Global Competitiveness Report

Template:Unreliable sources The Global Competitiveness Report (GCR) is a yearly report published by the World Economic Forum. Since 2004, the Global Competitiveness Report ranks countries based on the Global Competitiveness Index, developed by Xavier Sala-i-Martin and Elsa V. Artadi. Before that, the macroeconomic ranks were based on Jeffrey Sachs's Growth Development Index and the microeconomic ranks were based on Michael Porter's Business Competitiveness Index. The Global Competitiveness Index integrates the macroeconomic and the micro/business aspects of competitiveness into a single index.

The report "assesses the ability of countries to provide high levels of prosperity to their citizens". This in turn depends on how productively a country uses available resources. Therefore, the Global Competitiveness Index measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity."

Description

Since 2004, the report ranks the world's nations according to the Global Competitiveness Index, based on the latest theoretical and empirical research. It is made up of over 110 variables, of which two thirds come from the Executive Opinion Survey, and one third comes from publicly available sources such as the United Nations. The variables are organized into twelve pillars, with each pillar representing an area considered as an important determinant of competitiveness.

One part of the report is the Executive Opinion Survey, which is a survey of a representative sample of business leaders in their respective countries. Respondent numbers have increased every year and is currently just over 13,500 in 142 countries (2010).

The report notes that as a nation develops, wages tend to increase, and that in order to sustain this higher income, labor productivity must improve for the nation to be competitive. In addition, what creates productivity in Sweden is necessarily different from what drives it in Ghana. Thus, the GCI separates countries into three specific stages: factor-driven, efficiency-driven, and innovation-driven, each implying a growing degree of complexity in the operation of the economy.

The report has twelve pillars of competitiveness. These are:

1. Institutions
2. Appropriate infrastructure
3. Stable macroeconomic framework
4. Good health and primary education
5. Higher education and training
6. Efficient goods markets
7. Efficient labor markets
8. Developed financial markets
9. Ability to harness existing technology
10. Market size—both domestic and international
11. Production of new and different goods using the most sophisticated production processes
12. Innovation

In the factor-driven stage countries compete based on their factor endowments, primarily unskilled labor and natural resources. Companies compete on the basis of prices and sell basic products or commodities, with their low productivity reflected in low wages. To maintain competitiveness at this stage of development, competitiveness hinges mainly on well-functioning public and private institutions (pillar 1), appropriate infrastructure (pillar 2), a stable macroeconomic framework (pillar 3), and good health and primary education (pillar 4).

As wages rise with advancing development, countries move into the efficiency-driven stage of development, when they must begin to develop more efficient production processes and increase product quality. At this point, competitiveness becomes increasingly driven by higher education and training (pillar 5), efficient goods markets (pillar 6), efficient labor markets (pillar 7), developed financial markets (pillar 8), the ability to harness the benefits of existing technologies (pillar 9), and its market size, both domestic and international (pillar 10).

Finally, as countries move into the innovation-driven stage, they are only able to sustain higher wages and a higher standard of living if their businesses are able to compete by providing new or unique products. At this stage, companies must compete by producing new and different goods using the most sophisticated production processes (pillar 11) and through innovation (pillar 12).

Thus, the impact of each pillar on competitiveness varies across countries, in function of their stages of economic development. Therefore, in the calculation of the GCI, pillars are given different weights depending on the per capita income of the nation. The weights used are the values that best explain growth in recent years For example, the sophistication and innovation factors contribute 10% to the final score in factor and efficiency-driven economies, but 30% in innovation-driven economies. Intermediate values are used for economies in transition between stages.

The Global Competitiveness Index's annual reports are somewhat similar to the Ease of Doing Business Index and the Indices of Economic Freedom, which also look at factors affecting economic growth (but not as many as the Global Competitiveness Report). Data from the Global Competitiveness Index relating to the strength of auditing and reporting standards, institutions and judicial independence is used in the Basel AML Index, a money laundering risk assessment tool developed by the Basel Institute on Governance.

Limitations

In spite of the World Economic Forum's Global Risks Report which is increasingly identifying environmental pressures as the dominant risks to humanity, none of the indicators used to determine this report's competitiveness ranking reflect any of the countries' environmental dimensions such as energy, water, climate risks, resource or food security, etc. The Global Competitiveness Report 2018 and 2019 used the ecological footprint as a context indicator, but the footprint was not included in the scoring algorithm that determines the ranking.

2019 rankings

This is the full ranking of the 2019 report:

Rank	Country	Score
Template:Increase 1	Template:Flag	84.8
Template:Decrease 2	Template:USA	83.7
Template:Increase 3	Template:HK	83.1
Template:Increase 4	Template:NLD	82.4
Template:Decrease 5	Template:CHE	82.3
Template:Decrease 6	Template:JPN	82.3
Template:Decrease 7	Template:DEU	81.8
Template:Increase 8	Template:SWE	81.2
Template:Decrease 9	Template:GBR	81.2
Template:Steady 10	Template:DNK	81.2
Template:Steady 11	Template:FIN	80.2
Template:Increase 12	Template:TWN	80.2
Template:Increase 13	Template:KOR	79.6
Template:Decrease 14	Template:CAN	79.6
Template:Increase 15	Template:FRA	78.8
Template:Decrease 16	Template:AUS	78.7
Template:Decrease 17	Template:NOR	78.1
Template:Increase 18	Template:LUX	77.0
Template:Decrease 19	Template:NZL	76.7
Template:Steady 20	Template:ISR	76.7
Template:Increase 21	Template:AUT	76.6
Template:Decrease 22	Template:BEL	76.4
Template:Increase 23	Template:ESP	75.3
Template:Decrease 24	Template:IRL	75.1
Template:Increase 25	Template:Flag	75.0
Template:Decrease 26	Template:ISL	74.7
Template:Decrease 27	Template:MYS	74.6
Template:Steady 28	Template:CHN	73.9
Template:Increase 29	Template:QAT	72.9
Template:Increase 30	Template:ITA	71.5
Template:Increase 31	Template:EST	70.9
Template:Decrease 32	Template:CZE	70.9
Template:Steady 33	Template:CHL	70.5
Template:Steady 34	Template:PRT	70.4
Template:Steady 35	Template:SVN	70.2
Template:Increase 36	Template:SAU	70.0
Template:Steady 37	Template:POL	68.9
Template:Decrease 38	Template:MLT	68.5
Template:Increase 39	Template:LTU	68.4
Template:Decrease 40	Template:THA	68.1
Template:Increase 41	Template:LVA	67.0
Template:Decrease 42	Template:SVK	66.8
Template:Steady 43	Template:RUS	66.7
Template:Steady 44	Template:CYP	66.4
Template:Increase 45	Template:BHR	65.4
Template:Increase 46	Template:KWT	65.1
Template:Increase 47	Template:HUN	65.1
Template:Decrease 48	Template:MEX	64.9
Template:Increase 49	Template:BGR	64.9
Template:Decrease 50	Template:IDN	64.6
Template:Increase 51	Template:ROU	64.4
Template:Decrease 52	Template:MUS	64.3
Template:Decrease 53	Template:OMN	63.6
Template:Decrease 54	Template:URY	63.5
Template:Increase 55	Template:KAZ	62.9
Template:Increase 56	Template:BRN	62.8
Template:Increase 57	Template:COL	62.7
Template:Increase 58	Template:AZE	62.7
Template:Decrease 59	Template:GRC	62.6
Template:Decrease 60	Template:ZAF	62.4
Template:Steady 61	Template:TUR	62.1
Template:Steady 62	Template:CRI	62.0
Template:Increase 63	Template:HRV	61.9
Template:Decrease 64	Template:PHL	61.9
Template:Decrease 65	Template:PER	61.7
Template:Decrease 66	Template:PAN	61.6
Template:Increase 67	Template:VNM	61.5
Template:Decrease 68	Template:IND	61.4
Template:Increase 69	Template:ARM	61.3
Template:Increase 70	Template:JOR	60.9
Template:Increase 71	Template:BRA	60.9
Template:Decrease 72	Template:SRB	60.9
Template:Decrease 73	Template:MNE	60.9
Template:Decrease 74	Template:GEO	60.9
Template:Steady 75	Template:MAR	60.0
Template:Decrease 76	Template:SYC	59.6
NEW 77	Template:BRB	58.9
Template:Decrease 78	Template:DOM	58.3
Template:Decrease 79	Template:TTO	58.3
Template:Decrease 80	Template:JAM	58.3
Template:Decrease 81	Template:ALB	57.6
Template:Increase 82	Template:MKD	57.3
Template:Decrease 83	Template:ARG	57.2
Template:Increase 84	Template:LKA	57.1
Template:Decrease 85	Template:UKR	57.0
Template:Increase 86	Template:MDA	56.7
Template:Steady 87	Template:TUN	56.4
Template:Decrease 88	Template:LBN	56.3
Template:Increase 89	Template:DZA	56.3
Template:Decrease 90	Template:ECU	55.7
Template:Decrease 91	Template:BWA	55.5
Template:Decrease 92	Template:BIH	54.7
Template:Increase 93	Template:EGY	54.5
Template:Increase 94	Template:NAM	54.5
Template:Decrease 95	Template:KEN	54.1
Template:Increase 96	Template:KGZ	54.0
Template:Decrease 97	Template:PRY	53.6
Template:Decrease 98	Template:GTM	53.5
Template:Decrease 99	Template:IRN	53.0
Template:Increase 100	Template:RWA	52.8
Template:Steady 101	Template:HND	52.7
Template:Decrease 102	Template:MNG	52.6
Template:Decrease 103	Template:SLV	52.6
Template:Decrease 104	Template:TJK	52.4
Template:Decrease 105	Template:BGD	52.1
Template:Increase 106	Template:KHM	52.1
Template:Decrease 107	Template:BOL	51.8
Template:Increase 108	Template:NPL	51.6
Template:Decrease 109	Template:NIC	51.5
Template:Decrease 110	Template:PAK	51.4
Template:Decrease 111	Template:GHA	51.2
Template:Decrease 112	Template:CPV	50.8
Template:Decrease 113	Template:LAO	50.1
Template:Decrease 114	Template:SEN	49.7
Template:Increase 115	Template:UGA	48.9
Template:Decrease 116	Template:NGA	48.3
Template:Decrease 117	Template:TZA	48.2
Template:Decrease 118	Template:CIV	48.1
NEW 119	Template:GAB	47.5
Template:Decrease 120	Template:ZMB	46.5
Template:Decrease 121	Template:SWZ	46.4
Template:Increase 122	Template:GIN	46.1
Template:Decrease 123	Template:CMR	46.0
Template:Decrease 124	Template:GMB	45.9
Template:Decrease 125	Template:BEN	45.8
Template:Decrease 126	Template:ETH	44.4
Template:Increase 127	Template:ZWE	44.2
Template:Increase 128	Template:MWI	43.7
Template:Decrease 129	Template:MLI	43.6
Template:Decrease 130	Template:BFA	43.4
Template:Decrease 131	Template:LSO	42.9
NEW 132	Template:MDG	42.9
Template:Decrease 133	Template:VEN	41.8
Template:Decrease 134	Template:MRT	40.9
Template:Increase 135	Template:BDI	40.3
Template:Increase 136	Template:AGO	38.1
Template:Decrease 137	Template:MOZ	38.1
Template:Steady 138	Template:HTI	36.3
Template:Decrease 139	Template:COD	36.1
Template:Decrease 140	Template:YEM	35.5
Template:Decrease 141	Template:TCD	35.1

2018 rankings

This is the top 30 of the 2018 report:

2017–2018 rankings

This is the top 30 of the 2017–2018 report:

2016–2017 rankings

This is the top 30 of the 2016–2017 report:

2015–2016 rankings

This is the top 30 of the 2015–2016 report:

2014–2015 rankings

This is the top 30 of the 2014–2015 report:

2013–2014 rankings

This is the top 30 of the 2013–2014 report:

2012–2013 rankings

This is the top 30 of the 2012–2013 report:

2011–2012 rankings

This is the top 30 of the 2011–2012 report:

2010–2011 rankings

This is the top 30 of the 2010–2011 report:

2009–2010 rankings

This is the top 30 of the 2009–2010 report:

2008–2009 rankings

This is the top 30 of the 2008–2009 report:

You can find the computation and structure of the GCI pp. 49–50 of the Global Competitiveness Report 2013-2014, Full Data Edition.

See also

• Competition (companies)
• List of national quality awards
• World Competitiveness Yearbook

External links

• "Interactive Global Competitiveness Report" 2014-2015.
• Global Competitiveness Report 2019.
• Top 20 countries of 2010 by competitiveness, United Explanations
• International Institute for Management Development publications