BUSINESS ENVIORNMENT

Strategies and its impact

Presented by:Nikita Pavitran Nivedita Mudaliar Reejo Samuel Sonal Tiwari

Introduction
The World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape the global, regional and industry agendas.  Formation in : 1971, as European Management Forum 1987, name changed to World Economic Forum  Headquarters- Geneva, Switzerland, with offices in New York and Beijing.  Type- Non-profit organization  Region Served- Worldwide

World Economic Forum Communities Member Communities

Strategic Partners Industry Partners Members Global Growth Companies Governments, International Organizations Representatives of Civil Society Thought Leaders (Religion, Culture, Science, Academia) Technology Pioneers Media Women Leaders Young Global Leaders Social Entrepreneurs

Objective of the Organization :improving the state of the world.

Areas of Engagement Strengthening Economies Global Trade & Investment Regime Poverty & International Aid Labor & Migration Economic Imbalances & Systemic Financial Risk Intellectual Property Regime & Innovation

Enhancing Security Conflicts Illicit Trade Pandemics & Infectious Diseases Terrorism & Weapons of Mass Destruction Information Infrastructure & Data Security New Technologies

Other Areas of Engagement Promoting Sustainability Climate Change / Low Carbon Economy Resource Security (Food, Water, Energy, Air) Ecosystem & Biodiversity Loss Natural Disaster Global Governance International Legal System Values

The World Economic Forum Initiatives

Beyond its Summit activities, the World Economic Forum runs a number of initiatives including: The Global Health Initiative The Global Education Initiative Energy Poverty Action Climate Change The Water Initiative Financing for Development The Global Risk Network Scenario Planning The Global Competitiveness Network

MAJOR CHALLENGES OR PROBLEMS SEEN IN 2009 RELATED TO OPEN TRADE The deep drop in global trade between 2008 and 2009 represented a realworld stress test for the global trading system. Some of them are as follows: Prices of widely traded primary commodities and volume of trade was affected by the drop in demand, which the WTO reports fell by 12.2 percent in 2009. Decline in imports of some countries. Drop in goods trade in comparison to service trade. Entry of new capacity coincided with savage cuts in trade volumes. Most critical issue that was hampering the open trade around the globe was the tariff. Government of different countries and their policies were not much resourceful and effective in promoting global trade.

Initiatives taken to resolve the problems in 2010

The Global Redesign process is integrating the Forums diverse communities through a series of meetings, reports and activities structured to promote integrated thinking and develop proposals to improve structures of international cooperation and prompting open trade in a wide range of areas. Nine themes have been defined for the Global Redesign Initiative:1. 2. 3. 4. 5. 6. 7. 8. 9. Creating a Values Framework Building Sustained Economic Growth Strengthening the International Monetary and Financial System Creating Employment, Eradicating Poverty and Improving Social Welfare Managing and Mitigating Global Risks Ensuring Health for All Enhancing Global Security Ensuring Sustainability Building Effective Institutions in an Empowered Society

40th World Economic Forum Annual Meeting

 Held on- On 31st January 2010 in Davos  Points Discussed: The meeting was closed after discussing a wide range of global issues like- Discussions on post-crisis economic recovery, the improvement of financial regulation and climate change  Most participants believed that the recovery was being led by fast growing emerging markets like China and India, while the United States and European nations were falling behind.

STRATEGIES DEVISED BY FORUM IN 2010 FOR PROMOTING OPEN TRADE  Beside meetings, the foundation produces a series of research reports and engages its members in sector specific initiatives.  In the year, 2010 World Economic Forum produced few research reports which entail of strategic tools that can help to identify the global market and hence promote open trade. The research reports produced are as follows: Global Enabling Trade Report 2010-11  Global Competitiveness Report 2010-11

Global Enabling Trade Report 2010-11

The Global Enabling Trade Report is motivated by the view that, in addition to trade policy, trade is enabled by a broader set of factors. For this World Economic Forum (WEF) has devised a strategic tool called Enabling Trade Index (ETI). The ETI measures the extent to which individual economies have developed institutions, policies, and services facilitating the free flow of goods over borders and to destination. The structure of the Index reflects the main enablers of trade, breaking them into four overall issue areas, captured in the subindexes: 1. The market access sub-index measures the extent to which the policy framework of the country welcomes foreign goods into the economy and enables access to foreign markets for its exporters.

Continued 2. The border administration sub-index assesses the extent to which the administration at the border facilitates the entry and exit of goods. 3. The transport and communications infrastructure sub-index takes into account whether the country has in place the transport and communications infrastructure necessary to facilitate the movement of goods within the economy and across the border. 4. The business environment sub-index looks at the quality of governance as well as at the over-arching regulatory and security environment. Country coverage The overall country coverage has increased from 121 to 125 economies in this years ETI. Five new countries were added to the Index, as relevant data became available: Botswana, Georgia, Iceland, Montenegro, and Serbia. Unfortunately, Moldova could not be covered this year, as data from the Survey were not available.

 Each of these four sub-indexes is composed in turn of a number of pillars of enabling trade, of which there are nine in all. These are:

*India is ranked on 84th position among 125 countries.

Impact of Enabled Trade Index (ETI)

Singapore continues to lead the ETI rankings. As a small economy, Singapore has a very open trade policy and exporters face only a few barriers in target markets. Greatest improvements in border administration, were recorded by Cyprus (up 18 places, from 47th to 29th) because of an improvement in the efficiency of its import-export procedures. Ecuador (up 15 places, from 107th to 92nd), because of more efficient customs administration.

Continued

In the area of transportation and communication, the greatest improvements in rankings took place in Tajikistan, Kazakhstan, and Madagascar. And there have been notable improvements in the business environment in Poland, Macedonia, and Lesotho.

Global Competitiveness Report 2010-11

The Global Competitiveness Report: launched in 1979 covering 16 countries; it has since expanded its coverage to 133 countries.

Global Competitiveness Index Definition-The set of institutions, policies, and factors that determine the level of productivity of an economy.

Goal: to provide a benchmarking tool for policy-makers and business leaders

The Global Competitiveness Index Framework

BASIC REQUIREMENTS

1. 2. 3. 4.

Institutions Infrastructure Macroeconomic stability Health and primary education

Key for

factor-driven
economies

EFFICIENCY ENHANCERS

5. 6. 7. 8. 9. 10.

Higher education and training Goods market efficiency Labor market efficiency Financial market sophistication Technological Readiness Market size

Key for

efficiency-driven
economies

INNOVATION & SOPHISTICATIONS FACTORS

Key for

11. 12.

Business sophistication Innovation

innovation-driven
economies

Top 11 countries in GCI Ranking

*India is on 51st ranking among 135 countries

Impact of Global Competitive Index(GCI)

Switzerland retains its 1st place position, characterized by an excellent capacity for innovation and a very sophisticated business culture, ranked 4th for its business sophistication and 2nd for its innovation capacity. Sweden has moved ahead of Singapore and the United States to claim 2nd position this year. The country benefits from the worlds most transparent and efficient public institutions, 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. Singapore maintains its position at 3rd place, still the highest-ranked country from Asia. The countrys institutions continue to be assessed as the best in the world, ranked 1st for both the lack of corruption in the country and government efficiency

Analysis of India on the basis of Global Competitive Index in 2010

Why India is ranked on 51st Rank?

Why Switzerland Ranked 1st in GCI?

Comparison of both countries

CONCLUSION
Against this background, by ranking countries according to the barriers to trade they currently have in place, The Global Enabling Trade Report and Global Competitiveness Report provides key information on one specific set of measures that could facilitate recovery. These Reports were intended to be a motivator for change and a foundation for dialogue, by providing a yardstick of the extent to which countries have in place the factors that facilitate the free flow of goods and identifying areas where improvements are most needed. So by the above mentioned strategic tools and reports World Economic Forum tried to promote open trade around the globe.