About the Report

A yearly report published by the World Economic Forum. The first report was released in 1979. The 20122013 report covers 144 major and emerging economies.

What is Competitiveness?
This Report defines Competitiveness as : The set of institutions, policies, and factors that determine the level of productivity of a country.

1979-2005
Global Competitiveness
Macroeconomic Microeconomic

Jeffrey Sachs's Growth Development Index

Michael Porter's Business Competitiveness Index

2005 Onwards...
This Report ranks countries based on the Global Competitiveness Index (GCI), developed by: Xavier Sala-i-Martin Elsa V. Artadi

About the Index

Global Competitiveness Index (GCI), a comprehensive tool that measures the microeconomic and macroeconomic foundations of national competitiveness It integrates the macroeconomic and the micro/business aspects of competitiveness into a single index

Pillars of GCI
1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) Institutions Infrastructure Macroeconomic Environment Health and Primary Education Higher education and Training Goods Market Efficiency Labour Market Efficiency Financial Market Development Technological Readiness Market Size Business Sophistication Innovation

How is the GCI Calculated?

Stage 1: GDP per Capita < US$ 2000

60%

35%

5%

Stage 2: GDP per Capita between US$ 3000 and US$ 8999

40%

50%

10%

Stage 3: GDP per Capita > US$ 17000

20%

50%

10%

Changing Weights
70%

Weightage in Percentage
60%

50%

40%

Weight for basic requirements subindex Weight for efficiency enhancers subindex Weight for innovation and sophistication factors

30%

20%

10%

0% < 2000 3000-8999 >17000

GDP per Capita (US$)

Data Sources
The United Nations Educational, Scientific and Cultural Organization (UNESCO) The International monetary Fund (IMF) The World Health Organization (WHO)

Uses of GCI
Provides a comparative overview of the economic and business potential of the included countries. Estimates the productivity of individual sectors and the economy as a whole. Provides an assessment of the value of investing in the listed countries based on the identification of comparative advantages. Highlights the strengths and weaknesses of national economies, and identifies elements of the economy that stimulate or inhibit growth.

Shortcomings of GCI
The ordinal ranking of economies does not express the size or cause of gaps between countries Technical and statistical limitations reduce the precision and reliability The index reflects the existing reality caused by preexisting policy The index does not reflect the unique characteristics of countries, nor does it address subjective and varying perceptions of quality of life

Highlights of the Report

Top 10 Best-Performing Countries

1. Switzerland 2. Singapore 3. Finland 4. Sweden 5. Netherlands 6. Germany 7. United States 8. United Kingdom 9. Hong Kong 10. Japan

GCI Heat Map (Page-12)

Europe and North America

Faced a number of challenges in last few years Struggling to get out of double-dip recession Holds 6 out of 10 competitiveness hotspots Still bleaker picture when compared to the rest of American and European region

Asia and Pacific

Among fastest growing regions Some of the regional champions are Singapore, Hong Kong, Japan, Taiwan, Republic of Korea and Australia Still come are lagging behind like Pakistan, Bangladesh, etc

Latin America and Caribbean

Growing steadily at average rate of 4.5 percentage Dependence on demand from China and other Asian economies Competitiveness challenges - high insecurity, poor infrastructure, inefficient allocation of production resources, and a low capacity to generate new knowledge to strengthen R&D innovation in the region

Middle East and North Africa

Majorly affected by political turbulences affecting individual countys competitiveness Countries which embarked on partial reforms like Jordan and Morocco moved up in ranking Key competitiveness challenge addressing problem of unemployment

Sub-Saharan Africa
Grown impressively over last 15 years with growth rate of over 5% in last two years Middle-income countries following economic slowdown but oil-exploring and lower-income countries unaffected In general, African region lags behind whole world in terms of competitiveness

Sustainability Adjusted GCI

The central idea of sustainable competitiveness reflects the search for a development model that would balance economic prosperity, environmental stewardship, and social sustainability.

Competitiveness and Environmental Sustainability

high-quality and well-managed natural environment enables Efficient use of natural resources Supports healthy workforce Circumvents ill effects of environmental degradation (pollution, climatic catastrophe,

Definition
Environmental sustainability is the institutions, policies, and factors that ensure an efficient management of resources to enable prosperity for present and future generations.

Competitiveness and Social Sustainability

High level of competitiveness Higher level of economic growth Raises standard of living of people Higher levels of consumption of good and services In case of high income disparities, High level of competitiveness Higher level of economic growth , more prone to social unrest

Definition
social sustainability is the institutions, policies, and factors that enable all members of society to experience the best possible health, participation, and security; and that maximize their potential to contribute to and benefit from the economic prosperity of the country in which they live.

Economic and Social Sustainability

High levels of poverty and inequality Massive unplanned urbanization (such as slums) repercussions for the environment Destruction of natural environment via deforestation or pollution of water sources due to lack of waste management

Definition of Sustainable Competitiveness

sustainable competitiveness is the set of institutions, policies, and factors that make a nation remain productive over the longer term while ensuring social and environmental sustainability

Indicators
Environment Sustainability

Social Sustainability

Results of Sustainability adjusted GCI

1. Switzerland 2. Finland 3. Sweden 4. Netherlands 5. Germany 6. United States 7. United Kingdom 8. Japan 9. Denmark 10. Canada

Executive Opinion Survey

A survey conducted by World Economic Forum A tool that aims to capture crucial information that is not otherwise available on a global scale A unique source of insight into each nations economic and business environment WEF has conducted its annual Survey for over 40 years, modifying it over time to capture new data points essential to the GCI and other Forum indexes

Survey Structure
I. About Your Company II. Overall Perceptions of Your Economy III. Government and Public Institutions IV. Infrastructure V. Innovation and Technology VI. Financial Environment VII. Foreign Trade and Investment VIII. Domestic Competition

IX. Company Operations and Strategy X. Education and Human Capital XI. Corruption, Ethics and Social Responsibility XII. Travel & Tourism XIII. Environment XIV. Health

Economy Profile

India 1.1

India-1.2

India-1.3

Thank You