The 12 pillars of competitiveness There are many and are complex.

Economists have long tried to understand what determines the wealth of nations, it has ranged from specialization and division of labor, to emphasis on investment in physical capital and infrastructure and, more recently, to education and training, technological progress (whether created in the country or adopted), macroeconomic stability, good governance, the rule of law, transparent and well-functioning institutions, firm sophistication, demand conditions, market size, and others. The central point is that they are not mutually exclusivetwo or more of them could be treat the same time. This also can partly explain why, despite the present global economic crisis, we do not necessarily see large swings in competitiveness rankings, particularly among countries that have already put into place many of the elements driving productivity. First pillar: Institutions It is determined by the legal and administrative framework within which individuals, firms and governments interact to generate income and wealth in the economy. The importance of a solid institutional environment has become even more apparent during the current crisis, given the increasingly direct role played by the state in the economy of many countries. The quality of institutions has a strong bearing on competitiveness and growth. It influences investment decisions and the organization of production and playas central role in the ways in which societies distribute the benefits and bear the costs of development strategies and policies. It goes beyond the legal framework. Government attitudes toward markets and freedoms, and the efficiency of its operations, are also very important: excessive bureaucracy, overregulation, corruption, dishonesty in public contracts, lack of transparency and trustworthiness. Proper management of the public finances is also critical to ensuring trust in the national business environment. An economy is well served by businesses that are run honestly, where managers have strong ethical practices in their dealings with the government, other firms and the public. Private sector transparency is indispensable to business, and can be achieved through the use of standards as well as auditing and accounting practices that ensure access to information in a timely manner.

1. Property Rights: Property rights are a controversial, theoretical construct in economics for determining how a resource is used, and who owns that resource - government, collective bodies, or by individuals.[1] Property rights can be viewed as an attribute of an economic good. This attribute has four broad components and is often referred to as a bundle of rights. The right to use the good The right to earn income from the good The right to transfer the good to others The right to enforcement of property rights.

2. Intellectual property Protection: Intellectual property (IP) is a legal concept which refers to creations of the mind for which exclusive rights are recognized.[1] Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights, trade dress, and in some jurisdictions trade secrets 3. Diversion of public funds: In a country, how common is diversion of public funds to companies, individuals, or groups due to corruption

4. Public trust in politicians: Level of trust that people have on standard Politician of there country. 5. Irregular payments and bribes: In a country, how common is it for firms to make undocumented extra payments or bribes connected with (a) imports and exports; (b) public utilities; (c) annual tax payments; (d) awarding of public contracts and licenses; (e) obtaining favorable judicial decisions.

6. Judicial independence: Judicial independence is the concept that the judiciary needs to be kept away from the other branches of government. That is, courts should not be subject to improper influence from the other branches of government, or from private or partisan interests. Judicial Independence is vital and important to the idea of powers. Different countries deal with the idea of judicial independence through different means of judicial selection, or choosing judges. One way to promote judicial independence is by

granting life tenure or long tenure for judges, which ideally frees them to decide cases and make rulings according to the rule of law and judicial discretion, even if those decisions are politically unpopular or opposed by powerful interests. 7. Favoritism in decisions of government officials: To what extent do government officials In a country show favoritism to well-connected firms and individuals when deciding upon policies and contracts? 8. Wastefulness of government spending: Government waste is the opinion that the government does not spend money in an acceptable manner

9. Burden of government regulation: How burdensome is it for businesses In a country to comply with governmental administrative requirements 10. Efficiency of legal framework in settling disputes: How efficient is the legal framework In a country for private businesses in settling disputes? 11. Efficiency of legal framework in challenging: How efficient is the legal framework In a country for private businesses in challenging the legality of government actions and/or regulations?

12. Transparency of government policymaking: How easy is it for businesses In a country to obtain information about changes in government policies and regulations affecting their activities? 13. Govt services for improved business performance: To what extent does the government In a country continuously improve its provision of services to help businesses In a country boost their economic performance.

14. Business costs of terrorism: To what extent does the threat of terrorism impose costs on businesses in a country? 15. Business costs of crime and violence: To what extent does the incidence of crime and violence impose costs on businesses in a country?

16. Organized crime: Organized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of

engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are politically motivated. Sometimes criminal organizations force people to do business with them, as when a gang extorts money from shopkeepers for so-called "protection. Gangs may become disciplined enough to be considered organized. An organized gang or criminal set can also be referred to as a mob 17. Reliability of police services: To what extent can police services be relied upon to enforce law and order in a country? 18. Ethical behavior of firms: Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. 19. Strength of auditing and reporting standards: In a country, how would you assess financial auditing and reporting standards regarding company financial performance? 20. Efficacy of corporate boards: How would you characterize corporate governance by investors and boards of directors in a country?

21. Protection of minority shareholders interests: In a country, to what extent are the interests of minority shareholders protected by the legal system. 22. Strength of investor protection: Strength of Investor Protection

India
S.NO 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1st Pillar: Institution Property Rights Intellectual property Protection Diversion of public funds Public trust in politicians Irregular payments and bribes Judicial independence Favoritism in decisions of government officials Wastefulness of government spending Burden of government regulation Efficiency of legal framework in settling disputes Efficiency of legal framework in challenging Transparency of government policymaking Govt services for improved business performance Business costs of terrorism Business costs of crime and violence Organized crime Reliability of police services Ethical behavior of firms Strength of auditing and reporting standards Efficacy of corporate boards Protection of minority shareholders interests Strength of investor protection Value 4.4 3.7 2.8 2.2 3.4 4.5 2.8 3.4 3.0 3.8 3.9 4.3 3.6 4.8 5.0 5.0 4.3 3.8 5.0 4.4 4.4 6.0

China
S.NO 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1st Pillar: Institution Property Rights Intellectual property Protection Diversion of public funds Public trust in politicians Irregular payments and bribes Judicial independence Favoritism in decisions of government officials Wastefulness of government spending Burden of government regulation Efficiency of legal framework in settling disputes Efficiency of legal framework in challenging Transparency of government policymaking Govt services for improved business performance Business costs of terrorism Business costs of crime and violence Organized crime Reliability of police services Ethical behavior of firms Strength of auditing and reporting standards Efficacy of corporate boards Protection of minority shareholders interests Strength of investor protection Value 4.9 3.9 3.7 4.1 4.0 3.9 3.8 3.7 4.2 4.2 3.9 4.5 4.3 5.1 4.8 4.7 4.5 4.0 4.5 4.3 4.2 5.0

Singapore
S.NO 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1st Pillar: Institution Property Rights Intellectual property Protection Diversion of public funds Public trust in politicians Irregular payments and bribes Judicial independence Favoritism in decisions of government officials Wastefulness of government spending Burden of government regulation Efficiency of legal framework in settling disputes Efficiency of legal framework in challenging Transparency of government policymaking Govt services for improved business performance Business costs of terrorism Business costs of crime and violence Organized crime Reliability of police services Ethical behavior of firms Strength of auditing and reporting standards Efficacy of corporate boards Protection of minority shareholders interests Strength of investor protection Value 6.4 6.1 6.2 6.3 6.6 5.7 5.3 6.0 5.6 6.2 5.5 6.2 5.9 5.5 6.1 6.7 6.4 6.4 6.1 5.6 5.5 9.3

Japan
S.NO 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1st Pillar: Institution Property Rights Intellectual property Protection Diversion of public funds Public trust in politicians Irregular payments and bribes Judicial independence Favoritism in decisions of government officials Wastefulness of government spending Burden of government regulation Efficiency of legal framework in settling disputes Efficiency of legal framework in challenging Transparency of government policymaking Govt services for improved business performance Business costs of terrorism Business costs of crime and violence Organized crime Reliability of police services Ethical behavior of firms Strength of auditing and reporting standards Efficacy of corporate boards Protection of minority shareholders interests Strength of investor protection Value 5.8 5.4 5.3 3.1 6.2 5.8 4.8 2.9 3.2 4.5 4.0 5.1 3.6 5.3 5.4 5.4 5.7 5.7 5.1 5.1 4.9 7.0

Finland
S.NO 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1st Pillar: Institution Property Rights Intellectual property Protection Diversion of public funds Public trust in politicians Irregular payments and bribes Judicial independence Favoritism in decisions of government officials Wastefulness of government spending Burden of government regulation Efficiency of legal framework in settling disputes Efficiency of legal framework in challenging Transparency of government policymaking Govt services for improved business performance Business costs of terrorism Business costs of crime and violence Organized crime Reliability of police services Ethical behavior of firms Strength of auditing and reporting standards Efficacy of corporate boards Protection of minority shareholders interests Strength of investor protection Value 6.5 6.3 6.2 5.1 6.6 6.5 5.1 4.8 4.8 6.0 5.9 6.1 4.8 6.7 6.4 6.7 6.6 6.5 6.3 5.4 6.1 5.7