World economy 3

Competitiveness between societies

Davos report
IMD World competitive report
Hard factors to measure: How is the government, the people, the environment for business.

Global competitive index. Indicators (Photo)

Basic requirements: Institutions, Infrastructure, macroeconomic environment, education,
health
Efficiency enhancers: Higher education, global market efficiency, Labour market efficiency,
financial market development, Technological readiness, market size
Innovation and sophistication: Business sophistication, Innovation

IMD Index
Economic performance: domestic economy, employment
Government Efficiency: public finance, fiscal policy, institutional framework, business
legislation, societal framework
Business Efficacy: productivity and efficiency, labour market, management practices,
attitudes and values
Infrastructure : basic infrastructure, technologique infrastructure,

How can a country be competitive with other countries?

Industrial policy: Sector in the 80s achieving the economic and non-economic goals of a
country by intervening in a resource allocation. Intention of government on focus in
economic development. Re-allocates the money and put in the sectors that needs it
Do advanced economies need an industrial policy and state environment?
High value-added industries, competing for good jobs, competing for high technology sectors