World

Economic Forum:
Global Competitiveness Report
Knowledge Management
Knowledge Based Economy
Enkhtuul Sharavdemberel
2020.12.01

The Global Competitive Report
•  Produced by the World
Economic Forum.
•  Based on the Global
Competitiveness Index (GCI).
•  Captures information on the micro
and macro economic foundations
of national competitiveness.
 The Global Competitive Report
• Examines the many factors that enable national economies to
achieve sustained economic growth and long term prosperity.

• Provides business leaders and policymakers with benchmark

tools to identify obstacles to improved competitiveness.

• The idea is to stimulate discussion on strategies to improve

them.
Competitiveness

“ The set of institutions,

policies, and factors that
determine the level of
productivity of a country.”
Effect of Productivity

Higher
Income

Productivity

The level of productivity, in turn, sets the level of

prosperity that can be earned by an economy.
 Implied Framework
Firms compete National
not nations.
Competitiveness
Government largely
responsible for the Firm
raw conditions. Competitiveness

Enabling
Environment
 Why is it important?
Competitiveness is required for economic progress
More competitive economies grow faster
Classification
 The Results

1.  Ranking is out of total participants.

2.  A score from 1 – 7 - weighted average score from

the 12 pillars of competitiveness.

3.  Problematic factors for doing business.

Report Highlights
GCI 2017/18
Country Analysis
 Trinidad and Tobago

• Economy in transition Stage 2-3

• GDP (US$ billions) $21.6
• Per Capita Income $15,342.2
2015 $18,085.8
2016 $21,311.0

(Source: IMF World Economic Outlook Database)

Weighs

2017 2016

Basic Requirements (Pillars 1 – 4) 24.1% 20%

Efficiency Enhancers (Pillars 5 – 10) 50.0% 50.0%

Innovation and Business Sophistication 25.9% 30%

(Pillars 11 & 12)
Overall Rank
 Web of Pillars

Trinidad and
Tobago is on par
or better in 10 of
the 12 pillars
when compared to
other countries in
Latin America and
the Caribbean.
Web of Pillars
2017 – 2016 – 2015 –
83/4.1 94/3.9 89/3.9
 Sub-Indices & 2017 -2018 2016-2 2015-2016
Pillars 017
Rank Score Rank Sc Rank Scor
ore e
Basic Requirements 83 4.4 82 4.4 62 4.6
1st pillar: Institutions 97 3.5 107 3.4 108 3.4
2nd pillar: Infrastructure 59 4.3 54 4.3 51 4.5
3rd pillar: Macroeconomic 112 3.8 114 3.9 54 4.9
environment
4th pillar: Health and primary 60 5.9 61 5.9 60 5.9
education
Efficiency Enhancers 63 4.2 76 4.0 78 3.9
5th pillar: Higher education 33 5.1 74 4.3 73 4.3
and training
6th pillar: Goods market 95 4.1 103 4.0 104 4.1
efficiency
7th pillar: Labor market 85 4.0 89 4.0 96 4.0
efficiency
8th pillar: Financial market 51 4.2 61 4.1 56 4.0
development
9th pillar: Technological 49 4.9 50 4.7 59 4.2
readiness
10th pillar: Market size 94 3.2 99 3.0 102 3.0
Innovation and 80 3.5 83 3.5 81 3.5
Getting from 94 to 83

83
(2017/18)
Pillar 5 - Higher
Education and
Training
8
9
Change in
weights
94
(2016/17)
Macroeconomic 2017-20 2016-201 2015-201 2014-201
Environment 18 7 6 5
Valu Ran Value Rank Value Rank Value Rank
e k
Overall 3.8 112 3.9 114 4.9 54 38 5.4
Government surplus/ -14 132 -9.5 128 -4 92 -2.3 58
deficit (% GDP)
National savings rate (% 8.8 123 8.0 128 22.1 58 24.2 46
GDP)
Inflation (annual % 3.4 59 4.7 96 7.0 118 5.2 93
change)
Government debt (% 61.0 90 5.1 74 37.6 57 30.6 37
GDP)
 Institutions 2017-2018 2016-2017 2015-201 2014-2
6 015
Rank Value Rank Value Ran Valu Ran Val
k e k ue
Overall 97 3.5 107 4.3 108 3.4 3.5 95
1.01 Property rights 72 4.3 87 4.1 4 85 4.1 69
1.02 Intellectual property protection 88 3.7 98 3.6 3.4 99 3.2 94
1.03 Diversion of public funds 102 2.8 114 2.6 2.4 124 2.5 114
1.04 Public trust of politicians 111 2.1 118 1.9 1.8 128 2 123
1.05 Irregular Payment & Bribes 95 3.3 102 3.3 3.3 104 3.3 106
1.06 Judicial independence 47 4.5 55 4.2 4.3 51 4.6 41
1.07 Favoritism in decisions of 120 2.2 134 1.9 1.9 137 2.1 137
government officials
1.08 Wastefulness of government 91 2.7 107 2.5 2.5 112 2.5 114
spending
1.09 Burden of government regulation 73 3.3 87 3.2 3.3 77 3.5 70
1.10 Efficiency of legal framework in 104 3.0 106 3.0 3.2 97 3.5 83
settling disputes
1.11 Efficiency of legal framework in 93 2.9 95 3.0 3.1 94 3.1 90
challenging regs
1.12 Transparency of government 72 4.0 80 4.0 3.8 90 3.7 98
policymaking
1.13 Business costs of terrorism 78 5.0 74 5.2 5.3 75 5.4 63
1.14 Business costs of crime and 129 2.7 132 2.5 2.4 136 2.3 141
violence
1.14 Organized crime 114 3.9 116 3.8 3.9 117 4 112
1.16 Reliability of police services 124 2.9 126 2.8 3.1 116 3.1 117
1.17 Ethical behavior of firms 118 3.2 123 3.1 3.2 125 3.4 125
1.18 Strength of auditing and reporting 70 4.6 83 4.3 4.3 91 4.3 87
standards
1.19 Efficacy of corporate boards 84 4.6 90 4.7 4.3 101 4.1 110
1.20 Protection of minority 95 3.8 111 3.6 3.4 118 3.5 116
shareholders’ interests
Innovation
 Caribbean Comparison
Trinidad and Jamaic
Tobago a
Caribbean Comparison – Problematic Factors

Trinidad and Tobago

Jamaica
 Closing Statements

•  To tackle the fundamental issues of our country requires an

enabling
environment.

•  This requires (inter alia) a reliable and predictable system –

processes, institutional functions, data and information.

•  Competitiveness is the end result of a system that works to

enhance
productivity.