.58 5.70 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 1.96 5.21 4.80 4.74 3.14 4.39 4.99 5.26 5.37 4.06 3.64 5.50 5.71 3.65 5.73 2.67 5.07 5.25 5.PILLARS BASIC REQUIREMENTS Country/Economy Lebanon Lesotho Libya Lithuania Luxembourg Macedonia.11 3.99 3. 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.60 4.19 5.38 4.21 2.90 4. 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 3.40 6.1: The Global Competitiveness Index 2010–2011 Table 6: The Global Competitiveness Index: Basic requirements (cont’d.40 3.20 5.47 5.02 5.45 2.17 4.37 4.08 3.52 4.06 6.89 3.54 4.50 5.99 5.53 6.92 3.74 3.65 4.28 5.00 3.59 2.18 4.67 5.25 3.36 4.00 4.92 4.47 2.82 3.13 3.41 6.56 4.41 3.

41 4.64 4.31 2.98 3.11 3.61 3.63 4.53 5.13 4.25 3.25 5.52 3.50 3.09 3.92 4.93 3.09 4.50 3.47 4.48 3.00 5.57 3.33 3.46 3. Islamic Rep.55 4.09 4.83 4.52 3.40 4.04 (Cont’d.09 3. Financial market development 9.15 3.94 4.19 4.47 1.79 3.27 5.32 3.65 4.49 4.14 2.54 3.69 3.23 5.88 4.23 3. Higher education and training 6.52 2.1: 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.88 2.85 4.62 4.51 4.16 4.46 4.15 3.16 4.18 4.75 5.41 5.57 3.33 3.17 3.48 1.08 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 3.22 5.97 4.39 4.57 4.92 5.00 3.61 3.58 2.06 4.06 5.12 4.60 5.46 3.75 5.27 4.60 2.20 3.32 3.88 3.98 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 3.77 2.96 10.59 2.07 3.98 2.76 1.90 5.00 4.16 3.51 4.17 5.17 4.77 4.25 4.13 4.16 3.94 4.25 3.19 2.80 6.49 3.71 4.28 3.87 4.35 4.44 4.36 3.86 5.32 1.88 2.42 4.64 3.88 4.46 4.1.17 3.11 3.50 5.80 5.33 3.55 5.60 4.87 3.64 4.60 3.71 3.52 5.82 4.66 5.96 5.24 5.92 4.13 4.62 4.96 4.45 4.84 3.09 4.24 3.72 6.13 3.04 5.42 4.17 4.27 5. Rep.13 4.20 3.56 4.14 5.40 3.04 3.40 4.33 3.88 4.91 3.25 4.12 3.56 3.00 3.36 3.01 3.43 4.75 4.98 4.58 4.89 3.10 2.22 3.57 4.29 4.80 4.02 3.19 3.62 5.17 2.82 2.51 5.28 4.85 5.51 5.90 4.13 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. Kuwait Kyrgyz Republic Latvia 5.81 4.50 3.27 2.96 4.14 5.22 3.25 2.25 4.47 4.24 4.81 5.20 3.94 6.94 2.78 4.58 4.38 4.92 3.61 4.49 4.93 4.59 3.37 6.55 3.11 2.97 5.20 4.80 3.55 5.16 5.35 3.80 4.41 5.82 4.85 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 4.47 4.82 4.28 4.79 2.82 4.15 5.65 4.92 4.97 3.98 5.78 4.81 4.78 3.65 5.77 3. Labor market efficiency 8.58 100 135 134 126 110 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 3.70 4.74 4.70 4.16 4.16 3.89 4.36 3.62 2.63 4.80 3.00 4.87 3.99 4.08 3.02 4.29 2.29 3.35 4.07 3.18 4.11 5.85 4.71 3.27 4.85 3.98 4.53 3.40 3.76 3.91 4.66 3.25 4.49 5.38 3.47 4.31 3.91 4.06 3.14 3.44 4.36 2.32 3.58 5.62 4.08 2.38 4.71 4.35 3.10 3.01 3.00 5.23 3.59 3.75 4.81 4.05 4.96 4.65 3.46 2.85 4.00 3.87 2.88 3.32 4.86 3.76 4.42 3.38 3.95 4.53 2.35 3.64 2.53 3.62 4.97 4.75 4.48 4. Goods market efficiency 7.67 2.46 2.42 4.98 4.58 3.23 3.37 4.09 3.47 3.18 3.85 4.65 3.71 2.44 2.57 3.01 4.59 2.76 2.96 4.91 5.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .95 3.97 4.13 3.64 3.83 4.19 4.09 3.51 3.21 4.71 5.45 2.76 4.46 5.61 5.74 4.78 3.25 4.13 3.94 3.02 5.62 4.55 4.38 4.75 4.71 4.91 4.36 3.07 3.59 4.97 5.71 3.03 2.56 3.20 4.02 4.12 3.29 3.26 4.39 4.31 5.49 4.11 3.01 3.79 5.59 3.98 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 3.32 3.65 3.23 4.35 4.90 4.14 3.23 3.92 5.89 3.59 4. 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 2.90 4.32 3.45 4.84 3.63 4.54 3.08 3.06 4.22 2.33 4.71 4.96 3.05 3.13 3.10 5.40 4.99 3.21 3.74 3.93 3.70 4.06 5.60 3.99 4.06 4.46 1.47 4.69 4.61 4.86 4.64 4.83 4.24 3.01 3.74 2.96 4.68 4.75 3.23 5.62 3.12 4.29 3.41 3.38 5.21 5.11 5.74 5.72 5.34 6.36 3.17 4.08 2.84 3.66 2.16 3.16 2.75 3.84 4.81 4.75 4.94 4.63 2.32 4.74 4.00 3.09 4.66 5.56 4.28 4.20 3.34 3.18 3.08 3.18 4.03 3.94 4.10 5.26 3.05 4.42 3.09 5. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran.24 3.97 4.44 3.76 4.22 3.05 3.59 3.67 3.85 2.21 4. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.44 4.43 3.01 2.

50 5.46 3.34 2.80 2.54 2.75 5. 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 4.04 2.20 4.85 2.03 4.87 3.76 3.37 4.39 4.80 5.16 3.12 5.49 3.31 3.18 3.77 4.15 4.66 4.97 2.60 2.29 3.79 4.46 2.08 3.17 3.67 3.60 4.70 2.95 4.71 4.09 2.55 2.81 5.58 2.94 4.51 5.85 4.23 4.57 4.77 4.99 3.51 2.04 2.24 2.64 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 3.93 4.01 5.62 3.16 3.64 4.68 3. Labor market efficiency 8.43 4.05 3.80 6.57 2.79 2.66 4.36 4.98 4.63 5.44 3.92 3.48 The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 10.32 4.95 4.86 3.19 2.12 3.04 2.68 2.) 21 .80 4.58 4.66 3.01 4.17 3.09 4.15 3.45 3.04 2.59 4.79 3.41 5.45 3.76 3.83 3.18 4.95 1.68 4.39 2.21 4.21 4.35 4.74 3.95 4.28 4.55 3.82 3.47 4.97 2.80 3.66 4.61 4.36 4.51 4.84 4.28 4.19 4.52 3.38 4.61 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 5.80 4.49 4.38 4.01 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 4.1: The Global Competitiveness Index 2010–2011 Table 7: The Global Competitiveness Index: Efficiency enhancers (cont’d.23 3.88 4.51 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 4.42 3. Goods market efficiency 7.66 4.83 3.02 4.91 4.49 4.34 3.56 4.82 3.21 2.81 4.15 2.35 4.58 5.08 4.18 3.09 4.95 3.38 5.62 2.14 5.64 4.02 5.97 3.35 4.68 3.84 4.19 5.48 4.68 4.33 2.85 4.65 4.66 4.56 2.82 4.91 4.98 3.31 2.30 5.35 3.45 4.57 4.06 3.78 4.30 3.07 4.55 3.97 3.69 5.28 4.54 3.56 4.24 4.22 4.08 3.32 5.59 4.31 4.18 4.11 4.15 5.38 4.45 4. Higher education and training 6.86 3.94 4.80 4.39 4.24 4.80 5.12 5.13 2.26 3.70 2.88 3.47 3.23 4.14 5.09 3.04 2.97 4.86 3.62 4.13 4.60 2.78 4.26 4.00 3.08 3.55 3.63 3.55 3.83 3.21 3.08 3.64 3.09 3.61 4.71 4.13 3.63 5.76 4.16 2.83 5.56 2.49 3.31 2.03 4.78 3.64 5.43 4.10 3.89 3.64 4.68 3.82 5.93 2.76 4.97 4.92 2.94 3.51 3.07 3.41 3.54 2.83 5.75 4.11 3.11 4.22 2.84 5.27 4.41 2.81 5.57 5.67 4.92 4.98 4.48 4.17 2.63 3.28 4.05 4.39 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 4.20 5.47 3.20 4.41 4.00 3.51 6.63 3.82 2.80 3.49 2.56 3.22 2.56 3.73 4.79 2.59 3.49 3.33 4.18 4.17 3.18 3.99 4.80 3.45 4.72 5.42 4.26 4.95 5.58 4.41 2.70 1.01 5.24 3.01 4.68 4.81 4.82 5.56 3.90 5.30 3.83 4.14 3.70 3.43 4.89 5.00 3.34 4.25 2.04 5.20 3.73 3.99 3.87 4.68 4.58 4.17 2.62 4.07 4.31 4.67 4.59 2.92 3.27 3.06 5.02 5.09 3.01 4.09 3.93 3.10 3.34 3.72 2.59 3.87 2.92 5.85 3.63 3.73 3.19 3.98 3.94 4.41 4.56 3.94 4.33 3.51 3.60 4.92 3.50 2.25 3.64 3.67 3.45 4.24 2.21 5.41 5.00 4.58 3.74 2. Financial market development 9.37 4.46 6.48 4.29 4.37 2.65 4.92 4.11 3.92 4.75 4.41 1.84 1.54 5.98 4.68 4.35 3.62 5.84 3.36 3.99 5.23 3.58 5.29 5.93 4.95 4.55 2.68 4.80 4.54 4.54 4.01 3.19 4.00 4.32 4.94 4.82 3.46 3.44 3.51 3.59 5.10 4.76 2.15 4.76 4.26 5.17 5.30 4.49 5.84 4. 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 3.11 4.76 4.75 5.93 4.58 3.53 3.91 4.31 5.64 1.52 4.92 3.25 4.31 2.69 3.22 3.10 4.73 3.81 3.53 5.63 5.93 5.74 2.22 2.66 4.34 3.78 3.96 4.59 4.21 3.74 4.19 4.57 4.91 3.57 4.74 4.86 4.00 4.10 3.01 3.PILLARS EFFICIENCY ENHANCERS Country/Economy Lebanon Lesotho Libya Lithuania Luxembourg Macedonia.27 4.63 3.10 3.24 3.92 5.85 2.28 5.71 5.25 3.54 3.37 5.07 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 4.32 4.40 2.34 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.28 3.53 4.61 4.26 4.97 4.64 3.47 4.43 2.80 2.10 4.99 4.89 4.04 4.37 4.99 5.78 4.87 4.20 4.89 4.60 3.47 3.

89 2.23 2.53 3.90 2.10 4.64 3.74 3.10 3.43 2.25 3.88 2.97 2.42 4.59 3.90 4.16 4.73 4. 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 2.52 3.54 4.61 3.25 5.96 5.24 3.03 3.65 2.91 3.76 3.47 4.60 3.34 2.69 4.35 2.67 5.92 3.07 3.21 2.74 4.79 4.43 2.11 2.15 5.04 5.20 4.62 3.56 4.58 3.12 3.93 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.67 3.80 3.90 5.93 3.72 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 3.50 3.95 2.46 3.46 2.59 3.92 3.00 4.92 4.37 4.97 2.30 4.24 3.16 3.17 3.61 3.43 4.14 2.69 4.49 2.72 2.81 3.61 3.45 5.85 4.53 2.61 3.82 3.86 3.50 3.72 5.73 INNOVATION AND SOPHISTICATION FACTORS 12.32 4.84 3.10 2.45 5.55 .06 3.48 4.38 3.50 3.04 3.93 2.90 5.28 2.24 3.55 3.32 4.95 3.13 3.64 3.04 2.85 3.34 4.24 The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 12.51 5.57 3.81 3.) Country/Economy Lebanon Lesotho Libya Lithuania Luxembourg Macedonia.26 3.55 4.63 4.48 2.90 4.88 5.85 4.87 4.76 3.49 3.73 3.46 4.10 2.01 2.50 2.75 2.11 3.30 4.27 4.48 3.91 2.20 3.81 3.07 4.27 3.36 3.03 2.34 4.63 3.96 3.71 2.42 2.21 2.29 5.98 2.55 3.14 3.53 3.83 3.86 4.61 3.50 3.83 3.38 4.85 3.90 4.88 3.81 4.17 3.71 4.47 5.53 3.68 2.79 3.30 2.79 5.20 2.1: 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.30 4.87 3.70 3.89 2.33 4.77 5.89 3.12 3.05 2.76 3.62 2.11 3.98 3.41 3.80 2.59 3.59 4.41 3.60 2.08 4.40 3.19 2.92 3.1.94 4.60 3.40 2.67 3.53 4.56 3.78 3.98 3.84 2.31 2.31 3.84 5.29 3.31 3.62 3.06 4.08 3.65 5.91 3.83 4.56 4.41 4.22 3.96 2.17 5.89 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 4.67 5.92 3.98 3.41 3.65 3.83 4.49 3.47 3.05 2.47 3.96 3.01 3.98 4.48 3.64 5.33 5.98 4.30 3.20 4.24 4.46 2.14 3.03 3.04 2.50 3.99 4.22 2.50 3.40 3.66 3.24 3.05 4.41 2.88 2.00 3.01 2.38 3.69 3.97 3.07 3.01 3.37 4.38 3.73 3.80 3.11 3.93 2.34 2.21 4.56 4.74 4.32 4. Kuwait Kyrgyz Republic Latvia PILLARS 11.30 2.87 2. 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 2.87 4.52 2.27 3.16 3.19 4.96 2.48 3.34 4. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran.53 2.38 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 11.28 2.42 3.06 3.79 3.50 3.15 3.66 3.75 3.01 3.18 3.95 3.06 3.58 2.88 2.57 2.19 5.23 2.93 3.11 2.51 3.21 3.63 3.04 4.77 3.50 4.51 3.94 3.76 3.79 4.36 3.17 4.25 3.79 3.35 2.91 3.81 3.46 3.72 3.07 5.02 (Cont’d. 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 3.36 4.09 3.00 2.79 2.90 3.87 2.76 5.31 5.36 3.73 2.71 3.91 4.27 5.05 3.46 3.52 3.00 3.04 5.32 5.15 3.42 4.93 3.24 2.48 3. 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 3.98 3.97 5.11 3.81 3.10 2.68 2.11 4.49 5. Rep.63 2. Islamic Rep.08 4.48 3.13 3.29 3.00 2.33 4.71 3.84 4.24 4.21 2.56 4.47 3.36 2.09 3.54 3.78 2.98 3.54 4.13 3.91 3.89 3.12 4.23 3.16 3.77 4.98 5.55 4.95 3.14 3.75 3.33 2.55 5.96 4.63 4.91 4.16 3.29 2.36 3.17 2.67 5.08 3.28 3.08 2.65 2.40 3.03 3.34 3.49 3.81 3.33 4.45 3.29 4.65 2.89 2.22 5.20 2.44 4.13 3.91 3. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.75 2.57 2.29 5.52 2.

with government budgets approximately in balance through 2009.1: The Global Competitiveness Index 2010–2011 On the other hand. with a measurable weakening of the assessment of auditing and reporting standards (down from 39th last year to 55th this year).1 per million inhabitants) that is 2nd worldwide. The public does not demonstrate strong trust of politicians (54th). respectively). falling from 34th to 40th this year. The Netherlands moves up two positions to 8th place. maintaining its performance compared with last year. just behind Japan and Sweden. Japan’s rise in the rankings can in large part be traced to the fact that its main areas of weakness. Germany’s labor market remains rigid (126th for the labor market flexibility subpillar). or second to last on this indicator). Denmark (ranked 5th in this pillar) continues to distinguish itself as having one of the most efficient labor markets internationally. and is ranked 1st and 4th. in terms of innovation “output. they have among the best-functioning and most transparent institutions in the world. and 12th. 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. and excellent infrastructure (9th). Germany is ranked 2nd for the quality of its infrastructure. at 7th and 9th positions. Germany has very sophisticated businesses. while placed a bit further behind Sweden this year. improving on a relative basis compared with last year. 6th. On the other hand. A lack of macroeconomic stability continues to be the United States’ greatest area of weakness (ranked 87th). The macroeconomic environment has improved compared with other advanced economies (up from 30th to 23rd in this pillar). there are some weaknesses in particular areas that have deepened since our last assessment. especially goods markets (ranked 8th). have now become concerns for many other countries. just behind the United States. while some other countries in the top 10 have weakened (its score since last year remains unchanged). with a stable performance and rounding out the top 10. this has been exacerbated by significant stimulus spending. the positive result of a strong focus on education over recent decades. They also continue to occupy top positions in the higher education and training pillar. labor. 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). with intense local competition (2nd) and effective antitrust policy. in these two pillars. Finland and Denmark. corresponding to a 137th rank. 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. well-functioning and transparent institutions (11th). These attributes allow Germany to benefit greatly from its significant market size (5th).6 percent of GDP in 2009. Indeed. ranked 3rd. The Netherlands is also characterized by a comparatively stable macroeconomic environment. 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. and therefore hiring workers than in the other Nordics and in most European countries more generally. Its goods market is efficient (21st). the United States had been building up large macroeconomic imbalances. Measures of financial market development have also continued to decline. The country’s excellent educational system (ranked 8th and 10th for the two related pillars) and efficient factor markets. the country has been successful in nurturing its The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. The country’s competitiveness would be further enhanced by introducing more flexibility into the labor market (ranked 80th on this subpillar). as well as corporate ethics (down from 22nd to 30th). German businesses are also aggressive in adopting technologies for productivity enhancements (10th). Their macroeconomic environments are healthy. linked to macroeconomic instability and weaknesses in the banking sector. Japan continues to enjoy a major competitive edge in the areas of business sophistication and innovation. Prior to the crisis. continues to be dragged down by its macroeconomic weaknesses. with repeated fiscal deficits leading to burgeoning levels of public indebtedness. as in past years. for example. In addition. A marked difference among the Nordic countries relates to labor market flexibility. and excellent country credit ratings. Similar to Sweden. dropping from 9th two years ago to 31st overall this year in that pillar. 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). however. are highly supportive of business activity. with more flexibility in setting wages.” this pays off with a rate of patenting per 23 .capita (279. with particularly good marks for its transport and telephony and electricity infrastructure. with high budget deficits over several years (ranked 134th). The evaluation of institutions has continued to decline. and financial markets ranked 11th. 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). narrow interest rate spreads (especially in Finland). Germany has moved up two places to 5th position. Japan moves up two places to 6th overall. continue to be ranked among the most competitive economies in the world. Canada has dropped one place this year to 10th. which have led to the buildup of one of the highest public debt levels in the world (217. firing. Canada benefits from highly efficient markets (with goods. respectively. respectively. The country’s overall competitive performance.There is also increasing concern related to the functioning of private institutions.

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

The European Union has proposed a new strategy—Europe 2020—for smart.13 3. 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. and Luxembourg) top the list and are all in the top 20 most competitive economies in the world.38 4. given that the situation of Greece was particular.25 4. 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. Europe does not provide an environment that is sufficiently conducive to innovation. Overall. As infrastructure and market efficiency levels converge among the main global players.51 4. A strong emphasis is also put on upgrading skills and promoting innovation. and strong innovation are at the core of the US competitive advantage. But the country is quickly catching up on infrastructure and market efficiency and will increasingly benefit from its expanding market size. 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. Member States from Eastern Europe have bet more heavily on open and flexible markets for both goods and labor.32 5. But the sources of their strength vary somewhat.39 5. it is clear that Europe as a whole faces common challenges.16 4. the United Kingdom. nonetheless. 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. Market size. Also.38 4. and developing further information and communication technologies. Europe stands to gain a lot from greater market integration because this would increase the size of markets easily accessible to businesses.99 25 population’s basic skills is similar. Italy. particularly in the case of the Scandinavian countries. These worries seem exaggerated because European economies are generally faring well in relative terms.09 5. Although the differences in situation seem to argue against a one-size-fits-all strategy. 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. but there are five Member States well below this mark. adding to a particularly poor institutional setup and low efficiency of markets. or the rapid pace of technological innovation.07 5. Even as the Europe 2020 strategy was being adopted. Portugal. China shares with mid-range European countries the relative handicap of rigid institutions and very low innovation. the Scandinavian countries. and Spain—were facing unsustainable public deficits that endangered their growth prospects to the point of potential insolvency.37 5. and the Benelux (Belgium. sustainable. Spain has also made a notable effort of investment in infrastructure. Greece shows a dismal performance in 2010 due to the severe deterioration of its macroeconomic environment. But Member States within this middle group also have different strengths.1.14 4.56 5.50 4. More importantly.25 5. The Benelux and the Scandinavian countries compensate for the lack of market size with excellent skill sets. European Commission The economic performance of the European Union (EU) has been the subject of much political unease in past few years. It did.1: The Global Competitiveness Index 2010–2011 Box 3: How competitive is the European Union? JOAQUÍN ALMUNIA. sound institutions. 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. France. Europe as a group lags in all three. flexible labor markets.57 4.49 4.61 4. On the other hand. investing in pan-European energy and transport infrastructure. while Italy and Spain have relied instead on the economies of scale their markets can provide. and inclusive growth. The strategy consists of consolidating public finances while promoting economic integration.37 4. except for a small subset of countries. Germany. The public perception was that a few southern countries—notably Greece. the need for energy efficiency and security. The market appreciation was not accurate.33 5. and. a strong capacity for innovation.74 4. Europe cannot afford to lose out (Cont’d. The table shows the global competitiveness ranking of EU Member States. Netherlands.13 5. There is still scope for increasing structural reforms to increase market flexibility. There has been a concern that Europe is not sufficiently equipped to face new global challenges such as the rise of large competitive economies.05 4.34 4.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . Vice-President and Commissioner for Competition Policy. Most of the other EU Members States are among the top 50 performers globally.42 4.33 4.

1. and level of skills. they must also improve their market efficiency. 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. technological readiness. such as their institutional setting and infrastructure levels.1: The Global Competitiveness Index 2010–2011 Box 3: How competitive is the European Union? (cont’d.) 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. encouraging investment in better 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 . The priorities of the Europe 2020 strategy should contribute to European competitiveness by eliminating further barriers to the European Single Market. and supporting innovation.

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

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

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

The main drag within this pillar remains the security situation (80th. Lower in the rankings. And this year’s performance indicates that the country is making some important improvements to this end. Sri Lanka moves up to 62nd position this year. 102nd. with the country remaining stable at 42nd place this year. with particular concerns about the quality of roads (117th) and ports (97th). And while there is a sense that the quality of education is improv- ing. Sri Lanka achieves higher scores this year in every measure of the public institutions category. Other areas of improvement include health and primary education (35th. up 12) and financial markets (52nd. remains a major challenge for the country despite some improvement in recent years. other trade barriers (112th). and tertiary enrollments. in addition to urgently improving its institutional framework. Still at an early stage of development. namely business sophistication (25th) and innovation (24th). the country’s business environment is relatively sophisticated with developed clusters (34th) and companies operating across the value chain. enrollment rates at all levels remain low (ranked 71st. its excellent transport infrastructure (23rd). which are becoming increasingly important given this level of development. including its relatively large market size (35th) with a particularly large export market. which will become increasingly important as it moves toward the most advanced stage of economic development. Pakistan falls to 123rd place. Corruption is considered frequent and pervasive (107th). Up 16 positions. improving its position from 73rd to 55th in the institutions pillar. Malaysia also does relatively well in more complex categories. In order to improve its competitiveness further. namely its institutions (112th). the perceived level of security is increasing (106th). at 38th position. a rise attributable to improvements across the board. three notable areas of weakness persist. Regulation is perceived as burdensome (120th). although threat of terrorism remains a serious concern (134th). In addition. and a relatively well functioning goods market (ranked 41st). for productivity enhancements. and 109th for primary. Mongolia moves up to 99th place. However. In order to further improve its competitiveness.Vietnam must also continue to strengthen its institutional environment. In addition. respectively). Between 2003 and 2008. particularly for a country at its stage of development. annual GDP growth exceeded 5 percent (slowing to 3. particularly the use of ICTs. The labor market is another area of major concern (104th). likely related to recent problems of social unrest and political instability in the country.2 percent. trade remains hindered by very high import tariffs (8.1. ICT use remains low (101st). Against this largely positive background. the country will require efforts in particular to improve the basic determinants of its competitiveness. As a result of this healthy growth. Vietnam (59th) has improved in 10 of the 12 GCI pillars. The assessment of public institutions continues to deteriorate (70th) after a drop of 30 places over the past four years. crippled by rigidities and high redundancy costs. with the number of procedures (11. Such efforts will then buttress the country’s innovation potential. infrastructure. up five). weakening across most areas measured by the GCI. strained by rapid economic growth. while improving on efficiency-enhancing factors. there are concerns regarding the level of intellectual property protection (109th) and to a lesser extent the respect of property rights (81st). respectively. partly because of the weakness of investor protection in the country (133rd— third to last). However.1: The Global Competitiveness Index 2010–2011 30 and an efficient goods market (27th). Among the country’s competitive strengths are its efficient labor market (30th) and its impressive innovation potential given its stage of development (49th). Sri Lanka also continues to benefit from impressive business sophistication (39th) and innovation (40th). 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. has fallen 2 places this year and 10 ranks since 2006. 90th). 118th) required to start a business making this a daunting process. Following a hectic period marked by high inflation. infrastructure (110th). a dramatic fall in the dong. Thailand. up 13). and burdensome customs procedures (106th). and large swings in interest rates. up 27). the private sector is not seen as being sufficiently accountable (124th). Yet the government budget deficit remains one of the highest in the world. It would also be well served by encouraging greater technological adoption.5 percent in 2009). Going forward. the savings rate declining. The four-year decline in the quality of institutions that pushed Malaysia from 17th in to 43rd has finally come to a halt. with particularly low enrollment rates at the secondary and tertiary levels. indicating that these tools are not yet being sufficiently employed for productivity enhancements in the country. boding well for the future. In addition. Finally. 110th) and time (50 days. 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. On the corporate governance side. and a poor credit rating (111th). Sri Lanka needs to bolster the foundations of its competitiveness. while Bangladesh and Cambodia remain quite stable at 107th and 109th. and macro- The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . Thailand continues to benefit from its relatively large domestic and export markets (23rd). the efficiency of its labor market (24th). secondary. The macroeconomic environment has worsened considerably. contributing to rising public debt and pointing to a need to continue efforts toward macroeconomic stability. Among other things. Malaysia will need to improve its higher education system. which matter the most for advanced economies. with debt and deficits going up. the macroeconomic situation improved sharply (85th.

3 percent. While Bolivia. the reduced debt levels (with longer maturity profiles) of most countries in the region. Barbados consolidates its competitiveness standing in the rankings at 43rd. despite rising educational attainment rates and government efforts to improve educational quality. 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. coupled with their increased foreign reserves. the GCI highlights a number of areas in need of improvement. respectively). a first-class educational system (ranked 7th and 27th for primary education and higher education and training. improving its innovation potential is increasingly becoming a priority as the country approaches the most advanced. have been instrumental in reinforcing their resilience and ability to support their economy with stimulus measures. 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. In particular. and. producing all along the value chain (31st). 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. beyond setting the region on a more sustainable growth path in the long run. and Paraguay post the largest improvements. Brazil (58th). trailing behind most of the world in competitiveness— these include Ecuador (105th). two countries that require improvements across virtually all areas captured within the GCI. Paraguay (120th). increased market efficiency and openness. These results confirm the important strides the region has made in recent decades toward sounder fiscal management.4 and 100. have helped it weather the global economic crisis that began in 2008. with an important capacity for innovation (33rd). The country has been at the forefront of market liberalization and opening. 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). the sophistication and innovation potential of its business sector (59th The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. and export diversification. including through increased spending. The regional ranking closes with Nepal (130th) and Timor-Leste (133rd).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. to a lesser extent. a part of the US$8. Also a large number of regional economies continue to appear in the bottom part of the rankings. Panama (53rd). respectively). with notably high deficit and debt levels (8. and Uruguay (64th) are also included among the top half of the rankings. many other regional economies improve slightly or remain stable. Bolivia (108th). Beyond its tiny market size (133rd).26 On a more negative note. Additionally. in 2009). respectively. Up one place since last year.1: The Global Competitiveness Index 2010–2011 economic environment (133rd) as well as education at all levels.27 Further efforts should be made to improve teaching quality and training as well as secondary and tertiary enrollment rates (90. thanks to its excellent institutional environment (22nd). Chile remains the most competitive country in Latin America and the Caribbean. innovation-driven stage of development. 31 . with a very convincing performance resting notably on solid basic requirements (37th) and efficiency enhancers (35th).6 percent. including the country’s macroeconomic stability (91st). the region must improve significantly in order to catch up with international best practices and fully leverage its competitiveness potential. one of the most sophisticated financial markets (41st). All of the above. Colombia (68th). and Peru (73rd).6 percent and 52. and the largest pension industry in the region. 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.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. Chile. Indeed. Nicaragua (112th). Puerto Rico (41st) confirms its strong position in the region. corresponding to 56th and 43rd place. together with Mexico (66th). and welldeveloped infrastructure (23rd). Closely following Puerto Rico and ranked 3rd in the region.25 At the same time. Costa Rica. these include Brazil. which is considerably lower at 2. when compared with the rest of the world.8 percent in 2009. Although regional GDP contracted by 1. respectively). and Uruguay. Also notable competitive strengths are the island’s quality higher education and training system (38th) and its wellfunctioning goods markets (34th). among other areas. 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). displaying a dynamic and sophisticated business sector (27th). it is expected to grow by 4 percent in 2010. The liberalization process took place in the context of sound macroeconomic policies (27th for macroeconomic stability) and transparent institutions (28th in the institutions pillar). These attributes have not only spurred growth over the last 20 years. Costa Rica (56th). and Venezuela (122nd).6 percent of GDP. Panama. Stable at 30th. resulting in very efficient goods and labor markets (28th and 44th.

up 16 places) and technological readiness (41st. the macroeconomic environment in the country remains worrisome. the quality of the country’s infrastructure (78th) and the development of the financial market (85th) may represent potential bottlenecks going forward. respectively. respectively). up 18 places). and a sophisticated and innovative business sector (ranked 32nd and 35th. 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. and reducing income inequality. Moreover.28 Brazil is fairly stable at 58th.18 percent in 2009). respectively). climbing to 53rd this year thanks in large part to a more positive assessment of infrastructure quality (44th. An important capacity to leverage technology (ranked 50th for technological readiness).1: The Global Competitiveness Index 2010–2011 32 and 53rd. the competitiveness picture for Brazil remains mixed. liberalizing and opening the economy. Panama posts one of the largest improvements in the region. with increasing levels of public debt and a widening The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . 4. 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. the focus on new technologies (including biotech and aerospace) has been highlighted as a priority of the new Chinchilla administration. for business sophistication and innovation). up 12 places from 2009) and a relatively well functioning higher education system (58th). its fairly developed infrastructure (53rd). the soundness of the macroeconomic environment (108th) remains a problematic area amid increasing security concerns in the country (81st). and a strong educational system (ranked 47th for health and primary education and 40th for higher education and training). its prowess in absorbing technology (ranked 7th for the variable on FDI and technology transfer).5 percent. and its increase in ICT penetration rates.4 percent. notably in its on-the-job training component (38th). up 21 places from last year). among other dimensions. after following an impressive upward trend for the last couple of years (up 16 positions between 2007 and 2009). a high interest rate spread (35. after having climbed 13 ranks from 2006 to 2009.2 in 2009). The country’s strong position rests on firstclass quality education (ranked 23rd and 43rd for primary education and higher education and training. Brazil displays one of the most developed and sophisticated financial sectors in the region (50th).3 vs. 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. In addition. Despite losing the top position in Central America to Panama. the economy has started to grow again in 2010. 101st). The country’s recent dynamism in the rankings has reflected the remarkable strides made in the past 20 years toward macroeconomic stability. with important strengths accompanied by worrisome weaknesses and challenges that must be tackled for Brazil to fully tap its enormous competitive potential. 84th). with notably low savings rates (15 percent. respectively). 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 –0.1. Costa Rica remains quite stable at 56th position. despite the progress made toward fiscal sustainability. On a more negative note. with limited trust of politicians and in the rule of law. Moreover. which operates high on the value chain (ranked 28th in the variable measuring value chain breadth). providing the efficient and dynamic business sector (ranked 31st for business sophistication) with important economies of scale. Leveraging its well-educated labor force. insufficient macroeconomic stability (at 107th) remains a cause of concern. The country also continues to benefit from well-developed financial markets (21st). 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. with an expected annual growth rate of 5. coupled with fairly efficient infrastructure by regional standards (ranked 62nd. and strategic geographic position. 136th). Last but not least. Among its solid competitive advantages are its large market size (10th). Uruguay overtakes Mexico for the first time in the rankings. On the other hand. Goods and labor markets display important rigidities that hinder the allocation of resources to their most efficient use (ranked 114th and 96th. Strengthening the quality of its educational system (ranked 89th and 82nd for primary education and higher education and training. good governance standards.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. the quality of institutions remains poorly assessed at 93rd. its sound macroeconomic management in recent times of crisis. The country’s good showing rests on its strong institutions and governance standards (39th). Notwithstanding these strengths. This advance reflects the country’s recent important investment in upgrading its infrastructure. Box 4 examines more in depth the infrastructure challenge for Brazil and Latin America at large. and relatively high public indebtedness (48 percent of GDP. At 64th. with a slight improvement in score (4. fairly transparent institutions (51st). In addition. However. respectively). increased macroeconomic stability (30th. and a large basis on which to absorb and introduce process and product innovation (ranked 44th and 42nd for technological adoption and innovation. Further.

05 3.74 3.93 4. ranked 18th) confirms the magnitude of the challenge facing Latin America and the Caribbean in upgrading regional infrastructure to international best standards. Calderón and Servén estimate that upgrading regional infrastructure to Korea’s levels could increase annual GDP growth rates by 1.02 3.90 2.44 4.12 4.73 2. Public investment in infrastructure was the main victim of the stabilization programs implemented in the 1990s in most countries.51 3. Korea.59 3.92 2.The Global Competitiveness Index highlights the key importance of well-developed and efficient infrastructure networks for countries’ long-term growth.83 4.08 2.04 2.2 As a consequence.03 4.31 4.63 3.44 5.73 3.59.27 3.59 2.76 4.01 3.17 2. The rather large gap between the regional average (3.69 4.92 5. together with those of selected relevant comparators. 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 6.47 3. The quality of infrastructure appears to be a shared concern for Latin America and the Caribbean.49 3. energy.1 The adjustment was particularly dramatic because Brazil had increased its current expenditures. This challenge is particularly relevant for large emerging markets such as Brazil.93 4.83 2.29 4.55 2.96 2.12 4. and transport).95 3.06 2.49 3. China. public investment in infrastructure in the region fell from 3 percent of GDP in 1988 to 1 percent of GDP in 1998.37 4.82 4. Rep. infrastructure development in the region has lagged behind that of the East Asian tigers or even China over the last two decades.30 4. 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.73 4. 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. The idea that the private sector could step in and fill the financing gap did not fully materialize.9 3.10 4.75) and top-ranked Hong Kong (6. among others: according to the World Bank.14 5. with few exceptions. Furthermore. and therefore needed to make even deeper cuts in long-term investment.54 3.90 2. placing infrastructure among the basic requirements of competitiveness.48 3.49 2.58 2. because cutting this type of investment spending proved easier than cutting current expenditures to cover salaries and pensions.75 3.45 4. and India.77 5.94 4.82 2. Colombia.77) or Korea (5.50 3.49 3.94 3.82 (Cont’d. these investments were concentrated in a few selected countries (Argentina. Brazil.3 with severe implications in terms of economic growth and poverty reduction.15 3. the private funds did not fully compensate for the shortfalls in public investment.69 5.44 4.53 4. Chile.86 3.73 2. and Mexico) and sectors (telecommunications.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .24 3.96 3. Peru.91 3.78 4.18 3.10 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 6.8 percent while reducing inequality by 10 to 20 percent.76 4. 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.48 3.56 4.46 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 6.4 to 1.53 4.28 3.62 3.1: The Global Competitiveness Index 2010–2011 Box 4: The infrastructure challenge in Latin America: The case of Brazil 33 B.08 4.59 5.78 2. Transport infrastructure 2010–2011 1. including the regional and BRIC averages.38 2.85 5.39 3.51 4.4 Table 1 displays the rankings and scores of regional economies in the GCI infrastructure pillar this year.28 3.76 4.13 4.

distributed as follows: R$171 billion for social infrastructure.000 kilometers of navigable waterways. as highlighted by the GCI. ranked Brazil 2nd in the sample. the Brazilian government announced a PAC 2.1: The Global Competitiveness Index 2010–2011 Box 4: The infrastructure challenge in Latin America: The case of Brazil (cont’d. On March 29. 2007 for more information on the IPIAI’s methodology and Brazil’s performance. Although the country has improved eight places since 2008 for the overall quality of its infrastructure. logistics. and R$58 billion for logistics.9 Figure 1 shows Brazil’s performance in the IPIAI. a fairly well developed local capital market. 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. This bodes well for the country’s capacity to increasingly involve the private sector in financing and managing infrastructure networks. 5 Resende 2009. Greater private investment in infrastructure should also be promoted in Brazil. it has been said that better coordination of responsibilities among federal and state authorities is necessary to achieve higher investment in infrastructure. 4 Calderón and Servén 2004. energy. notably through friendlier and more predictable regulations. with a similar showing for its transport (67th) and electricity and telephony infrastructure (65th). aimed at increasing the coverage and quality of infrastructure networks together with better access to water. with respect to the best performer in that index. earmarking a total of R$504 billion in investment for the 2007–10 period. a fairly good track record in private investment in infrastructure. 9 See Mia et al. with few projects cancelled or in distress. its underdeveloped railroads.6 Table 2: An assessment of infrastructure quality in Brazil Rank Score 2nd pillar: Infrastructure 62 4. 3 According to Fay and Morrison (2005). 8 See HSBC 2010.98 9 3.42 Mobile telephone subscriptions 76 89. (Cont’d. thus complementing public funding and ensuring that infrastructure can truly support Brazil’s competitiveness in the years to come.001. launched in 2007.02 A.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. Upgrading infrastructure has been a key element of the Lula administration’s ambitious Growth Acceleration Program (PAC). air transport infrastructure (93rd).94 93 3. the unexploited potential of its 48.1.5 Table 2 provides an overview of Brazil’s infrastructure as assessed within the GCI infrastructure pillar. transport. and energy. Brazil’s experience in infrastructure development is an example of the challenges countries can face in enhancing this critical competitiveness driver. with much of the financing going to housing (notably to first-time home owners) rather than to the improvement of physical infrastructure. The Infrastructure Private Investment Attractiveness Index (IPIAI).94 123 2. This assessment reflects the appalling state of transport infrastructure in the country.28 Quality of electricity supply 63 5. developed by the World Economic Forum in 2007 and benchmarking 12 Latin American economies for their friendliness to private investment in infrastructure. Transport infrastructure 67 3. Although PAC has been a significant step in the right direction. are the quality of port infrastructure (123rd). Chile.59 trillion to be invested in the 2011–14 period with emphasis on high social sensitivity areas. roads (105th). 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. such as the energy blackout of 2001.79 105 2. 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. 6 See Resende 2009 for a detailed analysis of Brazil’s state of infrastructure and main flaws. it still ranks a middling 62nd in this pillar.76 84 3. and roads (see Olson 2010).06 Fixed telephone lines 62 21. 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. electricity. and a relatively high level of private investment in infrastructure projects over the 1994–2005 period (2.) role in the global economy and for which poor infrastructure quality results in higher logistics costs and inefficient patterns of interregional and international trade. Among Brazil’s notable competitive advantages underscored by the IPIAI in this regard were: a very low political risk. trade. 2 See Fay and Morrison 2005. private investment in physical infrastructure has been limited and has failed to make up for scarce public resources and attention. 2010. to a lesser extent.8 What is more. railroad infrastructure (87th) and mobile telephony (76th).2 percent of GDP). The most problematic areas. with a total budget of R$1. including housing and health. its congested ports and airports. Yet. Electricity and telephony infrastructure 87 1. with little unrest or expropriation risk. and its costly and underdeveloped telephone infrastructure.79 65 4. and the sample average excluding Chile. sanitation. housing. fewer than half of its targets have been met.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . and. public transit. transportation. R$275 billion for energy-related projects.79 Experiences over the past decade or so. risk-mitigation mechanisms.7 PAC was conceived as an integrated approach to infrastructure improvement. have raised awareness among both the public and the government of the importance of quality infrastructure for competitiveness. and protected returns on investment. three years after the launch of PAC. and balanced development across Brazilian states.

Mexico has been among the countries in the region worst hit by the global economic downturn. it is estimated to grow by 4.19. with burdensome regulations. 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. Thanks in particular to the remarkably sound fiscal policies implemented in the past two decades (28th for macroeconomic stability).) 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. especially labor market inefficiencies (119th). 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 . 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). while worrisome rigidities persist in factor markets.30 Although Mexico’s GDP shrank significantly in 2009 (–6. and remittances). With an unchanged score of 4. In particular. clearly demonstrating the need for continuous improvement in order not to lose ground in competitiveness vis-à-vis the rest of the world. Finally.3 percent of GDP in 2009 as opposed to 0. with increasing security concerns (134th.2 percent in 2010. in large part attributable to its close association with the US business cycle (including links through financing. trade.Figure 1: Brazil in the IPIAI Macro environment 7 6 Government readiness for private investments Legal framework 5 4 3 1. and a lessthan-efficient use of talent (122nd). Notwithstanding these strong attributes and the liberalization and steps undertaken in recent years to improve the business climate and make the economy more efficient. Mexico drops six places from 2008 to 66th. high payroll taxes and social contributions (ranked 103rd for flexibility). The reliability and quality of institutions continue to receive a poor assessment at 106th. likely related to recent spiraling drug-related violence and civil unrest. Mexico’s factor markets remain rigid and represent a structural impediment for the country’s growth prospects over the long term.5 percent). 35 public deficit (2.1 percent in 2008).1: The Global Competitiveness Index 2010–2011 Box 4: The infrastructure challenge in Latin America: The case of Brazil (cont’d. down nine places from last year) among the business community. 2007.. the labor market is ranked at a dismal 120th place. Mexico also has a number of important competitive strengths that are similar to those of Brazil.

Colombia displays competitive strengths in the quality of its macroeconomic environment (50th). coupled with liberalization of its goods and labor markets. respectively). or plans to adopt.5 percent between 2002 and 2008). its institutional environment is among the worst in the world at 132nd. On the other hand. placing it 41st in the sample). respectively. respectively). The competitiveness picture provided by the GCI is rather mixed: important strengths. in infrastructure quality (up nine places to 88th) and higher education and training (up five places to 76th).7 percent GDP growth between 2002 and 2009). 128th. Venezuela (122nd) continues its fall in the rankings. upgrading the quality of and access to the educational system at all levels (111th for primary education and 76th for higher education and training). further action is sorely required to reinforce Mexico’s competitiveness fundamentals. Fairly stable at 68th. The country has improved a total of thirteen places since 2007. and fairly sophisticated businesses (61st). and financial market development). On the other hand. In particular. On a related note. the institutional environment is still characterized by weaknesses at 103rd. while factor markets continue to suffer from extensive inefficiencies and rigidities. which all hinder their efficient functioning (ranked 135th. with a notably dismal assessment of the institutional environment (139th. Argentina is fairly stable at 87th. to 56th) and.9 percent. while the macroeconomic environment The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . and 126th.3 percent rate for this year. with an estimated 6. and 132nd for goods market. including improving the poor institutional environment (96th).1: The Global Competitiveness Index 2010–2011 36 of an economy moving toward the most advanced stage of development. respectively). do not seem to compensate for the serious and enduring shortcomings undermining Argentina’s long-term growth potential. large market size (32nd). respectively). respectively). 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. mirroring its impressive growth performance in recent years (an average of 6. Peru continues its upward march in the rankings with another five-place progression to 73rd place (up by six places in a constant sample). Venezuela’s competitiveness landscape appears to be worsening every year. respectively). and access to foreign markets (59th). the poorly rated higher education and training system (79th) does not seem to be producing a highly skilled labor force. with continuing concerns over security (138th). 138th. with improvements notably in labor market efficiency (up twenty-one places. and is now behind all other Latin American and Caribbean countries and featuring among the least competitive countries of the world. notably scientists and engineers (89th). and is not sufficiently conducive to technology adoption and innovation. The country can notably count on flexible goods and labor markets (ranked 69th and 56th. complementing its relatively large domestic market (44th). 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. well-developed financial market (42nd). Among the elements underpinning Peru’s strong competitiveness showing is the competent macroeconomic policy pursued over the last decade. 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. Peru faces a number of competitiveness challenges that must be addressed going forward.1. a number of competitiveness-enhancing reforms addressing many of these shortcomings. and efficient use of the revenues from the country’s rich natural and mineral resources. the worst in the entire sample) and factor markets efficiency (139th. Further investment is required to upgrade infrastructure networks to first-class standards (ranked now at 79th). for goods market efficiency. 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. and financial market development. In particular.6 percent of GDP in 2009. red tape. factor markets continue to suffer from worrisome rigidities. particularly the goods market (103rd). with little public trust of politicians and deep concerns about the rule of law. notwithstanding the important strides realized by the last administration in social pacification. Peru was one of the few countries whose economy did not contract in 2009 but continued to grow moderately at 0. to a lesser extent. Although the current administration has adopted. efforts to encourage trade and FDI. 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. The economy is expected to grow strongly again in 2010 and beyond. and reinforcing the capacity to absorb technology and generate innovation (ranked 74th and 110th for technological readiness and innovation. Despite important investment in education and basic services. with moderate public indebtedness levels (26. successfully adopting technology and enhancing innovation (ranked 63rd and 65th for technological readiness and innovation. labor market efficiency. and lack of competition. labor market efficiency.

the country will also have to foster the use of latest technologies (36th) as well as business sophistication and innovation. with average growth rates falling from 6. 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. the country continues to occupy low ranks in the health and primary education (74th) and higher education and training (51st) pillars. as well as one of the wealthiest. Low educational out- The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. Further. in addition to a more efficient labor market (66th). With a projected growth rate of 18. Qatar. improvements are taking place from a low level. down from 16. the country faces important challenges going forward. However. the country’s macroeconomic environment emerged stronger from the crisis. MENA was less affected by the downturn than some other regions because it maintained weak interlinkages with global markets. some room for improvement remains with respect to the use of latest technologies (42nd). 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. and sophisticated businesses.1: The Global Competitiveness Index 2010–2011 continues to deteriorate (now ranked 113th) despite windfall oil revenues in recent years. The country’s main strength remains the excellent—and improving—capacity for innovation (6th). high government efficiency. the country lacks companies that demonstrate sufficient sophistication and innovation potential (129th and 123rd for business sophistication and innovation. nine places up in a constant sample) continue to feature in the very bottom of the rankings. all remaining countries in the region with the exception of Tunisia (and new entrants Iran and Lebanon) decline. which resulted in a strong a solid institutional framework. have contributed to this year’s better positioning. improving infrastructure in the country. Its strong competitiveness rests on solid foundations made up of a high-quality institutional framework. Despite efforts to strengthen its financial sector. Bolivia (108th. trailing behind most of the world in competitiveness. widespread red tape.2 percent in 2009. Finally. and an efficient goods market (12th). Additionally. In international comparison. moving from 13th to 8th place. Saudi Arabia moves up by seven places to take the second-highest place in the region at 21st. in particular a better assessment of the security situation by business (19th) and a stronger corporate governance framework (26th). Overall. Given its high wage level. Health and education do not meet the standards of countries at similar income levels. with its growth rate slowing to 9 percent in 2009. up sixteen places in a constant sample). the country was relatively unharmed by the global economic crisis. 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. and Paraguay (120th. The favorable financial environment (14th) and. many countries put massive stimulus packages into place. enters the top 20 this year and reaffirms its position as the most competitive country in the MENA region. the country is the fastest-growing economy in the world. Major common flaws in the quality of their institutional environment. 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. Both these areas. the Middle East and North African (MENA) region experienced a downturn during the global economic crisis. Low levels of corruption and undue influence on government decisions. Israel ranks 24th in this year’s GCI. 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.Middle East and North Africa Following a relatively prosperous period. the government enacted a massive stimulus package. efficient markets. a stable macroeconomic environment (8th). 37 . although it led to a deterioration of macroeconomic stability as the budget balance moved into deficit. As much as the recent improvements are commendable. poor educational standards and infrastructure. ranked 17th. up three positions after having suffered losses in competitiveness over the past years. Nicaragua (112th. Compared with many other economies. including rampant crime and violence. and inefficient factor markets weaken these countries’ competitiveness fundamentals and should be addressed as a priority going forward. Despite posting important improvements since last year. The country has witnessed a number of improvements to its competitiveness in recent years. ranked 10th overall. and excellent security are the cornerstones of the country’s solid institutional framework. While all the Gulf countries except for the United Arab Emirates (UAE) move up in the rankings.1 in 2008 to 2. Improvements to the institutional framework (up by 11 places to 21st). contributed to maintaining macroeconomic and financial stability. a trend that has been observed over recent years. As a result. the availability of venture capital (10th) have further contributed to making Israel an innovation powerhouse. its trustworthiness and confidence is assessed as low by the business community (62nd). seven places up in a constant sample). Going forward. which helped to dampen the recession and in many cases also led to improvements in infrastructure. This high growth. Last but not least. with soundness of banks ranked 46th and legal rights of borrowers and lenders underprotected (103rd).4 in 2008.5 percent for 2010. While some progress is visible in health outcomes as well as in the assessment of the quality of education. in particular. respectively).

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

which provides easy access to loans (36th) and other financial services (39th) and is buttressed by a solvent banking sector (4th).7 percent in the GCI 2009–2010). coming out of the crisis. the IMF predicts GDP growth of 4. South Africa. but.8 percent in 2008). The regional ranking closes with Syria (97th) and Libya (100th). although inflation has been rising from an already high level (16. and poor labor-employer The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1. these were not exacerbated in a major way during the crisis. and a welldeveloped financial sector.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. as well as a fragile macroeconomic environment characterized by poorly managed public finances. and telephony (128th). As in previous years. the country is affected by lack of transparency (129th). and financial markets. indicating high confidence in South Africa’s financial markets at a time when trust has been eroded in many other parts of the world. The country ranks 97th in labor market efficiency. Egypt continues to struggle with serious challenges related to macroeconomic stability. at 54th overall. as enrollment rates in primary and secondary education remain low (105th and 86th. It also does well on measures of the quality of institutions and factor allocation. respectively). Yet the biggest challenges are associated with reforming the institutional environment related to both public institutions and corporate governance. with inflexible hiring and firing practices (135th). the accountability of private institutions (3rd). which stands out positively in regional comparison. The country can depend on a healthy and welleducated population with advantages in the quality of education. Challenges to be addressed include dismal infrastructure for transport. Other strengths include efficient goods markets.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. Indeed. The GCI results point to a number of strengths upon which Lebanon could build. as reflected in its 99th position overall. Although both countries have stable 39 . While it has dropped somewhat in rank since last year. Furthermore.6 percent of GDP in 2009 (6. Sub-Saharan Africa Africa has experienced impressive growth over the past decade. Included for the first time in the GCR. Competitiveness-enhancing reforms could help sustain its growth momentum. as well as underdeveloped infrastructures and low levels of technological adoption.2 percent. 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. and low efficiency of government operations (122nd). which corresponds to the 135th rank. Lebanon’s inclusion into the GCR will provide a first step toward creating reform momentum in the country for the benefit of the population. high undue influence (130th). among others. such as intellectual property protection (27th). However. unlike in other countries. despite some improvements. this excellent educational system should be put at the disposal of an even larger share of the population. where it achieves 7th place. a lack of flexibility in wage determination by companies (131st). in order to further enhance its competitiveness it will need to address some weaknesses.7 percent in 2010 and well above 5 percent for the next few years for sub-Saharan Africa. Particularly impressive is the country’s financial market development (ranked 9th). South Africa also does reasonably well in more complex areas such as business sophistication (38th) and innovation (44th). Lebanon occupies the 92nd position in the rankings. the solvency of Egypt’s banking system. On the other hand. they face numerous challenges related to the inefficiency of their goods.macroeconomic environments (especially Libya). continues to raise concerns. and in the quality of primary education (12th). and has weathered the recent global economic turmoil relatively well. labor. reflecting a high intensity of local competition. property rights (29th). More generally. Presently. despite such concerns. and there have been measurable improvements across specific areas in a number of other African countries. electricity. and the budget deficit remained stable. Government debt has been reduced to about 80 percent of GDP. While a number of attributes therefore make South Africa the most competitive economy in the region. at 6. requiring efforts across many areas to place the region on a firmly sustainable growth and development path going forward. growth rates rebounded to 9 percent in 2008 and remained unaffected by the economic crisis in 2009. South Africa still benefits from the large size of its economy. some African countries continue to fare quite well. Lebanon ranks an excellent 16th for the quality of education. Furthermore. particularly by regional standards (it is ranked 25th in the market size pillar). benefiting from good scientific research institutions (ranked 29th) and strong collaboration between universities and the business sector in innovation (ranked 24th). there have been some significant declines registered in countries that were previously making strides ahead. and goods market efficiency (40th). sub-Saharan Africa as a whole lags behind the rest of the world in competitiveness. compared with 11. South Africa and Mauritius remain in the top half of the rankings. remains the highestranked country in sub-Saharan Africa. At the same time. with a particular strength in math and science education. Following its low growth performance toward the middle of the decade. its performance has in fact remained stable and the decline reflects improvements in other countries. following the downward trend of previous years.

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

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

Grossman and Helpman 1991. 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. South Africa. business. it is important to bear in mind that economic crises are short term in nature and related to the business cycle. but when California sells the same kind of output to Nevada. Notes 1 The G-20 economies include Argentina. Rodrik and Rodriguez 1999. increasing from 125th last year to 113th this year. Acemoglu et al. and Feyrer 2009. 20 Probably the most famous theory of stages of development was developed by the American historian W. 19 See Romer 1990. For example. 2002. The assessment of public institutions. 6 See de Soto 2000. where Zimbabwe continues to be among the lowestranked countries. the GCI provides a platform for dialogue among government. according to Trajtenberg (2005). and innovation potential. as their development is based on strong productivity fundamentals. 7 See de Soto and Abbot 1990. 2004 for an extensive list of potential robust determinants of economic growth. Gramlich 1994. with the aim of boosting living standards of the world’s citizens. the GCI has been used by an increasing number of countries and institutions to benchmark national competitiveness. Russia. Conclusions This chapter has discussed the results of the Global Competitiveness Index. and Swan 1956. the national accounts register the transaction as domestic (so Nevada is a domestic market of California). Canada. Sala-i-Martin et al. Saudi Arabia. and Easterly 2002. Japan. Mexico. 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. In other words. Please see Chapter 1. and the United States. 16 A general purpose technology (GPT). for example. and the security situation (up from 85th to 66th). China. 13 See Schultz 1961.1. government inefficiency (up from 124th to 105th). Turkey. W. when Belgium sells goods to the Netherlands. 2 The first version of the Global Competitiveness Index was published in 2004. 21 Some restrictions were imposed on the coefficients estimated. economic performance. Rep. and Sala-i-Martin and Subramanian 2003. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . 14 See Almeida and Carneiro 2009. which can be improved only through an array of reforms in different areas that affect the longer-term productivity of a country. Germany. More specifically. 2005. and all the weights had to be non-negative. Solow 1956. and Kremer 1993. And despite efforts to improve its macroeconomic environment—including the dollarization of its economy in early 2009. respectively). Frenkel and Romer 1999. 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). Since its introduction in 2005. Rostow in the 1960s (see Rostow 1960). Examples of GPTs have been the invention of the steam engine and the electric dynamo. while competitiveness is very much about a country’s development potential over the medium to long term. The GCI aims at capturing the complexity of the phenomenon of national competitiveness. India. 9 See Kaufmann and Vishwanath 2001. 17 See Sachs and Warner 1995. Lucas 1988. and Aghion and Howitt 1992. 2001. and official markets that continue to function with difficulty (particularly with regard to goods and labor markets. therefore. Becker 1993.. On the other hand. low educational enrollment rates. technological adoption. 11 See Fischer 1993. and civil society that can serve as a catalyst for productivity-improving reforms. Amin 2009. See Sala-i-Martin and Artadi 2004. the three coefficients for each stage had to add up to one. Zingales 1998. 15 See Aghion and Howitt 1992 and Barro and Sala-i-Martin 2003 for a technical exposition of technology-based growth theories. ranked fourth to last at 136th overall. 10 See Aschauer 1989. Brazil. and Kaplan 2009 for country studies demonstrating the importance of flexible labor markets for higher employment rates and. France. although there have been some improvements in individual areas.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. Korea. Italy. In the present context. 8 See Shleifer and Vishny 1997. 5 See Easterly and Levine 1997.1: The Global Competitiveness Index 2010–2011 42 Zimbabwe continues to be among the lowestranked countries included in the GCI. These areas range from good governance and macroeconomic stability to the efficiency of factor markets. 3 Schumpeter 1942. 2002. countries that have competitive strengths in a variety of areas can be expected to exit the crisis faster and to rebound much more strongly. 12 See Sachs 2001. while still weak. covering 139 economies from all of the world’s regions. Australia. the national accounts register the transaction as an export (so the Netherlands is a foreign market of Belgium). 1994. Alesina et al. among others. Canning et al. However. 4 See. Indonesia. 18 This is particularly important in a world in which economic borders are not as clearly delineated as political ones. Specific areas of improvement are ethics and corruption (up from 122nd to 103rd). the United Kingdom. Weaknesses in other areas include health (ranked 135th in the health subpillar). some major concerns linger with regard to the protection of property rights (ranked 136th) and undue influence (126th). Here we adapt Michael Porter’s theory of stages (see Porter 1990). has improved measurably. ranked 130th and 129th. Rodrik et al. the European Union.

May 29..All countries that export more than 70 percent of mineral products are considered to be to some extent factor driven. Cambridge. 1997. Washington DC: IMF Kaplan. DC: IMF. New York: MacMillan. N. and R. Romer. 2009 for further details. 27 Brandt 2010. D. R. Available at http://laborsta. Endogenous Growth. Servén. S. Growth and the Size of Countries. Taking Advantage of Tailwinds. 1994. volume 1.org/external/pubs/ft/ weo/2010/01/weodata/index. De Soto. S. 1994. Washington. and J. 1. DC: The World Bank. Barro. “The Colonial Origins of Comparative Development: An Empirical Investigation. H. Chapters 3 and 4. Aghion P. Robinson. “Africa’s Growth Tragedy: Policies and Ethnic Divisions. June 28. based on the income criteria. with Special Reference to Education. International Differences in Growth Rates. H.to long-term nature.php?q=node/5247. 1993. Grossman. “Enforcement of Labor Regulation and Firm Size. A. ———. 2010a. and P.org/menus/ countries. A. Easterly W. DC: IMF. 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D. 1990. 2009. “The O-Ring Theory of Economic Development.intracen. A. liquefied gas. LABORSTA International Labour Office database on labour statistics. MA: National Bureau of Economic Research. Amsterdam: Elsevier. April.1: The Global Competitiveness Index 2010–2011 22 In order to capture the resource intensity of the economy. 1991. Morrison. Carneiro. 1993. and J. MA: MIT Press. “Does Trade Cause Growth?” American Economic Review 89 (3): 379–99.. 3rd edition. Available at http://www. ———.” In P. 14910. Helpman. 1st edition. Fischer. Durlauf. 29 For a more detailed analysis on Brazil’s competitiveness enhanced reforms and policies.com/ uploaded_files/HSBC_EIU_%20report_Brazil_Unbound.” NBER Working Paper No. Private Sector and Infrastructure Unit – Latin America & the Caribbean Region. “Infrastructure and Economic Growth. “Trade and Income: Exploiting Time Series in Geography. MA: MIT Press. Abbot. World Economic Outlook: Rebalancing Growth. G. 25 IMF 2010b.” Quarterly Journal of Economics 108 (3): 551–75. Kremer. this category also contains all metal ores and other minerals as well as petroleum products. Economics Department Working Papers No. Russia. S. “Reversal of Fortune: Geography and Institutions in the Making of the Modern World Distribution of Income. G. Further information on these data can be found at the following site: http://www. ———. ———. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 43 . and X. “Job Creation and Labor Reform in Latin America. D.” VoxEU. Fay. 1992. Brandt. Available at http://www. O. Johnson. Cambridge. Phelps. May.” American Economic Review 91: 1369–401. 1992. and P. and I. D. Cotarelli. 1993. “A Model of Growth through Creative Destruction. The data used cover the years 2004 through 2008. Chicago: University of Chicago Press. Cambridge. Cambridge. Stages of development are dictated uniquely by income for countries that export less than 70 percent minerals. 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“Corporate Governance. 44 Rodrik.” Mimeo. J. Arruda. Hampshire: Palgrave Macmillan.” The Global Competitiveness Report 2007–2008. Available at http://riotimesonline..” Revista de la CEPAL 95 (August): 8–30. Swan. 2007.1: The Global Competitiveness Index 2010–2011 Lucas.org/news/fullstory. 2003. P. 2009. D. 2010. 1988. and F. 1956. Rodriguez. New York: Macmillan. W. February 10. R. Cambridge. I. Doppelhoffer. 2008. “The Global Competitiveness Index. Blanke. Subramanian. Sala-i-Martin. “Growth in a Time of Debt. Geiger.. and R. Artadi. J. Geiger. ed. 1950. 1990. Geneva: World Health Organization. “Innovation Policy for Development: An Overview.” April. Rodrik.com/news/rio-politics/ brazil-announces-pac-2/.” Nobel Symposium on Law and Finance. 9804. 1998. 2009. OECD Observer. Hampshire: Palgrave Macmillan. M. “The Global Competitiveness Index: Measuring the Productive Potential of Nations. M. 1995. New York: Harper & Row. M. “Trade Policy and Growth: A Skeptics’ Guide to Cross National Evidence. Tel Aviv University. Blanke. Estrada. Subramanian. and I. 2010. Schumpeter. Available at http://www. Warner. June. New York: The Free Press. 2009. “The Global Competitiveness Index: Contributing to LongTerm Prosperity amid the Global Economic Crisis. 2010.8599. Drneziek Hanouz. 2009. Sachs. Sachs. 7081. L. Available at http://www. and F. The Global Competitiveness Report 2009–2010. K. Resende. W. Sala-i-Martin. Schultz. Mia. M. J. X. World Economic Forum. A. 1956.” Paper prepared for American Economic Review Papers and Proceedings. The Stages of Economic Growth. Shishiptorova. “Brazil Announces PAC 2. V. 2001. and A. Latin American Economic Outlook 2010. 31–39. “Endogenous Technological Change. “Addressing the Natural Resources Curse: An Illustration From Nigeria. Olson. 1995.com/news/ rio-politics/pac-brazils-growth-program-to-boost-in-2010/. Solow. and T. Sala-i-Martin. Development Centre. “Economic Growth and Capital Accumulation.pdf. 2002.” The Global Competitiveness Report 2009–2010. Capitalism. 3–50. OECD (Organisation for Economic Co-operation and Development). Trajtenberg. and K. W. “A Survey of Corporate Governance. August. J. A. Geneva: World Economic Forum. 2009.” Journal of Political Economy 98 (October): X71–S102. G. Santiso.” The Rio Times. Rogoff. “On the Mechanics of Economic Development. “Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development. Mia. Padgett. MA: National Bureau of Economic Research. Silva Araújo. 1990.php/aid/3246/ Interview_Chile_92s_economy. “A Contribution to the Theory of Economic Growth.” In P. T.” Quarterly Journal of Economics 70 (February): 65–94. C. November 28–29.html. 1995 (1): 1–118. Macroeconomics and Health: Investing in Health for Economic Development: Report of the Commission on Macroeconomics and Health. Lozoya Austin.” American Economic Review 1 (2): 1–17. X. Paris: OECD. D. Cambridge. 1942. Geneva: World Economic Forum. “Economic Reform and the Process of Economic Integration. M. Vishny.com/time/world/ article/0. 51–80. 1997. The New Palgrave Dictionary of Economics and the Law. October. I. 2004.1.. W. E. J. 3rd Edition. Second Annual Meeting. R. and F. 2009. “La emergencia de las multilatinas.” American Economic Review 94 (4) September. T. “Benchmarking National Attractiveness for Private Investment in Latin American Infrastructure. “Investment in Human Capital. Romer. April.. 1999. Sala-i-Martin X. Paua. C.” Journal of Monetary Economics 22 (1): 3–42. Newman. Zingales. Cambridge: University Press. August. I. and M. Geneva: World Economic Forum.. 1960.html. 2005. T. Drneziek Hanouz. “Costa Rica’s Generational and Gender Changes.” NBER Working Paper No. 2009. Trebbi. and E. X. Shleifer. and A. “Interview Chile’s Economy. “Infrastructure: Will PAC Really Accelerate Growth?” The Brazil Competitiveness Report 2009. Miller.1963355. MA: National Bureau of Economic Research. T. a NonCommunist Manifesto. 1961. J. Socialism and Democracy. “PAC: Growth Program Boosts in 2010.” The Global Competitiveness Report 2004–2005. Rostow. Reinhardt. 2004.weforum. The Competitive Advantage of Nations.” NBER Working Paper No. “Cross-Sectional Growth Regressions: Robustness and Bayesian Model Averaging.org/pdf/Global_Competitiveness_Reports/ Benchmarking.” Brookings Papers on Economic Activity. Geneva: World Economic Forum.time. Sala-i-Martin X. P. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . 3-57. The Rio Times.” Geneva: World Economic Forum. Geiger.oecdobserver. Journal of Finance 52 (June): 737–83. Mia.” Economic Record 32 (2): 334–61. Porter.00.. Harvard University. E. 2007. Time. The Brazil Competitiveness Report 2009. Available at http://riotimesonline.” Available at http://www. J.. and R. T. Mia.” Paper prepared for LAEBA.

.............................18 Strength of auditing and reporting standards 1.............. Private institutions ............................................... a country in the third stage of development.01 Quality of overall infrastructure 2....01 3....... note that the numbering of variables in the 1st....04 Quality of port infrastructure 2.... as discussed in the text.....16 Reliability of police services B..01 belongs to the 1st pillar.c Variables that are followed by the designation “1/2” enter the GCI in two different pillars....e.....................................17 Ethical behavior of firms 2........25% A.... Unless mentioned otherwise....50% 1............50% 1... Variables that are not derived from the Executive Opinion Survey (Survey) are identified by an asterisk (*) in the following pages..20 Protection of minority shareholders’ interests 1.............03 Diversion of public funds 1......08 Fixed telephone lines* 1/2 2.... we use the percentage shown next to each category....................... and variable 12.....25% 1.... 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... irrespective of the country’s stage of development........ Government inefficiency ..... Security ..13 Business costs of terrorism 1.....a For the higher aggregation levels......................03 Quality of railroad infrastructure 2.............21 Strength of investor protection* 2nd pillar: Infrastructure..........This appendix presents the structure of the Global Competitiveness Index 2010–2011 (GCI)....05 Quality of air transport infrastructure 2. these variables are transformed onto a 1-to-7 scale in order to align them with the Survey results......25% A.. Unlike the case for the lower levels of aggregation................. We apply a min-max transformation.10 Efficiency of legal framework in settling disputes 1.................02 3.03 3................ the score a country achieves in the 9th pillar accounts for 17 percent of this country’s score in the efficiency enhancers subindex................ and innovation and sophistication factors) is not fixed.04 belongs to the 12th pillar).11 Efficiency of legal framework in challenging regulations 1....15 Organized crime 1.............75% 1.....1: The Global Competitiveness Index 2010–2011 Appendix A: Computation and structure of the Global Competitiveness Index 2010–2011 3.......... the weight placed on each of the three subindexes (basic requirements..... the most disaggregated level) all the way up to the overall GCI score....09 Mobile telephone subscriptions* 1/2 3rd pillar: Macroeconomic environment..b For instance.... the score achieved on the subpillar transport infrastructure accounts for 50 percent of the score of the infrastructure pillar.... Reported percentages are rounded to the nearest integer.50% 2..20% 1. This percentage represents the category’s weight within its immediate parent category. The number preceding the period indicates to which pillar the variable belongs (e..................05 3....07 Favoritism in decisions of government officials 4..... and 9th pillars has changed this year following the adjustments made to the structure of the GCI..... while it represents just 20 percent of the overall GCI score of Australia......d Finally.02 Intellectual property protection 1/2 2.. The computation of the GCI is based on successive aggregations of scores from the indicator level (i........... efficiency enhancers...............g.............. To make the aggregation possible..50% 2.................. Similarly...............19 Efficacy of corporate boards 1. Ethics and corruption..12 Transparency of government policymaking 5......................... variable 1........... The numbering of the variables matches the numbering of the data tables....... Energy and telephony infrastructure.......01 Property rights 1......... Instead....... as discussed in the chapter....07 Quality of electricity supply 2..........20% 1.....14 Business costs of crime and violence 1... Undue influence........... Accountability ................ For example....... and the relative distance between....... Property rights ..04 3.......... Transport infrastructure.......04 Public trust of politicians 1......... 8th............ In order to avoid double counting.. Weight (%) within immediate parent category BASIC REQUIREMENTS 1st pillar: Institutions................20% 1.... which preserves the order of............. country scores...06 Judicial independence 1...25% 3.09 Burden of government regulation 1....20% 1....05 Irregular payments and bribes 1...06 Available seat kilometers* B. but exact figures are used in the calculation of the GCI..........02 Quality of roads 2..........08 Wastefulness of government spending 1... it depends on each country’s stage of development...20% 1........... Public institutions.. Corporate ethics ......... we assign a half-weight to each instance. we use an arithmetic mean to aggregate individual variables within a category.... The Technical Notes and Sources section at the end of the Report provides detailed information about these indicators.....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 ..........

06 Restriction on capital flows B........04 Quality of math and science education 5............................09 7....25% 10..........................variable h 6..33% 5......... On-the-job training ........07 7.......08 Fixed telephone lines* 1/2 2..15 Buyer sophistication 7th pillar: Labor market efficiency .............17% A..17% A....06 HIV prevalence* f 4............03 11..07 Local availability of specialized research and training services 5.05 Quality of management schools 5...02 Malaria incidence* f 4................ Technological adoption....50% Pay and productivity Reliance on professional management 1/2 Brain drain Female participation in labor force* 8th pillar: Financial market development ....06 7..04 Extent and effect of taxation 1/2 6................25% A............................50% 4............. Quality of demand conditions ... Health..... Foreign competition.............. Domestic market size....50% 9.............................. Primary education ... Flexibility ..04 Internet users* 9...10 Primary education enrollment rate* g EFFICIENCY ENHANCERS 5th pillar: Higher education and training .01 Cooperation in labor-employer relations 7....04 Ease of access to loans 8................05 Broadband Internet subscriptions* 9... Foreign market size ......................75% 10..............10 Trade tariffs* 6..........11 Prevalence of foreign ownership 6.....33% 5.........01 Availability of latest technologies 9........04 Tuberculosis incidence* f 4.............................02 11......................................02 Flexibility of wage determination The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum (Cont’d.... Domestic competition .........04 7.......... Quality of education .........01 Domestic market size index* j B................02 Firm-level technology absorption 9................17% A.....67% 1..........................................03 FDI and technology transfer B..05 11..12 Business impact of rules on FDI 6.02 Tertiary education enrollment rate* 46 B......02 Extent of market dominance 6.08 Agricultural policy costs 2.......................17% A......) ............06 Internet access in schools C........09 Mobile telephone subscriptions* 1/2 10th pillar: Market size ..01 11..............04 Imports as a percentage of GDP* g B........06 Number of procedures required to start a business* i 6.09 Prevalence of trade barriers 6....09 Quality of primary education 4..07 Infant mortality* 4...............50% 8......04 11....01 Business impact of malaria f 4...............33% 5........................02 Affordability of financial services 8.......03 Quality of the educational system 5....................08 7..03 Business impact of tuberculosis f 4..........50% 8.................03 7...variable h 6.33% 6............01 Intensity of local competition 6......................05 Business impact of HIV/AIDS f 4......07 Soundness of banks 8......13 Burden of customs procedures 10...............................50% 9.) 4th pillar: Health and primary education . ICT use .......05 Total tax rate* 6..........50% 4.......... Competition ......04 B..14 Degree of customer orientation 6..09 Legal rights index* 9th pillar: Technological readiness.................. Efficiency ................................... Quantity of education .......50% 11...06 11........09 Rigidity of employment* Hiring and firing practices Redundancy costs* Extent and effect of taxation 1/2 use of talent .17% A................. Trustworthiness and confidence .........................08 11.......1................................05 Venture capital availability 8....17% 7.......1: The Global Competitiveness Index 2010–2011 Appendix A: Computation and structure of the Global Competitiveness Index 2010–2011 (cont’d....06 Internet bandwidth* 2..01 Availability of financial services 8..07 11...03 Financing through local equity market 8..........05 6.............03 Effectiveness of anti-monopoly policy 6...02 Foreign market size index* k INNOVATION AND SOPHISTICATION FACTORS 11th pillar: Business sophistication....50% 7..08 Regulation of securities exchanges 8..01 Secondary education enrollment rate* 5...... Efficient 7.08 Extent of staff training 6th pillar: Goods market efficiency ....07 Time required to start a business* i 6..........................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.08 Life expectancy* B............................

.. we combine its incidence rate with the Survey question on its perceived cost to businesses. regardless their scores on the related Survey question. The underlying data are reported in the data tables section (see Tables 10. 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. 10.. the included variables provide an indication of the extent to which competition is distorted. 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... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 47 .. the weights are the following: FactorEfficiency..50% 12.. In some instances. inflation enters the model in a U-shaped manner as follows: for values of inflation between 0.. g For this variable we first apply a log-transformation and then a min-max transformation. Therefore.g. In both components..04 12.. 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. country scores for those groups are computed as follows: (sum of scores on full-weight variables) ⫹ (count of full-weight variables) ⫹ 1.06 Availability of scientists and engineers 12. + 7 (sample maximum – sample minimum) d For those categories that contain one or several half-weight variables...5 and 2. tuberculosis.. and 10.05).. thus ensuring that 1 and 7 still corresponds to the worst and best possible outcomes. disease incidence. minus the total value (PPP estimates) of exports of goods and services.03 12.. 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. government spending (G). The relative importance of these distortions depends on the relative size of domestic versus foreign competition. investment (I).. The underlying data are reported in the data tables.9 percent..01 12.. The inverse of this ratio is then multiplied by each country’s score on the related Survey question. Outside this range. the lowest and highest country scores in the sample of economies covered by the GCI....1: The Global Competitiveness Index 2010–2011 Appendix A: Computation and structure of the Global Competitiveness Index 2010–2011 (cont’d. government debt). This interaction between the domestic market and the foreign market is captured by the way we determine the weights of the two components... For those indicators for which a higher value indicates a worse outcome (e..03. and exports (X). normalized on a 1-to-7 scale.. Domestic competition is the sum of consumption (C).. and HIV/AIDS on competitiveness depends not only on their respective incidence rates but also on how costly they are for business. we have: (country score – sample minimum) 6 x + 1 (sample maximum – sample minimum) The sample minimum and sample maximum are..07 combine to form one single variable.06 and 6..02 Intellectual property protection 1/2 f The impact of malaria.. PPP estimates of exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP....) ⫻ (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.. we have: K S indicatork categoryi 5 k=1 K b As described in the chapter. a country receives the highest possible score of 7.. i Variables 6.05 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 12.12th pillar: Innovation.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. respectively: –6 x (country score – sample minimum) h The competition subpillar is the weighted average of two components: domestic competition and foreign competition... Data are then normalized on a 1-to-7 scale.. scores decrease linearly as they move away from these values.. adjustments were made to account for extreme outliers.02 12... PPP estimates of imports and exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP.. while foreign competition is equal to imports (M). respectively.07 Utility patents* 1.. This product is then normalized to a 1-to-7 scale..04. Note that countries with zero reported incidence receive a 7... the transformation formula takes the following form. for a category i composed of K indicators.. in order to estimate the impact of each of the three diseases. Notes a Formally..

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

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

Although it is generally difficult to quantify the level of compensability (comparisons with fully non-compensatory multi-criteria methods should be necessary).. 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.200 Monte Carlo simulations. for any given element (country. The OWA method consists of a family of operators that. As expected. Singapore. and B3 show the main outcomes of the 1. Sweden. might affect the final score and ranking of the index..).1. Instead. and Finland—and the bottom performers—Timor-Leste.. 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). other tests have been carried out to examine the GCI under different conditions. the weights assigned to each indicator. and (3) to assess whether the pillars play a balanced role in the GCI framework. the ordered weighted averaging (OWA). Consider. mathematical simplicity. For each development stage. At the extreme ends of the ranking there are two groups of very stable countries: regardless of the weights they are assigned. efficiency enhancers. is applied to the GCI. and Burundi—remain the same. thus implying full compensability among indicators. (2) to test the assumption of smooth transitions in the definition of development stages. Zimbabwe. . xk) 5 ∑w x i (i) k wi ∈ [0. x2.5 This offsetting might not be always desirable when dealing with fundamental aspects of a concept such as competitiveness. Countries in transition from one stage to the next were assigned the closest higher or lower development stage. . which assessed the GCI robustness with respect to its weighting scheme. The complexity of the GCI would indeed have made it difficult to disentangle influential factors and fully understand the implication of their variability. the final index is the outcome of a number of choices: the framework (usually driven by theoretical models and experts’ opinions).3 In the case of the GCI. The median rank difference is in black while the boxes represent the interquartile range of the distribution (25th and 75th percentiles). w2. map a set of (k) real values {x1. which is considered critical for the results of the GCI.1] i=1 ∑w 5 1 i i=1 where x(i) is the i-th largest xi—that is. The aim of the robustness analysis is to assess to what extent all these choices. some of them considered crucial. . the most unstable countries are located in the middle-to-low area of the competitiveness ladders: these countries are characterized by very similar scores. xk}—that is. Mauritania. B2. OWA operators are not weighted averages since the set of weights depends only on the i-th ordered position of the indicators. OWA operators embed many different types of aggregations depending on the set of weights wi. . Some of these choices are subjective. . others are driven by statistical analysis. Figures B1. Alternative scenarios have been simulated: (1) to evaluate the compensability effect intrinsically embedded in the linear structure of the GCI. No particular volatility affects the GCI on average: the median absolute shift of a country ranking is smaller than eight positions for all countries. we decided not to explore all uncertainties in order to check their simultaneous and joint influence on the final score.4 For technical reasons. or common practice. In every composite indicator analysis. the United States. originally proposed by Yager (1988 and 1996). . all economies are classified into three main development stages in the uncertainty analysis. region. experts’ opinions. individual. and the relevant adjustments to the model are described in the main text of this chapter. their normalization. In absolute terms we find only 7 volatile countries out of an overall sample of 133 countries considered in the GCI 2009–2010. and the aggregation method. the indicators to be included.. for example.1: The Global Competitiveness Index 2010–2011 50 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index (cont’d. In particular. and innovation and sophistication factors). First. comprised of the first four pillars. wk}: k fOWA(x1. . Chad. This exercise was used to test the weighting scheme at subindex level (basic requirements. . Denmark. . The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . Mali. the basic requirements subindex. The robustness assessment of the GCI consisted of different steps. . x1.. the GCI robustness analysis focused on some critical key points and checked the overall influence of each of them on the Index. The second objective is addressed by a detailed robustness analysis. which intrinsically embeds the possibility of offsetting a disadvantage in some pillars by a sufficiently large advantage in others. the top performers—Switzerland. x(k)} is the series of xi values reordered in descending order. .) account by the World Economic Forum in the formulation of the 2010–2011 GCI release. Together with the classical uncertainty analysis. so that even a small variation in their score causes a comparatively large variation in their rank. indicators observed for that element—into a single index depending on a set of weights {w1. . operator f(or) assigns to each country the highest indicator value. {x(1). x(2). The dispersion around the median is lower for economies in development stage 3 than for the others.. 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. . Mozambique. among other elements. Burkina Faso. Compensability is present within the GCI given its linear structure.

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

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.) 20 10 0 –10 –20 –30 –40 Countries Sources: European Commission Joint Research Centre. 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.1: The Global Competitiveness Index 2010–2011 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index (cont’d. 2009. 2009. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .Figure B3: Uncertainty analysis and GCI rank robustness. World Economic Forum.

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.9 1. Figure B6 shows results in terms The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 53 .4 –2.60 2.7 –0. For instance.1 4. between stage 1 and 2 (left-hand side). 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. computed with the reference set of weights.3 0.6 Stage 3 Rank 0 1 0 3 0 8 6 8 3 2 10 11 13 15 Score (%) 3.83 Romania Uruguay Chile Mexico Turkey Oman Russian Federation Bahrain Barbados Poland Lithuania Latvia Hungary Croatia Score (%) –0. where the satisfaction of at least one aspect is enough.43 1.54 2. “are not preparing for the next stage. This indicates that the results are clearly in line with the GCI intention.2 –2.3 –1. On the contrary.90 1.7 –3.1 5.4 1. 2009.8 –1. All weights are set back to their reference values and country scores and ranks are computed by discarding one pillar at a time. implying no compensability at all: all aspects must be satisfied in order to be “good” and.75 2.1: The Global Competitiveness Index 2010–2011 Appendix B: The Joint Research Centre assessment of the Global Competitiveness Index (cont’d.93 1.1 1.8 1.46 2.2 0. f(and) would be the worst value each country scored within the four pillars. The three graphs show that the width of error bars tends to decrease as the development stage increases.60 1. reflected by their weight values—are expected to score higher in the different dimensions of the GCI.5 0. In between lies the reference GCI.8 –4.3 –0. Results are shown in Figure B5 where separate pictures are displayed for the three development stages.7 –4.14 2.04 2. in this sense.2 3. Table B1 shows results for countries in the first transition stage.0 –3.85 1.16 1. On the contrary.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.35 2.7 –1.24 1.”6 Finally.1 –3.8 0.7 –0.2 –1. implying that countries possessing the economic capacity to perform better— Country 2.8 –4. having the capacity. meaning that best performers have high scores in almost every aspect of competitiveness.1 –0.54 1.05 1.3 0. if we assign to Algeria the weights of stage 1.1 0. operator f(and) assigns to the country its lowest score.15 2. for a total of 12 simulations. World Economic Forum.24 2.25 1.4 –1. In terms of ranking.47 1. This is implicitly equivalent to the optimistic criterion.8 –1.3 –2.8 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. with only a few exceptions. its score would increase by 0.3 1. indicating that countries in the first development stage are more affected by compensability within each pillar group.6 –4.5 4.8 –0.82 2.94 1. the highest-ranked countries.9 0. and in the second transition stage.6 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.7 –1.95 Algeria Egypt Libya Indonesia Kuwait Botswana Brunei Darussalam Azerbaijan Venezuela Paraguay Morocco Saudi Arabia Syria Guatemala Jamaica Georgia Kazakhstan Qatar Score (%) –0.64 2.6 –2.7 3 3. The higher the difference between the values of f(or) and f(and). One of the distinctive characteristics of the GCI is the introduction of transition development stages.Table B1: Shift of scores and ranks for countries in transition DEVELOPMENT STAGE Stage 1 Country 1.5 2. the higher the compensability effect for that country. For almost all countries.7 4.5 –0.1 –1. namely to gradually penalize countries that.54 1.76 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.75 1.1 –0.6 1.3 3.1 –4. between stage 2 and 3 (right-hand side).1 0.75 1. In our example.1 –3.0 –1.3 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.1 –2. the distinct contribution of the pillars to the final scores and ranks is assessed.39 1.7 1 Rank –15 –23 –10 –10 –7 –12 –11 –5 –11 –7 –2 –11 –2 –7 1.4 0.2 0 0. this is equivalent to the most restrictive approach.18 2.6 2. This reproduces the smooth transition from a lower stage of development to the upper level.14 2. are the least affected by compensability. A simple scenario has been set up for an ex post test of this assumption.4 2.) Sources: European Commission Joint Research Centre.

57 Minimum bar width: 0.38 Minimum bar width: 0.68 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. World Economic Forum. The Global Competitiveness Report 2010-2011 © 2010 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 1.51 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.05 Minimum bar width: 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. 2009.) 7 GCI score 6 f (and) 5 4 3 2 Maximum bar width: 3.

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

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

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

Education and Human Capital X..means you somewhat agree with the left-hand side Circling 4.. At one end of the scale. 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. some less relevant questions are regularly dropped... In order to keep the Survey as short as possible. Most questions in the Survey ask respondents to evaluate.. citizens.means you largely agree with the right-hand side Circling 7. 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 your opinion is indifferent between the two answers Circling 5.... the set of questions is updated to reflect changes to the structure of the Forum indexes and meet the need for new data.. Corruption. and Social Responsibility XI. or firms? Heavily influenced < 1 2 3 4 5 6 7 > Entirely independent Circling 1. on a scale of 1 to 7. 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.. Health Every year.1.. The Partner Institutes are.. 7 represents the best (see Box 1 for an example). Ethics. at the other end of the scale. Environment XIII.. Travel & Tourism XII.means you agree completely with the answer on the right-hand side administer the Executive Opinion Survey in their respective countries. However. In order to achieve a sample of sufficient size to be included in the dataset.. Company Operations and Strategy IX. one particular aspect of their operating environment. recognized economics departments of .means you somewhat agree with the right-hand side Circling 6.... 1 represents the worst possible situation..means you largely agree with the left-hand side Circling 3. for the most part. the Survey did not undergo any major change.means you agree completely with the answer on the left-hand side Circling 2. This year..

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

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 >20.000 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.1. The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran.001– 20.2: 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. Rep. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea.000 1.) The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .000 5. Islamic Rep.001– 5.

2: The Executive Opinion Survey Table 1: Distribution of respondents to the Executive Opinion Survey 2010 by country and firm size (cont’d. 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.001– 20.) 61 .000 1.607 30 42 26 10 12 5 4 1 *Final count. 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.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 5. after editing of the data. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 1.000 No response Libya Lithuania Luxembourg Macedonia.001– 5.000 >20.

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

The Georgia Germany Ghana Greece Guatemala Guyana Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran. 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. Note: Data are for 2008 or the most recent year available. 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.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.2: The Executive Opinion Survey Table 2: Sectoral value-added as a share (%) of GDP 63 .) 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. (Cont’d. Economist Intelligence Unit. 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. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea. Islamic Rep. Rep.

c .e.c09–10 .c09–105 wc2009 3 qi.71 1 0.c t t 2 2 Nc 1 Nc Nc 1 Nct 3 1 2 4 1 2 1 1 2 2 1 2 4.01 on the availability of new technologies. 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.c 5 qi.ct is country c ’s score on question qi in year t. Although numbers are rounded to two decimal places in this example and to one decimal place in the data tables. Plugging equations (2a) and (2b) into (1) and rearranging yields: 64 3 4 discounted-past weighted average 3 4 Nc2009 Nc2010 2009 2010 . Equation (1) then simply becomes qi.c N 1 Nc Nc 1 Nc2010 2009 c (3) 5 2009 2010 1 1 3 (12a) 3 qi.71 in 2009 and 5. 2010.9 percent for 2010.c 1 a 3 qi.4613 5. 2009 2010 This is the final score used in the computation of the GCI and reported in Table 9.c2010 (1) where qi. the size of the sample was 110 in 2009 and 101 in 2010. which corresponds to a discount factor of 2/3. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum . Slovenia’s score was 5.c2009 1 wc2010 3 qi.49 5 5. The weighting scheme described above indicates how the two scores are combined.c 1 a 3 qi.c 1 3 3 qi. country c’s score on question i is computed as follows: qi.6. Using ␣ = 0.c09–10 5 sample-size weighted average In equation (3).49 in 2010.c 2010 3 q i. That is. 1 2009 3 qi.c 1 3 2 2 5 qi. with t = 2009. The value for ␣ is 0. (4) Example q Let us compute the score of Slovenia on indicator 9. 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 2009 score of country c is given 2/3 of the weight given to its 2010 score.59 .6 and applying formulas (2a) and (2b) yield weights of 46.. the first component of the weighting scheme is the discounted-past weighted average. The final country score for this question is given by formula (1): 5 5 0.5393 5. For any given Survey question qi . qi. 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. as computed following the approach described in the text.01.1. The formula is easily generalized.ct–t 5 1 2 3 Nct Nct t t t t 1 1 3 (12a) 3 qi. and wct is the weight applied to country c ’s score in year t (see below). For any two consecutive editions t1 and t 2 of the Survey. the number of respondents) for country c in year t. exact figures are used in all calculations.c 1 t 3 qi. In Slovenia. is given by: qi. The two components are given half-weight each. The second component is the sample-size weighted average.2: The Executive Opinion Survey Box 3: Country score calculation This box presents the method applied to compute the 2009–2010 moving average scores. country c’s score.1 percent for 2009 and 53.

The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 65 . to calculate the moving average. That is. The Survey. 9 For details about the 2009 Survey dataset. Additionally. collecting over 400 surveys following the detailed sampling guidelines. There are several reasons for doing this. The size value tracks closely with the overall size of the economy. Practically.Conclusion The Executive Opinion Survey remains the largest poll of its kind. 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. 49–57. C.” Box 3 details the methodology and provides a clarifying example. 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. as the backbone of The Global Competitiveness Report. 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). Reference Browne. 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. 4 Company size is defined as the number of employees of the firm in the country of the Survey respondent. we want to give each response an equal weight and. therefore. 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. “Executive Opinion Survey: Capturing the Views of the Business Community. for which no time series exists. It gathers valuable information on a broad range of variables for which data sources are scarce or nonexistent. The size stratification of the sample helps to better achieve this goal. with no adjustment for sector.500 executives into their business operating environment. 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. only 2010 Survey data are used. and for the integrity of our publication and related research. the respondent has not answered the question relative to their company’s activity. 8 In a few cases. 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. 7 The completion rate is the proportion of unanswered questions among the 120 core questions in the survey instrument. First. we also “discount the past. we would like to give more weight to the most recent responses because they contain more updated information. it increases the amount of available information by providing a larger sample size. Geneva: World Economic Forum. The two terms are used interchangeably throughout the text.” The Global Competitiveness Report 2009–2010. At the same time. a Partner Institute uses the response rate from previous years. On one hand. and T. which are often year-average data. For this reason. sampling and comparability across the globe remains an essential and ongoing endeavor of the Centre for Global Competitiveness and Performance.2: The Executive Opinion Survey recent year’s Survey results together with a discounted average of the previous year. place more weight on the year with the larger sample size. 2009. In order to include the surveys with missing sector information in the country averages. please refer to Browne and Geiger 2009. Second. it makes results less sensitive to the specific point in time when the Survey is administered. because the Survey is carried out during the first quarter of the year. Adjustments were made to the value based on searches in company directories and data gathered through the administration of the Survey in past years. For newly introduced questions. Notes 1 For these countries. This has the effect of including these surveys on a one-for-one basis as they occur in the sample—that is. Geiger. 6 The results are the scores obtained by each country in the various questions of the Survey. a weighting scheme is used composed of two overlapping elements. 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. collecting the insight of over 13.

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 .

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

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

........63 ..............75 .................5 3rd pillar: Macroeconomic environment ..............................12........................13.............8... Transition 1–2 1 GCI 2009–2010 (out of 133).....03 Albania 15...........................................108 ...................7 GCI 2008–2009 (out of 134).............56 ..101 ......................2 GDP (US$ billions)....................89 ..7 Inadequate supply of infrastructure ....103 ...... Reported GDP and GDP per capita are valued at current prices..............84 ...0..1 of this Report..5 8th pillar: Financial market development..........3..............8 5th pillar: Higher education and training ..........4.........................100 .......... 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). From a list of 15 factors......... 1980–2009 Population (millions)..5........2 Inflation .....................3...............3............0 2nd pillar: Infrastructure....... Developing Asia......... Note that no data are available for Puerto Rico........... On the right-hand side.0................9.6 Policy instability..............96 .. and Western Hemisphere.....................................000 9......1 11th pillar: Business sophistication........ Sub-Saharan Africa...3...............4... respondents were asked to select the five most problematic and to rank those from 1 (most problematic) to 5................. Figures for Puerto Rico and Taiwan..10.......................72 ..6 Financial market development Goods market efficiency Labor market efficiency Albania Efficiency-driven economies The most problematic factors for doing business Access to financing ............. For more information on The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum .......9 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.. The first column shows the country’s rank among the 139 economies........................ Tax regulations .....................................................63 ........... China are from national sources....4................13......................3..............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.......3...........0 Foreign currency regulations.....2 0 5 10 15 20 25 30 Percent of responses Note: From a list of 15 factors........ Global Competitiveness Index This section details the economy’s performance on the various components of the Global Competitiveness Index (GCI)..4............................... 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......... please consult www................. which includes Georgia and Mongolia although they are not members.. which divides the world into six regions: Central and Eastern Europe....2 7th pillar: Labor market efficiency .......3.....104 ..................................0 Corruption....................... Albania Key indicators.6 Factor driven Basic requirements................................................ GDP figures come from the IMF’s World Economic Outlook Database (April 2010)....4................................87 ..................... The last group is made up of Advanced economies......4 1st pillar: Institutions ...000 3.....825 GDP (PPP) as share (%) of world total ...................4 Inefficient government bureaucracy................................................ The information is drawn from the 2010 edition of the World Economic Forum’s Executive Opinion Survey.........000 Central and Eastern Europe 12...............6 12th pillar: Innovation........5 Tax rates ............3 Restrictive labor regulations ................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.....................88 ......3............................................ from 1980 through 2009 (or the period for which data are available) for the economy under review (blue line)...........................2...0... please refer to Chapter 1........ The black line plots the GDP-weighted average of GDP per capita of the group of economies to which the economy under review belongs....2 71 Crime and theft ....3....0. the methodology and results of the GCI.......4 Government instability/coups ..........000 6...... The bars in the figure show the responses weighted according to their rankings................2 GDP per capita (US$) ...................0 Poor work ethic in national labor force .............................................................7 9th pillar: Technological readiness...2 Poor public health ................4........... while the second column presents the score.5 10th pillar: Market size...............org/weo.......121 ........ We draw on the IMF classification.....3......... 2009 GDP (PPP) per capita (int'l $).....................89 .......................................... • The chart on the upper right-hand side displays the evolution of GDP per capita based on purchasing power parity (PPP)....... 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 • Gross domestic product (GDP) data come from the April 2010 edition of the International Monetary Fund (IMF)’s World Economic Outlook Database....2......... Commonwealth of Independent States (CIS)...8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..9 6th pillar: Goods market efficiency...........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... Middle East and North Africa.......2 4th pillar: Health and primary education ..............6 Inadequately educated workforce.............14....1........................3........................................................5.................................. For more information regarding the classification and the data..............6.............imf............3.................4............8.....................63 ................................. The results were then tabulated and weighted according to the ranking assigned by respondents.........................

........83 Efficacy of corporate boards . The ranks of those indicators that constitute a notable competitive advantage are highlighted in blue bold typeface...85 5th pillar: Higher education and training 5.........03 2...............................................95 Value chain breadth .............07 1........01 12.............63 Irregular payments and bribes..... any individual indicators ranked higher than 51 are considered to be advantages............... • For those economies ranked from 11 through 50 in the overall GCI............................36 Business impact of HIV/AIDS......................02 7....04 11..........07 11.........1 Business impact of tuberculosis .......1 Infant mortality* ................08 11......................................................07 5......88 Mobile telephone subscriptions* .........98 7........02 2............129 Control of international distribution ............116 Intellectual property protection ..........................................09 Cooperation in labor-employer relations..............................113 Quality of electricity supply ..... • For those economies ranked in the top 10 in the overall GCI........109 State of cluster development..... For further analysis.16 1........................................82 Degree of customer orientation .............58 Available airline seat kilometers* .06 12........128 Affordability of financial services..................................................40 Quality of primary education ................................11 6......06 4........03 1............................................... the data tables in the following section of the Report provide detailed rankings and scores for all the indicators of the GCI.....................................03 12...................................................................................................03 3..........106 Inflation*...10 6........ where Mexico ranks 19th.....06 1..........................................13 1...................................................... • For those economies ranked lower than 50 in the overall GCI..........113 Extent of market dominance.............................. Those indicators not derived from the World Economic Forum’s Executive Opinion Survey are identified by an asterisk(*).........................................05 1.........02 6.................................................92 Country credit rating*............................... only the first instance is shown on this page..............08 1.......................02 11............... Competitive advantages are defined as follows: The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1........................79 Internet bandwidth* ....112 Local supplier quality .....12 1.......................................................23 Time required to start a business*............66 Business impact of rules on FDI ....................................... ranked 39th overall............................05 9........................................07 Capacity for innovation ..........04 7..2 HIV prevalence* ...................09 6....01 7... For further details and explanation............................16 Reliance on professional management .....04 9.........07 2.....52 Production process sophistication..........58 Primary education enrollment rate* .....04 8..................................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........01 9.................. in the case of Sweden—which is ranked 2nd overall—its 3rd rank on indicator 1.06 6........... ranked 66th overall........91 University-industry collaboration in R&D ..............................................................................01 1.....76 12th pillar: Innovation 12.......................................12 6.11 1...................................................02 Foreign market size index* ............................15 1..........20 Efficiency of legal framework in settling disputes ....................................56 Organized crime . For indicators entering the GCI at half weight in two different pillars..............................................................03 7.................... constitutes a competitive advantage.........65 Wastefulness of government spending ............17 1...........08 7................21 Redundancy costs* ........................................90 Fixed telephone lines* ..56 Transparency of government policymaking....................................07 7.......09 Local supplier quantity..............................04 3..................................................................................14 6..............................02 1....................................................................................109 National savings rate* ..................... An asterisk (*) indicates that data are from sources other than the World Economic Forum............05 5........ For Mexico.....................................03 8.....................................59 7th pillar: Labor market efficiency 8th pillar: Financial market development 9th pillar: Technological readiness 10th pillar: Market size 10................................................................03 6................01 4.......08 2...1 for the detailed structure of the GCI..................05 8.07 4................... For instance...........................55 Broadband Internet subscriptions* .......02 8.............82 Strength of investor protection* ..................06 5......................01 2...69 Local availability of research and training services..........................74 Internet users* .................82 Reliability of police services ................ individual indicators ranked from 1 through 10 are considered to be advantages..................................04 2.........107 Restriction on capital flows ............06 Availability of latest technologies ............03 9......................94 Extent of staff training.................04 4...................42 Flexibility of wage determination ..................06 8......................................91 Tertiary education enrollment rate*...89 Pay and productivity ......42 Willingness to delegate authority..15 Intensity of local competition ...................................1 Malaria incidence*........02 5...........57 Ethical behavior of firms.............. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum ..............................138 Gov’t procurement of advanced tech products .....................08 Secondary education enrollment rate* ..54 Quality of math and science education.....08 8.......04 1..............................................57 Interest rate spread* .............................13 6...................7 Tuberculosis incidence* ..................................................................................................................................09 1..............61 Life expectancy* .........................82 Brain drain ...........81 Quality of railroad infrastructure .........84 Number of procedures required to start a business* .................. its rank of 33rd on indicator 1......................................08 6.....................................................................64 Hiring and firing practices.. In the case of Poland...........90 Prevalence of trade barriers ..................05 12...........................................................07 6..............................................116 11th pillar: Business sophistication 11..................50 Soundness of banks .....05 4............................ Indicators are organized by pillar..........................................................05 11................................................................................128 Company spending on R&D...........02 4..........................58 Strength of auditing and reporting standards.......................................................90 Firm-level technology absorption ....................................14 1.....................................................58 Public trust of politicians .......59 Efficiency of legal framework in challenging regulations ...........................113 Financing through local equity market .......................107 Regulation of securities exchanges ...........04 5...21 strength of investor protection makes this indicator a competitive advantage.......01 government budget balance................................06 7........47 Protection of minority shareholders’ interests ..............................................................64 Extent of marketing.......................64 Rigidity of employment* ....................63 Effectiveness of anti-monopoly policy ..........07 8............10 Business impact of malaria ..................................90 Notes: Ranks of notable competitive advantages are highlighted.......................................101 Diversion of public funds....49 Trade tariffs*..............................107 Female participation in labor force* ........9 Agricultural policy costs..................51 Business costs of crime and violence....19 1............124 Utility patents per million population*....53 Burden of customs procedures.................................87 8..........................................................................100 Quality of scientific research institutions .............................15 2nd pillar: Infrastructure 2........06 2...09 Availability of financial services ....02 3..................6 9..................04 6..............03 5..................................05 6......................03 11............................44 Prevalence of foreign ownership ..................100 Quality of air transport infrastructure ...............................................................................................88 4th pillar: Health and primary education 4.........03 4...68 Judicial independence .....................................05 3..................109 Extent and effect of taxation.....92 FDI and technology transfer................................................01 Domestic market size index*.......................55 RANK/139 6th pillar: Goods market efficiency 6....01 8.09 4.................................................62 Quality of management schools ....06 Government budget balance* .123 Nature of competitive advantage .......04 public trust of politicians makes this indicator a competitive advantage..........................................18 1...............................05 2...............06 11............................................................88 Favoritism in decisions of government officials .49 Business costs of terrorism .............................................................................91 Quality of the educational system........................21 Property rights........................20 1...........................90 Venture capital availability....................................10 1..05 7...............109 Quality of port infrastructure ...............53 Burden of government regulation ..08 4.....76 Government debt* .....................01 11...................01 5..........................................137 Ease of access to loans..............................63 Availability of scientists and engineers ..04 12.....85 Internet access in schools...................39 Total tax rate* ................131 Legal rights index* ............................ indicator 3..99 10............................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........................................ variables ranked higher than the economy’s own rank are considered to be advantages.........................................01 6.........78 Quality of roads ..09 Quality of overall infrastructure .............................................01 3............62 Buyer sophistication ..................... Please refer to Appendix A of Chapter 1......................02 12....................22 3rd pillar: Macroeconomic environment 3.......02 9....

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. 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. 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 . 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. FYR 222 Taiwan. Rep. 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. Islamic Rep.

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.

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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.

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.......................................................................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

83

.................13 ...............................5 84 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..23 ....1.2............................ 1980–2009 Population (millions)...........................................................................................................................1 Tax rates ....17 ......................4 Financial market development Goods market efficiency Labor market efficiency Australia Innovation-driven economies The most problematic factors for doing business Access to financing .........29 ........................................000 10.............................5........................587 GDP (PPP) as share (%) of world total .....................................5 9th pillar: Technological readiness................1........0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.........5...........................7 1st pillar: Institutions .......5.........1 Transition 1–2 1 GCI 2009–2010 (out of 133).........8 Corruption..3...................1 Restrictive labor regulations .......12 ..7 12th pillar: Innovation......18 ................10...............5........................................5 11th pillar: Business sophistication..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 ..........0 7th pillar: Labor market efficiency .....8.........11 ...............................................5.1 8th pillar: Financial market development.5........17 Australia 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... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .....................................................000 20....................................................21.......7 Inefficient government bureaucracy............2 Crime and theft ..........3 Policy instability........14 ....16 ...................45...............................................10 ...................................................1: Country/Economy Profiles Australia Key indicators.....................5.......................................................2 GDP per capita (US$) ..11...................................2 Inflation .........22 ......22 .5....6..............................11...............................18 ........................5.5 6th pillar: Goods market efficiency...........5.........................5 Poor public health .........5..................3 GDP (US$ billions)...........................5......21 ...............................................0 Inadequate supply of infrastructure .2 GCI 2008–2009 (out of 134)....................5 Foreign currency regulations..................................0..4.5 Government instability/coups ...1 Tax regulations ...........................................3 ................................................2 Inadequately educated workforce..................0...........5..............2 Factor driven Basic requirements.. The bars in the figure show the responses weighted according to their rankings...6...............................................0 10th pillar: Market size....000 Advanced economies 30............. 2009 GDP (PPP) per capita (int'l $)......17...........14 ....997............................5 4th pillar: Health and primary education ..................................................................5 2nd pillar: Infrastructure........12........................3..........2 5th pillar: Higher education and training ..................5.13......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.....................18 .........0..................15 .........4.0.........

............................................................79 Redundancy costs* ......17 Internet access in schools.............08 8..............9 Favoritism in decisions of government officials .09 Local supplier quantity..............04 1....................60 Efficiency of legal framework in settling disputes ..................................................................02 11.......................................05 8....................03 4..............................02 3......................................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...............................................................32 Reliability of police services .14 4th pillar: Health and primary education 4........................53 HIV prevalence* ......01 7........... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....06 4.............................................................9 Prevalence of trade barriers ....................1 Hiring and firing practices..17 Irregular payments and bribes.........................................................43 Flexibility of wage determination ...........07 7...................14 Intellectual property protection .................16 Venture capital availability...........14 1......................19 1................06 Availability of latest technologies .03 8............23 University-industry collaboration in R&D ............11 Effectiveness of anti-monopoly policy ....07 4..........................................................................7 Quality of primary education ...........................12 Restriction on capital flows ..05 1......24 Extent of marketing........................35 Nature of competitive advantage ..........05 4.......37 Local supplier quality .....20 1......13 1......................................02 Foreign market size index* ...............02 6................1 Tertiary education enrollment rate*...............................67 National savings rate* ......................................................................42 3rd pillar: Macroeconomic environment 3.....................................8 Brain drain .....03 2......03 9.....................14 6... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 85 ..........21 Burden of government regulation ..................................08 7...............................42 5th pillar: Higher education and training 5.......................................................................................................................15 Ease of access to loans...03 12.........15 Strength of investor protection* .................33 Fixed telephone lines* .The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1...................................................................16 Willingness to delegate authority...........................................................................................09 Cooperation in labor-employer relations......................11 6................01 Domestic market size index*..........06 11.......06 Government budget balance* ...........................07 2.....6 Quality of electricity supply .........04 4........32 Soundness of banks .......6 9th pillar: Technological readiness 9............................45 2nd pillar: Infrastructure 2...18 Internet bandwidth* ...................02 4........07 6...................28 Local availability of research and training services................................................................05 12.....................04 9.......................02 1................20 6.....................................12 12th pillar: Innovation 12............................12 Efficiency of legal framework in challenging regulations ..............................1 Malaria incidence*..............04 5.......40 10th pillar: Market size 10...............08 1...10 Legal rights index* ..7 Protection of minority shareholders’ interests ...........................................1 Business impact of tuberculosis .............................................................12 1.....................20 Buyer sophistication ........................................78 Control of international distribution ..........................04 6.13 Public trust of politicians .............09 4...........................................28 Life expectancy* ..................01 11..............20 Business impact of HIV/AIDS...................................13 Transparency of government policymaking........23 Quality of scientific research institutions ................3 Regulation of securities exchanges ..........................................................................................06 5...................................................15 Extent and effect of taxation..........................................................................07 5.....................................07 1........................................................................................................05 9..............................................................57 Burden of customs procedures........................31 Production process sophistication....................................16 State of cluster development.............................................................22 Internet users* ...........02 8.....................08 4.......................................................45 Organized crime ..........................................51 8th pillar: Financial market development 8.20 Broadband Internet subscriptions* ........................................................................12 Quality of math and science education..........66 Total tax rate* ..............30 11th pillar: Business sophistication 11..............19 Ethical behavior of firms........................17 Notes: Ranks of notable competitive advantages are highlighted.06 7....55 Infant mortality* ..................14 Primary education enrollment rate* ...................................09 Quality of overall infrastructure ...........53 Reliance on professional management .................23 Mobile telephone subscriptions* .........01 1............01 6....07 8....................................................01 5.....35 Tuberculosis incidence* .................30 Quality of railroad infrastructure .......................110 Rigidity of employment* ........09 Availability of financial services .....................02 12....................................04 3...........................19 Business costs of terrorism ..20 Extent of staff training.................03 7.....................................10 Company spending on R&D...............................37 Availability of scientists and engineers .....................................01 4...........3 Time required to start a business*..........24 Degree of customer orientation .......................08 6......................................................... For further details and explanation.................09 1.........................12 6...................6 Pay and productivity ...........................................14 Diversion of public funds.......04 11...........03 3..........01 9.............16 Judicial independence .........01 2.15 1.................07 Capacity for innovation .............................24 Quality of management schools ..................45 Utility patents per million population*.......07 11.......16 1.................................02 2.........05 7...............................................................59 Value chain breadth ..........16 2....14 Affordability of financial services..........17 10...........................13 Gov’t procurement of advanced tech products ....................25 Financing through local equity market ......................06 6.......................04 8...........................................................................................................................49 Interest rate spread* .................................13 Quality of the educational system...............................................................11 Extent of market dominance.................................................................1: Country/Economy Profiles Australia 7th pillar: Labor market efficiency 7.....21 Property rights........05 11..10 1.....17 1.....................80 Business costs of crime and violence.......06 8..........03 1.............94 Number of procedures required to start a business* ...........18 1.....................19 Wastefulness of government spending .......34 Quality of roads ............05 3....................13 6....................................................................46 Quality of air transport infrastructure ...........11 1..10 6....................30 Available airline seat kilometers* ..................19 FDI and technology transfer.......................46 Inflation*.......55 Prevalence of foreign ownership .................................02 9.......................06 1..26 Quality of port infrastructure ......05 5................................................03 5.................................05 6.....................22 Firm-level technology absorption .................. An asterisk (*) indicates that data are from sources other than the World Economic Forum.......................................................................08 2......04 12..................................03 11...02 5..........15 Intensity of local competition .................10 Strength of auditing and reporting standards...........................................................10 Business impact of malaria .........35 Government debt* ........................01 12..........03 6...04 2......................2 Agricultural policy costs........................................................................................................01 3..................................02 7............01 8......05 2..08 11.................22 Female participation in labor force* .........................................06 2...............................23 Country credit rating*........................................................................................................09 6...........................................14 Efficacy of corporate boards ............06 12..........................................................................19 Business impact of rules on FDI ...................................................................24 Trade tariffs*..................04 7.

.......................7 1st pillar: Institutions .........15 ..000 20....................................................5..........................13 ....4.....................0.........................2 Factor driven Basic requirements..............5...5..............15 ...................................4 6th pillar: Goods market efficiency......1 Transition 1–2 1 GCI 2009–2010 (out of 133)....8 8th pillar: Financial market development...................................9 GDP per capita (US$) ..................8............7 Tax rates ......000 Advanced economies 30...1: Country/Economy Profiles Austria Key indicators..................................................................................5 Financial market development Goods market efficiency Labor market efficiency Austria Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations ............................4 Access to financing .1 Inadequate supply of infrastructure .1......8.3 Government instability/coups ...................................................0 Corruption.....0 Foreign currency regulations.........21..........3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......................8 Poor work ethic in national labor force .......8 Tax regulations ........20 .................................1......................000 10......23 .....2 Inefficient government bureaucracy........................6.................................1 GCI 2008–2009 (out of 134)...............................................2.............19 .............0.............4 GDP (US$ billions).........................9 5th pillar: Higher education and training .....20 ........3 Inflation ........................... The bars in the figure show the responses weighted according to their rankings............................19 ..4.........32 ................................................5....7 9th pillar: Technological readiness............4............0 7th pillar: Labor market efficiency ...................5..........3..................5..................5....................................2 Inadequately educated workforce..........................................5........989 GDP (PPP) as share (%) of world total ...................0.................5.......33 ...46 Austria 40....45.13.17 .................................. 1980–2009 Population (millions).............................5.......0 11th pillar: Business sophistication..........................................381.........11...........18 ..4...12.......................4 86 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...........6 ....................................................6 3rd pillar: Macroeconomic environment ...............................17 ..8 Crime and theft ....................6 Policy instability............................6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..........................4................1 10th pillar: Market size...................5......................10..............................14 ........................3 4th pillar: Health and primary education .................................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 12th pillar: Innovation............16 .......................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...........4 2nd pillar: Infrastructure........................................3 Poor public health ................................................6.....................24 .................18 ....0..................4............5.................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.... 2009 GDP (PPP) per capita (int'l $)..

............................09 4.....63 Internet users* ............................................................................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 87 .......10 Business impact of malaria .02 4...08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..............14 4th pillar: Health and primary education 4...................73 Time required to start a business*................04 2.17 Public trust of politicians .....01 1..............21 Property rights.............................................................6 Control of international distribution .........................03 11..................................................03 3...................................16 Life expectancy* ..4 Production process sophistication...11 6.................11 Quality of scientific research institutions ..................................................................13 Degree of customer orientation .....................................................................34 10....105 Redundancy costs* ......110 Number of procedures required to start a business* .....................48 Quality of air transport infrastructure ..............02 12.............................04 4.....................................................................................................................03 6..14 6.............................................................................15 10th pillar: Market size 10......17 Business costs of terrorism ...............10 Transparency of government policymaking..............................06 Availability of latest technologies ........................................................................05 8......................................................06 2...55 Infant mortality* .........................................................23 Broadband Internet subscriptions* ..................18 1..01 Domestic market size index*..................................................05 5......45 Legal rights index* ......7 Intellectual property protection ..07 1...................5 Pay and productivity .................................................................2 Buyer sophistication ...................22 Organized crime .............01 9.......................................42 Venture capital availability..............................39 9th pillar: Technological readiness 9.................06 4........................................................................................15 1..21 Primary education enrollment rate* .....................25 Available airline seat kilometers* ........................................10 1..............01 2........03 8......03 4.................1: Country/Economy Profiles Austria 7th pillar: Labor market efficiency 7......06 Government budget balance* .............................................................................................................................17 Affordability of financial services.................................30 Protection of minority shareholders’ interests ................60 Hiring and firing practices......25 2.........................18 Gov’t procurement of advanced tech products ......................09 6.......................................28 Burden of government regulation ....................05 3................8 Effectiveness of anti-monopoly policy ...........................06 6..09 Quality of overall infrastructure ........................................08 11....02 Foreign market size index* ...............................................................................................01 7.....7 Quality of railroad infrastructure ...............01 4........................................................................................................................................17 Trade tariffs*....04 7........................18 University-industry collaboration in R&D .................14 1.....................03 12..........1 Business impact of tuberculosis .........139 Rigidity of employment* ....................................................................26 Wastefulness of government spending .......................................01 3...........46 8th pillar: Financial market development 8...............................04 5............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...........................................................................112 Country credit rating*...8 HIV prevalence* ................................................................................08 6........06 1...........25 Internet bandwidth* .........................04 8........09 Availability of financial services .................6 Quality of roads ...06 12...........................24 Quality of math and science education..............02 1.....................................29 Mobile telephone subscriptions* .................................................................07 11........................33 Internet access in schools.................................38 Availability of scientists and engineers .............................................01 5....... An asterisk (*) indicates that data are from sources other than the World Economic Forum.....................................................17 Efficacy of corporate boards .............09 1......................................03 5............06 7..12 6.............01 11.....6 Extent of market dominance........................................................................................................................04 11....13 1.............................................................03 1.............03 7....................8 Firm-level technology absorption .......................................08 2...01 8.........................06 11...........13 6.11 1.17 Soundness of banks ................................................................47 Burden of customs procedures........32 11th pillar: Business sophistication 11.43 Restriction on capital flows ...........20 Company spending on R&D......................05 11.................10 Flexibility of wage determination ................22 Brain drain .....02 2.......................25 Interest rate spread* .....12 1.............11 Diversion of public funds.....................................................10 Reliability of police services ..................................................75 Reliance on professional management ..........7 Extent of marketing.07 4.............37 Quality of management schools .......26 Financing through local equity market . For further details and explanation................................................23 Tertiary education enrollment rate*...............................90 Agricultural policy costs.......02 5.......................04 12...........02 6....10 6.......06 5........45 Inflation*...............................15 3rd pillar: Macroeconomic environment 3.................................20 1..............................02 8..........................30 5th pillar: Higher education and training 5........................08 8..6 Extent of staff training...............18 12th pillar: Innovation 12........................................08 1............................................................63 Total tax rate* ..09 Cooperation in labor-employer relations.....................................05 1...................04 9................................................................1 Business impact of HIV/AIDS............01 12.....07 6............6 Tuberculosis incidence* ......................................05 4.........................03 9................................17 1.........15 Intensity of local competition ........8 Fixed telephone lines* ........14 6..........................................................................06 8..............................05 7.....................................13 Value chain breadth ...11 Strength of auditing and reporting standards......................18 Judicial independence .............18 Favoritism in decisions of government officials ........................1 State of cluster development.......................................8 Local supplier quality .......58 Ease of access to loans......43 Quality of electricity supply ........16 FDI and technology transfer......18 Efficiency of legal framework in challenging regulations ...1 Malaria incidence*.......................................16 Extent and effect of taxation................30 Female participation in labor force* .......................48 National savings rate* ....The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..............38 Strength of investor protection* .............................30 Utility patents per million population*........38 Quality of the educational system......05 9...................................34 Business impact of rules on FDI ............................05 6...............................28 Irregular payments and bribes.....................................08 7..................4 Prevalence of foreign ownership ......16 Local availability of research and training services..............................8 Government debt* ...07 2..........09 Local supplier quantity...................................16 Notes: Ranks of notable competitive advantages are highlighted..................................................................................23 Ethical behavior of firms....................................................................................................................02 9......02 11................05 12.................07 7...12 Willingness to delegate authority...02 3.......15 Quality of primary education ............08 4..........15 Quality of port infrastructure .....................................03 2................22 Nature of competitive advantage ..........................07 5..........................35 Prevalence of trade barriers .....................7 Business costs of crime and violence................04 3..................04 6.................................04 1........................................................................................16 1......................02 7........109 2nd pillar: Infrastructure 2..................48 Regulation of securities exchanges ...............................................07 Capacity for innovation .....39 Efficiency of legal framework in settling disputes ...01 6................07 8..19 1.....................................05 2...................

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

....................................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ......................................02 6....................................68 Soundness of banks ...........02 9............................................53 Control of international distribution .............02 3.55 Infant mortality* ...................93 Tuberculosis incidence* ..........106 Effectiveness of anti-monopoly policy ..............................36 Availability of scientists and engineers ............18 1.....................12 6..............................14 1.....102 Protection of minority shareholders’ interests ..........43 Interest rate spread* ................................104 Quality of math and science education...................09 6...........21 Property rights..107 Strength of investor protection* ........................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 89 ........................76 Total tax rate* ........62 Transparency of government policymaking....34 Time required to start a business*.....................94 Female participation in labor force* ..........84 10..06 11...79 Mobile telephone subscriptions* ................01 Domestic market size index*......................................14 6........................68 6..............04 9.....................07 4............................03 1...................04 3...05 4................................09 4...10 Business impact of malaria ....................88 University-industry collaboration in R&D ................................90 Intellectual property protection ........01 12..........................................................................02 1...............06 2.........................................................................................20 2nd pillar: Infrastructure 2....................66 10th pillar: Market size 10.....................................05 11........03 11.............................02 Foreign market size index* ....................................02 7.............102 Affordability of financial services..............101 Quality of management schools .......................................................................................................................................................................................................................................................03 2...................................................................................09 Quality of overall infrastructure ..................09 1........09 Availability of financial services .............20 9th pillar: Technological readiness 9......09 Cooperation in labor-employer relations.06 8..................................................1: Country/Economy Profiles Azerbaijan 7th pillar: Labor market efficiency 7.........88 Reliability of police services ............................. An asterisk (*) indicates that data are from sources other than the World Economic Forum...........................57 Prevalence of trade barriers .....01 3...............................................................................70 Quality of railroad infrastructure ...................63 Diversion of public funds.....99 Malaria incidence*............01 6......................................................................06 4..................................92 Internet bandwidth* .............................06 12.........................53 Extent of marketing.........................02 12.................................................102 Buyer sophistication .......................86 Fixed telephone lines* .....................07 5......34 Quality of port infrastructure ................05 1.....11 Inflation*......................82 Burden of customs procedures.............05 2......................02 8...134 Extent of market dominance....70 Number of procedures required to start a business* .......................40 Quality of scientific research institutions ..82 Prevalence of foreign ownership .......................08 7...................................................................59 Available airline seat kilometers* ........................................... For further details and explanation.................59 Burden of government regulation ..01 7..01 1........................77 Local availability of research and training services......................................................06 Availability of latest technologies .01 4............................9 Country credit rating*...................................06 7..........4 National savings rate* .................................15 Intensity of local competition ................................93 Quality of primary education ....................................................................................................................................................07 6..............34 Agricultural policy costs.........................12 1.......13 1................103 Brain drain ....08 4...114 Regulation of securities exchanges ................95 Government debt* .....................04 11...........................10 1......41 2.......................03 6...........79 Ease of access to loans...................................................................................37 8th pillar: Financial market development 8............................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................................04 7.....................04 1....................................................................88 Public trust of politicians .............36 Value chain breadth ...48 Restriction on capital flows ....................................................................112 Efficacy of corporate boards ..05 12....02 5........................................................................95 Local supplier quality .............07 11......................02 4............................................03 5...................46 Organized crime .............01 2......02 11...................06 1......66 Extent of staff training...07 Capacity for innovation .........04 12...............05 6.............................01 8.........07 1...88 Nature of competitive advantage ...............103 Legal rights index* ...........................09 Local supplier quantity............................................47 Production process sophistication................................05 9................05 5.......................58 Business costs of terrorism ........................77 Company spending on R&D........................................................................04 5....................05 3....10 Rigidity of employment* ......................40 Pay and productivity ......................08 2.129 Extent and effect of taxation................60 11th pillar: Business sophistication 11.......................11 Redundancy costs* .....12 Tertiary education enrollment rate*................................................45 Irregular payments and bribes.........109 Primary education enrollment rate* ...................................................102 State of cluster development............................93 Business impact of rules on FDI .......90 Notes: Ranks of notable competitive advantages are highlighted.......53 Broadband Internet subscriptions* .....................04 4.........08 11........32 Efficiency of legal framework in settling disputes .......................92 Gov’t procurement of advanced tech products .........................................15 1.........04 8..........................76 4th pillar: Health and primary education 4...........................................................................39 Reliance on professional management ............The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........................................................78 Utility patents per million population*.................08 8............................................................................94 Efficiency of legal framework in challenging regulations ..................17 1................................01 11............................05 8..87 Favoritism in decisions of government officials ..67 Strength of auditing and reporting standards...................................01 9....................................................124 Internet access in schools............05 7..........62 FDI and technology transfer....98 Quality of the educational system.....................................03 12...............87 12th pillar: Innovation 12.........68 Financing through local equity market ...............49 5th pillar: Higher education and training 5............................................08 6.....62 Business costs of crime and violence...81 Willingness to delegate authority..........................................55 Flexibility of wage determination ..13 6..........03 9.............16 1.04 2.......................64 Wastefulness of government spending ...132 Trade tariffs*......................................01 5........20 1.........................08 1.06 5......................03 4......................................81 Firm-level technology absorption ......................07 8........03 7..............07 7...........10 6..............................................................02 2............................................................65 Internet users* ...............................11 1......06 Government budget balance* ....91 Quality of electricity supply .....91 Business impact of HIV/AIDS........................................................................77 Business impact of tuberculosis ..................70 Quality of air transport infrastructure ..........................18 Hiring and firing practices......................63 Quality of roads ...............................07 2.....04 6.........................................................95 Ethical behavior of firms...................66 Venture capital availability...............................78 3rd pillar: Macroeconomic environment 3...101 Judicial independence .........................................................11 6.108 Degree of customer orientation ...........................03 3.........................................03 8....19 1............100 HIV prevalence* .....................................100 Life expectancy* .....06 6........................................................

......27 ..........................1 3rd pillar: Macroeconomic environment ...................59 .......2...........5 1st pillar: Institutions .......12..........................................................................7 Crime and theft ..12...........................................5 Foreign currency regulations.5 GCI 2008–2009 (out of 134).......4...9 Inflation .....................1...................6 Government instability/coups ..........9 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..........................................................................0..........1 Inefficient government bureaucracy........................................5 5th pillar: Higher education and training .0....4............1.....000 20...........4.............................6............7 4th pillar: Health and primary education .1 Policy instability...............................38 ..........................................................2 GDP per capita (US$) . 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 5.5.......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 ............................98 .....................16..........................................36 ..................................................0...............................1 7th pillar: Labor market efficiency .....................4.13..........................4...........2 90 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers................................3..8 8th pillar: Financial market development..9 Poor public health ................11 .................9 9th pillar: Technological readiness........................5..........5...................................................4......28 ...................20 ................. 2009 GDP (PPP) per capita (int'l $)....... 1980–2009 Population (millions)..................000 10.9 10th pillar: Market size.............6 6th pillar: Goods market efficiency.............6 Factor driven Basic requirements.................3 Access to financing .....0......................................4.1 12th pillar: Innovation...8.....................7 Corruption.........................................37 ..........4...................9 Poor work ethic in national labor force ......................20.......0 2nd pillar: Infrastructure..............33 ....0............................................19.................04 Bahrain 40............... The bars in the figure show the responses weighted according to their rankings...........................................................5.........................................55 ....0.....................27 ........1: Country/Economy Profiles Bahrain Key indicators....2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..................3..................................................8 GDP (US$ 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...........44 ...........................7 11th pillar: Business sophistication.........................7 Inadequately educated workforce........5 Transition 1–2 1 GCI 2009–2010 (out of 133)...........................2 Tax rates .2 Inadequate supply of infrastructure .............3........55 .......455 GDP (PPP) as share (%) of world total ....9 .............6.............5............16...........................21 .....27 ..7 Tax regulations ....................................2....4.............37 .......................................................................4.........000 Middle East and North Africa 30............

...................................41 Primary education enrollment rate* ......................................................33 2...02 9..........................02 4..............................101 University-industry collaboration in R&D ................58 Prevalence of foreign ownership .........................................................01 6..20 Efficacy of corporate boards ...................19 Efficiency of legal framework in settling disputes .......40 Willingness to delegate authority.....03 5.....................12 1.......................37 Effectiveness of anti-monopoly policy ........................22 Public trust of politicians ...........04 1...07 7......3 3rd pillar: Macroeconomic environment 3....................................30 Internet bandwidth* .........40 Extent of market dominance...........................10 1.........06 11............02 1...09 Availability of financial services ........................30 Reliability of police services ....84 Government debt* .............18 1...................08 7..........................................................20 Prevalence of trade barriers .....................03 1...............11 Financing through local equity market .............................................................................................................................03 3.................................05 4............04 2..............................01 12...........................2 Venture capital availability..........8 Burden of government regulation ........02 12.............................................................................................18 Affordability of financial services......51 Ease of access to loans..................................................02 11..........................................................71 State of cluster development...05 1................14 6..........................................6 Pay and productivity .....................01 9.....05 5...................04 3................................................08 2........................................................................................................................05 9..........................................................1 Business impact of tuberculosis ...............................................................................05 8......................................................................................57 Time required to start a business*..58 Efficiency of legal framework in challenging regulations ........77 11th pillar: Business sophistication 11.04 5.......02 3........................................03 12...........05 2..80 Value chain breadth ......38 Production process sophistication.......32 Ethical behavior of firms.........04 6....23 Reliance on professional management ...................... For further details and explanation...................................12 6.........16 6...86 9th pillar: Technological readiness 9........43 Mobile telephone subscriptions* .06 4................................19 1....03 6....48 HIV prevalence* ...........15 Intensity of local competition .01 8...........106 10................................................................115 Local supplier quality ....73 Brain drain ......07 2.........................................................88 Gov’t procurement of advanced tech products ................11 Broadband Internet subscriptions* .......13 Legal rights index* ...........09 4...........................36 Tertiary education enrollment rate*................................................05 7..........1 Malaria incidence*...........01 7............47 Extent of marketing........06 7.....5 Burden of customs procedures........................22 Availability of scientists and engineers .......The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1......................03 7......09 Cooperation in labor-employer relations..01 5.................................................................................................29 Firm-level technology absorption ....... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 91 ........04 11....................................................................................................05 11........11 1..........09 Local supplier quantity.................................................54 10th pillar: Market size 10.....................19 Regulation of securities exchanges ......38 Organized crime .........67 Quality of scientific research institutions .........41 Utility patents per million population*.65 Business impact of HIV/AIDS....................5 Inflation*.............22 Diversion of public funds................................................23 Judicial independence ............09 1..................................................24 Protection of minority shareholders’ interests ...........................................................44 Quality of management schools ..................................................11 6...95 Redundancy costs* ...............................26 Strength of auditing and reporting standards.................................................08 8............01 11............................18 Hiring and firing practices....................................................................................25 Quality of railroad infrastructure ....................15 1...............................................................................................43 4th pillar: Health and primary education 4..............................02 6.....................06 6......................13 1...02 5.............01 Domestic market size index*......................................................................08 6.................14 Nature of competitive advantage ...........08 1..........04 12.......45 Internet access in schools........87 Business costs of crime and violence..................03 11..............................................................................06 5.........01 3.....02 Foreign market size index* ...21 Property rights.......14 1...............................................................................................................................................................................................................74 Quality of the educational system...........27 Irregular payments and bribes....................................................30 Agricultural policy costs......................................03 9.03 4............20 Strength of investor protection* ............117 Company spending on R&D...............12 Soundness of banks .............................................................07 11....11 Internet users* ...06 8..................................................13 6..06 2.................................31 5th pillar: Higher education and training 5.........................................04 9..27 Buyer sophistication ........05 12........................................................57 Flexibility of wage determination .........1: Country/Economy Profiles Bahrain 7th pillar: Labor market efficiency 7.........56 Quality of electricity supply ...........................................09 6....................64 Country credit rating*..............06 Government budget balance* ...................18 Restriction on capital flows ....................07 1......................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..................26 Quality of roads ..48 FDI and technology transfer......15 Female participation in labor force* ......127 8th pillar: Financial market development 8.........................04 8.......81 Extent of staff training.............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.......34 Favoritism in decisions of government officials ..................................................07 5........................1 Total tax rate* ......08 11.................................................................01 1..38 Quality of math and science education..............................................16 1..........42 Wastefulness of government spending ..07 Capacity for innovation ...........................................................................09 Quality of overall infrastructure ......................05 3...........................................17 1..06 12................................................04 7.........................14 Business impact of rules on FDI .............43 Business costs of terrorism ..............................13 Quality of air transport infrastructure ....................................................11 Trade tariffs*.. An asterisk (*) indicates that data are from sources other than the World Economic Forum..............................................................................08 4.....................90 Notes: Ranks of notable competitive advantages are highlighted........................07 6.......................06 1.............................07 4......45 2nd pillar: Infrastructure 2......07 8..................51 Life expectancy* .........01 4......................06 Availability of latest technologies .................................................................................................................45 Quality of primary education ..............8 Rigidity of employment* .......................................................n/a Quality of port infrastructure ....................20 1................................45 Tuberculosis incidence* .........02 7.6 Number of procedures required to start a business* ........................................32 Local availability of research and training services..........................05 6.02 8...........................62 Fixed telephone lines* .01 2.........03 2.....27 Extent and effect of taxation......11 Degree of customer orientation ..................................21 Intellectual property protection .......77 Control of international distribution ...................10 Business impact of malaria ....47 Infant mortality* ........04 4........................20 Available airline seat kilometers* ............................03 8....................................................................................69 Interest rate spread* ..23 National savings rate* ...............................................................45 Transparency of government policymaking.................10 6...........................29 12th pillar: Innovation 12...02 2...

....4..............106 .......5 Factor driven Basic requirements.......3...............2..7 10th pillar: Market size.....8...................000 1.............................................................................................3...................162......................3. 2009 GDP (PPP) per capita (int'l $)...6 5th pillar: Higher education and training ...........2 GDP (US$ billions)....126 ..................2 Inadequately educated workforce.........1 Access to financing ...................................000 3.....................3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .............................8 Corruption.......................................6...................3 Restrictive labor regulations ........4...................94............................4 Poor public health ............4 12th pillar: Innovation..............105 .........3 Inflation .............8 7th pillar: Labor market efficiency ..............14.......1 Inefficient government bureaucracy........................126 ................................24.1: Country/Economy Profiles Bangladesh Key indicators.................000 2............2...........................2.............5...........5 GDP per capita (US$) .14........6 Tax rates .......2...........102 ..............2......................................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 .........1 3rd pillar: Macroeconomic environment ........... 1980–2009 Population (millions)..............................0..............3..................................................107 .................4...........3...0.........................4 Crime and theft ........111 .................................109 .6 GCI 2008–2009 (out of 134)....3....................8 6th pillar: Goods market efficiency...............2..4......................115 ............ The bars in the figure show the responses weighted according to their rankings.......114 ...............3...66 .................................................2 Tax regulations ...5........2....108 ................................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 Policy instability.....2...............3.............................................................2...........................................................................................7 Government instability/coups ........................4..................4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..............574 GDP (PPP) as share (%) of world total ...................................................133 ..........2 9th pillar: Technological readiness......................................0....2............................................4 Foreign currency regulations..............000 Developing Asia 4.119 ........ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ................0 11th pillar: Business sophistication...........................106 ................0 92 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..............2 2nd pillar: Infrastructure....................................35 Bangladesh 5..................6 Transition 1–2 1 GCI 2009–2010 (out of 133)..................7 1st pillar: Institutions ............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..................5 4th pillar: Health and primary education ..9................................................................47 .....................97 ........80 .6 Poor work ethic in national labor force .........0 8th pillar: Financial market development.........

.........20 1.....................09 4................................75 Utility patents per million population*......................1 Infant mortality* .........08 7......86 Government debt* .................119 Degree of customer orientation ............................05 4.........................120 Efficacy of corporate boards .....................................112 5th pillar: Higher education and training 5....................133 Local availability of research and training services..............................................................62 11th pillar: Business sophistication 11..........................07 4......07 5..................................09 Cooperation in labor-employer relations.....04 11................................................108 Willingness to delegate authority............05 8..120 4th pillar: Health and primary education 4.06 11...91 Brain drain .....................................................................05 5..05 3............115 Irregular payments and bribes....134 Fixed telephone lines* ..........123 Protection of minority shareholders’ interests .................123 Ethical behavior of firms........................................01 9..................09 1...............106 2.............76 HIV prevalence* ..94 Tuberculosis incidence* ..........................02 12..................05 1........107 Quality of primary education ...................119 Primary education enrollment rate* ....................02 7.............................14 1..............106 Internet users* ............115 Quality of scientific research institutions ........67 Rigidity of employment* .....................10 Business impact of malaria .............88 Financing through local equity market ...........99 8th pillar: Financial market development 8..102 Extent and effect of taxation.....................79 Control of international distribution ............................05 11..................................................07 11.........................................................................02 6..................06 5....................124 Internet bandwidth* ................................08 2...............04 2......04 8.............106 Life expectancy* ..................................................................06 8.............100 Interest rate spread* .............................03 1...................................................134 10th pillar: Market size 10..............................................01 6......................................... For further details and explanation...............04 9...........85 Favoritism in decisions of government officials .......01 12..............130 Quality of roads .......91 Female participation in labor force* .....137 Judicial independence .........................................02 Foreign market size index* ........90 Notes: Ranks of notable competitive advantages are highlighted................................................................................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 93 ....01 11.........06 Government budget balance* ....97 Affordability of financial services..........01 7...................04 1.......................126 3rd pillar: Macroeconomic environment 3.......12 Ease of access to loans.....09 Quality of overall infrastructure .........129 6................02 8.........01 2....................................................................03 11...08 4......01 3.50 Number of procedures required to start a business* ................................................03 7.................................................................116 Strength of auditing and reporting standards.19 Redundancy costs* .........117 Wastefulness of government spending ................................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.................................................04 5.................79 Burden of government regulation ...............................................120 Prevalence of foreign ownership ....07 6........127 Mobile telephone subscriptions* ...........................................................03 8............................................02 11........116 Quality of the educational system.........13 1.68 Country credit rating*............................57 Time required to start a business*...............124 Business costs of crime and violence.....07 2............129 University-industry collaboration in R&D .................................................01 4....................................................12 1.......................34 Burden of customs procedures.....................10 1...........................03 4...............................21 Property rights....109 FDI and technology transfer...............06 2.....05 6.42 10...06 1................................................................06 12............................116 Company spending on R&D.........................79 Venture capital availability..................................07 8.................128 Gov’t procurement of advanced tech products .......................11 1.04 3..............................................112 Business impact of HIV/AIDS..................115 Effectiveness of anti-monopoly policy ...02 9.........15 1...............................................................113 Intellectual property protection ...........................................................................................................................................................................................................03 3.....105 Trade tariffs*........137 Value chain breadth ....58 Legal rights index* ..........................19 Prevalence of trade barriers ...115 Extent of marketing......................19 1...........................114 Business impact of tuberculosis ...72 National savings rate* ..118 Business impact of rules on FDI .......................................05 7..........106 Business costs of terrorism ................86 Flexibility of wage determination ...............111 Production process sophistication.............................. An asterisk (*) indicates that data are from sources other than the World Economic Forum............................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........................................12 6...................................37 Inflation*........................04 4........................................................................................................................10 6.................................................................................08 11.........................82 Regulation of securities exchanges .....03 12......................08 1.......................................................................................86 Internet access in schools..20 2nd pillar: Infrastructure 2.............02 1.............06 Availability of latest technologies ............................................127 Extent of staff training............................................................................................103 Malaria incidence*...........................................01 8........116 Agricultural policy costs...................................126 Pay and productivity ........................94 Reliance on professional management ......................................................................................................102 Transparency of government policymaking...................122 Diversion of public funds..................................................13 6...........107 Public trust of politicians ..........................1: Country/Economy Profiles Bangladesh 7th pillar: Labor market efficiency 7..........................................100 Quality of railroad infrastructure ........11 6...01 5...........112 Soundness of banks .........111 Firm-level technology absorption ..................................07 1...................94 Quality of math and science education.............54 Total tax rate* ..........03 9..................02 4............06 6...................102 Efficiency of legal framework in settling disputes ........................90 Local supplier quality .........08 6.........14 6..................................116 Tertiary education enrollment rate*..107 Reliability of police services ............03 2.......................08 8.............................04 12............................................................................09 6....................................................02 3.................................................................................................138 Broadband Internet subscriptions* ........07 7.........07 Capacity for innovation .....09 Local supplier quantity............................................113 Efficiency of legal framework in challenging regulations ...........02 5......05 2...........................06 7....................................................................................115 Availability of scientists and engineers ................71 Quality of port infrastructure .......................................................97 Restriction on capital flows .....04 6.......105 Quality of management schools ....................87 State of cluster development.............................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .17 1..........71 Hiring and firing practices.............................81 Extent of market dominance.........18 1.......16 1....................................59 Quality of electricity supply ...........................04 7.................02 2.............05 9.....39 9th pillar: Technological readiness 9..................118 Organized crime ..........................................126 12th pillar: Innovation 12........................03 6............05 12......01 Domestic market size index*..............03 5...06 4...125 Strength of investor protection* ......15 Intensity of local competition ........53 Nature of competitive advantage ........01 1......................................................................82 Buyer sophistication .....09 Availability of financial services .........................................107 Quality of air transport infrastructure ................................117 Available airline seat kilometers* ..............

.......................27 ......................................4...............0....5.................6 9th pillar: Technological readiness...............3 4th pillar: Health and primary education ......4.......................................................................5...........................................................4..........................................................1 12th pillar: Innovation.....................................133 ..................7 11th pillar: Business sophistication.....................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 94 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers........000 Western Hemisphere 15.........................4....................1 Poor public health ...............5..................7 Policy instability............2.......................5...1 Restrictive labor regulations ..................3..........0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors........10.....19.............4 3rd pillar: Macroeconomic environment ............4 GCI 2008–2009 (out of 134).......8.....5............6..........................55 ..................................................38 .......................27 .....................................3.........................1.....................5 Foreign currency regulations.....3 Tax regulations .4...22 ............................................9..4...............................................................................................13.......0.......3..................................44 .....5...4.......... 1980–2009 Population (millions)...................................................4..........01 Barbados 20.........................................23 ........6 GDP per capita (US$) ...3 1st pillar: Institutions ....................14 .....................14.................3 7th pillar: Labor market efficiency ....9 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....................................49 .4..................6 8th pillar: Financial market development......43 ........................52 ...0 10th pillar: Market size.....4......17.............8 Corruption...............................0.4..............6 Access to financing .. The bars in the figure show the responses weighted according to their rankings......3 GDP (US$ billions).1...............................................6 Poor work ethic in national labor force .1 Inadequately educated workforce........4 Government instability/coups ........................... 2009 GDP (PPP) per capita (int'l $)........1............5 Transition 1–2 1 GCI 2009–2010 (out of 133)....................................................................0 Crime and theft ..... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ....................47 ..........................2 5th pillar: Higher education and training .........91 ..........0.......59 .......5 Inadequate supply of infrastructure ..3...................................................4 Factor driven Basic requirements............53 ........003 GDP (PPP) as share (%) of world total ..................0 6th pillar: Goods market efficiency.....................................................22 ............................. 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 2nd pillar: Infrastructure.........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.........................0.........000 10....000 5.........6 Inflation .0 Tax rates ...................52 .......1: Country/Economy Profiles Barbados Key indicators....

................08 4.............................................................................................................06 7..05 3.....93 Trade tariffs*..............96 Nature of competitive advantage ....................01 1.................................................................40 Burden of customs procedures.......n/a Inflation*...................19 1............05 5...........................................39 Quality of primary education ........126 Country credit rating*......................90 Notes: Ranks of notable competitive advantages are highlighted....132 Prevalence of foreign ownership ............03 9.................................112 HIV prevalence* ......................01 11...............................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1....52 Control of international distribution ..02 Foreign market size index* ............................68 Business costs of crime and violence..20 1.....20 Total tax rate* ...................24 Legal rights index* .....80 Extent of market dominance.......................................................................74 Production process sophistication..............02 3...............04 2..120 National savings rate* ..........03 11..............................................................12 Regulation of securities exchanges ..........................1 Malaria incidence*............04 5..04 9...........................................................................................06 2......................................07 5........................................03 6............................................................................................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...23 Public trust of politicians ....................69 Extent and effect of taxation.......................12 6...................................................................................14 1..n/a 9th pillar: Technological readiness 9..69 Utility patents per million population*..........04 12.........................................53 Financing through local equity market ..52 Life expectancy* .............02 6....21 Value chain breadth ........04 6..........17 1........ For further details and explanation...1 Business impact of tuberculosis ................49 Protection of minority shareholders’ interests .02 12........................02 1..........n/a Quality of port infrastructure .....11 1............................01 4........48 4th pillar: Health and primary education 4...............01 Domestic market size index*.......15 Quality of math and science education.......43 6.........29 Diversion of public funds..............................................................49 Availability of scientists and engineers ..... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 95 ..............................02 11............................05 9............05 7..........................................08 1....................n/a Number of procedures required to start a business* ...................................03 3..........06 1.......................................03 2..................07 8.............10 Business impact of malaria ...............................n/a 2nd pillar: Infrastructure 2..............................................................................................08 6..............................81 Interest rate spread* .....92 Reliance on professional management ..........................................................................01 5.................................12 1......................14 Tertiary education enrollment rate*..41 Brain drain ..........................................................03 4...........................................................................................03 7................06 11...02 9...............05 11.40 Gov’t procurement of advanced tech products ............18 Burden of government regulation ......86 Restriction on capital flows .............................................101 Buyer sophistication ....34 Quality of railroad infrastructure ........118 Soundness of banks ....................09 6..........03 12...............................................03 8............06 6...................................14 Mobile telephone subscriptions* .27 Fixed telephone lines* ......22 Intellectual property protection ...07 11.......05 6...............108 Infant mortality* ...............30 Internet users* ..........63 Degree of customer orientation ..................13 Available airline seat kilometers* ........................14 6...........09 Cooperation in labor-employer relations..............82 Redundancy costs* ............................07 4...........02 4............01 7......79 12th pillar: Innovation 12........02 7..50 Company spending on R&D............................n/a Time required to start a business* ......27 8th pillar: Financial market development 8..............................................................94 Effectiveness of anti-monopoly policy ......................34 FDI and technology transfer......03 1.......15 Intensity of local competition .01 3......................................03 5..........................06 4.........................41 Quality of the educational system.....01 12........103 Rigidity of employment* .....................08 2...........04 7......99 University-industry collaboration in R&D ................132 10..........04 4.........02 2.............................................06 12........08 8..................128 11th pillar: Business sophistication 11...09 4..05 4.....................................................................................................23 3rd pillar: Macroeconomic environment 3..........07 Capacity for innovation ..............................................06 Government budget balance* .......56 State of cluster development............................................................................................................................84 Quality of electricity supply .........................................................................93 Quality of scientific research institutions .........................................................................18 Ethical behavior of firms...........................................................................................04 11.........................05 1............04 1.............52 Business impact of rules on FDI .............................23 Reliability of police services ........01 6.......01 2........75 Venture capital availability..........13 Efficiency of legal framework in settling disputes ...08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...................................................................................................05 12...09 1..........................34 Local availability of research and training services..................n/a Agricultural policy costs................37 2..02 5.07 1........18 Quality of roads ............97 Local supplier quality ............................................................3 Business impact of HIV/AIDS..............22 Transparency of government policymaking........................................10 Efficacy of corporate boards .........41 5th pillar: Higher education and training 5...........................................................................................74 Ease of access to loans....................................................................................10 6..................................06 Availability of latest technologies ...........09 Local supplier quantity...........................21 Quality of air transport infrastructure ...................................................................................1: Country/Economy Profiles Barbados 7th pillar: Labor market efficiency 7...................29 Female participation in labor force* .....10 1.......................................................................07 7...........................21 Property rights.....................24 10th pillar: Market size 10...04 3...........19 Favoritism in decisions of government officials .........13 6........01 9..................................................67 Willingness to delegate authority.........08 11........................................................................29 Internet access in schools...07 6................04 8.25 Flexibility of wage determination ...n/a Hiring and firing practices.........18 1.............................................15 1.......11 6....09 Availability of financial services ..............................21 Business costs of terrorism .........................8 Primary education enrollment rate* .............23 Prevalence of trade barriers ....26 Internet bandwidth* ............................................................................................................63 Extent of marketing.......................................05 8..................................................................................21 Efficiency of legal framework in challenging regulations ......89 Organized crime .........................06 8..............................05 2.......................22 Broadband Internet subscriptions* .........20 Strength of auditing and reporting standards......................13 1..........................................n/a Pay and productivity ............58 Affordability of financial services........09 Quality of overall infrastructure .................85 Government debt* ...07 2.02 8...............01 8.......................................................................08 7.......................................................28 Firm-level technology absorption .........................16 1........................................................................................................31 Wastefulness of government spending ..................28 Judicial independence .....31 Strength of investor protection* .............. An asterisk (*) indicates that data are from sources other than the World Economic Forum.............................06 5.......51 Tuberculosis incidence* ......................13 Quality of management schools .....................................19 Irregular payments and bribes.................................70 Extent of staff training................................................................

.......13 .....................55 Belgium 40..0.............................................................15 .. 2009 GDP (PPP) per capita (int'l $).........................................................................................20.........6 Inadequate supply of infrastructure .....5..........0.........................7 6th pillar: Goods market efficiency.............................................................21 ........000 Advanced economies 30..............................................2 10th pillar: Market size...........................................43..5....................8 96 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.....7.......5 Inflation .......15 ................9 Policy instability..............................5........................2.........................................7 Inadequately educated workforce....5..5 Tax rates ........................4............................................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ................ The bars in the figure show the responses weighted according to their rankings........3...........6 8th pillar: Financial market development.......0............... 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.................................43 ...................72 .......6 Financial market development Goods market efficiency Labor market efficiency Belgium Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations .................................6 4th pillar: Health and primary education .6 Tax regulations .................................................................................................................................8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......................7 ...........10...0 5th pillar: Higher education and training .........4 Poor public health ..................................16..............19 .1 Inefficient government bureaucracy.........2............0.............5......5 3rd pillar: Macroeconomic environment ...............................17 ..4...........................22 ......................1 7th pillar: Labor market efficiency .22...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..............4 Government instability/coups .6 Crime and theft ...27 ...1: Country/Economy Profiles Belgium Key indicators..........................8 Corruption..........................000 10.......................... 1980–2009 Population (millions)....................................................................16 ..................................5..............5..5........................4.19 .........................1 Transition 1–2 1 GCI 2009–2010 (out of 133).....................1 ....................7 Poor work ethic in national labor force ......8 Access to financing .........5....5....5..0 2nd pillar: Infrastructure.......18 .....5 1st pillar: Institutions ............6 9th pillar: Technological readiness.9 11th pillar: Business sophistication.1 Foreign currency regulations.....................................1 Factor driven Basic requirements.....................................34 .......................................4 GDP per capita (US$) ..................................5...............2 12th pillar: Innovation.....6.....................533 GDP (PPP) as share (%) of world total .....11 ..........4.....................................................1 GCI 2008–2009 (out of 134)...............29 ................1...2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..........5.6 GDP (US$ billions)...4.............000 20................2..9.........0.......470................

......45 Degree of customer orientation ....127 Redundancy costs* ......................................03 3.............................................16 2nd pillar: Infrastructure 2..................23 Efficacy of corporate boards .................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.............................21 Strength of auditing and reporting standards...........08 1.............18 Quality of primary education ........................................62 Business costs of terrorism ...................................48 Irregular payments and bribes......64 Inflation*.........07 7...........10 Value chain breadth ..................................31 Public trust of politicians ...........................15 Intensity of local competition .........08 4...............................................01 7...............................................24 Quality of railroad infrastructure .....21 Property rights.......................02 6..................................17 Venture capital availability.............................................09 Availability of financial services ....20 Financing through local equity market ................................05 1.....................30 10....08 7......37 Hiring and firing practices..18 Notes: Ranks of notable competitive advantages are highlighted...........01 11...........................21 11th pillar: Business sophistication 11...........................................88 Reliance on professional management ..........02 2...................04 2.........................1 Business impact of tuberculosis ...............02 11.................................67 Ease of access to loans.............28 Pay and productivity ...10 Business impact of malaria ...........................................4 Prevalence of foreign ownership .............................................55 Infant mortality* ..............................................07 8.....03 9......02 7.........................................................11 1.......................6 Agricultural policy costs.............................................17 Brain drain ................................................................05 5....14 1.............01 2.....03 4..........................05 3...................................................121 Efficiency of legal framework in settling disputes ..02 4...2 Primary education enrollment rate* ...............12 6.........................................................................26 Nature of competitive advantage .........................................................4 Internet access in schools..02 3..18 Broadband Internet subscriptions* .......25 Mobile telephone subscriptions* .....................35 Quality of electricity supply ..............13 1..........18 HIV prevalence* .....01 1...........................................7 Company spending on R&D........19 Internet users* .......14 Available airline seat kilometers* ...............6 Time required to start a business*......................................................28 Ethical behavior of firms............26 Business impact of HIV/AIDS.....................................................11 Quality of port infrastructure .......................120 Regulation of securities exchanges ...7 Quality of math and science education........05 9.... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 97 .......13 Utility patents per million population*...........25 Restriction on capital flows .05 11...............03 2.......................................................................06 Availability of latest technologies .............................................................................................................................06 7...................................................................................................08 6.....................................13 6.....................14 Willingness to delegate authority.......126 Rigidity of employment* ....18 Control of international distribution .....20 1..............................................55 8th pillar: Financial market development 8..14 6.......................04 9..05 2.....20 Quality of roads ....12 Quality of scientific research institutions ........23 Diversion of public funds..................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..........65 Flexibility of wage determination ..............07 4....................32 Burden of customs procedures......................114 Number of procedures required to start a business* ..............04 1..............................04 11......................................................14 12th pillar: Innovation 12...........................................05 4..........................................03 5......................09 1............................................26 Intellectual property protection .13 Internet bandwidth* ........................127 Country credit rating*............................................................................02 12........................09 Quality of overall infrastructure ......................07 5..........................................................06 12...............................06 2...........10 Local supplier quality ...............................03 1.....13 Fixed telephone lines* ..............................................09 Cooperation in labor-employer relations............19 University-industry collaboration in R&D .................02 8.....................04 4..............................................................................06 5..........................33 Soundness of banks .........06 8..................................15 6..................................06 Government budget balance* ................10 Affordability of financial services...........................52 Efficiency of legal framework in challenging regulations .........41 Legal rights index* .............27 Protection of minority shareholders’ interests ..10 Tuberculosis incidence* ...................01 8.......06 4.............................08 11...........................07 Capacity for innovation .......06 1.........................................................12 1........28 Favoritism in decisions of government officials .........26 Organized crime ...............................................................19 1........................................07 6.........................................18 1............85 National savings rate* .......................................26 Quality of the educational system....34 Prevalence of trade barriers ...............11 6.............03 11......15 2......07 2......20 Local availability of research and training services.............................................................................16 1.......01 3.....................................02 9.........01 6.......2 Quality of management schools ........................25 Judicial independence .........................27 Wastefulness of government spending ...............47 Burden of government regulation .............................................11 Tertiary education enrollment rate*.......................................................01 4.......39 Production process sophistication....... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter. For further details and explanation...........................................01 12................9 Trade tariffs*...47 Availability of scientists and engineers .......04 12..........................................02 1...................................................................17 1...........................1 Malaria incidence*...10 6....82 Government debt* ............................17 4th pillar: Health and primary education 4..01 Domestic market size index*.................................22 Life expectancy* ..................4 Extent of market dominance..9 Extent of marketing...............09 Local supplier quantity......04 8......................................................02 Foreign market size index* ..................................................03 8.........................................135 Total tax rate* .........06 11........10 Gov’t procurement of advanced tech products ...................................17 Interest rate spread* ....04 7....13 10th pillar: Market size 10.02 5.......04 3.............................03 7..................................................5 Effectiveness of anti-monopoly policy .................4 Quality of air transport infrastructure ...........28 FDI and technology transfer.......13 Extent and effect of taxation...........................39 9th pillar: Technological readiness 9.....03 6..........................................15 1.....................................6 State of cluster development....................... An asterisk (*) indicates that data are from sources other than the World Economic Forum................08 8..........25 5th pillar: Higher education and training 5......03 12...........................................................29 Strength of investor protection* ..............01 9..................................................................................01 5......41 3rd pillar: Macroeconomic environment 3......................................................................................9 Extent of staff training.07 1......................08 2................................................................05 7.................47 Business costs of crime and violence...44 Transparency of government policymaking.............10 Buyer sophistication .06 6...............................................................................................04 6...........................................................18 Female participation in labor force* .....................................................................................09 6...............................................................1: Country/Economy Profiles Belgium 7th pillar: Labor market efficiency 7............................................................13 Business impact of rules on FDI ...12 Firm-level technology absorption ....09 4......05 12...........10 1.......05 8...............................................07 11................................................05 6........................25 Reliability of police services .....................................................04 5....

.........100 ............7 GDP per capita (US$) ..........3........................................104 ......5..........................................02 Benin 3........2.. 1980–2009 Population (millions)...............................................20....8........0............7 3rd pillar: Macroeconomic environment ...................3 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....2 Financial market development Goods market efficiency Labor market efficiency Benin Factor-driven economies The most problematic factors for doing business Access to financing ......8 Poor work ethic in national labor force .........5 Corruption.................................4 Inadequately educated workforce......81 .103 ...........................8.........2 8th pillar: Financial market development...................4.3..3...........6 GCI 2008–2009 (out of 134).................................. respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5..... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..........................................................7 Transition 1–2 1 GCI 2009–2010 (out of 133)..........................2 6th pillar: Goods market efficiency...............000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.2........3......112 ........................................0.........87 .........................................3.........0..8 9th pillar: Technological readiness...................8 7th pillar: Labor market efficiency ......9 Inefficient government bureaucracy....4..................................................124 .................9 GDP (US$ billions).............103 ................6 Factor driven Basic requirements........5 Crime and theft ......3.......2....6 2nd pillar: Infrastructure....0..................113 ..........2.3..........7 Foreign currency regulations..................0.....2........95 ...............................3.............60 ................99 .................................................5 4th pillar: Health and primary education ...120 ..............................3........4 Policy instability.............................................................................................................7 Poor public health ..6...................3.....82 ..........106 .........1 Inadequate supply of infrastructure .................................................................................1: Country/Economy Profiles Benin Key indicators................3 Inflation ...85 ....................................................10............5 12th pillar: Innovation......................7 Tax regulations .....................................4.............................21................................................................122 ...................4...6 Restrictive labor regulations ..................................1 Tax rates ..1..............000 Sub-Saharan Africa 2............... 2009 GDP (PPP) per capita (int'l $)........108 ...........3........................................................9......................8 98 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers....................................3.........2 Government instability/coups ...........3 11th pillar: Business sophistication..................4 5th pillar: Higher education and training .0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....711 GDP (PPP) as share (%) of world total ...........................................................11.......000 1....9 1st pillar: Institutions ... The bars in the figure show the responses weighted according to their rankings............7 10th pillar: Market size.......................................2........................

...09 Availability of financial services .......................................................128 Internet bandwidth* ................92 Soundness of banks ....................06 6.........09 Quality of overall infrastructure .....62 Restriction on capital flows .........................01 5......06 11.....89 Brain drain .............04 3...15 1.14 6..........................................128 Reliability of police services ...1: Country/Economy Profiles Benin 7th pillar: Labor market efficiency 7................................103 Internet users* ..............118 Quality of the educational system........................10 6.........72 Degree of customer orientation ...03 1.......59 Utility patents per million population*..................................................................13 1....................................02 7................80 Irregular payments and bribes............09 1.........................................................60 Quality of management schools ...............118 Willingness to delegate authority............02 3.................75 Transparency of government policymaking...01 2.................03 11......................121 Mobile telephone subscriptions* ....................................01 Domestic market size index*...44 Business costs of terrorism .50 Internet access in schools............08 4...93 Burden of customs procedures.................03 3......21 Availability of scientists and engineers ......01 3.................03 6.....................................................................07 7...111 HIV prevalence* .................................................17 1.04 12..........................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...85 Company spending on R&D.......................85 Business impact of HIV/AIDS..................62 Legal rights index* ..07 Capacity for innovation ................................................69 Female participation in labor force* ................................02 6............................................................................................................................06 7............................................08 11.09 Local supplier quantity.73 Production process sophistication......01 8.....................................................................................04 2..08 8................................................................58 Rigidity of employment* ....................................................................................................................125 Judicial independence .......91 Value chain breadth ................................................02 5.....106 Gov’t procurement of advanced tech products ......................................................76 Regulation of securities exchanges .........93 Prevalence of trade barriers .................74 Extent of market dominance...05 3.................................................................................................09 Cooperation in labor-employer relations............77 5th pillar: Higher education and training 5......................................40 Burden of government regulation ...............66 Efficiency of legal framework in challenging regulations ...04 11..............................05 5.........................................................05 12....................10 1..................................112 4th pillar: Health and primary education 4.....................104 6........................02 12...........03 12................60 Quality of scientific research institutions .........02 1..........................07 2.......................................118 10th pillar: Market size 10.....02 2..................................114 Reliance on professional management ..................120 Malaria incidence*.......................................................................................................91 Total tax rate* ..04 4...........................125 Quality of roads .112 Tuberculosis incidence* ...............76 Quality of air transport infrastructure ......06 Availability of latest technologies .118 Quality of electricity supply ....................02 4.............15 Intensity of local competition .24 Effectiveness of anti-monopoly policy .07 1.............................110 Extent of marketing..................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1......................................................128 Broadband Internet subscriptions* .........134 Business impact of tuberculosis ..........96 Available airline seat kilometers* ...................................................04 8.....03 8...........................................70 Pay and productivity ......05 2...................04 1...................... For further details and explanation.................05 4..................................45 Quality of math and science education.............n/a Government debt* .....................90 Notes: Ranks of notable competitive advantages are highlighted............01 4............... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................................. An asterisk (*) indicates that data are from sources other than the World Economic Forum.............106 Buyer sophistication ...............................59 National savings rate* ..........05 6......................................................110 Quality of primary education .........................55 Extent and effect of taxation.............................................................117 Public trust of politicians ........................................130 Nature of competitive advantage ...........01 6.........................................................130 11th pillar: Business sophistication 11....................................................05 11................37 Protection of minority shareholders’ interests .........................................................57 Venture capital availability...................................................126 Life expectancy* .........................02 11...............99 Organized crime .16 1............................................................................04 6..........01 1.......................................................08 6.................01 9.......82 12th pillar: Innovation 12....................................08 1.........95 Agricultural policy costs............................................................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 99 ........................................................05 7.106 Local supplier quality .34 Efficiency of legal framework in settling disputes ..........98 8th pillar: Financial market development 8....102 Trade tariffs*.........01 7......82 Extent of staff training...................03 4......................................07 8.....62 Ease of access to loans......100 Hiring and firing practices........................................................................07 5....55 Intellectual property protection ........13 6....................................87 Prevalence of foreign ownership ....129 Number of procedures required to start a business* ................01 11.................................11 1..............................................108 3rd pillar: Macroeconomic environment 3............................127 Efficacy of corporate boards ...............................................................................101 Local availability of research and training services......................................06 1...............81 State of cluster development................20 1....12 6.................................02 9...............................................................57 Control of international distribution ................................................121 Inflation*......................08 7...........103 9th pillar: Technological readiness 9.....18 1....07 4.........05 9...............................01 12...........09 4......................................................05 1............................................................77 Financing through local equity market .....................44 Flexibility of wage determination .....21 Property rights.57 Time required to start a business*.06 8..................67 Strength of investor protection* .03 9...................03 5.......05 8....53 Interest rate spread* .......................................12 1..................................107 Quality of railroad infrastructure .................80 Primary education enrollment rate* ...............................07 11.......75 Wastefulness of government spending ....................06 12........................................06 Government budget balance* ............................................04 7......02 8................90 2..............08 2...............................110 Firm-level technology absorption ....04 5..........02 Foreign market size index* ...........96 Strength of auditing and reporting standards.42 University-industry collaboration in R&D ...................................................................................................................03 7....................................35 Redundancy costs* ..................108 Infant mortality* ......122 Tertiary education enrollment rate*.........115 FDI and technology transfer..................................06 5...........................................................121 10.................11 6............123 2nd pillar: Infrastructure 2.78 Business costs of crime and violence....108 Fixed telephone lines* ......................................................90 Business impact of rules on FDI ...........................................90 Favoritism in decisions of government officials ..........................07 6...........................06 2............09 6..............................................55 Ethical behavior of firms..............................14 1..........88 Quality of port infrastructure ...........................................................................06 4.........19 1..........................84 Affordability of financial services........12 Country credit rating*.....................91 Diversion of public funds...03 2.............04 9................................10 Business impact of malaria ..............

..9 Inflation ... The bars in the figure show the responses weighted according to their rankings..108 ................100 ....9 Poor public health ...3.59 .............2.............1...... 1980–2009 Population (millions).........7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..8.............................1: Country/Economy Profiles Bolivia Key indicators............. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..........0 3rd pillar: Macroeconomic environment ..............................................................9..118 .....................................136 ..........20..................................2 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ......118 ........................2.........0...........101 .............................................1.....125 .....................................3.............0 1st pillar: Institutions ...................................................................................................................................2.............................................................................100 .....................3......................3.000 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 ............14...5 Crime and theft .........................5....................4 Factor driven Basic requirements....................136 ......1.................4..........................................2 Inefficient government bureaucracy..... 2009 GDP (PPP) per capita (int'l $)...2......86 ....4 9th pillar: Technological readiness...............6 GDP per capita (US$) .............................................6 Transition 1–2 1 GCI 2009–2010 (out of 133)....................................5...............................................................3 8th pillar: Financial market development..........2 Policy instability..........................................3.........125 ........4..................9 GDP (US$ billions).....8 Inadequately educated workforce.........07 Bolivia 12....................... 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.......................100 .......2.....3 12th pillar: Innovation...2.......................17..............................1 Tax rates .............................000 Western Hemisphere 9.....................7 4th pillar: Health and primary education ................................3...2 100 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers......3.....3.724 GDP (PPP) as share (%) of world total .......4...................................................................................127 ......9 Corruption.......136 ..........................127 .....................................................2...4 Tax regulations ..6 6th pillar: Goods market efficiency......................14..0...................3 Government instability/coups ..............................1 Foreign currency regulations.............2.....1 7th pillar: Labor market efficiency ..........................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.....................................................8 Poor work ethic in national labor force .7 10th pillar: Market size.............7....117 ..........2 Restrictive labor regulations .....000 6.........2 5th pillar: Higher education and training ..........................2 Inadequate supply of infrastructure .....8 2nd pillar: Infrastructure......3...............9 11th pillar: Business sophistication.............3....4 GCI 2008–2009 (out of 134).10..............120 .............................

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

..94 ....4......7 Transition 1–2 1 GCI 2009–2010 (out of 133)..............................3........................................................17....................5 Inadequately educated workforce...5 Crime and theft ....................88 ......89 .....................2.............................................................................................3....115 ..1: Country/Economy Profiles Bosnia and Herzegovina Key indicators.........................................4 Inflation ...000 Central and Eastern Europe 12................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.......98 ........................................................................100 ..........................3......0..3.....3.....4.........2 Policy instability....6 Poor work ethic in national labor force ............................113 ....8.5 9th pillar: Technological readiness....................98 ....................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 ...................2 8th pillar: Financial market development...................................................13....................9.................. The bars in the figure show the responses weighted according to their rankings...............................85 ...........7 Foreign currency regulations..............3...............3........3.................3 12th pillar: Innovation..................... 1980–2009 Population (millions)............................................107 ..................102 .............1 2nd pillar: Infrastructure.6 7th pillar: Labor market efficiency .2...5 GCI 2008–2009 (out of 134)........6 Factor driven Basic requirements......8 Inefficient government bureaucracy..............000 4.........6........................8 6th pillar: Goods market efficiency....4 102 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 5 Business sophistication Efficiency enhancers.........................................6 Restrictive labor regulations .......2....................2..........................................................2............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 ................279 GDP (PPP) as share (%) of world total .8.............3...4 10th pillar: Market size...........................1 Government instability/coups .........3.11.6 Inadequate supply of infrastructure .................5 Corruption.........126 .....3...........................4.......3........6 5th pillar: Higher education and training .....8 GDP (US$ billions)...................... 2009 GDP (PPP) per capita (int'l $)............6 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....0..120 ...9.1 Poor public health ..2.............1 1st pillar: Institutions ...............9 11th pillar: Business sophistication............................................................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ........04 Bosnia and Herzegovina 16.........109 .....2 3rd pillar: Macroeconomic environment ............................................2....1 GDP per capita (US$) .............................127 .....................120 .................................................7.......................................11.............5 Tax rates .....................5 4th pillar: Health and primary education ............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...................................93 .......................................................................000 8...................................................................2 Tax regulations ............5.........................................81 .............3..........

....03 7..................07 5.............50 8th pillar: Financial market development 8..............136 Transparency of government policymaking.........................................10 Business impact of malaria ............................................................08 8.....................19 1.................03 5...............82 Hiring and firing practices..................122 Burden of government regulation .....04 8................................................................82 Nature of competitive advantage .....................................................02 5................................05 12.................04 6.....................15 1.....................................................................................................................04 11...............................................................05 11.......08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ......................................................91 Trade tariffs*.....................37 Tuberculosis incidence* .................03 8.122 Favoritism in decisions of government officials ..................20 1................117 Gov’t procurement of advanced tech products ..............128 Extent of staff training........119 Affordability of financial services......................................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............................02 2..........................................05 5...............138 Available airline seat kilometers* ...........................................4 HIV prevalence* ......10 6.......02 8...............02 11.................105 Degree of customer orientation ..06 8......................................71 Business impact of HIV/AIDS......................69 Notes: Ranks of notable competitive advantages are highlighted......07 Capacity for innovation ...............................................................................................................117 2.........n/a 5th pillar: Higher education and training 5...................................40 Rigidity of employment* ...........112 State of cluster development...............116 Availability of scientists and engineers ...04 4..........................133 Quality of electricity supply .......107 Buyer sophistication .114 Time required to start a business*...........................................115 Utility patents per million population*......................................108 Legal rights index* ..07 6..............................18 Business costs of crime and violence................................................114 Extent of marketing...........................59 Broadband Internet subscriptions* ..123 Prevalence of trade barriers ......................................1 Infant mortality* .......133 Extent of market dominance..................................79 3rd pillar: Macroeconomic environment 3........................106 Control of international distribution .....................94 12th pillar: Innovation 12............................91 10.....06 7...12 1....07 2..............................................07 4.................................................96 Wastefulness of government spending .......................................08 11...............................................114 Willingness to delegate authority.................................................09 4...50 Primary education enrollment rate* ...............................................................................................................................05 6......................139 Strength of investor protection* .......................................................................................48 Fixed telephone lines* .................................137 Quality of railroad infrastructure ..............03 11............139 Business costs of terrorism ...............07 7................01 Domestic market size index*.....65 Prevalence of foreign ownership ..120 Financing through local equity market ...137 Effectiveness of anti-monopoly policy .................................................133 Intellectual property protection .06 Availability of latest technologies ................................06 Government budget balance* ................11 1..04 1...........................02 4..................................08 1.................................................................23 Number of procedures required to start a business* ..............................74 National savings rate* ........................................01 6......119 FDI and technology transfer.........................................03 9.............................02 6.......05 2....................................................01 3........................................................77 2nd pillar: Infrastructure 2.61 Pay and productivity ...........................09 Availability of financial services .........................04 5............................136 6.......58 Tertiary education enrollment rate*...............05 3.....03 12........01 4......71 Local availability of research and training services..75 9th pillar: Technological readiness 9...........07 11.............................100 Irregular payments and bribes...........138 Female participation in labor force* .............02 1..............................................04 9.....04 2.........06 4................................................................................................................................................................................116 Quality of scientific research institutions ......09 Cooperation in labor-employer relations...14 Interest rate spread* .......104 University-industry collaboration in R&D .............121 Agricultural policy costs..36 Quality of management schools .10 Redundancy costs* .........................02 12...........................03 2..................................1: Country/Economy Profiles Bosnia and Herzegovina 7th pillar: Labor market efficiency 7...........................03 6...................03 1............96 Business impact of rules on FDI ..............................................................126 Restriction on capital flows .........................139 Strength of auditing and reporting standards..........................07 1.....................................09 6...............................................102 Ease of access to loans......................05 8........................................116 Firm-level technology absorption ...................04 12..62 Life expectancy* .. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 103 .......09 Quality of overall infrastructure ...100 Regulation of securities exchanges .138 Quality of air transport infrastructure ............................01 7.70 Quality of the educational system........1 Business impact of tuberculosis ..................11 6...................17 1.........................131 Efficacy of corporate boards ........01 5...02 Foreign market size index* ......................................................120 Soundness of banks .....................................139 Quality of roads ...........09 1...........................................01 1...............71 10th pillar: Market size 10.............129 Reliance on professional management ...82 Internet access in schools.......................................08 7............................................................................08 4.73 Ethical behavior of firms................................................104 Company spending on R&D...137 Efficiency of legal framework in challenging regulations ................................................107 Efficiency of legal framework in settling disputes ..................94 Reliability of police services .........95 Quality of port infrastructure ..............126 Brain drain ..................04 3.....................................06 2.....................................122 Value chain breadth ............................................03 3. For further details and explanation..................................56 Internet bandwidth* .......................................124 Inflation*.....The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1......................125 Extent and effect of taxation.64 Organized crime ..............06 12..50 Mobile telephone subscriptions* ....44 Country credit rating*........13 6..................................03 4....................102 Internet users* .............................................97 11th pillar: Business sophistication 11.........130 Production process sophistication....04 7.....................................06 6................................21 Property rights...113 Burden of customs procedures...16 1..............01 8..02 9.....18 1..................................................................................................................102 Quality of math and science education........109 Flexibility of wage determination .........................08 2................08 6........48 Government debt* ........................132 Total tax rate* .........................07 8..............................................01 2...............02 7............107 Local supplier quality ....................05 7....................................................12 6..14 1......................133 Diversion of public funds.......................................02 3..06 1.......122 Protection of minority shareholders’ interests .....................101 4th pillar: Health and primary education 4..102 Venture capital availability....06 11..................64 Public trust of politicians .............09 Local supplier quantity.............................1 Malaria incidence*.......................01 12............... An asterisk (*) indicates that data are from sources other than the World Economic Forum..................100 Judicial independence ...........15 Intensity of local competition .........................................13 1....................01 9.................................................................................14 6.................................................01 11..................................50 Quality of primary education .........................05 9............06 5.........05 4.........10 1.......05 1.................................

....0 Inefficient government bureaucracy...........................12.............................................................8.............................3....2....0 GDP (US$ billions)..........................4............1 10th pillar: Market size.........................1 Foreign currency regulations......000 4..................61 ..........6 6th pillar: Goods market efficiency.5 4th pillar: Health and primary education ..................................6 104 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers................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.... 1980–2009 Population (millions).2..................................1 GCI 2008–2009 (out of 134)........................76 ......................2 7th pillar: Labor market efficiency .....66 .........6..2................................4.....11.......0........74 .......................8 Inflation .......17.......................7 Restrictive labor regulations ......................2 11th pillar: Business sophistication................ 2009 GDP (PPP) per capita (int'l $)............................5 Government instability/coups ...........5 3rd pillar: Macroeconomic environment ........5 9th pillar: Technological readiness....................4..................3...............................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.......74 .............................................3..........1 Tax rates ..3..............47 ....1: Country/Economy Profiles Botswana Key indicators........2.......................6 GDP per capita (US$) ................................0.................................6............................4 Crime and theft ........5 Tax regulations ....4................................................................................4...2 Corruption.....................................8 2nd pillar: Infrastructure..85 .1............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 ......4..................................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 ..4 12th pillar: Innovation.........3.........3....99 ..........................3..........8 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...................................4...............................................407 GDP (PPP) as share (%) of world total ................................................................1 Transition 1–2 1 GCI 2009–2010 (out of 133).......2.....114 .93 ........................................4 1st pillar: Institutions ...........................4........................5 8th pillar: Financial market development...................................94 .......................................56 ........8 Inadequate supply of infrastructure .........76 ......4.104 ..........................12...........9 Access to financing .......84 ........04 Botswana 16.............................8 5th pillar: Higher education and training ......................6 Poor public health .....10..........3 Policy instability.......................................000 8.......................................................58 .........4............4 Inadequately educated workforce....13................................2 Factor driven Basic requirements......102 ............1......................................32 ...............000 Sub-Saharan Africa 12.................2............... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .. The bars in the figure show the responses weighted according to their rankings.......

...11 Number of procedures required to start a business* ................113 Internet access in schools..........101 Mobile telephone subscriptions* ..................................................................................................46 Female participation in labor force* ..................69 Ease of access to loans........................03 4..........................................................11 6.................................................73 8th pillar: Financial market development 8................................02 12.08 7...........................02 8...............................................................................................15 1............29 Venture capital availability...90 Notes: Ranks of notable competitive advantages are highlighted....114 Quality of the educational system............03 12.....02 3.......03 8...........................................04 1...........................06 7.......................06 1..........................07 2.................13 6..........................86 Quality of air transport infrastructure ......03 3..............78 Firm-level technology absorption ..................................................................01 7........................07 8...........................06 6.....................................25 Burden of customs procedures..........................................................................39 9th pillar: Technological readiness 9.................................................................12 1..........1: Country/Economy Profiles Botswana 7th pillar: Labor market efficiency 7..46 Brain drain ........08 1....................29 Business impact of rules on FDI ..............05 6........................................39 Regulation of securities exchanges .........................65 Protection of minority shareholders’ interests .......................03 7..........................................................04 6..................98 Internet bandwidth* .....06 8...............133 National savings rate* .....................08 8....33 Inflation*..............................................46 Business costs of crime and violence.....................................02 5...............07 Capacity for innovation ..37 Strength of investor protection* ....47 Quality of railroad infrastructure ............... For further details and explanation..................94 Local availability of research and training services......06 4...57 Primary education enrollment rate* ......51 Efficacy of corporate boards ...........08 2............05 8.........................................04 7..99 Time required to start a business*.......................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .....................15 Burden of government regulation ...............................................................05 7....................................................................05 11......02 2............................114 Broadband Internet subscriptions* .....111 Pay and productivity .13 Total tax rate* .....................................................09 Quality of overall infrastructure ....01 Domestic market size index*.09 4..................................02 6..........03 1....14 1....................................112 Buyer sophistication .........................................03 9.......................05 2...81 Internet users* ..................................................................01 6.95 10th pillar: Market size 10...............................................88 Tertiary education enrollment rate*..01 4....................................................................................107 Production process sophistication..................................................................................48 Quality of math and science education..............01 9.......................................05 3.105 Utility patents per million population*.08 11.....02 11..........................84 12th pillar: Innovation 12...............................02 7............109 Nature of competitive advantage .........17 1....................................................89 Extent of market dominance................04 4...............................................................................09 6...................04 2........52 Availability of scientists and engineers ................................27 Hiring and firing practices............................................................................21 Irregular payments and bribes...........119 Local supplier quality ...............................................................................07 1.........47 Restriction on capital flows ...........02 9.....13 1................06 Government budget balance* ....27 Soundness of banks .103 Quality of scientific research institutions ........114 Interest rate spread* .......................................01 12................16 1.........................................................................44 Quality of port infrastructure ...........05 12...73 Affordability of financial services....................................................................................02 4............................06 11..37 Degree of customer orientation .......................................................04 3..69 Gov’t procurement of advanced tech products ....82 Company spending on R&D........48 Flexibility of wage determination .........................09 1....73 Reliance on professional management ............................135 Business impact of HIV/AIDS..09 Cooperation in labor-employer relations...............54 Quality of roads ..............18 1.. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 105 ...83 Effectiveness of anti-monopoly policy ...............................131 Tuberculosis incidence* ........................94 Rigidity of employment* ............................................04 5......117 Willingness to delegate authority.................................100 Business impact of tuberculosis ..................88 Fixed telephone lines* ............................54 6..............................................................44 Efficiency of legal framework in settling disputes .............................107 Malaria incidence*........................................33 Public trust of politicians ...132 HIV prevalence* ...........09 Availability of financial services .....04 9...79 Quality of management schools .................................................108 Extent of staff training............ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....47 4th pillar: Health and primary education 4.....................................................81 FDI and technology transfer...........................36 Prevalence of trade barriers ................04 11......07 7................................................................................03 5..........101 10...............10 6..........................20 1..................06 Availability of latest technologies ..............................................................................01 5..........................................................................................................................08 4.......33 2nd pillar: Infrastructure 2.....................................................52 Reliability of police services .....................43 Ethical behavior of firms.............................05 5.............45 Diversion of public funds.....................01 11...............05 9...........................................................................................................................124 Agricultural policy costs.........83 Extent and effect of taxation.........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1....................03 6..............................................06 5...............07 4....63 Value chain breadth ....06 2.......08 6...............67 Redundancy costs* ........... An asterisk (*) indicates that data are from sources other than the World Economic Forum......06 12.10 1............................53 Trade tariffs*..75 Prevalence of foreign ownership ....03 11.................22 Wastefulness of government spending ..............02 Foreign market size index* ........102 11th pillar: Business sophistication 11..................83 Government debt* .................................................................30 Favoritism in decisions of government officials ...................70 2..........................09 Local supplier quantity...............86 Financing through local equity market .............................26 Business costs of terrorism .....19 1........15 Intensity of local competition .................................122 Quality of primary education .............................................................4 Country credit rating*...................................65 3rd pillar: Macroeconomic environment 3............04 12....................01 3.............125 Control of international distribution ............................07 11.........................................12 6..........03 2.....................35 Intellectual property protection ..................................05 4......94 Available airline seat kilometers* ..............136 Quality of electricity supply ............60 Legal rights index* ............83 Organized crime .....................01 2...........01 8...........111 5th pillar: Higher education and training 5..........04 8..............108 State of cluster development..................................01 1........................10 Business impact of malaria ..........11 1.....................................70 University-industry collaboration in R&D ........05 1...........14 6.................99 Extent of marketing............................07 5...90 Life expectancy* ........26 Transparency of government policymaking..................................02 1................................................................32 Efficiency of legal framework in challenging regulations .....................................................................36 Strength of auditing and reporting standards.........................21 Property rights.........................................07 6................................................138 Infant mortality* ................................38 Judicial independence ...

.................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.....19..........2.......................1............2 Foreign currency regulations..5 Financial market development Goods market efficiency Labor market efficiency Brazil Efficiency-driven economies The most problematic factors for doing business Tax regulations ........1 8th pillar: Financial market development.............87 Brazil 12...................................................................4............3.................17...............................................3 Corruption.................4 5th pillar: Higher education and training ........................................62 . The bars in the figure show the responses weighted according to their rankings.............574....................6 Inadequately educated workforce............................................93 ........2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......7 7th pillar: Labor market efficiency .....4................000 6......................................................................000 3...............................................................5.....38 ................ 2009 GDP (PPP) per capita (int'l $).....0....111 ...........1 Factor driven Basic requirements.1: Country/Economy Profiles Brazil Key indicators.............9 Inefficient government bureaucracy..................................8...................4..5...................4...............0...96 ...............................4..............9 10th pillar: Market size..4...................54 .....................................................................3 1st pillar: Institutions ...8 Restrictive labor regulations .................87 .....58 ..........1.................114 ........................................5 106 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...........3....................3 6th pillar: Goods market efficiency................7 Poor public health .............3 Tax rates ......................4........................4........................0...................0 4th pillar: Health and primary education ..............50 .........7 Inadequate supply of infrastructure ....................................................9 Access to financing ........ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .......4.............................3 Transition 1–2 1 GCI 2009–2010 (out of 133).7 Policy instability.4........31 .............................. 1980–2009 Population (millions)............42 ......3.................86 ......193.......................58 ................5......2.........2 GCI 2008–2009 (out of 134)...............8 Inflation ...................................1 Crime and theft ...........0.6 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................4 9th pillar: Technological readiness...............................................................10 ..................2..7 GDP (US$ billions).......................................................64 ...................1...4......5 12th pillar: Innovation.0 GDP per capita (US$) ..........12...44 ...............0 11th pillar: Business sophistication.......5 Government instability/coups .....3.56 ...........4......................000 Western Hemisphere 9......6............0 3rd pillar: Macroeconomic environment ..... 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......220 GDP (PPP) as share (%) of world total ...............13.........5 Poor work ethic in national labor force .......................................11.......................................................................................................

.................................................127 Irregular payments and bribes.07 7......................58 Internet bandwidth* .....................................................................................05 12...........68 HIV prevalence* ................17 1....131 Redundancy costs* ......................................................................................................06 1.....81 Malaria incidence*........74 Wastefulness of government spending ..............................................................................10 Business impact of malaria ....11 6... An asterisk (*) indicates that data are from sources other than the World Economic Forum...03 4...............29 Extent of marketing.............................................................................................................05 5..........5 Legal rights index* ..................03 2.................05 7...................04 2........................................01 5...........46 Effectiveness of anti-monopoly policy ................04 4...............36 Extent of staff training................................................................06 Government budget balance* ..........................................85 Reliance on professional management ........................................................................52 2........................06 11............................04 11.....136 Burden of government regulation ........103 9th pillar: Technological readiness 9.........................................................08 4..9 Local supplier quality .....126 Quality of management schools ..01 3.........08 2.........................09 1.......................................02 12....46 FDI and technology transfer..52 Financing through local equity market ....05 2................ For further details and explanation.........06 8........127 Number of procedures required to start a business* .................93 Interest rate spread* ...................14 Regulation of securities exchanges .....................57 Broadband Internet subscriptions* ...................06 6.........136 Government debt* ...34 Gov’t procurement of advanced tech products ..........03 7......08 8......................................................................04 9........01 2..............................................................23 Nature of competitive advantage ....07 Capacity for innovation .......87 Quality of port infrastructure ........15 Business costs of crime and violence.......07 5..........105 Quality of railroad infrastructure ...08 6................127 Primary education enrollment rate* ...83 Efficiency of legal framework in challenging regulations ....................................................39 Female participation in labor force* ............14 1.........................05 1........15 1....................................................................01 Domestic market size index*...........05 11...................................................10 6......................................03 12.................06 Availability of latest technologies ............................94 Strength of auditing and reporting standards....................07 6....90 Flexibility of wage determination ........119 Trade tariffs*...............................................125 Reliability of police services ......................................................................................65 Venture capital availability...............................................................................66 Business impact of HIV/AIDS.......................02 7...............................50 Extent of market dominance......02 11..14 6.............8 10.....................05 4...............................................................................................................76 Life expectancy* ...............................................................................................................11 1......................................................10 1.....................03 8............................87 Business costs of terrorism ................................................139 Efficiency of legal framework in settling disputes ................20 1.......06 2......................................23 Internet users* ..........................02 8........02 5.............104 Business impact of tuberculosis ....84 Country credit rating*.......................04 3..................................................42 Company spending on R&D................................................................21 Property rights...........09 Local supplier quantity..............29 University-industry collaboration in R&D .......01 6...The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1....................03 11............................59 2nd pillar: Infrastructure 2.........................................61 Notes: Ranks of notable competitive advantages are highlighted.....04 12............68 Utility patents per million population*.........................01 8............................................................08 1....................22 Tertiary education enrollment rate*..04 1...01 12...........103 Quality of math and science education...................................123 Organized crime .....16 1...................................................................27 Affordability of financial services........114 Hiring and firing practices........08 11.....................121 Public trust of politicians .................71 Transparency of government policymaking.................................02 4...........................................05 9....04 5..........03 1.......09 6....................76 3rd pillar: Macroeconomic environment 3.........................................55 Tuberculosis incidence* ..........................................................29 Quality of scientific research institutions ......................05 8..29 State of cluster development...........02 6.......................64 Strength of investor protection* .................04 8..................72 Local availability of research and training services.......................73 Soundness of banks ..............139 Total tax rate* .............................39 Extent and effect of taxation...............80 Pay and productivity .....................................................67 Protection of minority shareholders’ interests .....................09 4....................76 Business impact of rules on FDI ....................................06 12...........................24 11th pillar: Business sophistication 11....02 1.....................65 Quality of the educational system................................04 7...................1: Country/Economy Profiles Brazil 7th pillar: Labor market efficiency 7...60 Restriction on capital flows ..............135 Agricultural policy costs.......62 Mobile telephone subscriptions* ......................04 6.....................................................................................52 Brain drain ................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 107 ...............................07 1............................................12 1.......46 4th pillar: Health and primary education 4......63 Fixed telephone lines* ..............................................................................................64 Efficacy of corporate boards ....................08 7................................09 Cooperation in labor-employer relations..................................01 11..........................................89 Infant mortality* ..........................74 Ethical behavior of firms.....................123 Quality of air transport infrastructure ................01 9.............................01 4...................93 Available airline seat kilometers* ...............................................................68 5th pillar: Higher education and training 5...........07 11................50 Buyer sophistication ....................................80 8th pillar: Financial market development 8..........................................06 7.................................01 7............50 Firm-level technology absorption ........................51 National savings rate* ................................89 Value chain breadth .................................................................................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...............................72 Intellectual property protection .........................122 Degree of customer orientation .........................15 Intensity of local competition ...................................27 Production process sophistication............03 6.....06 5........................................................02 9..................05 6.......01 1................09 Availability of financial services ..........12 6.....................02 2.........13 1......09 Quality of overall infrastructure ..................02 Foreign market size index* .....................02 3...............................43 12th pillar: Innovation 12.............22 Willingness to delegate authority...116 Rigidity of employment* ...............................114 Prevalence of foreign ownership .18 1...89 Diversion of public funds..................73 Internet access in schools.76 Quality of primary education .....................................................................................07 8.............07 4.......71 Judicial independence .................................................................132 Time required to start a business*..........76 Favoritism in decisions of government officials .05 3............07 2.........60 Control of international distribution .........19 1...........................25 Prevalence of trade barriers ................06 4..9 Quality of electricity supply ...............45 Ease of access to loans............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....................................50 Availability of scientists and engineers ................................................03 5..03 9................................................56 10th pillar: Market size 10.53 6..............................81 Burden of customs procedures..........13 6.101 Inflation*.........................03 3.....................................84 Quality of roads .........

.....................................................................10 ............3...............5 1st pillar: Institutions .8 Policy instability.........5 Government instability/coups ........................................4....................1 7th pillar: Labor market efficiency ...........4 GDP (US$ billions).....................................................................3 Poor work ethic in national labor force .............................2 6th pillar: Goods market efficiency....................1.....3 Inflation ....................6 4th pillar: Health and primary education ...72 ..5 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........................................................4...9 Corruption...................1......................0..................... The bars in the figure show the responses weighted according to their rankings................................................36 ..................1 Access to financing ...............4..............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 ....64 ......0.....................325 GDP (PPP) as share (%) of world total ....12...............6 GCI 2008–2009 (out of 134).........................1..........2....5............................................32 ...............15......................52 ...............................8 Transition 1–2 1 GCI 2009–2010 (out of 133).....4..1........000 20...........8 12th pillar: Innovation............26.......0 10th pillar: Market size...........................2 Inadequately educated workforce.78 ...... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .......................3 9th pillar: Technological readiness........................20 ..000 Developing Asia 60...........................2........................................................................118 ..............9 Tax rates .... 1980–2009 Population (millions).....................................5 Factor driven Efficiency driven Basic requirements...55 ....................................................2 8th pillar: Financial market development.........67 .................................................................................................15......0 Crime and theft ......3......................................................................5 Poor public health .....19......5.8 2nd pillar: Infrastructure...............................................................................39 ....9.49 ..................4.......4............4.....3 Inadequate supply of infrastructure .....32 .......................................................2......1: Country/Economy Profiles Brunei Darussalam Key indicators.................3.0 5th pillar: Higher education and training ..................000 40...........2.....2 108 Transition 2–3 2 3 Innovation driven Institutions 7 Innovation Infrastructure 6 5 Business sophistication Efficiency enhancers..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.. 2009 GDP (PPP) per capita (int'l $)................3 3rd pillar: Macroeconomic environment .................1 .........................0.........................4 11th pillar: Business sophistication....69 .77 ......................03 Brunei Darussalam 80...........6.........6...........7 Foreign currency regulations...5 GDP per capita (US$) ..........1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors................................................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...7 Tax regulations .................5.......4.....................10.................28 ..........0....4...................................

...............67 Prevalence of foreign ownership .......................................................................................................................93 Willingness to delegate authority..................02 3...1 Infant mortality* .........................................................02 4.....99 2nd pillar: Infrastructure 2...........................................05 6.......................................................06 Availability of latest technologies ..........................................................................................................21 Property rights.........................................................................................................................................................n/a Quality of port infrastructure ....1 Business impact of tuberculosis .........................18 Organized crime .34 Judicial independence ............................01 12...........................................03 7............31 Number of procedures required to start a business* ....................................................................................08 7......................32 Strength of auditing and reporting standards.........................................................1 Malaria incidence*..38 Local availability of research and training services............................53 Efficacy of corporate boards ...........................................................................................................04 9....98 Local supplier quality ..04 2............................60 Gov’t procurement of advanced tech products ...........................................................08 11.07 Capacity for innovation ....................................................................................................09 4....52 Intellectual property protection .................................01 1......15 1...01 3................................................................................................................................................52 3rd pillar: Macroeconomic environment 3.............01 2........12 6....115 Extent of staff training.....................110 Utility patents per million population*.....126 10.................01 Domestic market size index*.......................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1......................................................45 Regulation of securities exchanges ..........08 4... For further details and explanation.............31 Quality of math and science education........07 7............80 University-industry collaboration in R&D .............60 6...02 11...........................23 Primary education enrollment rate* ..................01 11.......60 Available airline seat kilometers* ...39 Strength of investor protection* ....19 1.................................19 Burden of government regulation ............................69 Internet bandwidth* ...................11 1...........................76 Business impact of HIV/AIDS......................................07 5...71 FDI and technology transfer.........97 Quality of the educational system..83 Quality of scientific research institutions ...........................................61 Extent of market dominance..........89 Tuberculosis incidence* ..................97 2....................75 Extent and effect of taxation.......................................................................................................................15 Intensity of local competition .......09 Availability of financial services ..............33 Efficiency of legal framework in settling disputes ........04 4...........................01 7.............................................................18 Irregular payments and bribes........................09 Local supplier quantity............09 6...........................................................02 12........04 6.........................32 Prevalence of trade barriers .............05 5.............58 Firm-level technology absorption ...13 6..134 Agricultural policy costs................................................................05 3.........................1 Hiring and firing practices...........06 12......16 1.......20 1.70 Burden of customs procedures...........01 8...........06 1............................................46 Protection of minority shareholders’ interests ........... An asterisk (*) indicates that data are from sources other than the World Economic Forum..03 4................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter..............6 Pay and productivity ..................51 12th pillar: Innovation 12...............134 Time required to start a business*.........51 Degree of customer orientation ...07 1.....43 Favoritism in decisions of government officials ............................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 109 ................................................................................36 Efficiency of legal framework in challenging regulations ..........59 Transparency of government policymaking.....02 6.58 Buyer sophistication ........................................68 Production process sophistication.................89 Quality of electricity supply ......................08 2...........................................................................06 4..33 Availability of scientists and engineers ....................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...............14 Flexibility of wage determination ....................22 Reliability of police services .....72 Soundness of banks ....................05 4.05 2.........10 1....................01 6................08 1....................................................12 1...37 Quality of primary education .69 Internet access in schools.............112 Ease of access to loans..........................................................39 Notes: Ranks of notable competitive advantages are highlighted...33 Venture capital availability......04 3.........03 1...........................................................................06 11............................n/a Country credit rating* .................................................37 Tertiary education enrollment rate*...........................................n/a 4th pillar: Health and primary education 4..............07 11..72 Value chain breadth ...........................70 Affordability of financial services...............................09 Cooperation in labor-employer relations..........................................................................6 National savings rate* ..............55 Diversion of public funds.......................39 9th pillar: Technological readiness 9..08 6.....01 4.....................04 12...77 HIV prevalence* ..................................04 1....08 8.................05 8....02 8.................36 Ethical behavior of firms..............................................03 3.06 Government budget balance* ...............01 5........33 Quality of railroad infrastructure .......................03 11............05 11.......55 Government debt* .02 5..................46 Restriction on capital flows ................................85 Business impact of rules on FDI ..........................03 2.....................11 6..91 Company spending on R&D...............13 1..............27 Quality of management schools ......................07 6.79 Extent of marketing..........15 Total tax rate* ................................09 Quality of overall infrastructure ...........................04 5.02 9.............05 9....................................................................................01 9................36 Quality of roads ...30 Wastefulness of government spending ..........................................................................06 6..............67 Mobile telephone subscriptions* ......................06 7..........................111 Control of international distribution ...........................................87 Internet users* ..................................90 11th pillar: Business sophistication 11............................................10 Business impact of malaria .............................................46 Trade tariffs*..48 Interest rate spread* .......23 Rigidity of employment* ...07 8.......................02 1..................75 5th pillar: Higher education and training 5..........48 Financing through local equity market .............13 Reliance on professional management ...................03 12.06 2...58 Quality of air transport infrastructure ...........65 10th pillar: Market size 10..............................................05 7.....05 12..................................03 9..2 Inflation*................18 1...........................96 Legal rights index* ..............................................................................................06 5....................................04 8.....04 11.........................................................07 2.............................03 6............................................02 Foreign market size index* ...................................................................................1: Country/Economy Profiles Brunei Darussalam 7th pillar: Labor market efficiency 7......................05 1.......................................................72 8th pillar: Financial market development 8.............17 1................37 Redundancy costs* ........................................................................................33 Life expectancy* ...........................................14 6.................88 Business costs of terrorism ........................04 7........55 Fixed telephone lines* ......................29 Public trust of politicians .................23 Business costs of crime and violence..........................................................02 7.........07 4..03 8...................................42 Brain drain ...............................................73 Nature of competitive advantage .....................74 Effectiveness of anti-monopoly policy ......................06 8......09 1.............40 Female participation in labor force* ..................75 State of cluster development........14 1......................................02 2....03 5....13 Broadband Internet subscriptions* ........10 6..........................................

..........................13 Bulgaria 16.8 Inefficient government bureaucracy........8 110 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...........5..............5 8th pillar: Financial market development....................63 .7 Inadequate supply of infrastructure ........114 .............1: Country/Economy Profiles Bulgaria Key indicators...............76 ..........1 GDP per capita (US$) ..4...........0 GCI 2008–2009 (out of 134).5.............58 ............76 ....4.........65 ................6 3rd pillar: Macroeconomic environment ......8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..................................223 GDP (PPP) as share (%) of world total .......3.....................................4.4.......7 Restrictive labor regulations .......95 .............................................................67 ...........................42 ........92 ......4..............................3............71 ......6 Tax regulations ..............82 ......................................................4.....................9...............2 11th pillar: Business sophistication.........72 ........1 Transition 1–2 1 GCI 2009–2010 (out of 133)........................58 ..........................0 9th pillar: Technological readiness..............4.................91 ....................8 Government instability/coups .........................................................................000 4.....................................................................4.9 Policy instability...........5 Poor public health .............................3 Inadequately educated workforce. 1980–2009 Population (millions).............................3.48 ...................................................3.........5 12th pillar: Innovation...................2..............80 ....................1 6th pillar: Goods market efficiency......1..............2 Crime and theft ............................4......2........................................4 Tax rates ..............0............4.......6................... The bars in the figure show the responses weighted according to their rankings.......4 1st pillar: Institutions .. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .........................4............0 4th pillar: Health and primary education ...............9.............................. 2009 GDP (PPP) per capita (int'l $).........000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.........1 5th pillar: Higher education and training ........................................................................ respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5...................5 GDP (US$ billions)..................13........................4 Foreign currency regulations.............0 Factor driven Basic requirements....0 7th pillar: Labor market efficiency ................0 Poor work ethic in national labor force .....................2....................................9 Financial market development Goods market efficiency Labor market efficiency Bulgaria Efficiency-driven economies The most problematic factors for doing business Corruption..................................................................7................3 2nd pillar: Infrastructure..................000 8.........7...........47..................3.000 Central and Eastern Europe 12.............................7 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..7 Inflation ..........4............4...........3..................................5......................0 10th pillar: Market size.....................1 Access to financing ............................................95 ...6...8.............................2..........15.......................................

..12 6................126 Burden of customs procedures........05 12..............121 Intellectual property protection ........08 4..................................01 4....................05 5..............................137 Prevalence of trade barriers ................94 Internet access in schools........................71 HIV prevalence* .............................03 9......................1 Infant mortality* ........................................................................................................................05 7............................111 Financing through local equity market ................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 111 ..........07 7.....119 Transparency of government policymaking..................................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1................................................................ For further details and explanation........................13 Country credit rating*......................07 Capacity for innovation ...............................90 Burden of government regulation .................135 6.......109 Legal rights index* ...............02 6.........................04 5.....................35 8th pillar: Financial market development 8............05 8........................................05 9...02 11.....................................10 6................................................................................02 Foreign market size index* ...............................................................................................89 Extent of marketing.76 Primary education enrollment rate* ..........96 Fixed telephone lines* .........................03 6........05 6..............................4 Prevalence of foreign ownership ......................15 Intensity of local competition ....72 Local supplier quality ......79 Quality of scientific research institutions .....................................105 Regulation of securities exchanges ............................................65 11th pillar: Business sophistication 11............................08 8........................................................110 Gov’t procurement of advanced tech products ............02 8..........................................36 Number of procedures required to start a business* ................................03 1.............................................94 Extent of market dominance....07 5...51 5th pillar: Higher education and training 5.04 6.....................................................03 12.................06 6.....67 4th pillar: Health and primary education 4............114 Extent and effect of taxation...................59 Rigidity of employment* ......................................04 2.....................03 2.....................02 7.01 2.......................86 Tuberculosis incidence* ..124 Reliability of police services .......17 1...............116 Brain drain ............................84 2..............112 Degree of customer orientation ................................87 Effectiveness of anti-monopoly policy .........04 4...........................08 6............................76 Efficiency of legal framework in settling disputes ............64 National savings rate* ........................87 Quality of air transport infrastructure ....91 Efficacy of corporate boards ........................130 Business costs of terrorism ........................58 Reliance on professional management .............01 8...............................................44 Internet bandwidth* ...........................................................................13 1...........................92 Business costs of crime and violence...........................................06 2...........96 University-industry collaboration in R&D .....................................127 FDI and technology transfer.........06 Availability of latest technologies ...................03 5.............124 Strength of investor protection* .....................1 Business impact of tuberculosis .....09 Local supplier quantity.................................46 Hiring and firing practices......................08 11..................................111 Ethical behavior of firms............................................................08 1.....73 Company spending on R&D.................07 8.............10 Business impact of malaria .......71 Restriction on capital flows ......................................................85 Quality of math and science education........ An asterisk (*) indicates that data are from sources other than the World Economic Forum....................13 6................100 Willingness to delegate authority..............................94 Judicial independence ......................................................05 3.........................54 Quality of port infrastructure ..07 1......69 Quality of management schools ..............................03 3........................................18 1...........112 Diversion of public funds.........110 Strength of auditing and reporting standards.........................06 11......107 Trade tariffs*............64 Business impact of HIV/AIDS.................09 Quality of overall infrastructure ................14 Time required to start a business*.....................01 5.....03 4........................90 Control of international distribution ...........................89 Buyer sophistication ...............................01 12......06 8.............................................................02 1....120 Quality of roads ......................................................................07 2................04 11......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....................01 7......07 11....02 3.......................................................................................................................04 3.........112 Nature of competitive advantage ...1 Malaria incidence*.......08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ......04 1...........01 3..........................90 Ease of access to loans....................03 11...................04 8........64 10..............................................05 4.....06 7..............09 1.............................................................................................64 Government debt* ................77 Utility patents per million population*.........14 1..........................62 Interest rate spread* ...................7 10th pillar: Market size 10...........82 Quality of electricity supply ..........16 Pay and productivity .98 Internet users* .......06 Government budget balance* ..............01 6....................................................................83 Total tax rate* ..............................................01 11........06 4.103 Organized crime ........................................16 1....................................67 Quality of primary education .........................11 1.102 Business impact of rules on FDI .100 Firm-level technology absorption .......................................81 Value chain breadth ..33 2nd pillar: Infrastructure 2.................................03 7..........1: Country/Economy Profiles Bulgaria 7th pillar: Labor market efficiency 7......................................................................................................................................................................03 8...........11 6............................111 Protection of minority shareholders’ interests .............08 7.........................................82 State of cluster development................................104 Irregular payments and bribes..................12 1......................................................05 11..02 2.........47 Life expectancy* .................09 Cooperation in labor-employer relations.....................02 5......66 Tertiary education enrollment rate*.............................................127 Female participation in labor force* ..........................09 4.......45 Mobile telephone subscriptions* .................02 9.84 Inflation*...............................................06 12.62 Venture capital availability..............................02 4............20 1...................07 4.......111 Soundness of banks ..........................................................................................................................06 1...................113 Flexibility of wage determination ..........................................02 12........................135 Quality of railroad infrastructure ................................................100 12th pillar: Innovation 12.....80 Extent of staff training...............................................................................................................................65 Agricultural policy costs.....................................................125 Efficiency of legal framework in challenging regulations .....................04 12.08 2......................01 1....101 Favoritism in decisions of government officials ......................................................16 3rd pillar: Macroeconomic environment 3......05 1..............................07 6................95 Affordability of financial services........09 Availability of financial services ...........06 5..04 7..................................................................21 Property rights...........05 2....................................31 Notes: Ranks of notable competitive advantages are highlighted......87 Availability of scientists and engineers .............................90 Available airline seat kilometers* .................................101 Public trust of politicians .....................46 Quality of the educational system........................................15 1.....................10 1...........14 6.................19 1...........................48 Broadband Internet subscriptions* ....04 9...........42 Redundancy costs* ...................01 9.........20 9th pillar: Technological readiness 9..........................................111 Wastefulness of government spending ....................01 Domestic market size index*..09 6..............45 Local availability of research and training services.......................100 Production process sophistication.

.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..............................3.....................................6...1 9th pillar: Technological readiness.............................4 Poor public health ....135 ............124 ....3...............3.......................2 Transition 1–2 1 GCI 2009–2010 (out of 133).......................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.....1 Foreign currency regulations...0..................000 1..............3....127 .4.....4........ 2009 GDP (PPP) per capita (int'l $).......................128 ....................15.............................127 .8.................................8 GDP (US$ billions).....................8 12th pillar: Innovation.........3.6 2nd pillar: Infrastructure..............90 ....................................134 ............2...5 6th pillar: Goods market efficiency.5 Government instability/coups ....133 ...........................................................134 .........8 Tax regulations ..................2....... The bars in the figure show the responses weighted according to their rankings....................1 GDP per capita (US$) ..........................2 4th pillar: Health and primary education .......3..119 ....................................3 Corruption...........3....................134 ..............6 Restrictive labor regulations ...1: Country/Economy Profiles Burkina Faso Key indicators......................................2 112 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation Infrastructure 6 5 Business sophistication Efficiency enhancers........4 Inadequate supply of infrastructure ........6 7th pillar: Labor market efficiency .......2................................3..........1 5th pillar: Higher education and training ..8 Inflation ....7 Inadequately educated workforce................3..................1 3rd pillar: Macroeconomic environment .8................................564 GDP (PPP) as share (%) of world total ................2 GCI 2008–2009 (out of 134)...........................7 Policy instability............7 10th pillar: Market size.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 .....03 Burkina Faso 3..................0 Crime and theft ..............91 ....................................................... 1980–2009 Population (millions)..................................................15...135 ...........................4 Factor driven Basic requirements...3............................................128 ...2.....................................2 8th pillar: Financial market development........................................2..........2...................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .........000 Sub-Saharan Africa 2.....................................................90 ..............0.................................24..........................0................................................................2.................2...............................................7...0 Tax rates ...........5 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...........................4................................................2..............4 Poor work ethic in national labor force ...........137 ...........9.......................5 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors............3 1st pillar: Institutions ...........................9 11th pillar: Business sophistication.......................................0 Inefficient government bureaucracy....120 .................0.......98 ..............................................11...................

...........................................134 Life expectancy* ......................................108 Primary education enrollment rate* ..........106 Female participation in labor force* .........126 Mobile telephone subscriptions* ............04 9....1: Country/Economy Profiles Burkina Faso 7th pillar: Labor market efficiency 7..........................88 Extent and effect of taxation........98 National savings rate* .15 Intensity of local competition .............................52 Agricultural policy costs.........................26 Country credit rating*......07 4..............................................................................02 6.........11 6.85 Ethical behavior of firms.............................06 7...........113 Firm-level technology absorption .................112 10...........................01 1...136 Local availability of research and training services...02 1...87 Irregular payments and bribes..................................................02 11.......04 3..........114 Infant mortality* .............15 1....................................06 6..............................06 4...........................30 8th pillar: Financial market development 8............86 Total tax rate* ...........................................................02 3.....04 6...101 FDI and technology transfer...............................02 9...........................................................................................................................16 1.......01 3........126 Soundness of banks .....................02 8....................07 5..................01 12........................01 8.........78 Intellectual property protection ............................13 1............................................................................01 5.138 12th pillar: Innovation 12.........14 6...............10 6.............................................................07 6..............123 Internet bandwidth* ........................01 11..........................................................................126 10th pillar: Market size 10..................114 Brain drain ..................................09 Availability of financial services ..................03 3.....97 Prevalence of foreign ownership ................07 11..............92 Quality of port infrastructure ...............................................................................................................135 Financing through local equity market .....131 Quality of the educational system............09 6........14 Time required to start a business*...........................70 Availability of scientists and engineers ...20 1...........................17 1..........................68 Burden of customs procedures.....03 6...09 4...........119 2nd pillar: Infrastructure 2..................139 Production process sophistication...........................................................................128 Extent of market dominance...01 9........01 7..............82 Notes: Ranks of notable competitive advantages are highlighted.......131 Available airline seat kilometers* ........................04 4...........08 11...................131 11th pillar: Business sophistication 11...104 Internet users* ...........06 8................................08 7........10 1...................03 8............109 University-industry collaboration in R&D ..........03 12.................12 1.................................01 Domestic market size index*.........................138 Reliance on professional management .............05 1....01 4........114 Inflation*....14 1....63 Organized crime ........91 Extent of staff training...........09 1.................92 Transparency of government policymaking...............................02 7.87 Ease of access to loans.............................................97 Strength of auditing and reporting standards.........................................56 Degree of customer orientation ....................................04 8....................................n/a Government debt* ...127 Malaria incidence*.........................18 1..............................77 Diversion of public funds....................................................110 Efficacy of corporate boards .................................................07 2.......................71 Protection of minority shareholders’ interests ...........................03 7......05 5.........19 1....05 2...............101 Business impact of rules on FDI ........02 12......84 Number of procedures required to start a business* ..................................13 6.............................................................................07 1...............137 Tertiary education enrollment rate*...........134 6.....................................10 Business impact of malaria .............................03 2...113 Buyer sophistication ................04 5..............127 Fixed telephone lines* ...... An asterisk (*) indicates that data are from sources other than the World Economic Forum.........................11 1..07 Capacity for innovation ... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 113 ...........................................135 3rd pillar: Macroeconomic environment 3......65 Efficiency of legal framework in settling disputes ..................03 11............................................................04 1.....................................139 2.........118 4th pillar: Health and primary education 4................................44 Trade tariffs*.....................................05 12............ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter........03 1....................................103 9th pillar: Technological readiness 9..05 3......03 9..........................................................03 4............115 Public trust of politicians ..................113 HIV prevalence* .................................06 2.......................77 Burden of government regulation .................................................................................................................93 Rigidity of employment* ................01 6...........06 12....06 Government budget balance* ..............................81 Reliability of police services ....................................................05 8......................................124 Flexibility of wage determination ..................02 4......................................................04 12.................................72 Prevalence of trade barriers ....................67 Wastefulness of government spending ............02 Foreign market size index* .......08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..........127 Favoritism in decisions of government officials ............................................05 11....05 9.........................................................08 1......................................................................................................08 6...............................132 Affordability of financial services......09 Local supplier quantity...................................12 6.....77 Strength of investor protection* ..............................................86 Business costs of terrorism ................................126 Quality of electricity supply .55 Redundancy costs* .............89 Internet access in schools...........................134 Broadband Internet subscriptions* ........................... For further details and explanation..................06 11............129 Quality of math and science education......58 Company spending on R&D..................04 2..................87 Quality of management schools ...80 Quality of air transport infrastructure ................................128 Quality of scientific research institutions ...........117 Legal rights index* .....05 7......66 Interest rate spread* .............................................05 6...............................................................................118 Effectiveness of anti-monopoly policy ............69 Efficiency of legal framework in challenging regulations ............122 Quality of railroad infrastructure ..............................09 Cooperation in labor-employer relations........................67 Pay and productivity .................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.......86 Regulation of securities exchanges ......06 5.........125 Value chain breadth ...................................................................................52 Business costs of crime and violence..............................08 8.................08 2............138 Business impact of tuberculosis ............................02 5...............................06 1............................................................................138 Restriction on capital flows ...................135 5th pillar: Higher education and training 5.......................07 7.......................136 Control of international distribution .......111 Business impact of HIV/AIDS...........110 State of cluster development...........................137 Venture capital availability....................................114 Judicial independence .02 2............05 4...........135 Willingness to delegate authority..04 11........21 Property rights...........................................................................................................09 Quality of overall infrastructure ..................................................................................................128 Quality of roads ...........................................06 Availability of latest technologies ...............................07 8............................115 Tuberculosis incidence* ................................................137 Extent of marketing......96 Local supplier quality ...............83 Gov’t procurement of advanced tech products ......50 Hiring and firing practices............04 7......................139 Nature of competitive advantage ......................................................01 2............................................03 5.................................94 Utility patents per million population*.....08 4......................................................................................125 Quality of primary education .....................

...............9 Poor work ethic in national labor force ..........8......2.0 7th pillar: Labor market efficiency .....................................2...19.....5.......01 Burundi 3....8 12th pillar: Innovation......................0.....................................3.121 .......3...........................................................................................000 1..................................................134 ..2..............................................1..2 3rd pillar: Macroeconomic environment ..........................1 Poor public health ................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.............................3 GDP (US$ billions)......2 Inefficient government bureaucracy.................132 .................................3...0 Transition 1–2 1 GCI 2009–2010 (out of 133)..0..........................4...3 8th pillar: Financial market development....8 2nd pillar: Infrastructure..........................................139 ................................6 11th pillar: Business sophistication....................0 Foreign currency regulations..........132 ...........................2................3.....................................10.........6 GCI 2008–2009 (out of 134)..............................................81 ..............................137 ........................163 GDP (PPP) as share (%) of world total ..................................5 Tax rates ...........................3 Financial market development Goods market efficiency Labor market efficiency Burundi Factor-driven economies The most problematic factors for doing business Access to financing .........135 .......6 Tax regulations ........................................5 Government instability/coups ...........20......................139 ..........................0 Corruption.....8 Restrictive labor regulations ................137 .................................................8 Inflation ...............0 6th pillar: Goods market efficiency......3.2....2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...............4 114 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .6 4th pillar: Health and primary education ...........2..................3 9th pillar: Technological readiness.............................3 GDP per capita (US$) ........2........ 1980–2009 Population (millions).................. 2009 GDP (PPP) per capita (int'l $).................................................... The bars in the figure show the responses weighted according to their rankings.2..2.............2................0 Inadequately educated workforce...........0 Factor driven Basic requirements....137 ....10.........................................2..............133 ......................2........3 10th pillar: Market size.......4............139 ........ 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 Burundi Key indicators.........................4 Inadequate supply of infrastructure .........................................................................5................7..........................................................5 Policy instability........1..3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ...............1..........000 Sub-Saharan Africa 2....137 ..........1.......2..........138 ...................................5 5th pillar: Higher education and training .....3....7............................................................138 ......138 ...........................................2 1st pillar: Institutions ..120 ...........5 Crime and theft .2....................

......................................10 6................138 Diversion of public funds............................................................01 5..............137 10......................71 Hiring and firing practices.......................................126 Quality of roads ............02 8...129 Trade tariffs*.........136 Production process sophistication......21 Property rights.......................09 4........05 8...............................09 1..................02 9........................................................................................................69 National savings rate* ...................08 4....128 Transparency of government policymaking.120 Quality of air transport infrastructure ...................................01 6...........03 9..........................09 Local supplier quantity.................124 Interest rate spread* ...........139 Efficacy of corporate boards .129 Quality of primary education .............06 Availability of latest technologies ............................................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 115 ................125 Flexibility of wage determination .................136 Brain drain ..................................133 6..............................................................09 Cooperation in labor-employer relations..............106 Utility patents per million population*.........................................135 Number of procedures required to start a business* .......120 Quality of railroad infrastructure ........11 6.........136 12th pillar: Innovation 12...........05 11.....................02 4................................139 Restriction on capital flows ............................................135 Venture capital availability..........................127 Intellectual property protection ..................................................06 Government budget balance* .........................11 1..48 Pay and productivity ......139 Legal rights index* .....129 Inflation*............................04 11..........................132 Female participation in labor force* ..............138 Tertiary education enrollment rate*................................................75 Efficiency of legal framework in settling disputes ....04 1............06 12.......122 Business impact of tuberculosis .................................................05 7..n/a Quality of port infrastructure ........05 4...............04 4......................119 Infant mortality* ............The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1............................01 7....................04 9............................................13 6......129 Strength of investor protection* ......06 11....05 1............................................102 Local supplier quality .............................07 6.................04 12..............................................126 Reliability of police services .... An asterisk (*) indicates that data are from sources other than the World Economic Forum.........................03 5.................................125 Burden of government regulation .............................06 4....................12 1.....................................................................08 8............129 Organized crime ...............................................................................................10 1......................................................................113 Wastefulness of government spending ...........................................12 5th pillar: Higher education and training 5.........136 4th pillar: Health and primary education 4............135 Buyer sophistication .......06 2....134 Mobile telephone subscriptions* .03 1...........................15 Intensity of local competition ..............................138 3rd pillar: Macroeconomic environment 3..03 3.....129 HIV prevalence* ..02 2.....02 7.......138 Willingness to delegate authority.07 4.............................136 FDI and technology transfer.............16 1................08 2..................90 Notes: Ranks of notable competitive advantages are highlighted............135 Affordability of financial services................................12 6......................02 11...............134 Financing through local equity market ..........01 4.......................07 Capacity for innovation ............................................................................50 Effectiveness of anti-monopoly policy ...................................135 Soundness of banks ..........................................................................04 6.13 1.............116 Efficiency of legal framework in challenging regulations .....................123 Irregular payments and bribes.........................135 Judicial independence .08 7...134 University-industry collaboration in R&D ...........01 12....139 Public trust of politicians ...........08 1.... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.............................09 Quality of overall infrastructure ...............07 7........................01 8...05 6...................................131 Internet access in schools............................................................................................................................108 Government debt* ..01 2.............01 1.....................02 1.................04 2.....................16 Rigidity of employment* ...................138 2.......111 Prevalence of trade barriers .........02 3....86 Redundancy costs* ...........05 2.135 Extent of market dominance.................09 6.......43 Country credit rating*.07 2...................................117 Burden of customs procedures...........130 Degree of customer orientation .................................................................................................................69 Protection of minority shareholders’ interests ..129 9th pillar: Technological readiness 9.138 Extent of staff training.......................................................................128 Reliance on professional management ..........137 10th pillar: Market size 10.......................138 Nature of competitive advantage ......110 Time required to start a business*........................................................................03 2..............134 Business costs of terrorism ...134 Extent and effect of taxation....................123 Fixed telephone lines* ............137 Quality of electricity supply ...........................06 8.........................................05 9...............126 Business impact of HIV/AIDS......98 Agricultural policy costs.....19 1................03 8.......1: Country/Economy Profiles Burundi 7th pillar: Labor market efficiency 7...........125 Malaria incidence*...........................139 Extent of marketing.....................................................................136 Favoritism in decisions of government officials ...............133 Quality of the educational system..................................15 1.....................................04 5.......138 11th pillar: Business sophistication 11........................05 3..........128 Availability of scientists and engineers ..........127 Total tax rate* .............................................................................130 Business costs of crime and violence............................................................135 Broadband Internet subscriptions* ......................................137 Quality of scientific research institutions .......................05 12.....123 2nd pillar: Infrastructure 2..............132 Strength of auditing and reporting standards.............................................14 1......04 3...............01 3...........................................................................134 Quality of math and science education......134 Regulation of securities exchanges .......................................................................................04 7......127 Gov’t procurement of advanced tech products ........01 9........................01 11....06 6.....09 Availability of financial services ...........................08 6......................................03 6..........................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..........................................................01 Domestic market size index*.132 Primary education enrollment rate* ..............................................10 Business impact of malaria ........121 Available airline seat kilometers* .............................14 6...........................120 Tuberculosis incidence* .....................................02 6...........03 12..................110 Quality of management schools ..........................................................139 Local availability of research and training services.........03 4................................................................133 Control of international distribution ............................................................138 Ease of access to loans.........................................................................................................................07 8...5 8th pillar: Financial market development 8..07 11............................07 1................05 5........................................................02 Foreign market size index* .................02 12....138 Business impact of rules on FDI ......136 Life expectancy* ....07 5.............137 Internet bandwidth* .............................................................135 Ethical behavior of firms.......06 7.....112 Prevalence of foreign ownership ......................................................20 1.....03 7....................137 Firm-level technology absorption ......06 5.. For further details and explanation........06 1.........................129 Company spending on R&D..............127 Value chain breadth .............126 Internet users* ....................................................................................03 11.............128 State of cluster development.........................02 5.............08 11....04 8................................................17 1...............................18 1............................................................................................

......110 .......8 Policy instability...000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..............................775 GDP (PPP) as share (%) of world total ........2...............92 ....................................................2 Foreign currency regulations...................2...7 Financial market development Goods market efficiency Labor market efficiency Cambodia Factor-driven economies The most problematic factors for doing business Corruption............................6 Transition 1–2 1 GCI 2009–2010 (out of 133)..........................4.............109 ...3........1 11th pillar: Business sophistication ................12.... 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..............2 Government instability/coups ................5 Factor driven Basic requirements............................115 ...................4................5 GCI 2008–2009 (out of 134)............................................................4 Crime and theft .7 3rd pillar: Macroeconomic environment .............................................3..3...108 .............2.....................10.....3.........4 Restrictive labor regulations .. 2009 GDP (PPP) per capita (int'l $)...4.......6 5th pillar: Higher education and training ....7.............................1..................3.8 Tax rates .................96 ..............................106 ....8 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.................113 ..............................000 2...4...........8 116 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers......................51 ....9 9th pillar: Technological readiness..................8 4th pillar: Health and primary education .....................................................9 6th pillar: Goods market efficiency.........6 8th pillar: Financial market development..................... The bars in the figure show the responses weighted according to their rankings...3..106 ....... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...........................6 2nd pillar: Infrastructure........94 ................3............................000 Cambodia Developing Asia 4.......0 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....................1.......04 5...............0..................................8 GDP (US$ billions)..9 Poor work ethic in national labor force ..........................000 1.....3............6 Poor public health ......................................................110 ...122 ...................4 Inflation ..........................................................................2..............................................9 10th pillar: Market size....... 1980–2009 Population (millions)..........................................................................3..........................................5..........................................................12..7 1st pillar: Institutions ...........................................114 .5 Inefficient government bureaucracy........................................2.........109 ..17........................................2.........14.........................8 GDP per capita (US$) ......................................................1 Access to financing .......103 ......2................4 12th pillar: Innovation.......................2 Inadequate supply of infrastructure .3......0...............................2........................................1 Tax regulations ....81 ......21....000 3..116 ....0 7th pillar: Labor market efficiency .....................3..3................................................1: Country/Economy Profiles Cambodia Key indicators.....4.......

....................10 6..45 Redundancy costs* .........01 6...............................................................................05 6...........82 Quality of math and science education.............................................08 6...................77 Value chain breadth .................09 Local supplier quantity..............................106 Extent of market dominance.............................99 Quality of port infrastructure .............................................................05 7.....15 Intensity of local competition ................................................110 Intellectual property protection .12 1................................................................................................71 Financing through local equity market .......................05 4.....38 Internet users* ..........121 Efficacy of corporate boards ....64 Efficiency of legal framework in settling disputes .......................................................................................17 1...95 Quality of electricity supply .....03 9.......................................................05 11..............................121 State of cluster development........02 3.......73 Quality of railroad infrastructure ......07 5.........................107 Business costs of crime and violence...09 Cooperation in labor-employer relations.....................................................07 11...........................................................01 7..................03 11..........................04 7...10 Business impact of malaria ............06 7...........111 Extent of staff training..................................45 Country credit rating*.................................120 Life expectancy* ......................................02 12............................08 2.............02 9...................04 1........09 6..02 4.........08 4.......... An asterisk (*) indicates that data are from sources other than the World Economic Forum.......119 Tertiary education enrollment rate*....................05 9.............104 12th pillar: Innovation 12.......15 Number of procedures required to start a business* ....05 1.15 1.......129 Local supplier quality ..........103 Strength of investor protection* .............................88 Affordability of financial services.......................................................................122 10th pillar: Market size 10.............................96 10....53 Female participation in labor force* ..01 3..........................................01 4...01 11....124 Production process sophistication......03 5..........................01 5..........................................14 6......106 Company spending on R&D........33 8th pillar: Financial market development 8......................................................................76 Restriction on capital flows ....03 12........................................107 Internet bandwidth* ...........18 1............................................................................118 Extent of marketing..05 8...............121 Utility patents per million population*.......08 11..................................72 Efficiency of legal framework in challenging regulations .113 Malaria incidence*.........................19 1................................................124 Judicial independence ......06 Availability of latest technologies .............................03 2.35 Reliance on professional management .................59 2nd pillar: Infrastructure 2..79 Extent and effect of taxation.54 Soundness of banks ............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.....................95 11th pillar: Business sophistication 11..85 Strength of auditing and reporting standards....................................16 1........................01 Domestic market size index*..................75 Pay and productivity .............01 2...................05 3........................................61 Transparency of government policymaking..................................03 1........137 Broadband Internet subscriptions* .80 Flexibility of wage determination ......................................................................................21 Property rights.......................................................14 1.......................................................................61 Total tax rate* ............12 Interest rate spread* ...........................06 1...................................................................................132 Business impact of HIV/AIDS....................................82 University-industry collaboration in R&D ................................................................01 12.......112 Fixed telephone lines* ........................125 Government debt* ...........06 11................05 2............49 Irregular payments and bribes....................................103 Firm-level technology absorption ....................118 Tuberculosis incidence* ..................04 4....................108 Favoritism in decisions of government officials ......109 4th pillar: Health and primary education 4...................................02 7......03 3...................01 9..........................................................................................................10 1................97 Infant mortality* ...............04 8.................101 Regulation of securities exchanges .........02 5..87 Public trust of politicians .06 6......................108 National savings rate* ...............................................................109 Willingness to delegate authority........37 Burden of customs procedures.........................................83 Available airline seat kilometers* .........................................................09 4...................................................................02 11..115 Quality of the educational system.............................132 Agricultural policy costs.....................................122 Legal rights index* ..........50 Burden of government regulation ....................04 11......................07 1..............................................82 Quality of air transport infrastructure ......................06 4...........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..135 Mobile telephone subscriptions* .......83 Quality of roads ..11 1...............................06 Government budget balance* ...............90 Notes: Ranks of notable competitive advantages are highlighted...........................................110 Inflation*...........20 9th pillar: Technological readiness 9.03 7.07 Capacity for innovation ....................97 Brain drain .......................................................................................................01 8.......................................................03 4....................09 Quality of overall infrastructure ...............07 7........................................02 2....114 HIV prevalence* ....................................47 Prevalence of trade barriers ...........09 Availability of financial services .................92 6.................................02 Foreign market size index* ........................08 8..04 6.........123 Ease of access to loans..06 8.........69 Buyer sophistication .......03 6..................................................................12 6..101 Quality of scientific research institutions ......99 Diversion of public funds.......125 Business costs of terrorism ........................05 5.....................92 Venture capital availability..................................115 Ethical behavior of firms.............111 Quality of management schools ..........53 2..................................................113 Quality of primary education ...............................................................................................04 2.........115 Gov’t procurement of advanced tech products ...........................06 5............................01 1...........116 Prevalence of foreign ownership ..........................08 7..............58 Wastefulness of government spending .115 Degree of customer orientation .........................................07 6...................89 Hiring and firing practices.........................................13 6...............04 5...............03 8........... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 117 ..........110 Local availability of research and training services.......................77 Trade tariffs*.........................95 Protection of minority shareholders’ interests ..............................................113 Business impact of tuberculosis .....................05 12...................................93 FDI and technology transfer.......07 4...............................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ....02 6.....................................122 3rd pillar: Macroeconomic environment 3......................88 Time required to start a business*.........09 1........08 1...07 8.......................................................................... For further details and explanation.........................................90 Reliability of police services ........87 Rigidity of employment* ...........................................................................11 6........................95 Organized crime ....65 Availability of scientists and engineers ..............................................111 Primary education enrollment rate* .........................51 Nature of competitive advantage ......104 5th pillar: Higher education and training 5..103 Control of international distribution ...........................................02 8..............04 12...80 Effectiveness of anti-monopoly policy ................................................1: Country/Economy Profiles Cambodia 7th pillar: Labor market efficiency 7....118 Internet access in schools...04 3....................................91 Business impact of rules on FDI .........................................................................................................................06 2...............................................13 1.............................................06 12.....................................07 2...20 1..................................................02 1.............04 9..

.. 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..114 .........3.........53 ...........9 Financial market development Goods market efficiency Labor market efficiency Cameroon Factor-driven economies The most problematic factors for doing business Corruption.20...................................0....................................3 12th pillar: Innovation.............5 GDP (US$ billions)........3...................................................3 9th pillar: Technological readiness......................12........................3 5th pillar: Higher education and training ..............3.........................................2...................................... 2009 GDP (PPP) per capita (int'l $)....4 Inadequately educated workforce..........21.............111 .............................................0 6th pillar: Goods market efficiency.........000 1...............2 GDP per capita (US$) ....11............................... 1980–2009 Population (millions)............13.........................................117 ...............................................4........................3...............91 ...........99 ........3............................10.3..........6 7th pillar: Labor market efficiency ...............................126 .0....0 Crime and theft ....5 Inflation .................................................2 Inadequate supply of infrastructure ..3.....5 Factor driven Basic requirements.......................8 4th pillar: Health and primary education ..........................................................................................3........................................1 8th pillar: Financial market development..............4 Tax rates .........2 Foreign currency regulations..116 .........................3 Policy instability............107 ............................4 2nd pillar: Infrastructure.5 Poor work ethic in national labor force .........118 .............1 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............116 .........3......................06 Cameroon 3...........5 GCI 2008–2009 (out of 134).......................... The bars in the figure show the responses weighted according to their rankings..3 Access to financing .............................................19......4..3.........2...............................123 ..................................111 .......................................................8 10th pillar: Market size...........................................115 GDP (PPP) as share (%) of world total .....121 ..............................105 ............................111 ................................1.........................2.0.....2.119 ...............95 ................................................1: Country/Economy Profiles Cameroon Key indicators...........7 Tax regulations ..2.1.2 Poor public health .....000 Sub-Saharan Africa 2..............................22..................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...0........8 1st pillar: Institutions ...........3..........................4 3rd pillar: Macroeconomic environment ............1 11th pillar: Business sophistication...........6 Transition 1–2 1 GCI 2009–2010 (out of 133).4.5 118 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.........0......2.........3.1................2.......1 Government instability/coups ...........................1 Inefficient government bureaucracy......................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.9 Restrictive labor regulations ...............................................

..................................07 7..................04 12.....04 6.........13 6.........04 1...81 Organized crime ...109 Availability of scientists and engineers ...........81 Inflation*..................................................................01 11....................119 Tuberculosis incidence* ......................121 3rd pillar: Macroeconomic environment 3.................................. An asterisk (*) indicates that data are from sources other than the World Economic Forum.........................................................81 Quality of management schools .............................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ............128 Restriction on capital flows .....99 Internet users* .................................................32 Trade tariffs*...........114 Firm-level technology absorption ........................88 10......131 Nature of competitive advantage ..............................11 National savings rate* ......74 Internet access in schools.02 Foreign market size index* ...................85 Brain drain ....07 11..............................................................124 Public trust of politicians .................13 1........................................10 6.127 Infant mortality* ................................06 Government budget balance* .....102 Agricultural policy costs............17 1.....................................................130 Life expectancy* ......................95 FDI and technology transfer....77 Primary education enrollment rate* .............05 6.....................121 10th pillar: Market size 10..........................104 Business impact of HIV/AIDS..118 Fixed telephone lines* ..............................05 5.....12 1.......................07 5..............................12 6...............................127 Financing through local equity market ...05 2..79 Quality of math and science education.................................................................................122 Available airline seat kilometers* ......................90 Efficiency of legal framework in challenging regulations ..05 3.98 Flexibility of wage determination ..02 5.........................................101 Efficiency of legal framework in settling disputes ...................55 Prevalence of trade barriers .......................06 Availability of latest technologies ..........................09 4....................93 6.06 7.....................41 Business impact of rules on FDI ..103 9th pillar: Technological readiness 9.......................................117 Favoritism in decisions of government officials .........95 8th pillar: Financial market development 8......................101 11th pillar: Business sophistication 11........................................................................................................................................01 3..........117 Female participation in labor force* ........................90 Degree of customer orientation ...............96 Intellectual property protection ..............01 1.........135 Internet bandwidth* .........................97 Transparency of government policymaking........................................119 Mobile telephone subscriptions* .08 2...................05 12..88 Ease of access to loans.............................................................................08 7..........117 Business costs of terrorism .09 Cooperation in labor-employer relations...........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.....................................................................................................................................................101 Willingness to delegate authority....................................................09 1..06 2....03 4.............09 6......................................................01 2...........................................120 Legal rights index* .....................04 7......................................05 8..................................119 Total tax rate* ...............................121 Tertiary education enrollment rate*..06 11.....07 8......................................................................................63 University-industry collaboration in R&D ................................................. For further details and explanation.....................................................66 Pay and productivity ...............123 Efficacy of corporate boards ........06 12..............................21 Property rights.......................................................................02 9................115 Government debt* ...57 Extent of market dominance.............................................02 2..................................114 Time required to start a business*...........131 Value chain breadth ........................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...............133 2.................108 Reliance on professional management .....113 Gov’t procurement of advanced tech products ..........132 Venture capital availability...........................07 6..........03 9...............................................................................................01 7..........88 Local supplier quality ..................................121 Strength of auditing and reporting standards.....83 Notes: Ranks of notable competitive advantages are highlighted..............................................01 5...............96 Extent of staff training........................................................................................02 8..........................................................101 Irregular payments and bribes......................................................................05 4..............................................................03 3.................06 8...........123 Business impact of tuberculosis .............106 5th pillar: Higher education and training 5............102 Quality of scientific research institutions .115 4th pillar: Health and primary education 4..............08 11..............02 6........................01 Domestic market size index*...........01 6......................01 12..........................18 1............................110 Quality of air transport infrastructure ......04 2............ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 119 ..........................88 Buyer sophistication ..............08 1.....07 Capacity for innovation .........05 1........................99 Control of international distribution ...70 Business costs of crime and violence..10 Business impact of malaria ............................20 1.....................................14 Country credit rating*...................................................07 2.........127 Production process sophistication...........................84 Regulation of securities exchanges .......................10 1.......................113 12th pillar: Innovation 12......04 9.....................................19 1..........................74 Rigidity of employment* .............09 Availability of financial services ..05 7...............02 4.....................................99 State of cluster development........02 1.........75 Quality of port infrastructure ......................16 Redundancy costs* .......15 Intensity of local competition .........................08 4........................................97 Company spending on R&D........09 Quality of overall infrastructure ....121 Quality of roads ......80 Reliability of police services ...07 4...........103 Number of procedures required to start a business* ................................................04 5..........01 8.....................06 5........................48 Protection of minority shareholders’ interests ..........................................................09 Local supplier quantity.........08 6...........96 Hiring and firing practices.................................05 9......108 Burden of customs procedures...103 Ethical behavior of firms...................................................02 11........................................113 Quality of the educational system...............................02 12.....................................03 8............06 4.................................14 6.........................................15 1...72 Interest rate spread* .......................................................05 11....04 3..............04 11...........................................128 Quality of primary education .........116 Quality of railroad infrastructure .......................................................................................106 Diversion of public funds..................14 1................102 Quality of electricity supply .............................16 1..................122 Local availability of research and training services...........04 4......77 Extent and effect of taxation......11 1...............123 Judicial independence ..39 Utility patents per million population*......................75 Effectiveness of anti-monopoly policy .................08 8.........................................03 1.......122 Broadband Internet subscriptions* ..................................................117 HIV prevalence* .................................................................................01 9.............................................................03 5........................................................65 Strength of investor protection* ......................................04 8..................1: Country/Economy Profiles Cameroon 7th pillar: Labor market efficiency 7...............127 Affordability of financial services...........80 Wastefulness of government spending ..................................................02 3..................................................................................07 1.........................03 12.11 6...107 Extent of marketing....03 7.........03 2.....................02 7.....................06 1..............................129 Malaria incidence*...100 Soundness of banks .................100 Burden of government regulation ................125 Prevalence of foreign ownership ..............................06 6.........03 11.............................01 4................99 2nd pillar: Infrastructure 2............03 6............

................................................13.................................................................0.......................................11 ..........................2 Tax regulations ................11 ...............14 .10 ..........................0 Access to financing ...........4 Inflation .85 Canada Advanced economies 50...3 Corruption..6 .........................................................7 6th pillar: Goods market efficiency.........5...................5...1 Inadequate supply of infrastructure .......000 20.6 GDP (US$ billions)....3 Crime and theft ...........6..................5 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....................................5..0................8 .....................13........0 Policy instability..7 Poor work ethic in national labor force ................1.................................................9 .....................4 8th pillar: Financial market development..5...5..6 ...................................................336........6 120 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.....1 Foreign currency regulations.4........6................4 GDP per capita (US$) ............................................5...............1: Country/Economy Profiles Canada Key indicators........................................ 1980–2009 Population (millions).....................7.....................2...........................................................................18....................12.......................3 Inadequately educated workforce.........2.....2 9th pillar: Technological readiness.......5..................2 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.......16 .................12 ..............5.........................................9 Financial market development Goods market efficiency Labor market efficiency Canada Innovation-driven economies The most problematic factors for doing business Tax rates ...4.16 ..11 ....................1......................................................000 30....5.......................................... 2009 GDP (PPP) per capita (int'l $)..........8 1st pillar: Institutions ........1 10th pillar: Market size...................................................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011......................................36 ..........................................1 Restrictive labor regulations ..........669 GDP (PPP) as share (%) of world total ..............1 7th pillar: Labor market efficiency .........4 Poor public health ... 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 GCI 2008–2009 (out of 134).................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..........4 Factor driven Basic requirements..........5...............4 Inefficient government bureaucracy.3 5th pillar: Higher education and training ............................................................15..................5...................3 Transition 1–2 1 GCI 2009–2010 (out of 133)...................................................33.......1........................................0...8 3rd pillar: Macroeconomic environment ......................... The bars in the figure show the responses weighted according to their rankings...................................0........14 ..............5 Government instability/coups ................5.................6 2nd pillar: Infrastructure...000 40.......0 12th pillar: Innovation........11 ........................0 11th pillar: Business sophistication...............10 ....5............1 4th pillar: Health and primary education ..........5....9 ...................5.....39.........5.....6 ...000 10.......5..........................

....01 6...03 9............................................................12 6...............03 5..........................................................................09 4..............................10 Business impact of malaria ....................................................................................60 9th pillar: Technological readiness 9........................08 6....05 11..........................................16 1......................15 Extent of marketing...02 4.........1 Business impact of tuberculosis ..3 Internet access in schools.............19 1.......................................01 5..8 Strength of auditing and reporting standards.........................05 6................................................2 Affordability of financial services................8 5th pillar: Higher education and training 5..........................................................80 Inflation*......................6 Utility patents per million population*......15 1....................10 1....................33 Rigidity of employment* .......................13 6............................................02 8.............................16 Quality of port infrastructure ....01 12..................................10 Intellectual property protection .................................19 Restriction on capital flows .........24 Interest rate spread* .............12 Internet bandwidth* .......................................................................................14 6.....20 Extent of market dominance...........15 Redundancy costs* ....................................09 Quality of overall infrastructure ....07 Capacity for innovation .......................18 1........................................................................................................9 Tuberculosis incidence* ............20 1.....................20 Local supplier quality ..............................02 2..............12 1......................20 Government debt* ....................7 State of cluster development.....................08 11...............05 1.............8 Hiring and firing practices.........07 2.............................07 8..........................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .............07 7...........04 4.......13 Diversion of public funds....................27 Quality of the educational system....04 2.............................................................................................................06 4....................06 5.............. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....................100 3rd pillar: Macroeconomic environment 3........................8 Business impact of HIV/AIDS........25 HIV prevalence* ........................05 2..............................02 1..................12 6.............................11 Business costs of terrorism ..................41 Efficiency of legal framework in settling disputes ................................10 Quality of management schools .....7 Gov’t procurement of advanced tech products ......09 6.......01 1.........................22 FDI and technology transfer....................................35 Life expectancy* .....................................10 Willingness to delegate authority.....................10 Notes: Ranks of notable competitive advantages are highlighted.....13 Effectiveness of anti-monopoly policy ...11 Business impact of rules on FDI .............................................................9 Agricultural policy costs...................................................................................................................................................................................06 12.....................04 11...............................................14 Efficiency of legal framework in challenging regulations ............08 7.....................................................................................................................................56 Value chain breadth .....................20 University-industry collaboration in R&D ..02 6...........................20 Wastefulness of government spending .......6 Efficacy of corporate boards ...........................................................................................................................................................04 3.............................17 1.........01 8...........08 2.........................................22 Legal rights index* ...................06 1...........02 Foreign market size index* .............11 Quality of primary education .......14 Quality of air transport infrastructure ........................................... For further details and explanation........................................................................28 Flexibility of wage determination ..............10 6...........................55 Pay and productivity ...........................03 1...............................08 4.............................................19 Tertiary education enrollment rate*.........................................8 Ease of access to loans....04 9.................27 Degree of customer orientation ..................................................18 Transparency of government policymaking...................24 Venture capital availability...........03 12..........08 1.......................06 8....................45 Trade tariffs*......................26 Availability of scientists and engineers ....07 1.....7 12th pillar: Innovation 12..............................................28 Prevalence of trade barriers .................................05 9.......................................................................5 Quality of math and science education..23 Irregular payments and bribes.48 Burden of customs procedures.......................04 6.......01 11....05 7.........01 2...............................................03 6.............................................................18 11th pillar: Business sophistication 11..............................06 11........36 Production process sophistication.........................................38 Prevalence of foreign ownership ......................11 Favoritism in decisions of government officials ...........120 Country credit rating*..................................................................11 Extent of staff training.01 7..............33 Control of international distribution .....04 5...........................................05 4...5 2nd pillar: Infrastructure 2......9 Primary education enrollment rate* ......................................17 Quality of railroad infrastructure ..................... An asterisk (*) indicates that data are from sources other than the World Economic Forum...06 2..............................04 8................1: Country/Economy Profiles Canada 7th pillar: Labor market efficiency 7....................02 11....................10 Quality of electricity supply .........................................32 Burden of government regulation ............18 10th pillar: Market size 10.......11 Nature of competitive advantage ..................................12 Mobile telephone subscriptions* ......................................7 Ethical behavior of firms.21 Property rights............04 7..............09 1...............14 Financing through local equity market .....03 11......................................09 Availability of financial services ....29 Internet users* .................................4 Protection of minority shareholders’ interests ............................................................07 11............................................................04 1....................................................................................14 Extent and effect of taxation.........08 8.............06 Government budget balance* ............................34 National savings rate* ....13 Quality of roads .......................06 7.......................02 9..........................................06 Availability of latest technologies ..........................4 4th pillar: Health and primary education 4...............07 5...............13 Local availability of research and training services.14 10........................................................................................05 8.............................13 1............24 8th pillar: Financial market development 8......................................9 Female participation in labor force* ....................................02 3...07 4............04 12...........14 Fixed telephone lines* ...........14 1..............77 Infant mortality* .......................................11 6...............1 Malaria incidence*...........03 3..01 3..50 Reliability of police services ....11 1..................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 121 ........................................01 Domestic market size index*..................................5 Brain drain ............................02 12....................02 7....................39 Soundness of banks ..............8 Strength of investor protection* ................03 7..........03 8...................................96 Business costs of crime and violence...........1 Regulation of securities exchanges .................6 2..........05 3......................................15 Intensity of local competition ..01 9.......................................................................8 Company spending on R&D.The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..................................................................................07 6......16 Public trust of politicians ............79 Number of procedures required to start a business* ..................1 Time required to start a business*.........49 Organized crime ..................................14 Firm-level technology absorption ..02 5.......................09 Local supplier quantity....23 Available airline seat kilometers* .......30 Reliance on professional management .......13 Buyer sophistication ...............................01 4.............12 Judicial independence ..........05 5.....19 Quality of scientific research institutions .........06 6............48 Total tax rate* ............03 4....................09 Cooperation in labor-employer relations...................15 Broadband Internet subscriptions* .............05 12......03 2....................................................................

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

..................68 Quality of railroad infrastructure .............119 Pay and productivity ..................................................66 Prevalence of trade barriers ..62 Value chain breadth ..............02 3.....114 5th pillar: Higher education and training 5.............................88 10th pillar: Market size 10................................................06 12..........................121 Internet access in schools...........................99 Quality of roads .....................................................100 Malaria incidence*......................................134 Nature of competitive advantage ..................................08 7.............131 Fixed telephone lines* .........05 5...............................06 8................................................104 Country credit rating*..............63 FDI and technology transfer...................................................................117 Reliance on professional management .................05 2...............11 1.........05 7......07 Capacity for innovation ..02 5........................07 4.39 Public trust of politicians .......03 3..85 Mobile telephone subscriptions* .....90 Local availability of research and training services.....07 5.........02 12...........103 Venture capital availability..................135 Quality of scientific research institutions ..01 12...........11 6................................72 Business costs of crime and violence............................08 4..............07 7....................................46 Availability of scientists and engineers ....................................75 Broadband Internet subscriptions* ..16 1................103 National savings rate* ....01 7.03 1..109 2nd pillar: Infrastructure 2......67 Efficiency of legal framework in settling disputes ...........128 Local supplier quality ................107 Quality of electricity supply .............................................................................................................................72 Burden of customs procedures........................................89 Gov’t procurement of advanced tech products ..................02 11............................................................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 123 ...................................100 Number of procedures required to start a business* ........................................03 12.....116 Protection of minority shareholders’ interests .....................................................................74 Extent and effect of taxation......125 Trade tariffs*....137 Control of international distribution ..........................................................................................................01 8........................................91 3rd pillar: Macroeconomic environment 3...06 6..113 Affordability of financial services........................................................04 9.........................................................04 6.................................01 5.........................................................................................................................................10 1.......114 Hiring and firing practices...............................................54 Regulation of securities exchanges ...................09 Availability of financial services .....113 Willingness to delegate authority.....09 1............................69 Primary education enrollment rate* ..............87 Life expectancy* ..........06 4...........07 2....................................98 Business impact of HIV/AIDS.....................97 Infant mortality* ......82 Business impact of tuberculosis ..........127 Diversion of public funds............04 4.............103 Quality of the educational system.....06 2.......................01 9...........05 3..............................43 Wastefulness of government spending ........................67 Business impact of rules on FDI ...................127 Degree of customer orientation ......................................................43 Burden of government regulation .........05 9.........02 9.......02 8..........15 1......96 Organized crime ..103 Prevalence of foreign ownership .......................................1: Country/Economy Profiles Cape Verde 7th pillar: Labor market efficiency 7............07 1.............132 12th pillar: Innovation 12................................................................115 Restriction on capital flows ................................................................04 8...................................17 1.08 11.............................01 4.......................02 6..........06 5.....................................88 Time required to start a business*......................04 3..............................................05 6......08 2......75 Strength of investor protection* ..........04 1.79 Agricultural policy costs............93 Reliability of police services ..........................10 6.02 Foreign market size index* ..........02 1.......45 Judicial independence ..................85 HIV prevalence* .............................................03 8...............06 Government budget balance* ........................................03 2....101 Tertiary education enrollment rate*.................06 1................................................ For further details and explanation..............................136 Buyer sophistication .........18 1....................................84 Effectiveness of anti-monopoly policy ......... An asterisk (*) indicates that data are from sources other than the World Economic Forum............100 Intellectual property protection ..................................92 Tuberculosis incidence* ........................................05 1.......113 Extent of marketing.............82 Inflation*.........102 8th pillar: Financial market development 8.........12 6.............................................................97 Quality of management schools .......................................................................................02 2..............................n/a Quality of port infrastructure .........21 Property rights.................................01 6..........................................................19 1................39 Interest rate spread* ........90 Notes: Ranks of notable competitive advantages are highlighted.............90 Internet bandwidth* ...................................109 Brain drain .....02 7.................................................06 11............09 Cooperation in labor-employer relations.....................94 4th pillar: Health and primary education 4.......................................63 Ethical behavior of firms......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................07 8............09 Local supplier quantity.......................................................................................130 State of cluster development............75 Female participation in labor force* ...................98 Financing through local equity market .......01 11..............................................................................12 1.....134 Production process sophistication..............05 8............The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1............................................08 1..................09 6........................72 Firm-level technology absorption .......90 Quality of primary education .........................46 Rigidity of employment* ......07 11.....03 7...............................01 2....03 5.........................121 Extent of market dominance..............01 3......................................109 Redundancy costs* .............05 12.........................................................09 Quality of overall infrastructure ................................................65 Quality of math and science education................................06 Availability of latest technologies ............................99 Efficacy of corporate boards ..78 Soundness of banks ................................08 8.13 6.........................14 6......................04 2.....136 University-industry collaboration in R&D ...........08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .......89 Government debt* .....01 Domestic market size index*....................10 Business impact of malaria .........................44 Strength of auditing and reporting standards...................08 6............................................................121 Company spending on R&D..03 11.........................01 1..100 2...15 Intensity of local competition .........................03 9.139 10...........................................55 Ease of access to loans............04 12.....04 11..............50 Business costs of terrorism ..................14 1.......................................................107 Utility patents per million population*...........................102 Quality of air transport infrastructure .........................................................................129 Extent of staff training...............................13 1...05 11.........06 7..............................51 Legal rights index* .....03 6....................................................................................................................................................................................04 5................................................................20 1.....................137 11th pillar: Business sophistication 11...........................................02 4......69 Internet users* ..............92 Flexibility of wage determination ..........82 Efficiency of legal framework in challenging regulations ............05 4...............................................................................................24 Irregular payments and bribes................03 4..................120 6.............................129 9th pillar: Technological readiness 9................................07 6................................82 Available airline seat kilometers* .......09 4........................................................94 Total tax rate* ...............58 Favoritism in decisions of government officials ......................88 Transparency of government policymaking..............04 7..

.....................2...........2...................................................3....134 .................................................0 Inadequate supply of infrastructure ........3...................6 Government instability/coups .......9 2nd pillar: Infrastructure......10.11................7 1st pillar: Institutions .........2...3 Access to financing ........................................2.................................2.........000 Sub-Saharan Africa 2.. The bars in the figure show the responses weighted according to their rankings...........115 ...........................3 6th pillar: Goods market efficiency....9..............................5....................131 ...................133 .... 1980–2009 Population (millions)....................1..........139 ......8 5th pillar: Higher education and training ...............0.....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.......5............ 2009 GDP (PPP) per capita (int'l $)...2..........................2..................137 ......................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ..............................................7 Transition 1–2 1 GCI 2009–2010 (out of 133)...........0 Poor public health ................................000 1..............687 GDP (PPP) as share (%) of world total .....6...2...2......................................................9 Tax regulations ....2.3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.........2....................................................2 8th pillar: Financial market development......134 ........2....0 Inflation ..4.....5 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .........8 3rd pillar: Macroeconomic environment ................3...........120 .........1...................................8 Factor driven Basic requirements.......................................................139 .....2 GDP (US$ billions)..................2......0 Foreign currency regulations........6 Financial market development Goods market efficiency Labor market efficiency Chad Factor-driven economies The most problematic factors for doing business Corruption...1 Tax rates .8..........................................136 ............137 ...............................1 4th pillar: Health and primary education ................................ 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.....................7 Inefficient government bureaucracy.138 .............9 12th pillar: Innovation...........................................................................5.......4 Poor work ethic in national labor force ....16...02 Chad 3...............................................................8 9th pillar: Technological readiness.................130 .95 ........138 ........................................9 124 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..................................9 GDP per capita (US$) ................138 ....................2..........135 ..7 Inadequately educated workforce...........9 GCI 2008–2009 (out of 134)..............................3........................................8 11th pillar: Business sophistication...............................................................3.9 Crime and theft .3 10th pillar: Market size............9 7th pillar: Labor market efficiency ......................................137 ......................2 Restrictive labor regulations .....................................................................2......19................2..........1: Country/Economy Profiles Chad Key indicators.2....

.................... For further details and explanation.....07 2....08 1......01 11...............118 Quality of scientific research institutions ...............................04 7.....07 11.............................................110 Strength of investor protection* ..138 FDI and technology transfer.................................133 Quality of air transport infrastructure ...........................10 1.....01 5........................04 12......................137 Degree of customer orientation ................136 Trade tariffs*.........03 5.........03 1...........................................................................01 12........133 Financing through local equity market .01 3.....128 Strength of auditing and reporting standards.........105 Female participation in labor force* .................139 Firm-level technology absorption .........................132 Protection of minority shareholders’ interests ........................09 6..........138 Local availability of research and training services......136 Available airline seat kilometers* ...................................................................................................72 Redundancy costs* ..................................08 2........01 2.................05 12........126 Quality of railroad infrastructure ......................................................................................05 9.........................................................07 4..................................02 6............................05 3.........................................................1: Country/Economy Profiles Chad 7th pillar: Labor market efficiency 7..............................................02 12..............................................................................02 7............133 3rd pillar: Macroeconomic environment 3........................133 Public trust of politicians ......................................................................90 Notes: Ranks of notable competitive advantages are highlighted...15 Intensity of local competition ...............04 1...........11 1.....131 Diversion of public funds.........05 7.......132 Regulation of securities exchanges .03 6.66 University-industry collaboration in R&D ....................130 Soundness of banks .......................03 8.....07 1....17 1.........103 9th pillar: Technological readiness 9.............................02 11....................06 12.....................................05 8.....................................................................04 3....139 Extent of market dominance.......................05 4................117 Irregular payments and bribes.............................97 Utility patents per million population*............07 8.........................07 7..............131 Quality of roads ...119 Efficiency of legal framework in challenging regulations ...124 Company spending on R&D..................................81 Effectiveness of anti-monopoly policy ........................................................................01 1.......20 1............08 11.135 Quality of the educational system.......11 6..96 Prevalence of trade barriers ......02 4....125 Infant mortality* ....05 5........................................................133 Flexibility of wage determination .01 7.............................03 3........116 Favoritism in decisions of government officials .....................122 Control of international distribution ..134 Efficacy of corporate boards ....................117 Number of procedures required to start a business* ............................................................................10 Business impact of malaria .............................................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....07 5...................................................124 12th pillar: Innovation 12.....06 8....................138 Brain drain ................................138 Affordability of financial services...137 2.03 7..........................................92 Restriction on capital flows ...................115 Venture capital availability................132 Internet users* .......116 Gov’t procurement of advanced tech products ........134 5th pillar: Higher education and training 5.....................................................................14 6.............................13 6...............................111 Burden of government regulation ...131 Extent of staff training......................09 4............................135 State of cluster development...................04 6...The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..130 Agricultural policy costs..........04 2.......................01 8..............131 Quality of primary education ..138 Production process sophistication.................02 1..................................................................136 Time required to start a business*........................................................01 6......126 Prevalence of foreign ownership ....100 Efficiency of legal framework in settling disputes ..........................................138 10th pillar: Market size 10.......................................75 Rigidity of employment* .......................108 11th pillar: Business sophistication 11.........136 Intellectual property protection ...............137 4th pillar: Health and primary education 4..132 Burden of customs procedures..120 Interest rate spread* ....114 Availability of scientists and engineers ...............02 9............n/a Quality of port infrastructure ............09 Availability of financial services .................................134 Legal rights index* ....03 2...................................105 Transparency of government policymaking...........03 11...........................................113 Reliance on professional management .06 Government budget balance* ...................................................04 11..............................139 Mobile telephone subscriptions* .........................................................02 2...............................................82 Hiring and firing practices................................................06 6..................114 Organized crime ...........136 Willingness to delegate authority........................................................................103 Value chain breadth .19 1................123 10.......................04 9.................................09 Cooperation in labor-employer relations.......13 1....................09 1................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ....................................................................138 Internet bandwidth* .....137 Business impact of tuberculosis ..............08 7............................................119 Nature of competitive advantage ..........01 4...................................................08 4........02 5........03 9..........................133 HIV prevalence* ....05 6..06 5..........112 Primary education enrollment rate* ...18 1...........137 Fixed telephone lines* .............................06 4.......................................137 Buyer sophistication ...125 6.........................................05 11...................128 Extent of marketing................................................................................................................06 7........08 8..................................................................................125 Inflation*..................... An asterisk (*) indicates that data are from sources other than the World Economic Forum....................136 Tertiary education enrollment rate*..........08 6....121 Extent and effect of taxation...120 Internet access in schools....................................................................118 Business impact of HIV/AIDS...................................................................................................................02 8.12 6.21 Property rights.......97 Wastefulness of government spending ............03 12..138 Judicial independence ..................................16 1...........................09 Quality of overall infrastructure ......12 1...134 Business impact of rules on FDI ..02 Foreign market size index* .........................09 Local supplier quantity.....................................131 Broadband Internet subscriptions* ..........129 Total tax rate* ...06 2.....................04 4.........................138 Business costs of terrorism ................02 3............119 Government debt* ...................................100 Local supplier quality ............................................07 Capacity for innovation ..........119 Ease of access to loans............04 8............................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 125 .......06 Availability of latest technologies ................114 Business costs of crime and violence..........................131 National savings rate* ..................................134 Tuberculosis incidence* ...............................................103 Quality of management schools ................01 Domestic market size index*......................05 2.................................................129 Reliability of police services .......................................06 1.............15 1..............................14 1.07 6.129 Quality of electricity supply .....................................................70 Pay and productivity ........................05 1..................06 11............................................31 Country credit rating*...............138 Life expectancy* ...12 8th pillar: Financial market development 8........................109 2nd pillar: Infrastructure 2..................................................................................................03 4.....................................................................................04 5..........................................................131 Ethical behavior of firms...................................................137 Malaria incidence*..................................01 9.....................................................................................97 Quality of math and science education.........................10 6.......................

.......0..7 GCI 2008–2009 (out of 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..................................................................1..................................1 10th pillar: Market size.................6 8th pillar: Financial market development.................................................4..5................................................28 ...............9..4.....30 .............................................. 2009 GDP (PPP) per capita (int'l $)....0..............0.....................................2 1st pillar: Institutions ..3 12th pillar: Innovation.9 Tax regulations ......4........8 GDP per capita (US$) .............5..3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....................0........................4...........................................................................................3..1 Inadequately educated workforce.....35 Chile 16............3......43 ..45 .000 8.0 GDP (US$ billions)..............................................27.........4 Policy instability.....................................................................................525 GDP (PPP) as share (%) of world total .............45 ..2 4th pillar: Health and primary education .. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ......................5...........................35 ...... 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 Inefficient government bureaucracy....................28 ......6 6th pillar: Goods market efficiency........................................... The bars in the figure show the responses weighted according to their rankings...........71 ...................................................9 Inflation ............44 .............8 7th pillar: Labor market efficiency ..........5 5th pillar: Higher education and training ......4.......................................5...7 Government instability/coups ..........9 Poor public health ...........................7 126 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.........................5.....18.........41 ........9 11th pillar: Business sophistication...2....................................0 2nd pillar: Infrastructure..........................46 ..............4........... 1980–2009 Population (millions)...........................27 ...........3 Corruption........44 ..............8 Poor work ethic in national labor force .............7 3rd pillar: Macroeconomic environment ................................................................8 Tax rates ...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.................37 ........................................................8 Crime and theft ..........40 .................4.....3......1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..........1: Country/Economy Profiles Chile Key indicators.........................000 Western Hemisphere 12........30 ..........................17........2....6 9th pillar: Technological readiness....7.......................................................................4.28 ....14.................................4.................000 4...........43 ............................5................................................................2................................4...............6 Access to financing .2 Foreign currency regulations.4...........................4.....................161.......7 Transition 1–2 1 GCI 2009–2010 (out of 133)..............4.....7 Factor driven Basic requirements.....2 Inadequate supply of infrastructure ....

........20 Number of procedures required to start a business* .............................52 University-industry collaboration in R&D .......................................55 Company spending on R&D......37 Intellectual property protection ........................................................67 12th pillar: Innovation 12.....................19 1......................................07 Capacity for innovation ................11 1.......................................07 6.....67 Government debt* ..............56 Tertiary education enrollment rate*............02 9.............................7 Degree of customer orientation ...35 Public trust of politicians ............48 Control of international distribution ....................86 Agricultural policy costs.............................................................05 4......68 Broadband Internet subscriptions* ...07 5..26 Burden of government regulation ...........................31 Extent of staff training.................24 Quality of roads ..................59 Diversion of public funds................................................08 1......04 3.........................................................................19 Total tax rate* .......1 Malaria incidence*...........................................................51 Buyer sophistication .........09 Local supplier quantity....03 9..............10 Business impact of malaria ...................77 Quality of port infrastructure .11 6..03 1......................................................03 8.............................................................................................05 7....................34 Irregular payments and bribes...........05 8.....................21 Wastefulness of government spending ...............26 4th pillar: Health and primary education 4...............................09 Cooperation in labor-employer relations...................................85 Pay and productivity ........................................... For further details and explanation.................................1: Country/Economy Profiles Chile 7th pillar: Labor market efficiency 7........................5 Regulation of securities exchanges ..............................................................14 6.......................................43 Quality of the educational system..33 2nd pillar: Infrastructure 2.111 Redundancy costs* ......................30 Fixed telephone lines* ....04 5...............05 12..................78 Effectiveness of anti-monopoly policy ................02 8....09 Availability of financial services .....................05 2........................................33 6....15 Intensity of local competition .19 Ease of access to loans...............78 Organized crime .................05 6...............01 Domestic market size index*.63 Mobile telephone subscriptions* ...................................45 Reliability of police services ..........12 Burden of customs procedures.....15 Internet access in schools...............25 Rigidity of employment* ...............................................20 Internet users* ..04 9.............................05 5..............42 Hiring and firing practices..................................................................06 Government budget balance* .................................................39 Gov’t procurement of advanced tech products ............12 1......................15 1................................02 5.............07 4...................39 Flexibility of wage determination .........................13 6..............08 7...07 2.................01 2..................25 Favoritism in decisions of government officials .......................................03 5............................................5 Ethical behavior of firms............................02 4..........................................................................104 Legal rights index* ..............................................................1 Business impact of tuberculosis ..............................................10 Business costs of terrorism ....37 FDI and technology transfer....16 1...........65 5th pillar: Higher education and training 5.............04 8...05 11................................................................................01 4.....................................................................................06 6...50 Notes: Ranks of notable competitive advantages are highlighted.............................................05 1........4 Trade tariffs*..............................................................................................................................12 Quality of railroad infrastructure ...................01 12.....45 Efficiency of legal framework in settling disputes ...........................03 6.........................................................71 Infant mortality* .....44 Availability of scientists and engineers ......13 Financing through local equity market ......................................03 4........................25 Extent of market dominance...................92 Value chain breadth .................................................................................02 6................21 Business costs of crime and violence............................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 127 ..........27 State of cluster development...............02 Foreign market size index* .29 Business impact of HIV/AIDS...........................08 8...........................01 7..............24 Utility patents per million population*...............46 Interest rate spread* .............................................................................................................61 Inflation*...............26 Available airline seat kilometers* ....................................................................................................62 Prevalence of foreign ownership ...........................................03 7.........06 1.....121 Primary education enrollment rate* ...................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...............02 3......06 8........................64 3rd pillar: Macroeconomic environment 3..07 7........................................................................ An asterisk (*) indicates that data are from sources other than the World Economic Forum. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............................................27 Willingness to delegate authority.......06 7................................14 1....................01 11.............................24 Transparency of government policymaking..27 2....................22 Extent and effect of taxation..............................23 Venture capital availability.........................................................................18 1.........................................76 National savings rate* .................04 6...................29 Country credit rating*.....................................03 2........17 1.............05 3....04 7...............................37 Reliance on professional management ......................123 Quality of management schools ....31 Extent of marketing....................................24 Judicial independence ..07 1...26 Efficiency of legal framework in challenging regulations ..06 Availability of latest technologies ..........................4 Prevalence of trade barriers .............................................................18 Protection of minority shareholders’ interests ............................88 Time required to start a business*....................31 Tuberculosis incidence* .....01 1.12 6......02 2..................39 Quality of electricity supply .................04 4.02 7............04 11..44 Life expectancy* ........................................03 11.............................02 11.03 12.......................................08 2.................59 Quality of scientific research institutions ........................06 11.....28 Brain drain .....................................46 10..................04 12...20 1.01 5...............................38 Nature of competitive advantage ......01 9.................................58 Local supplier quality ............................21 Property rights........110 8th pillar: Financial market development 8...07 11...........................................45 11th pillar: Business sophistication 11.....................42 Local availability of research and training services.................08 6..............................86 9th pillar: Technological readiness 9.................................................31 Quality of primary education ...............09 1............................................................................................................................02 12...............................36 Strength of investor protection* ............13 1.19 Strength of auditing and reporting standards..09 4..............................................................06 12..............08 11.....................................................04 2........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........01 6...........................06 2...48 Internet bandwidth* ......100 Quality of math and science education..................................................................................................09 6................03 3.........................01 8................................................................13 Female participation in labor force* .19 Affordability of financial services........................40 Production process sophistication.............26 Firm-level technology absorption ...................04 1.........................................................................34 Restriction on capital flows ........47 10th pillar: Market size 10.....06 5.............06 4......................02 1..................9 Business impact of rules on FDI .........................................24 Quality of air transport infrastructure ...........................................24 Efficacy of corporate boards .....................08 4.................10 6................................32 HIV prevalence* ................................................................05 9...01 3................20 Soundness of banks ....10 1.....07 8...........09 Quality of overall infrastructure ........................

.........................4...........4....4...7 Restrictive labor regulations ..........................................................4 2nd pillar: Infrastructure....9 Foreign currency regulations...............345........37 ...................1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....................13...................................................... 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.................................8...000 2......................29 ....50 .........4 10th pillar: Market size........1 4th pillar: Health and primary education ............30 ..............................7...................................7 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......................2 6th pillar: Goods market efficiency.3 12th pillar: Innovation....4 Tax rates ...................7 8th pillar: Financial market development...................9 Government instability/coups ...............7................2.60 ........ The bars in the figure show the responses weighted according to their rankings....4.......................49 ..6 5th pillar: Higher education and training ....................4 7th pillar: Labor market efficiency ...........8 Crime and theft ..5.......7 Factor driven Basic requirements.........................................4...1 Poor work ethic in national labor force .........................1....... 2009 GDP (PPP) per capita (int'l $)..........................10...................3.....1 Corruption..................57 ..................8 GDP (US$ billions)............................................................................30 .......1....................................3.4................................................ 1980–2009 Population (millions).......6...................................4................38 .......29 ...............31 ............................12........................................52 China 8...............000 Developing Asia 6..41 .26 .....................................................2 128 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..........9........78 .....................6............1 11th pillar: Business sophistication.................3.........................................2....................................3.................................................................................................................4.............4 Inadequate supply of infrastructure ...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........ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .......0 Inflation ..9 Financial market development Goods market efficiency Labor market efficiency China Efficiency-driven economies The most problematic factors for doing business Access to financing ....2 Policy instability.......4 .......3 9th pillar: Technological readiness.........0 Poor public health ...27 ..................4...6.......................................................0 GDP per capita (US$) .........678 GDP (PPP) as share (%) of world total .3 1st pillar: Institutions ...........4.........................................1...........43 ...........................4....2 .........0 Inadequately educated workforce.................5........................................5 Inefficient government bureaucracy......8........000 4.1: Country/Economy Profiles China Key indicators........4...7 GCI 2008–2009 (out of 134)......................................................3..8 Transition 1–2 1 GCI 2009–2010 (out of 133)....4..............909.....4 3rd pillar: Macroeconomic environment .....................9...............9...........0 Tax regulations .....................................................

..............................................20 1..................66 Strength of investor protection* .....................38 Business costs of terrorism .................22 University-industry collaboration in R&D .............................................05 5............................................17 1............05 7.....14 1.......53 Quality of railroad infrastructure ..46 Degree of customer orientation ..................38 Intellectual property protection ............................................................19 Extent of market dominance.........................................................................21 Property rights.................................08 1.....................58 Flexibility of wage determination .........................................................................................................................................................02 4...........08 8.............................................01 Domestic market size index*....................................57 Mobile telephone subscriptions* ...32 4th pillar: Health and primary education 4................05 6...........08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ........................................06 4.........21 Efficiency of legal framework in settling disputes .......................01 3..........................37 Wastefulness of government spending ......................49 Willingness to delegate authority..04 3.....04 5..............126 Time required to start a business*..............................05 1.29 Total tax rate* .................................................04 6...................19 Local supplier quality ...........01 5.................................................07 Capacity for innovation ................01 2..................07 1................................................03 8......................03 6................27 Quality of port infrastructure ........................................................62 Redundancy costs* .................04 9....33 Quality of management schools .............55 Extent of marketing............09 Quality of overall infrastructure ......................51 Venture capital availability.....................47 Organized crime .................................04 4..........37 Female participation in labor force* ..................................16 1........03 2..............................52 Ease of access to loans........01 9.......72 Quality of roads ... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 129 .................02 12.......04 1...02 Foreign market size index* .03 7......................48 Value chain breadth ..............10 6.................44 Financing through local equity market .......................22 Infant mortality* ...80 Internet users* .........................18 Country credit rating*..............................01 4.......114 Pay and productivity ..............03 5.............................................................60 9th pillar: Technological readiness 9.............2 10.02 3..........09 Availability of financial services ....................88 Quality of the educational system..............................04 12...................80 Business impact of tuberculosis .............90 Malaria incidence*..108 Agricultural policy costs....................06 12........77 Broadband Internet subscriptions* ...............................15 Reliance on professional management .......5 Prevalence of trade barriers ...................................................................04 8...............................1: Country/Economy Profiles China 7th pillar: Labor market efficiency 7...................................21 Quality of scientific research institutions .........................................................................................................................................103 Business impact of rules on FDI .07 2...........................................70 Quality of primary education .56 HIV prevalence* ................35 Primary education enrollment rate* ..............12 1...........................07 8.............63 Judicial independence ..........................77 2nd pillar: Infrastructure 2...................................67 Quality of air transport infrastructure .................................. An asterisk (*) indicates that data are from sources other than the World Economic Forum..........94 Firm-level technology absorption .............................55 Public trust of politicians ..................09 4..01 11.02 8........02 2... For further details and explanation..10 1.................................53 Quality of math and science education...............01 7........................................60 Regulation of securities exchanges ...........................................................................17 Nature of competitive advantage .71 Affordability of financial services.....................................................................................02 11.................08 4.........................07 6.................................76 Reliability of police services .........................................................1 11th pillar: Business sophistication 11...............................33 Government debt* ......................03 4...35 Burden of government regulation .......................50 Extent and effect of taxation.....19 1..12 6...............................02 1.......05 3......52 Fixed telephone lines* ..................................18 1......25 Gov’t procurement of advanced tech products ...................................................................................01 1................................................08 6.......................................08 11......42 Production process sophistication.........................................51 Ethical behavior of firms.................................................................39 Company spending on R&D..............122 Number of procedures required to start a business* ........05 12.01 8.......86 Business impact of HIV/AIDS........123 Soundness of banks .......................57 6..............................18 Burden of customs procedures.......49 Diversion of public funds..............................................................................06 Government budget balance* ..................................................63 Internet access in schools.........................13 6.......92 Tertiary education enrollment rate*.....................................................................75 Life expectancy* .........62 Favoritism in decisions of government officials ...........03 11....................................................................41 Control of international distribution ...................12 Availability of scientists and engineers ................06 5.....68 12th pillar: Innovation 12..09 6.........................................54 State of cluster development.............05 11..................11 6................................................................................................51 Transparency of government policymaking....................................122 Prevalence of foreign ownership ..................................07 7.....14 6...............06 2............23 8th pillar: Financial market development 8..........................................07 11.......50 Brain drain .............44 Efficiency of legal framework in challenging regulations ........................................3 Inflation*........02 9.08 7......................................04 2.10 Business impact of malaria .....03 12.................79 Business costs of crime and violence................23 Effectiveness of anti-monopoly policy .....................05 8...........06 Availability of latest technologies .................................................61 Legal rights index* .........................................................35 National savings rate* ..............................55 Strength of auditing and reporting standards.........................08 2.........................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..............................50 Extent of staff training..........................35 Utility patents per million population*........07 5.....06 6......................................................06 1.................................................................74 Tuberculosis incidence* ..................10 Interest rate spread* ..........................................09 1..........15 1....7 5th pillar: Higher education and training 5.........09 Cooperation in labor-employer relations.................................................................06 7...............03 3.......79 Available airline seat kilometers* ......................................69 Trade tariffs*....2 Quality of electricity supply .................................................06 8................................................................................61 Efficacy of corporate boards ..................................02 6................78 Hiring and firing practices......................................................56 Rigidity of employment* ...........22 Irregular payments and bribes.............22 Local availability of research and training services.............................................57 Internet bandwidth* ..80 10th pillar: Market size 10.......................05 4......15 Intensity of local competition ................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...........................................111 3rd pillar: Macroeconomic environment 3................02 7..61 FDI and technology transfer..05 9...........................04 11....07 4..................................03 1......................11 1...............01 6..............05 2..............................03 9...........04 7....70 Buyer sophistication ......7 2..........51 Notes: Ranks of notable competitive advantages are highlighted.......................................................................27 Restriction on capital flows .........................................01 12.........................85 Protection of minority shareholders’ interests .............13 1.....................................................................................................................09 Local supplier quantity..06 11.........02 5..........

....................................3....................6 Inadequately educated workforce.........................4.......0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..5 Restrictive labor regulations .......................7 GDP (US$ billions)..............................................4.69 ...........6..............4.................6 Government instability/coups .6 10th pillar: Market size.........3..........6 130 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.......................50 ..............11............................1......2.............................32 ..5.........................1: Country/Economy Profiles Colombia Key indicators..............79 ..................................60 .....61 ............6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..............................4............7............4........................7 Tax regulations .3.......................16.....0 Policy instability.................................................7 Inflation ..6 3rd pillar: Macroeconomic environment .................................5 Foreign currency regulations..................2...........................087 GDP (PPP) as share (%) of world total .......................63 .............6 Crime and theft . 2009 GDP (PPP) per capita (int'l $)..............................................65 ...5...............4...........................................58 Colombia 12................................................................................4 2nd pillar: Infrastructure............................79 .........................4 1st pillar: Institutions ..................................................................103 ..................................3 Access to financing ..0 Poor public health .................1 Financial market development Goods market efficiency Labor market efficiency Colombia Efficiency-driven economies The most problematic factors for doing business Corruption.........................000 Western Hemisphere 9.............1 Transition 1–2 1 GCI 2009–2010 (out of 133)..... 1980–2009 Population (millions)..........................79 ............................4......................228..............4 8th pillar: Financial market development.......78 .......69 .................69 ........000 6...................1 Inadequate supply of infrastructure .......................3................................0......................8 4th pillar: Health and primary education ...103 ............................................4.... The bars in the figure show the responses weighted according to their rankings..4...........3..........7 Poor work ethic in national labor force ...........8 GDP per capita (US$) ..........................3........10....................4..................68 .6 Tax rates ...............74 .......4..........................................4..................................................2....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 5.8 7th pillar: Labor market efficiency ................1 5th pillar: Higher education and training ..................1.........0 12th pillar: Innovation........000 3.............10......................1 GCI 2008–2009 (out of 134)..........4...1 Inefficient government bureaucracy..............11.......................................4... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .................000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011....................0 9th pillar: Technological readiness................1 6th pillar: Goods market efficiency........6 11th pillar: Business sophistication.........61 ...................0 Factor driven Basic requirements.....45..........

...............08 7..............................04 6...........................................105 Quality of air transport infrastructure ...................................................09 6...............................................................................................78 Country credit rating*.......................87 Efficiency of legal framework in challenging regulations ..................................78 Favoritism in decisions of government officials ......................02 3..................................................................................................................5 2nd pillar: Infrastructure 2....................................57 Fixed telephone lines* .........................................02 9....43 National savings rate* ..........70 Quality of scientific research institutions ......87 Interest rate spread* .....14 1....................................................06 Government budget balance* ....................................................19 1......................................12 1........................................54 8th pillar: Financial market development 8...05 9...........................................02 4......................................13 1....52 11th pillar: Business sophistication 11......................07 11..............04 11..............................................................................................................72 Control of international distribution ........................92 5th pillar: Higher education and training 5.......92 Business impact of rules on FDI .......................09 4..............47 Broadband Internet subscriptions* ......83 Tuberculosis incidence* ........65 Extent of staff training........................50 Rigidity of employment* ............................................................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............46 Flexibility of wage determination .....................01 6.............................................07 6.........86 Willingness to delegate authority...134 Organized crime .....................................03 1..........03 6..........................................04 1...........88 Government debt* .........................................02 8.........................................................05 7................................................................88 Time required to start a business*.................................................................................................................................................128 Total tax rate* .....02 11.........74 Brain drain ...................09 1................................................................13 6................................08 4..86 Utility patents per million population*..1: Country/Economy Profiles Colombia 7th pillar: Labor market efficiency 7....................04 5..137 Reliability of police services .....07 2......................................01 1.................................................................................................................................01 11..02 6......................................................................................101 Prevalence of foreign ownership ..08 11........14 6.................................................................................01 2..................................49 10th pillar: Market size 10.....03 7.......................................................130 Number of procedures required to start a business* ............03 4..10 Business impact of malaria ...................06 Availability of latest technologies .............................104 Reliance on professional management ..................89 Infant mortality* ...............................59 Internet access in schools.....................................10 6..62 Production process sophistication.......................18 Hiring and firing practices.54 Inflation*...........................20 1.............................85 FDI and technology transfer.....70 Redundancy costs* ...01 12........................................................63 Quality of the educational system.....17 1..............90 Primary education enrollment rate* .......83 Value chain breadth ..........47 Gov’t procurement of advanced tech products .................01 9....................54 Affordability of financial services.... For further details and explanation...........107 Business impact of tuberculosis ..............93 Diversion of public funds.....82 Extent of market dominance......34 Regulation of securities exchanges ....................62 Business impact of HIV/AIDS.............11 6................................07 8.........01 7...................81 Company spending on R&D....01 4.......................68 Extent of marketing..07 5................................88 Local availability of research and training services.................70 Internet bandwidth* .10 1.........108 Quality of railroad infrastructure ......................................................113 Legal rights index* ......94 Pay and productivity ...............09 Cooperation in labor-employer relations........41 Quality of electricity supply ..............06 7...............03 2.05 4...............72 Ease of access to loans..06 11....64 Ethical behavior of firms.............................................06 8..........58 Internet users* ..28 10....06 2...07 4.................................50 Local supplier quality ...............66 Restriction on capital flows ...03 9........... An asterisk (*) indicates that data are from sources other than the World Economic Forum........................................................................................05 11...................03 11.................................88 Burden of customs procedures.............75 9th pillar: Technological readiness 9........................................................87 Burden of government regulation ...........05 12...................03 5..............................................06 6..............................................71 Agricultural policy costs................99 6..............21 Property rights..........................................104 Soundness of banks .............................................................................................................................101 HIV prevalence* .................89 Available airline seat kilometers* ..............................................63 Strength of auditing and reporting standards.....................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 131 ........................72 Quality of primary education .......................02 7............97 Quality of roads ..............15 Buyer sophistication ..................118 Wastefulness of government spending ........................................................66 Financing through local equity market ..09 Local supplier quantity..04 8..........15 Intensity of local competition ................96 Malaria incidence*..........16 1..................102 Quality of port infrastructure ............................42 State of cluster development.........................................................................90 Judicial independence .....................04 7..........................................08 8............09 Quality of overall infrastructure .03 8...................................................40 Nature of competitive advantage ........................................01 Domestic market size index*........................89 Efficacy of corporate boards .......................02 12.......................................................09 Availability of financial services .............................74 3rd pillar: Macroeconomic environment 3...................................................................08 1....08 2...............................................................01 5......53 12th pillar: Innovation 12....................03 3...97 Irregular payments and bribes.............139 Business costs of crime and violence...............The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.......................02 Foreign market size index* ................80 Quality of math and science education.............................................................................................58 4th pillar: Health and primary education 4......................................12 6.......05 2...90 Extent and effect of taxation.........................................04 12.......................73 Transparency of government policymaking............06 1.........84 Female participation in labor force* ................07 7....06 5............................11 1.....................................05 1..............02 2...............106 Public trust of politicians .......124 Effectiveness of anti-monopoly policy ..89 Prevalence of trade barriers .....................08 6.77 Mobile telephone subscriptions* ...................................................61 Venture capital availability...................07 1........134 Trade tariffs*....87 Firm-level technology absorption ...........................02 1............................77 Notes: Ranks of notable competitive advantages are highlighted......79 University-industry collaboration in R&D ...........................71 2..............57 Tertiary education enrollment rate*......................................04 2....124 Efficiency of legal framework in settling disputes ..............06 12..01 8..............................................................05 8....60 Protection of minority shareholders’ interests .........................04 9...15 1........05 3.......................................01 3...................................06 4...........03 12....18 1...........................04 4...............07 Capacity for innovation .....76 Degree of customer orientation ....04 3.............................................93 Quality of management schools .05 5........................90 Strength of investor protection* ......................02 5.......................................51 Availability of scientists and engineers ....91 Intellectual property protection ..........73 Life expectancy* ........................05 6................60 Business costs of terrorism ...........................

........0...22.......................78 ..........................2 Inadequately educated workforce.................................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......4.3..................4........1 11th pillar: Business sophistication..4 2nd pillar: Infrastructure..000 3.... 2009 GDP (PPP) per capita (int'l $)....................8 Inflation .....6 GDP (US$ billions)...51 .55 ...............................57 .........................................29..........................................6 Crime and theft ...........................................2..............5 12th pillar: Innovation......4............... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .....................345 GDP (PPP) as share (%) of world total ........4................................................. 1980–2009 Population (millions)..............................1 Tax rates ............43 ..........85 .....33 ..............................................62 .................................48 ...........................5..........000 6.... The bars in the figure show the responses weighted according to their rankings....4...6 1st pillar: Institutions .........................................5....................................3 Poor public health . respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5.32 ............................................4......................1: Country/Economy Profiles Costa Rica Key indicators...............................................................3........................................5..22 ...................58 ...............................19.............3 Tax regulations ........................1 Policy instability..3 132 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.0..........................3..........5 Access to financing ........................................13.....35 ..................................................................................5 Foreign currency regulations......4 Inadequate supply of infrastructure .............6....6....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...................................4...............5.............6 8th pillar: Financial market development......................4....1 4th pillar: Health and primary education ..............................................................1.......................4........................4............3 GDP per capita (US$) .........1 5th pillar: Higher education and training ...3..............................07 Costa Rica 12.........82 ................................6 Poor work ethic in national labor force ...........8 10th pillar: Market size...............................8 Corruption..................................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.2 GCI 2008–2009 (out of 134)..................4........3 Transition 1–2 1 GCI 2009–2010 (out of 133).....................6 6th pillar: Goods market efficiency.........................................................................45 ........................3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .....4..........3........................108 ...............................6 3rd pillar: Macroeconomic environment ...59 ..0 9th pillar: Technological readiness..........2 Factor driven Basic requirements..................4...................5...0..........56 ................4..........4 7th pillar: Labor market efficiency ..............2 Government instability/coups ...............000 Western Hemisphere 9...............6 Restrictive labor regulations ...4..3.

...........................................................08 2...............22 Quality of math and science education........62 4th pillar: Health and primary education 4....98 Business impact of tuberculosis ...06 6..............................................................21 Prevalence of trade barriers ..50 Quality of management schools ...........63 Internet bandwidth* ......07 2.....113 Inflation*........02 8...............................82 10...........................27 12th pillar: Innovation 12...................................................03 9.......57 Pay and productivity .......04 12....................69 Efficiency of legal framework in settling disputes ...............................27 Value chain breadth .........................................55 Availability of scientists and engineers ........................................21 Property rights................................................01 1.................114 8th pillar: Financial market development 8.................59 Extent of market dominance...................52 Judicial independence ......................................04 8......39 Buyer sophistication ....................... An asterisk (*) indicates that data are from sources other than the World Economic Forum.......20 1..15 Intensity of local competition ..........48 Production process sophistication...................................02 1.05 12...................................................................01 4................11 6.........................03 11.....................41 Irregular payments and bribes...............................02 5...........04 3............................49 Public trust of politicians ...........................................04 11....55 Brain drain ..................................................115 Organized crime .............................38 Mobile telephone subscriptions* .................................................................44 2................01 Domestic market size index*.03 1................06 8......09 Cooperation in labor-employer relations................................................................................................................................07 11..................................................................43 Fixed telephone lines* ....100 Legal rights index* ...................................02 9....................................03 12........................05 4.................................02 4...................59 Strength of investor protection* ..........................................28 Utility patents per million population*....05 8................................................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...............06 4..05 6..................09 6.........................29 Quality of primary education ............09 1...................09 Availability of financial services .......01 12.............................73 Malaria incidence*..............77 Country credit rating*.........................75 Quality of electricity supply .....03 6..............53 Efficiency of legal framework in challenging regulations .......................80 Rigidity of employment* ....109 Number of procedures required to start a business* ..............................06 Government budget balance* .................09 4..........................................07 6.............................121 Agricultural policy costs..................68 Diversion of public funds........10 1...................................................28 Business impact of HIV/AIDS.......95 Venture capital availability..........08 1.................................................03 4.....................76 11th pillar: Business sophistication 11......................32 Extent of staff training........08 6..........................................................................................................70 Firm-level technology absorption .................09 Local supplier quantity. For further details and explanation............127 2nd pillar: Infrastructure 2..............................114 Time required to start a business*....................02 11...................................................40 Protection of minority shareholders’ interests ..40 Business costs of crime and violence.....111 Quality of railroad infrastructure .........................31 Company spending on R&D.......19 1.............................................80 Available airline seat kilometers* ...............................................65 Affordability of financial services..............13 Internet access in schools........36 Willingness to delegate authority...12 Flexibility of wage determination .............4 Internet users* ...........................................19 Tuberculosis incidence* ............................................64 Local availability of research and training services..................................67 Intellectual property protection ..................49 Ethical behavior of firms................................28 State of cluster development............................01 3........28 Gov’t procurement of advanced tech products ............06 2....10 Business impact of malaria ....................................02 3...................................114 Ease of access to loans.....08 11.08 7...............12 1....08 4......................................................................................................................50 FDI and technology transfer........................08 8.......26 Favoritism in decisions of government officials .............22 6..........................03 5........119 3rd pillar: Macroeconomic environment 3........................45 HIV prevalence* ..................................................1 5th pillar: Higher education and training 5................14 1..........101 Reliability of police services .........41 Total tax rate* .03 8....16 1..12 6........................................................41 Extent and effect of taxation.31 University-industry collaboration in R&D ...........15 1....................04 1...................................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 133 .........................................................06 12.............................................................................................................................1: Country/Economy Profiles Costa Rica 7th pillar: Labor market efficiency 7.............101 Trade tariffs*..................01 7...............................77 Infant mortality* ...........04 5.............96 Hiring and firing practices....................................................................13 1...................02 12......................09 Quality of overall infrastructure ...............................03 2.........................................42 Prevalence of foreign ownership ................05 9............07 5.........124 Government debt* ...............................................83 Quality of the educational system..06 5............................................11 1................06 7.....................................................................07 1........................................................................03 7.....................04 6........02 2..............05 3..................................05 7.................20 Business impact of rules on FDI ..................................................................16 Female participation in labor force* ..05 11..................................22 Regulation of securities exchanges .......................................................................44 Local supplier quality ...........39 Wastefulness of government spending ...................................13 6..38 Notes: Ranks of notable competitive advantages are highlighted.38 Transparency of government policymaking................05 2..................................49 National savings rate* ..83 Restriction on capital flows ..02 6...55 Financing through local equity market ...........................................................49 Reliance on professional management ..........46 Burden of government regulation .......63 Tertiary education enrollment rate*.................05 1......01 2...........04 9......................................100 Quality of port infrastructure ................................................................................07 7............................06 11.......44 Quality of scientific research institutions .66 Broadband Internet subscriptions* ...........................33 Primary education enrollment rate* ........17 1..........................10 6........06 Availability of latest technologies ...........84 Degree of customer orientation ..04 4........07 8.................................77 Quality of roads ..................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .........................................36 Burden of customs procedures.............45 10th pillar: Market size 10.....................87 Soundness of banks ................................56 Business costs of terrorism ...52 Nature of competitive advantage ............04 7............62 Efficacy of corporate boards .................................................28 Control of international distribution ................................................29 Effectiveness of anti-monopoly policy ....43 Redundancy costs* ...................................................................01 8.........01 9................................113 Interest rate spread* .......132 Quality of air transport infrastructure ................................................50 Life expectancy* ...01 11........................................................07 4........................75 9th pillar: Technological readiness 9.......................01 6...32 Extent of marketing..............................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1....35 Strength of auditing and reporting standards........................................07 Capacity for innovation ...............02 Foreign market size index* ...................14 6...............................18 1....................................................04 2.....03 3.......01 5...................................02 7.............................................05 5...............06 1.................

..3 Transition 1–2 1 GCI 2009–2010 (out of 133)........3.....................1 Restrictive labor regulations .....052 GDP (PPP) as share (%) of world total ........3...........4 Crime and theft ......................................105 .....3.........3........1.............2.....................................19....2 Inadequate supply of infrastructure .....2.......1 134 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation Infrastructure 6 5 Business sophistication Efficiency enhancers...............................................133 ..112 .....0 6th pillar: Goods market efficiency.........102 ...........................0 Tax rates ...000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011...................5 GDP per capita (US$) ...............1 GDP (US$ billions).................116 .9 Poor public health ........3........................................5..136 ..............3 12th pillar: Innovation.........4................................................................................................... 2009 GDP (PPP) per capita (int'l $).................94 ....................3.................110 ..........................4 GCI 2008–2009 (out of 134)..3........................4 1st pillar: Institutions ...........................3......21........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 ................17................19........94 ........1 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......1........0 11th pillar: Business sophistication.....................2.....................1 3rd pillar: Macroeconomic environment ...3....112 ..........................0 8th pillar: Financial market development...........4...............110 ..........................133 ..1 10th pillar: Market size....................................109 ................................................... 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......8 Inadequately educated workforce...........10............... 1980–2009 Population (millions)...6 Tax regulations .....5 Inefficient government bureaucracy................................3 4th pillar: Health and primary education .......4 5th pillar: Higher education and training .............22.......................3.000 Sub-Saharan Africa 2..................................7 Inflation .5 9th pillar: Technological readiness...4....................0 2nd pillar: Infrastructure......................5 Factor driven Basic requirements.................................................................99 .........0........ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .....................................116 ......................1: Country/Economy Profiles Côte d’Ivoire Key indicators... The bars in the figure show the responses weighted according to their rankings...........4...............3.....7 7th pillar: Labor market efficiency ...............................6.........................................0.................0...........2........3...................3.......118 ........7 Policy instability.......................6 Poor work ethic in national labor force .7 Government instability/coups ............................3..........................................0.....................................................8 Corruption......3.........................................000 1...............................................129 .........................................................................................................116 .........3.........3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..................05 Côte d’Ivoire 3......6 Foreign currency regulations...................

..137 Favoritism in decisions of government officials .......................120 Broadband Internet subscriptions* ...........................1: Country/Economy Profiles Côte d’Ivoire 7th pillar: Labor market efficiency 7......................07 1..................112 Agricultural policy costs............103 Total tax rate* ...02 6................05 11..09 6...........................12 6................................100 Fixed telephone lines* ..............................................117 Transparency of government policymaking...............................112 Inflation*..........122 Tuberculosis incidence* ...................................................................20 1................... For further details and explanation....................137 Irregular payments and bribes................136 Diversion of public funds..................07 11................................03 6....................06 11.......................71 Trade tariffs*...............................................02 5...........................................................................99 Time required to start a business*..............106 Quality of math and science education......................135 Business impact of tuberculosis ..............132 Quality of scientific research institutions ........03 8..06 2..133 Nature of competitive advantage ........26 Business impact of rules on FDI ............................................................01 12.............103 Efficiency of legal framework in settling disputes .129 Wastefulness of government spending ..........................................129 Life expectancy* .................................................123 2nd pillar: Infrastructure 2...............................................................63 Extent of staff training...........07 7............36 Interest rate spread* ...........................................................07 4...............................07 Capacity for innovation ...01 7......42 Quality of air transport infrastructure ....09 Cooperation in labor-employer relations....05 2...............................................................136 2..........................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1................99 Strength of investor protection* .........128 Production process sophistication.....................................................................01 Domestic market size index*..................128 4th pillar: Health and primary education 4.....................................................................................05 4..137 Restriction on capital flows .....................14 1............................................................02 Foreign market size index* ..................01 3.....................................................05 1....................................07 2.......................................................................................129 Business impact of HIV/AIDS....................21 Property rights..06 6...........04 1.........03 1...................................................................................................................124 Local availability of research and training services.... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 135 ......... An asterisk (*) indicates that data are from sources other than the World Economic Forum..........09 1.......................78 Internet users* .......................................04 2........................................01 8.......95 Reliance on professional management ....................122 Internet bandwidth* ..79 Firm-level technology absorption .......................................06 8..........................................90 Notes: Ranks of notable competitive advantages are highlighted........93 University-industry collaboration in R&D ..........34 Ease of access to loans...03 9......................114 Control of international distribution ........100 Internet access in schools..........................................92 Company spending on R&D....................10 6.09 Availability of financial services ................83 Number of procedures required to start a business* ....................05 7.......................08 6...............83 Quality of management schools .......................09 Quality of overall infrastructure ........................................08 7..........114 Strength of auditing and reporting standards....05 6.............11 6............67 Burden of customs procedures....................................................82 Hiring and firing practices................................08 2...........97 Primary education enrollment rate* ..18 1.....80 Quality of port infrastructure .......................................09 4...04 11.............................................137 Ethical behavior of firms.............7 National savings rate* ..........03 5...............................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .08 8............................................03 11.........75 Brain drain .................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter................................................09 Local supplier quantity..............................................02 4......................................................102 Prevalence of foreign ownership ............................05 12................................75 Available airline seat kilometers* ......104 Quality of electricity supply ..........06 5................................06 Availability of latest technologies .....................98 Regulation of securities exchanges ...................80 Quality of roads ...................07 5..79 State of cluster development.................................08 4.....................03 2...121 Country credit rating*......63 Legal rights index* .....................................................112 Efficiency of legal framework in challenging regulations ...............................................................................13 6.................................118 Efficacy of corporate boards .....01 2..01 11...............................05 5..............12 1..01 5......................03 3...................122 Mobile telephone subscriptions* .........122 8th pillar: Financial market development 8..............................................114 Intellectual property protection .............................123 HIV prevalence* .....................................100 Availability of scientists and engineers .10 Business impact of malaria .........................................................94 10............................................................................................................07 6........42 Utility patents per million population*.08 1.........15 1.............78 Female participation in labor force* ....................................................................130 Malaria incidence*.01 4......02 12.......107 Soundness of banks ......111 Quality of the educational system..........89 Willingness to delegate authority..............................................................................................................................................................................................................................04 5...............10 1.05 3..............76 Prevalence of trade barriers .........................02 2....................................................132 Public trust of politicians ......................................................................132 Reliability of police services .....................119 Extent of marketing.........64 FDI and technology transfer.................130 Tertiary education enrollment rate*......132 Burden of government regulation ..04 6..............11 1...........02 3......123 Value chain breadth .......07 8...........................................103 9th pillar: Technological readiness 9...........130 Gov’t procurement of advanced tech products ..86 11th pillar: Business sophistication 11...15 Intensity of local competition .................106 3rd pillar: Macroeconomic environment 3............04 9................136 5th pillar: Higher education and training 5.......92 Government debt* .....08 11...........................................................................................05 8............................................89 Extent and effect of taxation........112 10th pillar: Market size 10.....................................................06 4..........................83 Pay and productivity .........13 1..................................................06 7.................06 1...02 8.22 Protection of minority shareholders’ interests ....................02 11.......14 6....105 Affordability of financial services............................................01 9....02 9....................01 6..................134 12th pillar: Innovation 12................................................126 Infant mortality* .......80 Buyer sophistication .......101 Financing through local equity market .......................76 Extent of market dominance.......94 Degree of customer orientation .............115 Quality of primary education ....110 Business costs of terrorism ..03 12...............27 Redundancy costs* ................06 12...........04 4.........................................69 Flexibility of wage determination ..........81 Local supplier quality .......136 Judicial independence .....19 1............................93 Quality of railroad infrastructure .....................04 8...............128 Organized crime ..........................................................................04 3.........................06 Government budget balance* .................................................................138 Venture capital availability......................44 6...54 Business costs of crime and violence...................02 1.......................43 Rigidity of employment* .............02 7............................................04 12.........................01 1...........108 Effectiveness of anti-monopoly policy ...............................03 4.....03 7..........17 1............................16 1............................................................05 9..........................04 7.............

...4....1 Foreign currency regulations.......................3.......0 Transition 1–2 1 GCI 2009–2010 (out of 133).2 Poor public health .....8.........................................6 3rd pillar: Macroeconomic environment ..............4...................................5......8 Tax rates ...................4 Government instability/coups ....110 ...................18.....................................4 Poor work ethic in national labor force ..........113 .......................................8 1st pillar: Institutions .....70 ......2 Factor driven Basic requirements................................8 4th pillar: Health and primary education .......2..4 GDP (US$ billions)...........8 7th pillar: Labor market efficiency ............................9 Inadequately educated workforce....14........4.....................................................................0...........9 Policy instability.........................10..........0...77 .........50 .......... The bars in the figure show the responses weighted according to their rankings.........56 .1..... 1980–2009 Population (millions).......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......................................39 ..0 9th pillar: Technological readiness........................243 GDP (PPP) as share (%) of world total ..................................................................................3.9 8th pillar: Financial market development...........................................2......................86 .....................000 5.........................3....................6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .................................................13.........13.......4..............000 10.................0 5th pillar: Higher education and training .........7 Inflation .....................41 ..............................................................................72 ....................................4....................................48 .....3......................................13.............................88 ..0 GCI 2008–2009 (out of 134)..............................51 ........................................................................2.........76 .....................000 Central and Eastern Europe 15..........4.............8 Crime and theft .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......1...................6...................9 Restrictive labor regulations ......................2 Access to financing ...........................................3......92 ................................................................ 2009 GDP (PPP) per capita (int'l $).2..............3...................3 6th pillar: Goods market efficiency.........3 11th pillar: Business sophistication............5 Corruption.2 GDP per capita (US$) ....70 ...................6 12th pillar: Innovation....85 ....3..............4....................................0 136 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.....61 .......4........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......................4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors............1: Country/Economy Profiles Croatia Key indicators......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ....2 10th pillar: Market size....6 2nd pillar: Infrastructure.............................8 Tax regulations .......................................................2..4.......0 Inadequate supply of infrastructure ................2............11 Croatia 20.............63..............................4..

...........................................................................................02 Foreign market size index* .........................02 8.........04 6..............101 Control of international distribution ..............134 Prevalence of trade barriers .........136 Flexibility of wage determination .................................90 Public trust of politicians ..................................65 Inflation*.07 5.................136 Efficiency of legal framework in settling disputes .........................................01 8...........................................................104 Nature of competitive advantage .......................................10 6........................13 1.....................15 Intensity of local competition ..............131 Protection of minority shareholders’ interests ........10 Business impact of malaria ..................106 12th pillar: Innovation 12...........110 Business impact of rules on FDI ............................................................................................................14 HIV prevalence* .............131 Burden of customs procedures.....................................69 8th pillar: Financial market development 8.............................60 4th pillar: Health and primary education 4.......1 Business impact of tuberculosis ........................................11 1.....................................88 Extent of marketing.........114 Extent of market dominance...............................................................................55 Firm-level technology absorption ......41 Prevalence of foreign ownership .................................85 Utility patents per million population*........................................75 Pay and productivity ....81 Efficacy of corporate boards .............................09 4...............05 6..06 1......03 11...........................05 12.....................09 Quality of overall infrastructure ....80 Judicial independence .........61 Extent of staff training.....31 Life expectancy* .......................106 Redundancy costs* ...............44 Local availability of research and training services.70 Diversion of public funds.............83 Affordability of financial services.......................................121 Availability of scientists and engineers .......................02 3........126 Efficiency of legal framework in challenging regulations ....................................................35 Notes: Ranks of notable competitive advantages are highlighted..............................................75 11th pillar: Business sophistication 11...................19 1..04 7....04 9.......93 Wastefulness of government spending ....................08 4...........................03 7................66 Quality of scientific research institutions ...108 Restriction on capital flows .......................................................122 Female participation in labor force* .05 8...... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 137 .04 4........................03 9................01 1.......07 2...................................................61 Country credit rating*......31 Quality of railroad infrastructure ................................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.72 Available airline seat kilometers* ............................................07 1......99 Buyer sophistication ........01 Domestic market size index*.............................81 Venture capital availability..............................................01 4................................................14 Business costs of crime and violence.................................................................................................................04 5..02 12..98 Extent and effect of taxation.............................1: Country/Economy Profiles Croatia 7th pillar: Labor market efficiency 7.....44 Quality of primary education ...91 Soundness of banks ............................08 8...01 7................................................03 2......................03 12....05 9........05 4............The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..............1 Infant mortality* ..................................................................................................................09 Availability of financial services ...............60 Value chain breadth ..................................................................................02 11....96 Reliance on professional management .....60 9th pillar: Technological readiness 9...........................01 11.............................09 Cooperation in labor-employer relations.........113 2..................96 Irregular payments and bribes.............................38 Internet bandwidth* ............................................................................74 Reliability of police services ....................16 1.................08 1..106 Brain drain ............06 Availability of latest technologies .02 7.................01 5...............73 Strength of auditing and reporting standards.........01 9...........121 Hiring and firing practices.....111 Internet users* ..............................................54 Business impact of HIV/AIDS....................................06 7...............03 8..................................08 2...........................................92 Production process sophistication.................98 FDI and technology transfer...........05 7...........................03 6.........11 6.........................................................57 National savings rate* ......................99 Local supplier quality .............20 3rd pillar: Macroeconomic environment 3..............09 6.............03 5........58 Ethical behavior of firms................14 6................07 11..................20 10th pillar: Market size 10......................................08 6..51 Company spending on R&D..................................................01 6............07 6....02 2...94 Financing through local equity market ...........................................96 Ease of access to loans............05 11.............07 7.............40 Broadband Internet subscriptions* ....................08 11..................21 Tuberculosis incidence* ..........02 9....07 4......................06 5.14 1.......97 Favoritism in decisions of government officials .........57 Time required to start a business*..................121 Burden of government regulation ....................................................134 Total tax rate* .......................................................74 Legal rights index* ........................................87 Intellectual property protection ..........................................................................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...........................24 Mobile telephone subscriptions* ..............03 1.................................05 1..................... For further details and explanation......03 4.......83 Willingness to delegate authority....................08 7...................................10 1.......................................................37 Primary education enrollment rate* ...........66 Trade tariffs*....................................................89 5th pillar: Higher education and training 5......................................................75 Degree of customer orientation ........................13 6.......................................................88 Quality of electricity supply .76 Rigidity of employment* ...........................................75 Agricultural policy costs............................................................................................. An asterisk (*) indicates that data are from sources other than the World Economic Forum..........48 Quality of port infrastructure ......................................07 8..........01 3.............................................................89 Quality of math and science education.....................15 1............................121 Effectiveness of anti-monopoly policy ...........................02 6.................................04 1.......................................04 2.............................123 Strength of investor protection* .............................01 12...05 5.........................09 1.................................................................................128 6............05 2............79 Quality of air transport infrastructure ...04 12........................................................................................22 Quality of management schools ................................1 Malaria incidence*...................................103 Government debt* ................49 Fixed telephone lines* .......................04 3...............126 Transparency of government policymaking..............42 Quality of roads .....17 1..............................18 1.................02 1.............................................................50 Quality of the educational system..06 12.........................88 Internet access in schools.....07 Capacity for innovation ............06 8.......66 Regulation of securities exchanges .......................................................................40 Number of procedures required to start a business* .........................60 University-industry collaboration in R&D ........................71 Business costs of terrorism ........02 5...........................................................................60 Interest rate spread* ...............02 4...........06 6.........................................................................09 Local supplier quantity..................................12 1..06 2.......................21 Property rights...........109 2nd pillar: Infrastructure 2.................01 2..............06 4..........76 State of cluster development.40 Organized crime .................................20 1....71 10......................06 Government budget balance* ........................................03 3.........................04 11.........05 3............................47 Tertiary education enrollment rate*..............06 11....04 8...............................................12 6.................75 Gov’t procurement of advanced tech products ........................

.........1.............30 ....................................................4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors....40 ........................................................4......................4............................29....8...............12 ....38 ..1 Poor work ethic in national labor force ......................34 ..............................8 Inadequately educated workforce.......1..................................2.........................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............6 8th pillar: Financial market development...........3..................5.....9 Restrictive labor regulations .....4....9 Policy instability..........................000 30...................1 11th pillar: Business sophistication......................4.........000 20.................................................................2 Tax rates ..........................................2 Access to financing ....20 ..9 2nd pillar: Infrastructure.........................................6..............03 Cyprus 50.................................0 9th pillar: Technological readiness............4.......1 Crime and theft ...........2....7 Financial market development Goods market efficiency Labor market efficiency Cyprus Innovation-driven economies The most problematic factors for doing business Inefficient government bureaucracy...............5 12th pillar: Innovation...........................67 .... 1980–2009 Population (millions)...........................................0.........620 GDP (PPP) as share (%) of world total ...............4.....36 ...................................4...................................4.....2...6..9 Government instability/coups .42 ........4.................33 .3...............40 ............5 Transition 1–2 1 GCI 2009–2010 (out of 133).................................................5 Foreign currency regulations.0......5 5th pillar: Higher education and training .............................................................. The bars in the figure show the responses weighted according to their rankings.9 GDP (US$ billions)........1: Country/Economy Profiles Cyprus Key indicators...38 ......................................... 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......................................................23...........3 1st pillar: Institutions .000 10........................4........................9 Tax regulations .......2........104 ...4......1 Inadequate supply of infrastructure ......1 Inflation .6 GCI 2008–2009 (out of 134).........................................................29 ..............................9 6th pillar: Goods market efficiency..5........................5......5 Corruption...............6 Poor public health ................7......................................................................36 .......0 7th pillar: Labor market efficiency ..............4 10th pillar: Market size................................5 138 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..17.................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ...............16...000 Advanced economies 40.............15 ..............................................5................ 2009 GDP (PPP) per capita (int'l $)......................26 ......6 4th pillar: Health and primary education ............................1 3rd pillar: Macroeconomic environment ............6 GDP per capita (US$) ................6..................................................................4..........................5.....................5 Factor driven Basic requirements.....29 ..8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..

....................19 2..............................................................04 12........61 Quality of electricity supply ...........................15 1....................................................02 12...............................................35 4th pillar: Health and primary education 4.....05 7.. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 139 ...........................................................................................108 Protection of minority shareholders’ interests ..16 1.............................................36 Female participation in labor force* .........................127 Inflation*.............03 2...............................20 1..26 Buyer sophistication .............05 3................................................100 Country credit rating*.......................04 1.....08 4..............................................40 Reliability of police services ................................04 8....04 11......07 8............................................................................10 1......................................................................08 2...12 Total tax rate* ................17 1...02 4.........05 6........21 HIV prevalence* .......41 Company spending on R&D......96 Pay and productivity .......45 3rd pillar: Macroeconomic environment 3.........................08 8..........................................46 Financing through local equity market ............03 7........06 12.02 8.31 Regulation of securities exchanges ...........47 Infant mortality* ............................60 Redundancy costs* ............................35 Willingness to delegate authority..............................43 Quality of scientific research institutions .....................................50 Prevalence of trade barriers ....................23 Soundness of banks .....................................................................................43 Available airline seat kilometers* ..................................11 6.....................................49 Government debt* ................................05 5.............04 9............18 Venture capital availability............06 2....78 Business impact of rules on FDI ......................06 4....................02 5.............53 Business costs of crime and violence................................................................58 8th pillar: Financial market development 8........................03 12....06 1.................................................03 1...................................37 Affordability of financial services...................................................................................................09 Quality of overall infrastructure ...................................................12 1......................................................................................07 2.....77 2nd pillar: Infrastructure 2.........43 FDI and technology transfer...........29 Availability of scientists and engineers ..........05 2.............03 8......05 12............................................34 Time required to start a business*......06 7.........03 9..09 Cooperation in labor-employer relations.......08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ......04 6............21 Property rights..................................................................................................................................................44 12th pillar: Innovation 12.........44 Extent of marketing......................16 Quality of management schools ...........................................04 2.........01 7.............03 11..........08 6...29 Burden of government regulation .................31 Effectiveness of anti-monopoly policy ...02 Foreign market size index* .............01 12............................................40 Wastefulness of government spending .........................................................................................07 4.............................15 Intensity of local competition ...............................21 Flexibility of wage determination ..........................................................104 10.......................................................26 Extent and effect of taxation................12 6............................................................44 Broadband Internet subscriptions* .....1: Country/Economy Profiles Cyprus 7th pillar: Labor market efficiency 7....................39 Strength of auditing and reporting standards................55 Quality of the educational system............65 Ease of access to loans...........28 Efficiency of legal framework in challenging regulations ....18 Efficacy of corporate boards ............18 Extent of market dominance..................34 State of cluster development................ For further details and explanation...32 Diversion of public funds..................23 Efficiency of legal framework in settling disputes ....02 3.........................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1....................................33 Burden of customs procedures....02 7....................................................................06 Government budget balance* ...31 Internet bandwidth* ................................................................................................................01 8.........................................44 Nature of competitive advantage ...................06 11...............................................05 8.....02 9.....................17 Life expectancy* ............................................27 Intellectual property protection ............33 Notes: Ranks of notable competitive advantages are highlighted....11 Business impact of HIV/AIDS............01 3.....01 5..........................08 1...............75 Internet users* ..................100 11th pillar: Business sophistication 11.........................11 1..............................................................................................................................05 9...43 Extent of staff training................................23 Value chain breadth ..........................09 1....................................37 Local availability of research and training services..............03 6..................30 Tertiary education enrollment rate*..............02 11......................10 6......................05 4...............................01 9.............07 5......04 4......25 Trade tariffs*...............13 1......10 Business impact of malaria .........................................19 1..............06 Availability of latest technologies ..44 Control of international distribution ........53 Local supplier quality ...................77 Brain drain ....................32 Public trust of politicians .................1 Business impact of tuberculosis .........................35 6.................................................................01 6...........31 Business costs of terrorism ...22 Interest rate spread* ....................................07 Capacity for innovation .......................................................1 Malaria incidence*...................................63 10th pillar: Market size 10.................................14 1...............................................................09 4......................17 Mobile telephone subscriptions* .....10 Production process sophistication.................01 Domestic market size index*..............01 11...36 Firm-level technology absorption ..........07 6..........60 Hiring and firing practices...................01 4.....31 Quality of roads ..............03 4.........................................03 3...........................07 1.............................n/a Quality of port infrastructure ..............13 Quality of math and science education..................13 6..... An asterisk (*) indicates that data are from sources other than the World Economic Forum.....31 Judicial independence ...........................30 Internet access in schools...01 1....................04 7......6 9th pillar: Technological readiness 9.....23 Restriction on capital flows .................................................09 Local supplier quantity.....................................07 7.............05 1......4 Prevalence of foreign ownership ...........23 Degree of customer orientation .....97 National savings rate* ...................25 Quality of primary education ...........25 Number of procedures required to start a business* ..............06 6........05 11.............................97 Rigidity of employment* ..........................................................09 6..............04 5......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...........02 2....................................................39 Quality of air transport infrastructure ..45 Gov’t procurement of advanced tech products ...07 11............09 Availability of financial services ....................21 Strength of investor protection* ................27 Agricultural policy costs............23 Tuberculosis incidence* ............06 8.....................................................01 2.................................32 Utility patents per million population*.......................................................15 Primary education enrollment rate* ................................31 Fixed telephone lines* .22 Favoritism in decisions of government officials ............................................................................................................21 Transparency of government policymaking.................02 1...08 11.........................................14 6......02 6..................03 5......................................................................26 Irregular payments and bribes..............04 3................................................................................................................................................08 7..............................40 Ethical behavior of firms.........66 Reliance on professional management ..................43 University-industry collaboration in R&D ........................06 5.......18 1......23 Quality of railroad infrastructure .............34 Legal rights index* .....................18 5th pillar: Higher education and training 5.................................25 Organized crime ................................................

0....................................4..........................9 4th pillar: Health and primary education .....6......000 10..............................27 ..............................................................................................24 ...............43 .....39 .......................0.....................1 140 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers..7 8th pillar: Financial market development......................................5 9th pillar: Technological readiness.15.......................................6 Inadequately educated workforce............................... 1980–2009 Population (millions)..... 2009 GDP (PPP) per capita (int'l $)............2............33 ..7 Poor public health .5 12th pillar: Innovation.......9 Financial market development Goods market efficiency Labor market efficiency Czech Republic Innovation-driven economies The most problematic factors for doing business Corruption..........42 ........................8 3rd pillar: Macroeconomic environment ..4............................................7..........7 Tax rates ..........................................................4..........48 ..........34 ................................4.......31 ..........................................194.....15.........................................7 Government instability/coups .........................................3.................9 2nd pillar: Infrastructure..................32 .....................10.....................4 Inefficient government bureaucracy..............................5 Inadequate supply of infrastructure .......................2.....................4..5.......................48 ......7................................................4 GDP (US$ billions)........................44 .....6 Transition 1–2 1 GCI 2009–2010 (out of 133).......37 Czech Republic Advanced economies 50.9 1st pillar: Institutions .72 ..2.....0 Access to financing ............4......................000 40...........6 Factor driven Basic requirements....................4............1 6th pillar: Goods market efficiency..............0..........7..............................28 ........4.....................................7 5th pillar: Higher education and training ..............18...................36 ................557 GDP (PPP) as share (%) of world total ...............4 Restrictive labor regulations ................4......... 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...............................5 10th pillar: Market size.......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ......1: Country/Economy Profiles Czech Republic Key indicators.............33 .......000 30........................5 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .........6....30 ..............5............9 Inflation ...........4..8 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..............7 Crime and theft ........................7 GCI 2008–2009 (out of 134)...........7 Policy instability...........35 ...........9 Foreign currency 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..................000 20.......................................................11.................8 GDP per capita (US$) ....................3....................................2 Tax regulations ......4..................................................4....................4..2.......................4.8..........8 Poor work ethic in national labor force ............4..2 11th pillar: Business sophistication.....................6 7th pillar: Labor market efficiency ..

............................................15 Internet users* ....................................54 Quality of air transport infrastructure .............30 Broadband Internet subscriptions* .....................40 Pay and productivity ..........................06 Availability of latest technologies .............................................................03 7........42 Tertiary education enrollment rate*..............25 University-industry collaboration in R&D ........03 5...........102 Public trust of politicians ..............75 Country credit rating*.................07 4....................08 1...............................43 Degree of customer orientation ..................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.............................................02 4............................07 2..............1 Infant mortality* ...........................34 Notes: Ranks of notable competitive advantages are highlighted..........06 Government budget balance* ......................................08 4............09 Availability of financial services ....................................................22 Burden of customs procedures......37 Quality of roads .............117 Production process sophistication..01 1.................................................................................................................................................47 Affordability of financial services.........................................................................................78 Inflation*.......................................121 Irregular payments and bribes...................................01 4..25 Hiring and firing practices..............................03 2....97 5th pillar: Higher education and training 5....89 Strength of investor protection* .................13 1......80 Quality of railroad infrastructure ....................54 Government debt* ..............01 5..01 3..14 1................56 Internet access in schools..............118 Efficiency of legal framework in settling disputes ..05 1...........................................................................................................24 Quality of scientific research institutions ......................04 2.......................................................................................................39 Ease of access to loans...........04 7.......................34 Quality of math and science education...........59 Buyer sophistication .05 7...........................41 Nature of competitive advantage ........12 1.....................................................................26 Primary education enrollment rate* ...........................................................................09 1.................................84 Transparency of government policymaking..03 11.....................42 Value chain breadth ...............06 5...........97 Efficiency of legal framework in challenging regulations .........47 Efficacy of corporate boards .......................60 Quality of electricity supply .............03 1...02 11.06 2.........................................02 1...29 Control of international distribution ....................91 Number of procedures required to start a business* .........22 Reliance on professional management .04 11.....................................37 Interest rate spread* .31 Availability of scientists and engineers ........61 Female participation in labor force* .....1 Business impact of tuberculosis ........06 12............................................04 3..........05 8............04 8..........10 1......................................41 Willingness to delegate authority...................03 9.......07 11............................................95 Burden of government regulation .....................47 Venture capital availability................................................................................50 Utility patents per million population*............................................01 9........................................................1: Country/Economy Profiles Czech Republic 7th pillar: Labor market efficiency 7....................40 6.......10 Business impact of malaria .....09 4..........43 Protection of minority shareholders’ interests ..................04 12......05 6................22 Quality of port infrastructure ...................61 8th pillar: Financial market development 8.....06 11.....................................05 12.........49 Total tax rate* ......................45 10.........................................02 3...........................61 Favoritism in decisions of government officials ..................................................36 FDI and technology transfer................119 Redundancy costs* ..........77 2nd pillar: Infrastructure 2.18 Fixed telephone lines* ................24 Regulation of securities exchanges ..19 1..................................................................................15 Effectiveness of anti-monopoly policy ..............17 Extent of staff training.............................................13 Life expectancy* .............................69 Rigidity of employment* .....................................................................................24 Local availability of research and training services........17 Available airline seat kilometers* .03 8................50 Flexibility of wage determination ......02 Foreign market size index* .................31 4th pillar: Health and primary education 4................02 8..............................24 Business costs of crime and violence...28 11th pillar: Business sophistication 11.....................07 8..90 Strength of auditing and reporting standards.....................................01 12..............96 Financing through local equity market ...................................01 2........................................................17 State of cluster development.............................06 7...................09 Local supplier quantity...............................................................................11 1...................25 Soundness of banks .................................06 6.66 Mobile telephone subscriptions* ................................25 Quality of management schools .........................................................03 3.................................................................................................05 4..........102 Business costs of terrorism .......08 8..04 9............................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 141 .......................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter......................52 Diversion of public funds..............................................................07 6.................11 6......04 4.........107 Wastefulness of government spending .......................................................................................... For further details and explanation...........09 6...........06 4..............41 Tuberculosis incidence* ..........................................................................21 Property rights.................................................................................................04 1....................09 Cooperation in labor-employer relations....33 Internet bandwidth* .07 5..08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...........31 Extent and effect of taxation......04 6.....................................73 Time required to start a business*.......05 2............................................03 4.............15 1..................................................10 6.......................33 Brain drain ..........21 Company spending on R&D.................13 6......................................................32 Quality of the educational system.........64 Prevalence of trade barriers ................86 Ethical behavior of firms..........27 Business impact of HIV/AIDS.................02 6.19 3rd pillar: Macroeconomic environment 3...................................................07 Capacity for innovation ...17 1...................09 Quality of overall infrastructure .........................................................34 10th pillar: Market size 10..........07 7...............................................02 12......56 Agricultural policy costs.65 Intellectual property protection ................20 1.........08 11.....102 National savings rate* ......................................34 Extent of marketing.............16 1.....02 2...07 1........................12 6.......................06 1.....01 6.............................22 Local supplier quality ..................................................08 7........36 2...15 Intensity of local competition ......................46 Firm-level technology absorption .................18 1..............................03 6.........01 7...............42 Business impact of rules on FDI .................................................................................................................................................04 5..........12 Trade tariffs*............................................................08 6.............................01 8...................4 Prevalence of foreign ownership .52 HIV prevalence* ................................................................06 8.........................01 Domestic market size index*...................................................................60 9th pillar: Technological readiness 9..........35 Organized crime .. An asterisk (*) indicates that data are from sources other than the World Economic Forum...............63 Restriction on capital flows ..........................12 Extent of market dominance..........24 12th pillar: Innovation 12.......................03 12...............................47 Legal rights index* ...38 Quality of primary education .......08 2............................1 Malaria incidence*...67 Judicial independence ..............49 Reliability of police services .................01 11.................................................14 6................05 11..................................05 9.02 5.....02 7..05 3...............................02 9.........................................................................................................................29 Gov’t procurement of advanced tech products .05 5......

..... The bars in the figure show the responses weighted according to their rankings.9 Inefficient government bureaucracy...........................................5......5..........4 142 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...................2............5.............9 ....................................................................................................6 ...5..........115 GDP (PPP) as share (%) of world total .....................5 .4..000 30.....................................................5 GDP (US$ billions)..............000 10.......................0 Policy instability...3 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ............... 2009 GDP (PPP) per capita (int'l $).....................5 Inflation .................000 Advanced economies 40................................20 ......9 1st pillar: Institutions .................4.......7 3rd pillar: Macroeconomic environment ...................................5..........2 5th pillar: Higher education and training ..........3 ...5.........................7 Poor work ethic in national labor force ..................5.......8 2nd pillar: Infrastructure...........................309...................................................0.5 ........................5...............................29 Denmark 50..........................5 Corruption.............10 ............................................................6 Factor driven Basic requirements................6 Inadequately educated workforce...............5................4 Poor public health .............9 Financial market development Goods market efficiency Labor market efficiency Denmark Innovation-driven economies The most problematic factors for doing business Tax rates ..1 11th pillar: Business sophistication.........1: Country/Economy Profiles Denmark Key indicators..........7................9 ..........................................................................1...7 .........................7 Access to financing ........................5 ...........5...............5..3..................... respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5...........................7......24..............3 Transition 1–2 1 GCI 2009–2010 (out of 133)......................9...................................2........9 9th pillar: Technological readiness........................4 12th pillar: Innovation......................................................................5 8th pillar: Financial market development.....52 ...........5 Tax regulations ........... 1980–2009 Population (millions).....0..3 GDP per capita (US$) ............................................................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..................5.......1 Inadequate supply of infrastructure ..................13 ..........56...0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors......1....................2..............................6 Restrictive labor regulations ..................................18 .......................................................................6.................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .............000 20........5..6 4th pillar: Health and primary education .13 ...7 ..3 .........9 ...................................................8 6th pillar: Goods market efficiency.............................5 GCI 2008–2009 (out of 134)..............0..................1 7th pillar: Labor market efficiency ............6 Foreign currency regulations.......16 ..........4...................2 Government instability/coups ..................21.................................6 10th pillar: Market size.12..........0..7 Crime and theft ...5............5............

...........03 7............12 Quality of port infrastructure ......04 7............02 8................09 4................130 Total tax rate* ......9 Business costs of terrorism .................................................................03 8..........08 4.......23 Extent of market dominance.......................11 Intellectual property protection ......................................19 1..06 11.06 8....10 Quality of math and science education.............................09 Cooperation in labor-employer relations.........................04 6...35 Financing through local equity market ...............3 Fixed telephone lines* ..2 Internet bandwidth* ............19 Efficacy of corporate boards .............................................06 Availability of latest technologies .........................10 Quality of roads .......................................................................................06 6.............................04 9.............41 Interest rate spread* .....................................................................................................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1............................18 Primary education enrollment rate* .........................................06 12...........11 Brain drain ..............16 Burden of government regulation .......03 12.................................02 5........................................11 1........................15 1..........................................................................................15 Organized crime ................................07 6............................05 5.............................27 Number of procedures required to start a business* ......................60 Ease of access to loans.........................................12 Company spending on R&D..........05 4................................17 1.....26 Efficiency of legal framework in settling disputes ....11 6...9 Quality of scientific research institutions ......8 Extent of staff training.........................................12 1...........03 4...........................85 Regulation of securities exchanges ..........13 State of cluster development.................10 Business impact of malaria ..............................................10 Local availability of research and training services...........02 7...................................07 1............03 1......................................................................7 6.01 Domestic market size index*...9 Strength of investor protection* ..01 5......................................................01 9.........................................................................36 Soundness of banks .......................................................................29 Restriction on capital flows ............04 8..............................06 1.........................................................28 Venture capital availability.7 Quality of the educational system.......6 Available airline seat kilometers* ................................12 Extent of marketing.......................................10 1........................................................................................02 4......................................01 1.......02 12...............................................................................07 8.08 7................05 6....07 7.........................................05 12..........43 Internet users* ............................................................................09 Availability of financial services ..........................6 Broadband Internet subscriptions* .......................1 Business impact of tuberculosis .................................................1 Malaria incidence*..................................................................27 Reliance on professional management ...........................12 Diversion of public funds.....................06 4.......01 6....28 Affordability of financial services.................................36 Business costs of crime and violence.........08 6...................................................02 2.........................................12 6...............................12 Effectiveness of anti-monopoly policy ...................06 5......................10 Ethical behavior of firms...........................08 8.....03 2.............................02 6...........8 10th pillar: Market size 10............01 4.......................11 Willingness to delegate authority..18 1...............14 Legal rights index* ............................01 11...............................55 Infant mortality* ..1 Pay and productivity .03 3........................31 Mobile telephone subscriptions* .16 Production process sophistication.............................................08 1.....13 1.............22 Business impact of HIV/AIDS....04 2..10 Quality of air transport infrastructure ...................................................................................................................20 1....................................36 Government debt* ..............23 Female participation in labor force* .......................13 Firm-level technology absorption ..11 Transparency of government policymaking............9 Availability of scientists and engineers .......60 Inflation*........01 8..............................................................................04 4..........................16 National savings rate* ...........................................................................................6 Extent and effect of taxation.07 5.............................................................................................................................................................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 143 ..................13 Efficiency of legal framework in challenging regulations ...........19 Quality of management schools .............9 Degree of customer orientation .................3 Favoritism in decisions of government officials ..20 Nature of competitive advantage .........................................................21 Property rights...................38 Local supplier quality .....08 11....04 5..21 2..03 11.................13 FDI and technology transfer...................................................4 Prevalence of foreign ownership ....................03 5.............................13 Protection of minority shareholders’ interests ............02 3.........................01 12......06 Government budget balance* .......................................................01 2............................02 9..................01 3..............05 3........02 Foreign market size index* .......................................07 4..................................05 11.........................05 9..................................................................................................50 10......................09 Local supplier quantity...09 6....................21 3rd pillar: Macroeconomic environment 3..04 3...13 6.4 Tuberculosis incidence* .............................................................90 Country credit rating*....4 Tertiary education enrollment rate*.................7 University-industry collaboration in R&D ...................03 6...............09 1..01 7...........4 Public trust of politicians .....................07 11..........................13 Agricultural policy costs...........44 11th pillar: Business sophistication 11...........8 Control of international distribution ..8 Gov’t procurement of advanced tech products ...............................42 Quality of electricity supply ..................................30 Quality of primary education .20 Life expectancy* .....27 2nd pillar: Infrastructure 2............06 2.......................................................................5 Wastefulness of government spending ......................44 Business impact of rules on FDI .06 7..16 1....................................02 11...............................14 1...................07 2.....................26 HIV prevalence* ..........19 Utility patents per million population*..12 Reliability of police services ....31 Trade tariffs*..............................10 6...................78 Burden of customs procedures.7 Buyer sophistication ............................................................05 1..............................04 1....05 7..................19 8th pillar: Financial market development 8................15 Notes: Ranks of notable competitive advantages are highlighted.............................107 Rigidity of employment* .......14 Time required to start a business*...05 2..................3 Redundancy costs* .............................15 Intensity of local competition .....................................................................................................14 Internet access in schools......................................10 Irregular payments and bribes.......8 Flexibility of wage determination ..............08 2......1: Country/Economy Profiles Denmark 7th pillar: Labor market efficiency 7.................................5 Strength of auditing and reporting standards.................10 Hiring and firing practices......5 Judicial independence ...........6 9th pillar: Technological readiness 9.................................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum.................. For further details and explanation....04 11..............................07 Capacity for innovation ...............................................................................................................................05 8..9 Quality of railroad infrastructure .............................................................................04 12....... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.......................................................45 Prevalence of trade barriers ...............................54 5th pillar: Higher education and training 5.....................03 9.......08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ........................02 1.....................14 6......................3 12th pillar: Innovation 12...............................8 4th pillar: Health and primary education 4.................6 Value chain breadth .09 Quality of overall infrastructure .......

....6 6th pillar: Goods market efficiency...000 6................................92 ....10............................................................................................ 1980–2009 Population (millions)..................0...19.........2 Poor work ethic in national labor force ..........................................98 ..........3...........................4........11 Dominican Republic 12........................................................3 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.........................................................3...8 5th pillar: Higher education and training ..........2 11th pillar: Business sophistication.3 Tax regulations ...............................3.............................107 .......3 Policy instability...........7 Tax rates ...............9 144 Transition 2–3 2 3 Innovation driven Institutions 7 Innovation Infrastructure 6 5 Business sophistication Efficiency enhancers...........8 1st pillar: Institutions ......99 ...............................................109 ..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................................82 ......................3.....7 Inadequately educated workforce.............................................0 Poor public health .7....3....................6 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .000 3..107 .........................000 Western Hemisphere 9...............................2 2nd pillar: Infrastructure.............46..89 ..................95 .........................................................2 8th pillar: Financial market development.....................3.........10.............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 2010–2011.4 Crime and theft .........................................................5 Government instability/coups .176 GDP (PPP) as share (%) of world total ........................................................8 9th pillar: Technological readiness..............3........2.......71 ........................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .7 Factor driven Efficiency driven Basic requirements...8 7th pillar: Labor market efficiency ....8 Access to financing ......................5.............................3..118 .....................................................................1..........3.............8 GCI 2008–2009 (out of 134)......5 Inadequate supply of infrastructure .....4...........6 10th pillar: Market size..........................0............................2.......88 .................................................... The bars in the figure show the responses weighted according to their rankings......7 12th pillar: Innovation.................101 ..5........3.3................66 ....9 Restrictive labor regulations .3...............................0 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.................2......12..........................................5.............................7 GDP per capita (US$) ......1 GDP (US$ billions)...............107 ................3.............99 ..............................1 Inflation ............................................................3............4.......................10...............................4.......3....... 2009 GDP (PPP) per capita (int'l $)..3........7 Transition 1–2 1 GCI 2009–2010 (out of 133).........8 3rd pillar: Macroeconomic environment .............99 .4.....3 Inefficient government bureaucracy..................................8...................................4 4th pillar: Health and primary education ....................

..............05 11.................................................. For further details and explanation...07 1...........................01 9..04 1............ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 145 .......................07 2...........52 Regulation of securities exchanges .. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter......68 Agricultural policy costs...............................120 Transparency of government policymaking....................................10 6..................................96 Mobile telephone subscriptions* ........94 6..............................09 Local supplier quantity.................................................13 1.......08 11.....................................87 4th pillar: Health and primary education 4.......................................................................................................14 1...........................138 Burden of government regulation ...78 Extent of staff training...................09 4.............54 National savings rate* ..03 11..06 4....71 Quality of the educational system................................................................................05 8............77 Protection of minority shareholders’ interests ..............................13 6..............03 3..........03 6..................121 Trade tariffs*.............................................................................02 9.......117 Ease of access to loans.....................................39 Business impact of rules on FDI .......................................01 2......................134 Public trust of politicians .................111 Quality of roads .......................................................................65 8th pillar: Financial market development 8......90 12th pillar: Innovation 12......................1: Country/Economy Profiles Dominican Republic 7th pillar: Labor market efficiency 7.63 Nature of competitive advantage .04 12..............................................................................................02 2................................08 1..............03 5....04 6............................94 Tertiary education enrollment rate*.....................06 5.............07 6..04 3................06 7............112 Brain drain .......51 Rigidity of employment* ..................08 8..................................79 Legal rights index* .............01 12.02 6...06 8...............06 2..........04 4.87 Extent of marketing......99 2.121 Quality of scientific research institutions ...............................................................................................01 11.103 9th pillar: Technological readiness 9....................02 5................................................................88 Control of international distribution .........................07 5............................01 3.........................139 Wastefulness of government spending ......08 2..........09 1.......................02 Foreign market size index* ...........................................03 2...............................06 Availability of latest technologies .............................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..................120 5th pillar: Higher education and training 5....11 6...........78 Quality of railroad infrastructure .........120 Extent and effect of taxation................73 Female participation in labor force* ........................................................................15 1....................................59 Burden of customs procedures...........................................02 8..................87 Buyer sophistication ............02 11.........................17 1....................50 Internet users* ..........................................................................11 1....................................................................................................................................115 Total tax rate* ...............................93 Business impact of tuberculosis .............................04 11..................................................................03 9......................................................73 Time required to start a business*.......84 Broadband Internet subscriptions* ...........15 Intensity of local competition ...................85 State of cluster development.........................................117 Utility patents per million population*....45 2nd pillar: Infrastructure 2............................03 12....................................01 7..............................09 Quality of overall infrastructure .123 Inflation*................02 7..............131 Effectiveness of anti-monopoly policy ...................01 4.....03 7........78 Efficiency of legal framework in settling disputes ..........07 11.................................103 HIV prevalence* .............................................................92 Local availability of research and training services....07 7.............66 Willingness to delegate authority....................................................88 Business costs of crime and violence...................................................................................................................................................121 Reliability of police services .................01 5............... An asterisk (*) indicates that data are from sources other than the World Economic Forum.........The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.04 9.........68 Affordability of financial services..86 Intellectual property protection .............51 Quality of electricity supply ........................109 Strength of auditing and reporting standards......................................19 1.....03 8.03 1.................80 11th pillar: Business sophistication 11........67 Notes: Ranks of notable competitive advantages are highlighted............99 Reliance on professional management ..........................................................93 Efficacy of corporate boards ...................................65 Quality of air transport infrastructure .........................................09 Availability of financial services ...............................01 Domestic market size index*.....83 Quality of port infrastructure ............01 8..............18 1.......102 Prevalence of trade barriers ...........113 Government debt* ..........20 1.81 Tuberculosis incidence* .04 2.........104 Diversion of public funds...............05 12........................................................133 Quality of math and science education.............02 4.....................................106 Infant mortality* .....................08 4.............................06 12.134 Ethical behavior of firms..........................16 1.............................................136 Quality of management schools ........................................................05 6......................................................93 Gov’t procurement of advanced tech products ..............................................06 Government budget balance* .....07 4.................08 6....................................................................110 Pay and productivity .................50 Hiring and firing practices......................................21 Property rights.............44 Interest rate spread* ........................01 6..........132 Fixed telephone lines* ......109 Strength of investor protection* ..............................04 5................05 1..............................67 10.........06 11..........63 Number of procedures required to start a business* ............................95 Life expectancy* ..........08 7....06 1.80 Prevalence of foreign ownership ...............................51 Available airline seat kilometers* .........80 Venture capital availability.......................................................................................99 Favoritism in decisions of government officials ....80 3rd pillar: Macroeconomic environment 3..56 Firm-level technology absorption ....................74 Quality of primary education ................09 Cooperation in labor-employer relations.......48 Country credit rating*........................................05 7..............73 Internet bandwidth* ............................................................02 1...........................................07 Capacity for innovation ...................64 Local supplier quality ........02 3.03 4.............................................113 Value chain breadth ...........05 2...........137 Primary education enrollment rate* ............................61 Business costs of terrorism ...........................................................................122 Company spending on R&D.......................12 1......................41 Flexibility of wage determination ........................09 6.01 1.........124 University-industry collaboration in R&D ..........87 Redundancy costs* .....................14 6..................04 8..............10 1.49 Production process sophistication......112 Restriction on capital flows .................10 Business impact of malaria ..................02 12...........................96 Judicial independence ...93 Internet access in schools......67 10th pillar: Market size 10................04 7................48 Soundness of banks ..........40 Degree of customer orientation ..............05 3.......................................91 Malaria incidence*.......................................73 Financing through local equity market .......05 9........12 6...........................................................................................................................05 5.........126 Irregular payments and bribes.............................................125 Organized crime ................................05 4..78 Efficiency of legal framework in challenging regulations ..........................................................................................77 Availability of scientists and engineers ..............................................................................................06 6.................81 Business impact of HIV/AIDS.........................57 FDI and technology transfer...........................................................07 8..86 Extent of market dominance..........................

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

....04 9.................135 Favoritism in decisions of government officials .............................................................................04 2..117 Local supplier quality ....................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ..............135 Reliance on professional management ....07 Capacity for innovation .....................03 11.............19 1.......07 8.....................128 Diversion of public funds................73 Notes: Ranks of notable competitive advantages are highlighted.................97 Willingness to delegate authority...............103 Internet access in schools........49 Quality of primary education .......................20 1.........17 1....119 Business impact of rules on FDI ...114 Rigidity of employment* .................................113 Strength of investor protection* ................................................104 State of cluster development..........114 12th pillar: Innovation 12...................03 3................................................18 1.......................................................01 7...................01 9........................01 11...97 Efficiency of legal framework in settling disputes .........106 Firm-level technology absorption .....................................................................................................120 Ethical behavior of firms...............43 5th pillar: Higher education and training 5...121 Time required to start a business*.........................103 9th pillar: Technological readiness 9...................................08 4.................................................................................10 Business impact of malaria .................06 6..............83 Regulation of securities exchanges .......................21 Property rights...........08 7...................................05 6......................60 10............06 11...........................................01 8...............................................................................................04 6.......................130 Pay and productivity ......12 1...129 4th pillar: Health and primary education 4.........04 8..........................................79 Business impact of HIV/AIDS.....................................103 Judicial independence ............13 1.122 Flexibility of wage determination .......01 1..........08 11....97 Ease of access to loans......86 Control of international distribution ...................................01 12.................................06 Government budget balance* .......................................127 Brain drain ...........04 3......................................116 Extent of market dominance.........................................................123 Intellectual property protection .....................93 Tertiary education enrollment rate*......................108 Venture capital availability............05 12..............112 Female participation in labor force* ................................03 7..............130 Public trust of politicians ..........................133 Soundness of banks .....59 3rd pillar: Macroeconomic environment 3.........................................................05 3.........................75 HIV prevalence* ....................08 6.113 Strength of auditing and reporting standards...................14 1...............16 1.......................................84 10th pillar: Market size 10........................1: Country/Economy Profiles Ecuador 7th pillar: Labor market efficiency 7.....86 Prevalence of foreign ownership .....................44 Government debt* ...03 9.................05 7................................................................................................21 Country credit rating*...........08 1........03 2................117 Quality of management schools ......05 2......115 Prevalence of trade barriers ..........................10 1......................04 5..............................................................124 Irregular payments and bribes.........135 Efficiency of legal framework in challenging regulations ...01 Domestic market size index*.04 11................103 Protection of minority shareholders’ interests ....................................02 2........................136 Redundancy costs* ..13 6.......................03 1.........................05 1..........................07 2...................122 Quality of math and science education....................................................02 1...05 11...................................92 Quality of air transport infrastructure ................07 7........................07 6........................71 Legal rights index* ...........................................................97 Production process sophistication.................................................................114 Quality of scientific research institutions .................................07 1.....109 Local availability of research and training services..................132 Company spending on R&D...............................................................................................120 University-industry collaboration in R&D ....................................................133 Burden of government regulation ...........83 Life expectancy* .....................................................05 5.....................................72 Quality of electricity supply ....................................117 Restriction on capital flows .................02 6................................11 1..........02 5...........03 8.....114 Financing through local equity market ..............03 4............... An asterisk (*) indicates that data are from sources other than the World Economic Forum......109 2nd pillar: Infrastructure 2......................................................02 3..............02 8......................05 4.............10 6........................................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 147 ...............................09 4.......................................................................108 Efficacy of corporate boards ............73 Available airline seat kilometers* ..................................02 4......................................................08 2..............................................06 2..................06 Availability of latest technologies .....................05 9...02 9...................06 5............................94 Broadband Internet subscriptions* ................................09 Local supplier quantity...........15 Intensity of local competition ..............................71 Infant mortality* .................03 5..........126 Value chain breadth .............08 8......................................................................................118 Availability of scientists and engineers ......................126 Agricultural policy costs....................................................05 8......99 Business impact of tuberculosis ......09 Cooperation in labor-employer relations...02 11...............The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1................02 7............14 6........... For further details and explanation.122 Gov’t procurement of advanced tech products ...111 Degree of customer orientation ................................................95 Interest rate spread* ...07 5.....83 Mobile telephone subscriptions* ....................................................43 Inflation*.......................................................07 4.................................................................................................................90 Hiring and firing practices.........................139 Trade tariffs*...113 Quality of port infrastructure ..01 5....................04 7................101 Extent of marketing...........................................................06 4................06 1................................................................129 Buyer sophistication ....................15 1......................132 Utility patents per million population*............138 Burden of customs procedures........................................................02 12.......................................132 Effectiveness of anti-monopoly policy ..........133 Extent and effect of taxation..........64 National savings rate* ...........................................132 Transparency of government policymaking................01 4..72 11th pillar: Business sophistication 11................98 Business costs of crime and violence........09 Availability of financial services .85 Internet bandwidth* ...............131 Internet users* ................................06 8..............................................95 Malaria incidence*...........102 Fixed telephone lines* .................07 11.....04 4........................98 Quality of roads ........06 7..........................................................83 Quality of railroad infrastructure ..................09 Quality of overall infrastructure ................11 6.............110 Affordability of financial services...............117 Primary education enrollment rate* .................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....................................................103 Extent of staff training....113 Reliability of police services .....................04 1.................01 2.......02 Foreign market size index* ..56 Quality of the educational system...........110 Nature of competitive advantage .......49 Number of procedures required to start a business* ..............................................12 6.......100 8th pillar: Financial market development 8..............................................................09 1............06 12.......03 12............106 FDI and technology transfer................09 6........................................107 6............................112 Business costs of terrorism ...................................................92 2...........................................04 12.......................124 Total tax rate* ........79 Tuberculosis incidence* ....................................112 Wastefulness of government spending .......01 3..........01 6..........03 6.................117 Organized crime .

. The bars in the figure show the responses weighted according to their rankings....2 Access to financing .................4 148 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers......87 ...83 ...........5 11th pillar: Business sophistication.................2.....9 Poor work ethic in national labor force ......................................................................0 Factor driven Basic requirements..............................4...000 3...0 Transition 1–2 1 GCI 2009–2010 (out of 133)...........................................0 GDP (US$ billions)......................................................2........................4...6...........3....5 Poor public health ............3............1 Tax regulations ....19.450 GDP (PPP) as share (%) of world total ..3....................................................................81 ...............................3.........................................1: Country/Economy Profiles Egypt Key indicators...........................91 ....0 3rd pillar: Macroeconomic environment ..................................4........2 Inefficient government bureaucracy.90 .....4.......6 Tax rates ...................5................89 ....3................133 ..........................................................3....3 10th pillar: Market size.............. 2009 GDP (PPP) per capita (int'l $).................................................10................4.3.000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011.................. 1980–2009 Population (millions).........................................2 Foreign currency regulations.............6 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..........................................4 4th pillar: Health and primary education ...........4.......64 .....................................5........................4...8 Inadequately educated workforce................000 6........0 GDP per capita (US$) .................................................................70 ........................................................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ............................................4 8th pillar: Financial market development..........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..................................................................................68 Egypt 12....129 .......9................97 ............................8 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....0 Inflation .....3.....68 ...............0........82 .......................188........................................000 Middle East and North Africa 9..............0..............9 Government instability/coups ....................................................5 Inadequate supply of infrastructure ..4........3.3...0 2nd pillar: Infrastructure.57 ....................................5.63 ...........6 6th pillar: Goods market efficiency.....0........0 12th pillar: Innovation....................82 ......2 1st pillar: Institutions .........4.........5 Policy instability..................................................................9 7th pillar: Labor market efficiency .......0 9th pillar: Technological readiness....................8 Crime and theft ....0 GCI 2008–2009 (out of 134)..................8 5th pillar: Higher education and training ..4.3.....................8................................. 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.....81 ..........................14..26 ...........1 Restrictive labor regulations .............83.....4......................

....02 7...........................60 Rigidity of employment* .............32 Tuberculosis incidence* ...............15 Intensity of local competition .........64 Judicial independence ............40 Irregular payments and bribes.......................................................05 8..............................................35 Value chain breadth ....................132 Business costs of crime and violence.......04 7...................................................33 Quality of electricity supply .......................................16 1......102 3rd pillar: Macroeconomic environment 3..........74 University-industry collaboration in R&D ..................................................29 HIV prevalence* ....................75 Total tax rate* ..............................01 8........01 7............................................04 8........51 Burden of government regulation ............................................................82 Protection of minority shareholders’ interests ..........126 Primary education enrollment rate* ..09 4........................69 Financing through local equity market .............................................01 12.............................06 Government budget balance* ...........07 5..........50 Degree of customer orientation .......................128 Pay and productivity ...................09 Quality of overall infrastructure ..........07 11.....04 9.....69 Transparency of government policymaking........61 Regulation of securities exchanges ..83 Public trust of politicians ................................07 7..........................................53 Fixed telephone lines* .............................07 Capacity for innovation .......01 Domestic market size index*...........................09 1......67 Diversion of public funds.126 2......02 Foreign market size index* .......03 5..............................86 Availability of scientists and engineers ..........110 Company spending on R&D....................08 11..........68 Business costs of terrorism .......02 5..............06 12................................................................................................11 1...............03 1...........................................84 Prevalence of trade barriers ...............27 10...........................09 6.....................................94 Quality of primary education .....02 11...........06 4...........................04 5......11 6.123 Prevalence of foreign ownership ....01 5.86 Brain drain .60 Affordability of financial services.................05 3...................................07 1......109 Quality of scientific research institutions ..........................................108 Inflation*.................................12 1........................04 12..........66 Nature of competitive advantage .96 Local availability of research and training services..............08 4........14 1.........................120 Gov’t procurement of advanced tech products ......................97 Organized crime ......................................................................................................91 Extent of market dominance..02 4...02 1..................................07 6..............01 3............................04 6.....06 Availability of latest technologies ....................................................................................................................08 7.......07 4.....13 1.........79 Willingness to delegate authority.....03 2................ The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 149 ......75 Burden of customs procedures............................06 1...119 Country credit rating*.............................................06 6........................................................................................................44 Business impact of HIV/AIDS.....01 4...................02 8.114 Trade tariffs*.............................................................................................................................................135 Interest rate spread* ............46 Quality of port infrastructure ........14 6...........130 8th pillar: Financial market development 8........................20 1......................................................72 10th pillar: Market size 10.............02 12..............67 Control of international distribution ..................................78 Number of procedures required to start a business* ......................................19 1...............................................01 1.99 Flexibility of wage determination .......................................89 State of cluster development............21 Agricultural policy costs......................................................................29 Ease of access to loans..........................................................91 Firm-level technology absorption ........................64 Extent of staff training..........05 7.... An asterisk (*) indicates that data are from sources other than the World Economic Forum....................84 Notes: Ranks of notable competitive advantages are highlighted.............53 Internet users* .......................................04 4.................12 6.........05 4.07 2.........09 Cooperation in labor-employer relations....04 11...........................................................1 Malaria incidence*......................................125 Quality of management schools .................................................................................08 6...........39 Available airline seat kilometers* ................................63 Buyer sophistication ...........03 6.......................122 Internet access in schools...........................100 Business impact of rules on FDI ..........09 Local supplier quantity.............09 Availability of financial services ............02 9............................................................76 Redundancy costs* ..........................03 12.........03 7......................................................................02 3..........................01 9..............................................................................05 6...............................................106 Extent and effect of taxation......03 8............................................13 6.............67 Legal rights index* ........................15 1..........................................69 Government debt* ...........78 Quality of the educational system...............................03 9...............................49 Venture capital availability........................08 1.05 9..................34 Time required to start a business*.......80 Life expectancy* ................14 Reliability of police services ..........................................................................95 Wastefulness of government spending ...................................27 11th pillar: Business sophistication 11.76 Reliance on professional management ....04 2...........................1 Business impact of tuberculosis ............................................................................................02 2.......................................1 Infant mortality* ........03 4.......03 3.................69 4th pillar: Health and primary education 4....58 FDI and technology transfer.....58 Efficacy of corporate boards ....91 Internet bandwidth* ...............25 Utility patents per million population*...79 Efficiency of legal framework in settling disputes .84 Soundness of banks ..............05 5..............10 1...............................................21 Property rights......................112 6........................................46 Strength of investor protection* .......................41 Restriction on capital flows ...........................................107 National savings rate* ............56 Intellectual property protection .81 Ethical behavior of firms.........................................10 6.....................04 3................06 2................................69 Quality of air transport infrastructure ............................................57 12th pillar: Innovation 12....68 Quality of roads ..........05 11........114 Female participation in labor force* ..............................73 5th pillar: Higher education and training 5.....40 Efficiency of legal framework in challenging regulations ..................59 2nd pillar: Infrastructure 2.103 9th pillar: Technological readiness 9.......................................06 8....................131 Quality of math and science education..........................59 Strength of auditing and reporting standards...............................................................................18 1.........................05 12....................................................................08 2....36 Local supplier quality ...........17 1...............................................75 Quality of railroad infrastructure ....10 Business impact of malaria .........................67 Hiring and firing practices....................................................................................05 1.....................................01 6..........................................06 11.................02 6..............08 8...................................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ... For further details and explanation....04 1....07 8............................................................87 Mobile telephone subscriptions* ....................................................90 Broadband Internet subscriptions* .......46 Extent of marketing..........................06 5..........94 Production process sophistication...........63 Favoritism in decisions of government officials ..........05 2........................01 2..01 11................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter...........................................95 Effectiveness of anti-monopoly policy ..............................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..............................1: Country/Economy Profiles Egypt 7th pillar: Labor market efficiency 7...................................03 11...............06 7......................................................................................90 Tertiary education enrollment rate*...

.........2 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ....... 2009 GDP (PPP) per capita (int'l $)....4..0...............................3 Tax regulations .......................96 .............0 Transition 1–2 1 GCI 2009–2010 (out of 133)..................................79 ....................................3.............................623 GDP (PPP) as share (%) of world total ...........................................82 ........................5..0................59 .............68 ......6...0 Factor driven Basic requirements.......4...................................4 Inefficient government bureaucracy............................81 ......................4 10th pillar: Market size......78 ...............................................4 1st pillar: Institutions ...................................................................................... 1980–2009 Population (millions)................126 ...........................87 ...................3...........4 Corruption.............................................5 6th pillar: Goods market efficiency.....................3..............................4 2nd pillar: Infrastructure...........4.......101 ...........................................88 .........000 Western Hemisphere 9......3.............4...1: Country/Economy Profiles El Salvador Key indicators...9.........17.............06 El Salvador 12....................................................4 Poor public health ...................2.................................................64 ....1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...........0 GCI 2008–2009 (out of 134)........7 4th pillar: Health and primary education ...................................1..5 Inadequately educated workforce......................................................3 Access to financing .... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .9 12th pillar: Innovation.....4 Inadequate supply of infrastructure ................8 5th pillar: Higher education and training ......2 11th pillar: Business sophistication.....................1 3rd pillar: Macroeconomic environment .........000 3......0 Restrictive labor regulations ....................000 6..........................................3..................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.........4....................3...........53 .................................0 9th pillar: Technological readiness................................0...........2 GDP (US$ billions)..3.....0 Poor work ethic in national labor force ....................9 Foreign currency regulations.....................................4.....2 8th pillar: Financial market development.............................................3................101 ........9. The bars in the figure show the responses weighted according to their rankings.4...77 ......3.........3................3......25............................................3 7th pillar: Labor market efficiency .........87 .......0 Government instability/coups .....................................................81 ......8 Inflation .....9 Tax rates .............. 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 GDP per capita (US$) ................3......3....................2.............4...........................1..21.5 150 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers......7 Policy instability..................................13..........................4........................71 ...............................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 ......

..............03 3...................105 Legal rights index* .04 8......................06 1............29 Flexibility of wage determination ...02 1...99 Ethical behavior of firms......................................................................70 Financing through local equity market ...................................12 6..........80 Malaria incidence*..49 State of cluster development..............68 Degree of customer orientation ............02 Foreign market size index* ..............33 Available airline seat kilometers* ..32 Regulation of securities exchanges ..........................................................................................................58 Business impact of HIV/AIDS...................04 5..........................................74 Judicial independence .................02 5...................63 Agricultural policy costs.07 5......01 8...............................18 1..................................................................91 Extent of marketing................................................................80 Nature of competitive advantage ...............121 Quality of math and science education..............................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1................................................05 1........20 1......................05 4.................. An asterisk (*) indicates that data are from sources other than the World Economic Forum.......106 Strength of investor protection* .................110 Quality of port infrastructure ......................................55 Affordability of financial services.................................................................79 Internet access in schools......83 Extent of staff training.......................................... For further details and explanation...............................................03 7......07 6......................................................................73 Business impact of tuberculosis ...............................02 6............105 Local availability of research and training services...................07 2..........................................................01 1..........................................................................................10 6.......17 1......70 Mobile telephone subscriptions* ......03 1.........04 9.................08 7....................................05 9.19 1.........05 7..............61 National savings rate* ......104 Ease of access to loans..............................51 Trade tariffs*..........21 Property rights............... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 151 ...................................................................07 4.............91 10th pillar: Market size 10.....................81 Internet bandwidth* ..................................81 Reliance on professional management ....................133 Company spending on R&D.......................................99 2nd pillar: Infrastructure 2..86 Quality of electricity supply ........95 Broadband Internet subscriptions* ........99 11th pillar: Business sophistication 11.............................06 6..................................................02 8........................................09 1..........................54 12th pillar: Innovation 12........................................04 11............06 7.........75 Country credit rating*...........05 11.......................................................124 Quality of management schools ...15 Intensity of local competition ...............113 Business costs of crime and violence.................69 Burden of government regulation .....100 Favoritism in decisions of government officials .......................31 3rd pillar: Macroeconomic environment 3.........60 Fixed telephone lines* ...........................09 Local supplier quantity...............................................122 University-industry collaboration in R&D ...................................63 6............................11 6........63 Efficacy of corporate boards .................03 4........................02 11....07 8.........................................................15 1................................................75 9th pillar: Technological readiness 9...74 Business costs of terrorism .107 Pay and productivity ......97 Infant mortality* .....................................................................81 10.....................08 4...............09 4................41 Extent of market dominance............................................07 Capacity for innovation ........................29 Quality of railroad infrastructure .........................................12 1....93 Venture capital availability............................................96 Extent and effect of taxation.08 6................16 1......................................06 Government budget balance* .......99 Effectiveness of anti-monopoly policy .............................01 5................38 Soundness of banks ............06 8.......54 Value chain breadth ...........61 Control of international distribution ........03 11......02 12..................................................................................................27 Interest rate spread* .........................13 1......98 Irregular payments and bribes..........................................................................03 6....04 1..........02 3....................01 11.................................................................................................13 6............................113 Availability of scientists and engineers .......................................106 8th pillar: Financial market development 8..138 Organized crime ...................................14 6............................03 9.......................................35 Total tax rate* ....................73 Time required to start a business*..................73 HIV prevalence* ................................09 6..................................60 Hiring and firing practices........................01 6....................................................05 5..........139 Reliability of police services ...............................01 7.........13 Redundancy costs* .................................04 3................114 Primary education enrollment rate* ............06 4..................06 Availability of latest technologies .............................................56 Prevalence of trade barriers ........................44 Quality of roads .................03 2...........58 Tuberculosis incidence* .........09 Availability of financial services ........................................02 9..............02 4..............45 Government debt* ......................................................06 2...85 Production process sophistication..................04 12...01 Domestic market size index*..03 12........................38 Business impact of rules on FDI .....04 2............................................87 Female participation in labor force* ...........73 2.03 5..67 Firm-level technology absorption ...............................91 Restriction on capital flows ...................02 7...........68 Willingness to delegate authority........................74 Public trust of politicians ................10 Business impact of malaria ..........................................................125 Utility patents per million population*..................04 6.........................................85 Quality of the educational system.....114 Gov’t procurement of advanced tech products .....82 Intellectual property protection .........................................................101 Efficiency of legal framework in challenging regulations ...............05 3...08 8.....................01 4........25 Protection of minority shareholders’ interests ......02 2............................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....89 Quality of primary education ................08 2.......................................04 7..........................................................................................05 12...04 4...................................................................................46 Prevalence of foreign ownership .............................................................................................................................96 Diversion of public funds...............06 11.66 Burden of customs procedures.........08 11.........71 Life expectancy* ...............................07 11..77 4th pillar: Health and primary education 4...........................................01 9..90 Notes: Ranks of notable competitive advantages are highlighted..................06 5..................117 Quality of scientific research institutions ...........................................01 12.............................71 Quality of air transport infrastructure ..................09 Quality of overall infrastructure .........................................07 1.......................................62 Strength of auditing and reporting standards..................................14 1....94 Brain drain ...................................118 Inflation*....................101 Transparency of government policymaking......05 6......................73 Internet users* ......09 Cooperation in labor-employer relations......................10 1....05 8..................01 2....................................................106 Tertiary education enrollment rate*...................................................................................50 Number of procedures required to start a business* .........70 5th pillar: Higher education and training 5.........................................55 Efficiency of legal framework in settling disputes .......11 1........................06 12...05 2................08 1........................................................................07 7................03 8...........................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ............1: Country/Economy Profiles El Salvador 7th pillar: Labor market efficiency 7......................................32 Buyer sophistication ..82 FDI and technology transfer....................70 Local supplier quality ..........01 3.......27 Rigidity of employment* ...............108 Wastefulness of government spending ............

................................267 GDP (PPP) as share (%) of world total ..................................................................................18........................................................................0.........4..............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 .....35 .....................................................5..................19.......56 ................. The bars in the figure show the responses weighted according to their rankings...........000 Central and Eastern Europe 20.................4................3 GDP (US$ billions)....................6 GCI 2008–2009 (out of 134).......................4 1st pillar: Institutions ...8 Crime and theft ..............4.............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.........................17 ...0.4...................................32 .4.....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 ............9 11th pillar: Business sophistication......1: Country/Economy Profiles Estonia Key indicators....................29 .......04 Estonia 30..................25 .............1 12th pillar: Innovation... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 .....5...0 Policy instability.......................5 5th pillar: Higher education and training ........000 10........4....9 3rd pillar: Macroeconomic environment ...................8 Inflation .....................................29 ......................7 Factor driven Basic requirements.2...............8 Restrictive labor regulations .............................. 2009 GDP (PPP) per capita (int'l $)........6................14....9 Inadequately educated workforce.......34 ......4................4.....................3 152 2 Transition 2–3 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...3 Tax regulations ............................7 7th pillar: Labor market efficiency .........9.....................33 ..3..................22 ......9 10th pillar: Market size.........................................................................4..................101 ..................................................3 Foreign currency regulations..............................................5....................................3................8 Inadequate supply of infrastructure ...........................................2..........12.................37 ........ 1980–2009 Population (millions)......9 2nd pillar: Infrastructure...................4.......6....5 9th pillar: Technological readiness.........................................2...........................11....6 Transition 1–2 1 GCI 2009–2010 (out of 133)..........1 GDP per capita (US$) .............0 Corruption..31 ...................................32 ..........2 6th pillar: Goods market efficiency....................6.........1...........10.2................................................................3 Poor work ethic in national labor force .................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 Inefficient government bureaucracy...............................45 ..4..........................6...4 4th pillar: Health and primary education ..........24 ................2 Tax rates ..............9 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors..................................................5 Government instability/coups ........8 Poor public health ......45 .........................................3...........9 8th pillar: Financial market development..................

....................................15 Intensity of local competition .........11 6..................................16 1..........................02 5..........01 7........................................33 Ethical behavior of firms.......................17 Quality of air transport infrastructure ........39 Fixed telephone lines* ...............57 Female participation in labor force* .......................................................04 5..........................................................................................................08 4...........................................................................02 7...........................................................................................................07 6...................05 7..25 Broadband Internet subscriptions* .........................125 Quality of electricity supply .....04 7.................................................................42 Prevalence of trade barriers ........14 1................20 1................................46 Extent and effect of taxation.............07 11.....60 9th pillar: Technological readiness 9......................................04 2.08 2.................................07 5................30 Restriction on capital flows ............................................................03 12.......03 2.................56 4th pillar: Health and primary education 4.........................31 Extent of market dominance..................................44 Legal rights index* .............................................................08 1...................................12 Degree of customer orientation ...01 8................................................36 Quality of port infrastructure ........03 5..........49 Burden of government regulation ...........07 Capacity for innovation .......68 Pay and productivity ........26 Company spending on R&D..........04 1.....05 4.42 FDI and technology transfer...............07 2.01 11..................................06 8..................09 Local supplier quantity.........37 Public trust of politicians ......72 Regulation of securities exchanges ..............................................04 11...........06 Availability of latest technologies ......................46 University-industry collaboration in R&D ............62 Quality of primary education ..............25 Quality of the educational system...................................................08 6..110 Infant mortality* .............................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...........................2 3rd pillar: Macroeconomic environment 3.......54 Strength of investor protection* ..........................................................66 Protection of minority shareholders’ interests ............................05 8...24 Favoritism in decisions of government officials ...........33 Extent of staff training.....17 1...............................................................04 4..45 2nd pillar: Infrastructure 2..............................30 Organized crime ...........17 8th pillar: Financial market development 8........................03 4.05 11..........10 1....11 Soundness of banks ................ An asterisk (*) indicates that data are from sources other than the World Economic Forum.....................05 1..............................................................................................37 Flexibility of wage determination .....................................................................................................................12 6......................................................................94 Local supplier quality .40 Transparency of government policymaking.....................................50 Venture capital availability.47 Inflation*...........05 9...........11 1.............98 Number of procedures required to start a business* .....................................01 2..............02 3.......18 Interest rate spread* ..31 Firm-level technology absorption ....................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 153 .............26 Tertiary education enrollment rate*............58 Utility patents per million population*............06 12.................................29 National savings rate* .........................................40 Notes: Ranks of notable competitive advantages are highlighted.........09 Availability of financial services .........38 Effectiveness of anti-monopoly policy ....41 Extent of marketing.......................................................................................09 Quality of overall infrastructure ..........58 Control of international distribution ..............................60 Business impact of HIV/AIDS.................12 1.................................36 Wastefulness of government spending .........07 1..........................43 Affordability of financial services.......................01 9.........................14 Business costs of terrorism ....01 12.............................................................74 Available airline seat kilometers* ..51 Government debt* .................................................................01 4..........03 7...........................................................79 Production process sophistication.........23 Burden of customs procedures....06 11.02 Foreign market size index* ...............................1 Malaria incidence*...29 Brain drain .04 6...........................03 8.........................................................................................68 Ease of access to loans...........48 Quality of railroad infrastructure ...........................04 12..08 11.....7 Efficiency of legal framework in settling disputes .............................05 12.......07 8.......................03 9............05 3.....14 6....42 Quality of math and science education.........................................................34 Diversion of public funds......19 Internet bandwidth* ..........................................107 10..........................06 2.........................06 5........25 12th pillar: Innovation 12.............27 10th pillar: Market size 10...........07 7...................................57 HIV prevalence* ...................09 1.......06 1..123 Hiring and firing practices................ please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter............................09 Cooperation in labor-employer relations.53 Value chain breadth .................................................03 3......1 Business impact of tuberculosis ..............................10 6..................................41 Efficiency of legal framework in challenging regulations .02 8........................................................04 8.02 2...........05 2.........19 1.........................21 Quality of management schools ....8 Reliance on professional management ..............03 6......14 Trade tariffs*..........................................30 Judicial independence ........................32 Mobile telephone subscriptions* ......................................................................41 Internet access in schools.............34 Quality of scientific research institutions ................01 6...................................61 Willingness to delegate authority....................................................................43 Availability of scientists and engineers ........10 Business impact of malaria ........21 Agricultural policy costs...................18 Total tax rate* ....................52 Tuberculosis incidence* ..........................92 Nature of competitive advantage .........12 Business costs of crime and violence.....................................................................09 4............................................05 6....................02 12.............................................................28 Quality of roads .................................................................. For further details and explanation....................................................................................40 Internet users* ...............06 6.......................18 1........................16 Primary education enrollment rate* ......01 5...03 1................................................................09 6......01 Domestic market size index*.................................4 Prevalence of foreign ownership .................06 Government budget balance* ...................19 Reliability of police services ................48 6.....................................1: Country/Economy Profiles Estonia 7th pillar: Labor market efficiency 7.......................................................................03 11....25 Life expectancy* ...........................33 Strength of auditing and reporting standards...06 7.....................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1.........13 1......66 5th pillar: Higher education and training 5..........04 9........56 Redundancy costs* .........................02 9.........02 11....................................................15 1.............08 7.....05 5...........................48 Business impact of rules on FDI ........................................................................................................................................................26 Efficacy of corporate boards ........23 Time required to start a business*...............................01 1................36 Gov’t procurement of advanced tech products ....................................................................................................................07 4........2 Local availability of research and training services.84 11th pillar: Business sophistication 11..........5 Country credit rating*.......................................40 Buyer sophistication .............78 2....5 Rigidity of employment* .............................................................02 1...21 Property rights.......................06 4..................................................................................02 4.........................01 3.....02 6.......................................13 6.....................33 Intellectual property protection ..........08 8..................04 3.....49 Financing through local equity market ......................53 Irregular payments and bribes.....................36 State of cluster development.........

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

.04 5..................................................87 Quality of roads .39 Prevalence of trade barriers ......51 Wastefulness of government spending ......................28 Strength of investor protection* .............08 11.........................67 Efficiency of legal framework in challenging regulations ...48 Available airline seat kilometers* ............................01 Domestic market size index*.65 Country credit rating*.......................129 Extent of marketing...........................01 5..............02 8..........................................................................................................07 1........91 Regulation of securities exchanges .06 1.....07 5..01 2..........02 2............................................................90 Efficacy of corporate boards ...........................................01 7..................................................107 11th pillar: Business sophistication 11...........................................................................21 Property rights.................26 8th pillar: Financial market development 8.........................................106 Internet access in schools...............................................04 7..................12 1.......06 Government budget balance* ..........................................................80 Protection of minority shareholders’ interests ....07 7.............54 Availability of scientists and engineers ........................................................09 Quality of overall infrastructure ............................10 6.........................04 9...........108 Trade tariffs*..04 4..........................07 8.......................07 4.................06 4.........07 6..................................................59 Government debt* ..84 Redundancy costs* ..............03 8...................................77 Production process sophistication......................01 3...........................................100 Business costs of crime and violence..........54 Organized crime .....................129 Quality of the educational system......30 Agricultural policy costs..................................................................................................09 Availability of financial services .......................................02 1.......... An asterisk (*) indicates that data are from sources other than the World Economic Forum..123 State of cluster development....04 2.......................................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1..............................................................100 Business costs of terrorism ......................................71 Hiring and firing practices.06 2..........................04 6............................11 1...82 Effectiveness of anti-monopoly policy .118 Prevalence of foreign ownership .........03 2...................01 4..............................................................................27 Efficiency of legal framework in settling disputes ......................................................01 9..............71 Diversion of public funds.............12 6.................94 Quality of management schools .....................................................23 Time required to start a business*..............100 Ease of access to loans.......06 Availability of latest technologies ............................94 Inflation*.......04 12.................................79 Burden of customs procedures.........................60 Quality of air transport infrastructure ...........................119 Financing through local equity market ........................106 Quality of scientific research institutions ...............................................136 Internet bandwidth* ..........................135 10th pillar: Market size 10...............................123 5th pillar: Higher education and training 5................11 6....139 Interest rate spread* .................................115 Control of international distribution ....................................................02 11.......................................04 1..........................125 Business impact of rules on FDI .......56 Irregular payments and bribes...............18 1............................................................................................................................................................................................................07 Capacity for innovation .........89 Favoritism in decisions of government officials ....06 12...................70 Transparency of government policymaking....................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter......................06 6.............................14 6..................................................129 Firm-level technology absorption .........................05 4.............................05 12.122 6......................................................................................................07 11........................06 8..............32 Number of procedures required to start a business* .......................09 Cooperation in labor-employer relations.......127 Business impact of HIV/AIDS....................................03 11................14 1.............123 Legal rights index* ......107 Internet users* .......... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 155 ................102 Company spending on R&D..............................88 Judicial independence ......................................................................................03 3..........................................................05 9..............................................10 1................................90 Reliance on professional management ...48 Rigidity of employment* .......03 7.................................129 Soundness of banks ...08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .86 9th pillar: Technological readiness 9...............114 Restriction on capital flows .136 Broadband Internet subscriptions* .....06 5...................132 Willingness to delegate authority....................01 11.02 4...09 Local supplier quantity............96 Female participation in labor force* .................124 FDI and technology transfer.05 2..110 Brain drain ..................................13 1.......................................................................................................10 Business impact of malaria ............................................09 6...................................................124 Tertiary education enrollment rate*.......98 12th pillar: Innovation 12...04 3............................................................54 Public trust of politicians .....02 6...........................124 HIV prevalence* .....................03 5..................................................................68 Quality of electricity supply ........120 Venture capital availability...............05 11.............................................................................................120 Infant mortality* .........09 1..........60 Intellectual property protection ...08 4..................05 6.........................................103 Extent and effect of taxation............60 National savings rate* ...........01 12..129 Utility patents per million population*............06 7...15 Intensity of local competition ...........................91 Primary education enrollment rate* ........100 Degree of customer orientation ...........118 Local supplier quality ......................................65 Strength of auditing and reporting standards.....90 Notes: Ranks of notable competitive advantages are highlighted.....................................03 6......08 1......60 Quality of math and science education.........................................................08 6..........123 University-industry collaboration in R&D .........02 12..................................51 Reliability of police services .......17 1......................................... For further details and explanation.............................02 7......................60 Quality of railroad infrastructure .......06 11........................15 1...............................105 Flexibility of wage determination ............02 Foreign market size index* .59 Ethical behavior of firms......................05 5..................125 Tuberculosis incidence* ..............................05 1.....................03 1.......................103 Quality of port infrastructure .100 Buyer sophistication .....................118 Business impact of tuberculosis ........................................05 7.......................................................62 Total tax rate* ...121 Life expectancy* ........................................................................08 2.....07 2.......03 12...............122 Extent of staff training..139 3rd pillar: Macroeconomic environment 3........................05 3.31 Burden of government regulation .................................117 Malaria incidence*......127 Local availability of research and training services..02 9...............................................02 3..........................................................................................................04 8...................................03 4.............121 Quality of primary education ...............................................................111 Extent of market dominance...................................13 6....119 Fixed telephone lines* ....................77 Pay and productivity ......................132 Value chain breadth .......................01 6...01 8.........02 5.08 7........05 8..........................................125 Mobile telephone subscriptions* ...........102 2........................................04 11......16 1..........68 10.....1: Country/Economy Profiles Ethiopia 7th pillar: Labor market efficiency 7..20 1......08 8..01 1........101 Gov’t procurement of advanced tech products .............124 Affordability of financial services.................132 4th pillar: Health and primary education 4..99 2nd pillar: Infrastructure 2..................................114 Nature of competitive advantage ...................................................03 9.....................09 4............19 1...

.........5.........................................................................4 ........................0 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....5...............................................5...4 Transition 1–2 1 GCI 2009–2010 (out of 133).............8 156 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers...........................5....5...6.........1 ................7 .........0.....................492 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.....8 8th pillar: Financial market development..........2..13.4 9th pillar: Technological readiness...................24......................9 7th pillar: Labor market efficiency .........8 Government instability/coups .......................0............1 Inflation ........... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ........................................6 ......................5.6 ......9 Corruption...26 Finland 50..6 Financial market development Goods market efficiency Labor market efficiency Finland Innovation-driven economies The most problematic factors for doing business Tax rates ......4..................................... The bars in the figure show the responses weighted according to their rankings........1.000 Advanced economies 40.........................................1 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .......0................................................5......3 GDP (US$ billions).......................................................0.6..........6 .............15 .....................................2 .........................15.....0..............6 3rd pillar: Macroeconomic environment ..............44..............................................................................4 GCI 2008–2009 (out of 134).........................................................1 5th pillar: Higher education and training ..................................................................6 Access to financing ....3 .........9..000 30.......1...4 Foreign currency regulations.......5........5........................4 Inefficient government bureaucracy.................000 20...6 4th pillar: Health and primary education ....................................................1 GDP per capita (US$) ...................4.....238..........0 1st pillar: Institutions ............5 ...........4 Poor work ethic in national labor force ...................5 Factor driven Basic requirements...15 ...............................5....................4 ......................2.............0 2nd pillar: Infrastructure...........9 Poor public health ....21..................3 Policy instability......3 12th pillar: Innovation..14 ..1: Country/Economy Profiles Finland Key indicators.................................5.....0 Crime and theft ..........17 .8 Inadequately educated workforce.............000 10............................22 .........2 10th pillar: Market size.0...................................................................................4.....................................24 ..6 Restrictive labor regulations ...........................3............................................................................................ 2009 GDP (PPP) per capita (int'l $)...................5....................................6.9 Inadequate supply of infrastructure ..........4 11th pillar: Business sophistication.....56 ................................... 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...................9 Tax regulations ..............6..10 ........................................3......1 6th pillar: Goods market efficiency...................................

......03 2..........................................................13 3rd pillar: Macroeconomic environment 3.....15 Available airline seat kilometers* ....06 1.....02 12..................................................14 1....................................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 157 ......08 4.......2 Diversion of public funds............01 4...................9 Tertiary education enrollment rate*..........08 8.............................................................49 Mobile telephone subscriptions* ......................................06 8...........................18 1..........................................5 Quality of scientific research institutions .............................23 Business impact of HIV/AIDS........9 8th pillar: Financial market development 8......................17 1....................07 4..............06 6..................................................................02 5........06 4.......................................................................03 11.11 1.....................................09 Quality of overall infrastructure .........07 7.........................................................9 6.........................................5 University-industry collaboration in R&D .................................................3 Strength of auditing and reporting standards............39 9th pillar: Technological readiness 9.................04 8...................................73 Redundancy costs* .07 5...............132 Rigidity of employment* ..................................................11 Local availability of research and training services..............................................6 Quality of math and science education....................................................17 10th pillar: Market size 10. An asterisk (*) indicates that data are from sources other than the World Economic Forum...........4 Firm-level technology absorption ...........5 Efficacy of corporate boards .........12 Affordability of financial services...........104 Hiring and firing practices.04 2....................................................9 Nature of competitive advantage ........................06 2...........23 Business impact of rules on FDI ......4 Restriction on capital flows ......................13 1................................................24 Quality of primary education .................................45 Interest rate spread* .............93 Number of procedures required to start a business* ....................................93 Country credit rating*....................................................69 Reliance on professional management ............08 11..................................15 Flexibility of wage determination .................8 Quality of roads ............6 Notes: Ranks of notable competitive advantages are highlighted.....7 Extent of staff training......07 11..........................18 National savings rate* ......14 Burden of government regulation ................1: Country/Economy Profiles Finland 7th pillar: Labor market efficiency 7...............................01 5.........................................................................................................................07 2......03 1.01 2......................06 7..........................3 Gov’t procurement of advanced tech products .............52 Agricultural policy costs.........7 Life expectancy* ...............................................................7 Legal rights index* .......................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1......................................6 HIV prevalence* ............................................................................................05 12.................04 11.....................................10 Efficiency of legal framework in settling disputes ............04 7..8 Business costs of crime and violence...03 12....10 Organized crime ...........................02 11..............................................14 Internet bandwidth* ........................48 5th pillar: Higher education and training 5........8 Business costs of terrorism ...................................................................................................................10 Business impact of malaria ...................05 6.......................12 FDI and technology transfer..09 Availability of financial services ..........................................................................2 Quality of the educational system.09 6..............7 4th pillar: Health and primary education 4..............2 Intellectual property protection .....................................................................................82 Inflation*..................02 1......09 Local supplier quantity......4 Extent and effect of taxation...................54 11th pillar: Business sophistication 11...............................................05 9.......05 3............06 Government budget balance* ...............................01 12............7 Efficiency of legal framework in challenging regulations .....4 Value chain breadth ..................04 9.............03 3......................................................................................... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter....05 11........09 Cooperation in labor-employer relations.............6 Availability of scientists and engineers ......................................19 State of cluster development..........................................................08 7.48 Pay and productivity ....49 Quality of electricity supply .........02 7...................................01 11...........................................................14 6...............05 1..............................4 Brain drain .8 Trade tariffs*.......................................................................................04 1...................18 Internet access in schools.....7 Quality of port infrastructure .................................12 1.......................6 12th pillar: Innovation 12...04 6..........................................................03 8.............................................................27 Effectiveness of anti-monopoly policy ............21 Property rights.........................25 Production process sophistication..................................................................01 Domestic market size index*......................45 2nd pillar: Infrastructure 2..........80 Local supplier quality ........ For further details and explanation..6 Degree of customer orientation ...................9 Wastefulness of government spending ......................13 Quality of railroad infrastructure .........4 Prevalence of foreign ownership ......2 Strength of investor protection* ..............................5 Public trust of politicians .................11 6.........6 Government debt* ......8 Broadband Internet subscriptions* .............................02 9....................................6 Time required to start a business*...............25 Buyer sophistication ...............02 8........07 8..............10 1...................10 6...........................................03 4.........01 7................6 Financing through local equity market ......................................20 1........................1 Primary education enrollment rate* ....16 1.....52 Extent of market dominance..................1 Utility patents per million population*.................01 9...13 Company spending on R&D................5 Reliability of police services ..........4 Fixed telephone lines* .............................03 5........5 Extent of marketing..................................................09 4......03 6................03 9..........15 Intensity of local competition .......................................13 6........................05 5............02 6....1 Ethical behavior of firms..........09 1..........................................6 Favoritism in decisions of government officials .......02 2.....1 Tuberculosis incidence* ..12 6...............................9 Protection of minority shareholders’ interests ..04 12..............9 Control of international distribution .......07 Capacity for innovation ............07 6....................1 Malaria incidence*.............41 Burden of customs procedures.....93 Internet users* .........................................................06 Availability of latest technologies ...48 Ease of access to loans..06 12.....01 1...............05 7...................................................................99 Prevalence of trade barriers ...................02 4.......07 1..........................03 7.....................................05 8..............................................................................................114 Total tax rate* ..........................................................................29 Willingness to delegate authority.......................11 Regulation of securities exchanges .1 Business impact of tuberculosis ...............................15 1..........13 Irregular payments and bribes.........................................................04 4.....................................08 2.................3 Quality of management schools .......08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* .....6 Quality of air transport infrastructure .......................................................17 2..............53 10............................................................................................................................................................02 3..........................................................................................................4 Transparency of government policymaking.........................2 Soundness of banks .........................20 Female participation in labor force* ............................08 6.........4 Judicial independence ......5 Venture capital availability.................22 Infant mortality* ........................................................................05 4............01 8...............................06 5...........02 Foreign market size index* ..04 5................................08 1...............................19 1...01 6.........................................................................05 2.....04 3.........................................01 3...........................................06 11......

..........................................................2 12th pillar: Innovation......................................19.......0 Inadequate supply of infrastructure ......................4..0..60 ........26 .......................5...................................................6.2.........5 Financial market development Goods market efficiency Labor market efficiency France Innovation-driven economies The most problematic factors for doing business Restrictive labor regulations ...............2 Access to financing .....................1: Country/Economy Profiles France Key indicators.............1 Tax regulations ...0.............................44 .6....0 Inefficient government bureaucracy...................3...............0......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........................5 8th pillar: Financial market development..........5..................16 ....2 3rd pillar: Macroeconomic environment ....0 2nd pillar: Infrastructure..........4..........................................1 Policy instability............................5..............9 Inadequately educated workforce........ 2009 GDP (PPP) per capita (int'l $).......000 20...........................................3.............0 4th pillar: Health and primary education .........19 ..................... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ....................................................5.42...747 GDP (PPP) as share (%) of world total ........................................3 Government instability/coups ...................9 GDP per capita (US$) ...5.....................15 .....62...................7 Foreign currency regulations..............6 Inflation .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........................5..5............17..............3 GDP (US$ billions).....1 GCI 2008–2009 (out of 134)........7 Poor work ethic in national labor force ..................5 Poor public health ....................................1 Tax rates ........12 .........2..........................................................7 ..675..000 30..1..............000 Advanced economies 40...............000 10...5....................................2 Factor driven Basic requirements.......0 9th pillar: Technological readiness......4 6th pillar: Goods market efficiency.............................................3 10th pillar: Market size..........................................15 ..16 .............5......................16 ..........................................................................5....1..5..19...0........................................8 11th pillar: Business sophistication.......................12 ............................03 France 50....................................................8.......................................8 Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors ..7 1st pillar: Institutions ........................1 5th pillar: Higher education and training .............................4..4 158 2 Transition 2–3 3 Efficiency driven Innovation driven Institutions 7 Innovation 6 Infrastructure 5 Business sophistication Efficiency enhancers.................1 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors...............8 Crime and theft ....................16 ..23.........32 ..................5...........................1 Transition 1–2 1 GCI 2009–2010 (out of 133)..................16 ........................ 1980–2009 Population (millions)...................7 7th pillar: Labor market efficiency .........4.........................................0 Corruption.......................................17 .........1.1..................................... The bars in the figure show the responses weighted according to their rankings................16 ..................................

......02 11.....................................1 Malaria incidence*...................07 11.................................17 Business impact of HIV/AIDS.46 Prevalence of trade barriers ..23 Efficiency of legal framework in challenging regulations .........................................................39 Favoritism in decisions of government officials ......................................................26 Degree of customer orientation ...............62 Burden of customs procedures......02 3.................41 Local availability of research and training services........16 Business impact of rules on FDI .....................................06 Government budget balance* .............30 6..............04 5........................................03 5.....27 Ethical behavior of firms...................................23 Time required to start a business*.............................02 1............................03 2.........18 1............5 Control of international distribution .....................87 National savings rate* ....39 Quality of the educational system....24 5th pillar: Higher education and training 5.........07 8....06 11............67 3rd pillar: Macroeconomic environment 3................................21 Interest rate spread* .........05 6.....08 1...08 2...................................87 Inflation*............29 Judicial independence ........................................................................11 1.........................07 7..................34 8th pillar: Financial market development 8.....................................................................................................04 6.............10 State of cluster development..............16 Intellectual property protection ........29 Tuberculosis incidence* .......27 Trade tariffs*..........................................05 11..........42 Organized crime .............................24 Primary education enrollment rate* .............................. please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter......09 Cooperation in labor-employer relations.10 6.11 Quality of management schools ..........................................14 Life expectancy* ....................................................03 3......................................................35 Venture capital availability.............................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1...............25 Public trust of politicians ...............10 10th pillar: Market size 10.....01 1.............................21 Notes: Ranks of notable competitive advantages are highlighted..51 HIV prevalence* .......05 1........04 11.......122 Efficiency of legal framework in settling disputes .........10 Business impact of malaria .......................02 6................................14 1...30 Nature of competitive advantage .....................8 Willingness to delegate authority....05 7...........13 University-industry collaboration in R&D .......................................05 5...........................................04 3........................12 Quality of air transport infrastructure ............................................................................ An asterisk (*) indicates that data are from sources other than the World Economic Forum........................................6 Ease of access to loans.................................06 Availability of latest technologies .............01 5............................46 Reliability of police services ..................77 Infant mortality* ............................55 Reliance on professional management ................05 12..........51 Internet users* ..03 4........13 6....................................................................12 6..............................................17 Strength of auditing and reporting standards......46 Soundness of banks .......................................116 Country credit rating*................................................06 6............43 Strength of investor protection* .. For further details and explanation....................................................12 1...........................17 Legal rights index* ...................................................07 5.............................08 6.....10 Extent and effect of taxation............................................6 Diversion of public funds...01 11.......01 8.09 4...................................................................................04 4...............01 12..............................48 Availability of scientists and engineers .....108 Total tax rate* ...4 Government debt* ........16 Firm-level technology absorption ......17 Local supplier quality .74 Business costs of crime and violence................................23 FDI and technology transfer...........................03 1..............47 12th pillar: Innovation 12......................................................03 12....................4 Prevalence of foreign ownership ..................................................03 9.28 Business costs of terrorism ..........06 7............44 Gov’t procurement of advanced tech products .....................................17 1....09 1.........................................................................................07 2.............15 Value chain breadth .........................06 2..............65 Pay and productivity .............................20 1.....08 8...................124 Hiring and firing practices................................02 12...............................................16 1..........03 7........................................................................................29 Quality of math and science education....125 Number of procedures required to start a business* ....01 9...........................................................................................01 3......07 Capacity for innovation .....................................................7 Tertiary education enrollment rate*....................................02 9........09 Quality of overall infrastructure .........................04 1..01 7......9 Internet bandwidth* ........................59 2nd pillar: Infrastructure 2........................................05 3...................................04 7.............................31 Protection of minority shareholders’ interests .......................................................................................53 Rigidity of employment* ........... The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 159 ................................................11 6..17 Transparency of government policymaking.31 Irregular payments and bribes............................1 Business impact of tuberculosis ..................................................................03 8.......................................14 6....125 Redundancy costs* ................................................................07 1.................40 Regulation of securities exchanges ......................................22 Effectiveness of anti-monopoly policy ...............07 6..................06 1....03 11..............................................06 12.........................................................05 9.................................................19 Company spending on R&D..........................03 6............06 4........10 11th pillar: Business sophistication 11..............................................16 Financing through local equity market ...............................................21 Agricultural policy costs......................................................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ........02 7.....10 1...6 Quality of primary education ...12 Utility patents per million population*..01 2..........................16 Affordability of financial services.........................32 Restriction on capital flows ..09 Local supplier quantity......................................129 Flexibility of wage determination ...................................................................................41 Female participation in labor force* ..09 Availability of financial services ..................39 9th pillar: Technological readiness 9...............................07 4................08 4......04 8......................................13 1..04 2...........................................26 Broadband Internet subscriptions* .......................04 12.............................05 8............................................15 1.........13 Production process sophistication..01 Domestic market size index*................08 7....30 Brain drain .7 Quality of electricity supply ..............8 Mobile telephone subscriptions* ......8 Quality of scientific research institutions .........................................................01 4...................................................9 Available airline seat kilometers* ...19 1......................................................................................................................05 2.........................................26 2..........02 4.............................9 4th pillar: Health and primary education 4.........................02 Foreign market size index* ......1: Country/Economy Profiles France 7th pillar: Labor market efficiency 7.....................................................................................................27 Efficacy of corporate boards ................06 8...........2 Quality of railroad infrastructure ..........................4 Quality of port infrastructure ........................................10 Fixed telephone lines* ..............................................4 Quality of roads .................................................................................09 6.........................35 Buyer sophistication .....02 8..........21 Property rights......02 5..........................................................06 5.....................5 Internet access in schools..........................................................................48 Burden of government regulation ...................08 11.......13 Extent of marketing...................02 2.......04 9..5 Extent of staff training.............................05 4...............01 6................15 Intensity of local competition .................17 Extent of market dominance.....................................7 10........32 Wastefulness of government spending ..

.......3 Infrastructure Macroeconomic environment 4 3 2 Market size Health and primary education 1 Higher education and training Technological readiness Innovation and sophistication factors .2 10th pillar: Market size.. 2009 GDP (PPP) per capita (int'l $).........3...........3....................................4.......3...................................................5 Foreign currency regulations.........4............64 ....1 Financial market development Goods market efficiency Labor market efficiency The Gambia Factor-driven economies The most problematic factors for doing business Access to financing .........2 Inefficient government bureaucracy.....2..........97 .......3.......9 Factor driven Basic requirements.....00 The Gambia Sub-Saharan Africa 3.....................2 Inflation .................................105 ............................................................................69 ...................7 GDP per capita (US$) ...................9 8th pillar: Financial market development..................87 ................81 ..............................................................................................4.............2 7th pillar: Labor market efficiency ...0 GCI 2008–2009 (out of 134).......................................000 2........76 .......7.............4................................................7 Crime and theft .....2 Corruption.......................................................................90 .................................000 1....16 ..3...................................................................................................0.............37 ........................5 11th pillar: Business sophistication....................................62 .................65 .....................1..............9 Government instability/coups ............3.....5 5th pillar: Higher education and training .....3.......8.......................103 .................................1..........66 ........7.7.................................9 12th pillar: Innovation..3...0 Tax rates ...............................117 ............... 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...........0 9th pillar: Technological readiness.......1: Country/Economy Profiles Gambia..............4.....................................7 GDP (US$ billions)..8 2nd pillar: Infrastructure..................................................4 0 5 10 15 20 25 Percent of responses Note: From a list of 15 factors.....3.......... The bars in the figure show the responses weighted according to their rankings.........................................9 Poor work ethic in national labor force ..16...............................8 3rd pillar: Macroeconomic environment ..............................90 ....2 160 Transition 2–3 2 Efficiency driven 3 Innovation driven Institutions 7 Innovation 6 5 Business sophistication Efficiency enhancers.9 Poor public health ...........2...0.................................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 30 ....0..8 Restrictive labor regulations ........25....3......................2 1st pillar: Institutions ..............................3 Inadequate supply of infrastructure .....................................0 Policy instability..........1 Tax regulations ...4.........1..4......9 Transition 1–2 1 GCI 2009–2010 (out of 133)................ 1980–2009 Population (millions)..................... The Key indicators.9 Inadequately educated workforce..3...............138 ...................................................................1.....................440 GDP (PPP) as share (%) of world total ................................0................5 6th pillar: Goods market efficiency.........124 ..................................000 0 Global Competitiveness Index Rank (out of 139) Stage of development Score (1–7) GCI 2010–2011..5.............................8 4th pillar: Health and primary education .....................4.........

.................07 1.04 3.....07 5..........08 4......................09 Quality of overall infrastructure ...................126 Government debt* ............................................01 1.............130 5th pillar: Higher education and training 5......................................66 Internet users* ........136 11th pillar: Business sophistication 11.....60 Total tax rate* .........33 Quality of math and science education...................67 Hiring and firing practices.............................. The Global Competitiveness Report 2010-2011 © 2010 World Economic Forum 161 ..............................................................................................................................78 Local availability of research and training services............10 6...02 7...66 Control of international distribution ..... The 7th pillar: Labor market efficiency 7...............09 1........................................................20 1...............03 3...............................30 Business costs of terrorism ...........................22 Strength of investor protection* ......................................................................40 Public trust of politicians ..... For further details and explanation.......60 Venture capital availability..........05 4....78 Company spending on R&D............03 11............................38 Protection of minority shareholders’ interests .................................1: Country/Economy Profiles Gambia............90 Interest rate spread* ............................................103 Infant mortality* .....................129 Prevalence of foreign ownership ............................08 RANK/139 6th pillar: Goods market efficiency Secondary education enrollment rate* ...........114 Inflation*.09 4...................18 Wastefulness of government spending ...........................................06 1..........04 8.......04 6.............................02 3...52 Quality of roads ................19 1.......................................3 Prevalence of trade barriers ....................14 1........................................................04 11.32 6........115 Business impact of HIV/AIDS.....50 Favoritism in decisions of government officials .................43 Strength of auditing and reporting standards....................38 Ethical behavior of firms............06 5........................90 HIV prevalence* ....63 Production process sophistication...................................138 10.......04 9...................03 12...........................114 Tertiary education enrollment rate*...50 Trade tariffs*................................61 Available airline seat kilometers* .......03 7...............................91 Ease of access to loans.................02 9......06 7.................07 11......................................................................................................................................................124 Business impact of tuberculosis .............08 1..................03 2.02 11.........................................................The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1............................................................................................................................08 8.......................................42 Extent and effect of taxation.128 Utility patents per million population*...................06 6.58 State of cluster development................................................74 Nature of competitive advantage ...................01 5..............................n/a Quality of port infrastructure ...............................................................................51 Organized crime ..........................................72 Extent of staff training..........01 2........................................05 2.........46 Primary education enrollment rate* ..02 4.....................................................07 7........01 7.........................................112 Mobile telephone subscriptions* ..................................108 Extent of marketing....................................116 Malaria incidence*..........................01 6..............45 Female participation in labor force* ...................................02 12......................................03 8..............................45 Buyer sophistication ......................................136 Number of procedures required to start a business* .........................04 12.............................................................54 Judicial independence ....73 Restriction on capital flows .................................133 2nd pillar: Infrastructure 2.......... please refer to the section “How to Read the Country/Economy Profiles” at the beginning of this chapter.............05 6....................42 Rigidity of employment* ......................................08 11..........04 7..47 Reliability of police services ..........................118 Quality of primary education ......05 11..........06 Government budget balance* ................75 9th pillar: Technological readiness 9............................01 9.................................14 6.....24 Burden of customs procedures..............................06 8.11 6.........................................................................85 3rd pillar: Macroeconomic environment 3...95 Willingness to delegate authority.........................20 Irregular payments and bribes.....................01 Domestic market size index*......................................................69 FDI and technology transfer...................07 6.........03 5..................101 Tuberculosis incidence* .....05 3..06 12............................41 Efficacy of corporate boards ..............10 Burden of government regulation ......................03 9...127 Life expectancy* .....................................................................55 Value chain breadth ..............................18 1............................07 Capacity for innovation .................09 Availability of financial services ....65 Local supplier quality ......................04 2.........15 Intensity of local competition .....02 8................53 Internet access in schools.................................................06 2.................04 4................................................13 1.................................................................05 8........09 Cooperation in labor-employer relations.........05 5.................63 Quality of scientific research institutions ......................................................................01 11...36 Transparency of government policymaking.................71 Business costs of crime and violence.....................................................................10 Degree of customer orientation ..........................................................................................................................86 University-industry collaboration in R&D .........35 Effectiveness of anti-monopoly policy ....................................05 1.....90 Notes: Ranks of notable competitive advantages are highlighted...............................................13 6.....90 Extent of market dominance.......................................61 Financing through local equity market ............................................................................................................................................................80 Legal rights index* ..........45 8th pillar: Financial market development 8...............................................................67 Fixed telephone lines* .....................5 Efficiency of legal framework in settling disputes .................................................08 6.....................................02 5......................05 12....07 2.....07 8.....................01 8..............25 Efficiency of legal framework in challenging regulations ..02 2...........................08 2....................36 Reliance on professional management .................63 Gov’t procurement of advanced tech products ...............................76 Firm-level technology absorption .....75 Regulation of securities exchanges .................06 Availability of latest technologies ...11 1.......65 Soundness of banks ..............................12 1................134 4th pillar: Health and primary education 4........35 Diversion of public funds..02 Foreign market size index* .......................................108 Broadband Internet subscriptions* ....02 6..............................................132 Internet bandwidth* .................................................................48 Pay and productivity ................................................................................15 1........................................27 Flexibility of wage determination ..............73 Time required to start a business*.............35 12th pillar: Innovation 12.......05 7..............17 1.........................01 12...23 Availability of scientists and engineers ...02 1.......56 Country credit rating*.....86 Agricultural policy costs...................................86 Quality of management schools ..21 Property rights.......06 11.......27 Brain drain .............89 2...............51 Quality of railroad infrastructure ..............................................................................40 Quality of air transport infrastructure .04 1......05 9..........................72 Affordability of financial services....................03 1.........................................................................................04 5...................................................128 Quality of electricity supply ......................................03 6.09 6........113 10th pillar: Market size 10............08 7...................................................... An asterisk (*) indicates that data are from sources other than the World Economic Forum........06 4....138 Quality of the educational system........................16 1...............................10 Business impact of malaria ...........01 3...12 6..........................01 4....28 Redundancy costs* .................................................07 4.....10 1.31 Business impact of rules on FDI .76 National savings rate* ...39 Intellectual property protection ................................09 Local supplier quantity..............03 4...........................................

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

..........................................................................................109 Regulation of securities exchanges ...................................04 7....................03 11............................................................................................................98 Transparency of government policymaking....02 7.44 Burden of customs procedures...........08 4........07 7.......................................................116 Internet access in schools.....77 10th pillar: Market size 10............03 4..............................13 6...........n/a Country credit rating*..............The Global Competitiveness Index in detail INDICATOR RANK/139 INDICATOR 1st pillar: Institutions 1........06 1............07 8.............................02 12......................................................................09 Availability of financial services ................08 1...........