THE GLOBAL COMPETITIVENESS

2019

Lina Rosario González Garzón

Yuly Tatiana Hernández Rozo
Derly Lorena Lara Romero
María Fernanda Lasso Rosero

Universidad Colegio Mayor De Cundinamarca

Faculty of Administration and Economics
Business Administration - AEC
International Economics
Bogotá D.C.
2023
THE GLOBAL COMPETITIVENESS 2019 3
COLOMBIA 3
SELECTED CONTEXTUAL INDICATORS 4
SOCIAL AND ENVIRONMENTAL PERFORMANCE 4
CONCLUSIONS 11
BIBLIOGRAPHY 13
 THE GLOBAL COMPETITIVENESS 2019
COLOMBIA

According to the Global Competitiveness Index 4.0 2019 edition, Colombia is in

57th place out of 141 countries, where it presented the following data (from 0 to 100

points, where 0 is the lowest and 100 is the highest):

- In the overall score, it obtained 63 points out of 100

- In the enabling environment it obtained the following data: In institutions it

scored 49 points, in infrastructure it scored 64 points, in ICT adoption it scored 50

points and in macroeconomic stability it scored 90 points.

- In human capital, the following figures were obtained: 95 points in health

and 60 points in skills.

- In the market it obtained the following data: in the product market it

obtained 53 points, in the labor market it obtained 59 points, in the financial

system it obtained 65 points and in the size of the market it presented 67 points.

- In the innovation ecosystem, it presented the following data: in business

dynamism it obtained 64 points and in innovation capacity or innovation capacity it

obtained 36 points.
 SELECTED CONTEXTUAL INDICATORS

Colombia has 49.9 million inhabitants, GDP per capita is US$6,684.4,

10-year average annual GDP growth is 3.3%, participation in world GDP is

0.55% and the 5-year average FDI inflow is 4.2%.

SOCIAL AND ENVIRONMENTAL PERFORMANCE

In the environmental footprint presented 2.2, the share of renewable energy

consumption is 23.6%, the unemployment rate is 9.1, the overall Gender Gap index

is 0.7 and the income Gini is 49.7.

In the following, we will see the different pillars on which this study is based,

taking into account that the rank is the position occupied among the 141 countries.

-First pillar: institutions had a score of 49.3 and a rank of 92 out of 141. In

security it had a score of 45.1 with a rank of 127 out of 141.Incidence of terrorism (0

very high 100 no incidence) had a value of 85.6, a score of 85.6 (increased) and a

rank of 128 out of 141. Reliability of police services (1 low 7 high) had a value of 3.6
had a score of 43.3 decreased and a rank of 107 out of 141.

In social capital it had a score of 50.8 and a rank of 69 out of 141. Social

capital had a value of 50.8, a score of 50.8 (decreased) and a rank of 64 out of 141.

Checks and balances had a score of 42.9 and a rank of 99 out of 141. In

budget transparency it had a value of 50 (where zero is low and 100 is high), had

a score of 50.0 (increased) and a rank of 45 out of 141.

In effectiveness of the legal framework for challenging regulations it had a value of 3.0

(1 low 7 high) it had a score of 33.0 (decreased) and a rank of 97 out of 141.

42.8 (where 0 is better and 100 is worse), had a score of 57.2 (increased) and a rank

of 106 out of 141.

The burden of government regulation had a value of 2.7 (1 low 7 high), a

score of 28.0 (increased) and a rank of 123 out of 141. The effectiveness of the

legal framework in resolving disputes obtained a value of 3.0 (1 low 7 high), had a

score of 33.7 and a rank of 108 out of 141. In e-participation obtained a value of

0.92 (where 0 is low and one is high) obtained a score of 92.1 (decreased) and a

rank of 23 out of 141.

Transparency had a score of 36.0 and a range of 85 out of 141. In

incidence of corruption it had a value of 36.0 (where zero is low and 100 is

high), it had a scoreof 36.0 decreased and a range of 85 out of 141.

Property rights had a value of 4.1 (1 low 7 high), a score of 51.3

(decreased), and a rank of 91 out of 141. Intellectual property protection had a

value of 3.8 (1 low 7 high), a score of 47.0, and a rank of 92 out of 141.
 Corporate governance had a score of 72.0 and a rank of 22 out of 141. The

strength of audit and accounting standards had a value of 5.0 (1 low 7 high), a score

of 66.0 and a rank of 54 out of 141.

Shareholder governance had a value of 7.0 (where zero is low 10 is high), a score of

7.0 and a rank of 28 out of 141.

Future government orientation had a score of 44.7 and a range of 110 out of

110. 141. Government ensuring political stability had a value of 3.4 (1 low 7 high), a

score of 40.2 and a rank of 101 out of 141. Government responsiveness to change

had a value of 3.3 (1 low 7 high), a score of 38.4 and a rank of 95 out of 141. The

adaptability of the legal framework to digital business models had a value of 3.5 (1

low 7 high), a score of 41.0 and a rank of 84 out of 141. The long-term vision of

government had a value of 3.6 (1 low 7 high), a score of 43.0 and a rank of 84 out of

141.

141. Energy efficiency regulation had a value of 37.5, a score of 37.5, and a rank of

69 out of 141. Renewable energy regulation had a value of 43.6, a score of 43.6, and

a rank of 80 out of 141.

- Second pillar infrastructure had a score of 64.3 and a rank of 81 out of 141.

Transportation infrastructure had a score of 43.8 and a rank of 92 out of 141.Road

infrastructure quality had a value of 3.4 (1 low 7 high), a score of 39.7 (increased) and

a rank of 104 out of 141. Rail density had a value of 1.9, a score of 4.8 (decreased)

and a rank of 89 out of 141. Rail service efficiency had a value of 1.7 (1 low 7 high), a

score of 12.2 and a rank of 99 out of 141. Airport connectivity score had a value of

144,423.4; a score of 68.7 (increased) and a rank of 31 out of 141. Air transport

service efficiency had a value of 4.5 (1 low 7 high), a score of 57.6 (increased) and a
rank of 78 out of 141.

Port services efficiency had a value of 4.1 (1 low 7 high), a score of 51.5 (decreased)

and a rank of 72 out of 141.

Infrastructure utilities had a score of 84.9 and a range of 72 out of 72.

141. Access to electricity had a value of 97.0 percent of the population, a score of

97.0 (increased) and a rank of 91 out of 141. Quality of electricity supply had a value

of 9.1 percent of the population, a score of 94.7 (decreased) and a rank of 51 out of

141. Exposure to unsafe drinking water had a value of 19.5 percent of the population,

a score of 82.2 (increased) and a rank of 79 out of 141. Reliability of water supply had

a value of 4.9 (1 low 7 high), a score of 65.6 and a rank of 66 out of 141.

- Third pillar: Adoption of ICT: scored 49.9 and a range of 87 out of 87.

141. Mobile telephone subscribers (per 100 inhabitants) had a value of 129.9, a

score of 100.0 and a range of 43 out of 141. Mobile broadband subscribers (per 100

inhabitants) had a value of 52.3 and a range of 101 out of 141. Fixed broadband

Internet subscribers (per 100 inhabitants) had a value of 13.4, a score of 26.9 and a

range of 64 out of 141. Internet users had a value of 62.3% of the adult population, a

score of 62.3 (increased) and a rank of 80 out of 141.

- Fourth pillar: Macroeconomic Stability: had a score of 90.0 and a range of

43 out of 141. Inflation had a value of 3.8, a score of 100.0 and a range of 1 out of

141.

141. Debt dynamics had a value of 80.0, a score of 80.0 (increasing) and a range of

43 out of 141.

- Fifth pillar: Health had a score of 95.0 and a range of 16 out of 141. Years of
life expectancy in good health had a value of 70.4, a score of 95.0 (increasing) and a

range of 15 out of 141.

- Pillar 6: Skills had a score of 6 0.5 and a range of 80 out of 141.

Current workforce had a score of 53.4 and a range of 82 out of 141.

141. The skills of the current workforce had a value of 51.7 and a rank of 69 out of

141. The degree of workforce training had a value of 3.7 (1 low 7 high), a score of

44.3 (increased), and a rank of 101 out of 141. Graduate skills had a value of 4.3 (1

low 7 high), a score of 54.6 (increased) and a rank of 52 out of 141. Digital skills

among the workforce had a value of 3.8 (1 low 7 high), a score of 46.6 (increased)

and a rank of 94 out of 141.

4.3 (1 low 7 high), a score of 55.1 (increased) and a rank of 59 out of 141.

Future labor force had a score of 67.6 and a range of 78 out of 141. Years of

school life expectancy had a value of 14.6, a score of 81.1 (down) and a range of

61 out of 141.

Critical thinking in teaching had a value of 3.5 (1 low 7 high), a score

of 42.1 (decreased), and a range of 65 out of 141.

teacher in primary education had a value of 23.6, a score of 66.0 (decreased) and a

range of 88 out of 141.

- The distorting effect of taxes and subsidies on competition had a value of 3.0

(1 low 7 high), a score of 33.8 (decreased) and a rank of 126 out of 141. The degree of

market dominance had a value of 3.3 (1 low 7 high), a score of 39.0 (decreased) and a

rank of 126 out of 141.

(decreased) and a range of 102 out of 141.

4.9 (1 low 7 high), a score of 64.3 (decreased) and a rank of 78 out of 141.

Trade openness had a score of 59.7 and a range of 61 out of 141. The

prevalence of non-tariff barriers had a value of 3.9 (1 low 7 high), a score of Trade tariffs

had a value of 5.90, a score of 60.7, and a rank of 77 out of 144. Tariff complexity had

a value of 6.4 (1 low 7 high), a score of 90.1 (increased), and a rank of 40 out of 141.

-Eighth pillar: Labor market had a score of 59.2 and a range of 73 out of 141.

Flexibility had a value of 55.0 and a rank of 88 out of 141. Layoff costs (weeks of

salary) had a value of 16.7, a score of 73.5 (increased), and a rank of 76 out of 141.2

(1 low 7 high), a score of 36.7 (increased) and a rank of 117 out of 141. Labor

relations cooperation had a value of 4.5 (1 low 7 high), a score of 58.1 (increased)

and a rank of 66 out of 141. 5.0 (1 low 7 high), a score of 66.7 (down) and a rank of

67 out of 141.

Labor market activities had a value of 2.9 (1 low 7 high), a score of 32.2 (increased)

and a ranking of 90 out of 141. Ease of hiring foreign labor had a value of 4.1 (1 low

7 high), a score of51.8 (increased) and a rank of 75 out of 141. Internal labor mobility

had a value of 5.0 (1 low 7 high), a score of 66.0 (increased) and a rank of 31 out of

141.

Meritocracy and incentivization had a score of 63.3 and a range of 66 out of

141. Pay and productivity had a value of 3.6 (1 low 7 high), a score of 44.0 and a

rank of 94 out of 141. The ratio of female wage workers to male workers was 0.75%,

the score was 68.4 and had a rank of 64 out of 141.

- Pillar 9: Financial system scored 64.6 and a range of 54 out of 54.

141. Domestic credit to the private sector as a percentage of GDP had a value of
47.8, a score of 50.3 (decreased) and a range of 75 out of 141.Venture capital

availability had a value of 3.2 (1 low 7 high), a score of 35.9 (increased) and a rank

of 70 out of 141. Market capitalization as a percentage of GDP was 34.9, had a

score of 34.9 (decreased) and a rank of 55 out of 141.

The ratio of the company's share of GDP was 2.4, with a score of 40.3 (increased) and

a range of 50 out of 141.

Bank soundness had a value of 5.8 (1 low 7 high), a score of 79.7 (increased)

and a rank of 27 out of 141. Nonperforming loans (percent of total gross loans) had a

value of 4.2, a score of 92.Banks' regulatory capital ratio (percentage of total

risk-weighted assets) had a value of 17.7, a score of 100 (increased) and a rank of 60

out of 141.

- Tenth pillar: Market size had a score of 66.7 and a range of 37 out of 37. 141.

Gross domestic product PPP (in millions of dollars) had a value of 662 and a range of

32 out of 141. Imports of goods and services (as a percentage of GDP) had a value

of 19.3 and had a range of 132 out of 141.

- Pillar Eleven: Business dynamism had a score of 6 4.2 and a rank of 49 out

of 141. Administrative requirements had a score of 79.3 and a rank of 40 out of 141.

The cost of starting a business (percentage of GNI per capita) had a value of 14.0, a

score of 93.0 and a rank of 92 out of 141.0, a score of 89.4 (increasing) and a Rank

of 65 out of 141. Insolvency recovery rate (in cents per dollar) had a value of 67.2, a

score of 72.3 (decreasing) and a Rank of 29 out of 141. Insolvency regulatory

framework had a value of 10.0 (0 low 16 high), a score of 62.5 (increasing) and a

Rank of 65 out of 141.

 Entrepreneurial culture had a score of 49.1 and a range of 80 out of 141.

Attitudes towards entrepreneurialrisk had a value of 3.9 (1 low 7 high), a score of 3.9

(1 low 7 high), a score of 3.5 (1 low 7 high), a range of 80 out of 141.

Willingness to delegate authority had a value of 4.4 (1 low 7 high), a score of 56.7

(increasing), and a rank of 67 out of 141.9 (1 low 7 high), a score of 47.9 (increasing)

and a rank of 87 out of 141. Companies adopting disruptive ideas had a value of 3.6

(1 low 7 high), a score of 43.7 (increasing) and a rank of 72 out of 141.

- Pillar 12: Innovativeness had a score of 36.4 and a rank of 77 out of 141.

Interaction and diversity had a score of 36.9 and a rank of 87 out of 141.International

conventions (per million population) had a value of 0.16, a score of 4.5 (increasing)

and a rank of 73 out of 141. Multi-stakeholder collaboration had a value of 3.7 (1 low

7 high), a score of 45.4 and a rank of 70 out of 141.

Research and development had a value of 28.2 and a rank of 61 out of 141.

Scientific publications had a value of 237.3, a score of 81.1 (increasing) and a rank of

47 out of 141.Expenditures on research plus development as a percentage of GDP

had a value of 0.2, a score of 8.1 (increased), and a rank of 88 out of 141.

research had a value of 0.05 (zero under 100 high), a score of 12.8 (increased) and a

range of 42 out of 141.

Marketing had a score of 52.1 and a rank of 81 out of 141. Buyer

sophistication had a value of 3.3 (1 under 7 high), a score of 38.5 (increased) and a

rank of 89 out of 141.

CONCLUSIONS

In Colombia in 2019 compared to 2018, some indices tended to rise, others

remained the same and many fell. In the case of those that went up we have

organized crime, incidence of terrorism, burden of government regulation, quality of

territorial administration, road connectivity, quality of road infrastructure, efficiency of

air services, access to electricity, digital skills among active population, complexity in

tariffs, active labor market policies, workers' rights, SME financing, soundness of

banks, growth of innovative companies, among others. Some indices that remained

the same were: costs of starting a business, credit gap, energy efficiency regulation,

renewable energy regulation, intellectual property protection, homicide rate, among

others. Some of the indices that decreased were: property rights, reliability of police

services, incidence of corruption, efficiency of port services, quality of electricity

supply, average years of schooling, quality of vocational training, critical thinking in

education, degree of market dominance, the competition in services, flexibility in wage

determination, domestic credit to the private sector, stock market capitalization,

among others.

Analyzing the data, we realize that in Colombia there has been a decrease in

education and future training, as well as in the market of products in the national

competition and the capacity for innovation in interaction and diversity, we consider

that these are an extremely important part for the development of the country and

that they are decreasing is worrying.

Transport and utilities infrastructure indexes have increased, as have ICT

adoption, the labor market and most of the financial system; business culture,

research and development, and marketing have also increased.

 BIBLIOGRAPHY

Schwab, K. (2019) The Global Competitiveness Re port 2019. World Economic

Forum.

https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf