COMMITTED TO Insight Report The Global Competitiveness Report 2014?201 5 Klaus Schwab, World Economic Forum 9999 .VJV 999999999999 1? Insight Report The Global Competitiveness Report 2014–2015 Full Data Edition Professor Klaus Schwab World Economic Forum Editor Professor Xavier Sala-i-Martín Columbia University Chief Advisor of The Global Competitiveness and Benchmarking Network © 2014 World Economic Forum World Economic Forum Geneva The Global Competitiveness Report 2014–2015: Full Data Edition is published by the World Economic Forum within the framework of The Global Competitiveness and Benchmarking Network. Copyright © 2014 by the World Economic Forum Professor Klaus Schwab Executive Chairman All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of the World Economic Forum. Professor Xavier Sala-i-Martín Chief Advisor of The Global Competitiveness and Benchmarking Network Espen Barth Eide Managing Director and Member of the Managing Board ISBN-13: 978-92-95044-98-2 ISBN-10: 92-95044-98-3 Jennifer Blanke Chief Economist This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. THE GLOBAL COMPETITIVENESS AND BENCHMARKING NETWORK Margareta Drzeniek Hanouz, Head of the Global Competitiveness and Benchmarking Network and Lead Economist Printed and bound in Switzerland. The Report and an interactive data platform are available at www.weforum.org/gcr. Beñat Bilbao-Osorio, Associate Director, Senior Economist Ciara Browne, Director Roberto Crotti, Quantitative Economist Attilio Di Battista, Junior Quantitative Economist Gaëlle Dreyer, Research Associate Caroline Galvan, Senior Manager, Economist Thierry Geiger, Associate Director, Senior Economist Tania Gutknecht, Community Manager Cecilia Serin, Senior Associate We thank Hope Steele for her superb editing work and Neil Weinberg for his excellent graphic design and layout. We are grateful to Mirza Taqi for his invaluable research assistance. The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis. © 2014 World Economic Forum Contents Partner Institutes v Part 2: Data Presentation 97 Preface xiii 2.1 Country/Economy Profiles 99 by Espen Barth Eide How to Read the Country/Economy Profiles.................................101 Index of Countries/Economies.......................................................103 Country/Economy Profiles.............................................................104 Part 1: Measuring Competitiveness 1 1.1 The Global Competitiveness Index 2014–2015: Accelerating a Robust Recovery to Create Productive Jobs and Support Inclusive Growth 3 2.2 Data Tables 393 How to Read the Data Tables........................................................395 Index of Data Tables......................................................................397 Data Tables...................................................................................399 by Xavier Sala-i-Martín, Beñat Bilbao-Osorio, Attilio Di Battista, Technical Notes and Sources 537 About the Authors 547 Margareta Drzeniek Hanouz, Thierry Geiger, and Caroline Galvan 1.2 Assessing Progress toward Sustainable Competitiveness 53 by Gemma Corrigan, Roberto Crotti, Margareta Drzeniek Hanouz, and Cecilia Serin 1.3 The Executive Opinion Survey: The Voice of the Business Community 85 by Ciara Browne, Attilio Di Battista, Thierry Geiger, and Tania Gutknecht © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 iii 2014 World Economic Forum Partner Institutes The World Economic Forum’s Global Competitiveness and Benchmarking Network is pleased to acknowledge and thank the following organizations as its valued Partner Institutes, without which the realization of The Global Competitiveness Report 2014–2015 would not have been feasible: Albania Institute for Contemporary Studies (ISB) Artan Hoxha, President Elira Jorgoni, Senior Expert Endrit Kapaj, Expert Bangladesh Centre for Policy Dialogue (CPD) Kishore Kumer Basak, Senior Research Associate Khondaker Golam Moazzem, Additional Research Director Mustafizur Rahman, Executive Director Barbados The Sir Arthur Lewis Institute of Social and Economic Studies, University of West Indies (UWI) Don D. Marshall, Acting Director Belgium Vlerick Business School Wim Moesen, Professor Leo Sleuwaegen, Professor, Competence Centre Entrepreneurship, Governance and Strategy Algeria Centre de Recherche en Economie Appliquée pour le Développement (CREAD) Mohamed Yassine Ferfera, Director Khaled Menna, Research Fellow Bhutan Bhutan Chamber of Commerce & Industry (BCCI) Phub Tshering, Secretary General Kesang Wangdi, Deputy Secretary General Angola InAngol Luis Verdeja, Chief Executive Officer Druk Holding & Investment Randall Krantz, Strategy Adviser Argentina IAE—Universidad Austral Nicolás Bernabé, Research Analyst Eduardo Fracchia, Director of Academic Department of Economics Armenia Economy and Values Research Center Manuk Hergnyan, Chairman Sevak Hovhannisyan, Board Member and Senior Associate Tamara Karapetyan, Research Associate Australia Australian Industry Group Gareth Shaw, Research Coordinator Julie Toth, Chief Economist Innes Willox, Chief Executive Officer Bosnia and Herzegovina MIT Center, School of Economics and Business in Sarajevo, University of Sarajevo Zlatko Lagumdzija, Professor Zeljko Sain, Executive Director Jasmina Selimovic, Assistant Director Botswana Botswana National Productivity Centre Letsogile Batsetswe, Research Consultant and Statistician Baeti Molake, Executive Director Phumzile Thobokwe, Manager, Information and Research Services Department Brazil Fundação Dom Cabral, Innovation Center Carlos Arruda, Associate Dean for Business Partnership, Professor of Innovation and Competitiveness Herica Righi, Associate Professor Austria Austrian Institute of Economic Research (WIFO) Karl Aiginger, Director Gerhard Schwarz, Coordinator, Survey Department Brunei Darussalam Ministry of Industry and Primary Resources Pehin Dato Yahya Bakar, Minister Normah Suria Hayati Jamil Al-Sufri, Permanent Secretary Azerbaijan Azerbaijan Marketing Society Fuad Aliyev, Deputy Chairman Ashraf Hajiyev, Consultant Bahrain Bahrain Economic Development Board Kamal Bin Ahmed, Minister of Transportation and Acting Chief Executive of the Economic Development Board Nada Azmi, Manager, Economic Planning and Development Bulgaria Center for Economic Development Adriana Daganova, Expert, International Programmes and Projects Anelia Damianova, Senior Expert Burkina Faso lnstitut Supérieure des Sciences de la Population (ISSP) Bonayi Hubert Dabire, Deputy Director Jean François Kobiane, Director Justin Zoma, Student © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 v Partner Institutes Croatia National Competitiveness Council Jadranka Gable, Advisor Kresimir Jurlin, Research Fellow Burundi University Research Centre for Economic and Social Development (CURDES), National University of Burundi Dieudonné Gahungu, Director Charles Kabwigiri, Dean Gilbert Niyongabo, Head of Department, Faculty of Economics and Management Cyprus European University Cyprus, Research Center Maria Markidou-Georgiadou, Consultant Bambos Papageorgiou, Head of Socioeconomic and Academic Research Cambodia Nuppun Institute for Economic Research (NUPPUN) Pheakdey Em, Research Associate Pisey Khin, Director Pheakdey Pheap, Research Assistant Czech Republic CMC Graduate School of Business Tomáš Janča, Executive Director Cameroon Comité de Compétitivité (Competitiveness Committee) Jean-Jacques Ngouang, Operations Director Lucien Sanzouango, General Manager Czech Management Association Ivo Gajdoš, Executive Director University of Economics, Faculty of International Relations Štěpán Müller, Dean Canada The Conference Board of Canada Michael R. Bloom, Vice-President Jessica Edge, Research Associate Douglas Watt, Director Denmark Danish Technological Institute, Center for Policy and Business Analysis Hanne Shapiro, Director Stig Yding Sørensen, Team Manager Cape Verde INOVE RESEARCH—Investigação e Desenvolvimento, Lda. Emanuel Carvalho, Project Manager Júlio Delgado, Partner and Senior Researcher José Mendes, Chief Executive Officer Chad Groupe de Recherches Alternatives et de Monitoring du Projet Pétrole-Tchad-Cameroun (GRAMP-TC) Antoine Doudjidingao, Researcher Gilbert Maoundonodji, Director Celine Nénodji Mbaipeur, Programme Officer Chile School of Government, Universidad Adolfo Ibáñez Ignacio Briones, Dean Julio Guzman, Assistant Professor Pamela Saavedra, Assistant China Institute of Economic System and Management, National Development and Reform Commission Chen Wei, Research Fellow Dong Ying, Professor Zhou Haichun, Deputy Director and Professor China Center for Economic Statistics Research, Tianjin University of Finance and Economics Bojuan Zhao, Professor Lu Dong, Professor Jian Wang, Associate Professor Hongye Xiao, Professor Huazhang Zheng, Associate Professor Colombia National Planning Department Rodrigo Moreira, Director of Enterprise Development Sara Patricia Rivera, Research Analyst John Rodríguez, Project Manager Colombian Private Council on Competitiveness Rosario Córdoba, President Marco Llinás, Vicepresident Côte d’Ivoire Chambre de Commerce et d’Industrie de Côte d’Ivoire Anzoumane Diabakate, Head of Communications Jean Rock Kouadio-Kirine, Head of Regional Economic Information Marie-Gabrielle Varlet-Boka, Director General vi The Global Competitiveness Report 2014–2015 Ecuador ESPAE Graduate School of Management, Escuela Superior Politécnica del Litoral (ESPOL) Virginia Lasio, Director Andrea Samaniego Díaz, Project Assistant Sara Wong, Professor Egypt The Egyptian Center for Economic Studies (ECES) Iman Al-Ayouty, Senior Economist Tarek El-Ghamrawy, Economist Omneia Helmy, Director of Research Estonia Estonian Institute of Economic Research (ECES) Marje Josing, Director Estonian Development Fund Tõnis Arro, Chief Executive Officer Ethiopia African Institute of Management, Development and Governance Zebenay Kifle, General Manager Tegenge Teka, Senior Expert Finland ETLA—The Research Institute of the Finnish Economy Markku Kotilainen, Research Director Petri Rouvinen, Research Director Vesa Vihriälä, Managing Director France HEC Paris Marina Kundu, Associate Dean in charge of Executive Education Bernard Ramanantsoa, Dean Gabon Confédération Patronale Gabonaise Regis Loussou Kiki, General Secretary Gina Eyama Ondo, Assistant General Secretary Henri Claude Oyima, President Gambia, The Gambia Economic and Social Development Research Institute (GESDRI) Makaireh A. Njie, Director © 2014 World Economic Forum Partner Institutes Georgia Business Initiative for Reforms in Georgia Tamara Janashia, Executive Director Giga Makharadze, Founding Member of the Board of Directors Mamuka Tsereteli, Founding Member of the Board of Directors Germany WHU—Otto Beisheim School of Management Ralf Fendel, Professor of Monetary Economics Michael Frenkel, Professor, Chair of Macroeconomics and International Economics Ghana Association of Ghana Industries (AGI) Patricia Addy, Projects Officer James Asare-Adjei, President Seth Twum-Akwaboah, Executive Director Iran, Islamic Republic of Iran Chamber of Commerce, Industries, Mines and Agriculture, Department of Economic Affairs Hamed Nikraftar, Project Manager Farnaz Safdari, Research Associate Homa Sharifi, Research Associate Ireland Institute for Business Development and Competitiveness School of Economics, University College Cork Justin Doran, Principal Associate Eleanor Doyle, Director Catherine Kavanagh, Principal Associate Forfás, Economic Analysis and Competitiveness Department Adrian Devitt, Manager Conor Hand, Economist Greece SEV Hellenic Federation of Enterprises Michael Mitsopoulos, Senior Advisor, Infrastructures and Business Environment Thanasis Printsipas, Economist, Entrepreneurship Israel Manufacturers Association of Israel (MAI) Dan Catarivas, Foreign Trade & International Relations Director Amir Hayek, Managing Director Zvi Oren, President Guatemala FUNDESA Felipe Bosch G., President of the Board of Directors Pablo Schneider, Economic Director Juan Carlos Zapata, Chief Executive Officer Italy SDA Bocconi School of Management Paola Dubini, Associate Professor, Bocconi University Francesco A. Saviozzi, SDA Professor, Strategic and Entrepreneurial Management Department Guinea Confédération Patronale des Entreprises de Guinée Mohamed Bénogo Conde, Secretary-General Jamaica Mona School of Business & Management (MSBM), The University of the West Indies Patricia Douce, Project Administrator William Lawrence, Director, Professional Services Unit Densil Williams, Executive Director and Professor Guyana Institute of Development Studies, University of Guyana Karen Pratt, Research Associate Tessa Pratt, Research Associate Clive Thomas, Director Haiti Group Croissance SA Jean-Hubert Legendre, Head of Administration and Finance Kesner Pharel, Chief Executive Officer and Chairman Hong Kong SAR Hong Kong General Chamber of Commerce David O’Rear, Chief Economist Japan Keio University Yoko Ishikura, Professor, Graduate School of Media Design Heizo Takenaka, Director, Global Security Research Institute Jiro Tamura, Professor of Law, Keio University In cooperation with Keizai Doyukai (Japan Association of Corporate Executives) Kiyohiko Ito, Managing Director, Keizai Doyukai Jordan Ministry of Planning and International Cooperation Kawther Al-Zou’bi, Head of Competitiveness Division Ibrahim Saif, Minister Federation of Hong Kong Industries Alexandra Poon, Director Hungary KOPINT-TÁRKI Economic Research Ltd. Éva Palócz, Chief Executive Officer Peter Vakhal, Project Manager Kazakhstan National Analytical Centre Aktoty Aitzhanova, Deputy Chairperson Anastassiya Iskaliyeva, Project Manager Vladislav Yezhov, Chairman Iceland Innovation Center Iceland Karl Fridriksson, Managing Director of Human Resources and Marketing Tinna Jóhannsdóttir, Marketing Manager Snaebjorn Kristjansson, Operational R&D Manager Kenya Institute for Development Studies, University of Nairobi Paul Kamau, Senior Research Fellow Dorothy McCormick, Research Professor Winnie Mitullah, Director and Associate Research Professor India Confederation of Indian Industry (CII) Chandrajit Banerjee, Director General Danish A. Hashim. Director, Economic Research Marut Sen Gupta, Deputy Director General Indonesia Center for Industry, SME & Business Competition Studies, University of Trisakti Tulus Tambunan, Director Korea, Republic of Korea Development Institute Byungkoo Cho, Executive Director, Economic Information Education Center Seungjoo Lee, Research Associate, Public Opinion Analysis Unit Youngho Jung, Head, Public Opinion Analysis Unit Kuwait Kuwait National Competitiveness Committee Adel Al-Husainan, Committee Member Fahed Al-Rashed, Committee Chairman Sayer Al-Sayer, Committee Member © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 vii Partner Institutes Mauritania Bicom-Service Commercial Guèye Ibrahima, Administrative Financial Director and Analyst Ousmane Samb, Technical and Marketing Director and Analyst Habib Sy, Director Général Kyrgyz Republic Economic Policy Institute Lola Abduhametova, Program Coordinator Marat Tazabekov, Chairman Lao PDR Enterprise & Development Consultants Co., Ltd Latvia Stockholm School of Economics in Riga Arnis Sauka, Head of the Centre for Sustainable Development Lebanon Bader Young Entrepreneurs Program Fadi Bizri, Managing Director Farah Shamas, Program Coordinator Mauritius Board of Investment, Mauritius Manaesha Fowdar, Investment Executive, Competitiveness Khoudijah Maudarbocus-Boodoo, Director Ken Poonoosamy, Managing Director Joint Economic Council Raj Makoond, Director Lesotho Private Sector Foundation of Lesotho Nthati Mapitsi, Researcher Thabo Qhesi, Chief Executive Officer Kutloano Sello, President, Researcher Mexico Center for Intellectual Capital and Competitiveness Erika Ruiz Manzur, Executive Director René Villarreal Arrambide, President and Chief Executive Officer Rodrigo David Villarreal Ramos, Director Libya Libya Development Policy Center Mohamed Hammuda, Project Coordinator Mohamed A. Wefati, Managing Director Instituto Mexicano para la Competitividad (IMCO) Gabriela Alarcon, Research Director Juan E. Pardinas, General Director María Zimbrón Alva, Communication Coordinator Lithuania Statistics Lithuania Ona Grigiene, Deputy Head, Knowledge Economy and Special Surveys Statistics Division Vilija Lapeniene, Director General Gediminas Samuolis, Head, Knowledge Economy and Special Surveys Statistics Division Ministry of the Economy Adolfo Cimadevilla Cervera, Technical Secretary for Competitiveness Sergio Merino González, Deputy General Director for Competitiveness María del Rocío Ruiz Chávez, Undersecretary for Competitiveness and Standardization Luxembourg Luxembourg Chamber of Commerce Annabelle Dullin, Research Analyst Carlo Thelen, Chief Economist, Director General Lynn Zoenen, Research Analyst Moldova Academy of Economic Studies of Moldova (AESM) Grigore Belostecinic, Rector Macedonia, FYR National Entrepreneurship and Competitiveness Council (NECC) Dejan Janevski, Project Coordinator Mongolia Open Society Forum (OSF), Mongolia Oyunbadam Davaakhuu, Manager of Economic Policy Erdenejargal Perenlei, Executive Director Madagascar Centre of Economic Studies, University of Antananarivo Ravelomanana Mamy Raoul, Director Razato Rarijaona Simon, Executive Secretary Montenegro Institute for Strategic Studies and Prognoses (ISSP) Maja Drakic Grgur, Project Manager Jadranka Kaludjerovic, ISSP Program Director Veselin Vukotic, President Institute of Economic Research and European Studies (IERES) Corneliu Gutu, Director Malawi Malawi Confederation of Chambers of Commerce and Industry Hope Chavula, Manager, Public Private Dialogue Chancellor L. Kaferapanjira, Chief Executive Officer Morocco Confédération Générale des Entreprises du Maroc (CGEM) Meriem Bensalah Cheqroun, President Si Mohamed Elkhatib, Project Head, Commission Climat des Affaires et Partenariat Public Privé Ahmed Rahhou, President, Commission Climat des Affaires et Partenariat Public Privé Malaysia Malaysia Productivity Corporation (MPC) Mohd Razali Hussain, Director General Lee Saw Hoon, Senior Director Mozambique EconPolicy Research Group, Lda. Peter Coughlin, Director Mwikali Kieti, Project Coordinator Mali Groupe de Recherche en Economie Appliquée et Théorique (GREAT) Massa Coulibaly, Executive Director Malta Competitive Malta—Foundation for National Competitiveness Margrith Lutschg-Emmenegger, Vice President Adrian Said, Chief Coordinator Isabel Sultana Cassar, Research Coordinator viii The Global Competitiveness Report 2014–2015 Myanmar Centre for Economic and Social Development of Myanmar Development Resource Institute (MDRI-CESD) Min Zar Ni Lin, Research Associate U Myint, Chief U Zaw Oo, Executive Director © 2014 World Economic Forum Partner Institutes Namibia Institute for Public Policy Research (IPPR) Graham Hopwood, Executive Director Leon Kufa, Research Associate Lizaan van Wyk, Research Associate Portugal PROFORUM, Associação para o Desenvolvimento da Engenharia Ilídio António de Ayala Serôdio, Vice President of the Board of Directors Nepal Centre for Economic Development and Administration (CEDA) Ramesh Chandra Chitrakar, Professor, Country Coordinator and Project Director Ram Chandra Dhakal, Executive Director and Adviser Mahendra Raj Joshi, Member Fórum de Administradores de Empresas (FAE) Paulo Bandeira, General Director Luis Filipe Pereira, President of the Board of Directors Antonio Ramalho, Member of the Board of Directors Netherlands INSCOPE: Research for Innovation, Erasmus University Rotterdam Henk W. Volberda, Director and Professor Puerto Rico Puerto Rico 3000, Inc. Francisco Garcia, President Instituto de Competitividad Internacional, Universidad Interamericana de Puerto Rico Francisco Montalvo, Project Coordinator New Zealand The New Zealand Initiative Oliver Hartwich, Executive Director Qatar Qatari Businessmen Association (QBA) Sarah Abdallah, Deputy General Manager Issa Abdul Salam Abu Issa, Secretary-General BusinessNZ Phil O’Reilly, Chief Executive Nigeria Nigerian Economic Summit Group (NESG) Frank Nweke II, Director General Olajiire Onatade-Abati, Research Analyst Sope Williams-Elegbe, Associate Director & Head of Research Social and Economic Survey Research Institute (SESRI) Hanan Abdul Rahim, Associate Director Darwish Al Emadi, Director Romania SC VBD Alliance Consulting Srl. Irina Ion, Country Coordinator Norway BI Norwegian Business School Marius Nordkvelde, Researcher Torger Reve, Professor Russian Federation Eurasia Competitiveness Institute (ECI) Katerina Marandi, Programme Manager Alexey Prazdnichnykh, Managing Director Oman The International Research Foundation Salem Ben Nasser Al-Ismaily, Chairman Rwanda Private Sector Federation (PSF) Hannington Namara, Chief Executive Officer Andrew R. Othieno, Head of Research and Policy Public Authority for Investment Promotion and Export Development (ITHRAA) Azzan Qassim Al-Busaidi, Director General, Research & E-Services Rwanda Development Board (RDB) Daniel Nkubito, Strategy and Competitiveness Division Valentine Rugwabiza, Chief Executive Officer Pakistan Mishal Pakistan Puruesh Chaudhary, Director Content Amir Jahangir, Chief Executive Officer Saudi Arabia Alfaisal University Mohammed Kafaji, Assistant Professor National Competitiveness Center (NCC) Saud bin Khalid Al-Faisal, President Khaldon Zuhdi Mahasen, Managing Director Paraguay Centro de Análisis y Difusión de Economia Paraguaya (CADEP) Dionisio Borda, Research Member Fernando Masi, Director María Belén Servín, Research Member Peru Centro de Desarrollo Industrial (CDI), Sociedad Nacional de Industrias Néstor Asto, Associate Consultant Maria Elena Baraybar, Project Assistant Luis Tenorio, Executive Director Philippines Makati Business Club (MBC) Isabel A. Lopa, Deputy Executive Director Michael B. Mundo, Research Programs Manager Peter Angelo V. Perfecto, Executive Director Management Association of the Philippines (MAP) Arnold P. Salvador, Executive Director Poland Economic Institute, National Bank of Poland Piotr Boguszewski, Advisor Andrzej Slawinski, General Director Senegal Centre de Recherches Economiques Appliquées (CREA), University of Dakar Youssou Camara, Administrative Staff Fatou Gueye, Teacher Gisèle Tendeng, Accountant Serbia Foundation for the Advancement of Economics (FREN) Aleksandar Radivojevic, Project Coordinator Svetozar Tanaskovic, Researcher Jelena Zarkovic Rakic, Director Seychelles Plutus Auditing & Accounting Services Nicolas Boulle, Partner Marco L. Francis, Partner Singapore Economic Development Board Anna Chan, Assistant Managing Director, Planning & Policy Cheng Wai San, Director, Research & Statistics Unit Teo Xinyu, Executive, Research & Statistics Unit © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 ix Partner Institutes Slovak Republic Business Alliance of Slovakia (PAS) Robert Kicina, Executive Director Slovenia Institute for Economic Research Peter Stanovnik, Professor Sonja Uršič, Senior Research Assistant University of Ljubljana, Faculty of Economics Mateja Drnovšek, Professor South Africa Business Leadership South Africa Friede Dowie, General Manager Thero Setiloane, Chief Executive Officer Business Unity South Africa Nomaxabiso Majokweni, Chief Executive Officer Kgatlaki Ngoasheng, Executive Director, Economic Policy Spain IESE Business School, International Center for Competitiveness María Luisa Blázquez, Research Associate Antoni Subirà, Professor Sri Lanka Institute of Policy Studies of Sri Lanka (IPS) Dilani Hirimuthugodage, Research Officer Sahan Jayawardena, Research Assistant Saman Kelegama, Executive Director Suriname Suriname Trade and Industry Association Helen Doelwijt, Executive Secretary Dayenne Wielingen, Economic Policy Officer Kenneth Woei-A-Tsoi, Executive Director Swaziland Federation of Swaziland Employers and Chamber of Commerce Mduduzi Lokotfwako, Coordinator, Trade & Commerce Nyakwesi Motsa, Administration & Finance Manager Sweden International University of Entrepreneurship and Technology Association (IUET) Thomas Andersson, President Switzerland University of St. Gallen, Executive School of Management, Technology and Law (ES-HSG) Rubén Rodriguez Startz, Head of Project Tobias Trütsch, Communications Manager Taiwan, China National Development Council Chien-Liang Chen, Deputy Minister Chung Chung Shieh, Researcher, Economic Research Department Pao-Jui Chen, Director, Economic Research Department Tanzania Research for Policy Development (REPOA) Cornel Jahari, Assistant Researcher Blandina Kilama, Researcher Donald Mmari, Director of Research on Growth and Development Thailand Chulalongkorn Business School, Chulalongkorn University Pasu Decharin, Dean Siri-on Setamanit, Assistant Dean x The Global Competitiveness Report 2014–2015 Timor-Leste East Timor Development Agency (ETDA) Palmira Pires, Director Octavio Ximenes, Field Officer Chambers of Commerce and Industry of Timor-Leste Kathleen Fon Ha Tchong Goncalves, Vice-President Trinidad and Tobago Arthur Lok Jack Graduate School of Business Miguel Carillo, Executive Director and Professor of Strategy Nirmala Harrylal, Director, Internationalisation and Institutional Relations Centre Richard A Ramsawak, Deputy Director, Centre of Strategy and Competitiveness The University of the West Indies, St. Augustine Rolph Balgobin, NGC Distinguished Fellow, Department of Management Studies Tunisia Institut Arabe des Chefs d’Entreprises Ahmed Bouzguenda, President Majdi Hassen, Executive Counsellor Turkey TUSIAD Sabanci University Competitiveness Forum Izak Atiyas, Director Ozan Bakıs, Project Consultant Sezen Ugurlu, Project Specialist Uganda Kabano Research and Development Centre Robert Apunyo, Program Manager Delius Asiimwe, Executive Director Anna Namboonze, Research Associate Ukraine CASE Ukraine, Center for Social and Economic Research Dmytro Boyarchuk, Executive Director Vladimir Dubrovskiy, Leading Economist United Arab Emirates Department of Economic Development—Abu Dhabi, Competitiveness Office of Abu Dhabi (COAD) Mohammed Omar Abdulla, Undersecretary Dubai Competitiveness Office H.E. Khaled Ibrahim Al kassim, Deputy Director General for Executive Affairs Zayed University Abdullah AlAmiri, Provost Emirates Competitiveness Council H.E. Abdulla Nasser Lootah, Secretary General United Kingdom LSE Enterprise Ltd Adam Austerfield, Project Director Elitsa Garnizova, Project Officer & Researcher Robyn Klingler-Vidra, Senior Researcher Uruguay Universidad ORT Uruguay Bruno Gili, Professor Isidoro Hodara, Professor Venezuela CONAPRI—The Venezuelan Council for Investment Promotion Litsay Guerrero, Economic Affairs and Investor Services Manager Eduardo Porcarelli, Executive Director © 2014 World Economic Forum Partner Institutes Vietnam Ho Chi Minh City Institute for Development Studies (HIDS) Nguyen Trong Hoa, Associate Professor and Director Du Phuoc Tan, Head of Urban Management Studies Department Trieu Thanh Son, Deputy Head of Research Management Department Yemen Yemeni Business Club (YBC) Fathi Abdulwasa Hayel Saeed, Chairman Mohammed Ismail Hamanah, Executive Director Fawzi Al-Yemany, Project Coordinator MARcon Marketing Consulting Margret Arning, Managing Director Zambia Institute of Economic and Social Research (INESOR), University of Zambia Patricia Funjika, Research Fellow Jolly Kamwanga, Senior Research Fellow and Project Coordinator Mubiana Macwan’gi, Director and Professor Zimbabwe Graduate School of Management, University of Zimbabwe A. M. Hawkins, Professor Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Nicaragua, Panama INCAE Business School, Latin American Center for Competitiveness and Sustainable Development (CLACDS) Ronald Arce, Researcher Arturo Condo, Rector Lawrence Pratt, Director Liberia and Sierra Leone FJP Development and Management Consultants Omodele R. N. Jones, Chief Executive Officer © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 xi 2014 World Economic Forum Preface ESPEN BARTH EIDE Managing Director and Member of the Managing Board, World Economic Forum The Global Competitiveness Report 2014–2015 is being launched at a time when the global economy seems to be finally leaving behind the worst and longestlasting financial and economic crisis of the last 80 years. However, this resurgence is moving at a less decisive pace than it has after previous downturns, and heightened risks looming on the horizon could derail the global recovery. Much of the growth in recent years has taken place because of the extraordinary and bold monetary policies in countries such as the United States, Japan, and the United Kingdom. As the economy improves in these countries, a normalization of monetary policy with tightening financial conditions could have an impact on both advanced and emerging economies. Moreover, the strained geopolitical scenarios with rising tensions in a number of regions can also have negative consequences for the global economic outlook. Finally, many countries are suffering from accelerating income inequalities; often these inequalities are lasting effects of the crisis that are creating domestic social tensions with potential global consequences. Against this backdrop, policymakers as well as business and civil society leaders must work together in order to ensure robust economic growth that supports more-inclusive economies. Economic and social agendas must go hand in hand and focus on reforms that will render economies more productive and open up new and better job opportunities for all segments of the population. Better assigning available resources to productive activities is crucial and requires wellfunctioning markets. In addition, as indicated in previous editions of this Report, strong institutions, available talent, and a high capacity to innovate hold the key for the success of any economy. These elements will continue to be even more essential in the future. For 35 years, this Report has shed light on the key factors and their mechanisms and interrelations that determine economic growth and the level of present and future prosperity in a country. In doing so, since its inception the Report has aimed to build a shared understanding of the main strengths and weaknesses of each of the economies covered, so that stakeholders can work together on shaping economic agendas that can address challenges and create enhanced opportunities. In this context, policymakers, businesses, and citizens increasingly recognize the need for economic growth to be balanced by providing opportunities and benefits for all segments of the population and by being respectful of the environment. In sum, the social and environmental dimensions of an economy need to be fully considered in any growth or development agenda. Although the relationship between productivity, social development, and environmental stewardship is complex, the Forum has continued its research into how sustainability relates to competitiveness and economic performance. Chapter 1.2 of this Report presents the current thinking at the Forum on sustainable competitiveness, a concept introduced three years ago in our Report series, and one that aims to analyze how country competitiveness can be assessed once issues of social and environmental sustainability are taken into account. This year’s Report provides an overview of the competitiveness performance of 144 economies, and thus continues to be the most comprehensive assessment of its kind globally. It contains a detailed profile for each of the economies included in the study, as well as an extensive section of data tables with global rankings covering over 100 indicators. This Report is one of the flagship publications within the Forum’s Global Competitiveness and Benchmarking Network, which produces a number of related research studies aimed at supporting countries in their transformation efforts and raising awareness about the need to adopt holistic and integrated frameworks for understanding complex phenomena such as competitiveness or global risks. The Global Competitiveness Report 2014–2015 could not have been put together without the thought leadership of Professor Xavier Sala-i-Martín at Columbia University, who has provided ongoing intellectual support for our competitiveness research. Further, this Report would have not been possible without the collaboration and dedication of our network of over 160 Partner Institutes worldwide. The Partner Institutes are instrumental in carrying out the Executive Opinion Survey, which provides the foundation data of this Report as well as imparting the results of the Report at the national level. We would also like to convey our sincere gratitude to all the business executives © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 xiii Preface around the world who took the time to participate in our Executive Opinion Survey. We are grateful to the members of our Advisory Board on Competitiveness and Sustainability, who have provided their valuable time and knowledge to help us develop the framework on sustainability and competitiveness presented in this Report. Appreciation also goes to colleagues at the World Economic Forum, namely Jennifer Blanke, Chief Economist; and Margareta Drzeniek Hanouz, Head of The Global Competitiveness and Benchmarking Network, as well as team members Beñat Bilbao-Osorio, Ciara Browne, Gemma Corrigan, Roberto Crotti, Attilio Di Batista, Gaëlle Dreyer, Caroline Galvan, Thierry Geiger, Tania Gutknecht, and Cecilia Serin. xiv The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Measuring Competitiveness 2014 World Economic Forum CHAPTER 1.1 The Global Competitiveness Index 2014–2015: Accelerating a Robust Recovery to Create Productive Jobs and Support Inclusive Growth XAVIER SALA-I-MARTÍN BEÑAT BILBAO-OSORIO ATTILIO DI BATTISTA MARGARETA DRZENIEK HANOUZ CAROLINE GALVAN THIERRY GEIGER World Economic Forum This new edition of The Global Competitiveness Report is launched at a time when the world seems to be finally emerging from the worst financial and economic crisis of the past 80 years and returning to a pre-crisis situation: large interest rate spreads for public debt in hard-hit countries are falling; banking systems seem more robust, even if financial reform has not yet been completed; and access to credit, while still limited, is slowly recovering. Overall, growth prospects in advanced economies are better than they have been in recent years, albeit very unevenly distributed. The recovery in the United States seems to be comfortably grounded with strong output and employment figures. Japan’s economy, while still needing to translate Abenomics into stronger private demand, seems to be waking up after two decades of stagnation. In Europe the picture is more mixed, with many countries now recording stronger growth and returning to trend growth rates, while some others continue to suffer from weak growth driven by protracted internal demand, high unemployment, and financial fragmentation. Emerging economies are forecasted to grow more modestly than they did in the past. After several years of doing very well and leading global growth, their performance may be affected by a changing environment characterized by greater difficulty accessing capital as well as lower prices for the commodities that fueled past growth—a trend that is also likely to affect many developing economies. To a large extent, the improvement of the global economic outlook has been the result of bold monetary policies carried out by the Federal Reserve and Central Banks in countries such as the United Kingdom and Japan to substantially expand the amount of money available in the economy. As the economic situation improves, a normalization of the monetary policy with a tightening of the financial conditions for both advanced and, most notably, emerging economies could jeopardize the rather positive forecast, especially if productivityenhancing investment levels do not manage to pick up. Investment and the recovery more broadly will also be influenced by the fact that low inflation, or even deflation, in key advanced economies remains a tangible risk that could derail recovery because real interest rates may rise, increasing the burden of public debt and leading to a stagnation of consumption and investment rates. In addition, in recent months, a strained geopolitical situation has emerged. Tensions in Ukraine with implications for the relationship between Russia and much of the Western world, as well as between China and Japan, have become more evident. Although the implications of these tensions have not yet fully materialized, they could cause a great deal of disruption in the highly interdependent, global macroeconomic outlook. Finally, one of the legacies of the economic crisis is the acceleration of income inequality in many © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 3 1.1: The Global Competitiveness Index 2014–2015 countries, which can cause important economic and social tensions if not properly addressed. Against this backdrop, it is clear that this is no time to be complacent. The risks to the global economic outlook remain very real. Past measures, mainly based on expansionary monetary policies, have helped to temporarily avoid a deeper recession and set the foundations for the global recovery in the short term. However, ensuring sustained growth in the long run will depend not on monetary policies, but on boosting the level of productivity of economies. In order to achieve higher levels of productivity, new actions in terms of engaging in much-needed structural reform and productivity-enhancing investments are required. These measures are not only important, as they have always been, but they are also becoming urgent if we are to solidify and accelerate the recovery to create new opportunities and new jobs for larger segments of the population. For more than three decades, the World Economic Forum’s annual Global Competitiveness Report has studied and benchmarked the many factors underpinning national competitiveness. From the onset, the goal has been to provide insight and stimulate discussion among all stakeholders about the best strategies and policies to help countries to overcome the obstacles to improving competitiveness. In the current economic context, this work is a critical reminder of the importance of sound structural economic fundamentals for sustained growth. Since 2005, the World Economic Forum has based its competitiveness analysis on the Global Competitiveness Index (GCI), a comprehensive tool that measures the microeconomic and macroeconomic foundations of national competitiveness.1 Recognizing that competitiveness may also be analyzed at other geographical levels, the Forum—through its Global Agenda Council on Competitiveness—has engaged in a parallel strand of work to analyze the drivers of competitiveness at the level of the city. Box 1 presents some of the main conclusions of this work. In addition, in order to better place the discussion of competitiveness into a societal and environmental context, the Forum has begun exploring the complex relationship between competitiveness and sustainability as measured by its social and environmental dimension. The work carried out to date on these important aspects of human and economic development is described in Chapter 1.2 of this Report. The final objective of the Forum’s work in this area is to inform a series of structured multi-stakeholder dialogues that can raise awareness and rally support geared toward the transformation of countries, regions, or cities to assist them to become more competitive, offer enhanced opportunities, and raise prosperity. 4 The Global Competitiveness Report 2014–2015 THE 12 PILLARS OF COMPETITIVENESS We define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country. The level of productivity, in turn, sets the level of prosperity that can be reached by an economy. The productivity level also determines the rates of return obtained by investments in an economy, which in turn are the fundamental drivers of its growth rates. In other words, a more competitive economy is one that is likely to grow faster over time. The concept of competitiveness thus involves static and dynamic components. Although the productivity of a country determines its ability to sustain a high level of income, it is also one of the central determinants of its return on investment, which is one of the key factors explaining an economy’s growth potential. Many determinants drive productivity and competitiveness. Understanding the factors behind this process has occupied the minds of economists for hundreds of years, engendering theories ranging from Adam Smith’s focus on specialization and the division of labor to neoclassical economists’ emphasis on investment in physical capital and infrastructure,2 and, more recently, to interest in other mechanisms such as education and training, technological progress, macroeconomic stability, good governance, firm sophistication, and market efficiency, among others. While all of these factors are likely to be important for competitiveness and growth, they are not mutually exclusive—two or more of them can be significant at the same time, and in fact that is what has been shown in the economic literature.3 This open-endedness is captured within the GCI by including a weighted average of many different components, each measuring a different aspect of competitiveness. In addition, Appendix A assesses statistically the robustness of the GCI as an appropriate estimate of the level of productivity and competitiveness of an economy. The components are grouped into 12 pillars of competitiveness: First pillar: Institutions The institutional environment is determined by the legal and administrative framework within which individuals, firms, and governments interact to generate wealth. The importance of a sound and fair institutional environment has become all the more apparent during the recent economic and financial crisis and is especially crucial for further solidifying the fragile recovery, given the increasing role played by the state at the international level and for the economies of many countries. The quality of institutions has a strong bearing on competitiveness and growth.4 It influences investment decisions and the organization of production and plays a key role in the ways in which societies distribute the © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Box 1: The competitiveness of cities: A taxonomy of drivers and success factors by the Global Agenda Council on Competitiveness More than ever, cities are the lifeblood of the global economy. Increasingly they determine the wealth of nations, which is why the World Economic Forum’s Global Agenda Council on Competitiveness has recently published a study on the competitiveness of cities.1 “Competitiveness” hinges on the productivity of the city—that is, its ability to use available inputs efficiently to drive sustainable economic growth and prosperity. Never before has the world urbanized at the speed and scale that it is doing today. As of 2010, for the first time in history, over half the world’s population lives in cities. Urban dwellers already account for over 80 percent of global GDP. According to the United Nations,2 globally, an additional 2.5 billion people will move to urban areas by 2050. For the foreseeable future, rapid urbanization will be an almostexclusively non-Western affair: 94 percent of those who will move to cities in the next few decades will come from the developing world. McKinsey Global Institute estimates that, by 2025, the developing world’s top 443 cities will account for close to half of global GDP growth and 18 percent of global GDP.3 These cities will contain the bulk of about 1 billion new middle-class consumers. Through 33 case studies of cities around the world— including cities with different endowments, at different stages of development, and with different levels of success—the Forum’s study extracts key lessons for city competitiveness and offers the following checklist of four items, which constitute a “what-to-reform, how-to-reform” agenda: The study also draws a set of concluding observations that need to be taken into account when engaging in reform process: First, successful cities are those that are flexible and adapt quickly to changing conditions. That observation is borne out by the case studies of successful cities in the study. The alternative is to get stuck in mono-industrial, mono-cultural decline. Second, the right mix of priorities requires tailoring to specific conditions and stages of city development. Most obviously, priorities for a Western city with a stable population, facing sluggish growth, unemployment, and an aging population will be quite different from those of an emerging-market city with lower income levels, high growth potential, a quickly expanding population, and big gaps in infrastructure. And finally, reforms at the municipal level are usually more feasible than at the national level, even when the same reforms seem impossible in national capitals. Urbanization trends enlarge these possibilities. Cities should grasp this opportunity, experiment with new rules, and put reforms on a fast track. Notes 1 Members of the Global Agenda Council on Competitiveness (2012–2014) are: Razeen Sally, Visiting Associate Professor, Lee Kuan Yew School of Public Policy, National University of Singapore, Singapore (Chair); Clément Gignac, Chief Economist and Senior Vice-President, Industrial Alliance Insurance and Financial Services, Canada (Vice Chair); Deborah L. Wince-Smith, President, Council on Competitiveness, USA (Vice Chair); Orlando Ayala, Chairman, Emerging Markets, Microsoft Corporation, USA; Jon Azua, President and Chief Executive Officer, Enovatinglab, Spain; Catalina Crane, High Presidential Adviser for Public and Private Affairs, Office of the President of Colombia, Colombia; Mohamed El Dahshan, Regional Economist, African Development Bank; Janamitra Devan, Independent Adviser, Strategy and Leadership, USA; Gao Changlin, Deputy Director-General, Exchange, Development and Service Center for Science and Technology (STTC), People’s Republic of China; Amina Ghanem, Executive Director, Egyptian National Competitiveness Council, Egypt; Arancha Gonzalez Laya, Executive Director, International Trade Centre (ITC), Geneva; Ghassan Hasbani, Chief Executive Officer, Graycoats, Lebanon; Marie-Gabrielle Ineichen-Fleisch, State Secretary for Economic Affairs of Switzerland; Kevin X. Murphy, President and Chief Executive Officer, J.E. Austin Associates (JAA), USA; Arvind Panagariya, Jagdish Bhagwati Professor of Indian Political Economy, School of International and Public Affairs (SIPA), Columbia University, USA; Xavier Salai-Martin, Professor, Economics Department, Columbia University, USA; Tong Jiadong, Vice-President, Nankai University, People’s Republic of China; and Jose Antonio Torre Medina, Director, Urbanism and Infrastructure, Monterrey Institute of Technology and Higher Education (ITESM), Mexico. • First, think institutions—the decision-making framework of the city. Leadership and vision—a clear, far-sighted view of where cities should head, and a single-minded practical will to ensure they get there—show the power of city leaders as CEOs. • Second, think of the regulatory framework for the city’s business climate. “Getting the basics right”—which involves stable and prudent fiscal policies, including efficient and simple taxation; a flexible labor market; openness to trade and foreign investment; simple and transparent business regulation—is the primary lesson for good public policy, at both national and municipal levels. Cities should develop their own foreign economic policies on trade, foreign investment, tourism, and attracting foreign talent, and go global as far as they can. • Third, think “hard connectivity”—the city’s core physical infrastructure. Cities need a mix of planning and organic growth, which are complements of one another, not substitutes for each other. Manhattan is a great example, given both its street grid and the organic expansion it has experienced over the past two centuries. • Fourth, think “soft connectivity”—the city’s social capital. Education is the ultimate soft connectivity. US cities such as Boston, Pittsburgh, and St. Louis have escaped postindustrial decline and specialized in knowledge-intensive niches by capitalizing on their strengths in education. Next, cities need to facilitate digital infrastructure to support human-computing interfaces that empower individuals. And making cities more liveable—improving the quality of urban life—must become a higher priority for upper-middle-income and high-income cities. The World Economic Forum’s Global Agenda Council on Competitiveness seeks to raise awareness of the importance of competitiveness for economic growth and to identify ways countries can systematically transform their economies. It monitors key trends, identifies global risks, charts relationships, addresses gaps in knowledge and recommends ways to address global challenges. 2 United Nations 2014. 3 Dobbs et al. 2012, p. 5. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 5 1.1: The Global Competitiveness Index 2014–2015 benefits and bear the costs of development strategies and policies. For example, owners of land, corporate shares, or intellectual property are unwilling to invest in the improvement and upkeep of their property if their rights as owners are not protected.5 The role of institutions goes beyond the legal framework. Government attitudes toward markets and freedoms and the efficiency of its operations are also very important: excessive bureaucracy and red tape,6 overregulation, corruption, dishonesty in dealing with public contracts, lack of transparency and trustworthiness, inability to provide appropriate services for the business sector, and political dependence of the judicial system impose significant economic costs to businesses and slow the process of economic development. In addition, the proper management of public finances is critical for ensuring trust in the national business environment. Indicators capturing the quality of government management of public finances are therefore included here to complement the measures of macroeconomic stability captured in pillar 3. Although the economic literature has focused mainly on public institutions, private institutions are also an important element in the process of creating wealth. The global financial crisis, along with numerous corporate scandals, has highlighted the relevance of accounting and reporting standards and transparency for preventing fraud and mismanagement, ensuring good governance, and maintaining investor and consumer confidence. An economy is well served by businesses that are run honestly, where managers abide by strong ethical practices in their dealings with the government, other firms, and the public at large.7 Private-sector transparency is indispensable to business; it can be brought about through the use of standards as well as auditing and accounting practices that ensure access to information in a timely manner.8 Second pillar: Infrastructure Extensive and efficient infrastructure is critical for ensuring the effective functioning of the economy, as it is an important factor in determining the location of economic activity and the kinds of activities or sectors that can develop within a country. Well-developed infrastructure reduces the effect of distance between regions, integrating the national market and connecting it at low cost to markets in other countries and regions. In addition, the quality and extensiveness of infrastructure networks significantly impact economic growth and reduce income inequalities and poverty in a variety of ways.9 A well-developed transport and communications infrastructure network is a prerequisite for the access of less-developed communities to core economic activities and services. 6 The Global Competitiveness Report 2014–2015 Effective modes of transport—including quality roads, railroads, ports, and air transport—enable entrepreneurs to get their goods and services to market in a secure and timely manner and facilitate the movement of workers to the most suitable jobs. Economies also depend on electricity supplies that are free from interruptions and shortages so that businesses and factories can work unimpeded. Finally, a solid and extensive telecommunications network allows for a rapid and free flow of information, which increases overall economic efficiency by helping to ensure that businesses can communicate and decisions are made by economic actors taking into account all available relevant information. Third pillar: Macroeconomic environment The stability of the macroeconomic environment is important for business and, therefore, is significant for the overall competitiveness of a country.10 Although it is certainly true that macroeconomic stability alone cannot increase the productivity of a nation, it is also recognized that macroeconomic disarray harms the economy, as we have seen in recent years, conspicuously in the European context. The government cannot provide services efficiently if it has to make high-interest payments on its past debts. Running fiscal deficits limits the government’s future ability to react to business cycles. Firms cannot operate efficiently when inflation rates are out of hand. In sum, the economy cannot grow in a sustainable manner unless the macro environment is stable. Macroeconomic stability captured the attention of the public most recently when some advanced economies, notably the United States and some European countries, needed to take urgent action to prevent macroeconomic instability when their public debt reached unsustainable levels in the wake of the global financial crisis. It is important to note that this pillar evaluates the stability of the macroeconomic environment, so it does not directly take into account the way in which public accounts are managed by the government. This qualitative dimension is captured in the institutions pillar described above. Fourth pillar: Health and primary education A healthy workforce is vital to a country’s competitiveness and productivity. Workers who are ill cannot function to their potential and will be less productive. Poor health leads to significant costs to business, as sick workers are often absent or operate at lower levels of efficiency. Investment in the provision of health services is thus critical for clear economic, as well as moral, considerations.11 In addition to health, this pillar takes into account the quantity and quality of the basic education received by the population, which is increasingly important in today’s © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 economy. Basic education increases the efficiency of each individual worker. Moreover, often workers who have received little formal education can carry out only simple manual tasks and find it much more difficult to adapt to more advanced production processes and techniques, and therefore they contribute less to devising or executing innovations. In other words, lack of basic education can become a constraint on business development, with firms finding it difficult to move up the value chain by producing more sophisticated or valueintensive products. Fifth pillar: Higher education and training Quality higher education and training is crucial for economies that want to move up the value chain beyond simple production processes and products.12 In particular, today’s globalizing economy requires countries to nurture pools of well-educated workers who are able to perform complex tasks and adapt rapidly to their changing environment and the evolving needs of the production system. This pillar measures secondary and tertiary enrollment rates as well as the quality of education as evaluated by business leaders. The extent of staff training is also taken into consideration because of the importance of vocational and continuous on-thejob training—which is neglected in many economies—for ensuring a constant upgrading of workers’ skills. Sixth pillar: Goods market efficiency Countries with efficient goods markets are well positioned to produce the right mix of products and services given their particular supply-and-demand conditions, as well as to ensure that these goods can be most effectively traded in the economy. Healthy market competition, both domestic and foreign, is important in driving market efficiency, and thus business productivity, by ensuring that the most efficient firms, producing goods demanded by the market, are those that thrive. The best possible environment for the exchange of goods requires a minimum of government intervention that impedes business activity. For example, competitiveness is hindered by distortionary or burdensome taxes and by restrictive and discriminatory rules on foreign direct investment (FDI)—which limit foreign ownership—as well as on international trade. The recent economic crisis has highlighted the high degree of interdependence of economies worldwide and the degree to which growth depends on open markets. Protectionist measures are counterproductive as they reduce aggregate economic activity. Market efficiency also depends on demand conditions such as customer orientation and buyer sophistication. For cultural or historical reasons, customers may be more demanding in some countries than in others. This can create an important competitive advantage, as it forces companies to be more innovative and customer-oriented and thus imposes the discipline necessary for efficiency to be achieved in the market. Seventh pillar: Labor market efficiency The efficiency and flexibility of the labor market are critical for ensuring that workers are allocated to their most effective use in the economy and provided with incentives to give their best effort in their jobs. Labor markets must therefore have the flexibility to shift workers from one economic activity to another rapidly and at low cost, and to allow for wage fluctuations without much social disruption.13 The importance of the latter has been dramatically highlighted by events in Arab countries, where rigid labor markets were an important cause of high youth unemployment. Youth unemployment continues to be high in a number of European countries as well, where important barriers to entry into the labor market remain in place. Efficient labor markets must also ensure clear strong incentives for employees and efforts to promote meritocracy at the workplace, and they must provide equity in the business environment between women and men. Taken together these factors have a positive effect on worker performance and the attractiveness of the country for talent, two aspects that are growing more important as talent shortages loom on the horizon. Eighth pillar: Financial market development The financial and economic crisis has highlighted the central role of a sound and well-functioning financial sector for economic activities. An efficient financial sector allocates the resources saved by a nation’s citizens, as well as those entering the economy from abroad, to their most productive uses. It channels resources to those entrepreneurial or investment projects with the highest expected rates of return rather than to the politically connected. A thorough and proper assessment of risk is therefore a key ingredient of a sound financial market. Business investment is also critical to productivity. Therefore economies require sophisticated financial markets that can make capital available for private-sector investment from such sources as loans from a sound banking sector, well-regulated securities exchanges, venture capital, and other financial products. In order to fulfill all those functions, the banking sector needs to be trustworthy and transparent, and—as has been made so clear recently—financial markets need appropriate regulation to protect investors and other actors in the economy at large. Ninth pillar: Technological readiness In today’s globalized world, technology is increasingly essential for firms to compete and prosper. The technological readiness pillar measures the agility with which an economy adopts existing technologies to © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 7 1.1: The Global Competitiveness Index 2014–2015 enhance the productivity of its industries, with specific emphasis on its capacity to fully leverage information and communication technologies (ICTs) in daily activities and production processes for increased efficiency and enabling innovation for competitiveness.14 ICTs have evolved into the “general purpose technology” of our time,15 given their critical spillovers to other economic sectors and their role as industry-wide enabling infrastructure. Therefore ICT access and usage are key enablers of countries’ overall technological readiness. Whether the technology used has or has not been developed within national borders is irrelevant for its ability to enhance productivity. The central point is that the firms operating in the country need to have access to advanced products and blueprints and the ability to absorb and use them. Among the main sources of foreign technology, FDI often plays a key role, especially for countries at a less advanced stage of technological development. It is important to note that, in this context, the level of technology available to firms in a country needs to be distinguished from the country’s ability to conduct blue-sky research and develop new technologies for innovation that expand the frontiers of knowledge. That is why we separate technological readiness from innovation, captured in the 12th pillar, described below. Tenth pillar: Market size The size of the market affects productivity since large markets allow firms to exploit economies of scale. Traditionally, the markets available to firms have been constrained by national borders. In the era of globalization, international markets have become a substitute for domestic markets, especially for small countries. Vast empirical evidence shows that trade openness is positively associated with growth. Even if some recent research casts doubts on the robustness of this relationship, there is a general sense that trade has a positive effect on growth, especially for countries with small domestic markets.16 Thus exports can be thought of as a substitute for domestic demand in determining the size of the market for the firms of a country.17 By including both domestic and foreign markets in our measure of market size, we give credit to export-driven economies and geographic areas (such as the European Union) that are divided into many countries but have a single common market. Eleventh pillar: Business sophistication There is no doubt that sophisticated business practices are conducive to higher efficiency in the production of goods and services. Business sophistication concerns two elements that are intricately linked: the quality of a country’s overall business networks and the quality of individual firms’ operations and strategies. These factors are especially important for countries at an advanced 8 The Global Competitiveness Report 2014–2015 stage of development when, to a large extent, the more basic sources of productivity improvements have been exhausted. The quality of a country’s business networks and supporting industries, as measured by the quantity and quality of local suppliers and the extent of their interaction, is important for a variety of reasons. When companies and suppliers from a particular sector are interconnected in geographically proximate groups, called clusters, efficiency is heightened, greater opportunities for innovation in processes and products are created, and barriers to entry for new firms are reduced. Individual firms’ advanced operations and strategies (branding, marketing, distribution, advanced production processes, and the production of unique and sophisticated products) spill over into the economy and lead to sophisticated and modern business processes across the country’s business sectors. Twelfth pillar: Innovation Innovation can emerge from new technological and nontechnological knowledge. Non-technological innovations are closely related to the know-how, skills, and working conditions that are embedded in organizations and are therefore largely covered by the eleventh pillar of the GCI. The final pillar of competitiveness focuses on technological innovation. Although substantial gains can be obtained by improving institutions, building infrastructure, reducing macroeconomic instability, or improving human capital, all these factors eventually run into diminishing returns. The same is true for the efficiency of the labor, financial, and goods markets. In the long run, standards of living can be largely enhanced by technological innovation. Technological breakthroughs have been at the basis of many of the productivity gains that our economies have historically experienced. These range from the industrial revolution in the 18th century and the invention of the steam engine and the generation of electricity to the more recent digital revolution. The latter is not only transforming the way things are being done, but also opening a wider range of new possibilities in terms of products and services. Innovation is particularly important for economies as they approach the frontiers of knowledge, and the possibility of generating more value by merely integrating and adapting exogenous technologies tends to disappear.18 Although less-advanced countries can still improve their productivity by adopting existing technologies or making incremental improvements in other areas, for those that have reached the innovation stage of development this is no longer sufficient for increasing productivity. Firms in these countries must design and develop cutting-edge products and processes to maintain a competitive edge and move toward even higher value-added activities. This progression requires an environment that is conducive to innovative activity and supported by both the public and the private © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Figure 1: The Global Competitiveness Index framework GLOBAL COMPETITIVENESS INDEX Basic requirements subindex Pillar 1. Institutions Pillar 1. Institutions Pillar 2. Infrastructure Pillar 2. Infrastructure Pillar 3. Macroeconomic Pillar 3. Macroeconomic environment environment Pillar 4. Health and primary Pillar 4. Health and primary education education Efficiency enhancers subindex Pillar 5. Higher education Pillar 5. Higher education and and training training Pillar 6. Goods market efficiency Pillar 6. Goods market efficiency Innovation and sophistication factors subindex Pillar 11. Business sophistication Pillar 11. Business sophistication Pillar 12. Innovation Pillar 12. Innovation Pillar 7. Labor market efficiency Pillar 7. Labor market efficiency Pillar Technological Pillar 8. 9.Financial marketreadiness development Pillar 8. Financial market developmentreadiness Pillar 9. Technological Pillar 10.10. Market sizesize Pillar Market Key for Key for Key for factor-driven efficiency-driven innovation-driven economies economies economies Note: See the appendix for the detailed structure of the GCI. sectors. In particular, it means sufficient investment in research and development (R&D), especially by the private sector; the presence of high-quality scientific research institutions that can generate the basic knowledge needed to build the new technologies; extensive collaboration in research and technological developments between universities and industry; and the protection of intellectual property, in addition to high levels of competition and access to venture capital and financing that are analyzed in other pillars of the Index. In light of the recent sluggish recovery and rising fiscal pressures faced by advanced economies, it is important that public and private sectors resist pressures to cut back on the R&D spending that will be so critical for sustainable growth into the future. The interrelation of the 12 pillars Although we report the results of the 12 pillars of competitiveness separately, it is important to keep in mind that they are not independent: they tend to reinforce each other, and a weakness in one area often has a negative impact in others. For example, a strong innovation capacity (pillar 12) will be very difficult to achieve without a healthy, well-educated and trained workforce (pillars 4 and 5) that is adept at absorbing new technologies (pillar 9), and without sufficient financing (pillar 8) for R&D or an efficient goods market that makes it possible to take new innovations to market (pillar 6). Although the pillars are aggregated into a single index, measures are reported for the 12 pillars separately because such details provide a sense of the specific areas in which a particular country needs to improve. Appendix B describes the exact composition of the GCI and the technical details of its construction. STAGES OF DEVELOPMENT AND THE WEIGHTED INDEX While all of the pillars described above will matter to a certain extent for all economies, it is clear that they will affect different economies in different ways: the best way for Cambodia to improve its competitiveness is not the same as the best way for France to do so. This is because Cambodia and France are in different stages of development: as countries move along the development path, wages tend to increase and, in order to sustain this higher income, labor productivity must improve. In line with well-known economic theory of stages of development, the GCI assumes that, in the first stage, the economy is factor-driven and countries compete based on their factor endowments—primarily © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 9 1.1: The Global Competitiveness Index 2014–2015 Table 1: Subindex weights and income thresholds for stages of development STAGE OF DEVELOPMENT Stage 1: Factor-driven Transition from stage 1 to stage 2 <2,000 2,000–2,999 3,000–8,999 9,000–17,000 Weight for basic requirements 60% 40–60% 40% 20–40% 20% Weight for efficiency enhancers 35% 35–50% 50% 50% 50% 5% 5–10% 10% 10–30% 30% GDP per capita (US$) thresholds* Weight for innovation and sophistication factors Stage 2: Efficiency-driven Transition from stage 2 to stage 3 Stage 3: Innovation-driven >17,000 Note: See individual country/economy profiles for the exact applied weights. * For economies with a high dependency on mineral resources, GDP per capita is not the sole criterion for the determination of the stage of development. See text for details. unskilled labor and natural resources.19 Companies compete on the basis of price and sell basic products or commodities, with their low productivity reflected in low wages. Maintaining competitiveness at this stage of development hinges primarily on well-functioning public and private institutions (pillar 1), a well-developed infrastructure (pillar 2), a stable macroeconomic environment (pillar 3), and a healthy workforce that has received at least a basic education (pillar 4). As a country becomes more competitive, productivity will increase and wages will rise with advancing development. Countries will then move into the efficiency-driven stage of development, when they must begin to develop more efficient production processes and increase product quality because wages have risen and they cannot increase prices. At this point, competitiveness is increasingly driven by higher education and training (pillar 5), efficient goods markets (pillar 6), well-functioning labor markets (pillar 7), developed financial markets (pillar 8), the ability to harness the benefits of existing technologies (pillar 9), and a large domestic or foreign market (pillar 10). Finally, as countries move into the innovation-driven stage, wages will have risen by so much that they are able to sustain those higher wages and the associated standard of living only if their businesses are able to compete with new and unique products. At this stage, companies must compete by producing new and different goods using the most sophisticated production processes (pillar 11) and by innovating new ones (pillar 12). The GCI takes the stages of development into account by attributing higher relative weights to those pillars that are more relevant for an economy given its particular stage of development. That is, although all 12 pillars matter to a certain extent for all countries, the relative importance of each one depends on a country’s particular stage of development. To implement this concept, the pillars are organized into three subindexes, each critical to a particular stage of development. The basic requirements subindex groups those pillars most critical for countries in the factor-driven stage. The efficiency enhancers subindex includes 10 The Global Competitiveness Report 2014–2015 those pillars critical for countries in the efficiency-driven stage. And the innovation and sophistication factors subindex includes the pillars critical to countries in the innovation-driven stage. The three subindexes are shown in Figure 1. The weights attributed to each subindex in every stage of development are shown in Table 1. To obtain the weights shown in the table, a maximum likelihood regression of gross domestic product (GDP) per capita was run against each subindex for past years, allowing for different coefficients for each stage of development.20 The rounding of these econometric estimates led to the choice of weights displayed in Table 1. Implementation of stages of development Two criteria are used to allocate countries into stages of development. The first is the level of GDP per capita at market exchange rates. This widely available measure is used as a proxy for wages because internationally comparable data on wages are not available for all countries covered. The thresholds used are also shown in Table 1. A second criterion is used to adjust for countries that, based on income, would have moved beyond stage 1, but where prosperity is based on the extraction of resources. This is measured by the share of exports of mineral goods in total exports (goods and services), and assumes that countries with more than 70 percent of their exports made up of mineral products (measured using a five-year average) are to a large extent factor driven.21 However, for some resource-based economies that have reached very high levels of income, the capacity to increase the productivity of any other sector beyond mineral production will be based on the country’s capacity to boost innovation, because adopting technology from abroad is not sufficient to increase productivity enough to sustain their high wage levels. At the same time, these countries can afford to invest in innovation, given their high income. Consequently, countries that are resource driven and significantly wealthier than economies at the technological frontier are classified in the innovation-driven stage.22 Any countries falling between two of the three stages are considered to be “in transition.” For these countries, the weights © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Table 2: Countries/economies at each stage of development Stage 1: Factor-driven (37 economies) Transition from stage 1 to stage 2 (16 economies) Stage 2: Efficiency-driven (30 economies) Transition from stage 2 to stage 3 (24 economies) Stage 3: Innovation-driven (37 economies) Bangladesh Burkina Faso Burundi Cambodia Cameroon Chad Côte d'Ivoire Ethiopia Gambia, The Ghana Guinea Haiti India Kenya Kyrgyz Republic Lao PDR Lesotho Madagascar Malawi Mali Mauritania Mozambique Myanmar Nepal Nicaragua Nigeria Pakistan Rwanda Senegal Sierra Leone Tajikistan Tanzania Uganda Vietnam Yemen Zambia Zimbabwe Algeria Angola Azerbaijan Bhutan Bolivia Botswana Gabon Honduras Iran, Islamic Rep. Kuwait Libya Moldova Mongolia Philippines Saudi Arabia Venezuela Albania Armenia Bulgaria Cape Verde China Colombia Dominican Republic Egypt El Salvador Georgia Guatemala Guyana Indonesia Jamaica Jordan Macedonia, FYR Montenegro Morocco Namibia Paraguay Peru Romania Serbia South Africa Sri Lanka Swaziland Thailand Timor-Leste Tunisia Ukraine Argentina Bahrain Barbados Brazil Chile Costa Rica Croatia Hungary Kazakhstan Latvia Lebanon Lithuania Malaysia Mauritius Mexico Oman Panama Poland Russian Federation Seychelles Suriname Turkey United Arab Emirates Uruguay Australia Austria Belgium Canada Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hong Kong SAR Iceland Ireland Israel Italy Japan Korea, Rep. Luxembourg Malta Netherlands New Zealand Norway Portugal Puerto Rico Qatar Singapore Slovak Republic Slovenia Spain Sweden Switzerland Taiwan, China Trinidad and Tobago United Kingdom United States change smoothly as a country develops, reflecting the smooth transition from one stage of development to another. This allows us to place increasingly more weight on those areas that are becoming more important for the country’s competitiveness as the country develops, ensuring that the GCI can gradually “penalize” those countries that are not preparing for the next stage. The classification of countries into stages of development is shown in Table 2. variables are summarized in the Technical Notes and Sources at the end of this Report. Furthermore, the GCI uses data from the World Economic Forum’s annual Executive Opinion Survey (the Survey) to capture concepts that require a more qualitative assessment or for which internationally comparable statistical data are not available for the entire set of economies. The Survey process and the statistical treatment of data are described in detail in Chapter 1.3 of this Report. DATA SOURCES To measure these concepts, the GCI uses statistical data such as enrollment rates, government debt, budget deficit, and life expectancy. These data are obtained from internationally recognized agencies, notably the United Nations Educational, Scientific and Cultural Organization (UNESCO), the International Monetary Fund (IMF), and the World Health Organization (WHO). The descriptions and data sources of all these statistical COUNTRY COVERAGE This year the Report covers 144 economies. In this edition, because of data availability issues, we could not include Benin, Bosnia and Herzegovina, Brunei Darussalam, Ecuador, or Liberia. On the other hand, Tajikistan, which could not be included in the last edition, is re-instated this year. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 11 1.1: The Global Competitiveness Index 2014–2015 REVIEW OF THE GLOBAL COMPETITIVENESS INDEX The Global Competitiveness Index has been used as an important tool by policymakers of many countries over the years. Since its first publication in 2005, the Index has become widely recognized as one of the key assessments of global competitiveness as defined by the World Economic Forum. As we approach the 10th anniversary of its creation, and in order to keep the GCI at the cutting edge of thinking and research, the World Economic Forum has engaged in a review of the Index. This two-year process will gather insights from high-level experts in academia along with practitioners and business leaders to identify the improvements needed to capture the evolving nature of the drivers of competitiveness. Since the start of this process in September 2013, the Forum has made progress in evaluating the nature of the adjustments that should be made and identifying potential new measures to be included in the Index. This progress has been possible thanks to the insights gathered in a series of workshops and sessions that took place at the Forum’s Annual Meeting in Davos in January 2014 and in an expert workshop that took place in Geneva in June 2014. Further events are planned to continue this review. With this endeavor, the Forum aims to remain at the forefront of the effort to provide policymakers and business and civil society leaders with a relevant tool that can measure and benchmark the drivers of competitiveness and prosperity in an economy, and that can stimulate a constructive dialogue to catalyze the needed reforms and productive investments. THE GLOBAL COMPETITIVENESS INDEX 2014–2015 RANKINGS Tables 3 through 7 provide the detailed rankings of this year’s GCI. The following sections discuss the findings of the GCI 2014–2015 for the top performers globally, as well as for a number of selected economies in each of the five following regions: Europe and Eurasia; Asia and the Pacific; Latin America and the Caribbean, the Middle East and North Africa, and sub-Saharan Africa.23 Top 10 The top of the rankings continues to be dominated by highly advanced Western economies and several Asian tigers. For the sixth consecutive year Switzerland leads the top 10, and again this year Singapore ranks as the second-most competitive economy in the world. Overall, the rankings at the top have remained rather stable, although it is worth noting the significant progress made by the United States, which climbs to 3rd place this year, and Japan, which rises three ranks to 6th position. Switzerland tops the Global Competitiveness Index again this year, keeping its 1st place for six years in a row. Its performance is stable since last year and 12 The Global Competitiveness Report 2014–2015 remarkably consistent across the board: the country ranks in the top 10 of eight pillars. Switzerland’s topnotch academic institutions, high spending on R&D, and strong cooperation between the academic and business worlds contribute to making it a top innovator. Switzerland boasts the highest number of Patent Cooperation Treaty applications per capita in the world. The sophistication of companies that operate at the highest end of the value chain constitutes another notable strength (2nd). Productivity is further enhanced by an excellent education system and a business sector that offers excellent on-the-job-training opportunities. The labor market balances employee protection with flexibility and the country’s business needs (1st). Public institutions are among the most effective and transparent in the world (7th), ensuring a level playing field and enhancing business confidence. Competitiveness is also buttressed by excellent infrastructure and connectivity (5th) and highly developed financial markets (11th). Finally, Switzerland’s macroeconomic environment is among the most stable in the world (12th) at a time when many European countries continue to struggle in this area. A potential threat to Switzerland’s competitive edge might be the increasing difficulties faced by businesses and research institutions in finding the talent they need to preserve their outstanding capacity to innovate. Since 2012, the country has dropped from 14th to 24th on the indicator measuring the availability of engineers and scientists. Respondents to the Executive Opinion Survey 2014 cited the difficulty of finding qualified workers as the single most problematic factor for doing business in the country. The recent acceptance by Swiss citizens of an initiative aimed at limiting the ability of European Union (EU) workers to immigrate by reintroducing quotas could exacerbate the problem and erode Switzerland’s competitiveness advantage. Singapore ranks 2nd overall for the fourth consecutive year, owing to an outstanding and stable performance across all the dimensions of the GCI. Again this year, Singapore is the only economy to feature in the top 3 in seven out of the 12 pillars; it also appears in the top 10 of two other pillars. Singapore tops the goods market efficiency pillar and places 2nd in the labor market efficiency and financial market development pillars. Furthermore, the city-state boasts one of the world’s best institutional frameworks (3rd), even though it loses the top spot to New Zealand in that category of the Index. Singapore possesses world-class infrastructure (2nd), with excellent roads, ports, and air transport facilities. Its economy can also rely on a sound macroeconomic environment and fiscal management (15th)—its budget surplus amounted to 6.9 percent of GDP in 2013. Singapore’s competitiveness is further enhanced by its strong focus on education, which has translated into a steady improvement of its ranking in the higher education and training pillar, where it comes in © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Table 3: The Global Competitiveness Index 2014–2015 rankings and 2013–2014 comparisons GCI 2014–2015 Country/Economy Switzerland Singapore United States Finland Germany Japan Hong Kong SAR Netherlands United Kingdom Sweden Norway United Arab Emirates Denmark Taiwan, China Canada Qatar New Zealand Belgium Luxembourg Malaysia Austria Australia France Saudi Arabia Ireland Korea, Rep. Israel China Estonia Iceland Thailand Puerto Rico Chile Indonesia Spain Portugal Czech Republic Azerbaijan Mauritius Kuwait Lithuania Latvia Poland Bahrain Turkey Oman Malta Panama Italy Kazakhstan Costa Rica Philippines Russian Federation Bulgaria Barbados South Africa Brazil Cyprus Romania Hungary Mexico Rwanda Macedonia, FYR Jordan Peru Colombia Montenegro Vietnam Georgia Slovenia India Morocco GCI 2014–2015 Rank (out of 144) Score (1–7) Rank among 2013–2014 economies* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 5.70 5.65 5.54 5.50 5.49 5.47 5.46 5.45 5.41 5.41 5.35 5.33 5.29 5.25 5.24 5.24 5.20 5.18 5.17 5.16 5.16 5.08 5.08 5.06 4.98 4.96 4.95 4.89 4.71 4.71 4.66 4.64 4.60 4.57 4.55 4.54 4.53 4.53 4.52 4.51 4.51 4.50 4.48 4.48 4.46 4.46 4.45 4.43 4.42 4.42 4.42 4.40 4.37 4.37 4.36 4.35 4.34 4.31 4.30 4.28 4.27 4.27 4.26 4.25 4.24 4.23 4.23 4.23 4.22 4.22 4.21 4.21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 GCI 2013– 2014 rank (out of 148)† 1 2 5 3 4 9 7 8 10 6 11 19 15 12 14 13 18 17 22 24 16 21 23 20 28 25 27 29 32 31 37 30 34 38 35 51 46 39 45 36 48 52 42 43 44 33 41 40 49 50 54 59 64 57 47 53 56 58 76 63 55 66 73 68 61 69 67 70 72 62 60 77 Country/Economy Sri Lanka Botswana Slovak Republic Ukraine Croatia Guatemala Algeria Uruguay Greece Moldova Iran, Islamic Rep. El Salvador Armenia Jamaica Tunisia Namibia Trinidad and Tobago Kenya Tajikistan Seychelles Lao PDR Serbia Cambodia Zambia Albania Mongolia Nicaragua Honduras Dominican Republic Nepal Bhutan Argentina Bolivia Gabon Lesotho Kyrgyz Republic Bangladesh Suriname Ghana Senegal Lebanon Cape Verde Côte d'Ivoire Cameroon Guyana Ethiopia Egypt Paraguay Tanzania Uganda Swaziland Zimbabwe Gambia, The Libya Nigeria Mali Pakistan Madagascar Venezuela Malawi Mozambique Myanmar Burkina Faso Timor-Leste Haiti Sierra Leone Burundi Angola Mauritania Yemen Chad Guinea Rank (out of 144) Score (1–7) Rank among 2013–2014 economies* 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 4.19 4.15 4.15 4.14 4.13 4.10 4.08 4.04 4.04 4.03 4.03 4.01 4.01 3.98 3.96 3.96 3.95 3.93 3.93 3.91 3.91 3.90 3.89 3.86 3.84 3.83 3.82 3.82 3.82 3.81 3.80 3.79 3.77 3.74 3.73 3.73 3.72 3.71 3.71 3.70 3.68 3.68 3.67 3.66 3.65 3.60 3.60 3.59 3.57 3.56 3.55 3.54 3.53 3.48 3.44 3.43 3.42 3.41 3.32 3.25 3.24 3.24 3.21 3.17 3.14 3.10 3.09 3.04 3.00 2.96 2.85 2.79 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 n/a 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 GCI 2013– 2014 rank (out of 148)† 65 74 78 84 75 86 100 85 91 89 82 97 79 94 83 90 92 96 n/a 80 81 101 88 93 95 107 99 111 105 117 109 104 98 112 123 121 110 106 114 113 103 122 126 115 102 127 118 119 125 129 124 131 116 108 120 135 133 132 134 136 137 139 140 138 143 144 146 142 141 145 148 147 * This column ranks all those economies for 2014–2015 that have been covered both in the 2013–2014 and 2014–2015 editions, hence a constant sample of 143 economies. Tajikistan was not included in the analysis last year, and therefore appears as n/a. † The 2013–2014 edition of the Global Competitiveness Report covered 148 economies. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 13 1.1: The Global Competitiveness Index 2014–2015 Table 4: The Global Competitiveness Index 2014–2015 SUBINDEX OVERALL INDEX Country/Economy Switzerland Singapore United States Finland Germany Japan Hong Kong SAR Netherlands United Kingdom Sweden Norway United Arab Emirates Denmark Taiwan, China Canada Qatar New Zealand Belgium Luxembourg Malaysia Austria Australia France Saudi Arabia Ireland Korea, Rep. Israel China Estonia Iceland Thailand Puerto Rico Chile Indonesia Spain Portugal Czech Republic Azerbaijan Mauritius Kuwait Lithuania Latvia Poland Bahrain Turkey Oman Malta Panama Italy Kazakhstan Costa Rica Philippines Russian Federation Bulgaria Barbados South Africa Brazil Cyprus Romania Hungary Mexico Rwanda Macedonia, FYR Jordan Peru Colombia Montenegro Vietnam Georgia Slovenia India Morocco Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Basic requirements Score 5.70 5.65 5.54 5.50 5.49 5.47 5.46 5.45 5.41 5.41 5.35 5.33 5.29 5.25 5.24 5.24 5.20 5.18 5.17 5.16 5.16 5.08 5.08 5.06 4.98 4.96 4.95 4.89 4.71 4.71 4.66 4.64 4.60 4.57 4.55 4.54 4.53 4.53 4.52 4.51 4.51 4.50 4.48 4.48 4.46 4.46 4.45 4.43 4.42 4.42 4.42 4.40 4.37 4.37 4.36 4.35 4.34 4.31 4.30 4.28 4.27 4.27 4.26 4.25 4.24 4.23 4.23 4.23 4.22 4.22 4.21 4.21 Rank 4 1 33 8 11 25 3 10 24 12 6 2 13 14 18 5 9 22 7 23 16 17 26 15 31 20 36 28 21 27 40 68 30 46 42 41 39 45 38 32 37 34 55 29 56 19 35 53 54 51 62 66 44 59 43 89 83 58 77 60 69 67 64 73 74 78 61 79 48 49 92 57 Efficiency enhancers Innovation and sophistication factors Score Rank Score Rank Score 6.17 6.34 5.15 5.97 5.91 5.47 6.19 5.95 5.49 5.86 6.05 6.20 5.85 5.75 5.70 6.12 5.96 5.53 6.02 5.53 5.71 5.71 5.42 5.72 5.19 5.55 5.12 5.34 5.54 5.39 5.01 4.62 5.25 4.91 4.98 5.00 5.02 4.93 5.04 5.16 5.08 5.14 4.80 5.31 4.76 5.66 5.13 4.82 4.82 4.85 4.70 4.63 4.94 4.71 4.96 4.30 4.40 4.73 4.48 4.71 4.59 4.62 4.64 4.53 4.52 4.45 4.71 4.44 4.88 4.86 4.25 4.74 5 2 1 10 9 7 3 8 4 12 13 14 17 16 6 20 11 18 22 24 23 15 19 33 21 25 26 30 27 35 39 28 29 46 31 37 34 71 59 83 38 36 32 40 45 49 44 55 47 48 56 58 41 52 54 43 42 57 50 53 60 91 69 70 62 63 73 74 79 64 61 78 5.49 5.68 5.71 5.27 5.28 5.35 5.58 5.28 5.51 5.25 5.24 5.24 5.11 5.14 5.37 4.98 5.26 5.07 4.97 4.95 4.96 5.16 5.07 4.64 4.97 4.83 4.75 4.68 4.73 4.60 4.53 4.72 4.68 4.38 4.67 4.57 4.62 4.08 4.24 3.89 4.54 4.60 4.64 4.51 4.43 4.32 4.43 4.29 4.35 4.33 4.28 4.27 4.49 4.31 4.30 4.45 4.46 4.28 4.32 4.30 4.20 3.77 4.09 4.08 4.19 4.17 3.99 3.99 3.92 4.17 4.19 3.92 1 11 5 3 4 2 23 6 8 7 16 21 9 13 24 15 25 12 18 17 14 26 19 32 20 22 10 33 34 28 54 27 49 30 39 31 36 72 53 95 44 61 63 55 51 58 41 46 29 89 35 48 75 106 47 37 56 38 78 67 59 66 76 42 99 64 77 98 118 50 52 82 5.74 5.13 5.54 5.57 5.56 5.68 4.75 5.41 5.21 5.38 5.08 4.83 5.19 5.11 4.72 5.09 4.61 5.11 4.93 4.95 5.11 4.55 4.86 4.19 4.85 4.78 5.16 4.14 4.14 4.43 3.84 4.52 3.88 4.20 4.06 4.19 4.07 3.59 3.85 3.38 3.97 3.68 3.66 3.83 3.86 3.76 4.03 3.95 4.26 3.45 4.13 3.90 3.54 3.27 3.92 4.07 3.82 4.06 3.53 3.62 3.73 3.64 3.53 4.02 3.34 3.65 3.53 3.35 3.10 3.88 3.86 3.50 (Cont’d.) 14 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Table 4: The Global Competitiveness Index 2014–2015 (cont’d.) SUBINDEX OVERALL INDEX Country/Economy Sri Lanka Botswana Slovak Republic Ukraine Croatia Guatemala Algeria Uruguay Greece Moldova Iran, Islamic Rep. El Salvador Armenia Jamaica Tunisia Namibia Trinidad and Tobago Kenya Tajikistan Seychelles Lao PDR Serbia Cambodia Zambia Albania Mongolia Nicaragua Honduras Dominican Republic Nepal Bhutan Argentina Bolivia Gabon Lesotho Kyrgyz Republic Bangladesh Suriname Ghana Senegal Lebanon Cape Verde Côte d'Ivoire Cameroon Guyana Ethiopia Egypt Paraguay Tanzania Uganda Swaziland Zimbabwe Gambia, The Libya Nigeria Mali Pakistan Madagascar Venezuela Malawi Mozambique Myanmar Burkina Faso Timor-Leste Haiti Sierra Leone Burundi Angola Mauritania Yemen Chad Guinea Rank 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 Basic requirements Score 4.19 4.15 4.15 4.14 4.13 4.10 4.08 4.04 4.04 4.03 4.03 4.01 4.01 3.98 3.96 3.96 3.95 3.93 3.93 3.91 3.91 3.90 3.89 3.86 3.84 3.83 3.82 3.82 3.82 3.81 3.80 3.79 3.77 3.74 3.73 3.73 3.72 3.71 3.71 3.70 3.68 3.68 3.67 3.66 3.65 3.60 3.60 3.59 3.57 3.56 3.55 3.54 3.53 3.48 3.44 3.43 3.42 3.41 3.32 3.25 3.24 3.24 3.21 3.17 3.14 3.10 3.09 3.04 3.00 2.96 2.85 2.79 Rank 75 72 70 87 63 84 65 47 76 90 71 80 82 99 85 81 52 115 94 50 98 101 103 109 97 105 96 107 106 100 88 104 93 95 102 110 113 86 123 120 127 91 119 116 118 117 121 112 124 126 108 114 125 111 140 128 134 129 131 139 133 132 135 122 136 141 130 137 138 142 143 144 Efficiency enhancers Innovation and sophistication factors Score Rank Score Rank Score 4.51 4.53 4.58 4.36 4.66 4.39 4.64 4.90 4.50 4.30 4.57 4.41 4.40 4.11 4.38 4.40 4.83 3.82 4.20 4.85 4.13 4.10 4.09 3.88 4.14 3.99 4.15 3.97 3.98 4.11 4.33 4.08 4.21 4.15 4.09 3.87 3.84 4.36 3.68 3.75 3.55 4.27 3.75 3.79 3.76 3.78 3.73 3.85 3.67 3.59 3.92 3.83 3.60 3.86 3.18 3.54 3.28 3.52 3.36 3.20 3.29 3.36 3.25 3.71 3.23 3.14 3.40 3.21 3.21 3.03 2.93 2.76 75 84 51 67 68 76 125 72 65 88 98 96 87 77 94 97 81 66 111 105 107 80 100 86 95 92 118 99 90 115 123 93 116 119 130 104 103 121 89 102 85 127 108 113 109 120 106 112 114 110 126 133 117 137 82 129 101 128 124 122 131 134 132 141 135 136 144 140 143 139 142 138 3.97 3.87 4.31 4.11 4.11 3.95 3.34 4.01 4.15 3.82 3.70 3.71 3.82 3.95 3.74 3.71 3.90 4.12 3.53 3.58 3.58 3.90 3.65 3.85 3.72 3.76 3.38 3.65 3.77 3.43 3.35 3.75 3.40 3.37 3.21 3.59 3.60 3.35 3.78 3.62 3.86 3.29 3.58 3.48 3.55 3.37 3.58 3.53 3.43 3.53 3.32 3.12 3.40 3.03 3.89 3.25 3.64 3.25 3.35 3.35 3.19 3.11 3.16 2.84 3.08 3.06 2.62 2.84 2.69 2.86 2.74 2.88 43 110 73 92 87 62 133 85 74 129 102 45 100 71 93 91 88 40 81 69 80 121 116 57 114 112 125 70 90 124 111 96 94 131 117 126 122 123 68 65 101 109 86 84 60 119 113 132 107 104 108 127 79 143 103 97 83 105 135 115 120 139 128 136 140 130 137 144 138 134 141 142 4.00 3.22 3.59 3.41 3.47 3.68 2.91 3.47 3.55 2.94 3.33 3.96 3.34 3.60 3.40 3.41 3.47 4.03 3.50 3.62 3.51 3.05 3.15 3.76 3.17 3.20 2.98 3.61 3.44 2.98 3.22 3.37 3.38 2.93 3.12 2.96 3.02 3.00 3.62 3.65 3.33 3.23 3.47 3.47 3.69 3.09 3.18 2.92 3.26 3.30 3.25 2.95 3.52 2.49 3.30 3.36 3.48 3.27 2.71 3.17 3.05 2.62 2.95 2.69 2.61 2.93 2.68 2.36 2.63 2.77 2.55 2.55 Note: Ranks out of 144 economies and scores measured on a 1-to-7 scale. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 15 1.1: The Global Competitiveness Index 2014–2015 Table 5: The Global Competitiveness Index 2014–2015: Basic requirements PILLAR BASIC REQUIREMENTS 1. Institutions 2. Infrastructure 3. Macroeconomic environment 4. Health and primary education Country/Economy Rank Score Rank Score Rank Score Rank Score Rank Score Albania Algeria Angola Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Bhutan Bolivia Botswana Brazil Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Chad Chile China Colombia Costa Rica Côte d'Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Egypt El Salvador Estonia Ethiopia Finland France Gabon Gambia, The Georgia Germany Ghana Greece Guatemala Guinea Guyana Haiti Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran, Islamic Rep. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea, Rep. Kuwait Kyrgyz Republic Lao PDR Latvia Lebanon Lesotho 97 65 137 104 82 17 16 45 29 113 43 22 88 93 72 83 59 135 130 103 116 18 91 143 30 28 78 62 119 63 58 39 13 106 121 80 21 117 8 26 95 125 48 11 123 76 84 144 118 136 107 3 60 27 92 46 71 31 36 54 99 25 73 51 115 20 32 110 98 34 127 102 4.14 4.64 3.21 4.08 4.40 5.71 5.71 4.93 5.31 3.84 4.96 5.53 4.33 4.21 4.53 4.40 4.71 3.25 3.40 4.09 3.79 5.70 4.27 2.93 5.25 5.34 4.45 4.70 3.75 4.66 4.73 5.02 5.85 3.98 3.73 4.41 5.54 3.78 5.97 5.42 4.15 3.60 4.88 5.91 3.68 4.50 4.39 2.76 3.76 3.23 3.97 6.19 4.71 5.39 4.25 4.91 4.57 5.19 5.12 4.82 4.11 5.47 4.53 4.85 3.82 5.55 5.16 3.87 4.13 5.14 3.55 4.09 103 101 143 137 72 19 22 60 29 131 33 23 38 90 39 94 112 117 132 119 91 14 66 140 28 47 111 46 86 87 42 76 16 116 100 99 26 96 2 32 79 44 48 17 69 85 109 134 89 135 105 8 83 21 70 53 108 15 43 106 80 11 37 57 78 82 55 124 63 51 139 68 3.38 3.41 2.61 2.79 3.82 5.14 5.09 3.96 4.70 2.96 4.64 5.08 4.47 3.53 4.47 3.47 3.32 3.28 2.92 3.25 3.53 5.43 3.89 2.66 4.82 4.22 3.32 4.26 3.64 3.59 4.39 3.77 5.35 3.29 3.41 3.44 4.96 3.46 6.08 4.68 3.72 4.29 4.21 5.23 3.85 3.64 3.34 2.81 3.54 2.81 3.37 5.63 3.67 5.11 3.84 4.11 3.36 5.40 4.32 3.37 3.71 5.47 4.48 4.02 3.73 3.70 4.02 3.21 3.92 4.13 2.71 3.86 90 106 139 89 78 20 13 70 31 127 28 18 92 109 101 76 74 141 140 107 126 15 104 144 49 46 84 73 93 44 45 41 21 98 100 57 38 125 19 8 114 95 59 7 108 36 67 143 110 138 102 1 50 23 87 56 69 27 34 26 80 6 71 62 96 14 61 115 94 47 122 116 3.52 3.12 2.01 3.54 3.83 5.60 5.80 4.12 5.19 2.45 5.32 5.61 3.49 3.00 3.19 3.98 4.06 2.01 2.01 3.05 2.47 5.74 3.14 1.67 4.56 4.66 3.66 4.08 3.41 4.72 4.70 4.75 5.59 3.26 3.20 4.34 4.85 2.49 5.60 6.03 2.86 3.27 4.31 6.09 3.03 4.88 4.17 1.78 2.94 2.03 3.18 6.69 4.56 5.54 3.58 4.37 4.15 5.32 4.99 5.43 3.75 6.13 4.11 4.25 3.27 5.74 4.28 2.80 3.38 4.61 2.62 2.77 122 11 71 102 77 30 33 9 47 72 132 70 119 35 13 85 36 83 112 80 90 51 106 73 22 10 29 93 68 91 134 40 16 94 141 100 20 95 43 82 18 142 48 24 133 135 64 138 118 120 123 14 61 92 101 34 62 130 50 108 136 127 131 27 126 7 3 104 124 32 143 28 3.82 6.41 4.70 4.22 4.62 5.61 5.51 6.41 5.19 4.69 3.42 4.70 3.90 5.47 6.30 4.49 5.45 4.55 4.02 4.60 4.45 5.06 4.11 4.68 5.88 6.41 5.65 4.40 4.70 4.44 3.32 5.37 6.11 4.39 2.96 4.23 6.00 4.36 5.32 4.55 6.03 2.96 5.14 5.83 3.38 3.31 4.74 3.20 3.91 3.87 3.82 6.17 4.78 4.41 4.22 5.48 4.77 3.49 5.07 4.09 3.29 3.64 3.45 5.74 3.73 6.44 6.73 4.16 3.78 5.52 2.56 5.69 62 81 136 67 99 17 19 104 40 102 16 2 89 109 127 77 51 141 114 91 112 7 57 144 70 46 105 48 140 60 9 37 25 107 97 80 26 110 1 18 130 133 63 14 121 41 100 139 113 126 85 32 64 10 98 74 52 8 44 22 72 6 47 96 120 27 82 101 90 31 30 128 5.85 5.61 3.54 5.78 5.33 6.46 6.44 5.24 6.16 5.29 6.47 6.75 5.47 4.85 4.14 5.65 6.03 3.18 4.64 5.44 4.70 6.58 5.96 2.72 5.75 6.08 5.19 6.06 3.25 5.91 6.53 6.20 6.37 4.98 5.37 5.61 6.33 4.82 6.89 6.44 4.01 3.88 5.84 6.48 4.46 6.15 5.30 3.25 4.66 4.20 5.52 6.28 5.84 6.52 5.35 5.67 6.00 6.54 6.10 6.40 5.69 6.62 6.07 5.37 4.55 6.31 5.59 5.29 5.44 6.28 6.29 4.03 (Cont’d.) 16 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Table 5: The Global Competitiveness Index 2014–2015: Basic requirements (cont’d.) PILLAR BASIC REQUIREMENTS 1. Institutions 2. Infrastructure 3. Macroeconomic environment 4. Health and primary education Country/Economy Rank Score Rank Score Rank Score Rank Score Rank Score Libya Lithuania Luxembourg Macedonia, FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Rwanda Saudi Arabia Seychelles Senegal Serbia Sierra Leone Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Suriname Swaziland Sweden Switzerland Taiwan, China Tajikistan Tanzania Thailand Timor-Leste Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Venezuela Vietnam Yemen Zambia Zimbabwe 111 37 7 64 129 139 23 128 35 138 38 69 90 105 61 57 133 132 81 100 10 9 96 140 6 19 134 53 112 74 66 55 41 68 5 77 44 67 15 50 120 101 141 1 70 49 89 42 75 86 108 12 4 14 94 124 40 122 52 85 56 126 87 2 24 33 47 131 79 142 109 114 3.86 5.08 6.02 4.64 3.52 3.20 5.53 3.54 5.13 3.21 5.04 4.59 4.30 3.99 4.71 4.74 3.29 3.36 4.40 4.11 5.95 5.96 4.15 3.18 6.05 5.66 3.28 4.82 3.85 4.52 4.63 4.80 5.00 4.62 6.12 4.48 4.94 4.62 5.72 4.85 3.75 4.10 3.14 6.34 4.58 4.86 4.30 4.98 4.51 4.36 3.92 5.86 6.17 5.75 4.20 3.67 5.01 3.71 4.83 4.38 4.76 3.59 4.36 6.20 5.49 5.15 4.90 3.36 4.44 3.03 3.88 3.83 142 58 6 45 128 77 20 126 40 138 35 102 121 98 59 49 127 136 50 120 10 1 114 129 5 24 123 71 133 118 67 56 41 34 4 88 97 18 25 54 74 122 107 3 110 75 36 73 62 104 61 13 9 27 65 93 84 125 95 81 64 115 130 7 12 30 31 144 92 141 52 113 2.62 4.01 5.69 4.26 3.13 3.74 5.11 3.18 4.46 2.76 4.60 3.40 3.22 3.44 3.96 4.21 3.16 2.80 4.19 3.22 5.53 6.09 3.31 3.01 5.74 5.06 3.21 3.83 2.90 3.26 3.86 4.02 4.43 4.62 5.90 3.56 3.45 5.21 4.97 4.04 3.81 3.21 3.37 5.98 3.33 3.81 4.50 3.82 3.93 3.37 3.94 5.43 5.60 4.84 3.90 3.49 3.66 3.21 3.46 3.70 3.90 3.29 2.98 5.69 5.44 4.69 4.68 2.15 3.51 2.65 4.12 3.31 113 43 16 82 135 131 25 103 37 123 42 65 83 112 72 55 128 137 66 132 4 29 99 134 32 33 119 40 117 88 91 63 17 58 24 85 39 105 30 53 111 77 136 2 64 35 60 9 75 86 97 22 5 11 120 130 48 133 52 79 51 129 68 3 10 12 54 121 81 142 118 124 2.88 4.73 5.73 3.73 2.10 2.21 5.46 3.15 4.88 2.59 4.74 4.19 3.68 2.92 4.10 4.38 2.36 2.05 4.17 2.15 6.25 5.30 3.20 2.13 5.16 5.01 2.66 4.77 2.70 3.54 3.49 4.24 5.66 4.34 5.51 3.65 4.82 3.14 5.19 4.50 2.93 3.93 2.07 6.54 4.21 4.88 4.29 6.01 4.02 3.61 3.26 5.55 6.18 5.82 2.65 2.26 4.58 2.14 4.51 3.80 4.55 2.28 4.16 6.30 6.01 5.82 4.47 2.65 3.74 1.90 2.67 2.54 41 42 8 55 81 144 44 86 65 115 74 53 56 125 88 66 110 116 78 37 39 25 67 76 1 6 137 52 54 21 26 63 128 99 2 46 31 79 4 57 97 129 117 15 45 98 89 121 114 59 60 17 12 23 69 109 19 49 38 111 58 96 105 5 107 113 84 139 75 140 103 87 5.36 5.35 6.43 4.93 4.60 2.42 5.26 4.48 4.73 4.00 4.66 5.04 4.91 3.77 4.46 4.72 4.06 4.00 4.62 5.40 5.38 5.79 4.71 4.62 6.83 6.56 3.24 5.05 5.01 5.89 5.76 4.77 3.52 4.24 6.74 5.20 5.54 4.62 6.67 4.89 4.29 3.51 3.94 6.13 5.23 4.27 4.45 3.83 4.01 4.80 4.79 6.06 6.40 5.83 4.70 4.06 6.01 5.12 5.39 4.03 4.83 4.36 4.14 6.63 4.10 4.01 4.52 3.13 4.66 2.98 4.16 4.48 119 35 36 78 125 123 33 138 20 137 42 71 93 65 29 76 135 117 115 75 5 4 95 143 15 54 129 79 111 94 92 39 24 103 28 88 56 86 50 55 131 68 142 3 84 12 132 34 45 73 134 23 11 13 83 108 66 124 59 53 69 122 43 38 21 49 58 87 61 116 118 106 4.55 6.24 6.21 5.64 4.26 4.42 6.28 3.33 6.43 3.48 6.14 5.73 5.40 5.81 6.31 5.66 3.58 4.59 4.63 5.66 6.64 6.66 5.37 2.97 6.47 5.99 4.02 5.63 4.76 5.39 5.41 6.17 6.39 5.27 6.31 5.51 5.97 5.52 6.03 5.98 3.96 5.76 3.18 6.73 5.55 6.50 3.96 6.25 6.09 5.67 3.69 6.39 6.52 6.49 5.56 4.86 5.80 4.38 5.94 6.00 5.75 4.45 6.14 6.17 6.43 6.06 5.94 5.51 5.86 4.59 4.56 4.99 Note: Ranks out of 144 economies and scores measured on a 1-to-7 scale. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 17 1.1: The Global Competitiveness Index 2014–2015 Table 6: The Global Competitiveness Index 2014–2015: Efficiency enhancers PILLAR EFFICIENCY ENHANCERS 5. Higher education and training 6. Goods market efficiency 7. Labor market efficiency 8. Financial market development 9. Technological readiness 10. Market size Country/Economy Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Albania Algeria Angola Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Bhutan Bolivia Botswana Brazil Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Chad Chile China Colombia Costa Rica Côte d'Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Egypt El Salvador Estonia Ethiopia Finland France Gabon Gambia, The Georgia Germany Ghana Greece Guatemala Guinea Guyana Haiti Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran, Islamic Rep. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea, Rep. Kuwait Kyrgyz Republic Lao PDR Latvia Lebanon Lesotho 95 125 140 93 87 15 23 71 40 103 54 18 123 116 84 42 52 132 144 100 113 6 127 142 29 30 63 56 108 68 57 34 17 90 106 96 27 120 10 19 119 117 79 9 89 65 76 138 109 135 99 3 53 35 61 46 98 21 26 47 77 7 70 48 66 25 83 104 107 36 85 130 3.72 3.34 2.84 3.75 3.82 5.16 4.96 4.08 4.51 3.60 4.30 5.07 3.35 3.40 3.87 4.46 4.31 3.16 2.62 3.65 3.48 5.37 3.29 2.74 4.68 4.68 4.17 4.28 3.58 4.11 4.28 4.62 5.11 3.77 3.58 3.71 4.73 3.37 5.27 5.07 3.37 3.40 3.92 5.28 3.78 4.15 3.95 2.88 3.55 3.08 3.65 5.58 4.30 4.60 4.19 4.38 3.70 4.97 4.75 4.35 3.95 5.35 4.08 4.33 4.12 4.83 3.89 3.59 3.58 4.60 3.86 3.21 60 98 144 45 75 11 15 90 55 125 30 5 108 97 101 41 63 136 142 123 117 18 89 143 32 65 69 37 121 53 33 35 10 99 111 94 20 131 1 28 126 107 92 16 106 44 103 140 82 109 100 22 52 13 93 61 78 17 36 47 76 21 48 62 95 23 81 91 110 31 67 116 4.53 3.69 1.94 4.83 4.20 5.67 5.56 3.90 4.66 2.86 5.22 5.93 3.45 3.73 3.59 4.92 4.49 2.42 2.14 2.92 3.22 5.50 3.91 2.05 5.09 4.42 4.37 5.00 3.12 4.67 5.06 5.02 5.68 3.69 3.27 3.85 5.49 2.63 6.22 5.26 2.78 3.45 3.89 5.55 3.46 4.84 3.56 2.19 4.12 3.43 3.63 5.44 4.68 5.62 3.86 4.53 4.17 5.54 5.00 4.78 4.19 5.44 4.78 4.51 3.77 5.38 4.15 3.89 3.28 5.13 4.39 3.23 93 136 143 141 64 29 22 72 21 84 74 14 115 132 97 123 63 127 135 90 113 15 110 142 34 56 109 52 82 105 27 50 23 94 118 55 26 124 18 46 126 111 60 19 67 85 45 137 83 140 91 2 65 49 95 48 120 10 79 73 76 12 40 54 62 33 106 77 59 36 71 80 4.15 3.48 2.92 3.14 4.37 4.76 4.96 4.31 4.98 4.20 4.28 5.14 3.99 3.60 4.12 3.85 4.37 3.81 3.49 4.17 3.99 5.13 4.01 2.94 4.68 4.42 4.03 4.47 4.23 4.05 4.86 4.53 4.96 4.15 3.95 4.45 4.89 3.84 5.03 4.57 3.81 4.00 4.40 4.99 4.34 4.20 4.58 3.40 4.21 3.21 4.17 5.59 4.36 4.54 4.13 4.54 3.93 5.29 4.24 4.30 4.28 5.20 4.63 4.46 4.40 4.70 4.04 4.25 4.41 4.67 4.31 4.24 93 139 128 143 74 56 43 33 26 124 31 60 24 127 36 109 67 70 103 29 81 7 126 120 50 37 84 57 73 106 30 62 12 107 140 125 11 78 23 61 69 38 41 35 98 118 85 89 101 77 130 3 75 14 112 110 142 18 59 136 58 22 94 15 25 86 116 92 34 17 123 76 4.02 3.15 3.52 2.97 4.20 4.30 4.45 4.59 4.67 3.67 4.60 4.27 4.69 3.58 4.56 3.83 4.24 4.22 3.89 4.63 4.11 5.20 3.59 3.72 4.36 4.55 4.08 4.29 4.21 3.86 4.61 4.26 4.99 3.85 3.08 3.64 5.02 4.15 4.69 4.27 4.23 4.54 4.49 4.57 3.94 3.74 4.07 4.05 3.90 4.15 3.51 5.57 4.17 4.94 3.81 3.81 3.01 4.82 4.27 3.29 4.28 4.73 4.02 4.90 4.68 4.07 3.78 4.02 4.59 4.82 3.68 4.16 114 137 140 129 97 6 43 89 31 88 32 38 111 121 57 53 60 127 142 84 108 8 115 136 19 54 70 92 78 74 83 44 27 99 125 86 29 120 5 23 105 94 76 25 62 130 45 134 82 135 59 1 73 68 51 42 128 61 20 119 48 16 66 98 24 80 77 95 101 33 102 123 3.39 2.72 2.50 3.04 3.71 5.41 4.45 3.77 4.65 3.77 4.63 4.53 3.45 3.33 4.22 4.30 4.17 3.14 2.37 3.80 3.51 5.35 3.36 2.74 4.88 4.30 4.01 3.74 3.86 3.91 3.81 4.45 4.72 3.70 3.19 3.78 4.67 3.33 5.55 4.79 3.57 3.74 3.90 4.76 4.15 2.97 4.44 2.85 3.81 2.81 4.17 5.91 3.93 4.03 4.34 4.45 3.05 4.15 4.87 3.35 4.40 4.98 4.06 3.70 4.77 3.81 3.88 3.73 3.69 4.63 3.65 3.27 91 129 140 82 71 19 18 56 34 126 35 14 124 118 76 58 41 132 142 102 120 22 80 143 42 83 68 40 117 44 43 36 6 84 95 93 29 133 11 17 108 103 67 13 100 39 88 139 101 134 97 5 50 8 121 77 107 12 15 38 75 20 73 61 87 25 74 111 115 32 86 137 3.30 2.59 2.34 3.54 3.72 5.64 5.74 4.26 5.01 2.66 4.98 5.78 2.69 2.79 3.58 4.21 4.73 2.49 2.10 3.02 2.76 5.57 3.54 2.09 4.59 3.53 3.84 4.77 2.81 4.56 4.56 4.96 6.10 3.51 3.21 3.24 5.26 2.46 5.97 5.77 2.95 3.02 3.85 5.81 3.11 4.79 3.47 2.35 3.10 2.41 3.18 6.10 4.43 6.02 2.75 3.58 2.95 5.89 5.78 4.82 3.61 5.61 3.71 4.16 3.48 5.42 3.69 2.90 2.83 5.12 3.50 2.37 105 47 65 24 118 18 37 72 99 44 138 28 140 84 97 9 63 111 141 87 91 13 144 106 41 2 32 82 94 79 115 42 54 68 29 90 100 66 55 8 109 142 103 5 69 49 78 127 135 129 93 27 53 128 3 15 21 57 48 12 107 4 88 52 74 11 67 117 121 95 76 139 2.94 4.39 3.84 4.97 2.75 5.14 4.61 3.66 3.08 4.46 2.07 4.80 1.83 3.38 3.12 5.66 3.87 2.87 1.74 3.31 3.30 5.48 1.30 2.92 4.50 6.86 4.71 3.43 3.23 3.58 2.77 4.49 4.23 3.72 4.78 3.30 3.07 3.81 4.18 5.74 2.89 1.65 2.98 5.99 3.71 4.34 3.59 2.44 2.15 2.43 3.24 4.89 4.26 2.44 6.26 5.34 5.09 4.15 4.36 5.57 2.92 6.14 3.30 4.26 3.62 5.60 3.80 2.76 2.67 3.20 3.61 2.01 (Cont’d.) 18 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Table 6: The Global Competitiveness Index 2014–2015: Efficiency enhancers (cont’d.) PILLAR EFFICIENCY ENHANCERS 5. Higher education and training 6. Goods market efficiency 7. Labor market efficiency 8. Financial market development 9. Technological readiness 10. Market size Country/Economy Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Libya Lithuania Luxembourg Macedonia, FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Rwanda Saudi Arabia Seychelles Senegal Serbia Sierra Leone Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Suriname Swaziland Sweden Switzerland Taiwan, China Tajikistan Tanzania Thailand Timor-Leste Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Venezuela Vietnam Yemen Zambia Zimbabwe 137 38 22 69 128 122 24 129 44 143 59 60 88 92 73 78 131 134 97 115 8 11 118 82 13 49 101 55 112 62 58 32 37 28 20 50 41 91 33 105 102 80 136 2 51 64 43 31 75 121 126 12 5 16 111 114 39 141 81 94 45 110 67 14 4 1 72 124 74 139 86 133 3.03 4.54 4.97 4.09 3.25 3.35 4.95 3.25 4.43 2.69 4.24 4.20 3.82 3.76 3.99 3.92 3.19 3.11 3.71 3.43 5.28 5.26 3.38 3.89 5.24 4.32 3.64 4.29 3.53 4.19 4.27 4.64 4.57 4.72 4.98 4.32 4.49 3.77 4.64 3.58 3.62 3.90 3.06 5.68 4.31 4.17 4.45 4.67 3.97 3.35 3.32 5.25 5.49 5.14 3.53 3.43 4.53 2.84 3.90 3.74 4.43 3.53 4.11 5.24 5.51 5.71 4.01 3.35 3.99 2.86 3.85 3.12 102 26 43 71 130 132 46 128 42 141 54 87 84 68 51 104 138 135 115 113 3 9 114 124 8 79 127 66 112 83 64 34 24 27 38 58 39 122 57 85 119 74 137 2 56 25 86 29 72 105 120 14 4 12 88 134 59 133 77 73 50 129 40 6 19 7 49 70 96 139 80 118 3.59 5.30 4.88 4.32 2.64 2.57 4.80 2.70 4.92 2.16 4.66 3.99 4.08 4.37 4.68 3.56 2.39 2.44 3.23 3.25 5.99 5.72 3.23 2.88 5.75 4.17 2.76 4.40 3.27 4.08 4.45 5.04 5.37 5.27 4.99 4.63 4.96 2.98 4.64 4.04 3.18 4.25 2.39 6.09 4.65 5.33 4.04 5.23 4.30 3.50 3.18 5.59 5.98 5.63 3.97 2.45 4.58 2.52 4.19 4.28 4.69 2.68 4.93 5.90 5.50 5.82 4.71 4.34 3.74 2.29 4.16 3.18 139 47 5 38 102 108 7 104 31 138 25 86 103 81 69 58 116 130 96 121 9 6 125 87 24 28 100 41 92 53 70 51 44 20 4 89 99 42 35 88 68 128 117 1 66 61 32 75 39 129 98 17 8 11 114 122 30 134 101 107 43 119 112 3 13 16 57 144 78 131 37 133 3.32 4.57 5.48 4.64 4.08 4.03 5.42 4.07 4.72 3.35 4.92 4.19 4.07 4.23 4.34 4.41 3.99 3.68 4.13 3.91 5.34 5.43 3.81 4.19 4.93 4.81 4.08 4.62 4.16 4.47 4.32 4.49 4.58 4.99 5.51 4.18 4.09 4.62 4.68 4.18 4.34 3.78 3.98 5.64 4.36 4.40 4.71 4.28 4.63 3.74 4.09 5.04 5.39 5.23 3.99 3.90 4.74 3.56 4.08 4.03 4.60 3.95 3.99 5.58 5.16 5.05 4.41 2.78 4.24 3.64 4.65 3.58 133 53 16 71 39 28 19 102 54 141 52 121 82 42 65 111 104 72 55 114 21 6 108 40 13 48 132 87 115 51 91 79 83 46 10 90 45 9 64 44 68 119 95 2 97 99 113 100 135 117 105 20 1 32 63 47 66 122 96 129 131 27 80 8 5 4 134 144 49 138 88 137 3.41 4.33 4.87 4.21 4.53 4.63 4.80 3.89 4.32 3.07 4.33 3.71 4.11 4.48 4.24 3.81 3.88 4.21 4.31 3.80 4.73 5.24 3.84 4.53 4.97 4.39 3.43 4.06 3.79 4.33 4.03 4.14 4.09 4.40 5.05 4.04 4.42 5.08 4.25 4.44 4.23 3.73 4.01 5.69 3.95 3.93 3.80 3.92 3.29 3.74 3.86 4.79 5.75 4.59 4.25 4.39 4.24 3.68 3.97 3.51 3.48 4.66 4.12 5.14 5.26 5.30 3.37 2.55 4.37 3.23 4.06 3.25 144 65 14 41 132 79 4 122 36 141 26 63 100 124 56 69 126 139 46 75 37 3 106 67 10 28 72 22 93 40 49 35 104 21 13 64 110 55 30 103 85 109 116 2 39 133 7 91 47 118 71 12 11 18 113 96 34 138 52 117 58 81 107 17 15 9 87 131 90 143 50 112 1.95 4.09 5.10 4.49 2.85 3.82 5.60 3.32 4.56 2.50 4.74 4.14 3.70 3.22 4.26 4.02 3.14 2.58 4.43 3.90 4.55 5.73 3.56 4.06 5.34 4.69 3.99 4.83 3.74 4.49 4.37 4.60 3.65 4.85 5.18 4.12 3.50 4.26 4.66 3.65 3.80 3.50 3.36 5.84 4.50 2.85 5.37 3.76 4.41 3.35 4.00 5.25 5.29 4.91 3.40 3.72 4.61 2.69 4.33 3.35 4.21 3.81 3.54 4.94 5.07 5.35 3.78 2.91 3.77 2.17 4.37 3.44 130 28 1 62 127 135 60 112 21 123 63 79 51 81 54 78 122 144 89 128 9 23 113 104 4 57 114 53 110 92 69 48 26 37 31 47 59 98 45 70 96 49 138 7 52 33 66 27 94 72 125 3 10 30 116 131 65 141 64 90 55 119 85 24 2 16 46 106 99 136 105 109 2.56 5.37 6.36 3.99 2.63 2.41 4.18 2.86 5.58 2.71 3.97 3.55 4.38 3.54 4.28 3.57 2.71 2.07 3.42 2.61 6.00 5.55 2.84 3.02 6.12 4.24 2.83 4.34 2.93 3.30 3.78 4.47 5.42 4.87 5.17 4.49 4.19 3.14 4.54 3.73 3.21 4.45 2.36 6.09 4.37 5.05 3.86 5.40 3.24 3.71 2.66 6.19 5.97 5.24 2.83 2.51 3.94 2.17 3.96 3.38 4.27 2.78 3.50 5.48 6.28 5.78 4.50 2.96 3.12 2.40 2.99 2.95 85 77 96 108 114 123 26 122 126 131 113 10 124 120 134 56 101 70 119 98 23 62 102 33 50 73 30 80 92 43 35 19 51 60 59 45 7 125 20 143 104 71 133 31 58 81 25 14 61 137 136 36 39 17 116 75 22 130 112 64 16 86 38 46 6 1 89 40 34 83 110 132 3.33 3.60 3.13 2.91 2.77 2.63 4.90 2.66 2.48 2.33 2.83 5.61 2.60 2.73 2.16 4.17 3.07 3.70 2.74 3.10 5.07 3.89 2.98 4.70 4.34 3.65 4.75 3.50 3.29 4.47 4.68 5.12 4.32 3.95 3.99 4.44 5.77 2.52 5.10 1.46 2.96 3.68 2.27 4.71 4.03 3.45 4.91 5.42 3.94 2.08 2.09 4.62 4.57 5.23 2.76 3.61 5.09 2.40 2.87 3.87 5.31 3.32 4.58 4.41 5.78 6.94 3.30 4.55 4.69 3.42 2.88 2.31 Note: Ranks out of 144 economies and scores measured on a 1-to-7 scale. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 19 1.1: The Global Competitiveness Index 2014–2015 Table 7: The Global Competitiveness Index 2014–2015: Innovation and sophistication factors PILLAR INNOVATION AND SOPHISTICATION FACTORS PILLAR 11. Business sophistication INNOVATION AND SOPHISTICATION FACTORS 12. Innovation 11. Business sophistication 12. Innovation Country/Economy Rank Score Rank Score Rank Score Country/Economy Rank Score Rank Score Rank Score Albania 114 133 144 96 100 26 14 72 55 122 47 12 111 94 110 56 106 128 137 116 84 24 109 141 49 33 64 35 86 87 38 36 9 90 113 45 34 119 3 19 131 79 118 4 68 74 62 142 60 140 70 23 67 28 52 30 102 20 10 29 71 2 42 89 40 22 95 126 80 61 101 117 3.17 2.91 2.36 3.37 3.34 4.55 5.11 3.59 3.83 3.02 3.92 5.11 3.22 3.38 3.22 3.82 3.27 2.95 2.68 3.15 3.47 4.72 3.23 2.55 3.88 4.14 3.65 4.13 3.47 3.47 4.06 4.07 5.19 3.44 3.18 3.96 4.14 3.09 5.57 4.86 2.93 3.52 3.10 5.56 3.62 3.55 3.68 2.55 3.69 2.61 3.61 4.75 3.62 4.43 3.86 4.20 3.33 4.85 5.16 4.26 3.60 5.68 4.02 3.45 4.03 4.78 3.38 2.96 3.51 3.68 3.33 3.12 104 131 144 96 93 28 7 80 45 118 53 10 107 103 116 47 105 136 139 111 98 23 114 143 55 43 62 32 100 83 40 35 11 73 95 37 48 127 9 22 133 71 113 3 70 74 52 141 68 138 64 16 92 29 57 34 110 20 26 25 67 1 42 91 44 27 76 119 79 61 75 123 3.61 3.22 2.61 3.69 3.73 4.70 5.41 3.86 4.35 3.45 4.28 5.34 3.58 3.61 3.47 4.32 3.61 3.00 2.91 3.52 3.68 4.90 3.48 2.77 4.23 4.38 4.08 4.49 3.66 3.83 4.41 4.46 5.33 3.92 3.70 4.43 4.32 3.32 5.36 4.98 3.18 3.93 3.49 5.65 3.94 3.91 4.29 2.85 3.97 2.94 4.00 5.13 3.75 4.67 4.18 4.47 3.52 5.02 4.76 4.79 3.98 5.82 4.40 3.77 4.38 4.73 3.90 3.44 3.87 4.09 3.91 3.37 120 128 142 97 104 25 18 59 60 129 47 13 113 83 102 62 105 107 133 116 71 22 101 139 48 32 77 34 69 93 36 39 11 103 124 51 30 109 1 19 122 89 121 6 63 79 95 141 55 140 74 26 50 27 49 31 86 20 3 35 75 4 41 85 38 17 111 132 84 70 119 110 2.73 2.60 2.12 3.04 2.95 4.41 4.82 3.33 3.32 2.58 3.56 4.89 2.85 3.15 2.97 3.31 2.94 2.89 2.46 2.79 3.27 4.54 2.98 2.34 3.54 3.91 3.21 3.78 3.28 3.10 3.72 3.67 5.06 2.96 2.65 3.50 3.95 2.87 5.78 4.74 2.68 3.11 2.71 5.47 3.31 3.18 3.07 2.25 3.42 2.28 3.23 4.38 3.50 4.19 3.53 3.93 3.13 4.68 5.56 3.73 3.22 5.54 3.64 3.14 3.69 4.83 2.86 2.48 3.14 3.27 2.75 2.87 Libya Lithuania Luxembourg Macedonia, FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Rwanda Saudi Arabia Seychelles Senegal Serbia Sierra Leone Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Suriname Swaziland Sweden Switzerland Taiwan, China Tajikistan Tanzania Thailand Timor-Leste Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Venezuela Vietnam Yemen Zambia Zimbabwe 143 44 18 76 105 115 17 97 41 138 53 59 129 112 77 82 120 139 91 124 6 25 125 103 16 58 83 46 132 99 48 63 31 27 15 78 75 66 32 69 65 121 130 11 73 50 37 39 43 123 108 7 1 13 81 107 54 136 88 93 51 104 92 21 8 5 85 135 98 134 57 127 2.49 3.97 4.93 3.53 3.27 3.17 4.95 3.36 4.03 2.63 3.85 3.73 2.94 3.20 3.53 3.50 3.05 2.62 3.41 2.98 5.41 4.61 2.98 3.30 5.08 3.76 3.48 3.95 2.92 3.34 3.90 3.66 4.19 4.52 5.09 3.53 3.54 3.64 4.19 3.62 3.65 3.05 2.93 5.13 3.59 3.88 4.07 4.06 4.00 3.00 3.25 5.38 5.74 5.11 3.50 3.26 3.84 2.69 3.47 3.40 3.86 3.30 3.41 4.83 5.21 5.54 3.47 2.71 3.35 2.77 3.76 2.95 135 49 21 89 117 108 15 102 36 142 33 58 124 115 97 78 125 140 94 126 5 24 129 87 13 56 81 54 121 72 46 63 51 18 12 90 86 84 30 66 77 132 128 19 65 59 31 38 39 122 101 8 2 17 82 112 41 137 69 88 50 109 99 14 6 4 85 134 106 120 60 130 3.01 4.31 5.00 3.78 3.46 3.54 5.24 3.62 4.45 2.85 4.48 4.14 3.35 3.47 3.69 3.88 3.34 2.90 3.72 3.34 5.57 4.80 3.28 3.78 5.30 4.23 3.85 4.24 3.39 3.93 4.33 4.06 4.29 5.08 5.31 3.77 3.79 3.83 4.57 3.99 3.90 3.21 3.28 5.07 4.00 4.11 4.49 4.42 4.42 3.39 3.63 5.38 5.79 5.12 3.83 3.49 4.40 2.97 3.94 3.78 4.31 3.53 3.66 5.25 5.45 5.58 3.79 3.04 3.58 3.43 4.10 3.28 144 44 16 68 94 115 21 92 45 136 76 61 131 106 58 90 118 138 91 126 8 23 123 114 15 64 88 40 134 117 52 72 28 29 14 66 65 53 33 73 57 108 130 9 78 42 43 37 46 127 112 7 2 10 80 98 67 135 100 99 56 96 81 24 12 5 82 137 87 143 54 125 1.98 3.62 4.85 3.28 3.09 2.80 4.67 3.10 3.60 2.41 3.22 3.31 2.53 2.94 3.37 3.11 2.76 2.34 3.10 2.62 5.25 4.42 2.68 2.82 4.85 3.29 3.12 3.65 2.44 2.76 3.48 3.26 4.08 3.96 4.88 3.28 3.29 3.46 3.80 3.25 3.39 2.89 2.58 5.18 3.18 3.64 3.64 3.69 3.57 2.60 2.86 5.37 5.70 5.10 3.17 3.03 3.28 2.41 2.99 3.01 3.42 3.06 3.16 4.41 4.96 5.49 3.15 2.39 3.12 2.11 3.42 2.63 Algeria Angola Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Bhutan Bolivia Botswana Brazil Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Chad Chile China Colombia Costa Rica Côte d'Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Egypt El Salvador Estonia Ethiopia Finland France Gabon Gambia, The Georgia Germany Ghana Greece Guatemala Guinea Guyana Haiti Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran, Islamic Rep. Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea, Rep. Kuwait Kyrgyz Republic Lao PDR Latvia Lebanon Lesotho Note: Ranks out of 144 economies and scores measured on a 1-to-7 scale. 20 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 2nd, behind Finland. Singapore’s private sector is also fairly sophisticated (19th) and becoming more innovative (9th), although room for improvement exists in both areas, especially as these are the keys to Singapore’s future prosperity. The United States goes up in the rankings for a second year in a row and regains the 3rd position on the back of improvements in a number of areas, including some aspects of the institutional framework (up from 35th to 30th), and more positive perceptions regarding business sophistication (from 6th to 4th) and innovation (from 7th to 5th). As it recovers from the crisis, the United States can build on the many structural features that make its economy extremely productive. US companies are highly sophisticated and innovative, and they are supported by an excellent university system that collaborates admirably with the business sector in R&D. Combined with flexible labor markets and the scale opportunities afforded by the sheer size of its domestic economy—the largest in the world by far—these qualities make the United States very competitive. On the other hand, some weaknesses in particular areas remain to be addressed. The business community continues to be rather critical, with trust in politicians still somewhat weak (48th), concerns about favoritism of government officials (47th), and a general perception that the government spends its resources relatively wastefully (73rd). The macroeconomic environment remains the country’s greatest area of weakness (113th), although the fiscal deficit continues to narrow and public debt is slightly lower for the first time since the crisis. Finland continues to exhibit a strong performance across all the analyzed dimensions, despite its drop of one place to 4th position. This decline is mainly driven by a slight deterioration of its macroeconomic conditions (43rd), which has led some rating agencies to downgrade the outlook of this Nordic economy. More precisely, Finland suffers from higher, though still manageable, deficit and public debt level, and its savings rate has slightly decreased. Nevertheless, the country continues to boast well-functioning and highly transparent public institutions (1st), at the very top in many of the indicators included in this category, and high-quality infrastructure (19th). The functioning of its products market is also good (18th), financial development is very high (5th), and the country manages to use its existing talent efficiently (7th) despite some persistent rigidities in its labor market, most notably in terms of wage determination (143rd), which is regarded as one of the most problematic factors for doing business. Its biggest competitiveness strength lies in its capacity to innovate, where the country leads the world rankings (1st). Very high public and private investments in R&D (3rd), with very strong linkages between universities and industry (1st) coupled with an excellent education and training system (1st) and one of the highest levels of technological readiness (11th) drive this outstanding result. Germany drops one place to 5th position this year. The small drop is the result of some concerns about institutions and infrastructure and is only partially balanced out by improvements in the country’s macroeconomic environment and financial development. Moreover, Germany’s education system is assessed less positively than it was in previous years (16th, down from 3rd) because the indicator measuring the country’s tertiary enrollment rate became available. Overall, Germany weathered the global economic crisis of recent years quite well thanks at least partly to its main competitiveness strengths, which include highly sophisticated businesses (3rd) and an innovation ecosystem that is conducive to high levels of R&D innovation (6th). Companies spend heavily on R&D (5th) and can rely on an institutional framework, including collaboration with universities (10th) and research labs (8th), to support their innovation efforts. Innovation is also supported because companies, which are predominantly medium-sized, often operate in niche markets and are located in close geographical proximity to each other (3rd on cluster development). This fosters the exchange of learning among businesses and facilitates the development of new goods and services. Highquality infrastructure (7th) and excellent on-the-job training (6th) complement these strengths. The topnotch German on-the-job training system ensures that technical skills for companies are widely available and that skills match the needs of businesses. Germany’s economy could be more competitive if its labor markets were made even more efficient. In recent years, labor market efficiency has improved markedly, rising from the 53rd position in 2012 to 35th this year. However, some recent decisions, such as the introduction of a minimum wage, could reverse this positive trend. In the context of declining population growth, a more holistic approach to immigration and more incentives for women to remain in the labor market are going to be crucial for the country to ensure a supply of talent. Last but not least, continued efforts toward strengthening its fiscal situation will be key to reducing the country’s high public debt (118th). Up three places to reach 6th position overall, Japan posts the largest improvement of the top 10 economies, thanks to small improvements across the board. Japan continues to enjoy a major competitive edge in business sophistication (1st for the sixth consecutive year) and in innovation (4th, up one position). High R&D spending (2nd), excellent availability of talent (3rd), world-class research institutions (7th), and a high capacity to innovate (7th) are among Japan’s strengths. Indeed, in terms of innovation output, these strengths pay off: the country has the second-highest number of patent applications per capita in the world. Further, companies operate at the highest end of the value chain, producing © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 21 1.1: The Global Competitiveness Index 2014–2015 high-value-added goods and services. However, the country’s overall competitive performance continues to be dragged down by severe macroeconomic challenges (127th). For the past five years, its budget deficit has been hovering around 10 percent of GDP, one of the highest ratios in the world, while public debt now represents more than 240 percent of the country’s GDP. At least the country’s battle against deflation has started bearing fruit: prices in 2013 increased for the first time in five years—by a low 0.4 percent. Another area of concern is the situation in the labor marked (22nd). Japan ranks 133rd in the indicator capturing the ease of hiring and firing workers. In addition, the participation of women in the labor force (88th) is one of the lowest among OECD members. Featured in the top 10 since 2012, Hong Kong SAR retains its 7th position. It tops the infrastructure pillar, reflecting the outstanding quality of its facilities across all modes of transportation. The economy also continues to dominate the financial market development pillar, owing to the high level of efficiency, trustworthiness, and stability of its system. As in the case of Singapore, the dynamism and efficiency of Hong Kong’s goods market (2nd) and labor market (3rd) further contribute to its excellent overall positioning. Hong Kong is also one of the most open economies in the world. In order to enhance its competitiveness, Hong Kong must improve on higher education (22nd) and innovation (26th, down three places this year). In the latter category, the quality of its research institutions (32nd, down one) and the limited availability of scientists and engineers (36th, down four) remain the two key issues to be addressed. In building a truly innovation-driven economy, Hong Kong can rely on its high degree of technological readiness (5th). As in the last edition, the Netherlands retains its 8th place this year and depicts a stable competitiveness profile. Overall, the country continues to depict a set of important competitiveness strengths that allow its economy to remain highly productive. An excellent education and training system (3rd), coupled with a strong adoption of technology (9th), including ICTs (8th), and an excellent innovation capacity (8th) result in highly sophisticated businesses (5th) that manage to compete at the very high end of international value chains. In addition, efficient institutions (10th), worldclass infrastructure (4th), and highly competitive (5th) and open products markets (6th) complete the impressive list of the country’s assets. Notwithstanding these strengths, the otherwise excellent Dutch performance is somewhat hindered by some persistent rigidities in its labor market, especially in terms of hiring and firing practices (123rd) and wage determination (135th)—these rigidities are regarded as the most problematic factor for doing business in the country. Furthermore, the current weaknesses of its financial system (80th), which are a 22 The Global Competitiveness Report 2014–2015 consequence of the housing bubble, have made access to credit (48th) more difficult. The United Kingdom climbs one spot to the 9th place. Overall, the country improves its performance thanks to gains derived from lower levels of fiscal deficit and public debt. In addition to these more favorable macroeconomic conditions, the United Kingdom continues to benefit from an efficient labor market (5th) and a high level of financial development (15th), despite the recent difficulties in parts of its banking system (89th) and the fact that the difficult access to loans (82nd) remains the most problematic factor for doing business in the country. In addition, the country benefits from an ICT uptake that is one of the highest in the world (2nd) and that, coupled with a highly competitive (5th) and large market (6th), allows for highly sophisticated (6th) and innovative (12th) businesses to spring up and develop. In addition to continuing to improve its macroeconomic conditions (107th), the country should look into effective ways to raise the overall quality of its education system (23rd), most notably in the areas of mathematics and science (63rd), which will be crucial to continue fostering innovation in the country. Sweden, despite a rather stable competitiveness profile across all areas, falls four places this year to round up the top 10 rankings. Overall the country boasts important strengths across the board, with strong institutions (13th) that are regarded as transparent and efficient, excellent infrastructure (22nd), and healthy macroeconomic conditions (17th) that include low levels of fiscal deficit and public debt, allowing the country to maintain its triple-A rating throughout the recent financial and economic crisis. Moreover, and perhaps more importantly, Sweden has managed to create the right set of conditions for innovation and unsurprisingly scores very high in many of the dimensions that are key to creating a knowledge-based society. More precisely, the Swedish education and training system (14th) is of high quality and seems to deliver the right set of skills for an innovation-based economy; ICT adoption (3rd) is among the highest in the world; and, in terms of innovation capacity (6th), firms are among the best performing. In addition, the country has also formed highly competitive markets (21st), which produce the right set of incentives to quickly transform those knowledge assets into new products and services with higher value-added. Going forward, the country should address its labor market regulations (59th) and the potential distortions that a high tax rate system (119th) may create, as these two elements are considered the two most problematic factors for doing business in the country. Europe and Eurasia Six European countries are ranked among the top 10 most competitive economies, while at the same time, many countries in Southern and Central and © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Eastern Europe—such as Portugal, Italy, Bulgaria, Romania, and Greece—score relatively low, ranking 36th, 49th, 54th, 59th, and 81st, respectively. This wide-ranging performance highlights the persistence of a competitiveness divide in Europe between a highly competitive Northern Europe and a less competitive Southern and Eastern Europe. A more nuanced analysis of the results also reveals that a new divide seems to be emerging among those countries whose competitiveness is currently lagging. This new divide appears to be between those economies that are adopting and implementing the reforms necessary to become more competitive—these include countries such as Greece and Portugal that are now improving in the overall rankings—and some other economies, such as France and Italy, which are not recording much progress. Denmark improves by two positions to reach 13th place on the back of a slight rebound in the assessment of its institutions and financial markets as well as more favorable macroeconomic conditions, which together have allowed the country to close the European Commission’s formal procedure that assesses excessive deficits. Similar to its Nordic neighbors, Denmark continues to benefit a well-functioning and highly transparent institutional framework (16th). The country also continues to receive a first-rate assessment for its higher education and training system (10th), which has provided the Danish workforce with the skills needed to adapt rapidly to a changing environment and has laid the ground for high levels of technological adoption and innovation. A continued strong focus on education would allow the workforce to maintain the skill levels needed to provide the basis for sustained innovation-led growth. A marked difference from the other Nordic countries relates to labor market flexibility, where Denmark (12th) continues to distinguish itself as having one of the most efficient labor markets internationally, with flexible regulations; strong labor-employer relations; and a very high percentage of women in the labor force. Despite the drop of one position that leads to Belgium’s 18th place in the rankings, the country has slightly improved its competitiveness score thanks to a better macroeconomic performance with a lower public deficit, which remains below 3 percent of its GDP. Furthermore, in addition to boasting an outstanding education and training system (5th)—with excellent math and science education (3rd), top-notch management schools (2nd), and a strong propensity for on-the-job training (4th)—the country benefits from a high level of technological adoption (15th) and highly sophisticated (10th) and innovative (13th) businesses that carry out their activities in a market characterized by high competition (6th) and an environment that facilitates new business creation. Notwithstanding these strengths, some concerns remain about the efficiency of Belgium’s government (64th); its regulatory burden (130th); its highly distortionary tax system (126th), which reduces incentives to work (141st); and the cost of the country’s public debt—which is close to 100 percent of GDP. Following the completion of its EU-IMF–supported program, this year Ireland experiences a slight rebound and climbs by three places to reach the 25th position, which reflects its financial market recovery. Yet its macroeconomic situation remains difficult at a low 130th place, characterized by a high budget deficit (although down from the historic highs of four years ago) and high government debt. Despite these economic woes, the country features strong foundations for its long-run competitiveness: the functioning of its goods and labor markets, ranked 10th and 18th respectively, is solid, and its business culture is highly sophisticated and innovative (ranked 20th for both); this is buttressed by excellent technological adoption (12th). In addition, equipped with its excellent health and primary education system (8th) and strong higher education and training (17th), the country can draw on a well-educated workforce, although the high levels of emigration in recent years— particularly of its young population—suggests that fewer young people will be available in the future. France retains its 23rd position after dropping for four consecutive years. The government has promised a “competitiveness shock” and is considering a number of business-friendly measures, including a simplification of administrative procedures, in order to revive growth and reduce the country’s stubbornly high level of unemployment. Traditionally a black spot, the situation of France’s labor market has improved markedly over the year (61st, up 10), thanks to increased flexibility, although it still remains a challenge (107th, up nine). By contrast, the fiscal situation—the second area of major concern—continues to deteriorate (82nd, down nine). The small reduction in the budget deficit is accompanied by an increase in public debt and a downgrading of France’s creditworthiness. The country retains a number of clear competitive advantages, however. Its infrastructure is still among the best in the world. France also obtains good marks for the quality and quantity of education at all levels, and it boasts a high degree of technological adoption (17th). In addition, the country’s business culture is highly professional and sophisticated (22nd). These three strengths contribute to creating a relatively conducive ecosystem for innovation (19th). However, on this dimension, France trails Germany, the United Kingdom, and the Scandinavian countries by a significant margin. Estonia remains the best performing country in Eastern Europe and improves by three places to reach 29th overall. The country boasts a solid competitiveness profile with strong, transparent, and efficient institutions (26th); a solid macroeconomic environment (20th); and high levels of education and training (20th). Its labor market is also more efficient than in most countries in the © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 23 1.1: The Global Competitiveness Index 2014–2015 region (11th). To further strengthen its competitiveness, Estonia should focus on strengthening innovation (30th) and business sophistication (48th) in order to ensure that product and process innovation continues to enhance the country’s productivity. Further investment in infrastructure (38th) would also be warranted, as transport infrastructure in particular is not yet up to Western European standards (58th). Iceland moves up one place to 30th position this year, the result of an improving macroeconomic situation and an easing of financial concerns. Despite its significant difficulties in these areas in recent years, Iceland continues to benefit from a number of clear competitiveness strengths in moving toward a more sustainable economic situation. These include the country’s top-notch education system at all levels, its 10th and 13th ranks in the health and primary education and higher education and training pillars, respectively, coupled with a relatively innovative business sector (27th) that is highly adept at adopting new technologies for productivity enhancements (8th). Business activity is further supported by an efficient labor market (14th) and well-developed infrastructure (23rd). Spain remains stable at 35th place. The important reform program the country has embarked on has resulted in curbing the high budget deficit of past years, although it remains high (128th); improving the robustness of the financial sector (85th); cutting red tape to foster entrepreneurship (99th); and enhancing flexibility (120th) in the labor market, although much remains to be addressed. However, a weakening in the perceived functioning of institutions, notably with worse scores in terms of corruption (80th) and government efficiency (105th), offsets these improvements in the GCI. Overall, as in past years, Spain continues to benefit from excellent transport infrastructure (6th), high levels of connectivity (18th), and a large share of the population that pursues higher education (8th) who—should the quality of the education system improve (88th)—could provide a skillful labor force able to contribute to the structural change the country requires. Notwithstanding these strengths and improvements in certain areas, Spain continues to suffer from poor access to loans (132nd), a rigid labor market (120th), difficulty in attracting (103rd) and retaining talent (107th), and an insufficient capacity to innovate (60th)—the result of low R&D investments (52nd) and weak university-industry collaborations (57th). After falling in the rankings for several years, Portugal decisively inverts this trend and climbs 15 positions to reach 36th place. The ambitious reform program the country has adopted seems to have started paying off as gains appear across the board, most notably in areas related to the functioning of the goods market: Portugal now has less red tape to start a business (5th), and its labor market shows 24 The Global Competitiveness Report 2014–2015 increased flexibility, although more remains to be done (119th). In addition to these improvements, the country can continue to leverage its world-class transport infrastructure (18th) and highly educated labor force (29th). At the same time, Portugal should not be complacent and should continue with a full implementation of its reform program in order to keep addressing some of its persistent macroeconomic concerns (128th) caused by high levels of deficit (107th) and public debt (138th); strengthening its financial sector (104th) so that credit can start flowing (108th); further increasing the flexibility of its labor market; and raising the quality of education (40th) and innovation capacity (37th) to support the economic transformation of the country. The Czech Republic advances by nine places this year to attain 37th position, improving in half of the pillars and thus reversing a five-year downward trend. Institutions (76th) improve by 10 places, although from very low levels for some indicators, and major concerns remain about corruption and undue influence (with public trust in politicians ranked an extremely low 138th). The country’s economic recovery is also reflected in a sounder macroeconomic environment—the budget deficit fell below the 3 percent mark, leading to a closing of the European Commission’s excessive government procedure—and an improvement in borrowing conditions in the financial market (up to 40th in financial market efficiency). Our data also point to improvements in health and primary education, thanks to a higher primary enrollment rate, as well as gradual improvements in the labor market (62nd), albeit from low levels. More specifically, although cooperation in labor-employer relations and the flexibility of wage determination are perceived more favorably (52nd and 43rd, respectively) than in last year’s edition, regulations are rigid (121st) and the country’s capacity to attract and retain talent remains limited. Likewise, the share of women in the labor force remains comparatively low. Going forward, the Czech Republic needs to explore ways to transition to a knowledge economy in view of its stage of development: compared with other economies at the same stage, technological readiness remains low (36th) and Czech businesses—although doing comparatively well in a regional context—are less sophisticated and innovative than other economies in the European Union. The country’s competitiveness would be further enhanced by improvements to its higher education system, where the Czech Republic, at rank 35, features among the 10 lowest ranked EU economies. Poland maintains its positioning overall and comes in at 43rd place. The improvements Poland has made in institutions, infrastructure, and education and its increased flexibility in labor market efficiency are steps in the right direction to boost the country’s competitiveness. Continued structural reforms geared © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 toward strengthening its innovation and knowledgedriven economy will be necessary for Poland to sustain its growth going forward. The country can build on a fairly well educated population, well-developed financial markets, and a market that is by far the largest in the region. Transport infrastructure, however, despite notable improvements, remains weak (78th) by European standards. Some aspects of institutions, such as the burden of its regulations (117th), its rather inefficient legal framework for settling business disputes (118th), and difficulties in obtaining information on government decisions for business (110th) also need to be addressed on a priority basis. And as the country slowly emerges from the economic slowdown of 2012 and 2013, Poland should focus on further improving labor market efficiency and strengthening business sophistication (63rd) as well as on its business sector’s capacity for innovation (72nd). To bolster its innovative capacity, the next set of reforms should focus on reinforcing its innovation ecosystem in close collaboration with the private sector to enable a sustainable growth path for the country. With a stable score, Italy retains 49th position, despite a deterioration in the functioning of its institutions (106th) and with a poor assessment on government efficiency (143rd), continued macroeconomic concerns that result from the large public debt, and a very rigid labor market (136th) that hinders employment creation. Overall, Italian companies—most notably small and medium-sized enterprises (SMEs)—continue to suffer from weak access to financing (139th) that, coupled with a high tax rate (134th), affects their investment capacity. In addition, as already mentioned, the labor market remains very rigid (136th) and unable to make an efficient use of the country’s talent (130th). The reform program currently being designed, if implemented properly, should help in addressing some of these weaknesses and allow Italy to leverage its competitiveness strengths, which lie in its sophisticated business community (25th) with a good potential to innovate (39th) and its large and diversified market (12th) that should allow for important economies of scale and scope. The Russian Federation is placed at 53rd position this year with some improvements related to the efficiency of goods markets (in particular domestic competition), ICT use, and business sophistication— although this arguably reflects some positive developments that took place before the Ukraine conflict started. At the time of writing, the Russian economy continues to face many deeply rooted challenges that will have to be addressed for the country to strengthen its competitiveness. Russia’s weak and inefficient institutional framework (97th) remains its Achilles heel and will require a major overhaul in order to eradicate corruption and favoritism (92nd) and re-establish trust in the independence of the judiciary (109th). Diversification of the economy will need reinforcing the very small SME sector as well as continued progress toward a stronger and more stable financial system (110th). These challenges prevent Russia from taking advantage of its competitiveness strengths, which are based on a well-educated population, fairly high levels of ICT use (47th), and its solid potential for innovation (65th). Going forward, the reverberations of the Ukraine conflict— such as sanctions and potential disruptions to the gas trade—could affect the country’s competitiveness. These implications could be especially serious given the reliance of the education and innovation sectors on public funding, which will become more scarce than it has been in previous years and for accessing technology developed abroad. Ukraine moves up from 84th to 76th position, arguably reflecting expectations associated with its transition to a new government following the Euromaidan protests. The conflict in the eastern part of the country and in Crimea did not affect the results of the exercise in a substantial way, because it was still localized at the time when the Survey was conducted, yet it will most likely affect the country’s competitiveness going forward. The improvements in the GCI reflect more positive perceptions of institutions and the efficiency of markets. Other improvements reflect better educational outcomes, seen in a higher primary enrollment rate and more ICT use by individuals and business. At the time of writing, restoring peace in Eastern Ukraine is undoubtedly the country’s highest priority. However, far-reaching reforms will be necessary in order to put economic growth on a sustainable footing. These include an overhaul of the institutional framework (130th), along with measures to reduce the dominance of large companies in domestic markets (129th) and to make markets more competitive (125th) and hence more efficient (112th). A strengthening of financial markets would further help stabilize the economy and enable Ukraine to better take advantage of its numerous competitiveness strengths, such as its welleducated population and its market size, which is fairly large in the European context. The most recent addition to the EU family, Croatia, is the second best performing country in Southeastern Europe at 77th place overall. The country boasts solid infrastructure (44th), especially in roads and electricity, and benefits from relatively high levels of education and training (53rd), although the quality of its education needs to be improved (55th). Companies and individuals use ICTs fairly widely in regional comparison (40th), and the country is open to foreign trade, with low tariffs and well-functioning customs procedures. Going forward, Croatia will need to continue strengthening its institutional framework (87th) and foster the efficiency of its market for goods and services. According to business executives, domestic markets are dominated by few firms and taxation is burdensome, even if low by international comparison. The country will also need to © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 25 1.1: The Global Competitiveness Index 2014–2015 focus on strengthening its macroeconomic environment, which remains burdened by a fairly high budget deficit. As Croatia will move into the innovation-driven stage of development in the coming years, it will need to start putting measures into place that incentivize and enable companies to innovate more. Currently, its businesses’ capacity for innovation is low according to business executives, although research institutes are assessed more favorably (53rd) and the country’s patenting rate is moderately strong (36th). Following the recovery that started last year, Greece advances 10 spots to reach 81st place. Improvements in the functioning of its goods market (85th) with enhanced levels of competition (71st) and more flexible labor markets (although they remain rather rigid, 117th), along with a better macroeconomic performance with a sharp reduction in the budget deficit, have resulted in this more positive outlook despite its very high levels of government debt. All this suggests that the implemented reforms are starting to pay off. Notwithstanding this better performance, Greece continues to face important challenges that need to be addressed in order to continue improving its competitiveness. More precisely, the functioning of its institutions remains weak and it achieves a poor evaluation for government efficiency (129th), its financial market (130th) has not yet recovered from the recent financial crisis, there are concerns about the soundness of its banks (141st), and access to financing (136th) remains the most problematic factor for doing business in the country. Moreover, in order to support a structural change of the Greek economy so that it can move toward more productive, knowledgebased activities, it will need to boost its innovation capacity (109th). That will require improvements in the quality of its education system (111th) as well as higher investments in knowledge-generating activities, such as R&D (114th). Asia and the Pacific The competitiveness landscape in the Asia and the Pacific region remains one of stark contrasts. The region is home to three of the 10 most competitive economies in the world: Singapore, Japan, and Hong Kong SAR. A further three economies are featured in the top 20: Taiwan (China), New Zealand, and Malaysia (20th), which is the best ranked of Emerging and Developing Asian nations. At 28th, China stands some 40 places ahead of India, the other regional economic giant. At the other end of the regional spectrum, five countries rank below the 100th mark, although encouragingly they are all progressing to different degrees: Nepal (102nd, up 15 places), Bhutan (103rd, up six), Bangladesh (109th, up one), Myanmar (134th, up five), and Timor-Leste (136th, up two). The competitiveness gap between South Asian and Southeast Asian nations runs deeper than before. The five largest Southeast Asian economies (ASEAN-5) 26 The Global Competitiveness Report 2014–2015 all feature in the top half of the rankings, and all of them have made strides in this edition: Malaysia gains four places, Thailand is up six, Indonesia four, the Philippines seven, and Vietnam advances two places. Since 2009, they have improved their group performance in every edition. In South Asia, among the region’s six countries covered by the GCI, only India features in the top half of the rankings. Since 2009, the average GCI score of the South Asian Association for Regional Cooperation (SAARC) countries has stagnated. Because of the region’s diversity, the challenges vary enormously, but a few common priorities can be identified. For the most advanced economies, such as Japan, the Republic of Korea, and Taiwan (China), one common challenge is the rigidity of their labor markets. They must also set up an ecosystem that is better at creating truly disruptive innovations. For countries such as Malaysia, the goal is to transform the economy to become more knowledge-driven in order to avoid the middle-income trap. In China, more reforms and liberalization are needed to improve market efficiency, increase competition, and encourage a more optimal allocation of financial resources. In most emerging Asian economies, common challenges include addressing the huge infrastructure deficit and improving regional connectivity; reducing red tape, which will promote economic formality and entrepreneurship and reduce pervasive and deep-rooted corruption; and improving market efficiency by phasing out distortionary measures. As the region’s poorest economies—such as India and Myanmar—are transitioning away from agriculture and developing a manufacturing base, they will need to create a sound and stable institutional framework for local and foreign investors and improve connectivity. Taiwan (China) ranks 14th, dropping two places despite maintaining its score. The third of the Asian Tigers, behind Singapore and Hong Kong SAR, its performance has been very stable over the past six years. Notable strengths include its capacity to innovate (10th, down two), its highly efficient goods markets (11th), its world-class infrastructure (11th), and strong higher education (12th). In order to enhance its competitiveness, Taiwan will need to further strengthen its institutional framework (27th), whose quality is undermined by some inefficiency within the government (29th) and various forms of corruption (31st), and will also need to address some inefficiencies and rigidities in its labor market (32nd). As elsewhere in Asia, encouraging and facilitating the participation of women in the workforce (89th) would contribute to enhancing competitiveness. New Zealand advances one rank to 17th place— its best rank since the introduction of the current GCI methodology. Among the highlights, the country is ranked 1st in the institutions pillar and features in the top 10 of five more pillars. In particular, New Zealand ranks third in the financial market development pillar. It boasts © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 an excellent education system (9th), while the efficiency of its goods (6th) and labor (6th) markets is among the highest in the world. Australia (22nd) follows an opposite trend. Since reaching its best rank—15th—in 2009, Australia has been dropping continuously in the rankings. However, although not outstanding, the country’s performance is remarkably consistent across the board. It ranks no lower than 30th in 11 of the 12 pillars of the GCI. It achieves its best rank in the financial market development pillar, advancing one position to 6th place. In particular, the soundness of its banking sector is especially strong (3rd, behind Canada and New Zealand). The country also posts gains in higher education and training, climbing to 11th position. Australia’s macroeconomic situation has deteriorated slightly (30th, down five places), owing mainly to the small increase of the budget deficit. Australia’s public debt-to-GDP ratio, though rising, is the fourth lowest among OECD countries. Overall, the quality of Australia’s public institutions is excellent (22nd) but tarnished by the 124th position it obtains for the extent of red tape. The main area of concern remains the labor market. Australia ranks 136th for the rigidity of its hiring and firing practices and 132nd for the rigidity of its wage setting. Indeed, as part of our Executive Opinion Survey, Australian businesses, year after year, have named the restrictive labor regulations the most problematic factor for doing business in their country by a wide margin. Continuing its upward trend, Malaysia makes its way into the top 20 for the first time since the current GCI methodology was introduced in 2006. The country remains the highest ranked among the developing Asian economies. Malaysia advances nine positions in the institutions pillar, which largely drives this year’s progress. It ranks no lower than 60th in any of the 12 pillars of the GCI. It ranks an outstanding 4th in the financial market development pillar, which reflects its efforts to position itself as the leading center of global Islamic finance. And it ranks 7th in the efficiency of its goods and services markets and a business-friendly institutional framework (29th). In a region plagued by corruption and red tape, Malaysia stands out as one of the very few countries that have been relatively successful at tackling these two issues, as part of its economic and government transformation programs. The country, for instance, ranks an impressive 4th for the burden of government regulation, although its score differential with the leader in this area, Singapore, remains large. Malaysia ranks a satisfactory 26th in the ethics and corruption component of the Index, but room for improvement remains. Furthermore, Malaysia ranks 11th for the quality of its transport infrastructure, a remarkable feat in this part of the world, where insufficient infrastructure and poor connectivity are major obstacles to development for many countries. Finally, Malaysia’s private sector is highly sophisticated (15th) and already innovative (21st). All this bodes well for a country that aims to become a high-income, knowledge-based economy by the end of the decade. Amid this largely positive assessment, the government budget deficit, which represented 4.6 percent of GDP in 2013 (102nd); the low level of female participation in the workforce (119th); and the still comparatively low technological readiness (60th) stand out as some of Malaysia’s major competitive challenges. After exiting the top 20 last year, the Republic of Korea (26th) drops one more position. Its performance remains uneven across the different dimensions of the Index. The country loses further ground in two of the three areas in which historically it has performed poorly. It now ranks 82nd (down eight places) in the institutions pillar and 86th (also down eight) in the labor market efficiency category. Although stable, the financial market development pillar remains a sore point (80th, up one), preventing Korea from closing the competitiveness gap with the three other Asian Tigers. On a brighter note, Korea possesses a remarkably sound macroeconomic environment (7th, second only to Norway among OECD countries). The country also boasts excellent infrastructure (14th), and enrollment rates at all levels of education are among the highest in the world. These factors, combined with the country’s high degree of technological adoption (25th) and relatively strong business sophistication (27th), contribute to explaining its remarkable capacity for innovation (17th). Up one position, China ranks 28th. The country continues to lead the BRICS economies by a wide margin—well ahead of Russia (53rd), South Africa (56th), Brazil (57th), and India (71st). Small gains in most pillars of the GCI contribute to creating a more conducive ecosystem for entrepreneurship and innovation: higher education and training (65th, up five); business sophistication (43rd, up two); and the technological readiness pillar, which constitutes China’s weakest showing in the GCI, (83rd, up two). Problems endure in the critically important financial sector (54th), the assessment of which is weakened by the relative fragility of the banking industry. Access to loans remains very difficult for a large number of SMEs. The functioning of the market (56th, up five) is also improving, but various limiting measures and barriers to entry, along with investment rules, greatly limit competition. China is becoming more innovative (32nd), but it is not yet an innovation powerhouse. There is very little change in the assessment of the country’s governance structures (47th). Government efficiency is improving (now 31st), but corruption (66th), security concerns (68th, up seven), and low levels of accountability (80th, up two) and lack of transparency (43rd) continue to weaken the institutional framework. The macroeconomic situation remains favorable (10th): inflation is below 3 percent; budget © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 27 1.1: The Global Competitiveness Index 2014–2015 deficit has been reduced; and public debt-to-GDP ratio, at 22.4 percent, is among the lowest in the world. Gross savings rate amounts to a staggering 50 percent of GDP. This rate is probably too high in light of the need for China to rebalance its economy away from investment and toward more consumption. Despite the persistence of bottlenecks, the country also boasts good transport infrastructure and connectivity (21st), thanks to decades of massive investments. Trends are largely positive, but now is not the time for China to be complacent. The country is no longer an inexpensive location for laborintensive activities and is losing manufacturing jobs to less-developed countries and even to some more advanced economies. China must now create the highvalue jobs that will sustain the increasing standards of living. Despite its prolonged political crisis, Thailand advances six places to 31st position. The country moves up 12 places in the macroeconomic environment pillar and now ranks 19th, its best showing among the 12 pillars. In 2013, Thailand almost balanced its budget and reduced inflation to 2 percent. Public debt remained stable and the savings rate was high. Thailand continues to do well in the financial development (34th) and improves its already strong showing in the market efficiency pillar (30th, up four). However, market competition remains limited by a number of barriers to entry, especially those affecting foreign investments. Considerable challenges remain in other areas: first and foremost these relate to governance. Political and policy instability, excessive red tape, pervasive corruption, security concerns, and high uncertainty around property rights protection seriously undermine the institutional framework (93rd in the public institutions subpillar, down eight). In most of these areas, Thailand ranks below the 100th mark. In particular, the level of trust in politicians is among the lowest in the world (129th). Another concern is the mediocre quality of education at all levels (87th, down nine) and the still low level of technological readiness pillar (65th), although Thailand shows marked improvement in this area (up 13). It must be noted that all the data used in our assessment were collected before the most recent developments—including the military coup of May 2014—took place. Up four notches to 34th place, Indonesia, Southeast Asia’s largest country, continues its progression in the overall rankings. This improvement in competitiveness will probably contribute to sustaining the country’s impressive momentum—its GDP grew by 5.8 percent annually since 2004—under the new leadership. That said, Indonesia’s overall performance remains uneven. Infrastructure and connectivity continue to improve: up five places from last year and 20 places since 2011, Indonesia now ranks 56th in the related GCI pillar. The quality of public and private governance is strengthening: Indonesia is up 14 places to 53rd 28 The Global Competitiveness Report 2014–2015 as a result of improvement in 18 of the 21 indicators composing this pillar. In particular, Indonesia ranks a remarkable 36th place for government efficiency. Corruption remains prevalent (87th) but has been receding for several years. The macroeconomic situation deteriorated between 2012 and 2013 on the back of a higher deficit, but remains satisfactory (34th, down eight). The situation of its labor market (110th, down seven) remains by far the weakest aspect, owing to rigidities in terms of wage setting and hiring and firing procedures— for instance, the World Bank estimates that, on average, the cost associated with making a worker redundant is equivalent to 58 weeks of salary (139th). Furthermore, the participation of women in the workforce remains low (112th). Another area of concern is public health (99th). The incidence of communicable diseases and the infant mortality rate are among the highest outside sub-Saharan Africa. Turning to the more sophisticated drivers of competitiveness, Indonesia’s technological readiness is lagging (77th). In particular, the use of ICTs by the population at large remains comparatively low (94th, down 10). Up seven places, the Philippines (52nd) continues its upward trend. The country’s gain of 33 places since 2010 is the largest over that period among all countries studied. The results suggest that the reforms of the past four years have bolstered the country’s economic fundamentals. The trends across most of the 12 pillars are positive, and in some cases truly remarkable. In the institutions pillar (67th), the Philippines has leapfrogged some 50 places since 2010. In particular, there are signs that the efforts made against corruption have started bearing fruit: in terms of ethics and corruption, the country has moved from 135th in 2010 to 81st this year. The recent success of the government in tackling some of the most pressing structural issues provides evidence that bold reforms can yield positive results relatively quickly. A similar pattern is observed in terms of government efficiency (69th) and the protection of property rights (63rd). Finally, the Philippines has made significant strides in terms of technological adoption (69th, up eight). The country is one of the best digitally connected developing Asian nations, close behind Malaysia (60th) and Thailand (65th). The same cannot be said of infrastructure, however, which remains poor (91st), especially with respect to airport (108th) and seaport (101st) infrastructure. The situation is just as worrisome in the labor market, which suffers from rigidities and inefficiencies: the Philippines ranks a mediocre 91st in this dimension and almost no progress has been made since 2010. Finally, security remains an issue (89th), in particular in terms of costs that the threat of terrorism imposes on businesses (110th). Continuing on its downward trend and losing 11 places, India ranks 71st. The country’s new government faces the challenge of improving competitiveness and © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Box 2: India’s competitiveness crisis Despite its immense potential and promise, by many accounts India continues to suffer from poverty. A third of its population still lives in extreme poverty—possibly the highest incidence outside sub-Saharan Africa—and many people still lack access to basic services and opportunities, such as sanitation, healthcare, and quality schooling. Improving the standards of living of the Indian population will require the country to accelerate its growth. Yet, since 2011, India has experienced a slowdown. In 2013, its economy grew by a modest 4.4 percent (see Figure 1). Improving competitiveness in order to put growth on a more stable footing should therefore be a priority for the new government. Dropping for the sixth consecutive edition, India ranks 71st (down 11) out of 144 economies in the Global Competitiveness Index (GCI) 2014-2015 (see Figure 2). It is the lowest ranked among the BRICS economies. The rank differential with China (28th) has grown from 14 places in 2007 to 43 today; while India’s GDP per capita was higher than China’s in 1991,1 today China is four times richer (see Figure 1). This competitiveness divide helps to explain the different trajectories of these two economies. India’s slide in the competitiveness rankings began in 2009, when its economy was still growing at 8.5 percent (it even grew by 10.3 percent in 2010). Back then, however, India’s showing in the GCI was already casting doubt about the sustainability of this growth.2 Since then, the country has been struggling to achieve growth of 5 percent. The country has declined in most areas assessed by the GCI since 2007, most strikingly in institutions, business sophistication, financial market development, and goods market efficiency. Figure 3 sheds light on the main strengths and weaknesses of India’s competitiveness and presents the country’s performance along the 12 dimensions of the GCI. Overall, India does best in the more complex areas of the GCI: innovation (49th) and business sophistication (57th). In contrast, it obtains low marks in the more basic and more fundamental drivers of competitiveness. For instance, India ranks 98th on the health and primary education pillar. The health situation is indeed alarming: infant mortality and malnutrition incidence are among the highest in the world; only 36 percent of the population have access to improved sanitation; and life expectancy is Asia’s second shortest, after Myanmar. On a more positive note, India is on track to achieve universal primary education, although the quality of primary education remains poor (88th) and it ranks a low 93rd in the higher education and training pillar of the GCI. Transport and electricity infrastructure are in need of upgrading (87th). In 2012, a working group appointed by the Planning Commission of India had recommended that a trillion US dollars—or almost 10 percent of India’s GDP—be 20 10,000 16 8,000 12 6,000 GCP growth   China 8 4,000 4 2,000 0   India GDP per capita (PPP$) Real GDP growth (annual percent change) Figure 1: GDP growth and GDP per capita of India and China since 1980 GDP per capita   China   India 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 Source: IMF 2014c. (Cont’d.) reviving the economy, which is growing at half the rate of 2010. Box 2 details India’s performance. Up two positions, Vietnam ranks 68th, with a performance almost unchanged from last year. Following an episode of double-digit inflation in 2011, its macroeconomic situation continues to improve (75th, up 12 positions), as inflation declined to 6.6 percent. Public institutions also receive a better assessment (85th, up five), on the basis of better property rights protection (104th, up nine), improved efficiency (91st, up 13), and a lower level of perceived corruption (109th, up seven). Progress in this area occurs from a low base, however. The quality of transport and energy infrastructures also improves slightly (81st). In a region where many © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 29 1.1: The Global Competitiveness Index 2014–2015 Box 2: India’s competitiveness crisis (cont’d.) spent on infrastructure by 2017.3 Given the country’s strained public finances, addressing the infrastructure gap will require very strong participation on the part of private and foreign investors through public-private partnerships. But for these types of investments to materialize, the institutional framework needs to improve. There are encouraging signs. India has achieved spectacular progress in various measures of corruption and now ranks 65th. Red tape seems to be less of an issue than it had been, and government efficiency is equally improving. However, the overall business environment and market efficiency (95th, down 10 places) are undermined by protectionism, monopolies, and various distortionary measures, including subsidies and administrative barriers to entry and operation. The World Bank estimated that it takes 12 procedures (130th) and almost a month to register a business (106th). In addition, it calculated that taxes for a typical registered firm amount, on average, to 63 percent of its profits (130th). Furthermore, the labor market is inefficient and rigid (112th). These factors contribute to the high cost of integrating more businesses into the formal economy. Some estimates find that the informal sector accounts for half of India’s economic output and 90 percent of its employment.4 It is therefore urgent that the government create the right incentives for businesses to register and contribute their fair share to the provision of public services. India achieves its lowest rank among the 12 pillars in technological readiness (121st). Despite mobile telephony being almost ubiquitous, India is one of the world’s least digitally connected countries. Only 15 percent of Indians access the Internet on a regular basis. Broadband Internet, if available at all, remains the privilege of a very few. India’s knack for frugal innovation should contribute to providing cheap solutions for bridging this digital divide. The financial resources required for delivering basic services, including sanitation and healthcare, and for improving India’s physical and digital connectivity are considerable. But India’s fiscal situation remains in disarray, as evidenced by the country’s 101st rank in the macroeconomic environment pillar of the GCI. With the exception of 2007, the central government has consistently run deficits since 2000. Because of the high degree of informality, its tax base is relatively narrow, representing less than 10 percent of GDP. In addition, over the past several years India has experienced persistently high, in some years near double-digit, inflation, which reached 9.5 percent in 2013. The Reserve Bank of India is torn between keeping Figure 2: Historical performance of selected countries in the Global Competitiveness Index 100 India’s overall GCI rank Year 81% Percentile rank 80 74% 60 63% 51% 40 Rank 2007–2008 48th/131 2008–2009 50th/134 2009–2010 49th/133 2010–2011 51st/139 2011–2012 56th/142 2012–2013 59th/144 2013–2014 60th/148 2014–2015 71st/144 0 2007–2008 2008–2009 2009–2010 2010–2011 2011–2012 2012–2013 2013–2014 2014–2015 Global Competitiveness Index edition China   Brazil   India   Indonesia   South Africa Note: Higher value means better rank (Cont’d.) countries have poorly functioning labor markets, Vietnam ranks a satisfactory 49th, its best showing among the 12 pillars with the exception of the market size pillar (34th). Vietnam’s financial sector and its banks remain vulnerable. Technological readiness remains low (99th, up three). The country’s businesses are especially slow 30 The Global Competitiveness Report 2014–2015 in adopting the latest technologies (118th), thus forfeiting significant productivity gains through technological transfer. The degree of business sophistication is low (106th, down eight), with companies typically operating toward the bottom of the value chain. © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Box 2: India’s competitiveness crisis (cont’d.) Figure 3: India in the 12 pillars of the GCI 2014–2015 Institutions (70) Innovation (49) 7 Infrastructure (87) 6 5 Business sophistication (57) Macroeconomic environment (101) 4 3 2 Market size (3) Health and primary education (98) 1 Higher education and training (93) Technological readiness (121) Goods market efficiency (95) Financial market development (51) Labor market efficiency (112)   2007–2008   2014–2015 Note: India’s rank (out of 144 economies) in the pillar is indicated in parentheses. interest rates low to stimulate the faltering economy and tightening monetary policy to stem inflation. Improving competitiveness will yield India huge benefits. In particular, it will help rebalance the economy and move the country up the value chain so as to ensure more solid and stable growth; this in turn could result in more employment opportunities for the country’s rapidly growing population. Despite the abundance of low-cost labor, India has a very narrow manufacturing base. Manufacturing accounts for less than 15 percent of India’s GDP.5 Agriculture represents 18 percent of output and employs 47 percent of the workforce. Low productivity in the sector means very low wages and a life of mere subsistence for many. The services sector accounts for just 28 percent of employment but for 56 percent of the economy. Most services jobs are low-skilled and poorly paid ones, though. White collar jobs remain rare. For example, the vibrant business-process outsourcing sector employs 3.1 million workers, or 0.6 percent of India’s 482 million strong labor force (but accounts for 6 percent of GDP).6 India needs to create jobs in the “missing middle” for the 610 million youths under 25—half of India’s population— who have recently entered or will soon enter the workforce. In a parliamentary address in June 2014, President Mukherjee outlined the government’s economic agenda. It envisages building smart cities, establishing world-class After two consecutive years of steep decline, Pakistan (129th) remains essentially stable since last year. The country obtains low marks in the most critical and basic areas of competitiveness. Its public institutions (125th) are constrained by red tape, corruption, patronage, and lack of property rights industrial zones, and transforming the country into a manufacturing hub. It remains to be seen whether the new administration will succeed in convincing the public opinion, mobilizing the resources, and passing the reforms necessary to achieve this vision. Notes 1 When measured at purchasing power parity. GDP figures are from IMF 2014c. 2 See World Economic Forum 2009. 3 In the Plan, “infrastructure” covers all modes of transportation, as well as telecommunication, sanitation, and irrigation infrastructures. See Planning Commission of India 2012. 4 Credit Suisse 2013. 5 World Bank, World Development Indicators database (accessed May 12, 2014). 6 Estimates are for fiscal year 2014. NASSCOM, “India IT-BPM Overview,” available at http://www.nasscom.in/impact-indiasgrowth (accessed August 3, 2014). Labor force size estimates for 2012 are from the World Bank, World Development Indicators database (accessed August 3, 2014). The GDP estimate is for 2013 and sourced from IMF 2014c. protection. Its security situation remains alarming (142nd). Pakistan is the third least safe of all countries covered, behind only Yemen and Libya. Thanks to a lower inflation rate and a smaller budget deficit, the country’s macroeconomic situation improves slightly but nevertheless remains dismal (137th). Pakistan’s © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 31 1.1: The Global Competitiveness Index 2014–2015 infrastructure (119th)—particularly for electricity (133rd)— is underdeveloped. Moreover, the country’s performance in terms of health and education is among the worst of all the countries covered. Infant mortality (137th) is the highest outside sub-Saharan Africa, and, with one of the lowest enrollment rates in the world (132nd), it is estimated that almost a quarter of children do not go to primary school. Pakistan’s competitiveness is further penalized by the many rigidities and inefficiencies of its labor market (132nd, up six). Female participation in the labor force is the world’s fifth lowest (140th). Finally, the potential of ICTs is not sufficiently leveraged, and access to ICTs remains low (114th). On a slightly more positive note, Pakistan does comparatively better in the more advanced areas captured by the GCI, ranking 72nd in the financial development pillar and 81st on the business sophistication pillar. Covered for the first time last year, Myanmar advances five places and ranks 134th. After decades of political and economic isolation, the country is going through profound changes. Its government has embarked on an ambitious process of reforms to improve the country’s economic landscape and prospects, notably by leveraging Myanmar’s extraordinary assets. These include an abundance of natural resources, very favorable demographics, and a strategic location in the heart of Asia. Competitiveness is at the core of this strategy. However, Myanmar’s challenges are many and the road to prosperity will be a challenging one. The country ranks beyond the 100th rank in 10 out of the 12 pillars of the GCI, but has improved in 11 of them over the past year. Latin America and the Caribbean The economic deceleration that started in 2012 continued in 2013, with an estimated growth rate for the region below 3 percent. For 2014, growth forecasts are not more optimistic and, according to the IMF,24 the region is poised to grow at only 2.5 percent, below the trend of recent years. Overall, the region continues to suffer from strong headwinds related to weak investments, a fall in exports and commodity prices, and tighter access to finance that, to a large extent, fueled growth in recent years. Building the economic resilience of the region will depend on its capacity to strengthen the fundamentals of its economy by boosting its level of competitiveness. However, regional productivity continues to be low and trailing other emerging or advanced economies. A lack of sufficient investments in growth-enhancing areas, such as infrastructure, skills development, and innovation, coupled with insufficient and delayed reforms needed to improve business conditions and the allocation of resources, result in a certain inability of the local economies of the region to move toward 32 The Global Competitiveness Report 2014–2015 more productive sectors and thus, higher levels of competitiveness. The need to boost competitiveness by undertaking the necessary investments and by fully and efficiently implementing structural reforms has become not only important but also urgent if the region is to be able to consolidate the economic and social gains that many countries have experienced in past years. Becoming more resilient and less affected by external fluctuations will depend on this. Chile, at 33rd, regains the position it lost last year and remains the most competitive economy in Latin America, with a very stable profile. The country continues to build up its traditional assets, which are related to a strong institutional setup (28th) with low levels of corruption (25th) and an efficient government (21st); solid macroeconomic stability (22nd) with low levels of both public deficit and public debt; and efficient markets, despite some rigidities in its labor market that result from its persistent high redundancy costs (120th). Notwithstanding these strengths, the current economic context—with its potentially strong headwinds that result from the decline in the price of minerals—highlights the need for Chile to diversify its economy by moving toward more knowledge-based activities. In this context, the country still needs to make major efforts to address some of its traditional weaknesses. Important flaws in the country’s education system, notably in terms of its quality (71st)—especially in math and science (99th)—do not provide companies with a workforce that has the necessary skills to upgrade their production or embark on innovative projects; this is regarded as one of the country’s most problematic factors for doing business. This difficulty—together with low innovation investment, especially in the private sector (77th)—results in a poor innovation capacity overall (76th), which could jeopardize Chile’s necessary transition toward a knowledge-based economy. Panama continues to follow Chile in the regional rankings and once again scores as the most competitive economy in Central America; it is among the top 50 in the world, despite a fall of eight places to 48th position. This drop is driven by a slight deterioration in the perceived functioning of institutions (74th), most notably in terms of their inability to fight corruption (94th) and raise government efficiency (55th); and the poor quality of the education system (83rd) with its inability to provide the right set of skills for an economy that increasingly needs a skilled labor force to sustain the sharp economic growth of past years. This skills shortage is perceived as one of the most problematic factors for doing business in the country, and is likely to remain a severe obstacle to business in the coming years, representing a bottleneck for Panama’s transition toward more knowledge-intensive activities. Notwithstanding these challenges to the economic agenda of the country going forward, Panama © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 continues to benefit from important competitiveness strengths. As it did last year, Panama boasts impressive infrastructure (40th), with some of the best port (7th) and airport (7th) facilities not only in Latin America but in the world, positioning it as a strong transport hub for the region. Its financial market (22nd) and an assessment of its technological adoption (23rd), especially via foreign multinational corporations setting up in the country, remain strong, and its mobile broadband subscriptions (73rd) are increasing. As in recent editions, Costa Rica continues to rise in the rankings, improving three positions to take 51st place. Overall, the country depicts a very stable profile, building on its traditional assets, although it does suffer from some persistent weaknesses. In terms of strengths, Costa Rica is fairly well poised to engage in a rapid transition toward more knowledge-based activities. The country boasts one of the best education systems in the region (21st); a fairly high ICT uptake (45th) with a high international Internet bandwidth capacity (36th) and many mobile broadband subscriptions (20th); and a fairly well developed capacity to innovate (36th) and solid access to technology (39th), thanks to the crucial role that FDI and technology transfer (5th) plays in the country. In addition, Costa Rica benefits from fairly strong institutions (46th), despite a strong sense that government spending may not always be directed toward the most productive activities (120th). Notwithstanding these important strengths, the country’s persistent weaknesses hold back its competitiveness. More precisely, its poor transport infrastructure (108th), difficulty in accessing finance either through equity (117th) or loans (118th), and some concerns about its macroeconomic performance and high budget deficit (116th) are all areas the country should address. Still suffering some of the consequences of the global financial crisis, Barbados falls eight positions in the rankings to 55th place. As in the past, this drop is driven by the persistence of the credit crunch that is regarded as the most problematic factor for doing business in the country and that is severely hindering the capacity of local businesses to finance their activities by raising new equity (91st), loans (101st), or venture capital (101st) to support innovative projects. In addition, concerns about macroeconomic conditions (132nd) persist, as Barbados boasts one of the highest public deficits (140th) in the world, one of the lowest savings rates (136th), and public debt (128th) that is quickly approaching 100 percent of the national GDP. The need to stabilize its macroeconomic outlook and ease the flow of financing toward productive investments will be crucial to allow the country to recover the ground lost since the beginning of the crisis. On a more positive note, Barbados continues to benefit from a fairly skilled labor force thanks to a high-quality education system (15th) and high enrollment rates in secondary (19th) and tertiary education (42nd); well-functioning institutions (33rd), despite some concern about the government efficiency in managing public spending (57th); and solid infrastructure (28th). Brazil drops one position and ranks 57th this year. This decline is driven by insufficient progress in addressing its persistent transport infrastructure weaknesses (77th) and a perceived deterioration in the functioning of its institutions (104th), with increased concerns about government efficiency (131st) and corruption (130th). Brazil also exhibits a weaker macroeconomic performance this year (85th), a further tightening of access to financing, and a poor education system (126th) that fails to provide workers with the necessary set of skills for an economy in transition toward more knowledge-based activities. Addressing these weaknesses, for Brazil as for other BRICS economies, will require implementing reforms and engaging in productive investments (see Box 3). This approach is not only important but has become urgent for reinforcing Brazil’s resilience. The country is poised to face strong headwinds related to recent shifts in the global economy, with a drop in the international price of commodities and potential outflows of capital that had come into the country from some advanced economies during the height of the financial crisis. Notwithstanding these challenges, Brazil still benefits from important strengths, especially its large market size and its fairly sophisticated business community (47th), with pockets of innovation excellence (44th) in many research-driven, high-value-added activities. In spite of the drop of six places, Mexico (61st) has adopted important structural reforms in the past year. This fall in the rankings is driven by a deterioration in the perceived functioning of institutions (102nd); the quality of an education system that does not seem to deliver on the skill set that a changing Mexican economy requires; and its low level of ICT uptake (88th), which is crucial for this transformation. In addition, the results show that the benefits of the many adopted reforms intended to increase the level of competition and efficiency in the functioning of Mexico’s markets have not yet materialized, highlighting the need for effective implementation that should not be delayed. Recently some changes have been observed, notably in the telecommunications market. As more of these results start to become evident, the country will increase its competitiveness edge. In this process of improvement, Mexico can continue counting on its traditional strengths: its relatively stable macroeconomic environment (53rd), its large and deep internal market that allows for important economies of scale (10th), reasonably good transport infrastructure (41st), and a number of sophisticated businesses (58th), which is uncommon for a country at its stage of development. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 33 1.1: The Global Competitiveness Index 2014–2015 Box 3: Competitiveness and the need for structural reform in large emerging economies In recent decades, many emerging economies benefited from rapid economic growth, which allowed them to gain a more prominent role in the global economy.1 Emerging economies drove growth throughout the economic crisis. In 2009—the worst year of the crisis—the combined GDP of advanced economies contracted by 3 percent while emerging economies grew by 3 percent. Overall, between 2007 and 2013, emerging economies grew by 5.9 percent annually, five percentage points more than advanced economies. These radically different trajectories accelerated the shift of economic power from advanced economies toward the emerging world, which in 2012 accounted for more than half of global output for the first time in recent history. High commodity prices and better access to financing thanks to the inflow of capital, often from advanced economies, go a long way toward explaining these positive developments in recent years. However, since 2010, economic growth has been slowing down in emerging economies, which grew by 4.7 percent in 2013, the second lowest rate since 2002, and the International Monetary Fund has recently revised its forecast for 2014 down to 4.6 percent.2 The slowdown can be attributed to several factors. Overall, commodity prices, with the exception of oil prices, have stagnated or started to fall. At the same time, the outflow of capital and the phasing out of accommodating monetary policy in the United States have created further instability and worsened credit access conditions for emerging economies. In addition, emerging economies for the most part did not use the recent spell of high growth to implement the structural reforms needed to boost productivity and build competitiveness. The necessary reforms are particularly critical in three areas: (1) boosting competition, especially in strategic sectors of the economy, by removing bottlenecks and barriers to entry; (2) making the labor markets more flexible and more effective at using all existing talent; and (3) improving the efficiency of public institutions, which is also crucial to ensure an effective implementation of structural reforms. The Global Competitiveness Index (GCI) reveals the poor performance among many of the 20 largest emerging economies—which together account for 27 percent of global GDP—in terms of the functioning of their institutions, as well as in establishing efficient product and labor markets (see Table 1). In particular, six of those countries rank below the 100th mark: Argentina, Brazil, Egypt, Mexico, Pakistan, and Venezuela. A further eight countries rank lower than the 100th mark in at least one of these three categories. Furthermore, the GCI results also point to a lack of progress over time. Only three countries have recorded higher values in all areas since 2010: Malaysia, the Philippines, and the Russian Federation. The latter, however, still ranks a low 119th in market competition and 102nd in public institutions. Among the BRICs, China has lost 22 places in terms of market competition since 2010, and both India and Brazil have lost considerable ground in all three areas. These results highlight how important it will be for emerging economies to promptly and efficiently implement structural reforms. Those reforms are necessary to increase their competitiveness, build their resilience against future external shocks, allow a more efficient allocation of resources, and facilitate the transition toward more productive activities. Notes 1 For the sake of readability, we use the shorter formulation, “Emerging Economies,” to refer to the group of “Developing and Emerging Market Economies” as defined by the International Monetary Fund in its publications, such as the World Economic Outlook series. 2 IMF 2014d. Table 1: Rankings of the 20 largest emerging economies on selected components of the GCI Public institutions Market competition Labor market efficiency GCI 2014– 2015 rank Country 2014–2015 rank 20 Malaysia 23 +21 9 +20 19 +16 24 Saudi Arabia 26 –5 33 –24 64 +2 28 China 43 +3 86 –22 37 +1 32 Thailand 93 –23 47 +6 66 –42 34 Indonesia 53 +4 57 +3 110 –26 43 Poland 56 –2 46 +3 79 –26 45 Turkey 67 +23 44 +18 131 –4 52 Philippines 75 +49 109 +12 91 +20 53 Russian Federation 102 +16 119 +10 45 +12 56 South Africa 45 +8 35 +8 113 –16 57 Brazil 104 –8 135 –3 109 –13 61 Mexico 109 +1 110 +6 121 –1 66 Colombia 123 –6 127 +3 84 –15 70 India 69 –10 111 –23 112 –20 83 Iran, Islamic Rep. 98 –24 121 –18 142 –7 104 Argentina 138 –5 143 –5 143 –15 118 Egypt 101 –40 126 –42 140 –7 127 Nigeria 132 –10 78 +11 40 +34 129 Pakistan 125 –11 108 –10 132 –1 131 Venezuela 144 –5 144 –5 144 –6 Since 2010* 2014–2015 rank Note: Countries are listed according to their overall GCI rank. Ranks are out of 144 economies. * Change in ranking between the 2010–2011 and the 2014–2015 editions of the GCI. 34 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Since 2010* 2014–2015 rank Since 2010* 1.1: The Global Competitiveness Index 2014–2015 Despite Peru’s drop of four positions to 65th place, the country continues to be positioned within the top half of the rankings. Concerns about the functioning of its institutions (118th), along with insufficient progress in improving the quality of its education (134th) and technological adoption (92nd), explain this decline, supporting the idea, highlighted last year, of a certain exhaustion of the sources of the country’s competitiveness gains of the past years. Among these gains are a very strong macroeconomic performance (21st) and high levels of efficiency in its goods (53rd), financial (40th), and labor (51st) markets, despite rigidity in hiring and firing practices (130th). Although Peru has recently benefited from strong growth thanks to the rise in the price of minerals, the country should build its resilience by addressing its most long-lasting challenges: it needs to strengthen its public institutions (127th) by increasing government efficiency (116th), fighting corruption (103th), and improving infrastructure (88th). In addition, building up Peru’s capacity to generate and use knowledge and thus diversify its economy toward more productive activities will require raising the quality of education (134th), which is now not capable of providing the skills needed for a changing economy; to boost technology adoption (92nd), including a broader uptake and use of ICTs (101st); and to raise its innovation capacity (117th), which remains low. These actions will require time to develop and bear fruit. Colombia climbs three positions to reach 66th place. It continues to depict a fairly stable competitiveness profile with results similar to those of previous editions across most dimensions, with two notable exceptions that account for this year’s improved performance. The first is the country’s level of technological adoption (68th), most notably of ICTs (66th). The second is the development of its infrastructure (84th), which remains, nevertheless, the second most problematic factor for doing business in Colombia, after the high level of corruption (123rd). Overall, the country benefits from stable macroeconomic conditions (29th) with a manageable fiscal deficit, low levels of public debt, and inflation that is under control at around 2 percent; financial services that are relatively sophisticated by regional standards (53rd); a large market (32nd); and fairly high levels of education enrollment both at secondary (62nd) and tertiary level (61st), especially when compared with those of other countries in the region. On a less positive note, Colombia continues to suffer from weak institutions (111th) and, as already mentioned, significant levels of corruption (123rd). Despite its improvement, the quality of transport infrastructure is still low (108th). Finally, as is the case for many other countries in the region, Colombia will have to diversify its economy and become less dependent on revenue from mineral resources. In this transformation, the country will need to improve the quality of its education system (90th), which continues to drop, especially in areas such as mathematics and science (109th); it will also need to build a more robust innovation ecosystem (77th), which will require not only more and better public investment but also a decisive recognition on the part of Colombian firms of the need to innovate by undertaking the right set of investments in areas such as R&D (84th) as well as on-the-job training schemes (73rd) and ICT adoption. Climbing eight places and establishing itself in the middle range of the rankings this year, Guatemala is positioned at 78th place, following Panama and Costa Rica in the Central American rankings. The country’s rise is led by improvements in its level of competition in the goods market (54th) thanks to the reduction of red tape for new businesses and better infrastructure (67th), although these remain a challenge. Within Central America, El Salvador (84th) continues its ascent, climbing 13 ranks; as does Honduras (100th), which rises 11 positions, while Nicaragua remains stable at 99th position. In South America, besides Chile and Brazil, the situation remains relatively stable and in need of important changes to improve competitiveness. Uruguay (80th) manages to improve its performance, while Bolivia (105th) loses seven places, unable to consolidate last year’s gain. Paraguay falls one place to 120th position; Argentina (104th) remains stable; and Venezuela (131st) closes the regional rankings, ahead of only Haiti (137th). Argentina (104th), after several years of falling in the rankings, this year remains stable, albeit at a very low position. One of Argentina’s major concerns is to build its economic resilience in a rapidly changing global economic context characterized by lower commodity prices that can drastically affect the Argentine economy. Overall, the country continues to face adverse macroeconomic conditions (102nd) that affect its access to credit (134th). It also suffers from a weak institutional set up (137th), scoring poorly in terms of corruption (139th), government inefficiency (142nd), and government favoritism (143rd). In addition, inefficiently functioning goods (141st), labor (143rd), and financial (129th) markets continue to hinder the country’s potential, which is enormous thanks to a relatively large market size (24th) with the potential for important economies of scale and scope, its digital readiness (61st), and its high university enrollment (15th) of more than 78 percent. These assets are not being fully utilized amid the negative framework conditions that hamper the potential of the Argentine economy. Venezuela (131st) continues to be immersed in a deep macroeconomic (139th) and institutional (144th) crisis. A very unstable macroeconomic environment with high levels of inflation, public debt, and deficit coupled with a weak institutional set up, high levels of corruption, © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 35 1.1: The Global Competitiveness Index 2014–2015 and an inefficient government as well as malfunctioning markets that do not allocate resources effectively result in this poor performance. These deficiencies hinder the country’s capacity to leverage some important assets, such as its relatively well educated population, with a high percentage of the population enrolled in tertiary education (16th), and relatively good ICT penetration with more than half of the population using the Internet (60th). The Middle East and North Africa Large parts of the Middle East and North African region continue to be affected by geopolitical conflict and turbulence. Yet the emphasis has shifted. Some North African economies, such as Egypt and Tunisia, are slowly stabilizing and are starting to focus on economic reform. Structural reforms and improvements to business environments will help restore the still-shaken investor confidence in countries in transition in the region. Other economies, such as Libya and Lebanon, remain affected by conflict or unrest within their own borders or in neighboring countries. At the same time, some small, energy-rich economies continue to perform well in the rankings, building on their resource-driven wealth to undertake structural reforms and invest in competitiveness-enhancing measures. These endeavors will help drive private-sector employment that, in turn, is necessary to provide sufficient numbers of gainful and sustainable jobs for the countries’ populations. The United Arab Emirates takes the lead in the region, moving up to 12th position this year. To some extent this overall ranking improvement is technical and due to the fact that data on tertiary enrollment are no longer available. At the same time, the country’s successful bid for Expo 2020 and its strong drive toward reforms have anchored many initiatives to enhance competitiveness. These efforts are paying off: its institutional framework, infrastructure, macroeconomic stability, and ICT use have all improved. Overall, the country’s competitiveness reflects the high quality of its infrastructure, where it ranks an excellent 3rd, as well as its highly efficient goods markets (3rd). A strong macroeconomic environment (5th) and some positive aspects of the country’s institutions—such as strong public trust in politicians (3rd) and high government efficiency (5th)—round out the list of competitive advantages. Going forward, putting the country on a more stable development path will require further investment to boost health and educational outcomes (38th on the health and primary education pillar). Raising the bar with respect to education will require not only measures to improve the quality of teaching and the relevance of curricula, but also measures to provide stronger incentives for the population to attend schools at the primary and secondary levels. Last but not least, further promoting the use of ICTs and a stronger focus on R&D and business innovation will be necessary to 36 The Global Competitiveness Report 2014–2015 diversify the economy and ensure that economic growth is sustainable going into the future. Qatar falls three places to 16th position. Although the country benefits from high levels of macroeconomic stability and efficient goods and financial markets, as well as high levels of physical security, it will have to step up its efforts to improve a number of areas in order to achieve a more diversified economy. Improving educational outcomes, especially participation in primary and tertiary education; fostering the use of ICTs; and further opening the country up to foreign trade will be necessary to increase productivity in non-hydrocarbon sectors. At a more fundamental level, Qatari businesses would benefit from reduced administrative barriers to set up businesses and from upgrading the transport infrastructure. Saudi Arabia (24th) loses four positions in this year’s edition, based on a less positive assessment of its quality of education and level of domestic competition. The country will need to enhance competitiveness to further diversify its economy and create sufficient number of jobs for the growing workforce. Overall, its competitiveness benefits from high levels of macroeconomic stability (4th) with low debt and a budget that is consistently in comfortable surplus. The country also benefits from the largest market size among the Gulf Cooperation Council (GCC) economies (20th). Yet Saudi Arabia also faces important challenges going forward. For example, health and education do not meet the standards of other countries at similar income levels (50th). In light of the need to create jobs, further emphasis should be placed on education and labor market reforms. Room for improvement remains in particular with respect to higher education and training (57th), where Saudi Arabia’s assessment has weakened in recent years. Business leaders consider that the quality of education could be improved especially with respect to training in management (78th) and math and science (73rd). Labor market efficiency (64th) could also be improved, and reform in this area will be critical for Saudi Arabia, given the growing number of young people who will enter its labor market over the next several years. More efficient use of talent—in particular, enabling a growing share of educated women to work—and better education outcomes will increase in importance as the country attempts to diversify its economy, which will require a more skilled and educated workforce. Last but not least, although some progress has been recorded recently, the use of the latest technologies such as ICTs can be enhanced further (45th), especially as this is an area where Saudi Arabia continues to trail other GCC economies. Israel retains the 27th position in this year’s GCI. The country’s main strengths remain its world-class capacity for innovation (3rd), which rests on innovative businesses that benefit from the presence of some of © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 the world’s best research institutions (3rd), support by the government through public procurement policies (9th), and a favorable financial environment for start-ups (availability of venture capital is assessed at 9th place). Yet for the country’s innovation-driven competitiveness strategy to be successful and viable going into the future, Israel will have to address some basic competitiveness challenges. Israel’s institutions are in need of continued upgrading (43rd) and a stronger focus on raising the bar in education is needed. If not addressed, poor educational outcomes—particularly in math and science (79th) and in primary schools (86th)—could undermine the country’s innovative capacity over the longer term. Room for improvement also remains with respect to the macroeconomic environment (50th), although improvements have taken place between 2012 and 2013 as the fiscal deficit and public debt were reduced. At the time of writing, the security situation in the country is once again fragile, which could potentially affect the country’s economy, although this has not been the case in the recent past. Jordan moves back up to 64th place, a rank it held two years ago. The improvement mainly reflects a lower budget deficit and some progress made in education and financial market development. The country is faced with a number of social challenges that require the government’s attention: for example, it must address both unemployment among young people (31.3 percent in 2012) and the consequence of the conflict in neighboring Syria, which has brought high numbers of refugees to Jordan. Nevertheless, Jordan has the potential to benefit more from its geographical proximity to GCC economies and Europe, and recent fiscal reforms have created space for shifting spending toward productivity-enhancing measures. The country has a relatively well educated population (48th), vibrant domestic markets (36th), and its stable and rather efficient institutions (37th) are a strong asset in regional comparison. Boosting economic growth over the longer term will require Jordan’s policymakers to address a number of challenges. According to the GCI, there is significant room for improvement in boosting labor market efficiency (94th), and the full potential of ICTs for improving productivity has not yet been fully exploited (90th). Jordan could also benefit from more openness to international trade and investment, which would trigger further efficiency gains in its domestic economy and facilitate the transfer of knowledge and technology. Tariff barriers remain high in international comparison (107th) and regulatory barriers to FDI remain in place (73rd). And although bank financing appears to be more easily available than in many other countries (Jordan comes in at 25th on ease of access to loans), efforts to further stabilize its banking sector should be continued (103rd). Morocco moves up to 72nd position this year, partially recovering from last year’s drop. A reduced budget deficit (between 2012 and 2013) and improvements in primary education and innovation support the country’s rise in the rankings. Some aspects of its institutions have improved as well, reflecting Morocco’s relative social and political stability and efforts made over recent years to modernize its business environment, particularly its administrative aspects. Continuing the process of economic diversification, which has already boosted exports and FDI in highervalue-added industries, will be important for the country’s future growth. Building on its competitiveness strengths, such as physical security (39th), some positive aspects of goods markets efficiency (e.g., 32nd on number of procedures to start a business), and a rather solid and efficient banking sector (42nd on soundness of banks), Morocco should continue its successful efforts to address key competitiveness challenges. Necessary measures include boosting education (104th) in terms of both quality and access, and reforming its labor market (111th). With respect to education, making schooling at the secondary and tertiary levels more accessible and attractive to increase enrollment rates in these two segments would ensure that a qualified labor force is available to support economic diversification. In their responses to the Survey, business executives also point out that revising curricula so that skills taught better match the needs of businesses should be a priority. With respect to labor markets, raising the share of women in the labor force would greatly strengthen the talent base available in the country. Last but not least, boosting the use of ICTs among businesses and individuals (84th) would also greatly benefit the country’s competitiveness. Algeria moves up to 79th position this year. This rise is driven mainly by a sounder macroeconomic environment, which remains the country’s most important competitiveness strength (11th). Yet improvements are also seen in other areas, such as institutions and physical security, albeit from a low level. Some aspects of education also show a positive trend: for example, the quality of education seems to be improving. A major overhaul of the institutional framework and increased focus on the efficiency of the goods, labor, and in particular financial markets will be necessary to put Algeria’s growth on a more sustainable trajectory. Iran comes in at 83rd, losing one place in comparison to last year’s assessment. The economy is expected to stabilize after two difficult years, mainly driven by external developments. This steadier economic context provides an important opportunity for the country to enhance its competitiveness potential. Iran has to build on its solid macroeconomic positioning, its large market size, and its fairly well educated population. Improvements to its institutional framework and measures to heighten the efficiency of its goods, labor, and financial markets would benefit the country’s © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 37 1.1: The Global Competitiveness Index 2014–2015 competitiveness and provide an important boost to the country’s economic growth in the shorter as well as longer terms. After dropping for several years in a row, Egypt moves down one place to 119th position in this edition. This assessment points to a certain stabilization in the country following the recent elections. The fragile security situation is improving slightly, although tenacious political and policy instability are undermining the country’s competitiveness and its growth potential going forward. While regaining political stability and investor confidence needs to remain the priority as this Report goes to print, many of the underlying factors that will be decisive for the stability of the country and the cohesion of the society over the medium to longer term are economic in nature. Establishing confidence through a credible and far-reaching reform program is vital to Egypt’s future and to realizing the considerable potential of its large market size and proximity to key global markets. According to the GCI, three areas are of particular importance. First, the macroeconomic environment has deteriorated over recent years to reach 141st position mainly because of a widening fiscal deficit, rising public indebtedness, and persisting inflationary pressures. A credible fiscal consolidation plan, accompanied by structural reforms, will be needed in Egypt. This may prove difficult because of energy subsidies that account for a considerable share of public expenditure. Removing these subsidies may be difficult politically, but there is space for targeting subsidies better in a way that allows for fiscal consolidation while still protecting the most vulnerable. Second, measures to intensify domestic competition (118th) would result in efficiency gains and contribute to energizing the economy by providing access to new entrants. This, in turn, would make the country’s private sector more dynamic, thus fostering the creation of new jobs. And third, making labor markets more flexible (130th) and efficient (139th) would allow the country to increase employment in the medium term and provide new entrants to the labor market with enhanced opportunities. Sub-Saharan Africa Amid the economic turmoil that affected advanced economies in recent years, the sub-Saharan African region provided something of a silver lining in an otherwise broadly felt economic downturn. As growth is now modestly returning in advanced economies, sub-Saharan economies carry on registering impressive growth rates of close to 5 percent in 2013—with rising projections for the next two years—below only emerging and developing Asia. Yet important downside risks remain: although inflation has been coming down from the high rates of the past two years thanks to prudent monetary policy and moderating food prices, rising 38 The Global Competitiveness Report 2014–2015 fiscal deficits—which are most exacerbated in Zambia, Ghana, and Gambia—and a slowdown in emerging markets could dampen growth prospects, particularly in resource-rich economies. More importantly, more than a decade of consistent high growth has not yet trickled down to all segments of the population. Most economic activity takes place in the informal sector, accounting for more than half of GDP and employing more than 80 percent of the population; only one in two young Africans participates in wage-earning jobs.25 Going forward, the main challenge will therefore be to turn high growth into inclusive growth, touching more of the population. This will require focusing on efforts to transition from still largely agriculture-based economies to highervalue-added activities in order to move the workforce out of agriculture into more productive sectors.26 The urgency of this transition is highlighted by the region’s high population growth. By 2020 more than half of the continent’s population will be below the age of 25.27 Against this backdrop, much remains to be done to lay the foundations for sustainable long-term growth, requiring efforts across many areas. Indeed, more than half of the 20 lowest ranked countries in the GCI are sub-Saharan, and overall the region continues to underperform in many areas of the basic requirements of competitiveness: the infrastructure deficit remains profound, and despite gradual improvements in recent years, health and basic education remains low. Only a handful of sub-Saharan economies—the island states of Mauritius and Seychelles, in addition to Cape Verde— have noteworthy health and education systems. Higher education and training also need to be further developed to provide the skills required for higher-value-added growth. The region’s poor performance across all basic requirements for competitiveness stands in contrast to its comparatively stronger performance in market efficiency, where several of the region’s middle-income economies fare relatively well. Although large regional variations remain in terms of competitiveness—ranging from Mauritius, now a solid 17 places ahead of the second-ranked South Africa, to the lowest ranked Guinea at 144th—efforts to strengthen the very basic requirements for long-term growth will be crucial for sustaining economic growth and making it more inclusive. These efforts will need to emphasize closing the infrastructure deficit and providing the region’s (young) population with the necessary skills to carry out higher-value-added employment. Mauritius continues its steady upward trend this year, moving up six positions to 39th place and consolidating its lead in the region. Progress is driven by gradual improvements across seven out of the 12 pillars. Overall, the country benefits from relatively strong and transparent public institutions (36th), with clear property rights, strong judicial independence, and an efficient © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 government (26th). Private institutions are rated as highly accountable (14th), with effective auditing and accounting standards and strong investor protection (12th). The country’s transport infrastructure is well developed by regional standards (42nd), especially in terms of ports, air transport, and roads. In addition, the country this year also records improvements in its electricity and telephony infrastructure (44th). Furthermore, the country’s wide-ranging structural reforms that have taken place since 2006 are bearing fruit, as evidenced by its continuous improvements in the areas of market efficiency: financial markets are comparatively deep (26th), its efficient goods market (25th) is characterized by enabling conditions for both domestic and foreign competition, and its labor market efficiency (52nd) has been improving thanks to increased flexibility (18th). Going forward, as income per capita rises and Mauritius moves up the value chain, more effort will be needed to develop its human capital. Although rising enrollment rates, particularly tertiary enrollment, are laudable (40.32 percent in 2012) and its overall score in the quality of education has been improving, other countries are moving even faster. Improving competitiveness will require additional efforts not only to improve higher education and training (54th) but also to mobilize the country’s talent more efficiently (101st), as evidenced by the low share of women in the labor force (115th). South Africa continues its downward trend and falls to 56th place this year, third among the BRICS economies. South Africa does well on measures of the quality of its institutions (36th), including intellectual property protection (22nd), property rights (20th), the efficiency of its legal framework in challenging and settling disputes (9th and 15th, respectively), and its top-notch accountability of private institutions (2nd). Furthermore, South Africa’s financial market development remains impressive at 7th place,28 although our data point to more difficulties in all channels of obtaining finance this year. The country also has an efficient market for goods and services (32nd), and it does reasonably well in more complex areas such as business sophistication (31st) and innovation (43rd), benefitting from good scientific research institutions (34th) and strong collaboration between universities and the business sector in innovation (31st). South Africa’s transport infrastructure (32nd) is good by regional standards, although its electricity supply does suffer disruptions (99th). But the country’s strong ties to advanced economies, notably the euro area, has made it more vulnerable to the economic slowdown of those economies. These ties are likely to have contributed to the deterioration of fiscal indicators: its performance in the macroeconomic environment—having dropped sharply in the previous year—remains at 89th. Low scores for the diversion of public funds (96th), the perceived wastefulness of government spending (89th), and a more general lack of public trust in politicians (90th) remain worrisome, and security (95th) continues to be a major area of concern for doing business. Building a skilled labor force and creating sufficient employment also present considerable challenges. The health of the workforce is ranked 132nd out of 144 economies—as a result of high rates of communicable diseases and poor health indicators more generally. Higher education and training remains insufficient (86th) and labor market efficiency (113th) is affected by extremely rigid hiring and firing practices (143rd), wage inflexibly (139th), and continuing significant tensions in labor-employer relations (144th). Raising education standards and making its labor market more efficient will thus be critical in view of the country’s high unemployment rate of over 20 percent, with its youth unemployment rate estimated at over 50 percent. Botswana remains stable this year at 74th place, the fourth spot in the region. Among the country’s strengths are its relatively reliable and transparent institutions (39th), with efficient government spending and low levels of corruption, as well as its sound macroeconomic environment (13th), based on balanced fiscal budgets. However, the country’s heavy reliance on diamond mining (which accounts for one-third of GDP and government revenues) renders it vulnerable to fluctuations in demand, as seen during the global crisis. Botswana’s education system presents another area of concern, particularly for a middle-income country in transition to becoming an efficiency-driven economy. Education enrollment rates at all levels remain low by international standards, and the quality of the education system receives mediocre marks. Yet it is clear that by far the biggest obstacle facing Botswana in its efforts to improve its competitiveness remains its health situation: the country registers one of the highest rates of HIV and one of the lowest life expectancies in the world. Furthermore, its goods market must become more efficient (97th) and its infrastructure must be upgraded (101st), as evidenced by the recent electricity shortages. Going forward, combined efforts across all areas will be needed if the country is to reduce its heavy dependence on the mining sector and to set its economy on a more diversified growth path. Namibia moves up by two places to 88th position. The country continues to benefit from a relatively well functioning institutional environment (50th), with wellprotected property rights, an independent judiciary, and a fairly efficient government. The country’s transport infrastructure is also good by regional standards (52nd) and financial markets continue to be reasonably developed (46th). In order to improve its competitiveness, as in much of the region, Namibia must improve its health and education systems. The country ranks a low 118th on the health subpillar, with high infant mortality and low life expectancy—the result, in large part, of its © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 39 1.1: The Global Competitiveness Index 2014–2015 high rates of communicable diseases, although the data point to an improvement this year. However, to move up the value chain and diversify its economy, efforts to build its human resource base will be critical: school enrollment rates remain low compared with other subSaharan upper-middle-income countries, and the quality of its education system remains poor (119th). In addition, Namibia could do more to harness new technologies to improve its productivity levels (89th). Kenya continues its upward trend from last year and moves up by six places to reach 90th place, registering improvements in 11 out of 12 pillars, most notably in the areas of market efficiency. Its economy is supported by financial markets that are well developed (up by seven places to 24th position), an efficient labor market (25th), and an increasingly more efficient goods market (62nd). Reducing the number of days (32 days) and procedures (10, or rank 118) to start a business could further improve the enabling environment for businesses. Following the adoption of the country’s new constitution in 2010, which introduced additional checks and balances on executive power, Kenya has also registered improvements in the institutions pillar (now at 78th, up from 123rd five years ago). These advances are largely driven by more efficient government and reduced corruption. Furthermore, the country’s education system gets relatively good marks for quality (30th) as well as for on-the-job training (31st). On the other hand, Kenya’s overall competitiveness is held back by a number of factors that hinder its long-term economic growth, particularly in view of its transition toward middle-income status: secondary and tertiary enrollment rates are low; infrastructure— particularly telephony and electricity (114th)—does not meet the needs of Kenya as the largest East African economy; weakening fiscal finances are affecting the macroeconomic environment (126th); and health remains an area of serious concern (117th). Finally, the security situation in Kenya also remains worrisome (128th). Ghana reverses last year’s downward trend and climbs up to 111th this year, largely as the result of slight improvements in its macroeconomic indicators (reversing last year’s trend), although fiscal vulnerabilities persist: the government deficit stood at 10.8 percent of GDP in 2013, more than twice that of two years ago; government debt remains over 60 percent; and inflation is over 11 percent. With regard to strengths, public institutions are characterized by relatively high government efficiency (59th) and strong property rights (54th). In addition, the country’s financial and goods markets are also relatively well developed (62nd and 67th, respectively). On the other hand, Ghana must do much more to develop and deploy talent in the country. Education levels continue to trail international standards at all levels, labor markets are characterized by inefficiencies, and the country is not sufficiently harnessing new technologies for productivity enhancements (ICT adoption rates continue to be very 40 The Global Competitiveness Report 2014–2015 low). The security situation, at 111th, also remains a concern. Senegal comes in at 112th this year. Although the country’s institutions (74th) rank still relatively low, our data suggest a steady improvement across a range of indicators, albeit from low levels. Senegal also benefits from relatively efficient goods and labor markets (both at 68th place), red tape to start a business is low even by international comparison (six days and four procedures), and labor-employer relations are reasonably good (57th). Moreover, Senegal hosts relatively good ports (58th), although all other modes of transport require significant upgrading (93rd overall). The country’s competitiveness is further pulled down by the poor health and basic education of its population (131st). Indeed, only three out of four children receive primary education, which is low compared with its middleincome peers, and communicable diseases continue to erode the health of the general population. Higher education and training (119th) are also in need of improvement. These challenges—among others—are prioritized in the country’s new growth strategy, the Plan Sénégal Emergent (PSE).29 In addition, the country’s macroeconomic environment remains challenging and is characterized by a high government deficit of 5.4 percent of GDP. Côte d’Ivoire reverses its five-year downward trend and climbs to 115th place this year. The quality of its public institutions (86th) has continued to improve since the end of the 2010–11 post-election conflict, although from very low levels and in spite of being dragged down largely by the country’s security situation (107th). Improvements this year also take place on the back of continuing fiscal consolidation and efforts to reduce red tape for the private sector; for example, it now takes eight days to start a business compared with over a month last year. Like many of its sub-Saharan peers, the country has a labor market that is fairly efficient (73rd), a ranking that is primarily driven by its high flexibility (40th). Going forward, however, critical challenges remain. Infrastructure (93rd)—although improving—remains underdeveloped. Moreover, Côte d’Ivoire does not meet basic needs in terms of health and primary education (140th), ranking among the lowest 10 countries worldwide on the related pillar. Only 60 percent of its children are enrolled in primary education, and the burden of communicable diseases—particularly the high incidence of malaria and HIV—weighs heavily on its limited workforce, which also does not fully integrate women (107th). Furthermore, technological adoption is low across private users and the business sector, with only 3 percent of the population using the Internet. Ethiopia moves up to 118th this year, facing challenges across all pillars despite its recent record growth rates. The functioning of its institutions (96th) receives a weaker assessment across almost all © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 indicators, including property rights, ethics and corruption, and government efficiency. Furthermore, the country’s goods market (124th) remains inefficient. Ethiopia also requires significant improvements in the areas of infrastructure (125th), higher education and training (131st), and technological readiness (133rd). On a more positive note, this year points to a slight improvement in the country’s labor market, although concerns about the quality of labor-employer relations (97th), hiring and firing practices (78th), and the alignment between pay and productivity (99th) remain. Primary education, with a net enrollment rate of 86 percent, is comparatively good (although the quality of primary education requires improvement), and women account for a high percentage of the country’s labor force. Tanzania is ranked 121st in this edition. Inflation— although still high at close to 8 percent—returned to single digits this year, although fiscal indicators remain relatively high. In addition, some aspects of its labor market—such as the country’s strong female participation in the labor force (6th) and reasonable redundancy costs—lend themselves to efficiency. On the other hand, the country’s institutions have been deteriorating over the last several years—although government regulation is not seen as overly burdensome (61st), corruption remains high (98th) and policymaking continues to be opaque (111th). Infrastructure in Tanzania is underdeveloped (130th), with poor roads and ports and an unreliable electricity supply (125th). And although primary education enrollment is commendably high, providing universal access, enrollment rates at the secondary and university levels are among the lowest in the world (at 132nd and 134th place, respectively), while the quality of the education system needs upgrading. A related area of concern is the country’s low level of technological readiness (131st), with low uptake of ICTs such as the Internet and mobile telephony. The basic health of its workforce is also a serious concern: the country is ranked 119th in this area, with poor health indicators and high levels of communicable diseases. In regional comparison, the country’s goods market also remains inefficient, characterized by low domestic and foreign competition. In the near-term future, it will be important not to lose sight of these challenges for the country’s long-term competitiveness, as the country is in the final stages of preparing its new constitution as well as holding elections next year. Zimbabwe ranks 124th this year. Public institutions continue to receive a weak assessment, particularly related to corruption, government favoritism, and the protection of property rights (138th), reducing the incentive for businesses to invest. Despite efforts to improve its macroeconomic environment—including the dollarization of its economy in early 2009, which brought down inflation and interest rates—Zimbabwe still receives a low rank in this pillar (87th), which is characterized by high government debt, a negative savings rate, and low inflation. Weaknesses in other areas include health (129th in the health subpillar); low education enrollment rates, with only every second child participating in secondary education; and formal markets that continue to function with difficulty, particularly goods and labor markets, which rank 133rd and 137th, respectively. Nigeria—now Africa’s largest economy—continues its downward trend and falls by seven places to 127th this year, largely on the back of weakened public finances as a result of lower oil exports. Institutions remain weak (129th) with insufficiently protected property rights, high corruption, and undue influence. In addition, the security situation remains dire (139th). Nigeria must continue to upgrade its infrastructure (134th) as well as improve its health and primary education (143rd). Furthermore, the country is not harnessing the latest technologies for productivity enhancements, as demonstrated by its low rates of ICT penetration. On the upside, Nigeria benefits from its relatively large market size (33rd), which bears the potential for significant economies of scale; a relatively efficient labor market (40th) driven by its flexibility (20th); and a solid financial market (67th) following its gradual recovery from the 2009 crisis. However, poor availability and affordability of finance in general and the difficulties in obtaining loans in particular (137th) remain an important bottleneck to economic growth. Ahead of the 2015 election cycle, it will, thus, be critical to keep the ongoing reform momentum to diversify the economy and increase the country’s long-term competitiveness. Mozambique ranks 133rd this year, with efforts required across many areas to lift its economy onto a sustainable growth and development path, particularly in view of its natural resource potential. The country’s public institutions receive poor marks on the basis of low public trust in politicians, significant red tape faced by companies in their business dealings, and the perceived wastefulness of government spending. Macroeconomic stability is weak (110th) on the back of increased inflation and a high government deficit. Looking ahead, significant reform will be needed to advance the country’s long-term competitiveness, including making critical investments across all modes of infrastructure (128th), establishing a regulatory framework that encourages competition to foster economic diversification, and developing a sound financial market (126th). Also critical, in view of the country’s rapidly growing population and high unemployment, are investing in the healthcare system and primary education (135th) as well as higher education and training (138th). Angola—the continent’s second biggest oil exporter—ranks 140th overall. As with its oil-exporting peers, its strengths are in its macroeconomic environment and market size, but much remains to be done across the board to build up the country’s © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 41 1.1: The Global Competitiveness Index 2014–2015 Box 4: Building strategic public-private collaborations to boost competitiveness Raising productivity and competitiveness is crucial to sustaining economic growth and enhancing prosperity in a country. The process requires long-lasting commitment from relevant stakeholders to mobilize resources and provide the effort that can lead to the necessary reforms and productive investments across a vast array of areas. However, stakeholders’ actions—most notably those originating from the public and private sectors—are not always well coordinated and aligned, so that synergies are often not fully realized and the results of the combined efforts are not maximized. Governments frequently develop policies in areas that are important for competitiveness, such as administrative reform, education, and basic research, yet they do so without considering the specific needs of companies. The impact of these policies is thus reduced. At the same time, the business community does not always sufficiently engage in long-term and often risky investments in areas such as research and development, information and communication technologies, or employees’ skills development strategies. If businesses could be engaged in this way, the positive spill-over effects of their investments could result in higher societal gains. Fortunately, stakeholders are increasingly acknowledging the need to address this disconnect between public- and private-sector actions. The last few years have seen a growing recognition of the vital importance of supporting the definition and implementation of strategic public-private collaborations that go beyond the individual policies and strategies of governments and businesses. Public-private collaborations have been common in areas such as infrastructure development because the potential gains that these specific governance structures could bring are significant for both the public and private sectors in terms of both the speed and scope of implementing projects and the particular strengths that each party can bring to bear. The private sector can contribute competitiveness. Given its favorable fiscal stance, Angola has a unique opportunity to invest revenues in competiveness-enhancing measures. In this context, its poor performance across all governance indicators is worrisome: both public and private institutions are characterized by widespread corruption, and inefficient government spending casts doubt on the country’s ability to spend resource receipts in the most important areas. Furthermore, Angola’s infrastructure is one of the least developed globally (139th), and its population would be well served by improvements in its education and health systems (136th). CONCLUSIONS This chapter has presented and analyzed the results of the Global Competitiveness Index 2014–2015, a tool that assesses the competitiveness of 144 economies across all geographies and stages of development. The GCI aims at capturing the complexity of the phenomenon of 42 The Global Competitiveness Report 2014–2015 its management expertise and resources, and the public sector can contribute its understanding of public needs and resources. Besides the traditional public-private partnerships found in infrastructure, public-private collaborations are becoming more common in initiatives related to other drivers of competitiveness, such as in innovation and education. In addition to speed, potentially better management, and shared resource commitments, these partnerships allow for a better alignment of government-led measures with the needs of private companies. The development of the European Innovation Partnerships, the European Technology Platforms, the Advanced Manufacturing Program in the United States, and the Leading Technology Institutes in the Netherlands are just a few examples of ongoing public-private collaborations in the field of innovation. Against this backdrop, the World Economic Forum has embarked on an ambitious project to document, analyze, and disseminate some of the most promising examples of effective and efficient public-private collaboration in competitiveness-related areas. From this analysis, a number of key lessons are starting to emerge with regard to the main barriers and success factors that need to be taken into account when designing and implementing these collaborative approaches. More precisely, in order to broker effective collaborations, stakeholders must be able to count on clear targets and evaluation frameworks, the parties must share objectives and build strong and capable institutions to design and implement the projects, and enabling regulatory environments must be in place. However, and perhaps even more importantly, strong leadership in both the public and private sectors is essential. Clear vision and effective communication is needed to overcome the main obstacle: lack of trust between the parties. Establishing mechanisms and dialogue fora that support a better understanding and can generate enhanced trust between the parties is thus crucial. national competitiveness, which can be improved only through an array of efforts in different areas that affect the long-term productivity of a country, which is the key driver of economic growth. In the current economic context of uneven recovery across advanced economies and renewed risks for emerging economies, the current edition of the Report has highlighted the need for more structural reforms and enhanced smart investments in both advanced and emerging economies in order to accelerate robust economic growth, create productive jobs, and boost inclusive growth with more and better opportunities for all segments of the population. At present, the pace of change remains uneven, and more determination and shared commitment among all stakeholders is urgently needed in order to build strategic public-private collaborations. Building this type of collaboration, as the ongoing World Economic Forum’s project on the Competitiveness Lab and the Competitiveness Practices © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Collection shows,30 can yield significant results if properly designed and implemented. See Box 4 for more detail. Since its introduction in 2005, the GCI has been used by a growing number of countries and institutions to benchmark national competitiveness. The clear and intuitive structure of the GCI framework is useful for prioritizing policy reforms because it allows each country to identify strengths and weaknesses of its national competitiveness environment and pinpoint those factors most constraining its economic development. More specifically, the GCI provides a platform for dialogue among government, business, and civil society that can serve as a catalyst for productivity-enhancing actions. Over the years, the GCI has proved to be a very useful tool for advancing competitiveness across countries and for brokering strategic public-private collaborations aimed at boosting national competitiveness. NOTES 1 The Global Competitiveness Index is based on the result of the work of Sala-i-Martín and Artadi 2004. 2 Schumpeter 1942; Solow 1956; and Swan 1956. 3 See, for example, Sala-i-Martín et al. 2004 for an extensive list of potential robust determinants of economic growth. 4 See Easterly and Levine 1997; Acemoglu et al. 2001, 2002; Rodrik et al. 2002; and Sala-i-Martín and Subramanian 2003. 5 See de Soto 2000. 6 See de Soto and Abbot 1990. 7 See Shleifer and Vishny 1997; Zingales 1998. 8 See Kaufmann and Vishwanath 2001. 9 See Aschauer 1989; Canning et al. 1994; Gramlich 1994; and Easterly 2002. 10 See Fischer 1993. 11 See Sachs 2001. 12 See Schultz 1961; Lucas 1988; Becker 1993; and Kremer 1993. 13 See Almeida and Carneiro 2009; Amin 2009; and Kaplan 2009 for country studies demonstrating the importance of flexible labor markets for higher employment rates and, therefore, economic performance. 14 See Aghion and Howitt 1992 and Barro and Sala-i-Martín 2003 for a technical exposition of technology-based growth theories. 15 A general purpose technology (GPT), according to Trajtenberg (2005), is one that, in any given period, gives a particular contribution to an overall economy’s growth thanks to its ability to transform the methods of production in a wide array of industries. Examples of GPTs have been the invention of the steam engine and the electric dynamo. 16 See Sachs and Warner 1995; Frenkel and Romer 1999; Rodrik and Rodriguez 1999; Alesina et al. 2005; and Feyrer 2009. The case of the European Union illustrates the importance of the market size for competitiveness. Although the reduction of trade barriers and the harmonization of standards within the European Union have contributed to raising exports within the region, many barriers to a true single market, in particular in services, remain in place and lead to important border effects. Therefore we continue to use the size of the national domestic and foreign market in the Index. 17 This is particularly important in a world in which economic borders are not as clearly delineated as political ones. In other words, when Belgium sells goods to the Netherlands, the national accounts register the transaction as an export (so the Netherlands is a foreign market for Belgium), but when California sells the same kind of output to Nevada, the national accounts register the transaction as domestic (so Nevada is a domestic market for California). 18 See Romer 1990; Grossman and Helpman 1991; and Aghion and Howitt 1992. 19 Probably the most famous theory of stages of development was developed by the American historian W. W. Rostow in the 1960s (see Rostow 1960). Here we adapt Michael Porter’s theory of stages (see Porter 1990). Please see Chapter 1.1 of The Global Competitiveness Report 2007–2008 (Sala-i-Martín et al. 2007) for a complete description of how we have adapted Michael Porter’s theory for the present application. 20 Some restrictions were imposed on the coefficients estimated. For example, the three coefficients for each stage had to add up to one, and all the weights had to be non-negative. 21 In order to capture the resource intensity of the economy, we use as a proxy the exports of mineral products as a share of overall exports according to the sector classification developed by the International Trade Centre in their Trade Performance Index. In addition to crude oil and gas, this category also contains all metal ores and other minerals as well as petroleum products, liquefied gas, coal, and precious stones. The data used cover the years 2009 through 2013. Further information on these data can be found at http://legacy.intracen.org/appli1/TradeCom/Documents/ TradeCompMap-Trade%20Performance%20Index-Technical%20 Notes-EN.pdf. All countries that with more than 70 percent of their exports made up of mineral products are considered to be to some extent factor driven. The stage of development for these countries is adjusted downward smoothly depending on the exact primary export share. The higher the minerals export share, the stronger the adjustment and the closer the country will move to stage 1. For example, a country that exports 95 percent of mineral exports and that, based on the income criteria, would be in stage 3 will be in transition between stages 1 and 2. The income and primary exports criteria are weighted identically. Stages of development are dictated solely by income for countries that export less than 70 percent minerals. Countries that export only primary products would automatically fall into the factor-driven stage (stage 1). 22 In practice, this applies to countries where the GDP per capita at current market prices has, for the past five years, been above an average of that of economies at the technology frontier. Countries at the technology frontier are the 10 countries with the highest per capita patenting activity according, to Patent Cooperation Treaty data. 23 We have retained the geographical classifications used in past editions of the Report while changing the groupings in the country/ economy profiles. The groupings in the profiles are based on IMF data, and use the IMF classifications. 24 IMF 2014a. 25 World Bank 2014. 26 Overall, the agricultural sector in GDP remains high at 25%, accounting for more than 60% of employment on average and for more than 80% in many countries. 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The Global Competitiveness Report 2011–2012. Geneva: World Economic Forum. ———. 2012a: The Europe 2020 Competitiveness Report: Building a More Competitive Europe, 2012 edition. Geneva: World Economic Forum. ———. 2012b: The Global Information Technology Report 2012. Geneva: World Economic Forum. ———. 2012c. The Global Competitiveness Report 2012–2013. Geneva: World Economic Forum. ———. 2013. The Travel & Tourism Report 2013. Geneva: World Economic Forum. ———. 2014. The Competitiveness of Cities: A Report of the Global Agenda Council on Competitiveness. Available at http://www3.weforum.org/docs/GAC/2014/WEF_GAC_ CompetitivenessOfCities_Report_2014.pdf. Zingales, L. 1998. “Corporate Governance.” In P. Newman, ed., The New Palgrave Dictionary of Economics and the Law. New York: Macmillan. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 45 1.1: The Global Competitiveness Index 2014–2015 Appendix A: Statistically testing the validity of the Global Competitiveness Index as an estimate of the level of productivity of an economy For almost 10 years, the Global Competitiveness Index (GCI) has been used by the World Economic Forum to assess the level of productivity of an economy, which determines its long-term growth potential. This appendix presents the results of an empirical analysis that supports the validity of the GCI as a sound estimate of the level of productivity. It must be said from the start that measuring the level of productivity of an economy is a difficult task. The seminal work of Solow (1957) provided a methodology to estimate the growth rate of productivity, known as “total factor productivity (TFP)” or “Solow residual” in the academic literature. This estimate of productivity growth is traditionally calculated as the difference between the actual growth rate of gross domestic product (GDP) and the part of that growth rate that could not be accounted for by the accumulation of physical capital and human capital. This methodology, however, cannot be used to estimate the actual level of productivity, which is the aim of the GCI. Despite this difficulty, Hall and Jones (1996) have shown that around 89 percent of the variation in GDP per capita is due to variation in the level of productivity. As a result, GDP per capita can be used as a proxy for the level of productivity of a country. Figure 1 illustrates the strong and positive relationship between GDP per capita and the GCI. The bivariate model, in which we regress the log of the level of GDP per capita on the GCI score, reveals that about two-thirds of the variation in GDP per capita can be explained by the GCI. Figure 1: Relationship between the GCI and level of income for 143 economies GDP per capita (PPP $), 2013 (log) scale 100,000 10,000 1,000 0 0 3 4 GCI 2014–2015 score (1–7) Source: World Economic Forum; IMF World Economic Outlook Database April 2014. 46 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 5 6 1.1: The Global Competitiveness Index 2014–2015 Figure 2: Relationship between the GCI and growth (net of convergence effect) Annual net growth, 1990–2012 (percent) 20 15 10 0 0 1.2 1.4 1.6 1.8 ln (GCI 2014–2015 score) Source: World Economic Forum and World Bank, World Development Indicators (accessed August 18, 2014). Note: See text for details. N = 132 economies. Another way to check the relation between the GCI and the level of productivity of a country is to look at the relation between the GCI and the growth rate of that country. Indeed, most economic growth theories predict that the growth rate will be directly related to the level of productivity, which, in turn, determines the rate of return of investment in an economy. As a result, most theories would predict the GCI to be positively related to an economy’s growth rate. However, estimating a bivariate relation between the growth rate and the GCI would be a mistake. The reason for that lies in what economists call the “conditional convergence effect,” which posits that, all other things being equal, there is a natural tendency for poor economies to grow faster—a phenomenon known as conditional convergence.1 In other words, if all countries had the same investment and population growth rates and the same levels of productivity, then we should observe poor countries growing faster than rich ones. Conversely, if all countries had the same level of income, then those that were more competitive would experience higher rates of long-term economic growth. In reality, however, countries differ both in their levels of income and their levels of productivity, and therefore it is very hard to predict the relationship between the growth rate and the level of productivity with a bivariate correlation analysis that includes the initial level of income. As an alternative, we can calculate the correlation between the GCI and GDP growth (once the conditional convergence effects have been discounted). In order to do that, we need to estimate net-of-convergence growth rates; these rates would be more closely affected only by the level of productivity across different economies. If these net-of-convergence growth rates are positively related to the GCI, it will indicate that the GCI is a good estimate of the determinants of productivity. Formally, in a growth convergence equation,2 the growth rate of GDP per capita of country i is a positive function of the GCI score and a negative function of GDP per capita at time t, yit: ␥yi ϭ ␣0 ϩ ␣1 ϫ ln (GCIi ) – ␤ ϫ ln (yit) ϩ ⑀i (1) Using World Bank GDP purchasing power parityadjusted data, one can estimate Equation (1) for the 1990–2012 period. The coefficient of the natural log of GCI is 0.067 with a t-statistic of 5.23, and the coefficient of the log of the initial (i.e., 1990) level of income is –0.010 with a t-stat of –5.82. We can net out the convergence effect from the overall growth rate and relate the result to the level of the GCI.3 Figure 2 plots this “net growth rate” against the natural log of the GCI score, revealing a positive and strong correlation, which is consistent with the view that the GCI is a good proxy for the level of productivity or competitiveness of an economy. In conclusion, the results of both Figures 1 and 2 indicate that the GCI is a good estimate of the level of productivity. In other words, the GCI’s estimate of the determinants of competitiveness—which, in turn, fundamentally shape the (conditional) medium to long-run growth rate of an economy and its level of prosperity—is validated on a statistical level. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 47 1.1: The Global Competitiveness Index 2014–2015 NOTES 1 The reason that poor economies do not grow systematically faster is that “other things are not equal.” Among those other things that are not equal, we find the level of productivity or competitiveness, as defined by the World Economic Forum. 2 A growth convergence equation can be derived, for example, from the basic neoclassical growth theory as seen in Barro and Sala-iMartín (2004). 3 This is done by adding the term ␤ × ln (yit) from both sides of Equation (1) and using the ␤ estimated in Equation (1). GDP per capita in constant 2011 international dollars were used for the computation. REFERENCES Barro, R. and X. Sala-i-Martín. 2004. Economic Growth, 2nd edition. Cambridge: MIT Press. Hall, R. and C. Jones. 1999. “Why Do Some Countries Produce So Much More Output Per Worker than Others?” The Quarterly Journal of Economics 114 (1): 83–116. IMF (International Monetary Fund). 2014. World Economic Outlook Database, April. Available at http://www.imf.org/external/pubs/ft/ weo/2014/01/weodata/index.aspx. Solow, R. 1957. “Technical Change and the Aggregate Production Function.” Review of Economics and Statistics 39 (3): 312–20. World Bank. 2014. World Development Indicators 2014 database. Available at http://data.worldbank.org/products/wdi. 48 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 Appendix B: Computation and structure of the Global Competitiveness Index 2014–2015 This appendix presents the structure of the Global Competitiveness Index 2014–2015 (GCI). The numbering of the indicator matches the numbering of the data tables. The number preceding the period indicates to which pillar the indicator belongs (e.g., indicator 1.11 belongs to the 1st pillar and indicator 9.04 belongs to the 9th pillar). The computation of the GCI is based on successive aggregations of scores from the indicator level (i.e., the most disaggregated level) all the way up to the overall GCI score. Unless noted otherwise, we use an arithmetic mean to aggregate individual indicators within a category.a For the higher aggregation levels, we use the percentage shown next to each category. This percentage represents the category’s weight within its immediate parent category. Reported percentages are rounded to the nearest integer, but exact figures are used in the calculation of the GCI. For example, the score a country achieves in the 11th pillar accounts for 50 percent of this country’s score in the innovation and sophistication factors subindex, irrespective of the country’s stage of development. Similarly, the score achieved on the transport infrastructure subpillar accounts for 50 percent of the score of the infrastructure pillar. Unlike the case for the lower levels of aggregation, the weight put on each of the three subindexes (basic requirements, efficiency enhancers, and innovation and sophistication factors) is not fixed. Instead, it depends on each country’s stage of development, as discussed in the chapter.b For instance, in the case of Burundi—a country in the first stage of development—the score in the basic requirements subindex accounts for 60 percent of its overall GCI score, while it represents just 20 percent of the overall GCI score of Sweden, a country in the third stage of development. For countries in transition between stages, the weighting applied to each subindex is reported in the corresponding profile at the end of this volume. For instance, in the case of Azerbaijan, currently in transition from stage 1 to stage 2, the weight on each subindex is 56.3 percent, 37.8 percent, and 5.9 percent, respectively, as reported in the country profile on page 118. Indicators that are not derived from the Executive Opinion Survey (the Survey) are identified by an asterisk (*) in the following pages. The Technical Notes and Sources section at the end of the Report provides detailed information about each of these indicators. To make the aggregation possible, the indicators are converted to a 1-to-7 scale in order to align them with the Survey results. We apply a min-max transformation, which preserves the order of, and the relative distance between, country scores.c Indicators that are followed by the designation “1/2” enter the GCI in two different pillars. In order to avoid double counting, we assign a half-weight to each instance.d Weight (%) within immediate parent category BASIC REQUIREMENTS .........................................20–60%b 1st pillar: Institutions ..................................................25% A. Public institutions.........................................................................75% 1. Property rights ..........................................................................20% 1.01 Property rights 1.02 Intellectual property protection 1/2 2. Ethics and corruption ................................................................20% 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 3. Undue influence........................................................................20% 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 4. Government efficiency...............................................................20% 1.08 Wastefulness of government spending 1.09 Burden of government regulation 1.10 Efficiency of legal framework in settling disputes 1.11 Efficiency of legal framework in challenging regulations 1.12 Transparency of government policymaking 5. Security....................................................................................20% 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services B. Private institutions .......................................................................25% 1. Corporate ethics .......................................................................50% 1.17 Ethical behavior of firms 2. Accountability ...........................................................................50% 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 1.21 Strength of investor protection* © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 49 1.1: The Global Competitiveness Index 2014–2015 2nd pillar: Infrastructure .............................................25% A. Transport infrastructure................................................................50% 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure e 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers* B. Electricity and telephony infrastructure .......................................50% 2.07 Quality of electricity supply 2.08 Mobile telephone subscriptions* 1/2 2.09 Fixed telephone lines* 1/2 3rd pillar: Macroeconomic environment ....................25% 3.01 3.02 3.03 3.04 3.05 Government budget balance* Gross national savings* Inflation* f Government debt* Country credit rating* 4th pillar: Health and primary education....................25% A. Health ...........................................................................................50% 4.01 Business impact of malaria g 4.02 Malaria incidence* g 4.03 Business impact of tuberculosis g 4.04 Tuberculosis incidence* g 4.05 Business impact of HIV/AIDS g 4.06 HIV prevalence* g 4.07 Infant mortality* 4.08 Life expectancy* B. Primary education ........................................................................50% 4.09 Quality of primary education 4.10 Primary education enrollment rate* 2. Foreign competition .........................................................variable h 6.09 Prevalence of trade barriers 6.10 Trade tariffs* 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports as a percentage of GDP* j B. Quality of demand conditions ......................................................33% 6.15 Degree of customer orientation 6.16 Buyer sophistication 7th pillar: Labor market efficiency .............................17% A. Flexibility ......................................................................................50% 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs* 7.05 Effect of taxation on incentives to work B. Efficient use of talent ...................................................................50% 7.06 Pay and productivity 7.07 Reliance on professional management 1/2 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in labor force* 8th pillar: Financial market development ...................17% A. Efficiency ......................................................................................50% 8.01 Availability of financial services 8.02 Affordability of financial services 8.03 Financing through local equity market 8.04 Ease of access to loans 8.05 Venture capital availability EFFICIENCY ENHANCERS ......................................35–50%b B. Trustworthiness and confidence ..................................................50% 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index* 5th pillar: Higher education and training....................17% 9th pillar: Technological readiness .............................17% A. Quantity of education ...................................................................33% 5.01 Secondary education enrollment rate* 5.02 Tertiary education enrollment rate* A. Technological adoption.................................................................50% 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer B. Quality of education .....................................................................33% 5.03 Quality of the education system 5.04 Quality of math and science education 5.05 Quality of management schools 5.06 Internet access in schools C. On-the-job training .......................................................................33% 5.07 Local availability of specialized research and training services 5.08 Extent of staff training 6th pillar: Goods market efficiency ............................17% A. Competition ..................................................................................67% 1. Domestic competition ......................................................variable h 6.01 Intensity of local competition 6.02 Extent of market dominance 6.03 Effectiveness of anti-monopoly policy 6.04 Effect of taxation on incentives to invest 6.05 Total tax rate* 6.06 Number of procedures required to start a business* i 6.07 Time required to start a business* i 6.08 Agricultural policy costs 50 The Global Competitiveness Report 2014–2015 B. ICT use..........................................................................................50% 9.04 Internet users* 9.05 Broadband Internet subscriptions* 9.06 Internet bandwidth* 9.07 Mobile broadband subscriptions* 2.08 Mobile telephone subscriptions* 1/2 2.09 Fixed telephone lines* 1/2 10th pillar: Market size...............................................17% A. Domestic market size ..................................................................75% 10.01 Domestic market size index* k B. Foreign market size .....................................................................25% 10.02 Foreign market size index* l © 2014 World Economic Forum 1.1: The Global Competitiveness Index 2014–2015 INNOVATION AND SOPHISTICATION FACTORS .........5–30%b 11th pillar: Business sophistication ..........................50% 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 7.07 Local supplier quantity Local supplier quality State of cluster development Nature of competitive advantage Value chain breadth Control of international distribution Production process sophistication Extent of marketing Willingness to delegate authority Reliance on professional management 1/2 NOTES a Formally, for a category i composed of K indicators, we have: K ⌺ indicatork ϭ k=1 K b As described in the chapter, the weights are as specified below. Refer to Table 2 of the chapter for country classification according to stage of development: Stage of development Factor-driven Transition stage (1) from stage 1 to stage 2 Efficiencydriven stage (2) Transition from stage 2 to stage 3 Innovationdriven stage (3) GDP per capita (US$) thresholds* <2,000 2,000–2,999 3,000–8,999 9,000–17,000 >17,000 Weight for basic requirements 60% 40–60% 40% 20–40% 20% 50% 50% 50% Weight for efficiency enhancers 35% 35–50% 5–10% 10% 10–30% 30% * For economies with a high dependency on mineral resources, GDP per capita is not the sole criterion for the determination of the stage of development. See text for details. c Formally, we have: 6 x ( sample maximum – sample minimum ) + 7 d For those categories that contain one or several half-weight variables, country scores are computed as follows: ϫ (sum of scores on half-weight variables) ϫ (count of half-weight variables) e “N/Appl.” is used for economies where there is no regular train service or where the network covers only a negligible portion of the territory. Assessment of the existence of a network was conducted by the World Economic Forum based on various sources. f In order to capture the idea that both high inflation and deflation are detrimental, inflation enters the model in a U-shaped manner as follows: for values of inflation between 0.5 and 2.9 percent, a country receives the highest possible score of 7. Outside this range, scores decrease linearly as they move away from these values. g The impact of malaria, tuberculosis, and HIV/AIDS on competitiveness depends not only on their respective incidence rates but also on how costly they are for business. Therefore, in order to estimate the impact of each of the three diseases, we combine its incidence rate with the Survey question on its perceived cost to businesses. To combine these data we first take the ratio of each country’s disease incidence rate relative to the highest incidence rate in the whole sample. The inverse of this ratio is then multiplied by each country’s score on the related Survey question. This product is then normalized to a 1-to-7 scale. Note that countries with zero reported incidence receive a 7, regardless of their scores on the related Survey question. In the case of malaria, countries receive a 7 if the World Health Organization (WHO) has classified them as malaria-free countries or included them in the supplementary list of areas where malaria has never existed or has disappeared without specific measures. h The competition subpillar is the weighted average of two components: domestic competition and foreign competition. In both components, the included indicators provide an indication of the extent to which competition is distorted. The relative importance of these distortions depends on the relative size of domestic versus foreign competition. This interaction between the domestic market and the foreign market is captured by the way we determine the weights of the two components. Domestic competition is the sum of consumption (C), investment (I), government spending (G), and exports (X), while foreign competition is equal to imports (M). Thus we assign a weight of (C + I + G + X)/(C + I + G + X + M) to domestic competition and a weight of M/(C + I + G + X + M) to foreign competition. i Indicators 6.06 and 6.07 combine to form one single indicator. Weight for innovation and sophistication factors 5% country score – sample minimum (count of full-weight variables) ϩ Capacity for innovation Quality of scientific research institutions Company spending on R&D University-industry collaboration in R&D Government procurement of advanced technology products Availability of scientists and engineers PCT patent applications* Intellectual property protection 1/2 categoryi ( (sum of scores on full-weight variables) ϩ 12th pillar: R&D Innovation .........................................50% 12.01 12.02 12.03 12.04 12.05 12.06 12.07 1.02 –6 x country score – sample minimum sample maximum – sample minimum ) + 1 The sample minimum and sample maximum are, respectively, the lowest and highest country scores in the sample of economies covered by the GCI. In some instances, adjustments were made to account for extreme outliers. For those indicators for which a higher value indicates a worse outcome (e.g., disease incidence, government debt), the transformation formula takes the following form, thus ensuring that 1 and 7 still corresponds to the worst and best possible outcomes, respectively: j For indicators 6.14, imports as a percentage of GDP, we first apply a log-transformation and then a min-max transformation. k The size of the domestic market is constructed by taking the natural log of the sum of the gross domestic product valued at purchased power parity (PPP) plus the total value (PPP estimates) of imports of goods and services, minus the total value (PPP estimates) of exports of goods and services. Data are then normalized on a 1-to-7 scale. PPP estimates of imports and exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP. The underlying data are reported in the data tables section (see Tables 10.03, 6.14, and 10.04). l The size of the foreign market is estimated as the natural log of the total value (PPP estimates) of exports of goods and services, normalized on a 1-to-7 scale. PPP estimates of exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP. The underlying data are reported in the data tables. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 51 2014 World Economic Forum CHAPTER 1.2 Assessing Progress toward Sustainable Competitiveness GEMMA CORRIGAN ROBERTO CROTTI MARGARETA DRZENIEK HANOUZ CECILIA SERIN World Economic Forum One of the key developments in the policy space over the past decade has been the advancement of concepts related to environmental sustainability and more recently inclusive growth. Such conceptual schemes comprise social, economic, and environmental components of sustainability, and they provide an intellectual basis for societies around the world to coalesce around the principles of sustained and universal levels of prosperity. The emergence and widespread acceptance of the principle of social inclusion in the public domain has both a cultural origin and an economic one. Its cultural origin can be traced back as far as the 17th-century idea of egalitarianism, an idea that became embedded in cultural norms and then evolved into a widely held value system in international politics that provided a common rhetoric about human development. In the aftermath of World War II, this concept was translated into the universal declaration of human rights.1 Its economic origin is rooted in the unprecedented economic development of Western economies since the mid-20th century. During this period, high standards of living were achieved by large swaths of the populations of these economies, with the expectation that these standards would remain high and expand globally over time. In a similar fashion, the concept of environmental sustainability has evolved from two ideas: ecologism— the idea that the non-human world is worthy of moral consideration2—and environmentalism, a broad-based movement concerned with protecting the environment, and in particular with the effects of environmental damage on the health and well-being of both humans and the environment. Over the past decades, these ideas have become prominent in the global discourse and have helped to create a public expectation of growing prosperity that goes hand in hand with social justice and environmental protection. Yet the possibility of achieving this vision within the boundaries of the prevalent growth model has been called into question as increasing pressures on the environment have become evident, and as concerns voiced over the distribution of the benefits of economic development have grown more forceful. The mounting social and environmental pressures observed in rapidly growing developing and emerging economies suggest that these dimensions are strongly intertwined and therefore should be addressed as part of the economic development process. And because environmental and social sustainability are simultaneously inputs and outcomes of the growth process, they should not be considered in isolation, but rather as integral parts of the economic growth process. Despite increased awareness about the urgency of social and environmental issues, progress toward a more sustainable future is slow. On the environmental sustainability side, although concrete improvements have been achieved in many countries on specific issues such © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 53 1.2: Assessing Progress toward Sustainable Competitiveness Box 1: The Advisory Board on Sustainable Competitiveness The Advisory Board on Sustainable Competitiveness has been assisting the World Economic Forum to integrate the concept of sustainability more fully into its competitiveness work since the beginning of the Sustainable Competitiveness project. Members are drawn from the network of Global Agenda Councils, the World Economic Forum’s knowledge backbone. They represent voices from key business sectors, government, and civil society. The members of the Advisory Board are: James Cameron, Chairman, Climate Change Capital, United Kingdom Dan Esty, Professor, Yale University, USA Clément Gignac, Chief Economist and Senior VicePresident, Industrial Alliance Insurance and Financial Services, Canada John W. McArthur, Senior Fellow, UN Foundation & Nonresident Senior Fellow, Brookings Institution Kevin X. Murphy, President and Chief Executive Officer, J.E. Austin Associates Inc., USA Mari Elka Pangestu, Minister of Tourism and Creative Economy, Indonesia Lindene Patton, Chief Climate Product Officer, Zurich Financial Services, Switzerland Anthony O’Sullivan, Head Private Sector Development, Organisation for Economic Co-operation and Development (OECD), France Xavier Sala-i-Martín, Professor, Economics Department, Columbia University, USA Jeni Klugman, Director for Gender, The World Bank, USA Mark Spelman, Global Managing Director, Accenture, United Kingdom Marc A. Levy, Deputy Director, Center for International Earth Science Information Network, Columbia University, USA Simon Zadek, Co-Director of the UNEP Inquiry on Options for a Sustainable Finance System, United Nations Environment Programme, Switzerland as the regulation of hazardous substances,3 progress on broader issues has been patchy. Pollution and biodiversity loss are of growing concern, while climate change and its unpredictable consequences remain substantially unaddressed. The world is also facing an increasing scarcity of water, energy, and mineral resources, for which demand continues to climb. These developments signal that—despite growing awareness about the risks related to unsustainable resource and environmental management—the world is not moving toward a more sustainable path and concrete results are yet to be achieved. On the social sustainability side, there appears to be a trend toward more polarized societies. Although part of this trend can be traced back to the slowdown following the financial crisis, research also finds a structural decline in the share of GDP accruing to labor, mainly driven by skill-biased technological change related to globalization.4 There is a concern that this trend may result in a high concentration of wealth similar to that experienced by Western economies in the earlier stages of industrialization. According to Thomas Piketty’s recent analysis,5 the widespread gains in prosperity to which Western societies have become accustomed and that emerging economies aim to achieve were realized only in the first decades following World War II.6 The recent interest in social inclusion and socioeconomic inequality is linked, in large part, to its potentially socially destabilizing effect. Research shows that more polarized societies may undermine trust in 54 The Global Competitiveness Report 2014–2015 democratic and market institutions, leading to greater political instability.7 Taken together, the limited progress in addressing environmental and social concerns could undermine the prospects for worldwide shared prosperity. In the absence of economic growth, any effort toward a more equal distribution of income would do little good for the millions of people in developing countries who remain at low levels of income and human development. Therefore, while enhancing competitiveness remains a fundamental prerequisite to raising prosperity, it should be accompanied by transformations that adapt to the new technological, geopolitical, and ecological reality to ensure that progress translates into higher human development for all. At the same time, sustainable competitiveness should be at the heart of the thinking about sustainability because competitive economies tend to be more innovative, more resilient, and better able to respond to external shocks and thus maintain high levels of prosperity going forward. Attaining higher levels of sustainability requires that governments, businesses, and civil society work together to address the emerging challenges. Progress on these challenges requires high levels of multi-stakeholder collaboration—for example, on environmental regulation, where a balance with productivity needs to be ensured, and on social inclusion, which can be achieved only if businesses contribute to human capital development. Such collaboration is needed to achieve more pragmatic © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness progress and allow countries to transition to more sustainable models of growth. Even though the number of studies on sustainability has grown significantly over the past decades, the detailed linkages between sustainability and competitiveness remain to a large extent uncertain. To fill this gap, the World Economic Forum has engaged in a series of activities to expand its knowledge of sustainability and of the relationship between sustainability and competitiveness, and has been at the forefront of the discussion on environmental sustainability. This work aims to shape the agenda by catalyzing public-private platforms that help governments draw on their joint expertise to identify and implement solutions to the most pressing issues facing the global community. Issues of economic, social, and environmental sustainability have been showcased and discussed at many of the Forum’s regional and annual meetings. Since 2010, the World Economic Forum—in collaboration with a multi-stakeholder Advisory Board of international experts (Box 1)—has embarked on an effort to integrate the concept of sustainability into its competitiveness work. The Forum continues its efforts to build a more robust narrative of the concept of sustainable competitiveness. DEFINING SUSTAINABLE COMPETITIVENESS With the 1987 publication of the report Our Common Future, sustainable development was defined as the “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”8 The breadth of the definition was meant to capture the several dimensions of development that go beyond the usual boundaries of economic growth in order to include both the tangible and intangible necessities of life. The concept of sustainable competitiveness places more emphasis than the concept of sustainable development does on the importance of productivity as a driver of prosperity and long-term growth. We define sustainable competitiveness as the set of institutions, policies, and factors that make a nation productive over the longer term while ensuring social and environmental sustainability. Social sustainability, in turn, is defined as 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. And we define environmental sustainability as the institutions, policies, and factors that ensure an efficient management of resources to enable prosperity for present and future generations. Fundamental to the concept of sustainable competitiveness is the notion that, although competitiveness can be equated with productivity, sustainable competitiveness can be linked to a broader concept that focuses on aspects that go beyond mere economic outcomes to include other important elements that render societies sustainably prosperous by ensuring high-quality growth. Another way of looking at the concept of sustainable competitiveness is that it aims to gauge not only whether a country has the potential to grow over the medium and long term, but whether the national development process is producing the kind of society in which we want to live. Competitiveness and environmental sustainability The concepts of competitiveness and environmental sustainability are linked at both the country and the firm level. At the country level, because Earth’s natural resources are either limited or are renewed at a specific physical rate, finding an appropriate combination of technology and the planet’s carrying capacity could prevent the limitations of resources from becoming a drag on growth. Developing sustainable practices could also, to a certain extent, fuel productivity. For example, biodiversity can be an important source of innovation. At the firm level, the impact of environmental regulations on productivity is still controversial, especially if externalities are not taken into account. However, many companies have started to become more aware that environmental challenges such as pollution, climate change, and resource scarcity could affect them (see Box 2). First, these challenges could affect a firm’s bottom line at some point in time, for example through frequent supply chain disruptions resulting from unforeseen meteorological catastrophes (which are thought to be affected by climate change). Second, stricter environmental regulations could also impact business operations, for example when businesses must face higher prices for commodities used as inputs of production. And third, as consumers become more aware of environmental sustainability issues, companies become more concerned about reputational risks.9 Consequently, the business sector has started to take a keener interest in environmental issues than it did a couple of decades ago. This is evidenced in the increasing number of companies voluntarily reporting on their emissions,10 and in the number of financial management firms signing on to the United Nation’s Principles for Responsible Investment.11 Companies are also taking action on issues that may impact the sector in which they do business. For example, foodprocessing companies have put forward and supported initiatives relating to water scarcity because this scarcity may have—in some cases is already having—an impact on crops and therefore on the supply of raw materials and cost of commodities. Another example is the information technology (IT) sector, where “sustainability is fast becoming an important corporate-performance © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 55 1.2: Assessing Progress toward Sustainable Competitiveness Box 2: Progress toward stronger environmental regulations In the run-up to the 21st Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change to be held in 2015 in Paris, when a new climate accord is due, countries are getting more serious about their environmental policies. On climate change, for example, as a recent report by the Global Legislators Organisations (GLOBE International) and the Grantham Research Institute at the London School of Economics points out, climate legislation in 66 countries now covers nearly 88 percent of current greenhouse gas emissions.1 To be sure, although some major industrialized countries have experienced serious resistance to climate legislation—for example, Australia’s government repealed a key element of the country’s Clean Energy Act (the carbon tax) three times in 2014;2 and Japan announced, in the COP 19 session of the Convention on Climate Change in Warsaw, that its greenhouse gas emissions will be slashed by only 3.8 percent by 2020 compared with 2005 levels to accommodate a much reduced reliance on low carbon nuclear energy after the accident at Fukushima3—almost 500 climate laws were passed in the 66 countries studied.4 According to the GLOBE report, developing countries and emerging markets have passed climate change laws and regulations at a faster pace than developed countries. For example: Sub Saharan Africa saw major developments in 2013, with progress made in almost all of the study countries, notably the approval of national plans and strategies on climate change • Kenya adopted 2013-2017 Climate Change Action Plan; • Mozambique adopted 2013-2025 National Strategy for Climate Change; • Tanzania passed its National Strategy on REDD+; • Nigeria’s Legislative Council approved the adoption of a National Climate Change Policy and Response Strategy The Americas are also taking concrete legislations • Bolivia passed its Framework Law on Mother Earth and Integral Development to Live Well; • El Salvador adopted its National Climate Change Strategy; • In Ecuador, Decree 1815 established the Intersectoral National Strategy for Climate Change; • In Costa Rica a draft General Law on Climate Change has been introduced and is expected to pass in 2014.5 Another breakthrough in the climate change regulatory landscape this year is the United States’ announcement to tackle carbon dioxide emissions. President Barack Obama, who promised to “respond to the threat of climate change” in his inaugural speech after his re-election, has exercised executive authority through the Environmental Protection Agency to reduce emissions nationwide by an average of 25 percent by 2020 and 30 percent by 2030.6 Confirming this trend, Figure 1 shows that, overall, countries are getting more serious about their environmental regulation. Findings from the Executive Opinion Survey (the Survey) show that the stringency of regulations has increased by more than 0.1 points in the last 10 years, and regulatory enforcement has increased by nearly 0.1 points in the same period of time. Whether motivated by improved climate change science, the cost of doing nothing,7 or the heightened perception of environmental risk (since 2010, the respondents of the World Economic Forum’s Global Risks Perceptions Survey consider environmental risks both to be more likely to happen and to have greater impact),8 the increase in the number and efficacy of environmental regulations is welcome and timely. The drivers for this increase differ across the world. In Asia, for example, stronger policies are motivated as much by energy security as they are by local pollution and public health challenges, and in forested nations international attention on deforestation probably plays a key role in encouraging more stringent regulation to preserve forests. A growing realization that environmental degradation could derail growth is also contributing to this trend. The World Bank estimates the cost of pollution to China at around 9 percent of its gross national income,9 while China’s Ministry of Environmental Protection put it at around 3.5 percent of GDP (based on 2010 figures). According to the Global Burden of Disease 2010 study published in the Lancet in December 2012–January 2013, air pollution contributed to 1.2 million premature deaths in China in 2010.10 However, the GLOBE International report concludes that, despite the positive trends toward a greater number of environmental regulations, the cumulative ambition of these laws is still not enough to limit global average temperature rise to 2ºC above pre-industrial levels—the agreed goal of the international community. In general, the expanded efforts of regulators to deliver more sustainable development mechanism have not yet produced tangible effects on a large scale. Against this backdrop, it is clear that private sector–led initiatives and public-private partnerships are needed to help mobilize new constituencies and deliver the needed targets. Already some key private-sector groups are forming to act voluntarily on climate and realize opportunities associated with climate-smart business. For example, the Consumer Goods Forum (CGF) is a group focused on sustainability composed of 400 retailers, manufacturers, service providers, and other stakeholders across 70 countries, with combined sales of nearly US$2.5 trillion.11 More specifically, the CGF has four key focus areas: addressing climate change, achieving zero net deforestation, shifting to natural refrigerants, and removing waste from supply chains. In another example, the Banking and Environment Initiative (BEI) comprises 10 of the world’s largest banks, including Barclays, China Construction Bank, and Deutsche Bank. Its mission is to lead the banking (Cont’d.) 56 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness Box 2: Progress toward stronger environmental regulations (cont’d.) Figure 1: Evolution of Survey results for environmental regulation indicators, 2005–14 Average Survey results (1–7 scale) 4.4 4.2   Enforcement of environmental regulations 4.0   Stringency of environmental regulations 3.8 3.6 2005– 2006 2006– 2007 2007– 2008 2008– 2009 2009– 2010 2010– 2011 2011– 2012 2012– 2013 2013– 2014 Source: World Economic Forum, Executive Opinion Survey, multiple years. Note: Full Survey questions are provided here: Stringency of environmental regulations: How would you assess the stringency of your country’s environmental regulations? [1 = very lax; 7 = among the world’s most stringent]; Enforcement of environmental regulations: How would you assess the enforcement of environmental regulations in your country? [1 = very lax; 7 = among the world’s most rigorous] industry in collectively directing capital toward environmentally and socially sustainable economic development. These groups are not only working on a sectoral basis but also coming together across industries to drive more significant impacts. For example, the BEI is supporting the CGF by providing models to finance sustainable commodity supply chains. Initiatives that encourage collaboration and communication cross stakeholders are just a first step toward finding a pragmatic solution to complex environmental problems, yet they represent a key step because they set the foundation for crafting regulations that are more simple and effective when applied to the reality of business operations. Notes 3 Kuramochi 2014. 4 See the GLOBE Climate Legislation Study by Nachmany et al. 2014. 5 Nachmany et al. 2014; this checklist is from pages 4 and 5 of a summary of that report on the organization’s website, http://www. globeinternational.org/studies/legislation/climate. 6 Harder 2014. 7 The Economist 2014. 8 World Economic Forum 2014. 9 World Bank and the Development Research Center of the State Council, P. R. China 2013, p. 249. 1 Nachmany et al. 2014. 10 The Lancet 2013. 2 For more information, see the website of the Australian Government’s Department of the Environment at http://www.environment.gov.au/climate-change/repealing-carbon-tax. 11 For information about the Consumer Goods Forum, see http://www.theconsumergoodsforum.com/. metric.”12 Information technology companies—concerned with energy costs, reputational risks, and difficulties they confront in continuing to expand their capacity—are beginning to reduce their footprint by adopting “greener data centers” that significantly reduce energy demand. The relationship between environmental sustainability and competitiveness is multifaceted and affects an economy in different ways. Multiple channels support a positive relationship between environmentally sustainable practices and productivity gains; here we identify and describe the main ones: • Efficient use of natural resources. The efficient use of natural resources includes both managing exhaustible raw materials and using renewable resources within their regenerative capacity in order to minimize production costs, ensure their availability for future generations, and reduce pollution. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 57 1.2: Assessing Progress toward Sustainable Competitiveness As described by the literature on public goods, welfare increases once the negative externalities generated by pollution are corrected.13 It follows that environmental sustainability can bring about a better economic outcome if it is associated with formal or informal institutions that define property rights and result in the adoption of sustainable processes over the use of scarce resources. • Carbon reduction. Climate change is a global issue, but its impact on individual countries and companies is significant. Some sectors are more exposed than others: agriculture is the most exposed to the effects of climate change such as rise of temperature, water scarcity, and extreme weather. Although solutions for global emission reductions require international coordination, carbon-reducing business practices can have a positive effect on long-term competitiveness. In the context of rising energy demand, improving energy efficiency through management changes, investing in technology improvement, and using low-carbon energy infrastructure can produce significant savings relatively quickly.14 In addition, investments in capital expenditures for emission reduction can generate business opportunities for new sectors Climate change is already perceived as one of the environmental challenges with the most far-reaching and most severe negative impact on human well-being, but the debate on how to address it most efficiently is still ongoing. Some studies support the position that increasing energy efficiency and introducing emissions standards are more costly to the economy as a whole than the use of carbon pricing,15 while others see carbon taxes as having more negative impact on the economy in the short run. For example, according to a study by the Congressional Budget Office of the United States,16 the impact of a carbon tax could be detrimental to output in the short run by raising the cost of energy and transport; however, this cost could be partially offset by cuts in marginal income taxation. In the longer run, a higher pricing of carbon-intensive goods would reduce emissions and thus reduce the taxation level and the initial economic drag associated with it. One more element to take into account is the impact of externalities linked to climate change. Choosing a less carbon-intensive development path generates returns by reducing losses that result from climate change. For example, the negative impact of climate change on crops is already documented.17 There is also agreement that climate change gives rise to extreme weather, which in turn can destroy tangible assets such as infrastructure, 58 The Global Competitiveness Report 2014–2015 public facilities, and industrial stocks. These weather events interrupt the regular flow of goods and services both within and between countries. According to an estimate of the 2007–2008 UN Human Development Report, to reach the Millennium Development Goals by 2015, the cost associated with coping with a more hostile climate since 2007 is approximately US$85 billion per year more than would be required to achieve these same goals if climate change did not have to be considered. To take one example, the recent floods in the Balkans are, according to scientists, probably linked to climate change.18 According to the World Health Organization,19 this event has caused the death of almost 60 people and displaced over 60,000 more. Looking at its economic impact alone, the European Bank for Reconstruction and Development reports physical damages estimated at €1.5–€2 billion in Serbia and about €1.3 billion in Bosnia and Herzegovina, particularly affecting agriculture, power generation, mining, and transport infrastructure. • Improved health. A high-quality natural environment improves the productivity of the workforce by reducing health damage caused by pollution or environmental degradation. Since health affects productivity and pollution affects health, efforts to reduce pollution may be interpreted as an investment in human capital. Recent empirical evidence has indicated that, in the United States, ozone levels below federal air quality standards have a positive impact on productivity (a 10 parts per billion decrease in ozone concentrations raises worker productivity by 4.2 percent).20 Finally, environment-driven health problems lead to resource misallocation, forcing governments to fund additional, and otherwise unnecessary, health programs and diverting resources that would otherwise go into productivity-enhancing investments in, for example, education or innovation. • Biodiversity for innovation. Ultimately, environmental degradation can impact the way ecosystems work and reduce biodiversity. Biodiversity supports the productivity of the workforce by providing food, fiber, shelter, and natural medicines, and it regulates the water supply and air quality. According to the Convention on Biodiversity,21 more than 1.3 billion people in the world depend on biodiversity and on basic ecosystem goods for their livelihoods. Biodiversity losses caused by deforestation or significant land use changes—which today are estimated to be 100 to 1,000 times greater than is thought to occur naturally—increase the vulnerability of terrestrial and aquatic ecosystems and induce changes in © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness climate and ocean acidity.22 Biodiversity is also a key driver of economic growth, especially in developing countries, because it provides the basis for many innovations in areas such as pharmaceutical or cosmetic products. At the same time, interfering with ecosystems may make living conditions for humans more difficult and perhaps engender additional costs. Last but not least, biodiversity restoration and protection can create profitable business opportunities, incentivizing the development of new technologies and products for their utilization in still-unexplored markets. Furthermore, investing in the greening of tourism can reduce the cost of energy, water, and waste and thus enhance the value of biodiversity, ecosystems, and cultural heritage.23 Competitiveness and social sustainability Interest among economists and social scientists in the relationship between income distribution and economic performance has been growing over the last 20 years. Although the findings are not yet conclusive, the diverging patterns in income of different population clusters in developing and developed economies alike are certainly tangible and explain the broad interest around this topic. However, the concept of social sustainability goes beyond just inequality. Although there is no unique consensus around the concept of social sustainability, it is possible to identify recurring themes in the different definitions that have been proposed so far. Human rights, equity, and social justice are among the most relevant. Since the recommendations of the Stiglitz-SenFitoussi Commission in 2009,24 many attempts have been made to identify the relationship between social sustainability and development. However, empirical evidence to support the theory that the two are interdependent remains somewhat inconclusive. More recently the concept of inclusive growth has entered international discourse. Although not yet universally defined, inclusive growth looks at how countries can achieve growth and balanced social outcomes simultaneously. Box 3 describes a related initiative on inclusive growth launched at the World Economic Forum, which attempts to respond to this challenge. Recent events in different parts of the world have generated concerns that an unbalanced social model can undermine the stability of the growth process for both current and future generations. If economic benefits are perceived to be unevenly distributed within a society, and this inequality leads to significant social discontent, the capacity of individuals to contribute to and benefit from higher rates of economic growth can be affected. Based on our definition of sustainable competitiveness, specified above, we analyze here those dimensions of social sustainability that are likely to fuel productivity and long-term prosperity while at the same time preserving social stability. Our aim is to unbundle the most relevant elements, even if they are often interrelated and not always clearly distinct: • Inclusion. An inclusive society ensures that all citizens contribute to and benefit from the economic prosperity of their country. Inclusion is a prerequisite for social cohesion because, if some members of the community are marginalized, the society will lack the necessary coherence of goals to accomplish common purposes. Typical examples of social exclusion that have a considerable negative impact on the competitiveness of a nation are the lack of access to basic necessities, discrimination according to gender, youth marginalization, and extreme polarization of income. Any type of social exclusion that prevents people from fully participating in the labor market reduces the availability of talent to a country’s firms and organizations, thereby reducing competitiveness. Lack of access to sanitation, drinkable water, or healthcare can dramatically impair labor productivity, reducing the ability of the economy to compete globally. At the same time, when young people are marginalized by the labor market and have access only to short-term and highly volatile jobs, they remain vulnerable, especially during downturns. These workers usually receive less on-the-job training than their counterparts in stable positions, thus reducing the overall level of human capital. Finally, the participation and empowerment of women is key to ensuring a large talent pool and tends to bring about other positive effects, such as reducing infant mortality, reducing poverty, improving the management of scarce resources, reducing conflict, and guaranteeing food security. • Equity and cohesion. An equitable society guarantees the same opportunities for all its members, rewarding them according to their talents and fairly redistributing the benefits of growing wealth,25 creating a cohesive society with no excessive income disparities across different groups. Inequality is a multidimensional concept. For the purposes of this Report, we are mainly interested in income inequality, which certainly represents one of the biggest challenges for policymakers globally and which is highly correlated with access to other opportunities. Although some earlier literature found a positive relationship between growth and inequality, more recent research tends to find the opposite, via the following channels: first, high levels of inequality © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 59 1.2: Assessing Progress toward Sustainable Competitiveness Box 3: The World Economic Forum’s Global Project on Inclusive Growth In many countries, the gap between rich and poor is widening, youth unemployment is rising, and access to basic services remains a challenge. Even in several fastgrowing developing countries, it appears that growth has not made a notable dent in income inequality or poverty, and the vulnerabilities associated with these problems remain entrenched.1 The global community is calling for change—for solutions that foster economic growth in a more inclusive manner. The question of how to unlock new sources of productive employment and strengthen the contribution of economic growth to improvements in broad living standards is becoming an increasingly important concern for political and business leaders in developed and developing countries alike. However, although international consensus on the need to develop new approaches in this respect is widespread, very little in the way of concrete policy guidance has emerged from the G-20 or from international institutions. There is a growing need for analytical frameworks and evidence-based solutions suited to this purpose. The economic fundamentals that have accompanied high and sustained economic growth are well known and form the basis of the World Economic Forum’s 12-pillar model of competitiveness. Nevertheless, the economic debate on inclusive growth is still taking shape, and the Forum is playing an active role in disentangling the complex relationship between growth and equity, building on its existing benchmarking and sustainability work. The mechanisms through which growth-enhancing policies impact poverty and inequality are difficult to unravel, however. Several policy areas have been identified as “win-win” or “super pro-poor” in that they have both a positive effect on growth and a negative effect on inequality, while others remain inconclusive.2 For example, policies and structural reforms should provide equality of opportunity so that all segments of society can participate in its growth by expanding and improving labor, technology, and capital in order to raise living standards. Increasing affordability and access to highquality education and training, and providing access to credit and other incentives for small business development, are among the most effective instruments available to governments for achieving progressive growth. These should be complemented by policies that redress some of the inequalities in outcomes, particularly those experienced by poor and vulnerable segments of the populations, through attention to areas such as provisioning public services, establishing a progressive tax code, and providing basic social and labor protections.3 The international community has made significant progress in defining inclusive growth. However, agreeing on a comprehensive and more actionable framework remains an ongoing challenge. One widely accepted definition of inclusive 60 The Global Competitiveness Report 2014–2015 growth involves output growth that is sustained over decades, is broad-based across economic sectors, creates productive employment opportunities for the majority of the country’s population, and reduces poverty.4 Reductions in excessive income inequality have also emerged as a prerequisite for inclusive growth, supported by mounting evidence that inequality undermines growth.5 In summary, inclusive growth is about both the pace and pattern of economic growth.6 The World Economic Forum’s Global Project on Inclusive Growth aims to mobilize a better response to this challenge by drawing on its multiple, relevant capabilities in partnership with key international organizations to build on this initial framework and push the policy agenda further. Specifically, it will seek to assemble a comparative analysis of the extent to which countries make use of the wide spectrum of policy incentives and institutional mechanisms that influence the pattern and pace of broad-based progress in living standards. An initial framework includes areas such as creating an enabling environment for human capital formation, reinforcing the wage and productivity growth link, fostering entrepreneurship and investment, reinforcing business and political ethics, promoting gender parity, reviewing fiscal policy (tax code and social protection), and providing improved public services and infrastructure. Once completed, this framework will be used as a point of departure for a series of policy dialogues among policymakers, business leaders, and other opinion shapers. The goal is to establish a more concretely actionable foundation for policy by giving countries a clearer relative sense of the extent to which they are exploiting the policy space and the best practices available to them on the basis of the recent experience of their peers or the historical experience of other relevant countries. By doing so, the Global Project on Inclusive Growth aims to shed light on the full spectrum of policy levers available to promote social participation in the process and benefits of economic growth without dampening incentives to work, save, and invest. Notes 1 While extreme poverty (at a $1.25 per day threshold) has declined notably, taking such narrowly defined poverty headcount ratios underestimates the large numbers of low-income people who fall just above fixed international poverty thresholds (e.g., $2 or $2.75 per day). See AfDB 2013; Ali and Zhuang 2007. 2 Lopez 2004; Killick 2002. 3 Furman 2014; IMF 2013. 4 Commission on Growth and Development 2008; Ianchovichina and Lundstrom 2009. 5 Berg and Ostry 2011; Ostry et al. 2014. 6 Ianchovichina and Lundstrom Gable 2012. © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness can potentially distort the political process;26 second, inequality can lead to reduction in human capital investments;27 third, it may require more redistributive efforts, thus potentially introducing more market distortions; fourth, in presence of weak institutions, it can lead to economically harmful social tensions; and finally, in countries defined as “wage-led,” a more equal distribution of income tends to deliver higher output.28 Persistent inequalities tend to limit upward social mobility, preventing gifted and hard-working individuals from being rewarded according to their talents. However, it can be argued that some degree of disparity— provided it is not driven by rent positions—is actually beneficial for growth because it incentivizes people to invest in education, work harder, and be more innovative and productive. • Resilience. A social system is resilient when it can absorb temporary or permanent shocks and adapt to quickly changing conditions without compromising its stability. Formal or informal institutions usually perform the role of shock absorber, reducing the vulnerability of the society as a whole. In advanced economies, welfare states promote the economic and social well-being of the society by protecting their members from excessive loss of income during old age and during periods of unemployment or illness. Although welfare systems represent a source of stability for an economy, they can turn into a hurdle for its competitiveness since overly generous social security programs increase labor costs; can undermine the stability of public finances and limit macro-stabilization policies; and can hamper the incentives to work, innovate, and excel. In order to be sustainable, a social protection system needs to be well balanced and affordable. The resilience of a social system also depends on the features of its labor market and on the extent of the black economy. When workers have access only to short-term contracts or vulnerable employment, they are exposed to negative shocks and to all the costs associated with unemployment. Moreover, a widespread black economy may affect the resilience of a social system, since informal workers are more vulnerable to concerns related to job loss, old age, maternity, disability, or illness. Relationship between environmental and social sustainability The third and final relationship we would like to explore is the one between environmental and social sustainability. The quality of the environment and the structure of a society are clearly correlated. On the one hand, wellmanaged natural resources increase the quality of life, reduce tensions within and between generations, provide better opportunities for the whole community, and improve the resilience of the society. Moreover, the management of natural resources might translate into “in-kind” income distribution, as resource scarcity may leave the poorest of the population unable to access basic necessities. On the other hand, widespread prosperity, which facilitates a high quality of life, requires a functioning economy that, by definition, uses natural resources. For this reason, although the academic literature tends to focus on these two dimensions individually, the World Economic Forum is interested in exploring the way environmental and social sustainability interact with one another. In this chapter, selected channels that have been extensively highlighted by the literature are presented: • Health and environmental degradation. As discussed in the previous section, a degraded environment negatively affects the health, and thus the productivity, of the workforce. It also reduces the overall quality of life of members of the society. Each year, air pollution, unsafe drinking water, and exposure to chemical products contribute to a number of often-lethal diseases both in the developed and developing world. According to the Organisation for Economic Co-operation and Development (OECD),29 unsafe water supplies, lack of sanitation, and poor hygiene are responsible for 3 percent of all deaths worldwide, of which 90 percent are children’s. An unhealthy environment dampens economic opportunities, prevents people from participating in the life of the community, diverts resources from productive uses, and contributes to urban decline. • Demography, poverty, and the environment. The relationship between demography and environmental/social sustainability is extremely intricate. Rapidly growing populations can be a source of environmental stress, leading to greenhouse gas emissions, high rates of soil erosion, and the extinction of species. If rapid population growth is not accompanied by environmental management, it can give rise to tensions between groups for the control of scarce resources and can therefore be a source of further social instability, creating a vicious circle. Persistent poverty may also affect the environment and may lead to massive unplanned urbanization, such as slums, where large segments of the population are without access to basic services. Such settlements can have significant repercussions for the environment, including deforestation and the pollution of water resources, which results from the lack of waste management. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 61 1.2: Assessing Progress toward Sustainable Competitiveness • Energy and social stability. Increases in energy prices disproportionately affect the real purchasing power of the lowest earners in the society, because the elasticity of energy demand (fuel and electricity) is relatively rigid in the short run. Rising energy prices can therefore exacerbate income polarization. In societies where the purchasing power of significant segments of the population is low, high energy prices can endanger the affordability of basic services unless the loss of purchasing power is offset by fiscal policies. An additional link between energy, environment, and social sustainability is the use of particular alternative energy sources such as ethanol and biodiesel. Although these types of energy sources help to reduce CO2 emissions, they also use wide land areas and contribute to increased food prices. Moreover, these alternatives also have significant environmental impact in the form of additional pressure on water resources. Hence, the assessment of energy policies needs to be based on a holistic view that takes into consideration a broad spectrum of environmental and social consequences. • Climate change, food security, and conflict.30 In the future, rising sea levels and more extreme weather conditions may force millions of people to migrate, adding pressure to natural resources— especially water—in the destination areas. Rising competition over these resources could eventually result in military conflict. Adverse changes in temperature and precipitation have started to affect the capacity of many areas to produce food, thus increasing the vulnerability of the population. According to some studies, at present 1.7 billion people live in water-stressed countries. Industrialization and demographic forces are likely to further aggravate the situation, and climate change may exacerbate the situation even more by decreasing stream-flow and groundwater recharge. Pressure on water resources and land, combined with a growing world population and rising poverty in some regions, may also aggravate migration and food security concerns, which already represent major problems today.31 At present, the Food and Agriculture Organization of the United Nations estimates that approximately 850 million people globally (or 12 percent of the world’s population) are without sufficient access to food or are malnourished; these people are concentrated mostly in the developing world.32 In less-developed countries, decreasing crop yields may lead to further exploiting degraded land, while globally, changing environmental conditions are reducing crop productivity. This constellation of pressures 62 The Global Competitiveness Report 2014–2015 may increase food insecurity in the long term, even in areas where food availability is relatively secure today, which in turn may lead to exacerbate poverty and migration phenomena. • Climate change and women’s empowerment.33 According to a growing body of research, climate change is not gender neutral. In many rural and traditional societies in Africa, women are responsible for securing water, food, and energy for cooking and heating. But the effects of climate change such as droughts, heat waves, infections encouraged by rising temperatures, deforestation, and uncertain rainfall make it harder for these women to secure the resources they need. This, in turn, further weakens their position in society and reduces opportunities to better their lives and that of their families. THE MEASUREMENT OF SUSTAINABLE COMPETITIVENESS In order to assess where we stand today and to provide meaningful insights about how best to address the complex and highly interdependent challenges related to sustainable competitiveness, it is helpful to structure the analysis through a conceptual framework and to be able to measure the concept. Efforts to measure sustainability The following sections lay out the key existing approaches to measuring sustainability and describe the methodology of the sustainability-adjusted Global Competitiveness Index, which is the World Economic Forum’s ongoing contribution to these efforts. At the country level, the main references in this domain remain, as highlighted in previous editions of this Report, the recommendations of the Stiglitz-SenFitoussi Commission; the European Commission’s sustainability objectives presented in the Europe 2020 growth strategy; the OECD’s Better Life Index; and the United Nations Development Programme’s (UNDP) Human Development Index (HDI), which has included the environmental sustainability and equity adjustments.34 The United Nations, subsequent to the first Millennium Development Goals, is discussing a wider set of indicators to track progress in sustainability with the new Sustainable Development Goals (see Box 4). Other efforts to measure specific aspects of social sustainability include the World Bank’s Worldwide Governance Indicators Framework and the International Labour Organization’s Decent Work initiative.35 For the metrics of environmental sustainability, the main contributions remain the Environmental Performance Index (EPI) developed by researchers at Yale and Columbia universities;36 the Ecological Footprint, developed by the Global Footprint Network;37 and the Global Adaptation Index.38 © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness Box 4: The Sustainable Development Goals: A sound basis for sustainable growth Because the Millennium Development Goals (MDGs) have evolved into the Sustainable Development Goals (SDGs)—a development that is expected to be adopted in by the United Nations in 2015—sustainable development is once again a top priority on policymakers’ agendas. The vision emerging from the discussion of the SDGs 2015 is a more encompassing one of sustainable development that is at the center of the political process, putting poverty eradication at the core of the SDGs but also recognizing that “changing unsustainable and promoting sustainable patterns of consumption and production and protecting and managing the natural resource base of economic and social development are the overarching objectives of and essential requirements for sustainable development.”1 boundaries and the importance of just, equitable, and inclusive growth for long-term development. This approach is very much in line with the World Economic Forum’s work on sustainable competitiveness that, since The Global Competitiveness Report 2011–2012, attempts to show a direct link between environmental and social sustainability and economic performance. Moving from the MDGs to the SDGs is also important from a financing point of view. The cost of achieving the SDGs promises to be significantly higher than the cost of achieving the MDGs. The Organisation for Economic Co-operation and Development (OECD) estimated that the “finance gap” (the amount of investment necessary to achieve the MDGs by 2015) was approximately US$120 billion a year,2 while a Table 1: Sustainable Development Goals and Global Competitiveness Index equivalents Goals proposed by the UN’s Open Working Group on SDGs Equivalent in the GCI Goal 3: Attain healthy lives for all 4th pillar (health subpillar) Goal 4: Provide quality education and life-long learning opportunities for all 4th pillar (primary education subpillar) and 5th pillar (higher education and training) Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 7th pillar (labor market efficiency) Goal 9: Promote sustainable infrastructure and industrialization and foster innovation 2nd pillar (infrastructure) and 12th pillar (innovation) Goal 16: Achieve peaceful and inclusive societies, access to justice for all, and effective and capable institutions 1st pillar (institutions) Source: United Nations Open Working Group on Sustainable Development Goals, July 2014. The SDGs now appear to be linked more closely to competitiveness than they used to be because most are prerequisites for job creation and long-term sustainable growth. This link is one of the reasons that policymakers find them attractive. In the proposed list of 17 SDGs to be achieved by 2030, five are directly captured by pillars and subpillars of the Global Competitiveness Index (GCI) (Table 1), while three—Goals 6 (Ensure available and sustainable use of water and sanitation for all), 10 (Reduce inequality within and among countries), and 15 (Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss)—are captured by the sustainable competitiveness framework. In addition, by dedicating nearly half of the goals directly to environmental and social sustainability, the United Nations’ Open Working Group acknowledges both our planet’s Another source of sustainability measures comes from companies’ reporting standards such as the triple bottom line accounting, as a growing body of firms and public institutions systematically reveal information about their environmental and social performance beyond the traditional financial statement. recent report by the United Nations Conference on Trade and Development (UNCTAD) estimated the gap of reaching the SDGs to be nearly US$2.5 trillion per year.3 Aid will not be enough to achieve these goals. However, by focusing on factors that incorporate some of the drivers of higher standards of living, the SDGs can create a virtuous cycle that could enable countries to generate significant wealth to lift their own people out of poverty, enhancing sustainable competitiveness. Notes 1 United Nations Open Working Group on Sustainable Development Goals 2014; further information about the SDGs is available at http://sustainabledevelopment.un.org/owg.html. 2 Stijns et al. 2012. 3 UNCTAD 2014. Despite this progress, a generalized lack of highquality, internationally comparable data that would allow countries to fully understand how they fare in these critical areas and benchmark themselves against peers persists. Without an improvement in the quality and availability of key data on social and environmental sustainability, countries will continue to face challenges © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 63 1.2: Assessing Progress toward Sustainable Competitiveness Figure 1: The structure of the sustainability-adjusted GCI GLOBAL COMPETITIVENESS INDEX (GCI) Social sustainability pillar Environmental sustainability pillar Social sustainability– adjusted GCI Environmental sustainability– adjusted GCI (GCI) × (social sustainability coefficient) (GCI) × (environmental sustainability coefficient) Sustainabilityadjusted GCI Note: Refer to appendix A for a detail explanation of the methodology. when assessing and monitoring key dimensions of their situation. The lack of data also renders far-reaching quantitative analysis of the topic impossible and makes it difficult to identify channels of influence and assign relative importance to the different aspects of sustainable competitiveness. Better data would enable countries to make better decisions in their attempt to identify and implement appropriate policies and measures to ensure that their development model leads to the desired outcomes. The lack of data is a challenge that is shared by all the frameworks described above as well as by our sustainable competitiveness assessment, detailed in the next section. Sustainable competitiveness: The analytical framework Based on our definition of sustainable competitiveness, we have developed a framework that aims to create a common ground to develop policies that balance economic prosperity with social inclusion and environmental stewardship. This conceptual model is represented in Figure 1, which presents a framework where the Forum’s index for measuring competitiveness, the Global Competitiveness Index (GCI), is adjusted by factors that encompass social and environmental sustainability. This framework highlights the central 64 The Global Competitiveness Report 2014–2015 position of competitiveness as the key driver of prosperity in society, recognizing that high levels of competitiveness are crucial to sustained prosperity. The GCI measures the level of competitiveness of an economy, as discussed in Chapter 1.1, which is defined as the set of institutions, policies, and factors that determine the level of productivity of an economy. The GCI is a comprehensive index that takes into account 12 pillars or drivers: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation. The variables that are analyzed in each of these 12 pillars are well known and benefit from more than 30 years of ongoing work on competitiveness at the World Economic Forum as well as a rich literature on growth and development. However, the framework presented in Figure 1 indicates that competitiveness on its own may not lead to sustainable levels of prosperity. Although the attainment of a certain level of economic prosperity is essential for achieving high standards of living, within this exercise, countries are assessed also for their ability to generate this long-lasting prosperity for their citizens in a sustainable way. In other words, competitiveness is © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness Figure 2: Summary of indicators for social sustainability Access to basic necessities Vulnerability to economic exclusion Social cohesion • Access to sanitation • Vulnerable employment • Income Gini index • Access to improved drinking water • Extent of informal economy • Social mobility • Access to healthcare • Social safety net protection • Youth unemployment a necessary but not sufficient condition for continued prosperity—hence the need for the additional social sustainability–adjusted and environmental sustainability– adjusted measures of competitiveness. As described in the first half of this chapter, defining the functional relationship between competitiveness and sustainability and identifying and measuring the pillars and variables that are driving environmental and social sustainability are complex tasks from both a conceptual and a measurement point of view. Sufficient evidence does not yet exist that would allow us to identify a solid functional relationship among them; we therefore opt for the simple approach of defining a linear relationship among the three dimensions. As a result, the final overall sustainability-adjusted Global Competitiveness Index is an average of the two sustainability-adjusted indexes: the social sustainability–adjusted GCI and the environmental sustainability–adjusted GCI.39 Social sustainability pillar For social sustainability, the Forum identifies three conceptual elements (Figure 2). The first category aims to assess a population’s access to basic necessities.40 It includes three indicators: Access to sanitation, Access to improved drinking water, and Access to healthcare services. This category is thus a measure of inclusion as well as a measure of the fulfillment of basic physical needs. Other indicators that we would have liked to incorporate but could not because of the lack of data include access to decent housing and food security. A population with poor access to water, food, shelter, healthcare, and sanitation cannot develop to its full capacity. The second category is linked to the concept of perceived economic security. Hence it aims to evaluate a population’s vulnerability to economic exclusion. Three indicators have been chosen for this evaluation: Vulnerable employment as a percentage of total employment, the Extent of the informal economy, and Social safety net protection. The vulnerable employment indicator measures the percentage of people who are self-employed in a small business or are in a small family business that may provide income levels insufficient to meet the living standards of the country of residence and can prove unstable in times of economic difficulties. The extent of the informal economy provides a sense of how well integrated the workforce is into official structures. A workforce that is less integrated leaves workers more vulnerable to concerns related to job loss, old age, maternity, disability, or illness. The social safety net is a complementary measure of protection: in times of financial and economic instability, the safety net helps households to maintain their access to basic necessities and to weather crises without falling into poverty traps. Providing protection also leads to a sense of financial security that enables individuals to undertake investments and entrepreneurial risk, which can in turn translate into the creation of new jobs and innovative ideas, thus benefitting the economy. A third category can be thought of as an assessment of social cohesion and includes the following indicators: the Income Gini index, Social mobility, and Youth unemployment. The income Gini index is a measure of income inequality, but keep in mind that— from a normative approach—excessive inequality may hide relative poverty that would prevent lower-income families from accessing the same opportunities as those with incomes at the high end of the range in the society. Linked to this idea, we include an indicator on social mobility. In the context of sustainable competitiveness, it is crucial that subsequent generations can improve their condition regardless of the socioeconomic status of their parents. From a purely economic perspective, the absence of such social mobility can be detrimental to human capital development because talented individuals, in a society that does not allow them to access education or to move ahead, will not be leveraged for economic advancement and they may leave their home country to pursue opportunities abroad. Additionally, low expectations for the future in a context of high unemployment and persistent inequality can spark political instability. On a broader conceptual level, social mobility is also a direct measure of the freedom to pursue human development. Finally, high youth unemployment can reduce social cohesion and incur significant economic and social costs. It depresses lifetime earnings for unemployed workers, taking a toll on their health and reducing the potential of the next generation to succeed. From an economic standpoint, high youth unemployment © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 65 1.2: Assessing Progress toward Sustainable Competitiveness Figure 3: Summary of indicators for environmental sustainability Environmental policy Use of renewable resources Degradation of the environment • Environmental regulations (stringency and enforcement) • Baseline water stress • Level of particulate matter concentration • Number of ratified international environmental treaties • Terrestrial biome protection • Wastewater treatment • Forest cover change • Fish stocks’ overexploitation reflects a failure to mobilize existing resources and build productive skills. Environmental sustainability pillar To develop the environmental sustainability pillar, the Forum has continued to work closely with experts at Yale’s Center for Environmental Law and Policy (YCELP), with the Center for International Earth Science Information Network (CIESIN) at Columbia University’s Earth Institute, and with the World Resource Institute (WRI) to define the best existing indicators in this area and to understand the strengths and limitations of these data. More generally, the measures captured here and presented in the environmental sustainability pillar are meant to complement the analysis carried out through the Environmental Performance Index (EPI), which provides a much more comprehensive indication of national performance on a variety of environmental indicators. In this pillar, indicators have been selected according to three categories (see Figure 3) aimed at covering the most relevant aspects of environmental sustainability. The first area measured in the environmental sustainability pillar is environmental policy, which is composed of a gauge of the stringency and enforcement of Environmental regulations along with the extent to which land areas are protected (biome protection), providing an assessment of a country’s commitment to protecting natural capital. We also include a measure of the number of key International environmental treaties, out of a total of 25, in which the country is a participant. This indicator demonstrates the country’s level of engagement with environmental issues and thus its willingness to become involved in international efforts toward addressing global environmental challenges. Together these variables capture to some extent the political will of countries to respond to environmental issues in a structured and consistent way and indicate their importance in the government agenda. The second area relates to the use of renewable resources. These indicators comprise measures of Baseline water stress in an economy, which models the relation between water supply availability and demand in each country; Wastewater treatment, which gauges 66 The Global Competitiveness Report 2014–2015 • CO2 intensity • Quality of the natural environment what percentage of (mainly urban) wastewater is treated before it is released into the ecosystem; Forest cover change, which takes into account reported information about the percentage of total land area that is deforested (or afforested) over time; and the overexploitation of Fish stocks. A diminishing regeneration capacity is one of the major environmental issues for which a simple solution is not easily identified. Although the data in this area are among the most difficult to collect and interpret, it is crucial for a country to manage these resources in order to ensure that they remain available for future generations. The third area takes into consideration the degradation of the environment, which can cause serious damage to human health while destroying the ecosystem. The specific indicators used to measure this concept are the Level of particulate matter concentration, CO2 intensity, and the Quality of the natural environment. Particulate matter concentration is a proxy for air pollution, which has proven negative effects on human health and is monitored by local authorities in many countries. The quality of the natural environment is a perception-based assessment of the local status of the environment that measures the observation of local business leaders on the ground. CO2 intensity is a measure of the efficiency of energy use in relation to the emissions it produces. It is important to note that, although CO2 intensity also provides a sense of national contributions to climate change, the decision was taken again this year not to include climate change as a specific factor in this pillar. This is because there is currently no agreement on how to attribute emission responsibilities to particular countries. For example, in a world of globalized markets, should emissions be allocated to the country producing the goods that created the emissions or to the consuming country? Also it is not yet clear what impact countries’ contributions to climate change would have on national competitiveness, particularly in the absence of an international agreement that would impose costs on large emitters. While the variables described in this and the previous sections capture a number of important aspects of social and environmental sustainability, additional variables are needed to obtain a more © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness complete measure of the concept. These indicators include measurements of social participation and respect for core human rights, as well as discrimination and the treatment of minority populations and additional environmental indicators. However, because of the lack of quality indicators in these areas, we are unable to include them for the time being. Updates to the environmental sustainability pillar As a result of collaboration with our partners and our research, we were able to improve the methodology this year by updating a number of indicators because data became available or because improved measurement methodologies were provided. The indicator Baseline water stress replaces Agricultural water intensity. The methodology for the calculation of the indicators Forest cover change, Particulate matter (2.5) concentration, and Fish stocks overexploited has been updated to bring these indicators in line with the results of the Environmental Performance Index. Finally, the new indicator Wastewater treatment was added to the framework. Calculation of the sustainability-adjusted GCI The two areas of sustainability—social and environmental—are treated as independent adjustments to each country’s performance in the GCI. The details behind the aggregation are described in Appendix A; Appendix B provides detailed notes and sources for each indicator. The aggregation leads to three outcomes: an environmental sustainability–adjusted GCI, a social sustainability–adjusted GCI, and an overall sustainability-adjusted GCI that combines the two effects. Lacking clear theoretical guidelines in assigning weights to the individual elements, each indicator has been given an equal weight within each pillar. As described in detail in Appendix A, each pillar is converted into an “adjustment coefficient” with a range of 0.8 to 1.2; this coefficient is then used to adjust the GCI score upward or downward. Consequently, the sustainability-adjusted GCI score ranges between a maximum of 20 percent lower or 20 percent higher than the underlying GCI score. The single indicators are aggregated using a simple average. Although this aggregation method is transparent and simple to replicate, its limitation is that it allows for compensation across the different sustainability dimensions. For example, a country may achieve a strong performance in terms of carbon intensity but a poor performance on deforestation. In this case, the two scores will be averaged out and the overall score may mask an uneven performance across different dimensions. This needs to be kept in mind when interpreting the results. Notwithstanding extensive research efforts, again this year we were not able to identify new metrics of appropriate quality to be included in the index. In the Sustainable Competitiveness exercise, country coverage is again driven by data availability: we are able to cover 113 economies this year, a subset of the 144 economies covered in the 2014–2015 GCI. Results of the sustainability-adjusted GCI analysis This section presents the results of the sustainabilityadjusted GCI. Table 1 shows how the GCI score is adjusted once sustainability indicators are taken into account. An upward arrow shows that sustainability results drive a better score than the GCI itself; a downward arrow points to a situation of vulnerability in terms of social and/or environmental sustainability that lowers the GCI score. A horizontal arrow indicates that GCI results do not change substantially when considering sustainability aspects. The results indicate that there is no clear trade-off between being competitive and being sustainable. As noted in previous editions, the findings show that, irrespective of their level of competitiveness, on the two elements of sustainability countries can attain results that are above or below their competitiveness score. However, we observe that countries in the top half of the competitiveness rankings tend to perform better on sustainability as well. This is particularly true for the social sustainability dimension, which is, not surprisingly, highly correlated with level of development. Developed economies tend to have more mature institutions that ensure that citizens have access to basic infrastructure, healthcare, and welfare. At the same time, countries that face challenges related to their competitiveness fare even more poorly in terms of social sustainability. In terms of environmental sustainability, the picture is more complex. Countries toward the lower end of the competitiveness scale tend to fare better than advanced economies in terms of emissions such as CO2, as well as in manufacturing-related pollution such as waste and by-products of industrial processes.41 However, these economies are currently facing problems that advanced economies have already experienced in their own earlier stages of development, such as biodiversity loss caused by deforestation, urbanization, and the expansion of agricultural land as well as air pollution (proxied here by particulate matter, or PM2.5, emissions) triggered by the use of older combustion technologies, especially in the transport sector. RESULTS FOR SELECTED ECONOMIES Because many of the aspects relating to sustainability require many years for significant change to occur, we observe only small movements in the performance of economies from one year to the next. Nonetheless, constant monitoring and benchmarking of selected indicators helps to identify possible areas of risk and the © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 67 1.2: Assessing Progress toward Sustainable Competitiveness Table 1: Adjustment to the GCI scores by sustainability indicators GCI 2014–2015 Country/Economy Switzerland United States Finland Germany Japan Netherlands United Kingdom Sweden Norway United Arab Emirates Denmark Canada New Zealand Belgium Luxembourg Malaysia Austria Australia France Saudi Arabia Ireland Korea, Rep. China Estonia Iceland Thailand Chile Indonesia Spain Portugal Czech Republic Azerbaijan Mauritius Lithuania Latvia Poland Turkey Panama Italy Kazakhstan Costa Rica Philippines Russian Federation Bulgaria South Africa Brazil Cyprus Romania Hungary Mexico Macedonia, FYR Peru Colombia Montenegro Vietnam Georgia Slovenia Social sustainability– adjusted GCI† Environmental sustainability– adjusted GCI‡ Sustainabilityadjusted GCI‡‡ Rank* Value Value Direction Value Direction Value Direction 1 3 4 5 6 8 9 10 11 12 13 15 17 18 19 20 21 22 23 24 25 26 28 29 30 31 33 34 35 36 37 38 39 41 42 43 45 48 49 50 51 52 53 54 56 57 58 59 60 61 63 65 66 67 68 69 70 5.7 5.54 5.5 5.49 5.47 5.45 5.41 5.41 5.35 5.33 5.29 5.24 5.2 5.18 5.17 5.16 5.16 5.08 5.08 5.06 4.98 4.96 4.89 4.71 4.71 4.66 4.6 4.57 4.55 4.54 4.53 4.53 4.52 4.51 4.5 4.48 4.46 4.43 4.42 4.42 4.42 4.4 4.37 4.37 4.35 4.34 4.31 4.3 4.28 4.27 4.26 4.24 4.23 4.23 4.23 4.22 4.22 6.75 5.97 6.38 6.36 6.29 6.39 5.95 6.05 6.43 6.1 6.14 5.95 5.94 5.89 5.96 5.59 6 5.8 5.56 5.2 5.38 5.25 4.96 5.13 5.41 4.63 4.68 4.31 4.65 4.61 4.97 4.33 4.7 4.66 4.64 4.48 4.49 4.42 4.36 4.69 4.51 4.26 4.46 4.31 4.11 4.29 4.48 4.13 4.35 4.2 4.13 3.99 3.8 4.08 4.11 3.88 4.52 ⇑ ⇗ ⇑ ⇑ ⇗ ⇑ ⇗ ⇗ ⇑ ⇗ ⇑ ⇗ ⇗ ⇗ ⇑ ⇗ ⇑ ⇗ ⇗ ⇒ ⇗ ⇗ ⇒ ⇗ ⇗ ⇒ ⇒ ⇘ ⇒ ⇒ ⇗ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇗ ⇒ ⇒ ⇒ ⇒ ⇘ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇘ ⇘ ⇒ ⇒ ⇘ ⇗ 6.84 5.24 5.98 6 5.83 5.88 5.75 5.95 6.14 5.16 5.69 5.51 6.04 5.48 5.73 4.86 5.85 5.54 5.52 4.74 5.14 4.85 4.28 4.71 5.39 4.38 4.78 4.26 4.73 4.56 4.9 4.09 4.25 4.85 4.89 4.62 4.05 4.53 4.44 3.91 4.63 4.25 4.19 4.48 4.18 4.54 4.07 4.21 4.54 3.98 3.66 4.02 4.17 4.38 3.67 4.1 4.78 ⇑ ⇘ ⇗ ⇗ ⇗ ⇗ ⇗ ⇗ ⇗ ⇒ ⇗ ⇗ ⇑ ⇗ ⇗ ⇘ ⇗ ⇗ ⇗ ⇘ ⇒ ⇒ ⇘ ⇒ ⇗ ⇘ ⇒ ⇘ ⇒ ⇒ ⇗ ⇘ ⇘ ⇗ ⇗ ⇒ ⇘ ⇒ ⇒ ⇘ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇘ ⇒ ⇗ ⇘ ⇘ ⇘ ⇒ ⇒ ⇘ ⇒ ⇗ 6.8 5.61 6.18 6.18 6.06 6.13 5.85 6 6.28 5.63 5.91 5.73 5.99 5.68 5.85 5.22 5.92 5.67 5.54 4.97 5.26 5.05 4.62 4.92 5.4 4.51 4.73 4.28 4.69 4.58 4.93 4.21 4.47 4.75 4.77 4.55 4.27 4.47 4.4 4.3 4.57 4.25 4.33 4.4 4.14 4.42 4.27 4.17 4.44 4.09 3.9 4 3.98 4.23 3.89 3.99 4.65 ⇑ ⇒ ⇗ ⇗ ⇗ ⇗ ⇗ ⇗ ⇑ ⇗ ⇗ ⇗ ⇑ ⇗ ⇗ ⇒ ⇑ ⇗ ⇗ ⇒ ⇗ ⇒ ⇘ ⇒ ⇑ ⇒ ⇒ ⇘ ⇒ ⇒ ⇗ ⇘ ⇒ ⇗ ⇗ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇘ ⇘ ⇘ ⇒ ⇘ ⇒ ⇗ (Cont’d.) 68 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness Table 1: Adjustment to the GCI scores by sustainability indicators (cont’d.) GCI 2014–2015 Social sustainability– adjusted GCI† Environmental sustainability– adjusted GCI‡ Sustainabilityadjusted GCI‡‡ Country/Economy Rank* Value Value Direction Value Direction Value Direction India Morocco Sri Lanka Slovak Republic Ukraine Croatia Guatemala Algeria Uruguay Greece Moldova Iran, Islamic rep. El Salvador Armenia Jamaica Tunisia Namibia Trinidad and Tobago Kenya Serbia Cambodia Zambia Albania Mongolia Nicaragua Honduras Dominican Republic Nepal Argentina Bolivia Gabon Kyrgyz Republic Bangladesh Ghana Senegal Lebanon Côte d'Ivoire Cameroon Guyana Ethiopia Egypt Paraguay Tanzania Swaziland Zimbabwe Libya Nigeria Pakistan Venezuela Mozambique Timor-Leste Haiti Sierra Leone Angola Yemen Guinea 71 72 73 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 94 95 96 97 98 99 100 101 102 104 105 106 108 109 111 112 113 115 116 117 118 119 120 121 123 124 126 127 129 131 133 136 137 138 140 142 144 4.21 4.21 4.19 4.15 4.14 4.13 4.1 4.08 4.04 4.04 4.03 4.03 4.01 4.01 3.98 3.96 3.96 3.95 3.93 3.9 3.89 3.86 3.84 3.83 3.82 3.82 3.82 3.81 3.79 3.77 3.74 3.73 3.72 3.71 3.7 3.68 3.67 3.66 3.65 3.6 3.6 3.59 3.57 3.55 3.54 3.48 3.44 3.42 3.32 3.24 3.17 3.14 3.1 3.04 2.96 2.79 3.98 3.88 4.1 4.23 4.19 4.06 4 3.89 4.19 3.85 3.98 3.73 3.78 3.79 3.58 3.74 3.48 4.03 3.53 3.68 3.58 3.48 3.63 3.6 3.55 3.52 3.38 3.74 3.75 3.44 3.27 3.66 3.65 3.4 3.43 3.49 3.37 3.37 3.56 3.24 3.33 3.31 3.38 3.27 3.24 2.93 2.97 3.16 3.15 2.7 2.89 2.51 2.85 2.59 2.56 2.61 ⇘ ⇘ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇘ ⇘ ⇘ ⇘ ⇘ ⇘ ⇒ ⇘ ⇘ ⇘ ⇘ ⇘ ⇘ ⇘ ⇘ ⇘ ⇒ ⇒ ⇘ ⇘ ⇒ ⇒ ⇘ ⇘ ⇘ ⇘ ⇘ ⇒ ⇘ ⇘ ⇘ ⇘ ⇘ ⇘ ⇓ ⇘ ⇘ ⇘ ⇓ ⇘ ⇓ ⇘ ⇘ ⇘ ⇘ 3.72 3.89 4.47 4.41 3.7 4.21 4.05 3.58 4.21 4.09 3.97 3.64 3.63 3.92 3.71 3.58 4.11 3.62 4.05 3.86 3.85 4.08 3.56 3.3 3.79 3.78 3.44 3.66 3.36 3.76 3.98 3.29 3.35 3.79 3.82 2.95 3.66 3.85 3.33 3.75 3.26 3.42 3.59 3.4 3.81 2.79 3.57 2.99 3.13 3.2 2.68 2.72 2.96 2.75 2.37 2.6 ⇘ ⇘ ⇗ ⇗ ⇘ ⇒ ⇒ ⇘ ⇒ ⇒ ⇒ ⇘ ⇘ ⇒ ⇘ ⇘ ⇒ ⇘ ⇒ ⇒ ⇒ ⇗ ⇘ ⇘ ⇒ ⇒ ⇘ ⇒ ⇘ ⇒ ⇗ ⇘ ⇘ ⇒ ⇒ ⇓ ⇒ ⇗ ⇘ ⇒ ⇘ ⇒ ⇒ ⇒ ⇗ ⇓ ⇒ ⇘ ⇘ ⇒ ⇓ ⇘ ⇒ ⇘ ⇓ ⇘ 3.85 3.88 4.28 4.32 3.95 4.14 4.03 3.73 4.2 3.97 3.98 3.68 3.71 3.85 3.65 3.66 3.79 3.83 3.79 3.77 3.71 3.78 3.59 3.45 3.67 3.65 3.41 3.7 3.55 3.6 3.63 3.47 3.5 3.6 3.62 3.22 3.52 3.61 3.45 3.5 3.3 3.37 3.48 3.34 3.53 2.86 3.27 3.08 3.14 2.95 2.78 2.62 2.91 2.67 2.46 2.61 ⇘ ⇘ ⇒ ⇒ ⇒ ⇒ ⇒ ⇘ ⇒ ⇒ ⇒ ⇘ ⇘ ⇒ ⇘ ⇘ ⇒ ⇒ ⇒ ⇒ ⇒ ⇒ ⇘ ⇘ ⇒ ⇒ ⇘ ⇒ ⇘ ⇒ ⇒ ⇘ ⇘ ⇒ ⇒ ⇘ ⇒ ⇒ ⇘ ⇒ ⇘ ⇘ ⇒ ⇘ ⇒ ⇓ ⇒ ⇘ ⇒ ⇘ ⇘ ⇓ ⇘ ⇘ ⇓ ⇘ * This is the GCI rank, as presented in Chapter 1.1. Only the 113 economies covered by this exercise are included in the table. † This is the score obtained by multiplying the GCI score by the social sustainability coefficient. ‡ This is the score obtained by multiplying the GCI score by the environmental sustainability coefficient. ‡‡ This is the average of social sustainability–adjusted GCI and environmental sustainability–adjusted GCI scores. Please refer to the technical appendix of this chapter for a description of how the coefficients are calculated. All the underlying indicators are available at http://www.weforum.org/content/pages/ sustainable-competitiveness. Key ⇑ GCI score changes by > +15% to +20% ⇗ GCI score changes by > +5% to +15% ⇒ GCI score remains stable between +5% and –5% ⇘ GCI score changes by < –5% to –15% ⇓ GCI score changes by < –15% to –20% © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 69 1.2: Assessing Progress toward Sustainable Competitiveness direction of progress on particular dimensions in each country. The following description of results (presented in the order of this year’s GCI ranking) provides an overall picture of the performance and highlights the main strengths and areas of challenge for selected economies. Switzerland confirms its strong sustainability performance. Its 1st place in the GCI rankings is reinforced when that Index is adjusted by social and environmental sustainability indicators. Youth unemployment is slightly increasing but remains at a fairly low level (8.4 percent), while social protection and mobility remain in line with past rankings, painting a positive picture of the Swiss social system. In terms of environmental sustainability, Switzerland, by achieving relatively positive results across all the measured dimensions, again demonstrates that tradeoffs between being sustainable and being competitive are not necessary. For example, the country’s strong results on environmental stewardship are achieved by enforcing effective environmental regulations, providing water treatment, and protecting its biodiversity. However, improvements could be made in some areas: air pollutant emissions are still above an optimal level, and the country has also seen a slight decrease in forest cover since the year 2000. Therefore, although Switzerland’s leadership manages its social and environmental capital rather well, stakeholders should not be complacent and should continue to monitor and improve the management of Swiss resources. The sustainability performance of the United States is mixed. When adjusted by the social sustainability dimension, US competitiveness improves slightly but less than that of other advanced economies because of its still-high levels of income inequality and youth unemployment (15 percent on a decreasing trend). In terms of environmental sustainability, the adjusted score reveals a somewhat lower performance, spanning air pollutant emission, depleting fish stocks, and a low commitment to joining international treaties. Recent reports of a greater policy focus on social and environmental problems—as exemplified by the adoption of the Clean Water Act and Clean Power Act—puts the country in the right direction for attaining more sustainable path. Nordic countries also continue to perform well overall and display specific areas of improvement. Finland, despite an inclusive social system and a track record of managing resources responsibly, has to address a rather high level of youth unemployment (approximately 19 percent), depleting fish stocks, diminishing forest cover, and limited protected areas. Germany is similar in many respects to the Nordic economies. On the social sustainability pillar, it is characterized by relatively low youth unemployment, widespread access to healthcare, and the presence of 70 The Global Competitiveness Report 2014–2015 a social safety net. However, emerging social difficulties, such as rising poverty in Germany, are reported by local studies, demonstrating that such difficulties have started to concern a significant portion of the population even in some of the most prosperous countries in the world.42 Like social sustainability, environmental sustainability is also assessed relatively positively. Stringent and wellenforced regulations and the existence of a large area of protected land indicate Germany’s particular attention to environmental issues. However, CO2 intensity is still relatively high and does not seem to be on a decreasing trend, fish stocks are overexploited, and particulate matter emission is beyond the optimal level. Japan delivers a relatively positive performance on the social sustainability component as a result of its low youth unemployment, its small informal economy, and its resilient social safety net. The country attains an overall positive performance on the environmental dimension as well, but with a number of areas still in need of improvement. Japan is tightening some of its environmental policies, yet it continues to be penalized by a high level of CO2 emissions and shows some signs of water stress. Sweden has the highest youth unemployment rate within the Nordic group, which results in its relatively weaker position within the Nordics on the social sustainability pillar. Nonetheless, Sweden remains a country with notable social protection and is one of the least unequal societies in the world. In terms of environmental sustainability, it adopts effective regulations and manages to control air pollution, but it is depleting its fish stocks and its forests have diminished over the last decade, two areas that may require policy attention. Norway attains the strongest social sustainability performance of all the countries in the sample this year, balancing low inequality and social protection with high mobility and low level of unemployment. On the environment side, similar to other economies in the region, Norway is making efforts to reduce its footprint on its natural capital but should manage fish stocks and forests in a more sustainable way because both are declining. In the United Arab Emirates, low youth unemployment and wide access to basic necessities positively influence social sustainability, which therefore does not compromise its general competitiveness level. In terms of environmental sustainability, severe water stress (which is partly a consequence of the country’s particular geographical positioning), pressure on fish stocks, and a high concentration of particulate matter and CO2 emissions impact its sustainability-adjusted competitiveness. In addition, the country is signatory to fewer international environmental treaties than most other economies. © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness China’s competitiveness continues to suffer from limitations resulting from low sustainability, especially as it pertains to the environment. In terms of social sustainability, China is slowly expanding access to drinking water and sanitation for the entire population, but inequality is still high and the welfare system is available only to some full-time urban workers. The country does not report data related to youth unemployment or vulnerable employment; these indicators cannot therefore be assessed. On the environmental sustainability side, China encounters some severe difficulties especially concerning water and air pollution. CO2 emissions have stopped increasing but they remain high, while the concentration of PM2.5 particles signals potential health concerns related to air pollution, especially in urban areas. The country’s management of water resources is relatively unsustainable: increasing water stress and the heavy pollution of streams results in severely damaged water resources, and only a low proportion of the water withdrawn is treated before it is returned to the ecosystem. The introduction of pollution taxes has not yet delivered a significant reduction of emissions, and, despite intentions to improve the situation, policy has yet to be implemented in an effective way. Indonesia’s competitiveness performance declines when adjusted by sustainability. In terms of social sustainability, the most critical area remains the significant share of the population in vulnerable employment, despite a slight improvement. Additionally, access to healthcare and sanitation remains low (40 percent of the population still does not have regular access to sanitation facilities). In terms of environmental sustainability, deforestation, fish stock depletion, and lack of water management continue to damage Indonesia’s highly diverse ecosystem. Environmental regulations and their enforcement remain insufficient, putting the invaluable natural capital of the country at risk. As it faces difficulties related to sustainability, especially in the environmental area, the Russian Federation attains an intermediate performance on both pillars again this year. In terms of social sustainability, the Russian Federation is still characterized by a relatively weak social safety net, high and increasing inequality, and limited social mobility. All these indicators have remained constant since the last assessment. In terms of environmental sustainability, regulations are still only weakly enforced and only 21 percent of the water withdrawn is treated. This low treatment rate could be a source of water stress in the future, although today Russia is endowed with one of the largest water reserves in the world. Emissions, especially CO2 intensity, are also higher than international standards, and fish stocks are depleting. The country should better manage its natural capital to ensure prosperity in the long run. South Africa’s main social problems remain its extremely high income inequality and youth unemployment, but inadequate access to healthcare and a poor social safety net are also contributing to a below par result on the social sustainability dimension. In addition, the country has not yet achieved universal access to sanitation. From an environmental point of view, South Africa is not protecting its rich biodiversity enough: it protects only a few areas, has little wastewater treatment, and is depleting its fish stocks. In addition, CO2 emissions are at the level of more industrialized economies. On a positive note, it seems that the country has made progress in forest stewardship. Brazil’s results on sustainable competitiveness remain substantially in line with its GCI score. In terms of social sustainability, inequality is still very high and, despite some positive developments, the country is still characterized by its population’s limited access to the healthcare system and the social safety net. However, these factors are partially compensated by its low youth unemployment and almost universal access to improved drinking water. From the environmental point of view, deforestation—despite efforts from the government such as the creation of the Real Time Deforestation Detection System—and a lack of water treatment remain significant issues. On a positive note, despite the negative effect of deforestation on greenhouse gas emissions, the overall carbon intensity level and particulate matter concentration are lower than in countries at a similar stage of development. In addition, an abundance of water puts little stress on water availability. But the adoption of tighter environmental regulations is needed to make sure that Brazil’s rich natural capital is managed responsibly and will remain an asset for future generations. Mexico’s competitiveness is also not entirely sustainable, especially from the environmental point of view, where there are several penalizing factors: the enforcement of its regulations is rather lax, and perhaps partially explains the country’s low performance on most of the dimensions: management of water resources, fish stocks, forestry, and carbon intensity. Only 37 percent of the wastewater is treated, adding pressure to the country’s water supply. Looking at Mexico’s social sustainability performance, its low youth unemployment and widespread access to water and sanitation offset its relatively high level of inequality, its widespread informal economy, and the limited coverage of its social safety net. Colombia’s competitiveness is reduced again this year once sustainability is taken into account. Although overall poverty has been declining for decades, the country’s social sustainability is still weak: access to healthcare services is limited and Colombia does not yet have an integrated social safety net, which exposes a large fraction of the population in vulnerable © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 71 1.2: Assessing Progress toward Sustainable Competitiveness employment to poverty risk. The existence of some social programs and the Family Welfare Institute has not so far been able to provide a structure that sufficiently supports disadvantaged individuals. The difficult economic situation of many households hinders social mobility, which reinforces persistent income inequality. In terms of environmental sustainability, Colombia should better defend its vast and biologically diverse natural capital endowment. The country has managed to institute several protected areas and can count on remarkable water reserves. However, its enforcement of environmental regulations remains weak and its treatment of the water used is limited. Deforestation also continues to represent a problematic issue. Forest is cleared mainly because of illegal logging, agriculture, mining operations, and the construction of infrastructure and housing. Balancing economic development and sustainability is particularly challenging for a country whose surface area is 50 percent covered by forests, yet preserving its natural heritage and managing its forests sustainably would bring benefits for Colombia’s competitiveness in the long run. Vietnam’s GCI performance is again weakened once sustainability measures are considered. In terms of social sustainability, the country’s main challenges are the insufficient coverage of its social safety nets in the context of large segments of its population living with vulnerable employment and low social mobility. In the environmental domain, difficulties are even more worrisome in some areas. Regulations are still assessed as lax and not well enforced, and the country’s level of commitment to international treaties remains low. Vietnam’s recent industrialization combined with its limited environmental norms is having a strong negative impact on the environment, including air and water pollution, where only a negligible fraction of the water used is treated. India’s competitiveness is also reduced when sustainability is taken into account. Social sustainability is hindered mainly by the population’s very uneven access to sanitation (still only 36 percent of Indians have access to these basic services) and high rates of vulnerable employment. To a lesser extent, its large informal economy and its lack of a universal social safety net show that India remains largely a poor country that is developing with large disparities within its society. India’s environmental performance is also below par because the country’s natural assets are depleting, despite some efforts in tightening environmental regulations since the adoption of the Air (Prevention and Control of Pollution) Act 1981.43 Air quality has slightly improved this year, but concentrations of particulate matter and carbon intensity are still very high: this is the case especially in the main urban centers, which are ranked among the 50 most polluted cities worldwide. In addition, the limited treatment of wastewater is increasing pressure 72 The Global Competitiveness Report 2014–2015 on India’s water tables, and limited protected areas are wearing down the assessment of the quality of the natural environment. Although on some issues the authorities are working to improve the situation, little action has been taken on specific but significant areas of environmental management. For example, in 2011, the Indian Supreme Court refused to ban asbestos, which is internationally recognized as toxic and banned in almost all developed countries. Also, enforcement of its regulations is often ineffective, especially when it comes to improving water quality—a lack that is still having an effect on child mortality.44 Kenya’s sustainable competitiveness is weakened primarily by the social dimension of sustainability, while environmental sustainability is not presently affecting the country’s overall sustainability-adjusted score. Kenya has made only slight progress in expanding access to improved drinking water, healthcare services, and sanitation facilities. Youth unemployment has increased and inequality remains relatively high. In terms of environmental sustainability, however, Kenya has been sensitive to the loss of biodiversity that accompanies its socioeconomic development and the government has adopted measures to protect the environment with a relatively strict regulatory framework, a strong commitment to international treaties, the creation of protected land areas, and the adoption of a national environment policy. Yet protection of forests and habitats remains an issue, with logging related to timber production and agriculture reducing the stock of forests faster than their natural regenerative capacity. Furthermore, water treatment practices are rare and fish stocks are depleting. Although Ghana is one of the most developed countries in the region, the social sustainability pillar assessment unveils persistent gaps in access to improved sanitation, and large portions of the population work in vulnerable jobs or in the informal economy and do not have access to social security. In terms of environmental sustainability, Ghana’s performance is somewhat more balanced but some concerns remain. Deforestation is continuing to deplete the country’s natural resources at a rapid rate: on average, almost 5 percent of the forest cover is lost each year. In addition to logging, commercial agriculture is clearing land by burning and cutting wooded areas, damaging the country’s forest cover. Water withdrawn is almost never treated, resulting in further polluting streams and aquifers. In addition, environmental regulations are not very stringent and tend to be somewhat poorly enforced. More efficient resource management would enable Ghana to preserve its natural wealth and improve the living conditions of its citizens. Senegal’s main areas of vulnerability are related to social sustainability. Although slightly improving this year, access to improved sanitation is limited (this is © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness available to only 52 percent of the population). Access to improved drinking water is more widely available, albeit still insufficient (74 percent). In addition, large portions of the population do not have access to healthcare services and are not protected by a social safety net. The social structure of Senegal remains somewhat less unequal than other African economies, however. Its income Gini index is 40.3—better than that of Ghana or Kenya. The environmental sustainability pillar, despite an overall performance that is in line with the GCI, also presents some areas of concern. Overexploited fish stocks, along with air and water pollution, are again the priorities that need to be addressed to ensure sustainability. Because of its level of development, it is hardly surprising that infrastructure for water treatment is also lacking. The creation of several protected land areas and commitments to most of the international environment treaties are important steps that the country has recently taken toward protecting the environment. By expanding the protection of its resources, Senegal could achieve a more sustainable development path. Africa’s most populated country, Nigeria, is encountering sustainability challenges especially in the social domain. Access to basic services remains very low for millions of Nigerians: only 28 percent of the population has access to basic hygiene, and less than 65 percent enjoys improved water. Similarly, safety nets and healthcare services are available only to a minority of people. These issues, typical of a developing economy, may jeopardize the future competitiveness of the country as they limit the country’s human capital. On the environmental side, Nigeria’s low stage of development results in a low level of carbon intensity, and the country is currently not putting excessive stress on its water resources. However, water treatment is virtually nonexistent and could be a source of concern for future water availability that could have significant social consequences, as over 35 percent of the population uses un-improved water. Environmental regulations are also limited and not appropriately enforced, which could result in further environmental damages affecting the population. CONCLUSIONS AND NEXT STEPS This chapter assesses sustainable competitiveness in 113 economies and fosters the understanding of conceptual links between productivity on the one hand and social and environmental sustainability on the other. By combining social and environmental indicators with the GCI’s results, the Forum has been able to continue its assessment of sustainable competitiveness at the national level and to contribute to creating a policy space for both dimensions of sustainability in relation to competitiveness. This analysis continues to support the important finding that there is no necessary tradeoff between being competitive and being sustainable. In fact, competitiveness and sustainability can work in complementary ways and holistic policies can have a positive effect on both in the long term. As environmental and social tipping points become more palpable, economies that have been investing and planning for the long run, balancing economic progress with social inclusion and good and effective environmental stewardship, will be in a better position to maintain high prosperity for their citizens, even in presence of external shocks. Given the complexity of the issue at hand and important gaps in data, it must be remembered that this is a work in progress and that conclusions regarding countries’ performance in terms of sustainable competitiveness can only be indicative. We find that progress varies across different areas of sustainability. Five consecutive years of low growth in advanced economies and the more recent slowdown in emerging markets create a climate of lack of opportunities, which is reflected in growing concerns about the social dimension. This makes the inclusiveness of the growth process an increasingly topical and timely issue. Public interest in environmental issues—with the exception of climate change—is higher than it was decades ago, although it seems less strong than it had been before the crisis. At the same time, firms are now more actively transitioning toward more sustainable practices. Overall, it is increasingly urgent that more tangible results on enhancing environmental sustainability are achieved. The World Economic Forum will continue to serve the international community by providing a neutral multistakeholder platform to advance the understanding and analysis of this important concept. The Forum will also continue to work at the frontier of sustainability measurement to fully assess progress in national policies. Recognizing that multi-stakeholder collaboration is vital for creating the confidence necessary to undertake the investments to build more sustainable economies, we hope that this assessment will provide the basis for public-private dialogue on how to make economies environmentally and socially more sustainable for the benefit of present and future generations. NOTES 1 Beitz 2009. 2 Brian Baxter wrote an introduction to ecologism in a book by that name in 2000. See Baxter 2000. 3 For example, asbestos has been banned in many countries following the 1992 Stockholm Convention on persistent organic pollutants. The European Union banned leaded gasoline in 2000, and restricted the use of certain hazardous substances in electrical and electronic equipment in 2003. 4 See, for example, Singh and Dhumale 2000; for the change in labor shares, see Neiman and Karabarbounis 2013. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 73 1.2: Assessing Progress toward Sustainable Competitiveness 5 Capital in the Twenty-First Century. The central idea of the analysis by Piketty is that only when the growth rate is higher than the return to capital will the benefits of growth lead to widespread prosperity. When the relationship flips, inequality would surge. See Piketty 2014. 6 In addition, the slow growth experienced recently in advanced economies has revived concerns about “secular stagnation,” with Lawrence Summers envisaging that even before the financial crisis a trend of low aggregate demand had begun in the United States. 7 For examples, see Acemoclu and Robinson 2006 and Avent 2014. 8 This definition is from the World Commission on Environment and Development’s (the Brundtland Commission’s) report Our Common Future. This report is commonly known as “the Brundtland Report.” 9 For an example of a company’s awareness of sustainability and reputational risk, see http://www.scjohnson.com/en/commitment/ focus-on/greengauge.aspx. 10 As reported by nongovernmental organizations, such as the Carbon Disclosure Project; see https://www.cdp.net/en-US/ Pages/HomePage.aspx. 11 For information about the Principles for Responsible Investment, see http://www.unpri.org/. 12 Bughin et al. 2010. 37 See http://www.footprintnetwork.org/en/index.php/GFN/page/ methodology/ for information about information about the Global Footprint Network. 38 Information about the Global Adaptation Index is available at http://index.gain.org/. 39 The lack of some additional indicators, especially in the social sustainability dimension, constrains the model and does not allow for a comprehensive measurement of sustainability. For example, Germany performs well on the social sustainability pillar despite an existing trend of decreasing wages in Germany where, according to the Federal Employment Agency, over the past four years the number of individuals who require state support to get by despite full- or part-time jobs has increased steadily. Similarly, in Italy, the Italian National Institute of Statistics (Istat) disseminates the relative and absolute poverty estimations for households in the country, based on 2012 Households Budget Survey data. In 2012 the relative poverty incidence was equal to 12.7 percent, whereas the absolute poverty rate was 6.8 percent. These dimensions, although measured at country level in advanced economies, are not measured worldwide. Additionally, because poverty thresholds change from country to country, it is difficult to establish a crosscountry comparison. 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AGGREGATION In the first step, the individual indicators in each area are normalized on a 1-to-7 scale and aggregated by averaging the normalized scores, such that a social sustainability score and an environmental sustainability score are calculated for each country. In the second step, these scores are normalized again on a 0.8-to-1.2 scale,a which is based on the distribution of each of the two sustainability components. The purpose of this methodology is to reward the countries attaining a relatively good performance on the two sustainability components while penalizing those that register a poor performance. Applying this methodology corresponds to transforming actual averages into coefficients ranging from 0.8 to 1.2. For example, the worst performer on the social sustainability pillar obtains a score of 0.8 and the best performer a 1.2. The same calculation is conducted for the environmental sustainability pillar. Normalizing on a 0.8-to-1.2 scale and using the actual sample maximum and minimum are corroborated by the statistical distribution of the data, so as to ensure that the final data are not skewed. In the absence of empirical evidence, the selection of the impact limits (0.8–1.2) relies on the best judgment of the authors and is based on the assumption that countries can experience either an opportunity if they manage their resources well or a weakness if they do not. The selection of this methodology is not intended to be scientific, but it represents a normative approach aimed at stimulating discussions on policy priorities and possibly stimulating scientific research in this field. In the third step, the GCI score of each country is multiplied twice: once by its social sustainability coefficient and once by its environmental sustainability coefficient, to obtain two separate sustainabilityadjusted GCI scores. Finally, an average of the two scores provides an overall measure of the sustainability adjustment. 78 The Global Competitiveness Report 2014–2015 STRUCTURE OF THE SUSTAINABILITY PILLARS The computation of the sustainability components is based on an arithmetic mean aggregation of scores from the indicator level.b Variables that are not derived from the Executive Opinion Survey (the Survey) are identified by an asterisk (*) in the following pages. To make the aggregation possible, these variables are transformed into a 1-to-7 scale in order to align them with the Survey results. We apply a min-max transformation, which preserves the order of, and the relative distance between, country scores.c Indicators marked with a “(log)” subscript are transformed applying the logarithm (base 10) to the raw score. Social sustainability pillar S01 Income Gini index* S02 Youth unemployment* S03 Access to sanitation* d(log) S04 Access to improved drinking water* d S05 Access to healthcare servicesd S06 Social safety net protection S07 Extent of informal economy S08 Social mobility S09 Vulnerable employment* Environmental sustainability pillar S10 Stringency of environmental regulations e S11 Enforcement of environmental regulations e S12 Terrestrial biome protection* S13 No. of ratified international environmental treaties* S14 Baseline water stress* S15 Wastewater treatment* S16 CO2 intensity*(log) S17 Fish stocks overexploited*(log) S18 Forest cover change* S19 Particulate matter (2.5) concentration*(log) S20 Quality of the natural environment NOTES a Formally we have 0.4 x ( country score – sample minimum sample maximum – sample minimum ) + 0.8 The sample minimum and sample maximum are, respectively, the lowest and highest country scores in the sample of economies covered by the sustainability-adjusted GCI in each pillar. © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness b Formally, for a category i composed of K indicators, we have: K categoryi ⌺ indicatork ϭ k=1 K c Formally, we have: 6 x ( country score – sample minimum sample maximum – sample minimum ) + 1 The sample minimum and sample maximum are, respectively, the lowest and highest country scores in the sample of economies covered by the sustainability-adjusted GCI. In some instances, adjustments were made to account for extreme outliers. For those indicators for which a higher value indicates a worse outcome (e.g., CO2 emission, income Gini index), the transformation formula takes the following form, thus ensuring that 1 and 7 still corresponds to the worst and best possible outcomes, best possible outcomes, respectively: –6 x ( country score – sample minimum sample maximum – sample minimum ) + 7 d Variables S03, S04, and S05 are combined to form one single variable. e Variables S10 and S11 are combined to form one single variable. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 79 1.2: Assessing Progress toward Sustainable Competitiveness Appendix B: Technical notes and sources for sustainability indicators The data in this Report represent the best available estimates from various national authorities, international agencies, and private sources at the time the Report was prepared. It is possible that some data will have been revised or updated by the sources after publication. Throughout the Report, n/a denotes that the value is not available or that the available data are unreasonably outdated or do not come from a reliable source. For each indicator, the title appears on the first line, preceded by its number to allow for quick reference. The numbering is the same as the one used in Appendix A. Below is a description of each indicator or, in the case of Executive Opinion Survey data, the full question and associated answers. If necessary, additional information is provided underneath. S01 Income Gini index Measure of income inequality [0 = perfect equality; 100 = perfect inequality] 2010 or most recent This indicator measures the extent to which the distribution of income among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. Sources: World Bank, World Development Indicators Online (retrieved June 20, 2014); African Economic Outlook online statistics (retrieved March 21, 2014); Organisation for Economic Co-operation and Development (OECD), Society at a Glance 2014; US Central Intelligence Agency (CIA), The World Factbook (retrieved March 21, 2014); Eurostat, online statistics (retrieved March 21, 2014); national sources S02 Youth unemployment Percent of total unemployed youth to total labor force aged 15–24 2012 or most recent Youth unemployment refers to the share of the labor force aged 15–24 without work but available for and seeking employment. Sources: International Labor Organization, ILOstat database available at http://www.ilo.org/ilostat/faces/home/statisticaldata/ bulk-download?_adf.ctrl-state=t48e83vhx_4&clean=true&_ afrLoop=76512585054249 (retrieved March 27, 2014); World Bank, World Development Indicators Online (retrieved June 20, 2014); national sources 80 The Global Competitiveness Report 2014–2015 S03 Access to sanitation Percent of total population using improved sanitation facilities 2012 or most recent Share of the population with at least adequate access to excreta disposal facilities that can effectively prevent human, animal, and insect contact with excreta. Improved facilities range from simple but protected pit latrines to flush toilets with a sewerage connection. To be effective, facilities must be correctly constructed and properly maintained. Source: World Health Organization, World Health Statistics 2014 available at http://apps.who.int/gho/data/node.main.606?lang=en (retrieved June 27, 2014) S04 Access to improved drinking water Percentage of population with access to improved drinking water 2012 or most recent Share of the population with reasonable access to an adequate amount of water from an improved source, such as a household connection, public standpipe, borehole, protected well or spring, or rainwater collection. Unimproved sources include vendors, tanker trucks, and unprotected wells and springs. Reasonable access is defined as the availability of at least 20 liters per person per day from a source within 1 kilometer of the dwelling. Source: World Health Organization, World Health Statistics 2014, available at http://apps.who.int/gho/data/node.main.606?lang=en (retrieved June 27, 2014) S05 Access to healthcare services How accessible is healthcare in your country? [1 = limited— only the privileged have access; 7 = universal—all citizens have access to healthcare] 2013–2014 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. S06 Social safety net protection In your country, to what extent does a formal social safety net provide protection for the general population from economic insecurity in the event of job loss or disability? [1 = not at all; 7 = provides full protection] 2013–2014 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. S07 Extent of informal economy In your country, how much economic activity would you estimate to be undeclared or unregistered? [1 = most economic activity is undeclared or unregistered; 7 = most economic activity is declared or registered] 2013–2014 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness S08 Social mobility S13 No. of ratified international environmental treaties In your country, to what extent do individuals have the opportunity to improve their economic situation through their personal efforts regardless of the socioeconomic status of their parents? [1 = little opportunity exists to improve one’s economic situation; 7 = significant opportunity exists to improve one’s economic situation] 2013–2014 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. S09 Vulnerable employment Proportion of own-account and contributing family workers in total employment 2012 or most recent Vulnerable employment refers to unpaid family workers and ownaccount workers as a percentage of total employment—that is, the share of own-account and contributing family workers in total employment. A contributing family worker is a person who is selfemployed in a market-oriented establishment operated by a related person living in the same household, and who cannot be regarded as a partner because the degree of his or her commitment to the operation of the establishment, in terms of the working time or other factors to be determined by national circumstances, is not at a level comparable with that of the head of the establishment. Source: World Bank, World Development Indicators Online (retrieved June 20, 2014) S10 Stringency of environmental regulations How would you assess the stringency of your country’s environmental regulations? [1 = very lax, among the worst in the world; 7 = among the world’s most stringent] 2013–2014 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. S11 Enforcement of environmental regulations In your country, how would you assess the enforcement of environmental regulations? [1 = very lax, among the worst in the world; 7 = among the world’s most rigorous] 2013–2014 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. S12 Terrestrial biome protection Weighted average of the percentage of land area protected in each biome (weights are derived from the proportion of the national territory falling in each biome) 2012 or most recent This indicator is calculated by CIESIN (Columbia University’s Center for International Earth Science Information Network) by overlaying the protected area mask on terrestrial biome data from Olson et al. (2001) for each country. A biome is defined as a major regional or global biotic community, such as a grassland or desert, characterized chiefly by the dominant forms of plant life and the prevailing climate. Scores are capped at 17 percent per biome such that higher levels of protection of some biomes cannot be used to offset lower levels of protection of other biomes, hence the maximum level of protection a country can achieve is 17 percent. CIESIN uses time series of the World Database on Protected Areas (WDPA) developed by the United Nations Environment Programme (UNEP) World Conservation Monitoring Centre (WCMC) in 2011, which provides a spatial time series of protected area coverage from 1990 to 2012. The WCMC considers all nationally designated protected areas whose location and extent is known. Boundaries were defined by polygons where available, and where they were not available protected area centroids were buffered to create a circle in accordance with the protected area size. The WCMC removed all overlaps between different protected areas by dissolving the boundaries to create a protected areas mask. Total number of ratified environmental treaties 2012 or most recent This indicator measures the total number of international treaties from a set of 25 for which a state is a participant. A state is acknowledged as a “participant” whenever its status for each treaty appears as “Ratified,” “Accession,” or “In Force.” The treaties included are: the International Convention for the Regulation of Whaling, 1948 Washington; the International Convention for the Prevention of Pollution of the Sea by Oil, 1954, as amended in 1962 and 1969, 1954 London; the Convention on Wetlands of International Importance especially as Waterfowl Habitat, 1971 Ramsar; the Convention Concerning the Protection of the World Cultural and Natural Heritage, 1972 Paris; the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, 1972 London, Mexico City, Moscow, Washington; the Convention on International Trade in Endangered Species of Wild Fauna and Flora, 1973 Washington; the International Convention for the Prevention of Pollution from Ships (MARPOL) as modified by the Protocol of 1978, 1978 London; the Convention on the Conservation of Migratory Species of Wild Animals, 1979 Bonn; the United Nations Convention on the Law of the Sea, 1982 Montego Bay; the Convention on the Protection of the Ozone Layer, 1985 Vienna; the Protocol on Substances that Deplete the Ozone Layer, 1987 Montreal; the Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, 1989 Basel; the International Convention on Oil Pollution Preparedness, Response and Co-operation, 1990 London; the United Nations Framework Convention on Climate Change, 1992 New York; the Convention on Biological Diversity, 1992 Rio de Janeiro; the International Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, particularly Africa, 1994 Paris; the Agreement relating to the Implementation of Part XI of the United Nations Convention on the Law of the Sea of 10 December 1982, 1994 New York; the Agreement relating to the Provisions of the United Nations Convention on the Law of the Sea relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks, 1995 New York; the Kyoto Protocol to the United Nations Framework Convention on the Climate Change, Kyoto 1997; the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, 1998 Rotterdam; the Cartagena Protocol of Biosafety to the Convention on Biological Diversity, 2000 Montreal; the Protocol on Preparedness, Response and Co-operation to Pollution Incidents by Hazardous and Noxious Substances, 2000 London; the Stockholm Convention on Persistent Organic Pollutants, 2001 Stockholm; the International Treaty on Plant Genetic Resources for Food and Agriculture, 2001 Rome; the International Tropical Timber Agreement, 2006 Geneva. Source: The International Union for Conservation of Nature (IUCN), Environmental Law Centre ELIS Treaty Database Source: Yale Center for Environmental Law & Policy (YCELP) and the Center for International Earth Science Information Network (CIESIN) at Columbia University, Environmental Performance Index 2014, available at http://epi.yale.edu/epi/issue-rankings © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 81 1.2: Assessing Progress toward Sustainable Competitiveness S14 Baseline water stress S17 Fish stocks overexploited Normalized (0–5) ratio of total annual water withdrawals to total available annual renewable supply 2010 or most recent Fraction of the country’s exclusive economic zone with overexploited and collapsed stocks 2011 or most recent This indicator measures total annual water withdrawals (municipal, industrial, and agricultural) expressed as a percentage of the total annual available flow. It is calculated as the ratio of water withdrawal to the mean available blue water (1950–2008). In turn, water withdrawals and available blue water are estimated separately. Water withdrawal is calculated in two steps: (1) national-level withdrawals are estimated using multiple regression time series models of withdrawals as a function of GDP, population, irrigated area, and electrical power production. Regressions are performed separately for each sector (domestic, industrial, and agricultural) and used to predict withdrawals for the current year. (2) These withdrawal estimates are then spatially disaggregated by sector based on regressions with spatial datasets. Available blue water is the sum of water flowing into the catchment from upstream catchments plus any imports of water to the catchment; upstream consumptive use plus runoff (precipitation minus evaporation and change in soil moisture storage) are then subtracted. For further details about the calculation of each component, please refer to the working paper “Aqueduct Metadata Document, Aqueduct Global Maps 2.0,” available at http://www.wri.org/sites/default/files/pdf/aqueduct_ metadata_global.pdf. The Sea Around Us (SAU) project‘s Stock Status Plots (SSPs) are created in four steps (Kleisner and Pauly, 2011). In the first step, SAU defines a stock as a taxon (at the species, genus, or family level of taxonomic assignment) that occurs in the catch records for at least 5 consecutive years, over a minimum span of 10 years, and that has a total catch in an area of at least 1,000 tonnes over the time span. In the second step, SAU assesses the status of the stock for every year relative to the peak catch. SAU defines five states of stock status for a catch time series. This definition is assigned to every taxon that meets the definition of a stock for a particular spatial area (e.g., exclusive economic zones, or EEZs). These states are: (1) Developing—before the year of peak catch and less than 50 percent of the peak catch; (2) Exploited—before or after the year of peak catch and more than 50 percent of the peak catch; (3) Overexploited—after the year of peak catch and less than 50 percent but more than 10 percent of the peak catch; (4) Collapsed—after the year of peak catch and less than 10 percent of the peak catch; and (5) Rebuilding—after the year of peak catch and after the stock has collapsed, when catch has recovered to between 10 percent and 50 percent of the peak. In the third step, SAU graphs the number of stocks by status in a given year by tallying the number of stocks in a particular state and presenting these as percentages. In the final step, the cumulative catch of stock by status in a given year is summed over all stocks and presented as a percentage in the catch by stock status graph. The combination of these two figures represents the complete Stock Status Plot. The numbers for this indicator are taken from the overexploited and collapsed numbers of stocks over total numbers of stocks per EEZ. A logarithm transformation is applied to these statistics in order to spread the data distribution. Source: World Resources Institute, Aqueduct Country and River Basin Rankings, December 2013 edition, available at http://www. wri.org/resources/data-sets/aqueduct-country-and-river-basinrankings S15 Wastewater treatment Percentage of wastewater that receives treatment weighted by connection to wastewater treatment rate 2012 or most recent This indicator measures the percentage of wastewater that is treated before it is released back into ecosystems. The percentage of wastewater treated represents a measure of largely urban waste collection and treatment, since few rural areas are connected to sewage systems. The variable is calculated by weighting the average of the wastewater treatment rate values for the years 2000 through 2012 by the sewerage connection percentages. The original values are collated using a hierarchy of sources, selected in the following order: (1) country-level statistical data and reports; (2) values derived from the Organisation of Economic Co-operation and Development (OECD)’s variable “Connected to wastewater treatment plan without treatment” by taking the inverse of this percentage; (3) the United Nations Statistics Division’s “Population connected to wastewater treatment” variable; (4) secondary treatment levels from the Pinsent Masons Water Yearbook, 14th edition, available at http:// wateryearbook.pinsentmasons.com/; and (5) FAO-AQUASTAT values (Total volume of wastewater treated/Total volume of wastewater collected) × 100 for a given year in a given country. Source: Yale Center for Environmental Law & Policy (YCELP) and the Center for International Earth Science Information Network (CIESIN) at Columbia University, Environmental Performance Index 2014, available at http://epi.yale.edu/epi/issue-rankings S16 CO2 intensity CO2 intensity (kg of CO2 per kg of oil equivalent energy use) 2010 or most recent Source: Yale Center for Environmental Law & Policy (YCELP) and the Center for International Earth Science Information Network (CIESIN) at Columbia University, Environmental Performance Index 2014, available at http://epi.yale.edu/epi/issue-rankings S18 Forest cover change Forest cover change, as compared to 2000 levels 2012 or most recent This indicator measures the percent change in forest cover between 2000 and 2012 in areas with greater than 50 percent tree cover. It factors in areas of deforestation (forest loss), reforestation (forest restoration or replanting), and afforestation (conversion of bare or cultivated land into forest). Hansen et al. (2013) used 650,000 Landsat 7 satellite images with a resolution of 30 meters to quantify the area of forest loss. As defined in Hansen et al. (2013), trees were defined as all vegetation taller than 5 meters. Forest loss was defined as a stand replacement disturbance or the complete removal of tree cover canopy at the Landsat pixel scale. Results were disaggregated by reference percent tree cover stratum (e.g., greater than 50 percent crown cover to approximately 0 percent crown cover) and by year. Source: Yale Center for Environmental Law & Policy (YCELP) and the Center for International Earth Science Information Network (CIESIN) at Columbia University, Environmental Performance Index 2014, available at http://epi.yale.edu/epi/issue-rankings Carbon dioxide (CO2) emissions are those stemming from the burning of fossil fuels and the manufacture of cement. They include CO2 produced during consumption of solid, liquid, and gas fuels and gas flaring. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport. A logarithm transformation is applied to the ratio of these statistics in order to spread the data distribution. Source: World Bank, World Development Indicators database, http://data.worldbank.org (retrieved June 20, 2014) 82 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 1.2: Assessing Progress toward Sustainable Competitiveness S19 Particulate matter (2.5) concentration Population-weighted exposure to PM2.5 (micro-grams per cubic meter) 2012 or most recent PM2.5, also known as fine particulate matter, refers to particles or droplets in the air that are 2.5 micrometers or less in width. Although invisible to the naked human eye as individual particles, PM2.5 can reduce visibility and cause the air to appear hazy when its levels are elevated. This indicator is based on a model that was parameterized by data on aerosol optical depth (AOD) from NASA’s MODIS, SeaWiFS, MISR satellite instruments, and the GEOS-Chem chemical transport model. The parameterized model covered all areas south of 70 degree north latitude and north of 70 degree south latitude. Van Donkelaar et al. estimated annual global surface PM2.5 concentrations at a 10 x 10 km spatial resolution, and then created three-year moving averages from 2000 to 2012. Population-weighted average exposure values were calculated using population data from the Global Rural Urban Mapping Project (2011) database. For additional details, see Aaron van Donkelaar, January 2015 (embargoed), and http:// epi.yale.edu/files/2014_epi_metadata.pdf. Source: Yale Center for Environmental Law & Policy (YCELP) and the Center for International Earth Science Information Network (CIESIN) at Columbia University, Environmental Performance Index 2014, available at http://epi.yale.edu/epi/issue-rankings S20 Quality of the natural environment In your country, how would you assess the quality of the natural environment? [1 = extremely poor, among the worst in the world; 7 = among the world’s most pristine] 2013–2014 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 83 2014 World Economic Forum CHAPTER 1.3 The Executive Opinion Survey: The Voice of the Business Community CIARA BROWNE ATTILIO DI BATTISTA THIERRY GEIGER TANIA GUTKNECHT World Economic Forum Since 1979 and its first report on the competitiveness of European industry, the World Economic Forum’s annual survey has been a key ingredient of its research and benchmarking activities. The Executive Opinion Survey (the Survey) is the longest-running and most extensive survey of its kind. Box 1 retraces the history of this instrument, which is closely related to the history of the competitiveness report series. The Survey captures the opinions of business leaders around the world on a broad range of topics for which data sources are scarce or, frequently, nonexistent on a global scale. It helps to capture aspects of a particular domain—such as the extent of the skills gap, the level of corruption, or the intensity of market competition—that are more qualitative than hard data can provide. Thus it is an indispensable complement to the sources of data made available by international organizations and national statistical offices. The indicators derived from the Survey are used in the calculation of the Global Competitiveness Index (GCI) and other Forum indexes, including the Networked Readiness Index, the Enabling Trade Index, the Travel & Tourism Competitiveness Index, and the Gender Gap Index, as well as in a number of regional studies. A truly unique source of data, the Survey has also long been used by a number of international and nongovernmental organizations, think tanks, and academia for empirical and policy work. For example, Transparency International has been using the Survey data for the elaboration of their Corruption Perceptions Index and the Bribe Payers Index. Institutions such as the Organisation for Economic Co-operation and Development (OECD), the World Bank, and the International Monetary Fund (IMF) also refer to the Forum’s Survey data in their publications, as do a number of academic publications. Finally, an increasing number of countries publish national competitiveness reports that draw on or refer to the Survey data. THE SURVEY IN NUMBERS The 2014 edition of the Survey captured the opinions of over 14,000 business leaders in 148 economies between February and June 2014; because of data issues, out of the 148 economies surveyed, 144 are included in the GCI this year (please see the data treatment section below for further details). Figure 1 presents some key descriptive statistics. The Survey is available in 42 languages, of which 20 are available online (see Table 1). This year almost 40 percent of respondents took the Survey online. In 22 economies the Survey was administered entirely online, while in a further 16 over 90 percent of respondents completed the Survey online (see Table 2 for statistics about the administration approach). Geographic coverage Following a year of non-inclusion, Tajikistan is reinstated in the 2014 edition; however, no new economy is added © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 85 1.3: The Executive Opinion Survey Figure 1: Descriptive statistics of the Executive Opinion Survey 2014 NUMBER OF ECONOMIES NUMBER OF SURVEYS 14,091 surveys collected 148 economies surveyed Collected Maximum 369: United States 362: China 340: Mexico 13,264 144 surveys retained* economies with enough valid responses* † SAMPLE SIZE (number of valid surveys by economy) Share of world GDP Administration method ■ Survey coverage* (98.7%) ■ Rest of the world (1.3%) ■ Online (39.1%) ■ Other method (60.9%) 3rd quartile 100 Average 92.8 Median 87 1st quartile 67 Minimum 32: Swaziland, Israel Source: International Monetary Fund, World Economic Outlook database, April 2014 edition. Note: Not all charts are drawn to scale. * Following data treatment. See text for details. † Based on purchasing power parity estimates. Table 1: The 42 languages in which the 2014 Survey was available Albanian Croatian* Hungarian* Mongolian Slovenian Arabic* Czech* Italian Montenegrin Spanish* Armenian Danish Japanese Persian* Thai Azeri Estonian* Khmer Polish* Turkish* Bosnian English* Korean Portuguese* Urdu Brazilian Portuguese French* Laotian Romanian Vietnamese Bulgarian German* Latvian* Russian* Burmese Greek* Lithuanian* Serbian Chinese* Hebrew* Macedonian Slovak* * Language also available in the online Survey tool (20 languages). 86 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 3 largest samples 1.3: The Executive Opinion Survey Figure 2: Country/economy coverage of the Executive Opinion Survey n Previous coverage n 2014 additions this year. The Survey was not completed to minimum requirements in Benin, Brunei Darussalam, or Liberia, and therefore those countries could not be included this year. Furthermore, Bosnia and Herzegovina and Ecuador are not included in this edition of the Report because of data quality concerns (see “Trend analysis and exceptions” below for more detail). The Forum’s Global Competitiveness and Benchmarking Network continues its efforts to increase country coverage year on year. SURVEY STRUCTURE, ADMINISTRATION, AND METHODOLOGY The Survey is divided into 14 sections: I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. About Your Company Overall Perceptions of Your Economy Infrastructure Innovation and Technology Infrastructure Financial Environment Foreign Trade and Investment Domestic Competition Company Operations and Strategy Government and Public Institutions Education and Human Capital Corruption, Ethics and Social Responsibility Travel & Tourism Environment Health Most questions in the Survey ask respondents to evaluate, on a scale of 1 to 7, one particular aspect of their operating environment. At one end of the scale, 1 represents the worst possible situation; at the other end of the scale, 7 represents the best (see Box 2 for an example). The administration of the Survey could not be carried out without the network of over 160 Partner Institutes worldwide. Partner Institutes are recognized research or academic institutes, business organizations, national competitiveness councils, or other established professional entities and, in some cases, survey consultancies, that have the network and capacity to reach out to the business community, are reputable organizations, and have a firm commitment to improving the competitiveness conditions of their economies. The full list of Partner Institutes can be found at the beginning of this Report.1 In administering the Survey, Partner Institutes are asked to follow detailed sampling guidelines to ensure that the sample of respondents is the most representative possible and is comparable across the globe and in a specific timeframe. The sampling guidelines have evolved over time and are based on best practices in the field of survey administration and on discussions with survey experts. The Survey sampling guidelines specify that the Partner Institute build a “sample frame”—that is, a list of potential business executives from small- and medium-sized enterprises and large companies—from the various © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 87 1.3: The Executive Opinion Survey Table 2: Executive Opinion Survey: Descriptive statistics and weightings First component* Country/Economy Albania Algeria Angola Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Bhutan Bolivia Botswana Brazil Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Chad Chile Colombia Costa Rica Côte d'Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Timor-Leste Egypt El Salvador Estonia Ethiopia Finland Macedonia, FYR France Gabon Gambia, The Georgia Germany Ghana Greece Guatemala Guinea Guyana Haiti Honduras Hong Kong SAR Hungary Iceland India Indonesia Iran, Islamic Rep. Ireland Israel Italy Jamaica Japan Jordan† Kazakhstan Kenya Kuwait Kyrgyz Republic Lao PDR Latvia Lebanon Lesotho Libya Survey edition 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2012 2013 2013 2013 2013 2013 2013 2013 2013 2013 No. of respondents 81 65 35 122 76 57 99 85 41 71 51 86 85 74 87 98 81 57 110 93 81 133 80 102 130 204 110 81 80 63 50 173 56 34 60 44 92 98 40 82 80 59 76 74 170 70 91 86 56 92 117 55 60 88 91 85 87 121 55 60 85 61 115 156 107 100 36 101 62 97 39 97 63 Second component: 2014 edition* Weight (%)* 45.3 40.1 41.3 47.0 45.0 43.2 49.1 44.6 42.3 44.1 45.8 48.7 46.9 40.1 40.7 43.1 41.9 50.6 47.0 47.0 44.8 51.4 44.4 50.0 43.8 47.9 52.5 45.8 44.7 47.4 39.7 53.0 43.7 43.0 38.8 43.7 45.4 44.7 42.5 45.6 35.2 49.8 43.6 49.6 51.6 41.5 45.9 45.4 40.9 47.9 57.5 36.9 44.4 43.5 45.9 34.4 44.6 42.2 45.7 52.6 44.7 49.9 52.1 48.6 43.2 43.5 43.1 45.5 42.3 47.2 44.7 46.6 50.6 No. of respondents 79 97 47 104 76 66 71 88 51 76 48 64 73 110 123 114 104 36 94 79 82 79 84 68 143 162 59 76 82 52 77 89 62 40 100 49 89 100 49 78 184 40 85 51 99 93 85 83 78 73 39 108 63 99 85 211 90 152 52 32 87 41 64 117 124 113 42 97 77 81 40 85 40 Online (%) — — — 100.0 5.3 100.0 43.7 — 92.2 1.3 87.5 100.0 — 100.0 26.8 98.2 — — — — — 96.2 9.5 — 51.7 59.9 98.3 — 2.4 — 100.0 1.1 — — — 100.0 100.0 — 100.0 — 80.4 20.0 — 98.0 89.9 4.3 91.8 1.2 — — — — 65.1 82.8 100.0 0.9 — 100.0 100.0 100.0 1.1 — 6.3 — 10.5 — 19.0 — — 100.0 97.5 — 15.0 Weight (%)* 54.7 59.9 58.7 53.0 55.0 56.8 50.9 55.4 57.7 55.9 54.2 51.3 53.1 59.9 59.3 56.9 58.1 49.4 53.0 53.0 55.2 48.6 55.6 50.0 56.2 52.1 47.5 54.2 55.3 52.6 60.3 47.0 56.3 57.0 61.3 56.3 54.6 55.3 57.5 54.4 64.8 50.2 56.4 50.4 48.4 58.5 54.1 54.6 59.1 52.1 42.5 63.1 55.6 56.5 54.1 65.6 55.4 57.8 54.3 47.4 55.3 50.1 47.9 51.4 56.8 56.5 56.9 54.5 57.7 52.8 55.3 53.4 49.4 (Cont’d.) 88 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 1.3: The Executive Opinion Survey Table 2: Executive Opinion Survey: Descriptive statistics and weightings (cont’d.) First component* Country/Economy Lithuania Luxembourg Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Morocco Mozambique Myanmar Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman† Pakistan Panama Paraguay China Peru Philippines Poland Portugal Puerto Rico Qatar Korea, Rep. Montenegro Serbia Romania Russian Federation Rwanda‡ Saudi Arabia Senegal Seychelles Sierra Leone Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Suriname Swaziland Sweden Switzerland Taiwan, China Tajikistan‡‡ Tanzania Thailand Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates† United Kingdom United States Uruguay Venezuela Vietnam Yemen Zambia Zimbabwe Grand total/average Survey edition 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2012 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 — 2013 2013 2013 2013 2013 2013 2013 2012 2013 2013 2013 2013 2013 2013 2013 2013 No. of respondents 141 57 157 55 106 94 42 88 77 320 122 86 82 87 79 79 93 87 37 69 109 68 78 130 130 58 364 79 95 208 100 57 106 81 78 100 103 294 81 139 98 31 99 150 114 98 47 84 100 50 32 45 71 71 — 92 86 132 84 94 93 108 169 118 598 92 54 109 72 85 57 Second component: 2014 edition* Weight (%)* No. of respondents Online (%) 44.6 42.6 50.7 44.3 46.2 46.3 42.3 43.7 48.9 44.2 43.8 45.7 51.8 42.4 43.9 45.3 46.3 44.9 43.7 52.9 45.3 42.1 42.5 54.9 44.9 44.8 45.1 44.1 42.1 45.5 40.8 46.4 45.4 42.4 42.5 45.0 49.4 45.8 100.0 41.7 44.7 36.5 45.9 44.0 48.6 46.9 42.4 46.3 45.4 49.1 45.0 41.0 44.7 43.1 — 44.5 43.0 42.2 44.9 45.8 45.4 45.4 45.9 49.9 50.9 44.1 48.7 46.7 48.8 48.0 47.7 146 69 99 58 96 85 52 98 56 340 134 81 47 107 86 77 84 88 41 36 106 86 95 56 131 59 362 85 120 200 140 51 103 100 95 100 72 276 n/a 181 100 63 92 163 85 84 58 76 97 36 32 62 73 83 97 96 101 165 85 88 90 105 157 79 369 99 40 95 53 67 46 13,264 60.3 100.0 — 22.4 43.8 — 82.7 — 96.4 97.1 — — 80.9 0.9 1.2 — 1.2 97.7 100.0 91.7 1.9 100.0 31.6 21.4 38.9 — 0.3 42.4 — 98.0 76.4 100.0 5.8 — — — — 0.4 n/a 72.4 — — — 60.7 84.7 1.2 96.6 75.0 — 100.0 31.3 98.4 100.0 37.3 — — 99.0 99.4 76.5 47.7 — 1.0 21.0 100.0 100.0 46.5 100.0 7.4 — — 56.5 39.1 Weight (%)* 55.4 57.4 49.3 55.7 53.8 53.7 57.7 56.3 51.1 55.8 56.2 54.3 48.2 57.6 56.1 54.7 53.7 55.1 56.3 47.1 54.7 57.9 57.5 45.1 55.1 55.2 54.9 55.9 57.9 54.5 59.2 53.6 54.6 57.6 57.5 55.0 50.6 54.2 n/a 58.3 55.3 63.5 54.1 56.0 51.4 53.1 57.6 53.8 54.6 50.9 55.0 59.0 55.3 56.9 100.0 55.5 57.0 57.8 55.1 54.2 54.6 54.6 54.1 50.1 49.1 55.9 51.3 53.3 51.2 52.0 52.3 Notes: Bold typeface identifies economies where the Survey was conducted entirely online. All statistics were computed following the edition of the data. See text for details. Survey edition(s) used for the computation of economy scores: † 2012 and 2014; ‡ 2013; ‡‡ 2014. See Box 2 for details about exceptions. * Weight applied to the country score in that edition of the Survey. See Box 4 for details. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 89 1.3: The Executive Opinion Survey Box 1: A brief history of the Executive Opinion Survey and The Global Competitiveness Report The Global Competitiveness Report began as a research project by Professor Klaus Schwab in 1979. The report, entitled The Competitiveness of European Industry, would later become the annual Global Competitiveness Report. This first report was an analysis of the competitiveness of 16 European countries. The study was based on Schwab’s innovative concept of competitiveness, which extended beyond the traditional notion of labor and capital productivity. Competitiveness, in that early report, was defined as the ability of one enterprise to do as well as, or outperform, another company or group of companies while taking into account the framework conditions in the country. That year, of the 200 indicators selected for the Forum’s first competitiveness index, 50 were derived from a survey. The survey was mailed out in English, French, and German to potential respondents throughout Europe, mainly Chief Executive or Chief Planning Officers of European companies; Managing Directors of subsidiaries of US companies operating in these 16 countries, leading representatives of industrial and employers’ associations, labor unions, economic and social institutes; university faculties of economics or business administration; and the economic media. Median values were calculated for each question and by country. In parallel, Forum researchers visited statistical offices and ministries in order to gather relevant quantitative data. The report was finalized in November 1979. The Forum’s work on competitiveness and its various indexes has therefore been including a mix of proprietary survey data and statistics from international organizations since its very inception. sectors of activity, as detailed below. It then applies a dual stratification procedure based on these two criteria of company size and sector. Specifically, the Partner Institutes are asked to carry out the following steps: 1. Prepare a “sample frame,” or large list of potential respondents, which includes firms representing the main sectors of the economy (agriculture, manufacturing industry, non-manufacturing industry, and services). 2. Separate the frame into two lists: one that includes only large firms, and a second list that includes all other firms (both lists representing the various economic sectors).2 3. Based on these lists, and in view of reducing survey bias, choose a random selection of these firms from both lists to receive the Survey. Furthermore, the sampling guidelines specify that the Partner Institute should aim to collect a combination of random respondents with some repeat respondents for further comparative analysis.3 The Survey is 90 The Global Competitiveness Report 2014–2015 The report was the first attempt to support policymakers and business leaders in their efforts to formulate improved economic policies and institutional reforms. In the minds of its authors, “an undertaking of this dimension can never be perfect, certainly not in its first publication. It will be enriched, in the future, by the comments and suggestions of its readers.”1 Thirty-five years later, as envisioned by Professor Schwab, The Global Competitiveness Report has grown to cover over 140 economies to assess the key drivers of development. The methodology underpinning the analysis has been improved over the years in order to reflect the newest thinking in matters of economic growth. Since 2005, the Global Competitiveness Index has provided the methodology used to conduct the assessment. This evolution has been achieved while keeping true to the original objective of supporting policymakers and business leaders in their efforts to formulate improved economic policies and institutional reforms. In parallel to this development of the index, the original survey has evolved and is today known as the Executive Opinion Survey (the Survey). Over the years, it has undergone a number of revisions and audits, which have enabled an improved administration process and methodology. The Survey has grown in scope, too. It now includes over 140 questions distributed in 14 sections. And it largely influences the coverage of the Forum’s global indexes: in most cases, an economy not included in the Survey cannot be covered by an index. Note 1 European Management Forum 1979. administered in a variety of formats, including face-toface or telephone interviews with business executives, mailed paper forms, and online surveys. For energy, time, and cost considerations, the Forum encourages the use of the online survey tool. However, deciding which of these differing methodologies to use may be based on the particular country’s infrastructure, distance between cities, cultural preferences, and other such issues. The Partner Institutes also play an active and essential role in disseminating the findings of The Global Competitiveness Report and other reports published by The Global Competitiveness and Benchmarking Network by holding press events and workshops to highlight the results at the national level to the business community, the public sector, and other stakeholders. Striving for excellence The Global Competitiveness and Benchmarking Network has, over the years, always given great importance to reflecting the newest thinking in matters of development and measurement of economic growth as well as to applying surveying best practices. To this end, it has © 2014 World Economic Forum 1.3: The Executive Opinion Survey undertaken two audits since 2008 as well as yearly reviews of both the Index and the Survey. An initial external audit by a team of survey experts from Gallup was performed in 2008. Four years after implementing the recommendations from the first audit, a second audit was conducted in 2012 by Gallup. During this second audit, the Survey instrument, the sampling guidelines, and the administration process underwent a thorough review. The review took a twofold approach, analyzing the recommendations and their impact on the process as well as keeping up to date on best practices in the field of surveying. Overall, the outcome of the review regarding the implementation of the 2008 recommendations was commendable; the review determined that the Executive Opinion Survey process followed best practices and made the improvements noted in both the Survey tool and translations as well as in sampling quality. Box 3 presents some statistics about the Survey’s demographics and reveals that the sample of respondents is very diverse. The 2012 audit addressed an important aspect related to the impact of national culture—the so-called cultural bias—that may impact interviewee responses. The Global Competitiveness and Benchmarking Network recognizes this as a possibility; nonetheless, following international best practices and upon Gallup’s recommendation, the Forum decided not to reweight the data using vignettes because of the limited effectiveness of such a procedure and to prevent introducing additional noise into the data that occurs with such an approach. In the context of the GCI revision (see Chapter 1.1), the Survey will undergo a full review in the Fall of 2014. Along with updating some questions, following expert recommendations, the Survey will be shortened and its terminology simplified. With such ongoing efforts in the realm of survey administration best practice, the Global Competitiveness and Benchmarking Network team continues to improve processes to achieve greater data accuracy and heightened comparability across economies. DATA TREATMENT AND SCORE COMPUTATION This section details the process whereby individual responses are edited and aggregated in order to produce the scores of each economy on each individual question of the Survey. These results, together with other indicators obtained from other sources, feed into the GCI and other research projects.4 Data editing Prior to aggregation, the respondent-level data are subjected to a thorough editing process. A first series of tests is run to identify and exclude those surveys whose patterns of answers demonstrate a lack of sufficient focus on the part of the respondents. Surveys with a Box 2: Example of a typical Survey question In your country, how strong is the protection of intellectual property, including anti-counterfeiting measures? Extremely weak < 1 2 3 4 5 6 7 > Extremely strong Circling 1 ... means you agree completely with the answer on the left-hand side Circling 2 ... means you largely agree with the lefthand side Circling 3 ... means you somewhat agree with the lefthand side Circling 4 ... means your opinion is indifferent between the two answers Circling 5 ... means you somewhat agree with the righthand side Circling 6 ... means you largely agree with the right-hand side Circling 7 ... means you agree completely with the answer on the right-hand side completion rate inferior to 50 percent are excluded.5 Surveys with straight answers (e.g., only 4s or only 1s) are also excluded. The very few cases of duplicate surveys—which can occur, for example, when a survey is both completed online and mailed in—are also excluded in this phase. In a second step, a multivariate test is applied to the data using the Mahalanobis distance method. This test estimates the probability that an individual survey in a specific country “belongs” to the sample of that country by comparing the pattern of answers of that survey against the average pattern of answers in the country sample. More specifically, the Mahalonobis distance test estimates the likelihood that one particular point of N dimensions belongs to a set of such points. One single survey made up of N answers can be viewed as the point of N dimensions, while a particular country sample c is the set of points. The Mahalanobis distance is used to compute the probability that any individual survey i does not belong to the sample c. If the probability is high enough—we use 99.9 percent as the threshold—we conclude that the survey is a clear outlier and does not “belong” to the sample. The implementation of this test requires that the number of responses in a country be greater than the number of answers, N, used in the test. The test uses 52 questions, selected by their relevance and placement in the Survey instrument. A univariate outlier test is then applied at the country level for each question of each survey. We use © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 91 1.3: The Executive Opinion Survey Box 3: Insights from the Executive Opinion Survey 2014 The respondents of the Executive Opinion Survey largely reflect the characteristics and diversity of the economic fabric of the countries covered. They also demonstrate the efforts undertaken by the Partner Institutes to follow the sampling guidelines. Figure 1 presents selected statistics about the Survey’s demographics. Because small- and medium-sized enterprises (SMEs) account for a large share of economic activities in most countries, the Survey aims to collect the opinion of executives from those smaller companies (Figure 1a). Indeed, small enterprises, defined here as those with fewer than 50 employees, account for 27 percent of the sample in Advanced Economies and Emerging and Developing Asia and for 48 percent in Sub-Saharan Africa, also reflecting the respective economic structure of these regions. The Partner Institutes are asked to collect a mix of SMEs and large companies. The Survey also aims to capture the diversity of companies in terms of ownership (Figure 1b). On average, 19 percent of the surveyed companies’ equity is owned by foreigners (as either minority or majority shareholders). Further, the Survey sampling also aims to ensure the coverage of a variety of non-exporting and exporting companies (Figure 1c). Regular exporters (companies for which exports account for more than 50 percent of revenues) account for just 6 percent of the sample in the Commonwealth of Independent States and as much as 22 percent in Advanced Economies. Finally, in alignment with the Forum’s sampling guidelines, approximately a third of the 2014 Survey respondents are “repeat” respondents—that is to say, they are executives who have previously taken part in the Survey (Figure 1d). This improves the comparability of data across years. Figure 1: Executive Opinion Survey: Respondent profile 1a: Company size by number of employees 1b: Company ownership Advanced economies Advanced economies Commonwealth of Independent States Commonwealth of Independent States Emerging and Developing Asia Emerging and Developing Asia Emerging and Developing Europe Emerging and Developing Europe Latin America and the Caribbean Latin America and the Caribbean Middle East, North Africa, and Pakistan Middle East, North Africa, and Pakistan Sub-Saharan Africa Sub-Saharan Africa 0 20 40 60 80 0 100 20 40 Respondents, percent n Small (< 50) n Small-medium (50–150) n Large-medium (151–1,000) n Large (> 1,000) n n/a n Private (domestic) n Foreign 1c: Revenues generated by exports Advanced economies Commonwealth of Independent States Commonwealth of Independent States Emerging and Developing Asia Emerging and Developing Asia Emerging and Developing Europe Emerging and Developing Europe Latin America and the Caribbean Latin America and the Caribbean Middle East, North Africa, and Pakistan Middle East, North Africa, and Pakistan Sub-Saharan Africa Sub-Saharan Africa 20 40 60 80 100 Respondents, percent n None n 26%–50% n n/a 100 n Public (domestic) 0 20 40 60 80 Respondents, percent n 25% or less n Over 50% 92 The Global Competitiveness Report 2014–2015 80 1d: Repeat and random respondents Advanced economies 0 60 Equity, percent n Repeat respondents n n/a © 2014 World Economic Forum n Random respondents 100 1.3: The Executive Opinion Survey the standardized score—or “z-score”—method, which indicates by how many standard deviations any one individual answer deviates from the mean of the country sample. Individual answers with a standardized score greater than 3 are dropped. Aggregation and computation of country averages Through 2013, the computation of country averages used a weighting by economic sector: averages of individual responses were computed for the four main economic sectors (agriculture, manufacturing industry, non-manufacturing industry, and services) in a given country. Country averages were then derived by taking a weighted average of the sector averages using the estimated contributions of each sector to a country’s GDP as weights. The aim was to obtain a more representative average. However, while appealing in theory, this approach presents a number of implementation challenges and limitations. First, in many countries covered by the Survey, information about economic structure is not reliable or is subject to significant revision. Special treatment is also required for 10 countries for which the breakdown of industry between manufacturing and non-manufacturing is not available. Second, the structure of the sample of responses might end up differing significantly from the actual structure of the economy, despite the efforts of our Partner Institutes, especially in challenging environments where the administration of the Survey is difficult. Third, in some major petroleum- and gas-producing countries, a handful of very large companies account for a sizeable share of the non-manufacturing sector. This means that attempting to mirror the structure of the economy would result in assigning a very high individual weight to the respondent from those companies. A related issue arises if none of those companies are surveyed, in which case the non-manufacturing sector is not represented at all in the country sample. Elsewhere, where agriculture still accounts for a large share of an economy, the agriculture sector tends to be underrepresented in the Survey sample because of the difficulty of identifying respondents in that sector who have an international perspective. The issue of sectoral representation tends to be exacerbated when the sample of respondents is small. In the presence of unbalanced samples, we used to limit the maximum implicit weight of an individual response in the sample to 10 percent.6 In some extreme cases, where a sample size was too small or the sectoral representation too different from the actual structure of the economy, this mechanism was not sufficient to prevent an individual response from receiving a disproportionate weight. In such a case, the economic sector stratification average was abandoned and a simple average of the surveys was applied. For all these reasons, this year we decided to revert back to using a simple average to compute scores of all countries. Therefore, every individual response carries the same implicit weight, regardless the company’s sector of activity. Yet, as explained above, we will continue to work with our Partner institutes to obtain samples of respondents that are as representative as possible. Formally, the country average of a Survey indicator i for country c, denoted qi,c , is computed as follows: N i,c q i,c = q ⌺ j i,c,j N i,c where qi,c,j is the answer to question i in country c from respondent j; and Ni,c is the number of respondents to question i in country c. Moving average and computation of country scores As a final step, the country averages for 2014 are combined with the 2013 averages to produce the country scores that are used for the computation of the GCI 2014–2015 and for other projects.7 This moving average technique, introduced in 2007, consists of taking a weighted average of the most recent year’s Survey results together with a discounted average of the previous year. There are several reasons for doing this. First, it makes results less sensitive to the specific point in time when the Survey is administered. Second, it increases the amount of available information by providing a larger sample size. Additionally, because the Survey is carried out during the first quarter of the year, the average of the responses in the first quarter of 2013 and first quarter of 2014 better aligns the Survey data with many of the data indicators from sources other than the Survey, which are often year-average data. To calculate the moving average, we use a weighting scheme composed of two overlapping elements. On one hand, we want to give each response an equal weight and, therefore, place more weight on the year with the larger sample size. At the same time, we would like to give more weight to the most recent responses because they contain more updated information. That is, we also “discount the past.” Table 2 reports the exact weights used in the computation of the scores of each country, while Box 4 details the methodology and provides a clarifying example. Trend analysis and exceptions The two tests described above address variability issues among individual responses in a country. Yet they were not designed to track the evolution of country scores across time. We therefore carry out an analysis to assess the reliability and consistency of the Survey data over © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 93 1.3: The Executive Opinion Survey Box 4: Country/economy score calculation This box presents the method applied to compute the country scores for the vast majority of economies included in The Global Competitiveness Report 2014–2015 (see text for exceptions). 2013–14 For any given Survey question i, country c’s final score, q i,c , is given by: 2013–14 q i,c 2013 ϭwc 2013 ϫ q i,c 2014 ϩ wc 2014 (1) ϫ q i,c where t q i,c is country c’s score on question i in year t, with t = 2013, 2014, as computed following the approach described in the text; and t wc is the weight applied to country c’s score in year t (see below). The weights for each year are determined as follows: (1Ϫ␣) ϩ 2013 wc ϭ 2013 c 2013 ϩ c2014 c N N N 2 ␣ϩ (2a) and 2014 wc ϭ 2014 c 2013 ϩ c2014 c N N N (2b) 2 t where N c is the sample size (i.e., the number of respondents) for country c in year t, with t = 2013, 2014. ␣ is a discount factor. Its value is set at 0.6. That is, the 2013 score of country c is given 2/3 of the weight given to the 2014 score. Plugging Equations (2a) and (2b) into (1) and rearranging yields: ΄ ΅ discounted-past weighted average ΄ ΅ N c2013 N c2014 2013 2014 . ϩ 2013 ϫ q i,c 2014 ϫ q i,c N c ϩN c N c ϩ N c2014 2013 (3) Ά 2013 2014 1 1 ϫ (1Ϫ␣) ϫ q i,c ϩ ␣ ϫ q i,c ϩ ϫ 2 2 Ά q i,c2013–14 ϭ sample-size weighted average In Equation (3), the first component of the weighting scheme is the discounted-past weighted average. The second component is the sample-size weighted average. The two components are given half-weight each. One additional characteristic of this approach is that it prevents a country sample that is much larger in one year from overwhelming the smaller sample from the other year. (Cont’d.) time. As part of this analysis, we run an inter-quartile range test, or IQR test, to identify large swings—positive and negative—in the country scores. More specifically, for each country we compute the year-on-year difference, d, in the average score of a core set of 62 Survey questions. We then compute the inter-quartile range (i.e., the difference between the 25th percentile and the 75th percentile), denoted IQR, of the sample of 146 economies.8 Any value d lying outside the range bounded by the 25th percentile minus 1.5 times IQR and the 75th percentile plus 1.5 times IQR is identified as a potential outlier. Formally, we have: lower bound = Q1 – 1.5 ϫ IQR upper bound = Q3 – 1.5 ϫ IQR where Q1 and Q3 correspond to the 25th and 75th percentiles of the sample, respectively, and IQR is the difference between these two values. 94 The Global Competitiveness Report 2014–2015 This test allows for the identification of potentially problematic countries, which display large upward or downward swings or repeated and significant changes over several editions. The IQR test is complemented by a series of additional empirical tests, including an analysis of five-year trends and a comparison of changes in the Survey results with changes in other indicators capturing similar concepts. We also conduct interviews of local experts and consider the latest developments in a country in order to assess the plausibility of the Survey results. Based on these quantitative and qualitative analyses, the 2014 Survey data collected in Bosnia and Herzegovina, Ecuador, and Rwanda deviate significantly from the historical trends, and recent developments in these countries do not seem to provide enough justification for the large swings observed. In the case of Rwanda, we use only the 2013 Survey data in the computation of the Survey scores (see the Exceptions section in Box 4). Rwanda therefore is still covered in the GCI 2014–2015. Although this remains a remedial © 2014 World Economic Forum 1.3: The Executive Opinion Survey Box 4: Country/economy score calculation (cont’d.) The formula is easily generalized. For any two consecutive editions t1 and t2 of the Survey, country c’s final score on question i is computed as follows: q i,ct –t ϭ 1 2 ΄ ΅ N ct N ct t t t t 1 1 ϫ (1Ϫ␣) ϫ q i,c ϩ ␣ ϫ q i,c ϩ ϫ ϫ q i,c ϩ t ϫ q i,c . t t 2 2 N c ϩN c N c ϩ N ct ΄ 1 2 ΅ 1 2 1 1 2 2 1 2 (4) Exceptions As described in the text, there are a number of exceptions to the approach described above. In describing them below, we use actual years—rather than letters—in equations for the sake of concreteness. In the case of Survey questions that were introduced in 2014, where, by definition, no past data exist, the weight applied to the 2013 score is wc2013 = 0 and the weight applied to the 2014 score is wc2013 = 1. Equation (1) simply is qi,c2013–14 = qi,c2014. The same is true for Tajikistan, which was reinstated in 2014. In this case, we have qi,c2013–14 = qi,c2014. In the case of countries that failed the inter-year robustness check, the weight applied is wc2013 = 1 and wc2014 = 0, so that Equation (1) simply becomes qi,c2013–14 = qi,c2013. In the case of countries that failed the inter-year robustness check last year and for which the 2013 data were discarded, we use the Survey data from 2012 instead, and combine them with those of 2014 to compute the scores. Equation (1) then becomes qi,c2012–2014 = wc2012 ϫ qi,c2012 ϩ wc2014 ϫ qi,c2014. Example of score computation For this example, we compute the score of Tanzania for indicator 5.08 Extent of staff training, which is derived from the following Survey question: “In your country, to what extent do companies invest in training and employee development? [1 = not at all; 7 = to a great extent].” This question is not a new Survey question and Tanzania did not fail the inter-year robustness test either this year or last year. Therefore, the general case of Equation (1) applies. Tanzania’s score was 3.76 in 2013 and 3.31 in 2014. The weighting scheme described above indicates how the two scores are combined. In Tanzania, the size of the sample was 92 in 2013 and 96 in 2014. Using ␣ = 0.6 and applying Equations (2a) and (2b) yields weights of 44.5 percent for 2013 and 55.5 percent for 2014 (see Table 2). The final country score for this question is given by Equation (1): Ά Ά 0.445 ϫ 3.76 ϩ 0.555 ϫ 3.31 ϭ 3.51. 2013 2014 This is the final score used in the computation of the GCI and reported in Table 5.08 (see page 463). Although numbers are rounded to two decimal places in this example and to one decimal place in the data tables, exact figures are used in all calculations. measure, we will continue to investigate the situation over the coming months in an effort to improve the reliability of the Survey data in this country. Last year, the same analysis resulted in the Survey data of four countries—Bosnia and Herzegovina, Jordan, Oman, and United Arab Emirates—being dismissed. This year, as an intermediate step toward the reestablishment of the standard computation method, we used a weighted average of the Survey data of 2012 and 2014 for these countries, with the exception of Bosnia and Herzegovina described further below. In the case of Bosnia and Herzegovina, we observe a very high degree of volatility in the Survey results over the past four years. For Ecuador, the trend exhibited by the Survey results over the past four years is not corroborated by developments on the ground during that period. Therefore, as an exceptional measure, both countries are excluded from this year’s coverage. We will work closely with the respective Partner Institutes to improve the administration process and the reliability of the data, with the aim of reinstating both countries in the near future. CONCLUSION Since 1979, the World Economic Forum has been conducting a survey to gather perception data for its research on competitiveness. Over the years, the Executive Opinion Survey has become the largest poll of its kind, this year collecting the insight of more than 14,000 executives into critical drivers of their respective countries’ development. This scale could not be achieved without the tremendous efforts of the Forum’s network of over 160 Partner Institutes in carrying out the Survey at a national level. The Survey gathers valuable information on a broad range of variables for which data sources are scarce or nonexistent. For this reason, and for the integrity of our publication and related research, sampling thoroughness and comparability across the globe remain an essential and ongoing endeavor of The Global Competitiveness and Benchmarking Network. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 95 1.3: The Executive Opinion Survey NOTES 1 The World Economic Forum’s Global Competitiveness and Benchmarking Network would like to acknowledge e-Rewards Market Research for carrying out the Executive Opinion Survey 2014 in the United States, following the detailed sampling guidelines. Furthermore, e-Rewards supplemented a sample in Germany and Sweden, as well as France. 2 Company size is defined as the number of employees of the firm in the country of the Survey respondent. The company size value used for delineating the large and small company sample frames varies across countries. The size value tracks closely with the overall size of the economy. Adjustments were made to the value based on searches in company directories and data gathered through the administration of the Survey in past years. 3 In order to reach the required number of surveys in each country (80 for most economies and 300 for the BRICS countries and the United States), a Partner Institute uses the response rate from previous years. 4 The results are the scores obtained by each economy in the various questions of the Survey. The two terms are used interchangeably throughout the text. 5 The completion rate is the proportion of answered questions among a subset of questions in the survey instrument. These 123 core questions are all numerical questions of sections II through XI. 6 Practically, under the old approach, when, for a particular country, the ratio of the weight of one sector in the economy to the percentage of surveys from that sector in the country sample exceeded 5, the sector weight used for the weighted average was capped at five times the percentage of surveys from that sector in the sample. The weights of the other sectors were then adjusted proportionally to their weight in the country’s GDP. 7 The 2013 scores were computed using a sector-weighted average. 8 The Survey was conducted in 148 economies in 2014. However, in Brunei Darussalam and Liberia there were not enough responses collected for inclusion. Therefore, those two countries were excluded prior to carrying out the IQR test. REFERENCE European Management Forum. 1979. The Competitiveness of European Industry. Geneva: European Management Forum. 96 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Data Presentation 2014 World Economic Forum Country/Economy Profiles 2014 World Economic Forum 2.1: Country/Economy Profiles How to Read the Country/Economy Profiles The Country/Economy Profiles section presents a twopage profile for each of the 144 economies covered in The Global Competitiveness Report 2014–2015. 2.1: Country/Economy Profiles Albania Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.8 GDP (US$ billions) .......................................... 12.9 GDP per capita (US$) ................................... 4,610 GDP (PPP) as share (%) of world total ............ 0.03 Albania 20,000 Emerging and Developing Europe 15,000 10,000 5,000 0 1990 PAGE 1 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 97 ..... 3.8 Key indicators The first section presents a selection of key indicators for the economy under review. Unless noted otherwise, all data in the Key indicators’ section are sourced from the April 2014 edition of the International Monetary Fund (IMF)’s World Economic Outlook (WEO) Database: Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 95 ......3.8 GCI 2012–2013 (out of 144) ..................................... 89 ......3.9 GCI 2011–2012 (out of 142) ..................................... 78 ......4.1 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................97 ......4.1 7 Innovation Institutions .............................................................. 103 ......3.4 Infrastructure ............................................................ 90 ......3.5 Macroeconomic environment ................................. 122 ......3.8 Health and primary education ................................... 62 ......5.8 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................95 ......3.7 Market size Higher education and training ................................... 60 ......4.5 Goods market efficiency .......................................... 93 ......4.2 Labor market efficiency ............................................ 93 ......4.0 Financial market development ................................ 114 ......3.4 Technological readiness ............................................ 91 ......3.3 Market size ............................................................. 105 ......2.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........114 ......3.2 Business sophistication ......................................... 104 ......3.6 Innovation ............................................................... 120 ......2.7 Albania Emerging and Developing Europe The most problematic factors for doing business Corruption .........................................................................21.2 Access to financing ...........................................................20.2 Inefficient government bureaucracy ...................................13.8 Tax rates............................................................................11.3 Poor work ethic in national labor force ................................8.7 Inadequately educated workforce ........................................7.4 Crime and theft ...................................................................5.4 Inadequate supply of infrastructure ......................................3.7 Tax regulations ....................................................................3.5 Policy instability ...................................................................2.4 Restrictive labor regulations .................................................0.9 Inflation ................................................................................0.6 Foreign currency regulations ................................................0.3 Insufficient capacity to innovate ...........................................0.3 Government instability/coups ..............................................0.3 Poor public health ...............................................................0.0 • Population (in millions). The population figure for Puerto Rico is sourced from the United States Census Bureau. 0 • Gross domestic product (GDP) in billions and GDP per capita, both expressed in US dollars and valued at current prices. Data for Puerto Rico are sourced from Puerto Rico’s national statistics. • The chart on the upper right-hand side displays the evolution of GDP per capita at purchasing power parity (PPP) from 1990 through 2013 (or the period for which data are available) for the economy under review (blue line). The gray line plots the GDP-weighted average of GDP per capita of the group of economies to which the economy under review belongs. We draw on the IMF’s classification (as defined in the April 2014 edition of the WEO), which divides the world into six regions: Emerging and Developing Europe; the Commonwealth of Independent States (CIS), which includes Georgia although it is not a CIS member; Emerging and Developing Asia; Middle East, North Africa, and Pakistan region (MENAP);1 Sub-Saharan Africa; and Latin America and the Caribbean. Finally, advanced economies form a group of their own. For more information regarding the classification and the data, visit www.imf.org/weo. Data for Puerto Rico are not available. Note: 5 10 15 Percent of responses 20 25 30 From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 104 The Global Competitiveness Report 2014–2015 Global Competitiveness Index This section details the economy’s performance on the main components of the Global Competitiveness Index (GCI). The first column shows the country’s rank among the 144 economies included in the Index, while the second column presents its score. The percentage contribution to the overall GCI score of each subindex score is reported next to the subindex name. These weights vary depending on the country’s stage of development. For more information on the methodology of the GCI, refer to Chapter 1.1. On the right-hand side, a chart shows the country’s performance in the 12 pillars of the GCI (blue line) measured against the average score of the group to which the economy belongs, using the same classification as in the GDP per capita chart (gray line). The most problematic factors for doing business This chart summarizes those factors seen by business executives as the most problematic for doing business in their economy. The information is drawn from the 2014 edition of the World Economic Forum’s Executive Opinion Survey (the Survey), with the exception of © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 101 2.1: Country/Economy Profiles Rwanda, for which responses from the 2013 Survey have been used. From a list of 16 factors, respondents were asked to select the five most problematic and rank them from 1 (most problematic) to 5. The results were then tabulated and weighted according to the ranking assigned by respondents. See Chapter 1.3 for details. 2.1: Country/Economy Profiles Albania The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 1st pillar: Institutions 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 Property rights ....................................................... 2.8 ..........133 Intellectual property protection ............................... 2.9 ..........112 Diversion of public funds ........................................ 2.7 ............97 Public trust in politicians ......................................... 2.3 ..........105 Irregular payments and bribes ................................ 3.2 ..........110 Judicial independence............................................ 2.5 ..........122 Favoritism in decisions of government officials ....... 3.1 ............69 Wastefulness of government spending ................... 3.3 ............63 Burden of government regulation ........................... 4.0 ............28 Efficiency of legal framework in settling disputes .... 2.9 ..........119 Efficiency of legal framework in challenging regs. ... 3.0 ............96 Transparency of government policymaking............. 4.0 ............67 Business costs of terrorism .................................... 5.4 ............66 Business costs of crime and violence..................... 4.3 ............75 Organized crime ..................................................... 4.3 ............95 Reliability of police services .................................... 3.7 ............96 Ethical behavior of firms ......................................... 3.3 ..........131 Strength of auditing and reporting standards ......... 3.7 ..........126 Efficacy of corporate boards .................................. 4.4 ............84 Protection of minority shareholders’ interests ......... 3.8 ............93 Strength of investor protection, 0–10 (best)* .......... 7.3 ............14 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.8 ............87 Quality of roads ...................................................... 3.9 ............71 Quality of railroad infrastructure .............................. 1.1 ..........104 Quality of port infrastructure ................................... 3.7 ............89 Quality of air transport infrastructure....................... 4.4 ............68 Available airline seat km/week, millions* ............... 18.8 ..........125 Quality of electricity supply ..................................... 4.7 ............79 Mobile telephone subscriptions/100 pop.* ......... 116.2 ............62 Fixed telephone lines/100 pop.* ............................. 8.9 ............93 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP* ................. –6.2 ..........123 Gross national savings, % GDP* .......................... 15.2 ..........105 Inflation, annual % change* .................................... 1.9 ..............1 General government debt, % GDP* ..................... 70.5 ..........113 Country credit rating, 0–100 (best)* ...................... 36.5 ............88 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 16.0 ............37 Business impact of tuberculosis ............................. 6.2 ............40 HIV prevalence, % adult pop.* ............................. <0.2 ..............1 Business impact of HIV/AIDS ................................. 6.3 ............27 Infant mortality, deaths/1,000 live births* .............. 15.0 ............75 Life expectancy, years*......................................... 77.4 ............39 Quality of primary education ................................... 4.3 ............55 Primary education enrollment, net %* .................. 91.2 ............96 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 82.4 ............93 Tertiary education enrollment, gross %*................ 55.5 ............49 Quality of the education system ............................. 4.1 ............46 Quality of math and science education .................. 4.3 ............64 Quality of management schools ............................. 3.9 ............86 Internet access in schools ...................................... 4.1 ............75 Availability of research and training services ........... 3.8 ............91 Extent of staff training ............................................ 4.4 ............32 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.5 ..........142 Extent of market dominance .................................. 2.9 ..........131 Effectiveness of anti-monopoly policy ..................... 3.4 ..........120 Effect of taxation on incentives to invest................. 3.6 ............83 Total tax rate, % profits* ....................................... 31.7 ............45 2nd pillar: Infrastructure PAGE 2 The Global Competitiveness Index in detail This page details the country’s performance on each of the indicators entering the composition of the GCI. Indicators are organized by pillar. For indicators entering the GCI in two different pillars, only the first instance is shown on this page. 4th pillar: Health and primary education 5th pillar: Higher education and training • INDICATOR, UNITS: This column contains the title of each indicator and, where relevant, the unit in which it is measured—for example, “days” or “% GDP.” Indicators that are not derived from the Survey are identified by an asterisk (*). Indicators derived from the Survey are always expressed as scores on a 1–7 scale, with 7 being the best possible outcome. For those economies ranked from 11 through 50 in the overall GCI, variables ranked higher than the economy’s own rank are considered to be advantages. In the case of Iceland, ranked 30th overall, its rank of 11 on indicator 7.10 Female participation in the labor force makes this indicator a competitive advantage. 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.7 ............37 Flexibility of wage determination ............................. 4.1 ..........121 Hiring and firing practices ....................................... 3.9 ............68 Redundancy costs, weeks of salary* .................... 20.8 ............99 Effect of taxation on incentives to work .................. 3.8 ............53 Pay and productivity............................................... 4.4 ............33 Reliance on professional management ................... 3.8 ............93 Country capacity to retain talent............................. 3.1 ............93 Country capacity to attract talent ........................... 2.9 ............98 Women in labor force, ratio to men* ..................... 0.70 ............97 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........115 Affordability of financial services ............................. 3.7 ..........104 Financing through local equity market .................... 1.6 ..........143 Ease of access to loans ......................................... 1.9 ..........128 Venture capital availability ....................................... 1.9 ..........128 Soundness of banks .............................................. 4.3 ............98 Regulation of securities exchanges ........................ 1.9 ..........140 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.0 ..........116 Firm-level technology absorption ............................ 4.1 ..........112 FDI and technology transfer ................................... 4.3 ............89 Individuals using Internet, %* ............................... 60.1 ............52 Fixed broadband Internet subscriptions/100 pop.* ... 5.8 ............76 Int’l Internet bandwidth, kb/s per user* ................ 21.0 ............83 Mobile broadband subscriptions/100 pop.*.......... 24.7 ............75 7th pillar: Labor market efficiency 8th pillar: Financial market development 9th pillar: Technological readiness 10th pillar: Market size 10.01 Domestic market size index, 1–7 (best)*................. 2.7 ..........103 10.02 Foreign market size index, 1–7 (best)* .................... 3.6 ..........110 10.03 GDP (PPP$ billions)* ............................................ 26.5 ..........109 10.04 Exports as a percentage of GDP* ........................ 33.7 ............85 11th pillar: Business sophistication 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.0 ..........120 Local supplier quality.............................................. 4.0 ............97 State of cluster development.................................. 3.0 ..........126 Nature of competitive advantage ............................ 3.2 ............94 Value chain breadth................................................ 2.7 ..........142 Control of international distribution ......................... 3.8 ............87 Production process sophistication.......................... 3.8 ............71 Extent of marketing ................................................ 4.0 ............86 Willingness to delegate authority ............................ 3.8 ............69 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.2 ..........115 Quality of scientific research institutions ................. 2.6 ..........130 Company spending on R&D................................... 3.1 ............73 University-industry collaboration in R&D ................. 2.3 ..........135 Gov’t procurement of advanced tech products ...... 3.5 ............70 Availability of scientists and engineers .................... 3.4 ..........110 PCT patents, applications/million pop.* .................. 0.4 ............84 12th pillar: Innovation The Global Competitiveness Report 2014–2015 105 indicator 2.08 Mobile phone subscription, where the country ranks 39th, constitutes a competitive advantage. These rules do not apply to indicators 2.03 Quality of railroad infrastructure, 4.01 Malaria incidence, or 4.02 Business impact of malaria because of the special ranking method used for those indicators. For further analysis, the data tables in the following section of the Report provide ranks, values, and the period of each data point, indicator by indicator. ONLINE DATA PORTAL In addition to the analysis presented in this Report, an interactive data platform can be accessed via www.weforum.org/gcr. The platform offers a number of analytical and visualization tools, including sortable rankings, scatter plots, bar charts, and maps, as well as the option of downloading portions of the GCI data set. NOTE 1 The IMF refers to this region as “Middle East, North Africa, Afghanistan, and Pakistan.” However, because Afghanistan is not covered in this Report, the shorter formulation was adopted. For those economies ranked lower than 50th in the overall GCI, any individual indicators with a rank of 50 or better are considered to be advantages. For Cambodia, ranked 95th overall, 102 The Global Competitiveness Report 2014–2015 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 4.5 ............12 Agricultural policy costs.......................................... 3.9 ............64 Prevalence of trade barriers ................................... 3.7 ..........136 Trade tariffs, % duty* .............................................. 2.8 ............42 Prevalence of foreign ownership............................. 3.2 ..........133 Business impact of rules on FDI ............................. 4.5 ............62 Burden of customs procedures .............................. 3.4 ..........112 Imports as a percentage of GDP* ........................ 54.0 ............53 Degree of customer orientation .............................. 4.7 ............57 Buyer sophistication ............................................... 3.0 ..........105 Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. • VALUE: This column reports the country’s score on each of the variables that compose the GCI. For those economies ranked in the top 10 in the overall GCI, individual indicators ranked from 1 through 10 are considered to be advantages. For instance, in the case of Germany—which is ranked 5th overall—its 3rd rank on indicator 5.07 Availability of research and training services makes this indicator a competitive advantage. VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 3rd pillar: Macroeconomic environment 6th pillar: Goods market efficiency • RANK/144: This column reports the country’s position among the 144 economies covered by the GCI 2014–2015. The ranks of those indicators that constitute a notable competitive advantage are highlighted in blue bold typeface. Competitive advantages are defined as follows: INDICATOR © 2014 World Economic Forum 2.1: Country/Economy Profiles Index of Country/Economy Profiles Country/Economy Page Country/Economy Page Country/Economy Page Albania Algeria 104 106 Guyana Haiti 200 202 Norway Oman 296 298 Angola 108 Honduras 204 Pakistan 300 Argentina 110 Hong Kong SAR 206 Panama 302 Armenia 112 Hungary 208 Paraguay 304 Australia 114 Iceland 210 Peru 306 Austria 116 India 212 Philippines 308 Azerbaijan 118 Indonesia 214 Poland 310 Bahrain 120 Iran, Islamic Rep. 216 Portugal 312 Bangladesh 122 Ireland 218 Puerto Rico 314 Barbados 124 Israel 220 Qatar 316 Belgium 126 Italy 222 Romania 318 Bhutan 128 Jamaica 224 Russian Federation 320 Bolivia 130 Japan 226 Rwanda 322 Botswana 132 Jordan 228 Saudi Arabia 324 Brazil 134 Kazakhstan 230 Senegal 326 Bulgaria 136 Kenya 232 Serbia 328 Burkina Faso 138 Korea, Rep. 234 Seychelles 330 Burundi 140 Kuwait 236 Sierra Leone 332 Cambodia 142 Kyrgyz Republic 238 Singapore 334 Cameroon 144 Lao PDR 240 Slovak Republic 336 Canada 146 Latvia 242 Slovenia 338 Cape Verde 148 Lebanon 244 South Africa 340 Chad 150 Lesotho 246 Spain 342 Chile 152 Libya 248 Sri Lanka 344 China 154 Lithuania 250 Suriname 346 Colombia 156 Luxembourg 252 Swaziland 348 Costa Rica 158 Macedonia, FYR 254 Sweden 350 Côte d'Ivoire 160 Madagascar 256 Switzerland 352 Croatia 162 Malawi 258 Taiwan, China 354 Cyprus 164 Malaysia 260 Tajikistan 356 Czech Republic 166 Mali 262 Tanzania 358 Denmark 168 Malta 264 Thailand 360 Dominican Republic 170 Mauritania 266 Timor-Leste 362 Egypt 172 Mauritius 268 Trinidad and Tobago 364 El Salvador 174 Mexico 270 Tunisia 366 Estonia 176 Moldova 272 Turkey 368 Ethiopia 178 Mongolia 274 Uganda 370 Finland 180 Montenegro 276 Ukraine 372 France 182 Morocco 278 United Arab Emirates 374 Gabon 184 Mozambique 280 United Kingdom 376 Gambia, The 186 Myanmar 282 United States 378 Georgia 188 Namibia 284 Uruguay 380 Germany 190 Nepal 286 Venezuela 382 Ghana 192 Netherlands 288 Vietnam 384 Greece 194 New Zealand 290 Yemen 386 Guatemala Guinea 196 198 Nicaragua Nigeria 292 294 Zambia Zimbabwe 388 390 © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 103 2.1: Country/Economy Profiles Albania Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.8 GDP (US$ billions) .......................................... 12.9 GDP per capita (US$) ................................... 4,610 GDP (PPP) as share (%) of world total ............ 0.03 Albania 20,000 Emerging and Developing Europe 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 97 ..... 3.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 95 ......3.8 GCI 2012–2013 (out of 144) ..................................... 89 ......3.9 GCI 2011–2012 (out of 142) ..................................... 78 ......4.1 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................97 ......4.1 7 Innovation Institutions .............................................................. 103 ......3.4 Infrastructure ............................................................ 90 ......3.5 Macroeconomic environment ................................. 122 ......3.8 Health and primary education ................................... 62 ......5.8 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................95 ......3.7 Market size Higher education and training ................................... 60 ......4.5 Goods market efficiency .......................................... 93 ......4.2 Labor market efficiency ............................................ 93 ......4.0 Financial market development ................................ 114 ......3.4 Technological readiness ............................................ 91 ......3.3 Market size ............................................................. 105 ......2.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........114 ......3.2 Business sophistication ......................................... 104 ......3.6 Innovation ............................................................... 120 ......2.7 Albania Emerging and Developing Europe The most problematic factors for doing business Corruption .........................................................................21.2 Access to financing ...........................................................20.2 Inefficient government bureaucracy ...................................13.8 Tax rates............................................................................11.3 Poor work ethic in national labor force ................................8.7 Inadequately educated workforce ........................................7.4 Crime and theft ...................................................................5.4 Inadequate supply of infrastructure ......................................3.7 Tax regulations ....................................................................3.5 Policy instability ...................................................................2.4 Restrictive labor regulations .................................................0.9 Inflation ................................................................................0.6 Foreign currency regulations ................................................0.3 Insufficient capacity to innovate ...........................................0.3 Government instability/coups ..............................................0.3 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 104 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Albania The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.8 ..........133 Intellectual property protection ............................... 2.9 ..........112 Diversion of public funds ........................................ 2.7 ............97 Public trust in politicians ......................................... 2.3 ..........105 Irregular payments and bribes ................................ 3.2 ..........110 Judicial independence............................................ 2.5 ..........122 Favoritism in decisions of government officials ....... 3.1 ............69 Wastefulness of government spending ................... 3.3 ............63 Burden of government regulation ........................... 4.0 ............28 Efficiency of legal framework in settling disputes .... 2.9 ..........119 Efficiency of legal framework in challenging regs. ... 3.0 ............96 Transparency of government policymaking............. 4.0 ............67 Business costs of terrorism .................................... 5.4 ............66 Business costs of crime and violence..................... 4.3 ............75 Organized crime ..................................................... 4.3 ............95 Reliability of police services .................................... 3.7 ............96 Ethical behavior of firms ......................................... 3.3 ..........131 Strength of auditing and reporting standards ......... 3.7 ..........126 Efficacy of corporate boards .................................. 4.4 ............84 Protection of minority shareholders’ interests ......... 3.8 ............93 Strength of investor protection, 0–10 (best)* .......... 7.3 ............14 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.8 ............87 Quality of roads ...................................................... 3.9 ............71 Quality of railroad infrastructure .............................. 1.1 ..........104 Quality of port infrastructure ................................... 3.7 ............89 Quality of air transport infrastructure....................... 4.4 ............68 Available airline seat km/week, millions* ............... 18.8 ..........125 Quality of electricity supply ..................................... 4.7 ............79 Mobile telephone subscriptions/100 pop.* ......... 116.2 ............62 Fixed telephone lines/100 pop.* ............................. 8.9 ............93 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –6.2 ..........123 Gross national savings, % GDP* .......................... 15.2 ..........105 Inflation, annual % change* .................................... 1.9 ..............1 General government debt, % GDP* ..................... 70.5 ..........113 Country credit rating, 0–100 (best)* ...................... 36.5 ............88 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 16.0 ............37 Business impact of tuberculosis ............................. 6.2 ............40 HIV prevalence, % adult pop.* ............................. <0.2 ..............1 Business impact of HIV/AIDS ................................. 6.3 ............27 Infant mortality, deaths/1,000 live births* .............. 15.0 ............75 Life expectancy, years*......................................... 77.4 ............39 Quality of primary education ................................... 4.3 ............55 Primary education enrollment, net %* .................. 91.2 ............96 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 82.4 ............93 Tertiary education enrollment, gross %*................ 55.5 ............49 Quality of the education system ............................. 4.1 ............46 Quality of math and science education .................. 4.3 ............64 Quality of management schools ............................. 3.9 ............86 Internet access in schools ...................................... 4.1 ............75 Availability of research and training services ........... 3.8 ............91 Extent of staff training ............................................ 4.4 ............32 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 4.5 ............12 Agricultural policy costs.......................................... 3.9 ............64 Prevalence of trade barriers ................................... 3.7 ..........136 Trade tariffs, % duty* .............................................. 2.8 ............42 Prevalence of foreign ownership............................. 3.2 ..........133 Business impact of rules on FDI ............................. 4.5 ............62 Burden of customs procedures .............................. 3.4 ..........112 Imports as a percentage of GDP* ........................ 54.0 ............53 Degree of customer orientation .............................. 4.7 ............57 Buyer sophistication ............................................... 3.0 ..........105 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.7 ............37 Flexibility of wage determination ............................. 4.1 ..........121 Hiring and firing practices ....................................... 3.9 ............68 Redundancy costs, weeks of salary* .................... 20.8 ............99 Effect of taxation on incentives to work .................. 3.8 ............53 Pay and productivity............................................... 4.4 ............33 Reliance on professional management ................... 3.8 ............93 Country capacity to retain talent............................. 3.1 ............93 Country capacity to attract talent ........................... 2.9 ............98 Women in labor force, ratio to men* ..................... 0.70 ............97 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........115 Affordability of financial services ............................. 3.7 ..........104 Financing through local equity market .................... 1.6 ..........143 Ease of access to loans ......................................... 1.9 ..........128 Venture capital availability ....................................... 1.9 ..........128 Soundness of banks .............................................. 4.3 ............98 Regulation of securities exchanges ........................ 1.9 ..........140 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.0 ..........116 Firm-level technology absorption ............................ 4.1 ..........112 FDI and technology transfer ................................... 4.3 ............89 Individuals using Internet, %* ............................... 60.1 ............52 Fixed broadband Internet subscriptions/100 pop.* ... 5.8 ............76 Int’l Internet bandwidth, kb/s per user* ................ 21.0 ............83 Mobile broadband subscriptions/100 pop.*.......... 24.7 ............75 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.7 ..........103 Foreign market size index, 1–7 (best)* .................... 3.6 ..........110 GDP (PPP$ billions)* ............................................ 26.5 ..........109 Exports as a percentage of GDP* ........................ 33.7 ............85 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.0 ..........120 Local supplier quality.............................................. 4.0 ............97 State of cluster development.................................. 3.0 ..........126 Nature of competitive advantage ............................ 3.2 ............94 Value chain breadth................................................ 2.7 ..........142 Control of international distribution ......................... 3.8 ............87 Production process sophistication.......................... 3.8 ............71 Extent of marketing ................................................ 4.0 ............86 Willingness to delegate authority ............................ 3.8 ............69 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.2 ..........115 Quality of scientific research institutions ................. 2.6 ..........130 Company spending on R&D................................... 3.1 ............73 University-industry collaboration in R&D ................. 2.3 ..........135 Gov’t procurement of advanced tech products ...... 3.5 ............70 Availability of scientists and engineers .................... 3.4 ..........110 PCT patents, applications/million pop.* .................. 0.4 ............84 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.5 ..........142 Extent of market dominance .................................. 2.9 ..........131 Effectiveness of anti-monopoly policy ..................... 3.4 ..........120 Effect of taxation on incentives to invest................. 3.6 ............83 Total tax rate, % profits* ....................................... 31.7 ............45 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 105 2.1: Country/Economy Profiles Algeria Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 37.9 GDP (US$ billions) ........................................ 206.1 GDP per capita (US$) ................................... 5,438 GDP (PPP) as share (%) of world total ............ 0.33 Algeria 8,000 Middle East, North Africa, and Pakistan 7,000 6,000 5,000 4,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 79 ..... 4.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 100 ......3.8 GCI 2012–2013 (out of 144) ................................... 110 ......3.7 GCI 2011–2012 (out of 142) ..................................... 87 ......4.0 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (59.0%) .......................................65 ......4.6 Innovation Institutions .............................................................. 101 ......3.4 Infrastructure .......................................................... 106 ......3.1 Macroeconomic environment ................................... 11 ......6.4 Health and primary education ................................... 81 ......5.6 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.7%) ...................................125 ......3.3 Market size Higher education and training ................................... 98 ......3.7 Goods market efficiency ........................................ 136 ......3.5 Labor market efficiency .......................................... 139 ......3.1 Financial market development ................................ 137 ......2.7 Technological readiness .......................................... 129 ......2.6 Market size ............................................................... 47 ......4.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.2%) ...........133 ......2.9 Business sophistication ......................................... 131 ......3.2 Innovation ............................................................... 128 ......2.6 Algeria Middle East, North Africa, and Pakistan The most problematic factors for doing business Access to financing ...........................................................15.1 Corruption .........................................................................13.9 Inefficient government bureaucracy ...................................12.6 Tax rates..............................................................................9.4 Restrictive labor regulations .................................................6.2 Inadequately educated workforce ........................................6.1 Inadequate supply of infrastructure ......................................5.8 Poor work ethic in national labor force ................................5.5 Tax regulations ....................................................................5.1 Policy instability ...................................................................4.7 Foreign currency regulations ................................................4.3 Inflation ................................................................................3.2 Government instability/coups ..............................................2.9 Insufficient capacity to innovate ...........................................2.2 Crime and theft ...................................................................1.9 Poor public health ...............................................................1.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 106 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Algeria The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.7 ............97 Intellectual property protection ............................... 2.9 ..........114 Diversion of public funds ........................................ 2.6 ..........112 Public trust in politicians ......................................... 2.8 ............80 Irregular payments and bribes ................................ 2.9 ..........120 Judicial independence............................................ 3.5 ............85 Favoritism in decisions of government officials ....... 3.0 ............77 Wastefulness of government spending ................... 3.1 ............74 Burden of government regulation ........................... 3.1 ..........104 Efficiency of legal framework in settling disputes .... 3.2 ..........108 Efficiency of legal framework in challenging regs. ... 2.9 ..........104 Transparency of government policymaking............. 3.6 ..........107 Business costs of terrorism .................................... 3.8 ..........129 Business costs of crime and violence..................... 4.0 ............93 Organized crime ..................................................... 4.3 ............94 Reliability of police services .................................... 4.1 ............74 Ethical behavior of firms ......................................... 3.7 ..........100 Strength of auditing and reporting standards ......... 3.4 ..........134 Efficacy of corporate boards .................................. 3.5 ..........137 Protection of minority shareholders’ interests ......... 3.5 ..........113 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.6 ..........102 Quality of roads ...................................................... 3.1 ..........107 Quality of railroad infrastructure .............................. 2.7 ............65 Quality of port infrastructure ................................... 2.8 ..........117 Quality of air transport infrastructure....................... 3.0 ..........128 Available airline seat km/week, millions* ............. 177.3 ............69 Quality of electricity supply ..................................... 4.0 ............91 Mobile telephone subscriptions/100 pop.* ......... 102.0 ............91 Fixed telephone lines/100 pop.* ............................. 8.0 ............99 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.1 ............20 Gross national savings, % GDP* .......................... 51.1 ..............4 Inflation, annual % change* .................................... 3.3 ............66 General government debt, % GDP* ....................... 9.2 ..............5 Country credit rating, 0–100 (best)* ...................... 52.6 ............66 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.2 ............10 Business impact of malaria .................................... 4.5 ............47 Tuberculosis cases/100,000 pop.* ....................... 89.0 ............88 Business impact of tuberculosis ............................. 4.0 ..........131 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 4.3 ..........118 Infant mortality, deaths/1,000 live births* .............. 17.2 ............83 Life expectancy, years*......................................... 70.9 ............90 Quality of primary education ................................... 2.8 ..........121 Primary education enrollment, net %* .................. 97.3 ............41 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 97.6 ............46 Tertiary education enrollment, gross %*................ 31.5 ............78 Quality of the education system ............................. 3.0 ..........114 Quality of math and science education .................. 3.2 ..........113 Quality of management schools ............................. 3.5 ..........115 Internet access in schools ...................................... 2.4 ..........133 Availability of research and training services ........... 3.1 ..........126 Extent of staff training ............................................ 3.4 ..........118 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 14 ..........139 No. days to start a business* ............................... 25.0 ..........101 Agricultural policy costs.......................................... 3.3 ..........114 Prevalence of trade barriers ................................... 3.7 ..........135 Trade tariffs, % duty* ............................................ 14.5 ..........134 Prevalence of foreign ownership............................. 3.2 ..........131 Business impact of rules on FDI ............................. 3.3 ..........128 Burden of customs procedures .............................. 2.8 ..........137 Imports as a percentage of GDP* ........................ 31.7 ..........111 Degree of customer orientation .............................. 3.6 ..........125 Buyer sophistication ............................................... 3.0 ..........102 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.6 ..........130 Flexibility of wage determination ............................. 4.6 ..........104 Hiring and firing practices ....................................... 3.1 ..........122 Redundancy costs, weeks of salary* .................... 17.3 ............83 Effect of taxation on incentives to work .................. 3.3 ............97 Pay and productivity............................................... 3.3 ..........123 Reliance on professional management ................... 2.6 ..........141 Country capacity to retain talent............................. 2.3 ..........133 Country capacity to attract talent ........................... 2.3 ..........133 Women in labor force, ratio to men* ..................... 0.21 ..........144 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.0 ..........133 Affordability of financial services ............................. 3.1 ..........135 Financing through local equity market .................... 2.1 ..........134 Ease of access to loans ......................................... 2.8 ............72 Venture capital availability ....................................... 2.2 ..........108 Soundness of banks .............................................. 3.4 ..........133 Regulation of securities exchanges ........................ 2.2 ..........136 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.4 ..........136 Firm-level technology absorption ............................ 3.4 ..........138 FDI and technology transfer ................................... 3.9 ..........115 Individuals using Internet, %* ............................... 16.5 ..........108 Fixed broadband Internet subscriptions/100 pop.* ... 3.3 ............87 Int’l Internet bandwidth, kb/s per user* ................ 26.3 ............72 Mobile broadband subscriptions/100 pop.*............ 0.0 ..........133 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.2 ............45 Foreign market size index, 1–7 (best)* .................... 4.9 ............52 GDP (PPP$ billions)* .......................................... 285.5 ............45 Exports as a percentage of GDP* ........................ 33.8 ............84 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.3 ..........102 Local supplier quality.............................................. 3.3 ..........136 State of cluster development.................................. 3.3 ..........105 Nature of competitive advantage ............................ 3.1 ..........104 Value chain breadth................................................ 3.1 ..........126 Control of international distribution ......................... 3.4 ..........127 Production process sophistication.......................... 2.8 ..........131 Extent of marketing ................................................ 2.8 ..........139 Willingness to delegate authority ............................ 3.1 ..........125 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.7 ..........143 Quality of scientific research institutions ................. 2.6 ..........127 Company spending on R&D................................... 2.2 ..........138 University-industry collaboration in R&D ................. 2.3 ..........137 Gov’t procurement of advanced tech products ...... 3.1 ............99 Availability of scientists and engineers .................... 4.2 ............61 PCT patents, applications/million pop.* .................. 0.2 ............97 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.8 ..........136 Extent of market dominance .................................. 3.3 ..........108 Effectiveness of anti-monopoly policy ..................... 3.3 ..........124 Effect of taxation on incentives to invest................. 3.5 ............86 Total tax rate, % profits* ....................................... 71.9 ..........137 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 107 2.1: Country/Economy Profiles Angola Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 20.8 GDP (US$ billions) ........................................ 121.7 GDP per capita (US$) ................................... 5,846 GDP (PPP) as share (%) of world total ............ 0.15 Angola 8,000 Sub-Saharan Africa 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 140 ..... 3.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 142 ......3.1 GCI 2012–2013 (out of 144) .................................... n/a ......n/a GCI 2011–2012 (out of 142) ................................... 139 ......3.0 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (59.3%) .....................................137 ......3.2 7 Innovation Institutions .............................................................. 143 ......2.6 Infrastructure .......................................................... 139 ......2.0 Macroeconomic environment ................................... 71 ......4.7 Health and primary education ................................. 136 ......3.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.6%) ...................................140 ......2.8 Market size Higher education and training ................................. 144 ......1.9 Goods market efficiency ........................................ 143 ......2.9 Labor market efficiency .......................................... 128 ......3.5 Financial market development ................................ 140 ......2.5 Technological readiness .......................................... 140 ......2.3 Market size ............................................................... 65 ......3.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.2%) ...........144 ......2.4 Business sophistication ......................................... 144 ......2.6 Innovation ............................................................... 142 ......2.1 Angola Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................19.6 Inadequately educated workforce ......................................19.1 Inadequate supply of infrastructure ....................................18.4 Corruption .........................................................................16.5 Poor public health ...............................................................6.4 Inefficient government bureaucracy .....................................6.2 Poor work ethic in national labor force ................................3.6 Crime and theft ...................................................................3.1 Foreign currency regulations ................................................2.4 Inflation ................................................................................1.0 Government instability/coups ..............................................0.9 Insufficient capacity to innovate ...........................................0.9 Policy instability ...................................................................0.7 Restrictive labor regulations .................................................0.6 Tax rates..............................................................................0.6 Tax regulations ....................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 108 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Angola The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.5 ..........141 Intellectual property protection ............................... 2.3 ..........138 Diversion of public funds ........................................ 1.8 ..........139 Public trust in politicians ......................................... 1.8 ..........135 Irregular payments and bribes ................................ 2.4 ..........136 Judicial independence............................................ 2.1 ..........137 Favoritism in decisions of government officials ....... 2.0 ..........140 Wastefulness of government spending ................... 2.8 ............93 Burden of government regulation ........................... 2.7 ..........128 Efficiency of legal framework in settling disputes .... 2.3 ..........140 Efficiency of legal framework in challenging regs. ... 2.0 ..........141 Transparency of government policymaking............. 2.9 ..........137 Business costs of terrorism .................................... 4.8 ............96 Business costs of crime and violence..................... 3.6 ..........114 Organized crime ..................................................... 3.5 ..........128 Reliability of police services .................................... 2.8 ..........129 Ethical behavior of firms ......................................... 2.6 ..........144 Strength of auditing and reporting standards ......... 2.6 ..........141 Efficacy of corporate boards .................................. 2.7 ..........143 Protection of minority shareholders’ interests ......... 2.5 ..........142 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.2 ..........141 Quality of roads ...................................................... 2.3 ..........138 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.7 ..........121 Quality of air transport infrastructure....................... 3.3 ..........117 Available airline seat km/week, millions* ............. 130.5 ............74 Quality of electricity supply ..................................... 1.7 ..........138 Mobile telephone subscriptions/100 pop.* ........... 61.9 ..........132 Fixed telephone lines/100 pop.* ............................. 1.0 ..........126 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.5 ............42 Gross national savings, % GDP* .......................... 18.2 ............80 Inflation, annual % change* .................................... 8.8 ..........130 General government debt, % GDP* ..................... 26.6 ............29 Country credit rating, 0–100 (best)* ...................... 35.8 ............91 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 18,251.2 ............61 Business impact of malaria .................................... 1.4 ............76 Tuberculosis cases/100,000 pop.* ..................... 316.0 ..........130 Business impact of tuberculosis ............................. 2.8 ..........143 HIV prevalence, % adult pop.* ............................... 2.3 ..........125 Business impact of HIV/AIDS ................................. 2.5 ..........143 Infant mortality, deaths/1,000 live births* .............. 99.5 ..........143 Life expectancy, years*......................................... 51.5 ..........137 Quality of primary education ................................... 2.0 ..........143 Primary education enrollment, net %* .................. 85.7 ..........115 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 31.5 ..........135 Tertiary education enrollment, gross %*.................. 7.5 ..........121 Quality of the education system ............................. 2.1 ..........142 Quality of math and science education .................. 1.9 ..........143 Quality of management schools ............................. 2.3 ..........140 Internet access in schools ...................................... 2.4 ..........132 Availability of research and training services ........... 2.5 ..........144 Extent of staff training ............................................ 2.8 ..........141 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 66.0 ..........134 Agricultural policy costs.......................................... 3.2 ..........118 Prevalence of trade barriers ................................... 2.9 ..........144 Trade tariffs, % duty* .............................................. 9.3 ..........100 Prevalence of foreign ownership............................. 2.9 ..........138 Business impact of rules on FDI ............................. 2.6 ..........141 Burden of customs procedures .............................. 1.8 ..........143 Imports as a percentage of GDP* ........................ 38.9 ............92 Degree of customer orientation .............................. 2.4 ..........144 Buyer sophistication ............................................... 2.3 ..........138 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.2 ..........142 Flexibility of wage determination ............................. 4.1 ..........122 Hiring and firing practices ....................................... 2.6 ..........137 Redundancy costs, weeks of salary* .................... 31.0 ..........132 Effect of taxation on incentives to work .................. 4.0 ............41 Pay and productivity............................................... 2.5 ..........141 Reliance on professional management ................... 2.2 ..........142 Country capacity to retain talent............................. 3.7 ............53 Country capacity to attract talent ........................... 3.8 ............50 Women in labor force, ratio to men* ..................... 0.83 ............66 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.3 ..........143 Affordability of financial services ............................. 3.2 ..........128 Financing through local equity market .................... 1.4 ..........144 Ease of access to loans ......................................... 2.2 ..........122 Venture capital availability ....................................... 2.3 ............98 Soundness of banks .............................................. 4.1 ..........115 Regulation of securities exchanges ........................ 1.2 ..........144 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.2 ..........139 Firm-level technology absorption ............................ 2.9 ..........143 FDI and technology transfer ................................... 3.9 ..........117 Individuals using Internet, %* ............................... 19.1 ..........104 Fixed broadband Internet subscriptions/100 pop.* ... 0.2 ..........119 Int’l Internet bandwidth, kb/s per user* .................. 2.0 ..........140 Mobile broadband subscriptions/100 pop.*.......... 12.1 ............94 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.5 ............69 Foreign market size index, 1–7 (best)* .................... 4.8 ............56 GDP (PPP$ billions)* .......................................... 130.1 ............63 Exports as a percentage of GDP* ........................ 62.3 ............32 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 2.4 ..........144 Local supplier quality.............................................. 2.2 ..........144 State of cluster development.................................. 2.6 ..........141 Nature of competitive advantage ............................ 2.6 ..........135 Value chain breadth................................................ 2.6 ..........144 Control of international distribution ......................... 3.5 ..........118 Production process sophistication.......................... 2.4 ..........137 Extent of marketing ................................................ 2.9 ..........135 Willingness to delegate authority ............................ 2.4 ..........142 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.7 ..........142 Quality of scientific research institutions ................. 1.9 ..........142 Company spending on R&D................................... 2.1 ..........141 University-industry collaboration in R&D ................. 2.0 ..........142 Gov’t procurement of advanced tech products ...... 2.6 ..........135 Availability of scientists and engineers .................... 2.5 ..........144 PCT patents, applications/million pop.* .................. 0.0 ..........119 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 2.6 ..........144 Extent of market dominance .................................. 2.2 ..........144 Effectiveness of anti-monopoly policy ..................... 2.0 ..........144 Effect of taxation on incentives to invest................. 3.5 ............89 Total tax rate, % profits* ....................................... 52.1 ..........120 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 109 2.1: Country/Economy Profiles Argentina Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 41.5 GDP (US$ billions) ........................................ 488.2 GDP per capita (US$) ................................. 11,766 GDP (PPP) as share (%) of world total ............ 0.89 Argentina 20,000 Latin America and the Caribbean 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 104 ..... 3.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 104 ......3.8 GCI 2012–2013 (out of 144) ..................................... 94 ......3.9 GCI 2011–2012 (out of 142) ..................................... 85 ......4.0 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (33.1%) .....................................104 ......4.1 7 Innovation Institutions .............................................................. 137 ......2.8 Infrastructure ............................................................ 89 ......3.5 Macroeconomic environment ................................. 102 ......4.2 Health and primary education ................................... 67 ......5.8 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................93 ......3.8 Market size Higher education and training ................................... 45 ......4.8 Goods market efficiency ........................................ 141 ......3.1 Labor market efficiency .......................................... 143 ......3.0 Financial market development ................................ 129 ......3.0 Technological readiness ............................................ 82 ......3.5 Market size ............................................................... 24 ......5.0 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (16.9%) ...........96 ......3.4 Business sophistication ........................................... 96 ......3.7 Innovation ................................................................. 97 ......3.0 Argentina Latin America and the Caribbean The most problematic factors for doing business Inflation ..............................................................................19.1 Foreign currency regulations ..............................................16.6 Access to financing ...........................................................11.3 Corruption .........................................................................10.9 Tax rates..............................................................................8.1 Policy instability ...................................................................7.5 Inefficient government bureaucracy .....................................6.5 Restrictive labor regulations .................................................6.2 Tax regulations ....................................................................5.9 Inadequate supply of infrastructure ......................................4.1 Poor work ethic in national labor force ................................1.3 Crime and theft ...................................................................1.3 Inadequately educated workforce ........................................0.7 Government instability/coups ..............................................0.3 Insufficient capacity to innovate ...........................................0.3 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 110 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Argentina The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.6 ..........138 Intellectual property protection ............................... 2.4 ..........136 Diversion of public funds ........................................ 1.7 ..........143 Public trust in politicians ......................................... 1.6 ..........141 Irregular payments and bribes ................................ 2.8 ..........127 Judicial independence............................................ 2.3 ..........127 Favoritism in decisions of government officials ....... 1.7 ..........143 Wastefulness of government spending ................... 1.5 ..........142 Burden of government regulation ........................... 2.3 ..........139 Efficiency of legal framework in settling disputes .... 2.6 ..........130 Efficiency of legal framework in challenging regs. ... 1.9 ..........143 Transparency of government policymaking............. 3.0 ..........135 Business costs of terrorism .................................... 6.1 ............22 Business costs of crime and violence..................... 3.2 ..........123 Organized crime ..................................................... 4.1 ..........109 Reliability of police services .................................... 2.7 ..........133 Ethical behavior of firms ......................................... 3.0 ..........138 Strength of auditing and reporting standards ......... 3.9 ..........111 Efficacy of corporate boards .................................. 4.1 ..........105 Protection of minority shareholders’ interests ......... 3.5 ..........115 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.0 ..........123 Quality of roads ...................................................... 3.0 ..........110 Quality of railroad infrastructure .............................. 1.7 ............96 Quality of port infrastructure ................................... 3.7 ............91 Quality of air transport infrastructure....................... 3.6 ..........107 Available airline seat km/week, millions* ............. 802.4 ............32 Quality of electricity supply ..................................... 2.6 ..........123 Mobile telephone subscriptions/100 pop.* ......... 159.0 ............14 Fixed telephone lines/100 pop.* ........................... 23.3 ............49 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.5 ............83 Gross national savings, % GDP* .......................... 21.4 ............59 Inflation, annual % change* .................................. 10.6 ..........138 General government debt, % GDP* ..................... 46.9 ............81 Country credit rating, 0–100 (best)* ...................... 31.6 ..........104 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.0 ..............7 Business impact of malaria .................................... 6.7 ..............2 Tuberculosis cases/100,000 pop.* ....................... 25.0 ............54 Business impact of tuberculosis ............................. 6.4 ............30 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 5.7 ............62 Infant mortality, deaths/1,000 live births* .............. 12.7 ............64 Life expectancy, years*......................................... 76.0 ............49 Quality of primary education ................................... 3.3 ..........102 Primary education enrollment, net %* .................. 95.4 ............61 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 91.9 ............65 Tertiary education enrollment, gross %*................ 78.6 ............15 Quality of the education system ............................. 3.0 ..........113 Quality of math and science education .................. 3.2 ..........112 Quality of management schools ............................. 4.8 ............34 Internet access in schools ...................................... 4.1 ............76 Availability of research and training services ........... 4.2 ............65 Extent of staff training ............................................ 3.7 ............95 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 14 ..........139 No. days to start a business* ............................... 25.0 ..........101 Agricultural policy costs.......................................... 2.8 ..........139 Prevalence of trade barriers ................................... 2.9 ..........143 Trade tariffs, % duty* ............................................ 10.5 ..........108 Prevalence of foreign ownership............................. 4.4 ............80 Business impact of rules on FDI ............................. 1.8 ..........143 Burden of customs procedures .............................. 2.0 ..........142 Imports as a percentage of GDP* ........................ 19.0 ..........137 Degree of customer orientation .............................. 3.6 ..........128 Buyer sophistication ............................................... 3.3 ............83 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.5 ..........135 Flexibility of wage determination ............................. 2.6 ..........140 Hiring and firing practices ....................................... 2.6 ..........138 Redundancy costs, weeks of salary* .................... 30.3 ..........129 Effect of taxation on incentives to work .................. 1.9 ..........144 Pay and productivity............................................... 2.5 ..........142 Reliance on professional management ................... 4.2 ............68 Country capacity to retain talent............................. 3.3 ............79 Country capacity to attract talent ........................... 2.5 ..........121 Women in labor force, ratio to men* ..................... 0.67 ..........101 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.1 ..........132 Affordability of financial services ............................. 2.9 ..........138 Financing through local equity market .................... 2.2 ..........128 Ease of access to loans ......................................... 1.7 ..........134 Venture capital availability ....................................... 1.8 ..........138 Soundness of banks .............................................. 4.6 ............86 Regulation of securities exchanges ........................ 3.3 ..........114 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.8 ..........124 Firm-level technology absorption ............................ 4.0 ..........115 FDI and technology transfer ................................... 3.1 ..........142 Individuals using Internet, %* ............................... 59.9 ............53 Fixed broadband Internet subscriptions/100 pop.* . 13.9 ............50 Int’l Internet bandwidth, kb/s per user* ................ 44.3 ............59 Mobile broadband subscriptions/100 pop.*.......... 16.2 ............84 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.9 ............21 Foreign market size index, 1–7 (best)* .................... 5.2 ............39 GDP (PPP$ billions)* .......................................... 777.9 ............22 Exports as a percentage of GDP* ........................ 19.8 ..........130 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.1 ..........113 Local supplier quality.............................................. 3.8 ..........110 State of cluster development.................................. 3.1 ..........119 Nature of competitive advantage ............................ 2.8 ..........118 Value chain breadth................................................ 3.7 ............84 Control of international distribution ......................... 3.8 ............94 Production process sophistication.......................... 3.7 ............75 Extent of marketing ................................................ 4.3 ............60 Willingness to delegate authority ............................ 3.5 ............95 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............80 Quality of scientific research institutions ................. 4.1 ............48 Company spending on R&D................................... 2.8 ..........103 University-industry collaboration in R&D ................. 3.6 ............66 Gov’t procurement of advanced tech products ...... 2.5 ..........137 Availability of scientists and engineers .................... 3.8 ............86 PCT patents, applications/million pop.* .................. 1.4 ............63 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.1 ..........132 Extent of market dominance .................................. 3.2 ..........117 Effectiveness of anti-monopoly policy ..................... 3.0 ..........137 Effect of taxation on incentives to invest................. 2.0 ..........144 Total tax rate, % profits* ..................................... 107.8 ..........143 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 111 2.1: Country/Economy Profiles Armenia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 3.3 GDP (US$ billions) .......................................... 10.5 GDP per capita (US$) ................................... 3,208 GDP (PPP) as share (%) of world total ............ 0.02 Armenia 15,000 Commonwealth of Independent States 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 85 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 79 ......4.1 GCI 2012–2013 (out of 144) ..................................... 82 ......4.0 GCI 2011–2012 (out of 142) ..................................... 92 ......3.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................82 ......4.4 Innovation Institutions ................................................................ 72 ......3.8 Infrastructure ............................................................ 78 ......3.8 Macroeconomic environment ................................... 77 ......4.6 Health and primary education ................................... 99 ......5.3 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................87 ......3.8 Market size Higher education and training ................................... 75 ......4.2 Goods market efficiency .......................................... 64 ......4.4 Labor market efficiency ............................................ 74 ......4.2 Financial market development .................................. 97 ......3.7 Technological readiness ............................................ 71 ......3.7 Market size ............................................................. 118 ......2.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........100 ......3.3 Business sophistication ........................................... 93 ......3.7 Innovation ............................................................... 104 ......3.0 Armenia Commonwealth of Independent States The most problematic factors for doing business Corruption .........................................................................16.4 Access to financing ...........................................................14.3 Tax regulations ..................................................................14.3 Tax rates............................................................................12.2 Inefficient government bureaucracy ...................................10.1 Inadequately educated workforce ........................................6.9 Foreign currency regulations ................................................5.8 Inadequate supply of infrastructure ......................................5.0 Inflation ................................................................................3.3 Restrictive labor regulations .................................................2.9 Policy instability ...................................................................2.7 Insufficient capacity to innovate ...........................................2.1 Government instability/coups ..............................................1.8 Poor work ethic in national labor force ................................1.4 Crime and theft ...................................................................0.5 Poor public health ...............................................................0.4 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 112 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Armenia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.2 ............67 Intellectual property protection ............................... 3.5 ............84 Diversion of public funds ........................................ 3.0 ............80 Public trust in politicians ......................................... 2.9 ............76 Irregular payments and bribes ................................ 3.8 ............76 Judicial independence............................................ 2.9 ..........107 Favoritism in decisions of government officials ....... 3.1 ............71 Wastefulness of government spending ................... 3.0 ............76 Burden of government regulation ........................... 3.7 ............43 Efficiency of legal framework in settling disputes .... 3.4 ............95 Efficiency of legal framework in challenging regs. ... 2.9 ............98 Transparency of government policymaking............. 4.5 ............39 Business costs of terrorism .................................... 5.7 ............46 Business costs of crime and violence..................... 5.5 ............22 Organized crime ..................................................... 5.1 ............57 Reliability of police services .................................... 4.0 ............81 Ethical behavior of firms ......................................... 3.8 ............90 Strength of auditing and reporting standards ......... 4.4 ............83 Efficacy of corporate boards .................................. 4.2 ..........104 Protection of minority shareholders’ interests ......... 3.7 ............97 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.4 ............61 Quality of roads ...................................................... 3.7 ............80 Quality of railroad infrastructure .............................. 2.6 ............68 Quality of port infrastructure ................................... 2.5 ..........134 Quality of air transport infrastructure....................... 4.3 ............72 Available airline seat km/week, millions* ............... 49.8 ..........100 Quality of electricity supply ..................................... 5.1 ............62 Mobile telephone subscriptions/100 pop.* ......... 112.4 ............70 Fixed telephone lines/100 pop.* ........................... 19.4 ............58 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.5 ............64 Gross national savings, % GDP* .......................... 15.5 ..........103 Inflation, annual % change* .................................... 5.8 ..........104 General government debt, % GDP* ..................... 41.9 ............69 Country credit rating, 0–100 (best)* ...................... 38.0 ............85 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 52.0 ............74 Business impact of tuberculosis ............................. 5.7 ............71 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 6.1 ............37 Infant mortality, deaths/1,000 live births* .............. 14.7 ............74 Life expectancy, years*......................................... 74.4 ............67 Quality of primary education ................................... 3.7 ............83 Primary education enrollment, net %* .................. 84.1 ..........120 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 95.9 ............51 Tertiary education enrollment, gross %*................ 46.0 ............59 Quality of the education system ............................. 3.5 ............86 Quality of math and science education .................. 4.2 ............69 Quality of management schools ............................. 3.5 ..........116 Internet access in schools ...................................... 4.3 ............68 Availability of research and training services ........... 3.3 ..........120 Extent of staff training ............................................ 3.4 ..........119 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 2 ..............3 No. days to start a business* ................................. 4.0 ..............9 Agricultural policy costs.......................................... 3.7 ............79 Prevalence of trade barriers ................................... 4.3 ............80 Trade tariffs, % duty* .............................................. 2.8 ............41 Prevalence of foreign ownership............................. 4.3 ............95 Business impact of rules on FDI ............................. 3.8 ..........110 Burden of customs procedures .............................. 3.4 ..........108 Imports as a percentage of GDP* ........................ 53.5 ............56 Degree of customer orientation .............................. 4.6 ............66 Buyer sophistication ............................................... 3.4 ............77 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.7 ............42 Flexibility of wage determination ............................. 5.1 ............65 Hiring and firing practices ....................................... 4.5 ............18 Redundancy costs, weeks of salary* .................... 11.0 ............47 Effect of taxation on incentives to work .................. 3.4 ............94 Pay and productivity............................................... 4.2 ............48 Reliance on professional management ................... 3.8 ............95 Country capacity to retain talent............................. 2.6 ..........123 Country capacity to attract talent ........................... 2.5 ..........119 Women in labor force, ratio to men* ..................... 0.72 ............96 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.3 ............75 Affordability of financial services ............................. 4.0 ............81 Financing through local equity market .................... 2.5 ..........112 Ease of access to loans ......................................... 2.5 ............97 Venture capital availability ....................................... 2.4 ............96 Soundness of banks .............................................. 4.9 ............66 Regulation of securities exchanges ........................ 3.3 ..........112 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.4 ............95 Firm-level technology absorption ............................ 4.1 ..........113 FDI and technology transfer ................................... 4.5 ............79 Individuals using Internet, %* ............................... 46.3 ............71 Fixed broadband Internet subscriptions/100 pop.* ... 7.9 ............70 Int’l Internet bandwidth, kb/s per user* ................ 55.1 ............48 Mobile broadband subscriptions/100 pop.*.......... 31.0 ............67 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.6 ..........111 Foreign market size index, 1–7 (best)* .................... 3.2 ..........126 GDP (PPP$ billions)* ............................................ 20.4 ..........118 Exports as a percentage of GDP* ........................ 21.9 ..........127 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............79 Local supplier quality.............................................. 4.1 ............86 State of cluster development.................................. 3.2 ..........113 Nature of competitive advantage ............................ 3.7 ............57 Value chain breadth................................................ 3.6 ............94 Control of international distribution ......................... 3.8 ............95 Production process sophistication.......................... 3.5 ............91 Extent of marketing ................................................ 3.7 ..........109 Willingness to delegate authority ............................ 3.4 ..........106 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............98 Quality of scientific research institutions ................. 3.1 ..........105 Company spending on R&D................................... 2.8 ..........102 University-industry collaboration in R&D ................. 3.1 ..........112 Gov’t procurement of advanced tech products ...... 2.9 ..........121 Availability of scientists and engineers .................... 4.0 ............75 PCT patents, applications/million pop.* .................. 3.2 ............53 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............85 Extent of market dominance .................................. 3.5 ............93 Effectiveness of anti-monopoly policy ..................... 3.6 ..........105 Effect of taxation on incentives to invest................. 3.3 ..........105 Total tax rate, % profits* ....................................... 38.8 ............73 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 113 2.1: Country/Economy Profiles Australia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 23.2 GDP (US$ billions) ..................................... 1,505.3 GDP per capita (US$) ................................. 64,863 GDP (PPP) as share (%) of world total ............ 1.15 Australia 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 22 ..... 5.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 21 ......5.1 GCI 2012–2013 (out of 144) ..................................... 20 ......5.1 GCI 2011–2012 (out of 142) ..................................... 20 ......5.1 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................17 ......5.7 7 Innovation Institutions ................................................................ 19 ......5.1 Infrastructure ............................................................ 20 ......5.6 Macroeconomic environment ................................... 30 ......5.6 Health and primary education ................................... 17 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................15 ......5.2 Market size Higher education and training ................................... 11 ......5.7 Goods market efficiency .......................................... 29 ......4.8 Labor market efficiency ............................................ 56 ......4.3 Financial market development .................................... 6 ......5.4 Technological readiness ............................................ 19 ......5.6 Market size ............................................................... 18 ......5.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........26 ......4.6 Business sophistication ........................................... 28 ......4.7 Innovation ................................................................. 25 ......4.4 Australia Advanced economies The most problematic factors for doing business Restrictive labor regulations ...............................................25.4 Tax rates............................................................................11.1 Inefficient government bureaucracy ...................................10.7 Inadequate supply of infrastructure ....................................10.1 Tax regulations ..................................................................10.0 Poor work ethic in national labor force ................................9.2 Policy instability ...................................................................5.9 Insufficient capacity to innovate ...........................................5.3 Access to financing .............................................................5.2 Inadequately educated workforce ........................................3.7 Foreign currency regulations ................................................1.5 Inflation ................................................................................1.1 Government instability/coups ..............................................0.5 Corruption ...........................................................................0.1 Crime and theft ...................................................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 114 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Australia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.5 ............22 Intellectual property protection ............................... 5.5 ............17 Diversion of public funds ........................................ 5.3 ............17 Public trust in politicians ......................................... 4.1 ............25 Irregular payments and bribes ................................ 5.9 ............16 Judicial independence............................................ 5.9 ............14 Favoritism in decisions of government officials ....... 3.9 ............29 Wastefulness of government spending ................... 3.5 ............51 Burden of government regulation ........................... 2.8 ..........124 Efficiency of legal framework in settling disputes .... 4.8 ............26 Efficiency of legal framework in challenging regs. ... 4.1 ............26 Transparency of government policymaking............. 4.3 ............51 Business costs of terrorism .................................... 5.8 ............43 Business costs of crime and violence..................... 5.5 ............25 Organized crime ..................................................... 5.9 ............23 Reliability of police services .................................... 6.1 ............14 Ethical behavior of firms ......................................... 5.6 ............15 Strength of auditing and reporting standards ......... 5.9 ............15 Efficacy of corporate boards .................................. 5.7 ..............8 Protection of minority shareholders’ interests ......... 5.0 ............21 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.1 ............35 Quality of roads ...................................................... 4.8 ............43 Quality of railroad infrastructure .............................. 4.0 ............32 Quality of port infrastructure ................................... 5.0 ............38 Quality of air transport infrastructure....................... 5.5 ............29 Available airline seat km/week, millions* .......... 4,467.2 ..............7 Quality of electricity supply ..................................... 6.2 ............27 Mobile telephone subscriptions/100 pop.* ......... 106.8 ............81 Fixed telephone lines/100 pop.* ........................... 44.3 ............16 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.7 ............86 Gross national savings, % GDP* .......................... 24.7 ............42 Inflation, annual % change* .................................... 2.5 ..............1 General government debt, % GDP* ..................... 28.8 ............31 Country credit rating, 0–100 (best)* ...................... 88.4 ............12 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 6.5 ............15 Business impact of tuberculosis ............................. 6.7 ............14 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 6.4 ............23 Infant mortality, deaths/1,000 live births* ................ 4.1 ............28 Life expectancy, years*......................................... 82.1 ..............9 Quality of primary education ................................... 5.1 ............21 Primary education enrollment, net %* .................. 96.8 ............47 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 135.5 ..............1 Tertiary education enrollment, gross %*................ 86.3 ..............6 Quality of the education system ............................. 4.8 ............19 Quality of math and science education .................. 4.6 ............38 Quality of management schools ............................. 5.1 ............27 Internet access in schools ...................................... 6.2 ............11 Availability of research and training services ........... 5.2 ............23 Extent of staff training ............................................ 4.5 ............30 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ................................. 2.5 ..............5 Agricultural policy costs.......................................... 4.5 ............16 Prevalence of trade barriers ................................... 4.5 ............48 Trade tariffs, % duty* .............................................. 2.3 ............38 Prevalence of foreign ownership............................. 5.7 ............11 Business impact of rules on FDI ............................. 4.6 ............50 Burden of customs procedures .............................. 5.2 ............21 Imports as a percentage of GDP* ........................ 20.2 ..........136 Degree of customer orientation .............................. 4.9 ............46 Buyer sophistication ............................................... 3.7 ............48 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.9 ..........109 Flexibility of wage determination ............................. 3.7 ..........132 Hiring and firing practices ....................................... 2.7 ..........136 Redundancy costs, weeks of salary* .................... 11.7 ............50 Effect of taxation on incentives to work .................. 3.5 ............80 Pay and productivity............................................... 3.2 ..........125 Reliance on professional management ................... 5.6 ............13 Country capacity to retain talent............................. 4.2 ............28 Country capacity to attract talent ........................... 4.8 ............16 Women in labor force, ratio to men* ..................... 0.85 ............54 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.6 ............19 Affordability of financial services ............................. 5.2 ............25 Financing through local equity market .................... 4.8 ............14 Ease of access to loans ......................................... 3.3 ............38 Venture capital availability ....................................... 3.4 ............29 Soundness of banks .............................................. 6.6 ..............3 Regulation of securities exchanges ........................ 5.5 ............11 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.0 ............24 Firm-level technology absorption ............................ 5.6 ............23 FDI and technology transfer ................................... 5.1 ............21 Individuals using Internet, %* ............................... 83.0 ............18 Fixed broadband Internet subscriptions/100 pop.* . 25.0 ............26 Int’l Internet bandwidth, kb/s per user* ................ 67.1 ............39 Mobile broadband subscriptions/100 pop.*........ 110.5 ..............4 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.1 ............17 Foreign market size index, 1–7 (best)* .................... 5.4 ............32 GDP (PPP$ billions)* .......................................... 999.6 ............17 Exports as a percentage of GDP* ........................ 20.3 ..........129 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............39 Local supplier quality.............................................. 5.3 ............21 State of cluster development.................................. 4.2 ............43 Nature of competitive advantage ............................ 4.6 ............28 Value chain breadth................................................ 3.6 ............95 Control of international distribution ......................... 4.1 ............56 Production process sophistication.......................... 4.9 ............29 Extent of marketing ................................................ 5.4 ............16 Willingness to delegate authority ............................ 4.9 ............17 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.6 ............27 Quality of scientific research institutions ................. 5.8 ..............9 Company spending on R&D................................... 3.6 ............39 University-industry collaboration in R&D ................. 4.8 ............21 Gov’t procurement of advanced tech products ...... 3.4 ............73 Availability of scientists and engineers .................... 4.7 ............27 PCT patents, applications/million pop.* ................ 78.4 ............21 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 6.0 ..............8 Extent of market dominance .................................. 4.2 ............40 Effectiveness of anti-monopoly policy ..................... 4.6 ............33 Effect of taxation on incentives to invest................. 3.7 ............74 Total tax rate, % profits* ....................................... 47.0 ..........104 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 115 2.1: Country/Economy Profiles Austria Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 8.5 GDP (US$ billions) ........................................ 415.4 GDP per capita (US$) ................................. 48,957 GDP (PPP) as share (%) of world total ............ 0.42 Austria 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 21 ..... 5.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 16 ......5.2 GCI 2012–2013 (out of 144) ..................................... 16 ......5.2 GCI 2011–2012 (out of 142) ..................................... 19 ......5.1 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................16 ......5.7 7 Innovation Institutions ................................................................ 22 ......5.1 Infrastructure ............................................................ 13 ......5.8 Macroeconomic environment ................................... 33 ......5.5 Health and primary education ................................... 19 ......6.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................23 ......5.0 Market size Higher education and training ................................... 15 ......5.6 Goods market efficiency .......................................... 22 ......5.0 Labor market efficiency ............................................ 43 ......4.5 Financial market development .................................. 43 ......4.5 Technological readiness ............................................ 18 ......5.7 Market size ............................................................... 37 ......4.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........14 ......5.1 Business sophistication ............................................. 7 ......5.4 Innovation ................................................................. 18 ......4.8 Austria Advanced economies The most problematic factors for doing business Tax rates............................................................................20.8 Restrictive labor regulations ...............................................17.9 Inefficient government bureaucracy ...................................14.9 Tax regulations ..................................................................14.3 Access to financing .............................................................9.1 Policy instability ...................................................................7.0 Inadequately educated workforce ........................................5.9 Insufficient capacity to innovate ...........................................3.7 Inadequate supply of infrastructure ......................................1.7 Poor work ethic in national labor force ................................1.1 Corruption ...........................................................................0.9 Inflation ................................................................................0.9 Crime and theft ...................................................................0.5 Foreign currency regulations ................................................0.5 Government instability/coups ..............................................0.5 Poor public health ...............................................................0.5 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 116 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Austria The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.8 ............15 Intellectual property protection ............................... 5.5 ............16 Diversion of public funds ........................................ 4.6 ............31 Public trust in politicians ......................................... 3.7 ............36 Irregular payments and bribes ................................ 5.5 ............26 Judicial independence............................................ 5.2 ............28 Favoritism in decisions of government officials ....... 4.0 ............28 Wastefulness of government spending ................... 3.4 ............53 Burden of government regulation ........................... 3.4 ............83 Efficiency of legal framework in settling disputes .... 4.9 ............24 Efficiency of legal framework in challenging regs. ... 4.1 ............29 Transparency of government policymaking............. 4.8 ............21 Business costs of terrorism .................................... 6.5 ..............6 Business costs of crime and violence..................... 6.1 ..............8 Organized crime ..................................................... 6.5 ..............8 Reliability of police services .................................... 5.9 ............18 Ethical behavior of firms ......................................... 5.5 ............20 Strength of auditing and reporting standards ......... 5.7 ............21 Efficacy of corporate boards .................................. 5.2 ............27 Protection of minority shareholders’ interests ......... 4.8 ............31 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.2 ..............7 Quality of roads ...................................................... 6.3 ..............3 Quality of railroad infrastructure .............................. 5.3 ............11 Quality of port infrastructure ................................... 4.4 ............60 Quality of air transport infrastructure....................... 5.4 ............33 Available airline seat km/week, millions* ............. 455.3 ............45 Quality of electricity supply ..................................... 6.6 ..............7 Mobile telephone subscriptions/100 pop.* ......... 156.2 ............16 Fixed telephone lines/100 pop.* ........................... 39.4 ............25 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.8 ............48 Gross national savings, % GDP* .......................... 24.6 ............43 Inflation, annual % change* .................................... 2.1 ..............1 General government debt, % GDP* ..................... 74.2 ..........116 Country credit rating, 0–100 (best)* ...................... 87.5 ............14 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 7.9 ............26 Business impact of tuberculosis ............................. 6.8 ..............5 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 6.7 ..............7 Infant mortality, deaths/1,000 live births* ................ 3.3 ............16 Life expectancy, years*......................................... 80.9 ............19 Quality of primary education ................................... 5.0 ............27 Primary education enrollment, net %* .................. 98.4 ............23 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 97.7 ............44 Tertiary education enrollment, gross %*................ 72.4 ............24 Quality of the education system ............................. 4.5 ............31 Quality of math and science education .................. 4.6 ............37 Quality of management schools ............................. 4.6 ............47 Internet access in schools ...................................... 5.6 ............29 Availability of research and training services ........... 5.9 ..............5 Extent of staff training ............................................ 4.8 ............19 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 25.0 ..........101 Agricultural policy costs.......................................... 4.2 ............29 Prevalence of trade barriers ................................... 4.5 ............47 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.9 ............50 Business impact of rules on FDI ............................. 4.6 ............57 Burden of customs procedures .............................. 5.2 ............19 Imports as a percentage of GDP* ........................ 54.6 ............52 Degree of customer orientation .............................. 5.8 ..............3 Buyer sophistication ............................................... 4.0 ............27 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.4 ............12 Flexibility of wage determination ............................. 2.5 ..........142 Hiring and firing practices ....................................... 3.5 ..........101 Redundancy costs, weeks of salary* ...................... 2.0 ..............5 Effect of taxation on incentives to work .................. 2.9 ..........121 Pay and productivity............................................... 3.9 ............72 Reliance on professional management ................... 5.3 ............26 Country capacity to retain talent............................. 4.4 ............25 Country capacity to attract talent ........................... 4.1 ............29 Women in labor force, ratio to men* ..................... 0.87 ............47 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.4 ............24 Affordability of financial services ............................. 5.3 ............23 Financing through local equity market .................... 3.8 ............50 Ease of access to loans ......................................... 2.9 ............66 Venture capital availability ....................................... 2.7 ............70 Soundness of banks .............................................. 5.0 ............61 Regulation of securities exchanges ........................ 4.4 ............55 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.0 ............23 Firm-level technology absorption ............................ 5.7 ............17 FDI and technology transfer ................................... 4.6 ............67 Individuals using Internet, %* ............................... 80.6 ............22 Fixed broadband Internet subscriptions/100 pop.* . 26.0 ............22 Int’l Internet bandwidth, kb/s per user* .............. 128.5 ............21 Mobile broadband subscriptions/100 pop.*.......... 62.8 ............26 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.4 ............39 Foreign market size index, 1–7 (best)* .................... 5.4 ............30 GDP (PPP$ billions)* .......................................... 361.4 ............37 Exports as a percentage of GDP* ........................ 57.6 ............35 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.3 ............15 Local supplier quality.............................................. 6.0 ..............3 State of cluster development.................................. 4.9 ............16 Nature of competitive advantage ............................ 6.0 ............10 Value chain breadth................................................ 5.5 ..............4 Control of international distribution ......................... 5.0 ..............9 Production process sophistication.......................... 5.9 ............11 Extent of marketing ................................................ 5.5 ............11 Willingness to delegate authority ............................ 4.7 ............23 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.0 ............19 Quality of scientific research institutions ................. 5.0 ............24 Company spending on R&D................................... 4.8 ............12 University-industry collaboration in R&D ................. 4.7 ............24 Gov’t procurement of advanced tech products ...... 3.7 ............54 Availability of scientists and engineers .................... 4.3 ............53 PCT patents, applications/million pop.* .............. 166.3 ............10 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.8 ............15 Extent of market dominance .................................. 5.5 ..............4 Effectiveness of anti-monopoly policy ..................... 4.8 ............21 Effect of taxation on incentives to invest................. 3.6 ............75 Total tax rate, % profits* ....................................... 52.4 ..........121 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 117 2.1: Country/Economy Profiles Azerbaijan Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 9.3 GDP (US$ billions) .......................................... 73.5 GDP per capita (US$) ................................... 7,900 GDP (PPP) as share (%) of world total ............ 0.12 Azerbaijan 15,000 Commonwealth of Independent States 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 38 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 39 ......4.5 GCI 2012–2013 (out of 144) ..................................... 46 ......4.4 GCI 2011–2012 (out of 142) ..................................... 55 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (56.3%) .......................................45 ......4.9 Innovation Institutions ................................................................ 60 ......4.0 Infrastructure ............................................................ 70 ......4.1 Macroeconomic environment ..................................... 9 ......6.4 Health and primary education ................................. 104 ......5.2 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (37.8%) .....................................71 ......4.1 Market size Higher education and training ................................... 90 ......3.9 Goods market efficiency .......................................... 72 ......4.3 Labor market efficiency ............................................ 33 ......4.6 Financial market development .................................. 89 ......3.8 Technological readiness ............................................ 56 ......4.3 Market size ............................................................... 72 ......3.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.9%) .............72 ......3.6 Business sophistication ........................................... 80 ......3.9 Innovation ................................................................. 59 ......3.3 Azerbaijan Commonwealth of Independent States The most problematic factors for doing business Corruption .........................................................................19.9 Access to financing ...........................................................14.6 Tax rates............................................................................11.8 Inadequately educated workforce ......................................11.3 Inadequate supply of infrastructure ....................................10.1 Insufficient capacity to innovate ...........................................7.2 Poor work ethic in national labor force ................................6.6 Inefficient government bureaucracy .....................................4.8 Tax regulations ....................................................................4.6 Restrictive labor regulations .................................................2.2 Inflation ................................................................................2.0 Poor public health ...............................................................1.8 Crime and theft ...................................................................1.2 Foreign currency regulations ................................................1.1 Government instability/coups ..............................................0.5 Policy instability ...................................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 118 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Azerbaijan The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.8 ............91 Intellectual property protection ............................... 3.5 ............80 Diversion of public funds ........................................ 3.1 ............77 Public trust in politicians ......................................... 3.4 ............46 Irregular payments and bribes ................................ 3.6 ............85 Judicial independence............................................ 3.2 ............99 Favoritism in decisions of government officials ....... 3.3 ............55 Wastefulness of government spending ................... 3.5 ............52 Burden of government regulation ........................... 3.9 ............32 Efficiency of legal framework in settling disputes .... 3.8 ............60 Efficiency of legal framework in challenging regs. ... 3.5 ............51 Transparency of government policymaking............. 4.3 ............48 Business costs of terrorism .................................... 5.7 ............48 Business costs of crime and violence..................... 5.7 ............15 Organized crime ..................................................... 5.5 ............40 Reliability of police services .................................... 4.1 ............71 Ethical behavior of firms ......................................... 4.0 ............64 Strength of auditing and reporting standards ......... 4.2 ............95 Efficacy of corporate boards .................................. 4.4 ............82 Protection of minority shareholders’ interests ......... 3.9 ............88 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.8 ............47 Quality of roads ...................................................... 4.0 ............69 Quality of railroad infrastructure .............................. 3.8 ............37 Quality of port infrastructure ................................... 4.3 ............63 Quality of air transport infrastructure....................... 5.0 ............44 Available airline seat km/week, millions* ............... 91.8 ............85 Quality of electricity supply ..................................... 4.9 ............70 Mobile telephone subscriptions/100 pop.* ......... 107.6 ............79 Fixed telephone lines/100 pop.* ........................... 18.7 ............62 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.8 ............15 Gross national savings, % GDP* .......................... 43.4 ..............9 Inflation, annual % change* .................................... 2.4 ..............1 General government debt, % GDP* ..................... 13.8 ............12 Country credit rating, 0–100 (best)* ...................... 51.1 ............70 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.0 ..............8 Business impact of malaria .................................... 5.8 ............14 Tuberculosis cases/100,000 pop.* ....................... 95.0 ............92 Business impact of tuberculosis ............................. 5.4 ............81 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 5.6 ............69 Infant mortality, deaths/1,000 live births* .............. 30.8 ..........102 Life expectancy, years*......................................... 70.6 ............93 Quality of primary education ................................... 3.1 ..........106 Primary education enrollment, net %* .................. 89.1 ..........104 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 100.3 ............35 Tertiary education enrollment, gross %*................ 20.4 ............91 Quality of the education system ............................. 3.1 ..........104 Quality of math and science education .................. 3.3 ..........108 Quality of management schools ............................. 3.3 ..........124 Internet access in schools ...................................... 4.3 ............69 Availability of research and training services ........... 4.0 ............79 Extent of staff training ............................................ 3.7 ............94 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ................................. 7.0 ............36 Agricultural policy costs.......................................... 3.7 ............83 Prevalence of trade barriers ................................... 4.4 ............68 Trade tariffs, % duty* .............................................. 7.5 ............87 Prevalence of foreign ownership............................. 3.8 ..........115 Business impact of rules on FDI ............................. 4.3 ............81 Burden of customs procedures .............................. 3.2 ..........122 Imports as a percentage of GDP* ........................ 26.6 ..........126 Degree of customer orientation .............................. 4.6 ............69 Buyer sophistication ............................................... 4.0 ............30 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............66 Flexibility of wage determination ............................. 5.4 ............40 Hiring and firing practices ....................................... 4.4 ............25 Redundancy costs, weeks of salary* .................... 21.7 ..........101 Effect of taxation on incentives to work .................. 3.4 ............87 Pay and productivity............................................... 4.4 ............34 Reliance on professional management ................... 3.8 ............96 Country capacity to retain talent............................. 3.5 ............61 Country capacity to attract talent ........................... 4.0 ............34 Women in labor force, ratio to men* ..................... 0.93 ............20 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............92 Affordability of financial services ............................. 4.1 ............77 Financing through local equity market .................... 3.1 ............90 Ease of access to loans ......................................... 2.7 ............79 Venture capital availability ....................................... 2.7 ............64 Soundness of banks .............................................. 4.3 ..........100 Regulation of securities exchanges ........................ 3.7 ............93 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.0 ............63 Firm-level technology absorption ............................ 4.7 ............64 FDI and technology transfer ................................... 4.7 ............63 Individuals using Internet, %* ............................... 58.7 ............55 Fixed broadband Internet subscriptions/100 pop.* . 17.0 ............42 Int’l Internet bandwidth, kb/s per user* ................ 45.2 ............58 Mobile broadband subscriptions/100 pop.*.......... 43.9 ............47 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.4 ............75 Foreign market size index, 1–7 (best)* .................... 4.6 ............70 GDP (PPP$ billions)* .......................................... 102.8 ............70 Exports as a percentage of GDP* ........................ 48.5 ............48 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.4 ............90 Local supplier quality.............................................. 4.1 ............87 State of cluster development.................................. 3.4 ............99 Nature of competitive advantage ............................ 3.1 ..........105 Value chain breadth................................................ 3.7 ............75 Control of international distribution ......................... 4.1 ............65 Production process sophistication.......................... 4.0 ............61 Extent of marketing ................................................ 4.3 ............66 Willingness to delegate authority ............................ 3.6 ............79 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.1 ............43 Quality of scientific research institutions ................. 3.4 ............87 Company spending on R&D................................... 3.2 ............60 University-industry collaboration in R&D ................. 3.2 ..........104 Gov’t procurement of advanced tech products ...... 4.2 ............18 Availability of scientists and engineers .................... 4.2 ............63 PCT patents, applications/million pop.* .................. 0.6 ............75 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.3 ..........121 Extent of market dominance .................................. 3.5 ............91 Effectiveness of anti-monopoly policy ..................... 3.2 ..........130 Effect of taxation on incentives to invest................. 3.6 ............82 Total tax rate, % profits* ....................................... 40.0 ............77 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 119 2.1: Country/Economy Profiles Bahrain Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 1.2 GDP (US$ billions) .......................................... 32.2 GDP per capita (US$) ................................. 27,435 GDP (PPP) as share (%) of world total ............ 0.05 Bahrain 50,000 Middle East, North Africa, and Pakistan 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 44 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 43 ......4.5 GCI 2012–2013 (out of 144) ..................................... 35 ......4.6 GCI 2011–2012 (out of 142) ..................................... 37 ......4.5 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (20.6%) .......................................29 ......5.3 Innovation Institutions ................................................................ 29 ......4.7 Infrastructure ............................................................ 31 ......5.2 Macroeconomic environment ................................... 47 ......5.2 Health and primary education ................................... 40 ......6.2 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................40 ......4.5 Market size Higher education and training ................................... 55 ......4.7 Goods market efficiency .......................................... 21 ......5.0 Labor market efficiency ............................................ 26 ......4.7 Financial market development .................................. 31 ......4.7 Technological readiness ............................................ 34 ......5.0 Market size ............................................................... 99 ......3.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (29.4%) ...........55 ......3.8 Business sophistication ........................................... 45 ......4.3 Innovation ................................................................. 60 ......3.3 Bahrain Middle East, North Africa, and Pakistan The most problematic factors for doing business Inefficient government bureaucracy ...................................16.0 Restrictive labor regulations ...............................................15.1 Insufficient capacity to innovate .........................................13.3 Inadequately educated workforce ......................................12.0 Inadequate supply of infrastructure ......................................9.7 Access to financing .............................................................9.4 Poor work ethic in national labor force ................................7.9 Policy instability ...................................................................6.5 Corruption ...........................................................................4.3 Government instability/coups ..............................................2.8 Crime and theft ...................................................................1.4 Poor public health ...............................................................0.8 Inflation ................................................................................0.3 Tax regulations ....................................................................0.3 Foreign currency regulations ................................................0.2 Tax rates..............................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 120 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Bahrain The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.2 ............29 Intellectual property protection ............................... 4.7 ............31 Diversion of public funds ........................................ 4.4 ............35 Public trust in politicians ......................................... 4.0 ............28 Irregular payments and bribes ................................ 5.4 ............28 Judicial independence............................................ 4.4 ............47 Favoritism in decisions of government officials ....... 4.0 ............26 Wastefulness of government spending ................... 4.3 ............17 Burden of government regulation ........................... 4.3 ............11 Efficiency of legal framework in settling disputes .... 4.2 ............40 Efficiency of legal framework in challenging regs. ... 3.8 ............39 Transparency of government policymaking............. 4.7 ............26 Business costs of terrorism .................................... 4.1 ..........120 Business costs of crime and violence..................... 4.5 ............68 Organized crime ..................................................... 6.3 ............14 Reliability of police services .................................... 5.0 ............36 Ethical behavior of firms ......................................... 5.0 ............27 Strength of auditing and reporting standards ......... 5.8 ............17 Efficacy of corporate boards .................................. 4.9 ............45 Protection of minority shareholders’ interests ......... 5.1 ............19 Strength of investor protection, 0–10 (best)* .......... 4.7 ............98 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.6 ............21 Quality of roads ...................................................... 5.4 ............22 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 5.7 ............15 Quality of air transport infrastructure....................... 5.2 ............39 Available airline seat km/week, millions* ............. 155.9 ............71 Quality of electricity supply ..................................... 6.2 ............31 Mobile telephone subscriptions/100 pop.* ......... 165.9 ..............8 Fixed telephone lines/100 pop.* ........................... 21.8 ............53 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.4 ............98 Gross national savings, % GDP* .......................... 28.4 ............29 Inflation, annual % change* .................................... 3.3 ............67 General government debt, % GDP* ..................... 43.9 ............74 Country credit rating, 0–100 (best)* ...................... 57.0 ............56 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 20.0 ............45 Business impact of tuberculosis ............................. 5.9 ............58 HIV prevalence, % adult pop.* ............................. <0.2 ..............1 Business impact of HIV/AIDS ................................. 5.9 ............56 Infant mortality, deaths/1,000 live births* ................ 8.2 ............50 Life expectancy, years*......................................... 76.5 ............46 Quality of primary education ................................... 4.5 ............47 Primary education enrollment, net %* .................. 96.5 ............51 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 95.5 ............53 Tertiary education enrollment, gross %*................ 33.5 ............76 Quality of the education system ............................. 4.3 ............38 Quality of math and science education .................. 4.3 ............58 Quality of management schools ............................. 4.4 ............59 Internet access in schools ...................................... 5.2 ............39 Availability of research and training services ........... 4.5 ............42 Extent of staff training ............................................ 4.5 ............29 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ................................. 9.0 ............50 Agricultural policy costs.......................................... 4.1 ............37 Prevalence of trade barriers ................................... 4.9 ............18 Trade tariffs, % duty* .............................................. 4.1 ............56 Prevalence of foreign ownership............................. 5.4 ............22 Business impact of rules on FDI ............................. 5.5 ............12 Burden of customs procedures .............................. 4.7 ............39 Imports as a percentage of GDP* ........................ 47.1 ............73 Degree of customer orientation .............................. 4.8 ............52 Buyer sophistication ............................................... 4.0 ............25 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.1 ............20 Flexibility of wage determination ............................. 5.8 ............12 Hiring and firing practices ....................................... 4.3 ............30 Redundancy costs, weeks of salary* ...................... 4.3 ..............8 Effect of taxation on incentives to work .................. 6.3 ..............1 Pay and productivity............................................... 4.6 ............20 Reliance on professional management ................... 4.5 ............53 Country capacity to retain talent............................. 4.7 ............18 Country capacity to attract talent ........................... 5.1 ............11 Women in labor force, ratio to men* ..................... 0.46 ..........129 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.7 ............15 Affordability of financial services ............................. 5.5 ............15 Financing through local equity market .................... 4.1 ............36 Ease of access to loans ......................................... 4.2 ..............8 Venture capital availability ....................................... 3.6 ............18 Soundness of banks .............................................. 5.8 ............28 Regulation of securities exchanges ........................ 5.4 ............16 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.9 ............26 Firm-level technology absorption ............................ 5.3 ............34 FDI and technology transfer ................................... 5.0 ............30 Individuals using Internet, %* ............................... 90.0 ..............8 Fixed broadband Internet subscriptions/100 pop.* . 13.2 ............53 Int’l Internet bandwidth, kb/s per user* ................ 25.9 ............74 Mobile broadband subscriptions/100 pop.*........ 109.7 ..............5 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.7 ..........107 Foreign market size index, 1–7 (best)* .................... 4.3 ............77 GDP (PPP$ billions)* ............................................ 40.6 ............94 Exports as a percentage of GDP* ........................ 74.4 ............20 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............56 Local supplier quality.............................................. 4.6 ............56 State of cluster development.................................. 4.3 ............33 Nature of competitive advantage ............................ 3.7 ............61 Value chain breadth................................................ 4.0 ............51 Control of international distribution ......................... 4.8 ............14 Production process sophistication.......................... 4.3 ............43 Extent of marketing ................................................ 4.7 ............38 Willingness to delegate authority ............................ 4.0 ............47 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.8 ............65 Quality of scientific research institutions ................. 3.2 ..........102 Company spending on R&D................................... 3.0 ............85 University-industry collaboration in R&D ................. 3.3 ............90 Gov’t procurement of advanced tech products ...... 4.1 ............23 Availability of scientists and engineers .................... 4.2 ............58 PCT patents, applications/million pop.* .................. 1.1 ............69 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............46 Extent of market dominance .................................. 3.9 ............57 Effectiveness of anti-monopoly policy ..................... 4.6 ............31 Effect of taxation on incentives to invest................. 6.5 ..............1 Total tax rate, % profits* ....................................... 13.5 ..............5 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 121 2.1: Country/Economy Profiles Bangladesh Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ...................................... 156.3 GDP (US$ billions) ........................................ 141.3 GDP per capita (US$) ...................................... 904 GDP (PPP) as share (%) of world total ............ 0.37 Bangladesh 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 1994 Emerging and Developing Asia 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 109 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 110 ......3.7 GCI 2012–2013 (out of 144) ................................... 118 ......3.6 GCI 2011–2012 (out of 142) ................................... 108 ......3.7 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................113 ......3.8 7 Innovation Institutions .............................................................. 131 ......3.0 Infrastructure .......................................................... 127 ......2.4 Macroeconomic environment ................................... 72 ......4.7 Health and primary education ................................. 102 ......5.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................103 ......3.6 Market size Higher education and training ................................. 125 ......2.9 Goods market efficiency .......................................... 84 ......4.2 Labor market efficiency .......................................... 124 ......3.7 Financial market development .................................. 88 ......3.8 Technological readiness .......................................... 126 ......2.7 Market size ............................................................... 44 ......4.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........122 ......3.0 Business sophistication ......................................... 118 ......3.5 Innovation ............................................................... 129 ......2.6 Bangladesh Emerging and Developing Asia The most problematic factors for doing business Inadequate supply of infrastructure ....................................21.0 Corruption .........................................................................20.7 Inefficient government bureaucracy ...................................15.3 Government instability/coups ..............................................9.3 Access to financing .............................................................7.5 Policy instability ...................................................................5.7 Inadequately educated workforce ........................................4.3 Crime and theft ...................................................................3.2 Tax regulations ....................................................................2.9 Inflation ................................................................................2.7 Foreign currency regulations ................................................2.5 Tax rates..............................................................................2.5 Poor work ethic in national labor force ................................1.4 Insufficient capacity to innovate ...........................................0.4 Poor public health ...............................................................0.4 Restrictive labor regulations .................................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 122 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Bangladesh The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.3 ..........123 Intellectual property protection ............................... 2.5 ..........133 Diversion of public funds ........................................ 2.6 ..........106 Public trust in politicians ......................................... 1.8 ..........136 Irregular payments and bribes ................................ 2.3 ..........140 Judicial independence............................................ 2.2 ..........132 Favoritism in decisions of government officials ....... 2.2 ..........131 Wastefulness of government spending ................... 2.6 ..........107 Burden of government regulation ........................... 3.0 ..........109 Efficiency of legal framework in settling disputes .... 2.9 ..........123 Efficiency of legal framework in challenging regs. ... 2.9 ..........102 Transparency of government policymaking............. 3.5 ..........114 Business costs of terrorism .................................... 4.4 ..........114 Business costs of crime and violence..................... 3.5 ..........116 Organized crime ..................................................... 4.3 ............97 Reliability of police services .................................... 2.6 ..........138 Ethical behavior of firms ......................................... 2.9 ..........140 Strength of auditing and reporting standards ......... 3.4 ..........133 Efficacy of corporate boards .................................. 3.8 ..........132 Protection of minority shareholders’ interests ......... 3.0 ..........133 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.8 ..........130 Quality of roads ...................................................... 2.9 ..........117 Quality of railroad infrastructure .............................. 2.4 ............75 Quality of port infrastructure ................................... 3.7 ............93 Quality of air transport infrastructure....................... 3.0 ..........127 Available airline seat km/week, millions* ............. 236.1 ............59 Quality of electricity supply ..................................... 2.5 ..........124 Mobile telephone subscriptions/100 pop.* ........... 67.1 ..........128 Fixed telephone lines/100 pop.* ............................. 0.7 ..........131 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.0 ............90 Gross national savings, % GDP* .......................... 28.2 ............31 Inflation, annual % change* .................................... 7.5 ..........123 General government debt, % GDP* ..................... 39.7 ............62 Country credit rating, 0–100 (best)* ...................... 30.4 ..........108 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................. 394.3 ............41 Business impact of malaria .................................... 5.6 ............19 Tuberculosis cases/100,000 pop.* ..................... 225.0 ..........122 Business impact of tuberculosis ............................. 5.5 ............76 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.0 ............50 Infant mortality, deaths/1,000 live births* .............. 33.1 ..........104 Life expectancy, years*......................................... 70.3 ............96 Quality of primary education ................................... 3.1 ..........108 Primary education enrollment, net %* .................. 91.5 ............92 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 53.6 ..........118 Tertiary education enrollment, gross %*................ 13.2 ..........104 Quality of the education system ............................. 3.3 ............95 Quality of math and science education .................. 3.4 ..........106 Quality of management schools ............................. 3.7 ..........105 Internet access in schools ...................................... 3.1 ..........120 Availability of research and training services ........... 3.1 ..........129 Extent of staff training ............................................ 3.2 ..........131 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 10.5 ............56 Agricultural policy costs.......................................... 4.4 ............20 Prevalence of trade barriers ................................... 4.7 ............29 Trade tariffs, % duty* ............................................ 13.7 ..........129 Prevalence of foreign ownership............................. 3.7 ..........118 Business impact of rules on FDI ............................. 4.7 ............46 Burden of customs procedures .............................. 3.5 ..........105 Imports as a percentage of GDP* ........................ 30.1 ..........118 Degree of customer orientation .............................. 4.0 ..........109 Buyer sophistication ............................................... 3.5 ............62 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ..........104 Flexibility of wage determination ............................. 4.8 ............85 Hiring and firing practices ....................................... 4.4 ............28 Redundancy costs, weeks of salary* .................... 31.0 ..........131 Effect of taxation on incentives to work .................. 3.6 ............79 Pay and productivity............................................... 3.5 ..........103 Reliance on professional management ................... 3.6 ..........110 Country capacity to retain talent............................. 2.7 ..........115 Country capacity to attract talent ........................... 2.4 ..........126 Women in labor force, ratio to men* ..................... 0.70 ............98 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............95 Affordability of financial services ............................. 3.9 ............89 Financing through local equity market .................... 4.1 ............37 Ease of access to loans ......................................... 2.4 ..........103 Venture capital availability ....................................... 2.1 ..........119 Soundness of banks .............................................. 4.2 ..........104 Regulation of securities exchanges ........................ 3.2 ..........115 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.3 ............99 Firm-level technology absorption ............................ 4.1 ..........108 FDI and technology transfer ................................... 3.9 ..........112 Individuals using Internet, %* ................................. 6.5 ..........126 Fixed broadband Internet subscriptions/100 pop.* ... 0.6 ..........112 Int’l Internet bandwidth, kb/s per user* .................. 4.0 ..........124 Mobile broadband subscriptions/100 pop.*............ 0.4 ..........130 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.4 ............38 Foreign market size index, 1–7 (best)* .................... 4.8 ............61 GDP (PPP$ billions)* .......................................... 325.1 ............43 Exports as a percentage of GDP* ........................ 21.9 ..........126 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............60 Local supplier quality.............................................. 3.9 ..........100 State of cluster development.................................. 3.8 ............66 Nature of competitive advantage ............................ 2.1 ..........143 Value chain breadth................................................ 3.3 ..........107 Control of international distribution ......................... 3.6 ..........112 Production process sophistication.......................... 3.3 ..........107 Extent of marketing ................................................ 3.5 ..........113 Willingness to delegate authority ............................ 2.6 ..........138 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.2 ..........113 Quality of scientific research institutions ................. 2.7 ..........122 Company spending on R&D................................... 2.3 ..........134 University-industry collaboration in R&D ................. 2.6 ..........132 Gov’t procurement of advanced tech products ...... 2.5 ..........138 Availability of scientists and engineers .................... 3.8 ............88 PCT patents, applications/million pop.* .................. 0.0 ..........120 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............79 Extent of market dominance .................................. 3.3 ..........107 Effectiveness of anti-monopoly policy ..................... 3.9 ............86 Effect of taxation on incentives to invest................. 3.5 ............92 Total tax rate, % profits* ....................................... 35.0 ............58 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 123 2.1: Country/Economy Profiles Barbados Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.3 GDP (US$ billions) ............................................ 4.3 GDP per capita (US$) ................................. 15,373 GDP (PPP) as share (%) of world total ............ 0.01 Barbados 30,000 Latin America and the Caribbean 25,000 20,000 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 55 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 47 ......4.4 GCI 2012–2013 (out of 144) ..................................... 44 ......4.4 GCI 2011–2012 (out of 142) ..................................... 42 ......4.4 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (24.1%) .......................................43 ......5.0 7 Innovation Institutions ................................................................ 33 ......4.6 Infrastructure ............................................................ 28 ......5.3 Macroeconomic environment ................................. 132 ......3.4 Health and primary education ................................... 16 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................54 ......4.3 Market size Higher education and training ................................... 30 ......5.2 Goods market efficiency .......................................... 74 ......4.3 Labor market efficiency ............................................ 31 ......4.6 Financial market development .................................. 32 ......4.6 Technological readiness ............................................ 35 ......5.0 Market size ............................................................. 138 ......2.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (25.9%) ...........47 ......3.9 Business sophistication ........................................... 53 ......4.3 Innovation ................................................................. 47 ......3.6 Barbados Latin America and the Caribbean The most problematic factors for doing business Inefficient government bureaucracy ...................................19.7 Poor work ethic in national labor force ..............................15.5 Access to financing ...........................................................14.8 Tax rates............................................................................11.9 Restrictive labor regulations .................................................7.4 Inflation ................................................................................6.2 Foreign currency regulations ................................................5.8 Insufficient capacity to innovate ...........................................5.7 Tax regulations ....................................................................4.3 Corruption ...........................................................................3.5 Inadequate supply of infrastructure ......................................2.0 Crime and theft ...................................................................1.7 Policy instability ...................................................................1.0 Inadequately educated workforce ........................................0.3 Government instability/coups ..............................................0.1 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 124 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Barbados The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.0 ............37 Intellectual property protection ............................... 4.5 ............37 Diversion of public funds ........................................ 4.5 ............33 Public trust in politicians ......................................... 3.9 ............31 Irregular payments and bribes ................................ 4.9 ............38 Judicial independence............................................ 5.3 ............25 Favoritism in decisions of government officials ....... 3.3 ............52 Wastefulness of government spending ................... 3.4 ............57 Burden of government regulation ........................... 4.1 ............16 Efficiency of legal framework in settling disputes .... 4.3 ............36 Efficiency of legal framework in challenging regs. ... 4.0 ............34 Transparency of government policymaking............. 4.5 ............37 Business costs of terrorism .................................... 6.1 ............21 Business costs of crime and violence..................... 4.1 ............89 Organized crime ..................................................... 6.1 ............15 Reliability of police services .................................... 5.6 ............25 Ethical behavior of firms ......................................... 5.0 ............28 Strength of auditing and reporting standards ......... 5.6 ............22 Efficacy of corporate boards .................................. 4.9 ............42 Protection of minority shareholders’ interests ......... 4.4 ............51 Strength of investor protection, 0–10 (best)* .......... 3.0 ..........130 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.6 ............22 Quality of roads ...................................................... 5.1 ............33 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 5.3 ............28 Quality of air transport infrastructure....................... 5.6 ............22 Available airline seat km/week, millions* ............... 74.2 ............92 Quality of electricity supply ..................................... 6.3 ............23 Mobile telephone subscriptions/100 pop.* ......... 108.1 ............78 Fixed telephone lines/100 pop.* ........................... 52.3 ..............9 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*............... –10.3 ..........140 Gross national savings, % GDP* ............................ 2.4 ..........136 Inflation, annual % change* .................................... 2.3 ..............1 General government debt, % GDP* ..................... 92.0 ..........128 Country credit rating, 0–100 (best)* ...................... 53.4 ............64 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 1.6 ..............1 Business impact of tuberculosis ............................. 5.9 ............62 HIV prevalence, % adult pop.* ............................... 0.9 ..........106 Business impact of HIV/AIDS ................................. 4.5 ..........111 Infant mortality, deaths/1,000 live births* .............. 16.9 ............82 Life expectancy, years*......................................... 75.1 ............55 Quality of primary education ................................... 5.9 ..............5 Primary education enrollment, net %* .................. 97.1 ............45 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 104.7 ............19 Tertiary education enrollment, gross %*................ 60.8 ............42 Quality of the education system ............................. 5.0 ............15 Quality of math and science education .................. 5.5 ..............7 Quality of management schools ............................. 5.0 ............28 Internet access in schools ...................................... 5.0 ............44 Availability of research and training services ........... 4.7 ............37 Extent of staff training ............................................ 4.4 ............39 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 18.0 ............84 Agricultural policy costs.......................................... 3.9 ............62 Prevalence of trade barriers ................................... 5.1 ............10 Trade tariffs, % duty* ............................................ 16.6 ..........139 Prevalence of foreign ownership............................. 5.5 ............17 Business impact of rules on FDI ............................. 4.7 ............41 Burden of customs procedures .............................. 4.0 ............72 Imports as a percentage of GDP* ........................ 52.5 ............58 Degree of customer orientation .............................. 4.3 ............91 Buyer sophistication ............................................... 3.4 ............70 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.9 ............33 Flexibility of wage determination ............................. 4.9 ............81 Hiring and firing practices ....................................... 3.6 ............89 Redundancy costs, weeks of salary* .................... 16.0 ............78 Effect of taxation on incentives to work .................. 3.8 ............58 Pay and productivity............................................... 3.5 ..........111 Reliance on professional management ................... 4.8 ............37 Country capacity to retain talent............................. 4.2 ............29 Country capacity to attract talent ........................... 4.5 ............21 Women in labor force, ratio to men* ..................... 0.90 ............31 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.9 ............50 Affordability of financial services ............................. 4.5 ............48 Financing through local equity market .................... 3.1 ............91 Ease of access to loans ......................................... 2.5 ..........101 Venture capital availability ....................................... 2.3 ..........101 Soundness of banks .............................................. 6.1 ............14 Regulation of securities exchanges ........................ 5.0 ............33 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.8 ............29 Firm-level technology absorption ............................ 5.0 ............46 FDI and technology transfer ................................... 5.1 ............24 Individuals using Internet, %* ............................... 75.0 ............29 Fixed broadband Internet subscriptions/100 pop.* . 23.8 ............33 Int’l Internet bandwidth, kb/s per user* ................ 52.0 ............52 Mobile broadband subscriptions/100 pop.*.......... 41.5 ............51 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.8 ..........136 Foreign market size index, 1–7 (best)* .................... 2.9 ..........135 GDP (PPP$ billions)* .............................................. 7.0 ..........136 Exports as a percentage of GDP* ........................ 39.1 ............69 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............70 Local supplier quality.............................................. 4.7 ............48 State of cluster development.................................. 3.8 ............74 Nature of competitive advantage ............................ 4.8 ............24 Value chain breadth................................................ 4.0 ............52 Control of international distribution ......................... 4.0 ............70 Production process sophistication.......................... 4.1 ............58 Extent of marketing ................................................ 4.4 ............56 Willingness to delegate authority ............................ 3.8 ............59 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.9 ............57 Quality of scientific research institutions ................. 4.0 ............54 Company spending on R&D................................... 3.0 ............82 University-industry collaboration in R&D ................. 4.0 ............43 Gov’t procurement of advanced tech products ...... 3.2 ............88 Availability of scientists and engineers .................... 4.1 ............66 PCT patents, applications/million pop.* ................ 40.6 ............25 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.6 ............28 Extent of market dominance .................................. 3.4 ............98 Effectiveness of anti-monopoly policy ..................... 4.0 ............73 Effect of taxation on incentives to invest................. 3.7 ............73 Total tax rate, % profits* ....................................... 40.8 ............83 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 125 2.1: Country/Economy Profiles Belgium Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 11.2 GDP (US$ billions) ........................................ 506.6 GDP per capita (US$) ................................. 45,384 GDP (PPP) as share (%) of world total ............ 0.49 Belgium 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 18 ..... 5.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 17 ......5.1 GCI 2012–2013 (out of 144) ..................................... 17 ......5.2 GCI 2011–2012 (out of 142) ..................................... 15 ......5.2 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................22 ......5.5 7 Innovation Institutions ................................................................ 23 ......5.1 Infrastructure ............................................................ 18 ......5.6 Macroeconomic environment ................................... 70 ......4.7 Health and primary education ..................................... 2 ......6.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................18 ......5.1 Market size Higher education and training ..................................... 5 ......5.9 Goods market efficiency .......................................... 14 ......5.1 Labor market efficiency ............................................ 60 ......4.3 Financial market development .................................. 38 ......4.5 Technological readiness ............................................ 14 ......5.8 Market size ............................................................... 28 ......4.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........12 ......5.1 Business sophistication ........................................... 10 ......5.3 Innovation ................................................................. 13 ......4.9 Belgium Advanced economies The most problematic factors for doing business Restrictive labor regulations ...............................................22.5 Tax rates............................................................................22.5 Tax regulations ..................................................................17.2 Inefficient government bureaucracy ...................................15.9 Policy instability ...................................................................6.5 Access to financing .............................................................4.8 Insufficient capacity to innovate ...........................................4.8 Inadequate supply of infrastructure ......................................1.6 Inflation ................................................................................1.5 Inadequately educated workforce ........................................1.4 Crime and theft ...................................................................0.4 Government instability/coups ..............................................0.4 Corruption ...........................................................................0.1 Foreign currency regulations ................................................0.1 Poor public health ...............................................................0.1 Poor work ethic in national labor force ................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 126 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Belgium The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.4 ............24 Intellectual property protection ............................... 5.3 ............23 Diversion of public funds ........................................ 5.3 ............16 Public trust in politicians ......................................... 4.2 ............23 Irregular payments and bribes ................................ 5.8 ............19 Judicial independence............................................ 5.7 ............18 Favoritism in decisions of government officials ....... 4.1 ............24 Wastefulness of government spending ................... 3.3 ............59 Burden of government regulation ........................... 2.6 ..........130 Efficiency of legal framework in settling disputes .... 4.2 ............42 Efficiency of legal framework in challenging regs. ... 4.1 ............32 Transparency of government policymaking............. 4.1 ............56 Business costs of terrorism .................................... 6.0 ............26 Business costs of crime and violence..................... 5.5 ............26 Organized crime ..................................................... 6.1 ............18 Reliability of police services .................................... 5.7 ............23 Ethical behavior of firms ......................................... 5.5 ............19 Strength of auditing and reporting standards ......... 5.5 ............30 Efficacy of corporate boards .................................. 5.5 ............13 Protection of minority shareholders’ interests ......... 4.9 ............24 Strength of investor protection, 0–10 (best)* .......... 7.0 ............16 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.8 ............17 Quality of roads ...................................................... 5.3 ............27 Quality of railroad infrastructure .............................. 4.9 ............14 Quality of port infrastructure ................................... 6.4 ..............6 Quality of air transport infrastructure....................... 5.9 ............15 Available airline seat km/week, millions* ............. 636.5 ............35 Quality of electricity supply ..................................... 6.4 ............16 Mobile telephone subscriptions/100 pop.* ......... 110.9 ............73 Fixed telephone lines/100 pop.* ........................... 41.3 ............21 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.8 ............69 Gross national savings, % GDP* .......................... 18.2 ............81 Inflation, annual % change* .................................... 1.2 ..............1 General government debt, % GDP* ..................... 99.8 ..........132 Country credit rating, 0–100 (best)* ...................... 81.1 ............19 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 9.7 ............29 Business impact of tuberculosis ............................. 6.7 ............13 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 6.5 ............22 Infant mortality, deaths/1,000 live births* ................ 3.4 ............19 Life expectancy, years*......................................... 80.4 ............25 Quality of primary education ................................... 6.2 ..............2 Primary education enrollment, net %* .................. 98.7 ............15 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 107.3 ............15 Tertiary education enrollment, gross %*................ 70.8 ............26 Quality of the education system ............................. 5.3 ..............6 Quality of math and science education .................. 6.0 ..............3 Quality of management schools ............................. 6.0 ..............2 Internet access in schools ...................................... 5.9 ............24 Availability of research and training services ........... 6.0 ..............4 Extent of staff training ............................................ 5.1 ..............9 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ................................. 4.0 ..............9 Agricultural policy costs.......................................... 4.1 ............40 Prevalence of trade barriers ................................... 4.7 ............28 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.4 ............21 Business impact of rules on FDI ............................. 4.7 ............43 Burden of customs procedures .............................. 5.2 ............22 Imports as a percentage of GDP* ...................... 107.9 ..............6 Degree of customer orientation .............................. 5.6 ..............9 Buyer sophistication ............................................... 4.3 ............20 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............78 Flexibility of wage determination ............................. 3.8 ..........129 Hiring and firing practices ....................................... 2.6 ..........139 Redundancy costs, weeks of salary* ...................... 7.2 ............19 Effect of taxation on incentives to work .................. 2.3 ..........141 Pay and productivity............................................... 3.6 ..........100 Reliance on professional management ................... 5.7 ............11 Country capacity to retain talent............................. 4.5 ............20 Country capacity to attract talent ........................... 4.0 ............32 Women in labor force, ratio to men* ..................... 0.85 ............56 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.9 ............12 Affordability of financial services ............................. 5.5 ............13 Financing through local equity market .................... 3.9 ............43 Ease of access to loans ......................................... 3.3 ............35 Venture capital availability ....................................... 3.3 ............33 Soundness of banks .............................................. 4.6 ............85 Regulation of securities exchanges ........................ 4.9 ............34 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.3 ............12 Firm-level technology absorption ............................ 5.6 ............20 FDI and technology transfer ................................... 5.0 ............32 Individuals using Internet, %* ............................... 82.2 ............20 Fixed broadband Internet subscriptions/100 pop.* . 34.4 ............10 Int’l Internet bandwidth, kb/s per user* .............. 201.9 ............11 Mobile broadband subscriptions/100 pop.*.......... 46.0 ............43 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.4 ............32 Foreign market size index, 1–7 (best)* .................... 5.9 ............18 GDP (PPP$ billions)* .......................................... 422.8 ............32 Exports as a percentage of GDP* ...................... 112.6 ..............4 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.4 ..............9 Local supplier quality.............................................. 5.8 ..............5 State of cluster development.................................. 4.7 ............21 Nature of competitive advantage ............................ 6.0 ..............5 Value chain breadth................................................ 5.0 ............15 Control of international distribution ......................... 4.4 ............42 Production process sophistication.......................... 5.9 ..............9 Extent of marketing ................................................ 5.5 ............13 Willingness to delegate authority ............................ 5.1 ............12 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.2 ............14 Quality of scientific research institutions ................. 6.1 ..............5 Company spending on R&D................................... 4.8 ............11 University-industry collaboration in R&D ................. 5.6 ..............6 Gov’t procurement of advanced tech products ...... 3.5 ............63 Availability of scientists and engineers .................... 4.5 ............37 PCT patents, applications/million pop.* .............. 113.3 ............16 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 6.0 ..............6 Extent of market dominance .................................. 5.4 ..............6 Effectiveness of anti-monopoly policy ..................... 5.2 ..............9 Effect of taxation on incentives to invest................. 3.1 ..........126 Total tax rate, % profits* ....................................... 57.5 ..........126 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 127 2.1: Country/Economy Profiles Bhutan Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.7 GDP (US$ billions) ............................................ 2.0 GDP per capita (US$) ................................... 2,665 GDP (PPP) as share (%) of world total ............ 0.01 Bhutan 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 Emerging and Developing Asia 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 103 ..... 3.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 109 ......3.7 GCI 2012–2013 (out of 144) .................................... n/a ......n/a GCI 2011–2012 (out of 142) .................................... n/a ......n/a Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (46.7%) .......................................88 ......4.3 7 Innovation Institutions ................................................................ 38 ......4.5 Infrastructure ............................................................ 92 ......3.5 Macroeconomic environment ................................. 119 ......3.9 Health and primary education ................................... 89 ......5.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (45.0%) ...................................123 ......3.3 Market size Higher education and training ................................. 108 ......3.5 Goods market efficiency ........................................ 115 ......4.0 Labor market efficiency ............................................ 24 ......4.7 Financial market development ................................ 111 ......3.4 Technological readiness .......................................... 124 ......2.7 Market size ............................................................. 140 ......1.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (8.3%) ...........111 ......3.2 Business sophistication ......................................... 107 ......3.6 Innovation ............................................................... 113 ......2.9 Bhutan Emerging and Developing Asia The most problematic factors for doing business Access to financing ...........................................................21.2 Foreign currency regulations ..............................................12.4 Restrictive labor regulations ...............................................10.0 Inadequate supply of infrastructure ......................................9.4 Inefficient government bureaucracy .....................................7.5 Poor work ethic in national labor force ................................7.2 Policy instability ...................................................................6.8 Tax rates..............................................................................5.6 Inadequately educated workforce ........................................5.1 Insufficient capacity to innovate ...........................................4.1 Corruption ...........................................................................4.0 Inflation ................................................................................3.9 Tax regulations ....................................................................1.5 Government instability/coups ..............................................0.8 Crime and theft ...................................................................0.3 Poor public health ...............................................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 128 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Bhutan The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.4 ............53 Intellectual property protection ............................... 4.0 ............52 Diversion of public funds ........................................ 4.6 ............29 Public trust in politicians ......................................... 4.1 ............24 Irregular payments and bribes ................................ 4.8 ............39 Judicial independence............................................ 4.8 ............38 Favoritism in decisions of government officials ....... 3.7 ............37 Wastefulness of government spending ................... 4.5 ............15 Burden of government regulation ........................... 3.7 ............47 Efficiency of legal framework in settling disputes .... 4.1 ............44 Efficiency of legal framework in challenging regs. ... 3.2 ............87 Transparency of government policymaking............. 3.9 ............76 Business costs of terrorism .................................... 5.8 ............41 Business costs of crime and violence..................... 5.6 ............18 Organized crime ..................................................... 6.1 ............16 Reliability of police services .................................... 4.9 ............39 Ethical behavior of firms ......................................... 4.5 ............38 Strength of auditing and reporting standards ......... 4.7 ............69 Efficacy of corporate boards .................................. 4.8 ............51 Protection of minority shareholders’ interests ......... 4.2 ............66 Strength of investor protection, 0–10 (best)* .......... 3.7 ..........117 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.6 ............53 Quality of roads ...................................................... 4.3 ............56 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.1 ..........139 Quality of air transport infrastructure....................... 3.5 ..........110 Available airline seat km/week, millions* ................. 2.2 ..........141 Quality of electricity supply ..................................... 5.9 ............37 Mobile telephone subscriptions/100 pop.* ........... 72.2 ..........117 Fixed telephone lines/100 pop.* ............................. 3.5 ..........110 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.0 ............92 Gross national savings, % GDP* .......................... 31.7 ............20 Inflation, annual % change* .................................... 8.7 ..........129 General government debt, % GDP* ................... 110.7 ..........135 Country credit rating, 0–100 (best)* ...................... 30.4 ..........109 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 20.2 ............20 Business impact of malaria .................................... 4.5 ............46 Tuberculosis cases/100,000 pop.* ..................... 180.0 ..........116 Business impact of tuberculosis ............................. 4.4 ..........113 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 4.6 ..........107 Infant mortality, deaths/1,000 live births* .............. 35.7 ..........108 Life expectancy, years*......................................... 67.9 ..........103 Quality of primary education ................................... 4.2 ............58 Primary education enrollment, net %* .................. 90.6 ..........101 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 73.9 ..........100 Tertiary education enrollment, gross %*.................. 9.5 ..........116 Quality of the education system ............................. 4.0 ............51 Quality of math and science education .................. 3.9 ............84 Quality of management schools ............................. 3.6 ..........110 Internet access in schools ...................................... 3.9 ............84 Availability of research and training services ........... 3.1 ..........127 Extent of staff training ............................................ 3.6 ..........109 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 32.0 ..........112 Agricultural policy costs.......................................... 4.4 ............19 Prevalence of trade barriers ................................... 4.2 ............96 Trade tariffs, % duty* ............................................ 22.7 ..........143 Prevalence of foreign ownership............................. 2.6 ..........141 Business impact of rules on FDI ............................. 4.2 ............88 Burden of customs procedures .............................. 4.5 ............49 Imports as a percentage of GDP* ........................ 56.3 ............50 Degree of customer orientation .............................. 4.1 ..........106 Buyer sophistication ............................................... 2.8 ..........122 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............62 Flexibility of wage determination ............................. 5.2 ............59 Hiring and firing practices ....................................... 3.9 ............63 Redundancy costs, weeks of salary* ...................... 8.3 ............24 Effect of taxation on incentives to work .................. 3.9 ............46 Pay and productivity............................................... 4.3 ............42 Reliance on professional management ................... 4.3 ............66 Country capacity to retain talent............................. 4.1 ............36 Country capacity to attract talent ........................... 3.6 ............59 Women in labor force, ratio to men* ..................... 0.87 ............44 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.9 ..........101 Affordability of financial services ............................. 4.0 ............79 Financing through local equity market .................... 3.5 ............68 Ease of access to loans ......................................... 2.5 ............98 Venture capital availability ....................................... 2.3 ..........104 Soundness of banks .............................................. 4.4 ............95 Regulation of securities exchanges ........................ 3.8 ............83 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.8 ..........125 Firm-level technology absorption ............................ 3.9 ..........120 FDI and technology transfer ................................... 3.6 ..........130 Individuals using Internet, %* ............................... 29.9 ............95 Fixed broadband Internet subscriptions/100 pop.* ... 2.7 ............91 Int’l Internet bandwidth, kb/s per user* .................. 2.8 ..........133 Mobile broadband subscriptions/100 pop.*.......... 15.6 ............87 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.6 ..........141 Foreign market size index, 1–7 (best)* .................... 2.6 ..........140 GDP (PPP$ billions)* .............................................. 4.7 ..........140 Exports as a percentage of GDP* ........................ 32.8 ............87 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.8 ..........126 Local supplier quality.............................................. 3.8 ..........114 State of cluster development.................................. 3.6 ............83 Nature of competitive advantage ............................ 3.8 ............50 Value chain breadth................................................ 3.3 ..........110 Control of international distribution ......................... 3.6 ..........110 Production process sophistication.......................... 3.2 ..........113 Extent of marketing ................................................ 3.1 ..........130 Willingness to delegate authority ............................ 3.6 ............85 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............96 Quality of scientific research institutions ................. 2.7 ..........125 Company spending on R&D................................... 2.9 ............91 University-industry collaboration in R&D ................. 2.7 ..........126 Gov’t procurement of advanced tech products ...... 3.7 ............47 Availability of scientists and engineers .................... 3.0 ..........135 PCT patents, applications/million pop.* .................. 0.4 ............83 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.6 ..........106 Extent of market dominance .................................. 3.3 ..........106 Effectiveness of anti-monopoly policy ..................... 4.4 ............44 Effect of taxation on incentives to invest................. 4.0 ............46 Total tax rate, % profits* ....................................... 40.8 ............83 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 129 2.1: Country/Economy Profiles Bolivia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 11.0 GDP (US$ billions) .......................................... 29.8 GDP per capita (US$) ................................... 2,700 GDP (PPP) as share (%) of world total ............ 0.07 Bolivia 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 105 ..... 3.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 98 ......3.8 GCI 2012–2013 (out of 144) ................................... 104 ......3.8 GCI 2011–2012 (out of 142) ................................... 103 ......3.8 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (46.0%) .......................................93 ......4.2 7 Innovation Institutions ................................................................ 90 ......3.5 Infrastructure .......................................................... 109 ......3.0 Macroeconomic environment ................................... 35 ......5.5 Health and primary education ................................. 109 ......4.9 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (45.5%) ...................................116 ......3.4 Market size Higher education and training ................................... 97 ......3.7 Goods market efficiency ........................................ 132 ......3.6 Labor market efficiency .......................................... 127 ......3.6 Financial market development ................................ 121 ......3.3 Technological readiness .......................................... 118 ......2.8 Market size ............................................................... 84 ......3.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (8.5%) .............94 ......3.4 Business sophistication ......................................... 103 ......3.6 Innovation ................................................................. 83 ......3.1 Bolivia Latin America and the Caribbean The most problematic factors for doing business Access to financing ...........................................................20.8 Restrictive labor regulations ...............................................18.5 Foreign currency regulations ..............................................13.0 Inefficient government bureaucracy ...................................10.7 Inadequate supply of infrastructure ....................................10.3 Corruption ...........................................................................7.1 Inadequately educated workforce ........................................5.2 Poor work ethic in national labor force ................................3.7 Tax regulations ....................................................................2.9 Policy instability ...................................................................1.9 Insufficient capacity to innovate ...........................................1.7 Tax rates..............................................................................1.6 Government instability/coups ..............................................1.0 Inflation ................................................................................0.9 Crime and theft ...................................................................0.8 Poor public health ...............................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 130 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Bolivia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.5 ..........111 Intellectual property protection ............................... 3.3 ............89 Diversion of public funds ........................................ 3.5 ............55 Public trust in politicians ......................................... 3.3 ............51 Irregular payments and bribes ................................ 2.6 ..........133 Judicial independence............................................ 3.3 ............94 Favoritism in decisions of government officials ....... 3.6 ............40 Wastefulness of government spending ................... 3.3 ............62 Burden of government regulation ........................... 3.6 ............57 Efficiency of legal framework in settling disputes .... 3.7 ............66 Efficiency of legal framework in challenging regs. ... 3.4 ............67 Transparency of government policymaking............. 3.6 ..........106 Business costs of terrorism .................................... 4.0 ..........122 Business costs of crime and violence..................... 3.6 ..........108 Organized crime ..................................................... 3.7 ..........123 Reliability of police services .................................... 3.5 ..........109 Ethical behavior of firms ......................................... 3.9 ............80 Strength of auditing and reporting standards ......... 3.8 ..........123 Efficacy of corporate boards .................................. 4.1 ..........113 Protection of minority shareholders’ interests ......... 3.7 ............96 Strength of investor protection, 0–10 (best)* .......... 4.0 ..........113 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.6 ............99 Quality of roads ...................................................... 3.3 ............95 Quality of railroad infrastructure .............................. 2.5 ............70 Quality of port infrastructure ................................... 2.0 ..........141 Quality of air transport infrastructure....................... 3.2 ..........120 Available airline seat km/week, millions* ............... 75.6 ............91 Quality of electricity supply ..................................... 3.9 ............94 Mobile telephone subscriptions/100 pop.* ........... 97.7 ............98 Fixed telephone lines/100 pop.* ............................. 8.2 ............98 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.1 ............19 Gross national savings, % GDP* .......................... 25.5 ............39 Inflation, annual % change* .................................... 5.7 ..........101 General government debt, % GDP* ..................... 33.1 ............45 Country credit rating, 0–100 (best)* ...................... 37.2 ............86 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................. 104.8 ............34 Business impact of malaria .................................... 3.9 ............56 Tuberculosis cases/100,000 pop.* ..................... 127.0 ..........100 Business impact of tuberculosis ............................. 3.5 ..........139 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 3.2 ..........140 Infant mortality, deaths/1,000 live births* .............. 32.8 ..........103 Life expectancy, years*......................................... 66.9 ..........108 Quality of primary education ................................... 3.0 ..........111 Primary education enrollment, net %* .................. 83.4 ..........123 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 77.3 ............96 Tertiary education enrollment, gross %*................ 37.7 ............71 Quality of the education system ............................. 3.3 ............93 Quality of math and science education .................. 3.1 ..........116 Quality of management schools ............................. 3.0 ..........131 Internet access in schools ...................................... 3.6 ............99 Availability of research and training services ........... 3.7 ............97 Extent of staff training ............................................ 3.5 ..........115 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 15 ..........141 No. days to start a business* ............................... 49.0 ..........130 Agricultural policy costs.......................................... 3.6 ............87 Prevalence of trade barriers ................................... 3.7 ..........137 Trade tariffs, % duty* .............................................. 8.8 ............97 Prevalence of foreign ownership............................. 3.5 ..........121 Business impact of rules on FDI ............................. 3.6 ..........120 Burden of customs procedures .............................. 3.8 ............82 Imports as a percentage of GDP* ........................ 38.6 ............96 Degree of customer orientation .............................. 3.5 ..........130 Buyer sophistication ............................................... 3.6 ............51 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.7 ..........120 Flexibility of wage determination ............................. 4.0 ..........124 Hiring and firing practices ....................................... 3.5 ............98 Redundancy costs, weeks of salary* ........ not possible ..........143 Effect of taxation on incentives to work .................. 3.6 ............76 Pay and productivity............................................... 3.8 ............89 Reliance on professional management ................... 3.8 ............97 Country capacity to retain talent............................. 3.8 ............48 Country capacity to attract talent ........................... 3.4 ............75 Women in labor force, ratio to men* ..................... 0.80 ............72 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.8 ..........105 Affordability of financial services ............................. 3.7 ..........105 Financing through local equity market .................... 3.3 ............76 Ease of access to loans ......................................... 3.6 ............24 Venture capital availability ....................................... 3.4 ............30 Soundness of banks .............................................. 4.0 ..........120 Regulation of securities exchanges ........................ 3.7 ............98 Legal rights index, 0–10 (best)* ................................. 1 ..........143 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.8 ..........128 Firm-level technology absorption ............................ 3.7 ..........130 FDI and technology transfer ................................... 3.6 ..........129 Individuals using Internet, %* ............................... 39.5 ............83 Fixed broadband Internet subscriptions/100 pop.* ... 1.3 ..........100 Int’l Internet bandwidth, kb/s per user* .................. 9.0 ..........105 Mobile broadband subscriptions/100 pop.*.......... 13.9 ............91 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.1 ............87 Foreign market size index, 1–7 (best)* .................... 4.2 ............82 GDP (PPP$ billions)* ............................................ 59.2 ............84 Exports as a percentage of GDP* ........................ 42.3 ............64 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.7 ..........134 Local supplier quality.............................................. 3.8 ..........111 State of cluster development.................................. 3.5 ............94 Nature of competitive advantage ............................ 3.3 ............85 Value chain breadth................................................ 3.6 ............91 Control of international distribution ......................... 3.9 ............84 Production process sophistication.......................... 3.5 ............98 Extent of marketing ................................................ 3.7 ..........107 Willingness to delegate authority ............................ 3.5 ............93 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............92 Quality of scientific research institutions ................. 3.2 ..........101 Company spending on R&D................................... 3.5 ............41 University-industry collaboration in R&D ................. 3.5 ............72 Gov’t procurement of advanced tech products ...... 3.5 ............64 Availability of scientists and engineers .................... 3.6 ............94 PCT patents, applications/million pop.* .................. 0.1 ..........102 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.8 ..........139 Extent of market dominance .................................. 3.8 ............66 Effectiveness of anti-monopoly policy ..................... 3.5 ..........114 Effect of taxation on incentives to invest................. 3.6 ............77 Total tax rate, % profits* ....................................... 83.4 ..........140 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 131 2.1: Country/Economy Profiles Botswana Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.1 GDP (US$ billions) .......................................... 14.8 GDP per capita (US$) ................................... 7,136 GDP (PPP) as share (%) of world total ............ 0.04 Botswana 20,000 Sub-Saharan Africa 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 74 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 74 ......4.1 GCI 2012–2013 (out of 144) ..................................... 79 ......4.1 GCI 2011–2012 (out of 142) ..................................... 80 ......4.0 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (50.2%) .......................................72 ......4.5 7 Innovation Institutions ................................................................ 39 ......4.5 Infrastructure .......................................................... 101 ......3.2 Macroeconomic environment ................................... 13 ......6.3 Health and primary education ................................. 127 ......4.1 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (42.4%) .....................................84 ......3.9 Market size Higher education and training ................................. 101 ......3.6 Goods market efficiency .......................................... 97 ......4.1 Labor market efficiency ............................................ 36 ......4.6 Financial market development .................................. 57 ......4.2 Technological readiness ............................................ 76 ......3.6 Market size ............................................................... 97 ......3.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (7.5%) ...........110 ......3.2 Business sophistication ......................................... 116 ......3.5 Innovation ............................................................... 102 ......3.0 Botswana Sub-Saharan Africa The most problematic factors for doing business Poor work ethic in national labor force ..............................18.5 Inadequately educated workforce ......................................12.4 Inefficient government bureaucracy ...................................11.1 Inadequate supply of infrastructure ....................................10.4 Restrictive labor regulations .................................................9.9 Access to financing .............................................................9.2 Insufficient capacity to innovate ...........................................8.0 Corruption ...........................................................................7.4 Crime and theft ...................................................................3.8 Inflation ................................................................................3.0 Poor public health ...............................................................2.1 Policy instability ...................................................................1.7 Tax rates..............................................................................1.1 Foreign currency regulations ................................................0.6 Government instability/coups ..............................................0.5 Tax regulations ....................................................................0.4 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 132 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Botswana The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.9 ............39 Intellectual property protection ............................... 4.2 ............42 Diversion of public funds ........................................ 4.3 ............36 Public trust in politicians ......................................... 3.6 ............39 Irregular payments and bribes ................................ 4.8 ............40 Judicial independence............................................ 4.9 ............35 Favoritism in decisions of government officials ....... 3.5 ............42 Wastefulness of government spending ................... 4.1 ............26 Burden of government regulation ........................... 3.5 ............67 Efficiency of legal framework in settling disputes .... 4.4 ............32 Efficiency of legal framework in challenging regs. ... 3.8 ............41 Transparency of government policymaking............. 4.3 ............49 Business costs of terrorism .................................... 6.1 ............20 Business costs of crime and violence..................... 4.1 ............90 Organized crime ..................................................... 5.6 ............38 Reliability of police services .................................... 4.3 ............63 Ethical behavior of firms ......................................... 4.5 ............39 Strength of auditing and reporting standards ......... 5.2 ............43 Efficacy of corporate boards .................................. 4.8 ............57 Protection of minority shareholders’ interests ......... 4.6 ............43 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.8 ............89 Quality of roads ...................................................... 4.0 ............67 Quality of railroad infrastructure .............................. 2.8 ............62 Quality of port infrastructure ................................... 3.0 ..........114 Quality of air transport infrastructure....................... 3.7 ..........101 Available airline seat km/week, millions* ................. 6.1 ..........139 Quality of electricity supply ..................................... 2.4 ..........127 Mobile telephone subscriptions/100 pop.* ......... 160.6 ............11 Fixed telephone lines/100 pop.* ............................. 8.6 ............95 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.2 ............18 Gross national savings, % GDP* .......................... 38.7 ............12 Inflation, annual % change* .................................... 5.8 ..........103 General government debt, % GDP* ..................... 15.9 ............14 Country credit rating, 0–100 (best)* ...................... 62.8 ............45 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 29.9 ............26 Business impact of malaria .................................... 4.8 ............39 Tuberculosis cases/100,000 pop.* ..................... 408.0 ..........133 Business impact of tuberculosis ............................. 3.7 ..........138 HIV prevalence, % adult pop.* ............................. 23.0 ..........141 Business impact of HIV/AIDS ................................. 3.2 ..........139 Infant mortality, deaths/1,000 live births* .............. 41.0 ..........112 Life expectancy, years*......................................... 47.0 ..........143 Quality of primary education ................................... 3.7 ............85 Primary education enrollment, net %* .................. 83.8 ..........122 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 81.7 ............94 Tertiary education enrollment, gross %*.................. 7.4 ..........123 Quality of the education system ............................. 3.5 ............82 Quality of math and science education .................. 3.6 ............96 Quality of management schools ............................. 3.6 ..........112 Internet access in schools ...................................... 3.4 ..........108 Availability of research and training services ........... 3.4 ..........114 Extent of staff training ............................................ 4.0 ............68 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 60.0 ..........132 Agricultural policy costs.......................................... 4.0 ............48 Prevalence of trade barriers ................................... 4.4 ............67 Trade tariffs, % duty* .............................................. 5.9 ............75 Prevalence of foreign ownership............................. 5.5 ............16 Business impact of rules on FDI ............................. 4.3 ............83 Burden of customs procedures .............................. 4.2 ............60 Imports as a percentage of GDP* ........................ 59.5 ............43 Degree of customer orientation .............................. 3.5 ..........132 Buyer sophistication ............................................... 2.9 ..........112 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............69 Flexibility of wage determination ............................. 5.4 ............42 Hiring and firing practices ....................................... 3.8 ............82 Redundancy costs, weeks of salary* .................... 21.7 ..........103 Effect of taxation on incentives to work .................. 4.6 ............14 Pay and productivity............................................... 3.8 ............82 Reliance on professional management ................... 4.8 ............36 Country capacity to retain talent............................. 3.5 ............59 Country capacity to attract talent ........................... 3.7 ............51 Women in labor force, ratio to men* ..................... 0.91 ............28 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.4 ............72 Affordability of financial services ............................. 4.2 ............67 Financing through local equity market .................... 3.6 ............56 Ease of access to loans ......................................... 3.0 ............54 Venture capital availability ....................................... 2.7 ............67 Soundness of banks .............................................. 5.6 ............43 Regulation of securities exchanges ........................ 4.4 ............57 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.4 ............92 Firm-level technology absorption ............................ 4.3 ............92 FDI and technology transfer ................................... 4.2 ............94 Individuals using Internet, %* ............................... 15.0 ..........116 Fixed broadband Internet subscriptions/100 pop.* ... 1.1 ..........104 Int’l Internet bandwidth, kb/s per user* .................. 6.6 ..........109 Mobile broadband subscriptions/100 pop.*.......... 74.1 ............19 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.9 ............97 Foreign market size index, 1–7 (best)* .................... 3.9 ............97 GDP (PPP$ billions)* ............................................ 34.1 ............99 Exports as a percentage of GDP* ........................ 42.8 ............62 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.8 ..........129 Local supplier quality.............................................. 3.5 ..........130 State of cluster development.................................. 3.3 ..........104 Nature of competitive advantage ............................ 3.2 ............92 Value chain breadth................................................ 3.3 ..........115 Control of international distribution ......................... 3.2 ..........134 Production process sophistication.......................... 3.3 ..........109 Extent of marketing ................................................ 3.6 ..........110 Willingness to delegate authority ............................ 3.4 ............99 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.3 ..........106 Quality of scientific research institutions ................. 3.2 ..........100 Company spending on R&D................................... 2.6 ..........118 University-industry collaboration in R&D ................. 3.1 ..........105 Gov’t procurement of advanced tech products ...... 3.7 ............45 Availability of scientists and engineers .................... 3.2 ..........120 PCT patents, applications/million pop.* .................. 0.2 ............96 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.7 ............95 Extent of market dominance .................................. 3.1 ..........121 Effectiveness of anti-monopoly policy ..................... 3.9 ............75 Effect of taxation on incentives to invest................. 4.7 ............14 Total tax rate, % profits* ....................................... 25.4 ............22 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 133 2.1: Country/Economy Profiles Brazil Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ...................................... 198.3 GDP (US$ billions) ..................................... 2,242.9 GDP per capita (US$) ................................. 11,311 GDP (PPP) as share (%) of world total ............ 2.79 Brazil 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 57 ..... 4.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 56 ......4.3 GCI 2012–2013 (out of 144) ..................................... 48 ......4.4 GCI 2011–2012 (out of 142) ..................................... 53 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (34.2%) .......................................83 ......4.4 Innovation Institutions ................................................................ 94 ......3.5 Infrastructure ............................................................ 76 ......4.0 Macroeconomic environment ................................... 85 ......4.5 Health and primary education ................................... 77 ......5.7 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................42 ......4.5 Market size Higher education and training ................................... 41 ......4.9 Goods market efficiency ........................................ 123 ......3.8 Labor market efficiency .......................................... 109 ......3.8 Financial market development .................................. 53 ......4.3 Technological readiness ............................................ 58 ......4.2 Market size ................................................................. 9 ......5.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (15.8%) ...........56 ......3.8 Business sophistication ........................................... 47 ......4.3 Innovation ................................................................. 62 ......3.3 Brazil Latin America and the Caribbean The most problematic factors for doing business Tax regulations ..................................................................18.2 Restrictive labor regulations ...............................................15.0 Inadequate supply of infrastructure ....................................15.0 Tax rates............................................................................13.5 Inefficient government bureaucracy ...................................12.8 Corruption ...........................................................................8.8 Inadequately educated workforce ........................................6.1 Access to financing .............................................................3.4 Policy instability ...................................................................2.4 Inflation ................................................................................1.4 Insufficient capacity to innovate ...........................................1.1 Crime and theft ...................................................................0.8 Poor work ethic in national labor force ................................0.8 Foreign currency regulations ................................................0.6 Poor public health ...............................................................0.1 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 134 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Brazil The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.0 ............77 Intellectual property protection ............................... 3.3 ............92 Diversion of public funds ........................................ 2.0 ..........135 Public trust in politicians ......................................... 1.7 ..........140 Irregular payments and bribes ................................ 3.6 ............89 Judicial independence............................................ 3.6 ............76 Favoritism in decisions of government officials ....... 2.6 ..........108 Wastefulness of government spending ................... 1.9 ..........137 Burden of government regulation ........................... 1.9 ..........143 Efficiency of legal framework in settling disputes .... 3.2 ..........107 Efficiency of legal framework in challenging regs. ... 3.1 ............94 Transparency of government policymaking............. 3.2 ..........128 Business costs of terrorism .................................... 6.1 ............23 Business costs of crime and violence..................... 3.2 ..........124 Organized crime ..................................................... 3.9 ..........119 Reliability of police services .................................... 3.9 ............83 Ethical behavior of firms ......................................... 3.6 ..........107 Strength of auditing and reporting standards ......... 5.2 ............41 Efficacy of corporate boards .................................. 4.8 ............56 Protection of minority shareholders’ interests ......... 4.7 ............35 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.1 ..........120 Quality of roads ...................................................... 2.8 ..........122 Quality of railroad infrastructure .............................. 1.7 ............95 Quality of port infrastructure ................................... 2.7 ..........122 Quality of air transport infrastructure....................... 3.4 ..........113 Available airline seat km/week, millions* .......... 3,827.3 ..............9 Quality of electricity supply ..................................... 4.1 ............89 Mobile telephone subscriptions/100 pop.* ......... 135.3 ............37 Fixed telephone lines/100 pop.* ........................... 22.3 ............51 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.3 ............81 Gross national savings, % GDP* .......................... 14.7 ..........110 Inflation, annual % change* .................................... 6.2 ..........110 General government debt, % GDP* ..................... 66.3 ..........109 Country credit rating, 0–100 (best)* ...................... 67.7 ............38 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................. 156.0 ............35 Business impact of malaria .................................... 6.3 ..............5 Tuberculosis cases/100,000 pop.* ....................... 46.0 ............69 Business impact of tuberculosis ............................. 6.2 ............41 HIV prevalence, % adult pop.* ............................... 0.5 ............87 Business impact of HIV/AIDS ................................. 5.7 ............63 Infant mortality, deaths/1,000 live births* .............. 12.9 ............65 Life expectancy, years*......................................... 73.6 ............78 Quality of primary education ................................... 2.6 ..........126 Primary education enrollment, net %* .................. 98.5 ............18 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 99.4 ............37 Tertiary education enrollment, gross %*.................. n/a ...........n/a Quality of the education system ............................. 2.7 ..........126 Quality of math and science education .................. 2.6 ..........131 Quality of management schools ............................. 4.5 ............53 Internet access in schools ...................................... 3.6 ............98 Availability of research and training services ........... 4.5 ............47 Extent of staff training ............................................ 4.3 ............44 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 13 ..........135 No. days to start a business* ............................. 107.5 ..........142 Agricultural policy costs.......................................... 4.1 ............39 Prevalence of trade barriers ................................... 4.0 ..........115 Trade tariffs, % duty* ............................................ 11.4 ..........118 Prevalence of foreign ownership............................. 4.3 ............91 Business impact of rules on FDI ............................. 3.7 ..........114 Burden of customs procedures .............................. 2.7 ..........138 Imports as a percentage of GDP* ........................ 14.9 ..........144 Degree of customer orientation .............................. 4.6 ............61 Buyer sophistication ............................................... 3.5 ............60 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.7 ..........123 Flexibility of wage determination ............................. 4.0 ..........125 Hiring and firing practices ....................................... 2.7 ..........135 Redundancy costs, weeks of salary* .................... 15.4 ............73 Effect of taxation on incentives to work .................. 2.5 ..........139 Pay and productivity............................................... 3.3 ..........117 Reliance on professional management ................... 4.6 ............44 Country capacity to retain talent............................. 3.9 ............44 Country capacity to attract talent ........................... 3.6 ............61 Women in labor force, ratio to men* ..................... 0.76 ............86 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.2 ............33 Affordability of financial services ............................. 5.0 ............36 Financing through local equity market .................... 3.6 ............55 Ease of access to loans ......................................... 2.7 ............85 Venture capital availability ....................................... 2.6 ............80 Soundness of banks .............................................. 6.1 ............13 Regulation of securities exchanges ........................ 5.4 ............17 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.7 ............77 Firm-level technology absorption ............................ 4.8 ............59 FDI and technology transfer ................................... 4.9 ............39 Individuals using Internet, %* ............................... 51.6 ............64 Fixed broadband Internet subscriptions/100 pop.* . 10.1 ............63 Int’l Internet bandwidth, kb/s per user* ................ 42.9 ............60 Mobile broadband subscriptions/100 pop.*.......... 51.5 ............39 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.7 ..............6 Foreign market size index, 1–7 (best)* .................... 5.6 ............24 GDP (PPP$ billions)* ....................................... 2,423.3 ..............7 Exports as a percentage of GDP* ........................ 12.5 ..........140 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.1 ............21 Local supplier quality.............................................. 4.6 ............54 State of cluster development.................................. 4.6 ............24 Nature of competitive advantage ............................ 3.2 ............99 Value chain breadth................................................ 3.8 ............69 Control of international distribution ......................... 4.2 ............55 Production process sophistication.......................... 4.2 ............48 Extent of marketing ................................................ 4.9 ............30 Willingness to delegate authority ............................ 4.1 ............40 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.1 ............44 Quality of scientific research institutions ................. 4.0 ............50 Company spending on R&D................................... 3.5 ............43 University-industry collaboration in R&D ................. 3.8 ............54 Gov’t procurement of advanced tech products ...... 3.4 ............77 Availability of scientists and engineers .................... 3.3 ..........114 PCT patents, applications/million pop.* .................. 3.2 ............50 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.3 ............52 Extent of market dominance .................................. 4.2 ............35 Effectiveness of anti-monopoly policy ..................... 4.3 ............55 Effect of taxation on incentives to invest................. 2.4 ..........139 Total tax rate, % profits* ....................................... 68.3 ..........136 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 135 2.1: Country/Economy Profiles Bulgaria Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 7.2 GDP (US$ billions) .......................................... 53.0 GDP per capita (US$) ................................... 7,328 GDP (PPP) as share (%) of world total ............ 0.12 Bulgaria 20,000 Emerging and Developing Europe 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 54 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 57 ......4.3 GCI 2012–2013 (out of 144) ..................................... 62 ......4.3 GCI 2011–2012 (out of 142) ..................................... 74 ......4.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................59 ......4.7 7 Innovation Institutions .............................................................. 112 ......3.3 Infrastructure ............................................................ 74 ......4.1 Macroeconomic environment ................................... 36 ......5.4 Health and primary education ................................... 51 ......6.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................52 ......4.3 Market size Higher education and training ................................... 63 ......4.5 Goods market efficiency .......................................... 63 ......4.4 Labor market efficiency ............................................ 67 ......4.2 Financial market development .................................. 60 ......4.2 Technological readiness ............................................ 41 ......4.7 Market size ............................................................... 63 ......3.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........106 ......3.3 Business sophistication ......................................... 105 ......3.6 Innovation ............................................................... 105 ......2.9 Bulgaria Emerging and Developing Europe The most problematic factors for doing business Corruption .........................................................................14.0 Inefficient government bureaucracy ...................................13.2 Access to financing ...........................................................11.4 Policy instability ...................................................................9.4 Inadequately educated workforce ........................................8.7 Inadequate supply of infrastructure ......................................8.2 Government instability/coups ..............................................7.5 Restrictive labor regulations .................................................5.4 Tax regulations ....................................................................4.9 Poor work ethic in national labor force ................................4.6 Tax rates..............................................................................3.6 Inflation ................................................................................3.6 Insufficient capacity to innovate ...........................................2.4 Crime and theft ...................................................................1.6 Foreign currency regulations ................................................0.9 Poor public health ...............................................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 136 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Bulgaria The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.5 ..........110 Intellectual property protection ............................... 3.0 ..........108 Diversion of public funds ........................................ 2.5 ..........118 Public trust in politicians ......................................... 1.9 ..........130 Irregular payments and bribes ................................ 4.2 ............55 Judicial independence............................................ 2.3 ..........126 Favoritism in decisions of government officials ....... 2.1 ..........134 Wastefulness of government spending ................... 2.6 ............98 Burden of government regulation ........................... 3.1 ..........102 Efficiency of legal framework in settling disputes .... 2.8 ..........124 Efficiency of legal framework in challenging regs. ... 2.5 ..........124 Transparency of government policymaking............. 3.3 ..........124 Business costs of terrorism .................................... 5.1 ............81 Business costs of crime and violence..................... 4.3 ............82 Organized crime ..................................................... 4.0 ..........117 Reliability of police services .................................... 3.3 ..........112 Ethical behavior of firms ......................................... 3.7 ..........101 Strength of auditing and reporting standards ......... 4.9 ............60 Efficacy of corporate boards .................................. 4.1 ..........106 Protection of minority shareholders’ interests ......... 3.9 ............83 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.6 ..........100 Quality of roads ...................................................... 3.1 ..........106 Quality of railroad infrastructure .............................. 3.0 ............51 Quality of port infrastructure ................................... 4.2 ............68 Quality of air transport infrastructure....................... 4.3 ............69 Available airline seat km/week, millions* ............... 92.3 ............84 Quality of electricity supply ..................................... 4.2 ............86 Mobile telephone subscriptions/100 pop.* ......... 145.2 ............28 Fixed telephone lines/100 pop.* ........................... 26.9 ............42 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.9 ............49 Gross national savings, % GDP* .......................... 23.0 ............50 Inflation, annual % change* .................................... 0.4 ............60 General government debt, % GDP* ..................... 17.6 ............15 Country credit rating, 0–100 (best)* ...................... 54.5 ............61 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 32.0 ............61 Business impact of tuberculosis ............................. 6.0 ............54 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.0 ............45 Infant mortality, deaths/1,000 live births* .............. 10.5 ............58 Life expectancy, years*......................................... 74.3 ............69 Quality of primary education ................................... 4.4 ............50 Primary education enrollment, net %* .................. 95.0 ............66 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 93.1 ............61 Tertiary education enrollment, gross %*................ 62.7 ............34 Quality of the education system ............................. 3.4 ............91 Quality of math and science education .................. 4.3 ............54 Quality of management schools ............................. 3.4 ..........121 Internet access in schools ...................................... 5.0 ............45 Availability of research and training services ........... 3.4 ..........111 Extent of staff training ............................................ 3.3 ..........127 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ............................... 18.0 ............84 Agricultural policy costs.......................................... 3.2 ..........120 Prevalence of trade barriers ................................... 4.1 ............99 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.0 ..........108 Business impact of rules on FDI ............................. 3.8 ..........113 Burden of customs procedures .............................. 4.1 ............67 Imports as a percentage of GDP* ........................ 73.5 ............31 Degree of customer orientation .............................. 5.0 ............40 Buyer sophistication ............................................... 2.9 ..........111 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.9 ..........111 Flexibility of wage determination ............................. 5.4 ............44 Hiring and firing practices ....................................... 3.6 ............96 Redundancy costs, weeks of salary* ...................... 7.5 ............21 Effect of taxation on incentives to work .................. 3.4 ............91 Pay and productivity............................................... 4.1 ............55 Reliance on professional management ................... 3.6 ..........113 Country capacity to retain talent............................. 1.8 ..........142 Country capacity to attract talent ........................... 1.8 ..........142 Women in labor force, ratio to men* ..................... 0.89 ............34 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.2 ............85 Affordability of financial services ............................. 4.0 ............85 Financing through local equity market .................... 3.0 ............95 Ease of access to loans ......................................... 3.0 ............53 Venture capital availability ....................................... 2.6 ............79 Soundness of banks .............................................. 5.0 ............62 Regulation of securities exchanges ........................ 3.6 ..........103 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.4 ............91 Firm-level technology absorption ............................ 4.4 ............85 FDI and technology transfer ................................... 4.3 ............91 Individuals using Internet, %* ............................... 53.1 ............62 Fixed broadband Internet subscriptions/100 pop.* . 19.0 ............39 Int’l Internet bandwidth, kb/s per user* .............. 107.2 ............27 Mobile broadband subscriptions/100 pop.*.......... 58.3 ............31 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.6 ............66 Foreign market size index, 1–7 (best)* .................... 4.8 ............60 GDP (PPP$ billions)* .......................................... 105.0 ............68 Exports as a percentage of GDP* ........................ 69.8 ............27 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.3 ............98 Local supplier quality.............................................. 4.4 ............67 State of cluster development.................................. 3.0 ..........129 Nature of competitive advantage ............................ 2.8 ..........119 Value chain breadth................................................ 3.3 ..........113 Control of international distribution ......................... 4.1 ............63 Production process sophistication.......................... 3.6 ............90 Extent of marketing ................................................ 3.8 ..........102 Willingness to delegate authority ............................ 3.2 ..........120 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.3 ..........108 Quality of scientific research institutions ................. 3.5 ............81 Company spending on R&D................................... 2.8 ..........100 University-industry collaboration in R&D ................. 3.0 ..........113 Gov’t procurement of advanced tech products ...... 3.2 ............97 Availability of scientists and engineers .................... 3.6 ............96 PCT patents, applications/million pop.* .................. 5.1 ............48 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.0 ............75 Extent of market dominance .................................. 3.2 ..........115 Effectiveness of anti-monopoly policy ..................... 3.4 ..........122 Effect of taxation on incentives to invest................. 3.6 ............81 Total tax rate, % profits* ....................................... 27.7 ............28 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 137 2.1: Country/Economy Profiles Burkina Faso Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 16.8 GDP (US$ billions) .......................................... 12.2 GDP per capita (US$) ...................................... 729 GDP (PPP) as share (%) of world total ............ 0.03 Burkina Faso 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 135 ..... 3.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 140 ......3.2 GCI 2012–2013 (out of 144) ................................... 133 ......3.3 GCI 2011–2012 (out of 142) ................................... 136 ......3.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................135 ......3.3 7 Innovation Institutions .............................................................. 117 ......3.3 Infrastructure .......................................................... 141 ......2.0 Macroeconomic environment ................................... 83 ......4.5 Health and primary education ................................. 141 ......3.2 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................132 ......3.2 Market size Higher education and training ................................. 136 ......2.4 Goods market efficiency ........................................ 127 ......3.8 Labor market efficiency ............................................ 70 ......4.2 Financial market development ................................ 127 ......3.1 Technological readiness .......................................... 132 ......2.5 Market size ............................................................. 111 ......2.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........128 ......2.9 Business sophistication ......................................... 136 ......3.0 Innovation ............................................................... 107 ......2.9 Burkina Faso Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................29.2 Corruption .........................................................................23.6 Tax rates..............................................................................8.6 Inadequate supply of infrastructure ......................................7.2 Inefficient government bureaucracy .....................................5.6 Tax regulations ....................................................................5.6 Inadequately educated workforce ........................................5.2 Policy instability ...................................................................3.2 Insufficient capacity to innovate ...........................................2.8 Poor work ethic in national labor force ................................2.8 Inflation ................................................................................2.2 Foreign currency regulations ................................................1.2 Restrictive labor regulations .................................................1.2 Crime and theft ...................................................................1.0 Poor public health ...............................................................0.6 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 138 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Burkina Faso The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.5 ..........109 Intellectual property protection ............................... 3.4 ............85 Diversion of public funds ........................................ 2.1 ..........131 Public trust in politicians ......................................... 2.6 ............92 Irregular payments and bribes ................................ 2.9 ..........121 Judicial independence............................................ 2.1 ..........136 Favoritism in decisions of government officials ....... 2.8 ............85 Wastefulness of government spending ................... 2.8 ............91 Burden of government regulation ........................... 3.6 ............56 Efficiency of legal framework in settling disputes .... 3.5 ............81 Efficiency of legal framework in challenging regs. ... 2.8 ..........107 Transparency of government policymaking............. 3.3 ..........123 Business costs of terrorism .................................... 3.9 ..........128 Business costs of crime and violence..................... 3.8 ..........103 Organized crime ..................................................... 4.6 ............84 Reliability of police services .................................... 4.0 ............77 Ethical behavior of firms ......................................... 3.4 ..........122 Strength of auditing and reporting standards ......... 4.3 ............86 Efficacy of corporate boards .................................. 4.6 ............65 Protection of minority shareholders’ interests ......... 3.6 ..........102 Strength of investor protection, 0–10 (best)* .......... 3.7 ..........117 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.4 ..........137 Quality of roads ...................................................... 2.5 ..........132 Quality of railroad infrastructure .............................. 1.8 ............93 Quality of port infrastructure ................................... 3.1 ..........111 Quality of air transport infrastructure....................... 3.0 ..........126 Available airline seat km/week, millions* ............... 15.8 ..........128 Quality of electricity supply ..................................... 1.7 ..........139 Mobile telephone subscriptions/100 pop.* ........... 66.4 ..........129 Fixed telephone lines/100 pop.* ............................. 0.8 ..........127 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.0 ............76 Gross national savings, % GDP* .......................... 15.4 ..........104 Inflation, annual % change* .................................... 2.0 ..............1 General government debt, % GDP* ..................... 33.3 ............46 Country credit rating, 0–100 (best)* ...................... 21.0 ..........127 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 34,021.6 ............75 Business impact of malaria .................................... 3.1 ............70 Tuberculosis cases/100,000 pop.* ....................... 54.0 ............76 Business impact of tuberculosis ............................. 4.4 ..........107 HIV prevalence, % adult pop.* ............................... 1.0 ..........109 Business impact of HIV/AIDS ................................. 4.3 ..........116 Infant mortality, deaths/1,000 live births* .............. 65.8 ..........135 Life expectancy, years*......................................... 55.9 ..........130 Quality of primary education ................................... 3.1 ..........109 Primary education enrollment, net %* .................. 66.4 ..........137 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 25.9 ..........141 Tertiary education enrollment, gross %*.................. 4.6 ..........130 Quality of the education system ............................. 2.9 ..........120 Quality of math and science education .................. 3.8 ............88 Quality of management schools ............................. 3.8 ............97 Internet access in schools ...................................... 1.8 ..........140 Availability of research and training services ........... 3.5 ..........105 Extent of staff training ............................................ 2.8 ..........140 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ............................... 13.0 ............67 Agricultural policy costs.......................................... 3.7 ............82 Prevalence of trade barriers ................................... 4.3 ............83 Trade tariffs, % duty* ............................................ 10.8 ..........112 Prevalence of foreign ownership............................. 4.1 ..........105 Business impact of rules on FDI ............................. 4.6 ............53 Burden of customs procedures .............................. 3.6 ............93 Imports as a percentage of GDP* ........................ 39.2 ............90 Degree of customer orientation .............................. 4.1 ..........101 Buyer sophistication ............................................... 1.9 ..........144 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............94 Flexibility of wage determination ............................. 5.3 ............50 Hiring and firing practices ....................................... 4.1 ............53 Redundancy costs, weeks of salary* .................... 10.5 ............43 Effect of taxation on incentives to work .................. 3.7 ............63 Pay and productivity............................................... 3.1 ..........130 Reliance on professional management ................... 2.9 ..........136 Country capacity to retain talent............................. 3.0 ............99 Country capacity to attract talent ........................... 2.4 ..........125 Women in labor force, ratio to men* ..................... 0.88 ............39 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.4 ..........130 Affordability of financial services ............................. 3.1 ..........134 Financing through local equity market .................... 2.2 ..........127 Ease of access to loans ......................................... 1.6 ..........138 Venture capital availability ....................................... 1.5 ..........144 Soundness of banks .............................................. 4.1 ..........116 Regulation of securities exchanges ........................ 3.1 ..........122 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.5 ..........133 Firm-level technology absorption ............................ 3.7 ..........132 FDI and technology transfer ................................... 4.2 ............92 Individuals using Internet, %* ................................. 4.4 ..........133 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........129 Int’l Internet bandwidth, kb/s per user* .................. 3.1 ..........131 Mobile broadband subscriptions/100 pop.*............ 9.0 ............99 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.7 ..........104 Foreign market size index, 1–7 (best)* .................... 3.4 ..........119 GDP (PPP$ billions)* ............................................ 26.6 ..........108 Exports as a percentage of GDP* ........................ 23.0 ..........121 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.2 ..........105 Local supplier quality.............................................. 4.1 ............85 State of cluster development.................................. 2.9 ..........132 Nature of competitive advantage ............................ 2.0 ..........144 Value chain breadth................................................ 3.0 ..........132 Control of international distribution ......................... 3.0 ..........138 Production process sophistication.......................... 2.4 ..........138 Extent of marketing ................................................ 3.1 ..........129 Willingness to delegate authority ............................ 2.1 ..........144 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.4 ............99 Quality of scientific research institutions ................. 3.4 ............90 Company spending on R&D................................... 2.3 ..........128 University-industry collaboration in R&D ................. 3.2 ..........103 Gov’t procurement of advanced tech products ...... 3.2 ............96 Availability of scientists and engineers .................... 3.5 ..........107 PCT patents, applications/million pop.* .................. 0.0 ..........113 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.6 ..........110 Extent of market dominance .................................. 2.7 ..........138 Effectiveness of anti-monopoly policy ..................... 3.5 ..........113 Effect of taxation on incentives to invest................. 3.1 ..........119 Total tax rate, % profits* ....................................... 43.9 ............95 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 139 2.1: Country/Economy Profiles Burundi Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 9.0 GDP (US$ billions) ............................................ 2.7 GDP per capita (US$) ...................................... 303 GDP (PPP) as share (%) of world total ............ 0.01 Burundi 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 139 ..... 3.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 146 ......2.9 GCI 2012–2013 (out of 144) ................................... 144 ......2.8 GCI 2011–2012 (out of 142) ................................... 140 ......2.9 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................130 ......3.4 7 Innovation Institutions .............................................................. 132 ......2.9 Infrastructure .......................................................... 140 ......2.0 Macroeconomic environment ................................. 112 ......4.0 Health and primary education ................................. 114 ......4.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................144 ......2.6 Market size Higher education and training ................................. 142 ......2.1 Goods market efficiency ........................................ 135 ......3.5 Labor market efficiency .......................................... 103 ......3.9 Financial market development ................................ 142 ......2.4 Technological readiness .......................................... 142 ......2.1 Market size ............................................................. 141 ......1.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........137 ......2.7 Business sophistication ......................................... 139 ......2.9 Innovation ............................................................... 133 ......2.5 Burundi Sub-Saharan Africa The most problematic factors for doing business Corruption .........................................................................26.0 Access to financing ...........................................................20.8 Policy instability .................................................................14.3 Inflation ..............................................................................10.0 Tax rates..............................................................................7.6 Inadequate supply of infrastructure ......................................3.9 Insufficient capacity to innovate ...........................................2.7 Inefficient government bureaucracy .....................................2.4 Tax regulations ....................................................................2.4 Inadequately educated workforce ........................................2.4 Foreign currency regulations ................................................2.1 Government instability/coups ..............................................2.1 Crime and theft ...................................................................1.8 Restrictive labor regulations .................................................0.9 Poor work ethic in national labor force ................................0.6 Poor public health ...............................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 140 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Burundi The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.8 ..........134 Intellectual property protection ............................... 2.6 ..........131 Diversion of public funds ........................................ 2.2 ..........129 Public trust in politicians ......................................... 2.3 ..........104 Irregular payments and bribes ................................ 2.9 ..........125 Judicial independence............................................ 1.6 ..........143 Favoritism in decisions of government officials ....... 2.4 ..........121 Wastefulness of government spending ................... 2.3 ..........124 Burden of government regulation ........................... 3.1 ............97 Efficiency of legal framework in settling disputes .... 2.9 ..........121 Efficiency of legal framework in challenging regs. ... 2.9 ..........100 Transparency of government policymaking............. 3.2 ..........131 Business costs of terrorism .................................... 4.6 ..........106 Business costs of crime and violence..................... 3.5 ..........115 Organized crime ..................................................... 3.8 ..........122 Reliability of police services .................................... 2.2 ..........142 Ethical behavior of firms ......................................... 3.1 ..........135 Strength of auditing and reporting standards ......... 3.6 ..........129 Efficacy of corporate boards .................................. 4.3 ............91 Protection of minority shareholders’ interests ......... 3.1 ..........131 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.8 ..........131 Quality of roads ...................................................... 3.2 ..........101 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.8 ..........119 Quality of air transport infrastructure....................... 2.6 ..........135 Available airline seat km/week, millions* ................. 1.8 ..........142 Quality of electricity supply ..................................... 2.1 ..........132 Mobile telephone subscriptions/100 pop.* ........... 25.0 ..........143 Fixed telephone lines/100 pop.* ............................. 0.2 ..........141 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.9 ............52 Gross national savings, % GDP* .......................... –3.2 ..........142 Inflation, annual % change* .................................... 8.8 ..........131 General government debt, % GDP* ..................... 31.7 ............40 Country credit rating, 0–100 (best)* ...................... 13.9 ..........139 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 8,528.3 ............57 Business impact of malaria .................................... 3.3 ............66 Tuberculosis cases/100,000 pop.* ..................... 130.0 ..........101 Business impact of tuberculosis ............................. 3.9 ..........132 HIV prevalence, % adult pop.* ............................... 1.3 ..........114 Business impact of HIV/AIDS ................................. 3.9 ..........127 Infant mortality, deaths/1,000 live births* .............. 66.9 ..........136 Life expectancy, years*......................................... 53.6 ..........135 Quality of primary education ................................... 2.5 ..........131 Primary education enrollment, net %* .................. 94.0 ............70 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 28.5 ..........137 Tertiary education enrollment, gross %*.................. 3.2 ..........136 Quality of the education system ............................. 2.6 ..........133 Quality of math and science education .................. 3.5 ..........100 Quality of management schools ............................. 2.6 ..........138 Internet access in schools ...................................... 1.7 ..........142 Availability of research and training services ........... 2.8 ..........138 Extent of staff training ............................................ 2.9 ..........137 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ................................. 5.0 ............14 Agricultural policy costs.......................................... 2.8 ..........136 Prevalence of trade barriers ................................... 3.5 ..........139 Trade tariffs, % duty* .............................................. 8.7 ............95 Prevalence of foreign ownership............................. 2.8 ..........139 Business impact of rules on FDI ............................. 3.3 ..........129 Burden of customs procedures .............................. 2.9 ..........136 Imports as a percentage of GDP* ........................ 37.4 ............97 Degree of customer orientation .............................. 3.3 ..........139 Buyer sophistication ............................................... 2.2 ..........141 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.4 ..........138 Flexibility of wage determination ............................. 5.1 ............61 Hiring and firing practices ....................................... 3.3 ..........118 Redundancy costs, weeks of salary* .................... 15.9 ............76 Effect of taxation on incentives to work .................. 2.7 ..........133 Pay and productivity............................................... 2.6 ..........137 Reliance on professional management ................... 2.8 ..........139 Country capacity to retain talent............................. 2.0 ..........138 Country capacity to attract talent ........................... 1.9 ..........138 Women in labor force, ratio to men* ..................... 1.02 ..............4 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.8 ..........140 Affordability of financial services ............................. 2.7 ..........142 Financing through local equity market .................... 1.8 ..........138 Ease of access to loans ......................................... 1.8 ..........131 Venture capital availability ....................................... 1.9 ..........129 Soundness of banks .............................................. 2.9 ..........140 Regulation of securities exchanges ........................ 1.9 ..........141 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.1 ..........141 Firm-level technology absorption ............................ 3.2 ..........141 FDI and technology transfer ................................... 3.3 ..........140 Individuals using Internet, %* ................................. 1.3 ..........142 Fixed broadband Internet subscriptions/100 pop.* ... 0.0 ..........142 Int’l Internet bandwidth, kb/s per user* ................ 11.2 ............95 Mobile broadband subscriptions/100 pop.*............ 0.0 ..........132 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.8 ..........139 Foreign market size index, 1–7 (best)* .................... 1.7 ..........143 GDP (PPP$ billions)* .............................................. 5.8 ..........139 Exports as a percentage of GDP* .......................... 6.0 ..........143 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.6 ..........137 Local supplier quality.............................................. 3.3 ..........135 State of cluster development.................................. 2.7 ..........138 Nature of competitive advantage ............................ 2.7 ..........122 Value chain breadth................................................ 2.9 ..........136 Control of international distribution ......................... 3.1 ..........135 Production process sophistication.......................... 2.4 ..........140 Extent of marketing ................................................ 2.6 ..........142 Willingness to delegate authority ............................ 2.8 ..........137 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.8 ..........140 Quality of scientific research institutions ................. 2.4 ..........134 Company spending on R&D................................... 2.2 ..........137 University-industry collaboration in R&D ................. 2.8 ..........122 Gov’t procurement of advanced tech products ...... 2.7 ..........128 Availability of scientists and engineers .................... 3.3 ..........116 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.9 ..........134 Extent of market dominance .................................. 3.4 ............99 Effectiveness of anti-monopoly policy ..................... 3.1 ..........134 Effect of taxation on incentives to invest................. 2.6 ..........138 Total tax rate, % profits* ....................................... 51.6 ..........118 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 141 2.1: Country/Economy Profiles Cambodia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 15.4 GDP (US$ billions) .......................................... 15.7 GDP per capita (US$) ................................... 1,016 GDP (PPP) as share (%) of world total ............ 0.05 Cambodia 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 1994 Emerging and Developing Asia 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 95 ..... 3.9 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 88 ......4.0 GCI 2012–2013 (out of 144) ..................................... 85 ......4.0 GCI 2011–2012 (out of 142) ..................................... 97 ......3.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................103 ......4.1 7 Innovation Institutions .............................................................. 119 ......3.2 Infrastructure .......................................................... 107 ......3.1 Macroeconomic environment ................................... 80 ......4.6 Health and primary education ................................... 91 ......5.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................100 ......3.6 Market size Higher education and training ................................. 123 ......2.9 Goods market efficiency .......................................... 90 ......4.2 Labor market efficiency ............................................ 29 ......4.6 Financial market development .................................. 84 ......3.8 Technological readiness .......................................... 102 ......3.0 Market size ............................................................... 87 ......3.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........116 ......3.2 Business sophistication ......................................... 111 ......3.5 Innovation ............................................................... 116 ......2.8 Cambodia Emerging and Developing Asia The most problematic factors for doing business Corruption .........................................................................19.4 Access to financing ...........................................................12.2 Inefficient government bureaucracy ...................................11.4 Inadequately educated workforce ........................................9.8 Inadequate supply of infrastructure ......................................9.4 Policy instability ...................................................................7.0 Government instability/coups ..............................................4.5 Restrictive labor regulations .................................................4.5 Tax regulations ....................................................................3.9 Foreign currency regulations ................................................3.6 Poor work ethic in national labor force ................................3.1 Crime and theft ...................................................................2.7 Insufficient capacity to innovate ...........................................2.4 Tax rates..............................................................................2.3 Poor public health ...............................................................2.1 Inflation ................................................................................1.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 142 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Cambodia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.3 ..........118 Intellectual property protection ............................... 2.8 ..........120 Diversion of public funds ........................................ 2.6 ..........113 Public trust in politicians ......................................... 2.6 ............91 Irregular payments and bribes ................................ 2.8 ..........129 Judicial independence............................................ 2.3 ..........129 Favoritism in decisions of government officials ....... 2.6 ..........102 Wastefulness of government spending ................... 2.5 ..........110 Burden of government regulation ........................... 3.4 ............85 Efficiency of legal framework in settling disputes .... 3.1 ..........114 Efficiency of legal framework in challenging regs. ... 2.7 ..........116 Transparency of government policymaking............. 3.2 ..........130 Business costs of terrorism .................................... 4.7 ..........100 Business costs of crime and violence..................... 4.1 ............91 Organized crime ..................................................... 4.5 ............86 Reliability of police services .................................... 2.9 ..........123 Ethical behavior of firms ......................................... 3.8 ............89 Strength of auditing and reporting standards ......... 3.7 ..........127 Efficacy of corporate boards .................................. 4.2 ............97 Protection of minority shareholders’ interests ......... 3.6 ..........100 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.4 ..........109 Quality of roads ...................................................... 3.4 ............93 Quality of railroad infrastructure .............................. 1.6 ............98 Quality of port infrastructure ................................... 3.6 ............97 Quality of air transport infrastructure....................... 3.6 ..........106 Available airline seat km/week, millions* ............... 94.0 ............83 Quality of electricity supply ..................................... 3.0 ..........110 Mobile telephone subscriptions/100 pop.* ......... 133.9 ............39 Fixed telephone lines/100 pop.* ............................. 2.8 ..........116 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.0 ............72 Gross national savings, % GDP* .......................... 14.9 ..........107 Inflation, annual % change* .................................... 3.0 ............58 General government debt, % GDP* ..................... 28.1 ............30 Country credit rating, 0–100 (best)* ...................... 26.7 ..........117 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 1,076.4 ............42 Business impact of malaria .................................... 4.5 ............45 Tuberculosis cases/100,000 pop.* ..................... 411.0 ..........134 Business impact of tuberculosis ............................. 4.2 ..........123 HIV prevalence, % adult pop.* ............................... 0.8 ..........104 Business impact of HIV/AIDS ................................. 4.4 ..........112 Infant mortality, deaths/1,000 live births* .............. 33.9 ..........107 Life expectancy, years*......................................... 71.4 ............87 Quality of primary education ................................... 2.9 ..........113 Primary education enrollment, net %* .................. 98.4 ............24 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 45.0 ..........125 Tertiary education enrollment, gross %*................ 15.8 ..........101 Quality of the education system ............................. 3.2 ..........101 Quality of math and science education .................. 3.2 ..........111 Quality of management schools ............................. 3.3 ..........123 Internet access in schools ...................................... 3.6 ..........100 Availability of research and training services ........... 3.6 ..........104 Extent of staff training ............................................ 3.9 ............82 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 11 ..........128 No. days to start a business* ............................. 104.0 ..........141 Agricultural policy costs.......................................... 3.8 ............75 Prevalence of trade barriers ................................... 4.3 ............88 Trade tariffs, % duty* ............................................ 13.0 ..........128 Prevalence of foreign ownership............................. 4.7 ............64 Business impact of rules on FDI ............................. 4.8 ............33 Burden of customs procedures .............................. 3.1 ..........128 Imports as a percentage of GDP* ........................ 93.7 ..............9 Degree of customer orientation .............................. 4.4 ............77 Buyer sophistication ............................................... 3.5 ............66 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............74 Flexibility of wage determination ............................. 4.8 ............92 Hiring and firing practices ....................................... 4.8 ............13 Redundancy costs, weeks of salary* .................... 19.4 ............92 Effect of taxation on incentives to work .................. 4.1 ............34 Pay and productivity............................................... 4.3 ............39 Reliance on professional management ................... 3.9 ............89 Country capacity to retain talent............................. 3.7 ............51 Country capacity to attract talent ........................... 3.6 ............56 Women in labor force, ratio to men* ..................... 0.93 ............18 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............91 Affordability of financial services ............................. 3.9 ............92 Financing through local equity market .................... 2.2 ..........131 Ease of access to loans ......................................... 2.7 ............80 Venture capital availability ....................................... 2.7 ............60 Soundness of banks .............................................. 4.5 ............88 Regulation of securities exchanges ........................ 3.2 ..........118 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.5 ............87 Firm-level technology absorption ............................ 4.3 ............97 FDI and technology transfer ................................... 4.8 ............51 Individuals using Internet, %* ................................. 6.0 ..........129 Fixed broadband Internet subscriptions/100 pop.* ... 0.2 ..........120 Int’l Internet bandwidth, kb/s per user* .................. 9.3 ..........104 Mobile broadband subscriptions/100 pop.*............ 9.6 ............98 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.0 ............92 Foreign market size index, 1–7 (best)* .................... 4.3 ............79 GDP (PPP$ billions)* ............................................ 39.7 ............96 Exports as a percentage of GDP* ........................ 74.2 ............21 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.9 ..........124 Local supplier quality.............................................. 3.5 ..........127 State of cluster development.................................. 3.9 ............64 Nature of competitive advantage ............................ 2.7 ..........123 Value chain breadth................................................ 3.4 ..........103 Control of international distribution ......................... 3.4 ..........124 Production process sophistication.......................... 3.2 ..........112 Extent of marketing ................................................ 4.0 ............87 Willingness to delegate authority ............................ 3.4 ..........104 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.4 ..........101 Quality of scientific research institutions ................. 2.9 ..........118 Company spending on R&D................................... 3.1 ............79 University-industry collaboration in R&D ................. 3.0 ..........115 Gov’t procurement of advanced tech products ...... 3.1 ..........104 Availability of scientists and engineers .................... 3.2 ..........123 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............86 Extent of market dominance .................................. 3.5 ............87 Effectiveness of anti-monopoly policy ..................... 4.0 ............74 Effect of taxation on incentives to invest................. 4.1 ............35 Total tax rate, % profits* ....................................... 21.4 ............14 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 143 2.1: Country/Economy Profiles Cameroon Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 22.0 GDP (US$ billions) .......................................... 28.0 GDP per capita (US$) ................................... 1,271 GDP (PPP) as share (%) of world total ............ 0.06 Cameroon 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 116 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 115 ......3.7 GCI 2012–2013 (out of 144) ................................... 112 ......3.7 GCI 2011–2012 (out of 142) ................................... 116 ......3.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................116 ......3.8 7 Innovation Institutions ................................................................ 91 ......3.5 Infrastructure .......................................................... 126 ......2.5 Macroeconomic environment ................................... 90 ......4.4 Health and primary education ................................. 112 ......4.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................113 ......3.5 Market size Higher education and training ................................. 117 ......3.2 Goods market efficiency ........................................ 113 ......4.0 Labor market efficiency ............................................ 81 ......4.1 Financial market development ................................ 108 ......3.5 Technological readiness .......................................... 120 ......2.8 Market size ............................................................... 91 ......3.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............84 ......3.5 Business sophistication ........................................... 98 ......3.7 Innovation ................................................................. 71 ......3.3 Cameroon Sub-Saharan Africa The most problematic factors for doing business Corruption .........................................................................18.6 Access to financing ...........................................................17.9 Inadequate supply of infrastructure ....................................12.5 Tax regulations ....................................................................9.6 Tax rates..............................................................................8.6 Inefficient government bureaucracy .....................................6.2 Poor work ethic in national labor force ................................5.5 Insufficient capacity to innovate ...........................................3.8 Restrictive labor regulations .................................................3.6 Inadequately educated workforce ........................................3.3 Inflation ................................................................................3.3 Policy instability ...................................................................1.9 Poor public health ...............................................................1.6 Foreign currency regulations ................................................1.4 Crime and theft ...................................................................1.2 Government instability/coups ..............................................1.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 144 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Cameroon The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.6 ............99 Intellectual property protection ............................... 3.4 ............87 Diversion of public funds ........................................ 2.4 ..........121 Public trust in politicians ......................................... 2.6 ............87 Irregular payments and bribes ................................ 3.1 ..........115 Judicial independence............................................ 2.8 ..........113 Favoritism in decisions of government officials ....... 2.8 ............92 Wastefulness of government spending ................... 2.8 ............86 Burden of government regulation ........................... 3.4 ............79 Efficiency of legal framework in settling disputes .... 3.5 ............78 Efficiency of legal framework in challenging regs. ... 3.3 ............74 Transparency of government policymaking............. 4.0 ............62 Business costs of terrorism .................................... 5.0 ............87 Business costs of crime and violence..................... 4.4 ............72 Organized crime ..................................................... 4.6 ............79 Reliability of police services .................................... 4.3 ............62 Ethical behavior of firms ......................................... 3.7 ............97 Strength of auditing and reporting standards ......... 3.9 ..........115 Efficacy of corporate boards .................................. 4.8 ............54 Protection of minority shareholders’ interests ......... 3.9 ............86 Strength of investor protection, 0–10 (best)* .......... 4.3 ..........105 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.2 ..........116 Quality of roads ...................................................... 2.9 ..........116 Quality of railroad infrastructure .............................. 2.8 ............63 Quality of port infrastructure ................................... 3.6 ............95 Quality of air transport infrastructure....................... 3.3 ..........118 Available airline seat km/week, millions* ............... 51.4 ............99 Quality of electricity supply ..................................... 2.4 ..........126 Mobile telephone subscriptions/100 pop.* ........... 70.4 ..........123 Fixed telephone lines/100 pop.* ............................. 3.6 ..........109 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.2 ............95 Gross national savings, % GDP* .......................... 16.2 ............96 Inflation, annual % change* .................................... 2.1 ..............1 General government debt, % GDP* ..................... 18.6 ............16 Country credit rating, 0–100 (best)* ...................... 25.9 ..........118 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 17,051.0 ............58 Business impact of malaria .................................... 3.8 ............59 Tuberculosis cases/100,000 pop.* ..................... 238.0 ..........125 Business impact of tuberculosis ............................. 4.1 ..........127 HIV prevalence, % adult pop.* ............................... 4.5 ..........131 Business impact of HIV/AIDS ................................. 4.0 ..........124 Infant mortality, deaths/1,000 live births* .............. 61.1 ..........131 Life expectancy, years*......................................... 54.6 ..........134 Quality of primary education ................................... 3.7 ............81 Primary education enrollment, net %* .................. 91.5 ............93 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 50.4 ..........121 Tertiary education enrollment, gross %*................ 11.9 ..........110 Quality of the education system ............................. 3.8 ............62 Quality of math and science education .................. 4.3 ............65 Quality of management schools ............................. 4.4 ............58 Internet access in schools ...................................... 2.7 ..........127 Availability of research and training services ........... 4.0 ............77 Extent of staff training ............................................ 4.0 ............69 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 15.0 ............75 Agricultural policy costs.......................................... 3.3 ..........112 Prevalence of trade barriers ................................... 3.9 ..........120 Trade tariffs, % duty* ............................................ 14.3 ..........132 Prevalence of foreign ownership............................. 4.8 ............61 Business impact of rules on FDI ............................. 4.5 ............69 Burden of customs procedures .............................. 3.6 ............90 Imports as a percentage of GDP* ........................ 33.9 ..........104 Degree of customer orientation .............................. 4.2 ............96 Buyer sophistication ............................................... 2.8 ..........123 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.6 ..........128 Flexibility of wage determination ............................. 4.7 ............98 Hiring and firing practices ....................................... 4.2 ............38 Redundancy costs, weeks of salary* .................... 15.3 ............72 Effect of taxation on incentives to work .................. 3.5 ............84 Pay and productivity............................................... 3.4 ..........114 Reliance on professional management ................... 3.6 ..........109 Country capacity to retain talent............................. 3.0 ..........102 Country capacity to attract talent ........................... 2.9 ..........101 Women in labor force, ratio to men* ..................... 0.85 ............55 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.8 ..........106 Affordability of financial services ............................. 3.7 ..........109 Financing through local equity market .................... 2.9 ..........101 Ease of access to loans ......................................... 2.5 ............92 Venture capital availability ....................................... 2.3 ..........102 Soundness of banks .............................................. 4.5 ............92 Regulation of securities exchanges ........................ 2.9 ..........126 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.1 ..........112 Firm-level technology absorption ............................ 4.4 ............84 FDI and technology transfer ................................... 4.4 ............83 Individuals using Internet, %* ................................. 6.4 ..........127 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........130 Int’l Internet bandwidth, kb/s per user* .................. 3.2 ..........130 Mobile broadband subscriptions/100 pop.*............ 0.0 ..........133 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.1 ............85 Foreign market size index, 1–7 (best)* .................... 3.8 ............99 GDP (PPP$ billions)* ............................................ 53.3 ............88 Exports as a percentage of GDP* ........................ 23.0 ..........124 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.4 ............93 Local supplier quality.............................................. 3.9 ..........103 State of cluster development.................................. 3.5 ............87 Nature of competitive advantage ............................ 3.2 ............97 Value chain breadth................................................ 4.0 ............48 Control of international distribution ......................... 3.4 ..........125 Production process sophistication.......................... 3.5 ............93 Extent of marketing ................................................ 3.8 ............98 Willingness to delegate authority ............................ 3.4 ..........108 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.8 ............64 Quality of scientific research institutions ................. 3.5 ............83 Company spending on R&D................................... 3.3 ............53 University-industry collaboration in R&D ................. 3.4 ............82 Gov’t procurement of advanced tech products ...... 3.8 ............41 Availability of scientists and engineers .................... 4.1 ............64 PCT patents, applications/million pop.* .................. 0.1 ..........107 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.6 ..........109 Extent of market dominance .................................. 3.8 ............65 Effectiveness of anti-monopoly policy ..................... 3.9 ............78 Effect of taxation on incentives to invest................. 3.4 ............98 Total tax rate, % profits* ....................................... 48.8 ..........108 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 145 2.1: Country/Economy Profiles Canada Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 35.1 GDP (US$ billions) ..................................... 1,825.1 GDP per capita (US$) ................................. 51,990 GDP (PPP) as share (%) of world total ............ 1.75 Canada 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 15 ..... 5.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 14 ......5.2 GCI 2012–2013 (out of 144) ..................................... 14 ......5.3 GCI 2011–2012 (out of 142) ..................................... 12 ......5.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................18 ......5.7 7 Innovation Institutions ................................................................ 14 ......5.4 Infrastructure ............................................................ 15 ......5.7 Macroeconomic environment ................................... 51 ......5.1 Health and primary education ..................................... 7 ......6.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .......................................6 ......5.4 Market size Higher education and training ................................... 18 ......5.5 Goods market efficiency .......................................... 15 ......5.1 Labor market efficiency .............................................. 7 ......5.2 Financial market development .................................... 8 ......5.4 Technological readiness ............................................ 22 ......5.6 Market size ............................................................... 13 ......5.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........24 ......4.7 Business sophistication ........................................... 23 ......4.9 Innovation ................................................................. 22 ......4.5 Canada Advanced economies The most problematic factors for doing business Access to financing ...........................................................15.6 Tax rates............................................................................15.1 Inefficient government bureaucracy ...................................12.5 Insufficient capacity to innovate ...........................................9.7 Restrictive labor regulations .................................................9.7 Inadequate supply of infrastructure ......................................9.1 Tax regulations ....................................................................9.1 Inadequately educated workforce ........................................7.8 Poor work ethic in national labor force ................................4.9 Policy instability ...................................................................3.5 Inflation ................................................................................0.9 Government instability/coups ..............................................0.8 Corruption ...........................................................................0.7 Foreign currency regulations ................................................0.6 Crime and theft ...................................................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 146 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Canada The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.0 ..............9 Intellectual property protection ............................... 5.7 ............12 Diversion of public funds ........................................ 5.2 ............20 Public trust in politicians ......................................... 4.8 ............13 Irregular payments and bribes ................................ 5.8 ............17 Judicial independence............................................ 6.2 ..............9 Favoritism in decisions of government officials ....... 4.4 ............18 Wastefulness of government spending ................... 4.1 ............23 Burden of government regulation ........................... 3.8 ............39 Efficiency of legal framework in settling disputes .... 5.5 ............10 Efficiency of legal framework in challenging regs. ... 4.8 ............11 Transparency of government policymaking............. 5.1 ............18 Business costs of terrorism .................................... 5.2 ............74 Business costs of crime and violence..................... 5.2 ............34 Organized crime ..................................................... 5.3 ............50 Reliability of police services .................................... 6.1 ............11 Ethical behavior of firms ......................................... 5.6 ............13 Strength of auditing and reporting standards ......... 6.2 ..............6 Efficacy of corporate boards .................................. 5.6 ..............9 Protection of minority shareholders’ interests ......... 5.4 ............11 Strength of investor protection, 0–10 (best)* .......... 8.7 ..............4 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.6 ............19 Quality of roads ...................................................... 5.3 ............23 Quality of railroad infrastructure .............................. 4.8 ............18 Quality of port infrastructure ................................... 5.5 ............21 Quality of air transport infrastructure....................... 5.9 ............16 Available airline seat km/week, millions* .......... 3,389.7 ............13 Quality of electricity supply ..................................... 6.5 ............13 Mobile telephone subscriptions/100 pop.* ........... 78.4 ..........115 Fixed telephone lines/100 pop.* ........................... 49.7 ............13 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.0 ............74 Gross national savings, % GDP* .......................... 21.1 ............61 Inflation, annual % change* .................................... 1.0 ..............1 General government debt, % GDP* ..................... 89.1 ..........124 Country credit rating, 0–100 (best)* ...................... 93.1 ..............3 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 4.6 ..............7 Business impact of tuberculosis ............................. 6.6 ............20 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 6.3 ............26 Infant mortality, deaths/1,000 live births* ................ 4.7 ............33 Life expectancy, years*......................................... 81.2 ............16 Quality of primary education ................................... 5.5 ............11 Primary education enrollment, net %* .................. 99.9 ..............2 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 103.4 ............23 Tertiary education enrollment, gross %*................ 58.9 ............45 Quality of the education system ............................. 5.2 ............11 Quality of math and science education .................. 5.1 ............19 Quality of management schools ............................. 5.8 ..............7 Internet access in schools ...................................... 6.2 ..............9 Availability of research and training services ........... 5.3 ............20 Extent of staff training ............................................ 4.7 ............22 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 1 ..............1 No. days to start a business* ................................. 5.0 ............14 Agricultural policy costs.......................................... 4.2 ............28 Prevalence of trade barriers ................................... 4.3 ............81 Trade tariffs, % duty* .............................................. 2.7 ............40 Prevalence of foreign ownership............................. 5.5 ............13 Business impact of rules on FDI ............................. 4.6 ............52 Burden of customs procedures .............................. 4.9 ............28 Imports as a percentage of GDP* ........................ 31.7 ..........109 Degree of customer orientation .............................. 5.4 ............15 Buyer sophistication ............................................... 4.3 ............16 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.0 ............26 Flexibility of wage determination ............................. 5.4 ............46 Hiring and firing practices ....................................... 4.4 ............26 Redundancy costs, weeks of salary* .................... 10.0 ............37 Effect of taxation on incentives to work .................. 4.3 ............23 Pay and productivity............................................... 4.5 ............29 Reliance on professional management ................... 5.9 ..............8 Country capacity to retain talent............................. 4.8 ............14 Country capacity to attract talent ........................... 5.2 ..............9 Women in labor force, ratio to men* ..................... 0.91 ............26 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.1 ..............5 Affordability of financial services ............................. 5.8 ..............8 Financing through local equity market .................... 4.9 ............11 Ease of access to loans ......................................... 3.8 ............18 Venture capital availability ....................................... 3.6 ............17 Soundness of banks .............................................. 6.7 ..............1 Regulation of securities exchanges ........................ 5.6 ............10 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.2 ............16 Firm-level technology absorption ............................ 5.4 ............30 FDI and technology transfer ................................... 4.6 ............71 Individuals using Internet, %* ............................... 85.8 ............13 Fixed broadband Internet subscriptions/100 pop.* . 33.3 ............12 Int’l Internet bandwidth, kb/s per user* .............. 115.9 ............22 Mobile broadband subscriptions/100 pop.*.......... 41.0 ............52 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.4 ............13 Foreign market size index, 1–7 (best)* .................... 5.8 ............21 GDP (PPP$ billions)* ....................................... 1,526.1 ............13 Exports as a percentage of GDP* ........................ 29.4 ............99 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.0 ............30 Local supplier quality.............................................. 5.5 ............14 State of cluster development.................................. 4.8 ............19 Nature of competitive advantage ............................ 4.2 ............35 Value chain breadth................................................ 4.0 ............47 Control of international distribution ......................... 4.5 ............32 Production process sophistication.......................... 5.3 ............20 Extent of marketing ................................................ 5.3 ............18 Willingness to delegate authority ............................ 5.1 ............11 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.6 ............26 Quality of scientific research institutions ................. 5.5 ............15 Company spending on R&D................................... 3.9 ............27 University-industry collaboration in R&D ................. 4.9 ............19 Gov’t procurement of advanced tech products ...... 3.7 ............48 Availability of scientists and engineers .................... 5.1 ............12 PCT patents, applications/million pop.* ................ 84.8 ............19 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.5 ............33 Extent of market dominance .................................. 4.7 ............21 Effectiveness of anti-monopoly policy ..................... 4.8 ............22 Effect of taxation on incentives to invest................. 4.4 ............24 Total tax rate, % profits* ....................................... 24.3 ............20 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 147 2.1: Country/Economy Profiles Cape Verde Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.5 GDP (US$ billions) ............................................ 1.9 GDP per capita (US$) ................................... 3,837 GDP (PPP) as share (%) of world total ............ 0.00 Cape Verde 5,000 Sub-Saharan Africa 4,000 3,000 2,000 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 114 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 122 ......3.5 GCI 2012–2013 (out of 144) ................................... 122 ......3.5 GCI 2011–2012 (out of 142) ................................... 119 ......3.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................91 ......4.3 7 Innovation Institutions ................................................................ 66 ......3.9 Infrastructure .......................................................... 104 ......3.1 Macroeconomic environment ................................. 106 ......4.1 Health and primary education ................................... 57 ......6.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) ...................................127 ......3.3 Market size Higher education and training ................................... 89 ......3.9 Goods market efficiency ........................................ 110 ......4.0 Labor market efficiency .......................................... 126 ......3.6 Financial market development ................................ 115 ......3.4 Technological readiness ............................................ 80 ......3.5 Market size ............................................................. 144 ......1.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........109 ......3.2 Business sophistication ......................................... 114 ......3.5 Innovation ............................................................... 101 ......3.0 Cape Verde Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................21.1 Tax rates............................................................................15.0 Inefficient government bureaucracy ...................................11.0 Inadequately educated workforce ........................................9.1 Restrictive labor regulations .................................................9.1 Inadequate supply of infrastructure ......................................6.0 Tax regulations ....................................................................5.9 Poor work ethic in national labor force ................................4.4 Corruption ...........................................................................4.3 Insufficient capacity to innovate ...........................................4.3 Crime and theft ...................................................................3.0 Inflation ................................................................................3.0 Poor public health ...............................................................1.7 Policy instability ...................................................................1.4 Foreign currency regulations ................................................0.5 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 148 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Cape Verde The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.8 ............93 Intellectual property protection ............................... 3.2 ............97 Diversion of public funds ........................................ 3.8 ............48 Public trust in politicians ......................................... 3.6 ............40 Irregular payments and bribes ................................ 4.4 ............51 Judicial independence............................................ 4.2 ............51 Favoritism in decisions of government officials ....... 3.4 ............50 Wastefulness of government spending ................... 3.6 ............42 Burden of government regulation ........................... 3.6 ............49 Efficiency of legal framework in settling disputes .... 3.6 ............77 Efficiency of legal framework in challenging regs. ... 3.4 ............66 Transparency of government policymaking............. 4.1 ............60 Business costs of terrorism .................................... 5.2 ............75 Business costs of crime and violence..................... 3.8 ..........101 Organized crime ..................................................... 4.3 ..........100 Reliability of police services .................................... 4.4 ............56 Ethical behavior of firms ......................................... 4.1 ............60 Strength of auditing and reporting standards ......... 3.9 ..........112 Efficacy of corporate boards .................................. 4.1 ..........107 Protection of minority shareholders’ interests ......... 3.7 ............98 Strength of investor protection, 0–10 (best)* .......... 4.0 ..........113 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.7 ............94 Quality of roads ...................................................... 4.0 ............64 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 3.9 ............84 Quality of air transport infrastructure....................... 3.8 ............95 Available airline seat km/week, millions* ............... 40.4 ..........106 Quality of electricity supply ..................................... 2.7 ..........120 Mobile telephone subscriptions/100 pop.* ......... 100.1 ............94 Fixed telephone lines/100 pop.* ........................... 13.3 ............80 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –7.7 ..........133 Gross national savings, % GDP* .......................... 34.6 ............16 Inflation, annual % change* .................................... 1.5 ..............1 General government debt, % GDP* ..................... 95.0 ..........131 Country credit rating, 0–100 (best)* ...................... 31.9 ..........102 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 22.2 ............21 Business impact of malaria .................................... 5.5 ............20 Tuberculosis cases/100,000 pop.* ..................... 144.0 ..........105 Business impact of tuberculosis ............................. 5.3 ............82 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 5.4 ............74 Infant mortality, deaths/1,000 live births* .............. 18.9 ............90 Life expectancy, years*......................................... 74.5 ............63 Quality of primary education ................................... 4.0 ............68 Primary education enrollment, net %* .................. 97.2 ............43 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 92.7 ............63 Tertiary education enrollment, gross %*................ 20.6 ............90 Quality of the education system ............................. 3.9 ............57 Quality of math and science education .................. 3.9 ............86 Quality of management schools ............................. 3.7 ..........107 Internet access in schools ...................................... 3.8 ............90 Availability of research and training services ........... 3.5 ..........108 Extent of staff training ............................................ 3.7 ..........104 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 10.0 ............52 Agricultural policy costs.......................................... 4.0 ............53 Prevalence of trade barriers ................................... 4.1 ..........101 Trade tariffs, % duty* ............................................ 10.3 ..........105 Prevalence of foreign ownership............................. 4.5 ............69 Business impact of rules on FDI ............................. 4.3 ............85 Burden of customs procedures .............................. 3.2 ..........120 Imports as a percentage of GDP* ........................ 51.0 ............61 Degree of customer orientation .............................. 3.6 ..........129 Buyer sophistication ............................................... 2.9 ..........110 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.9 ..........114 Flexibility of wage determination ............................. 4.9 ............80 Hiring and firing practices ....................................... 3.4 ..........111 Redundancy costs, weeks of salary* .................... 29.5 ..........127 Effect of taxation on incentives to work .................. 3.4 ............89 Pay and productivity............................................... 3.3 ..........118 Reliance on professional management ................... 3.4 ..........121 Country capacity to retain talent............................. 3.7 ............54 Country capacity to attract talent ........................... 3.6 ............62 Women in labor force, ratio to men* ..................... 0.64 ..........108 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........119 Affordability of financial services ............................. 3.8 ..........100 Financing through local equity market .................... 3.0 ............94 Ease of access to loans ......................................... 2.5 ..........100 Venture capital availability ....................................... 2.5 ............91 Soundness of banks .............................................. 4.4 ............96 Regulation of securities exchanges ........................ 3.7 ............96 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.7 ............75 Firm-level technology absorption ............................ 4.6 ............69 FDI and technology transfer ................................... 4.7 ............61 Individuals using Internet, %* ............................... 37.5 ............89 Fixed broadband Internet subscriptions/100 pop.* ... 4.3 ............86 Int’l Internet bandwidth, kb/s per user* ................ 11.6 ............94 Mobile broadband subscriptions/100 pop.*.......... 42.6 ............48 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.0 ..........144 Foreign market size index, 1–7 (best)* .................... 2.2 ..........142 GDP (PPP$ billions)* .............................................. 2.2 ..........144 Exports as a percentage of GDP* ........................ 36.5 ............75 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.8 ..........128 Local supplier quality.............................................. 3.7 ..........117 State of cluster development.................................. 3.4 ..........101 Nature of competitive advantage ............................ 3.3 ............89 Value chain breadth................................................ 3.3 ..........114 Control of international distribution ......................... 3.3 ..........130 Production process sophistication.......................... 3.5 ............94 Extent of marketing ................................................ 3.7 ..........108 Willingness to delegate authority ............................ 3.3 ..........110 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............97 Quality of scientific research institutions ................. 3.1 ..........108 Company spending on R&D................................... 2.8 ..........107 University-industry collaboration in R&D ................. 3.2 ............97 Gov’t procurement of advanced tech products ...... 3.9 ............36 Availability of scientists and engineers .................... 3.3 ..........112 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.5 ..........117 Extent of market dominance .................................. 3.9 ............53 Effectiveness of anti-monopoly policy ..................... 3.8 ............88 Effect of taxation on incentives to invest................. 3.2 ..........116 Total tax rate, % profits* ....................................... 37.2 ............70 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 149 2.1: Country/Economy Profiles Chad Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 11.0 GDP (US$ billions) .......................................... 13.4 GDP per capita (US$) ................................... 1,218 GDP (PPP) as share (%) of world total ............ 0.03 Chad 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 143 ..... 2.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 148 ......2.9 GCI 2012–2013 (out of 144) ................................... 139 ......3.1 GCI 2011–2012 (out of 142) ................................... 142 ......2.9 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................143 ......2.9 7 Innovation Institutions .............................................................. 140 ......2.7 Infrastructure .......................................................... 144 ......1.7 Macroeconomic environment ................................... 73 ......4.7 Health and primary education ................................. 144 ......2.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................142 ......2.7 Market size Higher education and training ................................. 143 ......2.0 Goods market efficiency ........................................ 142 ......2.9 Labor market efficiency .......................................... 120 ......3.7 Financial market development ................................ 136 ......2.7 Technological readiness .......................................... 143 ......2.1 Market size ............................................................. 106 ......2.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........141 ......2.6 Business sophistication ......................................... 143 ......2.8 Innovation ............................................................... 139 ......2.3 Chad Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................21.3 Corruption .........................................................................14.2 Inadequate supply of infrastructure ....................................10.3 Inadequately educated workforce ........................................7.3 Inefficient government bureaucracy .....................................6.5 Tax regulations ....................................................................6.0 Tax rates..............................................................................5.6 Policy instability ...................................................................5.5 Restrictive labor regulations .................................................4.9 Insufficient capacity to innovate ...........................................4.7 Poor work ethic in national labor force ................................4.0 Government instability/coups ..............................................3.0 Crime and theft ...................................................................2.9 Poor public health ...............................................................1.4 Foreign currency regulations ................................................1.3 Inflation ................................................................................1.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 150 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Chad The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.5 ..........140 Intellectual property protection ............................... 2.5 ..........134 Diversion of public funds ........................................ 1.8 ..........138 Public trust in politicians ......................................... 2.4 ..........103 Irregular payments and bribes ................................ 2.3 ..........138 Judicial independence............................................ 2.2 ..........133 Favoritism in decisions of government officials ....... 2.1 ..........133 Wastefulness of government spending ................... 2.6 ..........105 Burden of government regulation ........................... 2.9 ..........113 Efficiency of legal framework in settling disputes .... 2.5 ..........133 Efficiency of legal framework in challenging regs. ... 2.0 ..........142 Transparency of government policymaking............. 2.8 ..........140 Business costs of terrorism .................................... 3.2 ..........134 Business costs of crime and violence..................... 3.0 ..........126 Organized crime ..................................................... 3.5 ..........131 Reliability of police services .................................... 2.6 ..........134 Ethical behavior of firms ......................................... 3.2 ..........134 Strength of auditing and reporting standards ......... 3.2 ..........136 Efficacy of corporate boards .................................. 3.5 ..........139 Protection of minority shareholders’ interests ......... 2.8 ..........140 Strength of investor protection, 0–10 (best)* .......... 3.3 ..........123 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.3 ..........139 Quality of roads ...................................................... 2.6 ..........128 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 1.8 ..........142 Quality of air transport infrastructure....................... 2.3 ..........142 Available airline seat km/week, millions* ............... 10.1 ..........135 Quality of electricity supply ..................................... 1.7 ..........140 Mobile telephone subscriptions/100 pop.* ........... 35.6 ..........140 Fixed telephone lines/100 pop.* ............................. 0.2 ..........140 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.4 ............61 Gross national savings, % GDP* .......................... 18.3 ............79 Inflation, annual % change* .................................... 0.2 ............65 General government debt, % GDP* ..................... 30.2 ............36 Country credit rating, 0–100 (best)* ...................... 15.5 ..........138 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 26,509.9 ............67 Business impact of malaria .................................... 2.8 ............75 Tuberculosis cases/100,000 pop.* ..................... 151.0 ..........107 Business impact of tuberculosis ............................. 3.4 ..........140 HIV prevalence, % adult pop.* ............................... 2.7 ..........126 Business impact of HIV/AIDS ................................. 3.4 ..........138 Infant mortality, deaths/1,000 live births* .............. 89.4 ..........142 Life expectancy, years*......................................... 50.7 ..........138 Quality of primary education ................................... 2.3 ..........134 Primary education enrollment, net %* .................. 63.1 ..........139 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 22.8 ..........144 Tertiary education enrollment, gross %*.................. 2.3 ..........138 Quality of the education system ............................. 2.5 ..........135 Quality of math and science education .................. 2.8 ..........127 Quality of management schools ............................. 2.7 ..........137 Internet access in schools ...................................... 1.5 ..........144 Availability of research and training services ........... 2.7 ..........142 Extent of staff training ............................................ 2.8 ..........139 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 62.0 ..........133 Agricultural policy costs.......................................... 3.4 ..........108 Prevalence of trade barriers ................................... 3.2 ..........142 Trade tariffs, % duty* ............................................ 14.6 ..........135 Prevalence of foreign ownership............................. 3.3 ..........128 Business impact of rules on FDI ............................. 3.1 ..........131 Burden of customs procedures .............................. 2.1 ..........141 Imports as a percentage of GDP* ........................ 42.1 ............81 Degree of customer orientation .............................. 2.8 ..........143 Buyer sophistication ............................................... 2.0 ..........142 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.6 ..........127 Flexibility of wage determination ............................. 5.1 ............66 Hiring and firing practices ....................................... 3.3 ..........114 Redundancy costs, weeks of salary* .................... 13.0 ............57 Effect of taxation on incentives to work .................. 2.7 ..........134 Pay and productivity............................................... 2.8 ..........135 Reliance on professional management ................... 2.1 ..........143 Country capacity to retain talent............................. 2.4 ..........129 Country capacity to attract talent ........................... 2.9 ............99 Women in labor force, ratio to men* ..................... 0.82 ............68 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.6 ..........142 Affordability of financial services ............................. 2.9 ..........140 Financing through local equity market .................... 1.8 ..........139 Ease of access to loans ......................................... 2.1 ..........124 Venture capital availability ....................................... 1.9 ..........136 Soundness of banks .............................................. 3.2 ..........134 Regulation of securities exchanges ........................ 1.8 ..........142 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 2.9 ..........143 Firm-level technology absorption ............................ 3.3 ..........140 FDI and technology transfer ................................... 3.4 ..........137 Individuals using Internet, %* ................................. 2.3 ..........136 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........125 Int’l Internet bandwidth, kb/s per user* .................. 0.6 ..........142 Mobile broadband subscriptions/100 pop.*............ 0.0 ..........133 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.7 ..........108 Foreign market size index, 1–7 (best)* .................... 3.7 ..........106 GDP (PPP$ billions)* ............................................ 28.0 ..........103 Exports as a percentage of GDP* ........................ 37.3 ............73 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.0 ..........118 Local supplier quality.............................................. 2.7 ..........143 State of cluster development.................................. 2.8 ..........136 Nature of competitive advantage ............................ 2.7 ..........127 Value chain breadth................................................ 3.1 ..........125 Control of international distribution ......................... 2.7 ..........144 Production process sophistication.......................... 2.3 ..........143 Extent of marketing ................................................ 2.5 ..........144 Willingness to delegate authority ............................ 2.4 ..........140 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.8 ..........139 Quality of scientific research institutions ................. 2.2 ..........139 Company spending on R&D................................... 2.2 ..........136 University-industry collaboration in R&D ................. 2.2 ..........139 Gov’t procurement of advanced tech products ...... 2.6 ..........133 Availability of scientists and engineers .................... 3.2 ..........124 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.8 ..........137 Extent of market dominance .................................. 2.7 ..........139 Effectiveness of anti-monopoly policy ..................... 2.7 ..........141 Effect of taxation on incentives to invest................. 2.4 ..........140 Total tax rate, % profits* ....................................... 73.8 ..........138 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 151 2.1: Country/Economy Profiles Chile Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 17.6 GDP (US$ billions) ........................................ 277.0 GDP per capita (US$) ................................. 15,776 GDP (PPP) as share (%) of world total ............ 0.39 Chile 20,000 Latin America and the Caribbean 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 33 ..... 4.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 34 ......4.6 GCI 2012–2013 (out of 144) ..................................... 33 ......4.6 GCI 2011–2012 (out of 142) ..................................... 31 ......4.7 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (23.1%) .......................................30 ......5.3 Innovation Institutions ................................................................ 28 ......4.8 Infrastructure ............................................................ 49 ......4.6 Macroeconomic environment ................................... 22 ......5.9 Health and primary education ................................... 70 ......5.7 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................29 ......4.7 Market size Higher education and training ................................... 32 ......5.1 Goods market efficiency .......................................... 34 ......4.7 Labor market efficiency ............................................ 50 ......4.4 Financial market development .................................. 19 ......4.9 Technological readiness ............................................ 42 ......4.6 Market size ............................................................... 41 ......4.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (26.9%) ...........49 ......3.9 Business sophistication ........................................... 55 ......4.2 Innovation ................................................................. 48 ......3.5 Chile Latin America and the Caribbean The most problematic factors for doing business Restrictive labor regulations ...............................................18.4 Inadequately educated workforce ......................................16.3 Inefficient government bureaucracy ...................................12.5 Insufficient capacity to innovate .........................................10.5 Tax regulations ..................................................................10.0 Tax rates..............................................................................7.4 Inadequate supply of infrastructure ......................................7.3 Access to financing .............................................................6.5 Poor work ethic in national labor force ................................3.6 Poor public health ...............................................................3.1 Policy instability ...................................................................1.3 Corruption ...........................................................................1.0 Crime and theft ...................................................................0.9 Inflation ................................................................................0.5 Foreign currency regulations ................................................0.3 Government instability/coups ..............................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 152 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Chile The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.0 ............38 Intellectual property protection ............................... 3.9 ............56 Diversion of public funds ........................................ 5.0 ............23 Public trust in politicians ......................................... 3.7 ............35 Irregular payments and bribes ................................ 5.7 ............21 Judicial independence............................................ 5.2 ............27 Favoritism in decisions of government officials ....... 4.0 ............27 Wastefulness of government spending ................... 4.2 ............21 Burden of government regulation ........................... 4.0 ............21 Efficiency of legal framework in settling disputes .... 4.4 ............30 Efficiency of legal framework in challenging regs. ... 4.1 ............33 Transparency of government policymaking............. 5.0 ............19 Business costs of terrorism .................................... 5.5 ............56 Business costs of crime and violence..................... 4.6 ............61 Organized crime ..................................................... 5.5 ............45 Reliability of police services .................................... 6.3 ..............4 Ethical behavior of firms ......................................... 5.0 ............26 Strength of auditing and reporting standards ......... 5.2 ............39 Efficacy of corporate boards .................................. 5.2 ............28 Protection of minority shareholders’ interests ......... 4.6 ............42 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.7 ............50 Quality of roads ...................................................... 5.1 ............31 Quality of railroad infrastructure .............................. 2.5 ............73 Quality of port infrastructure ................................... 5.0 ............35 Quality of air transport infrastructure....................... 5.0 ............45 Available airline seat km/week, millions* ............. 560.1 ............40 Quality of electricity supply ..................................... 5.4 ............54 Mobile telephone subscriptions/100 pop.* ......... 134.3 ............38 Fixed telephone lines/100 pop.* ........................... 18.2 ............64 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.7 ............32 Gross national savings, % GDP* .......................... 20.5 ............65 Inflation, annual % change* .................................... 1.8 ..............1 General government debt, % GDP* ..................... 12.2 ..............8 Country credit rating, 0–100 (best)* ...................... 80.6 ............20 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 16.0 ............37 Business impact of tuberculosis ............................. 6.6 ............19 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 6.0 ............47 Infant mortality, deaths/1,000 live births* ................ 7.8 ............48 Life expectancy, years*......................................... 79.6 ............33 Quality of primary education ................................... 3.3 ............99 Primary education enrollment, net %* .................. 92.7 ............81 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 89.0 ............71 Tertiary education enrollment, gross %*................ 74.4 ............20 Quality of the education system ............................. 3.7 ............71 Quality of math and science education .................. 3.5 ............99 Quality of management schools ............................. 5.4 ............13 Internet access in schools ...................................... 5.1 ............42 Availability of research and training services ........... 4.5 ............46 Extent of staff training ............................................ 4.2 ............52 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ................................. 5.5 ............18 Agricultural policy costs.......................................... 4.5 ............14 Prevalence of trade barriers ................................... 4.8 ............22 Trade tariffs, % duty* .............................................. 4.6 ............66 Prevalence of foreign ownership............................. 5.5 ............14 Business impact of rules on FDI ............................. 5.3 ............18 Burden of customs procedures .............................. 5.0 ............27 Imports as a percentage of GDP* ........................ 34.4 ..........102 Degree of customer orientation .............................. 4.3 ............88 Buyer sophistication ............................................... 4.0 ............29 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.6 ............48 Flexibility of wage determination ............................. 5.6 ............25 Hiring and firing practices ....................................... 3.9 ............66 Redundancy costs, weeks of salary* .................... 27.4 ..........120 Effect of taxation on incentives to work .................. 4.2 ............28 Pay and productivity............................................... 4.3 ............41 Reliance on professional management ................... 4.7 ............39 Country capacity to retain talent............................. 4.8 ............15 Country capacity to attract talent ........................... 4.3 ............23 Women in labor force, ratio to men* ..................... 0.69 ............99 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.5 ............21 Affordability of financial services ............................. 4.9 ............42 Financing through local equity market .................... 4.4 ............26 Ease of access to loans ......................................... 3.7 ............20 Venture capital availability ....................................... 3.3 ............32 Soundness of banks .............................................. 6.3 ............11 Regulation of securities exchanges ........................ 5.3 ............23 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.7 ............31 Firm-level technology absorption ............................ 5.2 ............39 FDI and technology transfer ................................... 5.3 ............12 Individuals using Internet, %* ............................... 66.5 ............43 Fixed broadband Internet subscriptions/100 pop.* . 12.3 ............57 Int’l Internet bandwidth, kb/s per user* ................ 56.3 ............47 Mobile broadband subscriptions/100 pop.*.......... 35.6 ............60 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.3 ............41 Foreign market size index, 1–7 (best)* .................... 5.0 ............45 GDP (PPP$ billions)* .......................................... 334.8 ............42 Exports as a percentage of GDP* ........................ 32.5 ............89 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............81 Local supplier quality.............................................. 4.8 ............43 State of cluster development.................................. 3.9 ............61 Nature of competitive advantage ............................ 3.5 ............68 Value chain breadth................................................ 4.0 ............49 Control of international distribution ......................... 4.3 ............48 Production process sophistication.......................... 4.3 ............42 Extent of marketing ................................................ 4.8 ............36 Willingness to delegate authority ............................ 3.7 ............73 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............76 Quality of scientific research institutions ................. 4.0 ............51 Company spending on R&D................................... 3.1 ............77 University-industry collaboration in R&D ................. 4.2 ............39 Gov’t procurement of advanced tech products ...... 3.8 ............40 Availability of scientists and engineers .................... 4.6 ............29 PCT patents, applications/million pop.* .................. 6.7 ............43 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.6 ............27 Extent of market dominance .................................. 2.9 ..........133 Effectiveness of anti-monopoly policy ..................... 4.6 ............34 Effect of taxation on incentives to invest................. 4.2 ............31 Total tax rate, % profits* ....................................... 27.7 ............28 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 153 2.1: Country/Economy Profiles China Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ................................... 1,360.8 GDP (US$ billions) ..................................... 9,181.4 GDP per capita (US$) ................................... 6,747 GDP (PPP) as share (%) of world total .......... 15.40 China 10,000 Emerging and Developing Asia 8,000 6,000 4,000 2,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 28 ..... 4.9 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 29 ......4.8 GCI 2012–2013 (out of 144) ..................................... 29 ......4.8 GCI 2011–2012 (out of 142) ..................................... 26 ......4.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................28 ......5.3 7 Innovation Institutions ................................................................ 47 ......4.2 Infrastructure ............................................................ 46 ......4.7 Macroeconomic environment ................................... 10 ......6.4 Health and primary education ................................... 46 ......6.1 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................30 ......4.7 Market size Higher education and training ................................... 65 ......4.4 Goods market efficiency .......................................... 56 ......4.4 Labor market efficiency ............................................ 37 ......4.6 Financial market development .................................. 54 ......4.3 Technological readiness ............................................ 83 ......3.5 Market size ................................................................. 2 ......6.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........33 ......4.1 Business sophistication ........................................... 43 ......4.4 Innovation ................................................................. 32 ......3.9 China Emerging and Developing Asia The most problematic factors for doing business Access to financing ...........................................................15.8 Corruption .........................................................................12.4 Tax regulations ....................................................................9.1 Inadequate supply of infrastructure ......................................8.4 Inefficient government bureaucracy .....................................6.6 Inflation ................................................................................6.4 Policy instability ...................................................................6.3 Tax rates..............................................................................6.0 Insufficient capacity to innovate ...........................................5.0 Restrictive labor regulations .................................................4.9 Foreign currency regulations ................................................4.8 Inadequately educated workforce ........................................4.0 Government instability/coups ..............................................4.0 Poor work ethic in national labor force ................................3.6 Crime and theft ...................................................................1.8 Poor public health ...............................................................1.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 154 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles China The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.5 ............50 Intellectual property protection ............................... 4.0 ............53 Diversion of public funds ........................................ 3.9 ............45 Public trust in politicians ......................................... 4.1 ............26 Irregular payments and bribes ................................ 4.0 ............66 Judicial independence............................................ 4.0 ............60 Favoritism in decisions of government officials ....... 4.1 ............22 Wastefulness of government spending ................... 4.1 ............24 Burden of government regulation ........................... 4.1 ............19 Efficiency of legal framework in settling disputes .... 4.1 ............49 Efficiency of legal framework in challenging regs. ... 3.6 ............47 Transparency of government policymaking............. 4.5 ............33 Business costs of terrorism .................................... 5.0 ............85 Business costs of crime and violence..................... 4.8 ............52 Organized crime ..................................................... 4.7 ............70 Reliability of police services .................................... 4.3 ............61 Ethical behavior of firms ......................................... 4.2 ............55 Strength of auditing and reporting standards ......... 4.4 ............82 Efficacy of corporate boards .................................. 4.5 ............78 Protection of minority shareholders’ interests ......... 4.1 ............67 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.4 ............64 Quality of roads ...................................................... 4.6 ............49 Quality of railroad infrastructure .............................. 4.8 ............17 Quality of port infrastructure ................................... 4.6 ............53 Quality of air transport infrastructure....................... 4.7 ............58 Available airline seat km/week, millions* ........ 14,163.0 ..............2 Quality of electricity supply ..................................... 5.2 ............56 Mobile telephone subscriptions/100 pop.* ........... 88.7 ..........108 Fixed telephone lines/100 pop.* ........................... 19.3 ............59 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.9 ............50 Gross national savings, % GDP* .......................... 50.0 ..............5 Inflation, annual % change* .................................... 2.6 ..............1 General government debt, % GDP* ..................... 22.4 ............22 Country credit rating, 0–100 (best)* ...................... 77.5 ............25 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.5 ............15 Business impact of malaria .................................... 5.0 ............32 Tuberculosis cases/100,000 pop.* ....................... 73.0 ............84 Business impact of tuberculosis ............................. 4.9 ............96 HIV prevalence, % adult pop.* ............................. <0.1 ..............1 Business impact of HIV/AIDS ................................. 5.0 ............88 Infant mortality, deaths/1,000 live births* .............. 12.1 ............62 Life expectancy, years*......................................... 75.2 ............53 Quality of primary education ................................... 4.2 ............59 Primary education enrollment, net %* .................. 99.9 ..............4 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 89.0 ............72 Tertiary education enrollment, gross %*................ 26.7 ............85 Quality of the education system ............................. 4.0 ............52 Quality of math and science education .................. 4.3 ............56 Quality of management schools ............................. 3.9 ............85 Internet access in schools ...................................... 5.3 ............38 Availability of research and training services ........... 4.4 ............58 Extent of staff training ............................................ 4.3 ............46 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 13 ..........135 No. days to start a business* ............................... 33.0 ..........116 Agricultural policy costs.......................................... 4.7 ............11 Prevalence of trade barriers ................................... 4.5 ............54 Trade tariffs, % duty* ............................................ 11.1 ..........115 Prevalence of foreign ownership............................. 4.5 ............71 Business impact of rules on FDI ............................. 5.0 ............26 Burden of customs procedures .............................. 4.3 ............55 Imports as a percentage of GDP* ........................ 24.8 ..........130 Degree of customer orientation .............................. 4.5 ............70 Buyer sophistication ............................................... 4.3 ............18 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.4 ............58 Flexibility of wage determination ............................. 4.8 ............84 Hiring and firing practices ....................................... 4.6 ............15 Redundancy costs, weeks of salary* .................... 27.4 ..........120 Effect of taxation on incentives to work .................. 4.0 ............36 Pay and productivity............................................... 4.8 ............15 Reliance on professional management ................... 4.6 ............43 Country capacity to retain talent............................. 4.2 ............31 Country capacity to attract talent ........................... 4.2 ............27 Women in labor force, ratio to men* ..................... 0.84 ............60 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.5 ............63 Affordability of financial services ............................. 4.4 ............50 Financing through local equity market .................... 4.2 ............34 Ease of access to loans ......................................... 3.7 ............21 Venture capital availability ....................................... 3.9 ............13 Soundness of banks .............................................. 5.0 ............63 Regulation of securities exchanges ........................ 4.4 ............58 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.3 ............97 Firm-level technology absorption ............................ 4.7 ............68 FDI and technology transfer ................................... 4.5 ............81 Individuals using Internet, %* ............................... 45.8 ............75 Fixed broadband Internet subscriptions/100 pop.* . 13.6 ............51 Int’l Internet bandwidth, kb/s per user* .................. 4.2 ..........120 Mobile broadband subscriptions/100 pop.*.......... 21.4 ............78 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 6.8 ..............2 Foreign market size index, 1–7 (best)* .................... 7.0 ..............1 GDP (PPP$ billions)* ..................................... 13,395.4 ..............2 Exports as a percentage of GDP* ........................ 26.3 ..........109 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.1 ............24 Local supplier quality.............................................. 4.5 ............63 State of cluster development.................................. 4.6 ............25 Nature of competitive advantage ............................ 3.9 ............45 Value chain breadth................................................ 4.3 ............37 Control of international distribution ......................... 4.5 ............31 Production process sophistication.......................... 4.1 ............56 Extent of marketing ................................................ 4.5 ............52 Willingness to delegate authority ............................ 3.9 ............49 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.2 ............40 Quality of scientific research institutions ................. 4.3 ............39 Company spending on R&D................................... 4.3 ............23 University-industry collaboration in R&D ................. 4.4 ............32 Gov’t procurement of advanced tech products ...... 4.3 ............10 Availability of scientists and engineers .................... 4.4 ............43 PCT patents, applications/million pop.* ................ 11.7 ............34 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............44 Extent of market dominance .................................. 4.3 ............29 Effectiveness of anti-monopoly policy ..................... 4.5 ............38 Effect of taxation on incentives to invest................. 4.0 ............44 Total tax rate, % profits* ....................................... 63.7 ..........131 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 155 2.1: Country/Economy Profiles Colombia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 47.2 GDP (US$ billions) ........................................ 381.8 GDP per capita (US$) ................................... 8,098 GDP (PPP) as share (%) of world total ............ 0.61 Colombia 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 66 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 69 ......4.2 GCI 2012–2013 (out of 144) ..................................... 69 ......4.2 GCI 2011–2012 (out of 142) ..................................... 68 ......4.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................78 ......4.5 7 Innovation Institutions .............................................................. 111 ......3.3 Infrastructure ............................................................ 84 ......3.7 Macroeconomic environment ................................... 29 ......5.6 Health and primary education ................................. 105 ......5.2 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................63 ......4.2 Market size Higher education and training ................................... 69 ......4.4 Goods market efficiency ........................................ 109 ......4.0 Labor market efficiency ............................................ 84 ......4.1 Financial market development .................................. 70 ......4.0 Technological readiness ............................................ 68 ......3.8 Market size ............................................................... 32 ......4.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........64 ......3.6 Business sophistication ........................................... 62 ......4.1 Innovation ................................................................. 77 ......3.2 Colombia Latin America and the Caribbean The most problematic factors for doing business Corruption .........................................................................19.3 Inadequate supply of infrastructure ....................................14.3 Inefficient government bureaucracy ...................................12.2 Tax regulations ....................................................................8.8 Crime and theft ...................................................................7.7 Tax rates..............................................................................7.5 Access to financing .............................................................6.6 Restrictive labor regulations .................................................5.0 Inadequately educated workforce ........................................4.6 Insufficient capacity to innovate ...........................................3.2 Policy instability ...................................................................3.0 Poor work ethic in national labor force ................................2.7 Government instability/coups ..............................................1.6 Poor public health ...............................................................1.4 Inflation ................................................................................1.3 Foreign currency regulations ................................................0.7 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 156 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Colombia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.9 ............84 Intellectual property protection ............................... 3.2 ............96 Diversion of public funds ........................................ 2.2 ..........128 Public trust in politicians ......................................... 2.0 ..........125 Irregular payments and bribes ................................ 3.3 ..........105 Judicial independence............................................ 2.8 ..........112 Favoritism in decisions of government officials ....... 2.6 ..........107 Wastefulness of government spending ................... 2.6 ..........101 Burden of government regulation ........................... 2.8 ..........122 Efficiency of legal framework in settling disputes .... 3.4 ............91 Efficiency of legal framework in challenging regs. ... 3.1 ............91 Transparency of government policymaking............. 3.8 ............84 Business costs of terrorism .................................... 2.7 ..........138 Business costs of crime and violence..................... 2.7 ..........134 Organized crime ..................................................... 2.8 ..........139 Reliability of police services .................................... 4.0 ............78 Ethical behavior of firms ......................................... 3.6 ..........110 Strength of auditing and reporting standards ......... 4.5 ............77 Efficacy of corporate boards .................................. 5.0 ............40 Protection of minority shareholders’ interests ......... 4.1 ............68 Strength of investor protection, 0–10 (best)* .......... 8.3 ..............6 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.4 ..........108 Quality of roads ...................................................... 2.7 ..........126 Quality of railroad infrastructure .............................. 1.5 ..........102 Quality of port infrastructure ................................... 3.7 ............90 Quality of air transport infrastructure....................... 4.1 ............78 Available airline seat km/week, millions* ............. 563.8 ............39 Quality of electricity supply ..................................... 5.1 ............60 Mobile telephone subscriptions/100 pop.* ......... 104.1 ............87 Fixed telephone lines/100 pop.* ........................... 14.8 ............77 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.0 ............37 Gross national savings, % GDP* .......................... 20.9 ............62 Inflation, annual % change* .................................... 2.0 ..............1 General government debt, % GDP* ..................... 31.8 ............42 Country credit rating, 0–100 (best)* ...................... 65.2 ............40 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................. 203.3 ............38 Business impact of malaria .................................... 5.3 ............27 Tuberculosis cases/100,000 pop.* ....................... 33.0 ............62 Business impact of tuberculosis ............................. 5.3 ............83 HIV prevalence, % adult pop.* ............................... 0.5 ............88 Business impact of HIV/AIDS ................................. 4.9 ............91 Infant mortality, deaths/1,000 live births* .............. 15.1 ............76 Life expectancy, years*......................................... 73.8 ............75 Quality of primary education ................................... 3.3 ..........101 Primary education enrollment, net %* .................. 83.9 ..........121 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 92.8 ............62 Tertiary education enrollment, gross %*................ 45.0 ............61 Quality of the education system ............................. 3.4 ............90 Quality of math and science education .................. 3.3 ..........109 Quality of management schools ............................. 4.3 ............69 Internet access in schools ...................................... 4.0 ............82 Availability of research and training services ........... 4.1 ............71 Extent of staff training ............................................ 3.9 ............83 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 15.0 ............75 Agricultural policy costs.......................................... 2.9 ..........134 Prevalence of trade barriers ................................... 4.0 ..........119 Trade tariffs, % duty* .............................................. 6.6 ............82 Prevalence of foreign ownership............................. 4.5 ............76 Business impact of rules on FDI ............................. 4.5 ............63 Burden of customs procedures .............................. 3.6 ............91 Imports as a percentage of GDP* ........................ 18.4 ..........139 Degree of customer orientation .............................. 5.0 ............42 Buyer sophistication ............................................... 3.3 ............79 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.6 ............47 Flexibility of wage determination ............................. 5.3 ............53 Hiring and firing practices ....................................... 3.8 ............79 Redundancy costs, weeks of salary* .................... 16.7 ............80 Effect of taxation on incentives to work .................. 2.9 ..........122 Pay and productivity............................................... 3.7 ............95 Reliance on professional management ................... 4.4 ............57 Country capacity to retain talent............................. 3.4 ............74 Country capacity to attract talent ........................... 3.1 ............89 Women in labor force, ratio to men* ..................... 0.72 ............95 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.8 ............53 Affordability of financial services ............................. 3.6 ..........114 Financing through local equity market .................... 3.4 ............71 Ease of access to loans ......................................... 2.8 ............77 Venture capital availability ....................................... 2.6 ............82 Soundness of banks .............................................. 5.8 ............30 Regulation of securities exchanges ........................ 4.0 ............75 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.5 ............84 Firm-level technology absorption ............................ 4.4 ............89 FDI and technology transfer ................................... 4.8 ............54 Individuals using Internet, %* ............................... 51.7 ............63 Fixed broadband Internet subscriptions/100 pop.* ... 9.3 ............67 Int’l Internet bandwidth, kb/s per user* ................ 76.1 ............35 Mobile broadband subscriptions/100 pop.*............ 7.9 ..........100 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.6 ............28 Foreign market size index, 1–7 (best)* .................... 4.9 ............54 GDP (PPP$ billions)* .......................................... 527.6 ............28 Exports as a percentage of GDP* ........................ 16.9 ..........135 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.0 ............28 Local supplier quality.............................................. 4.8 ............41 State of cluster development.................................. 3.7 ............78 Nature of competitive advantage ............................ 3.4 ............73 Value chain breadth................................................ 3.9 ............56 Control of international distribution ......................... 4.1 ............61 Production process sophistication.......................... 3.7 ............77 Extent of marketing ................................................ 4.0 ............85 Willingness to delegate authority ............................ 3.9 ............54 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............85 Quality of scientific research institutions ................. 3.5 ............82 Company spending on R&D................................... 3.0 ............84 University-industry collaboration in R&D ................. 3.9 ............49 Gov’t procurement of advanced tech products ...... 3.7 ............50 Availability of scientists and engineers .................... 3.8 ............85 PCT patents, applications/million pop.* .................. 1.2 ............66 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.2 ............56 Extent of market dominance .................................. 3.4 ..........101 Effectiveness of anti-monopoly policy ..................... 4.2 ............58 Effect of taxation on incentives to invest................. 3.0 ..........127 Total tax rate, % profits* ....................................... 76.0 ..........139 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 157 2.1: Country/Economy Profiles Costa Rica Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 4.8 GDP (US$ billions) .......................................... 49.6 GDP per capita (US$) ................................. 10,433 GDP (PPP) as share (%) of world total ............ 0.07 Costa Rica 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 51 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 54 ......4.3 GCI 2012–2013 (out of 144) ..................................... 57 ......4.3 GCI 2011–2012 (out of 142) ..................................... 61 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (36.4%) .......................................62 ......4.7 7 Innovation Institutions ................................................................ 46 ......4.3 Infrastructure ............................................................ 73 ......4.1 Macroeconomic environment ................................... 93 ......4.4 Health and primary education ................................... 48 ......6.1 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................56 ......4.3 Market size Higher education and training ................................... 37 ......5.0 Goods market efficiency .......................................... 52 ......4.5 Labor market efficiency ............................................ 57 ......4.3 Financial market development .................................. 92 ......3.7 Technological readiness ............................................ 40 ......4.8 Market size ............................................................... 82 ......3.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (13.6%) ...........35 ......4.1 Business sophistication ........................................... 32 ......4.5 Innovation ................................................................. 34 ......3.8 Costa Rica Latin America and the Caribbean The most problematic factors for doing business Inefficient government bureaucracy ...................................26.8 Inadequate supply of infrastructure ....................................23.9 Access to financing ...........................................................10.9 Corruption ...........................................................................8.3 Restrictive labor regulations .................................................7.6 Tax regulations ....................................................................6.5 Tax rates..............................................................................4.6 Insufficient capacity to innovate ...........................................3.3 Inadequately educated workforce ........................................2.2 Inflation ................................................................................1.8 Policy instability ...................................................................1.5 Crime and theft ...................................................................1.1 Foreign currency regulations ................................................0.9 Poor work ethic in national labor force ................................0.7 Government instability/coups ..............................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 158 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Costa Rica The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.6 ............46 Intellectual property protection ............................... 4.0 ............49 Diversion of public funds ........................................ 3.7 ............54 Public trust in politicians ......................................... 3.0 ............71 Irregular payments and bribes ................................ 4.4 ............49 Judicial independence............................................ 5.0 ............32 Favoritism in decisions of government officials ....... 3.5 ............45 Wastefulness of government spending ................... 2.4 ..........120 Burden of government regulation ........................... 3.3 ............88 Efficiency of legal framework in settling disputes .... 3.8 ............63 Efficiency of legal framework in challenging regs. ... 4.1 ............28 Transparency of government policymaking............. 4.3 ............50 Business costs of terrorism .................................... 6.2 ............14 Business costs of crime and violence..................... 4.0 ............92 Organized crime ..................................................... 5.2 ............53 Reliability of police services .................................... 5.0 ............38 Ethical behavior of firms ......................................... 4.5 ............41 Strength of auditing and reporting standards ......... 5.1 ............45 Efficacy of corporate boards .................................. 5.0 ............41 Protection of minority shareholders’ interests ......... 4.7 ............33 Strength of investor protection, 0–10 (best)* .......... 3.0 ..........130 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.6 ..........103 Quality of roads ...................................................... 2.8 ..........119 Quality of railroad infrastructure .............................. 1.9 ............91 Quality of port infrastructure ................................... 3.0 ..........115 Quality of air transport infrastructure....................... 4.6 ............61 Available airline seat km/week, millions* ............. 124.4 ............76 Quality of electricity supply ..................................... 5.6 ............42 Mobile telephone subscriptions/100 pop.* ......... 146.0 ............27 Fixed telephone lines/100 pop.* ........................... 19.9 ............56 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.6 ..........116 Gross national savings, % GDP* .......................... 16.3 ............95 Inflation, annual % change* .................................... 5.2 ............94 General government debt, % GDP* ..................... 37.0 ............56 Country credit rating, 0–100 (best)* ...................... 56.0 ............58 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.2 ..............9 Business impact of malaria .................................... 6.5 ..............4 Tuberculosis cases/100,000 pop.* ....................... 11.0 ............30 Business impact of tuberculosis ............................. 6.4 ............29 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 6.0 ............49 Infant mortality, deaths/1,000 live births* ................ 8.6 ............52 Life expectancy, years*......................................... 79.7 ............31 Quality of primary education ................................... 4.7 ............39 Primary education enrollment, net %* .................. 92.0 ............89 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 103.6 ............21 Tertiary education enrollment, gross %*................ 46.7 ............56 Quality of the education system ............................. 4.7 ............21 Quality of math and science education .................. 4.4 ............47 Quality of management schools ............................. 5.3 ............16 Internet access in schools ...................................... 4.7 ............57 Availability of research and training services ........... 4.9 ............28 Extent of staff training ............................................ 4.7 ............21 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 24.0 ..........100 Agricultural policy costs.......................................... 3.6 ............94 Prevalence of trade barriers ................................... 3.9 ..........126 Trade tariffs, % duty* .............................................. 3.9 ............50 Prevalence of foreign ownership............................. 5.3 ............28 Business impact of rules on FDI ............................. 4.9 ............32 Burden of customs procedures .............................. 3.9 ............78 Imports as a percentage of GDP* ........................ 40.2 ............87 Degree of customer orientation .............................. 5.1 ............37 Buyer sophistication ............................................... 3.7 ............49 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.4 ............13 Flexibility of wage determination ............................. 5.0 ............76 Hiring and firing practices ....................................... 4.3 ............33 Redundancy costs, weeks of salary* .................... 18.7 ............88 Effect of taxation on incentives to work .................. 3.7 ............64 Pay and productivity............................................... 4.2 ............52 Reliance on professional management ................... 4.7 ............42 Country capacity to retain talent............................. 4.8 ............16 Country capacity to attract talent ........................... 4.0 ............33 Women in labor force, ratio to men* ..................... 0.60 ..........117 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.4 ............70 Affordability of financial services ............................. 4.1 ............68 Financing through local equity market .................... 2.4 ..........117 Ease of access to loans ......................................... 2.2 ..........118 Venture capital availability ....................................... 2.2 ..........111 Soundness of banks .............................................. 5.8 ............31 Regulation of securities exchanges ........................ 4.7 ............41 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.0 ............62 Firm-level technology absorption ............................ 5.0 ............45 FDI and technology transfer ................................... 5.6 ..............5 Individuals using Internet, %* ............................... 46.0 ............73 Fixed broadband Internet subscriptions/100 pop.* ... 9.7 ............66 Int’l Internet bandwidth, kb/s per user* ................ 73.5 ............36 Mobile broadband subscriptions/100 pop.*.......... 72.1 ............20 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.2 ............81 Foreign market size index, 1–7 (best)* .................... 4.1 ............86 GDP (PPP$ billions)* ............................................ 61.6 ............83 Exports as a percentage of GDP* ........................ 35.2 ............78 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............71 Local supplier quality.............................................. 4.7 ............45 State of cluster development.................................. 4.2 ............39 Nature of competitive advantage ............................ 4.5 ............29 Value chain breadth................................................ 4.5 ............28 Control of international distribution ......................... 4.1 ............60 Production process sophistication.......................... 4.7 ............32 Extent of marketing ................................................ 4.6 ............46 Willingness to delegate authority ............................ 4.4 ............29 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.3 ............36 Quality of scientific research institutions ................. 4.8 ............31 Company spending on R&D................................... 3.6 ............40 University-industry collaboration in R&D ................. 4.4 ............33 Gov’t procurement of advanced tech products ...... 3.5 ............67 Availability of scientists and engineers .................... 4.8 ............25 PCT patents, applications/million pop.* .................. 1.3 ............64 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.2 ............59 Extent of market dominance .................................. 4.4 ............28 Effectiveness of anti-monopoly policy ..................... 4.4 ............46 Effect of taxation on incentives to invest................. 3.8 ............68 Total tax rate, % profits* ....................................... 55.3 ..........125 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 159 2.1: Country/Economy Profiles Côte d’Ivoire Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 24.1 GDP (US$ billions) .......................................... 28.3 GDP per capita (US$) ................................... 1,175 GDP (PPP) as share (%) of world total ............ 0.05 Côte d’Ivoire 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 115 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 126 ......3.5 GCI 2012–2013 (out of 144) ................................... 131 ......3.4 GCI 2011–2012 (out of 142) ................................... 129 ......3.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................119 ......3.7 7 Innovation Institutions ................................................................ 86 ......3.6 Infrastructure ............................................................ 93 ......3.4 Macroeconomic environment ................................... 68 ......4.7 Health and primary education ................................. 140 ......3.2 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................108 ......3.6 Market size Higher education and training ................................. 121 ......3.1 Goods market efficiency .......................................... 82 ......4.2 Labor market efficiency ............................................ 73 ......4.2 Financial market development .................................. 78 ......3.9 Technological readiness .......................................... 117 ......2.8 Market size ............................................................... 94 ......3.2 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............86 ......3.5 Business sophistication ......................................... 100 ......3.7 Innovation ................................................................. 69 ......3.3 Côte d’Ivoire Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................32.3 Corruption .........................................................................15.1 Tax rates............................................................................14.8 Inefficient government bureaucracy ...................................11.7 Inadequate supply of infrastructure ....................................11.0 Inadequately educated workforce ........................................8.0 Crime and theft ...................................................................2.7 Poor work ethic in national labor force ................................2.7 Foreign currency regulations ................................................0.4 Insufficient capacity to innovate ...........................................0.4 Policy instability ...................................................................0.4 Government instability/coups ..............................................0.3 Inflation ................................................................................0.2 Tax regulations ....................................................................0.1 Poor public health ...............................................................0.0 Restrictive labor regulations .................................................0.0 0 Note: 5 10 15 Percent of responses 20 From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 160 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 25 30 2.1: Country/Economy Profiles Côte d’Ivoire The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.5 ..........107 Intellectual property protection ............................... 3.1 ............99 Diversion of public funds ........................................ 3.2 ............70 Public trust in politicians ......................................... 3.2 ............60 Irregular payments and bribes ................................ 3.9 ............71 Judicial independence............................................ 3.2 ............95 Favoritism in decisions of government officials ....... 3.2 ............56 Wastefulness of government spending ................... 3.7 ............38 Burden of government regulation ........................... 3.6 ............50 Efficiency of legal framework in settling disputes .... 3.7 ............67 Efficiency of legal framework in challenging regs. ... 3.6 ............48 Transparency of government policymaking............. 3.8 ............83 Business costs of terrorism .................................... 4.7 ..........103 Business costs of crime and violence..................... 3.3 ..........120 Organized crime ..................................................... 4.2 ..........104 Reliability of police services .................................... 3.8 ............92 Ethical behavior of firms ......................................... 3.7 ............93 Strength of auditing and reporting standards ......... 4.5 ............80 Efficacy of corporate boards .................................. 4.5 ............72 Protection of minority shareholders’ interests ......... 4.3 ............65 Strength of investor protection, 0–10 (best)* .......... 3.3 ..........123 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.0 ............77 Quality of roads ...................................................... 3.9 ............73 Quality of railroad infrastructure .............................. 2.8 ............60 Quality of port infrastructure ................................... 5.1 ............34 Quality of air transport infrastructure....................... 4.8 ............53 Available airline seat km/week, millions* ............... 48.5 ..........102 Quality of electricity supply ..................................... 3.9 ............96 Mobile telephone subscriptions/100 pop.* ........... 95.4 ..........103 Fixed telephone lines/100 pop.* ............................. 1.3 ..........121 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.5 ............63 Gross national savings, % GDP* .......................... 16.0 ............99 Inflation, annual % change* .................................... 2.6 ..............1 General government debt, % GDP* ..................... 43.2 ............72 Country credit rating, 0–100 (best)* ...................... 27.2 ..........114 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 20,665.6 ............64 Business impact of malaria .................................... 4.6 ............41 Tuberculosis cases/100,000 pop.* ..................... 172.0 ..........112 Business impact of tuberculosis ............................. 4.1 ..........125 HIV prevalence, % adult pop.* ............................... 3.2 ..........129 Business impact of HIV/AIDS ................................. 4.5 ..........109 Infant mortality, deaths/1,000 live births* .............. 76.2 ..........139 Life expectancy, years*......................................... 50.4 ..........139 Quality of primary education ................................... 3.2 ..........103 Primary education enrollment, net %* .................. 61.9 ..........140 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 24.3 ..........143 Tertiary education enrollment, gross %*.................. 4.5 ..........131 Quality of the education system ............................. 3.6 ............80 Quality of math and science education .................. 5.1 ............22 Quality of management schools ............................. 4.8 ............37 Internet access in schools ...................................... 3.4 ..........110 Availability of research and training services ........... 4.3 ............62 Extent of staff training ............................................ 4.0 ............70 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 8.0 ............39 Agricultural policy costs.......................................... 4.2 ............32 Prevalence of trade barriers ................................... 4.2 ............92 Trade tariffs, % duty* ............................................ 10.8 ..........114 Prevalence of foreign ownership............................. 4.9 ............55 Business impact of rules on FDI ............................. 4.6 ............54 Burden of customs procedures .............................. 3.3 ..........119 Imports as a percentage of GDP* ........................ 50.3 ............64 Degree of customer orientation .............................. 4.4 ............86 Buyer sophistication ............................................... 3.3 ............82 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.7 ............40 Flexibility of wage determination ............................. 4.7 ............95 Hiring and firing practices ....................................... 4.4 ............29 Redundancy costs, weeks of salary* .................... 13.1 ............60 Effect of taxation on incentives to work .................. 3.7 ............66 Pay and productivity............................................... 4.1 ............54 Reliance on professional management ................... 4.0 ............83 Country capacity to retain talent............................. 3.8 ............49 Country capacity to attract talent ........................... 3.9 ............41 Women in labor force, ratio to men* ..................... 0.65 ..........107 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........113 Affordability of financial services ............................. 3.9 ............93 Financing through local equity market .................... 3.3 ............75 Ease of access to loans ......................................... 3.1 ............44 Venture capital availability ....................................... 2.8 ............55 Soundness of banks .............................................. 4.8 ............77 Regulation of securities exchanges ........................ 3.6 ..........100 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.5 ............88 Firm-level technology absorption ............................ 4.6 ............73 FDI and technology transfer ................................... 3.8 ..........120 Individuals using Internet, %* ................................. 2.6 ..........135 Fixed broadband Internet subscriptions/100 pop.* ... 0.3 ..........116 Int’l Internet bandwidth, kb/s per user* ................ 22.7 ............78 Mobile broadband subscriptions/100 pop.*............ 0.0 ..........133 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.9 ............94 Foreign market size index, 1–7 (best)* .................... 4.1 ............85 GDP (PPP$ billions)* ............................................ 43.8 ............91 Exports as a percentage of GDP* ........................ 51.4 ............45 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.2 ..........104 Local supplier quality.............................................. 4.2 ............79 State of cluster development.................................. 3.3 ..........109 Nature of competitive advantage ............................ 3.1 ..........100 Value chain breadth................................................ 3.5 ............98 Control of international distribution ......................... 3.4 ..........126 Production process sophistication.......................... 3.4 ..........104 Extent of marketing ................................................ 4.0 ............89 Willingness to delegate authority ............................ 3.6 ............86 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............88 Quality of scientific research institutions ................. 3.9 ............62 Company spending on R&D................................... 3.2 ............57 University-industry collaboration in R&D ................. 3.3 ............86 Gov’t procurement of advanced tech products ...... 3.8 ............38 Availability of scientists and engineers .................... 4.2 ............60 PCT patents, applications/million pop.* .................. 0.0 ..........110 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.6 ..........112 Extent of market dominance .................................. 3.4 ............97 Effectiveness of anti-monopoly policy ..................... 3.9 ............82 Effect of taxation on incentives to invest................. 3.4 ..........100 Total tax rate, % profits* ....................................... 46.4 ..........103 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 161 2.1: Country/Economy Profiles Croatia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 4.3 GDP (US$ billions) .......................................... 58.1 GDP per capita (US$) ................................. 13,562 GDP (PPP) as share (%) of world total ............ 0.09 Croatia 20,000 Emerging and Developing Europe 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 77 ..... 4.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 75 ......4.1 GCI 2012–2013 (out of 144) ..................................... 81 ......4.0 GCI 2011–2012 (out of 142) ..................................... 76 ......4.1 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (28.6%) .......................................63 ......4.7 7 Innovation Institutions ................................................................ 87 ......3.6 Infrastructure ............................................................ 44 ......4.7 Macroeconomic environment ................................... 91 ......4.4 Health and primary education ................................... 60 ......5.9 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................68 ......4.1 Market size Higher education and training ................................... 53 ......4.7 Goods market efficiency ........................................ 105 ......4.1 Labor market efficiency .......................................... 106 ......3.9 Financial market development .................................. 74 ......3.9 Technological readiness ............................................ 44 ......4.6 Market size ............................................................... 79 ......3.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (21.4%) ...........87 ......3.5 Business sophistication ........................................... 83 ......3.8 Innovation ................................................................. 93 ......3.1 Croatia Emerging and Developing Europe The most problematic factors for doing business Inefficient government bureaucracy ...................................18.6 Policy instability .................................................................13.8 Corruption .........................................................................12.4 Tax regulations ..................................................................11.5 Tax rates............................................................................10.6 Access to financing ...........................................................10.4 Restrictive labor regulations .................................................7.2 Poor work ethic in national labor force ................................3.3 Crime and theft ...................................................................2.8 Inadequate supply of infrastructure ......................................2.4 Insufficient capacity to innovate ...........................................2.1 Government instability/coups ..............................................2.0 Inadequately educated workforce ........................................1.5 Poor public health ...............................................................0.7 Foreign currency regulations ................................................0.6 Inflation ................................................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 162 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Croatia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.8 ............92 Intellectual property protection ............................... 3.6 ............75 Diversion of public funds ........................................ 3.3 ............64 Public trust in politicians ......................................... 2.0 ..........124 Irregular payments and bribes ................................ 4.0 ............67 Judicial independence............................................ 3.2 ..........100 Favoritism in decisions of government officials ....... 2.5 ..........119 Wastefulness of government spending ................... 2.2 ..........129 Burden of government regulation ........................... 2.2 ..........141 Efficiency of legal framework in settling disputes .... 2.5 ..........134 Efficiency of legal framework in challenging regs. ... 2.1 ..........138 Transparency of government policymaking............. 3.3 ..........121 Business costs of terrorism .................................... 6.5 ..............5 Business costs of crime and violence..................... 5.2 ............32 Organized crime ..................................................... 5.4 ............49 Reliability of police services .................................... 4.4 ............55 Ethical behavior of firms ......................................... 3.9 ............71 Strength of auditing and reporting standards ......... 4.3 ............94 Efficacy of corporate boards .................................. 4.2 ............96 Protection of minority shareholders’ interests ......... 3.6 ..........105 Strength of investor protection, 0–10 (best)* .......... 3.3 ..........123 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.9 ............44 Quality of roads ...................................................... 5.6 ............17 Quality of railroad infrastructure .............................. 2.9 ............58 Quality of port infrastructure ................................... 4.6 ............51 Quality of air transport infrastructure....................... 4.2 ............76 Available airline seat km/week, millions* ............... 78.9 ............89 Quality of electricity supply ..................................... 5.7 ............40 Mobile telephone subscriptions/100 pop.* ......... 114.5 ............66 Fixed telephone lines/100 pop.* ........................... 36.8 ............30 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.5 ..........114 Gross national savings, % GDP* .......................... 19.5 ............71 Inflation, annual % change* .................................... 2.2 ..............1 General government debt, % GDP* ..................... 59.8 ............99 Country credit rating, 0–100 (best)* ...................... 53.4 ............63 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 14.0 ............33 Business impact of tuberculosis ............................. 6.7 ............17 HIV prevalence, % adult pop.* ............................. <0.1 ..............1 Business impact of HIV/AIDS ................................. 6.8 ..............5 Infant mortality, deaths/1,000 live births* ................ 4.0 ............27 Life expectancy, years*......................................... 76.9 ............42 Quality of primary education ................................... 4.6 ............41 Primary education enrollment, net %* .................. 89.3 ..........103 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 98.4 ............39 Tertiary education enrollment, gross %*................ 61.6 ............38 Quality of the education system ............................. 3.2 ............97 Quality of math and science education .................. 4.9 ............26 Quality of management schools ............................. 4.2 ............76 Internet access in schools ...................................... 4.8 ............52 Availability of research and training services ........... 4.1 ............70 Extent of staff training ............................................ 3.2 ..........129 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 8.0 ............39 Agricultural policy costs.......................................... 2.5 ..........141 Prevalence of trade barriers ................................... 4.6 ............35 Trade tariffs, % duty* .............................................. 3.2 ............45 Prevalence of foreign ownership............................. 4.3 ............92 Business impact of rules on FDI ............................. 2.6 ..........140 Burden of customs procedures .............................. 4.6 ............41 Imports as a percentage of GDP* ........................ 42.4 ............79 Degree of customer orientation .............................. 4.6 ............60 Buyer sophistication ............................................... 2.7 ..........128 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.7 ..........126 Flexibility of wage determination ............................. 5.5 ............34 Hiring and firing practices ....................................... 2.9 ..........129 Redundancy costs, weeks of salary* .................... 15.1 ............71 Effect of taxation on incentives to work .................. 2.2 ..........142 Pay and productivity............................................... 3.9 ............78 Reliance on professional management ................... 3.8 ............99 Country capacity to retain talent............................. 2.1 ..........137 Country capacity to attract talent ........................... 1.8 ..........141 Women in labor force, ratio to men* ..................... 0.84 ............59 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.3 ............78 Affordability of financial services ............................. 3.8 ..........101 Financing through local equity market .................... 2.8 ..........104 Ease of access to loans ......................................... 2.4 ..........106 Venture capital availability ....................................... 2.2 ..........114 Soundness of banks .............................................. 4.9 ............69 Regulation of securities exchanges ........................ 4.0 ............72 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.1 ............59 Firm-level technology absorption ............................ 4.6 ............72 FDI and technology transfer ................................... 4.0 ..........110 Individuals using Internet, %* ............................... 66.7 ............42 Fixed broadband Internet subscriptions/100 pop.* . 21.5 ............36 Int’l Internet bandwidth, kb/s per user* ................ 40.5 ............62 Mobile broadband subscriptions/100 pop.*.......... 65.3 ............24 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.3 ............76 Foreign market size index, 1–7 (best)* .................... 4.3 ............75 GDP (PPP$ billions)* ............................................ 77.9 ............77 Exports as a percentage of GDP* ........................ 42.4 ............63 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............62 Local supplier quality.............................................. 4.6 ............51 State of cluster development.................................. 3.2 ..........117 Nature of competitive advantage ............................ 3.7 ............56 Value chain breadth................................................ 3.7 ............82 Control of international distribution ......................... 3.8 ............96 Production process sophistication.......................... 3.5 ............97 Extent of marketing ................................................ 3.9 ............94 Willingness to delegate authority ............................ 3.4 ............98 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.1 ..........124 Quality of scientific research institutions ................. 4.0 ............53 Company spending on R&D................................... 3.1 ............75 University-industry collaboration in R&D ................. 3.4 ............81 Gov’t procurement of advanced tech products ...... 2.7 ..........129 Availability of scientists and engineers .................... 3.9 ............79 PCT patents, applications/million pop.* ................ 10.0 ............36 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............83 Extent of market dominance .................................. 3.3 ..........110 Effectiveness of anti-monopoly policy ..................... 3.7 ............97 Effect of taxation on incentives to invest................. 2.1 ..........142 Total tax rate, % profits* ....................................... 19.8 ............11 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 163 2.1: Country/Economy Profiles Cyprus Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.9 GDP (US$ billions) .......................................... 21.8 GDP per capita (US$) ................................. 24,761 GDP (PPP) as share (%) of world total ............ 0.03 Cyprus 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 58 ..... 4.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 58 ......4.3 GCI 2012–2013 (out of 144) ..................................... 58 ......4.3 GCI 2011–2012 (out of 142) ..................................... 47 ......4.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................58 ......4.7 7 Innovation Institutions ................................................................ 42 ......4.4 Infrastructure ............................................................ 45 ......4.7 Macroeconomic environment ................................. 134 ......3.3 Health and primary education ..................................... 9 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................57 ......4.3 Market size Higher education and training ................................... 33 ......5.1 Goods market efficiency .......................................... 27 ......4.9 Labor market efficiency ............................................ 30 ......4.6 Financial market development .................................. 83 ......3.8 Technological readiness ............................................ 43 ......4.6 Market size ............................................................. 115 ......2.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........38 ......4.1 Business sophistication ........................................... 40 ......4.4 Innovation ................................................................. 36 ......3.7 Cyprus Advanced economies The most problematic factors for doing business Access to financing ...........................................................28.7 Inefficient government bureaucracy ...................................18.8 Restrictive labor regulations .................................................8.8 Corruption ...........................................................................7.2 Insufficient capacity to innovate ...........................................6.5 Tax rates..............................................................................5.1 Government instability/coups ..............................................4.8 Foreign currency regulations ................................................3.6 Inflation ................................................................................3.3 Policy instability ...................................................................2.9 Crime and theft ...................................................................2.7 Tax regulations ....................................................................2.4 Inadequate supply of infrastructure ......................................2.1 Poor work ethic in national labor force ................................1.7 Inadequately educated workforce ........................................0.7 Poor public health ...............................................................0.5 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 164 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Cyprus The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.3 ............54 Intellectual property protection ............................... 4.3 ............39 Diversion of public funds ........................................ 4.3 ............37 Public trust in politicians ......................................... 3.2 ............58 Irregular payments and bribes ................................ 5.0 ............34 Judicial independence............................................ 4.5 ............45 Favoritism in decisions of government officials ....... 3.2 ............63 Wastefulness of government spending ................... 3.4 ............56 Burden of government regulation ........................... 4.1 ............15 Efficiency of legal framework in settling disputes .... 4.0 ............51 Efficiency of legal framework in challenging regs. ... 4.1 ............31 Transparency of government policymaking............. 4.7 ............25 Business costs of terrorism .................................... 6.0 ............28 Business costs of crime and violence..................... 5.7 ............14 Organized crime ..................................................... 5.7 ............30 Reliability of police services .................................... 4.7 ............44 Ethical behavior of firms ......................................... 4.2 ............51 Strength of auditing and reporting standards ......... 5.0 ............52 Efficacy of corporate boards .................................. 4.3 ............90 Protection of minority shareholders’ interests ......... 4.3 ............61 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.2 ............30 Quality of roads ...................................................... 5.3 ............24 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.9 ............45 Quality of air transport infrastructure....................... 5.1 ............43 Available airline seat km/week, millions* ............. 198.1 ............64 Quality of electricity supply ..................................... 5.5 ............43 Mobile telephone subscriptions/100 pop.* ........... 95.2 ..........104 Fixed telephone lines/100 pop.* ........................... 30.6 ............36 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.7 ..........105 Gross national savings, % GDP* .......................... 10.0 ..........128 Inflation, annual % change* .................................... 0.4 ............61 General government debt, % GDP* ................... 112.0 ..........136 Country credit rating, 0–100 (best)* ...................... 32.8 ............97 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 5.4 ..............9 Business impact of tuberculosis ............................. 6.2 ............39 HIV prevalence, % adult pop.* ............................. <0.2 ..............1 Business impact of HIV/AIDS ................................. 6.0 ............51 Infant mortality, deaths/1,000 live births* ................ 2.5 ..............9 Life expectancy, years*......................................... 79.6 ............32 Quality of primary education ................................... 5.4 ............14 Primary education enrollment, net %* .................. 97.9 ............32 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 95.3 ............55 Tertiary education enrollment, gross %*................ 45.9 ............60 Quality of the education system ............................. 5.2 ............13 Quality of math and science education .................. 5.4 ............10 Quality of management schools ............................. 5.0 ............30 Internet access in schools ...................................... 5.6 ............30 Availability of research and training services ........... 4.7 ............34 Extent of staff training ............................................ 4.3 ............43 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 8.0 ............39 Agricultural policy costs.......................................... 4.1 ............41 Prevalence of trade barriers ................................... 5.0 ............12 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.4 ............84 Business impact of rules on FDI ............................. 4.6 ............51 Burden of customs procedures .............................. 4.9 ............29 Imports as a percentage of GDP* ........................ 43.8 ............78 Degree of customer orientation .............................. 5.1 ............34 Buyer sophistication ............................................... 3.8 ............37 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.8 ............36 Flexibility of wage determination ............................. 4.5 ..........108 Hiring and firing practices ....................................... 4.2 ............39 Redundancy costs, weeks of salary* ...................... 5.7 ............15 Effect of taxation on incentives to work .................. 4.4 ............18 Pay and productivity............................................... 4.0 ............59 Reliance on professional management ................... 3.9 ............86 Country capacity to retain talent............................. 4.0 ............38 Country capacity to attract talent ........................... 3.5 ............66 Women in labor force, ratio to men* ..................... 0.83 ............61 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.7 ............57 Affordability of financial services ............................. 4.4 ............51 Financing through local equity market .................... 2.5 ..........113 Ease of access to loans ......................................... 2.4 ..........109 Venture capital availability ....................................... 2.7 ............75 Soundness of banks .............................................. 2.4 ..........143 Regulation of securities exchanges ........................ 4.1 ............68 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.4 ............42 Firm-level technology absorption ............................ 5.1 ............40 FDI and technology transfer ................................... 4.5 ............78 Individuals using Internet, %* ............................... 65.5 ............45 Fixed broadband Internet subscriptions/100 pop.* . 19.9 ............38 Int’l Internet bandwidth, kb/s per user* ................ 63.4 ............43 Mobile broadband subscriptions/100 pop.*.......... 31.6 ............64 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.5 ..........119 Foreign market size index, 1–7 (best)* .................... 3.6 ..........109 GDP (PPP$ billions)* ............................................ 22.3 ..........115 Exports as a percentage of GDP* ........................ 43.5 ............59 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............77 Local supplier quality.............................................. 4.9 ............39 State of cluster development.................................. 4.0 ............50 Nature of competitive advantage ............................ 4.4 ............30 Value chain breadth................................................ 4.2 ............39 Control of international distribution ......................... 4.6 ............22 Production process sophistication.......................... 4.3 ............45 Extent of marketing ................................................ 4.9 ............32 Willingness to delegate authority ............................ 4.0 ............46 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.8 ............63 Quality of scientific research institutions ................. 4.3 ............40 Company spending on R&D................................... 3.5 ............46 University-industry collaboration in R&D ................. 4.2 ............40 Gov’t procurement of advanced tech products ...... 3.7 ............55 Availability of scientists and engineers .................... 4.9 ............17 PCT patents, applications/million pop.* ................ 12.0 ............33 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............37 Extent of market dominance .................................. 3.9 ............55 Effectiveness of anti-monopoly policy ..................... 4.7 ............29 Effect of taxation on incentives to invest................. 4.4 ............21 Total tax rate, % profits* ....................................... 22.5 ............17 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 165 2.1: Country/Economy Profiles Czech Republic Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 10.5 GDP (US$ billions) ........................................ 198.3 GDP per capita (US$) ................................. 18,858 GDP (PPP) as share (%) of world total ............ 0.33 Czech Republic 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 37 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 46 ......4.4 GCI 2012–2013 (out of 144) ..................................... 39 ......4.5 GCI 2011–2012 (out of 142) ..................................... 38 ......4.5 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................39 ......5.0 7 Innovation Institutions ................................................................ 76 ......3.8 Infrastructure ............................................................ 41 ......4.7 Macroeconomic environment ................................... 40 ......5.4 Health and primary education ................................... 37 ......6.2 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................34 ......4.6 Market size Higher education and training ................................... 35 ......5.0 Goods market efficiency .......................................... 50 ......4.5 Labor market efficiency ............................................ 62 ......4.3 Financial market development .................................. 44 ......4.5 Technological readiness ............................................ 36 ......5.0 Market size ............................................................... 42 ......4.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........36 ......4.1 Business sophistication ........................................... 35 ......4.5 Innovation ................................................................. 39 ......3.7 Czech Republic Advanced economies The most problematic factors for doing business Inefficient government bureaucracy ...................................18.6 Corruption .........................................................................16.3 Policy instability ...................................................................9.1 Restrictive labor regulations .................................................9.0 Tax regulations ....................................................................8.0 Inadequately educated workforce ........................................6.3 Tax rates..............................................................................6.2 Insufficient capacity to innovate ...........................................5.9 Access to financing .............................................................5.8 Poor work ethic in national labor force ................................3.9 Crime and theft ...................................................................3.5 Government instability/coups ..............................................3.3 Inadequate supply of infrastructure ......................................3.1 Foreign currency regulations ................................................0.5 Poor public health ...............................................................0.4 Inflation ................................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 166 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Czech Republic The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.0 ............75 Intellectual property protection ............................... 3.9 ............55 Diversion of public funds ........................................ 2.7 ............98 Public trust in politicians ......................................... 1.7 ..........138 Irregular payments and bribes ................................ 3.9 ............70 Judicial independence............................................ 3.9 ............62 Favoritism in decisions of government officials ....... 2.6 ..........106 Wastefulness of government spending ................... 5.0 ..............7 Burden of government regulation ........................... 2.6 ..........132 Efficiency of legal framework in settling disputes .... 3.3 ..........100 Efficiency of legal framework in challenging regs. ... 2.7 ..........115 Transparency of government policymaking............. 3.7 ............99 Business costs of terrorism .................................... 5.8 ............42 Business costs of crime and violence..................... 4.8 ............50 Organized crime ..................................................... 5.0 ............59 Reliability of police services .................................... 4.1 ............75 Ethical behavior of firms ......................................... 3.7 ............94 Strength of auditing and reporting standards ......... 4.9 ............56 Efficacy of corporate boards .................................. 4.6 ............68 Protection of minority shareholders’ interests ......... 4.1 ............71 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.0 ............38 Quality of roads ...................................................... 3.7 ............81 Quality of railroad infrastructure .............................. 4.5 ............21 Quality of port infrastructure ................................... 4.0 ............75 Quality of air transport infrastructure....................... 5.5 ............26 Available airline seat km/week, millions* ............. 193.3 ............65 Quality of electricity supply ..................................... 6.4 ............19 Mobile telephone subscriptions/100 pop.* ......... 131.3 ............41 Fixed telephone lines/100 pop.* ........................... 18.7 ............63 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.9 ............70 Gross national savings, % GDP* .......................... 21.3 ............60 Inflation, annual % change* .................................... 1.4 ..............1 General government debt, % GDP* ..................... 47.9 ............83 Country credit rating, 0–100 (best)* ...................... 75.1 ............27 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 5.3 ..............8 Business impact of tuberculosis ............................. 5.7 ............68 HIV prevalence, % adult pop.* ............................. <0.1 ..............1 Business impact of HIV/AIDS ................................. 5.5 ............73 Infant mortality, deaths/1,000 live births* ................ 3.1 ............14 Life expectancy, years*......................................... 78.1 ............37 Quality of primary education ................................... 4.5 ............46 Primary education enrollment, net %* .................. 96.0 ............55 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 96.6 ............49 Tertiary education enrollment, gross %*................ 64.2 ............32 Quality of the education system ............................. 3.6 ............77 Quality of math and science education .................. 4.1 ............74 Quality of management schools ............................. 4.3 ............68 Internet access in schools ...................................... 5.8 ............27 Availability of research and training services ........... 4.9 ............27 Extent of staff training ............................................ 4.1 ............55 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 19.5 ............92 Agricultural policy costs.......................................... 3.4 ..........102 Prevalence of trade barriers ................................... 4.4 ............72 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 6.0 ..............7 Business impact of rules on FDI ............................. 4.5 ............67 Burden of customs procedures .............................. 4.5 ............47 Imports as a percentage of GDP* ........................ 82.1 ............20 Degree of customer orientation .............................. 4.7 ............59 Buyer sophistication ............................................... 3.4 ............76 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.5 ............52 Flexibility of wage determination ............................. 5.4 ............43 Hiring and firing practices ....................................... 3.2 ..........121 Redundancy costs, weeks of salary* .................... 20.2 ............95 Effect of taxation on incentives to work .................. 3.1 ..........110 Pay and productivity............................................... 4.6 ............19 Reliance on professional management ................... 4.5 ............47 Country capacity to retain talent............................. 3.3 ............80 Country capacity to attract talent ........................... 3.1 ............93 Women in labor force, ratio to men* ..................... 0.80 ............74 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.1 ............38 Affordability of financial services ............................. 5.1 ............31 Financing through local equity market .................... 3.2 ............84 Ease of access to loans ......................................... 3.3 ............36 Venture capital availability ....................................... 3.1 ............42 Soundness of banks .............................................. 5.9 ............24 Regulation of securities exchanges ........................ 4.4 ............59 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.2 ............51 Firm-level technology absorption ............................ 5.0 ............50 FDI and technology transfer ................................... 5.0 ............36 Individuals using Internet, %* ............................... 74.1 ............31 Fixed broadband Internet subscriptions/100 pop.* . 17.0 ............41 Int’l Internet bandwidth, kb/s per user* .............. 111.2 ............25 Mobile broadband subscriptions/100 pop.*.......... 45.3 ............44 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.1 ............48 Foreign market size index, 1–7 (best)* .................... 5.5 ............27 GDP (PPP$ billions)* .......................................... 286.0 ............44 Exports as a percentage of GDP* ........................ 92.8 ............10 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.1 ............23 Local supplier quality.............................................. 5.3 ............22 State of cluster development.................................. 4.1 ............47 Nature of competitive advantage ............................ 3.9 ............46 Value chain breadth................................................ 4.6 ............27 Control of international distribution ......................... 3.5 ..........113 Production process sophistication.......................... 4.9 ............30 Extent of marketing ................................................ 4.8 ............35 Willingness to delegate authority ............................ 4.1 ............42 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.6 ............28 Quality of scientific research institutions ................. 4.5 ............36 Company spending on R&D................................... 3.7 ............31 University-industry collaboration in R&D ................. 4.0 ............42 Gov’t procurement of advanced tech products ...... 3.0 ..........107 Availability of scientists and engineers .................... 4.2 ............55 PCT patents, applications/million pop.* ................ 15.8 ............30 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.7 ............17 Extent of market dominance .................................. 4.2 ............34 Effectiveness of anti-monopoly policy ..................... 4.1 ............65 Effect of taxation on incentives to invest................. 3.3 ..........107 Total tax rate, % profits* ....................................... 48.1 ..........106 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 167 2.1: Country/Economy Profiles Denmark Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 5.6 GDP (US$ billions) ........................................ 331.0 GDP per capita (US$) ................................. 59,191 GDP (PPP) as share (%) of world total ............ 0.24 Denmark 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 13 ..... 5.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 15 ......5.2 GCI 2012–2013 (out of 144) ..................................... 12 ......5.3 GCI 2011–2012 (out of 142) ....................................... 8 ......5.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................13 ......5.9 7 Innovation Institutions ................................................................ 16 ......5.3 Infrastructure ............................................................ 21 ......5.6 Macroeconomic environment ................................... 16 ......6.1 Health and primary education ................................... 25 ......6.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................17 ......5.1 Market size Higher education and training ................................... 10 ......5.7 Goods market efficiency .......................................... 23 ......5.0 Labor market efficiency ............................................ 12 ......5.0 Financial market development .................................. 27 ......4.7 Technological readiness .............................................. 6 ......6.1 Market size ............................................................... 54 ......4.2 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) .............9 ......5.2 Business sophistication ........................................... 11 ......5.3 Innovation ................................................................. 11 ......5.1 Denmark Advanced economies The most problematic factors for doing business Tax rates............................................................................23.2 Access to financing ...........................................................18.3 Tax regulations ..................................................................14.2 Inefficient government bureaucracy ...................................11.5 Restrictive labor regulations ...............................................10.8 Poor work ethic in national labor force ................................6.8 Insufficient capacity to innovate ...........................................5.3 Inadequate supply of infrastructure ......................................3.5 Inadequately educated workforce ........................................3.5 Policy instability ...................................................................0.7 Crime and theft ...................................................................0.6 Inflation ................................................................................0.5 Foreign currency regulations ................................................0.3 Poor public health ...............................................................0.3 Government instability/coups ..............................................0.2 Corruption ...........................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 168 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Denmark The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.7 ............17 Intellectual property protection ............................... 5.3 ............24 Diversion of public funds ........................................ 6.4 ..............2 Public trust in politicians ......................................... 4.7 ............16 Irregular payments and bribes ................................ 6.2 ............13 Judicial independence............................................ 6.5 ..............3 Favoritism in decisions of government officials ....... 4.6 ............13 Wastefulness of government spending ................... 3.8 ............36 Burden of government regulation ........................... 3.4 ............80 Efficiency of legal framework in settling disputes .... 5.0 ............20 Efficiency of legal framework in challenging regs. ... 3.7 ............44 Transparency of government policymaking............. 4.5 ............32 Business costs of terrorism .................................... 4.8 ............95 Business costs of crime and violence..................... 4.7 ............60 Organized crime ..................................................... 5.5 ............46 Reliability of police services .................................... 6.0 ............15 Ethical behavior of firms ......................................... 6.2 ..............4 Strength of auditing and reporting standards ......... 5.5 ............28 Efficacy of corporate boards .................................. 5.2 ............24 Protection of minority shareholders’ interests ......... 4.8 ............26 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.8 ............15 Quality of roads ...................................................... 5.4 ............21 Quality of railroad infrastructure .............................. 4.5 ............20 Quality of port infrastructure ................................... 5.8 ............10 Quality of air transport infrastructure....................... 5.6 ............24 Available airline seat km/week, millions* ............. 504.1 ............42 Quality of electricity supply ..................................... 6.7 ..............5 Mobile telephone subscriptions/100 pop.* ......... 127.5 ............47 Fixed telephone lines/100 pop.* ........................... 37.4 ............29 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.4 ............29 Gross national savings, % GDP* .......................... 24.0 ............47 Inflation, annual % change* .................................... 0.8 ..............1 General government debt, % GDP* ..................... 45.2 ............76 Country credit rating, 0–100 (best)* ...................... 90.0 ............10 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 7.4 ............21 Business impact of tuberculosis ............................. 6.9 ..............3 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 6.8 ..............3 Infant mortality, deaths/1,000 live births* ................ 3.0 ............13 Life expectancy, years*......................................... 80.1 ............28 Quality of primary education ................................... 4.7 ............35 Primary education enrollment, net %* .................. 97.9 ............33 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 124.7 ..............4 Tertiary education enrollment, gross %*................ 79.6 ............14 Quality of the education system ............................. 4.8 ............18 Quality of math and science education .................. 4.5 ............42 Quality of management schools ............................. 5.2 ............21 Internet access in schools ...................................... 6.0 ............22 Availability of research and training services ........... 5.3 ............18 Extent of staff training ............................................ 4.9 ............15 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ................................. 5.5 ............18 Agricultural policy costs.......................................... 4.2 ............34 Prevalence of trade barriers ................................... 4.5 ............44 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.4 ............25 Business impact of rules on FDI ............................. 4.7 ............42 Burden of customs procedures .............................. 5.2 ............23 Imports as a percentage of GDP* ........................ 47.5 ............72 Degree of customer orientation .............................. 5.5 ............10 Buyer sophistication ............................................... 3.7 ............47 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 6.0 ..............3 Flexibility of wage determination ............................. 4.5 ..........107 Hiring and firing practices ....................................... 5.3 ..............6 Redundancy costs, weeks of salary* ...................... 0.0 ..............1 Effect of taxation on incentives to work .................. 2.7 ..........132 Pay and productivity............................................... 4.0 ............62 Reliance on professional management ................... 6.0 ..............5 Country capacity to retain talent............................. 3.9 ............40 Country capacity to attract talent ........................... 3.8 ............49 Women in labor force, ratio to men* ..................... 0.93 ............22 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.3 ............32 Affordability of financial services ............................. 5.0 ............34 Financing through local equity market .................... 3.9 ............41 Ease of access to loans ......................................... 2.9 ............60 Venture capital availability ....................................... 2.5 ............87 Soundness of banks .............................................. 4.7 ............81 Regulation of securities exchanges ........................ 5.4 ............18 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.8 ............28 Firm-level technology absorption ............................ 5.7 ............15 FDI and technology transfer ................................... 4.8 ............46 Individuals using Internet, %* ............................... 94.6 ..............4 Fixed broadband Internet subscriptions/100 pop.* . 40.2 ..............2 Int’l Internet bandwidth, kb/s per user* .............. 261.2 ..............9 Mobile broadband subscriptions/100 pop.*........ 107.3 ..............6 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.0 ............54 Foreign market size index, 1–7 (best)* .................... 5.0 ............44 GDP (PPP$ billions)* .......................................... 211.9 ............53 Exports as a percentage of GDP* ........................ 54.6 ............40 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.0 ............29 Local supplier quality.............................................. 5.6 ..............7 State of cluster development.................................. 4.3 ............34 Nature of competitive advantage ............................ 6.2 ..............3 Value chain breadth................................................ 5.2 ............10 Control of international distribution ......................... 4.6 ............25 Production process sophistication.......................... 5.6 ............14 Extent of marketing ................................................ 5.1 ............27 Willingness to delegate authority ............................ 6.1 ..............1 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.3 ..............8 Quality of scientific research institutions ................. 5.4 ............17 Company spending on R&D................................... 4.8 ............13 University-industry collaboration in R&D ................. 4.9 ............20 Gov’t procurement of advanced tech products ...... 3.3 ............80 Availability of scientists and engineers .................... 4.6 ............32 PCT patents, applications/million pop.* .............. 214.8 ..............7 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............45 Extent of market dominance .................................. 5.1 ............12 Effectiveness of anti-monopoly policy ..................... 4.7 ............25 Effect of taxation on incentives to invest................. 3.2 ..........115 Total tax rate, % profits* ....................................... 27.0 ............26 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 169 2.1: Country/Economy Profiles Dominican Republic Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 10.4 GDP (US$ billions) .......................................... 60.8 GDP per capita (US$) ................................... 5,834 GDP (PPP) as share (%) of world total ............ 0.12 Dominican Republic 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2012 2010 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 101 ..... 3.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 105 ......3.8 GCI 2012–2013 (out of 144) ................................... 105 ......3.8 GCI 2011–2012 (out of 142) ................................... 110 ......3.7 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .....................................106 ......4.0 7 Innovation Institutions .............................................................. 116 ......3.3 Infrastructure ............................................................ 98 ......3.3 Macroeconomic environment ................................... 94 ......4.4 Health and primary education ................................. 107 ......5.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................90 ......3.8 Market size Higher education and training ................................... 99 ......3.7 Goods market efficiency .......................................... 94 ......4.2 Labor market efficiency .......................................... 107 ......3.8 Financial market development .................................. 99 ......3.7 Technological readiness ............................................ 84 ......3.5 Market size ............................................................... 68 ......3.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........90 ......3.4 Business sophistication ........................................... 73 ......3.9 Innovation ............................................................... 103 ......3.0 Domincan Republic Latin America and the Caribbean The most problematic factors for doing business Tax rates............................................................................15.6 Access to financing ...........................................................11.5 Corruption .........................................................................10.4 Inflation ................................................................................9.0 Inadequately educated workforce ........................................8.9 Inefficient government bureaucracy .....................................7.5 Crime and theft ...................................................................5.4 Poor public health ...............................................................5.1 Restrictive labor regulations .................................................5.0 Poor work ethic in national labor force ................................4.7 Tax regulations ....................................................................4.4 Inadequate supply of infrastructure ......................................4.3 Insufficient capacity to innovate ...........................................3.4 Foreign currency regulations ................................................2.8 Policy instability ...................................................................1.0 Government instability/coups ..............................................0.9 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 170 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Dominican Republic The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.8 ............90 Intellectual property protection ............................... 3.2 ............95 Diversion of public funds ........................................ 2.1 ..........132 Public trust in politicians ......................................... 2.0 ..........128 Irregular payments and bribes ................................ 3.3 ..........107 Judicial independence............................................ 2.5 ..........121 Favoritism in decisions of government officials ....... 2.2 ..........132 Wastefulness of government spending ................... 2.4 ..........118 Burden of government regulation ........................... 3.4 ............81 Efficiency of legal framework in settling disputes .... 3.4 ............86 Efficiency of legal framework in challenging regs. ... 3.4 ............65 Transparency of government policymaking............. 4.2 ............54 Business costs of terrorism .................................... 4.9 ............89 Business costs of crime and violence..................... 3.3 ..........121 Organized crime ..................................................... 4.0 ..........115 Reliability of police services .................................... 2.6 ..........139 Ethical behavior of firms ......................................... 3.4 ..........124 Strength of auditing and reporting standards ......... 4.5 ............75 Efficacy of corporate boards .................................. 4.6 ............62 Protection of minority shareholders’ interests ......... 4.1 ............75 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.7 ............93 Quality of roads ...................................................... 4.4 ............53 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.6 ............52 Quality of air transport infrastructure....................... 4.8 ............52 Available airline seat km/week, millions* ............. 388.8 ............49 Quality of electricity supply ..................................... 2.4 ..........128 Mobile telephone subscriptions/100 pop.* ........... 88.4 ..........109 Fixed telephone lines/100 pop.* ........................... 11.3 ............85 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.6 ............85 Gross national savings, % GDP* .......................... 11.6 ..........123 Inflation, annual % change* .................................... 4.8 ............90 General government debt, % GDP* ..................... 33.8 ............47 Country credit rating, 0–100 (best)* ...................... 39.8 ............79 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 12.7 ............19 Business impact of malaria .................................... 5.2 ............28 Tuberculosis cases/100,000 pop.* ....................... 62.0 ............80 Business impact of tuberculosis ............................. 5.0 ............93 HIV prevalence, % adult pop.* ............................... 0.7 ............97 Business impact of HIV/AIDS ................................. 4.8 ............96 Infant mortality, deaths/1,000 live births* .............. 22.8 ............93 Life expectancy, years*......................................... 73.2 ............82 Quality of primary education ................................... 2.2 ..........138 Primary education enrollment, net %* .................. 86.5 ..........110 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 75.9 ............97 Tertiary education enrollment, gross %*................ 34.1 ............75 Quality of the education system ............................. 2.6 ..........132 Quality of math and science education .................. 2.1 ..........142 Quality of management schools ............................. 3.6 ..........109 Internet access in schools ...................................... 3.5 ..........104 Availability of research and training services ........... 4.1 ............74 Extent of staff training ............................................ 3.9 ............86 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 18.5 ............87 Agricultural policy costs.......................................... 3.9 ............67 Prevalence of trade barriers ................................... 4.1 ..........102 Trade tariffs, % duty* .............................................. 7.4 ............86 Prevalence of foreign ownership............................. 5.1 ............39 Business impact of rules on FDI ............................. 4.4 ............77 Burden of customs procedures .............................. 4.4 ............51 Imports as a percentage of GDP* ........................ 30.7 ..........115 Degree of customer orientation .............................. 4.4 ............76 Buyer sophistication ............................................... 3.1 ............98 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.5 ............55 Flexibility of wage determination ............................. 5.2 ............55 Hiring and firing practices ....................................... 4.0 ............61 Redundancy costs, weeks of salary* .................... 26.2 ..........116 Effect of taxation on incentives to work .................. 2.9 ..........118 Pay and productivity............................................... 3.8 ............83 Reliance on professional management ................... 3.7 ..........103 Country capacity to retain talent............................. 3.3 ............82 Country capacity to attract talent ........................... 3.3 ............76 Women in labor force, ratio to men* ..................... 0.67 ..........102 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.8 ............52 Affordability of financial services ............................. 3.8 ............99 Financing through local equity market .................... 2.8 ..........105 Ease of access to loans ......................................... 2.8 ............75 Venture capital availability ....................................... 2.6 ............83 Soundness of banks .............................................. 5.6 ............45 Regulation of securities exchanges ........................ 3.8 ............87 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.0 ............60 Firm-level technology absorption ............................ 4.5 ............77 FDI and technology transfer ................................... 5.1 ............29 Individuals using Internet, %* ............................... 45.9 ............74 Fixed broadband Internet subscriptions/100 pop.* ... 4.7 ............83 Int’l Internet bandwidth, kb/s per user* ................ 16.9 ............89 Mobile broadband subscriptions/100 pop.*.......... 25.4 ............72 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.6 ............67 Foreign market size index, 1–7 (best)* .................... 4.2 ............81 GDP (PPP$ billions)* .......................................... 103.2 ............69 Exports as a percentage of GDP* ........................ 25.6 ..........112 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............61 Local supplier quality.............................................. 4.4 ............72 State of cluster development.................................. 3.7 ............80 Nature of competitive advantage ............................ 2.9 ..........115 Value chain breadth................................................ 3.9 ............65 Control of international distribution ......................... 4.1 ............59 Production process sophistication.......................... 3.7 ............81 Extent of marketing ................................................ 4.4 ............58 Willingness to delegate authority ............................ 3.7 ............76 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............74 Quality of scientific research institutions ................. 2.9 ..........113 Company spending on R&D................................... 2.8 ..........108 University-industry collaboration in R&D ................. 3.3 ............94 Gov’t procurement of advanced tech products ...... 3.6 ............59 Availability of scientists and engineers .................... 3.3 ..........115 PCT patents, applications/million pop.* .................. 0.5 ............80 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.0 ............72 Extent of market dominance .................................. 3.2 ..........116 Effectiveness of anti-monopoly policy ..................... 3.8 ............90 Effect of taxation on incentives to invest................. 3.1 ..........121 Total tax rate, % profits* ....................................... 43.5 ............93 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 171 2.1: Country/Economy Profiles Egypt Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 84.2 GDP (US$ billions) ........................................ 271.4 GDP per capita (US$) ................................... 3,226 GDP (PPP) as share (%) of world total ............ 0.64 Egypt 8,000 Middle East, North Africa, and Pakistan 7,000 6,000 5,000 4,000 3,000 2000 1990 1992 1994 1996 1998 2,000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 119 ..... 3.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 118 ......3.6 GCI 2012–2013 (out of 144) ................................... 107 ......3.7 GCI 2011–2012 (out of 142) ..................................... 94 ......3.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .....................................121 ......3.7 Innovation Institutions .............................................................. 100 ......3.4 Infrastructure .......................................................... 100 ......3.2 Macroeconomic environment ................................. 141 ......3.0 Health and primary education ................................... 97 ......5.4 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) ...................................106 ......3.6 Market size Higher education and training ................................. 111 ......3.3 Goods market efficiency ........................................ 118 ......4.0 Labor market efficiency .......................................... 140 ......3.1 Financial market development ................................ 125 ......3.2 Technological readiness ............................................ 95 ......3.2 Market size ............................................................... 29 ......4.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........113 ......3.2 Business sophistication ........................................... 95 ......3.7 Innovation ............................................................... 124 ......2.7 Egypt Middle East, North Africa, and Pakistan The most problematic factors for doing business Policy instability .................................................................21.0 Government instability/coups ............................................12.5 Access to financing ...........................................................10.2 Foreign currency regulations ................................................8.4 Corruption ...........................................................................7.7 Inadequate supply of infrastructure ......................................5.5 Inadequately educated workforce ........................................5.4 Poor work ethic in national labor force ................................5.4 Crime and theft ...................................................................4.3 Restrictive labor regulations .................................................4.1 Tax rates..............................................................................3.9 Inflation ................................................................................3.2 Tax regulations ....................................................................3.1 Inefficient government bureaucracy .....................................2.7 Insufficient capacity to innovate ...........................................1.7 Poor public health ...............................................................0.9 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 172 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Egypt The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.6 ..........104 Intellectual property protection ............................... 2.9 ..........110 Diversion of public funds ........................................ 2.7 ..........101 Public trust in politicians ......................................... 2.5 ............93 Irregular payments and bribes ................................ 4.0 ............65 Judicial independence............................................ 4.0 ............57 Favoritism in decisions of government officials ....... 3.7 ............36 Wastefulness of government spending ................... 2.2 ..........130 Burden of government regulation ........................... 3.7 ............46 Efficiency of legal framework in settling disputes .... 3.3 ..........105 Efficiency of legal framework in challenging regs. ... 3.2 ............82 Transparency of government policymaking............. 3.9 ............72 Business costs of terrorism .................................... 2.4 ..........143 Business costs of crime and violence..................... 2.5 ..........137 Organized crime ..................................................... 3.5 ..........127 Reliability of police services .................................... 3.3 ..........111 Ethical behavior of firms ......................................... 3.9 ............69 Strength of auditing and reporting standards ......... 3.8 ..........117 Efficacy of corporate boards .................................. 3.6 ..........136 Protection of minority shareholders’ interests ......... 3.5 ..........109 Strength of investor protection, 0–10 (best)* .......... 3.7 ..........117 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.9 ..........125 Quality of roads ...................................................... 2.9 ..........118 Quality of railroad infrastructure .............................. 2.4 ............78 Quality of port infrastructure ................................... 4.2 ............66 Quality of air transport infrastructure....................... 4.6 ............60 Available airline seat km/week, millions* ............. 654.0 ............34 Quality of electricity supply ..................................... 2.7 ..........121 Mobile telephone subscriptions/100 pop.* ......... 121.5 ............55 Fixed telephone lines/100 pop.* ............................. 8.3 ............97 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*............... –14.1 ..........142 Gross national savings, % GDP* .......................... 12.1 ..........122 Inflation, annual % change* .................................... 6.9 ..........118 General government debt, % GDP* ..................... 89.2 ..........125 Country credit rating, 0–100 (best)* ...................... 28.8 ..........112 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.0 ..............1 Business impact of malaria .................................... 6.8 ..............1 Tuberculosis cases/100,000 pop.* ....................... 17.0 ............40 Business impact of tuberculosis ............................. 6.7 ............16 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.9 ..............1 Infant mortality, deaths/1,000 live births* .............. 17.9 ............85 Life expectancy, years*......................................... 70.9 ............89 Quality of primary education ................................... 2.1 ..........141 Primary education enrollment, net %* .................. 95.1 ............64 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 86.3 ............81 Tertiary education enrollment, gross %*................ 30.1 ............80 Quality of the education system ............................. 2.2 ..........141 Quality of math and science education .................. 2.4 ..........136 Quality of management schools ............................. 2.0 ..........144 Internet access in schools ...................................... 2.5 ..........131 Availability of research and training services ........... 3.2 ..........124 Extent of staff training ............................................ 2.8 ..........142 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ................................. 8.0 ............39 Agricultural policy costs.......................................... 3.1 ..........123 Prevalence of trade barriers ................................... 3.9 ..........121 Trade tariffs, % duty* ............................................ 16.0 ..........136 Prevalence of foreign ownership............................. 3.3 ..........126 Business impact of rules on FDI ............................. 3.6 ..........124 Burden of customs procedures .............................. 3.8 ............81 Imports as a percentage of GDP* ........................ 27.5 ..........124 Degree of customer orientation .............................. 5.1 ............36 Buyer sophistication ............................................... 2.6 ..........131 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ............95 Flexibility of wage determination ............................. 5.1 ............67 Hiring and firing practices ....................................... 3.9 ............69 Redundancy costs, weeks of salary* .................... 36.8 ..........134 Effect of taxation on incentives to work .................. 3.0 ..........117 Pay and productivity............................................... 3.0 ..........131 Reliance on professional management ................... 3.1 ..........134 Country capacity to retain talent............................. 2.9 ..........110 Country capacity to attract talent ........................... 2.7 ..........108 Women in labor force, ratio to men* ..................... 0.32 ..........139 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.4 ..........129 Affordability of financial services ............................. 3.3 ..........126 Financing through local equity market .................... 3.6 ............60 Ease of access to loans ......................................... 1.9 ..........129 Venture capital availability ....................................... 2.3 ..........103 Soundness of banks .............................................. 4.2 ..........110 Regulation of securities exchanges ........................ 3.5 ..........107 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.8 ..........127 Firm-level technology absorption ............................ 3.8 ..........126 FDI and technology transfer ................................... 4.4 ............85 Individuals using Internet, %* ............................... 49.6 ............68 Fixed broadband Internet subscriptions/100 pop.* ... 3.3 ............88 Int’l Internet bandwidth, kb/s per user* .................. 5.3 ..........115 Mobile broadband subscriptions/100 pop.*.......... 31.1 ............66 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.7 ............27 Foreign market size index, 1–7 (best)* .................... 4.9 ............51 GDP (PPP$ billions)* .......................................... 553.6 ............27 Exports as a percentage of GDP* ........................ 17.4 ..........134 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............68 Local supplier quality.............................................. 3.9 ..........106 State of cluster development.................................. 4.3 ............38 Nature of competitive advantage ............................ 3.2 ............96 Value chain breadth................................................ 3.7 ............81 Control of international distribution ......................... 3.3 ..........131 Production process sophistication.......................... 3.1 ..........120 Extent of marketing ................................................ 3.5 ..........118 Willingness to delegate authority ............................ 4.2 ............35 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.9 ..........132 Quality of scientific research institutions ................. 2.4 ..........135 Company spending on R&D................................... 2.3 ..........133 University-industry collaboration in R&D ................. 2.4 ..........133 Gov’t procurement of advanced tech products ...... 3.0 ..........113 Availability of scientists and engineers .................... 4.4 ............41 PCT patents, applications/million pop.* .................. 0.6 ............77 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.0 ..........133 Extent of market dominance .................................. 3.1 ..........123 Effectiveness of anti-monopoly policy ..................... 3.5 ..........111 Effect of taxation on incentives to invest................. 3.6 ............79 Total tax rate, % profits* ....................................... 42.6 ............90 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 173 2.1: Country/Economy Profiles El Salvador Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 6.3 GDP (US$ billions) .......................................... 24.5 GDP per capita (US$) ................................... 3,875 GDP (PPP) as share (%) of world total ............ 0.06 El Salvador 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 84 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 97 ......3.8 GCI 2012–2013 (out of 144) ................................... 101 ......3.8 GCI 2011–2012 (out of 142) ..................................... 91 ......3.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................80 ......4.4 7 Innovation Institutions ................................................................ 99 ......3.4 Infrastructure ............................................................ 57 ......4.3 Macroeconomic environment ................................. 100 ......4.2 Health and primary education ................................... 80 ......5.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................96 ......3.7 Market size Higher education and training ................................... 94 ......3.9 Goods market efficiency .......................................... 55 ......4.4 Labor market efficiency .......................................... 125 ......3.6 Financial market development .................................. 86 ......3.8 Technological readiness ............................................ 93 ......3.2 Market size ............................................................... 90 ......3.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........45 ......4.0 Business sophistication ........................................... 37 ......4.4 Innovation ................................................................. 51 ......3.5 El Salvador Latin America and the Caribbean The most problematic factors for doing business Crime and theft .................................................................24.7 Access to financing ...........................................................16.8 Inefficient government bureaucracy .....................................9.8 Policy instability ...................................................................9.8 Inflation ................................................................................7.5 Corruption ...........................................................................6.9 Tax regulations ....................................................................4.8 Foreign currency regulations ................................................4.6 Inadequately educated workforce ........................................4.0 Inadequate supply of infrastructure ......................................2.8 Insufficient capacity to innovate ...........................................2.5 Tax rates..............................................................................1.8 Restrictive labor regulations .................................................1.6 Poor work ethic in national labor force ................................0.9 Government instability/coups ..............................................0.7 Poor public health ...............................................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 174 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles El Salvador The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.6 ..........102 Intellectual property protection ............................... 3.5 ............78 Diversion of public funds ........................................ 3.2 ............71 Public trust in politicians ......................................... 3.0 ............68 Irregular payments and bribes ................................ 3.5 ............95 Judicial independence............................................ 3.6 ............73 Favoritism in decisions of government officials ....... 2.9 ............80 Wastefulness of government spending ................... 3.2 ............66 Burden of government regulation ........................... 3.5 ............62 Efficiency of legal framework in settling disputes .... 3.5 ............85 Efficiency of legal framework in challenging regs. ... 3.4 ............68 Transparency of government policymaking............. 3.7 ............94 Business costs of terrorism .................................... 3.7 ..........130 Business costs of crime and violence..................... 2.7 ..........136 Organized crime ..................................................... 2.7 ..........143 Reliability of police services .................................... 3.7 ............97 Ethical behavior of firms ......................................... 3.8 ............85 Strength of auditing and reporting standards ......... 3.8 ..........120 Efficacy of corporate boards .................................. 4.5 ............73 Protection of minority shareholders’ interests ......... 3.3 ..........125 Strength of investor protection, 0–10 (best)* .......... 3.0 ..........130 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.6 ............58 Quality of roads ...................................................... 4.6 ............47 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.7 ............50 Quality of air transport infrastructure....................... 5.0 ............47 Available airline seat km/week, millions* ............. 104.6 ............81 Quality of electricity supply ..................................... 4.9 ............67 Mobile telephone subscriptions/100 pop.* ......... 136.2 ............36 Fixed telephone lines/100 pop.* ........................... 15.0 ............76 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.0 ............93 Gross national savings, % GDP* ............................ 7.4 ..........131 Inflation, annual % change* .................................... 0.8 ..............1 General government debt, % GDP* ..................... 54.9 ............92 Country credit rating, 0–100 (best)* ...................... 41.7 ............78 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.3 ............12 Business impact of malaria .................................... 6.0 ............11 Tuberculosis cases/100,000 pop.* ....................... 25.0 ............54 Business impact of tuberculosis ............................. 4.3 ..........117 HIV prevalence, % adult pop.* ............................... 0.6 ............92 Business impact of HIV/AIDS ................................. 4.3 ..........119 Infant mortality, deaths/1,000 live births* .............. 13.6 ............69 Life expectancy, years*......................................... 72.1 ............85 Quality of primary education ................................... 3.3 ..........100 Primary education enrollment, net %* .................. 93.4 ............76 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 69.2 ..........103 Tertiary education enrollment, gross %*................ 25.5 ............86 Quality of the education system ............................. 3.8 ............63 Quality of math and science education .................. 3.4 ..........103 Quality of management schools ............................. 4.3 ............64 Internet access in schools ...................................... 4.0 ............81 Availability of research and training services ........... 4.5 ............43 Extent of staff training ............................................ 4.0 ............71 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 16.5 ............82 Agricultural policy costs.......................................... 3.1 ..........122 Prevalence of trade barriers ................................... 3.7 ..........134 Trade tariffs, % duty* .............................................. 4.6 ............63 Prevalence of foreign ownership............................. 4.0 ..........110 Business impact of rules on FDI ............................. 3.7 ..........115 Burden of customs procedures .............................. 3.9 ............76 Imports as a percentage of GDP* ........................ 49.4 ............68 Degree of customer orientation .............................. 4.9 ............44 Buyer sophistication ............................................... 3.9 ............34 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............81 Flexibility of wage determination ............................. 3.9 ..........126 Hiring and firing practices ....................................... 3.8 ............80 Redundancy costs, weeks of salary* .................... 22.9 ..........107 Effect of taxation on incentives to work .................. 3.2 ..........108 Pay and productivity............................................... 3.5 ..........110 Reliance on professional management ................... 3.9 ............90 Country capacity to retain talent............................. 3.5 ............64 Country capacity to attract talent ........................... 3.5 ............67 Women in labor force, ratio to men* ..................... 0.62 ..........111 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............90 Affordability of financial services ............................. 4.0 ............86 Financing through local equity market .................... 3.7 ............53 Ease of access to loans ......................................... 3.0 ............52 Venture capital availability ....................................... 3.0 ............45 Soundness of banks .............................................. 4.1 ..........114 Regulation of securities exchanges ........................ 3.9 ............82 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.2 ..........107 Firm-level technology absorption ............................ 4.4 ............82 FDI and technology transfer ................................... 4.1 ..........106 Individuals using Internet, %* ............................... 23.1 ............99 Fixed broadband Internet subscriptions/100 pop.* ... 4.5 ............85 Int’l Internet bandwidth, kb/s per user* ................ 40.5 ............63 Mobile broadband subscriptions/100 pop.*............ 6.0 ..........105 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.1 ............86 Foreign market size index, 1–7 (best)* .................... 3.8 ............98 GDP (PPP$ billions)* ............................................ 47.5 ............89 Exports as a percentage of GDP* ........................ 28.4 ..........101 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............42 Local supplier quality.............................................. 4.6 ............50 State of cluster development.................................. 4.5 ............30 Nature of competitive advantage ............................ 3.9 ............43 Value chain breadth................................................ 4.4 ............33 Control of international distribution ......................... 4.5 ............30 Production process sophistication.......................... 4.5 ............39 Extent of marketing ................................................ 4.8 ............33 Willingness to delegate authority ............................ 4.1 ............41 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.4 ............34 Quality of scientific research institutions ................. 3.6 ............77 Company spending on R&D................................... 4.0 ............25 University-industry collaboration in R&D ................. 3.8 ............53 Gov’t procurement of advanced tech products ...... 4.0 ............29 Availability of scientists and engineers .................... 3.7 ............91 PCT patents, applications/million pop.* .................. 0.0 ..........121 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.8 ............89 Extent of market dominance .................................. 4.5 ............23 Effectiveness of anti-monopoly policy ..................... 4.7 ............30 Effect of taxation on incentives to invest................. 3.2 ..........118 Total tax rate, % profits* ....................................... 38.1 ............72 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 175 2.1: Country/Economy Profiles Estonia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 1.3 GDP (US$ billions) .......................................... 24.5 GDP per capita (US$) ................................. 19,032 GDP (PPP) as share (%) of world total ............ 0.03 Estonia 50,000 Advanced economies 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 29 ..... 4.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 32 ......4.7 GCI 2012–2013 (out of 144) ..................................... 34 ......4.6 GCI 2011–2012 (out of 142) ..................................... 33 ......4.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................21 ......5.5 7 Innovation Institutions ................................................................ 26 ......5.0 Infrastructure ............................................................ 38 ......4.8 Macroeconomic environment ................................... 20 ......6.0 Health and primary education ................................... 26 ......6.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................27 ......4.7 Market size Higher education and training ................................... 20 ......5.5 Goods market efficiency .......................................... 26 ......4.9 Labor market efficiency ............................................ 11 ......5.0 Financial market development .................................. 29 ......4.7 Technological readiness ............................................ 29 ......5.3 Market size ............................................................. 100 ......3.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........34 ......4.1 Business sophistication ........................................... 48 ......4.3 Innovation ................................................................. 30 ......4.0 Estonia Advanced economies The most problematic factors for doing business Inadequately educated workforce ......................................24.8 Tax rates............................................................................14.0 Inefficient government bureaucracy .....................................9.8 Insufficient capacity to innovate ...........................................9.4 Poor work ethic in national labor force ................................8.2 Access to financing .............................................................8.0 Inadequate supply of infrastructure ......................................7.1 Restrictive labor regulations .................................................6.6 Inflation ................................................................................4.9 Corruption ...........................................................................2.0 Tax regulations ....................................................................1.8 Poor public health ...............................................................1.7 Policy instability ...................................................................1.2 Crime and theft ...................................................................0.4 Government instability/coups ..............................................0.1 Foreign currency regulations ................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 176 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Estonia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.2 ............31 Intellectual property protection ............................... 4.9 ............27 Diversion of public funds ........................................ 4.7 ............28 Public trust in politicians ......................................... 3.6 ............38 Irregular payments and bribes ................................ 5.8 ............18 Judicial independence............................................ 5.7 ............19 Favoritism in decisions of government officials ....... 4.1 ............23 Wastefulness of government spending ................... 4.3 ............19 Burden of government regulation ........................... 4.3 ............10 Efficiency of legal framework in settling disputes .... 4.3 ............39 Efficiency of legal framework in challenging regs. ... 4.3 ............23 Transparency of government policymaking............. 5.0 ............20 Business costs of terrorism .................................... 6.2 ............18 Business costs of crime and violence..................... 5.5 ............24 Organized crime ..................................................... 6.3 ............12 Reliability of police services .................................... 5.3 ............32 Ethical behavior of firms ......................................... 4.9 ............32 Strength of auditing and reporting standards ......... 5.5 ............24 Efficacy of corporate boards .................................. 5.2 ............25 Protection of minority shareholders’ interests ......... 4.4 ............49 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.2 ............31 Quality of roads ...................................................... 4.4 ............54 Quality of railroad infrastructure .............................. 3.7 ............40 Quality of port infrastructure ................................... 5.6 ............17 Quality of air transport infrastructure....................... 3.8 ............98 Available airline seat km/week, millions* ............... 23.0 ..........120 Quality of electricity supply ..................................... 5.4 ............53 Mobile telephone subscriptions/100 pop.* ......... 159.7 ............13 Fixed telephone lines/100 pop.* ........................... 33.1 ............34 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.4 ............28 Gross national savings, % GDP* .......................... 25.4 ............40 Inflation, annual % change* .................................... 3.5 ............73 General government debt, % GDP* ..................... 11.3 ..............7 Country credit rating, 0–100 (best)* ...................... 74.4 ............28 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 23.0 ............50 Business impact of tuberculosis ............................. 6.4 ............33 HIV prevalence, % adult pop.* ............................... 1.3 ..........114 Business impact of HIV/AIDS ................................. 6.0 ............43 Infant mortality, deaths/1,000 live births* ................ 2.9 ............11 Life expectancy, years*......................................... 76.4 ............47 Quality of primary education ................................... 5.4 ............15 Primary education enrollment, net %* .................. 94.7 ............67 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 107.1 ............17 Tertiary education enrollment, gross %*................ 76.7 ............18 Quality of the education system ............................. 4.4 ............35 Quality of math and science education .................. 5.1 ............18 Quality of management schools ............................. 4.6 ............48 Internet access in schools ...................................... 6.6 ..............2 Availability of research and training services ........... 4.8 ............29 Extent of staff training ............................................ 4.4 ............36 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 6.5 ............31 Agricultural policy costs.......................................... 4.5 ............17 Prevalence of trade barriers ................................... 4.8 ............19 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.8 ..............8 Business impact of rules on FDI ............................. 5.3 ............17 Burden of customs procedures .............................. 5.3 ............13 Imports as a percentage of GDP* ........................ 91.6 ............11 Degree of customer orientation .............................. 5.1 ............31 Buyer sophistication ............................................... 3.0 ..........108 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.9 ............28 Flexibility of wage determination ............................. 6.2 ..............1 Hiring and firing practices ....................................... 4.8 ............12 Redundancy costs, weeks of salary* .................... 12.9 ............55 Effect of taxation on incentives to work .................. 4.3 ............24 Pay and productivity............................................... 4.9 ..............9 Reliance on professional management ................... 5.4 ............22 Country capacity to retain talent............................. 3.0 ............97 Country capacity to attract talent ........................... 3.1 ............94 Women in labor force, ratio to men* ..................... 0.91 ............24 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.2 ............36 Affordability of financial services ............................. 4.9 ............38 Financing through local equity market .................... 3.8 ............48 Ease of access to loans ......................................... 3.3 ............40 Venture capital availability ....................................... 3.4 ............26 Soundness of banks .............................................. 5.7 ............39 Regulation of securities exchanges ........................ 4.8 ............39 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.8 ............27 Firm-level technology absorption ............................ 5.4 ............32 FDI and technology transfer ................................... 5.0 ............34 Individuals using Internet, %* ............................... 80.0 ............23 Fixed broadband Internet subscriptions/100 pop.* . 26.5 ............20 Int’l Internet bandwidth, kb/s per user* ................ 29.1 ............71 Mobile broadband subscriptions/100 pop.*.......... 77.4 ............16 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.7 ..........105 Foreign market size index, 1–7 (best)* .................... 4.2 ............80 GDP (PPP$ billions)* ............................................ 29.8 ..........101 Exports as a percentage of GDP* ........................ 89.9 ............11 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............53 Local supplier quality.............................................. 5.1 ............27 State of cluster development.................................. 3.7 ............76 Nature of competitive advantage ............................ 3.8 ............52 Value chain breadth................................................ 3.6 ............85 Control of international distribution ......................... 4.2 ............54 Production process sophistication.......................... 4.2 ............53 Extent of marketing ................................................ 4.4 ............54 Willingness to delegate authority ............................ 4.5 ............25 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.5 ............31 Quality of scientific research institutions ................. 5.0 ............25 Company spending on R&D................................... 3.6 ............36 University-industry collaboration in R&D ................. 4.4 ............34 Gov’t procurement of advanced tech products ...... 4.2 ............15 Availability of scientists and engineers .................... 3.5 ..........104 PCT patents, applications/million pop.* ................ 32.7 ............27 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.5 ............29 Extent of market dominance .................................. 4.1 ............45 Effectiveness of anti-monopoly policy ..................... 4.7 ............27 Effect of taxation on incentives to invest................. 4.9 ............12 Total tax rate, % profits* ....................................... 49.4 ..........110 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 177 2.1: Country/Economy Profiles Ethiopia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 88.9 GDP (US$ billions) .......................................... 48.1 GDP per capita (US$) ...................................... 542 GDP (PPP) as share (%) of world total ............ 0.14 Ethiopia 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 118 ..... 3.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 127 ......3.5 GCI 2012–2013 (out of 144) ................................... 121 ......3.6 GCI 2011–2012 (out of 142) ................................... 106 ......3.8 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................117 ......3.8 7 Innovation Institutions ................................................................ 96 ......3.5 Infrastructure .......................................................... 125 ......2.5 Macroeconomic environment ................................... 95 ......4.4 Health and primary education ................................. 110 ......4.8 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................120 ......3.4 Market size Higher education and training ................................. 131 ......2.6 Goods market efficiency ........................................ 124 ......3.8 Labor market efficiency ............................................ 78 ......4.1 Financial market development ................................ 120 ......3.3 Technological readiness .......................................... 133 ......2.5 Market size ............................................................... 66 ......3.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........119 ......3.1 Business sophistication ......................................... 127 ......3.3 Innovation ............................................................... 109 ......2.9 Ethiopia Sub-Saharan Africa The most problematic factors for doing business Inefficient government bureaucracy ...................................14.1 Foreign currency regulations ..............................................13.8 Access to financing ...........................................................12.5 Corruption .........................................................................12.4 Inadequate supply of infrastructure ......................................7.6 Inflation ................................................................................7.1 Tax rates..............................................................................6.9 Poor work ethic in national labor force ................................6.0 Tax regulations ....................................................................5.9 Policy instability ...................................................................4.0 Inadequately educated workforce ........................................3.4 Restrictive labor regulations .................................................2.0 Insufficient capacity to innovate ...........................................1.7 Poor public health ...............................................................1.0 Government instability/coups ..............................................1.0 Crime and theft ...................................................................0.5 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 178 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Ethiopia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.4 ..........115 Intellectual property protection ............................... 3.1 ............98 Diversion of public funds ........................................ 3.2 ............69 Public trust in politicians ......................................... 2.9 ............77 Irregular payments and bribes ................................ 3.1 ..........112 Judicial independence............................................ 2.9 ..........110 Favoritism in decisions of government officials ....... 2.8 ............86 Wastefulness of government spending ................... 3.4 ............54 Burden of government regulation ........................... 3.3 ............90 Efficiency of legal framework in settling disputes .... 3.3 ............97 Efficiency of legal framework in challenging regs. ... 2.4 ..........125 Transparency of government policymaking............. 3.3 ..........125 Business costs of terrorism .................................... 4.9 ............90 Business costs of crime and violence..................... 5.0 ............44 Organized crime ..................................................... 5.4 ............48 Reliability of police services .................................... 3.8 ............93 Ethical behavior of firms ......................................... 3.3 ..........129 Strength of auditing and reporting standards ......... 4.0 ..........108 Efficacy of corporate boards .................................. 4.0 ..........117 Protection of minority shareholders’ interests ......... 3.9 ............85 Strength of investor protection, 0–10 (best)* .......... 3.3 ..........123 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.2 ..........115 Quality of roads ...................................................... 3.8 ............77 Quality of railroad infrastructure .............................. 1.6 ............97 Quality of port infrastructure ................................... 2.6 ..........126 Quality of air transport infrastructure....................... 5.3 ............38 Available airline seat km/week, millions* ............. 288.7 ............54 Quality of electricity supply ..................................... 2.8 ..........118 Mobile telephone subscriptions/100 pop.* ........... 27.3 ..........142 Fixed telephone lines/100 pop.* ............................. 0.8 ..........128 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.4 ............82 Gross national savings, % GDP* .......................... 22.2 ............54 Inflation, annual % change* .................................... 8.0 ..........126 General government debt, % GDP* ..................... 22.2 ............21 Country credit rating, 0–100 (best)* ...................... 18.2 ..........135 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 4,578.7 ............50 Business impact of malaria .................................... 5.0 ............33 Tuberculosis cases/100,000 pop.* ..................... 247.0 ..........126 Business impact of tuberculosis ............................. 4.3 ..........119 HIV prevalence, % adult pop.* ............................... 1.3 ..........114 Business impact of HIV/AIDS ................................. 4.2 ..........121 Infant mortality, deaths/1,000 live births* .............. 46.5 ..........120 Life expectancy, years*......................................... 63.0 ..........118 Quality of primary education ................................... 3.5 ............95 Primary education enrollment, net %* .................. 85.4 ..........117 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 28.9 ..........136 Tertiary education enrollment, gross %*.................. 5.4 ..........127 Quality of the education system ............................. 3.6 ............74 Quality of math and science education .................. 3.6 ............94 Quality of management schools ............................. 3.8 ............95 Internet access in schools ...................................... 3.2 ..........115 Availability of research and training services ........... 3.3 ..........122 Extent of staff training ............................................ 3.4 ..........123 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 15.0 ............75 Agricultural policy costs.......................................... 4.1 ............42 Prevalence of trade barriers ................................... 4.0 ..........113 Trade tariffs, % duty* ............................................ 12.7 ..........126 Prevalence of foreign ownership............................. 3.2 ..........132 Business impact of rules on FDI ............................. 4.2 ............94 Burden of customs procedures .............................. 2.9 ..........135 Imports as a percentage of GDP* ........................ 36.4 ............99 Degree of customer orientation .............................. 3.7 ..........124 Buyer sophistication ............................................... 2.7 ..........125 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ............97 Flexibility of wage determination ............................. 5.0 ............74 Hiring and firing practices ....................................... 3.8 ............78 Redundancy costs, weeks of salary* .................... 19.1 ............91 Effect of taxation on incentives to work .................. 3.2 ..........106 Pay and productivity............................................... 3.6 ............99 Reliance on professional management ................... 3.4 ..........124 Country capacity to retain talent............................. 3.1 ............88 Country capacity to attract talent ........................... 2.8 ..........105 Women in labor force, ratio to men* ..................... 0.90 ............33 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........117 Affordability of financial services ............................. 3.6 ..........112 Financing through local equity market .................... 3.0 ............98 Ease of access to loans ......................................... 2.1 ..........123 Venture capital availability ....................................... 2.2 ..........110 Soundness of banks .............................................. 4.3 ..........102 Regulation of securities exchanges ........................ 3.5 ..........105 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.0 ..........119 Firm-level technology absorption ............................ 3.8 ..........128 FDI and technology transfer ................................... 4.0 ..........111 Individuals using Internet, %* ................................. 1.9 ..........139 Fixed broadband Internet subscriptions/100 pop.* ... 0.3 ..........118 Int’l Internet bandwidth, kb/s per user* .................. 6.7 ..........108 Mobile broadband subscriptions/100 pop.*............ 4.8 ..........109 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.8 ............58 Foreign market size index, 1–7 (best)* .................... 3.9 ............94 GDP (PPP$ billions)* .......................................... 121.4 ............64 Exports as a percentage of GDP* ........................ 12.9 ..........138 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.1 ..........116 Local supplier quality.............................................. 3.7 ..........116 State of cluster development.................................. 3.0 ..........127 Nature of competitive advantage ............................ 2.4 ..........140 Value chain breadth................................................ 3.1 ..........124 Control of international distribution ......................... 4.1 ............62 Production process sophistication.......................... 3.0 ..........126 Extent of marketing ................................................ 3.1 ..........132 Willingness to delegate authority ............................ 3.4 ..........109 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.9 ..........134 Quality of scientific research institutions ................. 3.1 ..........106 Company spending on R&D................................... 2.6 ..........122 University-industry collaboration in R&D ................. 3.5 ............78 Gov’t procurement of advanced tech products ...... 3.7 ............52 Availability of scientists and engineers .................... 3.3 ..........117 PCT patents, applications/million pop.* .................. 0.0 ..........123 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.5 ..........113 Extent of market dominance .................................. 3.0 ..........128 Effectiveness of anti-monopoly policy ..................... 3.8 ............91 Effect of taxation on incentives to invest................. 3.2 ..........111 Total tax rate, % profits* ....................................... 33.4 ............51 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 179 2.1: Country/Economy Profiles Finland Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 5.5 GDP (US$ billions) ........................................ 256.9 GDP per capita (US$) ................................. 47,129 GDP (PPP) as share (%) of world total ............ 0.22 Finland 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ........................................................ 4 ..... 5.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ....................................... 3 ......5.5 GCI 2012–2013 (out of 144) ....................................... 3 ......5.5 GCI 2011–2012 (out of 142) ....................................... 4 ......5.5 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .........................................8 ......6.0 7 Innovation Institutions .................................................................. 2 ......6.1 Infrastructure ............................................................ 19 ......5.6 Macroeconomic environment ................................... 43 ......5.3 Health and primary education ..................................... 1 ......6.9 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................10 ......5.3 Market size Higher education and training ..................................... 1 ......6.2 Goods market efficiency .......................................... 18 ......5.0 Labor market efficiency ............................................ 23 ......4.7 Financial market development .................................... 5 ......5.5 Technological readiness ............................................ 11 ......6.0 Market size ............................................................... 55 ......4.2 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) .............3 ......5.6 Business sophistication ............................................. 9 ......5.4 Innovation ................................................................... 1 ......5.8 Finland Advanced economies The most problematic factors for doing business Tax rates............................................................................22.3 Restrictive labor regulations ...............................................21.2 Access to financing ...........................................................13.7 Tax regulations ..................................................................12.4 Inefficient government bureaucracy .....................................9.3 Insufficient capacity to innovate ...........................................8.8 Policy instability ...................................................................5.0 Inadequately educated workforce ........................................2.0 Inadequate supply of infrastructure ......................................1.5 Inflation ................................................................................1.0 Government instability/coups ..............................................0.9 Foreign currency regulations ................................................0.7 Poor work ethic in national labor force ................................0.6 Corruption ...........................................................................0.3 Crime and theft ...................................................................0.1 Poor public health ...............................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 180 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Finland The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.4 ..............1 Intellectual property protection ............................... 6.2 ..............1 Diversion of public funds ........................................ 6.3 ..............3 Public trust in politicians ......................................... 5.7 ..............5 Irregular payments and bribes ................................ 6.6 ..............2 Judicial independence............................................ 6.6 ..............2 Favoritism in decisions of government officials ....... 5.3 ..............4 Wastefulness of government spending ................... 4.8 ..............9 Burden of government regulation ........................... 4.5 ..............7 Efficiency of legal framework in settling disputes .... 6.0 ..............2 Efficiency of legal framework in challenging regs. ... 5.6 ..............1 Transparency of government policymaking............. 5.8 ..............3 Business costs of terrorism .................................... 6.7 ..............1 Business costs of crime and violence..................... 6.3 ..............3 Organized crime ..................................................... 6.6 ..............5 Reliability of police services .................................... 6.7 ..............1 Ethical behavior of firms ......................................... 6.4 ..............2 Strength of auditing and reporting standards ......... 6.4 ..............2 Efficacy of corporate boards .................................. 6.0 ..............4 Protection of minority shareholders’ interests ......... 6.2 ..............1 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.4 ..............4 Quality of roads ...................................................... 5.9 ............14 Quality of railroad infrastructure .............................. 5.9 ..............5 Quality of port infrastructure ................................... 6.4 ..............5 Quality of air transport infrastructure....................... 6.2 ..............5 Available airline seat km/week, millions* ............. 426.2 ............47 Quality of electricity supply ..................................... 6.8 ..............3 Mobile telephone subscriptions/100 pop.* ......... 171.7 ..............7 Fixed telephone lines/100 pop.* ........................... 13.9 ............79 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.6 ............67 Gross national savings, % GDP* .......................... 17.0 ............90 Inflation, annual % change* .................................... 2.2 ..............1 General government debt, % GDP* ..................... 57.0 ............95 Country credit rating, 0–100 (best)* ...................... 91.5 ..............8 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 5.5 ............10 Business impact of tuberculosis ............................. 7.0 ..............1 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.9 ..............2 Infant mortality, deaths/1,000 live births* ................ 2.4 ..............8 Life expectancy, years*......................................... 80.6 ............24 Quality of primary education ................................... 6.7 ..............1 Primary education enrollment, net %* .................. 98.8 ............14 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 107.7 ............14 Tertiary education enrollment, gross %*................ 93.7 ..............4 Quality of the education system ............................. 5.9 ..............2 Quality of math and science education .................. 6.3 ..............2 Quality of management schools ............................. 5.6 ............12 Internet access in schools ...................................... 6.5 ..............4 Availability of research and training services ........... 5.9 ..............6 Extent of staff training ............................................ 5.3 ..............5 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ............................... 14.0 ............69 Agricultural policy costs.......................................... 4.0 ............51 Prevalence of trade barriers ................................... 5.1 ..............8 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.1 ............44 Business impact of rules on FDI ............................. 5.0 ............27 Burden of customs procedures .............................. 6.0 ..............4 Imports as a percentage of GDP* ........................ 41.2 ............84 Degree of customer orientation .............................. 5.2 ............26 Buyer sophistication ............................................... 4.6 ..............6 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.0 ............27 Flexibility of wage determination ............................. 2.4 ..........143 Hiring and firing practices ....................................... 3.5 ............99 Redundancy costs, weeks of salary* .................... 10.1 ............38 Effect of taxation on incentives to work .................. 3.6 ............73 Pay and productivity............................................... 3.9 ............73 Reliance on professional management ................... 6.2 ..............3 Country capacity to retain talent............................. 5.6 ..............4 Country capacity to attract talent ........................... 3.7 ............52 Women in labor force, ratio to men* ..................... 0.95 ............12 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.0 ............10 Affordability of financial services ............................. 6.0 ..............3 Financing through local equity market .................... 4.5 ............21 Ease of access to loans ......................................... 4.0 ............12 Venture capital availability ....................................... 4.3 ..............8 Soundness of banks .............................................. 6.5 ..............5 Regulation of securities exchanges ........................ 6.1 ..............2 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.6 ..............1 Firm-level technology absorption ............................ 5.8 ............10 FDI and technology transfer ................................... 4.3 ............87 Individuals using Internet, %* ............................... 91.5 ..............7 Fixed broadband Internet subscriptions/100 pop.* . 30.9 ............15 Int’l Internet bandwidth, kb/s per user* .............. 172.2 ............15 Mobile broadband subscriptions/100 pop.*........ 123.5 ..............2 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.0 ............55 Foreign market size index, 1–7 (best)* .................... 4.8 ............59 GDP (PPP$ billions)* .......................................... 194.2 ............56 Exports as a percentage of GDP* ........................ 40.5 ............67 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.4 ............96 Local supplier quality.............................................. 5.5 ..............9 State of cluster development.................................. 5.1 ............13 Nature of competitive advantage ............................ 6.1 ..............4 Value chain breadth................................................ 5.0 ............16 Control of international distribution ......................... 4.8 ............12 Production process sophistication.......................... 6.2 ..............3 Extent of marketing ................................................ 5.1 ............26 Willingness to delegate authority ............................ 5.6 ..............5 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.6 ..............5 Quality of scientific research institutions ................. 5.7 ............10 Company spending on R&D................................... 5.7 ..............3 University-industry collaboration in R&D ................. 6.0 ..............1 Gov’t procurement of advanced tech products ...... 4.1 ............22 Availability of scientists and engineers .................... 6.2 ..............1 PCT patents, applications/million pop.* .............. 286.7 ..............4 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.6 ..........108 Extent of market dominance .................................. 4.5 ............24 Effectiveness of anti-monopoly policy ..................... 5.6 ..............1 Effect of taxation on incentives to invest................. 3.9 ............48 Total tax rate, % profits* ....................................... 39.8 ............76 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 181 2.1: Country/Economy Profiles France Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 63.7 GDP (US$ billions) ..................................... 2,737.4 GDP per capita (US$) ................................. 43,000 GDP (PPP) as share (%) of world total ............ 2.62 France 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 23 ..... 5.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 23 ......5.1 GCI 2012–2013 (out of 144) ..................................... 21 ......5.1 GCI 2011–2012 (out of 142) ..................................... 18 ......5.1 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................26 ......5.4 7 Innovation Institutions ................................................................ 32 ......4.7 Infrastructure .............................................................. 8 ......6.0 Macroeconomic environment ................................... 82 ......4.6 Health and primary education ................................... 18 ......6.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................19 ......5.1 Market size Higher education and training ................................... 28 ......5.3 Goods market efficiency .......................................... 46 ......4.6 Labor market efficiency ............................................ 61 ......4.3 Financial market development .................................. 23 ......4.8 Technological readiness ............................................ 17 ......5.8 Market size ................................................................. 8 ......5.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........19 ......4.9 Business sophistication ........................................... 22 ......5.0 Innovation ................................................................. 19 ......4.7 France Advanced economies The most problematic factors for doing business Restrictive labor regulations ...............................................24.3 Tax rates............................................................................17.8 Tax regulations ..................................................................15.3 Access to financing ...........................................................12.1 Inefficient government bureaucracy ...................................10.3 Policy instability ...................................................................7.1 Insufficient capacity to innovate ...........................................5.7 Inadequately educated workforce ........................................1.9 Inadequate supply of infrastructure ......................................1.6 Poor work ethic in national labor force ................................1.3 Foreign currency regulations ................................................1.3 Government instability/coups ..............................................0.6 Inflation ................................................................................0.6 Corruption ...........................................................................0.3 Crime and theft ...................................................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 182 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles France The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.5 ............21 Intellectual property protection ............................... 5.6 ............13 Diversion of public funds ........................................ 4.7 ............27 Public trust in politicians ......................................... 3.5 ............42 Irregular payments and bribes ................................ 5.3 ............30 Judicial independence............................................ 5.0 ............33 Favoritism in decisions of government officials ....... 3.9 ............30 Wastefulness of government spending ................... 3.1 ............72 Burden of government regulation ........................... 2.8 ..........121 Efficiency of legal framework in settling disputes .... 4.2 ............41 Efficiency of legal framework in challenging regs. ... 4.2 ............25 Transparency of government policymaking............. 4.0 ............70 Business costs of terrorism .................................... 4.6 ..........109 Business costs of crime and violence..................... 4.3 ............79 Organized crime ..................................................... 4.9 ............62 Reliability of police services .................................... 5.3 ............30 Ethical behavior of firms ......................................... 5.1 ............24 Strength of auditing and reporting standards ......... 5.5 ............27 Efficacy of corporate boards .................................. 5.2 ............22 Protection of minority shareholders’ interests ......... 4.4 ............55 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.1 ............10 Quality of roads ...................................................... 6.2 ..............4 Quality of railroad infrastructure .............................. 5.9 ..............6 Quality of port infrastructure ................................... 5.2 ............32 Quality of air transport infrastructure....................... 5.8 ............17 Available airline seat km/week, millions* .......... 3,857.1 ..............8 Quality of electricity supply ..................................... 6.5 ............14 Mobile telephone subscriptions/100 pop.* ........... 98.5 ............96 Fixed telephone lines/100 pop.* ........................... 60.8 ..............4 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.2 ............96 Gross national savings, % GDP* .......................... 17.7 ............85 Inflation, annual % change* .................................... 1.0 ..............1 General government debt, % GDP* ..................... 93.9 ..........129 Country credit rating, 0–100 (best)* ...................... 83.9 ............15 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 8.2 ............27 Business impact of tuberculosis ............................. 6.4 ............34 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 6.0 ............48 Infant mortality, deaths/1,000 live births* ................ 3.4 ............19 Life expectancy, years*......................................... 82.6 ..............6 Quality of primary education ................................... 4.9 ............31 Primary education enrollment, net %* .................. 98.2 ............28 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 109.7 ............11 Tertiary education enrollment, gross %*................ 58.3 ............46 Quality of the education system ............................. 4.4 ............34 Quality of math and science education .................. 5.2 ............17 Quality of management schools ............................. 5.7 ..............8 Internet access in schools ...................................... 4.7 ............55 Availability of research and training services ........... 5.3 ............21 Extent of staff training ............................................ 4.5 ............31 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 6.5 ............31 Agricultural policy costs.......................................... 3.8 ............74 Prevalence of trade barriers ................................... 4.3 ............75 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.4 ............23 Business impact of rules on FDI ............................. 4.5 ............66 Burden of customs procedures .............................. 4.7 ............35 Imports as a percentage of GDP* ........................ 31.7 ..........110 Degree of customer orientation .............................. 5.0 ............41 Buyer sophistication ............................................... 3.9 ............32 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.6 ..........129 Flexibility of wage determination ............................. 4.8 ............87 Hiring and firing practices ....................................... 2.7 ..........134 Redundancy costs, weeks of salary* .................... 11.8 ............51 Effect of taxation on incentives to work .................. 2.9 ..........125 Pay and productivity............................................... 3.9 ............77 Reliance on professional management ................... 4.5 ............48 Country capacity to retain talent............................. 3.6 ............56 Country capacity to attract talent ........................... 3.8 ............44 Women in labor force, ratio to men* ..................... 0.88 ............35 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.3 ............30 Affordability of financial services ............................. 5.2 ............28 Financing through local equity market .................... 4.4 ............24 Ease of access to loans ......................................... 3.8 ............17 Venture capital availability ....................................... 3.3 ............35 Soundness of banks .............................................. 5.4 ............47 Regulation of securities exchanges ........................ 5.0 ............32 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.1 ............19 Firm-level technology absorption ............................ 5.5 ............27 FDI and technology transfer ................................... 4.8 ............48 Individuals using Internet, %* ............................... 81.9 ............21 Fixed broadband Internet subscriptions/100 pop.* . 38.8 ..............4 Int’l Internet bandwidth, kb/s per user* .............. 141.5 ............17 Mobile broadband subscriptions/100 pop.*.......... 57.1 ............33 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.6 ..............9 Foreign market size index, 1–7 (best)* .................... 6.1 ............12 GDP (PPP$ billions)* ....................................... 2,278.0 ..............9 Exports as a percentage of GDP* ........................ 29.7 ............97 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.2 ............18 Local supplier quality.............................................. 5.4 ............16 State of cluster development.................................. 4.3 ............32 Nature of competitive advantage ............................ 5.3 ............20 Value chain breadth................................................ 5.3 ..............6 Control of international distribution ......................... 4.6 ............24 Production process sophistication.......................... 5.5 ............17 Extent of marketing ................................................ 5.5 ............15 Willingness to delegate authority ............................ 3.9 ............52 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.8 ............21 Quality of scientific research institutions ................. 5.6 ............12 Company spending on R&D................................... 4.7 ............15 University-industry collaboration in R&D ................. 4.6 ............29 Gov’t procurement of advanced tech products ...... 3.8 ............43 Availability of scientists and engineers .................... 4.8 ............21 PCT patents, applications/million pop.* .............. 118.1 ............15 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.5 ............31 Extent of market dominance .................................. 4.4 ............26 Effectiveness of anti-monopoly policy ..................... 4.9 ............20 Effect of taxation on incentives to invest................. 2.8 ..........135 Total tax rate, % profits* ....................................... 64.7 ..........132 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 183 2.1: Country/Economy Profiles Gabon Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 1.6 GDP (US$ billions) .......................................... 19.2 GDP per capita (US$) ................................. 12,302 GDP (PPP) as share (%) of world total ............ 0.04 Gabon 20,000 Sub-Saharan Africa 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 106 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 112 ......3.7 GCI 2012–2013 (out of 144) ..................................... 99 ......3.8 GCI 2011–2012 (out of 142) .................................... n/a ......n/a Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (51.5%) .......................................95 ......4.2 7 Innovation Institutions ................................................................ 79 ......3.7 Infrastructure .......................................................... 114 ......2.9 Macroeconomic environment ................................... 18 ......6.0 Health and primary education ................................. 130 ......4.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (41.4%) ...................................119 ......3.4 Market size Higher education and training ................................. 126 ......2.8 Goods market efficiency ........................................ 126 ......3.8 Labor market efficiency ............................................ 69 ......4.2 Financial market development ................................ 105 ......3.6 Technological readiness .......................................... 108 ......3.0 Market size ............................................................. 109 ......2.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (7.1%) ...........131 ......2.9 Business sophistication ......................................... 133 ......3.2 Innovation ............................................................... 122 ......2.7 Gabon Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................17.5 Inadequate supply of infrastructure ....................................17.2 Inadequately educated workforce ......................................15.9 Inefficient government bureaucracy ...................................10.3 Restrictive labor regulations ...............................................10.3 Corruption ...........................................................................8.5 Insufficient capacity to innovate ...........................................4.1 Poor work ethic in national labor force ................................4.1 Tax regulations ....................................................................4.1 Inflation ................................................................................2.7 Foreign currency regulations ................................................2.3 Tax rates..............................................................................1.4 Poor public health ...............................................................1.1 Policy instability ...................................................................0.7 Crime and theft ...................................................................0.0 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 184 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Gabon The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.9 ............81 Intellectual property protection ............................... 2.8 ..........121 Diversion of public funds ........................................ 2.9 ............87 Public trust in politicians ......................................... 3.0 ............70 Irregular payments and bribes ................................ 4.1 ............62 Judicial independence............................................ 2.9 ..........111 Favoritism in decisions of government officials ....... 3.1 ............65 Wastefulness of government spending ................... 3.2 ............65 Burden of government regulation ........................... 3.4 ............78 Efficiency of legal framework in settling disputes .... 3.5 ............79 Efficiency of legal framework in challenging regs. ... 3.0 ............97 Transparency of government policymaking............. 3.7 ............93 Business costs of terrorism .................................... 5.5 ............59 Business costs of crime and violence..................... 4.4 ............71 Organized crime ..................................................... 4.6 ............81 Reliability of police services .................................... 3.5 ..........107 Ethical behavior of firms ......................................... 4.3 ............50 Strength of auditing and reporting standards ......... 4.6 ............74 Efficacy of corporate boards .................................. 4.9 ............44 Protection of minority shareholders’ interests ......... 4.1 ............70 Strength of investor protection, 0–10 (best)* .......... 3.3 ..........123 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.9 ..........128 Quality of roads ...................................................... 2.4 ..........135 Quality of railroad infrastructure .............................. 2.4 ............76 Quality of port infrastructure ................................... 3.1 ..........113 Quality of air transport infrastructure....................... 3.6 ..........109 Available airline seat km/week, millions* ............... 29.4 ..........110 Quality of electricity supply ..................................... 2.3 ..........129 Mobile telephone subscriptions/100 pop.* ......... 214.8 ..............2 Fixed telephone lines/100 pop.* ............................. 1.2 ..........122 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.7 ............45 Gross national savings, % GDP* .......................... 41.3 ............10 Inflation, annual % change* .................................... 0.5 ............56 General government debt, % GDP* ..................... 22.9 ............24 Country credit rating, 0–100 (best)* ...................... 43.1 ............75 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 25,113.7 ............66 Business impact of malaria .................................... 3.2 ............69 Tuberculosis cases/100,000 pop.* ..................... 428.0 ..........136 Business impact of tuberculosis ............................. 4.4 ..........110 HIV prevalence, % adult pop.* ............................... 4.0 ..........130 Business impact of HIV/AIDS ................................. 4.1 ..........122 Infant mortality, deaths/1,000 live births* .............. 42.4 ..........114 Life expectancy, years*......................................... 63.1 ..........117 Quality of primary education ................................... 3.3 ............96 Primary education enrollment, net %* .................... n/a ...........n/a 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 53.9 ..........117 Tertiary education enrollment, gross %*.................. 8.5 ..........119 Quality of the education system ............................. 2.9 ..........119 Quality of math and science education .................. 3.3 ..........110 Quality of management schools ............................. 3.5 ..........117 Internet access in schools ...................................... 2.2 ..........136 Availability of research and training services ........... 3.0 ..........134 Extent of staff training ............................................ 3.7 ..........100 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 50.0 ..........131 Agricultural policy costs.......................................... 3.2 ..........121 Prevalence of trade barriers ................................... 4.3 ............86 Trade tariffs, % duty* ............................................ 14.3 ..........133 Prevalence of foreign ownership............................. 5.4 ............20 Business impact of rules on FDI ............................. 4.2 ............89 Burden of customs procedures .............................. 3.5 ..........101 Imports as a percentage of GDP* ........................ 34.1 ..........103 Degree of customer orientation .............................. 4.0 ..........112 Buyer sophistication ............................................... 2.8 ..........119 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.9 ..........113 Flexibility of wage determination ............................. 4.5 ..........111 Hiring and firing practices ....................................... 3.4 ..........108 Redundancy costs, weeks of salary* .................... 14.8 ............68 Effect of taxation on incentives to work .................. 4.2 ............25 Pay and productivity............................................... 3.4 ..........112 Reliance on professional management ................... 3.8 ..........102 Country capacity to retain talent............................. 3.4 ............66 Country capacity to attract talent ........................... 3.6 ............57 Women in labor force, ratio to men* ..................... 0.86 ............50 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.5 ..........128 Affordability of financial services ............................. 3.3 ..........127 Financing through local equity market .................... 2.9 ..........103 Ease of access to loans ......................................... 2.7 ............83 Venture capital availability ....................................... 2.0 ..........123 Soundness of banks .............................................. 4.9 ............70 Regulation of securities exchanges ........................ 3.3 ..........111 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.0 ..........117 Firm-level technology absorption ............................ 4.4 ............86 FDI and technology transfer ................................... 4.3 ............86 Individuals using Internet, %* ................................. 9.2 ..........124 Fixed broadband Internet subscriptions/100 pop.* ... 0.5 ..........114 Int’l Internet bandwidth, kb/s per user* ................ 18.1 ............86 Mobile broadband subscriptions/100 pop.*............ 0.0 ..........133 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.5 ..........116 Foreign market size index, 1–7 (best)* .................... 3.9 ............92 GDP (PPP$ billions)* ............................................ 30.4 ..........100 Exports as a percentage of GDP* ........................ 54.9 ............39 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.4 ..........141 Local supplier quality.............................................. 3.7 ..........121 State of cluster development.................................. 2.8 ..........137 Nature of competitive advantage ............................ 3.1 ..........103 Value chain breadth................................................ 2.9 ..........141 Control of international distribution ......................... 2.9 ..........142 Production process sophistication.......................... 3.3 ..........108 Extent of marketing ................................................ 3.3 ..........128 Willingness to delegate authority ............................ 3.2 ..........122 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.1 ..........126 Quality of scientific research institutions ................. 3.2 ............98 Company spending on R&D................................... 2.3 ..........132 University-industry collaboration in R&D ................. 2.6 ..........129 Gov’t procurement of advanced tech products ...... 3.3 ............85 Availability of scientists and engineers .................... 3.2 ..........121 PCT patents, applications/million pop.* .................. 0.3 ............85 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.3 ..........124 Extent of market dominance .................................. 3.1 ..........127 Effectiveness of anti-monopoly policy ..................... 3.5 ..........115 Effect of taxation on incentives to invest................. 3.9 ............58 Total tax rate, % profits* ....................................... 43.5 ............93 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 185 2.1: Country/Economy Profiles Gambia, The Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 1.9 GDP (US$ billions) ............................................ 0.9 GDP per capita (US$) ...................................... 453 GDP (PPP) as share (%) of world total ............ 0.00 The Gambia 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 125 ..... 3.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 116 ......3.7 GCI 2012–2013 (out of 144) ..................................... 98 ......3.8 GCI 2011–2012 (out of 142) ..................................... 99 ......3.8 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................125 ......3.6 7 Innovation Institutions ................................................................ 44 ......4.3 Infrastructure ............................................................ 95 ......3.3 Macroeconomic environment ................................. 142 ......3.0 Health and primary education ................................. 133 ......3.9 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................117 ......3.4 Market size Higher education and training ................................. 107 ......3.5 Goods market efficiency ........................................ 111 ......4.0 Labor market efficiency ............................................ 38 ......4.5 Financial market development .................................. 94 ......3.7 Technological readiness .......................................... 103 ......3.0 Market size ............................................................. 142 ......1.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............79 ......3.5 Business sophistication ........................................... 71 ......3.9 Innovation ................................................................. 89 ......3.1 The Gambia Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................24.7 Tax rates............................................................................18.8 Foreign currency regulations ..............................................11.1 Inflation ................................................................................9.1 Inadequate supply of infrastructure ......................................7.3 Insufficient capacity to innovate ...........................................5.3 Poor work ethic in national labor force ................................5.1 Corruption ...........................................................................4.1 Tax regulations ....................................................................4.0 Inadequately educated workforce ........................................3.4 Restrictive labor regulations .................................................1.9 Inefficient government bureaucracy .....................................1.7 Crime and theft ...................................................................1.4 Policy instability ...................................................................1.1 Poor public health ...............................................................0.6 Government instability/coups ..............................................0.4 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 186 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Gambia, The The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.2 ............63 Intellectual property protection ............................... 4.1 ............46 Diversion of public funds ........................................ 4.2 ............38 Public trust in politicians ......................................... 3.8 ............32 Irregular payments and bribes ................................ 4.1 ............60 Judicial independence............................................ 3.8 ............66 Favoritism in decisions of government officials ....... 3.9 ............32 Wastefulness of government spending ................... 4.0 ............27 Burden of government regulation ........................... 4.0 ............25 Efficiency of legal framework in settling disputes .... 4.4 ............35 Efficiency of legal framework in challenging regs. ... 3.3 ............76 Transparency of government policymaking............. 4.4 ............41 Business costs of terrorism .................................... 5.8 ............44 Business costs of crime and violence..................... 5.2 ............40 Organized crime ..................................................... 5.7 ............32 Reliability of police services .................................... 4.6 ............49 Ethical behavior of firms ......................................... 4.5 ............40 Strength of auditing and reporting standards ......... 4.7 ............71 Efficacy of corporate boards .................................. 4.9 ............46 Protection of minority shareholders’ interests ......... 4.4 ............48 Strength of investor protection, 0–10 (best)* .......... 2.7 ..........138 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.2 ............71 Quality of roads ...................................................... 4.1 ............62 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.2 ............64 Quality of air transport infrastructure....................... 4.5 ............66 Available airline seat km/week, millions* ................. 7.7 ..........138 Quality of electricity supply ..................................... 3.3 ..........106 Mobile telephone subscriptions/100 pop.* ......... 100.0 ............95 Fixed telephone lines/100 pop.* ............................. 3.5 ..........112 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –8.2 ..........135 Gross national savings, % GDP* ............................ 1.8 ..........137 Inflation, annual % change* .................................... 5.2 ............95 General government debt, % GDP* ..................... 82.1 ..........121 Country credit rating, 0–100 (best)* ...................... 18.7 ..........133 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 29,030.4 ............74 Business impact of malaria .................................... 3.8 ............58 Tuberculosis cases/100,000 pop.* ..................... 284.0 ..........129 Business impact of tuberculosis ............................. 5.1 ............88 HIV prevalence, % adult pop.* ............................... 1.3 ..........114 Business impact of HIV/AIDS ................................. 5.3 ............79 Infant mortality, deaths/1,000 live births* .............. 49.2 ..........125 Life expectancy, years*......................................... 58.6 ..........126 Quality of primary education ................................... 4.1 ............63 Primary education enrollment, net %* .................. 70.9 ..........134 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 57.5 ..........115 Tertiary education enrollment, gross %*.................. 3.4 ..........135 Quality of the education system ............................. 4.3 ............39 Quality of math and science education .................. 3.6 ............97 Quality of management schools ............................. 4.2 ............75 Internet access in schools ...................................... 3.8 ............86 Availability of research and training services ........... 4.0 ............78 Extent of staff training ............................................ 4.3 ............42 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 27.0 ..........106 Agricultural policy costs.......................................... 4.8 ..............5 Prevalence of trade barriers ................................... 4.5 ............49 Trade tariffs, % duty* ............................................ 13.7 ..........130 Prevalence of foreign ownership............................. 5.1 ............37 Business impact of rules on FDI ............................. 4.7 ............48 Burden of customs procedures .............................. 4.6 ............42 Imports as a percentage of GDP* ........................ 53.2 ............57 Degree of customer orientation .............................. 4.7 ............53 Buyer sophistication ............................................... 3.1 ............99 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.7 ............38 Flexibility of wage determination ............................. 5.7 ............23 Hiring and firing practices ....................................... 4.2 ............37 Redundancy costs, weeks of salary* .................... 26.0 ..........114 Effect of taxation on incentives to work .................. 3.6 ............77 Pay and productivity............................................... 4.3 ............45 Reliance on professional management ................... 4.9 ............30 Country capacity to retain talent............................. 3.4 ............70 Country capacity to attract talent ........................... 3.9 ............42 Women in labor force, ratio to men* ..................... 0.88 ............38 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............96 Affordability of financial services ............................. 4.0 ............87 Financing through local equity market .................... 3.1 ............88 Ease of access to loans ......................................... 2.5 ............95 Venture capital availability ....................................... 2.4 ............93 Soundness of banks .............................................. 4.9 ............68 Regulation of securities exchanges ........................ 3.9 ............81 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.8 ............73 Firm-level technology absorption ............................ 4.5 ............76 FDI and technology transfer ................................... 4.5 ............80 Individuals using Internet, %* ............................... 14.0 ..........117 Fixed broadband Internet subscriptions/100 pop.* ... 0.0 ..........136 Int’l Internet bandwidth, kb/s per user* .................. 7.2 ..........106 Mobile broadband subscriptions/100 pop.*............ 1.2 ..........122 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.4 ..........142 Foreign market size index, 1–7 (best)* .................... 2.3 ..........141 GDP (PPP$ billions)* .............................................. 3.7 ..........142 Exports as a percentage of GDP* ........................ 27.7 ..........106 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............89 Local supplier quality.............................................. 4.3 ............77 State of cluster development.................................. 3.8 ............73 Nature of competitive advantage ............................ 3.4 ............70 Value chain breadth................................................ 3.7 ............74 Control of international distribution ......................... 3.9 ............80 Production process sophistication.......................... 3.4 ..........100 Extent of marketing ................................................ 3.9 ............95 Willingness to delegate authority ............................ 3.9 ............50 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............78 Quality of scientific research institutions ................. 3.3 ............95 Company spending on R&D................................... 2.9 ............90 University-industry collaboration in R&D ................. 3.3 ............87 Gov’t procurement of advanced tech products ...... 3.9 ............32 Availability of scientists and engineers .................... 3.1 ..........129 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............87 Extent of market dominance .................................. 4.0 ............51 Effectiveness of anti-monopoly policy ..................... 4.3 ............53 Effect of taxation on incentives to invest................. 3.3 ..........104 Total tax rate, % profits* ..................................... 283.2 ..........144 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 187 2.1: Country/Economy Profiles Georgia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 4.5 GDP (US$ billions) .......................................... 16.2 GDP per capita (US$) ................................... 3,605 GDP (PPP) as share (%) of world total ............ 0.03 Georgia 15,000 Commonwealth of Independent States 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 69 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 72 ......4.2 GCI 2012–2013 (out of 144) ..................................... 77 ......4.1 GCI 2011–2012 (out of 142) ..................................... 88 ......4.0 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................48 ......4.9 Innovation Institutions ................................................................ 48 ......4.2 Infrastructure ............................................................ 59 ......4.3 Macroeconomic environment ................................... 48 ......5.1 Health and primary education ................................... 63 ......5.8 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................79 ......3.9 Market size Higher education and training ................................... 92 ......3.9 Goods market efficiency .......................................... 60 ......4.4 Labor market efficiency ............................................ 41 ......4.5 Financial market development .................................. 76 ......3.9 Technological readiness ............................................ 67 ......3.8 Market size ............................................................. 103 ......3.0 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........118 ......3.1 Business sophistication ......................................... 113 ......3.5 Innovation ............................................................... 121 ......2.7 Georgia Commonwealth of Independent States The most problematic factors for doing business Inadequately educated workforce ......................................20.2 Access to financing ...........................................................18.8 Inadequate supply of infrastructure ....................................10.4 Poor work ethic in national labor force ................................9.0 Insufficient capacity to innovate ...........................................8.3 Policy instability ...................................................................6.5 Inefficient government bureaucracy .....................................4.9 Tax regulations ....................................................................4.2 Tax rates..............................................................................4.0 Government instability/coups ..............................................3.7 Restrictive labor regulations .................................................3.1 Poor public health ...............................................................2.7 Inflation ................................................................................2.3 Foreign currency regulations ................................................1.8 Corruption ...........................................................................0.1 Crime and theft ...................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 188 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Georgia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.9 ............85 Intellectual property protection ............................... 3.0 ..........106 Diversion of public funds ........................................ 4.5 ............32 Public trust in politicians ......................................... 2.9 ............79 Irregular payments and bribes ................................ 5.6 ............23 Judicial independence............................................ 3.8 ............65 Favoritism in decisions of government officials ....... 3.4 ............48 Wastefulness of government spending ................... 3.2 ............67 Burden of government regulation ........................... 4.5 ..............8 Efficiency of legal framework in settling disputes .... 3.7 ............71 Efficiency of legal framework in challenging regs. ... 3.2 ............83 Transparency of government policymaking............. 4.7 ............24 Business costs of terrorism .................................... 5.9 ............35 Business costs of crime and violence..................... 5.3 ............29 Organized crime ..................................................... 5.8 ............27 Reliability of police services .................................... 5.4 ............28 Ethical behavior of firms ......................................... 4.2 ............54 Strength of auditing and reporting standards ......... 4.4 ............85 Efficacy of corporate boards .................................. 4.2 ..........101 Protection of minority shareholders’ interests ......... 3.5 ..........110 Strength of investor protection, 0–10 (best)* .......... 7.0 ............16 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.6 ............54 Quality of roads ...................................................... 4.0 ............65 Quality of railroad infrastructure .............................. 3.9 ............33 Quality of port infrastructure ................................... 4.2 ............67 Quality of air transport infrastructure....................... 4.1 ............84 Available airline seat km/week, millions* ............... 40.7 ..........105 Quality of electricity supply ..................................... 5.2 ............57 Mobile telephone subscriptions/100 pop.* ......... 115.0 ............65 Fixed telephone lines/100 pop.* ........................... 27.7 ............40 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.3 ............40 Gross national savings, % GDP* .......................... 19.4 ............72 Inflation, annual % change* .................................. –0.5 ............78 General government debt, % GDP* ..................... 31.8 ............41 Country credit rating, 0–100 (best)* ...................... 38.3 ............84 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.0 ..............1 Business impact of malaria .................................... 6.3 ..............6 Tuberculosis cases/100,000 pop.* ..................... 116.0 ............98 Business impact of tuberculosis ............................. 5.7 ............67 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 6.0 ............44 Infant mortality, deaths/1,000 live births* .............. 17.8 ............84 Life expectancy, years*......................................... 73.9 ............72 Quality of primary education ................................... 3.5 ............92 Primary education enrollment, net %* .................. 98.3 ............27 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 86.8 ............80 Tertiary education enrollment, gross %*................ 27.9 ............84 Quality of the education system ............................. 3.2 ............98 Quality of math and science education .................. 3.4 ..........105 Quality of management schools ............................. 3.8 ............98 Internet access in schools ...................................... 4.6 ............59 Availability of research and training services ........... 3.4 ..........116 Extent of staff training ............................................ 3.5 ..........114 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 2 ..............3 No. days to start a business* ................................. 2.0 ..............2 Agricultural policy costs.......................................... 3.5 ............99 Prevalence of trade barriers ................................... 5.3 ..............6 Trade tariffs, % duty* .............................................. 1.1 ............32 Prevalence of foreign ownership............................. 4.2 ..........100 Business impact of rules on FDI ............................. 4.9 ............28 Burden of customs procedures .............................. 5.6 ..............7 Imports as a percentage of GDP* ........................ 57.8 ............45 Degree of customer orientation .............................. 3.8 ..........121 Buyer sophistication ............................................... 3.1 ............96 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............80 Flexibility of wage determination ............................. 5.6 ............26 Hiring and firing practices ....................................... 4.7 ............14 Redundancy costs, weeks of salary* ...................... 4.3 ............13 Effect of taxation on incentives to work .................. 4.4 ............20 Pay and productivity............................................... 4.1 ............57 Reliance on professional management ................... 4.1 ............78 Country capacity to retain talent............................. 3.0 ..........101 Country capacity to attract talent ........................... 2.6 ..........116 Women in labor force, ratio to men* ..................... 0.77 ............82 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............89 Affordability of financial services ............................. 4.1 ............75 Financing through local equity market .................... 2.2 ..........126 Ease of access to loans ......................................... 2.4 ..........110 Venture capital availability ....................................... 2.1 ..........118 Soundness of banks .............................................. 4.9 ............67 Regulation of securities exchanges ........................ 3.1 ..........121 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.5 ............89 Firm-level technology absorption ............................ 4.2 ..........103 FDI and technology transfer ................................... 3.9 ..........113 Individuals using Internet, %* ............................... 43.1 ............80 Fixed broadband Internet subscriptions/100 pop.* . 10.2 ............62 Int’l Internet bandwidth, kb/s per user* ................ 82.1 ............33 Mobile broadband subscriptions/100 pop.*.......... 16.4 ............83 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.8 ..........101 Foreign market size index, 1–7 (best)* .................... 3.6 ..........108 GDP (PPP$ billions)* ............................................ 27.6 ..........106 Exports as a percentage of GDP* ........................ 36.3 ............76 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.6 ..........138 Local supplier quality.............................................. 3.7 ..........120 State of cluster development.................................. 3.2 ..........112 Nature of competitive advantage ............................ 3.3 ............80 Value chain breadth................................................ 3.4 ..........106 Control of international distribution ......................... 3.7 ............99 Production process sophistication.......................... 3.2 ..........114 Extent of marketing ................................................ 3.7 ..........104 Willingness to delegate authority ............................ 3.2 ..........118 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.3 ..........110 Quality of scientific research institutions ................. 2.8 ..........119 Company spending on R&D................................... 2.4 ..........126 University-industry collaboration in R&D ................. 2.6 ..........128 Gov’t procurement of advanced tech products ...... 3.5 ............69 Availability of scientists and engineers .................... 3.2 ..........122 PCT patents, applications/million pop.* .................. 1.3 ............65 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.6 ..........105 Extent of market dominance .................................. 3.3 ..........103 Effectiveness of anti-monopoly policy ..................... 3.3 ..........127 Effect of taxation on incentives to invest................. 4.4 ............22 Total tax rate, % profits* ....................................... 16.4 ............10 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 189 2.1: Country/Economy Profiles Germany Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 80.8 GDP (US$ billions) ..................................... 3,636.0 GDP per capita (US$) ................................. 44,999 GDP (PPP) as share (%) of world total ............ 3.72 Germany 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ........................................................ 5 ..... 5.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ....................................... 4 ......5.5 GCI 2012–2013 (out of 144) ....................................... 6 ......5.5 GCI 2011–2012 (out of 142) ....................................... 6 ......5.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................11 ......5.9 7 Innovation Institutions ................................................................ 17 ......5.2 Infrastructure .............................................................. 7 ......6.1 Macroeconomic environment ................................... 24 ......5.8 Health and primary education ................................... 14 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .......................................9 ......5.3 Market size Higher education and training ................................... 16 ......5.6 Goods market efficiency .......................................... 19 ......5.0 Labor market efficiency ............................................ 35 ......4.6 Financial market development .................................. 25 ......4.8 Technological readiness ............................................ 13 ......5.8 Market size ................................................................. 5 ......6.0 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) .............4 ......5.6 Business sophistication ............................................. 3 ......5.6 Innovation ................................................................... 6 ......5.5 Germany Advanced economies The most problematic factors for doing business Restrictive labor regulations ...............................................17.8 Tax regulations ..................................................................17.2 Tax rates............................................................................10.9 Inadequately educated workforce ......................................10.1 Access to financing .............................................................9.9 Inefficient government bureaucracy .....................................8.9 Policy instability ...................................................................6.2 Poor work ethic in national labor force ................................5.7 Insufficient capacity to innovate ...........................................5.0 Inadequate supply of infrastructure ......................................3.3 Corruption ...........................................................................1.7 Foreign currency regulations ................................................1.6 Crime and theft ...................................................................0.8 Inflation ................................................................................0.8 Poor public health ...............................................................0.1 Government instability/coups ..............................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 190 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Germany The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.6 ............19 Intellectual property protection ............................... 5.4 ............21 Diversion of public funds ........................................ 5.3 ............18 Public trust in politicians ......................................... 4.7 ............15 Irregular payments and bribes ................................ 5.6 ............25 Judicial independence............................................ 5.9 ............15 Favoritism in decisions of government officials ....... 4.7 ............12 Wastefulness of government spending ................... 4.2 ............20 Burden of government regulation ........................... 3.6 ............55 Efficiency of legal framework in settling disputes .... 5.4 ............11 Efficiency of legal framework in challenging regs. ... 4.8 ............12 Transparency of government policymaking............. 4.8 ............22 Business costs of terrorism .................................... 5.5 ............60 Business costs of crime and violence..................... 5.2 ............36 Organized crime ..................................................... 5.5 ............39 Reliability of police services .................................... 5.9 ............19 Ethical behavior of firms ......................................... 5.6 ............16 Strength of auditing and reporting standards ......... 5.6 ............23 Efficacy of corporate boards .................................. 5.3 ............21 Protection of minority shareholders’ interests ......... 4.7 ............38 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.0 ............11 Quality of roads ...................................................... 5.9 ............13 Quality of railroad infrastructure .............................. 5.7 ..............8 Quality of port infrastructure ................................... 5.7 ............14 Quality of air transport infrastructure....................... 5.9 ............13 Available airline seat km/week, millions* .......... 4,924.9 ..............5 Quality of electricity supply ..................................... 6.1 ............33 Mobile telephone subscriptions/100 pop.* ......... 119.0 ............58 Fixed telephone lines/100 pop.* ........................... 58.9 ..............5 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.0 ............23 Gross national savings, % GDP* .......................... 24.3 ............45 Inflation, annual % change* .................................... 1.6 ..............1 General government debt, % GDP* ..................... 78.1 ..........118 Country credit rating, 0–100 (best)* ...................... 92.9 ..............4 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 5.6 ............11 Business impact of tuberculosis ............................. 6.5 ............26 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.3 ............29 Infant mortality, deaths/1,000 live births* ................ 3.4 ............19 Life expectancy, years*......................................... 80.9 ............21 Quality of primary education ................................... 5.1 ............22 Primary education enrollment, net %* .................. 97.9 ............30 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 101.3 ............29 Tertiary education enrollment, gross %*................ 61.7 ............37 Quality of the education system ............................. 5.2 ............12 Quality of math and science education .................. 5.1 ............20 Quality of management schools ............................. 5.0 ............29 Internet access in schools ...................................... 5.0 ............43 Availability of research and training services ........... 6.0 ..............3 Extent of staff training ............................................ 5.0 ............13 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 14.5 ............74 Agricultural policy costs.......................................... 4.2 ............31 Prevalence of trade barriers ................................... 4.3 ............87 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.0 ............46 Business impact of rules on FDI ............................. 4.8 ............35 Burden of customs procedures .............................. 4.7 ............37 Imports as a percentage of GDP* ........................ 41.3 ............83 Degree of customer orientation .............................. 5.3 ............20 Buyer sophistication ............................................... 4.3 ............15 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.2 ............19 Flexibility of wage determination ............................. 3.4 ..........136 Hiring and firing practices ....................................... 3.4 ..........109 Redundancy costs, weeks of salary* .................... 21.6 ..........100 Effect of taxation on incentives to work .................. 3.7 ............67 Pay and productivity............................................... 4.3 ............40 Reliance on professional management ................... 5.5 ............19 Country capacity to retain talent............................. 5.1 ............10 Country capacity to attract talent ........................... 4.7 ............18 Women in labor force, ratio to men* ..................... 0.87 ............45 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.6 ............18 Affordability of financial services ............................. 5.5 ............14 Financing through local equity market .................... 4.3 ............31 Ease of access to loans ......................................... 3.3 ............34 Venture capital availability ....................................... 3.4 ............28 Soundness of banks .............................................. 5.3 ............55 Regulation of securities exchanges ........................ 4.8 ............38 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.2 ............17 Firm-level technology absorption ............................ 5.7 ............13 FDI and technology transfer ................................... 4.9 ............43 Individuals using Internet, %* ............................... 84.0 ............17 Fixed broadband Internet subscriptions/100 pop.* . 34.6 ..............9 Int’l Internet bandwidth, kb/s per user* .............. 112.4 ............24 Mobile broadband subscriptions/100 pop.*.......... 44.7 ............45 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.8 ..............5 Foreign market size index, 1–7 (best)* .................... 6.5 ..............3 GDP (PPP$ billions)* ....................................... 3,232.5 ..............5 Exports as a percentage of GDP* ........................ 47.8 ............49 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.6 ..............2 Local supplier quality.............................................. 6.0 ..............4 State of cluster development.................................. 5.5 ..............3 Nature of competitive advantage ............................ 6.0 ..............7 Value chain breadth................................................ 5.9 ..............2 Control of international distribution ......................... 5.2 ..............6 Production process sophistication.......................... 6.2 ..............4 Extent of marketing ................................................ 5.6 ..............7 Willingness to delegate authority ............................ 4.9 ............19 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.6 ..............4 Quality of scientific research institutions ................. 5.8 ..............8 Company spending on R&D................................... 5.5 ..............5 University-industry collaboration in R&D ................. 5.3 ............10 Gov’t procurement of advanced tech products ...... 4.2 ............16 Availability of scientists and engineers .................... 4.9 ............18 PCT patents, applications/million pop.* .............. 226.9 ..............6 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.9 ............12 Extent of market dominance .................................. 5.7 ..............3 Effectiveness of anti-monopoly policy ..................... 5.2 ............12 Effect of taxation on incentives to invest................. 4.1 ............36 Total tax rate, % profits* ....................................... 49.4 ..........110 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 191 2.1: Country/Economy Profiles Ghana Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 25.6 GDP (US$ billions) .......................................... 44.2 GDP per capita (US$) ................................... 1,730 GDP (PPP) as share (%) of world total ............ 0.10 Ghana 3,500 Sub-Saharan Africa 3,000 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 111 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 114 ......3.7 GCI 2012–2013 (out of 144) ................................... 103 ......3.8 GCI 2011–2012 (out of 142) ................................... 114 ......3.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................123 ......3.7 7 Innovation Institutions ................................................................ 69 ......3.9 Infrastructure .......................................................... 108 ......3.0 Macroeconomic environment ................................. 133 ......3.4 Health and primary education ................................. 121 ......4.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) .....................................89 ......3.8 Market size Higher education and training ................................. 106 ......3.5 Goods market efficiency .......................................... 67 ......4.3 Labor market efficiency ............................................ 98 ......3.9 Financial market development .................................. 62 ......4.1 Technological readiness .......................................... 100 ......3.1 Market size ............................................................... 69 ......3.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............68 ......3.6 Business sophistication ........................................... 70 ......3.9 Innovation ................................................................. 63 ......3.3 Ghana Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................20.2 Foreign currency regulations ..............................................17.4 Tax rates............................................................................14.6 Inflation ..............................................................................10.0 Corruption ...........................................................................6.2 Poor work ethic in national labor force ................................5.6 Inefficient government bureaucracy .....................................5.2 Tax regulations ....................................................................4.9 Restrictive labor regulations .................................................4.4 Inadequately educated workforce ........................................3.7 Inadequate supply of infrastructure ......................................3.0 Crime and theft ...................................................................2.1 Policy instability ...................................................................1.9 Poor public health ...............................................................0.7 Insufficient capacity to innovate ...........................................0.1 Government instability/coups ..............................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 192 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Ghana The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.3 ............60 Intellectual property protection ............................... 4.1 ............45 Diversion of public funds ........................................ 3.4 ............58 Public trust in politicians ......................................... 3.2 ............55 Irregular payments and bribes ................................ 3.4 ............98 Judicial independence............................................ 4.4 ............48 Favoritism in decisions of government officials ....... 3.0 ............76 Wastefulness of government spending ................... 3.5 ............47 Burden of government regulation ........................... 3.4 ............74 Efficiency of legal framework in settling disputes .... 4.1 ............45 Efficiency of legal framework in challenging regs. ... 3.4 ............64 Transparency of government policymaking............. 3.9 ............77 Business costs of terrorism .................................... 3.9 ..........126 Business costs of crime and violence..................... 3.7 ..........104 Organized crime ..................................................... 3.9 ..........118 Reliability of police services .................................... 4.1 ............72 Ethical behavior of firms ......................................... 3.9 ............77 Strength of auditing and reporting standards ......... 4.2 ..........101 Efficacy of corporate boards .................................. 4.2 ..........100 Protection of minority shareholders’ interests ......... 4.0 ............78 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.4 ..........110 Quality of roads ...................................................... 3.7 ............79 Quality of railroad infrastructure .............................. 2.7 ............66 Quality of port infrastructure ................................... 3.7 ............92 Quality of air transport infrastructure....................... 4.1 ............80 Available airline seat km/week, millions* ............. 124.2 ............77 Quality of electricity supply ..................................... 3.0 ..........112 Mobile telephone subscriptions/100 pop.* ......... 108.2 ............76 Fixed telephone lines/100 pop.* ............................. 1.0 ..........124 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*............... –10.8 ..........141 Gross national savings, % GDP* .......................... 20.2 ............67 Inflation, annual % change* .................................. 11.7 ..........140 General government debt, % GDP* ..................... 60.1 ..........100 Country credit rating, 0–100 (best)* ...................... 35.7 ............92 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 27,201.3 ............69 Business impact of malaria .................................... 3.7 ............60 Tuberculosis cases/100,000 pop.* ....................... 72.0 ............83 Business impact of tuberculosis ............................. 4.6 ..........103 HIV prevalence, % adult pop.* ............................... 1.4 ..........119 Business impact of HIV/AIDS ................................. 4.9 ............92 Infant mortality, deaths/1,000 live births* .............. 48.6 ..........122 Life expectancy, years*......................................... 60.9 ..........123 Quality of primary education ................................... 3.0 ..........112 Primary education enrollment, net %* .................. 87.1 ..........108 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 61.1 ..........112 Tertiary education enrollment, gross %*................ 12.2 ..........106 Quality of the education system ............................. 3.8 ............59 Quality of math and science education .................. 4.4 ............52 Quality of management schools ............................. 4.6 ............50 Internet access in schools ...................................... 3.2 ..........113 Availability of research and training services ........... 3.8 ............92 Extent of staff training ............................................ 4.1 ............61 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 14.0 ............69 Agricultural policy costs.......................................... 3.6 ............93 Prevalence of trade barriers ................................... 3.9 ..........127 Trade tariffs, % duty* ............................................ 10.4 ..........106 Prevalence of foreign ownership............................. 4.5 ............72 Business impact of rules on FDI ............................. 4.2 ............87 Burden of customs procedures .............................. 3.4 ..........113 Imports as a percentage of GDP* ........................ 50.5 ............63 Degree of customer orientation .............................. 4.5 ............73 Buyer sophistication ............................................... 3.4 ............69 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............85 Flexibility of wage determination ............................. 3.3 ..........137 Hiring and firing practices ....................................... 3.9 ............72 Redundancy costs, weeks of salary* .................... 49.8 ..........137 Effect of taxation on incentives to work .................. 4.0 ............38 Pay and productivity............................................... 4.0 ............63 Reliance on professional management ................... 4.4 ............58 Country capacity to retain talent............................. 3.6 ............57 Country capacity to attract talent ........................... 3.4 ............69 Women in labor force, ratio to men* ..................... 0.96 ............10 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.0 ............99 Affordability of financial services ............................. 3.8 ............97 Financing through local equity market .................... 4.0 ............38 Ease of access to loans ......................................... 2.9 ............58 Venture capital availability ....................................... 3.2 ............36 Soundness of banks .............................................. 4.4 ............97 Regulation of securities exchanges ........................ 3.9 ............80 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.3 ..........104 Firm-level technology absorption ............................ 4.3 ............95 FDI and technology transfer ................................... 4.2 ..........100 Individuals using Internet, %* ............................... 12.3 ..........121 Fixed broadband Internet subscriptions/100 pop.* ... 0.3 ..........117 Int’l Internet bandwidth, kb/s per user* .................. 5.2 ..........116 Mobile broadband subscriptions/100 pop.*.......... 39.9 ............54 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.5 ............68 Foreign market size index, 1–7 (best)* .................... 4.3 ............76 GDP (PPP$ billions)* ............................................ 88.5 ............72 Exports as a percentage of GDP* ........................ 36.7 ............74 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.2 ..........106 Local supplier quality.............................................. 3.9 ..........107 State of cluster development.................................. 3.7 ............77 Nature of competitive advantage ............................ 3.9 ............47 Value chain breadth................................................ 3.9 ............61 Control of international distribution ......................... 4.0 ............71 Production process sophistication.......................... 3.9 ............68 Extent of marketing ................................................ 4.0 ............91 Willingness to delegate authority ............................ 3.9 ............58 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............49 Quality of scientific research institutions ................. 3.7 ............73 Company spending on R&D................................... 3.5 ............44 University-industry collaboration in R&D ................. 3.5 ............77 Gov’t procurement of advanced tech products ...... 3.5 ............65 Availability of scientists and engineers .................... 3.6 ............95 PCT patents, applications/million pop.* .................. 0.0 ..........108 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.4 ..........118 Extent of market dominance .................................. 4.1 ............42 Effectiveness of anti-monopoly policy ..................... 4.0 ............70 Effect of taxation on incentives to invest................. 4.2 ............32 Total tax rate, % profits* ....................................... 22.9 ............18 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 193 2.1: Country/Economy Profiles Greece Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 11.1 GDP (US$ billions) ........................................ 241.8 GDP per capita (US$) ................................. 21,857 GDP (PPP) as share (%) of world total ............ 0.31 Greece 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 81 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 91 ......3.9 GCI 2012–2013 (out of 144) ..................................... 96 ......3.9 GCI 2011–2012 (out of 142) ..................................... 90 ......3.9 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................76 ......4.5 7 Innovation Institutions ................................................................ 85 ......3.6 Infrastructure ............................................................ 36 ......4.9 Macroeconomic environment ................................. 135 ......3.3 Health and primary education ................................... 41 ......6.1 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................65 ......4.1 Market size Higher education and training ................................... 44 ......4.8 Goods market efficiency .......................................... 85 ......4.2 Labor market efficiency .......................................... 118 ......3.7 Financial market development ................................ 130 ......3.0 Technological readiness ............................................ 39 ......4.8 Market size ............................................................... 49 ......4.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........74 ......3.5 Business sophistication ........................................... 74 ......3.9 Innovation ................................................................. 79 ......3.2 Greece Advanced economies The most problematic factors for doing business Access to financing ...........................................................22.4 Inefficient government bureaucracy ...................................19.8 Tax regulations ..................................................................16.4 Policy instability .................................................................14.2 Tax rates..............................................................................9.4 Corruption ...........................................................................4.3 Restrictive labor regulations .................................................4.1 Insufficient capacity to innovate ...........................................2.6 Inadequate supply of infrastructure ......................................2.4 Government instability/coups ..............................................2.3 Inadequately educated workforce ........................................1.5 Poor work ethic in national labor force ................................0.6 Poor public health ...............................................................0.1 Crime and theft ...................................................................0.0 Foreign currency regulations ................................................0.0 Inflation ................................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 194 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Greece The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.9 ............82 Intellectual property protection ............................... 3.9 ............57 Diversion of public funds ........................................ 3.0 ............81 Public trust in politicians ......................................... 2.3 ..........106 Irregular payments and bribes ................................ 3.8 ............78 Judicial independence............................................ 3.7 ............70 Favoritism in decisions of government officials ....... 2.6 ..........109 Wastefulness of government spending ................... 2.2 ..........131 Burden of government regulation ........................... 2.4 ..........136 Efficiency of legal framework in settling disputes .... 2.7 ..........126 Efficiency of legal framework in challenging regs. ... 2.7 ..........114 Transparency of government policymaking............. 3.4 ..........120 Business costs of terrorism .................................... 5.3 ............69 Business costs of crime and violence..................... 4.9 ............45 Organized crime ..................................................... 5.5 ............42 Reliability of police services .................................... 4.4 ............58 Ethical behavior of firms ......................................... 3.7 ............99 Strength of auditing and reporting standards ......... 4.3 ............89 Efficacy of corporate boards .................................. 3.9 ..........124 Protection of minority shareholders’ interests ......... 4.3 ............63 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.6 ............57 Quality of roads ...................................................... 4.3 ............55 Quality of railroad infrastructure .............................. 2.9 ............57 Quality of port infrastructure ................................... 4.7 ............49 Quality of air transport infrastructure....................... 5.2 ............40 Available airline seat km/week, millions* ............. 605.7 ............37 Quality of electricity supply ..................................... 5.3 ............55 Mobile telephone subscriptions/100 pop.* ......... 116.8 ............59 Fixed telephone lines/100 pop.* ........................... 47.9 ............14 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.6 ............66 Gross national savings, % GDP* .......................... 13.7 ..........118 Inflation, annual % change* .................................. –0.9 ............85 General government debt, % GDP* ................... 173.8 ..........142 Country credit rating, 0–100 (best)* ...................... 25.5 ..........119 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 4.5 ..............6 Business impact of tuberculosis ............................. 6.3 ............36 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 6.1 ............42 Infant mortality, deaths/1,000 live births* ................ 4.1 ............28 Life expectancy, years*......................................... 80.6 ............23 Quality of primary education ................................... 3.8 ............74 Primary education enrollment, net %* .................. 99.5 ..............9 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 107.9 ............13 Tertiary education enrollment, gross %*.............. 114.0 ..............1 Quality of the education system ............................. 3.0 ..........111 Quality of math and science education .................. 4.3 ............61 Quality of management schools ............................. 3.9 ............89 Internet access in schools ...................................... 4.1 ............77 Availability of research and training services ........... 3.8 ............90 Extent of staff training ............................................ 3.6 ..........112 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 14.0 ............69 Agricultural policy costs.......................................... 3.0 ..........129 Prevalence of trade barriers ................................... 5.0 ............14 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.5 ............77 Business impact of rules on FDI ............................. 3.0 ..........133 Burden of customs procedures .............................. 4.2 ............61 Imports as a percentage of GDP* ........................ 31.7 ..........113 Degree of customer orientation .............................. 4.6 ............62 Buyer sophistication ............................................... 3.3 ............84 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.9 ..........108 Flexibility of wage determination ............................. 4.2 ..........118 Hiring and firing practices ....................................... 3.6 ............92 Redundancy costs, weeks of salary* .................... 15.9 ............76 Effect of taxation on incentives to work .................. 2.5 ..........138 Pay and productivity............................................... 3.3 ..........121 Reliance on professional management ................... 3.8 ............98 Country capacity to retain talent............................. 3.0 ............96 Country capacity to attract talent ........................... 2.3 ..........127 Women in labor force, ratio to men* ..................... 0.76 ............87 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.8 ..........110 Affordability of financial services ............................. 3.6 ..........118 Financing through local equity market .................... 2.3 ..........121 Ease of access to loans ......................................... 1.7 ..........136 Venture capital availability ....................................... 1.9 ..........135 Soundness of banks .............................................. 2.8 ..........141 Regulation of securities exchanges ........................ 3.7 ............94 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.0 ............61 Firm-level technology absorption ............................ 4.5 ............74 FDI and technology transfer ................................... 4.1 ..........105 Individuals using Internet, %* ............................... 59.9 ............54 Fixed broadband Internet subscriptions/100 pop.* . 26.2 ............21 Int’l Internet bandwidth, kb/s per user* ................ 84.8 ............32 Mobile broadband subscriptions/100 pop.*.......... 36.1 ............59 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.2 ............46 Foreign market size index, 1–7 (best)* .................... 4.8 ............57 GDP (PPP$ billions)* .......................................... 265.6 ............50 Exports as a percentage of GDP* ........................ 30.3 ............95 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............65 Local supplier quality.............................................. 4.4 ............66 State of cluster development.................................. 3.0 ..........125 Nature of competitive advantage ............................ 4.0 ............42 Value chain breadth................................................ 3.7 ............73 Control of international distribution ......................... 4.0 ............72 Production process sophistication.......................... 3.7 ............76 Extent of marketing ................................................ 4.2 ............69 Willingness to delegate authority ............................ 3.6 ............92 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.3 ..........109 Quality of scientific research institutions ................. 3.7 ............70 Company spending on R&D................................... 2.6 ..........114 University-industry collaboration in R&D ................. 3.1 ..........111 Gov’t procurement of advanced tech products ...... 2.6 ..........136 Availability of scientists and engineers .................... 5.4 ..............4 PCT patents, applications/million pop.* .................. 7.6 ............39 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.1 ............71 Extent of market dominance .................................. 3.9 ............59 Effectiveness of anti-monopoly policy ..................... 3.8 ............92 Effect of taxation on incentives to invest................. 2.4 ..........141 Total tax rate, % profits* ....................................... 44.0 ............96 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 195 2.1: Country/Economy Profiles Guatemala Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 15.5 GDP (US$ billions) .......................................... 54.4 GDP per capita (US$) ................................... 3,513 GDP (PPP) as share (%) of world total ............ 0.09 Guatemala 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 78 ..... 4.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 86 ......4.0 GCI 2012–2013 (out of 144) ..................................... 83 ......4.0 GCI 2011–2012 (out of 142) ..................................... 84 ......4.0 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................84 ......4.4 7 Innovation Institutions .............................................................. 109 ......3.3 Infrastructure ............................................................ 67 ......4.2 Macroeconomic environment ................................... 64 ......4.7 Health and primary education ................................. 100 ......5.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................76 ......4.0 Market size Higher education and training ................................. 103 ......3.6 Goods market efficiency .......................................... 45 ......4.6 Labor market efficiency ............................................ 85 ......4.1 Financial market development .................................. 45 ......4.4 Technological readiness ............................................ 88 ......3.5 Market size ............................................................... 78 ......3.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........62 ......3.7 Business sophistication ........................................... 52 ......4.3 Innovation ................................................................. 95 ......3.1 Guatemala Latin America and the Caribbean The most problematic factors for doing business Crime and theft .................................................................20.4 Corruption .........................................................................16.4 Inadequate supply of infrastructure ....................................11.4 Inefficient government bureaucracy ...................................11.0 Inadequately educated workforce ......................................10.4 Tax regulations ....................................................................8.4 Restrictive labor regulations .................................................5.2 Policy instability ...................................................................3.7 Access to financing .............................................................3.1 Insufficient capacity to innovate ...........................................2.9 Poor work ethic in national labor force ................................2.9 Poor public health ...............................................................1.5 Tax rates..............................................................................1.5 Inflation ................................................................................0.6 Foreign currency regulations ................................................0.4 Government instability/coups ..............................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 196 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Guatemala The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.8 ............88 Intellectual property protection ............................... 3.1 ..........103 Diversion of public funds ........................................ 2.2 ..........127 Public trust in politicians ......................................... 1.8 ..........137 Irregular payments and bribes ................................ 3.9 ............72 Judicial independence............................................ 3.0 ..........105 Favoritism in decisions of government officials ....... 2.6 ..........110 Wastefulness of government spending ................... 2.3 ..........128 Burden of government regulation ........................... 3.6 ............51 Efficiency of legal framework in settling disputes .... 3.3 ............96 Efficiency of legal framework in challenging regs. ... 3.5 ............54 Transparency of government policymaking............. 4.4 ............45 Business costs of terrorism .................................... 4.9 ............88 Business costs of crime and violence..................... 2.1 ..........142 Organized crime ..................................................... 2.5 ..........144 Reliability of police services .................................... 2.9 ..........124 Ethical behavior of firms ......................................... 3.9 ............79 Strength of auditing and reporting standards ......... 4.8 ............65 Efficacy of corporate boards .................................. 5.2 ............26 Protection of minority shareholders’ interests ......... 4.0 ............77 Strength of investor protection, 0–10 (best)* .......... 3.3 ..........123 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.5 ............60 Quality of roads ...................................................... 3.7 ............78 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.0 ............74 Quality of air transport infrastructure....................... 4.1 ............83 Available airline seat km/week, millions* ............... 44.3 ..........103 Quality of electricity supply ..................................... 5.4 ............50 Mobile telephone subscriptions/100 pop.* ......... 140.4 ............32 Fixed telephone lines/100 pop.* ........................... 12.0 ............83 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.1 ............53 Gross national savings, % GDP* .......................... 11.5 ..........124 Inflation, annual % change* .................................... 4.3 ............88 General government debt, % GDP* ..................... 24.4 ............26 Country credit rating, 0–100 (best)* ...................... 44.4 ............74 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 57.7 ............31 Business impact of malaria .................................... 5.9 ............13 Tuberculosis cases/100,000 pop.* ....................... 60.0 ............78 Business impact of tuberculosis ............................. 6.0 ............53 HIV prevalence, % adult pop.* ............................... 0.7 ............97 Business impact of HIV/AIDS ................................. 5.7 ............66 Infant mortality, deaths/1,000 live births* .............. 26.5 ............98 Life expectancy, years*......................................... 71.7 ............86 Quality of primary education ................................... 2.5 ..........130 Primary education enrollment, net %* .................. 92.8 ............80 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 65.1 ..........110 Tertiary education enrollment, gross %*................ 17.9 ............96 Quality of the education system ............................. 2.7 ..........127 Quality of math and science education .................. 2.5 ..........135 Quality of management schools ............................. 4.7 ............41 Internet access in schools ...................................... 3.4 ..........107 Availability of research and training services ........... 4.4 ............54 Extent of staff training ............................................ 4.6 ............28 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 19.5 ............92 Agricultural policy costs.......................................... 4.1 ............38 Prevalence of trade barriers ................................... 4.4 ............58 Trade tariffs, % duty* .............................................. 3.9 ............52 Prevalence of foreign ownership............................. 4.9 ............53 Business impact of rules on FDI ............................. 4.2 ............96 Burden of customs procedures .............................. 3.7 ............88 Imports as a percentage of GDP* ........................ 36.8 ............98 Degree of customer orientation .............................. 5.3 ............21 Buyer sophistication ............................................... 3.6 ............56 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.2 ............18 Flexibility of wage determination ............................. 5.7 ............21 Hiring and firing practices ....................................... 4.4 ............24 Redundancy costs, weeks of salary* .................... 27.0 ..........117 Effect of taxation on incentives to work .................. 3.8 ............55 Pay and productivity............................................... 4.3 ............46 Reliance on professional management ................... 4.3 ............60 Country capacity to retain talent............................. 4.1 ............35 Country capacity to attract talent ........................... 3.3 ............85 Women in labor force, ratio to men* ..................... 0.57 ..........121 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.3 ............29 Affordability of financial services ............................. 5.0 ............33 Financing through local equity market .................... 2.4 ..........120 Ease of access to loans ......................................... 3.1 ............47 Venture capital availability ....................................... 2.7 ............63 Soundness of banks .............................................. 6.0 ............19 Regulation of securities exchanges ........................ 3.7 ............97 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.3 ............47 Firm-level technology absorption ............................ 5.0 ............47 FDI and technology transfer ................................... 5.0 ............38 Individuals using Internet, %* ............................... 19.7 ..........103 Fixed broadband Internet subscriptions/100 pop.* ... 1.8 ............97 Int’l Internet bandwidth, kb/s per user* ................ 10.8 ............96 Mobile broadband subscriptions/100 pop.*............ 4.4 ..........111 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.5 ............72 Foreign market size index, 1–7 (best)* .................... 4.0 ............90 GDP (PPP$ billions)* ............................................ 81.8 ............73 Exports as a percentage of GDP* ........................ 23.0 ..........122 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.9 ............33 Local supplier quality.............................................. 5.0 ............35 State of cluster development.................................. 3.9 ............57 Nature of competitive advantage ............................ 3.4 ............71 Value chain breadth................................................ 4.2 ............42 Control of international distribution ......................... 4.4 ............39 Production process sophistication.......................... 4.1 ............60 Extent of marketing ................................................ 4.6 ............45 Willingness to delegate authority ............................ 4.0 ............44 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.2 ............41 Quality of scientific research institutions ................. 3.0 ..........111 Company spending on R&D................................... 3.1 ............76 University-industry collaboration in R&D ................. 3.6 ............68 Gov’t procurement of advanced tech products ...... 3.0 ..........111 Availability of scientists and engineers .................... 3.6 ..........101 PCT patents, applications/million pop.* .................. 0.1 ..........103 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............42 Extent of market dominance .................................. 4.1 ............46 Effectiveness of anti-monopoly policy ..................... 3.8 ............93 Effect of taxation on incentives to invest................. 3.9 ............59 Total tax rate, % profits* ....................................... 40.9 ............85 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 197 2.1: Country/Economy Profiles Guinea Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 11.1 GDP (US$ billions) ............................................ 6.3 GDP per capita (US$) ...................................... 565 GDP (PPP) as share (%) of world total ............ 0.01 Guinea 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 144 ..... 2.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 147 ......2.9 GCI 2012–2013 (out of 144) ................................... 141 ......2.9 GCI 2011–2012 (out of 142) .................................... n/a ......n/a Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................144 ......2.8 7 Innovation Institutions .............................................................. 134 ......2.8 Infrastructure .......................................................... 143 ......1.8 Macroeconomic environment ................................. 138 ......3.2 Health and primary education ................................. 139 ......3.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................138 ......2.9 Market size Higher education and training ................................. 140 ......2.2 Goods market efficiency ........................................ 137 ......3.4 Labor market efficiency ............................................ 89 ......4.0 Financial market development ................................ 134 ......2.8 Technological readiness .......................................... 139 ......2.4 Market size ............................................................. 127 ......2.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........142 ......2.6 Business sophistication ......................................... 141 ......2.9 Innovation ............................................................... 141 ......2.2 Guinea Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................20.9 Corruption .........................................................................19.4 Inadequate supply of infrastructure ....................................14.7 Policy instability ...................................................................8.7 Inadequately educated workforce ........................................7.4 Inefficient government bureaucracy .....................................6.8 Crime and theft ...................................................................5.2 Foreign currency regulations ................................................3.2 Poor work ethic in national labor force ................................3.0 Restrictive labor regulations .................................................2.9 Inflation ................................................................................2.8 Insufficient capacity to innovate ...........................................2.0 Government instability/coups ..............................................1.8 Tax regulations ....................................................................0.5 Poor public health ...............................................................0.4 Tax rates..............................................................................0.4 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 198 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Guinea The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.6 ..........137 Intellectual property protection ............................... 2.2 ..........140 Diversion of public funds ........................................ 2.0 ..........136 Public trust in politicians ......................................... 2.3 ..........107 Irregular payments and bribes ................................ 2.1 ..........143 Judicial independence............................................ 2.0 ..........139 Favoritism in decisions of government officials ....... 2.0 ..........138 Wastefulness of government spending ................... 2.6 ............97 Burden of government regulation ........................... 3.5 ............68 Efficiency of legal framework in settling disputes .... 2.3 ..........142 Efficiency of legal framework in challenging regs. ... 2.4 ..........126 Transparency of government policymaking............. 3.0 ..........134 Business costs of terrorism .................................... 5.5 ............61 Business costs of crime and violence..................... 3.6 ..........109 Organized crime ..................................................... 4.1 ..........107 Reliability of police services .................................... 3.0 ..........119 Ethical behavior of firms ......................................... 3.1 ..........137 Strength of auditing and reporting standards ......... 3.1 ..........137 Efficacy of corporate boards .................................. 4.2 ..........102 Protection of minority shareholders’ interests ......... 3.0 ..........135 Strength of investor protection, 0–10 (best)* .......... 2.7 ..........138 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.1 ..........143 Quality of roads ...................................................... 1.9 ..........143 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.9 ..........116 Quality of air transport infrastructure....................... 2.5 ..........138 Available airline seat km/week, millions* ................. 8.6 ..........137 Quality of electricity supply ..................................... 1.3 ..........144 Mobile telephone subscriptions/100 pop.* ........... 63.3 ..........131 Fixed telephone lines/100 pop.* ............................. 0.0 ..........144 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.3 ..........111 Gross national savings, % GDP* .......................... –1.0 ..........141 Inflation, annual % change* .................................. 12.0 ..........141 General government debt, % GDP* ..................... 37.8 ............57 Country credit rating, 0–100 (best)* ...................... 12.5 ..........140 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 38,423.7 ............76 Business impact of malaria .................................... 3.2 ............67 Tuberculosis cases/100,000 pop.* ..................... 178.0 ..........114 Business impact of tuberculosis ............................. 4.5 ..........105 HIV prevalence, % adult pop.* ............................... 1.7 ..........122 Business impact of HIV/AIDS ................................. 4.6 ..........106 Infant mortality, deaths/1,000 live births* .............. 65.2 ..........134 Life expectancy, years*......................................... 55.8 ..........131 Quality of primary education ................................... 2.3 ..........135 Primary education enrollment, net %* .................. 74.4 ..........130 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 38.1 ..........129 Tertiary education enrollment, gross %*.................. 9.9 ..........114 Quality of the education system ............................. 2.4 ..........137 Quality of math and science education .................. 3.1 ..........115 Quality of management schools ............................. 2.3 ..........141 Internet access in schools ...................................... 1.8 ..........139 Availability of research and training services ........... 2.8 ..........139 Extent of staff training ............................................ 3.2 ..........128 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 16.0 ............79 Agricultural policy costs.......................................... 3.3 ..........113 Prevalence of trade barriers ................................... 4.0 ..........108 Trade tariffs, % duty* ............................................ 11.5 ..........120 Prevalence of foreign ownership............................. 3.5 ..........119 Business impact of rules on FDI ............................. 3.4 ..........127 Burden of customs procedures .............................. 3.3 ..........117 Imports as a percentage of GDP* ........................ 53.6 ............55 Degree of customer orientation .............................. 3.4 ..........136 Buyer sophistication ............................................... 1.9 ..........143 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.7 ..........124 Flexibility of wage determination ............................. 5.3 ............47 Hiring and firing practices ....................................... 3.4 ..........105 Redundancy costs, weeks of salary* ...................... 7.9 ............23 Effect of taxation on incentives to work .................. 3.8 ............57 Pay and productivity............................................... 2.8 ..........134 Reliance on professional management ................... 2.8 ..........138 Country capacity to retain talent............................. 2.5 ..........126 Country capacity to attract talent ........................... 2.7 ..........112 Women in labor force, ratio to men* ..................... 0.84 ............58 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.9 ..........137 Affordability of financial services ............................. 2.8 ..........141 Financing through local equity market .................... 1.6 ..........142 Ease of access to loans ......................................... 2.4 ..........105 Venture capital availability ....................................... 1.9 ..........130 Soundness of banks .............................................. 3.6 ..........127 Regulation of securities exchanges ........................ 1.9 ..........139 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.3 ..........137 Firm-level technology absorption ............................ 3.7 ..........133 FDI and technology transfer ................................... 3.8 ..........121 Individuals using Internet, %* ................................. 1.6 ..........141 Fixed broadband Internet subscriptions/100 pop.* ... 0.0 ..........141 Int’l Internet bandwidth, kb/s per user* .................. 2.5 ..........135 Mobile broadband subscriptions/100 pop.*............ 0.0 ..........133 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.3 ..........128 Foreign market size index, 1–7 (best)* .................... 3.0 ..........132 GDP (PPP$ billions)* ............................................ 12.5 ..........129 Exports as a percentage of GDP* ........................ 25.9 ..........111 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.8 ..........131 Local supplier quality.............................................. 3.1 ..........137 State of cluster development.................................. 3.0 ..........123 Nature of competitive advantage ............................ 2.6 ..........133 Value chain breadth................................................ 2.9 ..........135 Control of international distribution ......................... 3.0 ..........140 Production process sophistication.......................... 2.3 ..........144 Extent of marketing ................................................ 2.7 ..........140 Willingness to delegate authority ............................ 2.3 ..........143 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.7 ..........141 Quality of scientific research institutions ................. 2.3 ..........137 Company spending on R&D................................... 2.0 ..........142 University-industry collaboration in R&D ................. 2.2 ..........140 Gov’t procurement of advanced tech products ...... 2.6 ..........131 Availability of scientists and engineers .................... 2.9 ..........137 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.2 ..........129 Extent of market dominance .................................. 3.3 ..........104 Effectiveness of anti-monopoly policy ..................... 2.9 ..........138 Effect of taxation on incentives to invest................. 3.5 ............87 Total tax rate, % profits* ....................................... 91.2 ..........142 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 199 2.1: Country/Economy Profiles Guyana Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.8 GDP (US$ billions) ............................................ 3.0 GDP per capita (US$) ................................... 3,729 GDP (PPP) as share (%) of world total ............ 0.01 Guyana 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 117 ..... 3.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 102 ......3.8 GCI 2012–2013 (out of 144) ................................... 109 ......3.7 GCI 2011–2012 (out of 142) ................................... 109 ......3.7 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .....................................118 ......3.8 7 Innovation Institutions ................................................................ 89 ......3.5 Infrastructure .......................................................... 110 ......2.9 Macroeconomic environment ................................. 118 ......3.9 Health and primary education ................................. 113 ......4.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) ...................................109 ......3.6 Market size Higher education and training ................................... 82 ......4.1 Goods market efficiency .......................................... 83 ......4.2 Labor market efficiency .......................................... 101 ......3.9 Financial market development .................................. 82 ......3.8 Technological readiness .......................................... 101 ......3.1 Market size ............................................................. 135 ......2.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........60 ......3.7 Business sophistication ........................................... 68 ......4.0 Innovation ................................................................. 55 ......3.4 Guyana Latin America and the Caribbean The most problematic factors for doing business Corruption .........................................................................24.5 Tax rates............................................................................15.0 Crime and theft .................................................................14.3 Inefficient government bureaucracy .....................................9.9 Access to financing .............................................................8.3 Government instability/coups ..............................................8.3 Inadequate supply of infrastructure ......................................6.1 Poor work ethic in national labor force ................................3.0 Foreign currency regulations ................................................2.3 Policy instability ...................................................................1.9 Inadequately educated workforce ........................................1.8 Restrictive labor regulations .................................................1.5 Inflation ................................................................................1.4 Insufficient capacity to innovate ...........................................0.7 Poor public health ...............................................................0.6 Tax regulations ....................................................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 200 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Guyana The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.8 ............94 Intellectual property protection ............................... 3.3 ............90 Diversion of public funds ........................................ 2.9 ............89 Public trust in politicians ......................................... 3.2 ............61 Irregular payments and bribes ................................ 3.1 ..........113 Judicial independence............................................ 3.4 ............87 Favoritism in decisions of government officials ....... 2.8 ............93 Wastefulness of government spending ................... 3.1 ............71 Burden of government regulation ........................... 3.6 ............54 Efficiency of legal framework in settling disputes .... 3.5 ............80 Efficiency of legal framework in challenging regs. ... 3.5 ............57 Transparency of government policymaking............. 3.8 ............89 Business costs of terrorism .................................... 4.9 ............91 Business costs of crime and violence..................... 3.7 ..........105 Organized crime ..................................................... 4.3 ............92 Reliability of police services .................................... 2.8 ..........131 Ethical behavior of firms ......................................... 3.6 ..........104 Strength of auditing and reporting standards ......... 3.9 ..........113 Efficacy of corporate boards .................................. 4.3 ............93 Protection of minority shareholders’ interests ......... 3.8 ............92 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.8 ............85 Quality of roads ...................................................... 3.2 ..........103 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 3.5 ............99 Quality of air transport infrastructure....................... 3.8 ............97 Available airline seat km/week, millions* ............... 13.2 ..........132 Quality of electricity supply ..................................... 2.7 ..........119 Mobile telephone subscriptions/100 pop.* ........... 69.4 ..........125 Fixed telephone lines/100 pop.* ........................... 19.6 ............57 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.1 ............94 Gross national savings, % GDP* ............................ 0.7 ..........139 Inflation, annual % change* .................................... 3.5 ............70 General government debt, % GDP* ..................... 63.9 ..........107 Country credit rating, 0–100 (best)* ...................... 27.8 ..........113 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 7,920.9 ............53 Business impact of malaria .................................... 4.9 ............35 Tuberculosis cases/100,000 pop.* ..................... 109.0 ............97 Business impact of tuberculosis ............................. 4.8 ............97 HIV prevalence, % adult pop.* ............................... 1.3 ..........114 Business impact of HIV/AIDS ................................. 4.7 ..........103 Infant mortality, deaths/1,000 live births* .............. 29.0 ..........101 Life expectancy, years*......................................... 66.0 ..........111 Quality of primary education ................................... 4.7 ............37 Primary education enrollment, net %* .................. 71.5 ..........133 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 101.0 ............31 Tertiary education enrollment, gross %*................ 12.9 ..........105 Quality of the education system ............................. 3.9 ............54 Quality of math and science education .................. 4.3 ............55 Quality of management schools ............................. 4.6 ............46 Internet access in schools ...................................... 4.2 ............71 Availability of research and training services ........... 4.0 ............76 Extent of staff training ............................................ 4.0 ............64 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 20.0 ............94 Agricultural policy costs.......................................... 3.8 ............76 Prevalence of trade barriers ................................... 4.3 ............74 Trade tariffs, % duty* ............................................ 11.8 ..........123 Prevalence of foreign ownership............................. 4.4 ............85 Business impact of rules on FDI ............................. 4.0 ..........103 Burden of customs procedures .............................. 3.7 ............85 Imports as a percentage of GDP* ........................ 88.4 ............14 Degree of customer orientation .............................. 3.9 ..........114 Buyer sophistication ............................................... 3.3 ............86 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............73 Flexibility of wage determination ............................. 5.0 ............70 Hiring and firing practices ....................................... 4.3 ............34 Redundancy costs, weeks of salary* .................... 16.7 ............80 Effect of taxation on incentives to work .................. 3.6 ............72 Pay and productivity............................................... 3.8 ............85 Reliance on professional management ................... 3.6 ..........108 Country capacity to retain talent............................. 4.0 ............39 Country capacity to attract talent ........................... 4.0 ............30 Women in labor force, ratio to men* ..................... 0.54 ..........123 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............88 Affordability of financial services ............................. 4.1 ............76 Financing through local equity market .................... 3.6 ............58 Ease of access to loans ......................................... 3.3 ............37 Venture capital availability ....................................... 3.3 ............34 Soundness of banks .............................................. 4.8 ............75 Regulation of securities exchanges ........................ 3.7 ............99 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.7 ............78 Firm-level technology absorption ............................ 4.4 ............80 FDI and technology transfer ................................... 4.2 ............98 Individuals using Internet, %* ............................... 33.0 ............93 Fixed broadband Internet subscriptions/100 pop.* ... 4.6 ............84 Int’l Internet bandwidth, kb/s per user* ................ 10.2 ............98 Mobile broadband subscriptions/100 pop.*............ 0.0 ..........133 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.8 ..........135 Foreign market size index, 1–7 (best)* .................... 3.1 ..........128 GDP (PPP$ billions)* .............................................. 6.6 ..........138 Exports as a percentage of GDP* ........................ 59.3 ............34 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............57 Local supplier quality.............................................. 4.6 ............55 State of cluster development.................................. 3.9 ............62 Nature of competitive advantage ............................ 3.4 ............72 Value chain breadth................................................ 3.9 ............67 Control of international distribution ......................... 4.0 ............74 Production process sophistication.......................... 3.8 ............70 Extent of marketing ................................................ 3.9 ............97 Willingness to delegate authority ............................ 3.7 ............70 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.8 ............61 Quality of scientific research institutions ................. 3.8 ............68 Company spending on R&D................................... 3.7 ............33 University-industry collaboration in R&D ................. 3.8 ............58 Gov’t procurement of advanced tech products ...... 3.8 ............39 Availability of scientists and engineers .................... 4.1 ............65 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.7 ..........102 Extent of market dominance .................................. 3.8 ............62 Effectiveness of anti-monopoly policy ..................... 3.9 ............76 Effect of taxation on incentives to invest................. 3.8 ............63 Total tax rate, % profits* ....................................... 32.5 ............48 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 201 2.1: Country/Economy Profiles Haiti Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 10.3 GDP (US$ billions) ............................................ 8.5 GDP per capita (US$) ...................................... 820 GDP (PPP) as share (%) of world total ............ 0.02 Haiti 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 137 ..... 3.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 143 ......3.1 GCI 2012–2013 (out of 144) ................................... 142 ......2.9 GCI 2011–2012 (out of 142) ................................... 141 ......2.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................136 ......3.2 Innovation Institutions .............................................................. 135 ......2.8 Infrastructure .......................................................... 138 ......2.0 Macroeconomic environment ................................. 120 ......3.9 Health and primary education ................................. 126 ......4.2 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................135 ......3.1 Market size Higher education and training ................................. 109 ......3.4 Goods market efficiency ........................................ 140 ......3.2 Labor market efficiency ............................................ 77 ......4.1 Financial market development ................................ 135 ......2.8 Technological readiness .......................................... 134 ......2.4 Market size ............................................................. 129 ......2.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........140 ......2.6 Business sophistication ......................................... 138 ......2.9 Innovation ............................................................... 140 ......2.3 Haiti Latin America and the Caribbean The most problematic factors for doing business Inadequate supply of infrastructure ....................................16.7 Access to financing ...........................................................14.9 Corruption .........................................................................13.9 Inadequately educated workforce ......................................13.0 Government instability/coups ..............................................8.1 Inefficient government bureaucracy .....................................6.9 Policy instability ...................................................................6.7 Tax rates..............................................................................3.9 Crime and theft ...................................................................3.7 Poor work ethic in national labor force ................................3.5 Insufficient capacity to innovate ...........................................2.4 Poor public health ...............................................................2.0 Inflation ................................................................................1.4 Tax regulations ....................................................................1.4 Foreign currency regulations ................................................0.8 Restrictive labor regulations .................................................0.8 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 202 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Haiti The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.3 ..........143 Intellectual property protection ............................... 2.2 ..........142 Diversion of public funds ........................................ 2.4 ..........120 Public trust in politicians ......................................... 2.0 ..........126 Irregular payments and bribes ................................ 2.8 ..........126 Judicial independence............................................ 2.1 ..........135 Favoritism in decisions of government officials ....... 2.5 ..........113 Wastefulness of government spending ................... 2.5 ..........108 Burden of government regulation ........................... 3.2 ............92 Efficiency of legal framework in settling disputes .... 2.4 ..........139 Efficiency of legal framework in challenging regs. ... 2.2 ..........137 Transparency of government policymaking............. 2.7 ..........141 Business costs of terrorism .................................... 5.3 ............70 Business costs of crime and violence..................... 3.0 ..........128 Organized crime ..................................................... 3.9 ..........120 Reliability of police services .................................... 3.0 ..........120 Ethical behavior of firms ......................................... 3.1 ..........136 Strength of auditing and reporting standards ......... 3.6 ..........128 Efficacy of corporate boards .................................. 3.8 ..........131 Protection of minority shareholders’ interests ......... 2.9 ..........136 Strength of investor protection, 0–10 (best)* .......... 3.0 ..........130 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.2 ..........142 Quality of roads ...................................................... 2.4 ..........136 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.5 ..........133 Quality of air transport infrastructure....................... 2.8 ..........130 Available airline seat km/week, millions* ............... 25.9 ..........117 Quality of electricity supply ..................................... 1.9 ..........135 Mobile telephone subscriptions/100 pop.* ........... 69.4 ..........126 Fixed telephone lines/100 pop.* ............................. 0.4 ..........134 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –6.7 ..........126 Gross national savings, % GDP* .......................... 23.6 ............49 Inflation, annual % change* .................................... 6.8 ..........116 General government debt, % GDP* ..................... 21.3 ............20 Country credit rating, 0–100 (best)* ...................... 12.1 ..........141 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 1,277.8 ............43 Business impact of malaria .................................... 4.1 ............51 Tuberculosis cases/100,000 pop.* ..................... 213.0 ..........120 Business impact of tuberculosis ............................. 4.2 ..........122 HIV prevalence, % adult pop.* ............................... 2.1 ..........124 Business impact of HIV/AIDS ................................. 4.3 ..........115 Infant mortality, deaths/1,000 live births* .............. 56.5 ..........130 Life expectancy, years*......................................... 62.7 ..........120 Quality of primary education ................................... 2.7 ..........122 Primary education enrollment, net %* .................. 77.2 ..........128 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 68.1 ..........107 Tertiary education enrollment, gross %*.................. n/a ...........n/a Quality of the education system ............................. 2.3 ..........138 Quality of math and science education .................. 2.9 ..........124 Quality of management schools ............................. 3.1 ..........130 Internet access in schools ...................................... 2.6 ..........129 Availability of research and training services ........... 2.7 ..........140 Extent of staff training ............................................ 3.2 ..........130 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 12 ..........131 No. days to start a business* ............................... 97.0 ..........140 Agricultural policy costs.......................................... 2.8 ..........137 Prevalence of trade barriers ................................... 4.0 ..........112 Trade tariffs, % duty* .............................................. 5.8 ............74 Prevalence of foreign ownership............................. 3.0 ..........136 Business impact of rules on FDI ............................. 3.5 ..........126 Burden of customs procedures .............................. 2.3 ..........140 Imports as a percentage of GDP* ........................ 49.5 ............67 Degree of customer orientation .............................. 2.9 ..........141 Buyer sophistication ............................................... 2.5 ..........134 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.8 ..........116 Flexibility of wage determination ............................. 5.1 ............62 Hiring and firing practices ....................................... 4.0 ............59 Redundancy costs, weeks of salary* .................... 10.1 ............38 Effect of taxation on incentives to work .................. 3.4 ............90 Pay and productivity............................................... 3.3 ..........119 Reliance on professional management ................... 3.2 ..........131 Country capacity to retain talent............................. 2.2 ..........135 Country capacity to attract talent ........................... 2.7 ..........109 Women in labor force, ratio to men* ..................... 0.87 ............40 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.0 ..........134 Affordability of financial services ............................. 2.9 ..........137 Financing through local equity market .................... 2.3 ..........123 Ease of access to loans ......................................... 2.3 ..........112 Venture capital availability ....................................... 2.0 ..........124 Soundness of banks .............................................. 4.2 ..........105 Regulation of securities exchanges ........................ 2.3 ..........134 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.6 ..........132 Firm-level technology absorption ............................ 3.5 ..........135 FDI and technology transfer ................................... 3.6 ..........131 Individuals using Internet, %* ............................... 10.6 ..........123 Fixed broadband Internet subscriptions/100 pop.* ... 0.0 ..........143 Int’l Internet bandwidth, kb/s per user* .................. 0.2 ..........144 Mobile broadband subscriptions/100 pop.*............ 0.0 ..........133 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.4 ..........126 Foreign market size index, 1–7 (best)* .................... 2.6 ..........139 GDP (PPP$ billions)* ............................................ 13.6 ..........126 Exports as a percentage of GDP* ........................ 12.8 ..........139 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.5 ..........139 Local supplier quality.............................................. 3.4 ..........133 State of cluster development.................................. 2.6 ..........142 Nature of competitive advantage ............................ 2.6 ..........130 Value chain breadth................................................ 2.9 ..........139 Control of international distribution ......................... 3.5 ..........120 Production process sophistication.......................... 2.4 ..........139 Extent of marketing ................................................ 2.9 ..........137 Willingness to delegate authority ............................ 2.6 ..........139 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.9 ..........136 Quality of scientific research institutions ................. 2.2 ..........140 Company spending on R&D................................... 2.2 ..........139 University-industry collaboration in R&D ................. 2.3 ..........136 Gov’t procurement of advanced tech products ...... 2.6 ..........132 Availability of scientists and engineers .................... 2.9 ..........138 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.8 ..........140 Extent of market dominance .................................. 2.6 ..........140 Effectiveness of anti-monopoly policy ..................... 2.7 ..........140 Effect of taxation on incentives to invest................. 3.6 ............80 Total tax rate, % profits* ....................................... 40.4 ............79 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 203 2.1: Country/Economy Profiles Honduras Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 8.1 GDP (US$ billions) .......................................... 18.8 GDP per capita (US$) ................................... 2,323 GDP (PPP) as share (%) of world total ............ 0.05 Honduras 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 100 ..... 3.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 111 ......3.7 GCI 2012–2013 (out of 144) ..................................... 90 ......3.9 GCI 2011–2012 (out of 142) ..................................... 86 ......4.0 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (53.5%) .....................................107 ......4.0 7 Innovation Institutions .............................................................. 105 ......3.4 Infrastructure .......................................................... 102 ......3.2 Macroeconomic environment ................................. 123 ......3.8 Health and primary education ................................... 85 ......5.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (39.8%) .....................................99 ......3.6 Market size Higher education and training ................................. 100 ......3.6 Goods market efficiency .......................................... 91 ......4.2 Labor market efficiency .......................................... 130 ......3.5 Financial market development .................................. 59 ......4.2 Technological readiness ............................................ 97 ......3.2 Market size ............................................................... 93 ......3.2 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (6.6%) .............70 ......3.6 Business sophistication ........................................... 64 ......4.0 Innovation ................................................................. 74 ......3.2 Honduras Latin America and the Caribbean The most problematic factors for doing business Corruption .........................................................................17.7 Crime and theft .................................................................16.5 Inefficient government bureaucracy ...................................15.4 Access to financing ...........................................................10.4 Tax rates..............................................................................9.6 Tax regulations ....................................................................8.2 Restrictive labor regulations .................................................4.7 Inadequate supply of infrastructure ......................................3.5 Inflation ................................................................................3.2 Inadequately educated workforce ........................................2.7 Policy instability ...................................................................2.3 Poor public health ...............................................................2.0 Poor work ethic in national labor force ................................2.0 Insufficient capacity to innovate ...........................................0.8 Government instability/coups ..............................................0.6 Foreign currency regulations ................................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 204 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Honduras The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.7 ............98 Intellectual property protection ............................... 3.5 ............79 Diversion of public funds ........................................ 2.5 ..........117 Public trust in politicians ......................................... 2.4 ..........100 Irregular payments and bribes ................................ 3.5 ............90 Judicial independence............................................ 2.8 ..........114 Favoritism in decisions of government officials ....... 2.8 ............90 Wastefulness of government spending ................... 2.3 ..........127 Burden of government regulation ........................... 3.4 ............77 Efficiency of legal framework in settling disputes .... 3.6 ............76 Efficiency of legal framework in challenging regs. ... 3.5 ............61 Transparency of government policymaking............. 4.1 ............61 Business costs of terrorism .................................... 4.7 ..........102 Business costs of crime and violence..................... 2.4 ..........140 Organized crime ..................................................... 2.7 ..........142 Reliability of police services .................................... 3.2 ..........115 Ethical behavior of firms ......................................... 3.8 ............86 Strength of auditing and reporting standards ......... 4.9 ............57 Efficacy of corporate boards .................................. 4.9 ............43 Protection of minority shareholders’ interests ......... 4.0 ............80 Strength of investor protection, 0–10 (best)* .......... 3.0 ..........130 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.5 ..........106 Quality of roads ...................................................... 3.3 ............96 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.1 ............71 Quality of air transport infrastructure....................... 3.9 ............93 Available airline seat km/week, millions* ............... 25.3 ..........118 Quality of electricity supply ..................................... 3.6 ............98 Mobile telephone subscriptions/100 pop.* ........... 95.9 ..........100 Fixed telephone lines/100 pop.* ............................. 7.6 ..........101 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –7.4 ..........131 Gross national savings, % GDP* .......................... 15.7 ..........101 Inflation, annual % change* .................................... 5.2 ............92 General government debt, % GDP* ..................... 40.2 ............63 Country credit rating, 0–100 (best)* ...................... 29.7 ..........110 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................. 163.8 ............36 Business impact of malaria .................................... 5.4 ............26 Tuberculosis cases/100,000 pop.* ....................... 54.0 ............76 Business impact of tuberculosis ............................. 5.4 ............78 HIV prevalence, % adult pop.* ............................... 0.5 ............88 Business impact of HIV/AIDS ................................. 5.0 ............85 Infant mortality, deaths/1,000 live births* .............. 19.4 ............91 Life expectancy, years*......................................... 73.5 ............80 Quality of primary education ................................... 2.9 ..........116 Primary education enrollment, net %* .................. 94.0 ............69 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 73.1 ..........101 Tertiary education enrollment, gross %*................ 20.4 ............92 Quality of the education system ............................. 3.2 ..........100 Quality of math and science education .................. 2.9 ..........121 Quality of management schools ............................. 3.6 ..........111 Internet access in schools ...................................... 3.5 ..........105 Availability of research and training services ........... 4.0 ............80 Extent of staff training ............................................ 4.4 ............38 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 13 ..........135 No. days to start a business* ............................... 14.0 ............69 Agricultural policy costs.......................................... 3.9 ............54 Prevalence of trade barriers ................................... 4.0 ..........118 Trade tariffs, % duty* .............................................. 4.6 ............62 Prevalence of foreign ownership............................. 4.7 ............62 Business impact of rules on FDI ............................. 3.7 ..........117 Burden of customs procedures .............................. 3.5 ..........103 Imports as a percentage of GDP* ........................ 67.4 ............35 Degree of customer orientation .............................. 4.5 ............75 Buyer sophistication ............................................... 3.2 ............90 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.7 ............41 Flexibility of wage determination ............................. 4.7 ............97 Hiring and firing practices ....................................... 3.9 ............74 Redundancy costs, weeks of salary* .................... 30.3 ..........129 Effect of taxation on incentives to work .................. 2.8 ..........129 Pay and productivity............................................... 3.8 ............80 Reliance on professional management ................... 4.1 ............80 Country capacity to retain talent............................. 3.4 ............76 Country capacity to attract talent ........................... 3.1 ............90 Women in labor force, ratio to men* ..................... 0.52 ..........125 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.1 ............41 Affordability of financial services ............................. 4.2 ............58 Financing through local equity market .................... 2.5 ..........115 Ease of access to loans ......................................... 2.9 ............62 Venture capital availability ....................................... 2.8 ............56 Soundness of banks .............................................. 5.7 ............34 Regulation of securities exchanges ........................ 3.0 ..........123 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.8 ............72 Firm-level technology absorption ............................ 4.8 ............60 FDI and technology transfer ................................... 4.9 ............42 Individuals using Internet, %* ............................... 17.8 ..........106 Fixed broadband Internet subscriptions/100 pop.* ... 0.8 ..........108 Int’l Internet bandwidth, kb/s per user* ................ 10.0 ..........101 Mobile broadband subscriptions/100 pop.*.......... 11.7 ............95 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.0 ............93 Foreign market size index, 1–7 (best)* .................... 4.0 ............91 GDP (PPP$ billions)* ............................................ 39.2 ............97 Exports as a percentage of GDP* ........................ 46.9 ............52 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............83 Local supplier quality.............................................. 4.4 ............69 State of cluster development.................................. 4.1 ............48 Nature of competitive advantage ............................ 3.3 ............81 Value chain breadth................................................ 3.9 ............62 Control of international distribution ......................... 4.0 ............77 Production process sophistication.......................... 3.9 ............65 Extent of marketing ................................................ 4.2 ............71 Willingness to delegate authority ............................ 3.7 ............72 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............52 Quality of scientific research institutions ................. 3.3 ............97 Company spending on R&D................................... 3.2 ............59 University-industry collaboration in R&D ................. 3.9 ............48 Gov’t procurement of advanced tech products ...... 3.5 ............68 Availability of scientists and engineers .................... 3.6 ..........100 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.8 ............88 Extent of market dominance .................................. 3.6 ............83 Effectiveness of anti-monopoly policy ..................... 3.9 ............81 Effect of taxation on incentives to invest................. 2.9 ..........131 Total tax rate, % profits* ....................................... 39.2 ............74 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 205 2.1: Country/Economy Profiles Hong Kong SAR Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 7.2 GDP (US$ billions) ........................................ 273.7 GDP per capita (US$) ................................. 37,777 GDP (PPP) as share (%) of world total ............ 0.44 Hong Kong SAR 60,000 Advanced economies 50,000 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ........................................................ 7 ..... 5.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ....................................... 7 ......5.5 GCI 2012–2013 (out of 144) ....................................... 9 ......5.4 GCI 2011–2012 (out of 142) ..................................... 11 ......5.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .........................................3 ......6.2 7 Innovation Institutions .................................................................. 8 ......5.6 Infrastructure .............................................................. 1 ......6.7 Macroeconomic environment ................................... 14 ......6.2 Health and primary education ................................... 32 ......6.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .......................................3 ......5.6 Market size Higher education and training ................................... 22 ......5.4 Goods market efficiency ............................................ 2 ......5.6 Labor market efficiency .............................................. 3 ......5.6 Financial market development .................................... 1 ......5.9 Technological readiness .............................................. 5 ......6.1 Market size ............................................................... 27 ......4.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........23 ......4.8 Business sophistication ........................................... 16 ......5.1 Innovation ................................................................. 26 ......4.4 Hong Kong SAR Advanced economies The most problematic factors for doing business Insufficient capacity to innovate .........................................17.7 Inefficient government bureaucracy ...................................14.5 Inflation ..............................................................................11.7 Restrictive labor regulations ...............................................11.4 Inadequately educated workforce ........................................9.9 Policy instability ...................................................................9.8 Inadequate supply of infrastructure ......................................6.5 Access to financing .............................................................4.4 Poor work ethic in national labor force ................................3.5 Foreign currency regulations ................................................2.5 Government instability/coups ..............................................2.0 Tax rates..............................................................................2.0 Corruption ...........................................................................1.8 Tax regulations ....................................................................1.2 Poor public health ...............................................................1.1 Crime and theft ...................................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 206 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Hong Kong SAR The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.1 ..............6 Intellectual property protection ............................... 5.8 ............10 Diversion of public funds ........................................ 5.8 ............10 Public trust in politicians ......................................... 4.6 ............18 Irregular payments and bribes ................................ 6.2 ............12 Judicial independence............................................ 6.3 ..............5 Favoritism in decisions of government officials ....... 4.3 ............19 Wastefulness of government spending ................... 4.5 ............14 Burden of government regulation ........................... 5.0 ..............5 Efficiency of legal framework in settling disputes .... 5.9 ..............3 Efficiency of legal framework in challenging regs. ... 5.4 ..............3 Transparency of government policymaking............. 5.8 ..............4 Business costs of terrorism .................................... 5.7 ............49 Business costs of crime and violence..................... 5.7 ............12 Organized crime ..................................................... 5.8 ............25 Reliability of police services .................................... 6.2 ..............6 Ethical behavior of firms ......................................... 5.5 ............18 Strength of auditing and reporting standards ......... 6.2 ..............7 Efficacy of corporate boards .................................. 5.4 ............20 Protection of minority shareholders’ interests ......... 5.5 ..............8 Strength of investor protection, 0–10 (best)* .......... 9.0 ..............3 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.5 ..............2 Quality of roads ...................................................... 6.0 ..............7 Quality of railroad infrastructure .............................. 6.3 ..............3 Quality of port infrastructure ................................... 6.5 ..............4 Quality of air transport infrastructure....................... 6.6 ..............3 Available airline seat km/week, millions* .......... 2,533.4 ............16 Quality of electricity supply ..................................... 6.8 ..............2 Mobile telephone subscriptions/100 pop.* ......... 238.7 ..............1 Fixed telephone lines/100 pop.* ........................... 63.0 ..............2 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.8 ............16 Gross national savings, % GDP* .......................... 26.7 ............34 Inflation, annual % change* .................................... 4.3 ............86 General government debt, % GDP* ..................... 33.8 ............48 Country credit rating, 0–100 (best)* ...................... 83.8 ............17 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 77.0 ............85 Business impact of tuberculosis ............................. 6.0 ............50 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 5.8 ............58 Infant mortality, deaths/1,000 live births* ................ 1.6 ..............1 Life expectancy, years*......................................... 83.5 ..............1 Quality of primary education ................................... 4.9 ............28 Primary education enrollment, net %* .................. 93.5 ............75 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 88.7 ............73 Tertiary education enrollment, gross %*................ 59.7 ............43 Quality of the education system ............................. 4.8 ............20 Quality of math and science education .................. 5.4 ..............9 Quality of management schools ............................. 5.4 ............14 Internet access in schools ...................................... 6.0 ............16 Availability of research and training services ........... 5.4 ............16 Extent of staff training ............................................ 4.6 ............26 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ................................. 2.5 ..............5 Agricultural policy costs.......................................... 4.0 ............47 Prevalence of trade barriers ................................... 5.5 ..............1 Trade tariffs, % duty* .............................................. 0.0 ..............1 Prevalence of foreign ownership............................. 6.1 ..............5 Business impact of rules on FDI ............................. 6.2 ..............3 Burden of customs procedures .............................. 6.1 ..............2 Imports as a percentage of GDP* ...................... 249.1 ..............1 Degree of customer orientation .............................. 5.7 ..............7 Buyer sophistication ............................................... 4.6 ..............7 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.5 ..............9 Flexibility of wage determination ............................. 6.1 ..............4 Hiring and firing practices ....................................... 5.7 ..............1 Redundancy costs, weeks of salary* ...................... 5.8 ............16 Effect of taxation on incentives to work .................. 5.9 ..............5 Pay and productivity............................................... 5.5 ..............1 Reliance on professional management ................... 5.2 ............27 Country capacity to retain talent............................. 5.3 ..............7 Country capacity to attract talent ........................... 5.6 ..............7 Women in labor force, ratio to men* ..................... 0.77 ............83 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.2 ..............3 Affordability of financial services ............................. 6.0 ..............4 Financing through local equity market .................... 5.7 ..............1 Ease of access to loans ......................................... 4.5 ..............5 Venture capital availability ....................................... 4.3 ..............5 Soundness of banks .............................................. 6.5 ..............7 Regulation of securities exchanges ........................ 6.0 ..............3 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.1 ............18 Firm-level technology absorption ............................ 5.6 ............19 FDI and technology transfer ................................... 5.1 ............23 Individuals using Internet, %* ............................... 74.2 ............30 Fixed broadband Internet subscriptions/100 pop.* . 30.8 ............16 Int’l Internet bandwidth, kb/s per user* ........... 1,762.8 ..............2 Mobile broadband subscriptions/100 pop.*.......... 95.4 ..............9 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.4 ............33 Foreign market size index, 1–7 (best)* .................... 6.2 ..............5 GDP (PPP$ billions)* .......................................... 381.9 ............35 Exports as a percentage of GDP* ...................... 245.0 ..............1 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.4 ............12 Local supplier quality.............................................. 5.4 ............18 State of cluster development.................................. 5.0 ............15 Nature of competitive advantage ............................ 5.3 ............17 Value chain breadth................................................ 5.0 ............17 Control of international distribution ......................... 4.8 ............13 Production process sophistication.......................... 5.2 ............22 Extent of marketing ................................................ 5.5 ............12 Willingness to delegate authority ............................ 4.5 ............26 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.5 ............32 Quality of scientific research institutions ................. 4.8 ............32 Company spending on R&D................................... 3.9 ............26 University-industry collaboration in R&D ................. 4.6 ............28 Gov’t procurement of advanced tech products ...... 4.0 ............30 Availability of scientists and engineers .................... 4.5 ............36 PCT patents, applications/million pop.* ................ n/a1 ...........n/a 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 6.1 ..............4 Extent of market dominance .................................. 4.4 ............27 Effectiveness of anti-monopoly policy ..................... 4.3 ............50 Effect of taxation on incentives to invest................. 5.7 ..............6 Total tax rate, % profits* ....................................... 22.9 ............18 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. 1 See the “Technical Notes and Sources” section. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 207 2.1: Country/Economy Profiles Hungary Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 9.9 GDP (US$ billions) ........................................ 132.4 GDP per capita (US$) ................................. 13,405 GDP (PPP) as share (%) of world total ............ 0.23 Hungary 25,000 Emerging and Developing Europe 20,000 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 60 ..... 4.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 63 ......4.2 GCI 2012–2013 (out of 144) ..................................... 60 ......4.3 GCI 2011–2012 (out of 142) ..................................... 48 ......4.4 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (29.0%) .......................................60 ......4.7 7 Innovation Institutions ................................................................ 83 ......3.7 Infrastructure ............................................................ 50 ......4.6 Macroeconomic environment ................................... 61 ......4.8 Health and primary education ................................... 64 ......5.8 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................53 ......4.3 Market size Higher education and training ................................... 52 ......4.7 Goods market efficiency .......................................... 65 ......4.4 Labor market efficiency ............................................ 75 ......4.2 Financial market development .................................. 73 ......3.9 Technological readiness ............................................ 50 ......4.4 Market size ............................................................... 53 ......4.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (21.0%) ...........67 ......3.6 Business sophistication ........................................... 92 ......3.8 Innovation ................................................................. 50 ......3.5 Hungary Emerging and Developing Europe The most problematic factors for doing business Policy instability .................................................................15.1 Access to financing ...........................................................13.5 Corruption .........................................................................13.0 Tax regulations ..................................................................11.0 Inefficient government bureaucracy ...................................10.3 Tax rates............................................................................10.1 Inadequately educated workforce ........................................6.9 Poor work ethic in national labor force ................................5.8 Insufficient capacity to innovate ...........................................4.3 Inadequate supply of infrastructure ......................................3.0 Government instability/coups ..............................................2.4 Crime and theft ...................................................................1.5 Foreign currency regulations ................................................1.2 Restrictive labor regulations .................................................1.0 Poor public health ...............................................................0.8 Inflation ................................................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 208 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Hungary The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.7 ............96 Intellectual property protection ............................... 3.7 ............71 Diversion of public funds ........................................ 2.6 ..........110 Public trust in politicians ......................................... 2.2 ..........113 Irregular payments and bribes ................................ 4.2 ............56 Judicial independence............................................ 4.0 ............56 Favoritism in decisions of government officials ....... 2.4 ..........122 Wastefulness of government spending ................... 2.6 ............96 Burden of government regulation ........................... 2.6 ..........129 Efficiency of legal framework in settling disputes .... 3.3 ..........104 Efficiency of legal framework in challenging regs. ... 2.5 ..........121 Transparency of government policymaking............. 3.4 ..........119 Business costs of terrorism .................................... 6.2 ............13 Business costs of crime and violence..................... 4.8 ............56 Organized crime ..................................................... 4.9 ............63 Reliability of police services .................................... 4.1 ............66 Ethical behavior of firms ......................................... 3.7 ............96 Strength of auditing and reporting standards ......... 5.2 ............37 Efficacy of corporate boards .................................. 3.9 ..........120 Protection of minority shareholders’ interests ......... 4.1 ............72 Strength of investor protection, 0–10 (best)* .......... 4.3 ..........105 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.0 ............41 Quality of roads ...................................................... 4.2 ............58 Quality of railroad infrastructure .............................. 3.8 ............38 Quality of port infrastructure ................................... 3.8 ............85 Quality of air transport infrastructure....................... 4.1 ............81 Available airline seat km/week, millions* ............. 127.8 ............75 Quality of electricity supply ..................................... 5.9 ............36 Mobile telephone subscriptions/100 pop.* ......... 116.4 ............61 Fixed telephone lines/100 pop.* ........................... 29.9 ............37 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.4 ............59 Gross national savings, % GDP* .......................... 20.7 ............63 Inflation, annual % change* .................................... 1.7 ..............1 General government debt, % GDP* ..................... 79.2 ..........120 Country credit rating, 0–100 (best)* ...................... 52.1 ............68 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 18.0 ............41 Business impact of tuberculosis ............................. 6.4 ............32 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.5 ............17 Infant mortality, deaths/1,000 live births* ................ 5.3 ............35 Life expectancy, years*......................................... 75.1 ............57 Quality of primary education ................................... 4.2 ............61 Primary education enrollment, net %* .................. 91.3 ............95 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 101.6 ............27 Tertiary education enrollment, gross %*................ 59.6 ............44 Quality of the education system ............................. 3.3 ............96 Quality of math and science education .................. 4.3 ............60 Quality of management schools ............................. 4.3 ............66 Internet access in schools ...................................... 5.4 ............35 Availability of research and training services ........... 3.9 ............85 Extent of staff training ............................................ 3.6 ..........108 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ................................. 5.0 ............14 Agricultural policy costs.......................................... 3.6 ............89 Prevalence of trade barriers ................................... 4.7 ............30 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.5 ............15 Business impact of rules on FDI ............................. 4.3 ............84 Burden of customs procedures .............................. 4.8 ............31 Imports as a percentage of GDP* ........................ 87.8 ............15 Degree of customer orientation .............................. 4.4 ............85 Buyer sophistication ............................................... 2.7 ..........124 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............71 Flexibility of wage determination ............................. 5.1 ............64 Hiring and firing practices ....................................... 4.2 ............43 Redundancy costs, weeks of salary* .................... 13.4 ............61 Effect of taxation on incentives to work .................. 2.8 ..........128 Pay and productivity............................................... 4.0 ............64 Reliance on professional management ................... 3.5 ..........114 Country capacity to retain talent............................. 2.6 ..........122 Country capacity to attract talent ........................... 2.6 ..........118 Women in labor force, ratio to men* ..................... 0.83 ............63 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.5 ............62 Affordability of financial services ............................. 3.8 ............98 Financing through local equity market .................... 2.8 ..........106 Ease of access to loans ......................................... 2.0 ..........126 Venture capital availability ....................................... 2.1 ..........121 Soundness of banks .............................................. 4.8 ............73 Regulation of securities exchanges ........................ 4.4 ............54 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.3 ............44 Firm-level technology absorption ............................ 4.7 ............65 FDI and technology transfer ................................... 5.1 ............19 Individuals using Internet, %* ............................... 72.6 ............35 Fixed broadband Internet subscriptions/100 pop.* . 24.1 ............31 Int’l Internet bandwidth, kb/s per user* ................ 24.9 ............75 Mobile broadband subscriptions/100 pop.*.......... 26.3 ............70 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.9 ............56 Foreign market size index, 1–7 (best)* .................... 5.3 ............33 GDP (PPP$ billions)* .......................................... 198.2 ............55 Exports as a percentage of GDP* ........................ 97.6 ..............8 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.4 ............95 Local supplier quality.............................................. 4.4 ............68 State of cluster development.................................. 3.5 ............91 Nature of competitive advantage ............................ 3.3 ............79 Value chain breadth................................................ 3.5 ..........100 Control of international distribution ......................... 3.7 ..........104 Production process sophistication.......................... 3.9 ............64 Extent of marketing ................................................ 4.2 ............72 Willingness to delegate authority ............................ 3.0 ..........133 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.0 ..........127 Quality of scientific research institutions ................. 5.1 ............23 Company spending on R&D................................... 2.9 ............96 University-industry collaboration in R&D ................. 4.3 ............35 Gov’t procurement of advanced tech products ...... 3.2 ............95 Availability of scientists and engineers .................... 4.2 ............56 PCT patents, applications/million pop.* ................ 25.0 ............29 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.3 ............47 Extent of market dominance .................................. 3.5 ............88 Effectiveness of anti-monopoly policy ..................... 3.9 ............80 Effect of taxation on incentives to invest................. 2.8 ..........133 Total tax rate, % profits* ....................................... 49.7 ..........114 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 209 2.1: Country/Economy Profiles Iceland Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.3 GDP (US$ billions) .......................................... 14.7 GDP per capita (US$) ................................. 45,536 GDP (PPP) as share (%) of world total ............ 0.02 Iceland 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 30 ..... 4.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 31 ......4.7 GCI 2012–2013 (out of 144) ..................................... 30 ......4.7 GCI 2011–2012 (out of 142) ..................................... 30 ......4.7 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................27 ......5.4 7 Innovation Institutions ................................................................ 21 ......5.1 Infrastructure ............................................................ 23 ......5.5 Macroeconomic environment ................................... 92 ......4.4 Health and primary education ................................... 10 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................35 ......4.6 Market size Higher education and training ................................... 13 ......5.6 Goods market efficiency .......................................... 49 ......4.5 Labor market efficiency ............................................ 14 ......4.9 Financial market development .................................. 68 ......4.0 Technological readiness .............................................. 8 ......6.0 Market size ............................................................. 128 ......2.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........28 ......4.4 Business sophistication ........................................... 29 ......4.7 Innovation ................................................................. 27 ......4.2 Iceland Advanced economies The most problematic factors for doing business Foreign currency regulations ..............................................27.0 Access to financing ...........................................................16.0 Inflation ..............................................................................14.9 Tax rates..............................................................................9.4 Inefficient government bureaucracy .....................................6.9 Policy instability ...................................................................5.2 Tax regulations ....................................................................4.6 Government instability/coups ..............................................4.4 Insufficient capacity to innovate ...........................................4.2 Inadequately educated workforce ........................................2.0 Restrictive labor regulations .................................................1.8 Inadequate supply of infrastructure ......................................1.8 Poor work ethic in national labor force ................................0.9 Corruption ...........................................................................0.8 Crime and theft ...................................................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 210 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Iceland The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.3 ............27 Intellectual property protection ............................... 4.8 ............30 Diversion of public funds ........................................ 5.1 ............22 Public trust in politicians ......................................... 4.0 ............27 Irregular payments and bribes ................................ 6.3 ..............8 Judicial independence............................................ 5.5 ............23 Favoritism in decisions of government officials ....... 3.7 ............35 Wastefulness of government spending ................... 3.8 ............35 Burden of government regulation ........................... 3.8 ............41 Efficiency of legal framework in settling disputes .... 4.9 ............25 Efficiency of legal framework in challenging regs. ... 4.5 ............17 Transparency of government policymaking............. 4.7 ............23 Business costs of terrorism .................................... 6.5 ..............3 Business costs of crime and violence..................... 6.1 ..............7 Organized crime ..................................................... 6.5 ..............6 Reliability of police services .................................... 6.1 ............10 Ethical behavior of firms ......................................... 5.5 ............21 Strength of auditing and reporting standards ......... 5.2 ............42 Efficacy of corporate boards .................................. 5.1 ............32 Protection of minority shareholders’ interests ......... 4.4 ............46 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.2 ..............8 Quality of roads ...................................................... 4.9 ............39 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 5.9 ..............8 Quality of air transport infrastructure....................... 5.8 ............18 Available airline seat km/week, millions* ............. 123.8 ............78 Quality of electricity supply ..................................... 6.6 ..............8 Mobile telephone subscriptions/100 pop.* ......... 108.1 ............77 Fixed telephone lines/100 pop.* ........................... 51.0 ............10 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.9 ............51 Gross national savings, % GDP* .......................... 14.1 ..........112 Inflation, annual % change* .................................... 3.9 ............77 General government debt, % GDP* ..................... 90.2 ..........127 Country credit rating, 0–100 (best)* ...................... 52.9 ............65 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 3.5 ..............4 Business impact of tuberculosis ............................. 6.8 ..............7 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 6.6 ............13 Infant mortality, deaths/1,000 live births* ................ 1.8 ..............3 Life expectancy, years*......................................... 82.9 ..............4 Quality of primary education ................................... 5.1 ............20 Primary education enrollment, net %* .................. 98.5 ............20 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 108.6 ............12 Tertiary education enrollment, gross %*................ 80.9 ............11 Quality of the education system ............................. 4.9 ............17 Quality of math and science education .................. 4.7 ............33 Quality of management schools ............................. 5.2 ............20 Internet access in schools ...................................... 6.7 ..............1 Availability of research and training services ........... 4.6 ............39 Extent of staff training ............................................ 4.7 ............25 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 4.5 ............12 Agricultural policy costs.......................................... 3.0 ..........127 Prevalence of trade barriers ................................... 3.8 ..........129 Trade tariffs, % duty* .............................................. 3.2 ............46 Prevalence of foreign ownership............................. 3.3 ..........129 Business impact of rules on FDI ............................. 2.9 ..........137 Burden of customs procedures .............................. 5.3 ............14 Imports as a percentage of GDP* ........................ 52.2 ............59 Degree of customer orientation .............................. 5.3 ............22 Buyer sophistication ............................................... 3.8 ............41 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.4 ............11 Flexibility of wage determination ............................. 4.1 ..........120 Hiring and firing practices ....................................... 5.3 ..............4 Redundancy costs, weeks of salary* .................... 10.1 ............38 Effect of taxation on incentives to work .................. 3.3 ............99 Pay and productivity............................................... 4.2 ............49 Reliance on professional management ................... 5.3 ............25 Country capacity to retain talent............................. 4.4 ............26 Country capacity to attract talent ........................... 3.4 ............70 Women in labor force, ratio to men* ..................... 0.95 ............11 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.4 ............67 Affordability of financial services ............................. 4.2 ............65 Financing through local equity market .................... 3.7 ............51 Ease of access to loans ......................................... 2.8 ............74 Venture capital availability ....................................... 2.8 ............58 Soundness of banks .............................................. 4.0 ..........121 Regulation of securities exchanges ........................ 4.3 ............61 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.4 ..............5 Firm-level technology absorption ............................ 6.2 ..............1 FDI and technology transfer ................................... 3.7 ..........125 Individuals using Internet, %* ............................... 96.5 ..............1 Fixed broadband Internet subscriptions/100 pop.* . 35.1 ..............8 Int’l Internet bandwidth, kb/s per user* .............. 443.2 ..............5 Mobile broadband subscriptions/100 pop.*.......... 74.3 ............18 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.1 ..........129 Foreign market size index, 1–7 (best)* .................... 3.5 ..........112 GDP (PPP$ billions)* ............................................ 13.2 ..........128 Exports as a percentage of GDP* ........................ 57.5 ............36 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.1 ..........114 Local supplier quality.............................................. 5.1 ............28 State of cluster development.................................. 3.9 ............60 Nature of competitive advantage ............................ 4.1 ............37 Value chain breadth................................................ 4.3 ............35 Control of international distribution ......................... 5.0 ..............8 Production process sophistication.......................... 5.2 ............24 Extent of marketing ................................................ 5.0 ............28 Willingness to delegate authority ............................ 5.0 ............15 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............46 Quality of scientific research institutions ................. 4.8 ............29 Company spending on R&D................................... 3.7 ............32 University-industry collaboration in R&D ................. 4.6 ............25 Gov’t procurement of advanced tech products ...... 3.6 ............60 Availability of scientists and engineers .................... 4.6 ............33 PCT patents, applications/million pop.* ................ 91.4 ............17 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............80 Extent of market dominance .................................. 3.6 ............78 Effectiveness of anti-monopoly policy ..................... 4.3 ............52 Effect of taxation on incentives to invest................. 3.4 ............97 Total tax rate, % profits* ....................................... 29.9 ............38 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 211 2.1: Country/Economy Profiles India Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ................................... 1,243.3 GDP (US$ billions) ..................................... 1,870.7 GDP per capita (US$) ................................... 1,505 GDP (PPP) as share (%) of world total ............ 5.83 India 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 Emerging and Developing Asia 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 71 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 60 ......4.3 GCI 2012–2013 (out of 144) ..................................... 59 ......4.3 GCI 2011–2012 (out of 142) ..................................... 56 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .......................................92 ......4.2 7 Innovation Institutions ................................................................ 70 ......3.8 Infrastructure ............................................................ 87 ......3.6 Macroeconomic environment ................................. 101 ......4.2 Health and primary education ................................... 98 ......5.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) .....................................61 ......4.2 Market size Higher education and training ................................... 93 ......3.9 Goods market efficiency .......................................... 95 ......4.1 Labor market efficiency .......................................... 112 ......3.8 Financial market development .................................. 51 ......4.3 Technological readiness .......................................... 121 ......2.7 Market size ................................................................. 3 ......6.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............52 ......3.9 Business sophistication ........................................... 57 ......4.2 Innovation ................................................................. 49 ......3.5 India Emerging and Developing Asia The most problematic factors for doing business Access to financing ...........................................................10.2 Tax rates..............................................................................8.7 Foreign currency regulations ................................................8.4 Inadequate supply of infrastructure ......................................8.1 Corruption ...........................................................................8.0 Inefficient government bureaucracy .....................................7.6 Restrictive labor regulations .................................................6.5 Government instability/coups ..............................................6.4 Inadequately educated workforce ........................................6.3 Policy instability ...................................................................4.8 Poor work ethic in national labor force ................................4.7 Crime and theft ...................................................................4.6 Tax regulations ....................................................................4.5 Inflation ................................................................................4.5 Insufficient capacity to innovate ...........................................3.8 Poor public health ...............................................................2.8 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 212 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles India The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.1 ............73 Intellectual property protection ............................... 3.7 ............65 Diversion of public funds ........................................ 3.4 ............60 Public trust in politicians ......................................... 3.4 ............50 Irregular payments and bribes ................................ 3.5 ............93 Judicial independence............................................ 4.2 ............50 Favoritism in decisions of government officials ....... 3.4 ............49 Wastefulness of government spending ................... 3.5 ............49 Burden of government regulation ........................... 3.6 ............59 Efficiency of legal framework in settling disputes .... 3.8 ............57 Efficiency of legal framework in challenging regs. ... 3.8 ............43 Transparency of government policymaking............. 4.0 ............64 Business costs of terrorism .................................... 4.0 ..........125 Business costs of crime and violence..................... 3.8 ............98 Organized crime ..................................................... 4.0 ..........114 Reliability of police services .................................... 3.8 ............88 Ethical behavior of firms ......................................... 3.8 ............88 Strength of auditing and reporting standards ......... 4.2 ..........102 Efficacy of corporate boards .................................. 4.3 ............94 Protection of minority shareholders’ interests ......... 4.1 ............76 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.7 ............90 Quality of roads ...................................................... 3.8 ............76 Quality of railroad infrastructure .............................. 4.2 ............27 Quality of port infrastructure ................................... 4.0 ............76 Quality of air transport infrastructure....................... 4.3 ............71 Available airline seat km/week, millions* .......... 3,488.0 ............12 Quality of electricity supply ..................................... 3.4 ..........103 Mobile telephone subscriptions/100 pop.* ........... 70.8 ..........121 Fixed telephone lines/100 pop.* ............................. 2.3 ..........118 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –7.3 ..........129 Gross national savings, % GDP* .......................... 32.7 ............18 Inflation, annual % change* .................................... 9.5 ..........133 General government debt, % GDP* ..................... 66.7 ..........110 Country credit rating, 0–100 (best)* ...................... 57.8 ............55 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 1,536.4 ............44 Business impact of malaria .................................... 3.6 ............61 Tuberculosis cases/100,000 pop.* ..................... 176.0 ..........113 Business impact of tuberculosis ............................. 3.7 ..........135 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 3.7 ..........132 Infant mortality, deaths/1,000 live births* .............. 43.8 ..........115 Life expectancy, years*......................................... 66.2 ..........110 Quality of primary education ................................... 3.6 ............88 Primary education enrollment, net %* .................. 93.3 ............78 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 68.5 ..........106 Tertiary education enrollment, gross %*................ 24.8 ............87 Quality of the education system ............................. 4.2 ............45 Quality of math and science education .................. 4.2 ............67 Quality of management schools ............................. 4.4 ............56 Internet access in schools ...................................... 3.8 ............87 Availability of research and training services ........... 4.2 ............64 Extent of staff training ............................................ 3.9 ............77 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 12 ..........131 No. days to start a business* ............................... 27.0 ..........106 Agricultural policy costs.......................................... 3.9 ............60 Prevalence of trade barriers ................................... 4.1 ..........100 Trade tariffs, % duty* ............................................ 12.4 ..........124 Prevalence of foreign ownership............................. 4.2 ............98 Business impact of rules on FDI ............................. 4.2 ............93 Burden of customs procedures .............................. 3.9 ............75 Imports as a percentage of GDP* ........................ 31.7 ..........112 Degree of customer orientation .............................. 4.0 ..........110 Buyer sophistication ............................................... 3.8 ............38 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............90 Flexibility of wage determination ............................. 4.4 ..........113 Hiring and firing practices ....................................... 4.1 ............47 Redundancy costs, weeks of salary* .................... 15.8 ............75 Effect of taxation on incentives to work .................. 3.9 ............45 Pay and productivity............................................... 4.0 ............69 Reliance on professional management ................... 4.2 ............77 Country capacity to retain talent............................. 3.9 ............42 Country capacity to attract talent ........................... 3.8 ............46 Women in labor force, ratio to men* ..................... 0.36 ..........133 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.2 ............83 Affordability of financial services ............................. 4.1 ............73 Financing through local equity market .................... 4.0 ............39 Ease of access to loans ......................................... 3.6 ............29 Venture capital availability ....................................... 3.5 ............20 Soundness of banks .............................................. 4.3 ..........101 Regulation of securities exchanges ........................ 4.3 ............62 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.1 ..........110 Firm-level technology absorption ............................ 4.2 ..........102 FDI and technology transfer ................................... 4.2 ............95 Individuals using Internet, %* ............................... 15.1 ..........115 Fixed broadband Internet subscriptions/100 pop.* ... 1.2 ..........103 Int’l Internet bandwidth, kb/s per user* .................. 6.8 ..........107 Mobile broadband subscriptions/100 pop.*............ 3.2 ..........114 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 6.2 ..............3 Foreign market size index, 1–7 (best)* .................... 6.4 ..............4 GDP (PPP$ billions)* ....................................... 5,069.2 ..............3 Exports as a percentage of GDP* ........................ 24.9 ..........113 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............72 Local supplier quality.............................................. 4.2 ............78 State of cluster development.................................. 4.5 ............27 Nature of competitive advantage ............................ 3.9 ............44 Value chain breadth................................................ 4.1 ............43 Control of international distribution ......................... 4.2 ............50 Production process sophistication.......................... 4.0 ............62 Extent of marketing ................................................ 4.1 ............81 Willingness to delegate authority ............................ 3.9 ............57 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............48 Quality of scientific research institutions ................. 4.0 ............52 Company spending on R&D................................... 3.8 ............30 University-industry collaboration in R&D ................. 3.9 ............50 Gov’t procurement of advanced tech products ...... 3.5 ............61 Availability of scientists and engineers .................... 4.4 ............45 PCT patents, applications/million pop.* .................. 1.5 ............61 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.8 ............91 Extent of market dominance .................................. 4.2 ............36 Effectiveness of anti-monopoly policy ..................... 4.4 ............43 Effect of taxation on incentives to invest................. 3.9 ............49 Total tax rate, % profits* ....................................... 62.8 ..........130 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 213 2.1: Country/Economy Profiles Indonesia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ...................................... 248.0 GDP (US$ billions) ........................................ 870.3 GDP per capita (US$) ................................... 3,510 GDP (PPP) as share (%) of world total ............ 1.49 Indonesia 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 1994 Emerging and Developing Asia 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 34 ..... 4.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 38 ......4.5 GCI 2012–2013 (out of 144) ..................................... 50 ......4.4 GCI 2011–2012 (out of 142) ..................................... 46 ......4.4 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................46 ......4.9 7 Innovation Institutions ................................................................ 53 ......4.1 Infrastructure ............................................................ 56 ......4.4 Macroeconomic environment ................................... 34 ......5.5 Health and primary education ................................... 74 ......5.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................46 ......4.4 Market size Higher education and training ................................... 61 ......4.5 Goods market efficiency .......................................... 48 ......4.5 Labor market efficiency .......................................... 110 ......3.8 Financial market development .................................. 42 ......4.5 Technological readiness ............................................ 77 ......3.6 Market size ............................................................... 15 ......5.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........30 ......4.2 Business sophistication ........................................... 34 ......4.5 Innovation ................................................................. 31 ......3.9 Indonesia Emerging and Developing Asia The most problematic factors for doing business Corruption .........................................................................15.7 Access to financing ...........................................................10.6 Inflation ................................................................................9.5 Inefficient government bureaucracy .....................................8.3 Inadequate supply of infrastructure ......................................7.5 Policy instability ...................................................................6.9 Foreign currency regulations ................................................5.9 Poor work ethic in national labor force ................................5.3 Tax rates..............................................................................5.3 Government instability/coups ..............................................5.2 Restrictive labor regulations .................................................4.9 Crime and theft ...................................................................4.5 Inadequately educated workforce ........................................4.1 Tax regulations ....................................................................2.9 Poor public health ...............................................................2.3 Insufficient capacity to innovate ...........................................1.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 214 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Indonesia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.3 ............59 Intellectual property protection ............................... 4.1 ............43 Diversion of public funds ........................................ 3.4 ............63 Public trust in politicians ......................................... 3.6 ............37 Irregular payments and bribes ................................ 3.6 ............87 Judicial independence............................................ 3.9 ............63 Favoritism in decisions of government officials ....... 3.9 ............33 Wastefulness of government spending ................... 3.9 ............29 Burden of government regulation ........................... 4.0 ............23 Efficiency of legal framework in settling disputes .... 4.1 ............43 Efficiency of legal framework in challenging regs. ... 3.8 ............38 Transparency of government policymaking............. 4.2 ............52 Business costs of terrorism .................................... 4.6 ..........105 Business costs of crime and violence..................... 4.3 ............80 Organized crime ..................................................... 4.2 ..........102 Reliability of police services .................................... 4.1 ............67 Ethical behavior of firms ......................................... 4.3 ............47 Strength of auditing and reporting standards ......... 4.6 ............72 Efficacy of corporate boards .................................. 4.8 ............53 Protection of minority shareholders’ interests ......... 4.6 ............40 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.2 ............72 Quality of roads ...................................................... 3.9 ............72 Quality of railroad infrastructure .............................. 3.7 ............41 Quality of port infrastructure ................................... 4.0 ............77 Quality of air transport infrastructure....................... 4.5 ............64 Available airline seat km/week, millions* .......... 2,622.9 ............14 Quality of electricity supply ..................................... 4.3 ............84 Mobile telephone subscriptions/100 pop.* ......... 121.5 ............54 Fixed telephone lines/100 pop.* ........................... 16.1 ............71 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.1 ............55 Gross national savings, % GDP* .......................... 30.4 ............24 Inflation, annual % change* .................................... 6.4 ..........112 General government debt, % GDP* ..................... 26.1 ............27 Country credit rating, 0–100 (best)* ...................... 56.6 ............57 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 2,268.5 ............48 Business impact of malaria .................................... 4.3 ............49 Tuberculosis cases/100,000 pop.* ..................... 185.0 ..........117 Business impact of tuberculosis ............................. 4.1 ..........128 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 3.9 ..........130 Infant mortality, deaths/1,000 live births* .............. 25.8 ............97 Life expectancy, years*......................................... 70.6 ............94 Quality of primary education ................................... 4.4 ............48 Primary education enrollment, net %* .................. 92.2 ............85 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 82.5 ............92 Tertiary education enrollment, gross %*................ 31.5 ............77 Quality of the education system ............................. 4.5 ............32 Quality of math and science education .................. 4.6 ............36 Quality of management schools ............................. 4.6 ............49 Internet access in schools ...................................... 4.9 ............48 Availability of research and training services ........... 4.4 ............50 Extent of staff training ............................................ 4.7 ............24 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 48.0 ..........129 Agricultural policy costs.......................................... 4.1 ............36 Prevalence of trade barriers ................................... 4.1 ..........103 Trade tariffs, % duty* .............................................. 4.6 ............64 Prevalence of foreign ownership............................. 4.6 ............68 Business impact of rules on FDI ............................. 4.6 ............59 Burden of customs procedures .............................. 4.0 ............68 Imports as a percentage of GDP* ........................ 25.4 ..........129 Degree of customer orientation .............................. 5.0 ............39 Buyer sophistication ............................................... 3.9 ............35 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.6 ............46 Flexibility of wage determination ............................. 4.4 ..........114 Hiring and firing practices ....................................... 4.3 ............32 Redundancy costs, weeks of salary* .................... 57.8 ..........139 Effect of taxation on incentives to work .................. 4.1 ............31 Pay and productivity............................................... 4.5 ............30 Reliance on professional management ................... 5.0 ............28 Country capacity to retain talent............................. 4.2 ............32 Country capacity to attract talent ........................... 4.3 ............25 Women in labor force, ratio to men* ..................... 0.62 ..........112 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.9 ............46 Affordability of financial services ............................. 4.9 ............41 Financing through local equity market .................... 4.3 ............29 Ease of access to loans ......................................... 3.9 ............15 Venture capital availability ....................................... 3.9 ............14 Soundness of banks .............................................. 5.1 ............60 Regulation of securities exchanges ........................ 4.5 ............53 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.2 ............53 Firm-level technology absorption ............................ 5.1 ............42 FDI and technology transfer ................................... 4.9 ............40 Individuals using Internet, %* ............................... 15.8 ..........112 Fixed broadband Internet subscriptions/100 pop.* ... 1.3 ..........101 Int’l Internet bandwidth, kb/s per user* ................ 10.1 ..........100 Mobile broadband subscriptions/100 pop.*.......... 31.6 ............65 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.3 ............15 Foreign market size index, 1–7 (best)* .................... 5.6 ............23 GDP (PPP$ billions)* ....................................... 1,292.8 ............15 Exports as a percentage of GDP* ........................ 23.6 ..........119 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............38 Local supplier quality.............................................. 4.3 ............75 State of cluster development.................................. 4.5 ............26 Nature of competitive advantage ............................ 3.7 ............60 Value chain breadth................................................ 4.4 ............30 Control of international distribution ......................... 4.4 ............38 Production process sophistication.......................... 4.5 ............37 Extent of marketing ................................................ 4.9 ............31 Willingness to delegate authority ............................ 4.5 ............28 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.8 ............22 Quality of scientific research institutions ................. 4.3 ............41 Company spending on R&D................................... 4.0 ............24 University-industry collaboration in R&D ................. 4.5 ............30 Gov’t procurement of advanced tech products ...... 4.2 ............13 Availability of scientists and engineers .................... 4.6 ............31 PCT patents, applications/million pop.* .................. 0.1 ..........106 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.3 ............53 Extent of market dominance .................................. 4.1 ............43 Effectiveness of anti-monopoly policy ..................... 4.5 ............37 Effect of taxation on incentives to invest................. 4.2 ............30 Total tax rate, % profits* ....................................... 32.2 ............46 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 215 2.1: Country/Economy Profiles Iran, Islamic Rep. Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 77.1 GDP (US$ billions) ........................................ 366.3 GDP per capita (US$) ................................... 4,751 GDP (PPP) as share (%) of world total ............ 1.09 Iran, Islamic Rep. 15,000 Middle East, North Africa, and Pakistan 12,000 9,000 6,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 83 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 82 ......4.1 GCI 2012–2013 (out of 144) ..................................... 66 ......4.2 GCI 2011–2012 (out of 142) ..................................... 62 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (41.8%) .......................................71 ......4.6 7 Innovation Institutions .............................................................. 108 ......3.4 Infrastructure ............................................................ 69 ......4.1 Macroeconomic environment ................................... 62 ......4.8 Health and primary education ................................... 52 ......6.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (48.6%) .....................................98 ......3.7 Market size Higher education and training ................................... 78 ......4.2 Goods market efficiency ........................................ 120 ......3.9 Labor market efficiency .......................................... 142 ......3.0 Financial market development ................................ 128 ......3.0 Technological readiness .......................................... 107 ......3.0 Market size ............................................................... 21 ......5.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (9.5%) ...........102 ......3.3 Business sophistication ......................................... 110 ......3.5 Innovation ................................................................. 86 ......3.1 Iran, Islamic Rep. Middle East, North Africa, and Pakistan The most problematic factors for doing business Access to financing ...........................................................16.9 Policy instability .................................................................13.0 Inflation ..............................................................................13.0 Inefficient government bureaucracy ...................................11.5 Inadequate supply of infrastructure ....................................10.6 Corruption ...........................................................................7.9 Foreign currency regulations ................................................7.3 Restrictive labor regulations .................................................5.6 Poor work ethic in national labor force ................................4.0 Inadequately educated workforce ........................................3.5 Tax rates..............................................................................2.0 Tax regulations ....................................................................1.8 Insufficient capacity to innovate ...........................................1.5 Crime and theft ...................................................................0.7 Government instability/coups ..............................................0.5 Poor public health ...............................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 216 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Iran, Islamic Rep. The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.9 ............86 Intellectual property protection ............................... 2.7 ..........127 Diversion of public funds ........................................ 3.0 ............84 Public trust in politicians ......................................... 3.1 ............65 Irregular payments and bribes ................................ 3.4 ............97 Judicial independence............................................ 3.4 ............89 Favoritism in decisions of government officials ....... 3.1 ............68 Wastefulness of government spending ................... 2.9 ............82 Burden of government regulation ........................... 2.8 ..........125 Efficiency of legal framework in settling disputes .... 3.4 ............94 Efficiency of legal framework in challenging regs. ... 2.3 ..........130 Transparency of government policymaking............. 3.2 ..........127 Business costs of terrorism .................................... 3.9 ..........127 Business costs of crime and violence..................... 3.6 ..........112 Organized crime ..................................................... 3.8 ..........121 Reliability of police services .................................... 4.0 ............80 Ethical behavior of firms ......................................... 3.4 ..........121 Strength of auditing and reporting standards ......... 3.7 ..........125 Efficacy of corporate boards .................................. 3.9 ..........122 Protection of minority shareholders’ interests ......... 3.2 ..........128 Strength of investor protection, 0–10 (best)* .......... 3.7 ..........117 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.9 ............82 Quality of roads ...................................................... 4.1 ............63 Quality of railroad infrastructure .............................. 3.4 ............45 Quality of port infrastructure ................................... 4.0 ............80 Quality of air transport infrastructure....................... 3.2 ..........122 Available airline seat km/week, millions* ............. 277.1 ............56 Quality of electricity supply ..................................... 5.1 ............61 Mobile telephone subscriptions/100 pop.* ........... 84.2 ..........112 Fixed telephone lines/100 pop.* ........................... 38.3 ............27 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.9 ............35 Gross national savings, % GDP* .......................... 46.0 ..............6 Inflation, annual % change* .................................. 35.2 ..........143 General government debt, % GDP* ..................... 10.6 ..............6 Country credit rating, 0–100 (best)* ...................... 27.1 ..........115 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 1.2 ............17 Business impact of malaria .................................... 5.7 ............17 Tuberculosis cases/100,000 pop.* ....................... 21.0 ............46 Business impact of tuberculosis ............................. 5.6 ............74 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 5.3 ............78 Infant mortality, deaths/1,000 live births* .............. 15.1 ............76 Life expectancy, years*......................................... 73.8 ............76 Quality of primary education ................................... 4.0 ............70 Primary education enrollment, net %* .................. 99.8 ..............5 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 86.3 ............83 Tertiary education enrollment, gross %*................ 55.2 ............50 Quality of the education system ............................. 3.0 ..........108 Quality of math and science education .................. 4.5 ............44 Quality of management schools ............................. 3.8 ..........103 Internet access in schools ...................................... 2.7 ..........126 Availability of research and training services ........... 3.9 ............88 Extent of staff training ............................................ 3.0 ..........135 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 16.0 ............79 Agricultural policy costs.......................................... 3.3 ..........111 Prevalence of trade barriers ................................... 3.9 ..........123 Trade tariffs, % duty* ............................................ 27.1 ..........144 Prevalence of foreign ownership............................. 2.2 ..........144 Business impact of rules on FDI ............................. 3.0 ..........134 Burden of customs procedures .............................. 3.3 ..........116 Imports as a percentage of GDP* ........................ 17.5 ..........142 Degree of customer orientation .............................. 3.8 ..........119 Buyer sophistication ............................................... 3.5 ............58 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.5 ..........134 Flexibility of wage determination ............................. 3.8 ..........130 Hiring and firing practices ....................................... 3.2 ..........120 Redundancy costs, weeks of salary* .................... 23.1 ..........109 Effect of taxation on incentives to work .................. 3.5 ............81 Pay and productivity............................................... 3.1 ..........129 Reliance on professional management ................... 3.1 ..........132 Country capacity to retain talent............................. 2.5 ..........125 Country capacity to attract talent ........................... 1.8 ..........140 Women in labor force, ratio to men* ..................... 0.23 ..........143 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.9 ..........135 Affordability of financial services ............................. 3.1 ..........130 Financing through local equity market .................... 3.0 ............99 Ease of access to loans ......................................... 1.6 ..........141 Venture capital availability ....................................... 1.9 ..........133 Soundness of banks .............................................. 3.8 ..........125 Regulation of securities exchanges ........................ 3.6 ..........102 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.9 ..........122 Firm-level technology absorption ............................ 3.7 ..........131 FDI and technology transfer ................................... 3.8 ..........124 Individuals using Internet, %* ............................... 31.4 ............94 Fixed broadband Internet subscriptions/100 pop.* ... 5.6 ............78 Int’l Internet bandwidth, kb/s per user* .................. 4.6 ..........118 Mobile broadband subscriptions/100 pop.*............ 1.2 ..........123 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.0 ............18 Foreign market size index, 1–7 (best)* .................... 5.5 ............28 GDP (PPP$ billions)* .......................................... 945.5 ............18 Exports as a percentage of GDP* ........................ 27.8 ..........105 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............87 Local supplier quality.............................................. 3.4 ..........132 State of cluster development.................................. 3.4 ............97 Nature of competitive advantage ............................ 3.0 ..........110 Value chain breadth................................................ 3.2 ..........120 Control of international distribution ......................... 4.4 ............44 Production process sophistication.......................... 3.6 ............89 Extent of marketing ................................................ 3.5 ..........116 Willingness to delegate authority ............................ 2.9 ..........134 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............94 Quality of scientific research institutions ................. 4.1 ............45 Company spending on R&D................................... 2.7 ..........110 University-industry collaboration in R&D ................. 3.2 ..........102 Gov’t procurement of advanced tech products ...... 3.2 ............91 Availability of scientists and engineers .................... 4.4 ............46 PCT patents, applications/million pop.* .................. 0.1 ..........105 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.4 ..........119 Extent of market dominance .................................. 3.7 ............72 Effectiveness of anti-monopoly policy ..................... 3.9 ............83 Effect of taxation on incentives to invest................. 3.6 ............85 Total tax rate, % profits* ....................................... 44.1 ............97 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 217 2.1: Country/Economy Profiles Ireland Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 4.8 GDP (US$ billions) ........................................ 217.9 GDP per capita (US$) ................................. 45,621 GDP (PPP) as share (%) of world total ............ 0.22 Ireland 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 25 ..... 5.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 28 ......4.9 GCI 2012–2013 (out of 144) ..................................... 27 ......4.9 GCI 2011–2012 (out of 142) ..................................... 29 ......4.8 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................31 ......5.2 7 Innovation Institutions ................................................................ 15 ......5.4 Infrastructure ............................................................ 27 ......5.3 Macroeconomic environment ................................. 130 ......3.5 Health and primary education ..................................... 8 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................21 ......5.0 Market size Higher education and training ................................... 17 ......5.5 Goods market efficiency .......................................... 10 ......5.3 Labor market efficiency ............................................ 18 ......4.8 Financial market development .................................. 61 ......4.2 Technological readiness ............................................ 12 ......5.9 Market size ............................................................... 57 ......4.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........20 ......4.9 Business sophistication ........................................... 20 ......5.0 Innovation ................................................................. 20 ......4.7 Ireland Advanced economies The most problematic factors for doing business Access to financing ...........................................................29.9 Inadequate supply of infrastructure ....................................15.8 Tax rates............................................................................13.4 Insufficient capacity to innovate ...........................................9.8 Inefficient government bureaucracy .....................................9.6 Restrictive labor regulations .................................................8.7 Inadequately educated workforce ........................................5.0 Inflation ................................................................................1.5 Policy instability ...................................................................1.5 Tax regulations ....................................................................1.5 Foreign currency regulations ................................................1.0 Poor public health ...............................................................0.8 Poor work ethic in national labor force ................................0.8 Corruption ...........................................................................0.6 Crime and theft ...................................................................0.0 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 218 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Ireland The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.9 ............13 Intellectual property protection ............................... 5.6 ............14 Diversion of public funds ........................................ 5.6 ............12 Public trust in politicians ......................................... 4.5 ............22 Irregular payments and bribes ................................ 6.3 ..............9 Judicial independence............................................ 6.3 ..............6 Favoritism in decisions of government officials ....... 4.5 ............15 Wastefulness of government spending ................... 3.8 ............31 Burden of government regulation ........................... 4.0 ............22 Efficiency of legal framework in settling disputes .... 4.9 ............21 Efficiency of legal framework in challenging regs. ... 4.7 ............16 Transparency of government policymaking............. 5.1 ............17 Business costs of terrorism .................................... 6.1 ............24 Business costs of crime and violence..................... 5.5 ............23 Organized crime ..................................................... 5.9 ............24 Reliability of police services .................................... 6.1 ............12 Ethical behavior of firms ......................................... 5.6 ............17 Strength of auditing and reporting standards ......... 4.9 ............62 Efficacy of corporate boards .................................. 5.2 ............23 Protection of minority shareholders’ interests ......... 4.8 ............27 Strength of investor protection, 0–10 (best)* .......... 8.3 ..............6 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.1 ............36 Quality of roads ...................................................... 5.3 ............25 Quality of railroad infrastructure .............................. 4.1 ............31 Quality of port infrastructure ................................... 5.3 ............29 Quality of air transport infrastructure....................... 5.6 ............23 Available airline seat km/week, millions* ............. 489.4 ............44 Quality of electricity supply ..................................... 6.4 ............17 Mobile telephone subscriptions/100 pop.* ......... 102.8 ............89 Fixed telephone lines/100 pop.* ........................... 44.0 ............17 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –7.4 ..........132 Gross national savings, % GDP* .......................... 18.1 ............82 Inflation, annual % change* .................................... 0.5 ..............1 General government debt, % GDP* ................... 122.8 ..........137 Country credit rating, 0–100 (best)* ...................... 63.1 ............44 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 8.6 ............28 Business impact of tuberculosis ............................. 6.5 ............22 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 6.5 ............16 Infant mortality, deaths/1,000 live births* ................ 3.4 ............19 Life expectancy, years*......................................... 80.9 ............20 Quality of primary education ................................... 5.8 ..............7 Primary education enrollment, net %* .................. 95.3 ............62 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 119.1 ..............6 Tertiary education enrollment, gross %*................ 71.2 ............25 Quality of the education system ............................. 5.4 ..............5 Quality of math and science education .................. 5.0 ............24 Quality of management schools ............................. 5.3 ............15 Internet access in schools ...................................... 5.4 ............36 Availability of research and training services ........... 5.0 ............25 Extent of staff training ............................................ 4.8 ............20 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ............................... 10.0 ............52 Agricultural policy costs.......................................... 4.7 ..............9 Prevalence of trade barriers ................................... 4.9 ............15 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 6.1 ..............3 Business impact of rules on FDI ............................. 6.6 ..............1 Burden of customs procedures .............................. 5.5 ..............8 Imports as a percentage of GDP* ........................ 83.6 ............19 Degree of customer orientation .............................. 5.3 ............24 Buyer sophistication ............................................... 4.2 ............21 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.4 ............16 Flexibility of wage determination ............................. 4.9 ............79 Hiring and firing practices ....................................... 4.2 ............40 Redundancy costs, weeks of salary* .................... 12.2 ............53 Effect of taxation on incentives to work .................. 3.4 ............93 Pay and productivity............................................... 4.5 ............28 Reliance on professional management ................... 5.6 ............14 Country capacity to retain talent............................. 4.2 ............30 Country capacity to attract talent ........................... 5.1 ............10 Women in labor force, ratio to men* ..................... 0.81 ............70 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.9 ............49 Affordability of financial services ............................. 4.7 ............46 Financing through local equity market .................... 3.3 ............78 Ease of access to loans ......................................... 2.2 ..........117 Venture capital availability ....................................... 3.0 ............46 Soundness of banks .............................................. 3.0 ..........139 Regulation of securities exchanges ........................ 4.7 ............43 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.0 ............22 Firm-level technology absorption ............................ 5.6 ............25 FDI and technology transfer ................................... 6.4 ..............1 Individuals using Internet, %* ............................... 78.2 ............25 Fixed broadband Internet subscriptions/100 pop.* . 24.2 ............29 Int’l Internet bandwidth, kb/s per user* .............. 132.3 ............20 Mobile broadband subscriptions/100 pop.*.......... 67.2 ............22 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.7 ............59 Foreign market size index, 1–7 (best)* .................... 5.4 ............31 GDP (PPP$ billions)* .......................................... 188.9 ............57 Exports as a percentage of GDP* ...................... 109.1 ..............5 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............44 Local supplier quality.............................................. 5.2 ............25 State of cluster development.................................. 4.8 ............18 Nature of competitive advantage ............................ 5.4 ............16 Value chain breadth................................................ 4.8 ............20 Control of international distribution ......................... 3.9 ............79 Production process sophistication.......................... 5.7 ............13 Extent of marketing ................................................ 5.3 ............20 Willingness to delegate authority ............................ 4.9 ............18 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.0 ............17 Quality of scientific research institutions ................. 5.5 ............13 Company spending on R&D................................... 4.6 ............19 University-industry collaboration in R&D ................. 5.2 ............13 Gov’t procurement of advanced tech products ...... 3.5 ............62 Availability of scientists and engineers .................... 5.0 ............15 PCT patents, applications/million pop.* ................ 82.6 ............20 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.2 ............60 Extent of market dominance .................................. 4.7 ............20 Effectiveness of anti-monopoly policy ..................... 4.8 ............23 Effect of taxation on incentives to invest................. 4.5 ............18 Total tax rate, % profits* ....................................... 25.7 ............23 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 219 2.1: Country/Economy Profiles Israel Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 7.9 GDP (US$ billions) ........................................ 291.5 GDP per capita (US$) ................................. 37,035 GDP (PPP) as share (%) of world total ............ 0.32 Israel 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 27 ..... 4.9 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 27 ......4.9 GCI 2012–2013 (out of 144) ..................................... 26 ......5.0 GCI 2011–2012 (out of 142) ..................................... 22 ......5.1 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................36 ......5.1 7 Innovation Institutions ................................................................ 43 ......4.3 Infrastructure ............................................................ 34 ......5.0 Macroeconomic environment ................................... 50 ......5.1 Health and primary education ................................... 44 ......6.1 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................26 ......4.8 Market size Higher education and training ................................... 36 ......5.0 Goods market efficiency .......................................... 79 ......4.2 Labor market efficiency ............................................ 59 ......4.3 Financial market development .................................. 20 ......4.9 Technological readiness ............................................ 15 ......5.8 Market size ............................................................... 48 ......4.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........10 ......5.2 Business sophistication ........................................... 26 ......4.8 Innovation ................................................................... 3 ......5.6 Israel Advanced economies The most problematic factors for doing business Inefficient government bureaucracy ...................................22.1 Tax rates............................................................................10.4 Policy instability ...................................................................9.9 Inadequate supply of infrastructure ......................................9.7 Access to financing .............................................................8.1 Corruption ...........................................................................7.6 Tax regulations ....................................................................7.6 Restrictive labor regulations .................................................7.4 Poor work ethic in national labor force ................................6.9 Inadequately educated workforce ........................................5.5 Insufficient capacity to innovate ...........................................2.3 Foreign currency regulations ................................................1.2 Government instability/coups ..............................................1.2 Crime and theft ...................................................................0.2 Inflation ................................................................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 220 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Israel The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.8 ............43 Intellectual property protection ............................... 4.6 ............33 Diversion of public funds ........................................ 4.1 ............39 Public trust in politicians ......................................... 2.8 ............81 Irregular payments and bribes ................................ 5.1 ............33 Judicial independence............................................ 5.8 ............16 Favoritism in decisions of government officials ....... 2.9 ............79 Wastefulness of government spending ................... 3.0 ............77 Burden of government regulation ........................... 2.9 ..........116 Efficiency of legal framework in settling disputes .... 4.1 ............46 Efficiency of legal framework in challenging regs. ... 4.0 ............35 Transparency of government policymaking............. 4.0 ............63 Business costs of terrorism .................................... 3.4 ..........132 Business costs of crime and violence..................... 4.8 ............49 Organized crime ..................................................... 4.7 ............75 Reliability of police services .................................... 4.1 ............69 Ethical behavior of firms ......................................... 4.4 ............43 Strength of auditing and reporting standards ......... 5.5 ............31 Efficacy of corporate boards .................................. 4.3 ............89 Protection of minority shareholders’ interests ......... 4.5 ............44 Strength of investor protection, 0–10 (best)* .......... 8.3 ..............6 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.4 ............63 Quality of roads ...................................................... 4.7 ............45 Quality of railroad infrastructure .............................. 3.0 ............54 Quality of port infrastructure ................................... 3.8 ............86 Quality of air transport infrastructure....................... 4.9 ............50 Available airline seat km/week, millions* ............. 538.4 ............41 Quality of electricity supply ..................................... 5.9 ............34 Mobile telephone subscriptions/100 pop.* ......... 122.8 ............53 Fixed telephone lines/100 pop.* ........................... 44.8 ............15 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.2 ............79 Gross national savings, % GDP* .......................... 22.2 ............55 Inflation, annual % change* .................................... 1.5 ..............1 General government debt, % GDP* ..................... 66.7 ..........111 Country credit rating, 0–100 (best)* ...................... 70.8 ............34 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 7.6 ............24 Business impact of tuberculosis ............................. 6.8 ............11 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 6.6 ..............8 Infant mortality, deaths/1,000 live births* ................ 3.3 ............16 Life expectancy, years*......................................... 81.7 ............10 Quality of primary education ................................... 3.7 ............86 Primary education enrollment, net %* .................. 96.7 ............48 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 101.7 ............26 Tertiary education enrollment, gross %*................ 65.8 ............30 Quality of the education system ............................. 3.7 ............69 Quality of math and science education .................. 4.0 ............79 Quality of management schools ............................. 4.9 ............32 Internet access in schools ...................................... 5.5 ............32 Availability of research and training services ........... 4.6 ............38 Extent of staff training ............................................ 4.0 ............76 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 14.0 ............69 Agricultural policy costs.......................................... 3.8 ............73 Prevalence of trade barriers ................................... 4.2 ............94 Trade tariffs, % duty* .............................................. 4.1 ............55 Prevalence of foreign ownership............................. 4.9 ............52 Business impact of rules on FDI ............................. 4.5 ............61 Burden of customs procedures .............................. 4.4 ............53 Imports as a percentage of GDP* ........................ 32.5 ..........108 Degree of customer orientation .............................. 4.1 ..........103 Buyer sophistication ............................................... 3.8 ............42 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............76 Flexibility of wage determination ............................. 4.9 ............78 Hiring and firing practices ....................................... 4.2 ............44 Redundancy costs, weeks of salary* .................... 27.4 ..........124 Effect of taxation on incentives to work .................. 3.6 ............70 Pay and productivity............................................... 3.9 ............76 Reliance on professional management ................... 4.2 ............76 Country capacity to retain talent............................. 3.6 ............55 Country capacity to attract talent ........................... 3.3 ............83 Women in labor force, ratio to men* ..................... 0.88 ............36 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.2 ............37 Affordability of financial services ............................. 4.2 ............59 Financing through local equity market .................... 3.9 ............42 Ease of access to loans ......................................... 3.0 ............51 Venture capital availability ....................................... 4.2 ..............9 Soundness of banks .............................................. 6.0 ............18 Regulation of securities exchanges ........................ 4.5 ............52 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.3 ............10 Firm-level technology absorption ............................ 6.0 ..............5 FDI and technology transfer ................................... 5.4 ............11 Individuals using Internet, %* ............................... 70.8 ............37 Fixed broadband Internet subscriptions/100 pop.* . 25.7 ............24 Int’l Internet bandwidth, kb/s per user* .............. 100.5 ............29 Mobile broadband subscriptions/100 pop.*.......... 53.0 ............37 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.2 ............47 Foreign market size index, 1–7 (best)* .................... 4.9 ............53 GDP (PPP$ billions)* .......................................... 273.7 ............48 Exports as a percentage of GDP* ........................ 34.1 ............80 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............67 Local supplier quality.............................................. 4.8 ............40 State of cluster development.................................. 4.5 ............28 Nature of competitive advantage ............................ 6.0 ..............8 Value chain breadth................................................ 4.4 ............29 Control of international distribution ......................... 4.2 ............52 Production process sophistication.......................... 5.3 ............21 Extent of marketing ................................................ 5.0 ............29 Willingness to delegate authority ............................ 4.2 ............33 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.8 ..............3 Quality of scientific research institutions ................. 6.3 ..............3 Company spending on R&D................................... 5.3 ..............7 University-industry collaboration in R&D ................. 5.5 ..............7 Gov’t procurement of advanced tech products ...... 4.3 ..............9 Availability of scientists and engineers .................... 5.2 ............10 PCT patents, applications/million pop.* .............. 230.0 ..............5 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.2 ..........126 Extent of market dominance .................................. 2.4 ..........143 Effectiveness of anti-monopoly policy ..................... 3.4 ..........118 Effect of taxation on incentives to invest................. 3.9 ............50 Total tax rate, % profits* ....................................... 29.9 ............38 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 221 2.1: Country/Economy Profiles Italy Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 59.7 GDP (US$ billions) ..................................... 2,072.0 GDP per capita (US$) ................................. 34,715 GDP (PPP) as share (%) of world total ............ 2.08 Italy 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2,000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 49 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 49 ......4.4 GCI 2012–2013 (out of 144) ..................................... 42 ......4.5 GCI 2011–2012 (out of 142) ..................................... 43 ......4.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................54 ......4.8 7 Innovation Institutions .............................................................. 106 ......3.4 Infrastructure ............................................................ 26 ......5.4 Macroeconomic environment ................................. 108 ......4.1 Health and primary education ................................... 22 ......6.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................47 ......4.4 Market size Higher education and training ................................... 47 ......4.8 Goods market efficiency .......................................... 73 ......4.3 Labor market efficiency .......................................... 136 ......3.3 Financial market development ................................ 119 ......3.3 Technological readiness ............................................ 38 ......4.8 Market size ............................................................... 12 ......5.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........29 ......4.3 Business sophistication ........................................... 25 ......4.8 Innovation ................................................................. 35 ......3.7 Italy Advanced economies The most problematic factors for doing business Inefficient government bureaucracy ...................................19.9 Tax rates............................................................................18.7 Access to financing ...........................................................16.1 Restrictive labor regulations ...............................................11.1 Tax regulations ....................................................................8.6 Corruption ...........................................................................7.2 Policy instability ...................................................................5.8 Inadequate supply of infrastructure ......................................5.5 Insufficient capacity to innovate ...........................................2.0 Crime and theft ...................................................................1.7 Government instability/coups ..............................................1.0 Poor work ethic in national labor force ................................0.8 Inflation ................................................................................0.6 Inadequately educated workforce ........................................0.5 Poor public health ...............................................................0.4 Foreign currency regulations ................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 222 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Italy The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.0 ............74 Intellectual property protection ............................... 3.7 ............70 Diversion of public funds ........................................ 2.8 ............95 Public trust in politicians ......................................... 1.7 ..........139 Irregular payments and bribes ................................ 3.8 ............74 Judicial independence............................................ 3.5 ............78 Favoritism in decisions of government officials ....... 2.1 ..........135 Wastefulness of government spending ................... 1.9 ..........139 Burden of government regulation ........................... 1.9 ..........142 Efficiency of legal framework in settling disputes .... 2.0 ..........143 Efficiency of legal framework in challenging regs. ... 2.2 ..........135 Transparency of government policymaking............. 2.5 ..........143 Business costs of terrorism .................................... 5.6 ............54 Business costs of crime and violence..................... 4.3 ............81 Organized crime ..................................................... 3.3 ..........132 Reliability of police services .................................... 4.8 ............42 Ethical behavior of firms ......................................... 3.6 ..........105 Strength of auditing and reporting standards ......... 4.2 ............99 Efficacy of corporate boards .................................. 3.9 ..........121 Protection of minority shareholders’ interests ......... 3.3 ..........127 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.6 ............56 Quality of roads ...................................................... 4.3 ............57 Quality of railroad infrastructure .............................. 4.1 ............29 Quality of port infrastructure ................................... 4.5 ............55 Quality of air transport infrastructure....................... 4.3 ............70 Available airline seat km/week, millions* .......... 2,358.7 ............18 Quality of electricity supply ..................................... 5.9 ............35 Mobile telephone subscriptions/100 pop.* ......... 158.9 ............15 Fixed telephone lines/100 pop.* ........................... 34.3 ............33 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.0 ............77 Gross national savings, % GDP* .......................... 17.8 ............84 Inflation, annual % change* .................................... 1.3 ..............1 General government debt, % GDP* ................... 132.5 ..........139 Country credit rating, 0–100 (best)* ...................... 66.9 ............39 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 6.7 ............18 Business impact of tuberculosis ............................. 6.6 ............21 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 6.3 ............28 Infant mortality, deaths/1,000 live births* ................ 3.2 ............15 Life expectancy, years*......................................... 82.9 ..............3 Quality of primary education ................................... 4.7 ............34 Primary education enrollment, net %* .................. 97.2 ............42 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 100.7 ............33 Tertiary education enrollment, gross %*................ 62.5 ............35 Quality of the education system ............................. 3.7 ............67 Quality of math and science education .................. 4.5 ............45 Quality of management schools ............................. 5.1 ............26 Internet access in schools ...................................... 3.8 ............91 Availability of research and training services ........... 4.8 ............30 Extent of staff training ............................................ 3.2 ..........133 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 3.4 ..........110 Prevalence of trade barriers ................................... 4.3 ............79 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 3.5 ..........123 Business impact of rules on FDI ............................. 2.7 ..........138 Burden of customs procedures .............................. 4.0 ............71 Imports as a percentage of GDP* ........................ 28.2 ..........122 Degree of customer orientation .............................. 5.0 ............43 Buyer sophistication ............................................... 3.8 ............43 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.4 ..........137 Flexibility of wage determination ............................. 3.0 ..........138 Hiring and firing practices ....................................... 2.4 ..........141 Redundancy costs, weeks of salary* ...................... 7.2 ............18 Effect of taxation on incentives to work .................. 1.9 ..........143 Pay and productivity............................................... 2.6 ..........139 Reliance on professional management ................... 3.4 ..........122 Country capacity to retain talent............................. 2.6 ..........121 Country capacity to attract talent ........................... 2.3 ..........128 Women in labor force, ratio to men* ..................... 0.72 ............93 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.3 ............77 Affordability of financial services ............................. 4.0 ............82 Financing through local equity market .................... 3.2 ............81 Ease of access to loans ......................................... 1.6 ..........139 Venture capital availability ....................................... 2.0 ..........127 Soundness of banks .............................................. 4.4 ............93 Regulation of securities exchanges ........................ 3.8 ............84 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.0 ............64 Firm-level technology absorption ............................ 4.2 ..........106 FDI and technology transfer ................................... 3.7 ..........128 Individuals using Internet, %* ............................... 58.5 ............56 Fixed broadband Internet subscriptions/100 pop.* . 22.3 ............34 Int’l Internet bandwidth, kb/s per user* ................ 89.8 ............31 Mobile broadband subscriptions/100 pop.*.......... 64.8 ............25 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.5 ............11 Foreign market size index, 1–7 (best)* .................... 5.9 ............15 GDP (PPP$ billions)* ....................................... 1,807.8 ............11 Exports as a percentage of GDP* ........................ 30.3 ............96 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.4 ............10 Local supplier quality.............................................. 5.2 ............26 State of cluster development.................................. 5.6 ..............1 Nature of competitive advantage ............................ 6.0 ..............6 Value chain breadth................................................ 4.9 ............19 Control of international distribution ......................... 4.4 ............37 Production process sophistication.......................... 5.0 ............28 Extent of marketing ................................................ 4.3 ............63 Willingness to delegate authority ............................ 3.1 ..........127 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.3 ............39 Quality of scientific research institutions ................. 4.5 ............38 Company spending on R&D................................... 3.6 ............35 University-industry collaboration in R&D ................. 3.7 ............59 Gov’t procurement of advanced tech products ...... 2.6 ..........130 Availability of scientists and engineers .................... 4.8 ............23 PCT patents, applications/million pop.* ................ 53.8 ............24 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.2 ............58 Extent of market dominance .................................. 5.3 ..............8 Effectiveness of anti-monopoly policy ..................... 3.7 ..........100 Effect of taxation on incentives to invest................. 2.0 ..........143 Total tax rate, % profits* ....................................... 65.8 ..........134 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 223 2.1: Country/Economy Profiles Jamaica Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.8 GDP (US$ billions) .......................................... 14.3 GDP per capita (US$) ................................... 5,134 GDP (PPP) as share (%) of world total ............ 0.03 Jamaica 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 86 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 94 ......3.9 GCI 2012–2013 (out of 144) ..................................... 97 ......3.8 GCI 2011–2012 (out of 142) ................................... 107 ......3.8 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................99 ......4.1 7 Innovation Institutions ................................................................ 80 ......3.7 Infrastructure ............................................................ 80 ......3.8 Macroeconomic environment ................................. 136 ......3.3 Health and primary education ................................... 72 ......5.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................77 ......3.9 Market size Higher education and training ................................... 76 ......4.2 Goods market efficiency .......................................... 76 ......4.3 Labor market efficiency ............................................ 58 ......4.3 Financial market development .................................. 48 ......4.4 Technological readiness ............................................ 75 ......3.6 Market size ............................................................. 107 ......2.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........71 ......3.6 Business sophistication ........................................... 67 ......4.0 Innovation ................................................................. 75 ......3.2 Jamaica Latin America and the Caribbean The most problematic factors for doing business Crime and theft .................................................................16.9 Inefficient government bureaucracy ...................................15.0 Corruption .........................................................................12.0 Tax rates............................................................................11.5 Poor work ethic in national labor force ................................8.9 Access to financing .............................................................7.6 Inflation ................................................................................6.7 Tax regulations ....................................................................5.2 Inadequately educated workforce ........................................4.4 Restrictive labor regulations .................................................2.4 Insufficient capacity to innovate ...........................................2.2 Policy instability ...................................................................1.9 Foreign currency regulations ................................................1.7 Inadequate supply of infrastructure ......................................1.7 Poor public health ...............................................................1.1 Government instability/coups ..............................................0.9 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 224 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Jamaica The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.4 ............52 Intellectual property protection ............................... 3.8 ............62 Diversion of public funds ........................................ 3.0 ............86 Public trust in politicians ......................................... 2.4 ............95 Irregular payments and bribes ................................ 3.8 ............75 Judicial independence............................................ 4.5 ............42 Favoritism in decisions of government officials ....... 2.8 ............94 Wastefulness of government spending ................... 2.3 ..........125 Burden of government regulation ........................... 2.7 ..........126 Efficiency of legal framework in settling disputes .... 3.4 ............88 Efficiency of legal framework in challenging regs. ... 3.5 ............53 Transparency of government policymaking............. 3.6 ..........109 Business costs of terrorism .................................... 5.5 ............57 Business costs of crime and violence..................... 2.1 ..........143 Organized crime ..................................................... 2.9 ..........138 Reliability of police services .................................... 3.6 ..........105 Ethical behavior of firms ......................................... 3.9 ............74 Strength of auditing and reporting standards ......... 5.3 ............35 Efficacy of corporate boards .................................. 4.8 ............50 Protection of minority shareholders’ interests ......... 4.6 ............41 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.2 ............70 Quality of roads ...................................................... 3.7 ............84 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.9 ............42 Quality of air transport infrastructure....................... 4.9 ............48 Available airline seat km/week, millions* ............. 145.0 ............73 Quality of electricity supply ..................................... 4.4 ............83 Mobile telephone subscriptions/100 pop.* ......... 100.4 ............93 Fixed telephone lines/100 pop.* ............................. 8.9 ............92 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.1 ............21 Gross national savings, % GDP* .......................... 10.4 ..........127 Inflation, annual % change* .................................... 9.4 ..........132 General government debt, % GDP* ................... 138.9 ..........140 Country credit rating, 0–100 (best)* ...................... 26.8 ..........116 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 6.6 ............17 Business impact of tuberculosis ............................. 5.9 ............61 HIV prevalence, % adult pop.* ............................... 1.7 ..........122 Business impact of HIV/AIDS ................................. 4.7 ............99 Infant mortality, deaths/1,000 live births* .............. 14.4 ............73 Life expectancy, years*......................................... 73.3 ............81 Quality of primary education ................................... 3.8 ............75 Primary education enrollment, net %* .................. 92.1 ............87 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 88.6 ............74 Tertiary education enrollment, gross %*................ 30.8 ............79 Quality of the education system ............................. 3.7 ............70 Quality of math and science education .................. 3.5 ..........101 Quality of management schools ............................. 4.4 ............57 Internet access in schools ...................................... 4.0 ............83 Availability of research and training services ........... 3.9 ............86 Extent of staff training ............................................ 4.1 ............59 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 3.6 ............88 Prevalence of trade barriers ................................... 5.0 ............11 Trade tariffs, % duty* .............................................. 8.6 ............94 Prevalence of foreign ownership............................. 5.0 ............47 Business impact of rules on FDI ............................. 4.1 ..........100 Burden of customs procedures .............................. 3.6 ............97 Imports as a percentage of GDP* ........................ 56.8 ............48 Degree of customer orientation .............................. 3.8 ..........118 Buyer sophistication ............................................... 3.5 ............65 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............75 Flexibility of wage determination ............................. 5.4 ............38 Hiring and firing practices ....................................... 4.1 ............55 Redundancy costs, weeks of salary* .................... 14.0 ............65 Effect of taxation on incentives to work .................. 3.3 ..........102 Pay and productivity............................................... 3.4 ..........115 Reliance on professional management ................... 4.5 ............46 Country capacity to retain talent............................. 2.9 ..........105 Country capacity to attract talent ........................... 3.2 ............88 Women in labor force, ratio to men* ..................... 0.83 ............64 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.6 ............61 Affordability of financial services ............................. 4.0 ............80 Financing through local equity market .................... 4.3 ............28 Ease of access to loans ......................................... 2.2 ..........119 Venture capital availability ....................................... 2.2 ..........117 Soundness of banks .............................................. 5.3 ............53 Regulation of securities exchanges ........................ 5.0 ............28 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.4 ............43 Firm-level technology absorption ............................ 4.7 ............61 FDI and technology transfer ................................... 4.6 ............69 Individuals using Internet, %* ............................... 37.8 ............88 Fixed broadband Internet subscriptions/100 pop.* ... 4.8 ............82 Int’l Internet bandwidth, kb/s per user* ................ 32.3 ............69 Mobile broadband subscriptions/100 pop.*.......... 28.3 ............69 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.7 ..........102 Foreign market size index, 1–7 (best)* .................... 3.5 ..........115 GDP (PPP$ billions)* ............................................ 25.2 ..........112 Exports as a percentage of GDP* ........................ 29.4 ............98 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............85 Local supplier quality.............................................. 4.4 ............73 State of cluster development.................................. 3.7 ............82 Nature of competitive advantage ............................ 4.0 ............41 Value chain breadth................................................ 3.7 ............76 Control of international distribution ......................... 3.7 ..........106 Production process sophistication.......................... 3.7 ............80 Extent of marketing ................................................ 4.2 ............67 Willingness to delegate authority ............................ 3.6 ............77 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............53 Quality of scientific research institutions ................. 4.1 ............49 Company spending on R&D................................... 3.0 ............83 University-industry collaboration in R&D ................. 3.8 ............56 Gov’t procurement of advanced tech products ...... 2.9 ..........115 Availability of scientists and engineers .................... 3.5 ..........108 PCT patents, applications/million pop.* .................. 0.6 ............74 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............39 Extent of market dominance .................................. 3.5 ............89 Effectiveness of anti-monopoly policy ..................... 4.4 ............41 Effect of taxation on incentives to invest................. 3.2 ..........117 Total tax rate, % profits* ....................................... 44.3 ............99 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 225 2.1: Country/Economy Profiles Japan Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ...................................... 127.3 GDP (US$ billions) ..................................... 4,901.5 GDP per capita (US$) ................................. 38,491 GDP (PPP) as share (%) of world total ............ 5.40 Japan 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ........................................................ 6 ..... 5.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ....................................... 9 ......5.4 GCI 2012–2013 (out of 144) ..................................... 10 ......5.4 GCI 2011–2012 (out of 142) ....................................... 9 ......5.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................25 ......5.5 7 Innovation Institutions ................................................................ 11 ......5.5 Infrastructure .............................................................. 6 ......6.1 Macroeconomic environment ................................. 127 ......3.6 Health and primary education ..................................... 6 ......6.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .......................................7 ......5.4 Market size Higher education and training ................................... 21 ......5.4 Goods market efficiency .......................................... 12 ......5.2 Labor market efficiency ............................................ 22 ......4.7 Financial market development .................................. 16 ......5.0 Technological readiness ............................................ 20 ......5.6 Market size ................................................................. 4 ......6.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) .............2 ......5.7 Business sophistication ............................................. 1 ......5.8 Innovation ................................................................... 4 ......5.5 Japan Advanced economies The most problematic factors for doing business Tax rates............................................................................26.0 Restrictive labor regulations ...............................................18.7 Insufficient capacity to innovate .........................................15.2 Inefficient government bureaucracy ...................................13.9 Policy instability ...................................................................8.1 Tax regulations ....................................................................5.8 Government instability/coups ..............................................4.9 Inadequate supply of infrastructure ......................................1.3 Inadequately educated workforce ........................................1.3 Inflation ................................................................................1.3 Access to financing .............................................................1.2 Poor work ethic in national labor force ................................1.1 Crime and theft ...................................................................0.6 Foreign currency regulations ................................................0.4 Corruption ...........................................................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 226 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Japan The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.9 ............11 Intellectual property protection ............................... 6.0 ..............7 Diversion of public funds ........................................ 5.6 ............14 Public trust in politicians ......................................... 4.5 ............21 Irregular payments and bribes ................................ 6.2 ............11 Judicial independence............................................ 6.2 ..............8 Favoritism in decisions of government officials ....... 5.1 ..............7 Wastefulness of government spending ................... 4.1 ............22 Burden of government regulation ........................... 3.5 ............64 Efficiency of legal framework in settling disputes .... 5.2 ............18 Efficiency of legal framework in challenging regs. ... 4.4 ............19 Transparency of government policymaking............. 5.3 ............11 Business costs of terrorism .................................... 5.1 ............80 Business costs of crime and violence..................... 5.2 ............33 Organized crime ..................................................... 5.2 ............52 Reliability of police services .................................... 6.0 ............17 Ethical behavior of firms ......................................... 6.0 ..............7 Strength of auditing and reporting standards ......... 5.9 ............11 Efficacy of corporate boards .................................. 5.4 ............18 Protection of minority shareholders’ interests ......... 5.3 ............14 Strength of investor protection, 0–10 (best)* .......... 7.0 ............16 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.2 ..............9 Quality of roads ...................................................... 5.9 ............10 Quality of railroad infrastructure .............................. 6.7 ..............1 Quality of port infrastructure ................................... 5.3 ............26 Quality of air transport infrastructure....................... 5.5 ............27 Available airline seat km/week, millions* .......... 5,620.9 ..............4 Quality of electricity supply ..................................... 6.3 ............25 Mobile telephone subscriptions/100 pop.* ......... 115.2 ............64 Fixed telephone lines/100 pop.* ........................... 50.4 ............12 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –8.4 ..........136 Gross national savings, % GDP* .......................... 21.7 ............58 Inflation, annual % change* .................................... 0.4 ............62 General government debt, % GDP* ................... 243.2 ..........143 Country credit rating, 0–100 (best)* ...................... 81.6 ............18 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 19.0 ............44 Business impact of tuberculosis ............................. 6.2 ............43 HIV prevalence, % adult pop.* ............................. <0.1 ..............1 Business impact of HIV/AIDS ................................. 6.1 ............35 Infant mortality, deaths/1,000 live births* ................ 2.2 ..............4 Life expectancy, years*......................................... 83.1 ..............2 Quality of primary education ................................... 5.5 ............10 Primary education enrollment, net %* .................. 99.9 ..............3 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 101.8 ............25 Tertiary education enrollment, gross %*................ 61.5 ............39 Quality of the education system ............................. 4.4 ............33 Quality of math and science education .................. 5.1 ............21 Quality of management schools ............................. 4.2 ............72 Internet access in schools ...................................... 5.3 ............37 Availability of research and training services ........... 5.6 ..............9 Extent of staff training ............................................ 5.4 ..............2 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 22.0 ............98 Agricultural policy costs.......................................... 3.0 ..........131 Prevalence of trade barriers ................................... 4.0 ..........116 Trade tariffs, % duty* .............................................. 2.2 ............37 Prevalence of foreign ownership............................. 5.3 ............27 Business impact of rules on FDI ............................. 4.6 ............58 Burden of customs procedures .............................. 5.1 ............24 Imports as a percentage of GDP* ........................ 20.3 ..........135 Degree of customer orientation .............................. 6.3 ..............1 Buyer sophistication ............................................... 5.3 ..............1 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.6 ..............6 Flexibility of wage determination ............................. 5.9 ..............9 Hiring and firing practices ....................................... 2.8 ..........133 Redundancy costs, weeks of salary* ...................... 4.3 ..............8 Effect of taxation on incentives to work .................. 3.8 ............61 Pay and productivity............................................... 4.8 ............11 Reliance on professional management ................... 5.5 ............18 Country capacity to retain talent............................. 4.4 ............24 Country capacity to attract talent ........................... 3.3 ............79 Women in labor force, ratio to men* ..................... 0.75 ............88 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.3 ............27 Affordability of financial services ............................. 5.1 ............29 Financing through local equity market .................... 4.9 ............12 Ease of access to loans ......................................... 3.7 ............19 Venture capital availability ....................................... 3.4 ............24 Soundness of banks .............................................. 5.7 ............33 Regulation of securities exchanges ........................ 5.5 ............15 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.2 ............14 Firm-level technology absorption ............................ 6.1 ..............2 FDI and technology transfer ................................... 4.7 ............55 Individuals using Internet, %* ............................... 86.3 ............12 Fixed broadband Internet subscriptions/100 pop.* . 28.8 ............18 Int’l Internet bandwidth, kb/s per user* ................ 39.2 ............64 Mobile broadband subscriptions/100 pop.*........ 120.5 ..............3 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 6.1 ..............4 Foreign market size index, 1–7 (best)* .................... 6.2 ..............7 GDP (PPP$ billions)* ....................................... 4,698.8 ..............4 Exports as a percentage of GDP* ........................ 17.5 ..........132 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 6.3 ..............1 Local supplier quality.............................................. 6.2 ..............1 State of cluster development.................................. 5.3 ..............8 Nature of competitive advantage ............................ 6.4 ..............1 Value chain breadth................................................ 6.1 ..............1 Control of international distribution ......................... 5.6 ..............1 Production process sophistication.......................... 6.4 ..............2 Extent of marketing ................................................ 5.6 ..............8 Willingness to delegate authority ............................ 4.7 ............21 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.4 ..............7 Quality of scientific research institutions ................. 5.8 ..............7 Company spending on R&D................................... 5.8 ..............2 University-industry collaboration in R&D ................. 5.0 ............16 Gov’t procurement of advanced tech products ...... 4.1 ............21 Availability of scientists and engineers .................... 5.4 ..............3 PCT patents, applications/million pop.* .............. 308.2 ..............2 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 6.4 ..............1 Extent of market dominance .................................. 5.7 ..............2 Effectiveness of anti-monopoly policy ..................... 5.4 ..............4 Effect of taxation on incentives to invest................. 3.7 ............71 Total tax rate, % profits* ....................................... 49.7 ..........114 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 227 2.1: Country/Economy Profiles Jordan Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 6.5 GDP (US$ billions) .......................................... 33.9 GDP per capita (US$) ................................... 5,174 GDP (PPP) as share (%) of world total ............ 0.05 Jordan 8,000 Middle East, North Africa, and Pakistan 7,000 6,000 5,000 4,000 3,000 2,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 64 ..... 4.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 68 ......4.2 GCI 2012–2013 (out of 144) ..................................... 64 ......4.2 GCI 2011–2012 (out of 142) ..................................... 71 ......4.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................73 ......4.5 Innovation Institutions ................................................................ 37 ......4.5 Infrastructure ............................................................ 71 ......4.1 Macroeconomic environment ................................. 131 ......3.4 Health and primary education ................................... 47 ......6.1 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................70 ......4.1 Market size Higher education and training ................................... 48 ......4.8 Goods market efficiency .......................................... 40 ......4.6 Labor market efficiency ............................................ 94 ......4.0 Financial market development .................................. 66 ......4.1 Technological readiness ............................................ 73 ......3.7 Market size ............................................................... 88 ......3.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........42 ......4.0 Business sophistication ........................................... 42 ......4.4 Innovation ................................................................. 41 ......3.6 Jordan Middle East, North Africa, and Pakistan The most problematic factors for doing business Restrictive labor regulations ...............................................13.4 Corruption .........................................................................12.2 Tax regulations ....................................................................9.7 Tax rates..............................................................................9.5 Access to financing .............................................................9.5 Inefficient government bureaucracy .....................................8.2 Inadequately educated workforce ........................................6.6 Inadequate supply of infrastructure ......................................6.1 Inflation ................................................................................5.1 Crime and theft ...................................................................3.9 Foreign currency regulations ................................................3.6 Poor work ethic in national labor force ................................3.4 Government instability/coups ..............................................2.8 Policy instability ...................................................................2.8 Insufficient capacity to innovate ...........................................1.6 Poor public health ...............................................................1.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 228 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Jordan The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.1 ............34 Intellectual property protection ............................... 4.6 ............34 Diversion of public funds ........................................ 4.0 ............43 Public trust in politicians ......................................... 3.6 ............41 Irregular payments and bribes ................................ 4.6 ............46 Judicial independence............................................ 4.5 ............46 Favoritism in decisions of government officials ....... 3.8 ............34 Wastefulness of government spending ................... 3.8 ............32 Burden of government regulation ........................... 3.9 ............33 Efficiency of legal framework in settling disputes .... 4.4 ............31 Efficiency of legal framework in challenging regs. ... 4.4 ............22 Transparency of government policymaking............. 4.6 ............30 Business costs of terrorism .................................... 5.0 ............84 Business costs of crime and violence..................... 5.1 ............41 Organized crime ..................................................... 5.6 ............37 Reliability of police services .................................... 5.3 ............31 Ethical behavior of firms ......................................... 4.6 ............36 Strength of auditing and reporting standards ......... 4.9 ............54 Efficacy of corporate boards .................................. 4.3 ............92 Protection of minority shareholders’ interests ......... 4.7 ............39 Strength of investor protection, 0–10 (best)* .......... 3.0 ..........130 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.8 ............48 Quality of roads ...................................................... 4.1 ............61 Quality of railroad infrastructure .............................. 2.2 ............81 Quality of port infrastructure ................................... 4.1 ............72 Quality of air transport infrastructure....................... 4.8 ............55 Available airline seat km/week, millions* ............. 191.5 ............66 Quality of electricity supply ..................................... 5.4 ............49 Mobile telephone subscriptions/100 pop.* ......... 141.8 ............31 Fixed telephone lines/100 pop.* ............................. 5.2 ..........105 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.3 ..........110 Gross national savings, % GDP* ............................ 9.6 ..........130 Inflation, annual % change* .................................... 5.5 ............98 General government debt, % GDP* ..................... 87.7 ..........123 Country credit rating, 0–100 (best)* ...................... 42.0 ............76 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 5.8 ............12 Business impact of tuberculosis ............................. 5.7 ............66 HIV prevalence, % adult pop.* ............................. <0.2 ..............1 Business impact of HIV/AIDS ................................. 5.7 ............68 Infant mortality, deaths/1,000 live births* .............. 16.4 ............80 Life expectancy, years*......................................... 73.7 ............77 Quality of primary education ................................... 4.4 ............52 Primary education enrollment, net %* .................. 97.1 ............44 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 87.8 ............77 Tertiary education enrollment, gross %*................ 46.6 ............57 Quality of the education system ............................. 4.6 ............24 Quality of math and science education .................. 4.6 ............39 Quality of management schools ............................. 4.7 ............43 Internet access in schools ...................................... 5.0 ............46 Availability of research and training services ........... 4.6 ............41 Extent of staff training ............................................ 4.1 ............58 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 12.0 ............62 Agricultural policy costs.......................................... 3.9 ............58 Prevalence of trade barriers ................................... 4.3 ............85 Trade tariffs, % duty* ............................................ 10.5 ..........107 Prevalence of foreign ownership............................. 4.6 ............66 Business impact of rules on FDI ............................. 4.4 ............73 Burden of customs procedures .............................. 4.5 ............44 Imports as a percentage of GDP* ........................ 77.7 ............26 Degree of customer orientation .............................. 4.9 ............47 Buyer sophistication ............................................... 3.6 ............53 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.6 ............44 Flexibility of wage determination ............................. 5.0 ............73 Hiring and firing practices ....................................... 4.0 ............60 Redundancy costs, weeks of salary* ...................... 4.3 ............13 Effect of taxation on incentives to work .................. 3.3 ............95 Pay and productivity............................................... 4.3 ............44 Reliance on professional management ................... 4.2 ............72 Country capacity to retain talent............................. 3.9 ............43 Country capacity to attract talent ........................... 4.0 ............35 Women in labor force, ratio to men* ..................... 0.23 ..........142 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.7 ............58 Affordability of financial services ............................. 4.5 ............47 Financing through local equity market .................... 4.2 ............35 Ease of access to loans ......................................... 3.6 ............25 Venture capital availability ....................................... 3.5 ............23 Soundness of banks .............................................. 5.2 ............57 Regulation of securities exchanges ........................ 4.7 ............42 Legal rights index, 0–10 (best)* ................................. 2 ..........137 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.4 ............41 Firm-level technology absorption ............................ 5.3 ............36 FDI and technology transfer ................................... 5.0 ............33 Individuals using Internet, %* ............................... 44.2 ............76 Fixed broadband Internet subscriptions/100 pop.* ... 2.8 ............90 Int’l Internet bandwidth, kb/s per user* .................. 4.0 ..........123 Mobile broadband subscriptions/100 pop.*.......... 16.1 ............85 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.1 ............88 Foreign market size index, 1–7 (best)* .................... 3.9 ............95 GDP (PPP$ billions)* ............................................ 40.0 ............95 Exports as a percentage of GDP* ........................ 38.6 ............70 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.9 ............36 Local supplier quality.............................................. 4.4 ............64 State of cluster development.................................. 4.5 ............29 Nature of competitive advantage ............................ 4.3 ............32 Value chain breadth................................................ 4.1 ............46 Control of international distribution ......................... 4.5 ............33 Production process sophistication.......................... 4.3 ............47 Extent of marketing ................................................ 4.4 ............55 Willingness to delegate authority ............................ 4.4 ............31 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.9 ............58 Quality of scientific research institutions ................. 3.9 ............57 Company spending on R&D................................... 3.5 ............45 University-industry collaboration in R&D ................. 3.8 ............52 Gov’t procurement of advanced tech products ...... 3.9 ............35 Availability of scientists and engineers .................... 5.0 ............13 PCT patents, applications/million pop.* .................. 0.5 ............82 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.2 ............57 Extent of market dominance .................................. 4.3 ............31 Effectiveness of anti-monopoly policy ..................... 4.5 ............39 Effect of taxation on incentives to invest................. 4.0 ............42 Total tax rate, % profits* ....................................... 28.9 ............34 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 229 2.1: Country/Economy Profiles Kazakhstan Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 17.2 GDP (US$ billions) ........................................ 220.3 GDP per capita (US$) ................................. 12,843 GDP (PPP) as share (%) of world total ............ 0.28 Kazakhstan 15,000 Commonwealth of Independent States 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 50 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 50 ......4.4 GCI 2012–2013 (out of 144) ..................................... 51 ......4.4 GCI 2011–2012 (out of 142) ..................................... 72 ......4.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (37.7%) .......................................51 ......4.8 Innovation Institutions ................................................................ 57 ......4.0 Infrastructure ............................................................ 62 ......4.2 Macroeconomic environment ................................... 27 ......5.7 Health and primary education ................................... 96 ......5.4 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................48 ......4.3 Market size Higher education and training ................................... 62 ......4.5 Goods market efficiency .......................................... 54 ......4.5 Labor market efficiency ............................................ 15 ......4.9 Financial market development .................................. 98 ......3.7 Technological readiness ............................................ 61 ......4.2 Market size ............................................................... 52 ......4.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (12.3%) ...........89 ......3.5 Business sophistication ........................................... 91 ......3.8 Innovation ................................................................. 85 ......3.1 Kazakhstan Commonwealth of Independent States The most problematic factors for doing business Corruption .........................................................................16.7 Access to financing ...........................................................14.6 Inefficient government bureaucracy .....................................8.0 Tax regulations ....................................................................7.8 Inadequate supply of infrastructure ......................................7.4 Inflation ................................................................................6.9 Inadequately educated workforce ........................................6.8 Insufficient capacity to innovate ...........................................6.1 Tax rates..............................................................................5.9 Foreign currency regulations ................................................4.7 Crime and theft ...................................................................4.3 Restrictive labor regulations .................................................3.9 Poor work ethic in national labor force ................................3.4 Government instability/coups ..............................................2.6 Policy instability ...................................................................0.7 Poor public health ...............................................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 230 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Kazakhstan The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.1 ............70 Intellectual property protection ............................... 3.7 ............74 Diversion of public funds ........................................ 3.4 ............61 Public trust in politicians ......................................... 3.7 ............34 Irregular payments and bribes ................................ 3.8 ............80 Judicial independence............................................ 3.4 ............86 Favoritism in decisions of government officials ....... 3.3 ............53 Wastefulness of government spending ................... 3.7 ............40 Burden of government regulation ........................... 3.5 ............63 Efficiency of legal framework in settling disputes .... 3.8 ............59 Efficiency of legal framework in challenging regs. ... 3.5 ............60 Transparency of government policymaking............. 4.5 ............40 Business costs of terrorism .................................... 5.3 ............68 Business costs of crime and violence..................... 4.8 ............53 Organized crime ..................................................... 4.7 ............74 Reliability of police services .................................... 3.8 ............91 Ethical behavior of firms ......................................... 4.3 ............48 Strength of auditing and reporting standards ......... 4.5 ............79 Efficacy of corporate boards .................................. 4.7 ............61 Protection of minority shareholders’ interests ......... 4.1 ............69 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.4 ............62 Quality of roads ...................................................... 3.0 ..........113 Quality of railroad infrastructure .............................. 4.2 ............28 Quality of port infrastructure ................................... 2.7 ..........123 Quality of air transport infrastructure....................... 4.0 ............85 Available airline seat km/week, millions* ............. 252.3 ............57 Quality of electricity supply ..................................... 4.7 ............78 Mobile telephone subscriptions/100 pop.* ......... 180.5 ..............4 Fixed telephone lines/100 pop.* ........................... 26.7 ............43 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 5.0 ..............9 Gross national savings, % GDP* .......................... 25.6 ............37 Inflation, annual % change* .................................... 5.8 ..........107 General government debt, % GDP* ..................... 13.5 ............11 Country credit rating, 0–100 (best)* ...................... 60.4 ............48 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ..................... 137.0 ..........102 Business impact of tuberculosis ............................. 4.4 ..........111 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 5.2 ............81 Infant mortality, deaths/1,000 live births* .............. 16.7 ............81 Life expectancy, years*......................................... 69.6 ............99 Quality of primary education ................................... 4.1 ............64 Primary education enrollment, net %* .................. 85.6 ..........116 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 97.7 ............42 Tertiary education enrollment, gross %*................ 44.5 ............62 Quality of the education system ............................. 3.6 ............76 Quality of math and science education .................. 4.1 ............72 Quality of management schools ............................. 3.9 ............92 Internet access in schools ...................................... 4.7 ............56 Availability of research and training services ........... 4.2 ............66 Extent of staff training ............................................ 4.1 ............62 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 12.0 ............62 Agricultural policy costs.......................................... 3.9 ............57 Prevalence of trade barriers ................................... 4.4 ............63 Trade tariffs, % duty* .............................................. 9.4 ..........101 Prevalence of foreign ownership............................. 4.0 ..........111 Business impact of rules on FDI ............................. 4.4 ............78 Burden of customs procedures .............................. 3.9 ............77 Imports as a percentage of GDP* ........................ 27.7 ..........123 Degree of customer orientation .............................. 4.6 ............65 Buyer sophistication ............................................... 4.0 ............28 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.5 ............49 Flexibility of wage determination ............................. 5.7 ............20 Hiring and firing practices ....................................... 4.4 ............22 Redundancy costs, weeks of salary* ...................... 8.7 ............26 Effect of taxation on incentives to work .................. 3.9 ............43 Pay and productivity............................................... 4.7 ............16 Reliance on professional management ................... 4.2 ............75 Country capacity to retain talent............................. 3.4 ............71 Country capacity to attract talent ........................... 3.9 ............37 Women in labor force, ratio to men* ..................... 0.91 ............25 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.5 ............65 Affordability of financial services ............................. 4.3 ............55 Financing through local equity market .................... 3.1 ............87 Ease of access to loans ......................................... 3.2 ............43 Venture capital availability ....................................... 3.0 ............47 Soundness of banks .............................................. 4.2 ..........108 Regulation of securities exchanges ........................ 3.8 ............86 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.4 ............93 Firm-level technology absorption ............................ 4.4 ............90 FDI and technology transfer ................................... 4.1 ..........107 Individuals using Internet, %* ............................... 54.0 ............61 Fixed broadband Internet subscriptions/100 pop.* . 11.6 ............58 Int’l Internet bandwidth, kb/s per user* ................ 49.8 ............54 Mobile broadband subscriptions/100 pop.*.......... 56.6 ............34 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.0 ............52 Foreign market size index, 1–7 (best)* .................... 4.9 ............49 GDP (PPP$ billions)* .......................................... 246.9 ............51 Exports as a percentage of GDP* ........................ 39.6 ............68 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.2 ..........103 Local supplier quality.............................................. 3.9 ..........108 State of cluster development.................................. 3.2 ..........116 Nature of competitive advantage ............................ 3.3 ............84 Value chain breadth................................................ 3.3 ..........109 Control of international distribution ......................... 3.8 ............91 Production process sophistication.......................... 3.8 ............72 Extent of marketing ................................................ 4.3 ............65 Willingness to delegate authority ............................ 3.9 ............55 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............69 Quality of scientific research institutions ................. 3.2 ............99 Company spending on R&D................................... 3.1 ............68 University-industry collaboration in R&D ................. 3.3 ............88 Gov’t procurement of advanced tech products ...... 3.4 ............74 Availability of scientists and engineers .................... 3.9 ............83 PCT patents, applications/million pop.* .................. 1.0 ............70 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.6 ..........111 Extent of market dominance .................................. 3.8 ............68 Effectiveness of anti-monopoly policy ..................... 3.8 ............94 Effect of taxation on incentives to invest................. 4.0 ............37 Total tax rate, % profits* ....................................... 28.6 ............33 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 231 2.1: Country/Economy Profiles Kenya Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 44.4 GDP (US$ billions) .......................................... 45.1 GDP per capita (US$) ................................... 1,016 GDP (PPP) as share (%) of world total ............ 0.09 Kenya 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 90 ..... 3.9 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 96 ......3.8 GCI 2012–2013 (out of 144) ................................... 106 ......3.7 GCI 2011–2012 (out of 142) ................................... 102 ......3.8 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................115 ......3.8 7 Innovation Institutions ................................................................ 78 ......3.7 Infrastructure ............................................................ 96 ......3.3 Macroeconomic environment ................................. 126 ......3.7 Health and primary education ................................. 120 ......4.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) .....................................66 ......4.1 Market size Higher education and training ................................... 95 ......3.8 Goods market efficiency .......................................... 62 ......4.4 Labor market efficiency ............................................ 25 ......4.7 Financial market development .................................. 24 ......4.8 Technological readiness ............................................ 87 ......3.5 Market size ............................................................... 74 ......3.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............40 ......4.0 Business sophistication ........................................... 44 ......4.4 Innovation ................................................................. 38 ......3.7 Kenya Sub-Saharan Africa The most problematic factors for doing business Corruption .........................................................................20.0 Access to financing ...........................................................18.1 Crime and theft .................................................................10.3 Inadequate supply of infrastructure ......................................9.9 Tax rates..............................................................................9.9 Inefficient government bureaucracy .....................................8.2 Inflation ................................................................................6.8 Policy instability ...................................................................3.5 Tax regulations ....................................................................3.3 Restrictive labor regulations .................................................2.9 Insufficient capacity to innovate ...........................................1.6 Poor work ethic in national labor force ................................1.4 Inadequately educated workforce ........................................1.3 Poor public health ...............................................................1.0 Foreign currency regulations ................................................0.9 Government instability/coups ..............................................0.9 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 232 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Kenya The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.2 ............65 Intellectual property protection ............................... 3.7 ............69 Diversion of public funds ........................................ 3.0 ............83 Public trust in politicians ......................................... 3.0 ............69 Irregular payments and bribes ................................ 3.2 ..........108 Judicial independence............................................ 4.1 ............52 Favoritism in decisions of government officials ....... 3.0 ............75 Wastefulness of government spending ................... 3.3 ............61 Burden of government regulation ........................... 3.6 ............48 Efficiency of legal framework in settling disputes .... 4.1 ............47 Efficiency of legal framework in challenging regs. ... 3.8 ............42 Transparency of government policymaking............. 4.1 ............58 Business costs of terrorism .................................... 3.0 ..........135 Business costs of crime and violence..................... 3.0 ..........129 Organized crime ..................................................... 3.7 ..........125 Reliability of police services .................................... 3.9 ............85 Ethical behavior of firms ......................................... 3.9 ............73 Strength of auditing and reporting standards ......... 4.7 ............68 Efficacy of corporate boards .................................. 4.8 ............55 Protection of minority shareholders’ interests ......... 4.3 ............60 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.3 ............65 Quality of roads ...................................................... 4.2 ............59 Quality of railroad infrastructure .............................. 2.5 ............71 Quality of port infrastructure ................................... 4.3 ............61 Quality of air transport infrastructure....................... 4.8 ............54 Available airline seat km/week, millions* ............. 301.4 ............53 Quality of electricity supply ..................................... 3.9 ............95 Mobile telephone subscriptions/100 pop.* ........... 70.6 ..........122 Fixed telephone lines/100 pop.* ............................. 0.5 ..........133 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –6.2 ..........124 Gross national savings, % GDP* .......................... 12.2 ..........121 Inflation, annual % change* .................................... 5.7 ..........100 General government debt, % GDP* ..................... 50.5 ............88 Country credit rating, 0–100 (best)* ...................... 34.6 ............94 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 8,106.0 ............54 Business impact of malaria .................................... 4.5 ............44 Tuberculosis cases/100,000 pop.* ..................... 272.0 ..........128 Business impact of tuberculosis ............................. 4.6 ..........102 HIV prevalence, % adult pop.* ............................... 6.1 ..........133 Business impact of HIV/AIDS ................................. 4.0 ..........125 Infant mortality, deaths/1,000 live births* .............. 48.7 ..........123 Life expectancy, years*......................................... 61.1 ..........122 Quality of primary education ................................... 3.8 ............79 Primary education enrollment, net %* .................. 81.8 ..........125 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 60.1 ..........113 Tertiary education enrollment, gross %*.................. 4.0 ..........133 Quality of the education system ............................. 4.5 ............30 Quality of math and science education .................. 4.0 ............76 Quality of management schools ............................. 4.7 ............44 Internet access in schools ...................................... 4.1 ............79 Availability of research and training services ........... 4.8 ............32 Extent of staff training ............................................ 4.4 ............34 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 32.0 ..........112 Agricultural policy costs.......................................... 4.0 ............50 Prevalence of trade barriers ................................... 4.0 ..........110 Trade tariffs, % duty* .............................................. 8.8 ............98 Prevalence of foreign ownership............................. 4.5 ............78 Business impact of rules on FDI ............................. 4.4 ............70 Burden of customs procedures .............................. 3.6 ............92 Imports as a percentage of GDP* ........................ 45.5 ............75 Degree of customer orientation .............................. 5.1 ............35 Buyer sophistication ............................................... 3.2 ............89 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............70 Flexibility of wage determination ............................. 5.0 ............69 Hiring and firing practices ....................................... 4.5 ............17 Redundancy costs, weeks of salary* ...................... 6.5 ............17 Effect of taxation on incentives to work .................. 3.6 ............75 Pay and productivity............................................... 4.1 ............56 Reliance on professional management ................... 4.8 ............34 Country capacity to retain talent............................. 3.8 ............47 Country capacity to attract talent ........................... 3.7 ............55 Women in labor force, ratio to men* ..................... 0.86 ............48 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.7 ............56 Affordability of financial services ............................. 4.2 ............64 Financing through local equity market .................... 4.3 ............30 Ease of access to loans ......................................... 3.4 ............33 Venture capital availability ....................................... 3.1 ............43 Soundness of banks .............................................. 5.3 ............54 Regulation of securities exchanges ........................ 4.6 ............47 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.1 ............55 Firm-level technology absorption ............................ 4.8 ............56 FDI and technology transfer ................................... 4.7 ............59 Individuals using Internet, %* ............................... 39.0 ............85 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........124 Int’l Internet bandwidth, kb/s per user* ................ 49.9 ............53 Mobile broadband subscriptions/100 pop.*............ 3.0 ..........115 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.5 ............70 Foreign market size index, 1–7 (best)* .................... 4.0 ............88 GDP (PPP$ billions)* ............................................ 80.4 ............75 Exports as a percentage of GDP* ........................ 24.5 ..........116 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.2 ............19 Local supplier quality.............................................. 4.7 ............47 State of cluster development.................................. 4.2 ............41 Nature of competitive advantage ............................ 3.8 ............51 Value chain breadth................................................ 4.3 ............36 Control of international distribution ......................... 4.4 ............40 Production process sophistication.......................... 4.1 ............55 Extent of marketing ................................................ 4.4 ............59 Willingness to delegate authority ............................ 4.1 ............38 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.5 ............33 Quality of scientific research institutions ................. 4.2 ............42 Company spending on R&D................................... 3.8 ............28 University-industry collaboration in R&D ................. 4.2 ............37 Gov’t procurement of advanced tech products ...... 3.7 ............49 Availability of scientists and engineers .................... 4.4 ............44 PCT patents, applications/million pop.* .................. 0.2 ............95 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.7 ............21 Extent of market dominance .................................. 4.1 ............41 Effectiveness of anti-monopoly policy ..................... 4.4 ............42 Effect of taxation on incentives to invest................. 3.6 ............76 Total tax rate, % profits* ....................................... 44.2 ............98 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 233 2.1: Country/Economy Profiles Korea, Rep. Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 50.2 GDP (US$ billions) ..................................... 1,221.8 GDP per capita (US$) ................................. 24,329 GDP (PPP) as share (%) of world total ............ 1.92 Korea, Rep. 50,000 Advanced economies 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 26 ..... 5.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 25 ......5.0 GCI 2012–2013 (out of 144) ..................................... 19 ......5.1 GCI 2011–2012 (out of 142) ..................................... 24 ......5.0 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................20 ......5.5 7 Innovation Institutions ................................................................ 82 ......3.7 Infrastructure ............................................................ 14 ......5.7 Macroeconomic environment ..................................... 7 ......6.4 Health and primary education ................................... 27 ......6.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................25 ......4.8 Market size Higher education and training ................................... 23 ......5.4 Goods market efficiency .......................................... 33 ......4.7 Labor market efficiency ............................................ 86 ......4.1 Financial market development .................................. 80 ......3.8 Technological readiness ............................................ 25 ......5.4 Market size ............................................................... 11 ......5.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........22 ......4.8 Business sophistication ........................................... 27 ......4.7 Innovation ................................................................. 17 ......4.8 Korea, Rep. Advanced economies The most problematic factors for doing business Policy instability .................................................................18.0 Inefficient government bureaucracy ...................................15.5 Access to financing ...........................................................13.9 Restrictive labor regulations ...............................................11.9 Tax regulations ....................................................................8.2 Insufficient capacity to innovate ...........................................7.8 Poor work ethic in national labor force ................................5.6 Corruption ...........................................................................4.3 Tax rates..............................................................................4.2 Inadequate supply of infrastructure ......................................2.7 Foreign currency regulations ................................................2.5 Inflation ................................................................................2.5 Inadequately educated workforce ........................................2.1 Government instability/coups ..............................................0.6 Poor public health ...............................................................0.2 Crime and theft ...................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 234 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Korea, Rep. The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.2 ............64 Intellectual property protection ............................... 3.7 ............68 Diversion of public funds ........................................ 3.3 ............67 Public trust in politicians ......................................... 2.4 ............97 Irregular payments and bribes ................................ 4.4 ............52 Judicial independence............................................ 3.5 ............82 Favoritism in decisions of government officials ....... 2.9 ............82 Wastefulness of government spending ................... 3.2 ............68 Burden of government regulation ........................... 3.2 ............96 Efficiency of legal framework in settling disputes .... 3.5 ............82 Efficiency of legal framework in challenging regs. ... 2.8 ..........113 Transparency of government policymaking............. 3.1 ..........133 Business costs of terrorism .................................... 4.4 ..........115 Business costs of crime and violence..................... 4.3 ............76 Organized crime ..................................................... 4.3 ............93 Reliability of police services .................................... 4.6 ............48 Ethical behavior of firms ......................................... 3.7 ............95 Strength of auditing and reporting standards ......... 4.4 ............84 Efficacy of corporate boards .................................. 3.8 ..........126 Protection of minority shareholders’ interests ......... 3.4 ..........119 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.5 ............23 Quality of roads ...................................................... 5.6 ............18 Quality of railroad infrastructure .............................. 5.6 ............10 Quality of port infrastructure ................................... 5.3 ............27 Quality of air transport infrastructure....................... 5.4 ............31 Available airline seat km/week, millions* .......... 2,293.1 ............20 Quality of electricity supply ..................................... 5.5 ............44 Mobile telephone subscriptions/100 pop.* ......... 111.0 ............72 Fixed telephone lines/100 pop.* ........................... 61.6 ..............3 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 1.0 ............14 Gross national savings, % GDP* .......................... 32.1 ............19 Inflation, annual % change* .................................... 1.3 ..............1 General government debt, % GDP* ..................... 36.7 ............55 Country credit rating, 0–100 (best)* ...................... 79.3 ............22 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 2.7 ............18 Business impact of malaria .................................... 5.5 ............22 Tuberculosis cases/100,000 pop.* ..................... 108.0 ............95 Business impact of tuberculosis ............................. 5.2 ............87 HIV prevalence, % adult pop.* ............................. <0.1 ..............1 Business impact of HIV/AIDS ................................. 5.2 ............80 Infant mortality, deaths/1,000 live births* ................ 3.3 ............16 Life expectancy, years*......................................... 81.4 ............15 Quality of primary education ................................... 4.5 ............44 Primary education enrollment, net %* .................. 99.1 ............12 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 97.2 ............48 Tertiary education enrollment, gross %*................ 98.4 ..............2 Quality of the education system ............................. 3.6 ............73 Quality of math and science education .................. 4.7 ............34 Quality of management schools ............................. 4.2 ............73 Internet access in schools ...................................... 6.2 ............10 Availability of research and training services ........... 4.7 ............36 Extent of staff training ............................................ 4.2 ............53 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 5.5 ............18 Agricultural policy costs.......................................... 3.7 ............80 Prevalence of trade barriers ................................... 4.1 ..........104 Trade tariffs, % duty* .............................................. 8.5 ............93 Prevalence of foreign ownership............................. 4.2 ............99 Business impact of rules on FDI ............................. 4.2 ............86 Burden of customs procedures .............................. 4.4 ............52 Imports as a percentage of GDP* ........................ 50.9 ............62 Degree of customer orientation .............................. 5.5 ............13 Buyer sophistication ............................................... 4.1 ............24 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.6 ..........132 Flexibility of wage determination ............................. 5.2 ............58 Hiring and firing practices ....................................... 3.4 ..........106 Redundancy costs, weeks of salary* .................... 27.4 ..........120 Effect of taxation on incentives to work .................. 3.1 ..........113 Pay and productivity............................................... 4.4 ............36 Reliance on professional management ................... 4.5 ............49 Country capacity to retain talent............................. 4.4 ............23 Country capacity to attract talent ........................... 4.2 ............28 Women in labor force, ratio to men* ..................... 0.72 ............91 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.0 ..........100 Affordability of financial services ............................. 3.9 ............90 Financing through local equity market .................... 3.5 ............65 Ease of access to loans ......................................... 2.2 ..........120 Venture capital availability ....................................... 2.2 ..........107 Soundness of banks .............................................. 3.9 ..........122 Regulation of securities exchanges ........................ 3.7 ............89 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.7 ............30 Firm-level technology absorption ............................ 5.4 ............28 FDI and technology transfer ................................... 4.6 ............73 Individuals using Internet, %* ............................... 84.8 ............15 Fixed broadband Internet subscriptions/100 pop.* . 38.0 ..............5 Int’l Internet bandwidth, kb/s per user* ................ 30.3 ............70 Mobile broadband subscriptions/100 pop.*........ 105.3 ..............7 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.4 ............12 Foreign market size index, 1–7 (best)* .................... 6.2 ..............6 GDP (PPP$ billions)* ....................................... 1,666.8 ............12 Exports as a percentage of GDP* ........................ 55.0 ............38 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.0 ............32 Local supplier quality.............................................. 5.0 ............31 State of cluster development.................................. 4.3 ............31 Nature of competitive advantage ............................ 5.3 ............19 Value chain breadth................................................ 4.7 ............22 Control of international distribution ......................... 4.5 ............29 Production process sophistication.......................... 5.2 ............25 Extent of marketing ................................................ 4.8 ............34 Willingness to delegate authority ............................ 3.8 ............64 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.7 ............24 Quality of scientific research institutions ................. 5.0 ............27 Company spending on R&D................................... 4.5 ............20 University-industry collaboration in R&D ................. 4.6 ............26 Gov’t procurement of advanced tech products ...... 4.1 ............20 Availability of scientists and engineers .................... 4.4 ............42 PCT patents, applications/million pop.* .............. 201.5 ..............8 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.9 ............13 Extent of market dominance .................................. 3.2 ..........120 Effectiveness of anti-monopoly policy ..................... 4.4 ............47 Effect of taxation on incentives to invest................. 3.3 ..........106 Total tax rate, % profits* ....................................... 27.9 ............30 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 235 2.1: Country/Economy Profiles Kuwait Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 3.9 GDP (US$ billions) ........................................ 185.3 GDP per capita (US$) ................................. 47,639 GDP (PPP) as share (%) of world total ............ 0.18 Kuwait 50,000 Middle East, North Africa, and Pakistan 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 40 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 36 ......4.6 GCI 2012–2013 (out of 144) ..................................... 37 ......4.6 GCI 2011–2012 (out of 142) ..................................... 34 ......4.6 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (51.6%) .......................................32 ......5.2 Innovation Institutions ................................................................ 55 ......4.0 Infrastructure ............................................................ 61 ......4.3 Macroeconomic environment ..................................... 3 ......6.7 Health and primary education ................................... 82 ......5.6 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (41.3%) .....................................83 ......3.9 Market size Higher education and training ................................... 81 ......4.2 Goods market efficiency ........................................ 106 ......4.0 Labor market efficiency .......................................... 116 ......3.8 Financial market development .................................. 77 ......3.9 Technological readiness ............................................ 74 ......3.7 Market size ............................................................... 67 ......3.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (7.1%) .............95 ......3.4 Business sophistication ........................................... 76 ......3.9 Innovation ............................................................... 111 ......2.9 Kuwait Middle East, North Africa, and Pakistan The most problematic factors for doing business Inefficient government bureaucracy ...................................17.7 Restrictive labor regulations ...............................................16.7 Corruption .........................................................................14.3 Access to financing ...........................................................10.3 Policy instability ...................................................................9.3 Inadequately educated workforce ........................................8.8 Inadequate supply of infrastructure ......................................7.0 Government instability/coups ..............................................4.5 Poor work ethic in national labor force ................................4.3 Foreign currency regulations ................................................2.0 Insufficient capacity to innovate ...........................................1.7 Crime and theft ...................................................................1.5 Poor public health ...............................................................1.0 Tax regulations ....................................................................0.5 Inflation ................................................................................0.3 Tax rates..............................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 236 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Kuwait The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.4 ............51 Intellectual property protection ............................... 3.5 ............83 Diversion of public funds ........................................ 3.5 ............57 Public trust in politicians ......................................... 3.2 ............56 Irregular payments and bribes ................................ 4.2 ............57 Judicial independence............................................ 4.9 ............37 Favoritism in decisions of government officials ....... 2.9 ............81 Wastefulness of government spending ................... 2.8 ............92 Burden of government regulation ........................... 2.5 ..........135 Efficiency of legal framework in settling disputes .... 3.7 ............65 Efficiency of legal framework in challenging regs. ... 3.7 ............45 Transparency of government policymaking............. 3.6 ..........103 Business costs of terrorism .................................... 5.2 ............72 Business costs of crime and violence..................... 5.2 ............30 Organized crime ..................................................... 5.5 ............43 Reliability of police services .................................... 4.4 ............57 Ethical behavior of firms ......................................... 4.0 ............61 Strength of auditing and reporting standards ......... 4.6 ............73 Efficacy of corporate boards .................................. 3.8 ..........127 Protection of minority shareholders’ interests ......... 4.1 ............73 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.3 ............67 Quality of roads ...................................................... 4.6 ............48 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 3.9 ............82 Quality of air transport infrastructure....................... 3.8 ..........100 Available airline seat km/week, millions* ............. 243.2 ............58 Quality of electricity supply ..................................... 5.0 ............63 Mobile telephone subscriptions/100 pop.* ......... 190.3 ..............3 Fixed telephone lines/100 pop.* ........................... 15.1 ............75 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. 28.9 ..............2 Gross national savings, % GDP* .......................... 55.2 ..............3 Inflation, annual % change* .................................... 2.7 ..............1 General government debt, % GDP* ....................... 5.3 ..............3 Country credit rating, 0–100 (best)* ...................... 77.5 ............24 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 26.0 ............56 Business impact of tuberculosis ............................. 6.2 ............37 HIV prevalence, % adult pop.* ............................. <0.2 ..............1 Business impact of HIV/AIDS ................................. 6.4 ............25 Infant mortality, deaths/1,000 live births* ................ 9.5 ............56 Life expectancy, years*......................................... 74.4 ............68 Quality of primary education ................................... 3.2 ..........104 Primary education enrollment, net %* .................. 92.1 ............86 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 100.3 ............34 Tertiary education enrollment, gross %*................ 40.7 ............67 Quality of the education system ............................. 3.1 ..........105 Quality of math and science education .................. 3.4 ..........102 Quality of management schools ............................. 3.9 ............87 Internet access in schools ...................................... 4.1 ............80 Availability of research and training services ........... 3.6 ..........100 Extent of staff training ............................................ 3.7 ............97 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 12 ..........131 No. days to start a business* ............................... 32.0 ..........112 Agricultural policy costs.......................................... 2.8 ..........140 Prevalence of trade barriers ................................... 3.7 ..........131 Trade tariffs, % duty* .............................................. 4.1 ............57 Prevalence of foreign ownership............................. 3.0 ..........137 Business impact of rules on FDI ............................. 2.6 ..........139 Burden of customs procedures .............................. 3.5 ..........100 Imports as a percentage of GDP* ........................ 24.6 ..........132 Degree of customer orientation .............................. 4.4 ............78 Buyer sophistication ............................................... 3.4 ............72 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.5 ............56 Flexibility of wage determination ............................. 5.2 ............56 Hiring and firing practices ....................................... 3.9 ............75 Redundancy costs, weeks of salary* .................... 28.1 ..........126 Effect of taxation on incentives to work .................. 5.3 ..............7 Pay and productivity............................................... 3.5 ..........104 Reliance on professional management ................... 3.6 ..........112 Country capacity to retain talent............................. 3.4 ............69 Country capacity to attract talent ........................... 3.7 ............53 Women in labor force, ratio to men* ..................... 0.53 ..........124 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.4 ............68 Affordability of financial services ............................. 4.4 ............52 Financing through local equity market .................... 3.9 ............40 Ease of access to loans ......................................... 3.1 ............45 Venture capital availability ....................................... 2.7 ............69 Soundness of banks .............................................. 5.4 ............50 Regulation of securities exchanges ........................ 4.0 ............76 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.9 ............67 Firm-level technology absorption ............................ 4.7 ............62 FDI and technology transfer ................................... 3.2 ..........141 Individuals using Internet, %* ............................... 75.5 ............27 Fixed broadband Internet subscriptions/100 pop.* ... 1.4 ............99 Int’l Internet bandwidth, kb/s per user* .................. 9.8 ..........102 Mobile broadband subscriptions/100 pop.*............ n/a ...........n/a 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.4 ............74 Foreign market size index, 1–7 (best)* .................... 5.0 ............46 GDP (PPP$ billions)* .......................................... 154.5 ............59 Exports as a percentage of GDP* ........................ 69.5 ............29 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............64 Local supplier quality.............................................. 3.9 ..........105 State of cluster development.................................. 3.7 ............81 Nature of competitive advantage ............................ 3.3 ............86 Value chain breadth................................................ 3.4 ..........104 Control of international distribution ......................... 4.8 ............15 Production process sophistication.......................... 3.5 ............99 Extent of marketing ................................................ 4.0 ............90 Willingness to delegate authority ............................ 4.1 ............39 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.0 ..........129 Quality of scientific research institutions ................. 3.2 ..........103 Company spending on R&D................................... 2.6 ..........120 University-industry collaboration in R&D ................. 3.1 ..........108 Gov’t procurement of advanced tech products ...... 2.9 ..........119 Availability of scientists and engineers .................... 4.0 ............77 PCT patents, applications/million pop.* .................. 0.5 ............79 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.5 ..........114 Extent of market dominance .................................. 3.4 ..........100 Effectiveness of anti-monopoly policy ..................... 3.2 ..........131 Effect of taxation on incentives to invest................. 4.6 ............16 Total tax rate, % profits* ....................................... 12.4 ..............4 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 237 2.1: Country/Economy Profiles Kyrgyz Republic Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 5.6 GDP (US$ billions) ............................................ 7.2 GDP per capita (US$) ................................... 1,280 GDP (PPP) as share (%) of world total ............ 0.02 Kyrgyz Republic 15,000 Commonwealth of Independent States 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 108 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 121 ......3.6 GCI 2012–2013 (out of 144) ................................... 127 ......3.4 GCI 2011–2012 (out of 142) ................................... 126 ......3.4 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................110 ......3.9 7 Innovation Institutions .............................................................. 124 ......3.2 Infrastructure .......................................................... 115 ......2.8 Macroeconomic environment ................................. 104 ......4.2 Health and primary education ................................. 101 ......5.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................104 ......3.6 Market size Higher education and training ................................... 91 ......3.9 Goods market efficiency .......................................... 77 ......4.3 Labor market efficiency ............................................ 92 ......4.0 Financial market development .................................. 95 ......3.7 Technological readiness .......................................... 111 ......2.9 Market size ............................................................. 117 ......2.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........126 ......3.0 Business sophistication ......................................... 119 ......3.4 Innovation ............................................................... 132 ......2.5 Kyrgyz Republic Commonwealth of Independent States The most problematic factors for doing business Government instability/coups ............................................20.2 Corruption .........................................................................17.4 Policy instability .................................................................13.1 Inefficient government bureaucracy .....................................8.9 Inadequately educated workforce ........................................6.2 Access to financing .............................................................5.9 Crime and theft ...................................................................5.6 Poor work ethic in national labor force ................................4.6 Tax rates..............................................................................4.6 Inflation ................................................................................4.3 Tax regulations ....................................................................3.9 Insufficient capacity to innovate ...........................................2.6 Inadequate supply of infrastructure ......................................1.7 Foreign currency regulations ................................................0.9 Poor public health ...............................................................0.1 Restrictive labor regulations .................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 238 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Kyrgyz Republic The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.2 ..........125 Intellectual property protection ............................... 2.6 ..........130 Diversion of public funds ........................................ 2.7 ..........105 Public trust in politicians ......................................... 2.3 ..........111 Irregular payments and bribes ................................ 2.6 ..........132 Judicial independence............................................ 2.5 ..........119 Favoritism in decisions of government officials ....... 2.3 ..........123 Wastefulness of government spending ................... 2.4 ..........121 Burden of government regulation ........................... 3.3 ............87 Efficiency of legal framework in settling disputes .... 2.9 ..........122 Efficiency of legal framework in challenging regs. ... 2.6 ..........119 Transparency of government policymaking............. 3.8 ............82 Business costs of terrorism .................................... 4.5 ..........111 Business costs of crime and violence..................... 4.2 ............83 Organized crime ..................................................... 4.0 ..........113 Reliability of police services .................................... 3.1 ..........118 Ethical behavior of firms ......................................... 3.7 ..........103 Strength of auditing and reporting standards ......... 3.8 ..........118 Efficacy of corporate boards .................................. 4.2 ..........103 Protection of minority shareholders’ interests ......... 3.6 ..........101 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.6 ............96 Quality of roads ...................................................... 2.7 ..........123 Quality of railroad infrastructure .............................. 2.6 ............67 Quality of port infrastructure ................................... 1.3 ..........144 Quality of air transport infrastructure....................... 3.2 ..........123 Available airline seat km/week, millions* ............... 77.0 ............90 Quality of electricity supply ..................................... 2.9 ..........115 Mobile telephone subscriptions/100 pop.* ......... 121.4 ............56 Fixed telephone lines/100 pop.* ............................. 8.3 ............96 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.8 ............88 Gross national savings, % GDP* .......................... 13.9 ..........115 Inflation, annual % change* .................................... 6.6 ..........114 General government debt, % GDP* ..................... 47.7 ............82 Country credit rating, 0–100 (best)* ...................... 33.6 ............96 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.0 ..............1 Business impact of malaria .................................... 5.1 ............31 Tuberculosis cases/100,000 pop.* ..................... 141.0 ..........104 Business impact of tuberculosis ............................. 4.2 ..........124 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 4.8 ............95 Infant mortality, deaths/1,000 live births* .............. 23.6 ............96 Life expectancy, years*......................................... 70.0 ............97 Quality of primary education ................................... 3.0 ..........110 Primary education enrollment, net %* .................. 90.5 ..........102 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 88.2 ............76 Tertiary education enrollment, gross %*................ 41.3 ............65 Quality of the education system ............................. 2.9 ..........121 Quality of math and science education .................. 3.0 ..........120 Quality of management schools ............................. 2.9 ..........133 Internet access in schools ...................................... 3.6 ............95 Availability of research and training services ........... 3.5 ..........110 Extent of staff training ............................................ 3.5 ..........113 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 2 ..............3 No. days to start a business* ................................. 8.0 ............39 Agricultural policy costs.......................................... 3.0 ..........126 Prevalence of trade barriers ................................... 4.6 ............37 Trade tariffs, % duty* ............................................ 10.7 ..........109 Prevalence of foreign ownership............................. 4.1 ..........101 Business impact of rules on FDI ............................. 3.9 ..........107 Burden of customs procedures .............................. 3.4 ..........109 Imports as a percentage of GDP* ...................... 109.5 ..............5 Degree of customer orientation .............................. 4.4 ............80 Buyer sophistication ............................................... 3.4 ............71 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............88 Flexibility of wage determination ............................. 5.7 ............16 Hiring and firing practices ....................................... 4.1 ............52 Redundancy costs, weeks of salary* .................... 17.3 ............83 Effect of taxation on incentives to work .................. 3.4 ............92 Pay and productivity............................................... 4.5 ............26 Reliance on professional management ................... 3.3 ..........127 Country capacity to retain talent............................. 2.2 ..........136 Country capacity to attract talent ........................... 2.1 ..........136 Women in labor force, ratio to men* ..................... 0.72 ............94 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.8 ..........108 Affordability of financial services ............................. 3.7 ..........107 Financing through local equity market .................... 2.6 ..........110 Ease of access to loans ......................................... 2.3 ..........115 Venture capital availability ....................................... 2.2 ..........115 Soundness of banks .............................................. 3.7 ..........126 Regulation of securities exchanges ........................ 3.0 ..........124 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.7 ..........131 Firm-level technology absorption ............................ 3.9 ..........118 FDI and technology transfer ................................... 3.9 ..........116 Individuals using Internet, %* ............................... 23.4 ............98 Fixed broadband Internet subscriptions/100 pop.* ... 1.0 ..........107 Int’l Internet bandwidth, kb/s per user* .................. 3.9 ..........125 Mobile broadband subscriptions/100 pop.*.......... 22.7 ............77 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.5 ..........118 Foreign market size index, 1–7 (best)* .................... 3.5 ..........113 GDP (PPP$ billions)* ............................................ 14.7 ..........125 Exports as a percentage of GDP* ........................ 51.5 ............44 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.0 ..........117 Local supplier quality.............................................. 3.8 ..........115 State of cluster development.................................. 3.0 ..........130 Nature of competitive advantage ............................ 3.1 ..........101 Value chain breadth................................................ 3.3 ..........116 Control of international distribution ......................... 3.5 ..........117 Production process sophistication.......................... 3.1 ..........124 Extent of marketing ................................................ 3.9 ............93 Willingness to delegate authority ............................ 3.4 ..........107 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.3 ..........111 Quality of scientific research institutions ................. 2.6 ..........129 Company spending on R&D................................... 2.3 ..........131 University-industry collaboration in R&D ................. 2.6 ..........131 Gov’t procurement of advanced tech products ...... 2.6 ..........134 Availability of scientists and engineers .................... 2.9 ..........136 PCT patents, applications/million pop.* .................. 0.1 ............99 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.6 ..........107 Extent of market dominance .................................. 3.3 ..........109 Effectiveness of anti-monopoly policy ..................... 3.3 ..........123 Effect of taxation on incentives to invest................. 3.4 ............99 Total tax rate, % profits* ....................................... 33.4 ............51 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 239 2.1: Country/Economy Profiles Lao PDR Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 6.8 GDP (US$ billions) .......................................... 10.0 GDP per capita (US$) ................................... 1,477 GDP (PPP) as share (%) of world total ............ 0.02 Lao PDR 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 1994 Emerging and Developing Asia 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 93 ..... 3.9 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 81 ......4.1 GCI 2012–2013 (out of 144) .................................... n/a ......n/a GCI 2011–2012 (out of 142) .................................... n/a ......n/a Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .......................................98 ......4.1 7 Innovation Institutions ................................................................ 63 ......3.9 Infrastructure ............................................................ 94 ......3.4 Macroeconomic environment ................................. 124 ......3.8 Health and primary education ................................... 90 ......5.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................107 ......3.6 Market size Higher education and training ................................. 110 ......3.3 Goods market efficiency .......................................... 59 ......4.4 Labor market efficiency ............................................ 34 ......4.6 Financial market development ................................ 101 ......3.7 Technological readiness .......................................... 115 ......2.8 Market size ............................................................. 121 ......2.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............80 ......3.5 Business sophistication ........................................... 79 ......3.9 Innovation ................................................................. 84 ......3.1 Lao PDR Emerging and Developing Asia The most problematic factors for doing business Inadequately educated workforce ......................................20.3 Access to financing ...........................................................14.7 Inadequate supply of infrastructure ....................................13.3 Corruption ...........................................................................8.6 Poor work ethic in national labor force ................................7.7 Inefficient government bureaucracy .....................................6.5 Tax regulations ....................................................................5.2 Tax rates..............................................................................4.5 Insufficient capacity to innovate ...........................................4.2 Foreign currency regulations ................................................3.8 Inflation ................................................................................2.6 Policy instability ...................................................................2.4 Poor public health ...............................................................1.7 Crime and theft ...................................................................1.6 Restrictive labor regulations .................................................1.6 Government instability/coups ..............................................1.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 240 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Lao PDR The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.8 ............95 Intellectual property protection ............................... 3.6 ............76 Diversion of public funds ........................................ 3.4 ............59 Public trust in politicians ......................................... 3.9 ............29 Irregular payments and bribes ................................ 3.4 ............96 Judicial independence............................................ 3.9 ............61 Favoritism in decisions of government officials ....... 3.7 ............38 Wastefulness of government spending ................... 4.1 ............25 Burden of government regulation ........................... 4.0 ............26 Efficiency of legal framework in settling disputes .... 4.3 ............38 Efficiency of legal framework in challenging regs. ... 2.8 ..........106 Transparency of government policymaking............. 3.5 ..........113 Business costs of terrorism .................................... 5.2 ............78 Business costs of crime and violence..................... 5.0 ............43 Organized crime ..................................................... 4.7 ............71 Reliability of police services .................................... 4.2 ............64 Ethical behavior of firms ......................................... 4.0 ............65 Strength of auditing and reporting standards ......... 3.8 ..........122 Efficacy of corporate boards .................................. 5.1 ............30 Protection of minority shareholders’ interests ......... 4.3 ............58 Strength of investor protection, 0–10 (best)* .......... 1.7 ..........143 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.3 ............66 Quality of roads ...................................................... 4.0 ............68 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.6 ..........129 Quality of air transport infrastructure....................... 4.1 ............82 Available airline seat km/week, millions* ............... 20.7 ..........123 Quality of electricity supply ..................................... 5.0 ............64 Mobile telephone subscriptions/100 pop.* ........... 66.2 ..........130 Fixed telephone lines/100 pop.* ........................... 10.0 ............87 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.7 ..........104 Gross national savings, % GDP* .......................... 16.4 ............94 Inflation, annual % change* .................................... 6.4 ..........111 General government debt, % GDP* ..................... 62.0 ..........102 Country credit rating, 0–100 (best)* ...................... 19.4 ..........132 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 1,655.2 ............45 Business impact of malaria .................................... 4.0 ............53 Tuberculosis cases/100,000 pop.* ..................... 204.0 ..........119 Business impact of tuberculosis ............................. 4.0 ..........130 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 4.2 ..........120 Infant mortality, deaths/1,000 live births* .............. 54.0 ..........126 Life expectancy, years*......................................... 67.8 ..........104 Quality of primary education ................................... 3.7 ............84 Primary education enrollment, net %* .................. 95.9 ............56 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 46.5 ..........124 Tertiary education enrollment, gross %*................ 16.7 ............99 Quality of the education system ............................. 3.8 ............60 Quality of math and science education .................. 3.9 ............83 Quality of management schools ............................. 4.1 ............79 Internet access in schools ...................................... 3.8 ............88 Availability of research and training services ........... 3.9 ............83 Extent of staff training ............................................ 4.3 ............45 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 92.0 ..........138 Agricultural policy costs.......................................... 4.3 ............22 Prevalence of trade barriers ................................... 4.3 ............82 Trade tariffs, % duty* .............................................. 8.5 ............91 Prevalence of foreign ownership............................. 4.3 ............93 Business impact of rules on FDI ............................. 4.8 ............34 Burden of customs procedures .............................. 4.1 ............63 Imports as a percentage of GDP* ........................ 30.6 ..........116 Degree of customer orientation .............................. 4.6 ............68 Buyer sophistication ............................................... 3.7 ............45 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.1 ............21 Flexibility of wage determination ............................. 5.7 ............22 Hiring and firing practices ....................................... 4.1 ............46 Redundancy costs, weeks of salary* .................... 47.2 ..........136 Effect of taxation on incentives to work .................. 4.1 ............32 Pay and productivity............................................... 5.0 ..............8 Reliance on professional management ................... 4.3 ............65 Country capacity to retain talent............................. 4.1 ............34 Country capacity to attract talent ........................... 3.4 ............73 Women in labor force, ratio to men* ..................... 0.99 ..............5 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.3 ............79 Affordability of financial services ............................. 4.2 ............57 Financing through local equity market .................... 2.9 ..........100 Ease of access to loans ......................................... 2.8 ............71 Venture capital availability ....................................... 2.5 ............85 Soundness of banks .............................................. 4.8 ............76 Regulation of securities exchanges ........................ 3.9 ............79 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.1 ..........114 Firm-level technology absorption ............................ 4.3 ............96 FDI and technology transfer ................................... 4.6 ............72 Individuals using Internet, %* ............................... 12.5 ..........120 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........123 Int’l Internet bandwidth, kb/s per user* ................ 10.6 ............97 Mobile broadband subscriptions/100 pop.*............ 2.1 ..........118 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.4 ..........123 Foreign market size index, 1–7 (best)* .................... 3.4 ..........118 GDP (PPP$ billions)* ............................................ 20.8 ..........117 Exports as a percentage of GDP* ........................ 30.8 ............94 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.3 ..........101 Local supplier quality.............................................. 3.9 ..........104 State of cluster development.................................. 4.3 ............37 Nature of competitive advantage ............................ 3.0 ..........112 Value chain breadth................................................ 3.6 ............89 Control of international distribution ......................... 3.8 ............86 Production process sophistication.......................... 3.6 ............88 Extent of marketing ................................................ 4.0 ............82 Willingness to delegate authority ............................ 4.2 ............34 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............71 Quality of scientific research institutions ................. 3.5 ............86 Company spending on R&D................................... 3.3 ............51 University-industry collaboration in R&D ................. 3.5 ............76 Gov’t procurement of advanced tech products ...... 3.7 ............51 Availability of scientists and engineers .................... 3.1 ..........127 PCT patents, applications/million pop.* .................. 0.0 ..........115 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.1 ............69 Extent of market dominance .................................. 4.2 ............37 Effectiveness of anti-monopoly policy ..................... 4.5 ............35 Effect of taxation on incentives to invest................. 4.0 ............38 Total tax rate, % profits* ....................................... 26.8 ............25 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 241 2.1: Country/Economy Profiles Latvia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.0 GDP (US$ billions) .......................................... 31.0 GDP per capita (US$) ................................. 15,205 GDP (PPP) as share (%) of world total ............ 0.05 Latvia 50,000 Advanced economies 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 42 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 52 ......4.4 GCI 2012–2013 (out of 144) ..................................... 55 ......4.3 GCI 2011–2012 (out of 142) ..................................... 64 ......4.2 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (24.5%) .......................................34 ......5.1 7 Innovation Institutions ................................................................ 51 ......4.1 Infrastructure ............................................................ 47 ......4.6 Macroeconomic environment ................................... 32 ......5.5 Health and primary education ................................... 31 ......6.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................36 ......4.6 Market size Higher education and training ................................... 31 ......5.1 Goods market efficiency .......................................... 36 ......4.7 Labor market efficiency ............................................ 17 ......4.8 Financial market development .................................. 33 ......4.6 Technological readiness ............................................ 32 ......5.1 Market size ............................................................... 95 ......3.2 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (25.5%) ...........61 ......3.7 Business sophistication ........................................... 61 ......4.1 Innovation ................................................................. 70 ......3.3 Latvia Advanced economies The most problematic factors for doing business Inefficient government bureaucracy ...................................17.8 Tax regulations ..................................................................11.9 Access to financing ...........................................................11.0 Corruption ...........................................................................9.3 Inadequately educated workforce ........................................8.9 Policy instability ...................................................................8.6 Inadequate supply of infrastructure ......................................8.0 Insufficient capacity to innovate ...........................................6.7 Crime and theft ...................................................................4.8 Tax rates..............................................................................4.1 Poor work ethic in national labor force ................................3.7 Restrictive labor regulations .................................................2.6 Poor public health ...............................................................1.0 Government instability/coups ..............................................0.9 Inflation ................................................................................0.5 Foreign currency regulations ................................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 242 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Latvia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.6 ............45 Intellectual property protection ............................... 4.0 ............51 Diversion of public funds ........................................ 3.3 ............68 Public trust in politicians ......................................... 2.7 ............84 Irregular payments and bribes ................................ 4.8 ............41 Judicial independence............................................ 4.0 ............58 Favoritism in decisions of government officials ....... 3.1 ............70 Wastefulness of government spending ................... 3.0 ............79 Burden of government regulation ........................... 3.4 ............75 Efficiency of legal framework in settling disputes .... 3.0 ..........116 Efficiency of legal framework in challenging regs. ... 3.0 ............95 Transparency of government policymaking............. 4.4 ............43 Business costs of terrorism .................................... 5.9 ............36 Business costs of crime and violence..................... 5.2 ............38 Organized crime ..................................................... 5.7 ............34 Reliability of police services .................................... 4.6 ............46 Ethical behavior of firms ......................................... 4.1 ............56 Strength of auditing and reporting standards ......... 5.2 ............40 Efficacy of corporate boards .................................. 5.0 ............38 Protection of minority shareholders’ interests ......... 3.9 ............87 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.0 ............40 Quality of roads ...................................................... 3.1 ..........108 Quality of railroad infrastructure .............................. 4.1 ............30 Quality of port infrastructure ................................... 5.2 ............31 Quality of air transport infrastructure....................... 5.4 ............35 Available airline seat km/week, millions* ............... 69.3 ............94 Quality of electricity supply ..................................... 5.5 ............47 Mobile telephone subscriptions/100 pop.* ......... 136.6 ............35 Fixed telephone lines/100 pop.* ........................... 23.4 ............48 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.3 ............41 Gross national savings, % GDP* .......................... 22.0 ............57 Inflation, annual % change* .................................... 0.0 ............68 General government debt, % GDP* ..................... 32.1 ............43 Country credit rating, 0–100 (best)* ...................... 58.0 ............54 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 53.0 ............75 Business impact of tuberculosis ............................. 6.2 ............44 HIV prevalence, % adult pop.* ............................... 0.7 ............97 Business impact of HIV/AIDS ................................. 6.0 ............46 Infant mortality, deaths/1,000 live births* ................ 7.6 ............47 Life expectancy, years*......................................... 73.8 ............74 Quality of primary education ................................... 5.0 ............26 Primary education enrollment, net %* .................. 97.7 ............36 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 97.7 ............43 Tertiary education enrollment, gross %*................ 65.1 ............31 Quality of the education system ............................. 3.8 ............65 Quality of math and science education .................. 4.9 ............27 Quality of management schools ............................. 4.6 ............52 Internet access in schools ...................................... 6.0 ............21 Availability of research and training services ........... 4.4 ............53 Extent of staff training ............................................ 4.4 ............33 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ............................... 12.5 ............66 Agricultural policy costs.......................................... 4.0 ............52 Prevalence of trade barriers ................................... 4.7 ............26 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.3 ............29 Business impact of rules on FDI ............................. 4.8 ............36 Burden of customs procedures .............................. 4.5 ............45 Imports as a percentage of GDP* ........................ 65.6 ............38 Degree of customer orientation .............................. 5.0 ............38 Buyer sophistication ............................................... 3.1 ............97 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.8 ............35 Flexibility of wage determination ............................. 6.0 ..............6 Hiring and firing practices ....................................... 4.1 ............50 Redundancy costs, weeks of salary* ...................... 9.7 ............35 Effect of taxation on incentives to work .................. 3.3 ..........103 Pay and productivity............................................... 4.8 ............13 Reliance on professional management ................... 4.8 ............33 Country capacity to retain talent............................. 3.1 ............94 Country capacity to attract talent ........................... 2.7 ..........107 Women in labor force, ratio to men* ..................... 0.93 ............21 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.1 ............40 Affordability of financial services ............................. 5.1 ............32 Financing through local equity market .................... 3.0 ............96 Ease of access to loans ......................................... 2.5 ............96 Venture capital availability ....................................... 3.0 ............48 Soundness of banks .............................................. 5.2 ............56 Regulation of securities exchanges ........................ 4.3 ............60 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.7 ............35 Firm-level technology absorption ............................ 5.0 ............48 FDI and technology transfer ................................... 4.8 ............44 Individuals using Internet, %* ............................... 75.2 ............28 Fixed broadband Internet subscriptions/100 pop.* . 24.7 ............28 Int’l Internet bandwidth, kb/s per user* ................ 68.1 ............38 Mobile broadband subscriptions/100 pop.*.......... 61.2 ............28 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.9 ............96 Foreign market size index, 1–7 (best)* .................... 4.1 ............83 GDP (PPP$ billions)* ............................................ 38.9 ............98 Exports as a percentage of GDP* ........................ 62.5 ............31 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.2 ..........108 Local supplier quality.............................................. 4.9 ............37 State of cluster development.................................. 3.5 ............90 Nature of competitive advantage ............................ 3.6 ............63 Value chain breadth................................................ 3.7 ............77 Control of international distribution ......................... 4.3 ............49 Production process sophistication.......................... 3.9 ............66 Extent of marketing ................................................ 4.4 ............57 Willingness to delegate authority ............................ 4.0 ............45 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.6 ............81 Quality of scientific research institutions ................. 4.2 ............43 Company spending on R&D................................... 3.1 ............74 University-industry collaboration in R&D ................. 3.7 ............63 Gov’t procurement of advanced tech products ...... 3.2 ............92 Availability of scientists and engineers .................... 3.5 ..........106 PCT patents, applications/million pop.* .................. 9.2 ............37 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.6 ............23 Extent of market dominance .................................. 3.8 ............64 Effectiveness of anti-monopoly policy ..................... 4.2 ............60 Effect of taxation on incentives to invest................. 3.8 ............67 Total tax rate, % profits* ....................................... 35.9 ............64 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 243 2.1: Country/Economy Profiles Lebanon Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 4.5 GDP (US$ billions) .......................................... 44.3 GDP per capita (US$) ................................... 9,920 GDP (PPP) as share (%) of world total ............ 0.08 Lebanon 15,000 Middle East, North Africa, and Pakistan 12,000 9,000 6,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 113 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 103 ......3.8 GCI 2012–2013 (out of 144) ..................................... 91 ......3.9 GCI 2011–2012 (out of 142) ..................................... 89 ......3.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (37.7%) .....................................127 ......3.5 Innovation Institutions .............................................................. 139 ......2.7 Infrastructure .......................................................... 122 ......2.6 Macroeconomic environment ................................. 143 ......2.6 Health and primary education ................................... 30 ......6.3 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................85 ......3.9 Market size Higher education and training ................................... 67 ......4.4 Goods market efficiency .......................................... 71 ......4.3 Labor market efficiency .......................................... 123 ......3.7 Financial market development ................................ 102 ......3.7 Technological readiness ............................................ 86 ......3.5 Market size ............................................................... 76 ......3.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (12.3%) .........101 ......3.3 Business sophistication ........................................... 75 ......3.9 Innovation ............................................................... 119 ......2.8 Lebanon Middle East, North Africa, and Pakistan The most problematic factors for doing business Inadequate supply of infrastructure ....................................17.5 Corruption .........................................................................15.5 Inefficient government bureaucracy ...................................12.5 Government instability/coups ............................................11.6 Access to financing .............................................................9.9 Policy instability ...................................................................6.1 Restrictive labor regulations .................................................5.4 Tax rates..............................................................................4.7 Insufficient capacity to innovate ...........................................3.6 Inflation ................................................................................3.4 Poor work ethic in national labor force ................................3.1 Inadequately educated workforce ........................................2.7 Tax regulations ....................................................................2.0 Poor public health ...............................................................1.4 Foreign currency regulations ................................................0.4 Crime and theft ...................................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 244 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Lebanon The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.5 ..........108 Intellectual property protection ............................... 2.2 ..........139 Diversion of public funds ........................................ 1.9 ..........137 Public trust in politicians ......................................... 1.3 ..........144 Irregular payments and bribes ................................ 2.2 ..........142 Judicial independence............................................ 2.1 ..........138 Favoritism in decisions of government officials ....... 1.7 ..........142 Wastefulness of government spending ................... 1.4 ..........143 Burden of government regulation ........................... 2.6 ..........131 Efficiency of legal framework in settling disputes .... 2.5 ..........132 Efficiency of legal framework in challenging regs. ... 2.1 ..........139 Transparency of government policymaking............. 2.9 ..........138 Business costs of terrorism .................................... 2.6 ..........140 Business costs of crime and violence..................... 3.6 ..........113 Organized crime ..................................................... 4.5 ............88 Reliability of police services .................................... 2.8 ..........132 Ethical behavior of firms ......................................... 2.9 ..........141 Strength of auditing and reporting standards ......... 4.2 ............98 Efficacy of corporate boards .................................. 3.7 ..........133 Protection of minority shareholders’ interests ......... 3.4 ..........121 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.3 ..........140 Quality of roads ...................................................... 2.8 ..........120 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.1 ............73 Quality of air transport infrastructure....................... 4.5 ............65 Available airline seat km/week, millions* ............. 152.1 ............72 Quality of electricity supply ..................................... 1.4 ..........143 Mobile telephone subscriptions/100 pop.* ........... 80.6 ..........114 Fixed telephone lines/100 pop.* ........................... 18.0 ............66 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –9.5 ..........138 Gross national savings, % GDP* ............................ 6.3 ..........133 Inflation, annual % change* .................................... 3.2 ............64 General government debt, % GDP* ................... 139.7 ..........141 Country credit rating, 0–100 (best)* ...................... 31.3 ..........107 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 16.0 ............37 Business impact of tuberculosis ............................. 6.3 ............35 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.2 ............34 Infant mortality, deaths/1,000 live births* ................ 8.0 ............49 Life expectancy, years*......................................... 79.8 ............30 Quality of primary education ................................... 5.3 ............16 Primary education enrollment, net %* .................. 93.2 ............79 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 74.0 ............99 Tertiary education enrollment, gross %*................ 46.3 ............58 Quality of the education system ............................. 4.6 ............28 Quality of math and science education .................. 5.7 ..............5 Quality of management schools ............................. 5.3 ............17 Internet access in schools ...................................... 3.7 ............92 Availability of research and training services ........... 4.2 ............67 Extent of staff training ............................................ 3.5 ..........117 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 9.0 ............50 Agricultural policy costs.......................................... 2.8 ..........138 Prevalence of trade barriers ................................... 4.5 ............50 Trade tariffs, % duty* .............................................. 6.1 ............80 Prevalence of foreign ownership............................. 3.9 ..........113 Business impact of rules on FDI ............................. 3.8 ..........111 Burden of customs procedures .............................. 3.1 ..........129 Imports as a percentage of GDP* ........................ 80.4 ............23 Degree of customer orientation .............................. 4.4 ............87 Buyer sophistication ............................................... 3.3 ............87 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............82 Flexibility of wage determination ............................. 5.3 ............51 Hiring and firing practices ....................................... 3.9 ............70 Redundancy costs, weeks of salary* ...................... 8.7 ............26 Effect of taxation on incentives to work .................. 3.8 ............51 Pay and productivity............................................... 4.0 ............60 Reliance on professional management ................... 3.3 ..........125 Country capacity to retain talent............................. 2.3 ..........134 Country capacity to attract talent ........................... 2.2 ..........135 Women in labor force, ratio to men* ..................... 0.34 ..........138 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.6 ............60 Affordability of financial services ............................. 4.1 ............72 Financing through local equity market .................... 2.2 ..........132 Ease of access to loans ......................................... 2.8 ............76 Venture capital availability ....................................... 2.8 ............59 Soundness of banks .............................................. 5.8 ............27 Regulation of securities exchanges ........................ 3.5 ..........108 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.3 ..........100 Firm-level technology absorption ............................ 4.3 ............94 FDI and technology transfer ................................... 3.4 ..........139 Individuals using Internet, %* ............................... 70.5 ............38 Fixed broadband Internet subscriptions/100 pop.* . 10.0 ............64 Int’l Internet bandwidth, kb/s per user* ................ 15.4 ............91 Mobile broadband subscriptions/100 pop.*.......... 41.8 ............49 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.3 ............77 Foreign market size index, 1–7 (best)* .................... 4.5 ............71 GDP (PPP$ billions)* ............................................ 66.3 ............80 Exports as a percentage of GDP* ........................ 65.1 ............30 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............50 Local supplier quality.............................................. 4.1 ............93 State of cluster development.................................. 3.3 ..........107 Nature of competitive advantage ............................ 3.8 ............54 Value chain breadth................................................ 3.7 ............78 Control of international distribution ......................... 4.7 ............20 Production process sophistication.......................... 3.6 ............84 Extent of marketing ................................................ 4.4 ............53 Willingness to delegate authority ............................ 3.2 ..........121 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............54 Quality of scientific research institutions ................. 2.6 ..........128 Company spending on R&D................................... 2.3 ..........127 University-industry collaboration in R&D ................. 2.9 ..........118 Gov’t procurement of advanced tech products ...... 2.0 ..........142 Availability of scientists and engineers .................... 4.6 ............28 PCT patents, applications/million pop.* .................. 1.7 ............60 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.5 ............30 Extent of market dominance .................................. 3.7 ............76 Effectiveness of anti-monopoly policy ..................... 3.4 ..........117 Effect of taxation on incentives to invest................. 4.0 ............45 Total tax rate, % profits* ....................................... 30.2 ............42 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 245 2.1: Country/Economy Profiles Lesotho Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 1.9 GDP (US$ billions) ............................................ 2.3 GDP per capita (US$) ................................... 1,194 GDP (PPP) as share (%) of world total ............ 0.01 Lesotho 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 107 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 123 ......3.5 GCI 2012–2013 (out of 144) ................................... 137 ......3.2 GCI 2011–2012 (out of 142) ................................... 135 ......3.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................102 ......4.1 7 Innovation Institutions ................................................................ 68 ......3.9 Infrastructure .......................................................... 116 ......2.8 Macroeconomic environment ................................... 28 ......5.7 Health and primary education ................................. 128 ......4.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................130 ......3.2 Market size Higher education and training ................................. 116 ......3.2 Goods market efficiency .......................................... 80 ......4.2 Labor market efficiency ............................................ 76 ......4.2 Financial market development ................................ 123 ......3.3 Technological readiness .......................................... 137 ......2.4 Market size ............................................................. 139 ......2.0 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........117 ......3.1 Business sophistication ......................................... 123 ......3.4 Innovation ............................................................... 110 ......2.9 Lesotho Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................25.0 Corruption .........................................................................21.0 Inadequate supply of infrastructure ....................................14.6 Inadequately educated workforce ........................................7.2 Poor work ethic in national labor force ................................6.5 Inefficient government bureaucracy .....................................5.6 Crime and theft ...................................................................5.3 Foreign currency regulations ................................................3.3 Government instability/coups ..............................................2.3 Tax rates..............................................................................2.0 Insufficient capacity to innovate ...........................................1.5 Policy instability ...................................................................1.4 Restrictive labor regulations .................................................1.4 Poor public health ...............................................................1.3 Inflation ................................................................................1.2 Tax regulations ....................................................................0.4 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 246 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Lesotho The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.6 ..........103 Intellectual property protection ............................... 3.5 ............81 Diversion of public funds ........................................ 3.8 ............49 Public trust in politicians ......................................... 3.4 ............47 Irregular payments and bribes ................................ 4.2 ............58 Judicial independence............................................ 4.1 ............55 Favoritism in decisions of government officials ....... 3.7 ............39 Wastefulness of government spending ................... 3.7 ............39 Burden of government regulation ........................... 3.9 ............31 Efficiency of legal framework in settling disputes .... 3.7 ............70 Efficiency of legal framework in challenging regs. ... 3.5 ............62 Transparency of government policymaking............. 3.9 ............71 Business costs of terrorism .................................... 5.2 ............76 Business costs of crime and violence..................... 3.9 ............96 Organized crime ..................................................... 4.5 ............85 Reliability of police services .................................... 4.7 ............45 Ethical behavior of firms ......................................... 4.0 ............63 Strength of auditing and reporting standards ......... 2.8 ..........139 Efficacy of corporate boards .................................. 3.6 ..........135 Protection of minority shareholders’ interests ......... 3.1 ..........130 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.6 ............98 Quality of roads ...................................................... 3.3 ............97 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.7 ..........120 Quality of air transport infrastructure....................... 2.1 ..........144 Available airline seat km/week, millions* ................. 0.3 ..........143 Quality of electricity supply ..................................... 3.7 ............97 Mobile telephone subscriptions/100 pop.* ........... 86.3 ..........110 Fixed telephone lines/100 pop.* ............................. 2.8 ..........115 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 3.0 ............10 Gross national savings, % GDP* .......................... 31.7 ............21 Inflation, annual % change* .................................... 5.3 ............96 General government debt, % GDP* ..................... 39.6 ............61 Country credit rating, 0–100 (best)* ...................... 32.7 ............99 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ..................... 630.0 ..........140 Business impact of tuberculosis ............................. 5.2 ............86 HIV prevalence, % adult pop.* ............................. 23.1 ..........142 Business impact of HIV/AIDS ................................. 4.4 ..........113 Infant mortality, deaths/1,000 live births* .............. 74.2 ..........138 Life expectancy, years*......................................... 48.8 ..........142 Quality of primary education ................................... 4.1 ............66 Primary education enrollment, net %* .................. 81.6 ..........126 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 53.3 ..........119 Tertiary education enrollment, gross %*................ 10.8 ..........111 Quality of the education system ............................. 4.1 ............49 Quality of math and science education .................. 3.8 ............90 Quality of management schools ............................. 3.9 ............91 Internet access in schools ...................................... 3.2 ..........114 Availability of research and training services ........... 3.9 ............82 Extent of staff training ............................................ 4.0 ............75 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 29.0 ..........110 Agricultural policy costs.......................................... 3.9 ............61 Prevalence of trade barriers ................................... 3.9 ..........122 Trade tariffs, % duty* .............................................. 6.1 ............77 Prevalence of foreign ownership............................. 4.0 ..........107 Business impact of rules on FDI ............................. 4.7 ............47 Burden of customs procedures .............................. 3.4 ..........107 Imports as a percentage of GDP* ...................... 127.4 ..............3 Degree of customer orientation .............................. 3.5 ..........133 Buyer sophistication ............................................... 3.6 ............55 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ..........102 Flexibility of wage determination ............................. 4.0 ..........123 Hiring and firing practices ....................................... 3.9 ............76 Redundancy costs, weeks of salary* .................... 15.0 ............70 Effect of taxation on incentives to work .................. 4.0 ............40 Pay and productivity............................................... 3.8 ............84 Reliance on professional management ................... 3.4 ..........119 Country capacity to retain talent............................. 3.4 ............68 Country capacity to attract talent ........................... 3.6 ............63 Women in labor force, ratio to men* ..................... 0.81 ............71 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.2 ..........131 Affordability of financial services ............................. 3.4 ..........125 Financing through local equity market .................... 2.7 ..........109 Ease of access to loans ......................................... 2.9 ............63 Venture capital availability ....................................... 2.7 ............72 Soundness of banks .............................................. 3.5 ..........130 Regulation of securities exchanges ........................ 2.6 ..........130 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.5 ..........135 Firm-level technology absorption ............................ 3.5 ..........136 FDI and technology transfer ................................... 3.5 ..........134 Individuals using Internet, %* ................................. 5.0 ..........132 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........127 Int’l Internet bandwidth, kb/s per user* .................. 5.9 ..........112 Mobile broadband subscriptions/100 pop.*............ 7.4 ..........103 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.8 ..........137 Foreign market size index, 1–7 (best)* .................... 2.7 ..........138 GDP (PPP$ billions)* .............................................. 4.3 ..........141 Exports as a percentage of GDP* ........................ 43.6 ............57 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.6 ..........136 Local supplier quality.............................................. 3.5 ..........128 State of cluster development.................................. 3.9 ............65 Nature of competitive advantage ............................ 3.3 ............87 Value chain breadth................................................ 3.5 ..........101 Control of international distribution ......................... 3.2 ..........133 Production process sophistication.......................... 3.0 ..........125 Extent of marketing ................................................ 3.3 ..........126 Willingness to delegate authority ............................ 3.0 ..........129 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.1 ..........122 Quality of scientific research institutions ................. 2.9 ..........114 Company spending on R&D................................... 2.9 ............92 University-industry collaboration in R&D ................. 3.2 ............99 Gov’t procurement of advanced tech products ...... 3.0 ..........106 Availability of scientists and engineers .................... 3.6 ............97 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.8 ............93 Extent of market dominance .................................. 3.5 ............84 Effectiveness of anti-monopoly policy ..................... 3.7 ..........103 Effect of taxation on incentives to invest................. 3.8 ............65 Total tax rate, % profits* ....................................... 16.0 ..............9 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 247 2.1: Country/Economy Profiles Libya Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 6.1 GDP (US$ billions) .......................................... 67.6 GDP per capita (US$) ................................. 11,046 GDP (PPP) as share (%) of world total ............ 0.08 Libya 20,000 Middle East, North Africa, and Pakistan 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 126 ..... 3.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 108 ......3.7 GCI 2012–2013 (out of 144) ................................... 113 ......3.7 GCI 2011–2012 (out of 142) .................................... n/a ......n/a Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (58.5%) .....................................111 ......3.9 Innovation Institutions .............................................................. 142 ......2.6 Infrastructure .......................................................... 113 ......2.9 Macroeconomic environment ................................... 41 ......5.4 Health and primary education ................................. 119 ......4.6 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (36.1%) ...................................137 ......3.0 Market size Higher education and training ................................. 102 ......3.6 Goods market efficiency ........................................ 139 ......3.3 Labor market efficiency .......................................... 133 ......3.4 Financial market development ................................ 144 ......1.9 Technological readiness .......................................... 130 ......2.6 Market size ............................................................... 85 ......3.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.4%) ...........143 ......2.5 Business sophistication ......................................... 135 ......3.0 Innovation ............................................................... 144 ......2.0 Libya Middle East, North Africa, and Pakistan The most problematic factors for doing business Government instability/coups ............................................11.6 Access to financing ...........................................................11.4 Inadequately educated workforce ......................................10.8 Inefficient government bureaucracy ...................................10.6 Policy instability .................................................................10.4 Corruption .........................................................................10.0 Inadequate supply of infrastructure ......................................8.0 Poor work ethic in national labor force ................................6.9 Foreign currency regulations ................................................6.1 Crime and theft ...................................................................5.9 Restrictive labor regulations .................................................5.1 Poor public health ...............................................................1.4 Insufficient capacity to innovate ...........................................0.8 Inflation ................................................................................0.6 Tax regulations ....................................................................0.4 Tax rates..............................................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 248 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Libya The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.0 ..........131 Intellectual property protection ............................... 1.8 ..........143 Diversion of public funds ........................................ 2.1 ..........133 Public trust in politicians ......................................... 2.3 ..........112 Irregular payments and bribes ................................ 2.9 ..........122 Judicial independence............................................ 3.0 ..........104 Favoritism in decisions of government officials ....... 2.3 ..........124 Wastefulness of government spending ................... 2.0 ..........136 Burden of government regulation ........................... 2.5 ..........134 Efficiency of legal framework in settling disputes .... 2.4 ..........135 Efficiency of legal framework in challenging regs. ... 2.4 ..........127 Transparency of government policymaking............. 2.9 ..........139 Business costs of terrorism .................................... 2.4 ..........142 Business costs of crime and violence..................... 2.5 ..........138 Organized crime ..................................................... 4.0 ..........116 Reliability of police services .................................... 2.0 ..........143 Ethical behavior of firms ......................................... 3.4 ..........127 Strength of auditing and reporting standards ......... 2.2 ..........144 Efficacy of corporate boards .................................. 2.4 ..........144 Protection of minority shareholders’ interests ......... 2.4 ..........144 Strength of investor protection, 0–10 (best)* .......... 1.7 ..........143 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 1.9 ..........144 Quality of roads ...................................................... 2.1 ..........142 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.6 ..........131 Quality of air transport infrastructure....................... 2.4 ..........139 Available airline seat km/week, millions* ............. 111.2 ............79 Quality of electricity supply ..................................... 2.8 ..........116 Mobile telephone subscriptions/100 pop.* ......... 165.0 ..............9 Fixed telephone lines/100 pop.* ........................... 12.7 ............82 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 1.6 ............12 Gross national savings, % GDP* .......................... 18.4 ............78 Inflation, annual % change* .................................... 2.6 ..............1 General government debt, % GDP* ....................... 0.0 ..............1 Country credit rating, 0–100 (best)* ...................... 35.6 ............93 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 40.0 ............65 Business impact of tuberculosis ............................. 5.0 ............91 HIV prevalence, % adult pop.* ............................. <0.2 ..............1 Business impact of HIV/AIDS ................................. 4.9 ............93 Infant mortality, deaths/1,000 live births* .............. 13.2 ............68 Life expectancy, years*......................................... 75.2 ............54 Quality of primary education ................................... 2.5 ..........128 Primary education enrollment, net %* .................... n/a ...........n/a 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 104.3 ............20 Tertiary education enrollment, gross %*................ 60.9 ............41 Quality of the education system ............................. 1.9 ..........144 Quality of math and science education .................. 2.9 ..........125 Quality of management schools ............................. 2.3 ..........142 Internet access in schools ...................................... 1.6 ..........143 Availability of research and training services ........... 2.5 ..........143 Extent of staff training ............................................ 2.7 ..........143 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 35.0 ..........119 Agricultural policy costs.......................................... 2.1 ..........143 Prevalence of trade barriers ................................... 3.7 ..........132 Trade tariffs, % duty* .............................................. 0.0 ..............1 Prevalence of foreign ownership............................. 2.4 ..........143 Business impact of rules on FDI ............................. 3.0 ..........135 Burden of customs procedures .............................. 2.6 ..........139 Imports as a percentage of GDP* ........................ 34.5 ..........101 Degree of customer orientation .............................. 3.4 ..........137 Buyer sophistication ............................................... 2.3 ..........139 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ..........103 Flexibility of wage determination ............................. 4.9 ............82 Hiring and firing practices ....................................... 3.6 ............95 Redundancy costs, weeks of salary* .................... 10.3 ............42 Effect of taxation on incentives to work .................. 3.8 ............52 Pay and productivity............................................... 3.0 ..........132 Reliance on professional management ................... 2.7 ..........140 Country capacity to retain talent............................. 2.7 ..........118 Country capacity to attract talent ........................... 2.3 ..........132 Women in labor force, ratio to men* ..................... 0.40 ..........131 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.1 ..........144 Affordability of financial services ............................. 2.0 ..........144 Financing through local equity market .................... 1.8 ..........140 Ease of access to loans ......................................... 1.5 ..........142 Venture capital availability ....................................... 1.6 ..........142 Soundness of banks .............................................. 2.7 ..........142 Regulation of securities exchanges ........................ 2.0 ..........137 Legal rights index, 0–10 (best)* ................................. 1 ..........143 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.1 ..........140 Firm-level technology absorption ............................ 3.2 ..........142 FDI and technology transfer ................................... 2.7 ..........144 Individuals using Internet, %* ............................... 16.5 ..........108 Fixed broadband Internet subscriptions/100 pop.* ... 1.0 ..........106 Int’l Internet bandwidth, kb/s per user* ................ 21.5 ............82 Mobile broadband subscriptions/100 pop.*............ n/a ...........n/a 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.9 ............95 Foreign market size index, 1–7 (best)* .................... 4.6 ............67 GDP (PPP$ billions)* ............................................ 70.4 ............78 Exports as a percentage of GDP* ........................ 76.1 ............19 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............58 Local supplier quality.............................................. 2.8 ..........142 State of cluster development.................................. 2.7 ..........140 Nature of competitive advantage ............................ 2.6 ..........134 Value chain breadth................................................ 2.7 ..........143 Control of international distribution ......................... 3.9 ............83 Production process sophistication.......................... 2.3 ..........142 Extent of marketing ................................................ 2.5 ..........143 Willingness to delegate authority ............................ 3.1 ..........128 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.5 ..........144 Quality of scientific research institutions ................. 1.7 ..........143 Company spending on R&D................................... 1.8 ..........144 University-industry collaboration in R&D ................. 1.7 ..........144 Gov’t procurement of advanced tech products ...... 1.9 ..........143 Availability of scientists and engineers .................... 3.3 ..........119 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.7 ..........141 Extent of market dominance .................................. 2.7 ..........137 Effectiveness of anti-monopoly policy ..................... 2.1 ..........143 Effect of taxation on incentives to invest................. 3.2 ..........109 Total tax rate, % profits* ....................................... 31.6 ............44 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 249 2.1: Country/Economy Profiles Lithuania Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 3.0 GDP (US$ billions) .......................................... 47.6 GDP per capita (US$) ................................. 16,003 GDP (PPP) as share (%) of world total ............ 0.08 Lithuania 25,000 Emerging and Developing Europe 20,000 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 41 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 48 ......4.4 GCI 2012–2013 (out of 144) ..................................... 45 ......4.4 GCI 2011–2012 (out of 142) ..................................... 44 ......4.4 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (22.5%) .......................................37 ......5.1 7 Innovation Institutions ................................................................ 58 ......4.0 Infrastructure ............................................................ 43 ......4.7 Macroeconomic environment ................................... 42 ......5.3 Health and primary education ................................... 35 ......6.2 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................38 ......4.5 Market size Higher education and training ................................... 26 ......5.3 Goods market efficiency .......................................... 47 ......4.6 Labor market efficiency ............................................ 53 ......4.3 Financial market development .................................. 65 ......4.1 Technological readiness ............................................ 28 ......5.4 Market size ............................................................... 77 ......3.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (27.5%) ...........44 ......4.0 Business sophistication ........................................... 49 ......4.3 Innovation ................................................................. 44 ......3.6 Lithuania Emerging and Developing Europe The most problematic factors for doing business Inefficient government bureaucracy ...................................17.3 Restrictive labor regulations ...............................................13.4 Tax rates............................................................................12.5 Corruption .........................................................................10.6 Tax regulations ....................................................................9.8 Inadequately educated workforce ........................................8.9 Access to financing .............................................................7.7 Government instability/coups ..............................................5.4 Poor work ethic in national labor force ................................3.3 Inadequate supply of infrastructure ......................................3.0 Policy instability ...................................................................3.0 Insufficient capacity to innovate ...........................................2.7 Inflation ................................................................................1.1 Crime and theft ...................................................................0.8 Foreign currency regulations ................................................0.3 Poor public health ...............................................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 250 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Lithuania The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.2 ............62 Intellectual property protection ............................... 3.8 ............58 Diversion of public funds ........................................ 3.3 ............66 Public trust in politicians ......................................... 2.7 ............83 Irregular payments and bribes ................................ 4.6 ............47 Judicial independence............................................ 3.6 ............71 Favoritism in decisions of government officials ....... 3.2 ............62 Wastefulness of government spending ................... 2.8 ............90 Burden of government regulation ........................... 3.0 ..........105 Efficiency of legal framework in settling disputes .... 3.5 ............84 Efficiency of legal framework in challenging regs. ... 2.8 ..........108 Transparency of government policymaking............. 4.7 ............28 Business costs of terrorism .................................... 5.7 ............52 Business costs of crime and violence..................... 4.8 ............48 Organized crime ..................................................... 5.1 ............55 Reliability of police services .................................... 4.3 ............60 Ethical behavior of firms ......................................... 4.3 ............46 Strength of auditing and reporting standards ......... 4.9 ............59 Efficacy of corporate boards .................................. 5.0 ............34 Protection of minority shareholders’ interests ......... 3.9 ............89 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.9 ............43 Quality of roads ...................................................... 4.9 ............36 Quality of railroad infrastructure .............................. 4.5 ............22 Quality of port infrastructure ................................... 4.9 ............47 Quality of air transport infrastructure....................... 4.2 ............75 Available airline seat km/week, millions* ............... 55.1 ............97 Quality of electricity supply ..................................... 5.6 ............41 Mobile telephone subscriptions/100 pop.* ......... 151.3 ............22 Fixed telephone lines/100 pop.* ........................... 20.7 ............55 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.1 ............54 Gross national savings, % GDP* .......................... 19.3 ............73 Inflation, annual % change* .................................... 1.2 ..............1 General government debt, % GDP* ..................... 39.3 ............60 Country credit rating, 0–100 (best)* ...................... 61.2 ............47 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 66.0 ............81 Business impact of tuberculosis ............................. 5.6 ............72 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.2 ............33 Infant mortality, deaths/1,000 live births* ................ 4.4 ............32 Life expectancy, years*......................................... 73.9 ............73 Quality of primary education ................................... 5.0 ............24 Primary education enrollment, net %* .................. 95.8 ............57 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 105.9 ............18 Tertiary education enrollment, gross %*................ 73.9 ............22 Quality of the education system ............................. 3.9 ............55 Quality of math and science education .................. 5.1 ............23 Quality of management schools ............................. 4.4 ............60 Internet access in schools ...................................... 5.9 ............23 Availability of research and training services ........... 4.8 ............33 Extent of staff training ............................................ 4.2 ............50 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ................................. 6.5 ............31 Agricultural policy costs.......................................... 3.8 ............70 Prevalence of trade barriers ................................... 4.1 ............97 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.4 ............88 Business impact of rules on FDI ............................. 4.0 ..........101 Burden of customs procedures .............................. 4.6 ............43 Imports as a percentage of GDP* ........................ 84.9 ............17 Degree of customer orientation .............................. 5.2 ............30 Buyer sophistication ............................................... 3.2 ............94 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............87 Flexibility of wage determination ............................. 6.0 ..............8 Hiring and firing practices ....................................... 3.0 ..........125 Redundancy costs, weeks of salary* .................... 24.6 ..........112 Effect of taxation on incentives to work .................. 2.9 ..........124 Pay and productivity............................................... 4.8 ............12 Reliance on professional management ................... 4.5 ............50 Country capacity to retain talent............................. 2.7 ..........119 Country capacity to attract talent ........................... 2.3 ..........129 Women in labor force, ratio to men* ..................... 0.95 ............13 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.9 ............45 Affordability of financial services ............................. 4.9 ............39 Financing through local equity market .................... 3.5 ............67 Ease of access to loans ......................................... 2.6 ............91 Venture capital availability ....................................... 2.7 ............73 Soundness of banks .............................................. 4.2 ..........113 Regulation of securities exchanges ........................ 4.1 ............70 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.7 ............32 Firm-level technology absorption ............................ 5.4 ............33 FDI and technology transfer ................................... 5.5 ..............7 Individuals using Internet, %* ............................... 68.5 ............40 Fixed broadband Internet subscriptions/100 pop.* . 22.0 ............35 Int’l Internet bandwidth, kb/s per user* ................ 99.6 ............30 Mobile broadband subscriptions/100 pop.*.......... 49.9 ............40 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.3 ............80 Foreign market size index, 1–7 (best)* .................... 4.6 ............66 GDP (PPP$ billions)* ............................................ 67.6 ............79 Exports as a percentage of GDP* ........................ 83.3 ............17 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.2 ............20 Local supplier quality.............................................. 5.0 ............34 State of cluster development.................................. 3.5 ............89 Nature of competitive advantage ............................ 3.5 ............69 Value chain breadth................................................ 4.2 ............40 Control of international distribution ......................... 4.5 ............34 Production process sophistication.......................... 4.4 ............41 Extent of marketing ................................................ 4.8 ............37 Willingness to delegate authority ............................ 3.8 ............67 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.3 ............38 Quality of scientific research institutions ................. 4.8 ............28 Company spending on R&D................................... 3.1 ............70 University-industry collaboration in R&D ................. 4.6 ............27 Gov’t procurement of advanced tech products ...... 3.1 ..........101 Availability of scientists and engineers .................... 4.1 ............67 PCT patents, applications/million pop.* .................. 6.1 ............47 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.6 ............22 Extent of market dominance .................................. 3.6 ............81 Effectiveness of anti-monopoly policy ..................... 4.0 ............68 Effect of taxation on incentives to invest................. 3.1 ..........124 Total tax rate, % profits* ....................................... 43.1 ............92 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 251 2.1: Country/Economy Profiles Luxembourg Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.5 GDP (US$ billions) .......................................... 59.8 GDP per capita (US$) ............................... 110,424 GDP (PPP) as share (%) of world total ............ 0.05 Luxembourg 100,000 Advanced economies 80,000 60,000 40,000 20,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 19 ..... 5.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 22 ......5.1 GCI 2012–2013 (out of 144) ..................................... 22 ......5.1 GCI 2011–2012 (out of 142) ..................................... 23 ......5.0 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .........................................7 ......6.0 7 Innovation Institutions .................................................................. 6 ......5.7 Infrastructure ............................................................ 16 ......5.7 Macroeconomic environment ..................................... 8 ......6.4 Health and primary education ................................... 36 ......6.2 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................22 ......5.0 Market size Higher education and training ................................... 43 ......4.9 Goods market efficiency ............................................ 5 ......5.5 Labor market efficiency ............................................ 16 ......4.9 Financial market development .................................. 14 ......5.1 Technological readiness .............................................. 1 ......6.4 Market size ............................................................... 96 ......3.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........18 ......4.9 Business sophistication ........................................... 21 ......5.0 Innovation ................................................................. 16 ......4.8 Luxembourg Advanced economies The most problematic factors for doing business Restrictive labor regulations ...............................................22.7 Inadequately educated workforce ......................................18.6 Inefficient government bureaucracy ...................................12.0 Access to financing ...........................................................11.0 Insufficient capacity to innovate ...........................................8.7 Tax rates..............................................................................6.7 Tax regulations ....................................................................5.6 Inflation ................................................................................4.1 Inadequate supply of infrastructure ......................................3.9 Foreign currency regulations ................................................2.9 Poor work ethic in national labor force ................................2.2 Policy instability ...................................................................1.0 Corruption ...........................................................................0.6 Crime and theft ...................................................................0.0 Government instability/coups ..............................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 252 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Luxembourg The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.1 ..............5 Intellectual property protection ............................... 6.1 ..............3 Diversion of public funds ........................................ 6.1 ..............5 Public trust in politicians ......................................... 5.4 ..............7 Irregular payments and bribes ................................ 6.3 ..............6 Judicial independence............................................ 6.0 ............12 Favoritism in decisions of government officials ....... 4.7 ............11 Wastefulness of government spending ................... 4.5 ............16 Burden of government regulation ........................... 4.3 ..............9 Efficiency of legal framework in settling disputes .... 5.4 ............12 Efficiency of legal framework in challenging regs. ... 5.1 ..............6 Transparency of government policymaking............. 5.6 ..............6 Business costs of terrorism .................................... 6.2 ............16 Business costs of crime and violence..................... 6.1 ..............9 Organized crime ..................................................... 6.3 ............11 Reliability of police services .................................... 6.1 ..............9 Ethical behavior of firms ......................................... 6.0 ..............8 Strength of auditing and reporting standards ......... 6.2 ..............8 Efficacy of corporate boards .................................. 5.8 ..............6 Protection of minority shareholders’ interests ......... 5.5 ..............7 Strength of investor protection, 0–10 (best)* .......... 4.3 ..........105 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.9 ............14 Quality of roads ...................................................... 5.7 ............15 Quality of railroad infrastructure .............................. 5.0 ............13 Quality of port infrastructure ................................... 5.0 ............37 Quality of air transport infrastructure....................... 5.4 ............32 Available airline seat km/week, millions* ............... 28.5 ..........112 Quality of electricity supply ..................................... 6.6 ............10 Mobile telephone subscriptions/100 pop.* ......... 148.6 ............24 Fixed telephone lines/100 pop.* ........................... 50.5 ............11 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.0 ............22 Gross national savings, % GDP* .......................... 28.2 ............30 Inflation, annual % change* .................................... 1.7 ..............1 General government debt, % GDP* ..................... 22.9 ............23 Country credit rating, 0–100 (best)* ...................... 91.7 ..............6 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 6.5 ............15 Business impact of tuberculosis ............................. 6.7 ............15 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 6.5 ............20 Infant mortality, deaths/1,000 live births* ................ 1.7 ..............2 Life expectancy, years*......................................... 81.4 ............14 Quality of primary education ................................... 5.0 ............25 Primary education enrollment, net %* .................. 92.1 ............88 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 101.0 ............30 Tertiary education enrollment, gross %*................ 18.2 ............95 Quality of the education system ............................. 4.6 ............25 Quality of math and science education .................. 4.8 ............28 Quality of management schools ............................. 4.7 ............39 Internet access in schools ...................................... 6.1 ............14 Availability of research and training services ........... 5.3 ............22 Extent of staff training ............................................ 5.4 ..............3 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 18.5 ............87 Agricultural policy costs.......................................... 5.0 ..............4 Prevalence of trade barriers ................................... 5.3 ..............5 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 6.3 ..............1 Business impact of rules on FDI ............................. 5.9 ..............4 Burden of customs procedures .............................. 5.5 ..............9 Imports as a percentage of GDP* ...................... 125.3 ..............4 Degree of customer orientation .............................. 5.4 ............16 Buyer sophistication ............................................... 4.7 ..............5 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.4 ............15 Flexibility of wage determination ............................. 4.7 ............96 Hiring and firing practices ....................................... 3.7 ............87 Redundancy costs, weeks of salary* .................... 21.7 ..........101 Effect of taxation on incentives to work .................. 5.1 ............10 Pay and productivity............................................... 4.3 ............43 Reliance on professional management ................... 5.5 ............17 Country capacity to retain talent............................. 5.0 ............12 Country capacity to attract talent ........................... 5.5 ..............8 Women in labor force, ratio to men* ..................... 0.83 ............65 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.3 ..............2 Affordability of financial services ............................. 6.1 ..............2 Financing through local equity market .................... 4.4 ............22 Ease of access to loans ......................................... 4.4 ..............6 Venture capital availability ....................................... 4.2 ............10 Soundness of banks .............................................. 6.0 ............16 Regulation of securities exchanges ........................ 6.0 ..............4 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.2 ............13 Firm-level technology absorption ............................ 6.0 ..............8 FDI and technology transfer ................................... 5.4 ..............9 Individuals using Internet, %* ............................... 93.8 ..............6 Fixed broadband Internet subscriptions/100 pop.* . 33.5 ............11 Int’l Internet bandwidth, kb/s per user* ........... 6,445.8 ..............1 Mobile broadband subscriptions/100 pop.*.......... 80.5 ............15 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.6 ..........112 Foreign market size index, 1–7 (best)* .................... 4.8 ............62 GDP (PPP$ billions)* ............................................ 42.6 ............92 Exports as a percentage of GDP* ...................... 164.3 ..............3 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.0 ..........121 Local supplier quality.............................................. 5.4 ............17 State of cluster development.................................. 4.9 ............17 Nature of competitive advantage ............................ 5.7 ............13 Value chain breadth................................................ 4.9 ............18 Control of international distribution ......................... 4.1 ............64 Production process sophistication.......................... 5.6 ............16 Extent of marketing ................................................ 5.3 ............21 Willingness to delegate authority ............................ 5.0 ............14 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.3 ..............9 Quality of scientific research institutions ................. 5.0 ............26 Company spending on R&D................................... 4.7 ............16 University-industry collaboration in R&D ................. 4.9 ............18 Gov’t procurement of advanced tech products ...... 4.6 ..............6 Availability of scientists and engineers .................... 4.3 ............52 PCT patents, applications/million pop.* .............. 118.6 ............14 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.2 ............54 Extent of market dominance .................................. 4.8 ............18 Effectiveness of anti-monopoly policy ..................... 5.2 ............11 Effect of taxation on incentives to invest................. 5.3 ..............8 Total tax rate, % profits* ....................................... 20.7 ............12 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 253 2.1: Country/Economy Profiles Macedonia, FYR Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.1 GDP (US$ billions) .......................................... 10.2 GDP per capita (US$) ................................... 4,944 GDP (PPP) as share (%) of world total ............ 0.03 Macedonia, FYR 20,000 Emerging and Developing Europe 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 63 ..... 4.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 73 ......4.1 GCI 2012–2013 (out of 144) ..................................... 80 ......4.0 GCI 2011–2012 (out of 142) ..................................... 79 ......4.1 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................64 ......4.6 7 Innovation Institutions ................................................................ 45 ......4.3 Infrastructure ............................................................ 82 ......3.7 Macroeconomic environment ................................... 55 ......4.9 Health and primary education ................................... 78 ......5.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................69 ......4.1 Market size Higher education and training ................................... 71 ......4.3 Goods market efficiency .......................................... 38 ......4.6 Labor market efficiency ............................................ 71 ......4.2 Financial market development .................................. 41 ......4.5 Technological readiness ............................................ 62 ......4.0 Market size ............................................................. 108 ......2.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........76 ......3.5 Business sophistication ........................................... 89 ......3.8 Innovation ................................................................. 68 ......3.3 Macedonia, FYR Emerging and Developing Europe The most problematic factors for doing business Access to financing ...........................................................16.9 Poor work ethic in national labor force ..............................11.9 Inadequately educated workforce ......................................10.9 Inefficient government bureaucracy .....................................9.6 Inadequate supply of infrastructure ......................................9.0 Policy instability ...................................................................8.4 Insufficient capacity to innovate ...........................................7.6 Corruption ...........................................................................5.0 Tax rates..............................................................................4.6 Tax regulations ....................................................................4.2 Restrictive labor regulations .................................................3.8 Poor public health ...............................................................2.8 Crime and theft ...................................................................1.6 Foreign currency regulations ................................................1.5 Government instability/coups ..............................................1.3 Inflation ................................................................................1.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 254 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Macedonia, FYR The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.6 ............48 Intellectual property protection ............................... 4.0 ............48 Diversion of public funds ........................................ 4.0 ............42 Public trust in politicians ......................................... 3.3 ............52 Irregular payments and bribes ................................ 5.0 ............35 Judicial independence............................................ 3.5 ............79 Favoritism in decisions of government officials ....... 3.6 ............41 Wastefulness of government spending ................... 3.8 ............30 Burden of government regulation ........................... 4.0 ............27 Efficiency of legal framework in settling disputes .... 4.0 ............53 Efficiency of legal framework in challenging regs. ... 3.1 ............92 Transparency of government policymaking............. 4.6 ............29 Business costs of terrorism .................................... 5.6 ............53 Business costs of crime and violence..................... 4.8 ............51 Organized crime ..................................................... 4.8 ............65 Reliability of police services .................................... 4.5 ............53 Ethical behavior of firms ......................................... 4.3 ............45 Strength of auditing and reporting standards ......... 4.9 ............61 Efficacy of corporate boards .................................. 4.5 ............77 Protection of minority shareholders’ interests ......... 4.4 ............53 Strength of investor protection, 0–10 (best)* .......... 7.0 ............16 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.9 ............84 Quality of roads ...................................................... 3.4 ............91 Quality of railroad infrastructure .............................. 2.0 ............86 Quality of port infrastructure ................................... 3.4 ..........102 Quality of air transport infrastructure....................... 4.7 ............59 Available airline seat km/week, millions* ............... 16.4 ..........127 Quality of electricity supply ..................................... 4.9 ............66 Mobile telephone subscriptions/100 pop.* ......... 106.2 ............82 Fixed telephone lines/100 pop.* ........................... 19.0 ............61 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.0 ............91 Gross national savings, % GDP* .......................... 22.6 ............53 Inflation, annual % change* .................................... 2.8 ..............1 General government debt, % GDP* ..................... 35.8 ............52 Country credit rating, 0–100 (best)* ...................... 42.0 ............77 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 18.0 ............41 Business impact of tuberculosis ............................. 5.9 ............60 HIV prevalence, % adult pop.* ............................. <0.1 ..............1 Business impact of HIV/AIDS ................................. 5.9 ............54 Infant mortality, deaths/1,000 live births* ................ 6.5 ............43 Life expectancy, years*......................................... 75.0 ............58 Quality of primary education ................................... 4.3 ............56 Primary education enrollment, net %* .................. 86.5 ..........109 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 82.8 ............91 Tertiary education enrollment, gross %*................ 38.5 ............70 Quality of the education system ............................. 4.0 ............53 Quality of math and science education .................. 4.4 ............48 Quality of management schools ............................. 3.9 ............90 Internet access in schools ...................................... 5.5 ............33 Availability of research and training services ........... 3.8 ............93 Extent of staff training ............................................ 3.9 ............81 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 2 ..............3 No. days to start a business* ................................. 2.0 ..............2 Agricultural policy costs.......................................... 4.3 ............23 Prevalence of trade barriers ................................... 4.4 ............73 Trade tariffs, % duty* .............................................. 5.3 ............71 Prevalence of foreign ownership............................. 3.9 ..........112 Business impact of rules on FDI ............................. 5.2 ............20 Burden of customs procedures .............................. 4.7 ............36 Imports as a percentage of GDP* ........................ 74.4 ............29 Degree of customer orientation .............................. 4.7 ............54 Buyer sophistication ............................................... 2.8 ..........118 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............63 Flexibility of wage determination ............................. 5.7 ............18 Hiring and firing practices ....................................... 4.4 ............27 Redundancy costs, weeks of salary* .................... 13.0 ............57 Effect of taxation on incentives to work .................. 4.4 ............19 Pay and productivity............................................... 4.7 ............18 Reliance on professional management ................... 3.7 ..........107 Country capacity to retain talent............................. 2.5 ..........127 Country capacity to attract talent ........................... 2.2 ..........134 Women in labor force, ratio to men* ..................... 0.66 ..........104 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.3 ............76 Affordability of financial services ............................. 4.3 ............54 Financing through local equity market .................... 3.4 ............74 Ease of access to loans ......................................... 3.0 ............55 Venture capital availability ....................................... 2.9 ............52 Soundness of banks .............................................. 5.3 ............52 Regulation of securities exchanges ........................ 4.5 ............50 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.9 ............69 Firm-level technology absorption ............................ 4.2 ..........105 FDI and technology transfer ................................... 4.6 ............76 Individuals using Internet, %* ............................... 61.2 ............50 Fixed broadband Internet subscriptions/100 pop.* . 15.7 ............45 Int’l Internet bandwidth, kb/s per user* ................ 36.4 ............66 Mobile broadband subscriptions/100 pop.*.......... 38.3 ............55 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.6 ..........109 Foreign market size index, 1–7 (best)* .................... 3.7 ..........102 GDP (PPP$ billions)* ............................................ 22.6 ..........113 Exports as a percentage of GDP* ........................ 53.0 ............42 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............49 Local supplier quality.............................................. 4.4 ............71 State of cluster development.................................. 3.5 ............95 Nature of competitive advantage ............................ 2.6 ..........132 Value chain breadth................................................ 3.7 ............72 Control of international distribution ......................... 3.9 ............81 Production process sophistication.......................... 3.8 ............73 Extent of marketing ................................................ 4.1 ............78 Willingness to delegate authority ............................ 3.3 ..........113 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............91 Quality of scientific research institutions ................. 3.7 ............71 Company spending on R&D................................... 3.1 ............67 University-industry collaboration in R&D ................. 3.7 ............60 Gov’t procurement of advanced tech products ...... 3.6 ............56 Availability of scientists and engineers .................... 3.9 ............81 PCT patents, applications/million pop.* .................. 0.2 ............91 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............43 Extent of market dominance .................................. 3.7 ............70 Effectiveness of anti-monopoly policy ..................... 4.2 ............62 Effect of taxation on incentives to invest................. 4.5 ............19 Total tax rate, % profits* ......................................... 8.2 ..............1 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 255 2.1: Country/Economy Profiles Madagascar Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 23.0 GDP (US$ billions) .......................................... 11.2 GDP per capita (US$) ...................................... 488 GDP (PPP) as share (%) of world total ............ 0.03 Madagascar 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 130 ..... 3.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 132 ......3.4 GCI 2012–2013 (out of 144) ................................... 130 ......3.4 GCI 2011–2012 (out of 142) ................................... 130 ......3.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................129 ......3.5 7 Innovation Institutions .............................................................. 128 ......3.1 Infrastructure .......................................................... 135 ......2.1 Macroeconomic environment ................................... 81 ......4.6 Health and primary education ................................. 125 ......4.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................128 ......3.3 Market size Higher education and training ................................. 130 ......2.6 Goods market efficiency ........................................ 102 ......4.1 Labor market efficiency ............................................ 39 ......4.5 Financial market development ................................ 132 ......2.9 Technological readiness .......................................... 127 ......2.6 Market size ............................................................. 114 ......2.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........105 ......3.3 Business sophistication ......................................... 117 ......3.5 Innovation ................................................................. 94 ......3.1 Madagascar Sub-Saharan Africa The most problematic factors for doing business Government instability/coups ............................................16.6 Policy instability .................................................................15.4 Access to financing ...........................................................15.1 Corruption .........................................................................14.9 Inadequate supply of infrastructure ......................................7.8 Crime and theft ...................................................................5.3 Tax rates..............................................................................4.6 Tax regulations ....................................................................4.0 Inadequately educated workforce ........................................3.9 Inefficient government bureaucracy .....................................3.2 Inflation ................................................................................3.2 Foreign currency regulations ................................................1.4 Poor work ethic in national labor force ................................1.4 Restrictive labor regulations .................................................1.4 Insufficient capacity to innovate ...........................................1.1 Poor public health ...............................................................0.5 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 256 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Madagascar The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.1 ..........130 Intellectual property protection ............................... 2.9 ..........115 Diversion of public funds ........................................ 2.3 ..........126 Public trust in politicians ......................................... 2.1 ..........120 Irregular payments and bribes ................................ 3.0 ..........117 Judicial independence............................................ 2.2 ..........134 Favoritism in decisions of government officials ....... 2.7 ............96 Wastefulness of government spending ................... 2.4 ..........117 Burden of government regulation ........................... 3.5 ............69 Efficiency of legal framework in settling disputes .... 2.9 ..........117 Efficiency of legal framework in challenging regs. ... 2.7 ..........117 Transparency of government policymaking............. 3.1 ..........132 Business costs of terrorism .................................... 4.5 ..........112 Business costs of crime and violence..................... 3.7 ..........106 Organized crime ..................................................... 4.1 ..........110 Reliability of police services .................................... 2.8 ..........130 Ethical behavior of firms ......................................... 3.4 ..........120 Strength of auditing and reporting standards ......... 4.1 ..........104 Efficacy of corporate boards .................................. 4.4 ............85 Protection of minority shareholders’ interests ......... 3.4 ..........120 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.1 ..........122 Quality of roads ...................................................... 2.6 ..........129 Quality of railroad infrastructure .............................. 1.8 ............92 Quality of port infrastructure ................................... 3.4 ..........103 Quality of air transport infrastructure....................... 3.4 ..........114 Available airline seat km/week, millions* ............... 40.0 ..........107 Quality of electricity supply ..................................... 2.3 ..........130 Mobile telephone subscriptions/100 pop.* ........... 36.1 ..........139 Fixed telephone lines/100 pop.* ............................. 1.1 ..........123 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.5 ............44 Gross national savings, % GDP* .......................... 19.2 ............74 Inflation, annual % change* .................................... 5.8 ..........106 General government debt, % GDP* ..................... 49.8 ............86 Country credit rating, 0–100 (best)* ...................... 18.2 ..........136 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 5,831.2 ............52 Business impact of malaria .................................... 3.4 ............64 Tuberculosis cases/100,000 pop.* ..................... 234.0 ..........124 Business impact of tuberculosis ............................. 4.4 ..........112 HIV prevalence, % adult pop.* ............................... 0.5 ............88 Business impact of HIV/AIDS ................................. 5.0 ............87 Infant mortality, deaths/1,000 live births* .............. 40.9 ..........111 Life expectancy, years*......................................... 64.2 ..........113 Quality of primary education ................................... 2.6 ..........123 Primary education enrollment, net %* .................. 77.1 ..........129 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 38.0 ..........130 Tertiary education enrollment, gross %*.................. 4.2 ..........132 Quality of the education system ............................. 3.0 ..........115 Quality of math and science education .................. 3.7 ............93 Quality of management schools ............................. 3.8 ............93 Internet access in schools ...................................... 2.4 ..........135 Availability of research and training services ........... 3.4 ..........117 Extent of staff training ............................................ 3.7 ..........102 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 2 ..............3 No. days to start a business* ................................. 8.0 ............39 Agricultural policy costs.......................................... 3.5 ..........100 Prevalence of trade barriers ................................... 4.0 ..........109 Trade tariffs, % duty* .............................................. 7.6 ............88 Prevalence of foreign ownership............................. 4.3 ............96 Business impact of rules on FDI ............................. 4.0 ..........102 Burden of customs procedures .............................. 3.4 ..........114 Imports as a percentage of GDP* ........................ 42.0 ............82 Degree of customer orientation .............................. 4.5 ............74 Buyer sophistication ............................................... 2.5 ..........133 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............77 Flexibility of wage determination ............................. 5.2 ............57 Hiring and firing practices ....................................... 4.2 ............36 Redundancy costs, weeks of salary* .................... 12.3 ............54 Effect of taxation on incentives to work .................. 3.1 ..........111 Pay and productivity............................................... 3.9 ............71 Reliance on professional management ................... 3.9 ............91 Country capacity to retain talent............................. 2.9 ..........104 Country capacity to attract talent ........................... 3.0 ............96 Women in labor force, ratio to men* ..................... 0.97 ..............8 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.5 ..........127 Affordability of financial services ............................. 3.1 ..........132 Financing through local equity market .................... 2.3 ..........125 Ease of access to loans ......................................... 2.7 ............78 Venture capital availability ....................................... 2.5 ............89 Soundness of banks .............................................. 4.0 ..........119 Regulation of securities exchanges ........................ 2.5 ..........133 Legal rights index, 0–10 (best)* ................................. 2 ..........137 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.3 ..........103 Firm-level technology absorption ............................ 4.4 ............87 FDI and technology transfer ................................... 4.2 ..........103 Individuals using Internet, %* ................................. 2.2 ..........138 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........135 Int’l Internet bandwidth, kb/s per user* .................. 0.4 ..........143 Mobile broadband subscriptions/100 pop.*............ 0.4 ..........128 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.6 ..........114 Foreign market size index, 1–7 (best)* .................... 3.4 ..........117 GDP (PPP$ billions)* ............................................ 22.3 ..........114 Exports as a percentage of GDP* ........................ 28.8 ..........100 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.4 ............94 Local supplier quality.............................................. 3.9 ..........101 State of cluster development.................................. 2.9 ..........133 Nature of competitive advantage ............................ 2.7 ..........124 Value chain breadth................................................ 3.5 ............99 Control of international distribution ......................... 3.3 ..........128 Production process sophistication.......................... 3.3 ..........110 Extent of marketing ................................................ 3.4 ..........123 Willingness to delegate authority ............................ 3.6 ............83 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.6 ............83 Quality of scientific research institutions ................. 3.2 ..........104 Company spending on R&D................................... 2.9 ............88 University-industry collaboration in R&D ................. 3.3 ............93 Gov’t procurement of advanced tech products ...... 3.3 ............83 Availability of scientists and engineers .................... 4.4 ............38 PCT patents, applications/million pop.* .................. 0.0 ..........109 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.8 ............90 Extent of market dominance .................................. 3.3 ..........112 Effectiveness of anti-monopoly policy ..................... 3.4 ..........119 Effect of taxation on incentives to invest................. 3.1 ..........125 Total tax rate, % profits* ....................................... 35.8 ............63 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 257 2.1: Country/Economy Profiles Malawi Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 17.1 GDP (US$ billions) ............................................ 3.8 GDP per capita (US$) ...................................... 223 GDP (PPP) as share (%) of world total ............ 0.02 Malawi 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 132 ..... 3.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 136 ......3.3 GCI 2012–2013 (out of 144) ................................... 129 ......3.4 GCI 2011–2012 (out of 142) ................................... 117 ......3.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................139 ......3.2 7 Innovation Institutions ................................................................ 77 ......3.7 Infrastructure .......................................................... 131 ......2.2 Macroeconomic environment ................................. 144 ......2.4 Health and primary education ................................. 123 ......4.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................122 ......3.4 Market size Higher education and training ................................. 132 ......2.6 Goods market efficiency ........................................ 108 ......4.0 Labor market efficiency ............................................ 28 ......4.6 Financial market development .................................. 79 ......3.8 Technological readiness .......................................... 135 ......2.4 Market size ............................................................. 123 ......2.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........115 ......3.2 Business sophistication ......................................... 108 ......3.5 Innovation ............................................................... 115 ......2.8 Malawi Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................19.1 Corruption .........................................................................16.8 Inadequate supply of infrastructure ....................................10.1 Inflation ................................................................................9.6 Tax rates..............................................................................8.8 Inefficient government bureaucracy .....................................8.2 Crime and theft ...................................................................6.7 Foreign currency regulations ................................................6.4 Policy instability ...................................................................5.1 Inadequately educated workforce ........................................2.2 Tax regulations ....................................................................1.7 Poor work ethic in national labor force ................................1.5 Restrictive labor regulations .................................................1.3 Insufficient capacity to innovate ...........................................1.2 Poor public health ...............................................................0.8 Government instability/coups ..............................................0.5 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 258 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Malawi The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.9 ............83 Intellectual property protection ............................... 3.1 ..........100 Diversion of public funds ........................................ 2.6 ..........107 Public trust in politicians ......................................... 2.7 ............86 Irregular payments and bribes ................................ 3.5 ............94 Judicial independence............................................ 4.0 ............59 Favoritism in decisions of government officials ....... 2.7 ............97 Wastefulness of government spending ................... 2.6 ..........106 Burden of government regulation ........................... 3.7 ............44 Efficiency of legal framework in settling disputes .... 3.7 ............72 Efficiency of legal framework in challenging regs. ... 3.6 ............49 Transparency of government policymaking............. 3.6 ..........102 Business costs of terrorism .................................... 5.7 ............47 Business costs of crime and violence..................... 3.6 ..........111 Organized crime ..................................................... 5.1 ............56 Reliability of police services .................................... 4.0 ............82 Ethical behavior of firms ......................................... 3.9 ............78 Strength of auditing and reporting standards ......... 4.7 ............70 Efficacy of corporate boards .................................. 4.7 ............58 Protection of minority shareholders’ interests ......... 4.4 ............50 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.1 ..........118 Quality of roads ...................................................... 3.3 ............99 Quality of railroad infrastructure .............................. 1.9 ............89 Quality of port infrastructure ................................... 2.6 ..........132 Quality of air transport infrastructure....................... 2.8 ..........132 Available airline seat km/week, millions* ................. 9.3 ..........136 Quality of electricity supply ..................................... 2.9 ..........113 Mobile telephone subscriptions/100 pop.* ........... 32.3 ..........141 Fixed telephone lines/100 pop.* ............................. 0.2 ..........143 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –6.7 ..........125 Gross national savings, % GDP* .......................... 16.9 ............93 Inflation, annual % change* .................................. 27.7 ..........142 General government debt, % GDP* ..................... 68.9 ..........112 Country credit rating, 0–100 (best)* ...................... 19.7 ..........130 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 27,661.7 ............70 Business impact of malaria .................................... 3.1 ............71 Tuberculosis cases/100,000 pop.* ..................... 163.0 ..........109 Business impact of tuberculosis ............................. 3.7 ..........137 HIV prevalence, % adult pop.* ............................. 10.8 ..........135 Business impact of HIV/AIDS ................................. 3.1 ..........142 Infant mortality, deaths/1,000 live births* .............. 46.0 ..........118 Life expectancy, years*......................................... 54.7 ..........132 Quality of primary education ................................... 2.5 ..........127 Primary education enrollment, net %* .................. 96.9 ............46 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 34.2 ..........133 Tertiary education enrollment, gross %*.................. 0.8 ..........141 Quality of the education system ............................. 3.2 ............99 Quality of math and science education .................. 3.0 ..........119 Quality of management schools ............................. 3.2 ..........127 Internet access in schools ...................................... 2.7 ..........128 Availability of research and training services ........... 3.4 ..........113 Extent of staff training ............................................ 4.0 ............65 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 40.0 ..........127 Agricultural policy costs.......................................... 3.6 ............91 Prevalence of trade barriers ................................... 4.6 ............34 Trade tariffs, % duty* .............................................. 9.7 ..........103 Prevalence of foreign ownership............................. 4.6 ............67 Business impact of rules on FDI ............................. 4.1 ............99 Burden of customs procedures .............................. 3.8 ............80 Imports as a percentage of GDP* ........................ 70.2 ............32 Degree of customer orientation .............................. 4.0 ..........108 Buyer sophistication ............................................... 2.9 ..........117 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............68 Flexibility of wage determination ............................. 5.3 ............48 Hiring and firing practices ....................................... 3.6 ............90 Redundancy costs, weeks of salary* .................... 16.7 ............80 Effect of taxation on incentives to work .................. 3.3 ..........100 Pay and productivity............................................... 4.0 ............61 Reliance on professional management ................... 4.7 ............40 Country capacity to retain talent............................. 3.3 ............78 Country capacity to attract talent ........................... 3.5 ............64 Women in labor force, ratio to men* ..................... 1.05 ..............1 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.8 ..........112 Affordability of financial services ............................. 3.1 ..........133 Financing through local equity market .................... 3.5 ............63 Ease of access to loans ......................................... 2.3 ..........114 Venture capital availability ....................................... 2.2 ..........112 Soundness of banks .............................................. 4.8 ............74 Regulation of securities exchanges ........................ 4.0 ............74 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.8 ..........129 Firm-level technology absorption ............................ 3.8 ..........125 FDI and technology transfer ................................... 3.8 ..........119 Individuals using Internet, %* ................................. 5.4 ..........130 Fixed broadband Internet subscriptions/100 pop.* ... 0.0 ..........139 Int’l Internet bandwidth, kb/s per user* .................. 2.2 ..........138 Mobile broadband subscriptions/100 pop.*............ 3.9 ..........112 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.4 ..........122 Foreign market size index, 1–7 (best)* .................... 3.2 ..........124 GDP (PPP$ billions)* ............................................ 15.0 ..........124 Exports as a percentage of GDP* ........................ 30.9 ............93 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.4 ............92 Local supplier quality.............................................. 3.7 ..........119 State of cluster development.................................. 3.7 ............79 Nature of competitive advantage ............................ 2.8 ..........120 Value chain breadth................................................ 3.2 ..........119 Control of international distribution ......................... 3.5 ..........116 Production process sophistication.......................... 3.0 ..........127 Extent of marketing ................................................ 3.4 ..........122 Willingness to delegate authority ............................ 3.6 ............87 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.2 ..........116 Quality of scientific research institutions ................. 3.1 ..........110 Company spending on R&D................................... 2.8 ..........105 University-industry collaboration in R&D ................. 2.8 ..........120 Gov’t procurement of advanced tech products ...... 3.0 ..........110 Availability of scientists and engineers .................... 3.5 ..........103 PCT patents, applications/million pop.* .................. 0.0 ..........122 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............76 Extent of market dominance .................................. 3.1 ..........122 Effectiveness of anti-monopoly policy ..................... 3.9 ............79 Effect of taxation on incentives to invest................. 3.3 ..........103 Total tax rate, % profits* ....................................... 34.9 ............57 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 259 2.1: Country/Economy Profiles Malaysia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 29.6 GDP (US$ billions) ........................................ 312.4 GDP per capita (US$) ................................. 10,548 GDP (PPP) as share (%) of world total ............ 0.60 Malaysia 20,000 Emerging and Developing Asia 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 20 ..... 5.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 24 ......5.0 GCI 2012–2013 (out of 144) ..................................... 25 ......5.1 GCI 2011–2012 (out of 142) ..................................... 21 ......5.1 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (36.1%) .......................................23 ......5.5 7 Innovation Institutions ................................................................ 20 ......5.1 Infrastructure ............................................................ 25 ......5.5 Macroeconomic environment ................................... 44 ......5.3 Health and primary education ................................... 33 ......6.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................24 ......4.9 Market size Higher education and training ................................... 46 ......4.8 Goods market efficiency ............................................ 7 ......5.4 Labor market efficiency ............................................ 19 ......4.8 Financial market development .................................... 4 ......5.6 Technological readiness ............................................ 60 ......4.2 Market size ............................................................... 26 ......4.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (13.9%) ...........17 ......5.0 Business sophistication ........................................... 15 ......5.2 Innovation ................................................................. 21 ......4.7 Malaysia Emerging and Developing Asia The most problematic factors for doing business Corruption .........................................................................17.0 Access to financing .............................................................9.7 Crime and theft ...................................................................9.5 Inefficient government bureaucracy .....................................8.8 Tax rates..............................................................................6.6 Inflation ................................................................................6.4 Policy instability ...................................................................5.9 Poor work ethic in national labor force ................................5.8 Government instability/coups ..............................................5.2 Insufficient capacity to innovate ...........................................5.1 Inadequate supply of infrastructure ......................................4.4 Tax regulations ....................................................................4.4 Inadequately educated workforce ........................................3.9 Restrictive labor regulations .................................................3.4 Foreign currency regulations ................................................3.4 Poor public health ...............................................................0.7 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 260 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Malaysia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.3 ............26 Intellectual property protection ............................... 5.2 ............25 Diversion of public funds ........................................ 4.8 ............26 Public trust in politicians ......................................... 4.7 ............17 Irregular payments and bribes ................................ 4.9 ............37 Judicial independence............................................ 4.9 ............36 Favoritism in decisions of government officials ....... 4.5 ............14 Wastefulness of government spending ................... 4.9 ..............8 Burden of government regulation ........................... 5.0 ..............4 Efficiency of legal framework in settling disputes .... 5.3 ............14 Efficiency of legal framework in challenging regs. ... 4.8 ............13 Transparency of government policymaking............. 5.2 ............15 Business costs of terrorism .................................... 5.4 ............65 Business costs of crime and violence..................... 4.9 ............47 Organized crime ..................................................... 5.2 ............51 Reliability of police services .................................... 5.1 ............35 Ethical behavior of firms ......................................... 5.3 ............23 Strength of auditing and reporting standards ......... 5.7 ............19 Efficacy of corporate boards .................................. 5.6 ............10 Protection of minority shareholders’ interests ......... 5.3 ............13 Strength of investor protection, 0–10 (best)* .......... 8.7 ..............4 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.6 ............20 Quality of roads ...................................................... 5.6 ............19 Quality of railroad infrastructure .............................. 5.0 ............12 Quality of port infrastructure ................................... 5.6 ............19 Quality of air transport infrastructure....................... 5.7 ............19 Available airline seat km/week, millions* .......... 1,959.0 ............22 Quality of electricity supply ..................................... 5.7 ............39 Mobile telephone subscriptions/100 pop.* ......... 144.7 ............30 Fixed telephone lines/100 pop.* ........................... 15.3 ............73 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.6 ..........102 Gross national savings, % GDP* .......................... 30.1 ............25 Inflation, annual % change* .................................... 2.1 ..............1 General government debt, % GDP* ..................... 58.2 ............97 Country credit rating, 0–100 (best)* ...................... 72.0 ............32 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 33.5 ............28 Business impact of malaria .................................... 5.5 ............21 Tuberculosis cases/100,000 pop.* ....................... 80.0 ............86 Business impact of tuberculosis ............................. 5.3 ............84 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 5.1 ............83 Infant mortality, deaths/1,000 live births* ................ 7.3 ............45 Life expectancy, years*......................................... 74.8 ............60 Quality of primary education ................................... 5.3 ............17 Primary education enrollment, net %* .................. 95.5 ............60 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 67.2 ..........108 Tertiary education enrollment, gross %*................ 36.0 ............72 Quality of the education system ............................. 5.3 ............10 Quality of math and science education .................. 5.2 ............16 Quality of management schools ............................. 5.1 ............25 Internet access in schools ...................................... 5.4 ............34 Availability of research and training services ........... 5.4 ............13 Extent of staff training ............................................ 5.3 ..............4 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 5.2 ..............2 Prevalence of trade barriers ................................... 5.1 ..............9 Trade tariffs, % duty* .............................................. 6.2 ............81 Prevalence of foreign ownership............................. 5.3 ............30 Business impact of rules on FDI ............................. 5.5 ............11 Burden of customs procedures .............................. 5.2 ............20 Imports as a percentage of GDP* ........................ 80.0 ............24 Degree of customer orientation .............................. 5.5 ............11 Buyer sophistication ............................................... 4.9 ..............4 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.4 ............14 Flexibility of wage determination ............................. 5.5 ............33 Hiring and firing practices ....................................... 4.9 ..............9 Redundancy costs, weeks of salary* .................... 23.9 ..........111 Effect of taxation on incentives to work .................. 5.1 ..............8 Pay and productivity............................................... 5.4 ..............2 Reliance on professional management ................... 5.6 ............15 Country capacity to retain talent............................. 5.1 ..............9 Country capacity to attract talent ........................... 5.0 ............12 Women in labor force, ratio to men* ..................... 0.59 ..........119 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.6 ............17 Affordability of financial services ............................. 5.6 ............12 Financing through local equity market .................... 5.1 ..............8 Ease of access to loans ......................................... 4.8 ..............2 Venture capital availability ....................................... 4.6 ..............2 Soundness of banks .............................................. 5.7 ............35 Regulation of securities exchanges ........................ 5.5 ............13 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.7 ............33 Firm-level technology absorption ............................ 5.6 ............24 FDI and technology transfer ................................... 5.5 ..............8 Individuals using Internet, %* ............................... 67.0 ............41 Fixed broadband Internet subscriptions/100 pop.* ... 8.2 ............69 Int’l Internet bandwidth, kb/s per user* ................ 22.1 ............81 Mobile broadband subscriptions/100 pop.*.......... 12.5 ............93 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.6 ............29 Foreign market size index, 1–7 (best)* .................... 5.8 ............20 GDP (PPP$ billions)* .......................................... 525.7 ............29 Exports as a percentage of GDP* ........................ 85.6 ............15 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.5 ..............6 Local supplier quality.............................................. 5.2 ............24 State of cluster development.................................. 5.3 ..............9 Nature of competitive advantage ............................ 4.8 ............26 Value chain breadth................................................ 5.2 ............11 Control of international distribution ......................... 5.2 ..............7 Production process sophistication.......................... 5.2 ............23 Extent of marketing ................................................ 5.3 ............17 Willingness to delegate authority ............................ 5.2 ............10 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.2 ............13 Quality of scientific research institutions ................. 5.2 ............20 Company spending on R&D................................... 4.9 ..............9 University-industry collaboration in R&D ................. 5.3 ............12 Gov’t procurement of advanced tech products ...... 5.2 ..............3 Availability of scientists and engineers .................... 5.2 ..............9 PCT patents, applications/million pop.* ................ 12.6 ............32 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.5 ............34 Extent of market dominance .................................. 5.2 ............11 Effectiveness of anti-monopoly policy ..................... 5.0 ............17 Effect of taxation on incentives to invest................. 5.2 ............10 Total tax rate, % profits* ....................................... 36.3 ............65 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 261 2.1: Country/Economy Profiles Mali Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 16.9 GDP (US$ billions) .......................................... 11.1 GDP per capita (US$) ...................................... 657 GDP (PPP) as share (%) of world total ............ 0.02 Mali 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 128 ..... 3.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 135 ......3.3 GCI 2012–2013 (out of 144) ................................... 128 ......3.4 GCI 2011–2012 (out of 142) ................................... 128 ......3.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................128 ......3.5 7 Innovation Institutions .............................................................. 126 ......3.2 Infrastructure .......................................................... 103 ......3.2 Macroeconomic environment ................................... 86 ......4.5 Health and primary education ................................. 138 ......3.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................129 ......3.2 Market size Higher education and training ................................. 128 ......2.7 Goods market efficiency ........................................ 104 ......4.1 Labor market efficiency .......................................... 102 ......3.9 Financial market development ................................ 122 ......3.3 Technological readiness .......................................... 112 ......2.9 Market size ............................................................. 122 ......2.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............97 ......3.4 Business sophistication ......................................... 102 ......3.6 Innovation ................................................................. 92 ......3.1 Mali Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................26.9 Corruption .........................................................................15.3 Inefficient government bureaucracy .....................................8.4 Inadequate supply of infrastructure ......................................8.1 Inadequately educated workforce ........................................6.6 Policy instability ...................................................................6.1 Government instability/coups ..............................................4.7 Restrictive labor regulations .................................................4.5 Tax regulations ....................................................................3.5 Poor work ethic in national labor force ................................3.3 Foreign currency regulations ................................................3.2 Tax rates..............................................................................2.5 Crime and theft ...................................................................2.4 Insufficient capacity to innovate ...........................................2.3 Poor public health ...............................................................1.3 Inflation ................................................................................0.8 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 262 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Mali The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.4 ..........114 Intellectual property protection ............................... 3.0 ..........109 Diversion of public funds ........................................ 2.5 ..........116 Public trust in politicians ......................................... 2.8 ............82 Irregular payments and bribes ................................ 2.5 ..........134 Judicial independence............................................ 3.1 ..........103 Favoritism in decisions of government officials ....... 2.7 ............95 Wastefulness of government spending ................... 3.2 ............69 Burden of government regulation ........................... 3.2 ............95 Efficiency of legal framework in settling disputes .... 3.4 ............87 Efficiency of legal framework in challenging regs. ... 3.5 ............58 Transparency of government policymaking............. 3.7 ............97 Business costs of terrorism .................................... 2.5 ..........141 Business costs of crime and violence..................... 2.9 ..........131 Organized crime ..................................................... 3.2 ..........134 Reliability of police services .................................... 3.8 ............90 Ethical behavior of firms ......................................... 3.8 ............87 Strength of auditing and reporting standards ......... 3.3 ..........135 Efficacy of corporate boards .................................. 3.5 ..........138 Protection of minority shareholders’ interests ......... 3.6 ..........104 Strength of investor protection, 0–10 (best)* .......... 3.7 ..........117 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.6 ..........101 Quality of roads ...................................................... 3.4 ............94 Quality of railroad infrastructure .............................. 2.1 ............85 Quality of port infrastructure ................................... 3.1 ..........112 Quality of air transport infrastructure....................... 3.8 ............96 Available airline seat km/week, millions* ............... 28.3 ..........113 Quality of electricity supply ..................................... 3.5 ..........101 Mobile telephone subscriptions/100 pop.* ......... 129.1 ............44 Fixed telephone lines/100 pop.* ............................. 0.7 ..........130 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.7 ............68 Gross national savings, % GDP* .......................... 14.9 ..........108 Inflation, annual % change* .................................. –0.6 ............79 General government debt, % GDP* ..................... 31.5 ............39 Country credit rating, 0–100 (best)* ...................... 18.5 ..........134 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 20,197.2 ............63 Business impact of malaria .................................... 3.2 ............68 Tuberculosis cases/100,000 pop.* ....................... 60.0 ............78 Business impact of tuberculosis ............................. 4.0 ..........129 HIV prevalence, % adult pop.* ............................... 0.9 ..........106 Business impact of HIV/AIDS ................................. 3.9 ..........128 Infant mortality, deaths/1,000 live births* .............. 79.6 ..........141 Life expectancy, years*......................................... 54.6 ..........133 Quality of primary education ................................... 2.8 ..........120 Primary education enrollment, net %* .................. 68.7 ..........136 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 44.5 ..........126 Tertiary education enrollment, gross %*.................. 7.5 ..........122 Quality of the education system ............................. 3.0 ..........110 Quality of math and science education .................. 3.1 ..........114 Quality of management schools ............................. 3.4 ..........120 Internet access in schools ...................................... 3.4 ..........109 Availability of research and training services ........... 3.4 ..........115 Extent of staff training ............................................ 3.3 ..........126 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 11.0 ............57 Agricultural policy costs.......................................... 3.9 ............59 Prevalence of trade barriers ................................... 3.2 ..........141 Trade tariffs, % duty* ............................................ 10.8 ..........111 Prevalence of foreign ownership............................. 3.5 ..........120 Business impact of rules on FDI ............................. 3.9 ..........109 Burden of customs procedures .............................. 3.2 ..........121 Imports as a percentage of GDP* ........................ 42.3 ............80 Degree of customer orientation .............................. 4.2 ............95 Buyer sophistication ............................................... 2.9 ..........114 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.5 ............53 Flexibility of wage determination ............................. 4.7 ............94 Hiring and firing practices ....................................... 4.3 ............35 Redundancy costs, weeks of salary* .................... 13.7 ............63 Effect of taxation on incentives to work .................. 3.3 ............96 Pay and productivity............................................... 3.5 ..........106 Reliance on professional management ................... 2.9 ..........135 Country capacity to retain talent............................. 3.4 ............65 Country capacity to attract talent ........................... 3.3 ............78 Women in labor force, ratio to men* ..................... 0.63 ..........109 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.5 ..........126 Affordability of financial services ............................. 3.6 ..........113 Financing through local equity market .................... 2.4 ..........118 Ease of access to loans ......................................... 2.7 ............84 Venture capital availability ....................................... 2.4 ............94 Soundness of banks .............................................. 3.9 ..........123 Regulation of securities exchanges ........................ 2.6 ..........129 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.2 ..........105 Firm-level technology absorption ............................ 4.1 ..........107 FDI and technology transfer ................................... 4.3 ............88 Individuals using Internet, %* ................................. 2.3 ..........136 Fixed broadband Internet subscriptions/100 pop.* ... 0.0 ..........138 Int’l Internet bandwidth, kb/s per user* .................. 5.9 ..........113 Mobile broadband subscriptions/100 pop.*............ 1.8 ..........119 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.5 ..........121 Foreign market size index, 1–7 (best)* .................... 3.3 ..........123 GDP (PPP$ billions)* ............................................ 18.6 ..........120 Exports as a percentage of GDP* ........................ 27.4 ..........107 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............63 Local supplier quality.............................................. 4.2 ............84 State of cluster development.................................. 3.9 ............56 Nature of competitive advantage ............................ 3.4 ............78 Value chain breadth................................................ 3.3 ..........111 Control of international distribution ......................... 3.7 ..........107 Production process sophistication.......................... 3.0 ..........128 Extent of marketing ................................................ 3.5 ..........112 Willingness to delegate authority ............................ 3.3 ..........114 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.3 ..........112 Quality of scientific research institutions ................. 3.6 ............79 Company spending on R&D................................... 2.8 ............99 University-industry collaboration in R&D ................. 3.2 ..........100 Gov’t procurement of advanced tech products ...... 3.6 ............58 Availability of scientists and engineers .................... 4.3 ............50 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.7 ............97 Extent of market dominance .................................. 4.2 ............33 Effectiveness of anti-monopoly policy ..................... 4.0 ............69 Effect of taxation on incentives to invest................. 3.2 ..........113 Total tax rate, % profits* ....................................... 49.5 ..........112 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 263 2.1: Country/Economy Profiles Malta Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.4 GDP (US$ billions) ............................................ 9.5 GDP per capita (US$) ................................. 22,872 GDP (PPP) as share (%) of world total ............ 0.01 Malta 50,000 Advanced economies 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 47 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 41 ......4.5 GCI 2012–2013 (out of 144) ..................................... 47 ......4.4 GCI 2011–2012 (out of 142) ..................................... 51 ......4.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................35 ......5.1 7 Innovation Institutions ................................................................ 40 ......4.5 Infrastructure ............................................................ 37 ......4.9 Macroeconomic environment ................................... 65 ......4.7 Health and primary education ................................... 20 ......6.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................44 ......4.4 Market size Higher education and training ................................... 42 ......4.9 Goods market efficiency .......................................... 31 ......4.7 Labor market efficiency ............................................ 54 ......4.3 Financial market development .................................. 36 ......4.6 Technological readiness ............................................ 21 ......5.6 Market size ............................................................. 126 ......2.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........41 ......4.0 Business sophistication ........................................... 36 ......4.5 Innovation ................................................................. 45 ......3.6 Malta Advanced economies The most problematic factors for doing business Inefficient government bureaucracy ...................................20.4 Access to financing ...........................................................15.4 Insufficient capacity to innovate .........................................13.1 Inadequately educated workforce ......................................11.3 Corruption ...........................................................................7.9 Inadequate supply of infrastructure ......................................7.9 Poor work ethic in national labor force ................................6.5 Tax rates..............................................................................5.7 Tax regulations ....................................................................3.3 Restrictive labor regulations .................................................3.0 Inflation ................................................................................2.3 Policy instability ...................................................................2.0 Government instability/coups ..............................................0.7 Foreign currency regulations ................................................0.4 Crime and theft ...................................................................0.1 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 264 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Malta The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.0 ............36 Intellectual property protection ............................... 4.5 ............36 Diversion of public funds ........................................ 4.1 ............40 Public trust in politicians ......................................... 3.5 ............43 Irregular payments and bribes ................................ 4.1 ............59 Judicial independence............................................ 4.6 ............40 Favoritism in decisions of government officials ....... 3.0 ............72 Wastefulness of government spending ................... 3.8 ............34 Burden of government regulation ........................... 3.4 ............76 Efficiency of legal framework in settling disputes .... 4.3 ............37 Efficiency of legal framework in challenging regs. ... 3.6 ............50 Transparency of government policymaking............. 4.0 ............65 Business costs of terrorism .................................... 5.6 ............55 Business costs of crime and violence..................... 5.7 ............13 Organized crime ..................................................... 5.8 ............26 Reliability of police services .................................... 5.3 ............33 Ethical behavior of firms ......................................... 4.3 ............44 Strength of auditing and reporting standards ......... 5.9 ............13 Efficacy of corporate boards .................................. 4.6 ............66 Protection of minority shareholders’ interests ......... 4.8 ............29 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.9 ............46 Quality of roads ...................................................... 3.7 ............85 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 5.5 ............20 Quality of air transport infrastructure....................... 5.5 ............30 Available airline seat km/week, millions* ............... 79.2 ............88 Quality of electricity supply ..................................... 4.7 ............77 Mobile telephone subscriptions/100 pop.* ......... 129.8 ............43 Fixed telephone lines/100 pop.* ........................... 53.9 ..............7 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.9 ............71 Gross national savings, % GDP* .......................... 14.4 ..........111 Inflation, annual % change* .................................... 1.0 ..............1 General government debt, % GDP* ..................... 71.7 ..........114 Country credit rating, 0–100 (best)* ...................... 69.2 ............35 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 11.0 ............30 Business impact of tuberculosis ............................. 6.2 ............38 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.1 ............36 Infant mortality, deaths/1,000 live births* ................ 5.8 ............38 Life expectancy, years*......................................... 80.7 ............22 Quality of primary education ................................... 5.5 ............12 Primary education enrollment, net %* .................. 95.1 ............65 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 86.3 ............82 Tertiary education enrollment, gross %*................ 41.2 ............66 Quality of the education system ............................. 5.0 ............16 Quality of math and science education .................. 5.3 ............13 Quality of management schools ............................. 4.9 ............31 Internet access in schools ...................................... 5.8 ............26 Availability of research and training services ........... 4.6 ............40 Extent of staff training ............................................ 4.4 ............40 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 11 ..........128 No. days to start a business* ............................... 39.5 ..........126 Agricultural policy costs.......................................... 4.3 ............25 Prevalence of trade barriers ................................... 4.4 ............59 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.8 ............60 Business impact of rules on FDI ............................. 5.3 ............15 Burden of customs procedures .............................. 4.7 ............40 Imports as a percentage of GDP* ........................ 94.7 ..............8 Degree of customer orientation .............................. 4.4 ............81 Buyer sophistication ............................................... 3.9 ............33 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.8 ............34 Flexibility of wage determination ............................. 5.3 ............52 Hiring and firing practices ....................................... 3.7 ............84 Redundancy costs, weeks of salary* ...................... 7.3 ............20 Effect of taxation on incentives to work .................. 4.2 ............27 Pay and productivity............................................... 4.1 ............58 Reliance on professional management ................... 4.0 ............84 Country capacity to retain talent............................. 4.1 ............37 Country capacity to attract talent ........................... 4.3 ............24 Women in labor force, ratio to men* ..................... 0.61 ..........116 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.4 ............26 Affordability of financial services ............................. 5.2 ............24 Financing through local equity market .................... 4.4 ............25 Ease of access to loans ......................................... 3.8 ............16 Venture capital availability ....................................... 3.1 ............40 Soundness of banks .............................................. 6.3 ............10 Regulation of securities exchanges ........................ 5.0 ............26 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.7 ............34 Firm-level technology absorption ............................ 5.2 ............38 FDI and technology transfer ................................... 5.2 ............13 Individuals using Internet, %* ............................... 68.9 ............39 Fixed broadband Internet subscriptions/100 pop.* . 32.8 ............13 Int’l Internet bandwidth, kb/s per user* ........... 1,204.6 ..............3 Mobile broadband subscriptions/100 pop.*.......... 40.6 ............53 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.1 ..........130 Foreign market size index, 1–7 (best)* .................... 3.7 ..........107 GDP (PPP$ billions)* ............................................ 11.6 ..........130 Exports as a percentage of GDP* ........................ 89.0 ............12 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.5 ..............4 Local supplier quality.............................................. 4.6 ............52 State of cluster development.................................. 4.0 ............49 Nature of competitive advantage ............................ 4.2 ............34 Value chain breadth................................................ 4.4 ............32 Control of international distribution ......................... 4.4 ............36 Production process sophistication.......................... 4.7 ............33 Extent of marketing ................................................ 4.5 ............51 Willingness to delegate authority ............................ 3.9 ............56 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............47 Quality of scientific research institutions ................. 3.9 ............59 Company spending on R&D................................... 3.3 ............55 University-industry collaboration in R&D ................. 3.9 ............51 Gov’t procurement of advanced tech products ...... 4.2 ............19 Availability of scientists and engineers .................... 4.2 ............57 PCT patents, applications/million pop.* ................ 10.2 ............35 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 6.1 ..............3 Extent of market dominance .................................. 4.1 ............44 Effectiveness of anti-monopoly policy ..................... 4.8 ............24 Effect of taxation on incentives to invest................. 4.3 ............27 Total tax rate, % profits* ....................................... 41.0 ............86 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 265 2.1: Country/Economy Profiles Mauritania Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 3.7 GDP (US$ billions) ............................................ 4.2 GDP per capita (US$) ................................... 1,127 GDP (PPP) as share (%) of world total ............ 0.01 Mauritania 8,000 Middle East, North Africa, and Pakistan 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 141 ..... 3.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 141 ......3.2 GCI 2012–2013 (out of 144) ................................... 134 ......3.3 GCI 2011–2012 (out of 142) ................................... 137 ......3.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................138 ......3.2 Innovation Institutions .............................................................. 138 ......2.8 Infrastructure .......................................................... 123 ......2.6 Macroeconomic environment ................................. 115 ......4.0 Health and primary education ................................. 137 ......3.5 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................143 ......2.7 Market size Higher education and training ................................. 141 ......2.2 Goods market efficiency ........................................ 138 ......3.4 Labor market efficiency .......................................... 141 ......3.1 Financial market development ................................ 141 ......2.5 Technological readiness .......................................... 123 ......2.7 Market size ............................................................. 131 ......2.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........138 ......2.6 Business sophistication ......................................... 142 ......2.9 Innovation ............................................................... 136 ......2.4 Mauritania Middle East, North Africa, and Pakistan The most problematic factors for doing business Access to financing ...........................................................28.2 Inadequate supply of infrastructure ....................................13.9 Corruption ...........................................................................8.9 Foreign currency regulations ................................................8.2 Government instability/coups ..............................................6.2 Restrictive labor regulations .................................................6.2 Inadequately educated workforce ........................................4.5 Poor work ethic in national labor force ................................4.2 Inefficient government bureaucracy .....................................3.4 Policy instability ...................................................................3.3 Inflation ................................................................................3.2 Crime and theft ...................................................................2.8 Tax rates..............................................................................2.8 Tax regulations ....................................................................1.9 Poor public health ...............................................................1.3 Insufficient capacity to innovate ...........................................0.9 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 266 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Mauritania The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.5 ..........139 Intellectual property protection ............................... 2.2 ..........141 Diversion of public funds ........................................ 2.5 ..........115 Public trust in politicians ......................................... 2.2 ..........115 Irregular payments and bribes ................................ 2.3 ..........141 Judicial independence............................................ 2.3 ..........125 Favoritism in decisions of government officials ....... 2.3 ..........128 Wastefulness of government spending ................... 2.6 ..........100 Burden of government regulation ........................... 3.1 ............98 Efficiency of legal framework in settling disputes .... 2.4 ..........138 Efficiency of legal framework in challenging regs. ... 2.1 ..........140 Transparency of government policymaking............. 2.6 ..........142 Business costs of terrorism .................................... 4.4 ..........116 Business costs of crime and violence..................... 4.7 ............57 Organized crime ..................................................... 4.9 ............64 Reliability of police services .................................... 3.0 ..........121 Ethical behavior of firms ......................................... 2.7 ..........143 Strength of auditing and reporting standards ......... 2.6 ..........142 Efficacy of corporate boards .................................. 2.8 ..........142 Protection of minority shareholders’ interests ......... 2.4 ..........143 Strength of investor protection, 0–10 (best)* .......... 3.7 ..........117 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.6 ..........134 Quality of roads ...................................................... 2.3 ..........137 Quality of railroad infrastructure .............................. 2.4 ............77 Quality of port infrastructure ................................... 2.4 ..........135 Quality of air transport infrastructure....................... 2.4 ..........140 Available airline seat km/week, millions* ............... 11.4 ..........133 Quality of electricity supply ..................................... 3.3 ..........105 Mobile telephone subscriptions/100 pop.* ......... 102.5 ............90 Fixed telephone lines/100 pop.* ............................. 1.4 ..........120 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.1 ............38 Gross national savings, % GDP* .......................... 10.0 ..........129 Inflation, annual % change* .................................... 4.1 ............82 General government debt, % GDP* ..................... 87.7 ..........122 Country credit rating, 0–100 (best)* ...................... 21.1 ..........126 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 17,649.5 ............60 Business impact of malaria .................................... 4.0 ............54 Tuberculosis cases/100,000 pop.* ..................... 350.0 ..........131 Business impact of tuberculosis ............................. 3.4 ..........141 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 3.7 ..........133 Infant mortality, deaths/1,000 live births* .............. 64.8 ..........133 Life expectancy, years*......................................... 61.4 ..........121 Quality of primary education ................................... 2.5 ..........129 Primary education enrollment, net %* .................. 69.6 ..........135 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 26.8 ..........139 Tertiary education enrollment, gross %*.................. 5.1 ..........128 Quality of the education system ............................. 2.7 ..........128 Quality of math and science education .................. 2.9 ..........123 Quality of management schools ............................. 2.8 ..........136 Internet access in schools ...................................... 2.1 ..........138 Availability of research and training services ........... 3.1 ..........128 Extent of staff training ............................................ 2.6 ..........144 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 19.0 ............90 Agricultural policy costs.......................................... 3.0 ..........130 Prevalence of trade barriers ................................... 3.2 ..........140 Trade tariffs, % duty* ............................................ 11.1 ..........116 Prevalence of foreign ownership............................. 2.7 ..........140 Business impact of rules on FDI ............................. 3.1 ..........132 Burden of customs procedures .............................. 3.0 ..........134 Imports as a percentage of GDP* ...................... 102.0 ..............7 Degree of customer orientation .............................. 2.8 ..........142 Buyer sophistication ............................................... 2.5 ..........135 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.4 ..........136 Flexibility of wage determination ............................. 4.6 ..........101 Hiring and firing practices ....................................... 3.3 ..........117 Redundancy costs, weeks of salary* .................... 10.5 ............43 Effect of taxation on incentives to work .................. 2.8 ..........126 Pay and productivity............................................... 2.5 ..........140 Reliance on professional management ................... 2.0 ..........144 Country capacity to retain talent............................. 2.3 ..........131 Country capacity to attract talent ........................... 2.5 ..........123 Women in labor force, ratio to men* ..................... 0.37 ..........132 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.9 ..........138 Affordability of financial services ............................. 3.2 ..........129 Financing through local equity market .................... 2.0 ..........136 Ease of access to loans ......................................... 2.0 ..........125 Venture capital availability ....................................... 1.9 ..........134 Soundness of banks .............................................. 3.1 ..........135 Regulation of securities exchanges ........................ 1.9 ..........138 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.5 ............86 Firm-level technology absorption ............................ 4.2 ..........104 FDI and technology transfer ................................... 3.4 ..........135 Individuals using Internet, %* ................................. 6.2 ..........128 Fixed broadband Internet subscriptions/100 pop.* ... 0.2 ..........121 Int’l Internet bandwidth, kb/s per user* .................. 2.6 ..........134 Mobile broadband subscriptions/100 pop.*............ 5.4 ..........108 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.0 ..........133 Foreign market size index, 1–7 (best)* .................... 3.3 ..........121 GDP (PPP$ billions)* .............................................. 8.2 ..........133 Exports as a percentage of GDP* ........................ 69.6 ............28 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.8 ..........127 Local supplier quality.............................................. 2.8 ..........141 State of cluster development.................................. 2.8 ..........135 Nature of competitive advantage ............................ 2.8 ..........116 Value chain breadth................................................ 3.1 ..........130 Control of international distribution ......................... 2.8 ..........143 Production process sophistication.......................... 2.6 ..........134 Extent of marketing ................................................ 2.9 ..........138 Willingness to delegate authority ............................ 2.4 ..........141 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.9 ..........131 Quality of scientific research institutions ................. 2.7 ..........124 Company spending on R&D................................... 2.7 ..........109 University-industry collaboration in R&D ................. 2.0 ..........141 Gov’t procurement of advanced tech products ...... 2.8 ..........126 Availability of scientists and engineers .................... 2.9 ..........139 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.1 ..........131 Extent of market dominance .................................. 3.1 ..........126 Effectiveness of anti-monopoly policy ..................... 2.8 ..........139 Effect of taxation on incentives to invest................. 3.1 ..........120 Total tax rate, % profits* ....................................... 68.2 ..........135 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 267 2.1: Country/Economy Profiles Mauritius Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 1.3 GDP (US$ billions) .......................................... 11.9 GDP per capita (US$) ................................... 9,160 GDP (PPP) as share (%) of world total ............ 0.02 Mauritius 20,000 Sub-Saharan Africa 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 39 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 45 ......4.4 GCI 2012–2013 (out of 144) ..................................... 54 ......4.4 GCI 2011–2012 (out of 142) ..................................... 54 ......4.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (39.6%) .......................................38 ......5.0 7 Innovation Institutions ................................................................ 35 ......4.6 Infrastructure ............................................................ 42 ......4.7 Macroeconomic environment ................................... 74 ......4.7 Health and primary education ................................... 42 ......6.1 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................59 ......4.2 Market size Higher education and training ................................... 54 ......4.7 Goods market efficiency .......................................... 25 ......4.9 Labor market efficiency ............................................ 52 ......4.3 Financial market development .................................. 26 ......4.7 Technological readiness ............................................ 63 ......4.0 Market size ............................................................. 113 ......2.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.4%) ...........53 ......3.8 Business sophistication ........................................... 33 ......4.5 Innovation ................................................................. 76 ......3.2 Mauritius Sub-Saharan Africa The most problematic factors for doing business Inefficient government bureaucracy ...................................17.0 Insufficient capacity to innovate .........................................15.8 Access to financing ...........................................................13.1 Inadequate supply of infrastructure ......................................9.6 Inadequately educated workforce ........................................9.0 Poor work ethic in national labor force ................................8.0 Restrictive labor regulations .................................................7.5 Corruption ...........................................................................7.2 Inflation ................................................................................4.7 Tax rates..............................................................................2.7 Policy instability ...................................................................2.5 Tax regulations ....................................................................1.7 Foreign currency regulations ................................................0.7 Crime and theft ...................................................................0.3 Poor public health ...............................................................0.3 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 268 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Mauritius The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.1 ............33 Intellectual property protection ............................... 4.2 ............41 Diversion of public funds ........................................ 3.9 ............46 Public trust in politicians ......................................... 3.1 ............66 Irregular payments and bribes ................................ 4.6 ............45 Judicial independence............................................ 5.1 ............31 Favoritism in decisions of government officials ....... 3.0 ............73 Wastefulness of government spending ................... 3.6 ............44 Burden of government regulation ........................... 3.9 ............36 Efficiency of legal framework in settling disputes .... 4.9 ............22 Efficiency of legal framework in challenging regs. ... 4.1 ............30 Transparency of government policymaking............. 4.5 ............34 Business costs of terrorism .................................... 6.3 ............12 Business costs of crime and violence..................... 5.2 ............35 Organized crime ..................................................... 6.0 ............20 Reliability of police services .................................... 4.5 ............51 Ethical behavior of firms ......................................... 4.6 ............37 Strength of auditing and reporting standards ......... 5.5 ............25 Efficacy of corporate boards .................................. 5.0 ............39 Protection of minority shareholders’ interests ......... 5.2 ............18 Strength of investor protection, 0–10 (best)* .......... 7.7 ............12 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.7 ............49 Quality of roads ...................................................... 4.8 ............42 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 5.0 ............36 Quality of air transport infrastructure....................... 5.0 ............46 Available airline seat km/week, millions* ............. 158.1 ............70 Quality of electricity supply ..................................... 5.5 ............45 Mobile telephone subscriptions/100 pop.* ......... 123.2 ............52 Fixed telephone lines/100 pop.* ........................... 29.2 ............38 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.5 ............84 Gross national savings, % GDP* .......................... 14.1 ..........113 Inflation, annual % change* .................................... 3.5 ............71 General government debt, % GDP* ..................... 53.8 ............89 Country credit rating, 0–100 (best)* ...................... 59.0 ............52 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 21.0 ............46 Business impact of tuberculosis ............................. 6.0 ............52 HIV prevalence, % adult pop.* ............................... 1.2 ..........113 Business impact of HIV/AIDS ................................. 5.6 ............70 Infant mortality, deaths/1,000 live births* .............. 13.0 ............66 Life expectancy, years*......................................... 73.6 ............79 Quality of primary education ................................... 4.5 ............45 Primary education enrollment, net %* .................. 97.8 ............34 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 95.9 ............52 Tertiary education enrollment, gross %*................ 40.3 ............68 Quality of the education system ............................. 4.2 ............42 Quality of math and science education .................. 4.6 ............40 Quality of management schools ............................. 4.4 ............55 Internet access in schools ...................................... 4.4 ............65 Availability of research and training services ........... 4.4 ............52 Extent of staff training ............................................ 4.4 ............35 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 4.3 ............26 Prevalence of trade barriers ................................... 4.6 ............33 Trade tariffs, % duty* .............................................. 0.8 ..............4 Prevalence of foreign ownership............................. 4.7 ............65 Business impact of rules on FDI ............................. 5.6 ..............7 Burden of customs procedures .............................. 4.7 ............38 Imports as a percentage of GDP* ........................ 67.1 ............36 Degree of customer orientation .............................. 4.8 ............50 Buyer sophistication ............................................... 3.8 ............36 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.9 ............31 Flexibility of wage determination ............................. 4.7 ............99 Hiring and firing practices ....................................... 4.2 ............42 Redundancy costs, weeks of salary* .................... 10.6 ............45 Effect of taxation on incentives to work .................. 5.1 ..............9 Pay and productivity............................................... 4.2 ............47 Reliance on professional management ................... 4.4 ............55 Country capacity to retain talent............................. 3.2 ............85 Country capacity to attract talent ........................... 3.9 ............38 Women in labor force, ratio to men* ..................... 0.61 ..........115 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.2 ............34 Affordability of financial services ............................. 4.9 ............40 Financing through local equity market .................... 4.2 ............32 Ease of access to loans ......................................... 3.5 ............31 Venture capital availability ....................................... 3.1 ............41 Soundness of banks .............................................. 6.1 ............15 Regulation of securities exchanges ........................ 5.2 ............24 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.2 ............48 Firm-level technology absorption ............................ 5.0 ............44 FDI and technology transfer ................................... 4.7 ............57 Individuals using Internet, %* ............................... 39.0 ............85 Fixed broadband Internet subscriptions/100 pop.* . 12.5 ............56 Int’l Internet bandwidth, kb/s per user* ................ 24.4 ............76 Mobile broadband subscriptions/100 pop.*.......... 28.8 ............68 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.5 ..........115 Foreign market size index, 1–7 (best)* .................... 3.7 ..........104 GDP (PPP$ billions)* ............................................ 20.9 ..........116 Exports as a percentage of GDP* ........................ 51.0 ............46 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.9 ............35 Local supplier quality.............................................. 4.6 ............53 State of cluster development.................................. 4.3 ............35 Nature of competitive advantage ............................ 4.1 ............39 Value chain breadth................................................ 4.6 ............26 Control of international distribution ......................... 4.7 ............18 Production process sophistication.......................... 4.5 ............35 Extent of marketing ................................................ 4.6 ............48 Willingness to delegate authority ............................ 4.1 ............43 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............50 Quality of scientific research institutions ................. 3.4 ............91 Company spending on R&D................................... 3.3 ............54 University-industry collaboration in R&D ................. 3.2 ..........101 Gov’t procurement of advanced tech products ...... 3.5 ............66 Availability of scientists and engineers .................... 3.7 ............93 PCT patents, applications/million pop.* .................. 0.2 ............94 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.6 ............24 Extent of market dominance .................................. 3.6 ............79 Effectiveness of anti-monopoly policy ..................... 4.4 ............45 Effect of taxation on incentives to invest................. 5.3 ..............9 Total tax rate, % profits* ....................................... 28.2 ............32 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 269 2.1: Country/Economy Profiles Mexico Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ...................................... 118.4 GDP (US$ billions) ..................................... 1,258.5 GDP per capita (US$) ................................. 10,630 GDP (PPP) as share (%) of world total ............ 2.12 Mexico 20,000 Latin America and the Caribbean 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 61 ..... 4.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 55 ......4.3 GCI 2012–2013 (out of 144) ..................................... 53 ......4.4 GCI 2011–2012 (out of 142) ..................................... 58 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (35.9%) .......................................69 ......4.6 7 Innovation Institutions .............................................................. 102 ......3.4 Infrastructure ............................................................ 65 ......4.2 Macroeconomic environment ................................... 53 ......5.0 Health and primary education ................................... 71 ......5.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................60 ......4.2 Market size Higher education and training ................................... 87 ......4.0 Goods market efficiency .......................................... 86 ......4.2 Labor market efficiency .......................................... 121 ......3.7 Financial market development .................................. 63 ......4.1 Technological readiness ............................................ 79 ......3.6 Market size ............................................................... 10 ......5.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (14.1%) ...........59 ......3.7 Business sophistication ........................................... 58 ......4.1 Innovation ................................................................. 61 ......3.3 Mexico Latin America and the Caribbean The most problematic factors for doing business Corruption .........................................................................18.6 Tax regulations ..................................................................14.5 Inefficient government bureaucracy ...................................13.3 Crime and theft .................................................................12.9 Access to financing .............................................................9.8 Tax rates..............................................................................8.1 Inadequate supply of infrastructure ......................................6.1 Restrictive labor regulations .................................................4.1 Inadequately educated workforce ........................................3.7 Insufficient capacity to innovate ...........................................3.1 Policy instability ...................................................................1.8 Poor work ethic in national labor force ................................1.6 Inflation ................................................................................1.1 Foreign currency regulations ................................................0.4 Poor public health ...............................................................0.4 Government instability/coups ..............................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 270 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Mexico The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.0 ............78 Intellectual property protection ............................... 3.5 ............82 Diversion of public funds ........................................ 2.5 ..........119 Public trust in politicians ......................................... 2.2 ..........114 Irregular payments and bribes ................................ 3.4 ............99 Judicial independence............................................ 3.2 ............98 Favoritism in decisions of government officials ....... 2.7 ............99 Wastefulness of government spending ................... 2.6 ............99 Burden of government regulation ........................... 2.9 ..........118 Efficiency of legal framework in settling disputes .... 3.3 ............99 Efficiency of legal framework in challenging regs. ... 3.1 ............88 Transparency of government policymaking............. 3.9 ............75 Business costs of terrorism .................................... 4.7 ............98 Business costs of crime and violence..................... 2.7 ..........135 Organized crime ..................................................... 2.7 ..........140 Reliability of police services .................................... 2.8 ..........128 Ethical behavior of firms ......................................... 3.7 ..........102 Strength of auditing and reporting standards ......... 5.0 ............50 Efficacy of corporate boards .................................. 4.4 ............81 Protection of minority shareholders’ interests ......... 4.3 ............62 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.2 ............69 Quality of roads ...................................................... 4.4 ............52 Quality of railroad infrastructure .............................. 2.8 ............64 Quality of port infrastructure ................................... 4.3 ............62 Quality of air transport infrastructure....................... 4.6 ............63 Available airline seat km/week, millions* .......... 1,963.4 ............21 Quality of electricity supply ..................................... 4.6 ............80 Mobile telephone subscriptions/100 pop.* ........... 85.8 ..........111 Fixed telephone lines/100 pop.* ........................... 16.8 ............69 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.9 ............89 Gross national savings, % GDP* .......................... 20.4 ............66 Inflation, annual % change* .................................... 3.8 ............76 General government debt, % GDP* ..................... 46.5 ............80 Country credit rating, 0–100 (best)* ...................... 69.0 ............36 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.8 ............16 Business impact of malaria .................................... 6.5 ..............3 Tuberculosis cases/100,000 pop.* ....................... 23.0 ............50 Business impact of tuberculosis ............................. 6.2 ............42 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 5.7 ............64 Infant mortality, deaths/1,000 live births* .............. 13.9 ............71 Life expectancy, years*......................................... 77.1 ............40 Quality of primary education ................................... 2.8 ..........118 Primary education enrollment, net %* .................. 96.3 ............53 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 85.7 ............85 Tertiary education enrollment, gross %*................ 29.0 ............81 Quality of the education system ............................. 2.8 ..........123 Quality of math and science education .................. 2.7 ..........128 Quality of management schools ............................. 4.2 ............70 Internet access in schools ...................................... 3.7 ............93 Availability of research and training services ........... 4.3 ............60 Extent of staff training ............................................ 4.0 ............74 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 3.0 ..........132 Prevalence of trade barriers ................................... 4.4 ............70 Trade tariffs, % duty* .............................................. 8.5 ............92 Prevalence of foreign ownership............................. 5.1 ............38 Business impact of rules on FDI ............................. 4.6 ............60 Burden of customs procedures .............................. 4.0 ............70 Imports as a percentage of GDP* ........................ 33.3 ..........105 Degree of customer orientation .............................. 4.7 ............55 Buyer sophistication ............................................... 3.5 ............63 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.6 ............45 Flexibility of wage determination ............................. 4.8 ............88 Hiring and firing practices ....................................... 3.4 ..........103 Redundancy costs, weeks of salary* .................... 22.0 ..........104 Effect of taxation on incentives to work .................. 3.0 ..........116 Pay and productivity............................................... 3.8 ............87 Reliance on professional management ................... 4.1 ............79 Country capacity to retain talent............................. 3.5 ............63 Country capacity to attract talent ........................... 3.3 ............80 Women in labor force, ratio to men* ..................... 0.58 ..........120 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.3 ............73 Affordability of financial services ............................. 3.7 ..........106 Financing through local equity market .................... 3.4 ............72 Ease of access to loans ......................................... 2.4 ..........107 Venture capital availability ....................................... 2.5 ............86 Soundness of banks .............................................. 5.6 ............41 Regulation of securities exchanges ........................ 4.8 ............40 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.9 ............66 Firm-level technology absorption ............................ 4.6 ............70 FDI and technology transfer ................................... 5.1 ............26 Individuals using Internet, %* ............................... 43.5 ............79 Fixed broadband Internet subscriptions/100 pop.* . 11.1 ............60 Int’l Internet bandwidth, kb/s per user* ................ 22.6 ............79 Mobile broadband subscriptions/100 pop.*............ 6.3 ..........104 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.5 ............10 Foreign market size index, 1–7 (best)* .................... 6.0 ............14 GDP (PPP$ billions)* ....................................... 1,842.6 ............10 Exports as a percentage of GDP* ........................ 31.8 ............90 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............55 Local supplier quality.............................................. 4.7 ............46 State of cluster development.................................. 4.1 ............45 Nature of competitive advantage ............................ 3.4 ............76 Value chain breadth................................................ 4.2 ............41 Control of international distribution ......................... 4.0 ............76 Production process sophistication.......................... 4.1 ............54 Extent of marketing ................................................ 4.3 ............61 Willingness to delegate authority ............................ 3.8 ............68 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............72 Quality of scientific research institutions ................. 3.9 ............58 Company spending on R&D................................... 3.1 ............71 University-industry collaboration in R&D ................. 4.0 ............44 Gov’t procurement of advanced tech products ...... 3.4 ............76 Availability of scientists and engineers .................... 3.9 ............78 PCT patents, applications/million pop.* .................. 1.8 ............58 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.1 ............64 Extent of market dominance .................................. 3.3 ..........114 Effectiveness of anti-monopoly policy ..................... 3.7 ..........104 Effect of taxation on incentives to invest................. 3.2 ..........110 Total tax rate, % profits* ....................................... 53.7 ..........122 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 271 2.1: Country/Economy Profiles Moldova Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 3.6 GDP (US$ billions) ............................................ 7.9 GDP per capita (US$) ................................... 2,229 GDP (PPP) as share (%) of world total ............ 0.02 Moldova 15,000 Commonwealth of Independent States 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 82 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 89 ......3.9 GCI 2012–2013 (out of 144) ..................................... 87 ......3.9 GCI 2011–2012 (out of 142) ..................................... 93 ......3.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (55.4%) .......................................90 ......4.3 Innovation Institutions .............................................................. 121 ......3.2 Infrastructure ............................................................ 83 ......3.7 Macroeconomic environment ................................... 56 ......4.9 Health and primary education ................................... 93 ......5.4 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (38.4%) .....................................88 ......3.8 Market size Higher education and training ................................... 84 ......4.1 Goods market efficiency ........................................ 103 ......4.1 Labor market efficiency ............................................ 82 ......4.1 Financial market development ................................ 100 ......3.7 Technological readiness ............................................ 51 ......4.4 Market size ............................................................. 124 ......2.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (6.1%) ...........129 ......2.9 Business sophistication ......................................... 124 ......3.4 Innovation ............................................................... 131 ......2.5 Moldova Commonwealth of Independent States The most problematic factors for doing business Corruption .........................................................................22.2 Policy instability .................................................................12.6 Inefficient government bureaucracy ...................................10.7 Government instability/coups ..............................................9.0 Tax regulations ....................................................................7.7 Inadequately educated workforce ........................................7.1 Access to financing .............................................................6.9 Inadequate supply of infrastructure ......................................4.9 Tax rates..............................................................................4.5 Inflation ................................................................................3.4 Poor work ethic in national labor force ................................2.5 Insufficient capacity to innovate ...........................................2.3 Restrictive labor regulations .................................................2.0 Crime and theft ...................................................................1.8 Foreign currency regulations ................................................1.6 Poor public health ...............................................................0.9 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 272 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Moldova The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.2 ..........126 Intellectual property protection ............................... 2.8 ..........118 Diversion of public funds ........................................ 2.4 ..........123 Public trust in politicians ......................................... 2.2 ..........116 Irregular payments and bribes ................................ 3.0 ..........116 Judicial independence............................................ 2.0 ..........141 Favoritism in decisions of government officials ....... 2.3 ..........130 Wastefulness of government spending ................... 2.6 ..........102 Burden of government regulation ........................... 2.9 ..........110 Efficiency of legal framework in settling disputes .... 2.7 ..........127 Efficiency of legal framework in challenging regs. ... 2.3 ..........134 Transparency of government policymaking............. 4.0 ............69 Business costs of terrorism .................................... 6.1 ............19 Business costs of crime and violence..................... 4.9 ............46 Organized crime ..................................................... 4.6 ............83 Reliability of police services .................................... 3.1 ..........116 Ethical behavior of firms ......................................... 3.5 ..........117 Strength of auditing and reporting standards ......... 4.2 ..........100 Efficacy of corporate boards .................................. 4.2 ............95 Protection of minority shareholders’ interests ......... 3.5 ..........117 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.8 ............86 Quality of roads ...................................................... 2.1 ..........140 Quality of railroad infrastructure .............................. 2.8 ............61 Quality of port infrastructure ................................... 2.2 ..........136 Quality of air transport infrastructure....................... 3.7 ..........102 Available airline seat km/week, millions* ............... 21.3 ..........122 Quality of electricity supply ..................................... 4.4 ............82 Mobile telephone subscriptions/100 pop.* ......... 106.0 ............83 Fixed telephone lines/100 pop.* ........................... 35.0 ............32 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.8 ............46 Gross national savings, % GDP* .......................... 19.6 ............70 Inflation, annual % change* .................................... 4.6 ............89 General government debt, % GDP* ..................... 24.4 ............25 Country credit rating, 0–100 (best)* ...................... 28.8 ..........111 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ..................... 160.0 ..........108 Business impact of tuberculosis ............................. 5.1 ............89 HIV prevalence, % adult pop.* ............................... 0.7 ............97 Business impact of HIV/AIDS ................................. 5.9 ............53 Infant mortality, deaths/1,000 live births* .............. 15.1 ............76 Life expectancy, years*......................................... 68.7 ..........100 Quality of primary education ................................... 3.8 ............76 Primary education enrollment, net %* .................. 87.9 ..........106 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 88.2 ............75 Tertiary education enrollment, gross %*................ 40.1 ............69 Quality of the education system ............................. 3.2 ..........103 Quality of math and science education .................. 4.0 ............80 Quality of management schools ............................. 3.2 ..........125 Internet access in schools ...................................... 4.9 ............49 Availability of research and training services ........... 3.3 ..........119 Extent of staff training ............................................ 3.4 ..........120 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 7.0 ............36 Agricultural policy costs.......................................... 2.9 ..........133 Prevalence of trade barriers ................................... 4.3 ............89 Trade tariffs, % duty* .............................................. 4.2 ............60 Prevalence of foreign ownership............................. 3.7 ..........117 Business impact of rules on FDI ............................. 3.9 ..........108 Burden of customs procedures .............................. 3.7 ............89 Imports as a percentage of GDP* ........................ 81.7 ............21 Degree of customer orientation .............................. 4.1 ..........100 Buyer sophistication ............................................... 3.0 ..........103 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............86 Flexibility of wage determination ............................. 5.5 ............30 Hiring and firing practices ....................................... 3.6 ............93 Redundancy costs, weeks of salary* .................... 22.6 ..........106 Effect of taxation on incentives to work .................. 2.9 ..........123 Pay and productivity............................................... 4.4 ............35 Reliance on professional management ................... 3.6 ..........111 Country capacity to retain talent............................. 1.9 ..........140 Country capacity to attract talent ........................... 1.8 ..........139 Women in labor force, ratio to men* ..................... 0.91 ............27 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.8 ..........109 Affordability of financial services ............................. 3.7 ..........103 Financing through local equity market .................... 2.5 ..........114 Ease of access to loans ......................................... 2.4 ..........104 Venture capital availability ....................................... 2.2 ..........116 Soundness of banks .............................................. 3.8 ..........124 Regulation of securities exchanges ........................ 3.2 ..........117 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.3 ............96 Firm-level technology absorption ............................ 4.1 ..........109 FDI and technology transfer ................................... 4.2 ............97 Individuals using Internet, %* ............................... 48.8 ............70 Fixed broadband Internet subscriptions/100 pop.* . 13.4 ............52 Int’l Internet bandwidth, kb/s per user* .............. 115.8 ............23 Mobile broadband subscriptions/100 pop.*.......... 47.2 ............42 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.4 ..........127 Foreign market size index, 1–7 (best)* .................... 3.3 ..........122 GDP (PPP$ billions)* ............................................ 13.3 ..........127 Exports as a percentage of GDP* ........................ 42.8 ............61 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.9 ..........123 Local supplier quality.............................................. 3.8 ..........113 State of cluster development.................................. 2.4 ..........144 Nature of competitive advantage ............................ 2.6 ..........131 Value chain breadth................................................ 3.4 ..........105 Control of international distribution ......................... 3.7 ..........108 Production process sophistication.......................... 3.1 ..........122 Extent of marketing ................................................ 3.8 ............99 Willingness to delegate authority ............................ 3.4 ..........100 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.0 ..........128 Quality of scientific research institutions ................. 2.7 ..........121 Company spending on R&D................................... 2.3 ..........135 University-industry collaboration in R&D ................. 2.7 ..........124 Gov’t procurement of advanced tech products ...... 2.7 ..........127 Availability of scientists and engineers .................... 3.1 ..........128 PCT patents, applications/million pop.* .................. 0.8 ............73 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.7 ............99 Extent of market dominance .................................. 3.1 ..........125 Effectiveness of anti-monopoly policy ..................... 3.2 ..........133 Effect of taxation on incentives to invest................. 3.2 ..........108 Total tax rate, % profits* ....................................... 40.4 ............79 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 273 2.1: Country/Economy Profiles Mongolia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.9 GDP (US$ billions) .......................................... 11.5 GDP per capita (US$) ................................... 3,972 GDP (PPP) as share (%) of world total ............ 0.02 Mongolia 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 1994 Emerging and Developing Asia 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 98 ..... 3.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 107 ......3.7 GCI 2012–2013 (out of 144) ..................................... 93 ......3.9 GCI 2011–2012 (out of 142) ..................................... 96 ......3.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (49.3%) .....................................105 ......4.0 7 Innovation Institutions ................................................................ 98 ......3.4 Infrastructure .......................................................... 112 ......2.9 Macroeconomic environment ................................. 125 ......3.8 Health and primary education ................................... 65 ......5.8 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (43.0%) .....................................92 ......3.8 Market size Higher education and training ................................... 68 ......4.4 Goods market efficiency .......................................... 81 ......4.2 Labor market efficiency ............................................ 42 ......4.5 Financial market development ................................ 124 ......3.2 Technological readiness ............................................ 81 ......3.5 Market size ............................................................. 120 ......2.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (7.7%) ...........112 ......3.2 Business sophistication ......................................... 115 ......3.5 Innovation ............................................................... 106 ......2.9 Mongolia Emerging and Developing Asia The most problematic factors for doing business Inefficient government bureaucracy ...................................13.8 Foreign currency regulations ..............................................11.8 Inadequately educated workforce ........................................9.6 Inflation ................................................................................9.3 Policy instability ...................................................................9.1 Access to financing .............................................................8.8 Corruption ...........................................................................8.5 Inadequate supply of infrastructure ......................................6.6 Tax rates..............................................................................6.4 Poor work ethic in national labor force ................................4.6 Government instability/coups ..............................................4.5 Tax regulations ....................................................................4.0 Insufficient capacity to innovate ...........................................1.9 Restrictive labor regulations .................................................0.8 Poor public health ...............................................................0.2 Crime and theft ...................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 274 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Mongolia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.6 ..........100 Intellectual property protection ............................... 2.7 ..........125 Diversion of public funds ........................................ 2.7 ..........103 Public trust in politicians ......................................... 2.1 ..........119 Irregular payments and bribes ................................ 3.7 ............82 Judicial independence............................................ 2.9 ..........108 Favoritism in decisions of government officials ....... 2.3 ..........125 Wastefulness of government spending ................... 2.3 ..........123 Burden of government regulation ........................... 2.9 ..........114 Efficiency of legal framework in settling disputes .... 3.2 ..........109 Efficiency of legal framework in challenging regs. ... 2.5 ..........122 Transparency of government policymaking............. 3.8 ............87 Business costs of terrorism .................................... 5.9 ............32 Business costs of crime and violence..................... 4.8 ............55 Organized crime ..................................................... 4.7 ............72 Reliability of police services .................................... 3.7 ............94 Ethical behavior of firms ......................................... 3.7 ............91 Strength of auditing and reporting standards ......... 3.6 ..........130 Efficacy of corporate boards .................................. 3.8 ..........129 Protection of minority shareholders’ interests ......... 3.5 ..........111 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.1 ..........119 Quality of roads ...................................................... 2.6 ..........130 Quality of railroad infrastructure .............................. 2.6 ............69 Quality of port infrastructure ................................... 1.7 ..........143 Quality of air transport infrastructure....................... 3.1 ..........125 Available airline seat km/week, millions* ............... 28.1 ..........114 Quality of electricity supply ..................................... 3.6 ..........100 Mobile telephone subscriptions/100 pop.* ......... 124.2 ............50 Fixed telephone lines/100 pop.* ............................. 6.2 ..........102 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*............... –10.1 ..........139 Gross national savings, % GDP* .......................... 27.1 ............33 Inflation, annual % change* .................................... 9.6 ..........134 General government debt, % GDP* ..................... 63.0 ..........105 Country credit rating, 0–100 (best)* ...................... 36.1 ............89 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ..................... 223.0 ..........121 Business impact of tuberculosis ............................. 5.4 ............80 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 5.8 ............57 Infant mortality, deaths/1,000 live births* .............. 23.0 ............94 Life expectancy, years*......................................... 67.3 ..........105 Quality of primary education ................................... 4.0 ............67 Primary education enrollment, net %* .................. 97.3 ............40 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 103.5 ............22 Tertiary education enrollment, gross %*................ 61.1 ............40 Quality of the education system ............................. 2.9 ..........116 Quality of math and science education .................. 4.5 ............46 Quality of management schools ............................. 2.9 ..........132 Internet access in schools ...................................... 4.6 ............62 Availability of research and training services ........... 2.8 ..........137 Extent of staff training ............................................ 4.0 ............73 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 11.0 ............57 Agricultural policy costs.......................................... 3.5 ............98 Prevalence of trade barriers ................................... 4.3 ............76 Trade tariffs, % duty* .............................................. 4.6 ............65 Prevalence of foreign ownership............................. 4.7 ............63 Business impact of rules on FDI ............................. 4.2 ............91 Burden of customs procedures .............................. 3.3 ..........115 Imports as a percentage of GDP* ........................ 74.1 ............30 Degree of customer orientation .............................. 4.2 ............94 Buyer sophistication ............................................... 3.0 ..........106 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............92 Flexibility of wage determination ............................. 5.7 ............17 Hiring and firing practices ....................................... 3.9 ............71 Redundancy costs, weeks of salary* ...................... 8.7 ............26 Effect of taxation on incentives to work .................. 3.6 ............68 Pay and productivity............................................... 4.8 ............14 Reliance on professional management ................... 3.7 ..........105 Country capacity to retain talent............................. 2.8 ..........111 Country capacity to attract talent ........................... 2.7 ..........114 Women in labor force, ratio to men* ..................... 0.83 ............62 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.8 ..........111 Affordability of financial services ............................. 3.5 ..........119 Financing through local equity market .................... 2.5 ..........116 Ease of access to loans ......................................... 1.5 ..........143 Venture capital availability ....................................... 1.6 ..........141 Soundness of banks .............................................. 4.3 ............99 Regulation of securities exchanges ........................ 2.7 ..........128 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.7 ............76 Firm-level technology absorption ............................ 4.7 ............66 FDI and technology transfer ................................... 4.7 ............62 Individuals using Internet, %* ............................... 17.7 ..........107 Fixed broadband Internet subscriptions/100 pop.* ... 4.9 ............80 Int’l Internet bandwidth, kb/s per user* ................ 59.7 ............45 Mobile broadband subscriptions/100 pop.*.......... 18.2 ............82 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.5 ..........120 Foreign market size index, 1–7 (best)* .................... 3.5 ..........111 GDP (PPP$ billions)* ............................................ 17.1 ..........122 Exports as a percentage of GDP* ........................ 44.8 ............56 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.8 ..........130 Local supplier quality.............................................. 3.7 ..........123 State of cluster development.................................. 2.8 ..........134 Nature of competitive advantage ............................ 3.6 ............64 Value chain breadth................................................ 3.1 ..........121 Control of international distribution ......................... 3.1 ..........136 Production process sophistication.......................... 3.4 ..........101 Extent of marketing ................................................ 4.2 ............68 Willingness to delegate authority ............................ 3.3 ..........116 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.3 ..........104 Quality of scientific research institutions ................. 3.1 ..........107 Company spending on R&D................................... 3.0 ............80 University-industry collaboration in R&D ................. 3.0 ..........114 Gov’t procurement of advanced tech products ...... 3.2 ............93 Availability of scientists and engineers .................... 4.0 ............73 PCT patents, applications/million pop.* .................. 0.3 ............87 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............82 Extent of market dominance .................................. 2.6 ..........141 Effectiveness of anti-monopoly policy ..................... 3.5 ..........112 Effect of taxation on incentives to invest................. 3.8 ............70 Total tax rate, % profits* ....................................... 24.6 ............21 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 275 2.1: Country/Economy Profiles Montenegro Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.6 GDP (US$ billions) ............................................ 4.4 GDP per capita (US$) ................................... 7,026 GDP (PPP) as share (%) of world total ............ 0.01 Montenegro 20,000 Emerging and Developing Europe 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 67 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 67 ......4.2 GCI 2012–2013 (out of 144) ..................................... 72 ......4.1 GCI 2011–2012 (out of 142) ..................................... 60 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................61 ......4.7 7 Innovation Institutions ................................................................ 59 ......4.0 Infrastructure ............................................................ 72 ......4.1 Macroeconomic environment ................................... 88 ......4.5 Health and primary education ................................... 29 ......6.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................73 ......4.0 Market size Higher education and training ................................... 51 ......4.7 Goods market efficiency .......................................... 69 ......4.3 Labor market efficiency ............................................ 65 ......4.2 Financial market development .................................. 56 ......4.3 Technological readiness ............................................ 54 ......4.3 Market size ............................................................. 134 ......2.2 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........77 ......3.5 Business sophistication ........................................... 97 ......3.7 Innovation ................................................................. 58 ......3.4 Montenegro Emerging and Developing Europe The most problematic factors for doing business Access to financing ...........................................................17.8 Corruption .........................................................................12.1 Poor work ethic in national labor force ..............................11.6 Inefficient government bureaucracy ...................................10.2 Inadequate supply of infrastructure ......................................8.6 Insufficient capacity to innovate ...........................................7.2 Inadequately educated workforce ........................................7.1 Tax rates..............................................................................6.2 Crime and theft ...................................................................5.4 Restrictive labor regulations .................................................5.2 Tax regulations ....................................................................3.7 Inflation ................................................................................1.2 Policy instability ...................................................................1.2 Poor public health ...............................................................1.1 Foreign currency regulations ................................................0.9 Government instability/coups ..............................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 276 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Montenegro The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.1 ............71 Intellectual property protection ............................... 3.7 ............73 Diversion of public funds ........................................ 3.7 ............52 Public trust in politicians ......................................... 3.5 ............44 Irregular payments and bribes ................................ 4.0 ............64 Judicial independence............................................ 3.4 ............90 Favoritism in decisions of government officials ....... 3.5 ............46 Wastefulness of government spending ................... 3.4 ............55 Burden of government regulation ........................... 3.6 ............58 Efficiency of legal framework in settling disputes .... 3.7 ............69 Efficiency of legal framework in challenging regs. ... 3.2 ............81 Transparency of government policymaking............. 4.4 ............46 Business costs of terrorism .................................... 5.8 ............40 Business costs of crime and violence..................... 4.7 ............59 Organized crime ..................................................... 4.6 ............80 Reliability of police services .................................... 4.3 ............59 Ethical behavior of firms ......................................... 3.9 ............76 Strength of auditing and reporting standards ......... 4.1 ..........103 Efficacy of corporate boards .................................. 4.1 ..........109 Protection of minority shareholders’ interests ......... 3.9 ............84 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.7 ............91 Quality of roads ...................................................... 3.3 ............98 Quality of railroad infrastructure .............................. 2.9 ............56 Quality of port infrastructure ................................... 4.2 ............70 Quality of air transport infrastructure....................... 4.2 ............74 Available airline seat km/week, millions* ............... 22.4 ..........121 Quality of electricity supply ..................................... 4.3 ............85 Mobile telephone subscriptions/100 pop.* ......... 159.9 ............12 Fixed telephone lines/100 pop.* ........................... 27.2 ............41 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.4 ............60 Gross national savings, % GDP* ............................ 1.0 ..........138 Inflation, annual % change* .................................... 2.2 ..............1 General government debt, % GDP* ..................... 56.8 ............94 Country credit rating, 0–100 (best)* ...................... 38.7 ............82 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 18.0 ............41 Business impact of tuberculosis ............................. 5.9 ............63 HIV prevalence, % adult pop.* ............................... 0.0 ..............1 Business impact of HIV/AIDS ................................. 5.9 ............55 Infant mortality, deaths/1,000 live births* ................ 5.5 ............36 Life expectancy, years*......................................... 74.6 ............61 Quality of primary education ................................... 4.9 ............29 Primary education enrollment, net %* .................. 98.4 ............26 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 90.9 ............68 Tertiary education enrollment, gross %*................ 55.5 ............48 Quality of the education system ............................. 4.3 ............41 Quality of math and science education .................. 4.9 ............25 Quality of management schools ............................. 4.8 ............38 Internet access in schools ...................................... 4.2 ............73 Availability of research and training services ........... 3.6 ..........103 Extent of staff training ............................................ 3.9 ............87 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 10.0 ............52 Agricultural policy costs.......................................... 4.2 ............27 Prevalence of trade barriers ................................... 4.3 ............78 Trade tariffs, % duty* .............................................. 2.9 ............44 Prevalence of foreign ownership............................. 4.5 ............75 Business impact of rules on FDI ............................. 4.4 ............74 Burden of customs procedures .............................. 4.1 ............65 Imports as a percentage of GDP* ........................ 66.8 ............37 Degree of customer orientation .............................. 4.4 ............79 Buyer sophistication ............................................... 2.9 ..........113 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ..........106 Flexibility of wage determination ............................. 5.0 ............75 Hiring and firing practices ....................................... 4.0 ............62 Redundancy costs, weeks of salary* .................... 11.2 ............48 Effect of taxation on incentives to work .................. 3.7 ............65 Pay and productivity............................................... 3.9 ............74 Reliance on professional management ................... 3.8 ..........101 Country capacity to retain talent............................. 3.3 ............81 Country capacity to attract talent ........................... 2.9 ............97 Women in labor force, ratio to men* ..................... 0.79 ............77 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............94 Affordability of financial services ............................. 4.0 ............78 Financing through local equity market .................... 3.3 ............79 Ease of access to loans ......................................... 3.0 ............49 Venture capital availability ....................................... 2.9 ............50 Soundness of banks .............................................. 4.2 ..........109 Regulation of securities exchanges ........................ 4.0 ............78 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.8 ............71 Firm-level technology absorption ............................ 4.4 ............88 FDI and technology transfer ................................... 4.5 ............82 Individuals using Internet, %* ............................... 56.8 ............58 Fixed broadband Internet subscriptions/100 pop.* . 12.8 ............55 Int’l Internet bandwidth, kb/s per user* ................ 76.5 ............34 Mobile broadband subscriptions/100 pop.*.......... 23.1 ............76 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.9 ..........134 Foreign market size index, 1–7 (best)* .................... 3.0 ..........133 GDP (PPP$ billions)* .............................................. 7.4 ..........134 Exports as a percentage of GDP* ........................ 43.6 ............58 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.1 ..........112 Local supplier quality.............................................. 4.1 ............91 State of cluster development.................................. 3.0 ..........122 Nature of competitive advantage ............................ 3.3 ............88 Value chain breadth................................................ 3.7 ............83 Control of international distribution ......................... 3.8 ............89 Production process sophistication.......................... 3.4 ..........103 Extent of marketing ................................................ 4.1 ............80 Willingness to delegate authority ............................ 3.7 ............75 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.6 ............84 Quality of scientific research institutions ................. 3.9 ............60 Company spending on R&D................................... 3.2 ............61 University-industry collaboration in R&D ................. 3.9 ............47 Gov’t procurement of advanced tech products ...... 3.6 ............57 Availability of scientists and engineers .................... 4.1 ............69 PCT patents, applications/million pop.* .................. 3.2 ............51 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.9 ..........135 Extent of market dominance .................................. 3.5 ............92 Effectiveness of anti-monopoly policy ..................... 3.7 ..........101 Effect of taxation on incentives to invest................. 4.0 ............43 Total tax rate, % profits* ....................................... 20.9 ............13 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 277 2.1: Country/Economy Profiles Morocco Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 32.9 GDP (US$ billions) ........................................ 105.1 GDP per capita (US$) ................................... 3,199 GDP (PPP) as share (%) of world total ............ 0.21 Morocco 8,000 Middle East, North Africa, and Pakistan 7,000 6,000 5,000 4,000 3,000 2,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 72 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 77 ......4.1 GCI 2012–2013 (out of 144) ..................................... 70 ......4.1 GCI 2011–2012 (out of 142) ..................................... 73 ......4.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................57 ......4.7 Innovation Institutions ................................................................ 49 ......4.2 Infrastructure ............................................................ 55 ......4.4 Macroeconomic environment ................................... 66 ......4.7 Health and primary education ................................... 76 ......5.7 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................78 ......3.9 Market size Higher education and training ................................. 104 ......3.6 Goods market efficiency .......................................... 58 ......4.4 Labor market efficiency .......................................... 111 ......3.8 Financial market development .................................. 69 ......4.0 Technological readiness ............................................ 78 ......3.6 Market size ............................................................... 56 ......4.2 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........82 ......3.5 Business sophistication ........................................... 78 ......3.9 Innovation ................................................................. 90 ......3.1 Morocco Middle East, North Africa, and Pakistan The most problematic factors for doing business Access to financing ...........................................................16.3 Inefficient government bureaucracy ...................................13.9 Inadequately educated workforce ......................................11.3 Inadequate supply of infrastructure ....................................10.2 Restrictive labor regulations ...............................................10.2 Corruption .........................................................................10.0 Tax rates..............................................................................8.4 Insufficient capacity to innovate ...........................................5.3 Tax regulations ....................................................................4.9 Poor work ethic in national labor force ................................4.2 Foreign currency regulations ................................................3.1 Policy instability ...................................................................0.8 Poor public health ...............................................................0.8 Inflation ................................................................................0.5 Crime and theft ...................................................................0.0 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 278 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Morocco The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.9 ............41 Intellectual property protection ............................... 3.7 ............64 Diversion of public funds ........................................ 3.8 ............47 Public trust in politicians ......................................... 3.3 ............53 Irregular payments and bribes ................................ 4.3 ............53 Judicial independence............................................ 3.5 ............81 Favoritism in decisions of government officials ....... 3.5 ............44 Wastefulness of government spending ................... 3.6 ............41 Burden of government regulation ........................... 3.6 ............53 Efficiency of legal framework in settling disputes .... 3.7 ............73 Efficiency of legal framework in challenging regs. ... 3.3 ............73 Transparency of government policymaking............. 4.3 ............47 Business costs of terrorism .................................... 5.4 ............67 Business costs of crime and violence..................... 5.3 ............28 Organized crime ..................................................... 5.7 ............33 Reliability of police services .................................... 4.9 ............41 Ethical behavior of firms ......................................... 4.2 ............52 Strength of auditing and reporting standards ......... 5.0 ............49 Efficacy of corporate boards .................................. 4.8 ............52 Protection of minority shareholders’ interests ......... 4.3 ............59 Strength of investor protection, 0–10 (best)* .......... 4.7 ............98 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.6 ............55 Quality of roads ...................................................... 4.5 ............51 Quality of railroad infrastructure .............................. 3.9 ............34 Quality of port infrastructure ................................... 4.9 ............43 Quality of air transport infrastructure....................... 4.8 ............51 Available airline seat km/week, millions* ............. 451.3 ............46 Quality of electricity supply ..................................... 5.4 ............48 Mobile telephone subscriptions/100 pop.* ......... 128.5 ............45 Fixed telephone lines/100 pop.* ............................. 8.9 ............94 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.4 ..........113 Gross national savings, % GDP* .......................... 27.2 ............32 Inflation, annual % change* .................................... 1.9 ..............1 General government debt, % GDP* ..................... 61.9 ..........101 Country credit rating, 0–100 (best)* ...................... 52.6 ............67 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ..................... 103.0 ............94 Business impact of tuberculosis ............................. 5.7 ............69 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 5.7 ............61 Infant mortality, deaths/1,000 live births* .............. 26.8 ............99 Life expectancy, years*......................................... 70.6 ............92 Quality of primary education ................................... 3.1 ..........105 Primary education enrollment, net %* .................. 97.5 ............39 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 68.9 ..........105 Tertiary education enrollment, gross %*................ 16.2 ..........100 Quality of the education system ............................. 3.2 ..........102 Quality of math and science education .................. 4.2 ............68 Quality of management schools ............................. 4.5 ............54 Internet access in schools ...................................... 3.3 ..........112 Availability of research and training services ........... 4.1 ............72 Extent of staff training ............................................ 3.6 ..........106 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 11.0 ............57 Agricultural policy costs.......................................... 4.5 ............15 Prevalence of trade barriers ................................... 4.7 ............25 Trade tariffs, % duty* ............................................ 11.7 ..........122 Prevalence of foreign ownership............................. 5.1 ............40 Business impact of rules on FDI ............................. 5.5 ............10 Burden of customs procedures .............................. 4.3 ............57 Imports as a percentage of GDP* ........................ 49.1 ............69 Degree of customer orientation .............................. 4.4 ............82 Buyer sophistication ............................................... 3.1 ..........100 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............83 Flexibility of wage determination ............................. 5.4 ............37 Hiring and firing practices ....................................... 3.7 ............86 Redundancy costs, weeks of salary* .................... 20.7 ............97 Effect of taxation on incentives to work .................. 3.9 ............42 Pay and productivity............................................... 4.0 ............65 Reliance on professional management ................... 4.3 ............64 Country capacity to retain talent............................. 3.8 ............45 Country capacity to attract talent ........................... 3.9 ............40 Women in labor force, ratio to men* ..................... 0.34 ..........137 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.6 ............59 Affordability of financial services ............................. 4.2 ............63 Financing through local equity market .................... 3.8 ............49 Ease of access to loans ......................................... 3.1 ............46 Venture capital availability ....................................... 2.9 ............49 Soundness of banks .............................................. 5.6 ............42 Regulation of securities exchanges ........................ 4.5 ............49 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.1 ............57 Firm-level technology absorption ............................ 4.5 ............75 FDI and technology transfer ................................... 4.8 ............45 Individuals using Internet, %* ............................... 56.0 ............59 Fixed broadband Internet subscriptions/100 pop.* ... 2.5 ............94 Int’l Internet bandwidth, kb/s per user* ................ 22.3 ............80 Mobile broadband subscriptions/100 pop.*.......... 15.0 ............90 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.0 ............53 Foreign market size index, 1–7 (best)* .................... 4.7 ............65 GDP (PPP$ billions)* .......................................... 179.2 ............58 Exports as a percentage of GDP* ........................ 33.3 ............86 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............43 Local supplier quality.............................................. 4.4 ............70 State of cluster development.................................. 3.8 ............71 Nature of competitive advantage ............................ 3.2 ............98 Value chain breadth................................................ 3.9 ............60 Control of international distribution ......................... 4.0 ............75 Production process sophistication.......................... 3.4 ..........105 Extent of marketing ................................................ 3.8 ..........103 Willingness to delegate authority ............................ 3.6 ............84 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.2 ..........118 Quality of scientific research institutions ................. 3.5 ............85 Company spending on R&D................................... 2.6 ..........112 University-industry collaboration in R&D ................. 3.2 ............96 Gov’t procurement of advanced tech products ...... 3.4 ............78 Availability of scientists and engineers .................... 4.6 ............34 PCT patents, applications/million pop.* .................. 0.5 ............78 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.3 ............48 Extent of market dominance .................................. 4.0 ............47 Effectiveness of anti-monopoly policy ..................... 4.2 ............64 Effect of taxation on incentives to invest................. 3.9 ............53 Total tax rate, % profits* ....................................... 49.6 ..........113 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 279 2.1: Country/Economy Profiles Mozambique Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 25.9 GDP (US$ billions) .......................................... 15.3 GDP per capita (US$) ...................................... 593 GDP (PPP) as share (%) of world total ............ 0.03 Mozambique 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 133 ..... 3.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 137 ......3.3 GCI 2012–2013 (out of 144) ................................... 138 ......3.2 GCI 2011–2012 (out of 142) ................................... 133 ......3.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................133 ......3.3 7 Innovation Institutions .............................................................. 127 ......3.2 Infrastructure .......................................................... 128 ......2.4 Macroeconomic environment ................................. 110 ......4.1 Health and primary education ................................. 135 ......3.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................131 ......3.2 Market size Higher education and training ................................. 138 ......2.4 Goods market efficiency ........................................ 116 ......4.0 Labor market efficiency .......................................... 104 ......3.9 Financial market development ................................ 126 ......3.1 Technological readiness .......................................... 122 ......2.7 Market size ............................................................. 101 ......3.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........120 ......3.1 Business sophistication ......................................... 125 ......3.3 Innovation ............................................................... 118 ......2.8 Mozambique Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................19.0 Corruption .........................................................................15.5 Inadequate supply of infrastructure ....................................12.5 Inefficient government bureaucracy ...................................12.3 Inadequately educated workforce ......................................10.0 Crime and theft ...................................................................6.7 Restrictive labor regulations .................................................4.5 Policy instability ...................................................................4.1 Poor work ethic in national labor force ................................3.4 Tax rates..............................................................................3.2 Foreign currency regulations ................................................2.2 Inflation ................................................................................2.0 Insufficient capacity to innovate ...........................................1.8 Tax regulations ....................................................................1.2 Poor public health ...............................................................0.9 Government instability/coups ..............................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 280 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Mozambique The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.4 ..........117 Intellectual property protection ............................... 2.7 ..........122 Diversion of public funds ........................................ 2.3 ..........125 Public trust in politicians ......................................... 2.4 ............99 Irregular payments and bribes ................................ 3.1 ..........114 Judicial independence............................................ 2.5 ..........123 Favoritism in decisions of government officials ....... 2.5 ..........115 Wastefulness of government spending ................... 2.7 ............95 Burden of government regulation ........................... 3.5 ............65 Efficiency of legal framework in settling disputes .... 3.3 ..........103 Efficiency of legal framework in challenging regs. ... 2.8 ..........112 Transparency of government policymaking............. 3.6 ..........112 Business costs of terrorism .................................... 4.4 ..........113 Business costs of crime and violence..................... 3.4 ..........117 Organized crime ..................................................... 3.5 ..........130 Reliability of police services .................................... 2.9 ..........125 Ethical behavior of firms ......................................... 3.3 ..........130 Strength of auditing and reporting standards ......... 3.9 ..........110 Efficacy of corporate boards .................................. 4.2 ............99 Protection of minority shareholders’ interests ......... 3.5 ..........114 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.0 ..........124 Quality of roads ...................................................... 2.1 ..........141 Quality of railroad infrastructure .............................. 2.1 ............84 Quality of port infrastructure ................................... 3.7 ............94 Quality of air transport infrastructure....................... 3.3 ..........119 Available airline seat km/week, millions* ............... 35.8 ..........109 Quality of electricity supply ..................................... 3.1 ..........108 Mobile telephone subscriptions/100 pop.* ........... 48.0 ..........136 Fixed telephone lines/100 pop.* ............................. 0.3 ..........137 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.6 ..........101 Gross national savings, % GDP* ............................ 6.8 ..........132 Inflation, annual % change* .................................... 4.2 ............83 General government debt, % GDP* ..................... 43.3 ............73 Country credit rating, 0–100 (best)* ...................... 31.5 ..........106 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 27,774.0 ............72 Business impact of malaria .................................... 3.6 ............63 Tuberculosis cases/100,000 pop.* ..................... 552.0 ..........138 Business impact of tuberculosis ............................. 4.1 ..........126 HIV prevalence, % adult pop.* ............................. 11.1 ..........136 Business impact of HIV/AIDS ................................. 3.6 ..........134 Infant mortality, deaths/1,000 live births* .............. 63.1 ..........132 Life expectancy, years*......................................... 49.8 ..........140 Quality of primary education ................................... 2.2 ..........139 Primary education enrollment, net %* .................. 86.2 ..........113 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 25.9 ..........142 Tertiary education enrollment, gross %*.................. 4.9 ..........129 Quality of the education system ............................. 2.8 ..........124 Quality of math and science education .................. 2.6 ..........133 Quality of management schools ............................. 2.9 ..........134 Internet access in schools ...................................... 2.8 ..........123 Availability of research and training services ........... 3.4 ..........112 Extent of staff training ............................................ 3.4 ..........121 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 13.0 ............67 Agricultural policy costs.......................................... 3.2 ..........119 Prevalence of trade barriers ................................... 4.5 ............56 Trade tariffs, % duty* .............................................. 7.7 ............89 Prevalence of foreign ownership............................. 4.8 ............56 Business impact of rules on FDI ............................. 4.7 ............39 Burden of customs procedures .............................. 3.5 ..........104 Imports as a percentage of GDP* ........................ 75.4 ............28 Degree of customer orientation .............................. 3.7 ..........122 Buyer sophistication ............................................... 2.7 ..........129 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.6 ..........131 Flexibility of wage determination ............................. 3.9 ..........128 Hiring and firing practices ....................................... 3.4 ..........102 Redundancy costs, weeks of salary* .................... 37.5 ..........135 Effect of taxation on incentives to work .................. 3.6 ............78 Pay and productivity............................................... 2.9 ..........133 Reliance on professional management ................... 3.4 ..........120 Country capacity to retain talent............................. 3.4 ............73 Country capacity to attract talent ........................... 3.6 ............58 Women in labor force, ratio to men* ..................... 1.04 ..............2 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........118 Affordability of financial services ............................. 3.6 ..........117 Financing through local equity market .................... 2.4 ..........119 Ease of access to loans ......................................... 1.9 ..........127 Venture capital availability ....................................... 2.1 ..........120 Soundness of banks .............................................. 4.6 ............84 Regulation of securities exchanges ........................ 3.2 ..........116 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.3 ..........102 Firm-level technology absorption ............................ 4.2 ............99 FDI and technology transfer ................................... 4.6 ............75 Individuals using Internet, %* ................................. 5.4 ..........130 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........133 Int’l Internet bandwidth, kb/s per user* .................. 2.9 ..........132 Mobile broadband subscriptions/100 pop.*............ 1.8 ..........120 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.9 ............98 Foreign market size index, 1–7 (best)* .................... 3.7 ..........103 GDP (PPP$ billions)* ............................................ 28.2 ..........102 Exports as a percentage of GDP* ........................ 38.4 ............71 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.1 ..........111 Local supplier quality.............................................. 3.4 ..........131 State of cluster development.................................. 3.5 ............85 Nature of competitive advantage ............................ 2.7 ..........126 Value chain breadth................................................ 3.0 ..........131 Control of international distribution ......................... 3.3 ..........129 Production process sophistication.......................... 3.1 ..........123 Extent of marketing ................................................ 3.7 ..........106 Willingness to delegate authority ............................ 3.2 ..........119 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.2 ..........114 Quality of scientific research institutions ................. 2.9 ..........115 Company spending on R&D................................... 2.6 ..........113 University-industry collaboration in R&D ................. 3.3 ............89 Gov’t procurement of advanced tech products ...... 3.3 ............86 Availability of scientists and engineers .................... 3.0 ..........132 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.7 ............96 Extent of market dominance .................................. 3.3 ..........105 Effectiveness of anti-monopoly policy ..................... 3.4 ..........121 Effect of taxation on incentives to invest................. 3.6 ............84 Total tax rate, % profits* ....................................... 37.5 ............71 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 281 2.1: Country/Economy Profiles Myanmar Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 64.9 GDP (US$ billions) .......................................... 56.4 GDP per capita (US$) ...................................... 869 GDP (PPP) as share (%) of world total ............ 0.13 Myanmar 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 1994 Emerging and Developing Asia 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 134 ..... 3.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 139 ......3.2 GCI 2012–2013 (out of 144) .................................... n/a ......n/a GCI 2011–2012 (out of 142) .................................... n/a ......n/a Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................132 ......3.4 7 Innovation Institutions .............................................................. 136 ......2.8 Infrastructure .......................................................... 137 ......2.0 Macroeconomic environment ................................. 116 ......4.0 Health and primary education ................................. 117 ......4.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................134 ......3.1 Market size Higher education and training ................................. 135 ......2.4 Goods market efficiency ........................................ 130 ......3.7 Labor market efficiency ............................................ 72 ......4.2 Financial market development ................................ 139 ......2.6 Technological readiness .......................................... 144 ......2.1 Market size ............................................................... 70 ......3.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........139 ......2.6 Business sophistication ......................................... 140 ......2.9 Innovation ............................................................... 138 ......2.3 Myanmar Emerging and Developing Asia The most problematic factors for doing business Access to financing ...........................................................18.0 Corruption .........................................................................13.9 Inefficient government bureaucracy .....................................9.7 Inadequately educated workforce ........................................8.7 Policy instability ...................................................................8.6 Inadequate supply of infrastructure ......................................7.1 Foreign currency regulations ................................................6.2 Tax regulations ....................................................................4.8 Inflation ................................................................................4.0 Government instability/coups ..............................................3.8 Poor work ethic in national labor force ................................3.8 Restrictive labor regulations .................................................3.8 Tax rates..............................................................................3.3 Insufficient capacity to innovate ...........................................2.1 Crime and theft ...................................................................1.6 Poor public health ...............................................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 282 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Myanmar The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.7 ..........136 Intellectual property protection ............................... 2.7 ..........123 Diversion of public funds ........................................ 2.4 ..........122 Public trust in politicians ......................................... 3.0 ............72 Irregular payments and bribes ................................ 2.3 ..........139 Judicial independence............................................ 2.6 ..........117 Favoritism in decisions of government officials ....... 2.3 ..........127 Wastefulness of government spending ................... 3.0 ............78 Burden of government regulation ........................... 2.9 ..........112 Efficiency of legal framework in settling disputes .... 2.7 ..........125 Efficiency of legal framework in challenging regs. ... 2.4 ..........128 Transparency of government policymaking............. 2.9 ..........136 Business costs of terrorism .................................... 2.9 ..........136 Business costs of crime and violence..................... 3.1 ..........125 Organized crime ..................................................... 3.1 ..........136 Reliability of police services .................................... 2.9 ..........126 Ethical behavior of firms ......................................... 3.2 ..........133 Strength of auditing and reporting standards ......... 2.6 ..........140 Efficacy of corporate boards .................................. 4.1 ..........114 Protection of minority shareholders’ interests ......... 2.8 ..........137 Strength of investor protection, 0–10 (best)* .......... 2.3 ..........140 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.3 ..........138 Quality of roads ...................................................... 2.4 ..........134 Quality of railroad infrastructure .............................. 1.8 ............94 Quality of port infrastructure ................................... 2.6 ..........125 Quality of air transport infrastructure....................... 2.5 ..........137 Available airline seat km/week, millions* ............... 91.6 ............86 Quality of electricity supply ..................................... 2.8 ..........117 Mobile telephone subscriptions/100 pop.* ........... 12.8 ..........144 Fixed telephone lines/100 pop.* ............................. 1.0 ..........125 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.9 ..........108 Gross national savings, % GDP* .......................... 18.7 ............76 Inflation, annual % change* .................................... 5.8 ..........105 General government debt, % GDP* ..................... 42.7 ............71 Country credit rating, 0–100 (best)* ...................... 10.7 ..........142 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 2,651.6 ............49 Business impact of malaria .................................... 4.5 ............43 Tuberculosis cases/100,000 pop.* ..................... 377.0 ..........132 Business impact of tuberculosis ............................. 3.8 ..........134 HIV prevalence, % adult pop.* ............................... 0.6 ............92 Business impact of HIV/AIDS ................................. 4.3 ..........117 Infant mortality, deaths/1,000 live births* .............. 41.1 ..........113 Life expectancy, years*......................................... 64.9 ..........112 Quality of primary education ................................... 2.2 ..........137 Primary education enrollment, net %* .................. 86.4 ..........111 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 50.2 ..........122 Tertiary education enrollment, gross %*................ 13.8 ..........103 Quality of the education system ............................. 2.7 ..........129 Quality of math and science education .................. 2.7 ..........129 Quality of management schools ............................. 2.6 ..........139 Internet access in schools ...................................... 2.1 ..........137 Availability of research and training services ........... 2.9 ..........135 Extent of staff training ............................................ 2.9 ..........138 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 11 ..........128 No. days to start a business* ............................... 72.0 ..........136 Agricultural policy costs.......................................... 4.0 ............46 Prevalence of trade barriers ................................... 4.0 ..........114 Trade tariffs, % duty* .............................................. 3.9 ............49 Prevalence of foreign ownership............................. 3.1 ..........135 Business impact of rules on FDI ............................. 3.6 ..........123 Burden of customs procedures .............................. 3.2 ..........125 Imports as a percentage of GDP* ........................ 18.0 ..........140 Degree of customer orientation .............................. 4.3 ............90 Buyer sophistication ............................................... 2.7 ..........127 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.8 ..........115 Flexibility of wage determination ............................. 5.5 ............36 Hiring and firing practices ....................................... 4.1 ............51 Redundancy costs, weeks of salary* .................... 20.2 ............94 Effect of taxation on incentives to work .................. 3.8 ............56 Pay and productivity............................................... 3.9 ............79 Reliance on professional management ................... 2.9 ..........137 Country capacity to retain talent............................. 1.7 ..........144 Country capacity to attract talent ........................... 2.7 ..........113 Women in labor force, ratio to men* ..................... 0.93 ............19 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.8 ..........139 Affordability of financial services ............................. 3.0 ..........136 Financing through local equity market .................... 1.9 ..........137 Ease of access to loans ......................................... 1.4 ..........144 Venture capital availability ....................................... 1.6 ..........143 Soundness of banks .............................................. 3.5 ..........131 Regulation of securities exchanges ........................ 2.2 ..........135 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 2.7 ..........144 Firm-level technology absorption ............................ 2.9 ..........144 FDI and technology transfer ................................... 3.5 ..........132 Individuals using Internet, %* ................................. 1.2 ..........143 Fixed broadband Internet subscriptions/100 pop.* ... 0.2 ..........122 Int’l Internet bandwidth, kb/s per user* ................ 26.2 ............73 Mobile broadband subscriptions/100 pop.*............ 1.0 ..........124 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.6 ............65 Foreign market size index, 1–7 (best)* .................... 4.0 ............87 GDP (PPP$ billions)* .......................................... 113.0 ............65 Exports as a percentage of GDP* ........................ 17.5 ..........133 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.2 ..........142 Local supplier quality.............................................. 3.0 ..........139 State of cluster development.................................. 2.7 ..........139 Nature of competitive advantage ............................ 2.4 ..........138 Value chain breadth................................................ 3.1 ..........122 Control of international distribution ......................... 3.0 ..........139 Production process sophistication.......................... 2.5 ..........136 Extent of marketing ................................................ 3.0 ..........133 Willingness to delegate authority ............................ 3.1 ..........126 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.9 ..........137 Quality of scientific research institutions ................. 2.3 ..........136 Company spending on R&D................................... 2.2 ..........140 University-industry collaboration in R&D ................. 2.2 ..........138 Gov’t procurement of advanced tech products ...... 2.5 ..........139 Availability of scientists and engineers .................... 3.0 ..........131 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.7 ..........100 Extent of market dominance .................................. 2.4 ..........142 Effectiveness of anti-monopoly policy ..................... 3.3 ..........129 Effect of taxation on incentives to invest................. 3.9 ............55 Total tax rate, % profits* ....................................... 48.9 ..........109 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 283 2.1: Country/Economy Profiles Namibia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.2 GDP (US$ billions) .......................................... 12.3 GDP per capita (US$) ................................... 5,667 GDP (PPP) as share (%) of world total ............ 0.02 Namibia 10,000 Sub-Saharan Africa 8,000 6,000 4,000 2,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 88 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 90 ......3.9 GCI 2012–2013 (out of 144) ..................................... 92 ......3.9 GCI 2011–2012 (out of 142) ..................................... 83 ......4.0 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................81 ......4.4 7 Innovation Institutions ................................................................ 50 ......4.2 Infrastructure ............................................................ 66 ......4.2 Macroeconomic environment ................................... 78 ......4.6 Health and primary education ................................. 115 ......4.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................97 ......3.7 Market size Higher education and training ................................. 115 ......3.2 Goods market efficiency .......................................... 96 ......4.1 Labor market efficiency ............................................ 55 ......4.3 Financial market development .................................. 46 ......4.4 Technological readiness ............................................ 89 ......3.4 Market size ............................................................. 119 ......2.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........91 ......3.4 Business sophistication ........................................... 94 ......3.7 Innovation ................................................................. 91 ......3.1 Namibia Sub-Saharan Africa The most problematic factors for doing business Inadequately educated workforce ......................................16.0 Access to financing ...........................................................14.5 Restrictive labor regulations ...............................................11.5 Poor work ethic in national labor force ..............................10.9 Corruption .........................................................................10.4 Inefficient government bureaucracy .....................................9.8 Tax rates..............................................................................5.5 Inadequate supply of infrastructure ......................................4.6 Crime and theft ...................................................................4.4 Insufficient capacity to innovate ...........................................4.1 Tax regulations ....................................................................2.3 Inflation ................................................................................2.2 Foreign currency regulations ................................................2.1 Poor public health ...............................................................1.1 Policy instability ...................................................................0.4 Government instability/coups ..............................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 284 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Namibia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.1 ............35 Intellectual property protection ............................... 4.3 ............40 Diversion of public funds ........................................ 3.2 ............73 Public trust in politicians ......................................... 3.2 ............59 Irregular payments and bribes ................................ 4.1 ............61 Judicial independence............................................ 4.7 ............39 Favoritism in decisions of government officials ....... 2.9 ............84 Wastefulness of government spending ................... 3.2 ............70 Burden of government regulation ........................... 3.5 ............72 Efficiency of legal framework in settling disputes .... 4.5 ............29 Efficiency of legal framework in challenging regs. ... 3.9 ............36 Transparency of government policymaking............. 3.9 ............78 Business costs of terrorism .................................... 5.8 ............39 Business costs of crime and violence..................... 4.0 ............94 Organized crime ..................................................... 4.7 ............76 Reliability of police services .................................... 3.9 ............84 Ethical behavior of firms ......................................... 4.2 ............53 Strength of auditing and reporting standards ......... 5.4 ............34 Efficacy of corporate boards .................................. 4.6 ............67 Protection of minority shareholders’ interests ......... 4.8 ............30 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.0 ............42 Quality of roads ...................................................... 5.2 ............28 Quality of railroad infrastructure .............................. 3.3 ............47 Quality of port infrastructure ................................... 5.2 ............30 Quality of air transport infrastructure....................... 4.6 ............62 Available airline seat km/week, millions* ............... 29.3 ..........111 Quality of electricity supply ..................................... 5.4 ............52 Mobile telephone subscriptions/100 pop.* ......... 110.2 ............74 Fixed telephone lines/100 pop.* ............................. 8.0 ..........100 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.7 ..........103 Gross national savings, % GDP* .......................... 20.1 ............68 Inflation, annual % change* .................................... 6.2 ..........109 General government debt, % GDP* ..................... 26.6 ............28 Country credit rating, 0–100 (best)* ...................... 54.1 ............62 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 23.0 ............22 Business impact of malaria .................................... 4.6 ............42 Tuberculosis cases/100,000 pop.* ..................... 655.0 ..........141 Business impact of tuberculosis ............................. 3.9 ..........133 HIV prevalence, % adult pop.* ............................. 13.3 ..........138 Business impact of HIV/AIDS ................................. 3.4 ..........137 Infant mortality, deaths/1,000 live births* .............. 28.3 ..........100 Life expectancy, years*......................................... 63.9 ..........114 Quality of primary education ................................... 3.1 ..........107 Primary education enrollment, net %* .................. 87.7 ..........107 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 64.8 ..........111 Tertiary education enrollment, gross %*.................. 9.3 ..........117 Quality of the education system ............................. 3.1 ..........107 Quality of math and science education .................. 2.9 ..........126 Quality of management schools ............................. 3.4 ..........118 Internet access in schools ...................................... 3.5 ..........106 Availability of research and training services ........... 3.6 ..........102 Extent of staff training ............................................ 4.1 ............57 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 66.0 ..........134 Agricultural policy costs.......................................... 3.9 ............55 Prevalence of trade barriers ................................... 4.4 ............64 Trade tariffs, % duty* .............................................. 6.1 ............78 Prevalence of foreign ownership............................. 5.1 ............36 Business impact of rules on FDI ............................. 4.2 ............97 Burden of customs procedures .............................. 4.1 ............64 Imports as a percentage of GDP* ........................ 68.1 ............34 Degree of customer orientation .............................. 3.5 ..........134 Buyer sophistication ............................................... 3.3 ............81 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ..........101 Flexibility of wage determination ............................. 4.8 ............91 Hiring and firing practices ....................................... 2.9 ..........128 Redundancy costs, weeks of salary* ...................... 9.7 ............35 Effect of taxation on incentives to work .................. 4.0 ............39 Pay and productivity............................................... 3.5 ..........107 Reliance on professional management ................... 4.2 ............69 Country capacity to retain talent............................. 3.4 ............72 Country capacity to attract talent ........................... 3.4 ............71 Women in labor force, ratio to men* ..................... 0.87 ............46 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.7 ............54 Affordability of financial services ............................. 4.4 ............49 Financing through local equity market .................... 3.7 ............54 Ease of access to loans ......................................... 2.8 ............68 Venture capital availability ....................................... 2.5 ............88 Soundness of banks .............................................. 5.7 ............36 Regulation of securities exchanges ........................ 4.8 ............37 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.1 ............54 Firm-level technology absorption ............................ 4.9 ............54 FDI and technology transfer ................................... 4.7 ............58 Individuals using Internet, %* ............................... 13.9 ..........118 Fixed broadband Internet subscriptions/100 pop.* ... 1.3 ..........102 Int’l Internet bandwidth, kb/s per user* .................. 3.4 ..........128 Mobile broadband subscriptions/100 pop.*.......... 34.2 ............61 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.5 ..........117 Foreign market size index, 1–7 (best)* .................... 3.4 ..........120 GDP (PPP$ billions)* ............................................ 17.8 ..........121 Exports as a percentage of GDP* ........................ 33.8 ............83 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.7 ..........132 Local supplier quality.............................................. 4.2 ............82 State of cluster development.................................. 3.8 ............68 Nature of competitive advantage ............................ 3.5 ............66 Value chain breadth................................................ 3.2 ..........117 Control of international distribution ......................... 3.6 ..........111 Production process sophistication.......................... 3.7 ............83 Extent of marketing ................................................ 3.9 ............96 Willingness to delegate authority ............................ 3.6 ............78 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............79 Quality of scientific research institutions ................. 3.5 ............84 Company spending on R&D................................... 3.1 ............69 University-industry collaboration in R&D ................. 3.5 ............79 Gov’t procurement of advanced tech products ...... 3.3 ............82 Availability of scientists and engineers .................... 3.0 ..........130 PCT patents, applications/million pop.* .................. 1.7 ............59 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.6 ..........104 Extent of market dominance .................................. 3.5 ............90 Effectiveness of anti-monopoly policy ..................... 4.2 ............59 Effect of taxation on incentives to invest................. 4.0 ............39 Total tax rate, % profits* ....................................... 21.8 ............15 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 285 2.1: Country/Economy Profiles Nepal Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 27.9 GDP (US$ billions) .......................................... 19.3 GDP per capita (US$) ...................................... 693 GDP (PPP) as share (%) of world total ............ 0.05 Nepal 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 Emerging and Developing Asia 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 102 ..... 3.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 117 ......3.7 GCI 2012–2013 (out of 144) ................................... 125 ......3.5 GCI 2011–2012 (out of 142) ................................... 125 ......3.5 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................100 ......4.1 7 Innovation Institutions .............................................................. 120 ......3.2 Infrastructure .......................................................... 132 ......2.1 Macroeconomic environment ................................... 37 ......5.4 Health and primary education ................................... 75 ......5.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................115 ......3.4 Market size Higher education and training ................................. 113 ......3.2 Goods market efficiency ........................................ 121 ......3.9 Labor market efficiency .......................................... 114 ......3.8 Financial market development .................................. 75 ......3.9 Technological readiness .......................................... 128 ......2.6 Market size ............................................................... 98 ......3.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........124 ......3.0 Business sophistication ......................................... 126 ......3.3 Innovation ............................................................... 126 ......2.6 Nepal Emerging and Developing Asia The most problematic factors for doing business Government instability/coups ............................................16.9 Corruption .........................................................................16.6 Inadequate supply of infrastructure ....................................12.2 Policy instability .................................................................11.1 Inefficient government bureaucracy .....................................7.9 Restrictive labor regulations .................................................7.2 Access to financing .............................................................5.7 Poor work ethic in national labor force ................................5.7 Inadequately educated workforce ........................................4.4 Tax regulations ....................................................................2.4 Crime and theft ...................................................................2.1 Foreign currency regulations ................................................2.0 Inflation ................................................................................2.0 Tax rates..............................................................................1.9 Insufficient capacity to innovate ...........................................1.4 Poor public health ...............................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 286 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Nepal The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.3 ..........119 Intellectual property protection ............................... 2.9 ..........111 Diversion of public funds ........................................ 2.8 ............92 Public trust in politicians ......................................... 2.1 ..........122 Irregular payments and bribes ................................ 2.9 ..........119 Judicial independence............................................ 3.3 ............92 Favoritism in decisions of government officials ....... 2.8 ............91 Wastefulness of government spending ................... 2.5 ..........111 Burden of government regulation ........................... 3.0 ..........106 Efficiency of legal framework in settling disputes .... 2.9 ..........120 Efficiency of legal framework in challenging regs. ... 2.9 ..........101 Transparency of government policymaking............. 3.5 ..........117 Business costs of terrorism .................................... 4.1 ..........119 Business costs of crime and violence..................... 3.4 ..........119 Organized crime ..................................................... 3.5 ..........129 Reliability of police services .................................... 3.8 ............87 Ethical behavior of firms ......................................... 3.3 ..........128 Strength of auditing and reporting standards ......... 3.8 ..........121 Efficacy of corporate boards .................................. 4.0 ..........115 Protection of minority shareholders’ interests ......... 3.3 ..........126 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.9 ..........126 Quality of roads ...................................................... 2.9 ..........115 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.2 ..........137 Quality of air transport infrastructure....................... 2.9 ..........129 Available airline seat km/week, millions* ............. 109.1 ............80 Quality of electricity supply ..................................... 1.8 ..........136 Mobile telephone subscriptions/100 pop.* ........... 71.5 ..........120 Fixed telephone lines/100 pop.* ............................. 3.1 ..........114 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 2.0 ............11 Gross national savings, % GDP* .......................... 35.1 ............15 Inflation, annual % change* .................................... 9.9 ..........136 General government debt, % GDP* ..................... 31.0 ............38 Country credit rating, 0–100 (best)* ...................... 23.8 ..........123 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 61.9 ............32 Business impact of malaria .................................... 5.2 ............29 Tuberculosis cases/100,000 pop.* ..................... 163.0 ..........109 Business impact of tuberculosis ............................. 4.7 ..........100 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 4.7 ..........100 Infant mortality, deaths/1,000 live births* .............. 33.6 ..........106 Life expectancy, years*......................................... 68.0 ..........102 Quality of primary education ................................... 3.6 ............89 Primary education enrollment, net %* .................. 98.5 ............19 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 66.6 ..........109 Tertiary education enrollment, gross %*................ 14.5 ..........102 Quality of the education system ............................. 3.6 ............75 Quality of math and science education .................. 3.8 ............87 Quality of management schools ............................. 3.8 ............94 Internet access in schools ...................................... 3.5 ..........102 Availability of research and training services ........... 3.1 ..........131 Extent of staff training ............................................ 3.3 ..........125 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 17.0 ............83 Agricultural policy costs.......................................... 3.6 ............96 Prevalence of trade barriers ................................... 4.3 ............84 Trade tariffs, % duty* ............................................ 17.7 ..........141 Prevalence of foreign ownership............................. 3.3 ..........127 Business impact of rules on FDI ............................. 3.7 ..........116 Burden of customs procedures .............................. 3.2 ..........124 Imports as a percentage of GDP* ........................ 38.6 ............95 Degree of customer orientation .............................. 3.8 ..........120 Buyer sophistication ............................................... 3.2 ............95 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.2 ..........141 Flexibility of wage determination ............................. 4.4 ..........115 Hiring and firing practices ....................................... 3.2 ..........119 Redundancy costs, weeks of salary* .................... 27.2 ..........118 Effect of taxation on incentives to work .................. 3.5 ............85 Pay and productivity............................................... 3.1 ..........128 Reliance on professional management ................... 3.4 ..........118 Country capacity to retain talent............................. 2.7 ..........116 Country capacity to attract talent ........................... 2.3 ..........131 Women in labor force, ratio to men* ..................... 0.93 ............17 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.2 ............84 Affordability of financial services ............................. 4.1 ............74 Financing through local equity market .................... 3.8 ............47 Ease of access to loans ......................................... 2.3 ..........116 Venture capital availability ....................................... 2.2 ..........105 Soundness of banks .............................................. 4.2 ..........103 Regulation of securities exchanges ........................ 3.4 ..........109 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.0 ..........115 Firm-level technology absorption ............................ 3.9 ..........123 FDI and technology transfer ................................... 3.7 ..........126 Individuals using Internet, %* ............................... 13.3 ..........119 Fixed broadband Internet subscriptions/100 pop.* ... 0.8 ..........110 Int’l Internet bandwidth, kb/s per user* .................. 2.4 ..........137 Mobile broadband subscriptions/100 pop.*.......... 13.0 ............92 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.1 ............90 Foreign market size index, 1–7 (best)* .................... 3.1 ..........127 GDP (PPP$ billions)* ............................................ 42.1 ............93 Exports as a percentage of GDP* .......................... 9.4 ..........142 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.2 ..........109 Local supplier quality.............................................. 3.6 ..........124 State of cluster development.................................. 3.3 ..........102 Nature of competitive advantage ............................ 3.0 ..........113 Value chain breadth................................................ 3.2 ..........118 Control of international distribution ......................... 3.3 ..........132 Production process sophistication.......................... 3.1 ..........119 Extent of marketing ................................................ 3.4 ..........121 Willingness to delegate authority ............................ 2.9 ..........135 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.1 ..........123 Quality of scientific research institutions ................. 2.6 ..........131 Company spending on R&D................................... 2.6 ..........116 University-industry collaboration in R&D ................. 2.6 ..........127 Gov’t procurement of advanced tech products ...... 2.8 ..........125 Availability of scientists and engineers .................... 3.5 ..........109 PCT patents, applications/million pop.* .................. 0.0 ..........118 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.8 ............94 Extent of market dominance .................................. 2.9 ..........132 Effectiveness of anti-monopoly policy ..................... 3.9 ............84 Effect of taxation on incentives to invest................. 3.3 ..........101 Total tax rate, % profits* ....................................... 31.5 ............43 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 287 2.1: Country/Economy Profiles Netherlands Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 16.8 GDP (US$ billions) ........................................ 800.0 GDP per capita (US$) ................................. 47,634 GDP (PPP) as share (%) of world total ............ 0.81 Netherlands 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ........................................................ 8 ..... 5.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ....................................... 8 ......5.4 GCI 2012–2013 (out of 144) ....................................... 5 ......5.5 GCI 2011–2012 (out of 142) ....................................... 7 ......5.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................10 ......6.0 7 Innovation Institutions ................................................................ 10 ......5.5 Infrastructure .............................................................. 4 ......6.3 Macroeconomic environment ................................... 39 ......5.4 Health and primary education ..................................... 5 ......6.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .......................................8 ......5.3 Market size Higher education and training ..................................... 3 ......6.0 Goods market efficiency ............................................ 9 ......5.3 Labor market efficiency ............................................ 21 ......4.7 Financial market development .................................. 37 ......4.5 Technological readiness .............................................. 9 ......6.0 Market size ............................................................... 23 ......5.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) .............6 ......5.4 Business sophistication ............................................. 5 ......5.6 Innovation ................................................................... 8 ......5.3 Netherlands Advanced economies The most problematic factors for doing business Restrictive labor regulations ...............................................19.2 Access to financing ...........................................................18.5 Inefficient government bureaucracy ...................................13.6 Tax rates............................................................................12.9 Insufficient capacity to innovate ...........................................9.8 Tax regulations ....................................................................8.3 Inadequately educated workforce ........................................5.3 Policy instability ...................................................................5.1 Poor work ethic in national labor force ................................2.7 Inadequate supply of infrastructure ......................................1.5 Inflation ................................................................................1.1 Government instability/coups ..............................................1.0 Foreign currency regulations ................................................0.7 Crime and theft ...................................................................0.2 Corruption ...........................................................................0.1 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 288 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Netherlands The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.8 ............14 Intellectual property protection ............................... 5.7 ............11 Diversion of public funds ........................................ 5.7 ............11 Public trust in politicians ......................................... 5.3 ..............9 Irregular payments and bribes ................................ 6.0 ............14 Judicial independence............................................ 6.1 ............10 Favoritism in decisions of government officials ....... 5.1 ..............6 Wastefulness of government spending ................... 4.3 ............18 Burden of government regulation ........................... 3.9 ............30 Efficiency of legal framework in settling disputes .... 5.5 ..............9 Efficiency of legal framework in challenging regs. ... 5.2 ..............5 Transparency of government policymaking............. 5.2 ............14 Business costs of terrorism .................................... 5.7 ............51 Business costs of crime and violence..................... 5.2 ............31 Organized crime ..................................................... 6.0 ............19 Reliability of police services .................................... 6.0 ............16 Ethical behavior of firms ......................................... 5.9 ............10 Strength of auditing and reporting standards ......... 5.9 ............12 Efficacy of corporate boards .................................. 5.7 ..............7 Protection of minority shareholders’ interests ......... 5.4 ............12 Strength of investor protection, 0–10 (best)* .......... 4.7 ............98 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.3 ..............6 Quality of roads ...................................................... 6.1 ..............5 Quality of railroad infrastructure .............................. 5.6 ..............9 Quality of port infrastructure ................................... 6.8 ..............1 Quality of air transport infrastructure....................... 6.4 ..............4 Available airline seat km/week, millions* .......... 1,806.0 ............23 Quality of electricity supply ..................................... 6.6 ..............9 Mobile telephone subscriptions/100 pop.* ......... 113.7 ............68 Fixed telephone lines/100 pop.* ........................... 42.5 ............19 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.1 ............78 Gross national savings, % GDP* .......................... 26.6 ............35 Inflation, annual % change* .................................... 2.6 ..............1 General government debt, % GDP* ..................... 74.9 ..........117 Country credit rating, 0–100 (best)* ...................... 89.3 ............11 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 6.3 ............14 Business impact of tuberculosis ............................. 6.8 ..............9 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 6.6 ............10 Infant mortality, deaths/1,000 live births* ................ 3.4 ............19 Life expectancy, years*......................................... 81.1 ............18 Quality of primary education ................................... 5.7 ..............8 Primary education enrollment, net %* .................. 98.4 ............21 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 129.9 ..............3 Tertiary education enrollment, gross %*................ 77.3 ............17 Quality of the education system ............................. 5.3 ..............8 Quality of math and science education .................. 5.4 ..............8 Quality of management schools ............................. 5.7 ..............9 Internet access in schools ...................................... 6.4 ..............5 Availability of research and training services ........... 6.1 ..............2 Extent of staff training ............................................ 5.0 ............12 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ................................. 4.0 ..............9 Agricultural policy costs.......................................... 4.8 ..............8 Prevalence of trade barriers ................................... 4.8 ............20 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.5 ............18 Business impact of rules on FDI ............................. 5.4 ............14 Burden of customs procedures .............................. 5.6 ..............6 Imports as a percentage of GDP* ........................ 88.9 ............12 Degree of customer orientation .............................. 5.3 ............23 Buyer sophistication ............................................... 4.3 ............17 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.5 ..............7 Flexibility of wage determination ............................. 3.5 ..........135 Hiring and firing practices ....................................... 3.1 ..........123 Redundancy costs, weeks of salary* ...................... 8.7 ............26 Effect of taxation on incentives to work .................. 3.7 ............62 Pay and productivity............................................... 3.7 ............94 Reliance on professional management ................... 6.1 ..............4 Country capacity to retain talent............................. 4.8 ............13 Country capacity to attract talent ........................... 4.8 ............15 Women in labor force, ratio to men* ..................... 0.88 ............37 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.9 ............11 Affordability of financial services ............................. 5.5 ............17 Financing through local equity market .................... 4.3 ............27 Ease of access to loans ......................................... 3.1 ............48 Venture capital availability ....................................... 3.5 ............22 Soundness of banks .............................................. 4.7 ............80 Regulation of securities exchanges ........................ 5.2 ............25 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.3 ..............9 Firm-level technology absorption ............................ 5.6 ............21 FDI and technology transfer ................................... 5.0 ............37 Individuals using Internet, %* ............................... 94.0 ..............5 Fixed broadband Internet subscriptions/100 pop.* . 40.1 ..............3 Int’l Internet bandwidth, kb/s per user* .............. 235.0 ............10 Mobile broadband subscriptions/100 pop.*.......... 62.3 ............27 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.7 ............26 Foreign market size index, 1–7 (best)* .................... 6.1 ............10 GDP (PPP$ billions)* .......................................... 700.5 ............23 Exports as a percentage of GDP* ...................... 100.7 ..............6 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.3 ............16 Local supplier quality.............................................. 5.7 ..............6 State of cluster development.................................. 5.3 ..............7 Nature of competitive advantage ............................ 6.0 ............11 Value chain breadth................................................ 5.2 ..............8 Control of international distribution ......................... 4.7 ............16 Production process sophistication.......................... 6.1 ..............5 Extent of marketing ................................................ 5.9 ..............4 Willingness to delegate authority ............................ 5.7 ..............3 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.2 ............11 Quality of scientific research institutions ................. 5.9 ..............6 Company spending on R&D................................... 4.7 ............17 University-industry collaboration in R&D ................. 5.4 ..............9 Gov’t procurement of advanced tech products ...... 4.0 ............28 Availability of scientists and engineers .................... 4.6 ............30 PCT patents, applications/million pop.* .............. 192.6 ..............9 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.9 ............14 Extent of market dominance .................................. 5.3 ..............7 Effectiveness of anti-monopoly policy ..................... 5.5 ..............2 Effect of taxation on incentives to invest................. 4.6 ............17 Total tax rate, % profits* ....................................... 39.3 ............75 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 289 2.1: Country/Economy Profiles New Zealand Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 4.5 GDP (US$ billions) ........................................ 181.3 GDP per capita (US$) ................................. 40,481 GDP (PPP) as share (%) of world total ............ 0.16 New Zealand 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 17 ..... 5.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 18 ......5.1 GCI 2012–2013 (out of 144) ..................................... 23 ......5.1 GCI 2011–2012 (out of 142) ..................................... 25 ......4.9 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .........................................9 ......6.0 7 Innovation Institutions .................................................................. 1 ......6.1 Infrastructure ............................................................ 29 ......5.3 Macroeconomic environment ................................... 25 ......5.8 Health and primary education ..................................... 4 ......6.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................11 ......5.3 Market size Higher education and training ..................................... 9 ......5.7 Goods market efficiency ............................................ 6 ......5.4 Labor market efficiency .............................................. 6 ......5.2 Financial market development .................................... 3 ......5.7 Technological readiness ............................................ 23 ......5.6 Market size ............................................................... 62 ......3.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........25 ......4.6 Business sophistication ........................................... 24 ......4.8 Innovation ................................................................. 23 ......4.4 New Zealand Advanced economies The most problematic factors for doing business Inadequate supply of infrastructure ....................................18.7 Inefficient government bureaucracy ...................................15.0 Insufficient capacity to innovate .........................................12.4 Access to financing ...........................................................10.8 Inadequately educated workforce ........................................9.8 Tax rates..............................................................................7.9 Restrictive labor regulations .................................................7.5 Policy instability ...................................................................6.1 Poor work ethic in national labor force ................................4.9 Tax regulations ....................................................................4.1 Inflation ................................................................................1.4 Foreign currency regulations ................................................1.2 Poor public health ...............................................................0.2 Corruption ...........................................................................0.0 Crime and theft ...................................................................0.0 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 290 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles New Zealand The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.0 ............10 Intellectual property protection ............................... 6.0 ..............6 Diversion of public funds ........................................ 6.6 ..............1 Public trust in politicians ......................................... 5.7 ..............6 Irregular payments and bribes ................................ 6.7 ..............1 Judicial independence............................................ 6.7 ..............1 Favoritism in decisions of government officials ....... 5.5 ..............2 Wastefulness of government spending ................... 5.1 ..............5 Burden of government regulation ........................... 4.1 ............17 Efficiency of legal framework in settling disputes .... 5.9 ..............4 Efficiency of legal framework in challenging regs. ... 5.5 ..............2 Transparency of government policymaking............. 5.8 ..............2 Business costs of terrorism .................................... 6.0 ............25 Business costs of crime and violence..................... 5.7 ............16 Organized crime ..................................................... 6.5 ..............7 Reliability of police services .................................... 6.5 ..............2 Ethical behavior of firms ......................................... 6.5 ..............1 Strength of auditing and reporting standards ......... 6.4 ..............3 Efficacy of corporate boards .................................. 6.1 ..............1 Protection of minority shareholders’ interests ......... 6.1 ..............4 Strength of investor protection, 0–10 (best)* .......... 9.7 ..............1 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.1 ............32 Quality of roads ...................................................... 4.9 ............35 Quality of railroad infrastructure .............................. 3.7 ............39 Quality of port infrastructure ................................... 5.8 ............11 Quality of air transport infrastructure....................... 5.9 ............14 Available airline seat km/week, millions* ............. 694.7 ............33 Quality of electricity supply ..................................... 6.2 ............29 Mobile telephone subscriptions/100 pop.* ......... 105.8 ............84 Fixed telephone lines/100 pop.* ........................... 41.1 ............22 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.6 ............31 Gross national savings, % GDP* .......................... 17.1 ............88 Inflation, annual % change* .................................... 1.1 ..............1 General government debt, % GDP* ..................... 35.9 ............54 Country credit rating, 0–100 (best)* ...................... 83.8 ............16 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 7.6 ............24 Business impact of tuberculosis ............................. 6.8 ..............8 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.8 ..............6 Infant mortality, deaths/1,000 live births* ................ 4.7 ............33 Life expectancy, years*......................................... 81.2 ............17 Quality of primary education ................................... 5.9 ..............6 Primary education enrollment, net %* .................. 98.4 ............22 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 119.5 ..............5 Tertiary education enrollment, gross %*................ 79.8 ............12 Quality of the education system ............................. 5.3 ..............7 Quality of math and science education .................. 5.3 ............12 Quality of management schools ............................. 5.2 ............22 Internet access in schools ...................................... 6.0 ............19 Availability of research and training services ........... 4.9 ............26 Extent of staff training ............................................ 4.9 ............17 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 1 ..............1 No. days to start a business* ................................. 0.5 ..............1 Agricultural policy costs.......................................... 6.1 ..............1 Prevalence of trade barriers ................................... 5.5 ..............4 Trade tariffs, % duty* .............................................. 1.5 ............35 Prevalence of foreign ownership............................. 5.7 ..............9 Business impact of rules on FDI ............................. 4.6 ............56 Burden of customs procedures .............................. 5.9 ..............5 Imports as a percentage of GDP* ........................ 28.6 ..........121 Degree of customer orientation .............................. 5.7 ..............5 Buyer sophistication ............................................... 4.5 ............13 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.5 ..............8 Flexibility of wage determination ............................. 5.8 ............14 Hiring and firing practices ....................................... 4.1 ............58 Redundancy costs, weeks of salary* ...................... 0.0 ..............1 Effect of taxation on incentives to work .................. 5.0 ............12 Pay and productivity............................................... 4.6 ............21 Reliance on professional management ................... 6.5 ..............1 Country capacity to retain talent............................. 3.7 ............52 Country capacity to attract talent ........................... 4.6 ............19 Women in labor force, ratio to men* ..................... 0.87 ............42 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.7 ............14 Affordability of financial services ............................. 5.7 ..............9 Financing through local equity market .................... 5.3 ..............4 Ease of access to loans ......................................... 4.0 ............11 Venture capital availability ....................................... 3.9 ............12 Soundness of banks .............................................. 6.7 ..............2 Regulation of securities exchanges ........................ 5.9 ..............6 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.1 ............21 Firm-level technology absorption ............................ 5.8 ............11 FDI and technology transfer ................................... 5.1 ............22 Individuals using Internet, %* ............................... 82.8 ............19 Fixed broadband Internet subscriptions/100 pop.* . 29.2 ............17 Int’l Internet bandwidth, kb/s per user* ................ 45.6 ............57 Mobile broadband subscriptions/100 pop.*.......... 81.3 ............14 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.7 ............60 Foreign market size index, 1–7 (best)* .................... 4.4 ............72 GDP (PPP$ billions)* .......................................... 136.6 ............60 Exports as a percentage of GDP* ........................ 28.0 ..........103 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............74 Local supplier quality.............................................. 5.5 ............15 State of cluster development.................................. 4.0 ............53 Nature of competitive advantage ............................ 4.1 ............36 Value chain breadth................................................ 3.9 ............57 Control of international distribution ......................... 4.3 ............45 Production process sophistication.......................... 5.2 ............26 Extent of marketing ................................................ 5.2 ............23 Willingness to delegate authority ............................ 5.5 ..............6 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.1 ............15 Quality of scientific research institutions ................. 5.3 ............19 Company spending on R&D................................... 3.8 ............29 University-industry collaboration in R&D ................. 4.9 ............17 Gov’t procurement of advanced tech products ...... 3.4 ............71 Availability of scientists and engineers .................... 4.4 ............40 PCT patents, applications/million pop.* ................ 73.9 ............22 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.6 ............26 Extent of market dominance .................................. 4.5 ............25 Effectiveness of anti-monopoly policy ..................... 5.4 ..............5 Effect of taxation on incentives to invest................. 4.9 ............13 Total tax rate, % profits* ....................................... 34.6 ............55 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 291 2.1: Country/Economy Profiles Nicaragua Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 6.1 GDP (US$ billions) .......................................... 11.3 GDP per capita (US$) ................................... 1,840 GDP (PPP) as share (%) of world total ............ 0.03 Nicaragua 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 99 ..... 3.8 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 99 ......3.8 GCI 2012–2013 (out of 144) ................................... 108 ......3.7 GCI 2011–2012 (out of 142) ................................... 115 ......3.6 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .......................................96 ......4.1 7 Innovation Institutions .............................................................. 114 ......3.3 Infrastructure ............................................................ 99 ......3.2 Macroeconomic environment ................................... 67 ......4.7 Health and primary education ................................... 95 ......5.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................118 ......3.4 Market size Higher education and training ................................. 114 ......3.2 Goods market efficiency ........................................ 125 ......3.8 Labor market efficiency .......................................... 108 ......3.8 Financial market development ................................ 106 ......3.6 Technological readiness .......................................... 113 ......2.8 Market size ............................................................. 102 ......3.0 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........125 ......3.0 Business sophistication ......................................... 129 ......3.3 Innovation ............................................................... 123 ......2.7 Nicaragua Latin America and the Caribbean The most problematic factors for doing business Inefficient government bureaucracy ...................................17.2 Inadequately educated workforce ......................................16.4 Inadequate supply of infrastructure ....................................11.5 Corruption .........................................................................10.7 Access to financing .............................................................9.4 Tax regulations ....................................................................8.6 Tax rates..............................................................................8.2 Insufficient capacity to innovate ...........................................7.6 Poor work ethic in national labor force ................................4.1 Poor public health ...............................................................2.3 Policy instability ...................................................................2.1 Restrictive labor regulations .................................................1.2 Inflation ................................................................................0.6 Crime and theft ...................................................................0.0 Foreign currency regulations ................................................0.0 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 292 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Nicaragua The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.1 ..........128 Intellectual property protection ............................... 3.1 ..........101 Diversion of public funds ........................................ 2.6 ..........111 Public trust in politicians ......................................... 2.3 ..........110 Irregular payments and bribes ................................ 3.4 ..........103 Judicial independence............................................ 2.3 ..........131 Favoritism in decisions of government officials ....... 2.6 ..........105 Wastefulness of government spending ................... 3.0 ............80 Burden of government regulation ........................... 3.3 ............86 Efficiency of legal framework in settling disputes .... 3.3 ..........102 Efficiency of legal framework in challenging regs. ... 2.6 ..........118 Transparency of government policymaking............. 3.6 ..........101 Business costs of terrorism .................................... 5.2 ............79 Business costs of crime and violence..................... 4.5 ............66 Organized crime ..................................................... 5.0 ............60 Reliability of police services .................................... 3.7 ............98 Ethical behavior of firms ......................................... 3.5 ..........118 Strength of auditing and reporting standards ......... 4.2 ............97 Efficacy of corporate boards .................................. 4.1 ..........111 Protection of minority shareholders’ interests ......... 3.5 ..........108 Strength of investor protection, 0–10 (best)* .......... 4.0 ..........113 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.3 ..........114 Quality of roads ...................................................... 3.6 ............88 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 3.2 ..........109 Quality of air transport infrastructure....................... 3.7 ..........103 Available airline seat km/week, millions* ............... 17.5 ..........126 Quality of electricity supply ..................................... 3.9 ............93 Mobile telephone subscriptions/100 pop.* ......... 112.0 ............71 Fixed telephone lines/100 pop.* ............................. 5.3 ..........104 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.5 ............30 Gross national savings, % GDP* .......................... 17.1 ............89 Inflation, annual % change* .................................... 7.4 ..........121 General government debt, % GDP* ..................... 42.4 ............70 Country credit rating, 0–100 (best)* ...................... 20.7 ..........128 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 38.4 ............29 Business impact of malaria .................................... 5.7 ............18 Tuberculosis cases/100,000 pop.* ....................... 38.0 ............64 Business impact of tuberculosis ............................. 5.9 ............56 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 5.5 ............72 Infant mortality, deaths/1,000 live births* .............. 20.6 ............92 Life expectancy, years*......................................... 74.5 ............66 Quality of primary education ................................... 2.6 ..........125 Primary education enrollment, net %* .................. 91.8 ............91 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 68.9 ..........104 Tertiary education enrollment, gross %*................ 19.0 ............94 Quality of the education system ............................. 2.7 ..........130 Quality of math and science education .................. 2.7 ..........130 Quality of management schools ............................. 3.7 ..........106 Internet access in schools ...................................... 3.0 ..........121 Availability of research and training services ........... 3.3 ..........123 Extent of staff training ............................................ 3.8 ............88 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 36.0 ..........122 Agricultural policy costs.......................................... 3.9 ............63 Prevalence of trade barriers ................................... 3.8 ..........128 Trade tariffs, % duty* .............................................. 4.1 ............53 Prevalence of foreign ownership............................. 4.3 ............90 Business impact of rules on FDI ............................. 4.2 ............92 Burden of customs procedures .............................. 3.1 ..........130 Imports as a percentage of GDP* ........................ 57.3 ............47 Degree of customer orientation .............................. 3.5 ..........131 Buyer sophistication ............................................... 3.0 ..........109 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............67 Flexibility of wage determination ............................. 4.8 ............90 Hiring and firing practices ....................................... 4.1 ............48 Redundancy costs, weeks of salary* .................... 14.9 ............69 Effect of taxation on incentives to work .................. 3.2 ..........107 Pay and productivity............................................... 4.0 ............67 Reliance on professional management ................... 3.4 ..........123 Country capacity to retain talent............................. 3.1 ............89 Country capacity to attract talent ........................... 3.1 ............91 Women in labor force, ratio to men* ..................... 0.60 ..........118 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........116 Affordability of financial services ............................. 3.8 ............96 Financing through local equity market .................... 3.0 ............92 Ease of access to loans ......................................... 2.8 ............67 Venture capital availability ....................................... 2.7 ............65 Soundness of banks .............................................. 4.8 ............72 Regulation of securities exchanges ........................ 4.1 ............69 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.9 ..........120 Firm-level technology absorption ............................ 3.8 ..........124 FDI and technology transfer ................................... 4.0 ..........109 Individuals using Internet, %* ............................... 15.5 ..........113 Fixed broadband Internet subscriptions/100 pop.* ... 2.2 ............95 Int’l Internet bandwidth, kb/s per user* ................ 32.6 ............68 Mobile broadband subscriptions/100 pop.*............ 1.3 ..........121 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.8 ............99 Foreign market size index, 1–7 (best)* .................... 3.5 ..........114 GDP (PPP$ billions)* ............................................ 27.9 ..........104 Exports as a percentage of GDP* ........................ 26.6 ..........108 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.6 ..........135 Local supplier quality.............................................. 3.6 ..........125 State of cluster development.................................. 3.2 ..........110 Nature of competitive advantage ............................ 2.5 ..........136 Value chain breadth................................................ 3.1 ..........129 Control of international distribution ......................... 3.4 ..........121 Production process sophistication.......................... 3.1 ..........121 Extent of marketing ................................................ 3.5 ..........115 Willingness to delegate authority ............................ 3.4 ..........101 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.2 ..........119 Quality of scientific research institutions ................. 2.7 ..........123 Company spending on R&D................................... 2.6 ..........115 University-industry collaboration in R&D ................. 3.0 ..........116 Gov’t procurement of advanced tech products ...... 2.9 ..........120 Availability of scientists and engineers .................... 3.1 ..........125 PCT patents, applications/million pop.* .................. 0.1 ..........101 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.2 ..........130 Extent of market dominance .................................. 3.2 ..........119 Effectiveness of anti-monopoly policy ..................... 3.6 ..........108 Effect of taxation on incentives to invest................. 3.4 ............95 Total tax rate, % profits* ....................................... 64.9 ..........133 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 293 2.1: Country/Economy Profiles Nigeria Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ...................................... 169.3 GDP (US$ billions) ........................................ 286.5 GDP per capita (US$) ................................... 1,692 GDP (PPP) as share (%) of world total ............ 0.55 Nigeria 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 127 ..... 3.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 120 ......3.6 GCI 2012–2013 (out of 144) ................................... 115 ......3.7 GCI 2011–2012 (out of 142) ................................... 127 ......3.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................140 ......3.2 7 Innovation Institutions .............................................................. 129 ......3.0 Infrastructure .......................................................... 134 ......2.1 Macroeconomic environment ................................... 76 ......4.6 Health and primary education ................................. 143 ......3.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) .....................................82 ......3.9 Market size Higher education and training ................................. 124 ......2.9 Goods market efficiency .......................................... 87 ......4.2 Labor market efficiency ............................................ 40 ......4.5 Financial market development .................................. 67 ......4.1 Technological readiness .......................................... 104 ......3.0 Market size ............................................................... 33 ......4.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........103 ......3.3 Business sophistication ........................................... 87 ......3.8 Innovation ............................................................... 114 ......2.8 Nigeria Sub-Saharan Africa The most problematic factors for doing business Inadequate supply of infrastructure ....................................26.1 Corruption .........................................................................19.6 Access to financing ...........................................................17.7 Policy instability ...................................................................7.5 Inefficient government bureaucracy .....................................7.4 Inadequately educated workforce ........................................6.0 Poor work ethic in national labor force ................................3.1 Crime and theft ...................................................................2.6 Tax regulations ....................................................................2.2 Tax rates..............................................................................2.1 Inflation ................................................................................1.8 Foreign currency regulations ................................................1.3 Insufficient capacity to innovate ...........................................1.2 Government instability/coups ..............................................0.6 Restrictive labor regulations .................................................0.4 Poor public health ...............................................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 294 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Nigeria The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.4 ..........116 Intellectual property protection ............................... 2.7 ..........126 Diversion of public funds ........................................ 1.8 ..........142 Public trust in politicians ......................................... 1.8 ..........134 Irregular payments and bribes ................................ 2.5 ..........135 Judicial independence............................................ 3.1 ..........102 Favoritism in decisions of government officials ....... 2.3 ..........126 Wastefulness of government spending ................... 2.2 ..........134 Burden of government regulation ........................... 3.1 ............99 Efficiency of legal framework in settling disputes .... 3.3 ............98 Efficiency of legal framework in challenging regs. ... 2.9 ..........105 Transparency of government policymaking............. 3.2 ..........126 Business costs of terrorism .................................... 2.8 ..........137 Business costs of crime and violence..................... 2.9 ..........130 Organized crime ..................................................... 3.7 ..........124 Reliability of police services .................................... 2.6 ..........136 Ethical behavior of firms ......................................... 3.3 ..........132 Strength of auditing and reporting standards ......... 4.3 ............88 Efficacy of corporate boards .................................. 4.4 ............80 Protection of minority shareholders’ interests ......... 3.8 ............90 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.7 ..........133 Quality of roads ...................................................... 2.7 ..........125 Quality of railroad infrastructure .............................. 1.5 ..........100 Quality of port infrastructure ................................... 3.2 ..........110 Quality of air transport infrastructure....................... 3.2 ..........121 Available airline seat km/week, millions* ............. 302.6 ............52 Quality of electricity supply ..................................... 1.6 ..........141 Mobile telephone subscriptions/100 pop.* ........... 73.3 ..........116 Fixed telephone lines/100 pop.* ............................. 0.2 ..........142 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.9 ..........106 Gross national savings, % GDP* .......................... 29.3 ............26 Inflation, annual % change* .................................... 8.5 ..........127 General government debt, % GDP* ..................... 19.4 ............18 Country credit rating, 0–100 (best)* ...................... 39.7 ............80 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 28,430.3 ............73 Business impact of malaria .................................... 3.6 ............62 Tuberculosis cases/100,000 pop.* ..................... 108.0 ............95 Business impact of tuberculosis ............................. 5.0 ............92 HIV prevalence, % adult pop.* ............................... 3.1 ..........128 Business impact of HIV/AIDS ................................. 4.5 ..........108 Infant mortality, deaths/1,000 live births* .............. 77.8 ..........140 Life expectancy, years*......................................... 52.1 ..........136 Quality of primary education ................................... 2.6 ..........124 Primary education enrollment, net %* .................. 63.9 ..........138 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 43.8 ..........127 Tertiary education enrollment, gross %*................ 10.4 ..........112 Quality of the education system ............................. 2.9 ..........122 Quality of math and science education .................. 2.6 ..........132 Quality of management schools ............................. 3.8 ..........101 Internet access in schools ...................................... 3.4 ..........111 Availability of research and training services ........... 3.7 ............95 Extent of staff training ............................................ 4.3 ............48 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 28.0 ..........109 Agricultural policy costs.......................................... 4.2 ............30 Prevalence of trade barriers ................................... 4.6 ............42 Trade tariffs, % duty* ............................................ 11.4 ..........119 Prevalence of foreign ownership............................. 4.9 ............49 Business impact of rules on FDI ............................. 4.7 ............45 Burden of customs procedures .............................. 3.0 ..........132 Imports as a percentage of GDP* ........................ 27.0 ..........125 Degree of customer orientation .............................. 3.9 ..........113 Buyer sophistication ............................................... 3.3 ............88 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.4 ............61 Flexibility of wage determination ............................. 5.5 ............35 Hiring and firing practices ....................................... 5.2 ..............7 Redundancy costs, weeks of salary* .................... 16.2 ............79 Effect of taxation on incentives to work .................. 4.3 ............21 Pay and productivity............................................... 4.2 ............51 Reliance on professional management ................... 4.5 ............52 Country capacity to retain talent............................. 3.1 ............92 Country capacity to attract talent ........................... 3.8 ............47 Women in labor force, ratio to men* ..................... 0.76 ............85 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............87 Affordability of financial services ............................. 3.5 ..........122 Financing through local equity market .................... 3.8 ............46 Ease of access to loans ......................................... 1.6 ..........137 Venture capital availability ....................................... 1.9 ..........131 Soundness of banks .............................................. 4.8 ............78 Regulation of securities exchanges ........................ 4.2 ............65 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.4 ............94 Firm-level technology absorption ............................ 4.3 ............91 FDI and technology transfer ................................... 4.5 ............77 Individuals using Internet, %* ............................... 38.0 ............87 Fixed broadband Internet subscriptions/100 pop.* ... 0.0 ..........140 Int’l Internet bandwidth, kb/s per user* .................. 0.8 ..........141 Mobile broadband subscriptions/100 pop.*.......... 10.1 ............96 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.5 ............31 Foreign market size index, 1–7 (best)* .................... 5.3 ............37 GDP (PPP$ billions)* .......................................... 479.3 ............30 Exports as a percentage of GDP* ........................ 35.6 ............77 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............46 Local supplier quality.............................................. 3.9 ............99 State of cluster development.................................. 3.8 ............72 Nature of competitive advantage ............................ 2.8 ..........117 Value chain breadth................................................ 3.6 ............92 Control of international distribution ......................... 3.8 ............98 Production process sophistication.......................... 3.3 ..........106 Extent of marketing ................................................ 4.1 ............77 Willingness to delegate authority ............................ 3.6 ............90 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............73 Quality of scientific research institutions ................. 2.8 ..........120 Company spending on R&D................................... 2.8 ..........106 University-industry collaboration in R&D ................. 2.8 ..........123 Gov’t procurement of advanced tech products ...... 3.0 ..........109 Availability of scientists and engineers .................... 3.8 ............89 PCT patents, applications/million pop.* .................. 0.0 ..........117 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.3 ............50 Extent of market dominance .................................. 3.8 ............63 Effectiveness of anti-monopoly policy ..................... 3.6 ..........110 Effect of taxation on incentives to invest................. 4.0 ............40 Total tax rate, % profits* ....................................... 33.8 ............53 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 295 2.1: Country/Economy Profiles Norway Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 5.1 GDP (US$ billions) ........................................ 511.3 GDP per capita (US$) ............................... 100,318 GDP (PPP) as share (%) of world total ............ 0.32 Norway 60,000 Advanced economies 50,000 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 11 ..... 5.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 11 ......5.3 GCI 2012–2013 (out of 144) ..................................... 15 ......5.3 GCI 2011–2012 (out of 142) ..................................... 16 ......5.2 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .........................................6 ......6.1 7 Innovation Institutions .................................................................. 5 ......5.7 Infrastructure ............................................................ 32 ......5.2 Macroeconomic environment ..................................... 1 ......6.8 Health and primary education ................................... 15 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................13 ......5.2 Market size Higher education and training ..................................... 8 ......5.7 Goods market efficiency .......................................... 24 ......4.9 Labor market efficiency ............................................ 13 ......5.0 Financial market development .................................. 10 ......5.3 Technological readiness .............................................. 4 ......6.1 Market size ............................................................... 50 ......4.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........16 ......5.1 Business sophistication ........................................... 13 ......5.3 Innovation ................................................................. 15 ......4.9 Norway Advanced economies The most problematic factors for doing business Restrictive labor regulations ...............................................18.8 Tax rates............................................................................14.9 Insufficient capacity to innovate .........................................12.1 Inadequate supply of infrastructure ....................................11.7 Inefficient government bureaucracy ...................................11.5 Tax regulations ..................................................................11.5 Access to financing .............................................................8.6 Poor work ethic in national labor force ................................3.9 Inadequately educated workforce ........................................2.5 Policy instability ...................................................................1.8 Foreign currency regulations ................................................1.4 Inflation ................................................................................0.8 Poor public health ...............................................................0.4 Corruption ...........................................................................0.2 Crime and theft ...................................................................0.1 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 296 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Norway The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.0 ..............8 Intellectual property protection ............................... 5.6 ............15 Diversion of public funds ........................................ 5.9 ..............8 Public trust in politicians ......................................... 5.9 ..............4 Irregular payments and bribes ................................ 6.3 ..............7 Judicial independence............................................ 6.3 ..............4 Favoritism in decisions of government officials ....... 5.1 ..............8 Wastefulness of government spending ................... 4.6 ............13 Burden of government regulation ........................... 3.8 ............38 Efficiency of legal framework in settling disputes .... 5.6 ..............7 Efficiency of legal framework in challenging regs. ... 4.8 ............10 Transparency of government policymaking............. 5.3 ............12 Business costs of terrorism .................................... 5.4 ............64 Business costs of crime and violence..................... 5.6 ............20 Organized crime ..................................................... 6.1 ............17 Reliability of police services .................................... 6.1 ............13 Ethical behavior of firms ......................................... 6.2 ..............6 Strength of auditing and reporting standards ......... 6.3 ..............4 Efficacy of corporate boards .................................. 6.0 ..............2 Protection of minority shareholders’ interests ......... 5.9 ..............6 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.3 ............28 Quality of roads ...................................................... 3.9 ............74 Quality of railroad infrastructure .............................. 3.9 ............36 Quality of port infrastructure ................................... 5.7 ............13 Quality of air transport infrastructure....................... 6.1 ..............6 Available airline seat km/week, millions* ............. 622.4 ............36 Quality of electricity supply ..................................... 6.7 ..............4 Mobile telephone subscriptions/100 pop.* ......... 116.5 ............60 Fixed telephone lines/100 pop.* ........................... 26.2 ............44 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. 11.1 ..............4 Gross national savings, % GDP* .......................... 37.4 ............14 Inflation, annual % change* .................................... 2.1 ..............1 General government debt, % GDP* ..................... 29.5 ............35 Country credit rating, 0–100 (best)* ...................... 94.8 ..............1 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 7.5 ............22 Business impact of tuberculosis ............................. 6.9 ..............2 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.8 ..............4 Infant mortality, deaths/1,000 live births* ................ 2.2 ..............4 Life expectancy, years*......................................... 81.5 ............13 Quality of primary education ................................... 5.0 ............23 Primary education enrollment, net %* .................. 99.4 ............11 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 111.1 ............10 Tertiary education enrollment, gross %*................ 74.1 ............21 Quality of the education system ............................. 5.0 ............14 Quality of math and science education .................. 4.5 ............41 Quality of management schools ............................. 5.3 ............19 Internet access in schools ...................................... 6.5 ..............3 Availability of research and training services ........... 5.5 ............11 Extent of staff training ............................................ 5.2 ..............8 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 7.0 ............36 Agricultural policy costs.......................................... 3.7 ............81 Prevalence of trade barriers ................................... 4.5 ............45 Trade tariffs, % duty* .............................................. 3.9 ............51 Prevalence of foreign ownership............................. 5.3 ............31 Business impact of rules on FDI ............................. 4.7 ............38 Burden of customs procedures .............................. 5.2 ............15 Imports as a percentage of GDP* ........................ 26.0 ..........128 Degree of customer orientation .............................. 5.4 ............19 Buyer sophistication ............................................... 4.3 ............19 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.8 ..............4 Flexibility of wage determination ............................. 3.7 ..........133 Hiring and firing practices ....................................... 2.8 ..........132 Redundancy costs, weeks of salary* ...................... 8.7 ............26 Effect of taxation on incentives to work .................. 4.2 ............29 Pay and productivity............................................... 3.7 ............92 Reliance on professional management ................... 6.2 ..............2 Country capacity to retain talent............................. 5.6 ..............5 Country capacity to attract talent ........................... 4.8 ............14 Women in labor force, ratio to men* ..................... 0.94 ............15 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.0 ..............9 Affordability of financial services ............................. 5.9 ..............5 Financing through local equity market .................... 5.0 ..............9 Ease of access to loans ......................................... 4.3 ..............7 Venture capital availability ....................................... 4.3 ..............6 Soundness of banks .............................................. 6.4 ..............8 Regulation of securities exchanges ........................ 5.7 ..............9 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.5 ..............3 Firm-level technology absorption ............................ 6.1 ..............4 FDI and technology transfer ................................... 4.7 ............66 Individuals using Internet, %* ............................... 95.1 ..............2 Fixed broadband Internet subscriptions/100 pop.* . 36.4 ..............6 Int’l Internet bandwidth, kb/s per user* .............. 195.9 ............13 Mobile broadband subscriptions/100 pop.*.......... 85.7 ............13 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.1 ............49 Foreign market size index, 1–7 (best)* .................... 5.0 ............47 GDP (PPP$ billions)* .......................................... 280.0 ............47 Exports as a percentage of GDP* ........................ 37.3 ............72 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............76 Local supplier quality.............................................. 5.5 ............12 State of cluster development.................................. 5.1 ............14 Nature of competitive advantage ............................ 5.3 ............18 Value chain breadth................................................ 4.6 ............25 Control of international distribution ......................... 4.6 ............27 Production process sophistication.......................... 6.1 ..............6 Extent of marketing ................................................ 5.6 ............10 Willingness to delegate authority ............................ 6.0 ..............2 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.0 ............16 Quality of scientific research institutions ................. 5.2 ............21 Company spending on R&D................................... 4.5 ............21 University-industry collaboration in R&D ................. 5.0 ............15 Gov’t procurement of advanced tech products ...... 4.2 ............14 Availability of scientists and engineers .................... 4.5 ............35 PCT patents, applications/million pop.* .............. 138.7 ............12 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.3 ............49 Extent of market dominance .................................. 4.8 ............17 Effectiveness of anti-monopoly policy ..................... 5.2 ............13 Effect of taxation on incentives to invest................. 4.0 ............41 Total tax rate, % profits* ....................................... 40.7 ............82 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 297 2.1: Country/Economy Profiles Oman Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 3.2 GDP (US$ billions) .......................................... 80.6 GDP per capita (US$) ................................. 25,289 GDP (PPP) as share (%) of world total ............ 0.11 Oman 35,000 Middle East, North Africa, and Pakistan 30,000 25,000 20,000 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 46 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 33 ......4.6 GCI 2012–2013 (out of 144) ..................................... 32 ......4.7 GCI 2011–2012 (out of 142) ..................................... 32 ......4.6 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (22.2%) .......................................19 ......5.7 Innovation Institutions ................................................................ 24 ......5.1 Infrastructure ............................................................ 33 ......5.0 Macroeconomic environment ..................................... 6 ......6.6 Health and primary education ................................... 54 ......6.0 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................49 ......4.3 Market size Higher education and training ................................... 79 ......4.2 Goods market efficiency .......................................... 28 ......4.8 Labor market efficiency ............................................ 48 ......4.4 Financial market development .................................. 28 ......4.7 Technological readiness ............................................ 57 ......4.2 Market size ............................................................... 73 ......3.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (27.8%) ...........58 ......3.8 Business sophistication ........................................... 56 ......4.2 Innovation ................................................................. 64 ......3.3 Oman Middle East, North Africa, and Pakistan The most problematic factors for doing business Restrictive labor regulations ...............................................30.2 Inadequately educated workforce ......................................20.0 Inefficient government bureaucracy ...................................14.4 Poor work ethic in national labor force ..............................13.5 Inadequate supply of infrastructure ......................................4.9 Insufficient capacity to innovate ...........................................4.8 Corruption ...........................................................................3.9 Access to financing .............................................................3.8 Policy instability ...................................................................2.3 Inflation ................................................................................1.2 Tax rates..............................................................................0.4 Poor public health ...............................................................0.3 Tax regulations ....................................................................0.2 Foreign currency regulations ................................................0.1 Crime and theft ...................................................................0.0 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 298 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Oman The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.2 ............30 Intellectual property protection ............................... 4.9 ............29 Diversion of public funds ........................................ 4.8 ............24 Public trust in politicians ......................................... 4.8 ............14 Irregular payments and bribes ................................ 5.4 ............29 Judicial independence............................................ 5.1 ............29 Favoritism in decisions of government officials ....... 4.2 ............20 Wastefulness of government spending ................... 5.1 ..............6 Burden of government regulation ........................... 4.2 ............14 Efficiency of legal framework in settling disputes .... 4.8 ............27 Efficiency of legal framework in challenging regs. ... 3.9 ............37 Transparency of government policymaking............. 4.5 ............31 Business costs of terrorism .................................... 6.3 ............11 Business costs of crime and violence..................... 6.1 ..............5 Organized crime ..................................................... 6.7 ..............3 Reliability of police services .................................... 5.6 ............27 Ethical behavior of firms ......................................... 5.0 ............25 Strength of auditing and reporting standards ......... 5.5 ............29 Efficacy of corporate boards .................................. 5.0 ............37 Protection of minority shareholders’ interests ......... 5.2 ............17 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.4 ............25 Quality of roads ...................................................... 6.0 ..............8 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 5.2 ............33 Quality of air transport infrastructure....................... 5.1 ............42 Available airline seat km/week, millions* ............. 207.0 ............63 Quality of electricity supply ..................................... 6.3 ............20 Mobile telephone subscriptions/100 pop.* ......... 154.6 ............18 Fixed telephone lines/100 pop.* ............................. 9.7 ............88 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 5.8 ..............8 Gross national savings, % GDP* .......................... 37.7 ............13 Inflation, annual % change* .................................... 1.3 ..............1 General government debt, % GDP* ....................... 7.0 ..............4 Country credit rating, 0–100 (best)* ...................... 71.4 ............33 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.0 ..............1 Business impact of malaria .................................... 6.0 ............12 Tuberculosis cases/100,000 pop.* ....................... 13.0 ............32 Business impact of tuberculosis ............................. 5.8 ............64 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 5.7 ............65 Infant mortality, deaths/1,000 live births* .............. 10.0 ............57 Life expectancy, years*......................................... 76.6 ............45 Quality of primary education ................................... 3.8 ............73 Primary education enrollment, net %* .................. 96.3 ............52 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 93.5 ............60 Tertiary education enrollment, gross %*................ 28.1 ............83 Quality of the education system ............................. 3.5 ............81 Quality of math and science education .................. 3.6 ............95 Quality of management schools ............................. 3.6 ..........113 Internet access in schools ...................................... 4.6 ............60 Availability of research and training services ........... 3.8 ............94 Extent of staff training ............................................ 4.3 ............49 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 8.0 ............39 Agricultural policy costs.......................................... 4.5 ............13 Prevalence of trade barriers ................................... 4.7 ............27 Trade tariffs, % duty* .............................................. 4.1 ............54 Prevalence of foreign ownership............................. 4.5 ............79 Business impact of rules on FDI ............................. 4.9 ............29 Burden of customs procedures .............................. 4.8 ............32 Imports as a percentage of GDP* ........................ 47.7 ............71 Degree of customer orientation .............................. 4.9 ............48 Buyer sophistication ............................................... 3.5 ............59 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.0 ............25 Flexibility of wage determination ............................. 5.6 ............27 Hiring and firing practices ....................................... 3.6 ............91 Redundancy costs, weeks of salary* ...................... 4.3 ..............8 Effect of taxation on incentives to work .................. 5.8 ..............6 Pay and productivity............................................... 3.9 ............70 Reliance on professional management ................... 4.9 ............31 Country capacity to retain talent............................. 4.5 ............21 Country capacity to attract talent ........................... 4.4 ............22 Women in labor force, ratio to men* ..................... 0.36 ..........135 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.9 ............47 Affordability of financial services ............................. 5.2 ............27 Financing through local equity market .................... 4.5 ............20 Ease of access to loans ......................................... 4.1 ..............9 Venture capital availability ....................................... 3.5 ............21 Soundness of banks .............................................. 5.9 ............22 Regulation of securities exchanges ........................ 5.5 ............14 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.1 ............56 Firm-level technology absorption ............................ 4.8 ............58 FDI and technology transfer ................................... 4.8 ............52 Individuals using Internet, %* ............................... 66.5 ............44 Fixed broadband Internet subscriptions/100 pop.* ... 2.6 ............92 Int’l Internet bandwidth, kb/s per user* ................ 34.0 ............67 Mobile broadband subscriptions/100 pop.*.......... 67.3 ............21 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.3 ............78 Foreign market size index, 1–7 (best)* .................... 4.7 ............64 GDP (PPP$ billions)* ............................................ 95.0 ............71 Exports as a percentage of GDP* ........................ 70.3 ............26 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............84 Local supplier quality.............................................. 4.5 ............59 State of cluster development.................................. 4.0 ............54 Nature of competitive advantage ............................ 3.7 ............59 Value chain breadth................................................ 3.9 ............63 Control of international distribution ......................... 4.6 ............21 Production process sophistication.......................... 4.3 ............46 Extent of marketing ................................................ 4.0 ............88 Willingness to delegate authority ............................ 4.2 ............37 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.4 ..........103 Quality of scientific research institutions ................. 3.4 ............92 Company spending on R&D................................... 3.0 ............87 University-industry collaboration in R&D ................. 3.6 ............69 Gov’t procurement of advanced tech products ...... 4.2 ............12 Availability of scientists and engineers .................... 3.7 ............92 PCT patents, applications/million pop.* .................. 1.0 ............71 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.0 ............73 Extent of market dominance .................................. 3.6 ............80 Effectiveness of anti-monopoly policy ..................... 4.3 ............49 Effect of taxation on incentives to invest................. 5.7 ..............5 Total tax rate, % profits* ....................................... 22.0 ............16 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 299 2.1: Country/Economy Profiles Pakistan Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ...................................... 182.6 GDP (US$ billions) ........................................ 238.7 GDP per capita (US$) ................................... 1,308 GDP (PPP) as share (%) of world total ............ 0.66 Pakistan 8,000 Middle East, North Africa, and Pakistan 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 129 ..... 3.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 133 ......3.4 GCI 2012–2013 (out of 144) ................................... 124 ......3.5 GCI 2011–2012 (out of 142) ................................... 118 ......3.6 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................134 ......3.3 Innovation Institutions .............................................................. 123 ......3.2 Infrastructure .......................................................... 119 ......2.7 Macroeconomic environment ................................. 137 ......3.2 Health and primary education ................................. 129 ......4.0 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................101 ......3.6 Market size Higher education and training ................................. 127 ......2.8 Goods market efficiency ........................................ 100 ......4.1 Labor market efficiency .......................................... 132 ......3.4 Financial market development .................................. 72 ......4.0 Technological readiness .......................................... 114 ......2.8 Market size ............................................................... 30 ......4.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............83 ......3.5 Business sophistication ........................................... 81 ......3.9 Innovation ................................................................. 88 ......3.1 Pakistan Middle East, North Africa, and Pakistan The most problematic factors for doing business Inadequate supply of infrastructure ....................................14.3 Corruption .........................................................................13.0 Inefficient government bureaucracy ...................................10.2 Policy instability ...................................................................8.5 Access to financing .............................................................7.6 Government instability/coups ..............................................7.3 Inadequately educated workforce ........................................6.4 Poor work ethic in national labor force ................................6.3 Crime and theft ...................................................................5.6 Tax rates..............................................................................4.7 Inflation ................................................................................3.7 Tax regulations ....................................................................3.5 Insufficient capacity to innovate ...........................................3.3 Foreign currency regulations ................................................2.9 Restrictive labor regulations .................................................1.8 Poor public health ...............................................................0.9 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 300 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Pakistan The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.3 ..........121 Intellectual property protection ............................... 2.9 ..........117 Diversion of public funds ........................................ 2.8 ............94 Public trust in politicians ......................................... 2.3 ..........108 Irregular payments and bribes ................................ 2.9 ..........123 Judicial independence............................................ 3.8 ............67 Favoritism in decisions of government officials ....... 2.6 ..........101 Wastefulness of government spending ................... 2.6 ..........103 Burden of government regulation ........................... 3.1 ..........103 Efficiency of legal framework in settling disputes .... 3.3 ..........101 Efficiency of legal framework in challenging regs. ... 3.1 ............89 Transparency of government policymaking............. 3.4 ..........118 Business costs of terrorism .................................... 2.7 ..........139 Business costs of crime and violence..................... 2.8 ..........132 Organized crime ..................................................... 3.0 ..........137 Reliability of police services .................................... 2.8 ..........127 Ethical behavior of firms ......................................... 3.5 ..........111 Strength of auditing and reporting standards ......... 4.3 ............90 Efficacy of corporate boards .................................. 4.0 ..........119 Protection of minority shareholders’ interests ......... 4.0 ............79 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.3 ..........113 Quality of roads ...................................................... 3.8 ............75 Quality of railroad infrastructure .............................. 2.5 ............72 Quality of port infrastructure ................................... 4.4 ............59 Quality of air transport infrastructure....................... 3.9 ............92 Available airline seat km/week, millions* ............. 415.7 ............48 Quality of electricity supply ..................................... 2.1 ..........133 Mobile telephone subscriptions/100 pop.* ........... 70.1 ..........124 Fixed telephone lines/100 pop.* ............................. 3.5 ..........111 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –7.8 ..........134 Gross national savings, % GDP* .......................... 13.2 ..........120 Inflation, annual % change* .................................... 7.4 ..........120 General government debt, % GDP* ..................... 63.1 ..........106 Country credit rating, 0–100 (best)* ...................... 25.2 ..........121 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 1,953.6 ............47 Business impact of malaria .................................... 4.2 ............50 Tuberculosis cases/100,000 pop.* ..................... 231.0 ..........123 Business impact of tuberculosis ............................. 4.4 ..........108 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 4.8 ............97 Infant mortality, deaths/1,000 live births* .............. 69.3 ..........137 Life expectancy, years*......................................... 66.4 ..........109 Quality of primary education ................................... 2.8 ..........119 Primary education enrollment, net %* .................. 72.5 ..........132 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 36.6 ..........131 Tertiary education enrollment, gross %*.................. 9.5 ..........115 Quality of the education system ............................. 3.4 ............92 Quality of math and science education .................. 3.4 ..........104 Quality of management schools ............................. 4.3 ............67 Internet access in schools ...................................... 3.8 ............89 Availability of research and training services ........... 3.6 ..........101 Extent of staff training ............................................ 3.4 ..........122 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 21.0 ............96 Agricultural policy costs.......................................... 3.4 ..........109 Prevalence of trade barriers ................................... 4.4 ............65 Trade tariffs, % duty* ............................................ 16.9 ..........140 Prevalence of foreign ownership............................. 3.8 ..........114 Business impact of rules on FDI ............................. 4.4 ............75 Burden of customs procedures .............................. 3.7 ............87 Imports as a percentage of GDP* ........................ 21.6 ..........134 Degree of customer orientation .............................. 4.2 ............98 Buyer sophistication ............................................... 3.3 ............80 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.9 ..........107 Flexibility of wage determination ............................. 4.6 ..........103 Hiring and firing practices ....................................... 4.1 ............49 Redundancy costs, weeks of salary* .................... 27.2 ..........118 Effect of taxation on incentives to work .................. 3.5 ............82 Pay and productivity............................................... 3.8 ............86 Reliance on professional management ................... 3.9 ............87 Country capacity to retain talent............................. 3.2 ............87 Country capacity to attract talent ........................... 2.7 ..........110 Women in labor force, ratio to men* ..................... 0.30 ..........140 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.2 ............82 Affordability of financial services ............................. 4.0 ............84 Financing through local equity market .................... 3.6 ............61 Ease of access to loans ......................................... 2.6 ............90 Venture capital availability ....................................... 2.5 ............92 Soundness of banks .............................................. 4.8 ............71 Regulation of securities exchanges ........................ 4.5 ............51 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.5 ............85 Firm-level technology absorption ............................ 4.4 ............83 FDI and technology transfer ................................... 4.3 ............90 Individuals using Internet, %* ............................... 10.9 ..........122 Fixed broadband Internet subscriptions/100 pop.* ... 0.6 ..........113 Int’l Internet bandwidth, kb/s per user* .................. 6.5 ..........110 Mobile broadband subscriptions/100 pop.*............ 0.5 ..........127 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.8 ............25 Foreign market size index, 1–7 (best)* .................... 4.7 ............63 GDP (PPP$ billions)* .......................................... 575.0 ............26 Exports as a percentage of GDP* ........................ 11.9 ..........141 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............66 Local supplier quality.............................................. 4.1 ............94 State of cluster development.................................. 3.9 ............58 Nature of competitive advantage ............................ 3.2 ............93 Value chain breadth................................................ 3.9 ............64 Control of international distribution ......................... 3.8 ............88 Production process sophistication.......................... 3.6 ............87 Extent of marketing ................................................ 4.1 ............74 Willingness to delegate authority ............................ 3.3 ..........115 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............51 Quality of scientific research institutions ................. 3.4 ............94 Company spending on R&D................................... 2.9 ............93 University-industry collaboration in R&D ................. 3.2 ............98 Gov’t procurement of advanced tech products ...... 3.1 ............98 Availability of scientists and engineers .................... 4.3 ............49 PCT patents, applications/million pop.* .................. 0.0 ..........114 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............84 Extent of market dominance .................................. 3.7 ............71 Effectiveness of anti-monopoly policy ..................... 3.9 ............85 Effect of taxation on incentives to invest................. 3.8 ............64 Total tax rate, % profits* ....................................... 34.7 ............56 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 301 2.1: Country/Economy Profiles Panama Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 3.7 GDP (US$ billions) .......................................... 40.3 GDP per capita (US$) ................................. 10,839 GDP (PPP) as share (%) of world total ............ 0.07 Panama 20,000 Latin America and the Caribbean 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 48 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 40 ......4.5 GCI 2012–2013 (out of 144) ..................................... 40 ......4.5 GCI 2011–2012 (out of 142) ..................................... 49 ......4.4 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (35.4%) .......................................53 ......4.8 7 Innovation Institutions ................................................................ 71 ......3.8 Infrastructure ............................................................ 40 ......4.8 Macroeconomic environment ................................... 52 ......5.1 Health and primary education ................................... 79 ......5.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................55 ......4.3 Market size Higher education and training ................................... 66 ......4.4 Goods market efficiency .......................................... 41 ......4.6 Labor market efficiency ............................................ 87 ......4.1 Financial market development .................................. 22 ......4.8 Technological readiness ............................................ 53 ......4.3 Market size ............................................................... 80 ......3.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (14.6%) ...........46 ......3.9 Business sophistication ........................................... 54 ......4.2 Innovation ................................................................. 40 ......3.6 Panama Latin America and the Caribbean The most problematic factors for doing business Corruption .........................................................................16.8 Inadequately educated workforce ......................................15.2 Inefficient government bureaucracy ...................................14.3 Restrictive labor regulations ...............................................10.5 Poor work ethic in national labor force ................................6.9 Access to financing .............................................................6.6 Crime and theft ...................................................................6.2 Inflation ................................................................................5.2 Tax regulations ....................................................................4.0 Inadequate supply of infrastructure ......................................3.2 Insufficient capacity to innovate ...........................................3.0 Tax rates..............................................................................3.0 Policy instability ...................................................................1.8 Poor public health ...............................................................1.7 Foreign currency regulations ................................................1.1 Government instability/coups ..............................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 302 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Panama The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.5 ............49 Intellectual property protection ............................... 4.4 ............38 Diversion of public funds ........................................ 2.8 ............93 Public trust in politicians ......................................... 2.4 ..........102 Irregular payments and bribes ................................ 3.8 ............79 Judicial independence............................................ 2.7 ..........116 Favoritism in decisions of government officials ....... 2.8 ............89 Wastefulness of government spending ................... 3.3 ............58 Burden of government regulation ........................... 4.0 ............24 Efficiency of legal framework in settling disputes .... 3.6 ............74 Efficiency of legal framework in challenging regs. ... 3.4 ............69 Transparency of government policymaking............. 4.2 ............53 Business costs of terrorism .................................... 5.2 ............73 Business costs of crime and violence..................... 3.9 ............95 Organized crime ..................................................... 4.5 ............87 Reliability of police services .................................... 4.5 ............52 Ethical behavior of firms ......................................... 3.9 ............70 Strength of auditing and reporting standards ......... 5.1 ............44 Efficacy of corporate boards .................................. 4.5 ............71 Protection of minority shareholders’ interests ......... 4.4 ............54 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.0 ............39 Quality of roads ...................................................... 4.7 ............44 Quality of railroad infrastructure .............................. 3.9 ............35 Quality of port infrastructure ................................... 6.3 ..............7 Quality of air transport infrastructure....................... 6.1 ..............7 Available airline seat km/week, millions* ............. 384.2 ............50 Quality of electricity supply ..................................... 4.9 ............68 Mobile telephone subscriptions/100 pop.* ......... 163.0 ............10 Fixed telephone lines/100 pop.* ........................... 15.2 ............74 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.0 ............75 Gross national savings, % GDP* .......................... 18.1 ............83 Inflation, annual % change* .................................... 4.0 ............81 General government debt, % GDP* ..................... 41.3 ............67 Country credit rating, 0–100 (best)* ...................... 61.9 ............46 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 26.3 ............24 Business impact of malaria .................................... 6.0 ..............9 Tuberculosis cases/100,000 pop.* ....................... 48.0 ............70 Business impact of tuberculosis ............................. 5.9 ............59 HIV prevalence, % adult pop.* ............................... 0.7 ............97 Business impact of HIV/AIDS ................................. 4.7 ..........101 Infant mortality, deaths/1,000 live births* .............. 15.9 ............79 Life expectancy, years*......................................... 77.4 ............38 Quality of primary education ................................... 3.5 ............93 Primary education enrollment, net %* .................. 91.2 ............97 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 84.0 ............90 Tertiary education enrollment, gross %*................ 41.8 ............64 Quality of the education system ............................. 3.5 ............83 Quality of math and science education .................. 3.3 ..........107 Quality of management schools ............................. 4.2 ............71 Internet access in schools ...................................... 5.1 ............40 Availability of research and training services ........... 4.2 ............63 Extent of staff training ............................................ 4.3 ............47 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 3.6 ............92 Prevalence of trade barriers ................................... 4.5 ............46 Trade tariffs, % duty* .............................................. 4.9 ............67 Prevalence of foreign ownership............................. 5.5 ............19 Business impact of rules on FDI ............................. 5.4 ............13 Burden of customs procedures .............................. 4.4 ............50 Imports as a percentage of GDP* ........................ 64.3 ............40 Degree of customer orientation .............................. 4.2 ............93 Buyer sophistication ............................................... 3.8 ............39 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.5 ............51 Flexibility of wage determination ............................. 4.6 ..........106 Hiring and firing practices ....................................... 3.7 ............85 Redundancy costs, weeks of salary* .................... 18.1 ............87 Effect of taxation on incentives to work .................. 4.0 ............35 Pay and productivity............................................... 3.5 ..........101 Reliance on professional management ................... 3.8 ..........100 Country capacity to retain talent............................. 4.6 ............19 Country capacity to attract talent ........................... 4.9 ............13 Women in labor force, ratio to men* ..................... 0.62 ..........113 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.7 ............16 Affordability of financial services ............................. 5.5 ............18 Financing through local equity market .................... 4.2 ............33 Ease of access to loans ......................................... 4.0 ............13 Venture capital availability ....................................... 3.6 ............16 Soundness of banks .............................................. 6.2 ............12 Regulation of securities exchanges ........................ 5.0 ............29 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.6 ............36 Firm-level technology absorption ............................ 5.3 ............35 FDI and technology transfer ................................... 5.7 ..............4 Individuals using Internet, %* ............................... 42.9 ............81 Fixed broadband Internet subscriptions/100 pop.* ... 7.7 ............71 Int’l Internet bandwidth, kb/s per user* ................ 54.3 ............49 Mobile broadband subscriptions/100 pop.*.......... 25.2 ............73 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.2 ............83 Foreign market size index, 1–7 (best)* .................... 4.4 ............73 GDP (PPP$ billions)* ............................................ 62.0 ............81 Exports as a percentage of GDP* ........................ 61.6 ............33 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............88 Local supplier quality.............................................. 4.5 ............61 State of cluster development.................................. 4.0 ............52 Nature of competitive advantage ............................ 4.4 ............31 Value chain breadth................................................ 4.3 ............34 Control of international distribution ......................... 4.2 ............53 Production process sophistication.......................... 4.2 ............52 Extent of marketing ................................................ 4.6 ............44 Willingness to delegate authority ............................ 3.7 ............74 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.2 ............42 Quality of scientific research institutions ................. 4.1 ............46 Company spending on R&D................................... 3.7 ............34 University-industry collaboration in R&D ................. 4.0 ............41 Gov’t procurement of advanced tech products ...... 4.3 ............11 Availability of scientists and engineers .................... 3.9 ............84 PCT patents, applications/million pop.* .................. 1.4 ............62 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.1 ............67 Extent of market dominance .................................. 4.0 ............49 Effectiveness of anti-monopoly policy ..................... 4.3 ............51 Effect of taxation on incentives to invest................. 4.4 ............23 Total tax rate, % profits* ....................................... 40.5 ............81 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 303 2.1: Country/Economy Profiles Paraguay Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 6.8 GDP (US$ billions) .......................................... 28.3 GDP per capita (US$) ................................... 4,170 GDP (PPP) as share (%) of world total ............ 0.05 Paraguay 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 120 ..... 3.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 119 ......3.6 GCI 2012–2013 (out of 144) ................................... 116 ......3.7 GCI 2011–2012 (out of 142) ................................... 122 ......3.5 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .....................................112 ......3.8 7 Innovation Institutions .............................................................. 133 ......2.9 Infrastructure .......................................................... 117 ......2.7 Macroeconomic environment ................................... 54 ......5.0 Health and primary education ................................. 111 ......4.8 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) ...................................112 ......3.5 Market size Higher education and training ................................. 112 ......3.3 Goods market efficiency .......................................... 92 ......4.2 Labor market efficiency .......................................... 115 ......3.8 Financial market development .................................. 93 ......3.7 Technological readiness .......................................... 110 ......2.9 Market size ............................................................... 92 ......3.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........132 ......2.9 Business sophistication ......................................... 121 ......3.4 Innovation ............................................................... 134 ......2.4 Paraguay Latin America and the Caribbean The most problematic factors for doing business Corruption .........................................................................18.7 Inefficient government bureaucracy ...................................15.9 Inadequately educated workforce ......................................15.8 Inadequate supply of infrastructure ....................................14.9 Access to financing .............................................................9.5 Restrictive labor regulations .................................................6.3 Insufficient capacity to innovate ...........................................4.5 Poor work ethic in national labor force ................................3.4 Poor public health ...............................................................2.7 Tax regulations ....................................................................2.4 Crime and theft ...................................................................2.3 Inflation ................................................................................1.1 Foreign currency regulations ................................................1.0 Tax rates..............................................................................0.9 Policy instability ...................................................................0.6 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 304 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Paraguay The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.2 ..........124 Intellectual property protection ............................... 2.5 ..........132 Diversion of public funds ........................................ 1.8 ..........141 Public trust in politicians ......................................... 1.4 ..........142 Irregular payments and bribes ................................ 2.7 ..........131 Judicial independence............................................ 1.6 ..........142 Favoritism in decisions of government officials ....... 2.0 ..........139 Wastefulness of government spending ................... 1.9 ..........140 Burden of government regulation ........................... 3.8 ............40 Efficiency of legal framework in settling disputes .... 2.4 ..........136 Efficiency of legal framework in challenging regs. ... 3.2 ............85 Transparency of government policymaking............. 3.9 ............73 Business costs of terrorism .................................... 4.9 ............93 Business costs of crime and violence..................... 3.6 ..........110 Organized crime ..................................................... 4.4 ............91 Reliability of police services .................................... 2.3 ..........141 Ethical behavior of firms ......................................... 2.9 ..........142 Strength of auditing and reporting standards ......... 4.1 ..........105 Efficacy of corporate boards .................................. 4.0 ..........118 Protection of minority shareholders’ interests ......... 3.5 ..........107 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.7 ..........132 Quality of roads ...................................................... 2.5 ..........133 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 3.2 ..........108 Quality of air transport infrastructure....................... 2.6 ..........136 Available airline seat km/week, millions* ............... 27.0 ..........115 Quality of electricity supply ..................................... 3.2 ..........107 Mobile telephone subscriptions/100 pop.* ......... 103.7 ............88 Fixed telephone lines/100 pop.* ............................. 5.9 ..........103 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.8 ............47 Gross national savings, % GDP* .......................... 16.9 ............92 Inflation, annual % change* .................................... 2.7 ..............1 General government debt, % GDP* ..................... 15.2 ............13 Country credit rating, 0–100 (best)* ...................... 37.1 ............87 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.0 ..............1 Business impact of malaria .................................... 6.1 ..............8 Tuberculosis cases/100,000 pop.* ....................... 45.0 ............68 Business impact of tuberculosis ............................. 5.9 ............57 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 5.8 ............59 Infant mortality, deaths/1,000 live births* .............. 18.8 ............89 Life expectancy, years*......................................... 72.2 ............84 Quality of primary education ................................... 2.1 ..........140 Primary education enrollment, net %* .................. 81.9 ..........124 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 69.6 ..........102 Tertiary education enrollment, gross %*................ 34.5 ............74 Quality of the education system ............................. 2.3 ..........139 Quality of math and science education .................. 2.3 ..........138 Quality of management schools ............................. 3.1 ..........129 Internet access in schools ...................................... 2.9 ..........122 Availability of research and training services ........... 3.0 ..........133 Extent of staff training ............................................ 3.7 ..........105 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 35.0 ..........119 Agricultural policy costs.......................................... 4.0 ............45 Prevalence of trade barriers ................................... 4.4 ............69 Trade tariffs, % duty* .............................................. 6.8 ............85 Prevalence of foreign ownership............................. 4.4 ............86 Business impact of rules on FDI ............................. 4.4 ............72 Burden of customs procedures .............................. 4.1 ............66 Imports as a percentage of GDP* ........................ 49.7 ............66 Degree of customer orientation .............................. 4.1 ............99 Buyer sophistication ............................................... 2.8 ..........120 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.4 ............59 Flexibility of wage determination ............................. 5.5 ............32 Hiring and firing practices ....................................... 3.4 ..........110 Redundancy costs, weeks of salary* .................... 26.1 ..........115 Effect of taxation on incentives to work .................. 4.4 ............17 Pay and productivity............................................... 3.5 ..........109 Reliance on professional management ................... 3.2 ..........129 Country capacity to retain talent............................. 3.0 ..........100 Country capacity to attract talent ........................... 2.7 ..........111 Women in labor force, ratio to men* ..................... 0.66 ..........103 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.3 ............80 Affordability of financial services ............................. 3.7 ..........108 Financing through local equity market .................... 3.5 ............69 Ease of access to loans ......................................... 3.0 ............57 Venture capital availability ....................................... 2.2 ..........113 Soundness of banks .............................................. 5.6 ............44 Regulation of securities exchanges ........................ 4.1 ............67 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.0 ..........118 Firm-level technology absorption ............................ 4.1 ..........114 FDI and technology transfer ................................... 4.2 ............96 Individuals using Internet, %* ............................... 36.9 ............92 Fixed broadband Internet subscriptions/100 pop.* ... 1.6 ............98 Int’l Internet bandwidth, kb/s per user* ................ 12.7 ............92 Mobile broadband subscriptions/100 pop.*............ 4.8 ..........110 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.1 ............89 Foreign market size index, 1–7 (best)* .................... 3.9 ............96 GDP (PPP$ billions)* ............................................ 46.4 ............90 Exports as a percentage of GDP* ........................ 31.4 ............91 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............78 Local supplier quality.............................................. 4.0 ............95 State of cluster development.................................. 3.1 ..........121 Nature of competitive advantage ............................ 2.3 ..........142 Value chain breadth................................................ 3.0 ..........133 Control of international distribution ......................... 3.8 ............92 Production process sophistication.......................... 3.2 ..........117 Extent of marketing ................................................ 3.7 ..........105 Willingness to delegate authority ............................ 3.0 ..........132 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.1 ..........120 Quality of scientific research institutions ................. 2.2 ..........141 Company spending on R&D................................... 2.6 ..........121 University-industry collaboration in R&D ................. 2.7 ..........125 Gov’t procurement of advanced tech products ...... 2.9 ..........124 Availability of scientists and engineers .................... 2.6 ..........142 PCT patents, applications/million pop.* .................. 0.1 ..........100 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.1 ............68 Extent of market dominance .................................. 3.2 ..........118 Effectiveness of anti-monopoly policy ..................... 3.3 ..........128 Effect of taxation on incentives to invest................. 4.7 ............15 Total tax rate, % profits* ....................................... 35.0 ............58 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 305 2.1: Country/Economy Profiles Peru Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 30.9 GDP (US$ billions) ........................................ 206.5 GDP per capita (US$) ................................... 6,674 GDP (PPP) as share (%) of world total ............ 0.40 Peru 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 65 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 61 ......4.3 GCI 2012–2013 (out of 144) ..................................... 61 ......4.3 GCI 2011–2012 (out of 142) ..................................... 67 ......4.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................74 ......4.5 Innovation Institutions .............................................................. 118 ......3.3 Infrastructure ............................................................ 88 ......3.5 Macroeconomic environment ................................... 21 ......5.9 Health and primary education ................................... 94 ......5.4 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................62 ......4.2 Market size Higher education and training ................................... 83 ......4.1 Goods market efficiency .......................................... 53 ......4.5 Labor market efficiency ............................................ 51 ......4.3 Financial market development .................................. 40 ......4.5 Technological readiness ............................................ 92 ......3.3 Market size ............................................................... 43 ......4.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........99 ......3.3 Business sophistication ........................................... 72 ......3.9 Innovation ............................................................... 117 ......2.8 Peru Latin America and the Caribbean The most problematic factors for doing business Inefficient government bureaucracy ...................................21.8 Corruption .........................................................................15.1 Restrictive labor regulations ...............................................12.2 Inadequate supply of infrastructure ....................................10.0 Inadequately educated workforce ........................................8.0 Crime and theft ...................................................................7.2 Tax regulations ....................................................................7.2 Policy instability ...................................................................4.3 Tax rates..............................................................................3.9 Insufficient capacity to innovate ...........................................2.8 Access to financing .............................................................2.7 Poor work ethic in national labor force ................................1.7 Government instability/coups ..............................................1.1 Poor public health ...............................................................0.9 Foreign currency regulations ................................................0.6 Inflation ................................................................................0.5 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 306 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Peru The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.5 ..........106 Intellectual property protection ............................... 2.8 ..........119 Diversion of public funds ........................................ 2.7 ..........104 Public trust in politicians ......................................... 1.9 ..........131 Irregular payments and bribes ................................ 3.8 ............81 Judicial independence............................................ 2.5 ..........124 Favoritism in decisions of government officials ....... 2.7 ..........100 Wastefulness of government spending ................... 2.4 ..........119 Burden of government regulation ........................... 2.7 ..........127 Efficiency of legal framework in settling disputes .... 3.1 ..........112 Efficiency of legal framework in challenging regs. ... 2.8 ..........109 Transparency of government policymaking............. 3.7 ............92 Business costs of terrorism .................................... 4.0 ..........124 Business costs of crime and violence..................... 3.0 ..........127 Organized crime ..................................................... 3.1 ..........135 Reliability of police services .................................... 2.6 ..........137 Ethical behavior of firms ......................................... 3.5 ..........115 Strength of auditing and reporting standards ......... 5.0 ............51 Efficacy of corporate boards .................................. 5.1 ............31 Protection of minority shareholders’ interests ......... 4.3 ............64 Strength of investor protection, 0–10 (best)* .......... 7.0 ............16 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.5 ..........105 Quality of roads ...................................................... 3.2 ..........102 Quality of railroad infrastructure .............................. 1.9 ............90 Quality of port infrastructure ................................... 3.7 ............87 Quality of air transport infrastructure....................... 4.0 ............89 Available airline seat km/week, millions* ............. 498.1 ............43 Quality of electricity supply ..................................... 4.9 ............71 Mobile telephone subscriptions/100 pop.* ........... 98.1 ............97 Fixed telephone lines/100 pop.* ........................... 11.3 ............84 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.5 ............17 Gross national savings, % GDP* .......................... 22.7 ............52 Inflation, annual % change* .................................... 2.8 ..............1 General government debt, % GDP* ..................... 19.6 ............19 Country credit rating, 0–100 (best)* ...................... 64.9 ............41 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................. 190.1 ............37 Business impact of malaria .................................... 5.8 ............15 Tuberculosis cases/100,000 pop.* ....................... 95.0 ............92 Business impact of tuberculosis ............................. 5.0 ............94 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 5.4 ............76 Infant mortality, deaths/1,000 live births* .............. 14.1 ............72 Life expectancy, years*......................................... 74.5 ............64 Quality of primary education ................................... 2.3 ..........136 Primary education enrollment, net %* .................. 93.7 ............73 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 89.8 ............70 Tertiary education enrollment, gross %*................ 42.6 ............63 Quality of the education system ............................. 2.5 ..........134 Quality of math and science education .................. 2.3 ..........139 Quality of management schools ............................. 4.2 ............77 Internet access in schools ...................................... 3.7 ............94 Availability of research and training services ........... 3.9 ............87 Extent of staff training ............................................ 3.8 ............93 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 25.0 ..........101 Agricultural policy costs.......................................... 3.8 ............72 Prevalence of trade barriers ................................... 4.2 ............95 Trade tariffs, % duty* .............................................. 1.8 ............36 Prevalence of foreign ownership............................. 5.0 ............45 Business impact of rules on FDI ............................. 4.7 ............40 Burden of customs procedures .............................. 4.0 ............73 Imports as a percentage of GDP* ........................ 24.8 ..........131 Degree of customer orientation .............................. 4.8 ............51 Buyer sophistication ............................................... 3.8 ............40 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............64 Flexibility of wage determination ............................. 5.4 ............39 Hiring and firing practices ....................................... 2.9 ..........130 Redundancy costs, weeks of salary* .................... 11.4 ............49 Effect of taxation on incentives to work .................. 3.2 ..........104 Pay and productivity............................................... 3.9 ............75 Reliance on professional management ................... 4.5 ............54 Country capacity to retain talent............................. 3.9 ............41 Country capacity to attract talent ........................... 3.8 ............45 Women in labor force, ratio to men* ..................... 0.80 ............75 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.7 ............55 Affordability of financial services ............................. 4.1 ............70 Financing through local equity market .................... 3.5 ............62 Ease of access to loans ......................................... 3.2 ............42 Venture capital availability ....................................... 2.9 ............54 Soundness of banks .............................................. 5.8 ............29 Regulation of securities exchanges ........................ 4.8 ............36 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.6 ............80 Firm-level technology absorption ............................ 4.5 ............78 FDI and technology transfer ................................... 5.1 ............27 Individuals using Internet, %* ............................... 39.2 ............84 Fixed broadband Internet subscriptions/100 pop.* ... 5.2 ............79 Int’l Internet bandwidth, kb/s per user* ................ 18.1 ............85 Mobile broadband subscriptions/100 pop.*............ 2.9 ..........116 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.4 ............40 Foreign market size index, 1–7 (best)* .................... 4.8 ............58 GDP (PPP$ billions)* .......................................... 344.2 ............40 Exports as a percentage of GDP* ........................ 23.0 ..........123 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............51 Local supplier quality.............................................. 4.6 ............57 State of cluster development.................................. 3.3 ..........108 Nature of competitive advantage ............................ 3.1 ..........106 Value chain breadth................................................ 3.6 ............86 Control of international distribution ......................... 4.0 ............69 Production process sophistication.......................... 3.7 ............79 Extent of marketing ................................................ 4.3 ............62 Willingness to delegate authority ............................ 3.8 ............66 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.4 ..........100 Quality of scientific research institutions ................. 2.9 ..........117 Company spending on R&D................................... 2.6 ..........119 University-industry collaboration in R&D ................. 3.1 ..........109 Gov’t procurement of advanced tech products ...... 3.0 ..........105 Availability of scientists and engineers .................... 3.3 ..........113 PCT patents, applications/million pop.* .................. 0.3 ............89 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.1 ............70 Extent of market dominance .................................. 3.6 ............82 Effectiveness of anti-monopoly policy ..................... 4.2 ............63 Effect of taxation on incentives to invest................. 3.5 ............91 Total tax rate, % profits* ....................................... 36.4 ............66 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 307 2.1: Country/Economy Profiles Philippines Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 97.5 GDP (US$ billions) ........................................ 272.0 GDP per capita (US$) ................................... 2,790 GDP (PPP) as share (%) of world total ............ 0.53 Philippines 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 1994 Emerging and Developing Asia 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 52 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 59 ......4.3 GCI 2012–2013 (out of 144) ..................................... 65 ......4.2 GCI 2011–2012 (out of 142) ..................................... 75 ......4.1 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (44.2%) .......................................66 ......4.6 7 Innovation Institutions ................................................................ 67 ......3.9 Infrastructure ............................................................ 91 ......3.5 Macroeconomic environment ................................... 26 ......5.8 Health and primary education ................................... 92 ......5.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (46.9%) .....................................58 ......4.3 Market size Higher education and training ................................... 64 ......4.4 Goods market efficiency .......................................... 70 ......4.3 Labor market efficiency ............................................ 91 ......4.0 Financial market development .................................. 49 ......4.4 Technological readiness ............................................ 69 ......3.8 Market size ............................................................... 35 ......4.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (9.0%) .............48 ......3.9 Business sophistication ........................................... 46 ......4.3 Innovation ................................................................. 52 ......3.5 Philippines Emerging and Developing Asia The most problematic factors for doing business Corruption .........................................................................17.6 Inadequate supply of infrastructure ....................................15.9 Tax regulations ..................................................................13.3 Inefficient government bureaucracy ...................................12.6 Tax rates..............................................................................9.7 Policy instability ...................................................................5.4 Restrictive labor regulations .................................................5.3 Crime and theft ...................................................................4.1 Inflation ................................................................................3.8 Inadequately educated workforce ........................................2.3 Poor work ethic in national labor force ................................2.1 Insufficient capacity to innovate ...........................................2.1 Foreign currency regulations ................................................1.9 Government instability/coups ..............................................1.9 Access to financing .............................................................1.6 Poor public health ...............................................................0.5 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 308 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Philippines The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.3 ............61 Intellectual property protection ............................... 3.7 ............66 Diversion of public funds ........................................ 3.1 ............78 Public trust in politicians ......................................... 2.6 ............89 Irregular payments and bribes ................................ 3.6 ............86 Judicial independence............................................ 3.6 ............77 Favoritism in decisions of government officials ....... 3.1 ............66 Wastefulness of government spending ................... 3.3 ............60 Burden of government regulation ........................... 3.4 ............73 Efficiency of legal framework in settling disputes .... 3.7 ............68 Efficiency of legal framework in challenging regs. ... 3.5 ............56 Transparency of government policymaking............. 3.8 ............85 Business costs of terrorism .................................... 4.6 ..........110 Business costs of crime and violence..................... 4.3 ............77 Organized crime ..................................................... 4.7 ............69 Reliability of police services .................................... 3.6 ..........101 Ethical behavior of firms ......................................... 4.3 ............49 Strength of auditing and reporting standards ......... 5.1 ............48 Efficacy of corporate boards .................................. 5.1 ............29 Protection of minority shareholders’ interests ......... 4.5 ............45 Strength of investor protection, 0–10 (best)* .......... 4.3 ..........105 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.7 ............95 Quality of roads ...................................................... 3.6 ............87 Quality of railroad infrastructure .............................. 2.3 ............80 Quality of port infrastructure ................................... 3.5 ..........101 Quality of air transport infrastructure....................... 3.6 ..........108 Available airline seat km/week, millions* .......... 1,171.2 ............25 Quality of electricity supply ..................................... 4.2 ............87 Mobile telephone subscriptions/100 pop.* ......... 104.5 ............86 Fixed telephone lines/100 pop.* ............................. 3.2 ..........113 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.1 ............25 Gross national savings, % GDP* .......................... 22.9 ............51 Inflation, annual % change* .................................... 2.9 ............57 General government debt, % GDP* ..................... 38.3 ............58 Country credit rating, 0–100 (best)* ...................... 55.5 ............59 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 23.8 ............23 Business impact of malaria .................................... 4.9 ............34 Tuberculosis cases/100,000 pop.* ..................... 265.0 ..........127 Business impact of tuberculosis ............................. 4.4 ..........114 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 4.9 ............94 Infant mortality, deaths/1,000 live births* .............. 23.5 ............95 Life expectancy, years*......................................... 68.6 ..........101 Quality of primary education ................................... 4.2 ............60 Primary education enrollment, net %* .................. 88.2 ..........105 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 84.6 ............89 Tertiary education enrollment, gross %*................ 28.2 ............82 Quality of the education system ............................. 4.5 ............29 Quality of math and science education .................. 4.1 ............70 Quality of management schools ............................. 4.7 ............40 Internet access in schools ...................................... 4.3 ............66 Availability of research and training services ........... 4.4 ............49 Extent of staff training ............................................ 4.6 ............27 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 15 ..........141 No. days to start a business* ............................... 35.0 ..........119 Agricultural policy costs.......................................... 3.7 ............86 Prevalence of trade barriers ................................... 4.5 ............51 Trade tariffs, % duty* .............................................. 3.6 ............48 Prevalence of foreign ownership............................. 4.9 ............51 Business impact of rules on FDI ............................. 4.5 ............65 Burden of customs procedures .............................. 3.5 ............99 Imports as a percentage of GDP* ........................ 29.7 ..........119 Degree of customer orientation .............................. 5.2 ............25 Buyer sophistication ............................................... 3.7 ............46 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.9 ............29 Flexibility of wage determination ............................. 4.8 ............86 Hiring and firing practices ....................................... 3.4 ..........104 Redundancy costs, weeks of salary* .................... 27.4 ..........124 Effect of taxation on incentives to work .................. 3.9 ............47 Pay and productivity............................................... 4.5 ............27 Reliance on professional management ................... 5.0 ............29 Country capacity to retain talent............................. 3.5 ............60 Country capacity to attract talent ........................... 3.3 ............82 Women in labor force, ratio to men* ..................... 0.65 ..........106 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.0 ............42 Affordability of financial services ............................. 4.8 ............43 Financing through local equity market .................... 4.4 ............23 Ease of access to loans ......................................... 3.5 ............30 Venture capital availability ....................................... 3.3 ............31 Soundness of banks .............................................. 5.5 ............46 Regulation of securities exchanges ........................ 4.6 ............45 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.1 ............58 Firm-level technology absorption ............................ 5.1 ............41 FDI and technology transfer ................................... 5.0 ............31 Individuals using Internet, %* ............................... 37.0 ............91 Fixed broadband Internet subscriptions/100 pop.* ... 2.6 ............93 Int’l Internet bandwidth, kb/s per user* ................ 57.6 ............46 Mobile broadband subscriptions/100 pop.*.......... 20.3 ............79 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.5 ............30 Foreign market size index, 1–7 (best)* .................... 5.1 ............42 GDP (PPP$ billions)* .......................................... 456.4 ............31 Exports as a percentage of GDP* ........................ 28.0 ..........102 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............69 Local supplier quality.............................................. 4.4 ............65 State of cluster development.................................. 4.0 ............51 Nature of competitive advantage ............................ 3.4 ............77 Value chain breadth................................................ 4.1 ............44 Control of international distribution ......................... 4.4 ............43 Production process sophistication.......................... 4.3 ............44 Extent of marketing ................................................ 4.7 ............41 Willingness to delegate authority ............................ 4.7 ............24 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.5 ............30 Quality of scientific research institutions ................. 3.6 ............75 Company spending on R&D................................... 3.5 ............42 University-industry collaboration in R&D ................. 3.8 ............55 Gov’t procurement of advanced tech products ...... 3.7 ............53 Availability of scientists and engineers .................... 4.0 ............71 PCT patents, applications/million pop.* .................. 0.3 ............86 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.2 ............61 Extent of market dominance .................................. 3.5 ............85 Effectiveness of anti-monopoly policy ..................... 4.0 ............72 Effect of taxation on incentives to invest................. 3.9 ............52 Total tax rate, % profits* ....................................... 44.5 ..........100 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 309 2.1: Country/Economy Profiles Poland Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 38.5 GDP (US$ billions) ........................................ 516.1 GDP per capita (US$) ................................. 13,394 GDP (PPP) as share (%) of world total ............ 0.94 Poland 25,000 Emerging and Developing Europe 20,000 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 43 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 42 ......4.5 GCI 2012–2013 (out of 144) ..................................... 41 ......4.5 GCI 2011–2012 (out of 142) ..................................... 41 ......4.5 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (29.0%) .......................................55 ......4.8 7 Innovation Institutions ................................................................ 56 ......4.0 Infrastructure ............................................................ 63 ......4.2 Macroeconomic environment ................................... 63 ......4.8 Health and primary education ................................... 39 ......6.2 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................32 ......4.6 Market size Higher education and training ................................... 34 ......5.0 Goods market efficiency .......................................... 51 ......4.5 Labor market efficiency ............................................ 79 ......4.1 Financial market development .................................. 35 ......4.6 Technological readiness ............................................ 48 ......4.5 Market size ............................................................... 19 ......5.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (21.0%) ...........63 ......3.7 Business sophistication ........................................... 63 ......4.1 Innovation ................................................................. 72 ......3.3 Poland Emerging and Developing Europe The most problematic factors for doing business Tax regulations ..................................................................23.2 Restrictive labor regulations ...............................................15.5 Inefficient government bureaucracy ...................................14.6 Tax rates............................................................................11.2 Access to financing .............................................................9.6 Inadequate supply of infrastructure ......................................5.6 Insufficient capacity to innovate ...........................................4.3 Corruption ...........................................................................3.4 Policy instability ...................................................................3.3 Inadequately educated workforce ........................................2.7 Poor work ethic in national labor force ................................2.3 Poor public health ...............................................................2.0 Government instability/coups ..............................................0.8 Inflation ................................................................................0.7 Foreign currency regulations ................................................0.6 Crime and theft ...................................................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 310 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Poland The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.3 ............55 Intellectual property protection ............................... 3.7 ............63 Diversion of public funds ........................................ 3.8 ............50 Public trust in politicians ......................................... 2.4 ..........101 Irregular payments and bribes ................................ 4.7 ............43 Judicial independence............................................ 4.1 ............54 Favoritism in decisions of government officials ....... 3.1 ............67 Wastefulness of government spending ................... 2.9 ............85 Burden of government regulation ........................... 2.9 ..........117 Efficiency of legal framework in settling disputes .... 2.9 ..........118 Efficiency of legal framework in challenging regs. ... 2.8 ..........110 Transparency of government policymaking............. 3.6 ..........110 Business costs of terrorism .................................... 6.0 ............27 Business costs of crime and violence..................... 5.4 ............27 Organized crime ..................................................... 5.6 ............35 Reliability of police services .................................... 4.1 ............76 Ethical behavior of firms ......................................... 4.1 ............57 Strength of auditing and reporting standards ......... 4.9 ............58 Efficacy of corporate boards .................................. 4.3 ............87 Protection of minority shareholders’ interests ......... 4.0 ............81 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.0 ............79 Quality of roads ...................................................... 3.5 ............89 Quality of railroad infrastructure .............................. 2.9 ............55 Quality of port infrastructure ................................... 4.0 ............78 Quality of air transport infrastructure....................... 4.0 ............86 Available airline seat km/week, millions* ............. 344.3 ............51 Quality of electricity supply ..................................... 5.5 ............46 Mobile telephone subscriptions/100 pop.* ......... 150.0 ............23 Fixed telephone lines/100 pop.* ........................... 13.9 ............78 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.5 ..........100 Gross national savings, % GDP* .......................... 16.9 ............91 Inflation, annual % change* .................................... 0.9 ..............1 General government debt, % GDP* ..................... 57.5 ............96 Country credit rating, 0–100 (best)* ...................... 73.2 ............31 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 21.0 ............46 Business impact of tuberculosis ............................. 6.1 ............47 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.1 ............39 Infant mortality, deaths/1,000 live births* ................ 4.3 ............31 Life expectancy, years*......................................... 76.8 ............44 Quality of primary education ................................... 4.3 ............53 Primary education enrollment, net %* .................. 96.6 ............49 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 97.7 ............45 Tertiary education enrollment, gross %*................ 73.2 ............23 Quality of the education system ............................. 3.6 ............79 Quality of math and science education .................. 4.4 ............50 Quality of management schools ............................. 4.0 ............84 Internet access in schools ...................................... 4.9 ............50 Availability of research and training services ........... 4.8 ............31 Extent of staff training ............................................ 4.0 ............72 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ............................... 30.0 ..........111 Agricultural policy costs.......................................... 3.6 ............90 Prevalence of trade barriers ................................... 4.4 ............66 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.9 ............54 Business impact of rules on FDI ............................. 4.4 ............76 Burden of customs procedures .............................. 4.3 ............58 Imports as a percentage of GDP* ........................ 45.9 ............74 Degree of customer orientation .............................. 4.9 ............49 Buyer sophistication ............................................... 3.2 ............93 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ..........100 Flexibility of wage determination ............................. 5.6 ............29 Hiring and firing practices ....................................... 3.4 ..........112 Redundancy costs, weeks of salary* .................... 18.8 ............89 Effect of taxation on incentives to work .................. 3.4 ............88 Pay and productivity............................................... 4.1 ............53 Reliance on professional management ................... 4.2 ............71 Country capacity to retain talent............................. 2.7 ..........117 Country capacity to attract talent ........................... 2.5 ..........124 Women in labor force, ratio to men* ..................... 0.82 ............69 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.9 ............44 Affordability of financial services ............................. 4.8 ............44 Financing through local equity market .................... 3.6 ............59 Ease of access to loans ......................................... 2.6 ............89 Venture capital availability ....................................... 2.3 ............99 Soundness of banks .............................................. 5.4 ............51 Regulation of securities exchanges ........................ 4.9 ............35 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.5 ............90 Firm-level technology absorption ............................ 4.2 ..........101 FDI and technology transfer ................................... 4.6 ............68 Individuals using Internet, %* ............................... 62.8 ............47 Fixed broadband Internet subscriptions/100 pop.* . 15.6 ............46 Int’l Internet bandwidth, kb/s per user* ................ 73.0 ............37 Mobile broadband subscriptions/100 pop.*.......... 58.5 ............30 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.9 ............20 Foreign market size index, 1–7 (best)* .................... 5.7 ............22 GDP (PPP$ billions)* .......................................... 817.5 ............21 Exports as a percentage of GDP* ........................ 47.0 ............51 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.0 ............31 Local supplier quality.............................................. 4.8 ............44 State of cluster development.................................. 3.5 ............92 Nature of competitive advantage ............................ 3.1 ..........102 Value chain breadth................................................ 4.0 ............53 Control of international distribution ......................... 3.6 ..........109 Production process sophistication.......................... 4.1 ............57 Extent of marketing ................................................ 4.5 ............50 Willingness to delegate authority ............................ 3.8 ............62 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.8 ............67 Quality of scientific research institutions ................. 3.9 ............63 Company spending on R&D................................... 2.8 ............98 University-industry collaboration in R&D ................. 3.5 ............73 Gov’t procurement of advanced tech products ...... 3.2 ............89 Availability of scientists and engineers .................... 4.2 ............62 PCT patents, applications/million pop.* .................. 7.1 ............40 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.3 ............51 Extent of market dominance .................................. 4.8 ............19 Effectiveness of anti-monopoly policy ..................... 4.2 ............56 Effect of taxation on incentives to invest................. 3.3 ..........102 Total tax rate, % profits* ....................................... 41.6 ............87 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 311 2.1: Country/Economy Profiles Portugal Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 10.6 GDP (US$ billions) ........................................ 220.0 GDP per capita (US$) ................................. 20,728 GDP (PPP) as share (%) of world total ............ 0.28 Portugal 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 36 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 51 ......4.4 GCI 2012–2013 (out of 144) ..................................... 49 ......4.4 GCI 2011–2012 (out of 142) ..................................... 45 ......4.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................41 ......5.0 7 Innovation Institutions ................................................................ 41 ......4.4 Infrastructure ............................................................ 17 ......5.7 Macroeconomic environment ................................. 128 ......3.5 Health and primary education ................................... 24 ......6.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................37 ......4.6 Market size Higher education and training ................................... 24 ......5.4 Goods market efficiency .......................................... 44 ......4.6 Labor market efficiency ............................................ 83 ......4.1 Financial market development ................................ 104 ......3.6 Technological readiness ............................................ 26 ......5.4 Market size ............................................................... 51 ......4.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........31 ......4.2 Business sophistication ........................................... 51 ......4.3 Innovation ................................................................. 28 ......4.1 Portugal Advanced economies The most problematic factors for doing business Inefficient government bureaucracy ...................................19.2 Tax rates............................................................................16.3 Access to financing ...........................................................16.2 Policy instability .................................................................14.1 Restrictive labor regulations ...............................................11.5 Tax regulations ..................................................................10.1 Insufficient capacity to innovate ...........................................4.7 Inadequately educated workforce ........................................3.4 Corruption ...........................................................................2.0 Poor work ethic in national labor force ................................1.1 Government instability/coups ..............................................0.6 Inadequate supply of infrastructure ......................................0.5 Foreign currency regulations ................................................0.2 Poor public health ...............................................................0.1 Inflation ................................................................................0.0 Crime and theft ...................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 312 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Portugal The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.8 ............42 Intellectual property protection ............................... 4.6 ............35 Diversion of public funds ........................................ 4.0 ............41 Public trust in politicians ......................................... 3.0 ............67 Irregular payments and bribes ................................ 5.2 ............32 Judicial independence............................................ 4.5 ............44 Favoritism in decisions of government officials ....... 3.3 ............54 Wastefulness of government spending ................... 2.8 ............88 Burden of government regulation ........................... 3.0 ..........108 Efficiency of legal framework in settling disputes .... 3.1 ..........111 Efficiency of legal framework in challenging regs. ... 3.3 ............77 Transparency of government policymaking............. 3.9 ............81 Business costs of terrorism .................................... 6.5 ..............7 Business costs of crime and violence..................... 6.0 ............10 Organized crime ..................................................... 6.3 ............13 Reliability of police services .................................... 5.3 ............29 Ethical behavior of firms ......................................... 4.5 ............42 Strength of auditing and reporting standards ......... 4.9 ............53 Efficacy of corporate boards .................................. 4.5 ............76 Protection of minority shareholders’ interests ......... 4.4 ............47 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.0 ............12 Quality of roads ...................................................... 6.3 ..............2 Quality of railroad infrastructure .............................. 4.4 ............23 Quality of port infrastructure ................................... 5.4 ............23 Quality of air transport infrastructure....................... 5.7 ............20 Available airline seat km/week, millions* ............. 802.9 ............31 Quality of electricity supply ..................................... 6.4 ............18 Mobile telephone subscriptions/100 pop.* ......... 113.0 ............69 Fixed telephone lines/100 pop.* ........................... 42.7 ............18 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.9 ..........107 Gross national savings, % GDP* .......................... 16.0 ............97 Inflation, annual % change* .................................... 0.4 ............59 General government debt, % GDP* ................... 128.8 ..........138 Country credit rating, 0–100 (best)* ...................... 49.1 ............71 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 26.0 ............56 Business impact of tuberculosis ............................. 6.5 ............28 HIV prevalence, % adult pop.* ............................... 0.7 ............97 Business impact of HIV/AIDS ................................. 6.2 ............32 Infant mortality, deaths/1,000 live births* ................ 2.9 ............11 Life expectancy, years*......................................... 80.4 ............26 Quality of primary education ................................... 4.8 ............33 Primary education enrollment, net %* .................. 98.6 ............17 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 112.9 ..............8 Tertiary education enrollment, gross %*................ 68.9 ............29 Quality of the education system ............................. 4.3 ............40 Quality of math and science education .................. 4.5 ............43 Quality of management schools ............................. 5.9 ..............4 Internet access in schools ...................................... 5.7 ............28 Availability of research and training services ........... 5.1 ............24 Extent of staff training ............................................ 4.2 ............54 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ................................. 2.5 ..............5 Agricultural policy costs.......................................... 3.7 ............85 Prevalence of trade barriers ................................... 5.2 ..............7 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.4 ............82 Business impact of rules on FDI ............................. 4.3 ............79 Burden of customs procedures .............................. 5.1 ............26 Imports as a percentage of GDP* ........................ 40.6 ............86 Degree of customer orientation .............................. 5.1 ............33 Buyer sophistication ............................................... 3.5 ............64 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............65 Flexibility of wage determination ............................. 4.7 ............93 Hiring and firing practices ....................................... 3.3 ..........113 Redundancy costs, weeks of salary* .................... 23.1 ..........108 Effect of taxation on incentives to work .................. 2.8 ..........131 Pay and productivity............................................... 3.4 ..........113 Reliance on professional management ................... 4.2 ............73 Country capacity to retain talent............................. 3.1 ............91 Country capacity to attract talent ........................... 3.4 ............72 Women in labor force, ratio to men* ..................... 0.90 ............32 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.9 ............43 Affordability of financial services ............................. 4.2 ............61 Financing through local equity market .................... 3.0 ............93 Ease of access to loans ......................................... 2.4 ..........108 Venture capital availability ....................................... 2.5 ............84 Soundness of banks .............................................. 4.2 ..........111 Regulation of securities exchanges ........................ 4.6 ............46 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.3 ............11 Firm-level technology absorption ............................ 5.6 ............22 FDI and technology transfer ................................... 5.2 ............14 Individuals using Internet, %* ............................... 62.1 ............48 Fixed broadband Internet subscriptions/100 pop.* . 23.8 ............32 Int’l Internet bandwidth, kb/s per user* .............. 181.1 ............14 Mobile broadband subscriptions/100 pop.*.......... 36.7 ............58 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.1 ............50 Foreign market size index, 1–7 (best)* .................... 5.0 ............48 GDP (PPP$ billions)* .......................................... 244.8 ............52 Exports as a percentage of GDP* ........................ 40.9 ............66 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.0 ............27 Local supplier quality.............................................. 5.0 ............30 State of cluster development.................................. 4.2 ............42 Nature of competitive advantage ............................ 3.8 ............53 Value chain breadth................................................ 4.0 ............50 Control of international distribution ......................... 4.0 ............66 Production process sophistication.......................... 4.4 ............40 Extent of marketing ................................................ 4.5 ............49 Willingness to delegate authority ............................ 3.6 ............80 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.3 ............37 Quality of scientific research institutions ................. 5.4 ............18 Company spending on R&D................................... 3.6 ............38 University-industry collaboration in R&D ................. 4.7 ............23 Gov’t procurement of advanced tech products ...... 3.8 ............42 Availability of scientists and engineers .................... 5.2 ..............8 PCT patents, applications/million pop.* ................ 13.0 ............31 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.1 ............63 Extent of market dominance .................................. 3.9 ............58 Effectiveness of anti-monopoly policy ..................... 4.3 ............48 Effect of taxation on incentives to invest................. 2.9 ..........129 Total tax rate, % profits* ....................................... 42.3 ............89 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 313 2.1: Country/Economy Profiles Puerto Rico Key indicators, 2013 Population (millions) .......................................... 3.6 GDP (US$ billions) ........................................ 103.1 GDP per capita (US$) ................................. 28,325 GDP (PPP) as share (%) of world total .............. n/a Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 32 ..... 4.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 30 ......4.7 GCI 2012–2013 (out of 144) ..................................... 31 ......4.7 GCI 2011–2012 (out of 142) ..................................... 35 ......4.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................68 ......4.6 7 Innovation Institutions ................................................................ 34 ......4.6 Infrastructure ............................................................ 58 ......4.3 Macroeconomic environment ................................... 99 ......4.2 Health and primary education ................................. 103 ......5.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................28 ......4.7 Market size Higher education and training ................................... 27 ......5.3 Goods market efficiency .......................................... 20 ......5.0 Labor market efficiency ............................................ 46 ......4.4 Financial market development .................................. 21 ......4.8 Technological readiness ............................................ 37 ......4.9 Market size ............................................................... 60 ......4.0 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........27 ......4.5 Business sophistication ........................................... 18 ......5.1 Innovation ................................................................. 29 ......4.0 Puerto Rico Advanced economies The most problematic factors for doing business Inefficient government bureaucracy ...................................26.2 Restrictive labor regulations ...............................................15.0 Tax regulations ..................................................................11.4 Tax rates............................................................................11.1 Access to financing .............................................................9.5 Corruption ...........................................................................6.0 Policy instability ...................................................................4.6 Inadequate supply of infrastructure ......................................3.1 Insufficient capacity to innovate ...........................................3.1 Poor work ethic in national labor force ................................3.1 Inflation ................................................................................2.6 Crime and theft ...................................................................2.1 Government instability/coups ..............................................1.7 Inadequately educated workforce ........................................0.4 Foreign currency regulations ................................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 314 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Puerto Rico The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.9 ............12 Intellectual property protection ............................... 5.9 ..............9 Diversion of public funds ........................................ 3.9 ............44 Public trust in politicians ......................................... 3.2 ............57 Irregular payments and bribes ................................ 4.7 ............44 Judicial independence............................................ 4.5 ............43 Favoritism in decisions of government officials ....... 2.9 ............83 Wastefulness of government spending ................... 2.5 ..........112 Burden of government regulation ........................... 2.4 ..........138 Efficiency of legal framework in settling disputes .... 5.1 ............19 Efficiency of legal framework in challenging regs. ... 4.4 ............20 Transparency of government policymaking............. 4.0 ............66 Business costs of terrorism .................................... 6.0 ............31 Business costs of crime and violence..................... 3.3 ..........122 Organized crime ..................................................... 5.2 ............54 Reliability of police services .................................... 4.8 ............43 Ethical behavior of firms ......................................... 4.8 ............34 Strength of auditing and reporting standards ......... 6.1 ..............9 Efficacy of corporate boards .................................. 5.5 ............14 Protection of minority shareholders’ interests ......... 6.1 ..............3 Strength of investor protection, 0–10 (best)* .......... 7.0 ............16 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.9 ............45 Quality of roads ...................................................... 5.2 ............29 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 5.4 ............22 Quality of air transport infrastructure....................... 5.6 ............25 Available airline seat km/week, millions* ............. 207.1 ............62 Quality of electricity supply ..................................... 5.1 ............59 Mobile telephone subscriptions/100 pop.* ........... 83.6 ..........113 Fixed telephone lines/100 pop.* ........................... 17.9 ............67 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.2 ..........109 Gross national savings, % GDP* .......................... 14.1 ..........114 Inflation, annual % change* .................................... 1.1 ..............1 General government debt, % GDP* ..................... 63.0 ..........104 Country credit rating, 0–100 (best)* ........................ n/a ...........n/a 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 2.2 ..............3 Business impact of tuberculosis ............................. 6.8 ............10 HIV prevalence, % adult pop.* ............................... 0.6 ............92 Business impact of HIV/AIDS ................................. 6.1 ............40 Infant mortality, deaths/1,000 live births* ................ 9.5 ............55 Life expectancy, years*......................................... 78.5 ............35 Quality of primary education ................................... 3.7 ............80 Primary education enrollment, net %* .................. 80.4 ..........127 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 78.3 ............95 Tertiary education enrollment, gross %*................ 86.5 ..............5 Quality of the education system ............................. 3.5 ............85 Quality of math and science education .................. 3.8 ............91 Quality of management schools ............................. 4.6 ............45 Internet access in schools ...................................... 4.8 ............54 Availability of research and training services ........... 5.6 ............10 Extent of staff training ............................................ 4.9 ............16 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 3.4 ..........103 Prevalence of trade barriers ................................... 4.7 ............24 Trade tariffs, % duty* .............................................. 1.3 ............33 Prevalence of foreign ownership............................. 5.6 ............12 Business impact of rules on FDI ............................. 5.0 ............23 Burden of customs procedures .............................. 5.1 ............25 Imports as a percentage of GDP* ........................ 84.6 ............18 Degree of customer orientation .............................. 5.2 ............28 Buyer sophistication ............................................... 4.0 ............26 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.9 ............30 Flexibility of wage determination ............................. 5.7 ............19 Hiring and firing practices ....................................... 3.6 ............94 Redundancy costs, weeks of salary* ...................... 0.0 ..............1 Effect of taxation on incentives to work .................. 3.1 ..........112 Pay and productivity............................................... 4.6 ............22 Reliance on professional management ................... 5.3 ............23 Country capacity to retain talent............................. 2.9 ..........106 Country capacity to attract talent ........................... 3.3 ............81 Women in labor force, ratio to men* ..................... 0.69 ..........100 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.5 ............23 Affordability of financial services ............................. 5.3 ............22 Financing through local equity market .................... 3.5 ............70 Ease of access to loans ......................................... 2.8 ............73 Venture capital availability ....................................... 2.9 ............51 Soundness of banks .............................................. 4.9 ............64 Regulation of securities exchanges ........................ 5.8 ..............8 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.1 ............20 Firm-level technology absorption ............................ 5.6 ............18 FDI and technology transfer ................................... 5.2 ............16 Individuals using Internet, %* ............................... 73.9 ............32 Fixed broadband Internet subscriptions/100 pop.* . 16.3 ............44 Int’l Internet bandwidth, kb/s per user* .............. 136.9 ............18 Mobile broadband subscriptions/100 pop.*.......... 15.8 ............86 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.7 ............62 Foreign market size index, 1–7 (best)* .................... 4.8 ............55 GDP (PPP$ billions)* .......................................... 111.9 ............66 Exports as a percentage of GDP* ........................ 72.6 ............25 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............45 Local supplier quality.............................................. 5.4 ............19 State of cluster development.................................. 4.6 ............23 Nature of competitive advantage ............................ 5.2 ............21 Value chain breadth................................................ 4.7 ............24 Control of international distribution ......................... 4.3 ............46 Production process sophistication.......................... 5.9 ............10 Extent of marketing ................................................ 6.0 ..............3 Willingness to delegate authority ............................ 4.8 ............20 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.9 ............20 Quality of scientific research institutions ................. 4.7 ............35 Company spending on R&D................................... 3.5 ............47 University-industry collaboration in R&D ................. 4.2 ............36 Gov’t procurement of advanced tech products ...... 3.1 ..........100 Availability of scientists and engineers .................... 5.3 ..............6 PCT patents, applications/million pop.* .................. 2.1 ............57 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 6.0 ..............7 Extent of market dominance .................................. 4.9 ............16 Effectiveness of anti-monopoly policy ..................... 5.3 ..............7 Effect of taxation on incentives to invest................. 3.7 ............72 Total tax rate, % profits* ....................................... 50.7 ..........116 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 315 2.1: Country/Economy Profiles Qatar Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.0 GDP (US$ billions) ........................................ 202.6 GDP per capita (US$) ............................... 100,260 GDP (PPP) as share (%) of world total ............ 0.23 Qatar 120,000 Middle East, North Africa, and Pakistan 100,000 80,000 60,000 40,000 20,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 16 ..... 5.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 13 ......5.2 GCI 2012–2013 (out of 144) ..................................... 11 ......5.4 GCI 2011–2012 (out of 142) ..................................... 14 ......5.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .........................................5 ......6.1 Innovation Institutions .................................................................. 4 ......5.9 Infrastructure ............................................................ 24 ......5.5 Macroeconomic environment ..................................... 2 ......6.7 Health and primary education ................................... 28 ......6.3 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................20 ......5.0 Market size Higher education and training ................................... 38 ......5.0 Goods market efficiency ............................................ 4 ......5.5 Labor market efficiency ............................................ 10 ......5.0 Financial market development .................................. 13 ......5.2 Technological readiness ............................................ 31 ......5.2 Market size ............................................................... 59 ......4.0 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........15 ......5.1 Business sophistication ........................................... 12 ......5.3 Innovation ................................................................. 14 ......4.9 Qatar Middle East, North Africa, and Pakistan The most problematic factors for doing business Inadequately educated workforce ......................................15.3 Restrictive labor regulations ...............................................14.6 Access to financing ...........................................................12.8 Inadequate supply of infrastructure ....................................11.0 Inflation ..............................................................................10.0 Insufficient capacity to innovate ...........................................8.1 Inefficient government bureaucracy .....................................7.1 Poor work ethic in national labor force ................................5.6 Tax rates..............................................................................4.1 Foreign currency regulations ................................................2.3 Tax regulations ....................................................................2.3 Poor public health ...............................................................2.0 Corruption ...........................................................................1.6 Government instability/coups ..............................................1.2 Policy instability ...................................................................1.1 Crime and theft ...................................................................1.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 316 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Qatar The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.0 ..............7 Intellectual property protection ............................... 6.0 ..............5 Diversion of public funds ........................................ 6.2 ..............4 Public trust in politicians ......................................... 6.1 ..............2 Irregular payments and bribes ................................ 6.4 ..............5 Judicial independence............................................ 6.0 ............13 Favoritism in decisions of government officials ....... 5.6 ..............1 Wastefulness of government spending ................... 6.0 ..............1 Burden of government regulation ........................... 5.2 ..............1 Efficiency of legal framework in settling disputes .... 5.7 ..............6 Efficiency of legal framework in challenging regs. ... 5.3 ..............4 Transparency of government policymaking............. 5.7 ..............5 Business costs of terrorism .................................... 6.4 ..............9 Business costs of crime and violence..................... 6.5 ..............1 Organized crime ..................................................... 6.7 ..............2 Reliability of police services .................................... 6.3 ..............3 Ethical behavior of firms ......................................... 5.9 ..............9 Strength of auditing and reporting standards ......... 6.0 ............10 Efficacy of corporate boards .................................. 5.5 ............12 Protection of minority shareholders’ interests ......... 6.0 ..............5 Strength of investor protection, 0–10 (best)* .......... 4.3 ..........105 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.4 ............26 Quality of roads ...................................................... 5.0 ............34 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 5.4 ............24 Quality of air transport infrastructure....................... 6.0 ............12 Available airline seat km/week, millions* .......... 1,170.5 ............26 Quality of electricity supply ..................................... 6.5 ............15 Mobile telephone subscriptions/100 pop.* ......... 152.6 ............21 Fixed telephone lines/100 pop.* ........................... 19.0 ............60 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. 11.1 ..............3 Gross national savings, % GDP* .......................... 58.4 ..............2 Inflation, annual % change* .................................... 3.1 ............63 General government debt, % GDP* ..................... 34.2 ............50 Country credit rating, 0–100 (best)* ...................... 79.1 ............23 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 41.0 ............66 Business impact of tuberculosis ............................. 6.5 ............27 HIV prevalence, % adult pop.* ............................. <0.1 ..............1 Business impact of HIV/AIDS ................................. 6.5 ............18 Infant mortality, deaths/1,000 live births* ................ 6.3 ............41 Life expectancy, years*......................................... 78.5 ............36 Quality of primary education ................................... 5.6 ..............9 Primary education enrollment, net %* .................. 92.4 ............82 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 111.6 ..............9 Tertiary education enrollment, gross %*................ 12.1 ..........107 Quality of the education system ............................. 5.8 ..............3 Quality of math and science education .................. 5.5 ..............6 Quality of management schools ............................. 5.6 ............10 Internet access in schools ...................................... 5.9 ............25 Availability of research and training services ........... 5.3 ............19 Extent of staff training ............................................ 5.3 ..............6 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ................................. 8.5 ............48 Agricultural policy costs.......................................... 4.8 ..............6 Prevalence of trade barriers ................................... 4.6 ............40 Trade tariffs, % duty* .............................................. 4.2 ............59 Prevalence of foreign ownership............................. 4.8 ............59 Business impact of rules on FDI ............................. 5.5 ..............9 Burden of customs procedures .............................. 5.4 ............11 Imports as a percentage of GDP* ........................ 30.5 ..........117 Degree of customer orientation .............................. 5.8 ..............4 Buyer sophistication ............................................... 5.2 ..............2 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.7 ..............5 Flexibility of wage determination ............................. 6.0 ..............5 Hiring and firing practices ....................................... 5.3 ..............5 Redundancy costs, weeks of salary* .................... 23.2 ..........110 Effect of taxation on incentives to work .................. 6.3 ..............2 Pay and productivity............................................... 5.4 ..............3 Reliance on professional management ................... 5.6 ............16 Country capacity to retain talent............................. 5.8 ..............2 Country capacity to attract talent ........................... 5.9 ..............4 Women in labor force, ratio to men* ..................... 0.54 ..........122 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.8 ............13 Affordability of financial services ............................. 5.9 ..............6 Financing through local equity market .................... 5.2 ..............5 Ease of access to loans ......................................... 5.1 ..............1 Venture capital availability ....................................... 4.8 ..............1 Soundness of banks .............................................. 6.3 ..............9 Regulation of securities exchanges ........................ 5.9 ..............7 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.9 ............25 Firm-level technology absorption ............................ 5.8 ............12 FDI and technology transfer ................................... 5.6 ..............6 Individuals using Internet, %* ............................... 85.3 ............14 Fixed broadband Internet subscriptions/100 pop.* ... 9.9 ............65 Int’l Internet bandwidth, kb/s per user* ................ 48.7 ............55 Mobile broadband subscriptions/100 pop.*.......... 76.8 ............17 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.6 ............64 Foreign market size index, 1–7 (best)* .................... 5.2 ............40 GDP (PPP$ billions)* .......................................... 199.6 ............54 Exports as a percentage of GDP* ........................ 72.7 ............24 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.3 ............17 Local supplier quality.............................................. 5.4 ............20 State of cluster development.................................. 5.2 ............11 Nature of competitive advantage ............................ 4.9 ............23 Value chain breadth................................................ 5.2 ..............9 Control of international distribution ......................... 5.5 ..............2 Production process sophistication.......................... 5.4 ............19 Extent of marketing ................................................ 5.5 ............14 Willingness to delegate authority ............................ 5.3 ..............7 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.2 ............12 Quality of scientific research institutions ................. 5.4 ............16 Company spending on R&D................................... 5.0 ..............8 University-industry collaboration in R&D ................. 5.4 ..............8 Gov’t procurement of advanced tech products ...... 5.7 ..............1 Availability of scientists and engineers .................... 5.6 ..............2 PCT patents, applications/million pop.* .................. 6.4 ............46 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.7 ............18 Extent of market dominance .................................. 5.2 ..............9 Effectiveness of anti-monopoly policy ..................... 5.4 ..............3 Effect of taxation on incentives to invest................. 6.2 ..............3 Total tax rate, % profits* ....................................... 11.3 ..............3 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 317 2.1: Country/Economy Profiles Romania Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 21.3 GDP (US$ billions) ........................................ 189.7 GDP per capita (US$) ................................... 8,910 GDP (PPP) as share (%) of world total ............ 0.33 Romania 20,000 Emerging and Developing Europe 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 59 ..... 4.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 76 ......4.1 GCI 2012–2013 (out of 144) ..................................... 78 ......4.1 GCI 2011–2012 (out of 142) ..................................... 77 ......4.1 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................77 ......4.5 7 Innovation Institutions ................................................................ 88 ......3.6 Infrastructure ............................................................ 85 ......3.7 Macroeconomic environment ................................... 46 ......5.2 Health and primary education ................................... 88 ......5.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................50 ......4.3 Market size Higher education and training ................................... 58 ......4.6 Goods market efficiency .......................................... 89 ......4.2 Labor market efficiency ............................................ 90 ......4.0 Financial market development .................................. 64 ......4.1 Technological readiness ............................................ 47 ......4.5 Market size ............................................................... 45 ......4.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........78 ......3.5 Business sophistication ........................................... 90 ......3.8 Innovation ................................................................. 66 ......3.3 Romania Emerging and Developing Europe The most problematic factors for doing business Access to financing ...........................................................16.6 Tax rates............................................................................15.6 Inadequate supply of infrastructure ....................................12.8 Corruption .........................................................................11.0 Inefficient government bureaucracy .....................................9.9 Tax regulations ....................................................................9.9 Restrictive labor regulations .................................................4.9 Inflation ................................................................................4.7 Policy instability ...................................................................4.7 Government instability/coups ..............................................2.5 Foreign currency regulations ................................................2.4 Crime and theft ...................................................................2.0 Inadequately educated workforce ........................................1.6 Poor work ethic in national labor force ................................1.0 Insufficient capacity to innovate ...........................................0.5 Poor public health ...............................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 318 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Romania The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.0 ............79 Intellectual property protection ............................... 3.4 ............88 Diversion of public funds ........................................ 3.0 ............82 Public trust in politicians ......................................... 2.3 ..........109 Irregular payments and bribes ................................ 3.9 ............68 Judicial independence............................................ 3.5 ............84 Favoritism in decisions of government officials ....... 2.5 ..........114 Wastefulness of government spending ................... 2.5 ..........116 Burden of government regulation ........................... 3.2 ............94 Efficiency of legal framework in settling disputes .... 3.2 ..........106 Efficiency of legal framework in challenging regs. ... 3.1 ............93 Transparency of government policymaking............. 3.8 ............86 Business costs of terrorism .................................... 4.8 ............97 Business costs of crime and violence..................... 4.4 ............74 Organized crime ..................................................... 4.1 ..........105 Reliability of police services .................................... 4.2 ............65 Ethical behavior of firms ......................................... 3.5 ..........112 Strength of auditing and reporting standards ......... 4.3 ............93 Efficacy of corporate boards .................................. 4.1 ..........112 Protection of minority shareholders’ interests ......... 3.6 ............99 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.8 ............88 Quality of roads ...................................................... 2.8 ..........121 Quality of railroad infrastructure .............................. 2.9 ............59 Quality of port infrastructure ................................... 3.4 ..........104 Quality of air transport infrastructure....................... 3.6 ..........105 Available airline seat km/week, millions* ............. 190.4 ............68 Quality of electricity supply ..................................... 4.6 ............81 Mobile telephone subscriptions/100 pop.* ......... 105.6 ............85 Fixed telephone lines/100 pop.* ........................... 21.8 ............52 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.5 ............65 Gross national savings, % GDP* .......................... 22.1 ............56 Inflation, annual % change* .................................... 4.0 ............80 General government debt, % GDP* ..................... 39.3 ............59 Country credit rating, 0–100 (best)* ...................... 51.5 ............69 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 94.0 ............91 Business impact of tuberculosis ............................. 5.1 ............90 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 4.9 ............90 Infant mortality, deaths/1,000 live births* .............. 10.7 ............59 Life expectancy, years*......................................... 74.6 ............62 Quality of primary education ................................... 4.1 ............65 Primary education enrollment, net %* .................. 85.8 ..........114 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 95.0 ............57 Tertiary education enrollment, gross %*................ 51.6 ............53 Quality of the education system ............................. 3.8 ............61 Quality of math and science education .................. 4.7 ............31 Quality of management schools ............................. 4.2 ............74 Internet access in schools ...................................... 4.8 ............53 Availability of research and training services ........... 4.2 ............68 Extent of staff training ............................................ 3.6 ..........111 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 8.5 ............48 Agricultural policy costs.......................................... 3.8 ............69 Prevalence of trade barriers ................................... 4.0 ..........117 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.3 ............89 Business impact of rules on FDI ............................. 4.0 ..........105 Burden of customs procedures .............................. 3.7 ............86 Imports as a percentage of GDP* ........................ 44.0 ............77 Degree of customer orientation .............................. 4.4 ............84 Buyer sophistication ............................................... 3.0 ..........107 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.7 ..........125 Flexibility of wage determination ............................. 5.0 ............68 Hiring and firing practices ....................................... 4.1 ............57 Redundancy costs, weeks of salary* ...................... 4.0 ..............7 Effect of taxation on incentives to work .................. 2.5 ..........140 Pay and productivity............................................... 4.0 ............66 Reliance on professional management ................... 3.3 ..........126 Country capacity to retain talent............................. 2.5 ..........128 Country capacity to attract talent ........................... 2.6 ..........115 Women in labor force, ratio to men* ..................... 0.78 ............79 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............93 Affordability of financial services ............................. 4.2 ............66 Financing through local equity market .................... 3.2 ............83 Ease of access to loans ......................................... 2.9 ............59 Venture capital availability ....................................... 2.6 ............78 Soundness of banks .............................................. 4.5 ............91 Regulation of securities exchanges ........................ 3.6 ..........101 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.6 ............81 Firm-level technology absorption ............................ 4.4 ............81 FDI and technology transfer ................................... 4.8 ............49 Individuals using Internet, %* ............................... 49.8 ............67 Fixed broadband Internet subscriptions/100 pop.* . 17.3 ............40 Int’l Internet bandwidth, kb/s per user* .............. 136.6 ............19 Mobile broadband subscriptions/100 pop.*.......... 37.6 ............57 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.2 ............44 Foreign market size index, 1–7 (best)* .................... 5.1 ............43 GDP (PPP$ billions)* .......................................... 285.1 ............46 Exports as a percentage of GDP* ........................ 41.9 ............65 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.3 ............99 Local supplier quality.............................................. 4.1 ............90 State of cluster development.................................. 3.8 ............70 Nature of competitive advantage ............................ 3.3 ............83 Value chain breadth................................................ 3.6 ............87 Control of international distribution ......................... 3.8 ............97 Production process sophistication.......................... 3.7 ............82 Extent of marketing ................................................ 4.0 ............83 Willingness to delegate authority ............................ 3.6 ............82 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............68 Quality of scientific research institutions ................. 4.0 ............55 Company spending on R&D................................... 3.1 ............65 University-industry collaboration in R&D ................. 3.6 ............71 Gov’t procurement of advanced tech products ...... 3.4 ............75 Availability of scientists and engineers .................... 4.0 ............72 PCT patents, applications/million pop.* .................. 2.2 ............56 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.4 ..........120 Extent of market dominance .................................. 3.8 ............61 Effectiveness of anti-monopoly policy ..................... 3.8 ............89 Effect of taxation on incentives to invest................. 2.9 ..........128 Total tax rate, % profits* ....................................... 42.9 ............91 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 319 2.1: Country/Economy Profiles Russian Federation Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ...................................... 142.9 GDP (US$ billions) ..................................... 2,118.0 GDP per capita (US$) ................................. 14,819 GDP (PPP) as share (%) of world total ............ 2.94 Russian Federation 20,000 Commonwealth of Independent States 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 53 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 64 ......4.2 GCI 2012–2013 (out of 144) ..................................... 67 ......4.2 GCI 2011–2012 (out of 142) ..................................... 66 ......4.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (25.5%) .......................................44 ......4.9 7 Innovation Institutions ................................................................ 97 ......3.5 Infrastructure ............................................................ 39 ......4.8 Macroeconomic environment ................................... 31 ......5.5 Health and primary education ................................... 56 ......6.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................41 ......4.5 Market size Higher education and training ................................... 39 ......5.0 Goods market efficiency .......................................... 99 ......4.1 Labor market efficiency ............................................ 45 ......4.4 Financial market development ................................ 110 ......3.5 Technological readiness ............................................ 59 ......4.2 Market size ................................................................. 7 ......5.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (24.5%) ...........75 ......3.5 Business sophistication ........................................... 86 ......3.8 Innovation ................................................................. 65 ......3.3 Russian Federation Commonwealth of Independent States The most problematic factors for doing business Corruption .........................................................................14.3 Tax rates............................................................................12.3 Access to financing ...........................................................11.7 Tax regulations ..................................................................10.8 Inefficient government bureaucracy .....................................8.2 Inflation ................................................................................7.6 Inadequately educated workforce ........................................7.3 Poor work ethic in national labor force ................................4.8 Inadequate supply of infrastructure ......................................4.6 Insufficient capacity to innovate ...........................................4.0 Restrictive labor regulations .................................................3.6 Crime and theft ...................................................................2.8 Policy instability ...................................................................2.8 Foreign currency regulations ................................................2.2 Government instability/coups ..............................................2.0 Poor public health ...............................................................1.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 320 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Russian Federation The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.3 ..........120 Intellectual property protection ............................... 3.0 ..........107 Diversion of public funds ........................................ 2.7 ..........102 Public trust in politicians ......................................... 3.0 ............74 Irregular payments and bribes ................................ 3.4 ..........102 Judicial independence............................................ 2.9 ..........109 Favoritism in decisions of government officials ....... 2.8 ............87 Wastefulness of government spending ................... 2.8 ............87 Burden of government regulation ........................... 2.9 ..........111 Efficiency of legal framework in settling disputes .... 3.2 ..........110 Efficiency of legal framework in challenging regs. ... 2.9 ............99 Transparency of government policymaking............. 4.0 ............68 Business costs of terrorism .................................... 4.6 ..........104 Business costs of crime and violence..................... 4.5 ............70 Organized crime ..................................................... 4.2 ..........101 Reliability of police services .................................... 3.2 ..........114 Ethical behavior of firms ......................................... 3.9 ............72 Strength of auditing and reporting standards ......... 4.1 ..........106 Efficacy of corporate boards .................................. 4.6 ............64 Protection of minority shareholders’ interests ......... 3.5 ..........118 Strength of investor protection, 0–10 (best)* .......... 4.7 ............98 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.1 ............74 Quality of roads ...................................................... 2.7 ..........124 Quality of railroad infrastructure .............................. 4.3 ............26 Quality of port infrastructure ................................... 3.9 ............81 Quality of air transport infrastructure....................... 4.1 ............79 Available airline seat km/week, millions* .......... 3,685.0 ............11 Quality of electricity supply ..................................... 4.8 ............73 Mobile telephone subscriptions/100 pop.* ......... 152.8 ............20 Fixed telephone lines/100 pop.* ........................... 28.5 ............39 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.3 ............39 Gross national savings, % GDP* .......................... 25.3 ............41 Inflation, annual % change* .................................... 6.8 ..........115 General government debt, % GDP* ..................... 13.4 ............10 Country credit rating, 0–100 (best)* ...................... 67.7 ............37 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 91.0 ............89 Business impact of tuberculosis ............................. 5.5 ............75 HIV prevalence, % adult pop.* ............................... 1.1 ..........110 Business impact of HIV/AIDS ................................. 5.8 ............60 Infant mortality, deaths/1,000 live births* ................ 8.9 ............53 Life expectancy, years*......................................... 70.5 ............95 Quality of primary education ................................... 4.2 ............57 Primary education enrollment, net %* .................. 96.2 ............54 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 95.3 ............56 Tertiary education enrollment, gross %*................ 76.1 ............19 Quality of the education system ............................. 3.5 ............84 Quality of math and science education .................. 4.3 ............59 Quality of management schools ............................. 3.7 ..........104 Internet access in schools ...................................... 5.1 ............41 Availability of research and training services ........... 4.3 ............59 Extent of staff training ............................................ 3.8 ............89 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 15.0 ............75 Agricultural policy costs.......................................... 3.1 ..........125 Prevalence of trade barriers ................................... 4.0 ..........111 Trade tariffs, % duty* .............................................. 9.5 ..........102 Prevalence of foreign ownership............................. 3.4 ..........124 Business impact of rules on FDI ............................. 3.7 ..........118 Burden of customs procedures .............................. 3.6 ............95 Imports as a percentage of GDP* ........................ 22.1 ..........133 Degree of customer orientation .............................. 4.4 ............83 Buyer sophistication ............................................... 3.7 ............44 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............89 Flexibility of wage determination ............................. 5.6 ............28 Hiring and firing practices ....................................... 4.2 ............41 Redundancy costs, weeks of salary* .................... 17.3 ............83 Effect of taxation on incentives to work .................. 3.0 ..........115 Pay and productivity............................................... 4.6 ............24 Reliance on professional management ................... 4.0 ............85 Country capacity to retain talent............................. 2.9 ..........103 Country capacity to attract talent ........................... 3.1 ............92 Women in labor force, ratio to men* ..................... 0.87 ............41 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.4 ............71 Affordability of financial services ............................. 4.1 ............69 Financing through local equity market .................... 3.1 ............86 Ease of access to loans ......................................... 3.0 ............56 Venture capital availability ....................................... 2.7 ............61 Soundness of banks .............................................. 4.0 ..........118 Regulation of securities exchanges ........................ 3.7 ............91 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.2 ..........108 Firm-level technology absorption ............................ 4.2 ............98 FDI and technology transfer ................................... 3.8 ..........123 Individuals using Internet, %* ............................... 61.4 ............49 Fixed broadband Internet subscriptions/100 pop.* . 16.6 ............43 Int’l Internet bandwidth, kb/s per user* ................ 41.2 ............61 Mobile broadband subscriptions/100 pop.*.......... 60.1 ............29 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.7 ..............7 Foreign market size index, 1–7 (best)* .................... 6.1 ..............9 GDP (PPP$ billions)* ....................................... 2,556.2 ..............6 Exports as a percentage of GDP* ........................ 27.8 ..........104 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.4 ............91 Local supplier quality.............................................. 4.1 ............88 State of cluster development.................................. 3.1 ..........118 Nature of competitive advantage ............................ 3.4 ............75 Value chain breadth................................................ 3.5 ............96 Control of international distribution ......................... 4.0 ............73 Production process sophistication.......................... 3.5 ............92 Extent of marketing ................................................ 4.3 ............64 Willingness to delegate authority ............................ 3.6 ............81 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.8 ............66 Quality of scientific research institutions ................. 4.0 ............56 Company spending on R&D................................... 3.2 ............62 University-industry collaboration in R&D ................. 3.6 ............67 Gov’t procurement of advanced tech products ...... 3.3 ............81 Availability of scientists and engineers .................... 4.1 ............70 PCT patents, applications/million pop.* .................. 7.1 ............41 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.0 ............74 Extent of market dominance .................................. 3.7 ............75 Effectiveness of anti-monopoly policy ..................... 3.7 ..........102 Effect of taxation on incentives to invest................. 3.1 ..........122 Total tax rate, % profits* ....................................... 50.7 ..........116 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 321 2.1: Country/Economy Profiles Rwanda Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 10.6 GDP (US$ billions) ............................................ 7.4 GDP per capita (US$) ...................................... 698 GDP (PPP) as share (%) of world total ............ 0.02 Rwanda 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 62 ..... 4.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 66 ......4.2 GCI 2012–2013 (out of 144) ..................................... 63 ......4.2 GCI 2011–2012 (out of 142) ..................................... 70 ......4.2 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .......................................67 ......4.6 7 Innovation Institutions ................................................................ 18 ......5.2 Infrastructure .......................................................... 105 ......3.1 Macroeconomic environment ................................... 79 ......4.6 Health and primary education ................................... 86 ......5.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) .....................................91 ......3.8 Market size Higher education and training ................................. 122 ......3.0 Goods market efficiency .......................................... 42 ......4.6 Labor market efficiency .............................................. 9 ......5.1 Financial market development .................................. 55 ......4.3 Technological readiness ............................................ 98 ......3.1 Market size ............................................................. 125 ......2.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............66 ......3.6 Business sophistication ........................................... 84 ......3.8 Innovation ................................................................. 53 ......3.5 Rwanda Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................21.3 Inadequately educated workforce ......................................14.3 Insufficient capacity to innovate .........................................11.5 Inadequate supply of infrastructure ....................................11.3 Tax rates............................................................................10.1 Poor work ethic in national labor force ................................7.5 Tax regulations ....................................................................7.2 Inflation ................................................................................5.3 Inefficient government bureaucracy .....................................3.5 Corruption ...........................................................................2.5 Policy instability ...................................................................1.6 Foreign currency regulations ................................................1.3 Restrictive labor regulations .................................................1.1 Poor public health ...............................................................0.9 Crime and theft ...................................................................0.6 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 322 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Rwanda The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.3 ............28 Intellectual property protection ............................... 4.6 ............32 Diversion of public funds ........................................ 5.3 ............19 Public trust in politicians ......................................... 5.3 ............10 Irregular payments and bribes ................................ 5.5 ............27 Judicial independence............................................ 4.9 ............34 Favoritism in decisions of government officials ....... 4.5 ............16 Wastefulness of government spending ................... 5.7 ..............4 Burden of government regulation ........................... 4.8 ..............6 Efficiency of legal framework in settling disputes .... 5.2 ............16 Efficiency of legal framework in challenging regs. ... 4.3 ............24 Transparency of government policymaking............. 5.5 ..............8 Business costs of terrorism .................................... 5.9 ............37 Business costs of crime and violence..................... 6.1 ..............6 Organized crime ..................................................... 6.4 ..............9 Reliability of police services .................................... 5.8 ............21 Ethical behavior of firms ......................................... 5.3 ............22 Strength of auditing and reporting standards ......... 4.8 ............63 Efficacy of corporate boards .................................. 5.0 ............35 Protection of minority shareholders’ interests ......... 4.7 ............34 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.3 ............68 Quality of roads ...................................................... 4.7 ............46 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 3.6 ............98 Quality of air transport infrastructure....................... 4.3 ............73 Available airline seat km/week, millions* ............... 15.7 ..........130 Quality of electricity supply ..................................... 4.0 ............92 Mobile telephone subscriptions/100 pop.* ........... 56.8 ..........134 Fixed telephone lines/100 pop.* ............................. 0.4 ..........135 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.5 ............62 Gross national savings, % GDP* .......................... 15.7 ..........100 Inflation, annual % change* .................................... 4.2 ............84 General government debt, % GDP* ..................... 29.4 ............34 Country credit rating, 0–100 (best)* ...................... 25.2 ..........120 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 5,673.0 ............51 Business impact of malaria .................................... 4.8 ............38 Tuberculosis cases/100,000 pop.* ....................... 86.0 ............87 Business impact of tuberculosis ............................. 5.3 ............85 HIV prevalence, % adult pop.* ............................... 2.9 ..........127 Business impact of HIV/AIDS ................................. 4.7 ............98 Infant mortality, deaths/1,000 live births* .............. 38.8 ..........110 Life expectancy, years*......................................... 63.5 ..........115 Quality of primary education ................................... 3.7 ............82 Primary education enrollment, net %* .................. 98.7 ............16 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 31.8 ..........134 Tertiary education enrollment, gross %*.................. 7.2 ..........124 Quality of the education system ............................. 4.0 ............50 Quality of math and science education .................. 4.1 ............71 Quality of management schools ............................. 3.8 ............99 Internet access in schools ...................................... 4.3 ............70 Availability of research and training services ........... 3.7 ............96 Extent of staff training ............................................ 4.0 ............66 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 2 ..............3 No. days to start a business* ................................. 2.0 ..............2 Agricultural policy costs.......................................... 4.5 ............18 Prevalence of trade barriers ................................... 4.5 ............53 Trade tariffs, % duty* .............................................. 8.7 ............96 Prevalence of foreign ownership............................. 4.4 ............83 Business impact of rules on FDI ............................. 5.8 ..............5 Burden of customs procedures .............................. 5.2 ............16 Imports as a percentage of GDP* ........................ 39.9 ............88 Degree of customer orientation .............................. 4.1 ..........107 Buyer sophistication ............................................... 3.5 ............61 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.0 ............24 Flexibility of wage determination ............................. 5.3 ............54 Hiring and firing practices ....................................... 4.3 ............31 Redundancy costs, weeks of salary* .................... 13.0 ............56 Effect of taxation on incentives to work .................. 4.5 ............16 Pay and productivity............................................... 4.0 ............68 Reliance on professional management ................... 4.8 ............35 Country capacity to retain talent............................. 4.3 ............27 Country capacity to attract talent ........................... 4.6 ............20 Women in labor force, ratio to men* ..................... 1.02 ..............3 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.4 ............69 Affordability of financial services ............................. 4.3 ............56 Financing through local equity market .................... 3.4 ............73 Ease of access to loans ......................................... 3.2 ............41 Venture capital availability ....................................... 3.1 ............39 Soundness of banks .............................................. 4.7 ............82 Regulation of securities exchanges ........................ 4.0 ............73 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.3 ............46 Firm-level technology absorption ............................ 5.0 ............49 FDI and technology transfer ................................... 5.1 ............25 Individuals using Internet, %* ................................. 8.7 ..........125 Fixed broadband Internet subscriptions/100 pop.* ... 0.0 ..........137 Int’l Internet bandwidth, kb/s per user* .................. 9.8 ..........103 Mobile broadband subscriptions/100 pop.*............ 5.8 ..........106 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.4 ..........125 Foreign market size index, 1–7 (best)* .................... 2.8 ..........136 GDP (PPP$ billions)* ............................................ 16.4 ..........123 Exports as a percentage of GDP* ........................ 13.4 ..........136 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.2 ..........107 Local supplier quality.............................................. 4.0 ............96 State of cluster development.................................. 3.9 ............59 Nature of competitive advantage ............................ 3.6 ............65 Value chain breadth................................................ 3.7 ............71 Control of international distribution ......................... 4.0 ............67 Production process sophistication.......................... 3.4 ..........102 Extent of marketing ................................................ 3.3 ..........125 Willingness to delegate authority ............................ 3.8 ............65 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............86 Quality of scientific research institutions ................. 3.7 ............72 Company spending on R&D................................... 2.9 ............94 University-industry collaboration in R&D ................. 3.7 ............64 Gov’t procurement of advanced tech products ...... 4.8 ..............5 Availability of scientists and engineers .................... 4.0 ............74 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............78 Extent of market dominance .................................. 4.0 ............52 Effectiveness of anti-monopoly policy ..................... 4.7 ............28 Effect of taxation on incentives to invest................. 4.3 ............29 Total tax rate, % profits* ....................................... 29.9 ............38 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 323 2.1: Country/Economy Profiles Saudi Arabia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 30.0 GDP (US$ billions) ........................................ 745.3 GDP per capita (US$) ................................. 24,847 GDP (PPP) as share (%) of world total ............ 1.08 Saudi Arabia 35,000 Middle East, North Africa, and Pakistan 30,000 25,000 20,000 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2012 2010 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 24 ..... 5.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 20 ......5.1 GCI 2012–2013 (out of 144) ..................................... 18 ......5.2 GCI 2011–2012 (out of 142) ..................................... 17 ......5.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (42.9%) .......................................15 ......5.7 7 Innovation Institutions ................................................................ 25 ......5.0 Infrastructure ............................................................ 30 ......5.2 Macroeconomic environment ..................................... 4 ......6.7 Health and primary education ................................... 50 ......6.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (47.8%) .....................................33 ......4.6 Market size Higher education and training ................................... 57 ......4.6 Goods market efficiency .......................................... 35 ......4.7 Labor market efficiency ............................................ 64 ......4.2 Financial market development .................................. 30 ......4.7 Technological readiness ............................................ 45 ......4.5 Market size ............................................................... 20 ......5.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (9.3%) .............32 ......4.2 Business sophistication ........................................... 30 ......4.6 Innovation ................................................................. 33 ......3.8 Saudi Arabia Middle East, North Africa, and Pakistan The most problematic factors for doing business Restrictive labor regulations ...............................................26.9 Inadequately educated workforce ......................................16.2 Inefficient government bureaucracy ...................................11.9 Access to financing ...........................................................11.8 Poor work ethic in national labor force ................................6.7 Inadequate supply of infrastructure ......................................5.3 Tax rates..............................................................................4.2 Corruption ...........................................................................3.5 Insufficient capacity to innovate ...........................................3.4 Policy instability ...................................................................3.2 Inflation ................................................................................2.3 Tax regulations ....................................................................1.8 Foreign currency regulations ................................................1.2 Poor public health ...............................................................0.9 Crime and theft ...................................................................0.4 Government instability/coups ..............................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 324 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Saudi Arabia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.1 ............32 Intellectual property protection ............................... 4.9 ............28 Diversion of public funds ........................................ 4.8 ............25 Public trust in politicians ......................................... 5.1 ............12 Irregular payments and bribes ................................ 5.6 ............22 Judicial independence............................................ 5.2 ............26 Favoritism in decisions of government officials ....... 4.1 ............25 Wastefulness of government spending ................... 4.7 ............12 Burden of government regulation ........................... 3.7 ............45 Efficiency of legal framework in settling disputes .... 4.4 ............34 Efficiency of legal framework in challenging regs. ... 4.1 ............27 Transparency of government policymaking............. 4.5 ............38 Business costs of terrorism .................................... 5.4 ............62 Business costs of crime and violence..................... 5.6 ............17 Organized crime ..................................................... 6.4 ............10 Reliability of police services .................................... 5.2 ............34 Ethical behavior of firms ......................................... 4.9 ............30 Strength of auditing and reporting standards ......... 5.5 ............33 Efficacy of corporate boards .................................. 4.9 ............49 Protection of minority shareholders’ interests ......... 5.0 ............22 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.2 ............29 Quality of roads ...................................................... 5.3 ............26 Quality of railroad infrastructure .............................. 3.1 ............50 Quality of port infrastructure ................................... 5.0 ............40 Quality of air transport infrastructure....................... 5.1 ............41 Available airline seat km/week, millions* .......... 1,433.8 ............24 Quality of electricity supply ..................................... 6.2 ............26 Mobile telephone subscriptions/100 pop.* ......... 176.5 ..............5 Fixed telephone lines/100 pop.* ........................... 16.4 ............70 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 8.3 ..............6 Gross national savings, % GDP* .......................... 45.5 ..............7 Inflation, annual % change* .................................... 3.5 ............72 General government debt, % GDP* ....................... 2.7 ..............2 Country credit rating, 0–100 (best)* ...................... 76.1 ............26 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.4 ............13 Business impact of malaria .................................... 5.7 ............16 Tuberculosis cases/100,000 pop.* ....................... 15.0 ............35 Business impact of tuberculosis ............................. 5.7 ............70 HIV prevalence, % adult pop.* ............................. <0.2 ..............1 Business impact of HIV/AIDS ................................. 5.6 ............71 Infant mortality, deaths/1,000 live births* ................ 7.4 ............46 Life expectancy, years*......................................... 75.5 ............51 Quality of primary education ................................... 4.0 ............69 Primary education enrollment, net %* .................. 96.5 ............50 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 116.2 ..............7 Tertiary education enrollment, gross %*................ 50.9 ............55 Quality of the education system ............................. 4.1 ............47 Quality of math and science education .................. 4.1 ............73 Quality of management schools ............................. 4.2 ............78 Internet access in schools ...................................... 4.6 ............63 Availability of research and training services ........... 4.1 ............73 Extent of staff training ............................................ 4.1 ............60 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 20.5 ............95 Agricultural policy costs.......................................... 4.4 ............21 Prevalence of trade barriers ................................... 4.4 ............57 Trade tariffs, % duty* .............................................. 4.2 ............61 Prevalence of foreign ownership............................. 4.1 ..........106 Business impact of rules on FDI ............................. 4.2 ............95 Burden of customs procedures .............................. 4.3 ............54 Imports as a percentage of GDP* ........................ 28.7 ..........120 Degree of customer orientation .............................. 4.6 ............63 Buyer sophistication ............................................... 3.6 ............52 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.5 ............50 Flexibility of wage determination ............................. 5.8 ............13 Hiring and firing practices ....................................... 4.1 ............54 Redundancy costs, weeks of salary* .................... 19.5 ............93 Effect of taxation on incentives to work .................. 4.9 ............13 Pay and productivity............................................... 4.5 ............25 Reliance on professional management ................... 4.6 ............45 Country capacity to retain talent............................. 4.4 ............22 Country capacity to attract talent ........................... 4.7 ............17 Women in labor force, ratio to men* ..................... 0.25 ..........141 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.9 ............48 Affordability of financial services ............................. 5.1 ............30 Financing through local equity market .................... 4.5 ............19 Ease of access to loans ......................................... 3.6 ............27 Venture capital availability ....................................... 3.4 ............27 Soundness of banks .............................................. 6.0 ............17 Regulation of securities exchanges ........................ 5.0 ............31 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.5 ............38 Firm-level technology absorption ............................ 5.4 ............31 FDI and technology transfer ................................... 5.4 ............10 Individuals using Internet, %* ............................... 60.5 ............51 Fixed broadband Internet subscriptions/100 pop.* ... 7.3 ............73 Int’l Internet bandwidth, kb/s per user* ................ 46.7 ............56 Mobile broadband subscriptions/100 pop.*.......... 49.5 ............41 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.8 ............22 Foreign market size index, 1–7 (best)* .................... 5.9 ............17 GDP (PPP$ billions)* .......................................... 937.2 ............19 Exports as a percentage of GDP* ........................ 52.0 ............43 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.1 ............22 Local supplier quality.............................................. 4.5 ............60 State of cluster development.................................. 4.7 ............22 Nature of competitive advantage ............................ 3.8 ............48 Value chain breadth................................................ 4.4 ............31 Control of international distribution ......................... 4.9 ............11 Production process sophistication.......................... 4.7 ............31 Extent of marketing ................................................ 4.7 ............40 Willingness to delegate authority ............................ 4.4 ............30 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.0 ............55 Quality of scientific research institutions ................. 4.2 ............44 Company spending on R&D................................... 3.6 ............37 University-industry collaboration in R&D ................. 4.2 ............38 Gov’t procurement of advanced tech products ...... 4.6 ..............7 Availability of scientists and engineers .................... 4.4 ............47 PCT patents, applications/million pop.* .................. 6.7 ............44 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............40 Extent of market dominance .................................. 4.3 ............32 Effectiveness of anti-monopoly policy ..................... 4.6 ............32 Effect of taxation on incentives to invest................. 5.0 ............11 Total tax rate, % profits* ....................................... 14.5 ..............6 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 325 2.1: Country/Economy Profiles Senegal Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 14.1 GDP (US$ billions) .......................................... 15.2 GDP per capita (US$) ................................... 1,073 GDP (PPP) as share (%) of world total ............ 0.03 Senegal 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 112 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 113 ......3.7 GCI 2012–2013 (out of 144) ................................... 117 ......3.7 GCI 2011–2012 (out of 142) ................................... 111 ......3.7 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................120 ......3.7 7 Innovation Institutions ................................................................ 74 ......3.8 Infrastructure .......................................................... 111 ......2.9 Macroeconomic environment ................................... 97 ......4.3 Health and primary education ................................. 131 ......4.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................102 ......3.6 Market size Higher education and training ................................. 119 ......3.2 Goods market efficiency .......................................... 68 ......4.3 Labor market efficiency ............................................ 68 ......4.2 Financial market development .................................. 85 ......3.8 Technological readiness ............................................ 96 ......3.2 Market size ............................................................. 104 ......3.0 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............65 ......3.6 Business sophistication ........................................... 77 ......3.9 Innovation ................................................................. 57 ......3.4 Senegal Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................25.3 Inadequate supply of infrastructure ....................................12.2 Restrictive labor regulations .................................................8.1 Corruption ...........................................................................6.4 Inefficient government bureaucracy .....................................5.9 Tax regulations ....................................................................5.6 Tax rates..............................................................................5.5 Inadequately educated workforce ........................................5.2 Foreign currency regulations ................................................4.8 Policy instability ...................................................................4.6 Poor work ethic in national labor force ................................4.2 Inflation ................................................................................3.5 Crime and theft ...................................................................2.9 Insufficient capacity to innovate ...........................................2.9 Poor public health ...............................................................2.2 Government instability/coups ..............................................0.8 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 326 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Senegal The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.9 ............80 Intellectual property protection ............................... 3.4 ............86 Diversion of public funds ........................................ 3.2 ............72 Public trust in politicians ......................................... 3.1 ............64 Irregular payments and bribes ................................ 3.5 ............92 Judicial independence............................................ 3.5 ............80 Favoritism in decisions of government officials ....... 3.2 ............58 Wastefulness of government spending ................... 3.6 ............45 Burden of government regulation ........................... 4.0 ............29 Efficiency of legal framework in settling disputes .... 3.8 ............58 Efficiency of legal framework in challenging regs. ... 3.7 ............46 Transparency of government policymaking............. 4.1 ............57 Business costs of terrorism .................................... 4.7 ..........101 Business costs of crime and violence..................... 4.5 ............65 Organized crime ..................................................... 4.3 ............96 Reliability of police services .................................... 4.6 ............47 Ethical behavior of firms ......................................... 4.0 ............62 Strength of auditing and reporting standards ......... 4.5 ............76 Efficacy of corporate boards .................................. 4.7 ............59 Protection of minority shareholders’ interests ......... 3.7 ............95 Strength of investor protection, 0–10 (best)* .......... 3.0 ..........130 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.6 ............97 Quality of roads ...................................................... 3.4 ............92 Quality of railroad infrastructure .............................. 2.3 ............79 Quality of port infrastructure ................................... 4.4 ............58 Quality of air transport infrastructure....................... 3.8 ............94 Available airline seat km/week, millions* ............. 103.4 ............82 Quality of electricity supply ..................................... 3.0 ..........111 Mobile telephone subscriptions/100 pop.* ........... 92.9 ..........106 Fixed telephone lines/100 pop.* ............................. 2.4 ..........117 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.4 ..........112 Gross national savings, % GDP* .......................... 17.5 ............86 Inflation, annual % change* .................................... 0.8 ..............1 General government debt, % GDP* ..................... 45.9 ............79 Country credit rating, 0–100 (best)* ...................... 32.5 ..........100 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 27,684.6 ............71 Business impact of malaria .................................... 3.9 ............55 Tuberculosis cases/100,000 pop.* ..................... 137.0 ..........102 Business impact of tuberculosis ............................. 4.6 ..........101 HIV prevalence, % adult pop.* ............................... 0.5 ............88 Business impact of HIV/AIDS ................................. 4.6 ..........104 Infant mortality, deaths/1,000 live births* .............. 45.2 ..........116 Life expectancy, years*......................................... 63.2 ..........116 Quality of primary education ................................... 3.3 ............98 Primary education enrollment, net %* .................. 73.3 ..........131 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 41.0 ..........128 Tertiary education enrollment, gross %*.................. 7.6 ..........120 Quality of the education system ............................. 3.8 ............66 Quality of math and science education .................. 4.0 ............77 Quality of management schools ............................. 4.6 ............51 Internet access in schools ...................................... 3.9 ............85 Availability of research and training services ........... 4.4 ............56 Extent of staff training ............................................ 3.9 ............78 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 3.5 ............97 Prevalence of trade barriers ................................... 4.1 ............98 Trade tariffs, % duty* ............................................ 10.8 ..........113 Prevalence of foreign ownership............................. 4.5 ............73 Business impact of rules on FDI ............................. 4.5 ............68 Burden of customs procedures .............................. 4.3 ............56 Imports as a percentage of GDP* ........................ 53.7 ............54 Degree of customer orientation .............................. 4.7 ............58 Buyer sophistication ............................................... 3.2 ............92 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.4 ............57 Flexibility of wage determination ............................. 4.5 ..........112 Hiring and firing practices ....................................... 4.1 ............56 Redundancy costs, weeks of salary* .................... 13.7 ............64 Effect of taxation on incentives to work .................. 3.9 ............44 Pay and productivity............................................... 3.8 ............90 Reliance on professional management ................... 4.1 ............81 Country capacity to retain talent............................. 3.4 ............77 Country capacity to attract talent ........................... 3.7 ............54 Women in labor force, ratio to men* ..................... 0.75 ............90 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........114 Affordability of financial services ............................. 3.7 ..........102 Financing through local equity market .................... 3.3 ............77 Ease of access to loans ......................................... 2.9 ............61 Venture capital availability ....................................... 2.9 ............53 Soundness of banks .............................................. 4.8 ............79 Regulation of securities exchanges ........................ 3.5 ..........106 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.9 ............68 Firm-level technology absorption ............................ 5.0 ............43 FDI and technology transfer ................................... 4.6 ............74 Individuals using Internet, %* ............................... 20.9 ..........101 Fixed broadband Internet subscriptions/100 pop.* ... 0.8 ..........109 Int’l Internet bandwidth, kb/s per user* .................. 5.4 ..........114 Mobile broadband subscriptions/100 pop.*.......... 15.3 ............88 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.8 ..........100 Foreign market size index, 1–7 (best)* .................... 3.4 ..........116 GDP (PPP$ billions)* ............................................ 27.7 ..........105 Exports as a percentage of GDP* ........................ 24.7 ..........114 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............86 Local supplier quality.............................................. 4.4 ............74 State of cluster development.................................. 3.3 ..........103 Nature of competitive advantage ............................ 3.4 ............74 Value chain breadth................................................ 4.0 ............55 Control of international distribution ......................... 3.9 ............85 Production process sophistication.......................... 3.9 ............69 Extent of marketing ................................................ 4.1 ............73 Willingness to delegate authority ............................ 3.6 ............89 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.9 ............56 Quality of scientific research institutions ................. 3.9 ............66 Company spending on R&D................................... 3.2 ............58 University-industry collaboration in R&D ................. 3.6 ............65 Gov’t procurement of advanced tech products ...... 4.0 ............27 Availability of scientists and engineers .................... 4.1 ............68 PCT patents, applications/million pop.* .................. 0.1 ..........104 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............81 Extent of market dominance .................................. 3.8 ............60 Effectiveness of anti-monopoly policy ..................... 4.2 ............61 Effect of taxation on incentives to invest................. 3.8 ............61 Total tax rate, % profits* ....................................... 48.5 ..........107 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 327 2.1: Country/Economy Profiles Serbia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 7.2 GDP (US$ billions) .......................................... 42.5 GDP per capita (US$) ................................... 5,907 GDP (PPP) as share (%) of world total ............ 0.09 Serbia 20,000 Emerging and Developing Europe 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 94 ..... 3.9 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 101 ......3.8 GCI 2012–2013 (out of 144) ..................................... 95 ......3.9 GCI 2011–2012 (out of 142) ..................................... 95 ......3.9 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .....................................101 ......4.1 Innovation Institutions .............................................................. 122 ......3.2 Infrastructure ............................................................ 77 ......3.9 Macroeconomic environment ................................. 129 ......3.5 Health and primary education ................................... 68 ......5.8 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................80 ......3.9 Market size Higher education and training ................................... 74 ......4.3 Goods market efficiency ........................................ 128 ......3.8 Labor market efficiency .......................................... 119 ......3.7 Financial market development ................................ 109 ......3.5 Technological readiness ............................................ 49 ......4.4 Market size ............................................................... 71 ......3.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........121 ......3.1 Business sophistication ......................................... 132 ......3.2 Innovation ............................................................... 108 ......2.9 Serbia Emerging and Developing Europe The most problematic factors for doing business Inefficient government bureaucracy ...................................13.7 Access to financing ...........................................................13.3 Corruption .........................................................................11.9 Policy instability ...................................................................8.3 Government instability/coups ..............................................6.9 Tax rates..............................................................................6.8 Tax regulations ....................................................................6.1 Crime and theft ...................................................................5.3 Inadequate supply of infrastructure ......................................5.1 Restrictive labor regulations .................................................4.1 Foreign currency regulations ................................................4.0 Poor work ethic in national labor force ................................3.7 Inflation ................................................................................3.3 Inadequately educated workforce ........................................3.1 Insufficient capacity to innovate ...........................................2.7 Poor public health ...............................................................1.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 328 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Serbia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.1 ..........127 Intellectual property protection ............................... 2.9 ..........113 Diversion of public funds ........................................ 2.7 ............99 Public trust in politicians ......................................... 2.1 ..........118 Irregular payments and bribes ................................ 3.9 ............69 Judicial independence............................................ 2.6 ..........118 Favoritism in decisions of government officials ....... 2.4 ..........120 Wastefulness of government spending ................... 2.2 ..........132 Burden of government regulation ........................... 2.2 ..........140 Efficiency of legal framework in settling disputes .... 2.7 ..........128 Efficiency of legal framework in challenging regs. ... 2.3 ..........129 Transparency of government policymaking............. 3.6 ..........108 Business costs of terrorism .................................... 5.5 ............58 Business costs of crime and violence..................... 4.2 ............86 Organized crime ..................................................... 4.1 ..........106 Reliability of police services .................................... 3.8 ............89 Ethical behavior of firms ......................................... 3.4 ..........119 Strength of auditing and reporting standards ......... 4.0 ..........109 Efficacy of corporate boards .................................. 3.8 ..........125 Protection of minority shareholders’ interests ......... 2.8 ..........138 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.3 ..........111 Quality of roads ...................................................... 2.9 ..........114 Quality of railroad infrastructure .............................. 2.1 ............83 Quality of port infrastructure ................................... 2.6 ..........127 Quality of air transport infrastructure....................... 3.5 ..........112 Available airline seat km/week, millions* ............... 74.0 ............93 Quality of electricity supply ..................................... 4.7 ............76 Mobile telephone subscriptions/100 pop.* ......... 119.4 ............57 Fixed telephone lines/100 pop.* ........................... 39.3 ............26 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.7 ..........117 Gross national savings, % GDP* .......................... 11.5 ..........125 Inflation, annual % change* .................................... 7.7 ..........124 General government debt, % GDP* ..................... 65.8 ..........108 Country credit rating, 0–100 (best)* ...................... 39.5 ............81 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 23.0 ............50 Business impact of tuberculosis ............................. 6.4 ............31 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.5 ............14 Infant mortality, deaths/1,000 live births* ................ 5.7 ............37 Life expectancy, years*......................................... 75.2 ............52 Quality of primary education ................................... 3.8 ............78 Primary education enrollment, net %* .................. 91.4 ............94 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 91.7 ............66 Tertiary education enrollment, gross %*................ 52.4 ............52 Quality of the education system ............................. 3.1 ..........106 Quality of math and science education .................. 4.3 ............53 Quality of management schools ............................. 3.6 ..........114 Internet access in schools ...................................... 4.2 ............72 Availability of research and training services ........... 3.5 ..........106 Extent of staff training ............................................ 3.1 ..........134 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 11.5 ............61 Agricultural policy costs.......................................... 3.0 ..........128 Prevalence of trade barriers ................................... 4.3 ............90 Trade tariffs, % duty* .............................................. 5.0 ............68 Prevalence of foreign ownership............................. 4.0 ..........109 Business impact of rules on FDI ............................. 3.2 ..........130 Burden of customs procedures .............................. 3.6 ............96 Imports as a percentage of GDP* ........................ 57.6 ............46 Degree of customer orientation .............................. 3.9 ..........116 Buyer sophistication ............................................... 2.4 ..........137 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.3 ..........140 Flexibility of wage determination ............................. 5.4 ............45 Hiring and firing practices ....................................... 3.3 ..........115 Redundancy costs, weeks of salary* ...................... 7.7 ............22 Effect of taxation on incentives to work .................. 2.6 ..........136 Pay and productivity............................................... 3.4 ..........116 Reliance on professional management ................... 3.2 ..........128 Country capacity to retain talent............................. 1.8 ..........141 Country capacity to attract talent ........................... 1.6 ..........143 Women in labor force, ratio to men* ..................... 0.77 ............81 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.0 ............98 Affordability of financial services ............................. 3.7 ..........110 Financing through local equity market .................... 2.2 ..........133 Ease of access to loans ......................................... 2.2 ..........121 Venture capital availability ....................................... 1.9 ..........132 Soundness of banks .............................................. 4.2 ..........106 Regulation of securities exchanges ........................ 3.3 ..........113 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.2 ..........106 Firm-level technology absorption ............................ 3.8 ..........127 FDI and technology transfer ................................... 4.0 ..........108 Individuals using Internet, %* ............................... 51.5 ............65 Fixed broadband Internet subscriptions/100 pop.* . 13.9 ............49 Int’l Internet bandwidth, kb/s per user* .............. 108.9 ............26 Mobile broadband subscriptions/100 pop.*.......... 54.8 ............35 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.4 ............73 Foreign market size index, 1–7 (best)* .................... 4.4 ............74 GDP (PPP$ billions)* ............................................ 81.1 ............74 Exports as a percentage of GDP* ........................ 44.9 ............55 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.1 ..........110 Local supplier quality.............................................. 4.0 ............98 State of cluster development.................................. 3.2 ..........115 Nature of competitive advantage ............................ 2.4 ..........141 Value chain breadth................................................ 3.1 ..........128 Control of international distribution ......................... 3.4 ..........122 Production process sophistication.......................... 2.8 ..........133 Extent of marketing ................................................ 3.1 ..........131 Willingness to delegate authority ............................ 2.9 ..........136 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.0 ..........130 Quality of scientific research institutions ................. 3.7 ............69 Company spending on R&D................................... 2.5 ..........125 University-industry collaboration in R&D ................. 3.2 ............95 Gov’t procurement of advanced tech products ...... 2.9 ..........122 Availability of scientists and engineers .................... 3.9 ............82 PCT patents, applications/million pop.* .................. 2.3 ............55 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.2 ..........128 Extent of market dominance .................................. 2.8 ..........136 Effectiveness of anti-monopoly policy ..................... 3.3 ..........126 Effect of taxation on incentives to invest................. 2.7 ..........136 Total tax rate, % profits* ....................................... 36.8 ............69 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 329 2.1: Country/Economy Profiles Seychelles Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.1 GDP (US$ billions) ............................................ 1.4 GDP per capita (US$) ................................. 15,046 GDP (PPP) as share (%) of world total ............ 0.00 Seychelles 30,000 Sub-Saharan Africa 25,000 20,000 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 92 ..... 3.9 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 80 ......4.1 GCI 2012–2013 (out of 144) ..................................... 76 ......4.1 GCI 2011–2012 (out of 142) .................................... n/a ......n/a Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (24.9%) .......................................50 ......4.9 7 Innovation Institutions ................................................................ 54 ......4.0 Infrastructure ............................................................ 53 ......4.5 Macroeconomic environment ................................... 57 ......4.9 Health and primary education ................................... 55 ......6.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) ...................................105 ......3.6 Market size Higher education and training ................................... 85 ......4.0 Goods market efficiency .......................................... 88 ......4.2 Labor market efficiency ............................................ 44 ......4.4 Financial market development ................................ 103 ......3.6 Technological readiness ............................................ 70 ......3.7 Market size ............................................................. 143 ......1.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (25.1%) ...........69 ......3.6 Business sophistication ........................................... 66 ......4.0 Innovation ................................................................. 73 ......3.3 Seychelles Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................21.9 Poor work ethic in national labor force ..............................15.1 Inadequately educated workforce ......................................11.3 Inefficient government bureaucracy .....................................8.0 Inadequate supply of infrastructure ......................................7.7 Restrictive labor regulations .................................................7.3 Corruption ...........................................................................5.7 Policy instability ...................................................................4.3 Foreign currency regulations ................................................4.1 Crime and theft ...................................................................3.2 Tax rates..............................................................................3.2 Insufficient capacity to innovate ...........................................2.4 Poor public health ...............................................................1.8 Tax regulations ....................................................................1.7 Inflation ................................................................................1.3 Government instability/coups ..............................................1.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 330 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Seychelles The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.2 ............68 Intellectual property protection ............................... 3.8 ............60 Diversion of public funds ........................................ 3.7 ............53 Public trust in politicians ......................................... 3.4 ............45 Irregular payments and bribes ................................ 4.1 ............63 Judicial independence............................................ 4.1 ............53 Favoritism in decisions of government officials ....... 3.2 ............57 Wastefulness of government spending ................... 3.5 ............48 Burden of government regulation ........................... 4.2 ............13 Efficiency of legal framework in settling disputes .... 4.0 ............52 Efficiency of legal framework in challenging regs. ... 3.4 ............70 Transparency of government policymaking............. 4.1 ............59 Business costs of terrorism .................................... 4.6 ..........107 Business costs of crime and violence..................... 4.2 ............87 Organized crime ..................................................... 4.9 ............61 Reliability of police services .................................... 4.1 ............68 Ethical behavior of firms ......................................... 4.1 ............58 Strength of auditing and reporting standards ......... 4.3 ............92 Efficacy of corporate boards .................................. 4.9 ............48 Protection of minority shareholders’ interests ......... 4.4 ............52 Strength of investor protection, 0–10 (best)* .......... 5.7 ............57 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.7 ............51 Quality of roads ...................................................... 4.2 ............60 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 5.0 ............41 Quality of air transport infrastructure....................... 4.9 ............49 Available airline seat km/week, millions* ............... 26.8 ..........116 Quality of electricity supply ..................................... 4.8 ............75 Mobile telephone subscriptions/100 pop.* ......... 147.3 ............26 Fixed telephone lines/100 pop.* ........................... 23.4 ............47 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 1.2 ............13 Gross national savings, % GDP* .......................... 18.7 ............77 Inflation, annual % change* .................................... 4.3 ............87 General government debt, % GDP* ..................... 62.0 ..........103 Country credit rating, 0–100 (best)* ...................... 25.2 ..........122 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 30.0 ............59 Business impact of tuberculosis ............................. 4.4 ..........109 HIV prevalence, % adult pop.* ............................... 0.8 ..........105 Business impact of HIV/AIDS ................................. 4.1 ..........123 Infant mortality, deaths/1,000 live births* .............. 11.2 ............60 Life expectancy, years*......................................... 72.7 ............83 Quality of primary education ................................... 4.6 ............42 Primary education enrollment, net %* .................. 93.8 ............71 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 101.3 ............28 Tertiary education enrollment, gross %*.................. 1.4 ..........140 Quality of the education system ............................. 4.3 ............37 Quality of math and science education .................. 4.3 ............57 Quality of management schools ............................. 4.3 ............63 Internet access in schools ...................................... 4.2 ............74 Availability of research and training services ........... 3.6 ............99 Extent of staff training ............................................ 4.0 ............67 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 39.0 ..........125 Agricultural policy costs.......................................... 3.9 ............66 Prevalence of trade barriers ................................... 4.4 ............60 Trade tariffs, % duty* ............................................ 16.0 ..........137 Prevalence of foreign ownership............................. 4.4 ............87 Business impact of rules on FDI ............................. 4.1 ............98 Burden of customs procedures .............................. 3.8 ............79 Imports as a percentage of GDP* ........................ 88.8 ............13 Degree of customer orientation .............................. 3.9 ..........115 Buyer sophistication ............................................... 3.6 ............57 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ............99 Flexibility of wage determination ............................. 4.9 ............83 Hiring and firing practices ....................................... 3.6 ............88 Redundancy costs, weeks of salary* .................... 13.5 ............62 Effect of taxation on incentives to work .................. 3.9 ............48 Pay and productivity............................................... 3.5 ..........102 Reliance on professional management ................... 4.4 ............56 Country capacity to retain talent............................. 3.1 ............90 Country capacity to attract talent ........................... 4.0 ............31 Women in labor force, ratio to men* ..................... 0.91 ............29 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.9 ..........103 Affordability of financial services ............................. 3.9 ............95 Financing through local equity market .................... 3.1 ............89 Ease of access to loans ......................................... 3.0 ............50 Venture capital availability ....................................... 2.7 ............62 Soundness of banks .............................................. 4.5 ............87 Regulation of securities exchanges ........................ 4.0 ............71 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.9 ............65 Firm-level technology absorption ............................ 4.7 ............63 FDI and technology transfer ................................... 4.2 ..........102 Individuals using Internet, %* ............................... 50.4 ............66 Fixed broadband Internet subscriptions/100 pop.* . 12.9 ............54 Int’l Internet bandwidth, kb/s per user* ................ 23.6 ............77 Mobile broadband subscriptions/100 pop.*............ 9.9 ............97 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.0 ..........143 Foreign market size index, 1–7 (best)* .................... 2.7 ..........137 GDP (PPP$ billions)* .............................................. 2.5 ..........143 Exports as a percentage of GDP* ........................ 82.3 ............18 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.0 ..........119 Local supplier quality.............................................. 3.8 ..........109 State of cluster development.................................. 3.9 ............63 Nature of competitive advantage ............................ 4.7 ............27 Value chain breadth................................................ 3.9 ............58 Control of international distribution ......................... 3.8 ............90 Production process sophistication.......................... 3.9 ............67 Extent of marketing ................................................ 3.9 ............92 Willingness to delegate authority ............................ 3.7 ............71 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.9 ............59 Quality of scientific research institutions ................. 3.6 ............76 Company spending on R&D................................... 3.1 ............64 University-industry collaboration in R&D ................. 3.4 ............80 Gov’t procurement of advanced tech products ...... 3.7 ............46 Availability of scientists and engineers .................... 2.8 ..........140 PCT patents, applications/million pop.* ................ 30.2 ............28 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.2 ..........127 Extent of market dominance .................................. 3.9 ............56 Effectiveness of anti-monopoly policy ..................... 4.1 ............66 Effect of taxation on incentives to invest................. 3.9 ............47 Total tax rate, % profits* ....................................... 25.7 ............23 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 331 2.1: Country/Economy Profiles Sierra Leone Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 6.1 GDP (US$ billions) ............................................ 4.8 GDP per capita (US$) ...................................... 784 GDP (PPP) as share (%) of world total ............ 0.01 Sierra Leone 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 138 ..... 3.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 144 ......3.0 GCI 2012–2013 (out of 144) ................................... 143 ......2.8 GCI 2011–2012 (out of 142) .................................... n/a ......n/a Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................141 ......3.1 7 Innovation Institutions .............................................................. 107 ......3.4 Infrastructure .......................................................... 136 ......2.1 Macroeconomic environment ................................. 117 ......3.9 Health and primary education ................................. 142 ......3.2 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................136 ......3.1 Market size Higher education and training ................................. 137 ......2.4 Goods market efficiency ........................................ 117 ......4.0 Labor market efficiency ............................................ 95 ......4.0 Financial market development ................................ 116 ......3.4 Technological readiness .......................................... 138 ......2.4 Market size ............................................................. 133 ......2.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........130 ......2.9 Business sophistication ......................................... 128 ......3.3 Innovation ............................................................... 130 ......2.6 Sierra Leone Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................18.5 Corruption .........................................................................14.5 Inadequate supply of infrastructure ....................................10.7 Foreign currency regulations ................................................8.8 Tax rates..............................................................................8.8 Poor work ethic in national labor force ................................6.0 Inflation ................................................................................5.7 Inefficient government bureaucracy .....................................5.4 Crime and theft ...................................................................4.9 Inadequately educated workforce ........................................4.4 Policy instability ...................................................................3.1 Insufficient capacity to innovate ...........................................2.6 Poor public health ...............................................................2.2 Tax regulations ....................................................................1.9 Restrictive labor regulations .................................................1.6 Government instability/coups ..............................................0.8 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 332 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Sierra Leone The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.4 ..........113 Intellectual property protection ............................... 3.2 ............93 Diversion of public funds ........................................ 2.7 ..........100 Public trust in politicians ......................................... 2.6 ............88 Irregular payments and bribes ................................ 2.7 ..........130 Judicial independence............................................ 2.8 ..........115 Favoritism in decisions of government officials ....... 2.5 ..........118 Wastefulness of government spending ................... 3.0 ............75 Burden of government regulation ........................... 3.6 ............52 Efficiency of legal framework in settling disputes .... 3.4 ............92 Efficiency of legal framework in challenging regs. ... 2.3 ..........132 Transparency of government policymaking............. 3.8 ............91 Business costs of terrorism .................................... 5.0 ............86 Business costs of crime and violence..................... 3.8 ..........102 Organized crime ..................................................... 4.0 ..........111 Reliability of police services .................................... 3.4 ..........110 Ethical behavior of firms ......................................... 3.5 ..........113 Strength of auditing and reporting standards ......... 4.1 ..........107 Efficacy of corporate boards .................................. 4.5 ............69 Protection of minority shareholders’ interests ......... 3.6 ..........103 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.9 ..........127 Quality of roads ...................................................... 3.0 ..........111 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 3.4 ..........105 Quality of air transport infrastructure....................... 2.7 ..........134 Available airline seat km/week, millions* ............... 10.7 ..........134 Quality of electricity supply ..................................... 2.0 ..........134 Mobile telephone subscriptions/100 pop.* ........... 44.1 ..........137 Fixed telephone lines/100 pop.* ............................. 0.3 ..........139 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.2 ............56 Gross national savings, % GDP* ............................ 0.7 ..........140 Inflation, annual % change* .................................... 9.8 ..........135 General government debt, % GDP* ..................... 32.6 ............44 Country credit rating, 0–100 (best)* ...................... 17.7 ..........137 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 18,398.6 ............62 Business impact of malaria .................................... 2.9 ............74 Tuberculosis cases/100,000 pop.* ..................... 674.0 ..........142 Business impact of tuberculosis ............................. 4.2 ..........121 HIV prevalence, % adult pop.* ............................... 1.5 ..........120 Business impact of HIV/AIDS ................................. 4.3 ..........114 Infant mortality, deaths/1,000 live births* ............ 117.4 ..........144 Life expectancy, years*......................................... 45.3 ..........144 Quality of primary education ................................... 2.9 ..........117 Primary education enrollment, net %* .................... n/a ...........n/a 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 26.4 ..........140 Tertiary education enrollment, gross %*.................. 2.0 ..........139 Quality of the education system ............................. 3.0 ..........112 Quality of math and science education .................. 2.5 ..........134 Quality of management schools ............................. 3.1 ..........128 Internet access in schools ...................................... 2.4 ..........134 Availability of research and training services ........... 3.2 ..........125 Extent of staff training ............................................ 3.6 ..........107 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 12.0 ............62 Agricultural policy costs.......................................... 3.7 ............78 Prevalence of trade barriers ................................... 4.6 ............32 Trade tariffs, % duty* ............................................ 13.8 ..........131 Prevalence of foreign ownership............................. 5.1 ............43 Business impact of rules on FDI ............................. 4.3 ............80 Burden of customs procedures .............................. 3.4 ..........110 Imports as a percentage of GDP* ........................ 55.3 ............51 Degree of customer orientation .............................. 3.7 ..........123 Buyer sophistication ............................................... 2.6 ..........130 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............84 Flexibility of wage determination ............................. 5.0 ............71 Hiring and firing practices ....................................... 4.5 ............19 Redundancy costs, weeks of salary* .................... 78.3 ..........141 Effect of taxation on incentives to work .................. 3.8 ............54 Pay and productivity............................................... 3.5 ..........105 Reliance on professional management ................... 4.2 ............70 Country capacity to retain talent............................. 2.5 ..........124 Country capacity to attract talent ........................... 3.3 ............86 Women in labor force, ratio to men* ..................... 0.97 ..............7 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.6 ..........124 Affordability of financial services ............................. 3.4 ..........124 Financing through local equity market .................... 2.3 ..........124 Ease of access to loans ......................................... 1.8 ..........130 Venture capital availability ....................................... 1.8 ..........137 Soundness of banks .............................................. 4.1 ..........117 Regulation of securities exchanges ........................ 3.1 ..........120 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.5 ..........134 Firm-level technology absorption ............................ 3.5 ..........137 FDI and technology transfer ................................... 4.1 ..........104 Individuals using Internet, %* ................................. 1.7 ..........140 Fixed broadband Internet subscriptions/100 pop.* ... 0.0 ..........143 Int’l Internet bandwidth, kb/s per user* .................. 2.0 ..........139 Mobile broadband subscriptions/100 pop.*............ n/a ...........n/a 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.0 ..........132 Foreign market size index, 1–7 (best)* .................... 3.0 ..........134 GDP (PPP$ billions)* .............................................. 9.4 ..........132 Exports as a percentage of GDP* ........................ 34.0 ............81 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.4 ............97 Local supplier quality.............................................. 3.7 ..........122 State of cluster development.................................. 3.2 ..........114 Nature of competitive advantage ............................ 2.7 ..........125 Value chain breadth................................................ 3.0 ..........134 Control of international distribution ......................... 3.0 ..........137 Production process sophistication.......................... 2.8 ..........132 Extent of marketing ................................................ 3.0 ..........134 Willingness to delegate authority ............................ 3.3 ..........111 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.2 ..........117 Quality of scientific research institutions ................. 2.5 ..........133 Company spending on R&D................................... 2.5 ..........124 University-industry collaboration in R&D ................. 2.4 ..........134 Gov’t procurement of advanced tech products ...... 3.2 ............94 Availability of scientists and engineers .................... 3.0 ..........134 PCT patents, applications/million pop.* .................. 0.0 ..........111 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.5 ..........116 Extent of market dominance .................................. 3.3 ..........113 Effectiveness of anti-monopoly policy ..................... 3.6 ..........107 Effect of taxation on incentives to invest................. 3.6 ............78 Total tax rate, % profits* ....................................... 32.4 ............47 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 333 2.1: Country/Economy Profiles Singapore Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 5.4 GDP (US$ billions) ........................................ 295.7 GDP per capita (US$) ................................. 54,776 GDP (PPP) as share (%) of world total ............ 0.40 Singapore 80,000 Advanced economies 70,000 60,000 50,000 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ........................................................ 2 ..... 5.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ....................................... 2 ......5.6 GCI 2012–2013 (out of 144) ....................................... 2 ......5.7 GCI 2011–2012 (out of 142) ....................................... 2 ......5.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .........................................1 ......6.3 7 Innovation Institutions .................................................................. 3 ......6.0 Infrastructure .............................................................. 2 ......6.5 Macroeconomic environment ................................... 15 ......6.1 Health and primary education ..................................... 3 ......6.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .......................................2 ......5.7 Market size Higher education and training ..................................... 2 ......6.1 Goods market efficiency ............................................ 1 ......5.6 Labor market efficiency .............................................. 2 ......5.7 Financial market development .................................... 2 ......5.8 Technological readiness .............................................. 7 ......6.1 Market size ............................................................... 31 ......4.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........11 ......5.1 Business sophistication ........................................... 19 ......5.1 Innovation ................................................................... 9 ......5.2 Singapore Advanced economies The most problematic factors for doing business Restrictive labor regulations ...............................................28.2 Inflation ..............................................................................20.5 Insufficient capacity to innovate .........................................15.2 Inadequately educated workforce ........................................7.6 Poor work ethic in national labor force ................................5.6 Access to financing .............................................................5.0 Tax rates..............................................................................4.7 Inadequate supply of infrastructure ......................................4.6 Foreign currency regulations ................................................2.5 Tax regulations ....................................................................2.3 Inefficient government bureaucracy .....................................1.9 Policy instability ...................................................................1.7 Poor public health ...............................................................0.1 Corruption ...........................................................................0.1 Crime and theft ...................................................................0.1 Government instability/coups ..............................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 334 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Singapore The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.2 ..............2 Intellectual property protection ............................... 6.2 ..............2 Diversion of public funds ........................................ 6.1 ..............6 Public trust in politicians ......................................... 6.2 ..............1 Irregular payments and bribes ................................ 6.5 ..............3 Judicial independence............................................ 5.7 ............20 Favoritism in decisions of government officials ....... 5.4 ..............3 Wastefulness of government spending ................... 5.9 ..............3 Burden of government regulation ........................... 5.2 ..............2 Efficiency of legal framework in settling disputes .... 6.2 ..............1 Efficiency of legal framework in challenging regs. ... 4.4 ............21 Transparency of government policymaking............. 6.1 ..............1 Business costs of terrorism .................................... 5.7 ............50 Business costs of crime and violence..................... 6.2 ..............4 Organized crime ..................................................... 6.6 ..............4 Reliability of police services .................................... 6.2 ..............8 Ethical behavior of firms ......................................... 6.2 ..............3 Strength of auditing and reporting standards ......... 6.2 ..............5 Efficacy of corporate boards .................................. 5.9 ..............5 Protection of minority shareholders’ interests ......... 5.5 ............10 Strength of investor protection, 0–10 (best)* .......... 9.3 ..............2 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.3 ..............5 Quality of roads ...................................................... 6.1 ..............6 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 6.7 ..............2 Quality of air transport infrastructure....................... 6.8 ..............1 Available airline seat km/week, millions* .......... 2,316.8 ............19 Quality of electricity supply ..................................... 6.7 ..............6 Mobile telephone subscriptions/100 pop.* ......... 155.6 ............17 Fixed telephone lines/100 pop.* ........................... 36.4 ............31 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 6.9 ..............7 Gross national savings, % GDP* .......................... 44.6 ..............8 Inflation, annual % change* .................................... 2.4 ..............1 General government debt, % GDP* ................... 103.8 ..........133 Country credit rating, 0–100 (best)* ...................... 90.9 ..............9 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 50.0 ............73 Business impact of tuberculosis ............................. 6.1 ............48 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.1 ............38 Infant mortality, deaths/1,000 live births* ................ 2.3 ..............6 Life expectancy, years*......................................... 82.1 ..............8 Quality of primary education ................................... 6.0 ..............3 Primary education enrollment, net %* ................ 100.0 ..............1 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 107.1 ............16 Tertiary education enrollment, gross %*................ 81.3 ............10 Quality of the education system ............................. 5.8 ..............4 Quality of math and science education .................. 6.3 ..............1 Quality of management schools ............................. 5.8 ..............6 Internet access in schools ...................................... 6.4 ..............6 Availability of research and training services ........... 5.5 ............12 Extent of staff training ............................................ 5.3 ..............7 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ................................. 2.5 ..............5 Agricultural policy costs.......................................... 4.8 ..............7 Prevalence of trade barriers ................................... 5.5 ..............3 Trade tariffs, % duty* .............................................. 0.3 ..............3 Prevalence of foreign ownership............................. 6.1 ..............2 Business impact of rules on FDI ............................. 6.3 ..............2 Burden of customs procedures .............................. 6.1 ..............1 Imports as a percentage of GDP* ...................... 167.5 ..............2 Degree of customer orientation .............................. 5.5 ............12 Buyer sophistication ............................................... 4.5 ............11 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 6.1 ..............2 Flexibility of wage determination ............................. 6.0 ..............7 Hiring and firing practices ....................................... 5.4 ..............3 Redundancy costs, weeks of salary* ...................... 3.0 ..............6 Effect of taxation on incentives to work .................. 6.0 ..............4 Pay and productivity............................................... 5.3 ..............4 Reliance on professional management ................... 6.0 ..............6 Country capacity to retain talent............................. 5.2 ..............8 Country capacity to attract talent ........................... 6.0 ..............2 Women in labor force, ratio to men* ..................... 0.79 ............76 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.1 ..............8 Affordability of financial services ............................. 5.9 ..............7 Financing through local equity market .................... 5.1 ..............7 Ease of access to loans ......................................... 4.5 ..............4 Venture capital availability ....................................... 4.3 ..............7 Soundness of banks .............................................. 6.6 ..............4 Regulation of securities exchanges ........................ 6.0 ..............5 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.2 ............15 Firm-level technology absorption ............................ 5.7 ............16 FDI and technology transfer ................................... 5.9 ..............2 Individuals using Internet, %* ............................... 73.0 ............33 Fixed broadband Internet subscriptions/100 pop.* . 25.7 ............23 Int’l Internet bandwidth, kb/s per user* .............. 580.7 ..............4 Mobile broadband subscriptions/100 pop.*........ 135.1 ..............1 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.3 ............43 Foreign market size index, 1–7 (best)* .................... 6.0 ............13 GDP (PPP$ billions)* .......................................... 348.7 ............39 Exports as a percentage of GDP* ...................... 178.1 ..............2 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............82 Local supplier quality.............................................. 5.1 ............29 State of cluster development.................................. 5.1 ............12 Nature of competitive advantage ............................ 5.7 ............12 Value chain breadth................................................ 5.0 ............14 Control of international distribution ......................... 4.1 ............57 Production process sophistication.......................... 5.6 ............15 Extent of marketing ................................................ 5.3 ............19 Willingness to delegate authority ............................ 4.7 ............22 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.0 ............18 Quality of scientific research institutions ................. 5.6 ............11 Company spending on R&D................................... 4.8 ............10 University-industry collaboration in R&D ................. 5.6 ..............5 Gov’t procurement of advanced tech products ...... 5.1 ..............4 Availability of scientists and engineers .................... 4.9 ............16 PCT patents, applications/million pop.* .............. 125.2 ............13 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.7 ............20 Extent of market dominance .................................. 5.1 ............13 Effectiveness of anti-monopoly policy ..................... 5.3 ..............8 Effect of taxation on incentives to invest................. 5.9 ..............4 Total tax rate, % profits* ....................................... 27.1 ............27 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 335 2.1: Country/Economy Profiles Slovak Republic Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 5.4 GDP (US$ billions) .......................................... 95.8 GDP per capita (US$) ................................. 17,706 GDP (PPP) as share (%) of world total ............ 0.15 Slovak Republic 50,000 Advanced economies 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 75 ..... 4.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 78 ......4.1 GCI 2012–2013 (out of 144) ..................................... 71 ......4.1 GCI 2011–2012 (out of 142) ..................................... 69 ......4.2 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................70 ......4.6 7 Innovation Institutions .............................................................. 110 ......3.3 Infrastructure ............................................................ 64 ......4.2 Macroeconomic environment ................................... 45 ......5.2 Health and primary education ................................... 84 ......5.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................51 ......4.3 Market size Higher education and training ................................... 56 ......4.6 Goods market efficiency .......................................... 66 ......4.4 Labor market efficiency ............................................ 97 ......3.9 Financial market development .................................. 39 ......4.5 Technological readiness ............................................ 52 ......4.4 Market size ............................................................... 58 ......4.0 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........73 ......3.6 Business sophistication ........................................... 65 ......4.0 Innovation ................................................................. 78 ......3.2 Slovak Republic Advanced economies The most problematic factors for doing business Inefficient government bureaucracy ...................................17.0 Corruption .........................................................................16.1 Restrictive labor regulations ...............................................14.5 Tax rates............................................................................10.3 Tax regulations ..................................................................10.1 Inadequate supply of infrastructure ......................................9.3 Policy instability ...................................................................7.7 Inadequately educated workforce ........................................6.3 Access to financing .............................................................2.8 Poor work ethic in national labor force ................................2.0 Insufficient capacity to innovate ...........................................1.8 Poor public health ...............................................................0.8 Government instability/coups ..............................................0.6 Crime and theft ...................................................................0.4 Foreign currency regulations ................................................0.2 Inflation ................................................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 336 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Slovak Republic The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.8 ............89 Intellectual property protection ............................... 3.8 ............61 Diversion of public funds ........................................ 2.2 ..........130 Public trust in politicians ......................................... 2.1 ..........121 Irregular payments and bribes ................................ 3.4 ..........100 Judicial independence............................................ 2.3 ..........130 Favoritism in decisions of government officials ....... 1.9 ..........141 Wastefulness of government spending ................... 2.3 ..........126 Burden of government regulation ........................... 2.4 ..........137 Efficiency of legal framework in settling disputes .... 2.4 ..........137 Efficiency of legal framework in challenging regs. ... 2.2 ..........136 Transparency of government policymaking............. 3.9 ............74 Business costs of terrorism .................................... 5.9 ............38 Business costs of crime and violence..................... 4.5 ............63 Organized crime ..................................................... 4.6 ............82 Reliability of police services .................................... 3.6 ..........106 Ethical behavior of firms ......................................... 3.4 ..........123 Strength of auditing and reporting standards ......... 5.2 ............36 Efficacy of corporate boards .................................. 4.4 ............83 Protection of minority shareholders’ interests ......... 3.8 ............91 Strength of investor protection, 0–10 (best)* .......... 4.7 ............98 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.2 ............73 Quality of roads ...................................................... 3.7 ............82 Quality of railroad infrastructure .............................. 4.4 ............24 Quality of port infrastructure ................................... 3.5 ..........100 Quality of air transport infrastructure....................... 3.4 ..........115 Available airline seat km/week, millions* ............... 15.8 ..........129 Quality of electricity supply ..................................... 6.2 ............32 Mobile telephone subscriptions/100 pop.* ......... 113.9 ............67 Fixed telephone lines/100 pop.* ........................... 17.7 ............68 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.0 ............73 Gross national savings, % GDP* .......................... 20.6 ............64 Inflation, annual % change* .................................... 1.5 ..............1 General government debt, % GDP* ..................... 54.9 ............91 Country credit rating, 0–100 (best)* ...................... 74.2 ............29 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 6.8 ............19 Business impact of tuberculosis ............................. 6.5 ............23 HIV prevalence, % adult pop.* ............................. <0.1 ..............1 Business impact of HIV/AIDS ................................. 6.6 ............12 Infant mortality, deaths/1,000 live births* ................ 6.3 ............41 Life expectancy, years*......................................... 76.1 ............48 Quality of primary education ................................... 4.4 ............51 Primary education enrollment, net %* .................... n/a ...........n/a 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 93.9 ............58 Tertiary education enrollment, gross %*................ 55.1 ............51 Quality of the education system ............................. 2.8 ..........125 Quality of math and science education .................. 4.0 ............75 Quality of management schools ............................. 3.8 ..........102 Internet access in schools ...................................... 5.5 ............31 Availability of research and training services ........... 4.5 ............45 Extent of staff training ............................................ 3.8 ............90 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 18.5 ............87 Agricultural policy costs.......................................... 3.3 ..........115 Prevalence of trade barriers ................................... 4.6 ............38 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 6.0 ..............6 Business impact of rules on FDI ............................. 4.5 ............64 Burden of customs procedures .............................. 4.5 ............48 Imports as a percentage of GDP* ........................ 92.9 ............10 Degree of customer orientation .............................. 4.6 ............64 Buyer sophistication ............................................... 2.7 ..........126 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ..........105 Flexibility of wage determination ............................. 4.6 ..........102 Hiring and firing practices ....................................... 2.9 ..........131 Redundancy costs, weeks of salary* .................... 18.8 ............89 Effect of taxation on incentives to work .................. 2.9 ..........119 Pay and productivity............................................... 4.4 ............32 Reliance on professional management ................... 4.2 ............74 Country capacity to retain talent............................. 2.4 ..........130 Country capacity to attract talent ........................... 2.6 ..........117 Women in labor force, ratio to men* ..................... 0.80 ............73 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.1 ............39 Affordability of financial services ............................. 5.2 ............26 Financing through local equity market .................... 2.8 ..........107 Ease of access to loans ......................................... 3.3 ............39 Venture capital availability ....................................... 2.8 ............57 Soundness of banks .............................................. 5.9 ............20 Regulation of securities exchanges ........................ 3.8 ............85 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.2 ............50 Firm-level technology absorption ............................ 4.8 ............57 FDI and technology transfer ................................... 5.1 ............18 Individuals using Internet, %* ............................... 77.9 ............26 Fixed broadband Internet subscriptions/100 pop.* . 15.5 ............47 Int’l Internet bandwidth, kb/s per user* ................ 11.8 ............93 Mobile broadband subscriptions/100 pop.*.......... 53.6 ............36 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.7 ............61 Foreign market size index, 1–7 (best)* .................... 5.1 ............41 GDP (PPP$ billions)* .......................................... 133.1 ............62 Exports as a percentage of GDP* ........................ 97.9 ..............7 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............52 Local supplier quality.............................................. 4.8 ............42 State of cluster development.................................. 3.8 ............69 Nature of competitive advantage ............................ 2.9 ..........114 Value chain breadth................................................ 3.9 ............66 Control of international distribution ......................... 3.4 ..........123 Production process sophistication.......................... 4.2 ............49 Extent of marketing ................................................ 4.6 ............47 Willingness to delegate authority ............................ 3.5 ............94 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............89 Quality of scientific research institutions ................. 3.9 ............65 Company spending on R&D................................... 3.1 ............78 University-industry collaboration in R&D ................. 3.4 ............84 Gov’t procurement of advanced tech products ...... 2.9 ..........117 Availability of scientists and engineers .................... 4.0 ............76 PCT patents, applications/million pop.* .................. 9.2 ............38 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.5 ............32 Extent of market dominance .................................. 3.5 ............96 Effectiveness of anti-monopoly policy ..................... 3.7 ............98 Effect of taxation on incentives to invest................. 3.2 ..........114 Total tax rate, % profits* ....................................... 47.2 ..........105 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 337 2.1: Country/Economy Profiles Slovenia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 2.1 GDP (US$ billions) .......................................... 46.9 GDP per capita (US$) ................................. 22,756 GDP (PPP) as share (%) of world total ............ 0.07 Slovenia 50,000 Advanced economies 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 70 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 62 ......4.3 GCI 2012–2013 (out of 144) ..................................... 56 ......4.3 GCI 2011–2012 (out of 142) ..................................... 57 ......4.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................49 ......4.9 7 Innovation Institutions ................................................................ 75 ......3.8 Infrastructure ............................................................ 35 ......4.9 Macroeconomic environment ................................... 98 ......4.3 Health and primary education ................................... 12 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................64 ......4.2 Market size Higher education and training ................................... 25 ......5.3 Goods market efficiency .......................................... 61 ......4.4 Labor market efficiency ............................................ 99 ......3.9 Financial market development ................................ 133 ......2.9 Technological readiness ............................................ 33 ......5.0 Market size ............................................................... 81 ......3.5 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........50 ......3.9 Business sophistication ........................................... 59 ......4.1 Innovation ................................................................. 42 ......3.6 Slovenia Advanced economies The most problematic factors for doing business Access to financing ...........................................................20.5 Inefficient government bureaucracy ...................................16.5 Tax rates............................................................................12.6 Restrictive labor regulations ...............................................12.4 Corruption ...........................................................................8.9 Tax regulations ....................................................................7.6 Poor work ethic in national labor force ................................5.9 Policy instability ...................................................................4.7 Government instability/coups ..............................................4.5 Inadequately educated workforce ........................................2.3 Insufficient capacity to innovate ...........................................1.5 Inadequate supply of infrastructure ......................................1.2 Inflation ................................................................................0.6 Crime and theft ...................................................................0.3 Poor public health ...............................................................0.2 Foreign currency regulations ................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 338 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Slovenia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.2 ............66 Intellectual property protection ............................... 4.1 ............47 Diversion of public funds ........................................ 3.1 ............79 Public trust in politicians ......................................... 1.9 ..........133 Irregular payments and bribes ................................ 4.7 ............42 Judicial independence............................................ 3.4 ............91 Favoritism in decisions of government officials ....... 2.6 ..........111 Wastefulness of government spending ................... 2.2 ..........133 Burden of government regulation ........................... 2.5 ..........133 Efficiency of legal framework in settling disputes .... 2.6 ..........131 Efficiency of legal framework in challenging regs. ... 2.3 ..........133 Transparency of government policymaking............. 4.2 ............55 Business costs of terrorism .................................... 6.6 ..............2 Business costs of crime and violence..................... 5.5 ............21 Organized crime ..................................................... 5.5 ............41 Reliability of police services .................................... 4.9 ............40 Ethical behavior of firms ......................................... 3.8 ............81 Strength of auditing and reporting standards ......... 4.3 ............91 Efficacy of corporate boards .................................. 3.7 ..........134 Protection of minority shareholders’ interests ......... 3.4 ..........124 Strength of investor protection, 0–10 (best)* .......... 7.3 ............14 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.1 ............34 Quality of roads ...................................................... 4.9 ............38 Quality of railroad infrastructure .............................. 3.4 ............46 Quality of port infrastructure ................................... 5.0 ............39 Quality of air transport infrastructure....................... 4.4 ............67 Available airline seat km/week, millions* ............... 14.1 ..........131 Quality of electricity supply ..................................... 6.2 ............30 Mobile telephone subscriptions/100 pop.* ......... 110.2 ............75 Fixed telephone lines/100 pop.* ........................... 38.2 ............28 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*............... –14.2 ..........143 Gross national savings, % GDP* .......................... 23.6 ............48 Inflation, annual % change* .................................... 1.6 ..............1 General government debt, % GDP* ..................... 73.0 ..........115 Country credit rating, 0–100 (best)* ...................... 60.0 ............49 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 7.5 ............22 Business impact of tuberculosis ............................. 6.7 ............12 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 6.6 ..............9 Infant mortality, deaths/1,000 live births* ................ 2.5 ..............9 Life expectancy, years*......................................... 80.1 ............27 Quality of primary education ................................... 5.2 ............19 Primary education enrollment, net %* .................. 97.7 ............37 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 97.6 ............47 Tertiary education enrollment, gross %*................ 86.0 ..............7 Quality of the education system ............................. 4.1 ............48 Quality of math and science education .................. 5.2 ............15 Quality of management schools ............................. 4.4 ............62 Internet access in schools ...................................... 6.0 ............20 Availability of research and training services ........... 4.4 ............51 Extent of staff training ............................................ 3.7 ............98 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 2 ..............3 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 3.4 ..........107 Prevalence of trade barriers ................................... 4.6 ............39 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 3.2 ..........134 Business impact of rules on FDI ............................. 2.9 ..........136 Burden of customs procedures .............................. 4.9 ............30 Imports as a percentage of GDP* ........................ 80.8 ............22 Degree of customer orientation .............................. 4.9 ............45 Buyer sophistication ............................................... 2.9 ..........116 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.7 ..........121 Flexibility of wage determination ............................. 3.9 ..........127 Hiring and firing practices ....................................... 2.4 ..........140 Redundancy costs, weeks of salary* .................... 10.7 ............46 Effect of taxation on incentives to work .................. 2.5 ..........137 Pay and productivity............................................... 3.5 ..........108 Reliance on professional management ................... 3.8 ............92 Country capacity to retain talent............................. 2.9 ..........109 Country capacity to attract talent ........................... 2.5 ..........120 Women in labor force, ratio to men* ..................... 0.90 ............30 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.6 ..........125 Affordability of financial services ............................. 3.5 ..........120 Financing through local equity market .................... 2.3 ..........122 Ease of access to loans ......................................... 1.6 ..........140 Venture capital availability ....................................... 2.0 ..........125 Soundness of banks .............................................. 2.2 ..........144 Regulation of securities exchanges ........................ 3.7 ............88 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.5 ............40 Firm-level technology absorption ............................ 4.9 ............51 FDI and technology transfer ................................... 3.9 ..........114 Individuals using Internet, %* ............................... 72.7 ............34 Fixed broadband Internet subscriptions/100 pop.* . 25.0 ............27 Int’l Internet bandwidth, kb/s per user* .............. 152.7 ............16 Mobile broadband subscriptions/100 pop.*.......... 41.8 ............50 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.1 ............91 Foreign market size index, 1–7 (best)* .................... 4.6 ............68 GDP (PPP$ billions)* ............................................ 57.4 ............85 Exports as a percentage of GDP* ........................ 88.1 ............14 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............73 Local supplier quality.............................................. 4.9 ............36 State of cluster development.................................. 3.4 ............96 Nature of competitive advantage ............................ 4.1 ............38 Value chain breadth................................................ 3.7 ............80 Control of international distribution ......................... 4.3 ............47 Production process sophistication.......................... 4.1 ............59 Extent of marketing ................................................ 4.1 ............76 Willingness to delegate authority ............................ 3.9 ............53 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............75 Quality of scientific research institutions ................. 4.7 ............33 Company spending on R&D................................... 3.1 ............72 University-industry collaboration in R&D ................. 4.0 ............45 Gov’t procurement of advanced tech products ...... 3.0 ..........108 Availability of scientists and engineers .................... 3.9 ............80 PCT patents, applications/million pop.* ................ 63.0 ............23 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.1 ............66 Extent of market dominance .................................. 3.7 ............74 Effectiveness of anti-monopoly policy ..................... 3.9 ............77 Effect of taxation on incentives to invest................. 2.8 ..........134 Total tax rate, % profits* ....................................... 32.5 ............48 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 339 2.1: Country/Economy Profiles South Africa Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 53.0 GDP (US$ billions) ........................................ 350.8 GDP per capita (US$) ................................... 6,621 GDP (PPP) as share (%) of world total ............ 0.69 South Africa 12,000 Sub-Saharan Africa 10,000 8,000 6,000 4,000 2,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 56 ..... 4.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 53 ......4.4 GCI 2012–2013 (out of 144) ..................................... 52 ......4.4 GCI 2011–2012 (out of 142) ..................................... 50 ......4.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................89 ......4.3 7 Innovation Institutions ................................................................ 36 ......4.5 Infrastructure ............................................................ 60 ......4.3 Macroeconomic environment ................................... 89 ......4.5 Health and primary education ................................. 132 ......4.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................43 ......4.4 Market size Higher education and training ................................... 86 ......4.0 Goods market efficiency .......................................... 32 ......4.7 Labor market efficiency .......................................... 113 ......3.8 Financial market development .................................... 7 ......5.4 Technological readiness ............................................ 66 ......3.9 Market size ............................................................... 25 ......4.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........37 ......4.1 Business sophistication ........................................... 31 ......4.5 Innovation ................................................................. 43 ......3.6 South Africa Sub-Saharan Africa The most problematic factors for doing business Restrictive labor regulations ...............................................19.8 Inadequately educated workforce ......................................16.9 Inefficient government bureaucracy ...................................14.8 Corruption .........................................................................11.0 Inadequate supply of infrastructure ......................................9.8 Policy instability ...................................................................7.4 Poor work ethic in national labor force ................................5.2 Insufficient capacity to innovate ...........................................3.0 Crime and theft ...................................................................2.5 Access to financing .............................................................2.2 Foreign currency regulations ................................................2.1 Inflation ................................................................................1.5 Tax regulations ....................................................................1.5 Poor public health ...............................................................1.2 Tax rates..............................................................................1.0 Government instability/coups ..............................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 340 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles South Africa The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.6 ............20 Intellectual property protection ............................... 5.3 ............22 Diversion of public funds ........................................ 2.8 ............96 Public trust in politicians ......................................... 2.6 ............90 Irregular payments and bribes ................................ 4.5 ............48 Judicial independence............................................ 5.4 ............24 Favoritism in decisions of government officials ....... 2.6 ..........104 Wastefulness of government spending ................... 2.8 ............89 Burden of government regulation ........................... 2.8 ..........120 Efficiency of legal framework in settling disputes .... 5.2 ............15 Efficiency of legal framework in challenging regs. ... 4.9 ..............9 Transparency of government policymaking............. 4.5 ............35 Business costs of terrorism .................................... 6.0 ............30 Business costs of crime and violence..................... 2.8 ..........133 Organized crime ..................................................... 4.3 ............99 Reliability of police services .................................... 3.6 ..........102 Ethical behavior of firms ......................................... 4.7 ............35 Strength of auditing and reporting standards ......... 6.7 ..............1 Efficacy of corporate boards .................................. 6.0 ..............3 Protection of minority shareholders’ interests ......... 6.1 ..............2 Strength of investor protection, 0–10 (best)* .......... 8.0 ............10 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.5 ............59 Quality of roads ...................................................... 4.9 ............37 Quality of railroad infrastructure .............................. 3.4 ............44 Quality of port infrastructure ................................... 4.9 ............46 Quality of air transport infrastructure....................... 6.0 ............11 Available airline seat km/week, millions* .......... 1,117.0 ............28 Quality of electricity supply ..................................... 3.6 ............99 Mobile telephone subscriptions/100 pop.* ......... 147.5 ............25 Fixed telephone lines/100 pop.* ............................. 9.2 ............90 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.3 ............97 Gross national savings, % GDP* .......................... 13.5 ..........119 Inflation, annual % change* .................................... 5.8 ..........102 General government debt, % GDP* ..................... 45.2 ............77 Country credit rating, 0–100 (best)* ...................... 59.1 ............51 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 32.5 ............27 Business impact of malaria .................................... 5.1 ............30 Tuberculosis cases/100,000 pop.* .................. 1,003.0 ..........143 Business impact of tuberculosis ............................. 3.7 ..........136 HIV prevalence, % adult pop.* ............................. 17.9 ..........140 Business impact of HIV/AIDS ................................. 3.4 ..........136 Infant mortality, deaths/1,000 live births* .............. 33.3 ..........105 Life expectancy, years*......................................... 56.1 ..........129 Quality of primary education ................................... 2.4 ..........133 Primary education enrollment, net %* .................. 85.0 ..........118 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 101.9 ............24 Tertiary education enrollment, gross %*................ 19.2 ............93 Quality of the education system ............................. 2.2 ..........140 Quality of math and science education .................. 1.9 ..........144 Quality of management schools ............................. 5.2 ............24 Internet access in schools ...................................... 3.2 ..........117 Availability of research and training services ........... 4.5 ............44 Extent of staff training ............................................ 4.9 ............18 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 19.0 ............90 Agricultural policy costs.......................................... 3.9 ............65 Prevalence of trade barriers ................................... 4.8 ............23 Trade tariffs, % duty* .............................................. 6.0 ............76 Prevalence of foreign ownership............................. 5.1 ............42 Business impact of rules on FDI ............................. 4.0 ..........104 Burden of customs procedures .............................. 4.1 ............62 Imports as a percentage of GDP* ........................ 40.7 ............85 Degree of customer orientation .............................. 4.6 ............67 Buyer sophistication ............................................... 4.0 ............31 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 2.5 ..........144 Flexibility of wage determination ............................. 2.7 ..........139 Hiring and firing practices ....................................... 2.1 ..........143 Redundancy costs, weeks of salary* ...................... 9.3 ............33 Effect of taxation on incentives to work .................. 4.5 ............15 Pay and productivity............................................... 2.7 ..........136 Reliance on professional management ................... 5.5 ............21 Country capacity to retain talent............................. 3.7 ............50 Country capacity to attract talent ........................... 3.9 ............39 Women in labor force, ratio to men* ..................... 0.77 ............84 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.1 ..............6 Affordability of financial services ............................. 5.3 ............21 Financing through local equity market .................... 5.4 ..............3 Ease of access to loans ......................................... 3.5 ............32 Venture capital availability ....................................... 3.2 ............37 Soundness of banks .............................................. 6.5 ..............6 Regulation of securities exchanges ........................ 6.4 ..............1 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.5 ............39 Firm-level technology absorption ............................ 5.4 ............29 FDI and technology transfer ................................... 4.8 ............50 Individuals using Internet, %* ............................... 48.9 ............69 Fixed broadband Internet subscriptions/100 pop.* ... 3.1 ............89 Int’l Internet bandwidth, kb/s per user* .................. 3.7 ..........126 Mobile broadband subscriptions/100 pop.*.......... 25.2 ............74 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.8 ............24 Foreign market size index, 1–7 (best)* .................... 5.3 ............34 GDP (PPP$ billions)* .......................................... 596.5 ............25 Exports as a percentage of GDP* ........................ 31.3 ............92 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............47 Local supplier quality.............................................. 4.9 ............38 State of cluster development.................................. 4.2 ............44 Nature of competitive advantage ............................ 3.7 ............62 Value chain breadth................................................ 3.8 ............68 Control of international distribution ......................... 4.4 ............35 Production process sophistication.......................... 4.5 ............38 Extent of marketing ................................................ 5.2 ............24 Willingness to delegate authority ............................ 4.5 ............27 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.3 ............35 Quality of scientific research institutions ................. 4.7 ............34 Company spending on R&D................................... 3.4 ............48 University-industry collaboration in R&D ................. 4.5 ............31 Gov’t procurement of advanced tech products ...... 3.0 ..........112 Availability of scientists and engineers .................... 3.5 ..........102 PCT patents, applications/million pop.* .................. 6.5 ............45 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.5 ............36 Extent of market dominance .................................. 4.0 ............48 Effectiveness of anti-monopoly policy ..................... 5.1 ............14 Effect of taxation on incentives to invest................. 4.3 ............26 Total tax rate, % profits* ....................................... 30.1 ............41 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 341 2.1: Country/Economy Profiles Spain Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 46.6 GDP (US$ billions) ..................................... 1,358.7 GDP per capita (US$) ................................. 29,150 GDP (PPP) as share (%) of world total ............ 1.60 Spain 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 35 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 35 ......4.6 GCI 2012–2013 (out of 144) ..................................... 36 ......4.6 GCI 2011–2012 (out of 142) ..................................... 36 ......4.5 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................42 ......5.0 7 Innovation Institutions ................................................................ 73 ......3.8 Infrastructure .............................................................. 9 ......6.0 Macroeconomic environment ................................. 121 ......3.8 Health and primary education ................................... 34 ......6.3 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................31 ......4.7 Market size Higher education and training ................................... 29 ......5.2 Goods market efficiency .......................................... 75 ......4.3 Labor market efficiency .......................................... 100 ......3.9 Financial market development .................................. 91 ......3.8 Technological readiness ............................................ 27 ......5.4 Market size ............................................................... 14 ......5.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........39 ......4.1 Business sophistication ........................................... 38 ......4.4 Innovation ................................................................. 37 ......3.7 Spain Advanced economies The most problematic factors for doing business Access to financing ...........................................................26.7 Restrictive labor regulations ...............................................14.4 Inefficient government bureaucracy ...................................13.6 Tax rates............................................................................12.8 Corruption ...........................................................................9.0 Insufficient capacity to innovate ...........................................8.0 Tax regulations ....................................................................6.7 Poor work ethic in national labor force ................................2.9 Inadequately educated workforce ........................................2.5 Policy instability ...................................................................1.5 Government instability/coups ..............................................0.7 Inadequate supply of infrastructure ......................................0.4 Poor public health ...............................................................0.4 Inflation ................................................................................0.3 Foreign currency regulations ................................................0.2 Crime and theft ...................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 342 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Spain The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.3 ............56 Intellectual property protection ............................... 3.6 ............77 Diversion of public funds ........................................ 2.8 ............90 Public trust in politicians ......................................... 2.2 ..........117 Irregular payments and bribes ................................ 4.4 ............50 Judicial independence............................................ 3.2 ............97 Favoritism in decisions of government officials ....... 3.0 ............78 Wastefulness of government spending ................... 2.5 ..........113 Burden of government regulation ........................... 2.8 ..........123 Efficiency of legal framework in settling disputes .... 3.4 ............90 Efficiency of legal framework in challenging regs. ... 3.2 ............86 Transparency of government policymaking............. 3.6 ..........105 Business costs of terrorism .................................... 5.0 ............83 Business costs of crime and violence..................... 5.2 ............37 Organized crime ..................................................... 5.5 ............44 Reliability of police services .................................... 5.8 ............20 Ethical behavior of firms ......................................... 3.8 ............84 Strength of auditing and reporting standards ......... 4.5 ............81 Efficacy of corporate boards .................................. 4.5 ............74 Protection of minority shareholders’ interests ......... 3.7 ............94 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.9 ............13 Quality of roads ...................................................... 5.9 ............11 Quality of railroad infrastructure .............................. 6.0 ..............4 Quality of port infrastructure ................................... 5.8 ..............9 Quality of air transport infrastructure....................... 6.0 ............10 Available airline seat km/week, millions* .......... 3,755.5 ............10 Quality of electricity supply ..................................... 6.3 ............21 Mobile telephone subscriptions/100 pop.* ......... 106.9 ............80 Fixed telephone lines/100 pop.* ........................... 40.7 ............23 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –7.2 ..........128 Gross national savings, % GDP* .......................... 18.9 ............75 Inflation, annual % change* .................................... 1.5 ..............1 General government debt, % GDP* ..................... 93.9 ..........130 Country credit rating, 0–100 (best)* ...................... 59.7 ............50 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 14.0 ............33 Business impact of tuberculosis ............................. 6.8 ..............6 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 6.5 ............15 Infant mortality, deaths/1,000 live births* ................ 3.8 ............25 Life expectancy, years*......................................... 82.4 ..............7 Quality of primary education ................................... 4.1 ............62 Primary education enrollment, net %* .................. 99.7 ..............7 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 130.8 ..............2 Tertiary education enrollment, gross %*................ 84.6 ..............8 Quality of the education system ............................. 3.4 ............88 Quality of math and science education .................. 3.9 ............85 Quality of management schools ............................. 5.9 ..............3 Internet access in schools ...................................... 4.8 ............51 Availability of research and training services ........... 4.7 ............35 Extent of staff training ............................................ 3.7 ............96 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 23.0 ............99 Agricultural policy costs.......................................... 3.7 ............84 Prevalence of trade barriers ................................... 4.4 ............61 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 4.9 ............48 Business impact of rules on FDI ............................. 4.2 ............90 Burden of customs procedures .............................. 4.8 ............34 Imports as a percentage of GDP* ........................ 31.6 ..........114 Degree of customer orientation .............................. 4.5 ............71 Buyer sophistication ............................................... 3.4 ............68 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............93 Flexibility of wage determination ............................. 4.2 ..........117 Hiring and firing practices ....................................... 3.3 ..........116 Redundancy costs, weeks of salary* .................... 17.4 ............86 Effect of taxation on incentives to work .................. 2.8 ..........130 Pay and productivity............................................... 3.2 ..........127 Reliance on professional management ................... 4.3 ............59 Country capacity to retain talent............................. 2.9 ..........107 Country capacity to attract talent ........................... 2.8 ..........103 Women in labor force, ratio to men* ..................... 0.85 ............57 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.9 ............51 Affordability of financial services ............................. 4.2 ............62 Financing through local equity market .................... 2.9 ..........102 Ease of access to loans ......................................... 1.7 ..........132 Venture capital availability ....................................... 2.3 ..........100 Soundness of banks .............................................. 4.2 ..........112 Regulation of securities exchanges ........................ 4.2 ............66 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.6 ............37 Firm-level technology absorption ............................ 4.9 ............52 FDI and technology transfer ................................... 4.7 ............65 Individuals using Internet, %* ............................... 71.6 ............36 Fixed broadband Internet subscriptions/100 pop.* . 25.6 ............25 Int’l Internet bandwidth, kb/s per user* .............. 102.4 ............28 Mobile broadband subscriptions/100 pop.*.......... 67.1 ............23 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.3 ............14 Foreign market size index, 1–7 (best)* .................... 5.8 ............19 GDP (PPP$ billions)* ....................................... 1,391.3 ............14 Exports as a percentage of GDP* ........................ 33.9 ............82 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.0 ............26 Local supplier quality.............................................. 5.0 ............32 State of cluster development.................................. 4.0 ............55 Nature of competitive advantage ............................ 4.1 ............40 Value chain breadth................................................ 4.7 ............23 Control of international distribution ......................... 4.2 ............51 Production process sophistication.......................... 4.6 ............34 Extent of marketing ................................................ 4.7 ............39 Willingness to delegate authority ............................ 3.5 ............96 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.8 ............60 Quality of scientific research institutions ................. 4.5 ............37 Company spending on R&D................................... 3.3 ............52 University-industry collaboration in R&D ................. 3.8 ............57 Gov’t procurement of advanced tech products ...... 3.1 ..........102 Availability of scientists and engineers .................... 5.2 ............11 PCT patents, applications/million pop.* ................ 39.6 ............26 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.5 ............35 Extent of market dominance .................................. 4.3 ............30 Effectiveness of anti-monopoly policy ..................... 4.3 ............54 Effect of taxation on incentives to invest................. 2.9 ..........130 Total tax rate, % profits* ....................................... 58.6 ..........127 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 343 2.1: Country/Economy Profiles Sri Lanka Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 20.8 GDP (US$ billions) .......................................... 65.8 GDP per capita (US$) ................................... 3,162 GDP (PPP) as share (%) of world total ............ 0.16 Sri Lanka 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 1994 Emerging and Developing Asia 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 73 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 65 ......4.2 GCI 2012–2013 (out of 144) ..................................... 68 ......4.2 GCI 2011–2012 (out of 142) ..................................... 52 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................75 ......4.5 7 Innovation Institutions ................................................................ 62 ......3.9 Infrastructure ............................................................ 75 ......4.0 Macroeconomic environment ................................. 114 ......4.0 Health and primary education ................................... 45 ......6.1 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................75 ......4.0 Market size Higher education and training ................................... 72 ......4.3 Goods market efficiency .......................................... 39 ......4.6 Labor market efficiency .......................................... 135 ......3.3 Financial market development .................................. 47 ......4.4 Technological readiness ............................................ 94 ......3.2 Market size ............................................................... 61 ......3.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........43 ......4.0 Business sophistication ........................................... 39 ......4.4 Innovation ................................................................. 46 ......3.6 Sri Lanka Emerging and Developing Asia The most problematic factors for doing business Access to financing ...........................................................13.1 Inefficient government bureaucracy ...................................10.9 Tax regulations ....................................................................9.3 Inflation ................................................................................8.6 Tax rates..............................................................................8.4 Corruption ...........................................................................8.2 Restrictive labor regulations .................................................7.1 Poor work ethic in national labor force ................................7.0 Policy instability ...................................................................6.7 Inadequate supply of infrastructure ......................................4.6 Crime and theft ...................................................................3.8 Foreign currency regulations ................................................3.7 Insufficient capacity to innovate ...........................................3.5 Inadequately educated workforce ........................................2.6 Government instability/coups ..............................................2.4 Poor public health ...............................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 344 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Sri Lanka The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.3 ............57 Intellectual property protection ............................... 3.9 ............54 Diversion of public funds ........................................ 3.0 ............85 Public trust in politicians ......................................... 2.7 ............85 Irregular payments and bribes ................................ 3.5 ............91 Judicial independence............................................ 3.6 ............72 Favoritism in decisions of government officials ....... 2.7 ............98 Wastefulness of government spending ................... 3.5 ............50 Burden of government regulation ........................... 3.3 ............91 Efficiency of legal framework in settling disputes .... 4.6 ............28 Efficiency of legal framework in challenging regs. ... 3.3 ............79 Transparency of government policymaking............. 3.8 ............88 Business costs of terrorism .................................... 6.2 ............17 Business costs of crime and violence..................... 4.8 ............54 Organized crime ..................................................... 4.8 ............67 Reliability of police services .................................... 3.7 ..........100 Ethical behavior of firms ......................................... 3.8 ............82 Strength of auditing and reporting standards ......... 4.9 ............55 Efficacy of corporate boards .................................. 5.1 ............33 Protection of minority shareholders’ interests ......... 4.8 ............28 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.0 ............37 Quality of roads ...................................................... 5.1 ............32 Quality of railroad infrastructure .............................. 3.7 ............42 Quality of port infrastructure ................................... 4.2 ............69 Quality of air transport infrastructure....................... 4.8 ............56 Available airline seat km/week, millions* ............. 282.7 ............55 Quality of electricity supply ..................................... 4.8 ............74 Mobile telephone subscriptions/100 pop.* ........... 95.5 ..........102 Fixed telephone lines/100 pop.* ........................... 12.7 ............81 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.8 ..........120 Gross national savings, % GDP* .......................... 28.5 ............28 Inflation, annual % change* .................................... 6.9 ..........117 General government debt, % GDP* ..................... 78.3 ..........119 Country credit rating, 0–100 (best)* ...................... 34.3 ............95 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.4 ............14 Business impact of malaria .................................... 6.0 ............10 Tuberculosis cases/100,000 pop.* ....................... 66.0 ............81 Business impact of tuberculosis ............................. 6.0 ............55 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 5.9 ............52 Infant mortality, deaths/1,000 live births* ................ 8.3 ............51 Life expectancy, years*......................................... 74.1 ............71 Quality of primary education ................................... 4.8 ............32 Primary education enrollment, net %* .................. 93.8 ............72 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 99.3 ............38 Tertiary education enrollment, gross %*................ 17.0 ............98 Quality of the education system ............................. 4.6 ............22 Quality of math and science education .................. 4.8 ............29 Quality of management schools ............................. 4.8 ............35 Internet access in schools ...................................... 3.6 ..........101 Availability of research and training services ........... 4.4 ............55 Extent of staff training ............................................ 4.1 ............56 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 8.0 ............39 Agricultural policy costs.......................................... 4.0 ............44 Prevalence of trade barriers ................................... 4.1 ..........105 Trade tariffs, % duty* ............................................ 11.3 ..........117 Prevalence of foreign ownership............................. 4.8 ............57 Business impact of rules on FDI ............................. 5.2 ............19 Burden of customs procedures .............................. 4.0 ............69 Imports as a percentage of GDP* ........................ 39.7 ............89 Degree of customer orientation .............................. 5.2 ............27 Buyer sophistication ............................................... 4.1 ............22 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.7 ............39 Flexibility of wage determination ............................. 5.4 ............41 Hiring and firing practices ....................................... 3.0 ..........124 Redundancy costs, weeks of salary* .................... 58.5 ..........140 Effect of taxation on incentives to work .................. 3.9 ............50 Pay and productivity............................................... 4.4 ............37 Reliance on professional management ................... 4.8 ............32 Country capacity to retain talent............................. 2.9 ..........108 Country capacity to attract talent ........................... 2.5 ..........122 Women in labor force, ratio to men* ..................... 0.48 ..........128 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.3 ............31 Affordability of financial services ............................. 4.7 ............45 Financing through local equity market .................... 4.8 ............15 Ease of access to loans ......................................... 2.9 ............65 Venture capital availability ....................................... 2.7 ............66 Soundness of banks .............................................. 5.8 ............25 Regulation of securities exchanges ........................ 4.4 ............56 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.9 ............70 Firm-level technology absorption ............................ 4.9 ............53 FDI and technology transfer ................................... 4.8 ............53 Individuals using Internet, %* ............................... 21.9 ..........100 Fixed broadband Internet subscriptions/100 pop.* ... 2.0 ............96 Int’l Internet bandwidth, kb/s per user* .................. 5.0 ..........117 Mobile broadband subscriptions/100 pop.*............ 7.8 ..........101 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.8 ............57 Foreign market size index, 1–7 (best)* .................... 4.3 ............78 GDP (PPP$ billions)* .......................................... 136.0 ............61 Exports as a percentage of GDP* ........................ 22.1 ..........125 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.3 ............13 Local supplier quality.............................................. 5.0 ............33 State of cluster development.................................. 3.8 ............67 Nature of competitive advantage ............................ 3.7 ............55 Value chain breadth................................................ 4.1 ............45 Control of international distribution ......................... 4.6 ............23 Production process sophistication.......................... 4.0 ............63 Extent of marketing ................................................ 5.1 ............25 Willingness to delegate authority ............................ 3.8 ............61 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.6 ............29 Quality of scientific research institutions ................. 4.1 ............47 Company spending on R&D................................... 3.3 ............50 University-industry collaboration in R&D ................. 3.1 ..........110 Gov’t procurement of advanced tech products ...... 3.8 ............37 Availability of scientists and engineers .................... 4.9 ............20 PCT patents, applications/million pop.* .................. 0.6 ............76 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.8 ............16 Extent of market dominance .................................. 4.0 ............50 Effectiveness of anti-monopoly policy ..................... 4.2 ............57 Effect of taxation on incentives to invest................. 3.8 ............66 Total tax rate, % profits* ....................................... 55.1 ..........124 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 345 2.1: Country/Economy Profiles Suriname Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 0.5 GDP (US$ billions) ............................................ 5.1 GDP per capita (US$) ................................... 9,240 GDP (PPP) as share (%) of world total ............ 0.01 Suriname 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 110 ..... 3.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 106 ......3.8 GCI 2012–2013 (out of 144) ................................... 114 ......3.7 GCI 2011–2012 (out of 142) ................................... 112 ......3.7 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (39.4%) .......................................86 ......4.4 7 Innovation Institutions .............................................................. 104 ......3.4 Infrastructure ............................................................ 86 ......3.6 Macroeconomic environment ................................... 59 ......4.8 Health and primary education ................................... 73 ......5.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) ...................................121 ......3.4 Market size Higher education and training ................................. 105 ......3.5 Goods market efficiency ........................................ 129 ......3.7 Labor market efficiency .......................................... 117 ......3.7 Financial market development ................................ 118 ......3.4 Technological readiness ............................................ 72 ......3.7 Market size ............................................................. 137 ......2.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.6%) .........123 ......3.0 Business sophistication ......................................... 122 ......3.4 Innovation ............................................................... 127 ......2.6 Suriname Latin America and the Caribbean The most problematic factors for doing business Inefficient government bureaucracy ...................................19.4 Corruption .........................................................................16.7 Access to financing ...........................................................13.7 Inadequately educated workforce ......................................11.3 Poor work ethic in national labor force ................................7.0 Insufficient capacity to innovate ...........................................6.7 Inflation ................................................................................3.9 Tax rates..............................................................................3.7 Foreign currency regulations ................................................3.0 Inadequate supply of infrastructure ......................................3.0 Policy instability ...................................................................3.0 Restrictive labor regulations .................................................3.0 Crime and theft ...................................................................2.6 Tax regulations ....................................................................1.7 Government instability/coups ..............................................0.9 Poor public health ...............................................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 346 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Suriname The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.3 ..........122 Intellectual property protection ............................... 2.7 ..........128 Diversion of public funds ........................................ 2.9 ............88 Public trust in politicians ......................................... 2.0 ..........127 Irregular payments and bribes ................................ 3.4 ..........104 Judicial independence............................................ 3.8 ............64 Favoritism in decisions of government officials ....... 2.3 ..........129 Wastefulness of government spending ................... 2.4 ..........122 Burden of government regulation ........................... 3.2 ............93 Efficiency of legal framework in settling disputes .... 3.0 ..........115 Efficiency of legal framework in challenging regs. ... 2.9 ..........103 Transparency of government policymaking............. 3.3 ..........122 Business costs of terrorism .................................... 6.2 ............15 Business costs of crime and violence..................... 4.3 ............78 Organized crime ..................................................... 5.1 ............58 Reliability of police services .................................... 4.4 ............54 Ethical behavior of firms ......................................... 3.6 ..........108 Strength of auditing and reporting standards ......... 3.6 ..........131 Efficacy of corporate boards .................................. 3.8 ..........130 Protection of minority shareholders’ interests ......... 3.2 ..........129 Strength of investor protection, 0–10 (best)* .......... 2.0 ..........142 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.0 ............81 Quality of roads ...................................................... 4.0 ............70 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.4 ............56 Quality of air transport infrastructure....................... 3.6 ..........104 Available airline seat km/week, millions* ............... 23.0 ..........119 Quality of electricity supply ..................................... 3.4 ..........102 Mobile telephone subscriptions/100 pop.* ......... 127.3 ............48 Fixed telephone lines/100 pop.* ........................... 15.8 ............72 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –6.0 ..........122 Gross national savings, % GDP* ............................ n/a ...........n/a Inflation, annual % change* .................................... 1.9 ..............1 General government debt, % GDP* ..................... 29.2 ............32 Country credit rating, 0–100 (best)* ...................... 38.7 ............83 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 78.6 ............33 Business impact of malaria .................................... 5.4 ............25 Tuberculosis cases/100,000 pop.* ....................... 41.0 ............66 Business impact of tuberculosis ............................. 5.5 ............77 HIV prevalence, % adult pop.* ............................... 1.1 ..........110 Business impact of HIV/AIDS ................................. 5.2 ............82 Infant mortality, deaths/1,000 live births* .............. 18.5 ............88 Life expectancy, years*......................................... 70.8 ............91 Quality of primary education ................................... 4.0 ............71 Primary education enrollment, net %* .................. 92.2 ............84 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 85.4 ............88 Tertiary education enrollment, gross %*................ 12.1 ..........108 Quality of the education system ............................. 2.9 ..........118 Quality of math and science education .................. 3.8 ............89 Quality of management schools ............................. 4.0 ............83 Internet access in schools ...................................... 2.7 ..........125 Availability of research and training services ........... 3.1 ..........130 Extent of staff training ............................................ 3.7 ..........101 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 13 ..........135 No. days to start a business* ............................. 208.0 ..........144 Agricultural policy costs.......................................... 3.3 ..........116 Prevalence of trade barriers ................................... 4.9 ............16 Trade tariffs, % duty* ............................................ 11.7 ..........121 Prevalence of foreign ownership............................. 3.8 ..........116 Business impact of rules on FDI ............................. 3.8 ..........112 Burden of customs procedures .............................. 3.4 ..........111 Imports as a percentage of GDP* ........................ 56.3 ............49 Degree of customer orientation .............................. 3.6 ..........126 Buyer sophistication ............................................... 3.0 ..........104 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.7 ..........122 Flexibility of wage determination ............................. 5.0 ............72 Hiring and firing practices ....................................... 3.0 ..........126 Redundancy costs, weeks of salary* ...................... 8.8 ............32 Effect of taxation on incentives to work .................. 3.5 ............83 Pay and productivity............................................... 3.3 ..........120 Reliance on professional management ................... 3.7 ..........104 Country capacity to retain talent............................. 2.8 ..........112 Country capacity to attract talent ........................... 3.3 ............77 Women in labor force, ratio to men* ..................... 0.61 ..........114 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........121 Affordability of financial services ............................. 3.6 ..........111 Financing through local equity market .................... 2.6 ..........111 Ease of access to loans ......................................... 2.4 ..........111 Venture capital availability ....................................... 2.0 ..........126 Soundness of banks .............................................. 5.1 ............58 Regulation of securities exchanges ........................ 3.0 ..........125 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.2 ..........109 Firm-level technology absorption ............................ 4.0 ..........116 FDI and technology transfer ................................... 3.8 ..........122 Individuals using Internet, %* ............................... 37.4 ............90 Fixed broadband Internet subscriptions/100 pop.* ... 6.9 ............75 Int’l Internet bandwidth, kb/s per user* .............. 201.6 ............12 Mobile broadband subscriptions/100 pop.*.......... 15.0 ............89 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.7 ..........140 Foreign market size index, 1–7 (best)* .................... 3.1 ..........129 GDP (PPP$ billions)* .............................................. 7.2 ..........135 Exports as a percentage of GDP* ........................ 53.5 ............41 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.3 ..........100 Local supplier quality.............................................. 3.7 ..........118 State of cluster development.................................. 3.1 ..........120 Nature of competitive advantage ............................ 3.0 ..........109 Value chain breadth................................................ 3.1 ..........123 Control of international distribution ......................... 3.7 ..........105 Production process sophistication.......................... 3.2 ..........118 Extent of marketing ................................................ 3.3 ..........127 Willingness to delegate authority ............................ 3.0 ..........131 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.1 ..........125 Quality of scientific research institutions ................. 2.6 ..........126 Company spending on R&D................................... 2.6 ..........111 University-industry collaboration in R&D ................. 2.9 ..........119 Gov’t procurement of advanced tech products ...... 2.9 ..........116 Availability of scientists and engineers .................... 3.0 ..........133 PCT patents, applications/million pop.* .................. 0.5 ............81 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.7 ............98 Extent of market dominance .................................. 3.5 ............86 Effectiveness of anti-monopoly policy ..................... 3.3 ..........125 Effect of taxation on incentives to invest................. 3.9 ............57 Total tax rate, % profits* ....................................... 27.9 ............30 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 347 2.1: Country/Economy Profiles Swaziland Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 1.1 GDP (US$ billions) ............................................ 3.6 GDP per capita (US$) ................................... 3,313 GDP (PPP) as share (%) of world total ............ 0.01 Swaziland 8,000 Sub-Saharan Africa 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 123 ..... 3.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 124 ......3.5 GCI 2012–2013 (out of 144) ................................... 135 ......3.3 GCI 2011–2012 (out of 142) ................................... 134 ......3.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .....................................108 ......3.9 7 Innovation Institutions ................................................................ 61 ......3.9 Infrastructure ............................................................ 97 ......3.3 Macroeconomic environment ................................... 60 ......4.8 Health and primary education ................................. 134 ......3.7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) ...................................126 ......3.3 Market size Higher education and training ................................. 120 ......3.2 Goods market efficiency .......................................... 98 ......4.1 Labor market efficiency .......................................... 105 ......3.9 Financial market development .................................. 71 ......4.0 Technological readiness .......................................... 125 ......2.7 Market size ............................................................. 136 ......2.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........108 ......3.2 Business sophistication ......................................... 101 ......3.6 Innovation ............................................................... 112 ......2.9 Swaziland Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................20.7 Inefficient government bureaucracy ...................................13.6 Corruption .........................................................................12.8 Tax rates............................................................................11.6 Inadequate supply of infrastructure ....................................10.6 Insufficient capacity to innovate ...........................................5.5 Inflation ................................................................................4.8 Poor work ethic in national labor force ................................4.8 Restrictive labor regulations .................................................3.8 Tax regulations ....................................................................3.5 Inadequately educated workforce ........................................3.0 Poor public health ...............................................................3.0 Foreign currency regulations ................................................1.0 Crime and theft ...................................................................0.8 Government instability/coups ..............................................0.5 Policy instability ...................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 348 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Swaziland The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.3 ............58 Intellectual property protection ............................... 3.8 ............59 Diversion of public funds ........................................ 3.4 ............62 Public trust in politicians ......................................... 3.3 ............54 Irregular payments and bribes ................................ 3.8 ............73 Judicial independence............................................ 3.5 ............83 Favoritism in decisions of government officials ....... 3.2 ............64 Wastefulness of government spending ................... 3.0 ............81 Burden of government regulation ........................... 3.6 ............60 Efficiency of legal framework in settling disputes .... 3.9 ............55 Efficiency of legal framework in challenging regs. ... 3.5 ............59 Transparency of government policymaking............. 3.9 ............79 Business costs of terrorism .................................... 5.3 ............71 Business costs of crime and violence..................... 4.5 ............69 Organized crime ..................................................... 4.8 ............68 Reliability of police services .................................... 4.6 ............50 Ethical behavior of firms ......................................... 4.1 ............59 Strength of auditing and reporting standards ......... 4.8 ............64 Efficacy of corporate boards .................................. 4.5 ............75 Protection of minority shareholders’ interests ......... 4.3 ............56 Strength of investor protection, 0–10 (best)* .......... 4.3 ..........105 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.0 ............78 Quality of roads ...................................................... 4.9 ............41 Quality of railroad infrastructure .............................. 3.5 ............43 Quality of port infrastructure ................................... 4.0 ............79 Quality of air transport infrastructure....................... 4.0 ............88 Available airline seat km/week, millions* ................. 0.3 ..........144 Quality of electricity supply ..................................... 4.1 ............90 Mobile telephone subscriptions/100 pop.* ........... 71.5 ..........119 Fixed telephone lines/100 pop.* ............................. 3.7 ..........108 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.7 ............33 Gross national savings, % GDP* .......................... 15.5 ..........102 Inflation, annual % change* .................................... 5.6 ............99 General government debt, % GDP* ..................... 18.8 ............17 Country credit rating, 0–100 (best)* ...................... 22.8 ..........124 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 43.1 ............30 Business impact of malaria .................................... 4.1 ............52 Tuberculosis cases/100,000 pop.* .................. 1,349.0 ..........144 Business impact of tuberculosis ............................. 2.4 ..........144 HIV prevalence, % adult pop.* ............................. 26.5 ..........143 Business impact of HIV/AIDS ................................. 2.1 ..........144 Infant mortality, deaths/1,000 live births* .............. 55.7 ..........127 Life expectancy, years*......................................... 48.9 ..........141 Quality of primary education ................................... 4.4 ............49 Primary education enrollment, net %* .................. 84.7 ..........119 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 59.9 ..........114 Tertiary education enrollment, gross %*.................. 6.0 ..........125 Quality of the education system ............................. 3.8 ............64 Quality of math and science education .................. 4.0 ............78 Quality of management schools ............................. 3.4 ..........122 Internet access in schools ...................................... 3.1 ..........119 Availability of research and training services ........... 3.3 ..........121 Extent of staff training ............................................ 3.9 ............79 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 12 ..........131 No. days to start a business* ............................... 38.0 ..........124 Agricultural policy costs.......................................... 3.6 ............95 Prevalence of trade barriers ................................... 4.6 ............36 Trade tariffs, % duty* .............................................. 6.1 ............79 Prevalence of foreign ownership............................. 4.8 ............58 Business impact of rules on FDI ............................. 3.9 ..........106 Burden of customs procedures .............................. 3.5 ..........102 Imports as a percentage of GDP* ........................ 68.8 ............33 Degree of customer orientation .............................. 4.1 ..........104 Buyer sophistication ............................................... 3.4 ............78 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.3 ............72 Flexibility of wage determination ............................. 4.5 ..........109 Hiring and firing practices ....................................... 3.8 ............81 Redundancy costs, weeks of salary* .................... 14.6 ............67 Effect of taxation on incentives to work .................. 3.6 ............69 Pay and productivity............................................... 3.7 ............93 Reliance on professional management ................... 4.3 ............62 Country capacity to retain talent............................. 2.8 ..........114 Country capacity to attract talent ........................... 3.2 ............87 Women in labor force, ratio to men* ..................... 0.62 ..........110 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.4 ............66 Affordability of financial services ............................. 4.2 ............60 Financing through local equity market .................... 3.5 ............66 Ease of access to loans ......................................... 2.7 ............81 Venture capital availability ....................................... 2.7 ............74 Soundness of banks .............................................. 4.9 ............65 Regulation of securities exchanges ........................ 4.0 ............77 Legal rights index, 0–10 (best)* ................................. 6 ............63 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.9 ..........121 Firm-level technology absorption ............................ 3.9 ..........119 FDI and technology transfer ................................... 3.8 ..........118 Individuals using Internet, %* ............................... 24.7 ............97 Fixed broadband Internet subscriptions/100 pop.* ... 0.3 ..........115 Int’l Internet bandwidth, kb/s per user* .................. 3.2 ..........129 Mobile broadband subscriptions/100 pop.*............ 0.7 ..........126 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 1.8 ..........138 Foreign market size index, 1–7 (best)* .................... 3.1 ..........130 GDP (PPP$ billions)* .............................................. 6.8 ..........137 Exports as a percentage of GDP* ........................ 55.8 ............37 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.9 ..........125 Local supplier quality.............................................. 3.9 ..........102 State of cluster development.................................. 3.4 ..........100 Nature of competitive advantage ............................ 3.3 ............82 Value chain breadth................................................ 3.3 ..........108 Control of international distribution ......................... 3.5 ..........114 Production process sophistication.......................... 3.6 ............85 Extent of marketing ................................................ 3.6 ..........111 Willingness to delegate authority ............................ 3.8 ............63 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............93 Quality of scientific research institutions ................. 2.9 ..........116 Company spending on R&D................................... 2.8 ..........104 University-industry collaboration in R&D ................. 3.3 ............85 Gov’t procurement of advanced tech products ...... 3.3 ............87 Availability of scientists and engineers .................... 2.7 ..........141 PCT patents, applications/million pop.* .................. 0.2 ............92 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.5 ..........115 Extent of market dominance .................................. 3.3 ..........111 Effectiveness of anti-monopoly policy ..................... 3.4 ..........116 Effect of taxation on incentives to invest................. 3.8 ............62 Total tax rate, % profits* ....................................... 36.5 ............67 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 349 2.1: Country/Economy Profiles Sweden Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 9.6 GDP (US$ billions) ........................................ 557.9 GDP per capita (US$) ................................. 57,909 GDP (PPP) as share (%) of world total ............ 0.46 Sweden 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 10 ..... 5.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ....................................... 6 ......5.5 GCI 2012–2013 (out of 144) ....................................... 4 ......5.5 GCI 2011–2012 (out of 142) ....................................... 3 ......5.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................12 ......5.9 7 Innovation Institutions ................................................................ 13 ......5.4 Infrastructure ............................................................ 22 ......5.5 Macroeconomic environment ................................... 17 ......6.1 Health and primary education ................................... 23 ......6.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................12 ......5.2 Market size Higher education and training ................................... 14 ......5.6 Goods market efficiency .......................................... 17 ......5.0 Labor market efficiency ............................................ 20 ......4.8 Financial market development .................................. 12 ......5.2 Technological readiness .............................................. 3 ......6.2 Market size ............................................................... 36 ......4.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) .............7 ......5.4 Business sophistication ............................................. 8 ......5.4 Innovation ................................................................... 7 ......5.4 Sweden Advanced economies The most problematic factors for doing business Tax rates............................................................................16.5 Tax regulations ..................................................................13.6 Restrictive labor regulations ...............................................13.5 Access to financing ...........................................................11.0 Inadequately educated workforce ........................................9.5 Inefficient government bureaucracy .....................................9.2 Insufficient capacity to innovate ...........................................6.0 Inadequate supply of infrastructure ......................................5.5 Poor work ethic in national labor force ................................3.5 Foreign currency regulations ................................................2.7 Policy instability ...................................................................2.4 Corruption ...........................................................................1.9 Inflation ................................................................................1.3 Government instability/coups ..............................................1.1 Poor public health ...............................................................1.1 Crime and theft ...................................................................1.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 350 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Sweden The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.7 ............18 Intellectual property protection ............................... 5.5 ............19 Diversion of public funds ........................................ 5.5 ............15 Public trust in politicians ......................................... 5.3 ............11 Irregular payments and bribes ................................ 5.7 ............20 Judicial independence............................................ 5.7 ............17 Favoritism in decisions of government officials ....... 5.0 ..............9 Wastefulness of government spending ................... 4.8 ............10 Burden of government regulation ........................... 4.0 ............20 Efficiency of legal framework in settling disputes .... 5.4 ............13 Efficiency of legal framework in challenging regs. ... 4.7 ............14 Transparency of government policymaking............. 5.2 ............13 Business costs of terrorism .................................... 5.8 ............45 Business costs of crime and violence..................... 5.2 ............39 Organized crime ..................................................... 5.6 ............36 Reliability of police services .................................... 5.7 ............24 Ethical behavior of firms ......................................... 5.8 ............12 Strength of auditing and reporting standards ......... 5.9 ............14 Efficacy of corporate boards .................................. 5.6 ............11 Protection of minority shareholders’ interests ......... 5.5 ..............9 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.7 ............18 Quality of roads ...................................................... 5.5 ............20 Quality of railroad infrastructure .............................. 4.5 ............19 Quality of port infrastructure ................................... 5.6 ............18 Quality of air transport infrastructure....................... 5.7 ............21 Available airline seat km/week, millions* ............. 582.7 ............38 Quality of electricity supply ..................................... 6.3 ............22 Mobile telephone subscriptions/100 pop.* ......... 124.4 ............49 Fixed telephone lines/100 pop.* ........................... 40.6 ............24 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.0 ............36 Gross national savings, % GDP* .......................... 24.3 ............44 Inflation, annual % change* .................................... 0.0 ............69 General government debt, % GDP* ..................... 41.4 ............68 Country credit rating, 0–100 (best)* ...................... 92.8 ..............5 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 7.2 ............20 Business impact of tuberculosis ............................. 6.6 ............18 HIV prevalence, % adult pop.* ............................... 0.2 ..............1 Business impact of HIV/AIDS ................................. 6.5 ............19 Infant mortality, deaths/1,000 live births* ................ 2.3 ..............6 Life expectancy, years*......................................... 81.7 ............10 Quality of primary education ................................... 4.7 ............38 Primary education enrollment, net %* .................. 99.5 ............10 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 98.4 ............40 Tertiary education enrollment, gross %*................ 70.0 ............27 Quality of the education system ............................. 4.6 ............26 Quality of math and science education .................. 4.4 ............49 Quality of management schools ............................. 5.2 ............23 Internet access in schools ...................................... 6.3 ..............8 Availability of research and training services ........... 5.4 ............15 Extent of staff training ............................................ 5.1 ............10 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ............................... 16.0 ............79 Agricultural policy costs.......................................... 4.6 ............12 Prevalence of trade barriers ................................... 4.6 ............41 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 5.2 ............34 Business impact of rules on FDI ............................. 5.0 ............25 Burden of customs procedures .............................. 5.2 ............17 Imports as a percentage of GDP* ........................ 38.7 ............94 Degree of customer orientation .............................. 5.4 ............18 Buyer sophistication ............................................... 4.5 ............12 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.4 ............17 Flexibility of wage determination ............................. 3.6 ..........134 Hiring and firing practices ....................................... 3.5 ..........100 Redundancy costs, weeks of salary* .................... 14.4 ............66 Effect of taxation on incentives to work .................. 4.2 ............30 Pay and productivity............................................... 3.8 ............88 Reliance on professional management ................... 5.9 ..............9 Country capacity to retain talent............................. 4.8 ............17 Country capacity to attract talent ........................... 4.3 ............26 Women in labor force, ratio to men* ..................... 0.94 ............14 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.6 ............20 Affordability of financial services ............................. 5.5 ............16 Financing through local equity market .................... 4.8 ............13 Ease of access to loans ......................................... 4.1 ............10 Venture capital availability ....................................... 4.2 ............11 Soundness of banks .............................................. 5.8 ............26 Regulation of securities exchanges ........................ 5.4 ............20 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.4 ..............7 Firm-level technology absorption ............................ 6.0 ..............9 FDI and technology transfer ................................... 4.7 ............60 Individuals using Internet, %* ............................... 94.8 ..............3 Fixed broadband Internet subscriptions/100 pop.* . 32.6 ............14 Int’l Internet bandwidth, kb/s per user* .............. 374.8 ..............6 Mobile broadband subscriptions/100 pop.*........ 104.9 ..............8 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.4 ............35 Foreign market size index, 1–7 (best)* .................... 5.3 ............36 GDP (PPP$ billions)* .......................................... 396.8 ............34 Exports as a percentage of GDP* ........................ 43.5 ............60 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............54 Local supplier quality.............................................. 5.5 ............10 State of cluster development.................................. 4.7 ............20 Nature of competitive advantage ............................ 5.6 ............15 Value chain breadth................................................ 5.3 ..............7 Control of international distribution ......................... 4.9 ............10 Production process sophistication.......................... 6.0 ..............8 Extent of marketing ................................................ 5.7 ..............6 Willingness to delegate authority ............................ 5.6 ..............4 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.5 ..............6 Quality of scientific research institutions ................. 5.5 ............14 Company spending on R&D................................... 5.4 ..............6 University-industry collaboration in R&D ................. 5.3 ............11 Gov’t procurement of advanced tech products ...... 4.0 ............26 Availability of scientists and engineers .................... 4.9 ............19 PCT patents, applications/million pop.* .............. 300.8 ..............3 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............41 Extent of market dominance .................................. 4.5 ............22 Effectiveness of anti-monopoly policy ..................... 5.2 ............10 Effect of taxation on incentives to invest................. 4.3 ............28 Total tax rate, % profits* ....................................... 52.0 ..........119 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 351 2.1: Country/Economy Profiles Switzerland Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 8.0 GDP (US$ billions) ........................................ 650.8 GDP per capita (US$) ................................. 81,324 GDP (PPP) as share (%) of world total ............ 0.43 Switzerland 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ........................................................ 1 ..... 5.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ....................................... 1 ......5.7 GCI 2012–2013 (out of 144) ....................................... 1 ......5.7 GCI 2011–2012 (out of 142) ....................................... 1 ......5.7 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .........................................4 ......6.2 7 Innovation Institutions .................................................................. 9 ......5.6 Infrastructure .............................................................. 5 ......6.2 Macroeconomic environment ................................... 12 ......6.4 Health and primary education ................................... 11 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .......................................5 ......5.5 Market size Higher education and training ..................................... 4 ......6.0 Goods market efficiency ............................................ 8 ......5.4 Labor market efficiency .............................................. 1 ......5.8 Financial market development .................................. 11 ......5.3 Technological readiness ............................................ 10 ......6.0 Market size ............................................................... 39 ......4.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) .............1 ......5.7 Business sophistication ............................................. 2 ......5.8 Innovation ................................................................... 2 ......5.7 Switzerland Advanced economies The most problematic factors for doing business Inadequately educated workforce ......................................21.2 Restrictive labor regulations ...............................................11.6 Inefficient government bureaucracy ...................................11.3 Policy instability .................................................................10.9 Tax regulations ..................................................................10.3 Access to financing .............................................................9.2 Insufficient capacity to innovate ...........................................8.9 Tax rates..............................................................................5.9 Poor work ethic in national labor force ................................4.2 Foreign currency regulations ................................................2.7 Inadequate supply of infrastructure ......................................1.9 Inflation ................................................................................0.7 Government instability/coups ..............................................0.6 Crime and theft ...................................................................0.5 Poor public health ...............................................................0.2 Corruption ...........................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 352 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Switzerland The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.2 ..............3 Intellectual property protection ............................... 6.0 ..............4 Diversion of public funds ........................................ 5.9 ..............9 Public trust in politicians ......................................... 5.3 ..............8 Irregular payments and bribes ................................ 6.2 ............10 Judicial independence............................................ 6.1 ............11 Favoritism in decisions of government officials ....... 4.8 ............10 Wastefulness of government spending ................... 4.8 ............11 Burden of government regulation ........................... 4.2 ............12 Efficiency of legal framework in settling disputes .... 5.6 ..............8 Efficiency of legal framework in challenging regs. ... 4.9 ..............8 Transparency of government policymaking............. 5.6 ..............7 Business costs of terrorism .................................... 5.9 ............34 Business costs of crime and violence..................... 5.6 ............19 Organized crime ..................................................... 5.9 ............22 Reliability of police services .................................... 6.2 ..............5 Ethical behavior of firms ......................................... 6.2 ..............5 Strength of auditing and reporting standards ......... 5.7 ............18 Efficacy of corporate boards .................................. 5.4 ............19 Protection of minority shareholders’ interests ......... 4.7 ............32 Strength of investor protection, 0–10 (best)* .......... 3.0 ..........130 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.6 ..............1 Quality of roads ...................................................... 6.0 ..............9 Quality of railroad infrastructure .............................. 6.6 ..............2 Quality of port infrastructure ................................... 4.9 ............44 Quality of air transport infrastructure....................... 6.1 ..............8 Available airline seat km/week, millions* ............. 968.7 ............29 Quality of electricity supply ..................................... 6.8 ..............1 Mobile telephone subscriptions/100 pop.* ......... 133.8 ............40 Fixed telephone lines/100 pop.* ........................... 57.9 ..............6 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................... 0.0 ............24 Gross national savings, % GDP* .......................... 30.7 ............23 Inflation, annual % change* .................................. –0.2 ............74 General government debt, % GDP* ..................... 49.4 ............84 Country credit rating, 0–100 (best)* ...................... 94.2 ..............2 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 6.0 ............13 Business impact of tuberculosis ............................. 6.8 ..............4 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 6.6 ............11 Infant mortality, deaths/1,000 live births* ................ 3.7 ............24 Life expectancy, years*......................................... 82.7 ..............5 Quality of primary education ................................... 5.9 ..............4 Primary education enrollment, net %* .................. 93.4 ............77 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 96.3 ............50 Tertiary education enrollment, gross %*................ 55.6 ............47 Quality of the education system ............................. 6.0 ..............1 Quality of math and science education .................. 5.9 ..............4 Quality of management schools ............................. 6.2 ..............1 Internet access in schools ...................................... 6.1 ............13 Availability of research and training services ........... 6.5 ..............1 Extent of staff training ............................................ 5.7 ..............1 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 18.0 ............84 Agricultural policy costs.......................................... 3.8 ............68 Prevalence of trade barriers ................................... 4.0 ..........107 Trade tariffs, % duty* .............................................. 3.5 ............47 Prevalence of foreign ownership............................. 5.2 ............35 Business impact of rules on FDI ............................. 4.9 ............31 Burden of customs procedures .............................. 5.2 ............18 Imports as a percentage of GDP* ........................ 38.8 ............93 Degree of customer orientation .............................. 6.0 ..............2 Buyer sophistication ............................................... 5.0 ..............3 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 6.2 ..............1 Flexibility of wage determination ............................. 5.7 ............15 Hiring and firing practices ....................................... 5.7 ..............2 Redundancy costs, weeks of salary* .................... 10.1 ............38 Effect of taxation on incentives to work .................. 5.1 ............11 Pay and productivity............................................... 5.3 ..............5 Reliance on professional management ................... 5.9 ..............7 Country capacity to retain talent............................. 5.8 ..............1 Country capacity to attract talent ........................... 6.1 ..............1 Women in labor force, ratio to men* ..................... 0.87 ............43 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.5 ..............1 Affordability of financial services ............................. 6.1 ..............1 Financing through local equity market .................... 4.8 ............16 Ease of access to loans ......................................... 3.6 ............28 Venture capital availability ....................................... 3.4 ............25 Soundness of banks .............................................. 5.9 ............21 Regulation of securities exchanges ........................ 5.4 ............19 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.4 ..............6 Firm-level technology absorption ............................ 6.0 ..............6 FDI and technology transfer ................................... 5.0 ............35 Individuals using Internet, %* ............................... 86.7 ............11 Fixed broadband Internet subscriptions/100 pop.* . 43.0 ..............1 Int’l Internet bandwidth, kb/s per user* .............. 314.1 ..............8 Mobile broadband subscriptions/100 pop.*.......... 44.3 ............46 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.3 ............42 Foreign market size index, 1–7 (best)* .................... 5.3 ............35 GDP (PPP$ billions)* .......................................... 371.6 ............36 Exports as a percentage of GDP* ........................ 49.6 ............47 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.5 ..............5 Local supplier quality.............................................. 6.1 ..............2 State of cluster development.................................. 5.4 ..............6 Nature of competitive advantage ............................ 6.4 ..............2 Value chain breadth................................................ 5.9 ..............3 Control of international distribution ......................... 5.3 ..............4 Production process sophistication.......................... 6.4 ..............1 Extent of marketing ................................................ 5.9 ..............5 Willingness to delegate authority ............................ 5.3 ..............8 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.9 ..............1 Quality of scientific research institutions ................. 6.4 ..............1 Company spending on R&D................................... 5.9 ..............1 University-industry collaboration in R&D ................. 5.8 ..............3 Gov’t procurement of advanced tech products ...... 4.0 ............31 Availability of scientists and engineers .................... 4.8 ............24 PCT patents, applications/million pop.* .............. 315.0 ..............1 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.7 ............19 Extent of market dominance .................................. 6.0 ..............1 Effectiveness of anti-monopoly policy ..................... 5.0 ............18 Effect of taxation on incentives to invest................. 5.3 ..............7 Total tax rate, % profits* ....................................... 29.1 ............35 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 353 2.1: Country/Economy Profiles Taiwan, China Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 23.4 GDP (US$ billions) ........................................ 489.2 GDP per capita (US$) ................................. 20,930 GDP (PPP) as share (%) of world total ............ 1.07 Taiwan, China 50,000 Advanced economies 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 14 ..... 5.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 12 ......5.3 GCI 2012–2013 (out of 144) ..................................... 13 ......5.3 GCI 2011–2012 (out of 142) ..................................... 13 ......5.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................14 ......5.7 7 Innovation Institutions ................................................................ 27 ......4.8 Infrastructure ............................................................ 11 ......5.8 Macroeconomic environment ................................... 23 ......5.8 Health and primary education ................................... 13 ......6.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................16 ......5.1 Market size Higher education and training ................................... 12 ......5.6 Goods market efficiency .......................................... 11 ......5.2 Labor market efficiency ............................................ 32 ......4.6 Financial market development .................................. 18 ......4.9 Technological readiness ............................................ 30 ......5.2 Market size ............................................................... 17 ......5.2 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........13 ......5.1 Business sophistication ........................................... 17 ......5.1 Innovation ................................................................. 10 ......5.1 Taiwan, China Advanced economies The most problematic factors for doing business Policy instability .................................................................20.4 Inefficient government bureaucracy ...................................19.1 Insufficient capacity to innovate .........................................15.6 Restrictive labor regulations ...............................................12.8 Tax regulations ....................................................................6.4 Tax rates..............................................................................5.5 Foreign currency regulations ................................................4.3 Inflation ................................................................................4.3 Inadequately educated workforce ........................................2.7 Government instability/coups ..............................................2.5 Access to financing .............................................................1.8 Inadequate supply of infrastructure ......................................1.5 Corruption ...........................................................................1.4 Poor work ethic in national labor force ................................1.3 Crime and theft ...................................................................0.2 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 354 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Taiwan, China The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.7 ............16 Intellectual property protection ............................... 5.1 ............26 Diversion of public funds ........................................ 4.4 ............34 Public trust in politicians ......................................... 3.9 ............30 Irregular payments and bribes ................................ 5.2 ............31 Judicial independence............................................ 4.2 ............49 Favoritism in decisions of government officials ....... 4.1 ............21 Wastefulness of government spending ................... 3.6 ............43 Burden of government regulation ........................... 3.9 ............34 Efficiency of legal framework in settling disputes .... 4.1 ............48 Efficiency of legal framework in challenging regs. ... 3.3 ............75 Transparency of government policymaking............. 5.4 ..............9 Business costs of terrorism .................................... 5.9 ............33 Business costs of crime and violence..................... 5.7 ............11 Organized crime ..................................................... 5.8 ............28 Reliability of police services .................................... 5.0 ............37 Ethical behavior of firms ......................................... 4.9 ............29 Strength of auditing and reporting standards ......... 5.7 ............20 Efficacy of corporate boards .................................. 5.0 ............36 Protection of minority shareholders’ interests ......... 5.1 ............20 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.5 ............24 Quality of roads ...................................................... 5.9 ............12 Quality of railroad infrastructure .............................. 5.7 ..............7 Quality of port infrastructure ................................... 5.3 ............25 Quality of air transport infrastructure....................... 5.3 ............36 Available airline seat km/week, millions* .......... 1,146.9 ............27 Quality of electricity supply ..................................... 6.2 ............28 Mobile telephone subscriptions/100 pop.* ......... 127.5 ............46 Fixed telephone lines/100 pop.* ........................... 71.2 ..............1 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.2 ............80 Gross national savings, % GDP* .......................... 30.9 ............22 Inflation, annual % change* .................................... 0.8 ..............1 General government debt, % GDP* ..................... 41.0 ............64 Country credit rating, 0–100 (best)* ...................... 79.6 ............21 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 49.4 ............72 Business impact of tuberculosis ............................. 6.1 ............46 HIV prevalence, % adult pop.* ............................... 0.2 ............58 Business impact of HIV/AIDS ................................. 6.4 ............24 Infant mortality, deaths/1,000 live births* ................ 3.9 ............26 Life expectancy, years*......................................... 79.9 ............29 Quality of primary education ................................... 5.3 ............18 Primary education enrollment, net %* .................. 97.7 ............35 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 100.3 ............36 Tertiary education enrollment, gross %*................ 83.9 ..............9 Quality of the education system ............................. 3.9 ............56 Quality of math and science education .................. 5.3 ............14 Quality of management schools ............................. 4.8 ............36 Internet access in schools ...................................... 6.1 ............12 Availability of research and training services ........... 5.4 ............14 Extent of staff training ............................................ 4.4 ............41 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 3 ............10 No. days to start a business* ............................... 10.0 ............52 Agricultural policy costs.......................................... 4.0 ............49 Prevalence of trade barriers ................................... 4.8 ............21 Trade tariffs, % duty* .............................................. 5.2 ............70 Prevalence of foreign ownership............................. 5.2 ............32 Business impact of rules on FDI ............................. 5.3 ............16 Burden of customs procedures .............................. 5.5 ............10 Imports as a percentage of GDP* ........................ 63.7 ............42 Degree of customer orientation .............................. 5.6 ..............8 Buyer sophistication ............................................... 4.3 ............14 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.1 ............23 Flexibility of wage determination ............................. 5.5 ............31 Hiring and firing practices ....................................... 4.4 ............21 Redundancy costs, weeks of salary* .................... 22.6 ..........105 Effect of taxation on incentives to work .................. 3.9 ............49 Pay and productivity............................................... 5.1 ..............7 Reliance on professional management ................... 5.3 ............24 Country capacity to retain talent............................. 3.8 ............46 Country capacity to attract talent ........................... 3.5 ............65 Women in labor force, ratio to men* ..................... 0.75 ............89 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.4 ............25 Affordability of financial services ............................. 5.6 ............11 Financing through local equity market .................... 5.5 ..............2 Ease of access to loans ......................................... 3.6 ............26 Venture capital availability ....................................... 3.9 ............15 Soundness of banks .............................................. 5.7 ............32 Regulation of securities exchanges ........................ 5.4 ............21 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.2 ............49 Firm-level technology absorption ............................ 5.5 ............26 FDI and technology transfer ................................... 4.8 ............47 Individuals using Internet, %* ............................... 80.0 ............24 Fixed broadband Internet subscriptions/100 pop.* . 24.2 ............30 Int’l Internet bandwidth, kb/s per user* ................ 65.1 ............41 Mobile broadband subscriptions/100 pop.*.......... 57.1 ............32 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.0 ............19 Foreign market size index, 1–7 (best)* .................... 6.1 ............11 GDP (PPP$ billions)* .......................................... 929.5 ............20 Exports as a percentage of GDP* ........................ 72.9 ............23 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.5 ..............7 Local supplier quality.............................................. 5.5 ............11 State of cluster development.................................. 5.6 ..............2 Nature of competitive advantage ............................ 5.2 ............22 Value chain breadth................................................ 4.8 ............21 Control of international distribution ......................... 4.5 ............28 Production process sophistication.......................... 5.5 ............18 Extent of marketing ................................................ 5.2 ............22 Willingness to delegate authority ............................ 4.3 ............32 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.8 ............23 Quality of scientific research institutions ................. 5.2 ............22 Company spending on R&D................................... 4.6 ............18 University-industry collaboration in R&D ................. 5.1 ............14 Gov’t procurement of advanced tech products ...... 4.1 ............24 Availability of scientists and engineers .................... 5.0 ............14 PCT patents, applications/million pop.* ................ n/a1 ...........n/a 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 6.1 ..............2 Extent of market dominance .................................. 5.4 ..............5 Effectiveness of anti-monopoly policy ..................... 5.0 ............19 Effect of taxation on incentives to invest................. 4.2 ............33 Total tax rate, % profits* ....................................... 35.0 ............58 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. 1 See the “Technical Notes and Sources” section. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 355 2.1: Country/Economy Profiles Tajikistan Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 8.1 GDP (US$ billions) ............................................ 8.5 GDP per capita (US$) ................................... 1,045 GDP (PPP) as share (%) of world total ............ 0.02 Tajikistan 15,000 Commonwealth of Independent States 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 91 ..... 3.9 Transition 1–2 1 GCI 2013–2014 (out of 148) .................................... n/a ......n/a GCI 2012–2013 (out of 144) ................................... 100 ......3.8 GCI 2011–2012 (out of 142) ................................... 105 ......3.8 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .......................................94 ......4.2 Innovation Institutions ................................................................ 65 ......3.9 Infrastructure .......................................................... 120 ......2.7 Macroeconomic environment ................................... 69 ......4.7 Health and primary education ................................... 83 ......5.6 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................111 ......3.5 Market size Higher education and training ................................... 88 ......4.0 Goods market efficiency ........................................ 114 ......4.0 Labor market efficiency ............................................ 63 ......4.2 Financial market development ................................ 113 ......3.4 Technological readiness .......................................... 116 ......2.8 Market size ............................................................. 116 ......2.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............81 ......3.5 Business sophistication ........................................... 82 ......3.8 Innovation ................................................................. 80 ......3.2 Tajikistan Commonwealth of Independent States The most problematic factors for doing business Access to financing ...........................................................20.5 Corruption .........................................................................17.7 Tax rates............................................................................15.8 Tax regulations ..................................................................15.4 Inflation ................................................................................4.9 Foreign currency regulations ................................................4.9 Poor work ethic in national labor force ................................3.4 Restrictive labor regulations .................................................3.3 Inadequately educated workforce ........................................2.7 Inefficient government bureaucracy .....................................2.5 Crime and theft ...................................................................2.3 Inadequate supply of infrastructure ......................................1.8 Policy instability ...................................................................1.7 Government instability/coups ..............................................1.6 Insufficient capacity to innovate ...........................................1.4 Poor public health ...............................................................0.3 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 356 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Tajikistan The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.9 ............87 Intellectual property protection ............................... 3.7 ............67 Diversion of public funds ........................................ 3.7 ............51 Public trust in politicians ......................................... 3.8 ............33 Irregular payments and bribes ................................ 3.6 ............88 Judicial independence............................................ 3.6 ............74 Favoritism in decisions of government officials ....... 3.5 ............43 Wastefulness of government spending ................... 3.9 ............28 Burden of government regulation ........................... 4.1 ............18 Efficiency of legal framework in settling disputes .... 3.9 ............54 Efficiency of legal framework in challenging regs. ... 3.5 ............55 Transparency of government policymaking............. 3.7 ............95 Business costs of terrorism .................................... 4.6 ..........108 Business costs of crime and violence..................... 4.4 ............73 Organized crime ..................................................... 4.8 ............66 Reliability of police services .................................... 3.9 ............86 Ethical behavior of firms ......................................... 4.0 ............67 Strength of auditing and reporting standards ......... 3.9 ..........116 Efficacy of corporate boards .................................. 3.9 ..........123 Protection of minority shareholders’ interests ......... 3.5 ..........112 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.4 ..........107 Quality of roads ...................................................... 3.0 ..........109 Quality of railroad infrastructure .............................. 3.0 ............53 Quality of port infrastructure ................................... 2.1 ..........140 Quality of air transport infrastructure....................... 4.0 ............91 Available airline seat km/week, millions* ............... 68.4 ............95 Quality of electricity supply ..................................... 2.6 ..........122 Mobile telephone subscriptions/100 pop.* ........... 91.8 ..........107 Fixed telephone lines/100 pop.* ............................. 5.2 ..........106 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.8 ............34 Gross national savings, % GDP* .......................... 13.7 ..........116 Inflation, annual % change* .................................... 5.0 ............91 General government debt, % GDP* ..................... 29.2 ............33 Country credit rating, 0–100 (best)* ...................... 19.9 ..........129 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.2 ............11 Business impact of malaria .................................... 4.9 ............37 Tuberculosis cases/100,000 pop.* ..................... 193.0 ..........118 Business impact of tuberculosis ............................. 4.6 ..........104 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 5.0 ............89 Infant mortality, deaths/1,000 live births* .............. 49.0 ..........124 Life expectancy, years*......................................... 67.3 ..........106 Quality of primary education ................................... 3.7 ............87 Primary education enrollment, net %* .................. 98.4 ............25 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 87.0 ............78 Tertiary education enrollment, gross %*................ 22.5 ............89 Quality of the education system ............................. 3.8 ............58 Quality of math and science education .................. 3.8 ............92 Quality of management schools ............................. 3.6 ..........108 Internet access in schools ...................................... 4.1 ............78 Availability of research and training services ........... 3.9 ............81 Extent of staff training ............................................ 3.7 ..........103 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ............................... 33.0 ..........116 Agricultural policy costs.......................................... 4.0 ............43 Prevalence of trade barriers ................................... 3.7 ..........133 Trade tariffs, % duty* .............................................. 5.7 ............73 Prevalence of foreign ownership............................. 3.4 ..........125 Business impact of rules on FDI ............................. 3.6 ..........121 Burden of customs procedures .............................. 3.6 ............98 Imports as a percentage of GDP* ........................ 64.8 ............39 Degree of customer orientation .............................. 4.2 ............97 Buyer sophistication ............................................... 3.6 ............50 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.5 ............54 Flexibility of wage determination ............................. 4.8 ............89 Hiring and firing practices ....................................... 4.1 ............45 Redundancy costs, weeks of salary* .................... 15.5 ............74 Effect of taxation on incentives to work .................. 3.2 ..........109 Pay and productivity............................................... 4.4 ............38 Reliance on professional management ................... 3.5 ..........116 Country capacity to retain talent............................. 3.5 ............62 Country capacity to attract talent ........................... 3.5 ............68 Women in labor force, ratio to men* ..................... 0.77 ............80 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.0 ............97 Affordability of financial services ............................. 4.0 ............83 Financing through local equity market .................... 3.0 ............97 Ease of access to loans ......................................... 3.6 ............22 Venture capital availability ....................................... 3.2 ............38 Soundness of banks .............................................. 4.4 ............94 Regulation of securities exchanges ........................ 3.1 ..........119 Legal rights index, 0–10 (best)* ................................. 2 ..........137 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.1 ..........111 Firm-level technology absorption ............................ 4.0 ..........117 FDI and technology transfer ................................... 4.2 ..........101 Individuals using Internet, %* ............................... 16.0 ..........111 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........132 Int’l Internet bandwidth, kb/s per user* .................. 4.6 ..........119 Mobile broadband subscriptions/100 pop.*............ n/a ...........n/a 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.6 ..........110 Foreign market size index, 1–7 (best)* .................... 3.2 ..........125 GDP (PPP$ billions)* ............................................ 19.1 ..........119 Exports as a percentage of GDP* ........................ 23.5 ..........120 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............48 Local supplier quality.............................................. 4.6 ............58 State of cluster development.................................. 3.3 ..........106 Nature of competitive advantage ............................ 3.5 ............67 Value chain breadth................................................ 3.5 ............97 Control of international distribution ......................... 3.7 ..........102 Production process sophistication.......................... 3.6 ............86 Extent of marketing ................................................ 3.8 ..........100 Willingness to delegate authority ............................ 3.9 ............51 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.8 ............62 Quality of scientific research institutions ................. 3.4 ............88 Company spending on R&D................................... 2.8 ..........101 University-industry collaboration in R&D ................. 3.3 ............91 Gov’t procurement of advanced tech products ...... 3.9 ............33 Availability of scientists and engineers .................... 3.7 ............90 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.3 ..........122 Extent of market dominance .................................. 3.7 ............73 Effectiveness of anti-monopoly policy ..................... 3.8 ............95 Effect of taxation on incentives to invest................. 3.1 ..........123 Total tax rate, % profits* ....................................... 86.0 ..........141 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 357 2.1: Country/Economy Profiles Tanzania Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 46.3 GDP (US$ billions) .......................................... 32.5 GDP per capita (US$) ...................................... 703 GDP (PPP) as share (%) of world total ............ 0.09 Tanzania 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 121 ..... 3.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 125 ......3.5 GCI 2012–2013 (out of 144) ................................... 120 ......3.6 GCI 2011–2012 (out of 142) ................................... 120 ......3.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................124 ......3.7 7 Innovation Institutions ................................................................ 93 ......3.5 Infrastructure .......................................................... 130 ......2.3 Macroeconomic environment ................................. 109 ......4.1 Health and primary education ................................. 108 ......4.9 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................114 ......3.4 Market size Higher education and training ................................. 134 ......2.4 Goods market efficiency ........................................ 122 ......3.9 Labor market efficiency ............................................ 47 ......4.4 Financial market development .................................. 96 ......3.7 Technological readiness .......................................... 131 ......2.5 Market size ............................................................... 75 ......3.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........107 ......3.3 Business sophistication ......................................... 112 ......3.5 Innovation ................................................................. 98 ......3.0 Tanzania Sub-Saharan Africa The most problematic factors for doing business Corruption .........................................................................17.0 Access to financing ...........................................................16.7 Inefficient government bureaucracy ...................................11.3 Tax rates............................................................................10.3 Inadequate supply of infrastructure ....................................10.0 Tax regulations ....................................................................6.7 Inflation ................................................................................6.6 Inadequately educated workforce ........................................6.2 Poor work ethic in national labor force ................................4.7 Crime and theft ...................................................................2.8 Insufficient capacity to innovate ...........................................2.7 Restrictive labor regulations .................................................1.6 Poor public health ...............................................................1.1 Policy instability ...................................................................1.0 Foreign currency regulations ................................................0.7 Government instability/coups ..............................................0.5 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 358 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Tanzania The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.5 ..........105 Intellectual property protection ............................... 3.3 ............91 Diversion of public funds ........................................ 2.8 ............91 Public trust in politicians ......................................... 2.9 ............78 Irregular payments and bribes ................................ 2.9 ..........124 Judicial independence............................................ 3.2 ............96 Favoritism in decisions of government officials ....... 3.2 ............61 Wastefulness of government spending ................... 2.9 ............84 Burden of government regulation ........................... 3.6 ............61 Efficiency of legal framework in settling disputes .... 3.7 ............64 Efficiency of legal framework in challenging regs. ... 3.3 ............78 Transparency of government policymaking............. 3.6 ..........111 Business costs of terrorism .................................... 4.7 ............99 Business costs of crime and violence..................... 4.1 ............88 Organized crime ..................................................... 4.7 ............77 Reliability of police services .................................... 3.5 ..........108 Ethical behavior of firms ......................................... 3.5 ..........116 Strength of auditing and reporting standards ......... 3.8 ..........119 Efficacy of corporate boards .................................. 4.0 ..........116 Protection of minority shareholders’ interests ......... 3.6 ..........106 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.2 ..........117 Quality of roads ...................................................... 3.0 ..........112 Quality of railroad infrastructure .............................. 2.0 ............88 Quality of port infrastructure ................................... 3.3 ..........106 Quality of air transport infrastructure....................... 2.8 ..........131 Available airline seat km/week, millions* ............... 81.9 ............87 Quality of electricity supply ..................................... 2.5 ..........125 Mobile telephone subscriptions/100 pop.* ........... 55.7 ..........135 Fixed telephone lines/100 pop.* ............................. 0.3 ..........136 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.6 ..........115 Gross national savings, % GDP* .......................... 19.9 ............69 Inflation, annual % change* .................................... 7.9 ..........125 General government debt, % GDP* ..................... 41.0 ............65 Country credit rating, 0–100 (best)* ...................... 31.9 ..........103 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 17,370.2 ............59 Business impact of malaria .................................... 3.0 ............72 Tuberculosis cases/100,000 pop.* ..................... 165.0 ..........111 Business impact of tuberculosis ............................. 4.2 ..........120 HIV prevalence, % adult pop.* ............................... 5.1 ..........132 Business impact of HIV/AIDS ................................. 3.8 ..........131 Infant mortality, deaths/1,000 live births* .............. 37.7 ..........109 Life expectancy, years*......................................... 60.8 ..........124 Quality of primary education ................................... 2.5 ..........132 Primary education enrollment, net %* .................. 97.6 ............38 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 35.0 ..........132 Tertiary education enrollment, gross %*.................. 3.9 ..........134 Quality of the education system ............................. 3.0 ..........109 Quality of math and science education .................. 2.4 ..........137 Quality of management schools ............................. 3.2 ..........126 Internet access in schools ...................................... 2.8 ..........124 Availability of research and training services ........... 3.5 ..........109 Extent of staff training ............................................ 3.5 ..........116 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 26.0 ..........105 Agricultural policy costs.......................................... 3.4 ..........101 Prevalence of trade barriers ................................... 3.9 ..........125 Trade tariffs, % duty* .............................................. 9.7 ..........104 Prevalence of foreign ownership............................. 4.1 ..........104 Business impact of rules on FDI ............................. 4.3 ............82 Burden of customs procedures .............................. 3.2 ..........123 Imports as a percentage of GDP* ........................ 45.2 ............76 Degree of customer orientation .............................. 3.9 ..........117 Buyer sophistication ............................................... 3.1 ..........101 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.8 ..........117 Flexibility of wage determination ............................. 4.6 ..........105 Hiring and firing practices ....................................... 3.9 ............73 Redundancy costs, weeks of salary* ...................... 9.3 ............33 Effect of taxation on incentives to work .................. 3.2 ..........105 Pay and productivity............................................... 3.3 ..........122 Reliance on professional management ................... 3.7 ..........106 Country capacity to retain talent............................. 3.0 ............98 Country capacity to attract talent ........................... 3.3 ............84 Women in labor force, ratio to men* ..................... 0.99 ..............6 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........122 Affordability of financial services ............................. 3.6 ..........116 Financing through local equity market .................... 3.2 ............82 Ease of access to loans ......................................... 2.7 ............86 Venture capital availability ....................................... 2.6 ............81 Soundness of banks .............................................. 4.2 ..........107 Regulation of securities exchanges ........................ 3.5 ..........104 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.8 ..........126 Firm-level technology absorption ............................ 3.8 ..........129 FDI and technology transfer ................................... 4.2 ............99 Individuals using Internet, %* ................................. 4.4 ..........133 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........128 Int’l Internet bandwidth, kb/s per user* .................. 6.5 ..........111 Mobile broadband subscriptions/100 pop.*............ 2.7 ..........117 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.5 ............71 Foreign market size index, 1–7 (best)* .................... 4.0 ............89 GDP (PPP$ billions)* ............................................ 79.4 ............76 Exports as a percentage of GDP* ........................ 24.6 ..........115 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.1 ..........115 Local supplier quality.............................................. 3.8 ..........112 State of cluster development.................................. 3.4 ............98 Nature of competitive advantage ............................ 3.0 ..........108 Value chain breadth................................................ 3.5 ..........102 Control of international distribution ......................... 3.5 ..........119 Production process sophistication.......................... 3.2 ..........111 Extent of marketing ................................................ 3.5 ..........117 Willingness to delegate authority ............................ 3.4 ..........105 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.4 ..........102 Quality of scientific research institutions ................. 3.6 ............80 Company spending on R&D................................... 3.0 ............86 University-industry collaboration in R&D ................. 3.4 ............83 Gov’t procurement of advanced tech products ...... 3.3 ............84 Availability of scientists and engineers .................... 3.6 ............98 PCT patents, applications/million pop.* .................. 0.0 ..........116 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.3 ..........123 Extent of market dominance .................................. 3.5 ............95 Effectiveness of anti-monopoly policy ..................... 3.8 ............96 Effect of taxation on incentives to invest................. 3.4 ............96 Total tax rate, % profits* ....................................... 44.9 ..........101 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 359 2.1: Country/Economy Profiles Thailand Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 68.2 GDP (US$ billions) ........................................ 387.2 GDP per capita (US$) ................................... 5,674 GDP (PPP) as share (%) of world total ............ 0.77 Thailand 10,000 Emerging and Developing Asia 8,000 6,000 4,000 2,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 31 ..... 4.7 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 37 ......4.5 GCI 2012–2013 (out of 144) ..................................... 38 ......4.5 GCI 2011–2012 (out of 142) ..................................... 39 ......4.5 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................40 ......5.0 7 Innovation Institutions ................................................................ 84 ......3.7 Infrastructure ............................................................ 48 ......4.6 Macroeconomic environment ................................... 19 ......6.0 Health and primary education ................................... 66 ......5.8 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................39 ......4.5 Market size Higher education and training ................................... 59 ......4.6 Goods market efficiency .......................................... 30 ......4.7 Labor market efficiency ............................................ 66 ......4.2 Financial market development .................................. 34 ......4.6 Technological readiness ............................................ 65 ......3.9 Market size ............................................................... 22 ......5.1 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........54 ......3.8 Business sophistication ........................................... 41 ......4.4 Innovation ................................................................. 67 ......3.3 Thailand Emerging and Developing Asia The most problematic factors for doing business Corruption .........................................................................21.4 Government instability/coups ............................................21.0 Inefficient government bureaucracy ...................................12.7 Policy instability .................................................................11.8 Insufficient capacity to innovate ...........................................6.3 Inadequate supply of infrastructure ......................................6.3 Inadequately educated workforce ........................................6.2 Poor work ethic in national labor force ................................3.7 Access to financing .............................................................3.4 Tax rates..............................................................................2.6 Tax regulations ....................................................................2.4 Crime and theft ...................................................................1.0 Restrictive labor regulations .................................................0.5 Inflation ................................................................................0.3 Poor public health ...............................................................0.3 Foreign currency regulations ................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 360 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Thailand The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.1 ............72 Intellectual property protection ............................... 3.1 ..........104 Diversion of public funds ........................................ 2.6 ..........108 Public trust in politicians ......................................... 1.9 ..........129 Irregular payments and bribes ................................ 3.7 ............84 Judicial independence............................................ 3.8 ............68 Favoritism in decisions of government officials ....... 2.8 ............88 Wastefulness of government spending ................... 2.5 ..........115 Burden of government regulation ........................... 3.3 ............89 Efficiency of legal framework in settling disputes .... 3.8 ............62 Efficiency of legal framework in challenging regs. ... 3.3 ............72 Transparency of government policymaking............. 3.7 ..........100 Business costs of terrorism .................................... 4.1 ..........121 Business costs of crime and violence..................... 4.2 ............84 Organized crime ..................................................... 4.5 ............89 Reliability of police services .................................... 3.2 ..........113 Ethical behavior of firms ......................................... 3.7 ............92 Strength of auditing and reporting standards ......... 5.1 ............47 Efficacy of corporate boards .................................. 4.7 ............60 Protection of minority shareholders’ interests ......... 4.9 ............25 Strength of investor protection, 0–10 (best)* .......... 7.7 ............12 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.1 ............76 Quality of roads ...................................................... 4.5 ............50 Quality of railroad infrastructure .............................. 2.4 ............74 Quality of port infrastructure ................................... 4.5 ............54 Quality of air transport infrastructure....................... 5.3 ............37 Available airline seat km/week, millions* .......... 2,575.3 ............15 Quality of electricity supply ..................................... 5.1 ............58 Mobile telephone subscriptions/100 pop.* ......... 138.0 ............34 Fixed telephone lines/100 pop.* ............................. 9.0 ............91 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.2 ............27 Gross national savings, % GDP* .......................... 28.5 ............27 Inflation, annual % change* .................................... 2.2 ..............1 General government debt, % GDP* ..................... 45.3 ............78 Country credit rating, 0–100 (best)* ...................... 63.5 ............43 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................. 209.6 ............39 Business impact of malaria .................................... 5.4 ............24 Tuberculosis cases/100,000 pop.* ..................... 119.0 ............99 Business impact of tuberculosis ............................. 4.7 ............99 HIV prevalence, % adult pop.* ............................... 1.1 ..........110 Business impact of HIV/AIDS ................................. 4.6 ..........105 Infant mortality, deaths/1,000 live births* .............. 11.4 ............61 Life expectancy, years*......................................... 74.2 ............70 Quality of primary education ................................... 3.6 ............90 Primary education enrollment, net %* .................. 95.6 ............58 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 87.0 ............79 Tertiary education enrollment, gross %*................ 51.2 ............54 Quality of the education system ............................. 3.4 ............87 Quality of math and science education .................. 3.9 ............81 Quality of management schools ............................. 4.1 ............81 Internet access in schools ...................................... 4.6 ............61 Availability of research and training services ........... 4.2 ............69 Extent of staff training ............................................ 4.4 ............37 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 4 ............22 No. days to start a business* ............................... 27.5 ..........108 Agricultural policy costs.......................................... 3.1 ..........124 Prevalence of trade barriers ................................... 4.5 ............55 Trade tariffs, % duty* .............................................. 6.8 ............84 Prevalence of foreign ownership............................. 4.5 ............70 Business impact of rules on FDI ............................. 5.1 ............22 Burden of customs procedures .............................. 3.9 ............74 Imports as a percentage of GDP* ........................ 78.9 ............25 Degree of customer orientation .............................. 5.4 ............17 Buyer sophistication ............................................... 4.1 ............23 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.9 ............32 Flexibility of wage determination ............................. 4.3 ..........116 Hiring and firing practices ....................................... 4.4 ............23 Redundancy costs, weeks of salary* .................... 36.0 ..........133 Effect of taxation on incentives to work .................. 3.8 ............60 Pay and productivity............................................... 4.2 ............50 Reliance on professional management ................... 4.5 ............51 Country capacity to retain talent............................. 4.1 ............33 Country capacity to attract talent ........................... 3.9 ............36 Women in labor force, ratio to men* ..................... 0.83 ............67 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.3 ............28 Affordability of financial services ............................. 5.0 ............35 Financing through local equity market .................... 4.6 ............18 Ease of access to loans ......................................... 3.6 ............23 Venture capital availability ....................................... 3.0 ............44 Soundness of banks .............................................. 5.7 ............37 Regulation of securities exchanges ........................ 5.0 ............27 Legal rights index, 0–10 (best)* ................................. 5 ............85 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.7 ............74 Firm-level technology absorption ............................ 4.9 ............55 FDI and technology transfer ................................... 5.2 ............15 Individuals using Internet, %* ............................... 28.9 ............96 Fixed broadband Internet subscriptions/100 pop.* ... 7.4 ............72 Int’l Internet bandwidth, kb/s per user* ................ 37.4 ............65 Mobile broadband subscriptions/100 pop.*.......... 52.3 ............38 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.8 ............23 Foreign market size index, 1–7 (best)* .................... 5.9 ............16 GDP (PPP$ billions)* .......................................... 673.7 ............24 Exports as a percentage of GDP* ........................ 74.2 ............22 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.0 ............25 Local supplier quality.............................................. 4.5 ............62 State of cluster development.................................. 4.2 ............40 Nature of competitive advantage ............................ 4.2 ............33 Value chain breadth................................................ 4.3 ............38 Control of international distribution ......................... 4.4 ............41 Production process sophistication.......................... 4.2 ............51 Extent of marketing ................................................ 4.6 ............43 Willingness to delegate authority ............................ 4.2 ............36 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............70 Quality of scientific research institutions ................. 3.9 ............61 Company spending on R&D................................... 3.2 ............56 University-industry collaboration in R&D ................. 4.0 ............46 Gov’t procurement of advanced tech products ...... 2.9 ..........114 Availability of scientists and engineers .................... 4.3 ............54 PCT patents, applications/million pop.* .................. 1.2 ............67 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.4 ............38 Extent of market dominance .................................. 3.8 ............67 Effectiveness of anti-monopoly policy ..................... 4.1 ............67 Effect of taxation on incentives to invest................. 3.9 ............54 Total tax rate, % profits* ....................................... 29.8 ............37 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 361 2.1: Country/Economy Profiles Timor-Leste Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 1.2 GDP (US$ billions) ............................................ 6.1 GDP per capita (US$) ................................... 5,177 GDP (PPP) as share (%) of world total ............ 0.03 Timor-Leste 25,000 Emerging and Developing Asia 20,000 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 136 ..... 3.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 138 ......3.2 GCI 2012–2013 (out of 144) ................................... 136 ......3.3 GCI 2011–2012 (out of 142) ................................... 131 ......3.4 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .....................................122 ......3.7 7 Innovation Institutions .............................................................. 125 ......3.2 Infrastructure .......................................................... 133 ......2.1 Macroeconomic environment ................................... 49 ......5.1 Health and primary education ................................. 124 ......4.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) ...................................141 ......2.8 Market size Higher education and training ................................. 133 ......2.5 Goods market efficiency ........................................ 134 ......3.6 Labor market efficiency .......................................... 122 ......3.7 Financial market development ................................ 138 ......2.7 Technological readiness .......................................... 141 ......2.2 Market size ............................................................. 130 ......2.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) .........136 ......2.7 Business sophistication ......................................... 137 ......3.0 Innovation ............................................................... 135 ......2.4 Timor-Leste Emerging and Developing Asia The most problematic factors for doing business Access to financing ...........................................................16.9 Poor work ethic in national labor force ..............................14.8 Corruption .........................................................................14.2 Inefficient government bureaucracy ...................................13.3 Inadequately educated workforce ......................................12.6 Inadequate supply of infrastructure ......................................6.1 Policy instability ...................................................................4.1 Crime and theft ...................................................................3.8 Insufficient capacity to innovate ...........................................3.4 Restrictive labor regulations .................................................2.3 Tax rates..............................................................................2.2 Poor public health ...............................................................1.8 Foreign currency regulations ................................................1.4 Government instability/coups ..............................................1.1 Inflation ................................................................................0.9 Tax regulations ....................................................................0.9 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 362 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Timor-Leste The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.8 ..........132 Intellectual property protection ............................... 2.5 ..........135 Diversion of public funds ........................................ 3.2 ............75 Public trust in politicians ......................................... 3.0 ............75 Irregular payments and bribes ................................ 3.1 ..........111 Judicial independence............................................ 3.3 ............93 Favoritism in decisions of government officials ....... 2.5 ..........112 Wastefulness of government spending ................... 2.7 ............94 Burden of government regulation ........................... 3.1 ..........100 Efficiency of legal framework in settling disputes .... 3.1 ..........113 Efficiency of legal framework in challenging regs. ... 2.8 ..........111 Transparency of government policymaking............. 3.2 ..........129 Business costs of terrorism .................................... 4.9 ............92 Business costs of crime and violence..................... 3.8 ............99 Organized crime ..................................................... 4.3 ............98 Reliability of police services .................................... 3.6 ..........104 Ethical behavior of firms ......................................... 3.5 ..........114 Strength of auditing and reporting standards ......... 3.0 ..........138 Efficacy of corporate boards .................................. 3.3 ..........141 Protection of minority shareholders’ interests ......... 2.8 ..........141 Strength of investor protection, 0–10 (best)* .......... 4.7 ............98 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.9 ..........129 Quality of roads ...................................................... 1.9 ..........144 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.2 ..........138 Quality of air transport infrastructure....................... 2.2 ..........143 Available airline seat km/week, millions* ................. 2.6 ..........140 Quality of electricity supply ..................................... 3.0 ..........109 Mobile telephone subscriptions/100 pop.* ........... 57.4 ..........133 Fixed telephone lines/100 pop.* ............................. 0.3 ..........138 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. 36.1 ..............1 Gross national savings, % GDP* .......................... 63.1 ..............1 Inflation, annual % change* .................................. 10.6 ..........137 General government debt, % GDP* ....................... n/a ...........n/a Country credit rating, 0–100 (best)* ...................... 19.7 ..........131 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 8,347.5 ............55 Business impact of malaria .................................... 2.9 ............73 Tuberculosis cases/100,000 pop.* ..................... 498.0 ..........137 Business impact of tuberculosis ............................. 3.3 ..........142 HIV prevalence, % adult pop.* ............................... n/a ...........n/a Business impact of HIV/AIDS ................................. 3.5 ..........135 Infant mortality, deaths/1,000 live births* .............. 47.8 ..........121 Life expectancy, years*......................................... 67.0 ..........107 Quality of primary education ................................... 2.0 ..........142 Primary education enrollment, net %* .................. 91.1 ............99 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 56.6 ..........116 Tertiary education enrollment, gross %*................ 17.7 ............97 Quality of the education system ............................. 2.4 ..........136 Quality of math and science education .................. 2.1 ..........141 Quality of management schools ............................. 2.1 ..........143 Internet access in schools ...................................... 2.5 ..........130 Availability of research and training services ........... 2.7 ..........141 Extent of staff training ............................................ 3.0 ..........136 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 8 ............93 No. days to start a business* ............................... 94.0 ..........139 Agricultural policy costs.......................................... 3.4 ..........106 Prevalence of trade barriers ................................... 4.2 ............93 Trade tariffs, % duty* .............................................. 2.5 ............39 Prevalence of foreign ownership............................. 4.2 ............97 Business impact of rules on FDI ............................. 3.6 ..........119 Burden of customs procedures .............................. 3.1 ..........126 Imports as a percentage of GDP* ........................ 17.9 ..........141 Degree of customer orientation .............................. 3.4 ..........135 Buyer sophistication ............................................... 2.5 ..........132 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.9 ..........110 Flexibility of wage determination ............................. 4.5 ..........110 Hiring and firing practices ....................................... 3.4 ..........107 Redundancy costs, weeks of salary* ...................... 4.3 ..............8 Effect of taxation on incentives to work .................. 3.8 ............59 Pay and productivity............................................... 3.7 ............91 Reliance on professional management ................... 3.2 ..........130 Country capacity to retain talent............................. 3.6 ............58 Country capacity to attract talent ........................... 3.6 ............60 Women in labor force, ratio to men* ..................... 0.49 ..........127 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.9 ..........136 Affordability of financial services ............................. 2.9 ..........139 Financing through local equity market .................... 2.2 ..........129 Ease of access to loans ......................................... 2.5 ............94 Venture capital availability ....................................... 2.6 ............76 Soundness of banks .............................................. 3.5 ..........129 Regulation of securities exchanges ........................ 2.6 ..........131 Legal rights index, 0–10 (best)* ................................. 2 ..........137 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.0 ..........142 Firm-level technology absorption ............................ 3.3 ..........139 FDI and technology transfer ................................... 3.4 ..........138 Individuals using Internet, %* ................................. 1.1 ..........144 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........134 Int’l Internet bandwidth, kb/s per user* ................ 17.5 ............87 Mobile broadband subscriptions/100 pop.*............ 0.4 ..........129 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.7 ..........106 Foreign market size index, 1–7 (best)* .................... 1.5 ..........144 GDP (PPP$ billions)* ............................................ 25.8 ..........110 Exports as a percentage of GDP* .......................... 1.0 ..........144 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.5 ..........140 Local supplier quality.............................................. 3.0 ..........138 State of cluster development.................................. 3.0 ..........124 Nature of competitive advantage ............................ 3.2 ............90 Value chain breadth................................................ 2.9 ..........137 Control of international distribution ......................... 3.0 ..........141 Production process sophistication.......................... 2.4 ..........141 Extent of marketing ................................................ 2.6 ..........141 Willingness to delegate authority ............................ 3.0 ..........130 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.9 ..........133 Quality of scientific research institutions ................. 2.3 ..........138 Company spending on R&D................................... 2.3 ..........130 University-industry collaboration in R&D ................. 2.6 ..........130 Gov’t procurement of advanced tech products ...... 3.2 ............90 Availability of scientists and engineers .................... 2.6 ..........143 PCT patents, applications/million pop.* .................. 0.3 ............88 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 3.8 ..........138 Extent of market dominance .................................. 2.9 ..........130 Effectiveness of anti-monopoly policy ..................... 3.2 ..........132 Effect of taxation on incentives to invest................. 3.9 ............51 Total tax rate, % profits* ....................................... 11.0 ..............2 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 363 2.1: Country/Economy Profiles Trinidad and Tobago Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 1.3 GDP (US$ billions) .......................................... 27.7 GDP per capita (US$) ................................. 20,611 GDP (PPP) as share (%) of world total ............ 0.03 Trinidad and Tobago 25,000 Latin America and the Caribbean 20,000 15,000 10,000 5,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2012 2010 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 89 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 92 ......3.9 GCI 2012–2013 (out of 144) ..................................... 84 ......4.0 GCI 2011–2012 (out of 142) ..................................... 81 ......4.0 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................52 ......4.8 7 Innovation Institutions ................................................................ 95 ......3.5 Infrastructure ............................................................ 52 ......4.5 Macroeconomic environment ................................... 38 ......5.4 Health and primary education ................................... 59 ......5.9 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................81 ......3.9 Market size Higher education and training ................................... 77 ......4.2 Goods market efficiency ........................................ 101 ......4.1 Labor market efficiency ............................................ 96 ......4.0 Financial market development .................................. 52 ......4.3 Technological readiness ............................................ 64 ......4.0 Market size ............................................................. 112 ......2.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) ...........88 ......3.5 Business sophistication ........................................... 69 ......3.9 Innovation ............................................................... 100 ......3.0 Trinidad and Tobago Latin America and the Caribbean The most problematic factors for doing business Inefficient government bureaucracy ...................................19.2 Corruption .........................................................................18.4 Poor work ethic in national labor force ..............................17.9 Crime and theft .................................................................15.5 Access to financing .............................................................6.8 Insufficient capacity to innovate ...........................................5.2 Inadequate supply of infrastructure ......................................4.1 Foreign currency regulations ................................................2.8 Restrictive labor regulations .................................................2.7 Policy instability ...................................................................1.6 Tax rates..............................................................................1.6 Inadequately educated workforce ........................................1.5 Inflation ................................................................................0.9 Poor public health ...............................................................0.8 Government instability/coups ..............................................0.5 Tax regulations ....................................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 364 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Trinidad and Tobago The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.1 ............69 Intellectual property protection ............................... 3.2 ............94 Diversion of public funds ........................................ 2.5 ..........114 Public trust in politicians ......................................... 2.0 ..........123 Irregular payments and bribes ................................ 3.3 ..........106 Judicial independence............................................ 4.6 ............41 Favoritism in decisions of government officials ....... 2.1 ..........137 Wastefulness of government spending ................... 2.5 ..........114 Burden of government regulation ........................... 3.5 ............70 Efficiency of legal framework in settling disputes .... 3.5 ............83 Efficiency of legal framework in challenging regs. ... 3.1 ............90 Transparency of government policymaking............. 3.7 ............98 Business costs of terrorism .................................... 5.4 ............63 Business costs of crime and violence..................... 2.3 ..........141 Organized crime ..................................................... 4.0 ..........112 Reliability of police services .................................... 3.1 ..........117 Ethical behavior of firms ......................................... 3.4 ..........125 Strength of auditing and reporting standards ......... 4.3 ............87 Efficacy of corporate boards .................................. 4.1 ..........110 Protection of minority shareholders’ interests ......... 3.5 ..........116 Strength of investor protection, 0–10 (best)* .......... 6.7 ............22 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.6 ............52 Quality of roads ...................................................... 4.0 ............66 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 4.2 ............65 Quality of air transport infrastructure....................... 4.8 ............57 Available airline seat km/week, millions* ............... 63.8 ............96 Quality of electricity supply ..................................... 5.4 ............51 Mobile telephone subscriptions/100 pop.* ......... 144.9 ............29 Fixed telephone lines/100 pop.* ........................... 21.7 ............54 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.3 ............58 Gross national savings, % GDP* .......................... 24.2 ............46 Inflation, annual % change* .................................... 5.2 ............93 General government debt, % GDP* ..................... 30.6 ............37 Country credit rating, 0–100 (best)* ...................... 64.7 ............42 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 24.0 ............53 Business impact of tuberculosis ............................. 5.7 ............65 HIV prevalence, % adult pop.* ............................... 1.6 ..........121 Business impact of HIV/AIDS ................................. 4.7 ..........102 Infant mortality, deaths/1,000 live births* .............. 18.4 ............86 Life expectancy, years*......................................... 69.8 ............98 Quality of primary education ................................... 4.6 ............43 Primary education enrollment, net %* .................. 95.2 ............63 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 85.5 ............86 Tertiary education enrollment, gross %*................ 12.0 ..........109 Quality of the education system ............................. 4.2 ............44 Quality of math and science education .................. 4.7 ............35 Quality of management schools ............................. 4.8 ............33 Internet access in schools ...................................... 4.5 ............64 Availability of research and training services ........... 4.3 ............61 Extent of staff training ............................................ 4.2 ............51 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 7 ............78 No. days to start a business* ............................... 37.5 ..........123 Agricultural policy costs.......................................... 3.2 ..........117 Prevalence of trade barriers ................................... 5.0 ............13 Trade tariffs, % duty* ............................................ 12.9 ..........127 Prevalence of foreign ownership............................. 4.5 ............74 Business impact of rules on FDI ............................. 4.6 ............55 Burden of customs procedures .............................. 3.1 ..........127 Imports as a percentage of GDP* ........................ 63.9 ............41 Degree of customer orientation .............................. 3.3 ..........138 Buyer sophistication ............................................... 3.4 ............75 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.5 ..........133 Flexibility of wage determination ............................. 4.6 ..........100 Hiring and firing practices ....................................... 3.7 ............83 Redundancy costs, weeks of salary* .................... 20.5 ............96 Effect of taxation on incentives to work .................. 4.3 ............22 Pay and productivity............................................... 3.3 ..........124 Reliance on professional management ................... 4.3 ............61 Country capacity to retain talent............................. 3.4 ............75 Country capacity to attract talent ........................... 3.8 ............48 Women in labor force, ratio to men* ..................... 0.72 ............92 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.5 ............64 Affordability of financial services ............................. 4.3 ............53 Financing through local equity market .................... 3.5 ............64 Ease of access to loans ......................................... 2.5 ..........102 Venture capital availability ....................................... 2.2 ..........109 Soundness of banks .............................................. 5.7 ............40 Regulation of securities exchanges ........................ 3.7 ............95 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.2 ............52 Firm-level technology absorption ............................ 4.6 ............71 FDI and technology transfer ................................... 4.6 ............70 Individuals using Internet, %* ............................... 63.8 ............46 Fixed broadband Internet subscriptions/100 pop.* . 14.6 ............48 Int’l Internet bandwidth, kb/s per user* ................ 17.2 ............88 Mobile broadband subscriptions/100 pop.*.......... 18.9 ............80 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.4 ..........124 Foreign market size index, 1–7 (best)* .................... 4.1 ............84 GDP (PPP$ billions)* ............................................ 27.5 ..........107 Exports as a percentage of GDP* ........................ 88.4 ............13 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............37 Local supplier quality.............................................. 4.3 ............76 State of cluster development.................................. 3.6 ............84 Nature of competitive advantage ............................ 3.0 ..........111 Value chain breadth................................................ 3.6 ............90 Control of international distribution ......................... 4.1 ............58 Production process sophistication.......................... 4.2 ............50 Extent of marketing ................................................ 4.2 ............70 Willingness to delegate authority ............................ 3.5 ............97 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.3 ..........105 Quality of scientific research institutions ................. 3.4 ............93 Company spending on R&D................................... 2.6 ..........117 University-industry collaboration in R&D ................. 3.1 ..........106 Gov’t procurement of advanced tech products ...... 2.9 ..........118 Availability of scientists and engineers .................... 4.4 ............39 PCT patents, applications/million pop.* .................. 1.0 ............72 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.2 ............62 Extent of market dominance .................................. 3.5 ............94 Effectiveness of anti-monopoly policy ..................... 3.6 ..........106 Effect of taxation on incentives to invest................. 4.4 ............20 Total tax rate, % profits* ....................................... 29.1 ............35 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 365 2.1: Country/Economy Profiles Tunisia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 10.9 GDP (US$ billions) .......................................... 47.4 GDP per capita (US$) ................................... 4,345 GDP (PPP) as share (%) of world total ............ 0.13 Tunisia 10,000 Middle East, North Africa, and Pakistan 8,000 6,000 4,000 2,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 87 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 83 ......4.1 GCI 2012–2013 (out of 144) .................................... n/a ......n/a GCI 2011–2012 (out of 142) .................................... n/a ......n/a Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................85 ......4.4 Innovation Institutions ................................................................ 81 ......3.7 Infrastructure ............................................................ 79 ......3.8 Macroeconomic environment ................................. 111 ......4.0 Health and primary education ................................... 53 ......6.0 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................94 ......3.7 Market size Higher education and training ................................... 73 ......4.3 Goods market efficiency ........................................ 107 ......4.0 Labor market efficiency .......................................... 129 ......3.5 Financial market development ................................ 117 ......3.4 Technological readiness ............................................ 90 ......3.4 Market size ............................................................... 64 ......3.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........93 ......3.4 Business sophistication ........................................... 88 ......3.8 Innovation ................................................................. 99 ......3.0 Tunisia Middle East, North Africa, and Pakistan The most problematic factors for doing business Inefficient government bureaucracy ...................................12.7 Access to financing ...........................................................12.3 Policy instability .................................................................11.8 Restrictive labor regulations .................................................8.3 Inadequate supply of infrastructure ......................................7.6 Corruption ...........................................................................6.7 Poor work ethic in national labor force ................................6.4 Government instability/coups ..............................................5.4 Tax regulations ....................................................................5.3 Inadequately educated workforce ........................................4.6 Tax rates..............................................................................4.5 Foreign currency regulations ................................................4.4 Inflation ................................................................................4.1 Insufficient capacity to innovate ...........................................4.0 Crime and theft ...................................................................1.9 Poor public health ...............................................................0.1 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 366 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Tunisia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.0 ............76 Intellectual property protection ............................... 3.1 ..........102 Diversion of public funds ........................................ 3.5 ............56 Public trust in politicians ......................................... 3.1 ............63 Irregular payments and bribes ................................ 3.8 ............77 Judicial independence............................................ 3.6 ............75 Favoritism in decisions of government officials ....... 3.2 ............60 Wastefulness of government spending ................... 3.3 ............64 Burden of government regulation ........................... 3.5 ............66 Efficiency of legal framework in settling disputes .... 3.6 ............75 Efficiency of legal framework in challenging regs. ... 3.4 ............63 Transparency of government policymaking............. 3.8 ............90 Business costs of terrorism .................................... 3.3 ..........133 Business costs of crime and violence..................... 3.6 ..........107 Organized crime ..................................................... 4.2 ..........103 Reliability of police services .................................... 4.1 ............70 Ethical behavior of firms ......................................... 3.9 ............75 Strength of auditing and reporting standards ......... 4.5 ............78 Efficacy of corporate boards .................................. 4.1 ..........108 Protection of minority shareholders’ interests ......... 4.0 ............82 Strength of investor protection, 0–10 (best)* .......... 6.0 ............45 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.9 ............83 Quality of roads ...................................................... 3.7 ............83 Quality of railroad infrastructure .............................. 3.3 ............48 Quality of port infrastructure ................................... 3.9 ............83 Quality of air transport infrastructure....................... 4.2 ............77 Available airline seat km/week, millions* ............. 190.7 ............67 Quality of electricity supply ..................................... 5.0 ............65 Mobile telephone subscriptions/100 pop.* ......... 115.6 ............63 Fixed telephone lines/100 pop.* ............................. 9.3 ............89 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.9 ..........121 Gross national savings, % GDP* .......................... 14.9 ..........106 Inflation, annual % change* .................................... 6.1 ..........108 General government debt, % GDP* ..................... 44.4 ............75 Country credit rating, 0–100 (best)* ...................... 44.4 ............73 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 31.0 ............60 Business impact of tuberculosis ............................. 5.6 ............73 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 5.7 ............67 Infant mortality, deaths/1,000 live births* .............. 13.8 ............70 Life expectancy, years*......................................... 75.1 ............56 Quality of primary education ................................... 3.9 ............72 Primary education enrollment, net %* .................. 98.9 ............13 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 91.1 ............67 Tertiary education enrollment, gross %*................ 35.2 ............73 Quality of the education system ............................. 3.7 ............68 Quality of math and science education .................. 4.7 ............32 Quality of management schools ............................. 4.4 ............61 Internet access in schools ...................................... 3.6 ............96 Availability of research and training services ........... 3.8 ............89 Extent of staff training ............................................ 3.7 ............99 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 11.0 ............57 Agricultural policy costs.......................................... 3.4 ..........105 Prevalence of trade barriers ................................... 3.9 ..........124 Trade tariffs, % duty* ............................................ 16.3 ..........138 Prevalence of foreign ownership............................. 4.4 ............81 Business impact of rules on FDI ............................. 4.6 ............49 Burden of customs procedures .............................. 3.4 ..........106 Imports as a percentage of GDP* ........................ 58.0 ............44 Degree of customer orientation .............................. 4.3 ............89 Buyer sophistication ............................................... 3.2 ............91 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.8 ..........118 Flexibility of wage determination ............................. 4.2 ..........119 Hiring and firing practices ....................................... 3.5 ............97 Redundancy costs, weeks of salary* .................... 12.1 ............52 Effect of taxation on incentives to work .................. 3.6 ............71 Pay and productivity............................................... 3.6 ............97 Reliance on professional management ................... 3.8 ............94 Country capacity to retain talent............................. 3.0 ............95 Country capacity to attract talent ........................... 2.8 ..........104 Women in labor force, ratio to men* ..................... 0.36 ..........134 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.7 ..........120 Affordability of financial services ............................. 3.9 ............91 Financing through local equity market .................... 3.6 ............57 Ease of access to loans ......................................... 2.8 ............70 Venture capital availability ....................................... 2.7 ............68 Soundness of banks .............................................. 3.5 ..........128 Regulation of securities exchanges ........................ 3.7 ............90 Legal rights index, 0–10 (best)* ................................. 3 ..........113 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.7 ............79 Firm-level technology absorption ............................ 4.5 ............79 FDI and technology transfer ................................... 4.4 ............84 Individuals using Internet, %* ............................... 43.8 ............78 Fixed broadband Internet subscriptions/100 pop.* ... 4.8 ............81 Int’l Internet bandwidth, kb/s per user* ................ 19.1 ............84 Mobile broadband subscriptions/100 pop.*.......... 26.1 ............71 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.6 ............63 Foreign market size index, 1–7 (best)* .................... 4.6 ............69 GDP (PPP$ billions)* .......................................... 108.4 ............67 Exports as a percentage of GDP* ........................ 46.5 ............53 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.6 ............75 Local supplier quality.............................................. 4.1 ............89 State of cluster development.................................. 3.5 ............88 Nature of competitive advantage ............................ 3.2 ............91 Value chain breadth................................................ 3.8 ............70 Control of international distribution ......................... 4.0 ............68 Production process sophistication.......................... 3.5 ............96 Extent of marketing ................................................ 3.8 ..........101 Willingness to delegate authority ............................ 3.4 ..........103 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.3 ..........107 Quality of scientific research institutions ................. 3.1 ..........109 Company spending on R&D................................... 2.9 ............95 University-industry collaboration in R&D ................. 2.9 ..........117 Gov’t procurement of advanced tech products ...... 3.1 ..........103 Availability of scientists and engineers .................... 4.7 ............26 PCT patents, applications/million pop.* .................. 1.2 ............68 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.8 ............92 Extent of market dominance .................................. 3.7 ............77 Effectiveness of anti-monopoly policy ..................... 4.0 ............71 Effect of taxation on incentives to invest................. 3.8 ............69 Total tax rate, % profits* ....................................... 62.4 ..........129 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 367 2.1: Country/Economy Profiles Turkey Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 76.5 GDP (US$ billions) ........................................ 827.2 GDP per capita (US$) ................................. 10,815 GDP (PPP) as share (%) of world total ............ 1.35 Turkey 20,000 Emerging and Developing Europe 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 45 ..... 4.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 44 ......4.5 GCI 2012–2013 (out of 144) ..................................... 43 ......4.5 GCI 2011–2012 (out of 142) ..................................... 59 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (35.5%) .......................................56 ......4.8 Innovation Institutions ................................................................ 64 ......3.9 Infrastructure ............................................................ 51 ......4.6 Macroeconomic environment ................................... 58 ......4.8 Health and primary education ................................... 69 ......5.8 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................45 ......4.4 Market size Higher education and training ................................... 50 ......4.7 Goods market efficiency .......................................... 43 ......4.6 Labor market efficiency .......................................... 131 ......3.5 Financial market development .................................. 58 ......4.2 Technological readiness ............................................ 55 ......4.3 Market size ............................................................... 16 ......5.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (14.5%) ...........51 ......3.9 Business sophistication ........................................... 50 ......4.3 Innovation ................................................................. 56 ......3.4 Turkey Emerging and Developing Europe The most problematic factors for doing business Inefficient government bureaucracy ...................................11.7 Policy instability .................................................................11.5 Inadequately educated workforce ......................................10.9 Tax rates............................................................................10.8 Access to financing .............................................................9.2 Foreign currency regulations ................................................7.1 Inadequate supply of infrastructure ......................................6.7 Tax regulations ....................................................................6.6 Corruption ...........................................................................5.1 Government instability/coups ..............................................5.0 Restrictive labor regulations .................................................4.4 Inflation ................................................................................4.0 Insufficient capacity to innovate ...........................................2.8 Poor work ethic in national labor force ................................2.2 Poor public health ...............................................................1.0 Crime and theft ...................................................................0.9 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 368 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Turkey The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.6 ............47 Intellectual property protection ............................... 3.7 ............72 Diversion of public funds ........................................ 3.2 ............74 Public trust in politicians ......................................... 3.1 ............62 Irregular payments and bribes ................................ 4.3 ............54 Judicial independence............................................ 3.1 ..........101 Favoritism in decisions of government officials ....... 3.2 ............59 Wastefulness of government spending ................... 3.7 ............37 Burden of government regulation ........................... 3.5 ............71 Efficiency of legal framework in settling disputes .... 3.8 ............56 Efficiency of legal framework in challenging regs. ... 3.5 ............52 Transparency of government policymaking............. 4.4 ............42 Business costs of terrorism .................................... 4.0 ..........123 Business costs of crime and violence..................... 4.5 ............67 Organized crime ..................................................... 4.4 ............90 Reliability of police services .................................... 3.6 ..........103 Ethical behavior of firms ......................................... 4.0 ............68 Strength of auditing and reporting standards ......... 4.8 ............66 Efficacy of corporate boards .................................. 4.4 ............79 Protection of minority shareholders’ interests ......... 4.3 ............57 Strength of investor protection, 0–10 (best)* .......... 6.3 ............34 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.1 ............33 Quality of roads ...................................................... 4.9 ............40 Quality of railroad infrastructure .............................. 3.1 ............49 Quality of port infrastructure ................................... 4.4 ............57 Quality of air transport infrastructure....................... 5.4 ............34 Available airline seat km/week, millions* .......... 2,503.6 ............17 Quality of electricity supply ..................................... 4.8 ............72 Mobile telephone subscriptions/100 pop.* ........... 93.0 ..........105 Fixed telephone lines/100 pop.* ........................... 18.1 ............65 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –1.5 ............43 Gross national savings, % GDP* .......................... 13.7 ..........117 Inflation, annual % change* .................................... 7.5 ..........122 General government debt, % GDP* ..................... 35.8 ............53 Country credit rating, 0–100 (best)* ...................... 55.5 ............60 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................. 0.0 ..............1 Business impact of malaria .................................... 6.2 ..............7 Tuberculosis cases/100,000 pop.* ....................... 22.0 ............49 Business impact of tuberculosis ............................. 6.1 ............49 HIV prevalence, % adult pop.* ............................. <0.1 ..............1 Business impact of HIV/AIDS ................................. 6.1 ............41 Infant mortality, deaths/1,000 live births* .............. 12.2 ............63 Life expectancy, years*......................................... 74.9 ............59 Quality of primary education ................................... 3.5 ............94 Primary education enrollment, net %* .................. 94.0 ............68 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 86.1 ............84 Tertiary education enrollment, gross %*................ 69.4 ............28 Quality of the education system ............................. 3.4 ............89 Quality of math and science education .................. 3.5 ............98 Quality of management schools ............................. 3.8 ..........100 Internet access in schools ...................................... 4.7 ............58 Availability of research and training services ........... 4.4 ............57 Extent of staff training ............................................ 3.8 ............91 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 6.0 ............21 Agricultural policy costs.......................................... 3.7 ............77 Prevalence of trade barriers ................................... 4.3 ............77 Trade tariffs, % duty* .............................................. 5.1 ............69 Prevalence of foreign ownership............................. 4.1 ..........102 Business impact of rules on FDI ............................. 4.4 ............71 Burden of customs procedures .............................. 3.8 ............83 Imports as a percentage of GDP* ........................ 33.1 ..........106 Degree of customer orientation .............................. 5.1 ............32 Buyer sophistication ............................................... 3.5 ............67 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ............96 Flexibility of wage determination ............................. 5.3 ............49 Hiring and firing practices ....................................... 3.9 ............67 Redundancy costs, weeks of salary* .................... 29.8 ..........128 Effect of taxation on incentives to work .................. 3.3 ............98 Pay and productivity............................................... 3.8 ............81 Reliance on professional management ................... 4.3 ............63 Country capacity to retain talent............................. 3.2 ............86 Country capacity to attract talent ........................... 2.9 ..........100 Women in labor force, ratio to men* ..................... 0.43 ..........130 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.2 ............35 Affordability of financial services ............................. 4.9 ............37 Financing through local equity market .................... 3.9 ............45 Ease of access to loans ......................................... 2.9 ............64 Venture capital availability ....................................... 2.5 ............90 Soundness of banks .............................................. 5.7 ............38 Regulation of securities exchanges ........................ 4.6 ............48 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 5.3 ............45 Firm-level technology absorption ............................ 5.2 ............37 FDI and technology transfer ................................... 5.1 ............28 Individuals using Internet, %* ............................... 46.3 ............72 Fixed broadband Internet subscriptions/100 pop.* . 11.2 ............59 Int’l Internet bandwidth, kb/s per user* ................ 65.5 ............40 Mobile broadband subscriptions/100 pop.*.......... 32.3 ............62 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.2 ............16 Foreign market size index, 1–7 (best)* .................... 5.5 ............26 GDP (PPP$ billions)* ....................................... 1,174.2 ............16 Exports as a percentage of GDP* ........................ 23.6 ..........118 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.3 ............14 Local supplier quality.............................................. 4.7 ............49 State of cluster development.................................. 4.3 ............36 Nature of competitive advantage ............................ 3.2 ............95 Value chain breadth................................................ 4.0 ............54 Control of international distribution ......................... 4.6 ............26 Production process sophistication.......................... 4.5 ............36 Extent of marketing ................................................ 4.6 ............42 Willingness to delegate authority ............................ 3.6 ............88 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.7 ............77 Quality of scientific research institutions ................. 3.9 ............64 Company spending on R&D................................... 2.9 ............89 University-industry collaboration in R&D ................. 3.7 ............61 Gov’t procurement of advanced tech products ...... 4.2 ............17 Availability of scientists and engineers .................... 4.2 ............59 PCT patents, applications/million pop.* .................. 6.8 ............42 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.9 ............11 Extent of market dominance .................................. 4.2 ............39 Effectiveness of anti-monopoly policy ..................... 4.7 ............26 Effect of taxation on incentives to invest................. 3.5 ............90 Total tax rate, % profits* ....................................... 40.2 ............78 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 369 2.1: Country/Economy Profiles Uganda Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 36.8 GDP (US$ billions) .......................................... 23.1 GDP per capita (US$) ...................................... 626 GDP (PPP) as share (%) of world total ............ 0.06 Uganda 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 122 ..... 3.6 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 129 ......3.4 GCI 2012–2013 (out of 144) ................................... 123 ......3.5 GCI 2011–2012 (out of 142) ................................... 121 ......3.6 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................126 ......3.6 7 Innovation Institutions .............................................................. 115 ......3.3 Infrastructure .......................................................... 129 ......2.3 Macroeconomic environment ................................... 96 ......4.4 Health and primary education ................................. 122 ......4.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................110 ......3.5 Market size Higher education and training ................................. 129 ......2.7 Goods market efficiency ........................................ 119 ......3.9 Labor market efficiency ............................................ 27 ......4.7 Financial market development .................................. 81 ......3.8 Technological readiness .......................................... 119 ......2.8 Market size ............................................................... 86 ......3.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........104 ......3.3 Business sophistication ......................................... 109 ......3.5 Innovation ................................................................. 96 ......3.1 Uganda Sub-Saharan Africa The most problematic factors for doing business Corruption .........................................................................22.5 Access to financing ...........................................................14.0 Tax rates............................................................................13.5 Inadequate supply of infrastructure ....................................11.5 Inflation ................................................................................8.4 Inefficient government bureaucracy .....................................7.6 Poor work ethic in national labor force ................................6.1 Tax regulations ....................................................................3.2 Crime and theft ...................................................................2.8 Poor public health ...............................................................2.3 Insufficient capacity to innovate ...........................................1.8 Inadequately educated workforce ........................................1.7 Policy instability ...................................................................1.6 Foreign currency regulations ................................................1.4 Restrictive labor regulations .................................................1.1 Government instability/coups ..............................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 370 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Uganda The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.4 ..........112 Intellectual property protection ............................... 2.7 ..........124 Diversion of public funds ........................................ 2.0 ..........134 Public trust in politicians ......................................... 2.5 ............94 Irregular payments and bribes ................................ 2.8 ..........128 Judicial independence............................................ 3.0 ..........106 Favoritism in decisions of government officials ....... 2.6 ..........103 Wastefulness of government spending ................... 2.5 ..........109 Burden of government regulation ........................... 3.7 ............42 Efficiency of legal framework in settling disputes .... 3.8 ............61 Efficiency of legal framework in challenging regs. ... 3.2 ............84 Transparency of government policymaking............. 3.9 ............80 Business costs of terrorism .................................... 3.6 ..........131 Business costs of crime and violence..................... 3.4 ..........118 Organized crime ..................................................... 4.1 ..........108 Reliability of police services .................................... 3.7 ............95 Ethical behavior of firms ......................................... 3.8 ............83 Strength of auditing and reporting standards ......... 3.9 ..........114 Efficacy of corporate boards .................................. 4.6 ............63 Protection of minority shareholders’ interests ......... 3.4 ..........123 Strength of investor protection, 0–10 (best)* .......... 4.7 ............98 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.5 ..........104 Quality of roads ...................................................... 3.2 ..........105 Quality of railroad infrastructure .............................. 1.5 ..........101 Quality of port infrastructure ................................... 2.8 ..........118 Quality of air transport infrastructure....................... 3.2 ..........124 Available airline seat km/week, millions* ............... 49.6 ..........101 Quality of electricity supply ..................................... 2.9 ..........114 Mobile telephone subscriptions/100 pop.* ........... 44.1 ..........138 Fixed telephone lines/100 pop.* ............................. 0.6 ..........132 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –3.7 ............87 Gross national savings, % GDP* .......................... 14.7 ..........109 Inflation, annual % change* .................................... 5.4 ............97 General government debt, % GDP* ..................... 33.9 ............49 Country credit rating, 0–100 (best)* ...................... 32.2 ..........101 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 24,487.0 ............65 Business impact of malaria .................................... 3.3 ............65 Tuberculosis cases/100,000 pop.* ..................... 179.0 ..........115 Business impact of tuberculosis ............................. 4.3 ..........115 HIV prevalence, % adult pop.* ............................... 7.2 ..........134 Business impact of HIV/AIDS ................................. 3.1 ..........141 Infant mortality, deaths/1,000 live births* .............. 45.4 ..........117 Life expectancy, years*......................................... 58.6 ..........125 Quality of primary education ................................... 2.9 ..........115 Primary education enrollment, net %* .................. 90.9 ..........100 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 27.6 ..........138 Tertiary education enrollment, gross %*.................. 9.1 ..........118 Quality of the education system ............................. 3.6 ............78 Quality of math and science education .................. 3.1 ..........117 Quality of management schools ............................. 3.8 ............96 Internet access in schools ...................................... 3.2 ..........116 Availability of research and training services ........... 3.7 ............98 Extent of staff training ............................................ 3.6 ..........110 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 15 ..........141 No. days to start a business* ............................... 32.0 ..........112 Agricultural policy costs.......................................... 3.8 ............71 Prevalence of trade barriers ................................... 4.4 ............62 Trade tariffs, % duty* .............................................. 9.0 ............99 Prevalence of foreign ownership............................. 5.2 ............33 Business impact of rules on FDI ............................. 4.9 ............30 Burden of customs procedures .............................. 3.8 ............84 Imports as a percentage of GDP* ........................ 36.2 ..........100 Degree of customer orientation .............................. 4.1 ..........102 Buyer sophistication ............................................... 2.4 ..........136 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.1 ............91 Flexibility of wage determination ............................. 6.2 ..............2 Hiring and firing practices ....................................... 4.9 ............10 Redundancy costs, weeks of salary* ...................... 8.7 ............26 Effect of taxation on incentives to work .................. 3.6 ............74 Pay and productivity............................................... 3.2 ..........126 Reliance on professional management ................... 3.9 ............88 Country capacity to retain talent............................. 2.8 ..........113 Country capacity to attract talent ........................... 3.0 ............95 Women in labor force, ratio to men* ..................... 0.96 ..............9 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.1 ............86 Affordability of financial services ............................. 3.5 ..........121 Financing through local equity market .................... 3.1 ............85 Ease of access to loans ......................................... 2.5 ............93 Venture capital availability ....................................... 2.2 ..........106 Soundness of banks .............................................. 4.6 ............83 Regulation of securities exchanges ........................ 3.7 ............92 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.3 ............98 Firm-level technology absorption ............................ 4.1 ..........110 FDI and technology transfer ................................... 4.7 ............56 Individuals using Internet, %* ............................... 16.2 ..........110 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........126 Int’l Internet bandwidth, kb/s per user* .................. 4.2 ..........121 Mobile broadband subscriptions/100 pop.*............ 7.4 ..........102 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.2 ............82 Foreign market size index, 1–7 (best)* .................... 3.7 ..........105 GDP (PPP$ billions)* ............................................ 54.6 ............87 Exports as a percentage of GDP* ........................ 19.2 ..........131 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.7 ............59 Local supplier quality.............................................. 3.5 ..........129 State of cluster development.................................. 3.5 ............86 Nature of competitive advantage ............................ 2.8 ..........121 Value chain breadth................................................ 3.6 ............93 Control of international distribution ......................... 3.7 ..........100 Production process sophistication.......................... 3.2 ..........115 Extent of marketing ................................................ 3.4 ..........119 Willingness to delegate authority ............................ 3.1 ..........124 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............90 Quality of scientific research institutions ................. 3.6 ............78 Company spending on R&D................................... 2.9 ............97 University-industry collaboration in R&D ................. 3.7 ............62 Gov’t procurement of advanced tech products ...... 3.4 ............72 Availability of scientists and engineers .................... 3.5 ..........105 PCT patents, applications/million pop.* .................. 0.0 ..........112 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.2 ............55 Extent of market dominance .................................. 3.1 ..........124 Effectiveness of anti-monopoly policy ..................... 4.5 ............40 Effect of taxation on incentives to invest................. 3.4 ............94 Total tax rate, % profits* ....................................... 36.6 ............68 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 371 2.1: Country/Economy Profiles Ukraine Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 45.4 GDP (US$ billions) ........................................ 177.8 GDP per capita (US$) ................................... 3,919 GDP (PPP) as share (%) of world total ............ 0.39 Ukraine 15,000 Commonwealth of Independent States 12,000 9,000 6,000 3,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 76 ..... 4.1 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 84 ......4.1 GCI 2012–2013 (out of 144) ..................................... 73 ......4.1 GCI 2011–2012 (out of 142) ..................................... 82 ......4.0 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (40.0%) .......................................87 ......4.4 Innovation Institutions .............................................................. 130 ......3.0 Infrastructure ............................................................ 68 ......4.2 Macroeconomic environment ................................. 105 ......4.1 Health and primary education ................................... 43 ......6.1 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................67 ......4.1 Market size Higher education and training ................................... 40 ......4.9 Goods market efficiency ........................................ 112 ......4.0 Labor market efficiency ............................................ 80 ......4.1 Financial market development ................................ 107 ......3.5 Technological readiness ............................................ 85 ......3.5 Market size ............................................................... 38 ......4.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (10.0%) ...........92 ......3.4 Business sophistication ........................................... 99 ......3.7 Innovation ................................................................. 81 ......3.2 Ukraine Commonwealth of Independent States The most problematic factors for doing business Corruption .........................................................................17.8 Policy instability .................................................................14.0 Access to financing ...........................................................13.9 Government instability/coups ............................................10.5 Inefficient government bureaucracy .....................................8.8 Inflation ................................................................................8.0 Tax rates..............................................................................7.7 Tax regulations ....................................................................4.3 Foreign currency regulations ................................................4.1 Restrictive labor regulations .................................................3.4 Insufficient capacity to innovate ...........................................1.8 Crime and theft ...................................................................1.7 Inadequate supply of infrastructure ......................................1.7 Poor public health ...............................................................1.1 Inadequately educated workforce ........................................0.8 Poor work ethic in national labor force ................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 372 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Ukraine The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.7 ..........135 Intellectual property protection ............................... 2.7 ..........129 Diversion of public funds ........................................ 2.4 ..........124 Public trust in politicians ......................................... 2.4 ............96 Irregular payments and bribes ................................ 3.0 ..........118 Judicial independence............................................ 2.0 ..........140 Favoritism in decisions of government officials ....... 2.5 ..........116 Wastefulness of government spending ................... 1.9 ..........138 Burden of government regulation ........................... 2.9 ..........115 Efficiency of legal framework in settling disputes .... 2.6 ..........129 Efficiency of legal framework in challenging regs. ... 2.3 ..........131 Transparency of government policymaking............. 3.6 ..........104 Business costs of terrorism .................................... 4.4 ..........117 Business costs of crime and violence..................... 3.9 ............97 Organized crime ..................................................... 3.6 ..........126 Reliability of police services .................................... 2.6 ..........135 Ethical behavior of firms ......................................... 3.7 ............98 Strength of auditing and reporting standards ......... 3.7 ..........124 Efficacy of corporate boards .................................. 4.4 ............86 Protection of minority shareholders’ interests ......... 2.8 ..........139 Strength of investor protection, 0–10 (best)* .......... 4.3 ..........105 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.1 ............75 Quality of roads ...................................................... 2.2 ..........139 Quality of railroad infrastructure .............................. 4.3 ............25 Quality of port infrastructure ................................... 3.3 ..........107 Quality of air transport infrastructure....................... 3.8 ............99 Available airline seat km/week, millions* ............. 229.7 ............61 Quality of electricity supply ..................................... 4.9 ............69 Mobile telephone subscriptions/100 pop.* ......... 138.1 ............33 Fixed telephone lines/100 pop.* ........................... 26.2 ............45 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –4.5 ............99 Gross national savings, % GDP* ............................ 6.0 ..........134 Inflation, annual % change* .................................. –0.3 ............75 General government debt, % GDP* ..................... 41.0 ............66 Country credit rating, 0–100 (best)* ...................... 31.5 ..........105 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 93.0 ............90 Business impact of tuberculosis ............................. 4.8 ............98 HIV prevalence, % adult pop.* ............................... 0.9 ..........106 Business impact of HIV/AIDS ................................. 5.0 ............86 Infant mortality, deaths/1,000 live births* ................ 9.2 ............54 Life expectancy, years*......................................... 70.9 ............88 Quality of primary education ................................... 4.7 ............40 Primary education enrollment, net %* .................. 97.9 ............31 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 97.8 ............41 Tertiary education enrollment, gross %*................ 79.7 ............13 Quality of the education system ............................. 3.7 ............72 Quality of math and science education .................. 4.8 ............30 Quality of management schools ............................. 3.9 ............88 Internet access in schools ...................................... 4.3 ............67 Availability of research and training services ........... 3.9 ............84 Extent of staff training ............................................ 3.8 ............92 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 21.0 ............96 Agricultural policy costs.......................................... 3.4 ..........104 Prevalence of trade barriers ................................... 4.1 ..........106 Trade tariffs, % duty* .............................................. 2.8 ............43 Prevalence of foreign ownership............................. 3.5 ..........122 Business impact of rules on FDI ............................. 3.5 ..........125 Burden of customs procedures .............................. 3.3 ..........118 Imports as a percentage of GDP* ........................ 51.9 ............60 Degree of customer orientation .............................. 4.5 ............72 Buyer sophistication ............................................... 3.4 ............73 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.8 ..........119 Flexibility of wage determination ............................. 4.9 ............77 Hiring and firing practices ....................................... 3.9 ............64 Redundancy costs, weeks of salary* .................... 13.0 ............57 Effect of taxation on incentives to work .................. 2.6 ..........135 Pay and productivity............................................... 4.5 ............31 Reliance on professional management ................... 3.5 ..........115 Country capacity to retain talent............................. 2.3 ..........132 Country capacity to attract talent ........................... 2.3 ..........130 Women in labor force, ratio to men* ..................... 0.85 ............52 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.9 ..........102 Affordability of financial services ............................. 3.5 ..........123 Financing through local equity market .................... 2.7 ..........108 Ease of access to loans ......................................... 2.6 ............87 Venture capital availability ....................................... 2.3 ............97 Soundness of banks .............................................. 3.0 ..........138 Regulation of securities exchanges ........................ 2.9 ..........127 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.1 ..........113 Firm-level technology absorption ............................ 4.2 ..........100 FDI and technology transfer ................................... 3.7 ..........127 Individuals using Internet, %* ............................... 41.8 ............82 Fixed broadband Internet subscriptions/100 pop.* ... 8.8 ............68 Int’l Internet bandwidth, kb/s per user* ................ 52.9 ............50 Mobile broadband subscriptions/100 pop.*............ 5.4 ..........107 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.4 ............37 Foreign market size index, 1–7 (best)* .................... 5.2 ............38 GDP (PPP$ billions)* .......................................... 336.8 ............41 Exports as a percentage of GDP* ........................ 46.5 ............54 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.5 ............80 Local supplier quality.............................................. 4.2 ............83 State of cluster development.................................. 3.0 ..........128 Nature of competitive advantage ............................ 3.0 ..........107 Value chain breadth................................................ 3.7 ............79 Control of international distribution ......................... 3.9 ............82 Production process sophistication.......................... 3.5 ............95 Extent of marketing ................................................ 4.1 ............79 Willingness to delegate authority ............................ 3.2 ..........123 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.6 ............82 Quality of scientific research institutions ................. 3.8 ............67 Company spending on R&D................................... 3.1 ............66 University-industry collaboration in R&D ................. 3.5 ............74 Gov’t procurement of advanced tech products ...... 2.9 ..........123 Availability of scientists and engineers .................... 4.3 ............48 PCT patents, applications/million pop.* .................. 3.2 ............52 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.7 ..........101 Extent of market dominance .................................. 3.0 ..........129 Effectiveness of anti-monopoly policy ..................... 3.0 ..........136 Effect of taxation on incentives to invest................. 2.7 ..........137 Total tax rate, % profits* ....................................... 54.9 ..........123 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 373 2.1: Country/Economy Profiles United Arab Emirates Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 9.0 GDP (US$ billions) ........................................ 396.2 GDP per capita (US$) ................................. 43,876 GDP (PPP) as share (%) of world total ............ 0.31 United Arab Emirates 50,000 Middle East, North Africa, and Pakistan 40,000 30,000 20,000 10,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 12 ..... 5.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 19 ......5.1 GCI 2012–2013 (out of 144) ..................................... 24 ......5.1 GCI 2011–2012 (out of 142) ..................................... 27 ......4.9 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (21.2%) .........................................2 ......6.2 7 Innovation Institutions .................................................................. 7 ......5.7 Infrastructure .............................................................. 3 ......6.3 Macroeconomic environment ..................................... 5 ......6.6 Health and primary education ................................... 38 ......6.2 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................14 ......5.2 Market size Higher education and training ..................................... 6 ......5.9 Goods market efficiency ............................................ 3 ......5.6 Labor market efficiency .............................................. 8 ......5.1 Financial market development .................................. 17 ......4.9 Technological readiness ............................................ 24 ......5.5 Market size ............................................................... 46 ......4.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (28.8%) ...........21 ......4.8 Business sophistication ........................................... 14 ......5.3 Innovation ................................................................. 24 ......4.4 United Arab Emirates Middle East, North Africa, and Pakistan The most problematic factors for doing business Restrictive labor regulations ...............................................19.9 Inflation ..............................................................................15.2 Inadequately educated workforce ......................................14.4 Access to financing ...........................................................13.9 Poor work ethic in national labor force ................................7.9 Insufficient capacity to innovate ...........................................5.0 Inefficient government bureaucracy .....................................4.7 Policy instability ...................................................................4.4 Inadequate supply of infrastructure ......................................2.6 Foreign currency regulations ................................................2.2 Corruption ...........................................................................2.1 Crime and theft ...................................................................2.0 Government instability/coups ..............................................2.0 Poor public health ...............................................................1.7 Tax regulations ....................................................................1.4 Tax rates..............................................................................0.6 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 374 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles United Arab Emirates The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.5 ............23 Intellectual property protection ............................... 5.5 ............18 Diversion of public funds ........................................ 6.0 ..............7 Public trust in politicians ......................................... 6.0 ..............3 Irregular payments and bribes ................................ 6.4 ..............4 Judicial independence............................................ 5.6 ............22 Favoritism in decisions of government officials ....... 5.3 ..............5 Wastefulness of government spending ................... 6.0 ..............2 Burden of government regulation ........................... 5.2 ..............3 Efficiency of legal framework in settling disputes .... 5.2 ............17 Efficiency of legal framework in challenging regs. ... 4.7 ............15 Transparency of government policymaking............. 5.4 ............10 Business costs of terrorism .................................... 6.4 ............10 Business costs of crime and violence..................... 6.5 ..............2 Organized crime ..................................................... 6.8 ..............1 Reliability of police services .................................... 6.2 ..............7 Ethical behavior of firms ......................................... 5.8 ............11 Strength of auditing and reporting standards ......... 5.5 ............26 Efficacy of corporate boards .................................. 5.5 ............15 Protection of minority shareholders’ interests ......... 5.3 ............16 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 6.4 ..............3 Quality of roads ...................................................... 6.6 ..............1 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 6.5 ..............3 Quality of air transport infrastructure....................... 6.7 ..............2 Available airline seat km/week, millions* .......... 4,799.4 ..............6 Quality of electricity supply ..................................... 6.6 ............11 Mobile telephone subscriptions/100 pop.* ......... 171.9 ..............6 Fixed telephone lines/100 pop.* ........................... 22.3 ............50 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. 10.1 ..............5 Gross national savings, % GDP* .......................... 38.9 ............11 Inflation, annual % change* .................................... 1.1 ..............1 General government debt, % GDP* ..................... 12.3 ..............9 Country credit rating, 0–100 (best)* ...................... 73.3 ............30 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 1.7 ..............2 Business impact of tuberculosis ............................. 6.2 ............45 HIV prevalence, % adult pop.* ............................. <0.2 ..............1 Business impact of HIV/AIDS ................................. 6.3 ............30 Infant mortality, deaths/1,000 live births* ................ 7.2 ............44 Life expectancy, years*......................................... 77.0 ............41 Quality of primary education ................................... 5.4 ............13 Primary education enrollment, net %* .................. 91.2 ............98 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 92.3 ............64 Tertiary education enrollment, gross %*.................. n/a ...........n/a Quality of the education system ............................. 5.3 ..............9 Quality of math and science education .................. 5.3 ............11 Quality of management schools ............................. 5.3 ............18 Internet access in schools ...................................... 6.0 ............18 Availability of research and training services ........... 5.4 ............17 Extent of staff training ............................................ 5.1 ............11 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 8.0 ............39 Agricultural policy costs.......................................... 5.0 ..............3 Prevalence of trade barriers ................................... 5.5 ..............2 Trade tariffs, % duty* .............................................. 4.2 ............58 Prevalence of foreign ownership............................. 5.7 ............10 Business impact of rules on FDI ............................. 5.7 ..............6 Burden of customs procedures .............................. 6.0 ..............3 Imports as a percentage of GDP* ........................ 76.3 ............27 Degree of customer orientation .............................. 5.7 ..............6 Buyer sophistication ............................................... 4.5 ..............9 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.5 ............10 Flexibility of wage determination ............................. 6.1 ..............3 Hiring and firing practices ....................................... 5.1 ..............8 Redundancy costs, weeks of salary* ...................... 4.3 ..............8 Effect of taxation on incentives to work .................. 6.2 ..............3 Pay and productivity............................................... 5.2 ..............6 Reliance on professional management ................... 5.5 ............20 Country capacity to retain talent............................. 5.5 ..............6 Country capacity to attract talent ........................... 5.9 ..............3 Women in labor force, ratio to men* ..................... 0.51 ..........126 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 5.5 ............22 Affordability of financial services ............................. 5.4 ............20 Financing through local equity market .................... 4.7 ............17 Ease of access to loans ......................................... 4.7 ..............3 Venture capital availability ....................................... 4.4 ..............4 Soundness of banks .............................................. 5.9 ............23 Regulation of securities exchanges ........................ 5.5 ............12 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.3 ..............8 Firm-level technology absorption ............................ 6.0 ..............7 FDI and technology transfer ................................... 5.8 ..............3 Individuals using Internet, %* ............................... 88.0 ............10 Fixed broadband Internet subscriptions/100 pop.* . 11.1 ............61 Int’l Internet bandwidth, kb/s per user* ................ 52.3 ............51 Mobile broadband subscriptions/100 pop.*.......... 89.0 ............11 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.0 ............51 Foreign market size index, 1–7 (best)* .................... 5.5 ............29 GDP (PPP$ billions)* .......................................... 272.0 ............49 Exports as a percentage of GDP* ........................ 94.9 ..............9 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.4 ............11 Local supplier quality.............................................. 5.3 ............23 State of cluster development.................................. 5.5 ..............4 Nature of competitive advantage ............................ 4.8 ............25 Value chain breadth................................................ 5.1 ............13 Control of international distribution ......................... 5.3 ..............3 Production process sophistication.......................... 5.1 ............27 Extent of marketing ................................................ 5.6 ..............9 Willingness to delegate authority ............................ 5.0 ............13 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.7 ............25 Quality of scientific research institutions ................. 4.8 ............30 Company spending on R&D................................... 4.3 ............22 University-industry collaboration in R&D ................. 4.7 ............22 Gov’t procurement of advanced tech products ...... 5.4 ..............2 Availability of scientists and engineers .................... 5.2 ..............7 PCT patents, applications/million pop.* .................. 5.0 ............49 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 6.0 ..............9 Extent of market dominance .................................. 5.2 ............10 Effectiveness of anti-monopoly policy ..................... 5.3 ..............6 Effect of taxation on incentives to invest................. 6.3 ..............2 Total tax rate, % profits* ....................................... 14.9 ..............7 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 375 2.1: Country/Economy Profiles United Kingdom Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 64.1 GDP (US$ billions) ..................................... 2,535.8 GDP per capita (US$) ................................. 39,567 GDP (PPP) as share (%) of world total ............ 2.75 United Kingdom 50,000 Advanced economies 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ........................................................ 9 ..... 5.4 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 10 ......5.4 GCI 2012–2013 (out of 144) ....................................... 8 ......5.4 GCI 2011–2012 (out of 142) ..................................... 10 ......5.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................24 ......5.5 7 Innovation Institutions ................................................................ 12 ......5.4 Infrastructure ............................................................ 10 ......6.0 Macroeconomic environment ................................. 107 ......4.1 Health and primary education ................................... 21 ......6.4 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .......................................4 ......5.5 Market size Higher education and training ................................... 19 ......5.5 Goods market efficiency .......................................... 13 ......5.2 Labor market efficiency .............................................. 5 ......5.3 Financial market development .................................. 15 ......5.1 Technological readiness .............................................. 2 ......6.3 Market size ................................................................. 6 ......5.8 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) .............8 ......5.2 Business sophistication ............................................. 6 ......5.5 Innovation ................................................................. 12 ......5.0 United Kingdom Advanced economies The most problematic factors for doing business Access to financing ...........................................................17.3 Tax regulations ..................................................................14.2 Tax rates............................................................................12.8 Inadequately educated workforce ......................................10.8 Inefficient government bureaucracy .....................................8.5 Inadequate supply of infrastructure ......................................7.2 Insufficient capacity to innovate ...........................................6.9 Policy instability ...................................................................6.1 Poor work ethic in national labor force ................................6.1 Restrictive labor regulations .................................................6.1 Inflation ................................................................................1.4 Corruption ...........................................................................0.8 Poor public health ...............................................................0.8 Crime and theft ...................................................................0.5 Foreign currency regulations ................................................0.4 Government instability/coups ..............................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 376 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles United Kingdom The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 6.2 ..............4 Intellectual property protection ............................... 5.9 ..............8 Diversion of public funds ........................................ 5.6 ............13 Public trust in politicians ......................................... 4.5 ............19 Irregular payments and bribes ................................ 5.9 ............15 Judicial independence............................................ 6.2 ..............7 Favoritism in decisions of government officials ....... 4.5 ............17 Wastefulness of government spending ................... 3.8 ............33 Burden of government regulation ........................... 3.9 ............37 Efficiency of legal framework in settling disputes .... 5.7 ..............5 Efficiency of legal framework in challenging regs. ... 5.1 ..............7 Transparency of government policymaking............. 5.2 ............16 Business costs of terrorism .................................... 5.1 ............82 Business costs of crime and violence..................... 5.0 ............42 Organized crime ..................................................... 5.8 ............29 Reliability of police services .................................... 5.6 ............26 Ethical behavior of firms ......................................... 5.6 ............14 Strength of auditing and reporting standards ......... 5.8 ............16 Efficacy of corporate boards .................................. 5.4 ............17 Protection of minority shareholders’ interests ......... 5.3 ............15 Strength of investor protection, 0–10 (best)* .......... 8.0 ............10 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.3 ............27 Quality of roads ...................................................... 5.2 ............30 Quality of railroad infrastructure .............................. 4.9 ............16 Quality of port infrastructure ................................... 5.6 ............16 Quality of air transport infrastructure....................... 5.5 ............28 Available airline seat km/week, millions* .......... 6,725.3 ..............3 Quality of electricity supply ..................................... 6.6 ............12 Mobile telephone subscriptions/100 pop.* ......... 123.8 ............51 Fixed telephone lines/100 pop.* ........................... 52.9 ..............8 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.8 ..........119 Gross national savings, % GDP* .......................... 11.0 ..........126 Inflation, annual % change* .................................... 2.6 ..............1 General government debt, % GDP* ..................... 90.1 ..........126 Country credit rating, 0–100 (best)* ...................... 87.7 ............13 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 15.0 ............35 Business impact of tuberculosis ............................. 6.5 ............25 HIV prevalence, % adult pop.* ............................... 0.3 ............59 Business impact of HIV/AIDS ................................. 6.5 ............21 Infant mortality, deaths/1,000 live births* ................ 4.1 ............28 Life expectancy, years*......................................... 81.5 ............12 Quality of primary education ................................... 4.9 ............30 Primary education enrollment, net %* .................. 99.8 ..............6 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 95.4 ............54 Tertiary education enrollment, gross %*................ 61.9 ............36 Quality of the education system ............................. 4.6 ............23 Quality of math and science education .................. 4.3 ............63 Quality of management schools ............................. 5.8 ..............5 Internet access in schools ...................................... 6.3 ..............7 Availability of research and training services ........... 5.7 ..............7 Extent of staff training ............................................ 4.7 ............23 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 12.0 ............62 Agricultural policy costs.......................................... 4.3 ............24 Prevalence of trade barriers ................................... 4.7 ............31 Trade tariffs, % duty* .............................................. 0.8 ..............5 Prevalence of foreign ownership............................. 6.1 ..............4 Business impact of rules on FDI ............................. 5.6 ..............8 Burden of customs procedures .............................. 5.3 ............12 Imports as a percentage of GDP* ........................ 32.6 ..........107 Degree of customer orientation .............................. 5.2 ............29 Buyer sophistication ............................................... 4.6 ..............8 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 5.1 ............22 Flexibility of wage determination ............................. 5.8 ............10 Hiring and firing practices ....................................... 4.5 ............20 Redundancy costs, weeks of salary* ...................... 8.5 ............25 Effect of taxation on incentives to work .................. 4.1 ............33 Pay and productivity............................................... 4.7 ............17 Reliance on professional management ................... 5.8 ............10 Country capacity to retain talent............................. 5.0 ............11 Country capacity to attract talent ........................... 5.9 ..............5 Women in labor force, ratio to men* ..................... 0.85 ............51 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.1 ..............7 Affordability of financial services ............................. 5.5 ............19 Financing through local equity market .................... 4.9 ............10 Ease of access to loans ......................................... 2.7 ............82 Venture capital availability ....................................... 3.6 ............19 Soundness of banks .............................................. 4.5 ............89 Regulation of securities exchanges ........................ 5.3 ............22 Legal rights index, 0–10 (best)* ............................... 10 ..............1 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.5 ..............4 Firm-level technology absorption ............................ 5.7 ............14 FDI and technology transfer ................................... 5.2 ............17 Individuals using Internet, %* ............................... 89.8 ..............9 Fixed broadband Internet subscriptions/100 pop.* . 35.7 ..............7 Int’l Internet bandwidth, kb/s per user* .............. 352.6 ..............7 Mobile broadband subscriptions/100 pop.*.......... 87.2 ............12 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 5.7 ..............8 Foreign market size index, 1–7 (best)* .................... 6.1 ..............8 GDP (PPP$ billions)* ....................................... 2,390.9 ..............8 Exports as a percentage of GDP* ........................ 32.8 ............88 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.5 ..............3 Local supplier quality.............................................. 5.5 ............13 State of cluster development.................................. 5.2 ............10 Nature of competitive advantage ............................ 6.0 ..............9 Value chain breadth................................................ 5.2 ............12 Control of international distribution ......................... 4.7 ............19 Production process sophistication.......................... 5.7 ............12 Extent of marketing ................................................ 6.1 ..............2 Willingness to delegate authority ............................ 5.0 ............16 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.3 ............10 Quality of scientific research institutions ................. 6.3 ..............2 Company spending on R&D................................... 4.8 ............14 University-industry collaboration in R&D ................. 5.7 ..............4 Gov’t procurement of advanced tech products ...... 3.7 ............44 Availability of scientists and engineers .................... 4.8 ............22 PCT patents, applications/million pop.* ................ 89.1 ............18 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 6.1 ..............5 Extent of market dominance .................................. 5.0 ............15 Effectiveness of anti-monopoly policy ..................... 5.1 ............16 Effect of taxation on incentives to invest................. 4.3 ............25 Total tax rate, % profits* ....................................... 34.0 ............54 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 377 2.1: Country/Economy Profiles United States Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ...................................... 316.4 GDP (US$ billions) ................................... 16,799.7 GDP per capita (US$) ................................. 53,101 GDP (PPP) as share (%) of world total .......... 19.31 United States 60,000 Advanced economies 50,000 40,000 30,000 20,000 10,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ........................................................ 3 ..... 5.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ....................................... 5 ......5.5 GCI 2012–2013 (out of 144) ....................................... 7 ......5.5 GCI 2011–2012 (out of 142) ....................................... 5 ......5.4 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (20.0%) .......................................33 ......5.1 7 Innovation Institutions ................................................................ 30 ......4.7 Infrastructure ............................................................ 12 ......5.8 Macroeconomic environment ................................. 113 ......4.0 Health and primary education ................................... 49 ......6.1 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .......................................1 ......5.7 Market size Higher education and training ..................................... 7 ......5.8 Goods market efficiency .......................................... 16 ......5.1 Labor market efficiency .............................................. 4 ......5.3 Financial market development .................................... 9 ......5.3 Technological readiness ............................................ 16 ......5.8 Market size ................................................................. 1 ......6.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (30.0%) .............5 ......5.5 Business sophistication ............................................. 4 ......5.6 Innovation ................................................................... 5 ......5.5 United States Advanced economies The most problematic factors for doing business Tax rates............................................................................17.0 Tax regulations ..................................................................16.7 Inefficient government bureaucracy ...................................14.7 Access to financing .............................................................9.1 Restrictive labor regulations .................................................8.1 Poor work ethic in national labor force ................................7.9 Inadequately educated workforce ........................................7.8 Policy instability ...................................................................4.1 Inflation ................................................................................4.0 Inadequate supply of infrastructure ......................................2.7 Insufficient capacity to innovate ...........................................2.4 Corruption ...........................................................................2.0 Crime and theft ...................................................................1.2 Foreign currency regulations ................................................0.9 Poor public health ...............................................................0.7 Government instability/coups ..............................................0.7 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 378 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles United States The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 5.3 ............25 Intellectual property protection ............................... 5.4 ............20 Diversion of public funds ........................................ 4.6 ............30 Public trust in politicians ......................................... 3.4 ............48 Irregular payments and bribes ................................ 5.0 ............36 Judicial independence............................................ 5.1 ............30 Favoritism in decisions of government officials ....... 3.5 ............47 Wastefulness of government spending ................... 3.1 ............73 Burden of government regulation ........................... 3.4 ............82 Efficiency of legal framework in settling disputes .... 4.9 ............23 Efficiency of legal framework in challenging regs. ... 4.4 ............18 Transparency of government policymaking............. 4.4 ............44 Business costs of terrorism .................................... 4.2 ..........118 Business costs of crime and violence..................... 4.2 ............85 Organized crime ..................................................... 4.7 ............73 Reliability of police services .................................... 5.7 ............22 Ethical behavior of firms ......................................... 4.8 ............33 Strength of auditing and reporting standards ......... 5.5 ............32 Efficacy of corporate boards .................................. 5.4 ............16 Protection of minority shareholders’ interests ......... 5.0 ............23 Strength of investor protection, 0–10 (best)* .......... 8.3 ..............6 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 5.8 ............16 Quality of roads ...................................................... 5.7 ............16 Quality of railroad infrastructure .............................. 4.9 ............15 Quality of port infrastructure ................................... 5.7 ............12 Quality of air transport infrastructure....................... 6.1 ..............9 Available airline seat km/week, millions* ........ 34,115.8 ..............1 Quality of electricity supply ..................................... 6.3 ............24 Mobile telephone subscriptions/100 pop.* ........... 95.5 ..........101 Fixed telephone lines/100 pop.* ........................... 42.2 ............20 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –7.3 ..........130 Gross national savings, % GDP* .......................... 17.2 ............87 Inflation, annual % change* .................................... 1.5 ..............1 General government debt, % GDP* ................... 104.5 ..........134 Country credit rating, 0–100 (best)* ...................... 91.6 ..............7 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................M.F. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ......................... 3.6 ..............5 Business impact of tuberculosis ............................. 6.0 ............51 HIV prevalence, % adult pop.* ............................... 0.6 ............92 Business impact of HIV/AIDS ................................. 5.4 ............75 Infant mortality, deaths/1,000 live births* ................ 6.0 ............39 Life expectancy, years*......................................... 78.7 ............34 Quality of primary education ................................... 4.7 ............36 Primary education enrollment, net %* .................. 91.8 ............90 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 93.7 ............59 Tertiary education enrollment, gross %*................ 94.3 ..............3 Quality of the education system ............................. 4.6 ............27 Quality of math and science education .................. 4.4 ............51 Quality of management schools ............................. 5.6 ............11 Internet access in schools ...................................... 6.1 ............15 Availability of research and training services ........... 5.6 ..............8 Extent of staff training ............................................ 5.0 ............14 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ................................. 5.0 ............14 Agricultural policy costs.......................................... 4.2 ............33 Prevalence of trade barriers ................................... 4.4 ............71 Trade tariffs, % duty* .............................................. 1.3 ............33 Prevalence of foreign ownership............................. 5.1 ............41 Business impact of rules on FDI ............................. 4.7 ............44 Burden of customs procedures .............................. 4.8 ............33 Imports as a percentage of GDP* ........................ 16.4 ..........143 Degree of customer orientation .............................. 5.4 ............14 Buyer sophistication ............................................... 4.5 ............10 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.7 ............43 Flexibility of wage determination ............................. 5.6 ............24 Hiring and firing practices ....................................... 4.9 ............11 Redundancy costs, weeks of salary* ...................... 0.0 ..............1 Effect of taxation on incentives to work .................. 4.0 ............37 Pay and productivity............................................... 4.8 ............10 Reliance on professional management ................... 5.7 ............12 Country capacity to retain talent............................. 5.7 ..............3 Country capacity to attract talent ........................... 5.8 ..............6 Women in labor force, ratio to men* ..................... 0.86 ............49 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 6.2 ..............4 Affordability of financial services ............................. 5.7 ............10 Financing through local equity market .................... 5.2 ..............6 Ease of access to loans ......................................... 3.9 ............14 Venture capital availability ....................................... 4.4 ..............3 Soundness of banks .............................................. 5.4 ............49 Regulation of securities exchanges ........................ 5.0 ............30 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 6.5 ..............2 Firm-level technology absorption ............................ 6.1 ..............3 FDI and technology transfer ................................... 4.9 ............41 Individuals using Internet, %* ............................... 84.2 ............16 Fixed broadband Internet subscriptions/100 pop.* . 28.5 ............19 Int’l Internet bandwidth, kb/s per user* ................ 64.1 ............42 Mobile broadband subscriptions/100 pop.*.......... 92.8 ............10 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 7.0 ..............1 Foreign market size index, 1–7 (best)* .................... 6.7 ..............2 GDP (PPP$ billions)* ..................................... 16,799.7 ..............1 Exports as a percentage of GDP* ........................ 13.3 ..........137 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 5.5 ..............8 Local supplier quality.............................................. 5.6 ..............8 State of cluster development.................................. 5.4 ..............5 Nature of competitive advantage ............................ 5.6 ............14 Value chain breadth................................................ 5.4 ..............5 Control of international distribution ......................... 5.3 ..............5 Production process sophistication.......................... 6.1 ..............7 Extent of marketing ................................................ 6.2 ..............1 Willingness to delegate authority ............................ 5.2 ..............9 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 5.9 ..............2 Quality of scientific research institutions ................. 6.1 ..............4 Company spending on R&D................................... 5.5 ..............4 University-industry collaboration in R&D ................. 5.8 ..............2 Gov’t procurement of advanced tech products ...... 4.4 ..............8 Availability of scientists and engineers .................... 5.3 ..............5 PCT patents, applications/million pop.* .............. 149.8 ............11 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.9 ............10 Extent of market dominance .................................. 5.1 ............14 Effectiveness of anti-monopoly policy ..................... 5.1 ............15 Effect of taxation on incentives to invest................. 4.1 ............34 Total tax rate, % profits* ....................................... 46.3 ..........102 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 379 2.1: Country/Economy Profiles Uruguay Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) .......................................... 3.4 GDP (US$ billions) .......................................... 56.3 GDP per capita (US$) ................................. 16,609 GDP (PPP) as share (%) of world total ............ 0.07 Uruguay 20,000 Latin America and the Caribbean 15,000 10,000 5,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 80 ..... 4.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 85 ......4.1 GCI 2012–2013 (out of 144) ..................................... 74 ......4.1 GCI 2011–2012 (out of 142) ..................................... 63 ......4.3 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (21.0%) .......................................47 ......4.9 7 Innovation Institutions ................................................................ 31 ......4.7 Infrastructure ............................................................ 54 ......4.5 Macroeconomic environment ................................... 84 ......4.5 Health and primary education ................................... 58 ......5.9 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (50.0%) .....................................72 ......4.0 Market size Higher education and training ................................... 49 ......4.7 Goods market efficiency .......................................... 57 ......4.4 Labor market efficiency .......................................... 134 ......3.4 Financial market development .................................. 87 ......3.8 Technological readiness ............................................ 46 ......4.5 Market size ............................................................... 89 ......3.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (29.0%) ...........85 ......3.5 Business sophistication ........................................... 85 ......3.8 Innovation ................................................................. 82 ......3.2 Uruguay Latin America and the Caribbean The most problematic factors for doing business Restrictive labor regulations ...............................................22.8 Inefficient government bureaucracy ...................................16.4 Tax rates............................................................................11.8 Inadequately educated workforce ......................................11.1 Inadequate supply of infrastructure ....................................10.7 Access to financing .............................................................5.9 Inflation ................................................................................5.4 Poor work ethic in national labor force ................................4.9 Insufficient capacity to innovate ...........................................4.7 Tax regulations ....................................................................3.9 Foreign currency regulations ................................................0.6 Poor public health ...............................................................0.6 Crime and theft ...................................................................0.5 Corruption ...........................................................................0.4 Policy instability ...................................................................0.2 Government instability/coups ..............................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 380 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Uruguay The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.9 ............40 Intellectual property protection ............................... 4.1 ............44 Diversion of public funds ........................................ 5.2 ............21 Public trust in politicians ......................................... 4.5 ............20 Irregular payments and bribes ................................ 5.6 ............24 Judicial independence............................................ 5.6 ............21 Favoritism in decisions of government officials ....... 3.9 ............31 Wastefulness of government spending ................... 2.6 ..........104 Burden of government regulation ........................... 3.4 ............84 Efficiency of legal framework in settling disputes .... 4.0 ............50 Efficiency of legal framework in challenging regs. ... 3.8 ............40 Transparency of government policymaking............. 4.7 ............27 Business costs of terrorism .................................... 6.5 ..............4 Business costs of crime and violence..................... 3.8 ..........100 Organized crime ..................................................... 6.0 ............21 Reliability of police services .................................... 4.1 ............73 Ethical behavior of firms ......................................... 4.9 ............31 Strength of auditing and reporting standards ......... 5.1 ............46 Efficacy of corporate boards .................................. 4.5 ............70 Protection of minority shareholders’ interests ......... 4.7 ............37 Strength of investor protection, 0–10 (best)* .......... 5.0 ............83 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 4.0 ............80 Quality of roads ...................................................... 3.5 ............90 Quality of railroad infrastructure .............................. 1.3 ..........103 Quality of port infrastructure ................................... 4.7 ............48 Quality of air transport infrastructure....................... 4.0 ............90 Available airline seat km/week, millions* ............... 52.2 ............98 Quality of electricity supply ..................................... 5.7 ............38 Mobile telephone subscriptions/100 pop.* ......... 154.6 ............19 Fixed telephone lines/100 pop.* ........................... 30.8 ............35 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –2.3 ............57 Gross national savings, % GDP* .......................... 16.0 ............98 Inflation, annual % change* .................................... 8.6 ..........128 General government debt, % GDP* ..................... 59.4 ............98 Country credit rating, 0–100 (best)* ...................... 58.3 ............53 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ................................ S.L. ...........n/a Business impact of malaria ............................. N/Appl. ...........n/a Tuberculosis cases/100,000 pop.* ....................... 27.0 ............58 Business impact of tuberculosis ............................. 6.5 ............24 HIV prevalence, % adult pop.* ............................... 0.7 ............97 Business impact of HIV/AIDS ................................. 6.2 ............31 Infant mortality, deaths/1,000 live births* ................ 6.2 ............40 Life expectancy, years*......................................... 76.9 ............43 Quality of primary education ................................... 3.3 ............97 Primary education enrollment, net %* .................. 99.5 ..............8 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 90.3 ............69 Tertiary education enrollment, gross %*................ 63.2 ............33 Quality of the education system ............................. 2.9 ..........117 Quality of math and science education .................. 2.9 ..........122 Quality of management schools ............................. 4.3 ............65 Internet access in schools ...................................... 6.0 ............17 Availability of research and training services ........... 4.1 ............75 Extent of staff training ............................................ 3.9 ............80 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 6.5 ............31 Agricultural policy costs.......................................... 4.7 ............10 Prevalence of trade barriers ................................... 4.5 ............43 Trade tariffs, % duty* .............................................. 7.9 ............90 Prevalence of foreign ownership............................. 5.4 ............24 Business impact of rules on FDI ............................. 5.2 ............21 Burden of customs procedures .............................. 4.5 ............46 Imports as a percentage of GDP* ........................ 26.2 ..........127 Degree of customer orientation .............................. 4.3 ............92 Buyer sophistication ............................................... 3.6 ............54 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.4 ..........139 Flexibility of wage determination ............................. 2.4 ..........144 Hiring and firing practices ....................................... 2.9 ..........127 Redundancy costs, weeks of salary* .................... 20.8 ............98 Effect of taxation on incentives to work .................. 2.9 ..........120 Pay and productivity............................................... 2.3 ..........144 Reliance on professional management ................... 4.0 ............82 Country capacity to retain talent............................. 3.3 ............83 Country capacity to attract talent ........................... 2.7 ..........106 Women in labor force, ratio to men* ..................... 0.78 ............78 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.2 ............81 Affordability of financial services ............................. 4.1 ............71 Financing through local equity market .................... 2.2 ..........130 Ease of access to loans ......................................... 2.8 ............69 Venture capital availability ....................................... 2.6 ............77 Soundness of banks .............................................. 5.4 ............48 Regulation of securities exchanges ........................ 4.2 ............64 Legal rights index, 0–10 (best)* ................................. 4 ............96 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.6 ............83 Firm-level technology absorption ............................ 4.3 ............93 FDI and technology transfer ................................... 5.1 ............20 Individuals using Internet, %* ............................... 58.1 ............57 Fixed broadband Internet subscriptions/100 pop.* . 21.1 ............37 Int’l Internet bandwidth, kb/s per user* ................ 59.9 ............44 Mobile broadband subscriptions/100 pop.*.......... 31.9 ............63 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.2 ............84 Foreign market size index, 1–7 (best)* .................... 3.8 ..........100 GDP (PPP$ billions)* ............................................ 56.7 ............86 Exports as a percentage of GDP* ........................ 21.5 ..........128 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.9 ..........122 Local supplier quality.............................................. 4.2 ............81 State of cluster development.................................. 3.5 ............93 Nature of competitive advantage ............................ 3.7 ............58 Value chain breadth................................................ 3.6 ............88 Control of international distribution ......................... 3.9 ............78 Production process sophistication.......................... 3.7 ............78 Extent of marketing ................................................ 4.0 ............84 Willingness to delegate authority ............................ 3.4 ..........102 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............87 Quality of scientific research institutions ................. 3.7 ............74 Company spending on R&D................................... 3.0 ............81 University-industry collaboration in R&D ................. 3.6 ............70 Gov’t procurement of advanced tech products ...... 3.4 ............79 Availability of scientists and engineers .................... 3.4 ..........111 PCT patents, applications/million pop.* .................. 2.4 ............54 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.7 ..........103 Extent of market dominance .................................. 3.9 ............54 Effectiveness of anti-monopoly policy ..................... 3.6 ..........109 Effect of taxation on incentives to invest................. 3.8 ............60 Total tax rate, % profits* ....................................... 41.9 ............88 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 381 2.1: Country/Economy Profiles Venezuela Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 30.0 GDP (US$ billions) ........................................ 374.0 GDP per capita (US$) ................................. 12,472 GDP (PPP) as share (%) of world total ............ 0.47 Venezuela 15,000 Latin America and the Caribbean 12,000 9,000 6,000 3,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 131 ..... 3.3 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 134 ......3.4 GCI 2012–2013 (out of 144) ................................... 126 ......3.5 GCI 2011–2012 (out of 142) ................................... 124 ......3.5 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (56.0%) .....................................131 ......3.4 7 Innovation Institutions .............................................................. 144 ......2.1 Infrastructure .......................................................... 121 ......2.6 Macroeconomic environment ................................. 139 ......3.1 Health and primary education ................................... 87 ......5.5 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (38.0%) ...................................124 ......3.3 Market size Higher education and training ................................... 70 ......4.3 Goods market efficiency ........................................ 144 ......2.8 Labor market efficiency .......................................... 144 ......2.6 Financial market development ................................ 131 ......2.9 Technological readiness .......................................... 106 ......3.0 Market size ............................................................... 40 ......4.6 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (6.0%) ...........135 ......2.7 Business sophistication ......................................... 134 ......3.0 Innovation ............................................................... 137 ......2.4 Venezuela Latin America and the Caribbean The most problematic factors for doing business Foreign currency regulations ..............................................28.2 Restrictive labor regulations ...............................................17.6 Inflation ..............................................................................13.0 Policy instability .................................................................10.8 Inefficient government bureaucracy .....................................9.6 Corruption ...........................................................................6.5 Crime and theft ...................................................................6.0 Tax regulations ....................................................................3.1 Inadequate supply of infrastructure ......................................1.5 Poor work ethic in national labor force ................................1.5 Access to financing .............................................................0.9 Tax rates..............................................................................0.7 Inadequately educated workforce ........................................0.5 Insufficient capacity to innovate ...........................................0.2 Government instability/coups ..............................................0.0 Poor public health ...............................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 382 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Venezuela The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 1.5 ..........144 Intellectual property protection ............................... 1.6 ..........144 Diversion of public funds ........................................ 1.3 ..........144 Public trust in politicians ......................................... 1.4 ..........143 Irregular payments and bribes ................................ 2.4 ..........137 Judicial independence............................................ 1.1 ..........144 Favoritism in decisions of government officials ....... 1.5 ..........144 Wastefulness of government spending ................... 1.2 ..........144 Burden of government regulation ........................... 1.6 ..........144 Efficiency of legal framework in settling disputes .... 1.5 ..........144 Efficiency of legal framework in challenging regs. ... 1.2 ..........144 Transparency of government policymaking............. 2.3 ..........144 Business costs of terrorism .................................... 5.2 ............77 Business costs of crime and violence..................... 1.9 ..........144 Organized crime ..................................................... 2.7 ..........141 Reliability of police services .................................... 1.7 ..........144 Ethical behavior of firms ......................................... 2.9 ..........139 Strength of auditing and reporting standards ......... 4.2 ............96 Efficacy of corporate boards .................................. 4.2 ............98 Protection of minority shareholders’ interests ......... 3.0 ..........132 Strength of investor protection, 0–10 (best)* .......... 2.3 ..........140 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.6 ..........135 Quality of roads ...................................................... 2.6 ..........127 Quality of railroad infrastructure .............................. 1.6 ............99 Quality of port infrastructure ................................... 2.6 ..........130 Quality of air transport infrastructure....................... 2.7 ..........133 Available airline seat km/week, millions* ............. 232.2 ............60 Quality of electricity supply ..................................... 1.7 ..........137 Mobile telephone subscriptions/100 pop.* ......... 101.6 ............92 Fixed telephone lines/100 pop.* ........................... 25.6 ............46 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*............... –15.1 ..........144 Gross national savings, % GDP* .......................... 26.4 ............36 Inflation, annual % change* .................................. 40.7 ..........144 General government debt, % GDP* ..................... 49.8 ............85 Country credit rating, 0–100 (best)* ...................... 32.8 ............98 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................. 287.1 ............40 Business impact of malaria .................................... 5.4 ............23 Tuberculosis cases/100,000 pop.* ....................... 33.0 ............62 Business impact of tuberculosis ............................. 5.4 ............79 HIV prevalence, % adult pop.* ............................... 0.6 ............92 Business impact of HIV/AIDS ................................. 5.1 ............84 Infant mortality, deaths/1,000 live births* .............. 13.1 ............67 Life expectancy, years*......................................... 74.5 ............65 Quality of primary education ................................... 2.9 ..........114 Primary education enrollment, net %* .................. 92.3 ............83 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 85.4 ............87 Tertiary education enrollment, gross %*................ 78.1 ............16 Quality of the education system ............................. 2.6 ..........131 Quality of math and science education .................. 3.1 ..........118 Quality of management schools ............................. 4.1 ............82 Internet access in schools ...................................... 3.5 ..........103 Availability of research and training services ........... 3.1 ..........132 Extent of staff training ............................................ 3.3 ..........124 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 17 ..........144 No. days to start a business* ............................. 144.0 ..........143 Agricultural policy costs.......................................... 2.0 ..........144 Prevalence of trade barriers ................................... 3.6 ..........138 Trade tariffs, % duty* ............................................ 12.4 ..........125 Prevalence of foreign ownership............................. 3.2 ..........130 Business impact of rules on FDI ............................. 1.4 ..........144 Burden of customs procedures .............................. 1.7 ..........144 Imports as a percentage of GDP* ........................ 18.9 ..........138 Degree of customer orientation .............................. 3.2 ..........140 Buyer sophistication ............................................... 2.8 ..........121 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 2.9 ..........143 Flexibility of wage determination ............................. 3.7 ..........131 Hiring and firing practices ....................................... 1.4 ..........144 Redundancy costs, weeks of salary* ........ not possible ..........143 Effect of taxation on incentives to work .................. 3.1 ..........114 Pay and productivity............................................... 2.6 ..........138 Reliance on professional management ................... 4.3 ............67 Country capacity to retain talent............................. 1.8 ..........143 Country capacity to attract talent ........................... 1.4 ..........144 Women in labor force, ratio to men* ..................... 0.66 ..........105 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.6 ..........123 Affordability of financial services ............................. 3.9 ............88 Financing through local equity market .................... 1.8 ..........141 Ease of access to loans ......................................... 2.3 ..........113 Venture capital availability ....................................... 2.1 ..........122 Soundness of banks .............................................. 4.5 ............90 Regulation of securities exchanges ........................ 2.6 ..........132 Legal rights index, 0–10 (best)* ................................. 2 ..........137 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.8 ..........130 Firm-level technology absorption ............................ 3.9 ..........122 FDI and technology transfer ................................... 2.9 ..........143 Individuals using Internet, %* ............................... 54.9 ............60 Fixed broadband Internet subscriptions/100 pop.* ... 7.3 ............74 Int’l Internet bandwidth, kb/s per user* ................ 10.2 ............99 Mobile broadband subscriptions/100 pop.*............ 3.7 ..........113 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.4 ............34 Foreign market size index, 1–7 (best)* .................... 4.9 ............50 GDP (PPP$ billions)* .......................................... 407.9 ............33 Exports as a percentage of GDP* ........................ 23.7 ..........117 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 2.6 ..........143 Local supplier quality.............................................. 3.3 ..........134 State of cluster development.................................. 2.4 ..........143 Nature of competitive advantage ............................ 2.4 ..........139 Value chain breadth................................................ 2.9 ..........140 Control of international distribution ......................... 3.5 ..........115 Production process sophistication.......................... 3.0 ..........129 Extent of marketing ................................................ 3.4 ..........120 Willingness to delegate authority ............................ 3.3 ..........117 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.8 ..........138 Quality of scientific research institutions ................. 2.5 ..........132 Company spending on R&D................................... 2.5 ..........123 University-industry collaboration in R&D ................. 3.1 ..........107 Gov’t procurement of advanced tech products ...... 1.9 ..........144 Availability of scientists and engineers .................... 3.3 ..........118 PCT patents, applications/million pop.* .................. 0.3 ............90 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 2.9 ..........143 Extent of market dominance .................................. 2.9 ..........134 Effectiveness of anti-monopoly policy ..................... 2.3 ..........142 Effect of taxation on incentives to invest................. 2.8 ..........132 Total tax rate, % profits* ....................................... 61.7 ..........128 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 383 2.1: Country/Economy Profiles Vietnam Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 89.7 GDP (US$ billions) ........................................ 170.6 GDP per capita (US$) ................................... 1,902 GDP (PPP) as share (%) of world total ............ 0.41 Vietnam 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1990 1992 Emerging and Developing Asia 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 68 ..... 4.2 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 70 ......4.2 GCI 2012–2013 (out of 144) ..................................... 75 ......4.1 GCI 2011–2012 (out of 142) ..................................... 65 ......4.2 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .......................................79 ......4.4 7 Innovation Institutions ................................................................ 92 ......3.5 Infrastructure ............................................................ 81 ......3.7 Macroeconomic environment ................................... 75 ......4.7 Health and primary education ................................... 61 ......5.9 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) .....................................74 ......4.0 Market size Higher education and training ................................... 96 ......3.7 Goods market efficiency .......................................... 78 ......4.2 Labor market efficiency ............................................ 49 ......4.4 Financial market development .................................. 90 ......3.8 Technological readiness ............................................ 99 ......3.1 Market size ............................................................... 34 ......4.7 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............98 ......3.4 Business sophistication ......................................... 106 ......3.6 Innovation ................................................................. 87 ......3.1 Vietnam Emerging and Developing Asia The most problematic factors for doing business Access to financing ...........................................................15.9 Corruption .........................................................................11.2 Inadequately educated workforce ......................................10.2 Policy instability ...................................................................9.2 Tax regulations ....................................................................8.5 Inadequate supply of infrastructure ......................................8.0 Poor work ethic in national labor force ................................6.7 Inefficient government bureaucracy .....................................5.8 Inflation ................................................................................5.6 Tax rates..............................................................................5.5 Government instability/coups ..............................................3.7 Foreign currency regulations ................................................3.4 Restrictive labor regulations .................................................3.1 Crime and theft ...................................................................1.6 Insufficient capacity to innovate ...........................................1.5 Poor public health ...............................................................0.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 384 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Vietnam The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.6 ..........101 Intellectual property protection ............................... 3.1 ..........105 Diversion of public funds ........................................ 3.2 ............76 Public trust in politicians ......................................... 3.4 ............49 Irregular payments and bribes ................................ 3.2 ..........109 Judicial independence............................................ 3.4 ............88 Favoritism in decisions of government officials ....... 3.0 ............74 Wastefulness of government spending ................... 2.9 ............83 Burden of government regulation ........................... 3.1 ..........101 Efficiency of legal framework in settling disputes .... 3.4 ............89 Efficiency of legal framework in challenging regs. ... 3.2 ............80 Transparency of government policymaking............. 3.5 ..........116 Business costs of terrorism .................................... 4.8 ............94 Business costs of crime and violence..................... 4.5 ............64 Organized crime ..................................................... 4.6 ............78 Reliability of police services .................................... 3.7 ............99 Ethical behavior of firms ......................................... 3.6 ..........109 Strength of auditing and reporting standards ......... 3.4 ..........132 Efficacy of corporate boards .................................. 3.8 ..........128 Protection of minority shareholders’ interests ......... 3.4 ..........122 Strength of investor protection, 0–10 (best)* .......... 3.3 ..........123 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.3 ..........112 Quality of roads ...................................................... 3.2 ..........104 Quality of railroad infrastructure .............................. 3.0 ............52 Quality of port infrastructure ................................... 3.7 ............88 Quality of air transport infrastructure....................... 4.0 ............87 Available airline seat km/week, millions* ............. 816.4 ............30 Quality of electricity supply ..................................... 4.2 ............88 Mobile telephone subscriptions/100 pop.* ......... 130.9 ............42 Fixed telephone lines/100 pop.* ........................... 10.1 ............86 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –5.7 ..........118 Gross national savings, % GDP* .......................... 33.2 ............17 Inflation, annual % change* .................................... 6.6 ..........113 General government debt, % GDP* ..................... 55.0 ............93 Country credit rating, 0–100 (best)* ...................... 45.3 ............72 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ............................... 29.7 ............25 Business impact of malaria .................................... 4.7 ............40 Tuberculosis cases/100,000 pop.* ..................... 147.0 ..........106 Business impact of tuberculosis ............................. 4.5 ..........106 HIV prevalence, % adult pop.* ............................... 0.4 ............75 Business impact of HIV/AIDS ................................. 4.5 ..........110 Infant mortality, deaths/1,000 live births* .............. 18.4 ............86 Life expectancy, years*......................................... 75.6 ............50 Quality of primary education ................................... 3.5 ............91 Primary education enrollment, net %* .................. 98.1 ............29 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 75.2 ............98 Tertiary education enrollment, gross %*................ 24.6 ............88 Quality of the education system ............................. 3.3 ............94 Quality of math and science education .................. 3.9 ............82 Quality of management schools ............................. 3.4 ..........119 Internet access in schools ...................................... 5.0 ............47 Availability of research and training services ........... 3.3 ..........118 Extent of staff training ............................................ 3.9 ............85 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* ........................ 10 ..........118 No. days to start a business* ............................... 34.0 ..........118 Agricultural policy costs.......................................... 3.9 ............56 Prevalence of trade barriers ................................... 4.3 ............91 Trade tariffs, % duty* .............................................. 6.8 ............83 Prevalence of foreign ownership............................. 4.1 ..........103 Business impact of rules on FDI ............................. 4.7 ............37 Burden of customs procedures .............................. 3.6 ............94 Imports as a percentage of GDP* ........................ 85.1 ............16 Degree of customer orientation .............................. 4.1 ..........105 Buyer sophistication ............................................... 3.3 ............85 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.2 ............79 Flexibility of wage determination ............................. 5.1 ............60 Hiring and firing practices ....................................... 3.9 ............65 Redundancy costs, weeks of salary* .................... 24.6 ..........112 Effect of taxation on incentives to work .................. 3.4 ............86 Pay and productivity............................................... 4.6 ............23 Reliance on professional management ................... 3.5 ..........117 Country capacity to retain talent............................. 3.2 ............84 Country capacity to attract talent ........................... 3.4 ............74 Women in labor force, ratio to men* ..................... 0.92 ............23 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.9 ..........104 Affordability of financial services ............................. 3.6 ..........115 Financing through local equity market .................... 3.9 ............44 Ease of access to loans ......................................... 2.6 ............88 Venture capital availability ....................................... 2.7 ............71 Soundness of banks .............................................. 3.5 ..........132 Regulation of securities exchanges ........................ 3.3 ..........110 Legal rights index, 0–10 (best)* ................................. 8 ............29 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.9 ..........123 Firm-level technology absorption ............................ 3.9 ..........121 FDI and technology transfer ................................... 4.2 ............93 Individuals using Internet, %* ............................... 43.9 ............77 Fixed broadband Internet subscriptions/100 pop.* ... 5.6 ............77 Int’l Internet bandwidth, kb/s per user* ................ 15.9 ............90 Mobile broadband subscriptions/100 pop.*.......... 18.8 ............81 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 4.4 ............36 Foreign market size index, 1–7 (best)* .................... 5.6 ............25 GDP (PPP$ billions)* .......................................... 359.8 ............38 Exports as a percentage of GDP* ........................ 83.6 ............16 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............41 Local supplier quality.............................................. 4.1 ............92 State of cluster development.................................. 3.8 ............75 Nature of competitive advantage ............................ 2.6 ..........128 Value chain breadth................................................ 3.3 ..........112 Control of international distribution ......................... 3.7 ..........103 Production process sophistication.......................... 3.2 ..........116 Extent of marketing ................................................ 3.5 ..........114 Willingness to delegate authority ............................ 3.3 ..........112 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.5 ............95 Quality of scientific research institutions ................. 3.3 ............96 Company spending on R&D................................... 3.2 ............63 University-industry collaboration in R&D ................. 3.3 ............92 Gov’t procurement of advanced tech products ...... 3.9 ............34 Availability of scientists and engineers .................... 3.8 ............87 PCT patents, applications/million pop.* .................. 0.2 ............93 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.1 ............65 Extent of market dominance .................................. 3.7 ............69 Effectiveness of anti-monopoly policy ..................... 3.9 ............87 Effect of taxation on incentives to invest................. 3.5 ............93 Total tax rate, % profits* ....................................... 35.2 ............61 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 385 2.1: Country/Economy Profiles Yemen Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 26.7 GDP (US$ billions) .......................................... 39.2 GDP per capita (US$) ................................... 1,469 GDP (PPP) as share (%) of world total ............ 0.07 Yemen 8,000 Middle East, North Africa, and Pakistan 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 142 ..... 3.0 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 145 ......3.0 GCI 2012–2013 (out of 144) ................................... 140 ......3.0 GCI 2011–2012 (out of 142) ................................... 138 ......3.1 Factor driven Transition 2–3 2 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................142 ......3.0 Innovation Institutions .............................................................. 141 ......2.7 Infrastructure .......................................................... 142 ......1.9 Macroeconomic environment ................................. 140 ......3.0 Health and primary education ................................. 116 ......4.6 7 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................139 ......2.9 Market size Higher education and training ................................. 139 ......2.3 Goods market efficiency ........................................ 131 ......3.6 Labor market efficiency .......................................... 138 ......3.2 Financial market development ................................ 143 ......2.2 Technological readiness .......................................... 136 ......2.4 Market size ............................................................... 83 ......3.4 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........134 ......2.8 Business sophistication ......................................... 120 ......3.4 Innovation ............................................................... 143 ......2.1 Yemen Middle East, North Africa, and Pakistan The most problematic factors for doing business Inadequate supply of infrastructure ....................................16.3 Policy instability .................................................................15.5 Corruption .........................................................................13.6 Access to financing ...........................................................12.9 Inadequately educated workforce ........................................8.5 Inefficient government bureaucracy .....................................8.3 Restrictive labor regulations .................................................5.6 Crime and theft ...................................................................4.1 Government instability/coups ..............................................3.5 Foreign currency regulations ................................................3.0 Poor work ethic in national labor force ................................2.5 Tax regulations ....................................................................2.5 Inflation ................................................................................1.4 Insufficient capacity to innovate ...........................................1.0 Tax rates..............................................................................0.7 Poor public health ...............................................................0.5 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 386 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Yemen The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 3.1 ..........129 Intellectual property protection ............................... 2.3 ..........137 Diversion of public funds ........................................ 1.8 ..........140 Public trust in politicians ......................................... 2.4 ............98 Irregular payments and bribes ................................ 2.1 ..........144 Judicial independence............................................ 2.3 ..........128 Favoritism in decisions of government officials ....... 2.1 ..........136 Wastefulness of government spending ................... 1.8 ..........141 Burden of government regulation ........................... 3.0 ..........107 Efficiency of legal framework in settling disputes .... 2.3 ..........141 Efficiency of legal framework in challenging regs. ... 2.5 ..........123 Transparency of government policymaking............. 3.7 ............96 Business costs of terrorism .................................... 2.3 ..........144 Business costs of crime and violence..................... 2.4 ..........139 Organized crime ..................................................... 3.3 ..........133 Reliability of police services .................................... 2.3 ..........140 Ethical behavior of firms ......................................... 3.4 ..........126 Strength of auditing and reporting standards ......... 2.3 ..........143 Efficacy of corporate boards .................................. 3.4 ..........140 Protection of minority shareholders’ interests ......... 3.0 ..........134 Strength of investor protection, 0–10 (best)* .......... 4.0 ..........113 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 2.5 ..........136 Quality of roads ...................................................... 2.5 ..........131 Quality of railroad infrastructure ....................... N/Appl. ...........n/a Quality of port infrastructure ................................... 2.6 ..........128 Quality of air transport infrastructure....................... 2.3 ..........141 Available airline seat km/week, millions* ............... 42.5 ..........104 Quality of electricity supply ..................................... 1.5 ..........142 Mobile telephone subscriptions/100 pop.* ........... 69.0 ..........127 Fixed telephone lines/100 pop.* ............................. 4.7 ..........107 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –7.1 ..........127 Gross national savings, % GDP* ............................ 5.4 ..........135 Inflation, annual % change* .................................. 11.1 ..........139 General government debt, % GDP* ..................... 49.9 ............87 Country credit rating, 0–100 (best)* ...................... 22.7 ..........125 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 1,802.8 ............46 Business impact of malaria .................................... 4.3 ............48 Tuberculosis cases/100,000 pop.* ....................... 49.0 ............71 Business impact of tuberculosis ............................. 4.9 ............95 HIV prevalence, % adult pop.* ............................... 0.1 ..............1 Business impact of HIV/AIDS ................................. 5.3 ............77 Infant mortality, deaths/1,000 live births* .............. 46.3 ..........119 Life expectancy, years*......................................... 62.9 ..........119 Quality of primary education ................................... 2.0 ..........144 Primary education enrollment, net %* .................. 86.3 ..........112 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 46.9 ..........123 Tertiary education enrollment, gross %*................ 10.3 ..........113 Quality of the education system ............................. 1.9 ..........143 Quality of math and science education .................. 2.3 ..........140 Quality of management schools ............................. 2.9 ..........135 Internet access in schools ...................................... 1.7 ..........141 Availability of research and training services ........... 2.9 ..........136 Extent of staff training ............................................ 3.2 ..........132 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 6 ............57 No. days to start a business* ............................... 40.0 ..........127 Agricultural policy costs.......................................... 2.9 ..........135 Prevalence of trade barriers ................................... 3.8 ..........130 Trade tariffs, % duty* .............................................. 5.7 ............72 Prevalence of foreign ownership............................. 2.5 ..........142 Business impact of rules on FDI ............................. 3.6 ..........122 Burden of customs procedures .............................. 3.0 ..........131 Imports as a percentage of GDP* ........................ 39.1 ............91 Degree of customer orientation .............................. 4.0 ..........111 Buyer sophistication ............................................... 2.2 ..........140 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.0 ............98 Flexibility of wage determination ............................. 5.8 ............11 Hiring and firing practices ....................................... 3.8 ............77 Redundancy costs, weeks of salary* .................... 27.4 ..........120 Effect of taxation on incentives to work .................. 2.8 ..........127 Pay and productivity............................................... 3.6 ............98 Reliance on professional management ................... 3.1 ..........133 Country capacity to retain talent............................. 1.9 ..........139 Country capacity to attract talent ........................... 2.0 ..........137 Women in labor force, ratio to men* ..................... 0.35 ..........136 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 2.7 ..........141 Affordability of financial services ............................. 2.4 ..........143 Financing through local equity market .................... 2.0 ..........135 Ease of access to loans ......................................... 1.7 ..........133 Venture capital availability ....................................... 1.7 ..........139 Soundness of banks .............................................. 3.0 ..........137 Regulation of securities exchanges ........................ 1.4 ..........143 Legal rights index, 0–10 (best)* ................................. 2 ..........137 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 3.2 ..........138 Firm-level technology absorption ............................ 3.7 ..........134 FDI and technology transfer ................................... 3.4 ..........136 Individuals using Internet, %* ............................... 20.0 ..........102 Fixed broadband Internet subscriptions/100 pop.* ... 1.1 ..........105 Int’l Internet bandwidth, kb/s per user* .................. 2.5 ..........136 Mobile broadband subscriptions/100 pop.*............ 0.2 ..........131 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 3.3 ............79 Foreign market size index, 1–7 (best)* .................... 3.9 ............93 GDP (PPP$ billions)* ............................................ 61.8 ............82 Exports as a percentage of GDP* ........................ 26.0 ..........110 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.8 ............40 Local supplier quality.............................................. 2.9 ..........140 State of cluster development.................................. 3.2 ..........111 Nature of competitive advantage ............................ 2.6 ..........129 Value chain breadth................................................ 3.1 ..........127 Control of international distribution ......................... 4.7 ............17 Production process sophistication.......................... 2.9 ..........130 Extent of marketing ................................................ 2.9 ..........136 Willingness to delegate authority ............................ 3.8 ............60 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 2.9 ..........135 Quality of scientific research institutions ................. 1.7 ..........144 Company spending on R&D................................... 2.0 ..........143 University-industry collaboration in R&D ................. 2.0 ..........143 Gov’t procurement of advanced tech products ...... 2.1 ..........141 Availability of scientists and engineers .................... 3.1 ..........126 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.3 ..........125 Extent of market dominance .................................. 2.9 ..........135 Effectiveness of anti-monopoly policy ..................... 3.0 ..........135 Effect of taxation on incentives to invest................. 3.2 ..........112 Total tax rate, % profits* ....................................... 32.7 ............50 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 387 2.1: Country/Economy Profiles Zambia Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 14.5 GDP (US$ billions) .......................................... 22.4 GDP per capita (US$) ................................... 1,542 GDP (PPP) as share (%) of world total ............ 0.03 Zambia 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 ...................................................... 96 ..... 3.9 Transition 1–2 1 GCI 2013–2014 (out of 148) ..................................... 93 ......3.9 GCI 2012–2013 (out of 144) ................................... 102 ......3.8 GCI 2011–2012 (out of 142) ................................... 113 ......3.7 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................109 ......3.9 7 Innovation Institutions ................................................................ 52 ......4.1 Infrastructure .......................................................... 118 ......2.7 Macroeconomic environment ................................. 103 ......4.2 Health and primary education ................................. 118 ......4.6 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) .....................................86 ......3.9 Market size Higher education and training ................................... 80 ......4.2 Goods market efficiency .......................................... 37 ......4.6 Labor market efficiency ............................................ 88 ......4.1 Financial market development .................................. 50 ......4.4 Technological readiness .......................................... 105 ......3.0 Market size ............................................................. 110 ......2.9 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) .............57 ......3.8 Business sophistication ........................................... 60 ......4.1 Innovation ................................................................. 54 ......3.4 Zambia Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................23.7 Corruption .........................................................................14.8 Tax rates..............................................................................9.9 Poor work ethic in national labor force ................................9.1 Inadequate supply of infrastructure ......................................8.6 Inefficient government bureaucracy .....................................6.3 Inflation ................................................................................4.6 Policy instability ...................................................................3.7 Foreign currency regulations ................................................3.5 Insufficient capacity to innovate ...........................................3.0 Inadequately educated workforce ........................................2.8 Tax regulations ....................................................................2.6 Restrictive labor regulations .................................................2.3 Poor public health ...............................................................2.1 Crime and theft ...................................................................1.9 Government instability/coups ..............................................1.2 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 388 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Zambia The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 4.6 ............44 Intellectual property protection ............................... 4.0 ............50 Diversion of public funds ........................................ 3.3 ............65 Public trust in politicians ......................................... 3.0 ............73 Irregular payments and bribes ................................ 3.7 ............83 Judicial independence............................................ 3.7 ............69 Favoritism in decisions of government officials ....... 3.4 ............51 Wastefulness of government spending ................... 3.6 ............46 Burden of government regulation ........................... 3.9 ............35 Efficiency of legal framework in settling disputes .... 4.4 ............33 Efficiency of legal framework in challenging regs. ... 3.3 ............71 Transparency of government policymaking............. 4.5 ............36 Business costs of terrorism .................................... 6.0 ............29 Business costs of crime and violence..................... 4.6 ............62 Organized crime ..................................................... 5.5 ............47 Reliability of police services .................................... 4.0 ............79 Ethical behavior of firms ......................................... 4.0 ............66 Strength of auditing and reporting standards ......... 4.7 ............67 Efficacy of corporate boards .................................. 4.9 ............47 Protection of minority shareholders’ interests ......... 4.7 ............36 Strength of investor protection, 0–10 (best)* .......... 5.3 ............68 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.7 ............92 Quality of roads ...................................................... 3.6 ............86 Quality of railroad infrastructure .............................. 2.0 ............87 Quality of port infrastructure ................................... 2.7 ..........124 Quality of air transport infrastructure....................... 3.5 ..........111 Available airline seat km/week, millions* ............... 37.6 ..........108 Quality of electricity supply ..................................... 3.3 ..........104 Mobile telephone subscriptions/100 pop.* ........... 71.5 ..........118 Fixed telephone lines/100 pop.* ............................. 0.8 ..........129 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –8.6 ..........137 Gross national savings, % GDP* .......................... 25.5 ............38 Inflation, annual % change* .................................... 7.0 ..........119 General government debt, % GDP* ..................... 35.1 ............51 Country credit rating, 0–100 (best)* ...................... 35.9 ............90 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* ........................ 26,650.2 ............68 Business impact of malaria .................................... 3.9 ............57 Tuberculosis cases/100,000 pop.* ..................... 427.0 ..........135 Business impact of tuberculosis ............................. 4.3 ..........116 HIV prevalence, % adult pop.* ............................. 12.7 ..........137 Business impact of HIV/AIDS ................................. 3.9 ..........129 Infant mortality, deaths/1,000 live births* .............. 56.4 ..........129 Life expectancy, years*......................................... 57.0 ..........128 Quality of primary education ................................... 3.8 ............77 Primary education enrollment, net %* .................. 93.7 ............74 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* ........ 100.8 ............32 Tertiary education enrollment, gross %*.................. 2.4 ..........137 Quality of the education system ............................. 4.3 ............36 Quality of math and science education .................. 4.3 ............62 Quality of management schools ............................. 4.7 ............42 Internet access in schools ...................................... 3.6 ............97 Availability of research and training services ........... 4.4 ............48 Extent of staff training ............................................ 4.1 ............63 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 5 ............32 No. days to start a business* ................................. 6.5 ............31 Agricultural policy costs.......................................... 4.1 ............35 Prevalence of trade barriers ................................... 4.5 ............52 Trade tariffs, % duty* ............................................ 10.7 ..........110 Prevalence of foreign ownership............................. 5.3 ............26 Business impact of rules on FDI ............................. 5.0 ............24 Burden of customs procedures .............................. 4.2 ............59 Imports as a percentage of GDP* ........................ 48.6 ............70 Degree of customer orientation .............................. 4.7 ............56 Buyer sophistication ............................................... 3.4 ............74 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 4.4 ............60 Flexibility of wage determination ............................. 5.1 ............63 Hiring and firing practices ....................................... 4.5 ............16 Redundancy costs, weeks of salary* .................... 50.6 ..........138 Effect of taxation on incentives to work .................. 4.2 ............26 Pay and productivity............................................... 3.6 ............96 Reliance on professional management ................... 4.7 ............38 Country capacity to retain talent............................. 3.4 ............67 Country capacity to attract talent ........................... 3.9 ............43 Women in labor force, ratio to men* ..................... 0.85 ............53 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 4.3 ............74 Affordability of financial services ............................. 3.9 ............94 Financing through local equity market .................... 3.7 ............52 Ease of access to loans ......................................... 2.5 ............99 Venture capital availability ....................................... 2.4 ............95 Soundness of banks .............................................. 5.1 ............59 Regulation of securities exchanges ........................ 4.7 ............44 Legal rights index, 0–10 (best)* ................................. 9 ............11 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.6 ............82 Firm-level technology absorption ............................ 4.7 ............67 FDI and technology transfer ................................... 4.7 ............64 Individuals using Internet, %* ............................... 15.4 ..........114 Fixed broadband Internet subscriptions/100 pop.* ... 0.1 ..........131 Int’l Internet bandwidth, kb/s per user* .................. 4.2 ..........122 Mobile broadband subscriptions/100 pop.*............ 0.7 ..........125 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.6 ..........113 Foreign market size index, 1–7 (best)* .................... 3.8 ..........101 GDP (PPP$ billions)* ............................................ 25.5 ..........111 Exports as a percentage of GDP* ........................ 47.8 ............50 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 4.9 ............34 Local supplier quality.............................................. 4.2 ............80 State of cluster development.................................. 4.1 ............46 Nature of competitive advantage ............................ 3.8 ............49 Value chain breadth................................................ 3.9 ............59 Control of international distribution ......................... 3.8 ............93 Production process sophistication.......................... 3.8 ............74 Extent of marketing ................................................ 4.1 ............75 Willingness to delegate authority ............................ 4.0 ............48 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 4.1 ............45 Quality of scientific research institutions ................. 3.4 ............89 Company spending on R&D................................... 3.4 ............49 University-industry collaboration in R&D ................. 3.5 ............75 Gov’t procurement of advanced tech products ...... 4.0 ............25 Availability of scientists and engineers .................... 4.3 ............51 PCT patents, applications/million pop.* .................. 0.0 ..........124 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 5.6 ............25 Extent of market dominance .................................. 4.2 ............38 Effectiveness of anti-monopoly policy ..................... 4.5 ............36 Effect of taxation on incentives to invest................. 3.9 ............56 Total tax rate, % profits* ....................................... 15.1 ..............8 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 389 2.1: Country/Economy Profiles Zimbabwe Key indicators, 2013 GDP (PPP) per capita (int’l $), 1990–2013 Population (millions) ........................................ 13.1 GDP (US$ billions) .......................................... 13.0 GDP per capita (US$) ...................................... 987 GDP (PPP) as share (%) of world total ............ 0.01 Zimbabwe 3,000 Sub-Saharan Africa 2,500 2,000 1,500 1,000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global Competitiveness Index Rank (out of 144) Stage of development Score (1–7) GCI 2014–2015 .................................................... 124 ..... 3.5 Transition 1–2 1 GCI 2013–2014 (out of 148) ................................... 131 ......3.4 GCI 2012–2013 (out of 144) ................................... 132 ......3.3 GCI 2011–2012 (out of 142) ................................... 132 ......3.3 Transition 2–3 2 Factor driven 3 Efficiency driven Innovation driven Institutions Basic requirements (60.0%) .....................................114 ......3.8 7 Innovation Institutions .............................................................. 113 ......3.3 Infrastructure .......................................................... 124 ......2.5 Macroeconomic environment ................................... 87 ......4.5 Health and primary education ................................. 106 ......5.0 Infrastructure 6 5 Business sophistication Macroeconomic environment 4 3 2 Efficiency enhancers (35.0%) ...................................133 ......3.1 Market size Higher education and training ................................. 118 ......3.2 Goods market efficiency ........................................ 133 ......3.6 Labor market efficiency .......................................... 137 ......3.2 Financial market development ................................ 112 ......3.4 Technological readiness .......................................... 109 ......2.9 Market size ............................................................. 132 ......2.3 Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency Innovation and sophistication factors (5.0%) ...........127 ......3.0 Business sophistication ......................................... 130 ......3.3 Innovation ............................................................... 125 ......2.6 Zimbabwe Sub-Saharan Africa The most problematic factors for doing business Access to financing ...........................................................24.6 Policy instability .................................................................19.7 Inadequate supply of infrastructure ....................................15.0 Inefficient government bureaucracy ...................................11.9 Corruption .........................................................................11.4 Restrictive labor regulations ...............................................10.8 Tax regulations ....................................................................2.1 Tax rates..............................................................................1.5 Government instability/coups ..............................................0.9 Insufficient capacity to innovate ...........................................0.7 Poor work ethic in national labor force ................................0.7 Crime and theft ...................................................................0.3 Poor public health ...............................................................0.3 Inadequately educated workforce ........................................0.1 Foreign currency regulations ................................................0.0 Inflation ................................................................................0.0 0 Note: 5 10 15 Percent of responses From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings. 390 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 20 25 30 2.1: Country/Economy Profiles Zimbabwe The Global Competitiveness Index in detail INDICATOR VALUE RANK/144 INDICATOR 1st pillar: Institutions VALUE RANK/144 6th pillar: Goods market efficiency (cont’d.) 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 Property rights ....................................................... 2.4 ..........142 Intellectual property protection ............................... 2.9 ..........116 Diversion of public funds ........................................ 2.6 ..........109 Public trust in politicians ......................................... 1.9 ..........132 Irregular payments and bribes ................................ 3.4 ..........101 Judicial independence............................................ 2.5 ..........120 Favoritism in decisions of government officials ....... 2.5 ..........117 Wastefulness of government spending ................... 2.1 ..........135 Burden of government regulation ........................... 2.8 ..........119 Efficiency of legal framework in settling disputes .... 3.4 ............93 Efficiency of legal framework in challenging regs. ... 2.5 ..........120 Transparency of government policymaking............. 3.5 ..........115 Business costs of terrorism .................................... 6.5 ..............8 Business costs of crime and violence..................... 4.7 ............58 Organized crime ..................................................... 5.7 ............31 Reliability of police services .................................... 3.0 ..........122 Ethical behavior of firms ......................................... 3.6 ..........106 Strength of auditing and reporting standards ......... 5.2 ............38 Efficacy of corporate boards .................................. 4.3 ............88 Protection of minority shareholders’ interests ......... 4.1 ............74 Strength of investor protection, 0–10 (best)* .......... 4.3 ..........105 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure ............................... 3.1 ..........121 Quality of roads ...................................................... 3.3 ..........100 Quality of railroad infrastructure .............................. 2.2 ............82 Quality of port infrastructure ................................... 3.6 ............96 Quality of air transport infrastructure....................... 3.3 ..........116 Available airline seat km/week, millions* ............... 19.0 ..........124 Quality of electricity supply ..................................... 2.1 ..........131 Mobile telephone subscriptions/100 pop.* ........... 96.3 ............99 Fixed telephone lines/100 pop.* ............................. 2.1 ..........119 3.01 3.02 3.03 3.04 3.05 Government budget balance, % GDP*................. –0.1 ............26 Gross national savings, % GDP* .......................... –5.7 ..........143 Inflation, annual % change* .................................... 1.6 ..............1 General government debt, % GDP* ..................... 54.7 ............90 Country credit rating, 0–100 (best)* ........................ 6.0 ..........143 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria cases/100,000 pop.* .......................... 8,452.6 ............56 Business impact of malaria .................................... 4.9 ............36 Tuberculosis cases/100,000 pop.* ..................... 562.0 ..........139 Business impact of tuberculosis ............................. 4.3 ..........118 HIV prevalence, % adult pop.* ............................. 14.7 ..........139 Business impact of HIV/AIDS ................................. 3.9 ..........126 Infant mortality, deaths/1,000 live births* .............. 55.7 ..........127 Life expectancy, years*......................................... 58.0 ..........127 Quality of primary education ................................... 4.3 ............54 Primary education enrollment, net %* .................. 95.6 ............59 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %* .......... 51.9 ..........120 Tertiary education enrollment, gross %*.................. 5.9 ..........126 Quality of the education system ............................. 4.2 ............43 Quality of math and science education .................. 4.2 ............66 Quality of management schools ............................. 4.1 ............80 Internet access in schools ...................................... 3.1 ..........118 Availability of research and training services ........... 3.5 ..........107 Extent of staff training ............................................ 3.9 ............84 2nd pillar: Infrastructure 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 No. procedures to start a business* .......................... 9 ..........106 No. days to start a business* ............................... 90.0 ..........137 Agricultural policy costs.......................................... 2.5 ..........142 Prevalence of trade barriers ................................... 4.9 ............17 Trade tariffs, % duty* ............................................ 21.0 ..........142 Prevalence of foreign ownership............................. 4.3 ............94 Business impact of rules on FDI ............................. 1.8 ..........142 Burden of customs procedures .............................. 3.0 ..........133 Imports as a percentage of GDP* ........................ 50.1 ............65 Degree of customer orientation .............................. 3.6 ..........127 Buyer sophistication ............................................... 2.9 ..........115 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ................. 3.9 ..........112 Flexibility of wage determination ............................. 2.6 ..........141 Hiring and firing practices ....................................... 2.2 ..........142 Redundancy costs, weeks of salary* .................... 82.3 ..........142 Effect of taxation on incentives to work .................. 3.3 ..........101 Pay and productivity............................................... 2.3 ..........143 Reliance on professional management ................... 4.7 ............41 Country capacity to retain talent............................. 2.7 ..........120 Country capacity to attract talent ........................... 2.8 ..........102 Women in labor force, ratio to men* ..................... 0.93 ............16 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services ............................... 3.8 ..........107 Affordability of financial services ............................. 3.1 ..........131 Financing through local equity market .................... 3.2 ............80 Ease of access to loans ......................................... 1.7 ..........135 Venture capital availability ....................................... 1.6 ..........140 Soundness of banks .............................................. 3.1 ..........136 Regulation of securities exchanges ........................ 4.3 ............63 Legal rights index, 0–10 (best)* ................................. 7 ............43 9.01 9.02 9.03 9.04 9.05 9.06 9.07 Availability of latest technologies ............................ 4.3 ..........101 Firm-level technology absorption ............................ 4.1 ..........111 FDI and technology transfer ................................... 3.5 ..........133 Individuals using Internet, %* ............................... 18.5 ..........105 Fixed broadband Internet subscriptions/100 pop.* ... 0.7 ..........111 Int’l Internet bandwidth, kb/s per user* .................. 3.5 ..........127 Mobile broadband subscriptions/100 pop.*.......... 37.8 ............56 10.01 10.02 10.03 10.04 Domestic market size index, 1–7 (best)*................. 2.1 ..........131 Foreign market size index, 1–7 (best)* .................... 3.1 ..........131 GDP (PPP$ billions)* ............................................ 10.3 ..........131 Exports as a percentage of GDP* ........................ 35.1 ............79 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity ........................................... 3.7 ..........133 Local supplier quality.............................................. 3.5 ..........126 State of cluster development.................................. 2.9 ..........131 Nature of competitive advantage ............................ 2.5 ..........137 Value chain breadth................................................ 2.9 ..........138 Control of international distribution ......................... 3.7 ..........101 Production process sophistication.......................... 2.5 ..........135 Extent of marketing ................................................ 3.4 ..........124 Willingness to delegate authority ............................ 3.6 ............91 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation........................................... 3.1 ..........121 Quality of scientific research institutions ................. 3.0 ..........112 Company spending on R&D................................... 2.3 ..........129 University-industry collaboration in R&D ................. 2.8 ..........121 Gov’t procurement of advanced tech products ...... 2.4 ..........140 Availability of scientists and engineers .................... 3.6 ............99 PCT patents, applications/million pop.* .................. 0.1 ............98 7th pillar: Labor market efficiency 8th pillar: Financial market development 3rd pillar: Macroeconomic environment 4th pillar: Health and primary education 5th pillar: Higher education and training 6th pillar: Goods market efficiency 6.01 6.02 6.03 6.04 6.05 Intensity of local competition .................................. 4.9 ............77 Extent of market dominance .................................. 3.3 ..........102 Effectiveness of anti-monopoly policy ..................... 3.7 ............99 Effect of taxation on incentives to invest................. 3.5 ............88 Total tax rate, % profits* ....................................... 35.3 ............62 9th pillar: Technological readiness 10th pillar: Market size 11th pillar: Business sophistication 12th pillar: Innovation Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 101. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 391 2014 World Economic Forum Data Tables 2014 World Economic Forum 2.2: Data Tables How to Read the Data Tables The following pages provide detailed data for all 144 economies included in The Global Competitiveness Report 2014–2015. The data tables are organized into 13 sections: Pillar 1: Pillar 2: Pillar 3: Pillar 4: Pillar 5: Pillar 6: Pillar 7: Pillar 8: Pillar 9: Pillar 10: Pillar 11: Pillar 12: Key indicators Institutions Infrastructure Macroeconomic environment Health and primary education Higher education and training Goods market efficiency Labor market efficiency Financial market development Technological readiness Market size Business sophistication Innovation EXECUTIVE OPINION SURVEY INDICATORS In the tables, indicators derived from the World Economic Forum’s Executive Opinion Survey (the Survey) have country scores represented by blue-colored bar graphs. Survey questions asked for responses on a scale of 1 to 7, where an answer of 1 and 7 always corresponds to the worst and best possible outcome, respectively. In the tables, the Survey question and the two extreme answers are shown above the rankings. Country scores are reported with a precision of one decimal point, although exact figures are used to determine rankings. The sample mean is represented by a dotted line running across the bar graphs. For more information on the Survey and a detailed explanation of how scores are computed, refer to Chapter 1.3. 2.2: Data Tables 1.01 Property rights In your country, how strong is the protection of property rights, including financial assets? [1 = extremely weak; 7 = extremely strong] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Finland ...........................................6.4 Singapore ......................................6.2 Switzerland ....................................6.2 United Kingdom .............................6.2 Luxembourg ..................................6.1 Hong Kong SAR ............................6.1 Qatar .............................................6.0 Norway ..........................................6.0 Canada ..........................................6.0 New Zealand .................................6.0 Japan ............................................5.9 Puerto Rico ....................................5.9 Ireland............................................5.9 Netherlands ...................................5.8 Austria ...........................................5.8 Taiwan, China ................................5.7 Denmark ........................................5.7 Sweden .........................................5.7 Germany ........................................5.6 South Africa ...................................5.6 France ...........................................5.5 Australia .........................................5.5 United Arab Emirates .....................5.5 Belgium .........................................5.4 United States .................................5.3 Malaysia.........................................5.3 Iceland ...........................................5.3 Rwanda .........................................5.3 Bahrain ..........................................5.2 Oman ............................................5.2 Estonia...........................................5.2 Saudi Arabia ..................................5.1 Mauritius ........................................5.1 Jordan ...........................................5.1 Namibia .........................................5.1 Malta .............................................5.0 Barbados .......................................5.0 Chile ..............................................5.0 Botswana ......................................4.9 Uruguay .........................................4.9 Morocco ........................................4.9 Portugal .........................................4.8 Israel ..............................................4.8 Zambia ..........................................4.6 Latvia .............................................4.6 Costa Rica .....................................4.6 Turkey............................................4.6 Macedonia, FYR ............................4.6 Panama .........................................4.5 China .............................................4.5 Kuwait ...........................................4.4 Jamaica .........................................4.4 Bhutan ...........................................4.4 Cyprus ...........................................4.3 Poland ...........................................4.3 Spain .............................................4.3 Sri Lanka .......................................4.3 Swaziland ......................................4.3 Indonesia .......................................4.3 Ghana ............................................4.3 Philippines .....................................4.3 Lithuania ........................................4.2 Gambia, The ..................................4.2 Korea, Rep. ...................................4.2 Kenya ............................................4.2 Slovenia .........................................4.2 Armenia .........................................4.2 Seychelles......................................4.2 Trinidad and Tobago......................4.1 Kazakhstan ....................................4.1 Montenegro ...................................4.1 Thailand .........................................4.1 SOURCE: MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.2 7 India...............................................4.1 Italy ................................................4.0 Czech Republic .............................4.0 Tunisia ...........................................4.0 Brazil..............................................4.0 Mexico ...........................................4.0 Romania ........................................4.0 Senegal .........................................3.9 Gabon ...........................................3.9 Greece ...........................................3.9 Malawi ...........................................3.9 Colombia .......................................3.9 Georgia ..........................................3.9 Iran, Islamic Rep. ...........................3.9 Tajikistan ........................................3.9 Guatemala .....................................3.8 Slovak Republic .............................3.8 Dominican Republic .......................3.8 Azerbaijan ......................................3.8 Croatia ...........................................3.8 Cape Verde ...................................3.8 Guyana ..........................................3.8 Lao PDR ........................................3.8 Hungary .........................................3.7 Algeria ...........................................3.7 Honduras .......................................3.7 Cameroon......................................3.6 Mongolia ........................................3.6 Vietnam .........................................3.6 El Salvador.....................................3.6 Lesotho .........................................3.6 Egypt .............................................3.6 Tanzania ........................................3.5 Peru ...............................................3.5 Côte d’Ivoire ..................................3.5 Lebanon ........................................3.5 Burkina Faso..................................3.5 Bulgaria .........................................3.5 Bolivia ............................................3.5 Uganda ..........................................3.4 Sierra Leone ..................................3.4 Mali ................................................3.4 Ethiopia..........................................3.4 Nigeria ...........................................3.4 Mozambique ..................................3.4 Cambodia ......................................3.3 Nepal .............................................3.3 Russian Federation ........................3.3 Pakistan .........................................3.3 Suriname .......................................3.3 Bangladesh....................................3.3 Paraguay .......................................3.2 Kyrgyz Republic .............................3.2 Moldova .........................................3.2 Serbia ............................................3.1 Nicaragua ......................................3.1 Yemen ...........................................3.1 Madagascar ...................................3.1 Libya ..............................................3.0 Timor-Leste ...................................2.8 Albania...........................................2.8 Burundi ..........................................2.8 Ukraine ..........................................2.7 Myanmar........................................2.7 Guinea ...........................................2.6 Argentina .......................................2.6 Mauritania ......................................2.5 Chad..............................................2.5 Angola ...........................................2.5 Zimbabwe ......................................2.4 Haiti ...............................................2.3 Venezuela ......................................1.5 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 406 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 395 2.2: Data Tables 2.2: Data Tables 0.01 Gross domestic product Gross domestic product in billions of current US dollars 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK United States ........................16,799.7 China ......................................9,181.4 Japan .....................................4,901.5 Germany .................................3,636.0 France ....................................2,737.4 United Kingdom ......................2,535.8 Brazil.......................................2,242.9 Russian Federation .................2,118.0 Italy .........................................2,072.0 India........................................1,870.7 Canada ...................................1,825.1 Australia ..................................1,505.3 Spain ......................................1,358.7 Mexico ....................................1,258.5 Korea, Rep. ............................1,221.8 Indonesia ...................................870.3 Turkey........................................827.2 Netherlands ...............................800.0 Saudi Arabia ..............................745.3 Switzerland ................................650.8 Sweden .....................................557.9 Poland .......................................516.1 Norway ......................................511.3 Belgium .....................................506.6 Taiwan, China ............................489.2 Argentina ...................................488.2 Austria .......................................415.4 United Arab Emirates .................396.2 Thailand .....................................387.2 Colombia ...................................381.8 Venezuela ..................................374.0 Iran, Islamic Rep. .......................366.3 South Africa ...............................350.8 Denmark ....................................331.0 Malaysia.....................................312.4 Singapore ..................................295.7 Israel ..........................................291.5 Nigeria .......................................286.5 Chile ..........................................277.0 Hong Kong SAR ........................273.7 Philippines .................................272.0 Egypt .........................................271.4 Finland .......................................256.9 Greece .......................................241.8 Pakistan .....................................238.7 Kazakhstan ................................220.3 Portugal .....................................220.0 Ireland........................................217.9 Peru ...........................................206.5 Algeria .......................................206.1 Qatar .........................................202.6 Czech Republic .........................198.3 Romania ....................................189.7 Kuwait .......................................185.3 New Zealand .............................181.3 Ukraine ......................................177.8 Vietnam .....................................170.6 Bangladesh................................141.3 Hungary .....................................132.4 Angola .......................................121.7 Morocco ....................................105.1 Puerto Rico ................................103.1 Slovak Republic ...........................95.8 Oman ..........................................80.6 Azerbaijan ....................................73.5 Libya ............................................67.6 Sri Lanka .....................................65.8 Dominican Republic .....................60.8 Luxembourg ................................59.8 Croatia .........................................58.1 Myanmar......................................56.4 Uruguay .......................................56.3 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE Guatemala ...................................54.4 Bulgaria .......................................53.0 Costa Rica ...................................49.6 Ethiopia........................................48.1 Lithuania ......................................47.6 Tunisia .........................................47.4 Slovenia .......................................46.9 Kenya ..........................................45.1 Lebanon ......................................44.3 Ghana ..........................................44.2 Serbia ..........................................42.5 Panama .......................................40.3 Yemen .........................................39.2 Jordan .........................................33.9 Tanzania ......................................32.5 Bahrain ........................................32.2 Latvia ...........................................31.0 Bolivia ..........................................29.8 Paraguay .....................................28.3 Côte d’Ivoire ................................28.3 Cameroon....................................28.0 Trinidad and Tobago....................27.7 El Salvador...................................24.5 Estonia.........................................24.5 Uganda ........................................23.1 Zambia ........................................22.4 Cyprus .........................................21.8 Nepal ...........................................19.3 Gabon .........................................19.2 Honduras .....................................18.8 Georgia ........................................16.2 Cambodia ....................................15.7 Mozambique ................................15.3 Senegal .......................................15.2 Botswana ....................................14.8 Iceland .........................................14.7 Jamaica .......................................14.3 Chad............................................13.4 Zimbabwe ....................................13.0 Albania.........................................12.9 Namibia .......................................12.3 Burkina Faso................................12.2 Mauritius ......................................11.9 Mongolia ......................................11.5 Nicaragua ....................................11.3 Madagascar .................................11.2 Mali ..............................................11.1 Armenia .......................................10.5 Macedonia, FYR ..........................10.2 Lao PDR ......................................10.0 Malta .............................................9.5 Tajikistan ........................................8.5 Haiti ...............................................8.5 Moldova .........................................7.9 Rwanda .........................................7.4 Kyrgyz Republic .............................7.2 Guinea ...........................................6.3 Timor-Leste ...................................6.1 Suriname .......................................5.1 Sierra Leone ..................................4.8 Montenegro ...................................4.4 Barbados .......................................4.3 Mauritania ......................................4.2 Malawi ...........................................3.8 Swaziland ......................................3.6 Guyana ..........................................3.0 Burundi ..........................................2.7 Lesotho .........................................2.3 Bhutan ...........................................2.0 Cape Verde ...................................1.9 Seychelles......................................1.4 Gambia, The ..................................0.9 SOURCES: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 400 The Global Competitiveness Report 2014–2015 OTHER INDICATORS Indicators not derived from the Survey are presented in black bar graphs. For each indicator, a short description appears at the top of the page. The base period (i.e., the period when a majority of the data was collected) follows the description. When the year differs from the base year for a particular economy, this is indicated in a footnote. Special cases and exceptions are also mentioned in footnotes. For most indicators, a more detailed description can be found in the Technical Notes and Sources section at the end of the Report. When data are not available or are too outdated, n/a is used in lieu of the rank and the value. Because of the nature of data, ties between two or more economies are possible. In such cases, shared rankings are indicated accordingly. For example, four economies—Australia, Hong Kong SAR, Portugal, and Singapore—all require two and half days to start a business. As a result, in table 6.07 (see page 472) they are all ranked 5th and are listed alphabetically. The values are usually reported with a precision of one decimal place. Because of the rounding, we use “0.0” to report some non-zero values. In such cases, a narrow bar graph is used in order to distinguish these values from true zero values, for which no bar is attached. In addition, since the ranks are always based on the exact, unrounded figures, a non-zero value will also be ranked higher (or lower, in the case of certain indicators) than a true zero value. ONLINE DATA PORTAL In addition to the analysis presented in this Report, an interactive data platform can be accessed via www.weforum.org/gcr. The platform offers a number of analytical and visualization tools, including sortable rankings, scatter plots, bar charts, and maps, as well as the option of downloading portions of the GCI data set. 396 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 2.2: Data Tables Index of Data Tables Key indicators .......................................................................399 0.01 0.02 0.03 0.04 Gross domestic product ................................................ 400 Population ..................................................................... 401 GDP per capita ............................................................. 402 GDP as a share of world GDP ....................................... 403 Pillar 1: Institutions ...............................................................405 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 Property rights ............................................................... 406 Intellectual property protection ...................................... 407 Diversion of public funds ............................................... 408 Public trust in politicians ................................................ 409 Irregular payments and bribes ....................................... 410 Judicial independence ................................................... 411 Favoritism in decisions of government officials .............. 412 Wastefulness of government spending .......................... 413 Burden of government regulation .................................. 414 Efficiency of legal framework in settling disputes ........... 415 Efficiency of legal framework in challenging regulations .............................................. 416 Transparency of government policymaking .................... 417 Business costs of terrorism ........................................... 418 Business costs of crime and violence ............................ 419 Organized crime ............................................................ 420 Reliability of police services ........................................... 421 Ethical behavior of firms ................................................ 422 Strength of auditing and reporting standards................. 423 Efficacy of corporate boards.......................................... 424 Protection of minority shareholders’ interests ................ 425 Strength of investor protection ...................................... 426 Pillar 5: Higher education and training................................455 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment rate ............................ 456 Tertiary education enrollment rate .................................. 457 Quality of the education system .................................... 458 Quality of math and science education .......................... 459 Quality of management schools .................................... 460 Internet access in schools ............................................. 461 Local availability of specialized research and training services...................................................... 462 Extent of staff training .................................................... 463 Pillar 6: Goods market efficiency ........................................465 6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 Intensity of local competition ......................................... 466 Extent of market dominance.......................................... 467 Effectiveness of anti-monopoly policy ............................ 468 Effect of taxation on incentives to invest ........................ 469 Total tax rate ................................................................. 470 Number of procedures required to start a business ....... 471 Time required to start a business .................................. 472 Agricultural policy costs ................................................. 473 Prevalence of trade barriers ........................................... 474 Trade tariffs ................................................................... 475 Prevalence of foreign ownership .................................... 476 Business impact of rules on FDI .................................... 477 Burden of customs procedures ..................................... 478 Imports as a percentage of GDP ................................... 479 Degree of customer orientation ..................................... 480 Buyer sophistication ...................................................... 481 Pillar 7: Labor market efficiency ..........................................483 Pillar 2: Infrastructure ...........................................................427 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 Quality of overall infrastructure....................................... 428 Quality of roads ............................................................. 429 Quality of railroad infrastructure ..................................... 430 Quality of port infrastructure .......................................... 431 Quality of air transport infrastructure .............................. 432 Available airline seat kilometers...................................... 433 Quality of electricity supply ............................................ 434 Mobile telephone subscriptions ..................................... 435 Fixed telephone lines ..................................................... 436 Pillar 3: Macroeconomic environment.................................437 3.01 3.02 3.03 3.04 3.05 Government budget balance ......................................... 438 Gross national savings .................................................. 439 Inflation.......................................................................... 440 Government debt .......................................................... 441 Country credit rating ...................................................... 442 Pillar 4: Health and primary education ................................443 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 Malaria incidence........................................................... 444 Business impact of malaria............................................ 445 Tuberculosis incidence .................................................. 446 Business impact of tuberculosis .................................... 447 HIV prevalence .............................................................. 448 Business impact of HIV/AIDS ........................................ 449 Infant mortality ............................................................... 450 Life expectancy ............................................................. 451 Quality of primary education .......................................... 452 Primary education enrollment rate ................................. 453 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 Cooperation in labor-employer relations ........................ 484 Flexibility of wage determination .................................... 485 Hiring and firing practices .............................................. 486 Redundancy costs ........................................................ 487 Effect of taxation on incentives to work ......................... 488 Pay and productivity ...................................................... 489 Reliance on professional management .......................... 490 Country capacity to retain talent .................................... 491 Country capacity to attract talent .................................. 492 Female participation in the labor force ........................... 493 Pillar 8: Financial market development ...............................495 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services....................................... 496 Affordability of financial services .................................... 497 Financing through local equity market ........................... 498 Ease of access to loans ................................................ 499 Venture capital availability .............................................. 500 Soundness of banks ..................................................... 501 Regulation of securities exchanges................................ 502 Legal rights index .......................................................... 503 Pillar 9: Technological readiness .........................................505 9.01 9.02 9.03 9.04 9.05 9.06 9.07 © 2014 World Economic Forum Availability of latest technologies.................................... 506 Firm-level technology absorption ................................... 507 FDI and technology transfer .......................................... 508 Internet users ................................................................ 509 Fixed broadband Internet subscriptions......................... 510 Internet bandwidth ........................................................ 511 Mobile broadband subscriptions ................................... 512 The Global Competitiveness Report 2014–2015 397 2.2: Data Tables Pillar 10: Market size ............................................................513 10.01 10.02 10.03 10.04 Domestic market size index........................................... 514 Foreign market size index .............................................. 515 GDP (PPP) .................................................................... 516 Exports as a percentage of GDP ................................... 517 Pillar 11: Business sophistication........................................519 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09 Local supplier quantity................................................... 520 Local supplier quality ..................................................... 521 State of cluster development ......................................... 522 Nature of competitive advantage ................................... 523 Value chain breadth ....................................................... 524 Control of international distribution ................................ 525 Production process sophistication ................................. 526 Extent of marketing ....................................................... 527 Willingness to delegate authority ................................... 528 Pillar 12: Innovation ..............................................................529 12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation .................................................. 530 Quality of scientific research institutions......................... 531 Company spending on R&D .......................................... 532 University-industry collaboration in R&D ........................ 533 Government procurement of advanced technology products...................................................... 534 Availability of scientists and engineers ........................... 535 PCT patent applications ................................................ 536 398 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Data Tables Key indicators 2.2: Data Tables 0.01 Gross domestic product Gross domestic product in billions of current US dollars 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK United States ........................16,799.7 China ......................................9,181.4 Japan .....................................4,901.5 Germany .................................3,636.0 France ....................................2,737.4 United Kingdom ......................2,535.8 Brazil.......................................2,242.9 Russian Federation .................2,118.0 Italy .........................................2,072.0 India........................................1,870.7 Canada ...................................1,825.1 Australia ..................................1,505.3 Spain ......................................1,358.7 Mexico ....................................1,258.5 Korea, Rep. ............................1,221.8 Indonesia ...................................870.3 Turkey........................................827.2 Netherlands ...............................800.0 Saudi Arabia ..............................745.3 Switzerland ................................650.8 Sweden .....................................557.9 Poland .......................................516.1 Norway ......................................511.3 Belgium .....................................506.6 Taiwan, China ............................489.2 Argentina ...................................488.2 Austria .......................................415.4 United Arab Emirates .................396.2 Thailand .....................................387.2 Colombia ...................................381.8 Venezuela ..................................374.0 Iran, Islamic Rep. .......................366.3 South Africa ...............................350.8 Denmark ....................................331.0 Malaysia.....................................312.4 Singapore ..................................295.7 Israel ..........................................291.5 Nigeria .......................................286.5 Chile ..........................................277.0 Hong Kong SAR ........................273.7 Philippines .................................272.0 Egypt .........................................271.4 Finland .......................................256.9 Greece .......................................241.8 Pakistan .....................................238.7 Kazakhstan ................................220.3 Portugal .....................................220.0 Ireland........................................217.9 Peru ...........................................206.5 Algeria .......................................206.1 Qatar .........................................202.6 Czech Republic .........................198.3 Romania ....................................189.7 Kuwait .......................................185.3 New Zealand .............................181.3 Ukraine ......................................177.8 Vietnam .....................................170.6 Bangladesh................................141.3 Hungary .....................................132.4 Angola .......................................121.7 Morocco ....................................105.1 Puerto Rico................................103.1 Slovak Republic ...........................95.8 Oman ..........................................80.6 Azerbaijan ....................................73.5 Libya ............................................67.6 Sri Lanka .....................................65.8 Dominican Republic .....................60.8 Luxembourg ................................59.8 Croatia .........................................58.1 Myanmar......................................56.4 Uruguay .......................................56.3 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY SOURCES: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 400 The Global Competitiveness Report 2014–2015 VALUE Guatemala ...................................54.4 Bulgaria .......................................53.0 Costa Rica ...................................49.6 Ethiopia........................................48.1 Lithuania ......................................47.6 Tunisia .........................................47.4 Slovenia .......................................46.9 Kenya ..........................................45.1 Lebanon ......................................44.3 Ghana ..........................................44.2 Serbia ..........................................42.5 Panama .......................................40.3 Yemen .........................................39.2 Jordan .........................................33.9 Tanzania ......................................32.5 Bahrain ........................................32.2 Latvia ...........................................31.0 Bolivia ..........................................29.8 Paraguay .....................................28.3 Côte d’Ivoire ................................28.3 Cameroon....................................28.0 Trinidad and Tobago....................27.7 El Salvador...................................24.5 Estonia.........................................24.5 Uganda ........................................23.1 Zambia ........................................22.4 Cyprus .........................................21.8 Nepal ...........................................19.3 Gabon .........................................19.2 Honduras .....................................18.8 Georgia ........................................16.2 Cambodia ....................................15.7 Mozambique ................................15.3 Senegal .......................................15.2 Botswana ....................................14.8 Iceland .........................................14.7 Jamaica .......................................14.3 Chad............................................13.4 Zimbabwe ....................................13.0 Albania.........................................12.9 Namibia .......................................12.3 Burkina Faso................................12.2 Mauritius ......................................11.9 Mongolia ......................................11.5 Nicaragua ....................................11.3 Madagascar .................................11.2 Mali ..............................................11.1 Armenia .......................................10.5 Macedonia, FYR ..........................10.2 Lao PDR ......................................10.0 Malta .............................................9.5 Tajikistan ........................................8.5 Haiti ...............................................8.5 Moldova .........................................7.9 Rwanda .........................................7.4 Kyrgyz Republic .............................7.2 Guinea ...........................................6.3 Timor-Leste ...................................6.1 Suriname .......................................5.1 Sierra Leone ..................................4.8 Montenegro ...................................4.4 Barbados .......................................4.3 Mauritania ......................................4.2 Malawi ...........................................3.8 Swaziland ......................................3.6 Guyana ..........................................3.0 Burundi ..........................................2.7 Lesotho .........................................2.3 Bhutan ...........................................2.0 Cape Verde ...................................1.9 Seychelles......................................1.4 Gambia, The ..................................0.9 © 2014 World Economic Forum 2.2: Data Tables 0.02 Population Total population in millions 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK China ......................................1,360.8 India........................................1,243.3 United States .............................316.4 Indonesia ...................................248.0 Brazil..........................................198.3 Pakistan .....................................182.6 Nigeria .......................................169.3 Bangladesh................................156.3 Russian Federation ....................142.9 Japan ........................................127.3 Mexico .......................................118.4 Philippines ...................................97.5 Vietnam .......................................89.7 Ethiopia........................................88.9 Egypt ...........................................84.2 Germany ......................................80.8 Iran, Islamic Rep. .........................77.1 Turkey..........................................76.5 Thailand .......................................68.2 Myanmar......................................64.9 United Kingdom ...........................64.1 France .........................................63.7 Italy ..............................................59.7 South Africa .................................53.0 Korea, Rep. .................................50.2 Colombia .....................................47.2 Spain ...........................................46.6 Tanzania ......................................46.3 Ukraine ........................................45.4 Kenya ..........................................44.4 Argentina .....................................41.5 Poland .........................................38.5 Algeria .........................................37.9 Uganda ........................................36.8 Canada ........................................35.1 Morocco ......................................32.9 Peru .............................................30.9 Saudi Arabia ................................30.0 Venezuela ....................................30.0 Malaysia.......................................29.6 Nepal ...........................................27.9 Yemen .........................................26.7 Mozambique ................................25.9 Ghana ..........................................25.6 Côte d’Ivoire ................................24.1 Taiwan, China ..............................23.4 Australia .......................................23.2 Madagascar .................................23.0 Cameroon....................................22.0 Romania ......................................21.3 Sri Lanka .....................................20.8 Angola .........................................20.8 Chile ............................................17.6 Kazakhstan ..................................17.2 Malawi .........................................17.1 Mali ..............................................16.9 Burkina Faso................................16.8 Netherlands .................................16.8 Guatemala ...................................15.5 Cambodia ....................................15.4 Zambia ........................................14.5 Senegal .......................................14.1 Zimbabwe ....................................13.1 Belgium .......................................11.2 Guinea .........................................11.1 Greece .........................................11.1 Bolivia ..........................................11.0 Chad............................................11.0 Tunisia .........................................10.9 Rwanda .......................................10.6 Portugal .......................................10.6 Czech Republic ...........................10.5 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE Dominican Republic .....................10.4 Haiti .............................................10.3 Hungary .........................................9.9 Sweden .........................................9.6 Azerbaijan ......................................9.3 United Arab Emirates .....................9.0 Burundi ..........................................9.0 Austria ...........................................8.5 Tajikistan ........................................8.1 Honduras .......................................8.1 Switzerland ....................................8.0 Israel ..............................................7.9 Hong Kong SAR ............................7.2 Bulgaria .........................................7.2 Serbia ............................................7.2 Paraguay .......................................6.8 Lao PDR ........................................6.8 Jordan ...........................................6.5 El Salvador.....................................6.3 Nicaragua ......................................6.1 Libya ..............................................6.1 Sierra Leone ..................................6.1 Kyrgyz Republic .............................5.6 Denmark ........................................5.6 Finland ...........................................5.5 Slovak Republic .............................5.4 Singapore ......................................5.4 Norway ..........................................5.1 Ireland............................................4.8 Costa Rica .....................................4.8 Georgia ..........................................4.5 New Zealand .................................4.5 Lebanon ........................................4.5 Croatia ...........................................4.3 Kuwait ...........................................3.9 Panama .........................................3.7 Mauritania ......................................3.7 Puerto Rico....................................3.6 Moldova .........................................3.6 Uruguay .........................................3.4 Armenia .........................................3.3 Oman ............................................3.2 Lithuania ........................................3.0 Mongolia ........................................2.9 Albania...........................................2.8 Jamaica .........................................2.8 Namibia .........................................2.2 Botswana ......................................2.1 Macedonia, FYR ............................2.1 Slovenia .........................................2.1 Latvia .............................................2.0 Qatar .............................................2.0 Lesotho .........................................1.9 Gambia, The ..................................1.9 Gabon ...........................................1.6 Trinidad and Tobago......................1.3 Mauritius ........................................1.3 Estonia...........................................1.3 Timor-Leste ...................................1.2 Bahrain ..........................................1.2 Swaziland ......................................1.1 Cyprus ...........................................0.9 Guyana ..........................................0.8 Bhutan ...........................................0.7 Montenegro ...................................0.6 Suriname .......................................0.5 Luxembourg ..................................0.5 Cape Verde ...................................0.5 Malta .............................................0.4 Iceland ...........................................0.3 Barbados .......................................0.3 Seychelles......................................0.1 SOURCES: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 401 2.2: Data Tables 0.03 GDP per capita Gross domestic product per capita in current US dollars 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Luxembourg ..........................110,424 Norway ..................................100,318 Qatar .....................................100,260 Switzerland ..............................81,324 Australia ...................................64,863 Denmark ..................................59,191 Sweden ...................................57,909 Singapore ................................54,776 United States ...........................53,101 Canada ....................................51,990 Austria .....................................48,957 Kuwait .....................................47,639 Netherlands .............................47,634 Finland .....................................47,129 Ireland......................................45,621 Iceland .....................................45,536 Belgium ...................................45,384 Germany ..................................44,999 United Arab Emirates ...............43,876 France .....................................43,000 New Zealand ...........................40,481 United Kingdom .......................39,567 Japan ......................................38,491 Hong Kong SAR ......................37,777 Israel ........................................37,035 Italy ..........................................34,715 Spain .......................................29,150 Puerto Rico..............................28,325 Bahrain ....................................27,435 Oman ......................................25,289 Saudi Arabia ............................24,847 Cyprus .....................................24,761 Korea, Rep. .............................24,329 Malta .......................................22,872 Slovenia ...................................22,756 Greece .....................................21,857 Taiwan, China ..........................20,930 Portugal ...................................20,728 Trinidad and Tobago................20,611 Estonia.....................................19,032 Czech Republic .......................18,858 Slovak Republic .......................17,706 Uruguay ...................................16,609 Lithuania ..................................16,003 Chile ........................................15,776 Barbados .................................15,373 Latvia .......................................15,205 Seychelles................................15,046 Russian Federation ..................14,819 Croatia .....................................13,562 Hungary ...................................13,405 Poland .....................................13,394 Kazakhstan ..............................12,843 Venezuela ................................12,472 Gabon .....................................12,302 Argentina .................................11,766 Brazil........................................11,311 Libya ........................................11,046 Panama ...................................10,839 Turkey......................................10,815 Mexico .....................................10,630 Malaysia...................................10,548 Costa Rica ...............................10,433 Lebanon ....................................9,920 Suriname ...................................9,240 Mauritius ....................................9,160 Romania ....................................8,910 Colombia ...................................8,098 Azerbaijan ..................................7,900 Bulgaria .....................................7,328 Botswana ..................................7,136 Montenegro ...............................7,026 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY SOURCES: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 402 The Global Competitiveness Report 2014–2015 VALUE China .........................................6,747 Peru ...........................................6,674 South Africa ...............................6,621 Serbia ........................................5,907 Angola .......................................5,846 Dominican Republic ...................5,834 Thailand .....................................5,674 Namibia .....................................5,667 Algeria .......................................5,438 Timor-Leste ...............................5,177 Jordan .......................................5,174 Jamaica .....................................5,134 Macedonia, FYR ........................4,944 Iran, Islamic Rep. .......................4,751 Albania.......................................4,610 Tunisia .......................................4,345 Paraguay ...................................4,170 Mongolia ....................................3,972 Ukraine ......................................3,919 El Salvador.................................3,875 Cape Verde ...............................3,837 Guyana ......................................3,729 Georgia ......................................3,605 Guatemala .................................3,513 Indonesia ...................................3,510 Swaziland ..................................3,313 Egypt .........................................3,226 Armenia .....................................3,208 Morocco ....................................3,199 Sri Lanka ...................................3,162 Philippines .................................2,790 Bolivia ........................................2,700 Bhutan .......................................2,665 Honduras ...................................2,323 Moldova .....................................2,229 Vietnam .....................................1,902 Nicaragua ..................................1,840 Ghana ........................................1,730 Nigeria .......................................1,692 Zambia ......................................1,542 India...........................................1,505 Lao PDR ....................................1,477 Yemen .......................................1,469 Pakistan .....................................1,308 Kyrgyz Republic .........................1,280 Cameroon..................................1,271 Chad..........................................1,218 Lesotho .....................................1,194 Côte d’Ivoire ..............................1,175 Mauritania ..................................1,127 Senegal .....................................1,073 Tajikistan ....................................1,045 Kenya ........................................1,016 Cambodia ..................................1,016 Zimbabwe .....................................987 Bangladesh...................................904 Myanmar.......................................869 Haiti ..............................................820 Sierra Leone .................................784 Burkina Faso.................................729 Tanzania .......................................703 Rwanda ........................................698 Nepal ............................................693 Mali ...............................................657 Uganda .........................................626 Mozambique .................................593 Guinea ..........................................565 Ethiopia.........................................542 Madagascar ..................................488 Gambia, The .................................453 Burundi .........................................303 Malawi ..........................................223 © 2014 World Economic Forum 2.2: Data Tables 0.04 GDP as a share of world GDP Gross domestic product based on purchasing power parity as a percentage of world GDP 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 45 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK United States .............................19.31 China .........................................15.40 India.............................................5.83 Japan ..........................................5.40 Germany ......................................3.72 Russian Federation ......................2.94 Brazil............................................2.79 United Kingdom ...........................2.75 France .........................................2.62 Mexico .........................................2.12 Italy ..............................................2.08 Korea, Rep. .................................1.92 Canada ........................................1.75 Spain ...........................................1.60 Indonesia .....................................1.49 Turkey..........................................1.35 Australia .......................................1.15 Iran, Islamic Rep. .........................1.09 Saudi Arabia ................................1.08 Taiwan, China ..............................1.07 Poland .........................................0.94 Argentina .....................................0.89 Netherlands .................................0.81 Thailand .......................................0.77 South Africa .................................0.69 Pakistan .......................................0.66 Egypt ...........................................0.64 Colombia .....................................0.61 Malaysia.......................................0.60 Nigeria .........................................0.55 Philippines ...................................0.53 Belgium .......................................0.49 Venezuela ....................................0.47 Sweden .......................................0.46 Hong Kong SAR ..........................0.44 Switzerland ..................................0.43 Austria .........................................0.42 Vietnam .......................................0.41 Singapore ....................................0.40 Peru .............................................0.40 Ukraine ........................................0.39 Chile ............................................0.39 Bangladesh..................................0.37 Czech Republic ...........................0.33 Algeria .........................................0.33 Romania ......................................0.33 Norway ........................................0.32 Israel ............................................0.32 United Arab Emirates ...................0.31 Greece .........................................0.31 Kazakhstan ..................................0.28 Portugal .......................................0.28 Denmark ......................................0.24 Qatar ...........................................0.23 Hungary .......................................0.23 Finland .........................................0.22 Ireland..........................................0.22 Morocco ......................................0.21 Kuwait .........................................0.18 New Zealand ...............................0.16 Sri Lanka .....................................0.16 Slovak Republic ...........................0.15 Angola .........................................0.15 Ethiopia........................................0.14 Myanmar......................................0.13 Tunisia .........................................0.13 Bulgaria .......................................0.12 Dominican Republic .....................0.12 Azerbaijan ....................................0.12 Oman ..........................................0.11 Ghana ..........................................0.10 Guatemala ...................................0.09 73 74 75 76 77 78 79 80 80 80 83 84 85 86 87 88 89 90 91 92 93 94 94 96 96 98 99 100 101 101 101 101 101 101 107 108 108 110 110 112 112 112 115 115 117 118 119 120 120 122 123 123 125 126 126 128 129 130 131 132 132 134 134 134 134 138 139 139 141 142 143 n/a SOURCE: COUNTRY/ECONOMY VALUE Serbia ..........................................0.09 Kenya ..........................................0.09 Tanzania ......................................0.09 Croatia .........................................0.09 Libya ............................................0.08 Lithuania ......................................0.08 Lebanon ......................................0.08 Costa Rica ...................................0.07 Panama .......................................0.07 Yemen .........................................0.07 Bolivia ..........................................0.07 Slovenia .......................................0.07 Uruguay .......................................0.07 Uganda ........................................0.06 Cameroon....................................0.06 El Salvador...................................0.06 Paraguay .....................................0.05 Côte d’Ivoire ................................0.05 Luxembourg ................................0.05 Nepal ...........................................0.05 Bahrain ........................................0.05 Cambodia ....................................0.05 Jordan .........................................0.05 Honduras .....................................0.05 Latvia ...........................................0.05 Botswana ....................................0.04 Gabon .........................................0.04 Estonia.........................................0.03 Chad............................................0.03 Georgia ........................................0.03 Mozambique ................................0.03 Nicaragua ....................................0.03 Senegal .......................................0.03 Trinidad and Tobago....................0.03 Burkina Faso................................0.03 Albania.........................................0.03 Timor-Leste .................................0.03 Jamaica .......................................0.03 Zambia ........................................0.03 Cyprus .........................................0.03 Macedonia, FYR ..........................0.03 Madagascar .................................0.03 Lao PDR ......................................0.02 Mauritius ......................................0.02 Armenia .......................................0.02 Tajikistan ......................................0.02 Mali ..............................................0.02 Mongolia ......................................0.02 Namibia .......................................0.02 Rwanda .......................................0.02 Kyrgyz Republic ...........................0.02 Malawi .........................................0.02 Haiti .............................................0.02 Iceland .........................................0.02 Moldova .......................................0.02 Guinea .........................................0.01 Malta ...........................................0.01 Zimbabwe ....................................0.01 Sierra Leone ................................0.01 Mauritania ....................................0.01 Montenegro .................................0.01 Barbados .....................................0.01 Guyana ........................................0.01 Suriname .....................................0.01 Swaziland ....................................0.01 Burundi ........................................0.01 Bhutan .........................................0.01 Lesotho .......................................0.01 Gambia, The ................................0.00 Seychelles....................................0.00 Cape Verde .................................0.00 Puerto Rico....................................n/a International Monetary Fund, World Economic Outlook Database (April 2014 edition) © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 403 2014 World Economic Forum Data Tables Institutions 2.2: Data Tables 1.01 Property rights In your country, how strong is the protection of property rights, including financial assets? [1 = extremely weak; 7 = extremely strong] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Finland ...........................................6.4 Singapore ......................................6.2 Switzerland ....................................6.2 United Kingdom .............................6.2 Luxembourg ..................................6.1 Hong Kong SAR ............................6.1 Qatar .............................................6.0 Norway ..........................................6.0 Canada ..........................................6.0 New Zealand .................................6.0 Japan ............................................5.9 Puerto Rico....................................5.9 Ireland............................................5.9 Netherlands ...................................5.8 Austria ...........................................5.8 Taiwan, China ................................5.7 Denmark ........................................5.7 Sweden .........................................5.7 Germany ........................................5.6 South Africa ...................................5.6 France ...........................................5.5 Australia .........................................5.5 United Arab Emirates .....................5.5 Belgium .........................................5.4 United States .................................5.3 Malaysia.........................................5.3 Iceland ...........................................5.3 Rwanda .........................................5.3 Bahrain ..........................................5.2 Oman ............................................5.2 Estonia...........................................5.2 Saudi Arabia ..................................5.1 Mauritius ........................................5.1 Jordan ...........................................5.1 Namibia .........................................5.1 Malta .............................................5.0 Barbados .......................................5.0 Chile ..............................................5.0 Botswana ......................................4.9 Uruguay .........................................4.9 Morocco ........................................4.9 Portugal .........................................4.8 Israel ..............................................4.8 Zambia ..........................................4.6 Latvia .............................................4.6 Costa Rica .....................................4.6 Turkey............................................4.6 Macedonia, FYR ............................4.6 Panama .........................................4.5 China .............................................4.5 Kuwait ...........................................4.4 Jamaica .........................................4.4 Bhutan ...........................................4.4 Cyprus ...........................................4.3 Poland ...........................................4.3 Spain .............................................4.3 Sri Lanka .......................................4.3 Swaziland ......................................4.3 Indonesia .......................................4.3 Ghana ............................................4.3 Philippines .....................................4.3 Lithuania ........................................4.2 Gambia, The ..................................4.2 Korea, Rep. ...................................4.2 Kenya ............................................4.2 Slovenia .........................................4.2 Armenia .........................................4.2 Seychelles......................................4.2 Trinidad and Tobago......................4.1 Kazakhstan ....................................4.1 Montenegro ...................................4.1 Thailand .........................................4.1 SOURCE: MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 406 The Global Competitiveness Report 2014–2015 VALUE India...............................................4.1 Italy ................................................4.0 Czech Republic .............................4.0 Tunisia ...........................................4.0 Brazil..............................................4.0 Mexico ...........................................4.0 Romania ........................................4.0 Senegal .........................................3.9 Gabon ...........................................3.9 Greece ...........................................3.9 Malawi ...........................................3.9 Colombia .......................................3.9 Georgia ..........................................3.9 Iran, Islamic Rep. ...........................3.9 Tajikistan ........................................3.9 Guatemala .....................................3.8 Slovak Republic .............................3.8 Dominican Republic .......................3.8 Azerbaijan ......................................3.8 Croatia ...........................................3.8 Cape Verde ...................................3.8 Guyana ..........................................3.8 Lao PDR ........................................3.8 Hungary .........................................3.7 Algeria ...........................................3.7 Honduras .......................................3.7 Cameroon......................................3.6 Mongolia ........................................3.6 Vietnam .........................................3.6 El Salvador.....................................3.6 Lesotho .........................................3.6 Egypt .............................................3.6 Tanzania ........................................3.5 Peru ...............................................3.5 Côte d’Ivoire ..................................3.5 Lebanon ........................................3.5 Burkina Faso..................................3.5 Bulgaria .........................................3.5 Bolivia ............................................3.5 Uganda ..........................................3.4 Sierra Leone ..................................3.4 Mali ................................................3.4 Ethiopia..........................................3.4 Nigeria ...........................................3.4 Mozambique ..................................3.4 Cambodia ......................................3.3 Nepal .............................................3.3 Russian Federation ........................3.3 Pakistan .........................................3.3 Suriname .......................................3.3 Bangladesh....................................3.3 Paraguay .......................................3.2 Kyrgyz Republic .............................3.2 Moldova .........................................3.2 Serbia ............................................3.1 Nicaragua ......................................3.1 Yemen ...........................................3.1 Madagascar ...................................3.1 Libya ..............................................3.0 Timor-Leste ...................................2.8 Albania...........................................2.8 Burundi ..........................................2.8 Ukraine ..........................................2.7 Myanmar........................................2.7 Guinea ...........................................2.6 Argentina .......................................2.6 Mauritania ......................................2.5 Chad..............................................2.5 Angola ...........................................2.5 Zimbabwe ......................................2.4 Haiti ...............................................2.3 Venezuela ......................................1.5 © 2014 World Economic Forum 1 MEAN 4.2 7 2.2: Data Tables 1.02 Intellectual property protection In your country, how strong is the protection of intellectual property, including anti-counterfeiting measures? [1 = extremely weak; 7 = extremely strong] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Finland ...........................................6.2 Singapore ......................................6.2 Luxembourg ..................................6.1 Switzerland ....................................6.0 Qatar .............................................6.0 New Zealand .................................6.0 Japan ............................................6.0 United Kingdom .............................5.9 Puerto Rico....................................5.9 Hong Kong SAR ............................5.8 Netherlands ...................................5.7 Canada ..........................................5.7 France ...........................................5.6 Ireland............................................5.6 Norway ..........................................5.6 Austria ...........................................5.5 Australia .........................................5.5 United Arab Emirates .....................5.5 Sweden .........................................5.5 United States .................................5.4 Germany ........................................5.4 South Africa ...................................5.3 Belgium .........................................5.3 Denmark ........................................5.3 Malaysia.........................................5.2 Taiwan, China ................................5.1 Estonia...........................................4.9 Saudi Arabia ..................................4.9 Oman ............................................4.9 Iceland ...........................................4.8 Bahrain ..........................................4.7 Rwanda .........................................4.6 Israel ..............................................4.6 Jordan ...........................................4.6 Portugal .........................................4.6 Malta .............................................4.5 Barbados .......................................4.5 Panama .........................................4.4 Cyprus ...........................................4.3 Namibia .........................................4.3 Mauritius ........................................4.2 Botswana ......................................4.2 Indonesia .......................................4.1 Uruguay .........................................4.1 Ghana ............................................4.1 Gambia, The ..................................4.1 Slovenia .........................................4.1 Macedonia, FYR ............................4.0 Costa Rica .....................................4.0 Zambia ..........................................4.0 Latvia .............................................4.0 Bhutan ...........................................4.0 China .............................................4.0 Sri Lanka .......................................3.9 Czech Republic .............................3.9 Chile ..............................................3.9 Greece ...........................................3.9 Lithuania ........................................3.8 Swaziland ......................................3.8 Seychelles......................................3.8 Slovak Republic .............................3.8 Jamaica .........................................3.8 Poland ...........................................3.7 Morocco ........................................3.7 India...............................................3.7 Philippines .....................................3.7 Tajikistan ........................................3.7 Korea, Rep. ...................................3.7 Kenya ............................................3.7 Italy ................................................3.7 Hungary .........................................3.7 Turkey............................................3.7 SOURCE: 1 MEAN 3.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.8 7 Montenegro ...................................3.7 Kazakhstan ....................................3.7 Croatia ...........................................3.6 Lao PDR ........................................3.6 Spain .............................................3.6 El Salvador.....................................3.5 Honduras .......................................3.5 Azerbaijan ......................................3.5 Lesotho .........................................3.5 Mexico ...........................................3.5 Kuwait ...........................................3.5 Armenia .........................................3.5 Burkina Faso..................................3.4 Senegal .........................................3.4 Cameroon......................................3.4 Romania ........................................3.4 Bolivia ............................................3.3 Guyana ..........................................3.3 Tanzania ........................................3.3 Brazil..............................................3.3 Sierra Leone ..................................3.2 Trinidad and Tobago......................3.2 Dominican Republic .......................3.2 Colombia .......................................3.2 Cape Verde ...................................3.2 Ethiopia..........................................3.1 Côte d’Ivoire ..................................3.1 Malawi ...........................................3.1 Nicaragua ......................................3.1 Tunisia ...........................................3.1 Guatemala .....................................3.1 Thailand .........................................3.1 Vietnam .........................................3.1 Georgia ..........................................3.0 Russian Federation ........................3.0 Bulgaria .........................................3.0 Mali ................................................3.0 Egypt .............................................2.9 Nepal .............................................2.9 Albania...........................................2.9 Serbia ............................................2.9 Algeria ...........................................2.9 Madagascar ...................................2.9 Zimbabwe ......................................2.9 Pakistan .........................................2.9 Moldova .........................................2.8 Peru ...............................................2.8 Cambodia ......................................2.8 Gabon ...........................................2.8 Mozambique ..................................2.7 Myanmar........................................2.7 Uganda ..........................................2.7 Mongolia ........................................2.7 Nigeria ...........................................2.7 Iran, Islamic Rep. ...........................2.7 Suriname .......................................2.7 Ukraine ..........................................2.7 Kyrgyz Republic .............................2.6 Burundi ..........................................2.6 Paraguay .......................................2.5 Bangladesh....................................2.5 Chad..............................................2.5 Timor-Leste ...................................2.5 Argentina .......................................2.4 Yemen ...........................................2.3 Angola ...........................................2.3 Lebanon ........................................2.2 Guinea ...........................................2.2 Mauritania ......................................2.2 Haiti ...............................................2.2 Libya ..............................................1.8 Venezuela ......................................1.6 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 407 2.2: Data Tables 1.03 Diversion of public funds In your country, how common is diversion of public funds to companies, individuals, or groups due to corruption? [1 = very commonly occurs; 7 = never occurs] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 New Zealand .................................6.6 Denmark ........................................6.4 Finland ...........................................6.3 Qatar .............................................6.2 Luxembourg ..................................6.1 Singapore ......................................6.1 United Arab Emirates .....................6.0 Norway ..........................................5.9 Switzerland ....................................5.9 Hong Kong SAR ............................5.8 Netherlands ...................................5.7 Ireland............................................5.6 United Kingdom .............................5.6 Japan ............................................5.6 Sweden .........................................5.5 Belgium .........................................5.3 Australia .........................................5.3 Germany ........................................5.3 Rwanda .........................................5.3 Canada ..........................................5.2 Uruguay .........................................5.2 Iceland ...........................................5.1 Chile ..............................................5.0 Oman ............................................4.8 Saudi Arabia ..................................4.8 Malaysia.........................................4.8 France ...........................................4.7 Estonia...........................................4.7 Bhutan ...........................................4.6 United States .................................4.6 Austria ...........................................4.6 Georgia ..........................................4.5 Barbados .......................................4.5 Taiwan, China ................................4.4 Bahrain ..........................................4.4 Botswana ......................................4.3 Cyprus ...........................................4.3 Gambia, The ..................................4.2 Israel ..............................................4.1 Malta .............................................4.1 Portugal .........................................4.0 Macedonia, FYR ............................4.0 Jordan ...........................................4.0 Puerto Rico....................................3.9 China .............................................3.9 Mauritius ........................................3.9 Morocco ........................................3.8 Cape Verde ...................................3.8 Lesotho .........................................3.8 Poland ...........................................3.8 Tajikistan ........................................3.7 Montenegro ...................................3.7 Seychelles......................................3.7 Costa Rica .....................................3.7 Bolivia ............................................3.5 Tunisia ...........................................3.5 Kuwait ...........................................3.5 Ghana ............................................3.4 Lao PDR ........................................3.4 India...............................................3.4 Kazakhstan ....................................3.4 Swaziland ......................................3.4 Indonesia .......................................3.4 Croatia ...........................................3.3 Zambia ..........................................3.3 Lithuania ........................................3.3 Korea, Rep. ...................................3.3 Latvia .............................................3.3 Ethiopia..........................................3.2 Côte d’Ivoire ..................................3.2 El Salvador.....................................3.2 Senegal .........................................3.2 SOURCE: MEAN 3.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 408 The Global Competitiveness Report 2014–2015 VALUE Namibia .........................................3.2 Turkey............................................3.2 Timor-Leste ...................................3.2 Vietnam .........................................3.2 Azerbaijan ......................................3.1 Philippines .....................................3.1 Slovenia .........................................3.1 Armenia .........................................3.0 Greece ...........................................3.0 Romania ........................................3.0 Kenya ............................................3.0 Iran, Islamic Rep. ...........................3.0 Sri Lanka .......................................3.0 Jamaica .........................................3.0 Gabon ...........................................2.9 Suriname .......................................2.9 Guyana ..........................................2.9 Spain .............................................2.8 Tanzania ........................................2.8 Nepal .............................................2.8 Panama .........................................2.8 Pakistan .........................................2.8 Italy ................................................2.8 South Africa ...................................2.8 Albania...........................................2.7 Czech Republic .............................2.7 Serbia ............................................2.7 Sierra Leone ..................................2.7 Egypt .............................................2.7 Russian Federation ........................2.7 Mongolia ........................................2.7 Peru ...............................................2.7 Kyrgyz Republic .............................2.7 Bangladesh....................................2.6 Malawi ...........................................2.6 Thailand .........................................2.6 Zimbabwe ......................................2.6 Hungary .........................................2.6 Nicaragua ......................................2.6 Algeria ...........................................2.6 Cambodia ......................................2.6 Trinidad and Tobago......................2.5 Mauritania ......................................2.5 Mali ................................................2.5 Honduras .......................................2.5 Bulgaria .........................................2.5 Mexico ...........................................2.5 Haiti ...............................................2.4 Cameroon......................................2.4 Myanmar........................................2.4 Moldova .........................................2.4 Ukraine ..........................................2.4 Mozambique ..................................2.3 Madagascar ...................................2.3 Guatemala .....................................2.2 Colombia .......................................2.2 Burundi ..........................................2.2 Slovak Republic .............................2.2 Burkina Faso..................................2.1 Dominican Republic .......................2.1 Libya ..............................................2.1 Uganda ..........................................2.0 Brazil..............................................2.0 Guinea ...........................................2.0 Lebanon ........................................1.9 Chad..............................................1.8 Angola ...........................................1.8 Yemen ...........................................1.8 Paraguay .......................................1.8 Nigeria ...........................................1.8 Argentina .......................................1.7 Venezuela ......................................1.3 © 2014 World Economic Forum 1 MEAN 3.5 7 2.2: Data Tables 1.04 Public trust in politicians In your country, how would you rate the ethical standards of politicians? [1 = extremely low; 7 = extremely high] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Singapore ......................................6.2 Qatar .............................................6.1 United Arab Emirates .....................6.0 Norway ..........................................5.9 Finland ...........................................5.7 New Zealand .................................5.7 Luxembourg ..................................5.4 Switzerland ....................................5.3 Netherlands ...................................5.3 Rwanda .........................................5.3 Sweden .........................................5.3 Saudi Arabia ..................................5.1 Canada ..........................................4.8 Oman ............................................4.8 Germany ........................................4.7 Denmark ........................................4.7 Malaysia.........................................4.7 Hong Kong SAR ............................4.6 United Kingdom .............................4.5 Uruguay .........................................4.5 Japan ............................................4.5 Ireland............................................4.5 Belgium .........................................4.2 Bhutan ...........................................4.1 Australia .........................................4.1 China .............................................4.1 Iceland ...........................................4.0 Bahrain ..........................................4.0 Lao PDR ........................................3.9 Taiwan, China ................................3.9 Barbados .......................................3.9 Gambia, The ..................................3.8 Tajikistan ........................................3.8 Kazakhstan ....................................3.7 Chile ..............................................3.7 Austria ...........................................3.7 Indonesia .......................................3.6 Estonia...........................................3.6 Botswana ......................................3.6 Cape Verde ...................................3.6 Jordan ...........................................3.6 France ...........................................3.5 Malta .............................................3.5 Montenegro ...................................3.5 Seychelles......................................3.4 Azerbaijan ......................................3.4 Lesotho .........................................3.4 United States .................................3.4 Vietnam .........................................3.4 India...............................................3.4 Bolivia ............................................3.3 Macedonia, FYR ............................3.3 Morocco ........................................3.3 Swaziland ......................................3.3 Ghana ............................................3.2 Kuwait ...........................................3.2 Puerto Rico....................................3.2 Cyprus ...........................................3.2 Namibia .........................................3.2 Côte d’Ivoire ..................................3.2 Guyana ..........................................3.2 Turkey............................................3.1 Tunisia ...........................................3.1 Senegal .........................................3.1 Iran, Islamic Rep. ...........................3.1 Mauritius ........................................3.1 Portugal .........................................3.0 El Salvador.....................................3.0 Kenya ............................................3.0 Gabon ...........................................3.0 Costa Rica .....................................3.0 Myanmar........................................3.0 SOURCE: 1 MEAN 3.1 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.1 7 Zambia ..........................................3.0 Russian Federation ........................3.0 Timor-Leste ...................................3.0 Armenia .........................................2.9 Ethiopia..........................................2.9 Tanzania ........................................2.9 Georgia ..........................................2.9 Algeria ...........................................2.8 Israel ..............................................2.8 Mali ................................................2.8 Lithuania ........................................2.7 Latvia .............................................2.7 Sri Lanka .......................................2.7 Malawi ...........................................2.7 Cameroon......................................2.6 Sierra Leone ..................................2.6 Philippines .....................................2.6 South Africa ...................................2.6 Cambodia ......................................2.6 Burkina Faso..................................2.6 Egypt .............................................2.5 Uganda ..........................................2.5 Jamaica .........................................2.4 Ukraine ..........................................2.4 Korea, Rep. ...................................2.4 Yemen ...........................................2.4 Mozambique ..................................2.4 Honduras .......................................2.4 Poland ...........................................2.4 Panama .........................................2.4 Chad..............................................2.4 Burundi ..........................................2.3 Albania...........................................2.3 Greece ...........................................2.3 Guinea ...........................................2.3 Pakistan .........................................2.3 Romania ........................................2.3 Nicaragua ......................................2.3 Kyrgyz Republic .............................2.3 Libya ..............................................2.3 Hungary .........................................2.2 Mexico ...........................................2.2 Mauritania ......................................2.2 Moldova .........................................2.2 Spain .............................................2.2 Serbia ............................................2.1 Mongolia ........................................2.1 Madagascar ...................................2.1 Slovak Republic .............................2.1 Nepal .............................................2.1 Trinidad and Tobago......................2.0 Croatia ...........................................2.0 Colombia .......................................2.0 Haiti ...............................................2.0 Suriname .......................................2.0 Dominican Republic .......................2.0 Thailand .........................................1.9 Bulgaria .........................................1.9 Peru ...............................................1.9 Zimbabwe ......................................1.9 Slovenia .........................................1.9 Nigeria ...........................................1.8 Angola ...........................................1.8 Bangladesh....................................1.8 Guatemala .....................................1.8 Czech Republic .............................1.7 Italy ................................................1.7 Brazil..............................................1.7 Argentina .......................................1.6 Paraguay .......................................1.4 Venezuela ......................................1.4 Lebanon ........................................1.3 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 409 2.2: Data Tables 1.05 Irregular payments and bribes Average score across the five components of the following Executive Opinion Survey question: In your country, how common is it for firms to make undocumented extra payments or bribes in connection with (a) imports and exports; (b) public utilities; (c) annual tax payments; (d) awarding of public contracts and licenses; (e) obtaining favorable judicial decisions? In each case, the answer ranges from 1 [very common] to 7 [never occurs]. 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 New Zealand .................................6.7 Finland ...........................................6.6 Singapore ......................................6.5 United Arab Emirates .....................6.4 Qatar .............................................6.4 Luxembourg ..................................6.3 Norway ..........................................6.3 Iceland ...........................................6.3 Ireland............................................6.3 Switzerland ....................................6.2 Japan ............................................6.2 Hong Kong SAR ............................6.2 Denmark ........................................6.2 Netherlands ...................................6.0 United Kingdom .............................5.9 Australia .........................................5.9 Canada ..........................................5.8 Estonia...........................................5.8 Belgium .........................................5.8 Sweden .........................................5.7 Chile ..............................................5.7 Saudi Arabia ..................................5.6 Georgia ..........................................5.6 Uruguay .........................................5.6 Germany ........................................5.6 Austria ...........................................5.5 Rwanda .........................................5.5 Bahrain ..........................................5.4 Oman ............................................5.4 France ...........................................5.3 Taiwan, China ................................5.2 Portugal .........................................5.2 Israel ..............................................5.1 Cyprus ...........................................5.0 Macedonia, FYR ............................5.0 United States .................................5.0 Malaysia.........................................4.9 Barbados .......................................4.9 Bhutan ...........................................4.8 Botswana ......................................4.8 Latvia .............................................4.8 Slovenia .........................................4.7 Poland ...........................................4.7 Puerto Rico....................................4.7 Mauritius ........................................4.6 Jordan ...........................................4.6 Lithuania ........................................4.6 South Africa ...................................4.5 Costa Rica .....................................4.4 Spain .............................................4.4 Cape Verde ...................................4.4 Korea, Rep. ...................................4.4 Morocco ........................................4.3 Turkey............................................4.3 Bulgaria .........................................4.2 Hungary .........................................4.2 Kuwait ...........................................4.2 Lesotho .........................................4.2 Malta .............................................4.1 Gambia, The ..................................4.1 Namibia .........................................4.1 Gabon ...........................................4.1 Seychelles......................................4.1 Montenegro ...................................4.0 Egypt .............................................4.0 China .............................................4.0 Croatia ...........................................4.0 Romania ........................................3.9 Serbia ............................................3.9 Czech Republic .............................3.9 Côte d’Ivoire ..................................3.9 Guatemala .....................................3.9 SOURCE: MEAN 4.1 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 410 The Global Competitiveness Report 2014–2015 VALUE Swaziland ......................................3.8 Italy ................................................3.8 Jamaica .........................................3.8 Armenia .........................................3.8 Tunisia ...........................................3.8 Greece ...........................................3.8 Panama .........................................3.8 Kazakhstan ....................................3.8 Peru ...............................................3.8 Mongolia ........................................3.7 Zambia ..........................................3.7 Thailand .........................................3.7 Azerbaijan ......................................3.6 Philippines .....................................3.6 Indonesia .......................................3.6 Tajikistan ........................................3.6 Brazil..............................................3.6 Honduras .......................................3.5 Sri Lanka .......................................3.5 Senegal .........................................3.5 India...............................................3.5 Malawi ...........................................3.5 El Salvador.....................................3.5 Lao PDR ........................................3.4 Iran, Islamic Rep. ...........................3.4 Ghana ............................................3.4 Mexico ...........................................3.4 Slovak Republic .............................3.4 Zimbabwe ......................................3.4 Russian Federation ........................3.4 Nicaragua ......................................3.4 Suriname .......................................3.4 Colombia .......................................3.3 Trinidad and Tobago......................3.3 Dominican Republic .......................3.3 Kenya ............................................3.2 Vietnam .........................................3.2 Albania...........................................3.2 Timor-Leste ...................................3.1 Ethiopia..........................................3.1 Guyana ..........................................3.1 Mozambique ..................................3.1 Cameroon......................................3.1 Moldova .........................................3.0 Madagascar ...................................3.0 Ukraine ..........................................3.0 Nepal .............................................2.9 Algeria ...........................................2.9 Burkina Faso..................................2.9 Libya ..............................................2.9 Pakistan .........................................2.9 Tanzania ........................................2.9 Burundi ..........................................2.9 Haiti ...............................................2.8 Argentina .......................................2.8 Uganda ..........................................2.8 Cambodia ......................................2.8 Sierra Leone ..................................2.7 Paraguay .......................................2.7 Kyrgyz Republic .............................2.6 Bolivia ............................................2.6 Mali ................................................2.5 Nigeria ...........................................2.5 Angola ...........................................2.4 Venezuela ......................................2.4 Chad..............................................2.3 Myanmar........................................2.3 Bangladesh....................................2.3 Mauritania ......................................2.3 Lebanon ........................................2.2 Guinea ...........................................2.1 Yemen ...........................................2.1 © 2014 World Economic Forum 1 MEAN 4.1 7 2.2: Data Tables 1.06 Judicial independence In your country, to what extent is the judiciary independent from influences of members of government, citizens, or firms? [1 = heavily influenced; 7 = entirely independent] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE New Zealand .................................6.7 Finland ...........................................6.6 Denmark ........................................6.5 Norway ..........................................6.3 Hong Kong SAR ............................6.3 Ireland............................................6.3 United Kingdom .............................6.2 Japan ............................................6.2 Canada ..........................................6.2 Netherlands ...................................6.1 Switzerland ....................................6.1 Luxembourg ..................................6.0 Qatar .............................................6.0 Australia .........................................5.9 Germany ........................................5.9 Israel ..............................................5.8 Sweden .........................................5.7 Belgium .........................................5.7 Estonia...........................................5.7 Singapore ......................................5.7 Uruguay .........................................5.6 United Arab Emirates .....................5.6 Iceland ...........................................5.5 South Africa ...................................5.4 Barbados .......................................5.3 Saudi Arabia ..................................5.2 Chile ..............................................5.2 Austria ...........................................5.2 Oman ............................................5.1 United States .................................5.1 Mauritius ........................................5.1 Costa Rica .....................................5.0 France ...........................................5.0 Rwanda .........................................4.9 Botswana ......................................4.9 Malaysia.........................................4.9 Kuwait ...........................................4.9 Bhutan ...........................................4.8 Namibia .........................................4.7 Malta .............................................4.6 Trinidad and Tobago......................4.6 Jamaica .........................................4.5 Puerto Rico....................................4.5 Portugal .........................................4.5 Cyprus ...........................................4.5 Jordan ...........................................4.5 Bahrain ..........................................4.4 Ghana ............................................4.4 Taiwan, China ................................4.2 India...............................................4.2 Cape Verde ...................................4.2 Kenya ............................................4.1 Seychelles......................................4.1 Poland ...........................................4.1 Lesotho .........................................4.1 Hungary .........................................4.0 Egypt .............................................4.0 Latvia .............................................4.0 Malawi ...........................................4.0 China .............................................4.0 Lao PDR ........................................3.9 Czech Republic .............................3.9 Indonesia .......................................3.9 Suriname .......................................3.8 Georgia ..........................................3.8 Gambia, The ..................................3.8 Pakistan .........................................3.8 Thailand .........................................3.8 Zambia ..........................................3.7 Greece ...........................................3.7 Lithuania ........................................3.6 Sri Lanka .......................................3.6 SOURCE: 1 MEAN 3.9 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.9 7 El Salvador.....................................3.6 Tajikistan ........................................3.6 Tunisia ...........................................3.6 Brazil..............................................3.6 Philippines .....................................3.6 Italy ................................................3.5 Macedonia, FYR ............................3.5 Senegal .........................................3.5 Morocco ........................................3.5 Korea, Rep. ...................................3.5 Swaziland ......................................3.5 Romania ........................................3.5 Algeria ...........................................3.5 Kazakhstan ....................................3.4 Guyana ..........................................3.4 Vietnam .........................................3.4 Iran, Islamic Rep. ...........................3.4 Montenegro ...................................3.4 Slovenia .........................................3.4 Nepal .............................................3.3 Timor-Leste ...................................3.3 Bolivia ............................................3.3 Côte d’Ivoire ..................................3.2 Tanzania ........................................3.2 Spain .............................................3.2 Mexico ...........................................3.2 Azerbaijan ......................................3.2 Croatia ...........................................3.2 Turkey............................................3.1 Nigeria ...........................................3.1 Mali ................................................3.1 Libya ..............................................3.0 Guatemala .....................................3.0 Uganda ..........................................3.0 Armenia .........................................2.9 Mongolia ........................................2.9 Russian Federation ........................2.9 Ethiopia..........................................2.9 Gabon ...........................................2.9 Colombia .......................................2.8 Cameroon......................................2.8 Honduras .......................................2.8 Sierra Leone ..................................2.8 Panama .........................................2.7 Myanmar........................................2.6 Serbia ............................................2.6 Kyrgyz Republic .............................2.5 Zimbabwe ......................................2.5 Dominican Republic .......................2.5 Albania...........................................2.5 Mozambique ..................................2.5 Peru ...............................................2.5 Mauritania ......................................2.3 Bulgaria .........................................2.3 Argentina .......................................2.3 Yemen ...........................................2.3 Cambodia ......................................2.3 Slovak Republic .............................2.3 Nicaragua ......................................2.3 Bangladesh....................................2.2 Chad..............................................2.2 Madagascar ...................................2.2 Haiti ...............................................2.1 Burkina Faso..................................2.1 Angola ...........................................2.1 Lebanon ........................................2.1 Guinea ...........................................2.0 Ukraine ..........................................2.0 Moldova .........................................2.0 Paraguay .......................................1.6 Burundi ..........................................1.6 Venezuela ......................................1.1 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 411 2.2: Data Tables 1.07 Favoritism in decisions of government officials In your country, to what extent do government officials show favoritism to well-connected firms and individuals when deciding upon policies and contracts? [1 = always show favoritism; 7 = never show favoritism] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Qatar .............................................5.6 New Zealand .................................5.5 Singapore ......................................5.4 Finland ...........................................5.3 United Arab Emirates .....................5.3 Netherlands ...................................5.1 Japan ............................................5.1 Norway ..........................................5.1 Sweden .........................................5.0 Switzerland ....................................4.8 Luxembourg ..................................4.7 Germany ........................................4.7 Denmark ........................................4.6 Malaysia.........................................4.5 Ireland............................................4.5 Rwanda .........................................4.5 United Kingdom .............................4.5 Canada ..........................................4.4 Hong Kong SAR ............................4.3 Oman ............................................4.2 Taiwan, China ................................4.1 China .............................................4.1 Estonia...........................................4.1 Belgium .........................................4.1 Saudi Arabia ..................................4.1 Bahrain ..........................................4.0 Chile ..............................................4.0 Austria ...........................................4.0 Australia .........................................3.9 France ...........................................3.9 Uruguay .........................................3.9 Gambia, The ..................................3.9 Indonesia .......................................3.9 Jordan ...........................................3.8 Iceland ...........................................3.7 Egypt .............................................3.7 Bhutan ...........................................3.7 Lao PDR ........................................3.7 Lesotho .........................................3.7 Bolivia ............................................3.6 Macedonia, FYR ............................3.6 Botswana ......................................3.5 Tajikistan ........................................3.5 Morocco ........................................3.5 Costa Rica .....................................3.5 Montenegro ...................................3.5 United States .................................3.5 Georgia ..........................................3.4 India...............................................3.4 Cape Verde ...................................3.4 Zambia ..........................................3.4 Barbados .......................................3.3 Kazakhstan ....................................3.3 Portugal .........................................3.3 Azerbaijan ......................................3.3 Côte d’Ivoire ..................................3.2 Seychelles......................................3.2 Senegal .........................................3.2 Turkey............................................3.2 Tunisia ...........................................3.2 Tanzania ........................................3.2 Lithuania ........................................3.2 Cyprus ...........................................3.2 Swaziland ......................................3.2 Gabon ...........................................3.1 Philippines .....................................3.1 Poland ...........................................3.1 Iran, Islamic Rep. ...........................3.1 Albania...........................................3.1 Latvia .............................................3.1 Armenia .........................................3.1 Malta .............................................3.0 SOURCE: MEAN 3.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 412 The Global Competitiveness Report 2014–2015 VALUE Mauritius ........................................3.0 Vietnam .........................................3.0 Kenya ............................................3.0 Ghana ............................................3.0 Algeria ...........................................3.0 Spain .............................................3.0 Israel ..............................................2.9 El Salvador.....................................2.9 Kuwait ...........................................2.9 Korea, Rep. ...................................2.9 Puerto Rico....................................2.9 Namibia .........................................2.9 Burkina Faso..................................2.8 Ethiopia..........................................2.8 Russian Federation ........................2.8 Thailand .........................................2.8 Panama .........................................2.8 Honduras .......................................2.8 Nepal .............................................2.8 Cameroon......................................2.8 Guyana ..........................................2.8 Jamaica .........................................2.8 Mali ................................................2.7 Madagascar ...................................2.7 Malawi ...........................................2.7 Sri Lanka .......................................2.7 Mexico ...........................................2.7 Peru ...............................................2.7 Pakistan .........................................2.6 Cambodia ......................................2.6 Uganda ..........................................2.6 South Africa ...................................2.6 Nicaragua ......................................2.6 Czech Republic .............................2.6 Colombia .......................................2.6 Brazil..............................................2.6 Greece ...........................................2.6 Guatemala .....................................2.6 Slovenia .........................................2.6 Timor-Leste ...................................2.5 Haiti ...............................................2.5 Romania ........................................2.5 Mozambique ..................................2.5 Ukraine ..........................................2.5 Zimbabwe ......................................2.5 Sierra Leone ..................................2.5 Croatia ...........................................2.5 Serbia ............................................2.4 Burundi ..........................................2.4 Hungary .........................................2.4 Kyrgyz Republic .............................2.3 Libya ..............................................2.3 Mongolia ........................................2.3 Nigeria ...........................................2.3 Myanmar........................................2.3 Mauritania ......................................2.3 Suriname .......................................2.3 Moldova .........................................2.3 Bangladesh....................................2.2 Dominican Republic .......................2.2 Chad..............................................2.1 Bulgaria .........................................2.1 Italy ................................................2.1 Yemen ...........................................2.1 Trinidad and Tobago......................2.1 Guinea ...........................................2.0 Paraguay .......................................2.0 Angola ...........................................2.0 Slovak Republic .............................1.9 Lebanon ........................................1.7 Argentina .......................................1.7 Venezuela ......................................1.5 © 2014 World Economic Forum 1 MEAN 3.2 7 2.2: Data Tables 1.08 Wastefulness of government spending In your country, how efficiently does the government spend public revenue? [1 = extremely inefficient; 7 = extremely efficient in providing goods and services] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Qatar .............................................6.0 United Arab Emirates .....................6.0 Singapore ......................................5.9 Rwanda .........................................5.7 New Zealand .................................5.1 Oman ............................................5.1 Czech Republic .............................5.0 Malaysia.........................................4.9 Finland ...........................................4.8 Sweden .........................................4.8 Switzerland ....................................4.8 Saudi Arabia ..................................4.7 Norway ..........................................4.6 Hong Kong SAR ............................4.5 Bhutan ...........................................4.5 Luxembourg ..................................4.5 Bahrain ..........................................4.3 Netherlands ...................................4.3 Estonia...........................................4.3 Germany ........................................4.2 Chile ..............................................4.2 Japan ............................................4.1 Canada ..........................................4.1 China .............................................4.1 Lao PDR ........................................4.1 Botswana ......................................4.1 Gambia, The ..................................4.0 Tajikistan ........................................3.9 Indonesia .......................................3.9 Macedonia, FYR ............................3.8 Ireland............................................3.8 Jordan ...........................................3.8 United Kingdom .............................3.8 Malta .............................................3.8 Iceland ...........................................3.8 Denmark ........................................3.8 Turkey............................................3.7 Côte d’Ivoire ..................................3.7 Lesotho .........................................3.7 Kazakhstan ....................................3.7 Morocco ........................................3.6 Cape Verde ...................................3.6 Taiwan, China ................................3.6 Mauritius ........................................3.6 Senegal .........................................3.6 Zambia ..........................................3.6 Ghana ............................................3.5 Seychelles......................................3.5 India...............................................3.5 Sri Lanka .......................................3.5 Australia .........................................3.5 Azerbaijan ......................................3.5 Austria ...........................................3.4 Ethiopia..........................................3.4 Montenegro ...................................3.4 Cyprus ...........................................3.4 Barbados .......................................3.4 Panama .........................................3.3 Belgium .........................................3.3 Philippines .....................................3.3 Kenya ............................................3.3 Bolivia ............................................3.3 Albania...........................................3.3 Tunisia ...........................................3.3 Gabon ...........................................3.2 El Salvador.....................................3.2 Georgia ..........................................3.2 Korea, Rep. ...................................3.2 Mali ................................................3.2 Namibia .........................................3.2 Guyana ..........................................3.1 France ...........................................3.1 SOURCE: 1 MEAN 3.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.2 7 United States .................................3.1 Algeria ...........................................3.1 Sierra Leone ..................................3.0 Armenia .........................................3.0 Israel ..............................................3.0 Myanmar........................................3.0 Latvia .............................................3.0 Nicaragua ......................................3.0 Swaziland ......................................3.0 Iran, Islamic Rep. ...........................2.9 Vietnam .........................................2.9 Tanzania ........................................2.9 Poland ...........................................2.9 Cameroon......................................2.8 Russian Federation ........................2.8 Portugal .........................................2.8 South Africa ...................................2.8 Lithuania ........................................2.8 Burkina Faso..................................2.8 Kuwait ...........................................2.8 Angola ...........................................2.8 Timor-Leste ...................................2.7 Mozambique ..................................2.7 Hungary .........................................2.6 Guinea ...........................................2.6 Bulgaria .........................................2.6 Mexico ...........................................2.6 Mauritania ......................................2.6 Colombia .......................................2.6 Moldova .........................................2.6 Pakistan .........................................2.6 Uruguay .........................................2.6 Chad..............................................2.6 Malawi ...........................................2.6 Bangladesh....................................2.6 Haiti ...............................................2.5 Uganda ..........................................2.5 Cambodia ......................................2.5 Nepal .............................................2.5 Puerto Rico....................................2.5 Spain .............................................2.5 Trinidad and Tobago......................2.5 Thailand .........................................2.5 Romania ........................................2.5 Madagascar ...................................2.4 Dominican Republic .......................2.4 Peru ...............................................2.4 Costa Rica .....................................2.4 Kyrgyz Republic .............................2.4 Suriname .......................................2.4 Mongolia ........................................2.3 Burundi ..........................................2.3 Jamaica .........................................2.3 Slovak Republic .............................2.3 Honduras .......................................2.3 Guatemala .....................................2.3 Croatia ...........................................2.2 Egypt .............................................2.2 Greece ...........................................2.2 Serbia ............................................2.2 Slovenia .........................................2.2 Nigeria ...........................................2.2 Zimbabwe ......................................2.1 Libya ..............................................2.0 Brazil..............................................1.9 Ukraine ..........................................1.9 Italy ................................................1.9 Paraguay .......................................1.9 Yemen ...........................................1.8 Argentina .......................................1.5 Lebanon ........................................1.4 Venezuela ......................................1.2 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 413 2.2: Data Tables 1.09 Burden of government regulation In your country, how burdensome is it for businesses to comply with governmental administrative requirements (e.g., permits, regulations, reporting)? [1 = extremely burdensome; 7 = not burdensome at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Qatar .............................................5.2 Singapore ......................................5.2 United Arab Emirates .....................5.2 Malaysia.........................................5.0 Hong Kong SAR ............................5.0 Rwanda .........................................4.8 Finland ...........................................4.5 Georgia ..........................................4.5 Luxembourg ..................................4.3 Estonia...........................................4.3 Bahrain ..........................................4.3 Switzerland ....................................4.2 Seychelles......................................4.2 Oman ............................................4.2 Cyprus ...........................................4.1 Barbados .......................................4.1 New Zealand .................................4.1 Tajikistan ........................................4.1 China .............................................4.1 Sweden .........................................4.0 Chile ..............................................4.0 Ireland............................................4.0 Indonesia .......................................4.0 Panama .........................................4.0 Gambia, The ..................................4.0 Lao PDR ........................................4.0 Macedonia, FYR ............................4.0 Albania...........................................4.0 Senegal .........................................4.0 Netherlands ...................................3.9 Lesotho .........................................3.9 Azerbaijan ......................................3.9 Jordan ...........................................3.9 Taiwan, China ................................3.9 Zambia ..........................................3.9 Mauritius ........................................3.9 United Kingdom .............................3.9 Norway ..........................................3.8 Canada ..........................................3.8 Paraguay .......................................3.8 Iceland ...........................................3.8 Uganda ..........................................3.7 Armenia .........................................3.7 Malawi ...........................................3.7 Saudi Arabia ..................................3.7 Egypt .............................................3.7 Bhutan ...........................................3.7 Kenya ............................................3.6 Cape Verde ...................................3.6 Côte d’Ivoire ..................................3.6 Guatemala .....................................3.6 Sierra Leone ..................................3.6 Morocco ........................................3.6 Guyana ..........................................3.6 Germany ........................................3.6 Burkina Faso..................................3.6 Bolivia ............................................3.6 Montenegro ...................................3.6 India...............................................3.6 Swaziland ......................................3.6 Tanzania ........................................3.6 El Salvador.....................................3.5 Kazakhstan ....................................3.5 Japan ............................................3.5 Mozambique ..................................3.5 Tunisia ...........................................3.5 Botswana ......................................3.5 Guinea ...........................................3.5 Madagascar ...................................3.5 Trinidad and Tobago......................3.5 Turkey............................................3.5 Namibia .........................................3.5 SOURCE: MEAN 3.4 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 414 The Global Competitiveness Report 2014–2015 VALUE Philippines .....................................3.4 Ghana ............................................3.4 Latvia .............................................3.4 Malta .............................................3.4 Honduras .......................................3.4 Gabon ...........................................3.4 Cameroon......................................3.4 Denmark ........................................3.4 Dominican Republic .......................3.4 United States .................................3.4 Austria ...........................................3.4 Uruguay .........................................3.4 Cambodia ......................................3.4 Nicaragua ......................................3.3 Kyrgyz Republic .............................3.3 Costa Rica .....................................3.3 Thailand .........................................3.3 Ethiopia..........................................3.3 Sri Lanka .......................................3.3 Haiti ...............................................3.2 Suriname .......................................3.2 Romania ........................................3.2 Mali ................................................3.2 Korea, Rep. ...................................3.2 Burundi ..........................................3.1 Mauritania ......................................3.1 Nigeria ...........................................3.1 Timor-Leste ...................................3.1 Vietnam .........................................3.1 Bulgaria .........................................3.1 Pakistan .........................................3.1 Algeria ...........................................3.1 Lithuania ........................................3.0 Nepal .............................................3.0 Yemen ...........................................3.0 Portugal .........................................3.0 Bangladesh....................................3.0 Moldova .........................................2.9 Russian Federation ........................2.9 Myanmar........................................2.9 Chad..............................................2.9 Mongolia ........................................2.9 Ukraine ..........................................2.9 Israel ..............................................2.9 Poland ...........................................2.9 Mexico ...........................................2.9 Zimbabwe ......................................2.8 South Africa ...................................2.8 France ...........................................2.8 Colombia .......................................2.8 Spain .............................................2.8 Australia .........................................2.8 Iran, Islamic Rep. ...........................2.8 Jamaica .........................................2.7 Peru ...............................................2.7 Angola ...........................................2.7 Hungary .........................................2.6 Belgium .........................................2.6 Lebanon ........................................2.6 Czech Republic .............................2.6 Slovenia .........................................2.5 Libya ..............................................2.5 Kuwait ...........................................2.5 Greece ...........................................2.4 Slovak Republic .............................2.4 Puerto Rico....................................2.4 Argentina .......................................2.3 Serbia ............................................2.2 Croatia ...........................................2.2 Italy ................................................1.9 Brazil..............................................1.9 Venezuela ......................................1.6 © 2014 World Economic Forum 1 MEAN 3.4 7 2.2: Data Tables 1.10 Efficiency of legal framework in settling disputes In your country, how efficient is the legal framework for private businesses in settling disputes? [1 = extremely inefficient; 7 = extremely efficient] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Singapore ......................................6.2 Finland ...........................................6.0 Hong Kong SAR ............................5.9 New Zealand .................................5.9 United Kingdom .............................5.7 Qatar .............................................5.7 Norway ..........................................5.6 Switzerland ....................................5.6 Netherlands ...................................5.5 Canada ..........................................5.5 Germany ........................................5.4 Luxembourg ..................................5.4 Sweden .........................................5.4 Malaysia.........................................5.3 South Africa ...................................5.2 Rwanda .........................................5.2 United Arab Emirates .....................5.2 Japan ............................................5.2 Puerto Rico....................................5.1 Denmark ........................................5.0 Ireland............................................4.9 Mauritius ........................................4.9 United States .................................4.9 Austria ...........................................4.9 Iceland ...........................................4.9 Australia .........................................4.8 Oman ............................................4.8 Sri Lanka .......................................4.6 Namibia .........................................4.5 Chile ..............................................4.4 Jordan ...........................................4.4 Botswana ......................................4.4 Zambia ..........................................4.4 Saudi Arabia ..................................4.4 Gambia, The ..................................4.4 Barbados .......................................4.3 Malta .............................................4.3 Lao PDR ........................................4.3 Estonia...........................................4.3 Bahrain ..........................................4.2 France ...........................................4.2 Belgium .........................................4.2 Indonesia .......................................4.1 Bhutan ...........................................4.1 Ghana ............................................4.1 Israel ..............................................4.1 Kenya ............................................4.1 Taiwan, China ................................4.1 China .............................................4.1 Uruguay .........................................4.0 Cyprus ...........................................4.0 Seychelles......................................4.0 Macedonia, FYR ............................4.0 Tajikistan ........................................3.9 Swaziland ......................................3.9 Turkey............................................3.8 India...............................................3.8 Senegal .........................................3.8 Kazakhstan ....................................3.8 Azerbaijan ......................................3.8 Uganda ..........................................3.8 Thailand .........................................3.8 Costa Rica .....................................3.8 Tanzania ........................................3.7 Kuwait ...........................................3.7 Bolivia ............................................3.7 Côte d’Ivoire ..................................3.7 Philippines .....................................3.7 Montenegro ...................................3.7 Lesotho .........................................3.7 Georgia ..........................................3.7 Malawi ...........................................3.7 SOURCE: 1 MEAN 3.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.8 7 Morocco ........................................3.7 Panama .........................................3.6 Tunisia ...........................................3.6 Honduras .......................................3.6 Cape Verde ...................................3.6 Cameroon......................................3.5 Gabon ...........................................3.5 Guyana ..........................................3.5 Burkina Faso..................................3.5 Korea, Rep. ...................................3.5 Trinidad and Tobago......................3.5 Lithuania ........................................3.5 El Salvador.....................................3.5 Dominican Republic .......................3.4 Mali ................................................3.4 Jamaica .........................................3.4 Vietnam .........................................3.4 Spain .............................................3.4 Colombia .......................................3.4 Sierra Leone ..................................3.4 Zimbabwe ......................................3.4 Iran, Islamic Rep. ...........................3.4 Armenia .........................................3.4 Guatemala .....................................3.3 Ethiopia..........................................3.3 Nigeria ...........................................3.3 Mexico ...........................................3.3 Czech Republic .............................3.3 Pakistan .........................................3.3 Nicaragua ......................................3.3 Mozambique ..................................3.3 Hungary .........................................3.3 Egypt .............................................3.3 Romania ........................................3.2 Brazil..............................................3.2 Algeria ...........................................3.2 Mongolia ........................................3.2 Russian Federation ........................3.2 Portugal .........................................3.1 Peru ...............................................3.1 Timor-Leste ...................................3.1 Cambodia ......................................3.1 Suriname .......................................3.0 Latvia .............................................3.0 Madagascar ...................................2.9 Poland ...........................................2.9 Albania...........................................2.9 Nepal .............................................2.9 Burundi ..........................................2.9 Kyrgyz Republic .............................2.9 Bangladesh....................................2.9 Bulgaria .........................................2.8 Myanmar........................................2.7 Greece ...........................................2.7 Moldova .........................................2.7 Serbia ............................................2.7 Ukraine ..........................................2.6 Argentina .......................................2.6 Slovenia .........................................2.6 Lebanon ........................................2.5 Chad..............................................2.5 Croatia ...........................................2.5 Libya ..............................................2.4 Paraguay .......................................2.4 Slovak Republic .............................2.4 Mauritania ......................................2.4 Haiti ...............................................2.4 Angola ...........................................2.3 Yemen ...........................................2.3 Guinea ...........................................2.3 Italy ................................................2.0 Venezuela ......................................1.5 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 415 2.2: Data Tables 1.11 Efficiency of legal framework in challenging regulations In your country, how easy is it for private businesses to challenge government actions and/or regulations through the legal system? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Finland ...........................................5.6 New Zealand .................................5.5 Hong Kong SAR ............................5.4 Qatar .............................................5.3 Netherlands ...................................5.2 Luxembourg ..................................5.1 United Kingdom .............................5.1 Switzerland ....................................4.9 South Africa ...................................4.9 Norway ..........................................4.8 Canada ..........................................4.8 Germany ........................................4.8 Malaysia.........................................4.8 Sweden .........................................4.7 United Arab Emirates .....................4.7 Ireland............................................4.7 Iceland ...........................................4.5 United States .................................4.4 Japan ............................................4.4 Puerto Rico....................................4.4 Singapore ......................................4.4 Jordan ...........................................4.4 Estonia...........................................4.3 Rwanda .........................................4.3 France ...........................................4.2 Australia .........................................4.1 Saudi Arabia ..................................4.1 Costa Rica .....................................4.1 Austria ...........................................4.1 Mauritius ........................................4.1 Cyprus ...........................................4.1 Belgium .........................................4.1 Chile ..............................................4.1 Barbados .......................................4.0 Israel ..............................................4.0 Namibia .........................................3.9 Oman ............................................3.9 Indonesia .......................................3.8 Bahrain ..........................................3.8 Uruguay .........................................3.8 Botswana ......................................3.8 Kenya ............................................3.8 India...............................................3.8 Denmark ........................................3.7 Kuwait ...........................................3.7 Senegal .........................................3.7 China .............................................3.6 Côte d’Ivoire ..................................3.6 Malawi ...........................................3.6 Malta .............................................3.6 Azerbaijan ......................................3.5 Turkey............................................3.5 Jamaica .........................................3.5 Guatemala .....................................3.5 Tajikistan ........................................3.5 Philippines .....................................3.5 Guyana ..........................................3.5 Mali ................................................3.5 Swaziland ......................................3.5 Kazakhstan ....................................3.5 Honduras .......................................3.5 Lesotho .........................................3.5 Tunisia ...........................................3.4 Ghana ............................................3.4 Dominican Republic .......................3.4 Cape Verde ...................................3.4 Bolivia ............................................3.4 El Salvador.....................................3.4 Panama .........................................3.4 Seychelles......................................3.4 Zambia ..........................................3.3 Thailand .........................................3.3 SOURCE: MEAN 3.4 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 416 The Global Competitiveness Report 2014–2015 VALUE Morocco ........................................3.3 Cameroon......................................3.3 Taiwan, China ................................3.3 Gambia, The ..................................3.3 Portugal .........................................3.3 Tanzania ........................................3.3 Sri Lanka .......................................3.3 Vietnam .........................................3.2 Montenegro ...................................3.2 Egypt .............................................3.2 Georgia ..........................................3.2 Uganda ..........................................3.2 Paraguay .......................................3.2 Spain .............................................3.2 Bhutan ...........................................3.2 Mexico ...........................................3.1 Pakistan .........................................3.1 Trinidad and Tobago......................3.1 Colombia .......................................3.1 Macedonia, FYR ............................3.1 Romania ........................................3.1 Brazil..............................................3.1 Latvia .............................................3.0 Albania...........................................3.0 Gabon ...........................................3.0 Armenia .........................................2.9 Russian Federation ........................2.9 Burundi ..........................................2.9 Nepal .............................................2.9 Bangladesh....................................2.9 Suriname .......................................2.9 Algeria ...........................................2.9 Nigeria ...........................................2.9 Lao PDR ........................................2.8 Burkina Faso..................................2.8 Lithuania ........................................2.8 Peru ...............................................2.8 Poland ...........................................2.8 Timor-Leste ...................................2.8 Mozambique ..................................2.8 Korea, Rep. ...................................2.8 Greece ...........................................2.7 Czech Republic .............................2.7 Cambodia ......................................2.7 Madagascar ...................................2.7 Nicaragua ......................................2.6 Kyrgyz Republic .............................2.6 Zimbabwe ......................................2.5 Hungary .........................................2.5 Mongolia ........................................2.5 Yemen ...........................................2.5 Bulgaria .........................................2.5 Ethiopia..........................................2.4 Guinea ...........................................2.4 Libya ..............................................2.4 Myanmar........................................2.4 Serbia ............................................2.3 Iran, Islamic Rep. ...........................2.3 Ukraine ..........................................2.3 Sierra Leone ..................................2.3 Slovenia .........................................2.3 Moldova .........................................2.3 Italy ................................................2.2 Slovak Republic .............................2.2 Haiti ...............................................2.2 Croatia ...........................................2.1 Lebanon ........................................2.1 Mauritania ......................................2.1 Angola ...........................................2.0 Chad..............................................2.0 Argentina .......................................1.9 Venezuela ......................................1.2 © 2014 World Economic Forum 1 MEAN 3.4 7 2.2: Data Tables 1.12 Transparency of government policymaking In your country, how easy is it for businesses to obtain information about changes in government policies and regulations affecting their activities? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Singapore ......................................6.1 New Zealand .................................5.8 Finland ...........................................5.8 Hong Kong SAR ............................5.8 Qatar .............................................5.7 Luxembourg ..................................5.6 Switzerland ....................................5.6 Rwanda .........................................5.5 Taiwan, China ................................5.4 United Arab Emirates .....................5.4 Japan ............................................5.3 Norway ..........................................5.3 Sweden .........................................5.2 Netherlands ...................................5.2 Malaysia.........................................5.2 United Kingdom .............................5.2 Ireland............................................5.1 Canada ..........................................5.1 Chile ..............................................5.0 Estonia...........................................5.0 Austria ...........................................4.8 Germany ........................................4.8 Iceland ...........................................4.7 Georgia ..........................................4.7 Cyprus ...........................................4.7 Bahrain ..........................................4.7 Uruguay .........................................4.7 Lithuania ........................................4.7 Macedonia, FYR ............................4.6 Jordan ...........................................4.6 Oman ............................................4.5 Denmark ........................................4.5 China .............................................4.5 Mauritius ........................................4.5 South Africa ...................................4.5 Zambia ..........................................4.5 Barbados .......................................4.5 Saudi Arabia ..................................4.5 Armenia .........................................4.5 Kazakhstan ....................................4.5 Gambia, The ..................................4.4 Turkey............................................4.4 Latvia .............................................4.4 United States .................................4.4 Guatemala .....................................4.4 Montenegro ...................................4.4 Morocco ........................................4.3 Azerbaijan ......................................4.3 Botswana ......................................4.3 Costa Rica .....................................4.3 Australia .........................................4.3 Indonesia .......................................4.2 Panama .........................................4.2 Dominican Republic .......................4.2 Slovenia .........................................4.2 Belgium .........................................4.1 Senegal .........................................4.1 Kenya ............................................4.1 Seychelles......................................4.1 Cape Verde ...................................4.1 Honduras .......................................4.1 Cameroon......................................4.0 Israel ..............................................4.0 India...............................................4.0 Malta .............................................4.0 Puerto Rico....................................4.0 Albania...........................................4.0 Russian Federation ........................4.0 Moldova .........................................4.0 France ...........................................4.0 Lesotho .........................................3.9 Egypt .............................................3.9 SOURCE: 1 MEAN 4.0 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.0 7 Paraguay .......................................3.9 Slovak Republic .............................3.9 Mexico ...........................................3.9 Bhutan ...........................................3.9 Ghana ............................................3.9 Namibia .........................................3.9 Swaziland ......................................3.9 Uganda ..........................................3.9 Portugal .........................................3.9 Kyrgyz Republic .............................3.8 Côte d’Ivoire ..................................3.8 Colombia .......................................3.8 Philippines .....................................3.8 Romania ........................................3.8 Mongolia ........................................3.8 Sri Lanka .......................................3.8 Guyana ..........................................3.8 Tunisia ...........................................3.8 Sierra Leone ..................................3.8 Peru ...............................................3.7 Gabon ...........................................3.7 El Salvador.....................................3.7 Tajikistan ........................................3.7 Yemen ...........................................3.7 Mali ................................................3.7 Trinidad and Tobago......................3.7 Czech Republic .............................3.7 Thailand .........................................3.7 Nicaragua ......................................3.6 Malawi ...........................................3.6 Kuwait ...........................................3.6 Ukraine ..........................................3.6 Spain .............................................3.6 Bolivia ............................................3.6 Algeria ...........................................3.6 Serbia ............................................3.6 Jamaica .........................................3.6 Poland ...........................................3.6 Tanzania ........................................3.6 Mozambique ..................................3.6 Lao PDR ........................................3.5 Bangladesh....................................3.5 Zimbabwe ......................................3.5 Vietnam .........................................3.5 Nepal .............................................3.5 Pakistan .........................................3.4 Hungary .........................................3.4 Greece ...........................................3.4 Croatia ...........................................3.3 Suriname .......................................3.3 Burkina Faso..................................3.3 Bulgaria .........................................3.3 Ethiopia..........................................3.3 Nigeria ...........................................3.2 Iran, Islamic Rep. ...........................3.2 Brazil..............................................3.2 Timor-Leste ...................................3.2 Cambodia ......................................3.2 Burundi ..........................................3.2 Madagascar ...................................3.1 Korea, Rep. ...................................3.1 Guinea ...........................................3.0 Argentina .......................................3.0 Myanmar........................................2.9 Angola ...........................................2.9 Lebanon ........................................2.9 Libya ..............................................2.9 Chad..............................................2.8 Haiti ...............................................2.7 Mauritania ......................................2.6 Italy ................................................2.5 Venezuela ......................................2.3 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 417 2.2: Data Tables 1.13 Business costs of terrorism In your country, to what extent does the threat of terrorism impose costs on businesses? [1 = to a great extent; 7 = not at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Finland ...........................................6.7 Slovenia .........................................6.6 Iceland ...........................................6.5 Uruguay .........................................6.5 Croatia ...........................................6.5 Austria ...........................................6.5 Portugal .........................................6.5 Zimbabwe ......................................6.5 Qatar .............................................6.4 United Arab Emirates .....................6.4 Oman ............................................6.3 Mauritius ........................................6.3 Hungary .........................................6.2 Costa Rica .....................................6.2 Suriname .......................................6.2 Luxembourg ..................................6.2 Sri Lanka .......................................6.2 Estonia...........................................6.2 Moldova .........................................6.1 Botswana ......................................6.1 Barbados .......................................6.1 Argentina .......................................6.1 Brazil..............................................6.1 Ireland............................................6.1 New Zealand .................................6.0 Belgium .........................................6.0 Poland ...........................................6.0 Cyprus ...........................................6.0 Zambia ..........................................6.0 South Africa ...................................6.0 Puerto Rico....................................6.0 Mongolia ........................................5.9 Taiwan, China ................................5.9 Switzerland ....................................5.9 Georgia ..........................................5.9 Latvia .............................................5.9 Rwanda .........................................5.9 Slovak Republic .............................5.9 Namibia .........................................5.8 Montenegro ...................................5.8 Bhutan ...........................................5.8 Czech Republic .............................5.8 Australia .........................................5.8 Gambia, The ..................................5.8 Sweden .........................................5.8 Armenia .........................................5.7 Malawi ...........................................5.7 Azerbaijan ......................................5.7 Hong Kong SAR ............................5.7 Singapore ......................................5.7 Netherlands ...................................5.7 Lithuania ........................................5.7 Macedonia, FYR ............................5.6 Italy ................................................5.6 Malta .............................................5.6 Chile ..............................................5.5 Jamaica .........................................5.5 Serbia ............................................5.5 Gabon ...........................................5.5 Germany ........................................5.5 Guinea ...........................................5.5 Saudi Arabia ..................................5.4 Trinidad and Tobago......................5.4 Norway ..........................................5.4 Malaysia.........................................5.4 Albania...........................................5.4 Morocco ........................................5.4 Kazakhstan ....................................5.3 Greece ...........................................5.3 Haiti ...............................................5.3 Swaziland ......................................5.3 Kuwait ...........................................5.2 SOURCE: MEAN 5.1 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 418 The Global Competitiveness Report 2014–2015 VALUE Panama .........................................5.2 Canada ..........................................5.2 Cape Verde ...................................5.2 Lesotho .........................................5.2 Venezuela ......................................5.2 Lao PDR ........................................5.2 Nicaragua ......................................5.2 Japan ............................................5.1 Bulgaria .........................................5.1 United Kingdom .............................5.1 Spain .............................................5.0 Jordan ...........................................5.0 China .............................................5.0 Sierra Leone ..................................5.0 Cameroon......................................5.0 Guatemala .....................................4.9 Dominican Republic .......................4.9 Ethiopia..........................................4.9 Guyana ..........................................4.9 Timor-Leste ...................................4.9 Paraguay .......................................4.9 Vietnam .........................................4.8 Denmark ........................................4.8 Angola ...........................................4.8 Romania ........................................4.8 Mexico ...........................................4.7 Tanzania ........................................4.7 Cambodia ......................................4.7 Senegal .........................................4.7 Honduras .......................................4.7 Côte d’Ivoire ..................................4.7 Russian Federation ........................4.6 Indonesia .......................................4.6 Burundi ..........................................4.6 Seychelles......................................4.6 Tajikistan ........................................4.6 France ...........................................4.6 Philippines .....................................4.6 Kyrgyz Republic .............................4.5 Madagascar ...................................4.5 Mozambique ..................................4.4 Bangladesh....................................4.4 Korea, Rep. ...................................4.4 Mauritania ......................................4.4 Ukraine ..........................................4.4 United States .................................4.2 Nepal .............................................4.1 Bahrain ..........................................4.1 Thailand .........................................4.1 Bolivia ............................................4.0 Turkey............................................4.0 Peru ...............................................4.0 India...............................................4.0 Ghana ............................................3.9 Iran, Islamic Rep. ...........................3.9 Burkina Faso..................................3.9 Algeria ...........................................3.8 El Salvador.....................................3.7 Uganda ..........................................3.6 Israel ..............................................3.4 Tunisia ...........................................3.3 Chad..............................................3.2 Kenya ............................................3.0 Myanmar........................................2.9 Nigeria ...........................................2.8 Colombia .......................................2.7 Pakistan .........................................2.7 Lebanon ........................................2.6 Mali ................................................2.5 Libya ..............................................2.4 Egypt .............................................2.4 Yemen ...........................................2.3 © 2014 World Economic Forum 1 MEAN 5.1 7 2.2: Data Tables 1.14 Business costs of crime and violence In your country, to what extent does the incidence of crime and violence impose costs on businesses? [1 = to a great extent; 7 = not at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Qatar .............................................6.5 United Arab Emirates .....................6.5 Finland ...........................................6.3 Singapore ......................................6.2 Oman ............................................6.1 Rwanda .........................................6.1 Iceland ...........................................6.1 Austria ...........................................6.1 Luxembourg ..................................6.1 Portugal .........................................6.0 Taiwan, China ................................5.7 Hong Kong SAR ............................5.7 Malta .............................................5.7 Cyprus ...........................................5.7 Azerbaijan ......................................5.7 New Zealand .................................5.7 Saudi Arabia ..................................5.6 Bhutan ...........................................5.6 Switzerland ....................................5.6 Norway ..........................................5.6 Slovenia .........................................5.5 Armenia .........................................5.5 Ireland............................................5.5 Estonia...........................................5.5 Australia .........................................5.5 Belgium .........................................5.5 Poland ...........................................5.4 Morocco ........................................5.3 Georgia ..........................................5.3 Kuwait ...........................................5.2 Netherlands ...................................5.2 Croatia ...........................................5.2 Japan ............................................5.2 Canada ..........................................5.2 Mauritius ........................................5.2 Germany ........................................5.2 Spain .............................................5.2 Latvia .............................................5.2 Sweden .........................................5.2 Gambia, The ..................................5.2 Jordan ...........................................5.1 United Kingdom .............................5.0 Lao PDR ........................................5.0 Ethiopia..........................................5.0 Greece ...........................................4.9 Moldova .........................................4.9 Malaysia.........................................4.9 Lithuania ........................................4.8 Israel ..............................................4.8 Czech Republic .............................4.8 Macedonia, FYR ............................4.8 China .............................................4.8 Kazakhstan ....................................4.8 Sri Lanka .......................................4.8 Mongolia ........................................4.8 Hungary .........................................4.8 Mauritania ......................................4.7 Zimbabwe ......................................4.7 Montenegro ...................................4.7 Denmark ........................................4.7 Chile ..............................................4.6 Zambia ..........................................4.6 Slovak Republic .............................4.5 Vietnam .........................................4.5 Senegal .........................................4.5 Nicaragua ......................................4.5 Turkey............................................4.5 Bahrain ..........................................4.5 Swaziland ......................................4.5 Russian Federation ........................4.5 Gabon ...........................................4.4 Cameroon......................................4.4 SOURCE: 1 MEAN 4.4 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.4 7 Tajikistan ........................................4.4 Romania ........................................4.4 Albania...........................................4.3 Korea, Rep. ...................................4.3 Philippines .....................................4.3 Suriname .......................................4.3 France ...........................................4.3 Indonesia .......................................4.3 Italy ................................................4.3 Bulgaria .........................................4.3 Kyrgyz Republic .............................4.2 Thailand .........................................4.2 United States .................................4.2 Serbia ............................................4.2 Seychelles......................................4.2 Tanzania ........................................4.1 Barbados .......................................4.1 Botswana ......................................4.1 Cambodia ......................................4.1 Costa Rica .....................................4.0 Algeria ...........................................4.0 Namibia .........................................4.0 Panama .........................................3.9 Lesotho .........................................3.9 Ukraine ..........................................3.9 India...............................................3.8 Timor-Leste ...................................3.8 Uruguay .........................................3.8 Cape Verde ...................................3.8 Sierra Leone ..................................3.8 Burkina Faso..................................3.8 Ghana ............................................3.7 Guyana ..........................................3.7 Madagascar ...................................3.7 Tunisia ...........................................3.6 Bolivia ............................................3.6 Guinea ...........................................3.6 Paraguay .......................................3.6 Malawi ...........................................3.6 Iran, Islamic Rep. ...........................3.6 Lebanon ........................................3.6 Angola ...........................................3.6 Burundi ..........................................3.5 Bangladesh....................................3.5 Mozambique ..................................3.4 Uganda ..........................................3.4 Nepal .............................................3.4 Côte d’Ivoire ..................................3.3 Dominican Republic .......................3.3 Puerto Rico....................................3.3 Argentina .......................................3.2 Brazil..............................................3.2 Myanmar........................................3.1 Chad..............................................3.0 Peru ...............................................3.0 Haiti ...............................................3.0 Kenya ............................................3.0 Nigeria ...........................................2.9 Mali ................................................2.9 Pakistan .........................................2.8 South Africa ...................................2.8 Colombia .......................................2.7 Mexico ...........................................2.7 El Salvador.....................................2.7 Egypt .............................................2.5 Libya ..............................................2.5 Yemen ...........................................2.4 Honduras .......................................2.4 Trinidad and Tobago......................2.3 Guatemala .....................................2.1 Jamaica .........................................2.1 Venezuela ......................................1.9 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 419 2.2: Data Tables 1.15 Organized crime In your country, to what extent does organized crime (mafia-oriented racketeering, extortion) impose costs on businesses? [1 = to a great extent; 7 = not at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 United Arab Emirates .....................6.8 Qatar .............................................6.7 Oman ............................................6.7 Singapore ......................................6.6 Finland ...........................................6.6 Iceland ...........................................6.5 New Zealand .................................6.5 Austria ...........................................6.5 Rwanda .........................................6.4 Saudi Arabia ..................................6.4 Luxembourg ..................................6.3 Estonia...........................................6.3 Portugal .........................................6.3 Bahrain ..........................................6.3 Barbados .......................................6.1 Bhutan ...........................................6.1 Norway ..........................................6.1 Belgium .........................................6.1 Netherlands ...................................6.0 Mauritius ........................................6.0 Uruguay .........................................6.0 Switzerland ....................................5.9 Australia .........................................5.9 Ireland............................................5.9 Hong Kong SAR ............................5.8 Malta .............................................5.8 Georgia ..........................................5.8 Taiwan, China ................................5.8 United Kingdom .............................5.8 Cyprus ...........................................5.7 Zimbabwe ......................................5.7 Gambia, The ..................................5.7 Morocco ........................................5.7 Latvia .............................................5.7 Poland ...........................................5.6 Sweden .........................................5.6 Jordan ...........................................5.6 Botswana ......................................5.6 Germany ........................................5.5 Azerbaijan ......................................5.5 Slovenia .........................................5.5 Greece ...........................................5.5 Kuwait ...........................................5.5 Spain .............................................5.5 Chile ..............................................5.5 Denmark ........................................5.5 Zambia ..........................................5.5 Ethiopia..........................................5.4 Croatia ...........................................5.4 Canada ..........................................5.3 Malaysia.........................................5.2 Japan ............................................5.2 Costa Rica .....................................5.2 Puerto Rico....................................5.2 Lithuania ........................................5.1 Malawi ...........................................5.1 Armenia .........................................5.1 Suriname .......................................5.1 Czech Republic .............................5.0 Nicaragua ......................................5.0 Seychelles......................................4.9 France ...........................................4.9 Hungary .........................................4.9 Mauritania ......................................4.9 Macedonia, FYR ............................4.8 Tajikistan ........................................4.8 Sri Lanka .......................................4.8 Swaziland ......................................4.8 Philippines .....................................4.7 China .............................................4.7 Lao PDR ........................................4.7 Mongolia ........................................4.7 SOURCE: MEAN 4.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 420 The Global Competitiveness Report 2014–2015 VALUE United States .................................4.7 Kazakhstan ....................................4.7 Israel ..............................................4.7 Namibia .........................................4.7 Tanzania ........................................4.7 Vietnam .........................................4.6 Cameroon......................................4.6 Montenegro ...................................4.6 Gabon ...........................................4.6 Slovak Republic .............................4.6 Moldova .........................................4.6 Burkina Faso..................................4.6 Lesotho .........................................4.5 Cambodia ......................................4.5 Panama .........................................4.5 Lebanon ........................................4.5 Thailand .........................................4.5 Turkey............................................4.4 Paraguay .......................................4.4 Guyana ..........................................4.3 Korea, Rep. ...................................4.3 Algeria ...........................................4.3 Albania...........................................4.3 Senegal .........................................4.3 Bangladesh....................................4.3 Timor-Leste ...................................4.3 South Africa ...................................4.3 Cape Verde ...................................4.3 Russian Federation ........................4.2 Indonesia .......................................4.2 Tunisia ...........................................4.2 Côte d’Ivoire ..................................4.2 Romania ........................................4.1 Serbia ............................................4.1 Guinea ...........................................4.1 Uganda ..........................................4.1 Argentina .......................................4.1 Madagascar ...................................4.1 Sierra Leone ..................................4.0 Trinidad and Tobago......................4.0 Kyrgyz Republic .............................4.0 India...............................................4.0 Dominican Republic .......................4.0 Libya ..............................................4.0 Bulgaria .........................................4.0 Ghana ............................................3.9 Brazil..............................................3.9 Haiti ...............................................3.9 Iran, Islamic Rep. ...........................3.8 Burundi ..........................................3.8 Bolivia ............................................3.7 Nigeria ...........................................3.7 Kenya ............................................3.7 Ukraine ..........................................3.6 Egypt .............................................3.5 Angola ...........................................3.5 Nepal .............................................3.5 Mozambique ..................................3.5 Chad..............................................3.5 Italy ................................................3.3 Yemen ...........................................3.3 Mali ................................................3.2 Peru ...............................................3.1 Myanmar........................................3.1 Pakistan .........................................3.0 Jamaica .........................................2.9 Colombia .......................................2.8 Mexico ...........................................2.7 Venezuela ......................................2.7 Honduras .......................................2.7 El Salvador.....................................2.7 Guatemala .....................................2.5 © 2014 World Economic Forum 1 MEAN 4.8 7 2.2: Data Tables 1.16 Reliability of police services In your country, to what extent can police services be relied upon to enforce law and order? [1 = cannot be relied upon at all; 7 = can be completely relied upon] 2013– 14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Finland ...........................................6.7 New Zealand .................................6.5 Qatar .............................................6.3 Chile ..............................................6.3 Switzerland ....................................6.2 Hong Kong SAR ............................6.2 United Arab Emirates .....................6.2 Singapore ......................................6.2 Luxembourg ..................................6.1 Iceland ...........................................6.1 Canada ..........................................6.1 Ireland............................................6.1 Norway ..........................................6.1 Australia .........................................6.1 Denmark ........................................6.0 Netherlands ...................................6.0 Japan ............................................6.0 Austria ...........................................5.9 Germany ........................................5.9 Spain .............................................5.8 Rwanda .........................................5.8 United States .................................5.7 Belgium .........................................5.7 Sweden .........................................5.7 Barbados .......................................5.6 United Kingdom .............................5.6 Oman ............................................5.6 Georgia ..........................................5.4 Portugal .........................................5.3 France ...........................................5.3 Jordan ...........................................5.3 Estonia...........................................5.3 Malta .............................................5.3 Saudi Arabia ..................................5.2 Malaysia.........................................5.1 Bahrain ..........................................5.0 Taiwan, China ................................5.0 Costa Rica .....................................5.0 Bhutan ...........................................4.9 Slovenia .........................................4.9 Morocco ........................................4.9 Italy ................................................4.8 Puerto Rico....................................4.8 Cyprus ...........................................4.7 Lesotho .........................................4.7 Latvia .............................................4.6 Senegal .........................................4.6 Korea, Rep. ...................................4.6 Gambia, The ..................................4.6 Swaziland ......................................4.6 Mauritius ........................................4.5 Panama .........................................4.5 Macedonia, FYR ............................4.5 Suriname .......................................4.4 Croatia ...........................................4.4 Cape Verde ...................................4.4 Kuwait ...........................................4.4 Greece ...........................................4.4 Montenegro ...................................4.3 Lithuania ........................................4.3 China .............................................4.3 Cameroon......................................4.3 Botswana ......................................4.3 Lao PDR ........................................4.2 Romania ........................................4.2 Hungary .........................................4.1 Indonesia .......................................4.1 Seychelles......................................4.1 Israel ..............................................4.1 Tunisia ...........................................4.1 Azerbaijan ......................................4.1 Ghana ............................................4.1 SOURCE: 1 MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.2 7 Uruguay .........................................4.1 Algeria ...........................................4.1 Czech Republic .............................4.1 Poland ...........................................4.1 Burkina Faso..................................4.0 Colombia .......................................4.0 Zambia ..........................................4.0 Iran, Islamic Rep. ...........................4.0 Armenia .........................................4.0 Malawi ...........................................4.0 Brazil..............................................3.9 Namibia .........................................3.9 Kenya ............................................3.9 Tajikistan ........................................3.9 Nepal .............................................3.8 India...............................................3.8 Serbia ............................................3.8 Mali ................................................3.8 Kazakhstan ....................................3.8 Côte d’Ivoire ..................................3.8 Ethiopia..........................................3.8 Mongolia ........................................3.7 Uganda ..........................................3.7 Albania...........................................3.7 El Salvador.....................................3.7 Nicaragua ......................................3.7 Vietnam .........................................3.7 Sri Lanka .......................................3.7 Philippines .....................................3.6 South Africa ...................................3.6 Turkey............................................3.6 Timor-Leste ...................................3.6 Jamaica .........................................3.6 Slovak Republic .............................3.6 Gabon ...........................................3.5 Tanzania ........................................3.5 Bolivia ............................................3.5 Sierra Leone ..................................3.4 Egypt .............................................3.3 Bulgaria .........................................3.3 Thailand .........................................3.2 Russian Federation ........................3.2 Honduras .......................................3.2 Moldova .........................................3.1 Trinidad and Tobago......................3.1 Kyrgyz Republic .............................3.1 Guinea ...........................................3.0 Haiti ...............................................3.0 Mauritania ......................................3.0 Zimbabwe ......................................3.0 Cambodia ......................................2.9 Guatemala .....................................2.9 Mozambique ..................................2.9 Myanmar........................................2.9 Pakistan .........................................2.8 Mexico ...........................................2.8 Angola ...........................................2.8 Madagascar ...................................2.8 Guyana ..........................................2.8 Lebanon ........................................2.8 Argentina .......................................2.7 Chad..............................................2.6 Ukraine ..........................................2.6 Nigeria ...........................................2.6 Peru ...............................................2.6 Bangladesh....................................2.6 Dominican Republic .......................2.6 Yemen ...........................................2.3 Paraguay .......................................2.3 Burundi ..........................................2.2 Libya ..............................................2.0 Venezuela ......................................1.7 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 421 2.2: Data Tables 1.17 Ethical behavior of firms In your country, how would you rate the corporate ethics of companies (ethical behavior in interactions with public officials, politicians, and other firms)? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 New Zealand .................................6.5 Finland ...........................................6.4 Singapore ......................................6.2 Denmark ........................................6.2 Switzerland ....................................6.2 Norway ..........................................6.2 Japan ............................................6.0 Luxembourg ..................................6.0 Qatar .............................................5.9 Netherlands ...................................5.9 United Arab Emirates .....................5.8 Sweden .........................................5.8 Canada ..........................................5.6 United Kingdom .............................5.6 Australia .........................................5.6 Germany ........................................5.6 Ireland............................................5.6 Hong Kong SAR ............................5.5 Belgium .........................................5.5 Austria ...........................................5.5 Iceland ...........................................5.5 Rwanda .........................................5.3 Malaysia.........................................5.3 France ...........................................5.1 Oman ............................................5.0 Chile ..............................................5.0 Bahrain ..........................................5.0 Barbados .......................................5.0 Taiwan, China ................................4.9 Saudi Arabia ..................................4.9 Uruguay .........................................4.9 Estonia...........................................4.9 United States .................................4.8 Puerto Rico....................................4.8 South Africa ...................................4.7 Jordan ...........................................4.6 Mauritius ........................................4.6 Bhutan ...........................................4.5 Botswana ......................................4.5 Gambia, The ..................................4.5 Costa Rica .....................................4.5 Portugal .........................................4.5 Israel ..............................................4.4 Malta .............................................4.3 Macedonia, FYR ............................4.3 Lithuania ........................................4.3 Indonesia .......................................4.3 Kazakhstan ....................................4.3 Philippines .....................................4.3 Gabon ...........................................4.3 Cyprus ...........................................4.2 Morocco ........................................4.2 Namibia .........................................4.2 Georgia ..........................................4.2 China .............................................4.2 Latvia .............................................4.1 Poland ...........................................4.1 Seychelles......................................4.1 Swaziland ......................................4.1 Cape Verde ...................................4.1 Kuwait ...........................................4.0 Senegal .........................................4.0 Lesotho .........................................4.0 Azerbaijan ......................................4.0 Lao PDR ........................................4.0 Zambia ..........................................4.0 Tajikistan ........................................4.0 Turkey............................................4.0 Egypt .............................................3.9 Panama .........................................3.9 Croatia ...........................................3.9 Russian Federation ........................3.9 SOURCE: MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 422 The Global Competitiveness Report 2014–2015 VALUE Kenya ............................................3.9 Jamaica .........................................3.9 Tunisia ...........................................3.9 Montenegro ...................................3.9 Ghana ............................................3.9 Malawi ...........................................3.9 Guatemala .....................................3.9 Bolivia ............................................3.9 Slovenia .........................................3.8 Sri Lanka .......................................3.8 Uganda ..........................................3.8 Spain .............................................3.8 El Salvador.....................................3.8 Honduras .......................................3.8 Mali ................................................3.8 India...............................................3.8 Cambodia ......................................3.8 Armenia .........................................3.8 Mongolia ........................................3.7 Thailand .........................................3.7 Côte d’Ivoire ..................................3.7 Czech Republic .............................3.7 Korea, Rep. ...................................3.7 Hungary .........................................3.7 Cameroon......................................3.7 Ukraine ..........................................3.7 Greece ...........................................3.7 Algeria ...........................................3.7 Bulgaria .........................................3.7 Mexico ...........................................3.7 Kyrgyz Republic .............................3.7 Guyana ..........................................3.6 Italy ................................................3.6 Zimbabwe ......................................3.6 Brazil..............................................3.6 Suriname .......................................3.6 Vietnam .........................................3.6 Colombia .......................................3.6 Pakistan .........................................3.5 Romania ........................................3.5 Sierra Leone ..................................3.5 Timor-Leste ...................................3.5 Peru ...............................................3.5 Tanzania ........................................3.5 Moldova .........................................3.5 Nicaragua ......................................3.5 Serbia ............................................3.4 Madagascar ...................................3.4 Iran, Islamic Rep. ...........................3.4 Burkina Faso..................................3.4 Slovak Republic .............................3.4 Dominican Republic .......................3.4 Trinidad and Tobago......................3.4 Yemen ...........................................3.4 Libya ..............................................3.4 Nepal .............................................3.3 Ethiopia..........................................3.3 Mozambique ..................................3.3 Albania...........................................3.3 Nigeria ...........................................3.3 Myanmar........................................3.2 Chad..............................................3.2 Burundi ..........................................3.1 Haiti ...............................................3.1 Guinea ...........................................3.1 Argentina .......................................3.0 Venezuela ......................................2.9 Bangladesh....................................2.9 Lebanon ........................................2.9 Paraguay .......................................2.9 Mauritania ......................................2.7 Angola ...........................................2.6 © 2014 World Economic Forum 1 MEAN 4.2 7 2.2: Data Tables 1.18 Strength of auditing and reporting standards In your country, how strong are financial auditing and reporting standards? [1 = extremely weak; 7 = extremely strong] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE South Africa ...................................6.7 Finland ...........................................6.4 New Zealand .................................6.4 Norway ..........................................6.3 Singapore ......................................6.2 Canada ..........................................6.2 Hong Kong SAR ............................6.2 Luxembourg ..................................6.2 Puerto Rico....................................6.1 Qatar .............................................6.0 Japan ............................................5.9 Netherlands ...................................5.9 Malta .............................................5.9 Sweden .........................................5.9 Australia .........................................5.9 United Kingdom .............................5.8 Bahrain ..........................................5.8 Switzerland ....................................5.7 Malaysia.........................................5.7 Taiwan, China ................................5.7 Austria ...........................................5.7 Barbados .......................................5.6 Germany ........................................5.6 Estonia...........................................5.5 Mauritius ........................................5.5 United Arab Emirates .....................5.5 France ...........................................5.5 Denmark ........................................5.5 Oman ............................................5.5 Belgium .........................................5.5 Israel ..............................................5.5 United States .................................5.5 Saudi Arabia ..................................5.5 Namibia .........................................5.4 Jamaica .........................................5.3 Slovak Republic .............................5.2 Hungary .........................................5.2 Zimbabwe ......................................5.2 Chile ..............................................5.2 Latvia .............................................5.2 Brazil..............................................5.2 Iceland ...........................................5.2 Botswana ......................................5.2 Panama .........................................5.1 Costa Rica .....................................5.1 Uruguay .........................................5.1 Thailand .........................................5.1 Philippines .....................................5.1 Morocco ........................................5.0 Mexico ...........................................5.0 Peru ...............................................5.0 Cyprus ...........................................5.0 Portugal .........................................4.9 Jordan ...........................................4.9 Sri Lanka .......................................4.9 Czech Republic .............................4.9 Honduras .......................................4.9 Poland ...........................................4.9 Lithuania ........................................4.9 Bulgaria .........................................4.9 Macedonia, FYR ............................4.9 Ireland............................................4.9 Rwanda .........................................4.8 Swaziland ......................................4.8 Guatemala .....................................4.8 Turkey............................................4.8 Zambia ..........................................4.7 Kenya ............................................4.7 Bhutan ...........................................4.7 Malawi ...........................................4.7 Gambia, The ..................................4.7 Indonesia .......................................4.6 SOURCE: 1 MEAN 4.6 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.6 7 Kuwait ...........................................4.6 Gabon ...........................................4.6 Dominican Republic .......................4.5 Senegal .........................................4.5 Colombia .......................................4.5 Tunisia ...........................................4.5 Kazakhstan ....................................4.5 Côte d’Ivoire ..................................4.5 Spain .............................................4.5 China .............................................4.4 Armenia .........................................4.4 Korea, Rep. ...................................4.4 Georgia ..........................................4.4 Burkina Faso..................................4.3 Trinidad and Tobago......................4.3 Nigeria ...........................................4.3 Greece ...........................................4.3 Pakistan .........................................4.3 Slovenia .........................................4.3 Seychelles......................................4.3 Romania ........................................4.3 Croatia ...........................................4.3 Azerbaijan ......................................4.2 Venezuela ......................................4.2 Nicaragua ......................................4.2 Lebanon ........................................4.2 Italy ................................................4.2 Moldova .........................................4.2 Ghana ............................................4.2 India...............................................4.2 Montenegro ...................................4.1 Madagascar ...................................4.1 Paraguay .......................................4.1 Russian Federation ........................4.1 Sierra Leone ..................................4.1 Ethiopia..........................................4.0 Serbia ............................................4.0 Mozambique ..................................3.9 Argentina .......................................3.9 Cape Verde ...................................3.9 Guyana ..........................................3.9 Uganda ..........................................3.9 Cameroon......................................3.9 Tajikistan ........................................3.9 Egypt .............................................3.8 Kyrgyz Republic .............................3.8 Tanzania ........................................3.8 El Salvador.....................................3.8 Nepal .............................................3.8 Lao PDR ........................................3.8 Bolivia ............................................3.8 Ukraine ..........................................3.7 Iran, Islamic Rep. ...........................3.7 Albania...........................................3.7 Cambodia ......................................3.7 Haiti ...............................................3.6 Burundi ..........................................3.6 Mongolia ........................................3.6 Suriname .......................................3.6 Vietnam .........................................3.4 Bangladesh....................................3.4 Algeria ...........................................3.4 Mali ................................................3.3 Chad..............................................3.2 Guinea ...........................................3.1 Timor-Leste ...................................3.0 Lesotho .........................................2.8 Myanmar........................................2.6 Angola ...........................................2.6 Mauritania ......................................2.6 Yemen ...........................................2.3 Libya ..............................................2.2 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 423 2.2: Data Tables 1.19 Efficacy of corporate boards In your country, how would you characterize corporate governance by investors and boards of directors? [1 = management has little accountability to investors and boards; 7 = management is highly accountable to investors and boards] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 New Zealand .................................6.1 Norway ..........................................6.0 South Africa ...................................6.0 Finland ...........................................6.0 Singapore ......................................5.9 Luxembourg ..................................5.8 Netherlands ...................................5.7 Australia .........................................5.7 Canada ..........................................5.6 Malaysia.........................................5.6 Sweden .........................................5.6 Qatar .............................................5.5 Belgium .........................................5.5 Puerto Rico....................................5.5 United Arab Emirates .....................5.5 United States .................................5.4 United Kingdom .............................5.4 Japan ............................................5.4 Switzerland ....................................5.4 Hong Kong SAR ............................5.4 Germany ........................................5.3 France ...........................................5.2 Ireland............................................5.2 Denmark ........................................5.2 Estonia...........................................5.2 Guatemala .....................................5.2 Austria ...........................................5.2 Chile ..............................................5.2 Philippines .....................................5.1 Lao PDR ........................................5.1 Peru ...............................................5.1 Iceland ...........................................5.1 Sri Lanka .......................................5.1 Lithuania ........................................5.0 Rwanda .........................................5.0 Taiwan, China ................................5.0 Oman ............................................5.0 Latvia .............................................5.0 Mauritius ........................................5.0 Colombia .......................................5.0 Costa Rica .....................................5.0 Barbados .......................................4.9 Honduras .......................................4.9 Gabon ...........................................4.9 Bahrain ..........................................4.9 Gambia, The ..................................4.9 Zambia ..........................................4.9 Seychelles......................................4.9 Saudi Arabia ..................................4.9 Jamaica .........................................4.8 Bhutan ...........................................4.8 Morocco ........................................4.8 Indonesia .......................................4.8 Cameroon......................................4.8 Kenya ............................................4.8 Brazil..............................................4.8 Botswana ......................................4.8 Malawi ...........................................4.7 Senegal .........................................4.7 Thailand .........................................4.7 Kazakhstan ....................................4.7 Dominican Republic .......................4.6 Uganda ..........................................4.6 Russian Federation ........................4.6 Burkina Faso..................................4.6 Malta .............................................4.6 Namibia .........................................4.6 Czech Republic .............................4.6 Sierra Leone ..................................4.5 Uruguay .........................................4.5 Panama .........................................4.5 Côte d’Ivoire ..................................4.5 SOURCE: MEAN 4.6 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 424 The Global Competitiveness Report 2014–2015 VALUE El Salvador.....................................4.5 Spain .............................................4.5 Swaziland ......................................4.5 Portugal .........................................4.5 Macedonia, FYR ............................4.5 China .............................................4.5 Turkey............................................4.4 Nigeria ...........................................4.4 Mexico ...........................................4.4 Azerbaijan ......................................4.4 Slovak Republic .............................4.4 Albania...........................................4.4 Madagascar ...................................4.4 Ukraine ..........................................4.4 Poland ...........................................4.3 Zimbabwe ......................................4.3 Israel ..............................................4.3 Cyprus ...........................................4.3 Burundi ..........................................4.3 Jordan ...........................................4.3 Guyana ..........................................4.3 India...............................................4.3 Moldova .........................................4.2 Croatia ...........................................4.2 Cambodia ......................................4.2 Venezuela ......................................4.2 Mozambique ..................................4.2 Ghana ............................................4.2 Georgia ..........................................4.2 Guinea ...........................................4.2 Kyrgyz Republic .............................4.2 Armenia .........................................4.2 Argentina .......................................4.1 Bulgaria .........................................4.1 Cape Verde ...................................4.1 Tunisia ...........................................4.1 Montenegro ...................................4.1 Trinidad and Tobago......................4.1 Nicaragua ......................................4.1 Romania ........................................4.1 Bolivia ............................................4.1 Myanmar........................................4.1 Nepal .............................................4.0 Tanzania ........................................4.0 Ethiopia..........................................4.0 Paraguay .......................................4.0 Pakistan .........................................4.0 Hungary .........................................3.9 Italy ................................................3.9 Iran, Islamic Rep. ...........................3.9 Tajikistan ........................................3.9 Greece ...........................................3.9 Serbia ............................................3.8 Korea, Rep. ...................................3.8 Kuwait ...........................................3.8 Vietnam .........................................3.8 Mongolia ........................................3.8 Suriname .......................................3.8 Haiti ...............................................3.8 Bangladesh....................................3.8 Lebanon ........................................3.7 Slovenia .........................................3.7 Lesotho .........................................3.6 Egypt .............................................3.6 Algeria ...........................................3.5 Mali ................................................3.5 Chad..............................................3.5 Yemen ...........................................3.4 Timor-Leste ...................................3.3 Mauritania ......................................2.8 Angola ...........................................2.7 Libya ..............................................2.4 © 2014 World Economic Forum 1 MEAN 4.6 7 2.2: Data Tables 1.20 Protection of minority shareholders’ interests In your country, to what extent are the interests of minority shareholders protected by the legal system? [1 = not protected at all; 7 = fully protected] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Finland ...........................................6.2 South Africa ...................................6.1 Puerto Rico....................................6.1 New Zealand .................................6.1 Qatar .............................................6.0 Norway ..........................................5.9 Luxembourg ..................................5.5 Hong Kong SAR ............................5.5 Sweden .........................................5.5 Singapore ......................................5.5 Canada ..........................................5.4 Netherlands ...................................5.4 Malaysia.........................................5.3 Japan ............................................5.3 United Kingdom .............................5.3 United Arab Emirates .....................5.3 Oman ............................................5.2 Mauritius ........................................5.2 Bahrain ..........................................5.1 Taiwan, China ................................5.1 Australia .........................................5.0 Saudi Arabia ..................................5.0 United States .................................5.0 Belgium .........................................4.9 Thailand .........................................4.9 Denmark ........................................4.8 Ireland............................................4.8 Sri Lanka .......................................4.8 Malta .............................................4.8 Namibia .........................................4.8 Austria ...........................................4.8 Switzerland ....................................4.7 Costa Rica .....................................4.7 Rwanda .........................................4.7 Brazil..............................................4.7 Zambia ..........................................4.7 Uruguay .........................................4.7 Germany ........................................4.7 Jordan ...........................................4.7 Indonesia .......................................4.6 Jamaica .........................................4.6 Chile ..............................................4.6 Botswana ......................................4.6 Israel ..............................................4.5 Philippines .....................................4.5 Iceland ...........................................4.4 Portugal .........................................4.4 Gambia, The ..................................4.4 Estonia...........................................4.4 Malawi ...........................................4.4 Barbados .......................................4.4 Seychelles......................................4.4 Macedonia, FYR ............................4.4 Panama .........................................4.4 France ...........................................4.4 Swaziland ......................................4.3 Turkey............................................4.3 Lao PDR ........................................4.3 Morocco ........................................4.3 Kenya ............................................4.3 Cyprus ...........................................4.3 Mexico ...........................................4.3 Greece ...........................................4.3 Peru ...............................................4.3 Côte d’Ivoire ..................................4.3 Bhutan ...........................................4.2 China .............................................4.1 Colombia .......................................4.1 Kazakhstan ....................................4.1 Gabon ...........................................4.1 Czech Republic .............................4.1 Hungary .........................................4.1 SOURCE: 1 MEAN 4.1 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.1 7 Kuwait ...........................................4.1 Zimbabwe ......................................4.1 Dominican Republic .......................4.1 India...............................................4.1 Guatemala .....................................4.0 Ghana ............................................4.0 Pakistan .........................................4.0 Honduras .......................................4.0 Poland ...........................................4.0 Tunisia ...........................................4.0 Bulgaria .........................................3.9 Montenegro ...................................3.9 Ethiopia..........................................3.9 Cameroon......................................3.9 Latvia .............................................3.9 Azerbaijan ......................................3.9 Lithuania ........................................3.9 Nigeria ...........................................3.8 Slovak Republic .............................3.8 Guyana ..........................................3.8 Albania...........................................3.8 Spain .............................................3.7 Senegal .........................................3.7 Bolivia ............................................3.7 Armenia .........................................3.7 Cape Verde ...................................3.7 Romania ........................................3.6 Cambodia ......................................3.6 Kyrgyz Republic .............................3.6 Burkina Faso..................................3.6 Sierra Leone ..................................3.6 Mali ................................................3.6 Croatia ...........................................3.6 Tanzania ........................................3.6 Paraguay .......................................3.5 Nicaragua ......................................3.5 Egypt .............................................3.5 Georgia ..........................................3.5 Mongolia ........................................3.5 Tajikistan ........................................3.5 Algeria ...........................................3.5 Mozambique ..................................3.5 Argentina .......................................3.5 Trinidad and Tobago......................3.5 Moldova .........................................3.5 Russian Federation ........................3.5 Korea, Rep. ...................................3.4 Madagascar ...................................3.4 Lebanon ........................................3.4 Vietnam .........................................3.4 Uganda ..........................................3.4 Slovenia .........................................3.4 El Salvador.....................................3.3 Nepal .............................................3.3 Italy ................................................3.3 Iran, Islamic Rep. ...........................3.2 Suriname .......................................3.2 Lesotho .........................................3.1 Burundi ..........................................3.1 Venezuela ......................................3.0 Bangladesh....................................3.0 Yemen ...........................................3.0 Guinea ...........................................3.0 Haiti ...............................................2.9 Myanmar........................................2.8 Serbia ............................................2.8 Ukraine ..........................................2.8 Chad..............................................2.8 Timor-Leste ...................................2.8 Angola ...........................................2.5 Mauritania ......................................2.4 Libya ..............................................2.4 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 425 2.2: Data Tables 1.21 Strength of investor protection Strength of Investor Protection Index on a 0–10 (best) scale 2013 RANK 1 2 3 4 4 6 6 6 6 10 10 12 12 14 14 16 16 16 16 16 16 22 22 22 22 22 22 22 22 22 22 22 22 34 34 34 34 34 34 34 34 34 34 34 45 45 45 45 45 45 45 45 45 45 45 45 57 57 57 57 57 57 57 57 57 57 57 68 68 68 68 68 COUNTRY/ECONOMY VALUE RANK New Zealand .................................9.7 Singapore ......................................9.3 Hong Kong SAR ............................9.0 Canada ..........................................8.7 Malaysia.........................................8.7 Colombia .......................................8.3 Ireland............................................8.3 Israel ..............................................8.3 United States .................................8.3 South Africa ...................................8.0 United Kingdom .............................8.0 Mauritius ........................................7.7 Thailand .........................................7.7 Albania...........................................7.3 Slovenia .........................................7.3 Belgium .........................................7.0 Georgia ..........................................7.0 Japan ............................................7.0 Macedonia, FYR ............................7.0 Peru ...............................................7.0 Puerto Rico....................................7.0 Armenia .........................................6.7 Azerbaijan ......................................6.7 Bangladesh....................................6.7 Kazakhstan ....................................6.7 Kyrgyz Republic .............................6.7 Mongolia ........................................6.7 Norway ..........................................6.7 Rwanda .........................................6.7 Saudi Arabia ..................................6.7 Sierra Leone ..................................6.7 Tajikistan ........................................6.7 Trinidad and Tobago......................6.7 Burundi ..........................................6.3 Chile ..............................................6.3 Cyprus ...........................................6.3 Denmark ........................................6.3 Ghana ............................................6.3 India...............................................6.3 Montenegro ...................................6.3 Pakistan .........................................6.3 Sweden .........................................6.3 Taiwan, China ................................6.3 Turkey............................................6.3 Botswana ......................................6.0 Bulgaria .........................................6.0 Iceland ...........................................6.0 Indonesia .......................................6.0 Italy ................................................6.0 Korea, Rep. ...................................6.0 Mozambique ..................................6.0 Poland ...........................................6.0 Portugal .........................................6.0 Romania ........................................6.0 Sri Lanka .......................................6.0 Tunisia ...........................................6.0 Australia .........................................5.7 Estonia...........................................5.7 Finland ...........................................5.7 Latvia .............................................5.7 Lithuania ........................................5.7 Madagascar ...................................5.7 Malta .............................................5.7 Mexico ...........................................5.7 Nigeria ...........................................5.7 Paraguay .......................................5.7 Seychelles......................................5.7 Angola ...........................................5.3 Brazil..............................................5.3 Cambodia ......................................5.3 France ...........................................5.3 Greece ...........................................5.3 68 68 68 68 68 68 68 68 68 68 83 83 83 83 83 83 83 83 83 83 83 83 83 83 83 98 98 98 98 98 98 98 105 105 105 105 105 105 105 105 113 113 113 113 117 117 117 117 117 117 123 123 123 123 123 123 123 130 130 130 130 130 130 130 130 138 138 140 140 142 143 143 SOURCE: COUNTRY/ECONOMY World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises 426 The Global Competitiveness Report 2014–2015 VALUE Guyana ..........................................5.3 Jamaica .........................................5.3 Kuwait ...........................................5.3 Malawi ...........................................5.3 Moldova .........................................5.3 Namibia .........................................5.3 Nepal .............................................5.3 Panama .........................................5.3 Serbia ............................................5.3 Zambia ..........................................5.3 Algeria ...........................................5.0 Argentina .......................................5.0 Austria ...........................................5.0 China .............................................5.0 Czech Republic .............................5.0 Dominican Republic .......................5.0 Germany ........................................5.0 Kenya ............................................5.0 Lebanon ........................................5.0 Lesotho .........................................5.0 Oman ............................................5.0 Spain .............................................5.0 Tanzania ........................................5.0 United Arab Emirates .....................5.0 Uruguay .........................................5.0 Bahrain ..........................................4.7 Morocco ........................................4.7 Netherlands ...................................4.7 Russian Federation ........................4.7 Slovak Republic .............................4.7 Timor-Leste ...................................4.7 Uganda ..........................................4.7 Cameroon......................................4.3 Hungary .........................................4.3 Luxembourg ..................................4.3 Philippines .....................................4.3 Qatar .............................................4.3 Swaziland ......................................4.3 Ukraine ..........................................4.3 Zimbabwe ......................................4.3 Bolivia ............................................4.0 Cape Verde ...................................4.0 Nicaragua ......................................4.0 Yemen ...........................................4.0 Bhutan ...........................................3.7 Burkina Faso..................................3.7 Egypt .............................................3.7 Iran, Islamic Rep. ...........................3.7 Mali ................................................3.7 Mauritania ......................................3.7 Chad..............................................3.3 Côte d’Ivoire ..................................3.3 Croatia ...........................................3.3 Ethiopia..........................................3.3 Gabon ...........................................3.3 Guatemala .....................................3.3 Vietnam .........................................3.3 Barbados .......................................3.0 Costa Rica .....................................3.0 El Salvador.....................................3.0 Haiti ...............................................3.0 Honduras .......................................3.0 Jordan ...........................................3.0 Senegal .........................................3.0 Switzerland ....................................3.0 Gambia, The ..................................2.7 Guinea ...........................................2.7 Myanmar........................................2.3 Venezuela ......................................2.3 Suriname .......................................2.0 Lao PDR ........................................1.7 Libya ..............................................1.7 © 2014 World Economic Forum Data Tables Infrastructure 2.2: Data Tables 2.01 Quality of overall infrastructure How would you assess general infrastructure (e.g., transport, telephony, and energy) in your country? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................6.6 Hong Kong SAR ............................6.5 United Arab Emirates .....................6.4 Finland ...........................................6.4 Singapore ......................................6.3 Netherlands ...................................6.3 Austria ...........................................6.2 Iceland ...........................................6.2 Japan ............................................6.2 France ...........................................6.1 Germany ........................................6.0 Portugal .........................................6.0 Spain .............................................5.9 Luxembourg ..................................5.9 Denmark ........................................5.8 United States .................................5.8 Belgium .........................................5.8 Sweden .........................................5.7 Canada ..........................................5.6 Malaysia.........................................5.6 Bahrain ..........................................5.6 Barbados .......................................5.6 Korea, Rep. ...................................5.5 Taiwan, China ................................5.5 Oman ............................................5.4 Qatar .............................................5.4 United Kingdom .............................5.3 Norway ..........................................5.3 Saudi Arabia ..................................5.2 Cyprus ...........................................5.2 Estonia...........................................5.2 New Zealand .................................5.1 Turkey............................................5.1 Slovenia .........................................5.1 Australia .........................................5.1 Ireland............................................5.1 Sri Lanka .......................................5.0 Czech Republic .............................5.0 Panama .........................................5.0 Latvia .............................................5.0 Hungary .........................................5.0 Namibia .........................................5.0 Lithuania ........................................4.9 Croatia ...........................................4.9 Puerto Rico....................................4.9 Malta .............................................4.9 Azerbaijan ......................................4.8 Jordan ...........................................4.8 Mauritius ........................................4.7 Chile ..............................................4.7 Seychelles......................................4.7 Trinidad and Tobago......................4.6 Bhutan ...........................................4.6 Georgia ..........................................4.6 Morocco ........................................4.6 Italy ................................................4.6 Greece ...........................................4.6 El Salvador.....................................4.6 South Africa ...................................4.5 Guatemala .....................................4.5 Armenia .........................................4.4 Kazakhstan ....................................4.4 Israel ..............................................4.4 China .............................................4.4 Kenya ............................................4.3 Lao PDR ........................................4.3 Kuwait ...........................................4.3 Rwanda .........................................4.3 Mexico ...........................................4.2 Jamaica .........................................4.2 Gambia, The ..................................4.2 Indonesia .......................................4.2 SOURCE: MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 428 The Global Competitiveness Report 2014–2015 VALUE Slovak Republic .............................4.2 Russian Federation ........................4.1 Ukraine ..........................................4.1 Thailand .........................................4.1 Côte d’Ivoire ..................................4.0 Swaziland ......................................4.0 Poland ...........................................4.0 Uruguay .........................................4.0 Suriname .......................................4.0 Iran, Islamic Rep. ...........................3.9 Tunisia ...........................................3.9 Macedonia, FYR ............................3.9 Guyana ..........................................3.8 Moldova .........................................3.8 Albania...........................................3.8 Romania ........................................3.8 Botswana ......................................3.8 India...............................................3.7 Montenegro ...................................3.7 Zambia ..........................................3.7 Dominican Republic .......................3.7 Cape Verde ...................................3.7 Philippines .....................................3.7 Kyrgyz Republic .............................3.6 Senegal .........................................3.6 Lesotho .........................................3.6 Bolivia ............................................3.6 Bulgaria .........................................3.6 Mali ................................................3.6 Algeria ...........................................3.6 Costa Rica .....................................3.6 Uganda ..........................................3.5 Peru ...............................................3.5 Honduras .......................................3.5 Tajikistan ........................................3.4 Colombia .......................................3.4 Cambodia ......................................3.4 Ghana ............................................3.4 Serbia ............................................3.3 Vietnam .........................................3.3 Pakistan .........................................3.3 Nicaragua ......................................3.3 Ethiopia..........................................3.2 Cameroon......................................3.2 Tanzania ........................................3.2 Malawi ...........................................3.1 Mongolia ........................................3.1 Brazil..............................................3.1 Zimbabwe ......................................3.1 Madagascar ...................................3.1 Argentina .......................................3.0 Mozambique ..................................3.0 Egypt .............................................2.9 Nepal .............................................2.9 Sierra Leone ..................................2.9 Gabon ...........................................2.9 Timor-Leste ...................................2.9 Bangladesh....................................2.8 Burundi ..........................................2.8 Paraguay .......................................2.7 Nigeria ...........................................2.7 Mauritania ......................................2.6 Venezuela ......................................2.6 Yemen ...........................................2.5 Burkina Faso..................................2.4 Myanmar........................................2.3 Chad..............................................2.3 Lebanon ........................................2.3 Angola ...........................................2.2 Haiti ...............................................2.2 Guinea ...........................................2.1 Libya ..............................................1.9 © 2014 World Economic Forum 1 MEAN 4.2 7 2.2: Data Tables 2.02 Quality of roads In your country, how would you assess the quality of roads? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE United Arab Emirates .....................6.6 Portugal .........................................6.3 Austria ...........................................6.3 France ...........................................6.2 Netherlands ...................................6.1 Singapore ......................................6.1 Hong Kong SAR ............................6.0 Oman ............................................6.0 Switzerland ....................................6.0 Japan ............................................5.9 Spain .............................................5.9 Taiwan, China ................................5.9 Germany ........................................5.9 Finland ...........................................5.9 Luxembourg ..................................5.7 United States .................................5.7 Croatia ...........................................5.6 Korea, Rep. ...................................5.6 Malaysia.........................................5.6 Sweden .........................................5.5 Denmark ........................................5.4 Bahrain ..........................................5.4 Canada ..........................................5.3 Cyprus ...........................................5.3 Ireland............................................5.3 Saudi Arabia ..................................5.3 Belgium .........................................5.3 Namibia .........................................5.2 Puerto Rico....................................5.2 United Kingdom .............................5.2 Chile ..............................................5.1 Sri Lanka .......................................5.1 Barbados .......................................5.1 Qatar .............................................5.0 New Zealand .................................4.9 Lithuania ........................................4.9 South Africa ...................................4.9 Slovenia .........................................4.9 Iceland ...........................................4.9 Turkey............................................4.9 Swaziland ......................................4.9 Mauritius ........................................4.8 Australia .........................................4.8 Panama .........................................4.7 Israel ..............................................4.7 Rwanda .........................................4.7 El Salvador.....................................4.6 Kuwait ...........................................4.6 China .............................................4.6 Thailand .........................................4.5 Morocco ........................................4.5 Mexico ...........................................4.4 Dominican Republic .......................4.4 Estonia...........................................4.4 Greece ...........................................4.3 Bhutan ...........................................4.3 Italy ................................................4.3 Hungary .........................................4.2 Kenya ............................................4.2 Seychelles......................................4.2 Jordan ...........................................4.1 Gambia, The ..................................4.1 Iran, Islamic Rep. ...........................4.1 Cape Verde ...................................4.0 Georgia ..........................................4.0 Trinidad and Tobago......................4.0 Botswana ......................................4.0 Lao PDR ........................................4.0 Azerbaijan ......................................4.0 Suriname .......................................4.0 Albania...........................................3.9 Indonesia .......................................3.9 SOURCE: 1 MEAN 4.0 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.0 7 Côte d’Ivoire ..................................3.9 Norway ..........................................3.9 Pakistan .........................................3.8 India...............................................3.8 Ethiopia..........................................3.8 Guatemala .....................................3.7 Ghana ............................................3.7 Armenia .........................................3.7 Czech Republic .............................3.7 Slovak Republic .............................3.7 Tunisia ...........................................3.7 Jamaica .........................................3.7 Malta .............................................3.7 Zambia ..........................................3.6 Philippines .....................................3.6 Nicaragua ......................................3.6 Poland ...........................................3.5 Uruguay .........................................3.5 Macedonia, FYR ............................3.4 Senegal .........................................3.4 Cambodia ......................................3.4 Mali ................................................3.4 Bolivia ............................................3.3 Honduras .......................................3.3 Lesotho .........................................3.3 Montenegro ...................................3.3 Malawi ...........................................3.3 Zimbabwe ......................................3.3 Burundi ..........................................3.2 Peru ...............................................3.2 Guyana ..........................................3.2 Vietnam .........................................3.2 Uganda ..........................................3.2 Bulgaria .........................................3.1 Algeria ...........................................3.1 Latvia .............................................3.1 Tajikistan ........................................3.0 Argentina .......................................3.0 Sierra Leone ..................................3.0 Tanzania ........................................3.0 Kazakhstan ....................................3.0 Serbia ............................................2.9 Nepal .............................................2.9 Cameroon......................................2.9 Bangladesh....................................2.9 Egypt .............................................2.9 Costa Rica .....................................2.8 Lebanon ........................................2.8 Romania ........................................2.8 Brazil..............................................2.8 Kyrgyz Republic .............................2.7 Russian Federation ........................2.7 Nigeria ...........................................2.7 Colombia .......................................2.7 Venezuela ......................................2.6 Chad..............................................2.6 Madagascar ...................................2.6 Mongolia ........................................2.6 Yemen ...........................................2.5 Burkina Faso..................................2.5 Paraguay .......................................2.5 Myanmar........................................2.4 Gabon ...........................................2.4 Haiti ...............................................2.4 Mauritania ......................................2.3 Angola ...........................................2.3 Ukraine ..........................................2.2 Moldova .........................................2.1 Mozambique ..................................2.1 Libya ..............................................2.1 Guinea ...........................................1.9 Timor-Leste ...................................1.9 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 429 2.2: Data Tables 2.03 Quality of railroad infrastructure In your country, how would you assess the quality of the railroad system? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient— among the best in the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Japan ............................................6.7 Switzerland ....................................6.6 Hong Kong SAR ............................6.3 Spain .............................................6.0 Finland ...........................................5.9 France ...........................................5.9 Taiwan, China ................................5.7 Germany ........................................5.7 Netherlands ...................................5.6 Korea, Rep. ...................................5.6 Austria ...........................................5.3 Malaysia.........................................5.0 Luxembourg ..................................5.0 Belgium .........................................4.9 United States .................................4.9 United Kingdom .............................4.9 China .............................................4.8 Canada ..........................................4.8 Sweden .........................................4.5 Denmark ........................................4.5 Czech Republic .............................4.5 Lithuania ........................................4.5 Portugal .........................................4.4 Slovak Republic .............................4.4 Ukraine ..........................................4.3 Russian Federation ........................4.3 India...............................................4.2 Kazakhstan ....................................4.2 Italy ................................................4.1 Latvia .............................................4.1 Ireland............................................4.1 Australia .........................................4.0 Georgia ..........................................3.9 Morocco ........................................3.9 Panama .........................................3.9 Norway ..........................................3.9 Azerbaijan ......................................3.8 Hungary .........................................3.8 New Zealand .................................3.7 Estonia...........................................3.7 Indonesia .......................................3.7 Sri Lanka .......................................3.7 Swaziland ......................................3.5 South Africa ...................................3.4 Iran, Islamic Rep. ...........................3.4 Slovenia .........................................3.4 Namibia .........................................3.3 Tunisia ...........................................3.3 Turkey............................................3.1 Saudi Arabia ..................................3.1 Bulgaria .........................................3.0 Vietnam .........................................3.0 Tajikistan ........................................3.0 Israel ..............................................3.0 Poland ...........................................2.9 Montenegro ...................................2.9 Greece ...........................................2.9 Croatia ...........................................2.9 Romania ........................................2.9 Côte d’Ivoire ..................................2.8 Moldova .........................................2.8 Botswana ......................................2.8 Cameroon......................................2.8 Mexico ...........................................2.8 Algeria ...........................................2.7 Ghana ............................................2.7 Kyrgyz Republic .............................2.6 Armenia .........................................2.6 Mongolia ........................................2.6 Bolivia ............................................2.5 Kenya ............................................2.5 Pakistan .........................................2.5 SOURCE: NOTE: MEAN 3.3 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a COUNTRY/ECONOMY VALUE 1 MEAN 3.3 Chile ..............................................2.5 Thailand .........................................2.4 Bangladesh....................................2.4 Gabon ...........................................2.4 Mauritania ......................................2.4 Egypt .............................................2.4 Senegal .........................................2.3 Philippines .....................................2.3 Jordan ...........................................2.2 Zimbabwe ......................................2.2 Serbia ............................................2.1 Mozambique ..................................2.1 Mali ................................................2.1 Macedonia, FYR ............................2.0 Zambia ..........................................2.0 Tanzania ........................................2.0 Malawi ...........................................1.9 Peru ...............................................1.9 Costa Rica .....................................1.9 Madagascar ...................................1.8 Burkina Faso..................................1.8 Myanmar........................................1.8 Brazil..............................................1.7 Argentina .......................................1.7 Ethiopia..........................................1.6 Cambodia ......................................1.6 Venezuela ......................................1.6 Nigeria ...........................................1.5 Uganda ..........................................1.5 Colombia .......................................1.5 Uruguay .........................................1.3 Albania...........................................1.1 Angola ....................................N/Appl. Bahrain ...................................N/Appl. Barbados ................................N/Appl. Bhutan ....................................N/Appl. Burundi ...................................N/Appl. Cape Verde ............................N/Appl. Chad.......................................N/Appl. Cyprus ....................................N/Appl. Dominican Republic ................N/Appl. El Salvador..............................N/Appl. Gambia, The ...........................N/Appl. Guatemala ..............................N/Appl. Guinea ....................................N/Appl. Guyana ...................................N/Appl. Haiti ........................................N/Appl. Honduras ................................N/Appl. Iceland ....................................N/Appl. Jamaica ..................................N/Appl. Kuwait ....................................N/Appl. Lao PDR .................................N/Appl. Lebanon .................................N/Appl. Lesotho ..................................N/Appl. Libya .......................................N/Appl. Malta ......................................N/Appl. Mauritius .................................N/Appl. Nepal ......................................N/Appl. Nicaragua ...............................N/Appl. Oman .....................................N/Appl. Paraguay ................................N/Appl. Puerto Rico.............................N/Appl. Qatar ......................................N/Appl. Rwanda ..................................N/Appl. Seychelles...............................N/Appl. Sierra Leone ...........................N/Appl. Singapore ...............................N/Appl. Suriname ................................N/Appl. Timor-Leste ............................N/Appl. Trinidad and Tobago...............N/Appl. United Arab Emirates ..............N/Appl. Yemen ....................................N/Appl. World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. N/Appl. is used for economies where there is no regular train service or where the network covers only a negligible portion of the territory. Assessment of the existence of a network was conducted by the World Economic Forum based on various sources. 430 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 7 2.2: Data Tables 2.04 Quality of port infrastructure In your country, how would you assess the quality of seaports? (For landlocked countries: How accessible are seaport facilities?) [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] 2013–14 weighted average RANKCOUNTRY/ECONOMY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 SOURCE: 1 VALUE Netherlands ...................................6.8 Singapore ......................................6.7 United Arab Emirates .....................6.5 Hong Kong SAR ............................6.5 Finland ...........................................6.4 Belgium .........................................6.4 Panama .........................................6.3 Iceland ...........................................5.9 Spain .............................................5.8 Denmark ........................................5.8 New Zealand .................................5.8 United States .................................5.7 Norway ..........................................5.7 Germany ........................................5.7 Bahrain ..........................................5.7 United Kingdom .............................5.6 Estonia...........................................5.6 Sweden .........................................5.6 Malaysia.........................................5.6 Malta .............................................5.5 Canada ..........................................5.5 Puerto Rico....................................5.4 Portugal .........................................5.4 Qatar .............................................5.4 Taiwan, China ................................5.3 Japan ............................................5.3 Korea, Rep. ...................................5.3 Barbados .......................................5.3 Ireland............................................5.3 Namibia .........................................5.2 Latvia .............................................5.2 France ...........................................5.2 Oman ............................................5.2 Côte d’Ivoire ..................................5.1 Chile ..............................................5.0 Mauritius ........................................5.0 Luxembourg1 .................................5.0 Australia .........................................5.0 Slovenia .........................................5.0 Saudi Arabia ..................................5.0 Seychelles......................................5.0 Jamaica .........................................4.9 Morocco ........................................4.9 Switzerland1...................................4.9 Cyprus ...........................................4.9 South Africa ...................................4.9 Lithuania ........................................4.9 Uruguay .........................................4.7 Greece ...........................................4.7 El Salvador.....................................4.7 Croatia ...........................................4.6 Dominican Republic .......................4.6 China .............................................4.6 Thailand .........................................4.5 Italy ................................................4.5 Suriname .......................................4.4 Turkey............................................4.4 Senegal .........................................4.4 Pakistan .........................................4.4 Austria1 ..........................................4.4 Kenya ............................................4.3 Mexico ...........................................4.3 Azerbaijan1 ....................................4.3 Gambia, The ..................................4.2 Trinidad and Tobago......................4.2 Egypt .............................................4.2 Georgia ..........................................4.2 Bulgaria .........................................4.2 Sri Lanka .......................................4.2 Montenegro ...................................4.2 Honduras .......................................4.1 Jordan ...........................................4.1 1 MEAN 4.1 7 RANKCOUNTRY/ECONOMY 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 VALUE 1 MEAN 4.1 7 Lebanon ........................................4.1 Guatemala .....................................4.0 Czech Republic1 ............................4.0 India...............................................4.0 Indonesia .......................................4.0 Poland ...........................................4.0 Swaziland1 .....................................4.0 Iran, Islamic Rep. ...........................4.0 Russian Federation ........................3.9 Kuwait ...........................................3.9 Tunisia ...........................................3.9 Cape Verde ...................................3.9 Hungary1 .......................................3.8 Israel ..............................................3.8 Peru ...............................................3.7 Vietnam .........................................3.7 Albania...........................................3.7 Colombia .......................................3.7 Argentina .......................................3.7 Ghana ............................................3.7 Bangladesh....................................3.7 Mozambique ..................................3.7 Cameroon......................................3.6 Zimbabwe1 ....................................3.6 Cambodia ......................................3.6 Rwanda1........................................3.6 Guyana ..........................................3.5 Slovak Republic1............................3.5 Philippines .....................................3.5 Macedonia, FYR1...........................3.4 Madagascar ...................................3.4 Romania ........................................3.4 Sierra Leone ..................................3.4 Tanzania ........................................3.3 Ukraine ..........................................3.3 Paraguay1 ......................................3.2 Nicaragua ......................................3.2 Nigeria ...........................................3.2 Burkina Faso1 ................................3.1 Mali1 ..............................................3.1 Gabon ...........................................3.1 Botswana1 .....................................3.0 Costa Rica .....................................3.0 Guinea ...........................................2.9 Algeria ...........................................2.8 Uganda1 ........................................2.8 Burundi1 ........................................2.8 Lesotho1 ........................................2.7 Angola ...........................................2.7 Brazil..............................................2.7 Kazakhstan1 ..................................2.7 Zambia1 .........................................2.7 Myanmar........................................2.6 Ethiopia1 ........................................2.6 Serbia1...........................................2.6 Yemen ...........................................2.6 Lao PDR1 ......................................2.6 Venezuela ......................................2.6 Libya ..............................................2.6 Malawi1 ..........................................2.6 Haiti ...............................................2.5 Armenia1 ........................................2.5 Mauritania ......................................2.4 Moldova1 .......................................2.2 Nepal1 ...........................................2.2 Timor-Leste ...................................2.2 Bhutan ...........................................2.1 Tajikistan1 ......................................2.1 Bolivia1 ..........................................2.0 Chad1 ............................................1.8 Mongolia1 ......................................1.7 Kyrgyz Republic1 ...........................1.3 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. Landlocked © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 431 2.2: Data Tables 2.05 Quality of air transport infrastructure In your country, how would you assess the quality of air transport infrastructure? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Singapore ......................................6.8 United Arab Emirates .....................6.7 Hong Kong SAR ............................6.6 Netherlands ...................................6.4 Finland ...........................................6.2 Norway ..........................................6.1 Panama .........................................6.1 Switzerland ....................................6.1 United States .................................6.1 Spain .............................................6.0 South Africa ...................................6.0 Qatar .............................................6.0 Germany ........................................5.9 New Zealand .................................5.9 Belgium .........................................5.9 Canada ..........................................5.9 France ...........................................5.8 Iceland ...........................................5.8 Malaysia.........................................5.7 Portugal .........................................5.7 Sweden .........................................5.7 Barbados .......................................5.6 Ireland............................................5.6 Denmark ........................................5.6 Puerto Rico....................................5.6 Czech Republic .............................5.5 Japan ............................................5.5 United Kingdom .............................5.5 Australia .........................................5.5 Malta .............................................5.5 Korea, Rep. ...................................5.4 Luxembourg ..................................5.4 Austria ...........................................5.4 Turkey............................................5.4 Latvia .............................................5.4 Taiwan, China ................................5.3 Thailand .........................................5.3 Ethiopia..........................................5.3 Bahrain ..........................................5.2 Greece ...........................................5.2 Saudi Arabia ..................................5.1 Oman ............................................5.1 Cyprus ...........................................5.1 Azerbaijan ......................................5.0 Chile ..............................................5.0 Mauritius ........................................5.0 El Salvador.....................................5.0 Jamaica .........................................4.9 Seychelles......................................4.9 Israel ..............................................4.9 Morocco ........................................4.8 Dominican Republic .......................4.8 Côte d’Ivoire ..................................4.8 Kenya ............................................4.8 Jordan ...........................................4.8 Sri Lanka .......................................4.8 Trinidad and Tobago......................4.8 China .............................................4.7 Macedonia, FYR ............................4.7 Egypt .............................................4.6 Costa Rica .....................................4.6 Namibia .........................................4.6 Mexico ...........................................4.6 Indonesia .......................................4.5 Lebanon ........................................4.5 Gambia, The ..................................4.5 Slovenia .........................................4.4 Albania...........................................4.4 Bulgaria .........................................4.3 Italy ................................................4.3 India...............................................4.3 Armenia .........................................4.3 SOURCE: MEAN 4.4 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 432 The Global Competitiveness Report 2014–2015 VALUE Rwanda .........................................4.3 Montenegro ...................................4.2 Lithuania ........................................4.2 Croatia ...........................................4.2 Tunisia ...........................................4.2 Colombia .......................................4.1 Russian Federation ........................4.1 Ghana ............................................4.1 Hungary .........................................4.1 Lao PDR ........................................4.1 Guatemala .....................................4.1 Georgia ..........................................4.1 Kazakhstan ....................................4.0 Poland ...........................................4.0 Vietnam .........................................4.0 Swaziland ......................................4.0 Peru ...............................................4.0 Uruguay .........................................4.0 Tajikistan ........................................4.0 Pakistan .........................................3.9 Honduras .......................................3.9 Senegal .........................................3.8 Cape Verde ...................................3.8 Mali ................................................3.8 Guyana ..........................................3.8 Estonia...........................................3.8 Ukraine ..........................................3.8 Kuwait ...........................................3.8 Botswana ......................................3.7 Moldova .........................................3.7 Nicaragua ......................................3.7 Suriname .......................................3.6 Romania ........................................3.6 Cambodia ......................................3.6 Argentina .......................................3.6 Philippines .....................................3.6 Gabon ...........................................3.6 Bhutan ...........................................3.5 Zambia ..........................................3.5 Serbia ............................................3.5 Brazil..............................................3.4 Madagascar ...................................3.4 Slovak Republic .............................3.4 Zimbabwe ......................................3.3 Angola ...........................................3.3 Cameroon......................................3.3 Mozambique ..................................3.3 Bolivia ............................................3.2 Nigeria ...........................................3.2 Iran, Islamic Rep. ...........................3.2 Kyrgyz Republic .............................3.2 Uganda ..........................................3.2 Mongolia ........................................3.1 Burkina Faso..................................3.0 Bangladesh....................................3.0 Algeria ...........................................3.0 Nepal .............................................2.9 Haiti ...............................................2.8 Tanzania ........................................2.8 Malawi ...........................................2.8 Venezuela ......................................2.7 Sierra Leone ..................................2.7 Burundi ..........................................2.6 Paraguay .......................................2.6 Myanmar........................................2.5 Guinea ...........................................2.5 Libya ..............................................2.4 Mauritania ......................................2.4 Yemen ...........................................2.3 Chad..............................................2.3 Timor-Leste ...................................2.2 Lesotho .........................................2.1 © 2014 World Economic Forum 1 MEAN 4.4 7 2.2: Data Tables 2.06 Available airline seat kilometers Airline seat kilometers (in millions) available on all flights (domestic and international service) originating in country per week (year average) Monthly average for 2014 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK United States ........................34,115.8 China ....................................14,163.0 United Kingdom ......................6,725.3 Japan .....................................5,620.9 Germany .................................4,924.9 United Arab Emirates ..............4,799.4 Australia ..................................4,467.2 France ....................................3,857.1 Brazil.......................................3,827.3 Spain ......................................3,755.5 Russian Federation .................3,685.0 India........................................3,488.0 Canada ...................................3,389.7 Indonesia ................................2,622.9 Thailand ..................................2,575.3 Hong Kong SAR .....................2,533.4 Turkey.....................................2,503.6 Italy .........................................2,358.7 Singapore ...............................2,316.8 Korea, Rep. ............................2,293.1 Mexico ....................................1,963.4 Malaysia..................................1,959.0 Netherlands ............................1,806.0 Saudi Arabia ...........................1,433.8 Philippines ..............................1,171.2 Qatar ......................................1,170.5 Taiwan, China .........................1,146.9 South Africa ............................1,117.0 Switzerland ................................968.7 Vietnam .....................................816.4 Portugal .....................................802.9 Argentina ...................................802.4 New Zealand .............................694.7 Egypt .........................................654.0 Belgium .....................................636.5 Norway ......................................622.4 Greece .......................................605.7 Sweden .....................................582.7 Colombia ...................................563.8 Chile ..........................................560.1 Israel ..........................................538.4 Denmark ....................................504.1 Peru ...........................................498.1 Ireland........................................489.4 Austria .......................................455.3 Morocco ....................................451.3 Finland .......................................426.2 Pakistan .....................................415.7 Dominican Republic ...................388.8 Panama .....................................384.2 Poland .......................................344.3 Nigeria .......................................302.6 Kenya ........................................301.4 Ethiopia......................................288.7 Sri Lanka ...................................282.7 Iran, Islamic Rep. .......................277.1 Kazakhstan ................................252.3 Kuwait .......................................243.2 Bangladesh................................236.1 Venezuela ..................................232.2 Ukraine ......................................229.7 Puerto Rico................................207.1 Oman ........................................207.0 Cyprus .......................................198.1 Czech Republic .........................193.3 Jordan .......................................191.5 Tunisia .......................................190.7 Romania ....................................190.4 Algeria .......................................177.3 Mauritius ....................................158.1 Bahrain ......................................155.9 Lebanon ....................................152.1 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 SOURCE: COUNTRY/ECONOMY VALUE Jamaica .....................................145.0 Angola .......................................130.5 Hungary .....................................127.8 Costa Rica .................................124.4 Ghana ........................................124.2 Iceland .......................................123.8 Libya ..........................................111.2 Nepal .........................................109.1 El Salvador.................................104.6 Senegal .....................................103.4 Cambodia ....................................94.0 Bulgaria .......................................92.3 Azerbaijan ....................................91.8 Myanmar......................................91.6 Tanzania ......................................81.9 Malta ...........................................79.2 Croatia .........................................78.9 Kyrgyz Republic ...........................77.0 Bolivia ..........................................75.6 Barbados .....................................74.2 Serbia ..........................................74.0 Latvia ...........................................69.3 Tajikistan ......................................68.4 Trinidad and Tobago....................63.8 Lithuania ......................................55.1 Uruguay .......................................52.2 Cameroon....................................51.4 Armenia .......................................49.8 Uganda ........................................49.6 Côte d’Ivoire ................................48.5 Guatemala ...................................44.3 Yemen .........................................42.5 Georgia ........................................40.7 Cape Verde .................................40.4 Madagascar .................................40.0 Zambia ........................................37.6 Mozambique ................................35.8 Gabon .........................................29.4 Namibia .......................................29.3 Luxembourg ................................28.5 Mali ..............................................28.3 Mongolia ......................................28.1 Paraguay .....................................27.0 Seychelles....................................26.8 Haiti .............................................25.9 Honduras .....................................25.3 Suriname .....................................23.0 Estonia.........................................23.0 Montenegro .................................22.4 Moldova .......................................21.3 Lao PDR ......................................20.7 Zimbabwe ....................................19.0 Albania.........................................18.8 Nicaragua ....................................17.5 Macedonia, FYR ..........................16.4 Burkina Faso................................15.8 Slovak Republic ...........................15.8 Rwanda .......................................15.7 Slovenia .......................................14.1 Guyana ........................................13.2 Mauritania ....................................11.4 Sierra Leone ................................10.7 Chad............................................10.1 Malawi ...........................................9.3 Guinea ...........................................8.6 Gambia, The ..................................7.7 Botswana ......................................6.1 Timor-Leste ...................................2.6 Bhutan ...........................................2.2 Burundi ..........................................1.8 Lesotho .........................................0.3 Swaziland ......................................0.3 International Air Transport Association, SRS Analyser © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 433 2.2: Data Tables 2.07 Quality of electricity supply In your country, how would you assess the reliability of the electricity supply (lack of interruptions and lack of voltage fluctuations)? [1 = not reliable at all; 7 = extremely reliable] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................6.8 Hong Kong SAR ............................6.8 Finland ...........................................6.8 Norway ..........................................6.7 Denmark ........................................6.7 Singapore ......................................6.7 Austria ...........................................6.6 Iceland ...........................................6.6 Netherlands ...................................6.6 Luxembourg ..................................6.6 United Arab Emirates .....................6.6 United Kingdom .............................6.6 Canada ..........................................6.5 France ...........................................6.5 Qatar .............................................6.5 Belgium .........................................6.4 Ireland............................................6.4 Portugal .........................................6.4 Czech Republic .............................6.4 Oman ............................................6.3 Spain .............................................6.3 Sweden .........................................6.3 Barbados .......................................6.3 United States .................................6.3 Japan ............................................6.3 Saudi Arabia ..................................6.2 Australia .........................................6.2 Taiwan, China ................................6.2 New Zealand .................................6.2 Slovenia .........................................6.2 Bahrain ..........................................6.2 Slovak Republic .............................6.2 Germany ........................................6.1 Israel ..............................................5.9 Italy ................................................5.9 Hungary .........................................5.9 Bhutan ...........................................5.9 Uruguay .........................................5.7 Malaysia.........................................5.7 Croatia ...........................................5.7 Lithuania ........................................5.6 Costa Rica .....................................5.6 Cyprus ...........................................5.5 Korea, Rep. ...................................5.5 Mauritius ........................................5.5 Poland ...........................................5.5 Latvia .............................................5.5 Morocco ........................................5.4 Jordan ...........................................5.4 Guatemala .....................................5.4 Trinidad and Tobago......................5.4 Namibia .........................................5.4 Estonia...........................................5.4 Chile ..............................................5.4 Greece ...........................................5.3 China .............................................5.2 Georgia ..........................................5.2 Thailand .........................................5.1 Puerto Rico....................................5.1 Colombia .......................................5.1 Iran, Islamic Rep. ...........................5.1 Armenia .........................................5.1 Kuwait ...........................................5.0 Lao PDR ........................................5.0 Tunisia ...........................................5.0 Macedonia, FYR ............................4.9 El Salvador.....................................4.9 Panama .........................................4.9 Ukraine ..........................................4.9 Azerbaijan ......................................4.9 Peru ...............................................4.9 Turkey............................................4.8 SOURCE: MEAN 4.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 434 The Global Competitiveness Report 2014–2015 VALUE Russian Federation ........................4.8 Sri Lanka .......................................4.8 Seychelles......................................4.8 Serbia ............................................4.7 Malta .............................................4.7 Kazakhstan ....................................4.7 Albania...........................................4.7 Mexico ...........................................4.6 Romania ........................................4.6 Moldova .........................................4.4 Jamaica .........................................4.4 Indonesia .......................................4.3 Montenegro ...................................4.3 Bulgaria .........................................4.2 Philippines .....................................4.2 Vietnam .........................................4.2 Brazil..............................................4.1 Swaziland ......................................4.1 Algeria ...........................................4.0 Rwanda .........................................4.0 Nicaragua ......................................3.9 Bolivia ............................................3.9 Kenya ............................................3.9 Côte d’Ivoire ..................................3.9 Lesotho .........................................3.7 Honduras .......................................3.6 South Africa ...................................3.6 Mongolia ........................................3.6 Mali ................................................3.5 Suriname .......................................3.4 India...............................................3.4 Zambia ..........................................3.3 Mauritania ......................................3.3 Gambia, The ..................................3.3 Paraguay .......................................3.2 Mozambique ..................................3.1 Timor-Leste ...................................3.0 Cambodia ......................................3.0 Senegal .........................................3.0 Ghana ............................................3.0 Malawi ...........................................2.9 Uganda ..........................................2.9 Kyrgyz Republic .............................2.9 Libya ..............................................2.8 Myanmar........................................2.8 Ethiopia..........................................2.8 Guyana ..........................................2.7 Cape Verde ...................................2.7 Egypt .............................................2.7 Tajikistan ........................................2.6 Argentina .......................................2.6 Bangladesh....................................2.5 Tanzania ........................................2.5 Cameroon......................................2.4 Botswana ......................................2.4 Dominican Republic .......................2.4 Gabon ...........................................2.3 Madagascar ...................................2.3 Zimbabwe ......................................2.1 Burundi ..........................................2.1 Pakistan .........................................2.1 Sierra Leone ..................................2.0 Haiti ...............................................1.9 Nepal .............................................1.8 Venezuela ......................................1.7 Angola ...........................................1.7 Burkina Faso..................................1.7 Chad..............................................1.7 Nigeria ...........................................1.6 Yemen ...........................................1.5 Lebanon ........................................1.4 Guinea ...........................................1.3 © 2014 World Economic Forum 1 MEAN 4.5 7 2.2: Data Tables 2.08 Mobile telephone subscriptions Number of mobile telephone subscriptions per 100 population 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Hong Kong SAR ........................238.7 Gabon .......................................214.8 Kuwait .......................................190.3 Kazakhstan ................................180.5 Saudi Arabia ..............................176.5 United Arab Emirates .................171.9 Finland .......................................171.7 Bahrain ......................................165.9 Libya ..........................................165.0 Panama .....................................163.0 Botswana ..................................160.6 Montenegro ...............................159.9 Estonia.......................................159.7 Argentina ...................................159.0 Italy ............................................158.9 Austria .......................................156.2 Singapore ..................................155.6 Oman ........................................154.6 Uruguay .....................................154.6 Russian Federation ....................152.8 Qatar .........................................152.6 Lithuania ....................................151.3 Poland .......................................150.0 Luxembourg ..............................148.6 South Africa ...............................147.5 Seychelles..................................147.3 Costa Rica .................................146.0 Bulgaria .....................................145.2 Trinidad and Tobago..................144.9 Malaysia.....................................144.7 Jordan .......................................141.8 Guatemala .................................140.4 Ukraine ......................................138.1 Thailand .....................................138.0 Latvia .........................................136.6 El Salvador.................................136.2 Brazil..........................................135.3 Chile ..........................................134.3 Cambodia ..................................133.9 Switzerland ................................133.8 Czech Republic .........................131.3 Vietnam .....................................130.9 Malta .........................................129.8 Mali ............................................129.1 Morocco ....................................128.5 Taiwan, China ............................127.5 Denmark ....................................127.5 Suriname ...................................127.3 Sweden .....................................124.4 Mongolia ....................................124.2 United Kingdom .........................123.8 Mauritius ....................................123.2 Israel ..........................................122.8 Indonesia ...................................121.5 Egypt .........................................121.5 Kyrgyz Republic .........................121.4 Serbia ........................................119.4 Germany ....................................119.0 Greece .......................................116.8 Norway ......................................116.5 Hungary .....................................116.4 Albania.......................................116.2 Tunisia .......................................115.6 Japan ........................................115.2 Georgia ......................................115.0 Croatia .......................................114.5 Slovak Republic .........................113.9 Netherlands ...............................113.7 Portugal .....................................113.0 Armenia .....................................112.4 Nicaragua ..................................112.0 Korea, Rep. ...............................111.0 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 SOURCE: COUNTRY/ECONOMY VALUE Belgium .....................................110.9 Namibia .....................................110.2 Slovenia .....................................110.2 Ghana ........................................108.2 Iceland .......................................108.1 Barbados ...................................108.1 Azerbaijan ..................................107.6 Spain .........................................106.9 Australia .....................................106.8 Macedonia, FYR ........................106.2 Moldova .....................................106.0 New Zealand .............................105.8 Romania ....................................105.6 Philippines .................................104.5 Colombia ...................................104.1 Paraguay ...................................103.7 Ireland........................................102.8 Mauritania ..................................102.5 Algeria .......................................102.0 Venezuela ..................................101.6 Jamaica .....................................100.4 Cape Verde ...............................100.1 Gambia, The ..............................100.0 France .........................................98.5 Peru .............................................98.1 Bolivia ..........................................97.7 Zimbabwe ....................................96.3 Honduras .....................................95.9 United States ...............................95.5 Sri Lanka .....................................95.5 Côte d’Ivoire ................................95.4 Cyprus .........................................95.2 Turkey..........................................93.0 Senegal .......................................92.9 Tajikistan ......................................91.8 China ...........................................88.7 Dominican Republic .....................88.4 Lesotho .......................................86.3 Mexico .........................................85.8 Iran, Islamic Rep. .........................84.2 Puerto Rico..................................83.6 Lebanon ......................................80.6 Canada ........................................78.4 Nigeria .........................................73.3 Bhutan .........................................72.2 Zambia ........................................71.5 Swaziland ....................................71.5 Nepal ...........................................71.5 India.............................................70.8 Kenya ..........................................70.6 Cameroon....................................70.4 Pakistan .......................................70.1 Guyana ........................................69.4 Haiti .............................................69.4 Yemen .........................................69.0 Bangladesh..................................67.1 Burkina Faso................................66.4 Lao PDR ......................................66.2 Guinea .........................................63.3 Angola .........................................61.9 Timor-Leste .................................57.4 Rwanda .......................................56.8 Tanzania ......................................55.7 Mozambique ................................48.0 Sierra Leone ................................44.1 Uganda ........................................44.1 Madagascar .................................36.1 Chad............................................35.6 Malawi .........................................32.3 Ethiopia........................................27.3 Burundi ........................................25.0 Myanmar......................................12.8 International Telecommunication Union, ITU World Telecommunication/ICT Indicators Database 2014 (June 2014 edition) © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 435 2.2: Data Tables 2.09 Fixed telephone lines Number of active fixed telephone lines per 100 population 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Taiwan, China ..............................71.2 Hong Kong SAR ..........................63.0 Korea, Rep. .................................61.6 France .........................................60.8 Germany ......................................58.9 Switzerland ..................................57.9 Malta ...........................................53.9 United Kingdom ...........................52.9 Barbados .....................................52.3 Iceland .........................................51.0 Luxembourg ................................50.5 Japan ..........................................50.4 Canada ........................................49.7 Greece .........................................47.9 Israel ............................................44.8 Australia .......................................44.3 Ireland..........................................44.0 Portugal .......................................42.7 Netherlands .................................42.5 United States ...............................42.2 Belgium .......................................41.3 New Zealand ...............................41.1 Spain ...........................................40.7 Sweden .......................................40.6 Austria .........................................39.4 Serbia ..........................................39.3 Iran, Islamic Rep. .........................38.3 Slovenia .......................................38.2 Denmark ......................................37.4 Croatia .........................................36.8 Singapore ....................................36.4 Moldova .......................................35.0 Italy ..............................................34.3 Estonia.........................................33.1 Uruguay .......................................30.8 Cyprus .........................................30.6 Hungary .......................................29.9 Mauritius ......................................29.2 Russian Federation ......................28.5 Georgia ........................................27.7 Montenegro .................................27.2 Bulgaria .......................................26.9 Kazakhstan ..................................26.7 Norway ........................................26.2 Ukraine ........................................26.2 Venezuela ....................................25.6 Seychelles....................................23.4 Latvia ...........................................23.4 Argentina .....................................23.3 United Arab Emirates ...................22.3 Brazil............................................22.3 Romania ......................................21.8 Bahrain ........................................21.8 Trinidad and Tobago....................21.7 Lithuania ......................................20.7 Costa Rica ...................................19.9 Guyana ........................................19.6 Armenia .......................................19.4 China ...........................................19.3 Qatar ...........................................19.0 Macedonia, FYR ..........................19.0 Azerbaijan ....................................18.7 Czech Republic ...........................18.7 Chile ............................................18.2 Turkey..........................................18.1 Lebanon ......................................18.0 Puerto Rico..................................17.9 Slovak Republic ...........................17.7 Mexico .........................................16.8 Saudi Arabia ................................16.4 Indonesia .....................................16.1 Suriname .....................................15.8 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 SOURCE: COUNTRY/ECONOMY International Telecommunication Union, ITU World Telecommunication/ICT Indicators Database 2014 (June 2014 edition) 436 The Global Competitiveness Report 2014–2015 VALUE Malaysia.......................................15.3 Panama .......................................15.2 Kuwait .........................................15.1 El Salvador...................................15.0 Colombia .....................................14.8 Poland .........................................13.9 Finland .........................................13.9 Cape Verde .................................13.3 Sri Lanka .....................................12.7 Libya ............................................12.7 Guatemala ...................................12.0 Peru .............................................11.3 Dominican Republic .....................11.3 Vietnam .......................................10.1 Lao PDR ......................................10.0 Oman ............................................9.7 Tunisia ...........................................9.3 South Africa ...................................9.2 Thailand .........................................9.0 Jamaica .........................................8.9 Albania...........................................8.9 Morocco ........................................8.9 Botswana ......................................8.6 Kyrgyz Republic .............................8.3 Egypt .............................................8.3 Bolivia ............................................8.2 Algeria ...........................................8.0 Namibia .........................................8.0 Honduras .......................................7.6 Mongolia ........................................6.2 Paraguay .......................................5.9 Nicaragua ......................................5.3 Jordan ...........................................5.2 Tajikistan ........................................5.2 Yemen ...........................................4.7 Swaziland ......................................3.7 Cameroon......................................3.6 Bhutan ...........................................3.5 Pakistan .........................................3.5 Gambia, The ..................................3.5 Philippines .....................................3.2 Nepal .............................................3.1 Lesotho .........................................2.8 Cambodia ......................................2.8 Senegal .........................................2.4 India...............................................2.3 Zimbabwe ......................................2.1 Mauritania ......................................1.4 Côte d’Ivoire ..................................1.3 Gabon ...........................................1.2 Madagascar ...................................1.1 Ghana ............................................1.0 Myanmar........................................1.0 Angola ...........................................1.0 Burkina Faso..................................0.8 Ethiopia..........................................0.8 Zambia ..........................................0.8 Mali ................................................0.7 Bangladesh....................................0.7 Uganda ..........................................0.6 Kenya ............................................0.5 Haiti ...............................................0.4 Rwanda .........................................0.4 Tanzania ........................................0.3 Mozambique ..................................0.3 Timor-Leste ...................................0.3 Sierra Leone ..................................0.3 Chad..............................................0.2 Burundi ..........................................0.2 Nigeria ...........................................0.2 Malawi ...........................................0.2 Guinea ...........................................0.0 © 2014 World Economic Forum Data Tables Macroeconomic environment 2.2: Data Tables 3.01 Government budget balance General government budget balance as a percentage of GDP 2013 RANKCOUNTRY/ECONOMY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 VALUE Timor-Leste .................................36.1 Kuwait .........................................28.9 Qatar ...........................................11.1 Norway ........................................11.1 United Arab Emirates ...................10.1 Saudi Arabia ..................................8.3 Singapore ......................................6.9 Oman ............................................5.8 Kazakhstan ....................................5.0 Lesotho .........................................3.0 Nepal .............................................2.0 Libya ..............................................1.6 Seychelles......................................1.2 Korea, Rep. ...................................1.0 Azerbaijan ......................................0.8 Hong Kong SAR ............................0.8 Peru ...............................................0.5 Botswana ......................................0.2 Bolivia ............................................0.1 Algeria ...........................................0.1 Jamaica .........................................0.1 Luxembourg ..................................0.0 Germany ........................................0.0 Switzerland ....................................0.0 Philippines ...................................–0.1 Zimbabwe ....................................–0.1 Thailand .......................................–0.2 Estonia.........................................–0.4 Denmark ......................................–0.4 Nicaragua ....................................–0.5 New Zealand ...............................–0.6 Chile ............................................–0.7 Swaziland ....................................–0.7 Tajikistan ......................................–0.8 Iran, Islamic Rep. .........................–0.9 Sweden .......................................–1.0 Colombia .....................................–1.0 Mauritania ....................................–1.1 Russian Federation ......................–1.3 Georgia ........................................–1.3 Latvia ...........................................–1.3 Angola .........................................–1.5 Turkey..........................................–1.5 Madagascar .................................–1.5 Gabon .........................................–1.7 Moldova .......................................–1.8 Paraguay .....................................–1.8 Austria .........................................–1.8 Bulgaria .......................................–1.9 China ...........................................–1.9 Iceland .........................................–1.9 Burundi ........................................–1.9 Guatemala ...................................–2.1 Lithuania ......................................–2.1 Indonesia .....................................–2.1 Sierra Leone ................................–2.2 Uruguay .......................................–2.3 Trinidad and Tobago....................–2.3 Hungary .......................................–2.4 Montenegro .................................–2.4 Chad............................................–2.4 Rwanda .......................................–2.5 Côte d’Ivoire ................................–2.5 Armenia .......................................–2.5 Romania ......................................–2.5 Greece .........................................–2.6 Finland .........................................–2.6 Mali ..............................................–2.7 Belgium .......................................–2.8 Czech Republic ...........................–2.9 Malta ...........................................–2.9 Cambodia ....................................–3.0 RANKCOUNTRY/ECONOMY 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 SOURCES: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 438 The Global Competitiveness Report 2014–2015 VALUE Slovak Republic ...........................–3.0 Canada ........................................–3.0 Panama .......................................–3.0 Burkina Faso................................–3.0 Italy ..............................................–3.0 Netherlands .................................–3.1 Israel ............................................–3.2 Taiwan, China ..............................–3.2 Brazil............................................–3.3 Ethiopia........................................–3.4 Argentina .....................................–3.5 Mauritius ......................................–3.5 Dominican Republic .....................–3.6 Australia .......................................–3.7 Uganda ........................................–3.7 Kyrgyz Republic ...........................–3.8 Mexico .........................................–3.9 Bangladesh..................................–4.0 Macedonia, FYR ..........................–4.0 Bhutan .........................................–4.0 El Salvador...................................–4.0 Guyana ........................................–4.1 Cameroon....................................–4.2 France .........................................–4.2 South Africa .................................–4.3 Bahrain ........................................–4.4 Ukraine ........................................–4.5 Poland .........................................–4.5 Mozambique ................................–4.6 Malaysia.......................................–4.6 Namibia .......................................–4.7 Lao PDR ......................................–4.7 Cyprus .........................................–4.7 Nigeria .........................................–4.9 Portugal .......................................–4.9 Myanmar......................................–4.9 Puerto Rico..................................–5.2 Jordan .........................................–5.3 Guinea .........................................–5.3 Senegal .......................................–5.4 Morocco ......................................–5.4 Croatia .........................................–5.5 Tanzania ......................................–5.6 Costa Rica ...................................–5.6 Serbia ..........................................–5.7 Vietnam .......................................–5.7 United Kingdom ...........................–5.8 Sri Lanka .....................................–5.8 Tunisia .........................................–5.9 Suriname .....................................–6.0 Albania.........................................–6.2 Kenya ..........................................–6.2 Malawi .........................................–6.7 Haiti .............................................–6.7 Yemen .........................................–7.1 Spain ...........................................–7.2 India.............................................–7.3 United States ...............................–7.3 Honduras .....................................–7.4 Ireland..........................................–7.4 Cape Verde .................................–7.7 Pakistan .......................................–7.8 Gambia, The ................................–8.2 Japan ..........................................–8.4 Zambia ........................................–8.6 Lebanon ......................................–9.5 Mongolia ....................................–10.1 Barbados ...................................–10.3 Ghana ........................................–10.8 Egypt .........................................–14.1 Slovenia .....................................–14.2 Venezuela ..................................–15.1 © 2014 World Economic Forum 2.2: Data Tables 3.02 Gross national savings Gross national savings as a percentage of GDP 2013 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Timor-Leste1 ................................63.1 Qatar ...........................................58.4 Kuwait .........................................55.2 Algeria .........................................51.1 China ...........................................50.0 Iran, Islamic Rep. .........................46.0 Saudi Arabia ................................45.5 Singapore ....................................44.6 Azerbaijan ....................................43.4 Gabon .........................................41.3 United Arab Emirates ...................38.9 Botswana ....................................38.7 Oman ..........................................37.7 Norway ........................................37.4 Nepal ...........................................35.1 Cape Verde .................................34.6 Vietnam .......................................33.2 India.............................................32.7 Korea, Rep. .................................32.1 Bhutan .........................................31.7 Lesotho .......................................31.7 Taiwan, China ..............................30.9 Switzerland1.................................30.7 Indonesia .....................................30.4 Malaysia.......................................30.1 Nigeria .........................................29.3 Thailand .......................................28.5 Sri Lanka .....................................28.5 Bahrain ........................................28.4 Luxembourg ................................28.2 Bangladesh..................................28.2 Morocco ......................................27.2 Mongolia ......................................27.1 Hong Kong SAR ..........................26.7 Netherlands .................................26.6 Venezuela ....................................26.4 Kazakhstan ..................................25.6 Zambia ........................................25.5 Bolivia ..........................................25.5 Estonia.........................................25.4 Russian Federation ......................25.3 Australia .......................................24.7 Austria .........................................24.6 Sweden .......................................24.3 Germany ......................................24.3 Trinidad and Tobago....................24.2 Denmark ......................................24.0 Slovenia .......................................23.6 Haiti .............................................23.6 Bulgaria .......................................23.0 Philippines ...................................22.9 Peru .............................................22.7 Macedonia, FYR ..........................22.6 Ethiopia........................................22.2 Israel ............................................22.2 Romania ......................................22.1 Latvia ...........................................22.0 Japan ..........................................21.7 Argentina .....................................21.4 Czech Republic ...........................21.3 Canada ........................................21.1 Colombia .....................................20.9 Hungary .......................................20.7 Slovak Republic ...........................20.6 Chile ............................................20.5 Mexico .........................................20.4 Ghana ..........................................20.2 Namibia .......................................20.1 Tanzania ......................................19.9 Moldova .......................................19.6 Croatia .........................................19.5 Georgia ........................................19.4 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 n/a COUNTRY/ECONOMY VALUE Lithuania ......................................19.3 Madagascar .................................19.2 Spain ...........................................18.9 Myanmar......................................18.7 Seychelles....................................18.7 Libya ............................................18.4 Chad............................................18.3 Angola .........................................18.2 Belgium .......................................18.2 Ireland..........................................18.1 Panama .......................................18.1 Italy ..............................................17.8 France .........................................17.7 Senegal .......................................17.5 United States ...............................17.2 New Zealand ...............................17.1 Nicaragua ....................................17.1 Finland .........................................17.0 Poland .........................................16.9 Paraguay .....................................16.9 Malawi .........................................16.9 Lao PDR2 ....................................16.4 Costa Rica ...................................16.3 Cameroon....................................16.2 Portugal .......................................16.0 Uruguay .......................................16.0 Côte d’Ivoire ................................16.0 Rwanda .......................................15.7 Honduras .....................................15.7 Swaziland ....................................15.5 Armenia .......................................15.5 Burkina Faso................................15.4 Albania.........................................15.2 Tunisia .........................................14.9 Cambodia ....................................14.9 Mali ..............................................14.9 Uganda ........................................14.7 Brazil............................................14.7 Malta ...........................................14.4 Iceland .........................................14.1 Mauritius ......................................14.1 Puerto Rico..................................14.1 Kyrgyz Republic ...........................13.9 Tajikistan ......................................13.7 Turkey..........................................13.7 Greece .........................................13.7 South Africa .................................13.5 Pakistan .......................................13.2 Kenya ..........................................12.2 Egypt ...........................................12.1 Dominican Republic .....................11.6 Guatemala ...................................11.5 Serbia ..........................................11.5 United Kingdom ...........................11.0 Jamaica .......................................10.4 Cyprus .........................................10.0 Mauritania ....................................10.0 Jordan ...........................................9.6 El Salvador.....................................7.4 Mozambique ..................................6.8 Lebanon ........................................6.3 Ukraine ..........................................6.0 Yemen ...........................................5.4 Barbados .......................................2.4 Gambia, The ..................................1.8 Montenegro ...................................1.0 Guyana ..........................................0.7 Sierra Leone ..................................0.7 Guinea .........................................–1.0 Burundi ........................................–3.2 Zimbabwe ....................................–5.7 Suriname .......................................n/a SOURCES: International Monetary Fund, World Economic Outlook Database (April 2014 edition); World Bank, At-a-Glance Table; Organisation for Economic Co-operation and Development (OECD), Economic Outlook 2014; national sources 1 2011 2 2012 © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 439 2.2: Data Tables 3.03 Inflation Annual percent change in consumer price index (year average) 2013 RANKCOUNTRY/ECONOMY 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 57 58 63 64 66 67 70 71 72 73 76 77 80 81 82 83 84 VALUE Ireland............................................0.5 El Salvador.....................................0.8 Denmark ........................................0.8 Taiwan, China ................................0.8 Senegal .........................................0.8 Poland ...........................................0.9 Canada ..........................................1.0 Malta .............................................1.0 France ...........................................1.0 Puerto Rico....................................1.1 United Arab Emirates .....................1.1 New Zealand .................................1.1 Lithuania ........................................1.2 Belgium .........................................1.2 Oman ............................................1.3 Italy ................................................1.3 Korea, Rep. ...................................1.3 Czech Republic .............................1.4 Slovak Republic .............................1.5 United States .................................1.5 Cape Verde ...................................1.5 Israel ..............................................1.5 Spain .............................................1.5 Germany ........................................1.6 Zimbabwe ......................................1.6 Slovenia .........................................1.6 Luxembourg ..................................1.7 Hungary .........................................1.7 Chile ..............................................1.8 Morocco ........................................1.9 Suriname .......................................1.9 Albania...........................................1.9 Burkina Faso..................................2.0 Colombia .......................................2.0 Cameroon......................................2.1 Malaysia.........................................2.1 Austria ...........................................2.1 Norway ..........................................2.1 Thailand .........................................2.2 Montenegro ...................................2.2 Croatia ...........................................2.2 Finland ...........................................2.2 Barbados .......................................2.3 Singapore ......................................2.4 Azerbaijan ......................................2.4 Australia .........................................2.5 United Kingdom .............................2.6 Netherlands ...................................2.6 Côte d’Ivoire ..................................2.6 Libya ..............................................2.6 China .............................................2.6 Paraguay .......................................2.7 Kuwait ...........................................2.7 Macedonia, FYR ............................2.8 Peru ...............................................2.8 Philippines .....................................2.9 Cambodia ......................................3.0 Qatar .............................................3.1 Lebanon ........................................3.2 Algeria ...........................................3.3 Bahrain ..........................................3.3 Guyana ..........................................3.5 Mauritius ........................................3.5 Saudi Arabia ..................................3.5 Estonia...........................................3.5 Mexico ...........................................3.8 Iceland ...........................................3.9 Romania ........................................4.0 Panama .........................................4.0 Mauritania ......................................4.1 Mozambique ..................................4.2 Rwanda .........................................4.2 RANKCOUNTRY/ECONOMY 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 56 59 60 61 62 65 68 69 74 75 78 79 85 VALUE Hong Kong SAR ............................4.3 Seychelles......................................4.3 Guatemala .....................................4.3 Moldova .........................................4.6 Dominican Republic .......................4.8 Tajikistan ........................................5.0 Honduras .......................................5.2 Trinidad and Tobago......................5.2 Costa Rica .....................................5.2 Gambia, The ..................................5.2 Lesotho .........................................5.3 Uganda ..........................................5.4 Jordan ...........................................5.5 Swaziland ......................................5.6 Kenya ............................................5.7 Bolivia ............................................5.7 South Africa ...................................5.8 Botswana ......................................5.8 Armenia .........................................5.8 Myanmar........................................5.8 Madagascar ...................................5.8 Kazakhstan ....................................5.8 Tunisia ...........................................6.1 Namibia .........................................6.2 Brazil..............................................6.2 Lao PDR ........................................6.4 Indonesia .......................................6.4 Vietnam .........................................6.6 Kyrgyz Republic .............................6.6 Russian Federation ........................6.8 Haiti ...............................................6.8 Sri Lanka .......................................6.9 Egypt .............................................6.9 Zambia ..........................................7.0 Pakistan .........................................7.4 Nicaragua ......................................7.4 Turkey............................................7.5 Bangladesh....................................7.5 Serbia ............................................7.7 Tanzania ........................................7.9 Ethiopia..........................................8.0 Nigeria ...........................................8.5 Uruguay .........................................8.6 Bhutan ...........................................8.7 Angola ...........................................8.8 Burundi ..........................................8.8 Jamaica .........................................9.4 India...............................................9.5 Mongolia ........................................9.6 Sierra Leone ..................................9.8 Nepal .............................................9.9 Timor-Leste .................................10.6 Argentina .....................................10.6 Yemen .........................................11.1 Ghana ..........................................11.7 Guinea .........................................12.0 Malawi .........................................27.7 Iran, Islamic Rep. .........................35.2 Venezuela ....................................40.7 Gabon ...........................................0.5 Portugal .........................................0.4 Bulgaria .........................................0.4 Cyprus ...........................................0.4 Japan ............................................0.4 Chad..............................................0.2 Latvia .............................................0.0 Sweden .........................................0.0 Switzerland ..................................–0.2 Ukraine ........................................–0.3 Georgia ........................................–0.5 Mali ..............................................–0.6 Greece .........................................–0.9 SOURCES: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources NOTE: For inflation rates between 0.5 and 2.9 percent, a country receives the highest possible score of 7. Outside this range, scores decrease linearly as they move away from these values. The Philippines has an inflation rate of 2.93 and therefore falls out of this range. 440 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 2.2: Data Tables 3.04 Government debt Gross general government debt as a percentage of GDP 2013 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Libya ..............................................0.0 Saudi Arabia ..................................2.7 Kuwait ...........................................5.3 Oman ............................................7.0 Algeria ...........................................9.2 Iran, Islamic Rep. .........................10.6 Estonia.........................................11.3 Chile ............................................12.2 United Arab Emirates ...................12.3 Russian Federation ......................13.4 Kazakhstan ..................................13.5 Azerbaijan ....................................13.8 Paraguay .....................................15.2 Botswana ....................................15.9 Bulgaria .......................................17.6 Cameroon....................................18.6 Swaziland ....................................18.8 Nigeria .........................................19.4 Peru .............................................19.6 Haiti .............................................21.3 Ethiopia........................................22.2 China ...........................................22.4 Luxembourg ................................22.9 Gabon .........................................22.9 Moldova .......................................24.4 Guatemala ...................................24.4 Indonesia .....................................26.1 Namibia .......................................26.6 Angola .........................................26.6 Cambodia ....................................28.1 Australia .......................................28.8 Suriname .....................................29.2 Tajikistan ......................................29.2 Rwanda .......................................29.4 Norway ........................................29.5 Chad............................................30.2 Trinidad and Tobago....................30.6 Nepal ...........................................31.0 Mali ..............................................31.5 Burundi ........................................31.7 Georgia ........................................31.8 Colombia .....................................31.8 Latvia ...........................................32.1 Sierra Leone ................................32.6 Bolivia ..........................................33.1 Burkina Faso................................33.3 Dominican Republic .....................33.8 Hong Kong SAR ..........................33.8 Uganda ........................................33.9 Qatar ...........................................34.2 Zambia ........................................35.1 Macedonia, FYR ..........................35.8 Turkey..........................................35.8 New Zealand ...............................35.9 Korea, Rep. .................................36.7 Costa Rica ...................................37.0 Guinea .........................................37.8 Philippines ...................................38.3 Romania ......................................39.3 Lithuania ......................................39.3 Lesotho .......................................39.6 Bangladesh..................................39.7 Honduras .....................................40.2 Taiwan, China ..............................41.0 Tanzania ......................................41.0 Ukraine ........................................41.0 Panama .......................................41.3 Sweden .......................................41.4 Armenia .......................................41.9 Nicaragua ....................................42.4 Myanmar......................................42.7 Côte d’Ivoire ................................43.2 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 n/a COUNTRY/ECONOMY VALUE Mozambique ................................43.3 Bahrain ........................................43.9 Tunisia .........................................44.4 Denmark ......................................45.2 South Africa .................................45.2 Thailand .......................................45.3 Senegal .......................................45.9 Mexico .........................................46.5 Argentina .....................................46.9 Kyrgyz Republic ...........................47.7 Czech Republic ...........................47.9 Switzerland ..................................49.4 Venezuela ....................................49.8 Madagascar1 ...............................49.8 Yemen .........................................49.9 Kenya ..........................................50.5 Mauritius ......................................53.8 Zimbabwe ....................................54.7 Slovak Republic ...........................54.9 El Salvador...................................54.9 Vietnam .......................................55.0 Montenegro .................................56.8 Finland .........................................57.0 Poland .........................................57.5 Malaysia.......................................58.2 Uruguay .......................................59.4 Croatia .........................................59.8 Ghana ..........................................60.1 Morocco ......................................61.9 Lao PDR ......................................62.0 Seychelles....................................62.0 Puerto Rico..................................63.0 Mongolia1 ....................................63.0 Pakistan .......................................63.1 Guyana ........................................63.9 Serbia ..........................................65.8 Brazil............................................66.3 India.............................................66.7 Israel ............................................66.7 Malawi .........................................68.9 Albania.........................................70.5 Malta ...........................................71.7 Slovenia .......................................73.0 Austria .........................................74.2 Netherlands .................................74.9 Germany ......................................78.1 Sri Lanka1 ....................................79.2 Hungary .......................................79.2 Gambia, The ................................82.1 Mauritania ....................................87.7 Jordan .........................................87.7 Canada ........................................89.1 Egypt ...........................................89.2 United Kingdom ...........................90.1 Iceland .........................................90.2 Barbados .....................................92.0 France .........................................93.9 Spain ...........................................93.9 Cape Verde .................................95.0 Belgium .......................................99.8 Singapore ..................................103.8 United States .............................104.5 Bhutan .......................................110.7 Cyprus .......................................112.0 Ireland........................................122.8 Portugal .....................................128.8 Italy ............................................132.5 Jamaica .....................................138.9 Lebanon ....................................139.7 Greece .......................................173.8 Japan ........................................243.2 Timor-Leste ...................................n/a SOURCES: International Monetary Fund, World Economic Outlook Database (April 2014 edition) and Public Information Notices (various issues); African Development Bank, Organisation for Economic Co-operation and Development (OECD), and United Nations Development Programme, African Economic Outlook 2014; national sources 1 2012 © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 441 2.2: Data Tables 3.05 Country credit rating Institutional Investor’s Country Credit Ratings™ assessing the probability of sovereign debt default on a 0–100 (lowest probability) scale March 2014 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Norway ........................................94.8 Switzerland ..................................94.2 Canada ........................................93.1 Germany ......................................92.9 Sweden .......................................92.8 Luxembourg ................................91.7 United States ...............................91.6 Finland .........................................91.5 Singapore ....................................90.9 Denmark ......................................90.0 Netherlands .................................89.3 Australia .......................................88.4 United Kingdom ...........................87.7 Austria .........................................87.5 France .........................................83.9 New Zealand ...............................83.8 Hong Kong SAR ..........................83.8 Japan ..........................................81.6 Belgium .......................................81.1 Chile ............................................80.6 Taiwan, China ..............................79.6 Korea, Rep. .................................79.3 Qatar ...........................................79.1 Kuwait .........................................77.5 China ...........................................77.5 Saudi Arabia ................................76.1 Czech Republic ...........................75.1 Estonia.........................................74.4 Slovak Republic ...........................74.2 United Arab Emirates ...................73.3 Poland .........................................73.2 Malaysia.......................................72.0 Oman ..........................................71.4 Israel ............................................70.8 Malta ...........................................69.2 Mexico .........................................69.0 Russian Federation ......................67.7 Brazil............................................67.7 Italy ..............................................66.9 Colombia .....................................65.2 Peru .............................................64.9 Trinidad and Tobago....................64.7 Thailand .......................................63.5 Ireland..........................................63.1 Botswana ....................................62.8 Panama .......................................61.9 Lithuania ......................................61.2 Kazakhstan ..................................60.4 Slovenia .......................................60.0 Spain ...........................................59.7 South Africa .................................59.1 Mauritius ......................................59.0 Uruguay .......................................58.3 Latvia ...........................................58.0 India.............................................57.8 Bahrain ........................................57.0 Indonesia .....................................56.6 Costa Rica ...................................56.0 Philippines ...................................55.5 Turkey..........................................55.5 Bulgaria .......................................54.5 Namibia .......................................54.1 Croatia .........................................53.4 Barbados .....................................53.4 Iceland .........................................52.9 Algeria .........................................52.6 Morocco ......................................52.6 Hungary .......................................52.1 Romania ......................................51.5 Azerbaijan ....................................51.1 Portugal .......................................49.1 Vietnam .......................................45.3 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 n/a SOURCE: NOTE: COUNTRY/ECONOMY VALUE Tunisia .........................................44.4 Guatemala ...................................44.4 Gabon .........................................43.1 Jordan .........................................42.0 Macedonia, FYR ..........................42.0 El Salvador...................................41.7 Dominican Republic .....................39.8 Nigeria .........................................39.7 Serbia ..........................................39.5 Montenegro .................................38.7 Suriname .....................................38.7 Georgia ........................................38.3 Armenia .......................................38.0 Bolivia ..........................................37.2 Paraguay .....................................37.1 Albania.........................................36.5 Mongolia ......................................36.1 Zambia ........................................35.9 Angola .........................................35.8 Ghana ..........................................35.7 Libya ............................................35.6 Kenya ..........................................34.6 Sri Lanka .....................................34.3 Kyrgyz Republic ...........................33.6 Cyprus .........................................32.8 Venezuela ....................................32.8 Lesotho .......................................32.7 Senegal .......................................32.5 Uganda ........................................32.2 Cape Verde .................................31.9 Tanzania ......................................31.9 Argentina .....................................31.6 Ukraine ........................................31.5 Mozambique ................................31.5 Lebanon ......................................31.3 Bangladesh..................................30.4 Bhutan .........................................30.4 Honduras .....................................29.7 Moldova .......................................28.8 Egypt ...........................................28.8 Guyana ........................................27.8 Côte d’Ivoire ................................27.2 Iran, Islamic Rep. .........................27.1 Jamaica .......................................26.8 Cambodia ....................................26.7 Cameroon....................................25.9 Greece .........................................25.5 Rwanda .......................................25.2 Pakistan .......................................25.2 Seychelles....................................25.2 Nepal ...........................................23.8 Swaziland ....................................22.8 Yemen .........................................22.7 Mauritania ....................................21.1 Burkina Faso................................21.0 Nicaragua ....................................20.7 Tajikistan ......................................19.9 Malawi .........................................19.7 Timor-Leste .................................19.7 Lao PDR ......................................19.4 Gambia, The ................................18.7 Mali ..............................................18.5 Ethiopia........................................18.2 Madagascar .................................18.2 Sierra Leone ................................17.7 Chad............................................15.5 Burundi ........................................13.9 Guinea .........................................12.5 Haiti .............................................12.1 Myanmar......................................10.7 Zimbabwe ......................................6.0 Puerto Rico....................................n/a Institutional Investor Institutional Investor’s “Country Credit Ratings” is a trademark of Institutional Investor, LLC. 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Copyright © Institutional Investor, LLC 2014 442 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Data Tables Health and primary education 2.2: Data Tables 4.01 Malaria incidence Estimated number of malaria cases per 100,000 population 2012 RANK 1 1 1 1 1 1 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Egypt .............................................0.0 Georgia ..........................................0.0 Kyrgyz Republic .............................0.0 Oman ............................................0.0 Paraguay .......................................0.0 Turkey............................................0.0 Argentina .......................................0.0 Azerbaijan ......................................0.0 Costa Rica .....................................0.2 Algeria ...........................................0.2 Tajikistan ........................................0.2 El Salvador.....................................0.3 Saudi Arabia ..................................0.4 Sri Lanka .......................................0.4 China .............................................0.5 Mexico ...........................................0.8 Iran, Islamic Rep. ...........................1.2 Korea, Rep. ...................................2.7 Dominican Republic .....................12.7 Bhutan .........................................20.2 Cape Verde .................................22.2 Namibia .......................................23.0 Philippines ...................................23.8 Panama .......................................26.3 Vietnam .......................................29.7 Botswana ....................................29.9 South Africa .................................32.5 Malaysia.......................................33.5 Nicaragua ....................................38.4 Swaziland ....................................43.1 Guatemala ...................................57.7 Nepal ...........................................61.9 Suriname .....................................78.6 Bolivia ........................................104.8 Brazil..........................................156.0 Honduras ...................................163.8 Peru ...........................................190.1 Colombia ...................................203.3 Thailand .....................................209.6 Venezuela ..................................287.1 Bangladesh................................394.3 Cambodia ...............................1,076.4 Haiti ........................................1,277.8 India........................................1,536.4 Lao PDR .................................1,655.2 Yemen ....................................1,802.8 Pakistan ..................................1,953.6 Indonesia ................................2,268.5 Myanmar.................................2,651.6 Ethiopia...................................4,578.7 Rwanda ..................................5,673.0 Madagascar ............................5,831.2 Guyana ...................................7,920.9 Kenya .....................................8,106.0 Timor-Leste ............................8,347.5 Zimbabwe ...............................8,452.6 Burundi ...................................8,528.3 Cameroon.............................17,051.0 Tanzania ...............................17,370.2 Mauritania .............................17,649.5 Angola ..................................18,251.2 Sierra Leone .........................18,398.6 Mali .......................................20,197.2 Côte d’Ivoire .........................20,665.6 Uganda .................................24,487.0 Gabon ..................................25,113.7 Chad.....................................26,509.9 Zambia .................................26,650.2 Ghana ...................................27,201.3 Malawi ..................................27,661.7 Senegal ................................27,684.6 Mozambique .........................27,774.0 73 74 75 76 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a COUNTRY/ECONOMY VALUE Nigeria ..................................28,430.3 Gambia, The .........................29,030.4 Burkina Faso.........................34,021.6 Guinea ..................................38,423.7 Albania......................................... S.L. Armenia .......................................M.F. Australia .......................................M.F. Austria ......................................... S.L. Bahrain ........................................ S.L. Barbados ..................................... S.L. Belgium ....................................... S.L. Bulgaria .......................................M.F. Canada ........................................ S.L. Chile ............................................ S.L. Croatia .........................................M.F. Cyprus .........................................M.F. Czech Republic ........................... S.L. Denmark ...................................... S.L. Estonia......................................... S.L. Finland ......................................... S.L. France ......................................... S.L. Germany ...................................... S.L. Greece ......................................... S.L. Hong Kong SAR1.........................M.F. Hungary .......................................M.F. Iceland ......................................... S.L. Ireland.......................................... S.L. Israel ............................................ S.L. Italy ..............................................M.F. Jamaica .......................................M.F. Japan .......................................... S.L. Jordan ......................................... S.L. Kazakhstan .................................. S.L. Kuwait ......................................... S.L. Latvia ........................................... S.L. Lebanon ...................................... S.L. Lesotho ....................................... S.L. Libya ............................................ S.L. Lithuania ...................................... S.L. Luxembourg ................................ S.L. Macedonia, FYR ..........................M.F. Malta ........................................... S.L. Mauritius ......................................M.F. Moldova ....................................... S.L. Mongolia ...................................... S.L. Montenegro .................................M.F. Morocco ......................................M.F. Netherlands .................................M.F. New Zealand ............................... S.L. Norway ........................................ S.L. Poland .........................................M.F. Portugal .......................................M.F. Puerto Rico1 ................................M.F. Qatar ........................................... S.L. Romania ......................................M.F. Russian Federation ...................... S.L. Serbia ..........................................M.F. Seychelles.................................... S.L. Singapore ....................................M.F. Slovak Republic ........................... S.L. Slovenia .......................................M.F. Spain ...........................................M.F. Sweden ....................................... S.L. Switzerland .................................. S.L. Taiwan, China ..............................M.F. Trinidad and Tobago....................M.F. Tunisia ......................................... S.L. Ukraine ........................................ S.L. United Arab Emirates ...................M.F. United Kingdom ........................... S.L. United States ...............................M.F. Uruguay ....................................... S.L. SOURCES: The World Health Organization, World Malaria Report 2013; United States Centers for Disease Control and Prevention (CDC), Malaria Information and Prophylaxis information (accessed July 11, 2014). NOTE: M.F. indicates that the economy was declared free of malaria by the World Health Organization (WHO), except in the case of Hong Kong SAR and Puerto Rico, for which malaria assessment by CDC (2014) was used. S.L. means the economy was added to the WHO’s supplementary list of areas where malaria has never existed or has disappeared without specific measures. 1 2014 444 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 2.2: Data Tables 4.02 Business impact of malaria How serious an impact do you consider malaria will have on your company in the next five years (e.g., death, disability, medical and funeral expenses, productivity and absenteeism, recruitment and training expenses, revenues)? [1 = a serious impact; 7 = no impact at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Egypt .............................................6.8 Argentina .......................................6.7 Mexico ...........................................6.5 Costa Rica .....................................6.5 Brazil..............................................6.3 Georgia ..........................................6.3 Turkey............................................6.2 Paraguay .......................................6.1 Panama .........................................6.0 Sri Lanka .......................................6.0 El Salvador.....................................6.0 Oman ............................................6.0 Guatemala .....................................5.9 Azerbaijan ......................................5.8 Peru ...............................................5.8 Saudi Arabia ..................................5.7 Iran, Islamic Rep. ...........................5.7 Nicaragua ......................................5.7 Bangladesh....................................5.6 Cape Verde ...................................5.5 Malaysia.........................................5.5 Korea, Rep. ...................................5.5 Venezuela ......................................5.4 Thailand .........................................5.4 Suriname .......................................5.4 Honduras .......................................5.4 Colombia .......................................5.3 Dominican Republic .......................5.2 Nepal .............................................5.2 South Africa ...................................5.1 Kyrgyz Republic .............................5.1 China .............................................5.0 Ethiopia..........................................5.0 Philippines .....................................4.9 Guyana ..........................................4.9 Zimbabwe ......................................4.9 Tajikistan ........................................4.9 Rwanda .........................................4.8 Botswana ......................................4.8 Vietnam .........................................4.7 Côte d’Ivoire ..................................4.6 Namibia .........................................4.6 Myanmar........................................4.5 Kenya ............................................4.5 Cambodia ......................................4.5 Bhutan ...........................................4.5 Algeria ...........................................4.5 Yemen ...........................................4.3 Indonesia .......................................4.3 Pakistan .........................................4.2 Haiti ...............................................4.1 Swaziland ......................................4.1 Lao PDR ........................................4.0 Mauritania ......................................4.0 Senegal .........................................3.9 Bolivia ............................................3.9 Zambia ..........................................3.9 Gambia, The ..................................3.8 Cameroon......................................3.8 Ghana ............................................3.7 India...............................................3.6 Nigeria ...........................................3.6 Mozambique ..................................3.6 Madagascar ...................................3.4 Uganda ..........................................3.3 Burundi ..........................................3.3 Guinea ...........................................3.2 Mali ................................................3.2 Gabon ...........................................3.2 Burkina Faso..................................3.1 Malawi ...........................................3.1 Tanzania ........................................3.0 SOURCE: NOTE: 1 MEAN 4.7 7 RANK 73 74 75 76 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a COUNTRY/ECONOMY VALUE 1 MEAN 4.7 7 Timor-Leste ...................................2.9 Sierra Leone ..................................2.9 Chad..............................................2.8 Angola ...........................................1.4 Albania....................................N/Appl. Armenia ..................................N/Appl. Australia ..................................N/Appl. Austria ....................................N/Appl. Bahrain ...................................N/Appl. Barbados ................................N/Appl. Belgium ..................................N/Appl. Bulgaria ..................................N/Appl. Canada ...................................N/Appl. Chile .......................................N/Appl. Croatia ....................................N/Appl. Cyprus ....................................N/Appl. Czech Republic ......................N/Appl. Denmark .................................N/Appl. Estonia....................................N/Appl. Finland ....................................N/Appl. France ....................................N/Appl. Germany .................................N/Appl. Greece ....................................N/Appl. Hong Kong SAR .....................N/Appl. Hungary ..................................N/Appl. Iceland ....................................N/Appl. Ireland.....................................N/Appl. Israel .......................................N/Appl. Italy .........................................N/Appl. Jamaica ..................................N/Appl. Japan .....................................N/Appl. Jordan ....................................N/Appl. Kazakhstan .............................N/Appl. Kuwait ....................................N/Appl. Latvia ......................................N/Appl. Lebanon .................................N/Appl. Lesotho ..................................N/Appl. Libya .......................................N/Appl. Lithuania .................................N/Appl. Luxembourg ...........................N/Appl. Macedonia, FYR .....................N/Appl. Malta ......................................N/Appl. Mauritius .................................N/Appl. Moldova ..................................N/Appl. Mongolia .................................N/Appl. Montenegro ............................N/Appl. Morocco .................................N/Appl. Netherlands ............................N/Appl. New Zealand ..........................N/Appl. Norway ...................................N/Appl. Poland ....................................N/Appl. Portugal ..................................N/Appl. Puerto Rico.............................N/Appl. Qatar ......................................N/Appl. Romania .................................N/Appl. Russian Federation .................N/Appl. Serbia .....................................N/Appl. Seychelles...............................N/Appl. Singapore ...............................N/Appl. Slovak Republic ......................N/Appl. Slovenia ..................................N/Appl. Spain ......................................N/Appl. Sweden ..................................N/Appl. Switzerland .............................N/Appl. Taiwan, China .........................N/Appl. Trinidad and Tobago...............N/Appl. Tunisia ....................................N/Appl. Ukraine ...................................N/Appl. United Arab Emirates ..............N/Appl. United Kingdom ......................N/Appl. United States ..........................N/Appl. Uruguay ..................................N/Appl. World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. This indicator does not apply to economies free of malaria and for which N/Appl. is used. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 445 2.2: Data Tables 4.03 Tuberculosis incidence Estimated number of tuberculosis cases per 100,000 population 2013 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15 17 18 19 20 21 22 22 24 24 26 27 28 29 30 30 32 33 33 35 35 37 37 37 40 41 41 41 44 45 46 46 46 49 50 50 50 53 54 54 56 56 58 59 60 61 62 62 64 65 66 66 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Barbados .......................................1.6 United Arab Emirates .....................1.7 Puerto Rico....................................2.2 Iceland ...........................................3.5 United States .................................3.6 Greece ...........................................4.5 Canada ..........................................4.6 Czech Republic .............................5.3 Cyprus ...........................................5.4 Finland ...........................................5.5 Germany ........................................5.6 Jordan ...........................................5.8 Switzerland ....................................6.0 Netherlands ...................................6.3 Australia .........................................6.5 Luxembourg ..................................6.5 Jamaica .........................................6.6 Italy ................................................6.7 Slovak Republic .............................6.8 Sweden .........................................7.2 Denmark ........................................7.4 Norway ..........................................7.5 Slovenia .........................................7.5 Israel ..............................................7.6 New Zealand .................................7.6 Austria ...........................................7.9 France ...........................................8.2 Ireland............................................8.6 Belgium .........................................9.7 Costa Rica ...................................11.0 Malta ...........................................11.0 Oman ..........................................13.0 Croatia .........................................14.0 Spain ...........................................14.0 Saudi Arabia ................................15.0 United Kingdom ...........................15.0 Albania.........................................16.0 Chile ............................................16.0 Lebanon ......................................16.0 Egypt ...........................................17.0 Hungary .......................................18.0 Macedonia, FYR ..........................18.0 Montenegro .................................18.0 Japan ..........................................19.0 Bahrain ........................................20.0 Iran, Islamic Rep. .........................21.0 Mauritius ......................................21.0 Poland .........................................21.0 Turkey..........................................22.0 Estonia.........................................23.0 Mexico .........................................23.0 Serbia ..........................................23.0 Trinidad and Tobago....................24.0 Argentina .....................................25.0 El Salvador...................................25.0 Kuwait .........................................26.0 Portugal .......................................26.0 Uruguay .......................................27.0 Seychelles....................................30.0 Tunisia .........................................31.0 Bulgaria .......................................32.0 Colombia .....................................33.0 Venezuela ....................................33.0 Nicaragua ....................................38.0 Libya ............................................40.0 Qatar ...........................................41.0 Suriname .....................................41.0 Paraguay .....................................45.0 Brazil............................................46.0 Panama .......................................48.0 Yemen .........................................49.0 Taiwan, China ..............................49.4 73 74 75 76 76 78 78 80 81 81 83 84 85 86 87 88 89 90 91 92 92 94 95 95 97 98 99 100 101 102 102 104 105 106 107 108 109 109 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY SOURCES: The World Bank, World Development Indicators (accessed June 18, 2014); national sources 1 2012 446 The Global Competitiveness Report 2014–2015 VALUE Singapore ....................................50.0 Armenia .......................................52.0 Latvia ...........................................53.0 Burkina Faso................................54.0 Honduras .....................................54.0 Guatemala ...................................60.0 Mali ..............................................60.0 Dominican Republic .....................62.0 Lithuania ......................................66.0 Sri Lanka .....................................66.0 Ghana ..........................................72.0 China ...........................................73.0 Hong Kong SAR ..........................77.0 Malaysia.......................................80.0 Rwanda .......................................86.0 Algeria .........................................89.0 Russian Federation ......................91.0 Ukraine ........................................93.0 Romania ......................................94.0 Azerbaijan ....................................95.0 Peru .............................................95.0 Morocco ....................................103.0 Korea, Rep. ...............................108.0 Nigeria .......................................108.0 Guyana ......................................109.0 Georgia ......................................116.0 Thailand .....................................119.0 Bolivia ........................................127.0 Burundi ......................................130.0 Kazakhstan ................................137.0 Senegal .....................................137.0 Kyrgyz Republic .........................141.0 Cape Verde ...............................144.0 Vietnam .....................................147.0 Chad..........................................151.0 Moldova .....................................160.0 Malawi .......................................163.0 Nepal .........................................163.0 Tanzania ....................................165.0 Côte d’Ivoire ..............................172.0 India...........................................176.0 Guinea .......................................178.0 Uganda ......................................179.0 Bhutan .......................................180.0 Indonesia ...................................185.0 Tajikistan1 ..................................193.0 Lao PDR ....................................204.0 Haiti ...........................................213.0 Mongolia ....................................223.0 Bangladesh................................225.0 Pakistan .....................................231.0 Madagascar ...............................234.0 Cameroon..................................238.0 Ethiopia......................................247.0 Philippines .................................265.0 Kenya ........................................272.0 Gambia, The ..............................284.0 Angola .......................................316.0 Mauritania ..................................350.0 Myanmar....................................377.0 Botswana ..................................408.0 Cambodia ..................................411.0 Zambia ......................................427.0 Gabon .......................................428.0 Timor-Leste ...............................498.0 Mozambique ..............................552.0 Zimbabwe ..................................562.0 Lesotho .....................................630.0 Namibia .....................................655.0 Sierra Leone ..............................674.0 South Africa ............................1,003.0 Swaziland ...............................1,349.0 © 2014 World Economic Forum 2.2: Data Tables 4.04 Business impact of tuberculosis How serious an impact do you consider tuberculosis will have on your company in the next five years (e.g., death, disability, medical and funeral expenses, productivity and absenteeism, recruitment and training expenses, revenues)? [1 = a serious impact; 7 = no impact at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Finland ...........................................7.0 Norway ..........................................6.9 Denmark ........................................6.9 Switzerland ....................................6.8 Austria ...........................................6.8 Spain .............................................6.8 Iceland ...........................................6.8 New Zealand .................................6.8 Netherlands ...................................6.8 Puerto Rico....................................6.8 Israel ..............................................6.8 Slovenia .........................................6.7 Belgium .........................................6.7 Australia .........................................6.7 Luxembourg ..................................6.7 Egypt .............................................6.7 Croatia ...........................................6.7 Sweden .........................................6.6 Chile ..............................................6.6 Canada ..........................................6.6 Italy ................................................6.6 Ireland............................................6.5 Slovak Republic .............................6.5 Uruguay .........................................6.5 United Kingdom .............................6.5 Germany ........................................6.5 Qatar .............................................6.5 Portugal .........................................6.5 Costa Rica .....................................6.4 Argentina .......................................6.4 Serbia ............................................6.4 Hungary .........................................6.4 Estonia...........................................6.4 France ...........................................6.4 Lebanon ........................................6.3 Greece ...........................................6.3 Kuwait ...........................................6.2 Malta .............................................6.2 Cyprus ...........................................6.2 Albania...........................................6.2 Brazil..............................................6.2 Mexico ...........................................6.2 Japan ............................................6.2 Latvia .............................................6.2 United Arab Emirates .....................6.2 Taiwan, China ................................6.1 Poland ...........................................6.1 Singapore ......................................6.1 Turkey............................................6.1 Hong Kong SAR ............................6.0 United States .................................6.0 Mauritius ........................................6.0 Guatemala .....................................6.0 Bulgaria .........................................6.0 Sri Lanka .......................................6.0 Nicaragua ......................................5.9 Paraguay .......................................5.9 Bahrain ..........................................5.9 Panama .........................................5.9 Macedonia, FYR ............................5.9 Jamaica .........................................5.9 Barbados .......................................5.9 Montenegro ...................................5.9 Oman ............................................5.8 Trinidad and Tobago......................5.7 Jordan ...........................................5.7 Georgia ..........................................5.7 Czech Republic .............................5.7 Morocco ........................................5.7 Saudi Arabia ..................................5.7 Armenia .........................................5.7 Lithuania ........................................5.6 SOURCE: 1 MEAN 5.4 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 5.4 7 Tunisia ...........................................5.6 Iran, Islamic Rep. ...........................5.6 Russian Federation ........................5.5 Bangladesh....................................5.5 Suriname .......................................5.5 Honduras .......................................5.4 Venezuela ......................................5.4 Mongolia ........................................5.4 Azerbaijan ......................................5.4 Cape Verde ...................................5.3 Colombia .......................................5.3 Malaysia.........................................5.3 Rwanda .........................................5.3 Lesotho .........................................5.2 Korea, Rep. ...................................5.2 Gambia, The ..................................5.1 Moldova .........................................5.1 Romania ........................................5.1 Libya ..............................................5.0 Nigeria ...........................................5.0 Dominican Republic .......................5.0 Peru ...............................................5.0 Yemen ...........................................4.9 China .............................................4.9 Guyana ..........................................4.8 Ukraine ..........................................4.8 Thailand .........................................4.7 Nepal .............................................4.7 Senegal .........................................4.6 Kenya ............................................4.6 Ghana ............................................4.6 Tajikistan ........................................4.6 Guinea ...........................................4.5 Vietnam .........................................4.5 Burkina Faso..................................4.4 Pakistan .........................................4.4 Seychelles......................................4.4 Gabon ...........................................4.4 Kazakhstan ....................................4.4 Madagascar ...................................4.4 Bhutan ...........................................4.4 Philippines .....................................4.4 Uganda ..........................................4.3 Zambia ..........................................4.3 El Salvador.....................................4.3 Zimbabwe ......................................4.3 Ethiopia..........................................4.3 Tanzania ........................................4.2 Sierra Leone ..................................4.2 Haiti ...............................................4.2 Cambodia ......................................4.2 Kyrgyz Republic .............................4.2 Côte d’Ivoire ..................................4.1 Mozambique ..................................4.1 Cameroon......................................4.1 Indonesia .......................................4.1 Mali ................................................4.0 Lao PDR ........................................4.0 Algeria ...........................................4.0 Burundi ..........................................3.9 Namibia .........................................3.9 Myanmar........................................3.8 India...............................................3.7 South Africa ...................................3.7 Malawi ...........................................3.7 Botswana ......................................3.7 Bolivia ............................................3.5 Chad..............................................3.4 Mauritania ......................................3.4 Timor-Leste ...................................3.3 Angola ...........................................2.8 Swaziland ......................................2.4 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 447 2.2: Data Tables 4.05 HIV prevalence HIV prevalence as a percentage of adults aged 15–49 years 2013 or most recent year available RANK 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 58 59 59 59 59 59 59 59 59 59 59 59 59 59 59 COUNTRY/ECONOMY VALUE RANK Albania1 ...................................... <0.2 Algeria3 ..........................................0.1 Armenia .........................................0.2 Australia3 .......................................0.2 Azerbaijan ......................................0.2 Bahrain1...................................... <0.2 Bangladesh....................................0.1 Bhutan ...........................................0.2 Bulgaria3 ........................................0.1 Cape Verde ...................................0.2 China4 ........................................ <0.1 Croatia3 ...................................... <0.1 Cyprus1 ...................................... <0.2 Czech Republic3 ......................... <0.1 Denmark3 ......................................0.2 Egypt .............................................0.1 Finland3 .........................................0.1 Germany3 ......................................0.1 Greece3 .........................................0.2 Hong Kong SAR ............................0.1 Hungary3 .......................................0.1 Iran, Islamic Rep. ...........................0.2 Israel3 ............................................0.2 Japan3 ........................................ <0.1 Jordan1....................................... <0.2 Kazakhstan3 ..................................0.2 Korea, Rep.3 ............................... <0.1 Kuwait1 ....................................... <0.2 Lebanon3 .......................................0.1 Libya1 ......................................... <0.2 Lithuania3.......................................0.1 Macedonia, FYR1........................ <0.1 Malta3 ............................................0.1 Mexico ...........................................0.2 Mongolia ........................................0.1 Montenegro4..................................0.0 Morocco ........................................0.1 Netherlands3 ..................................0.2 New Zealand3 ................................0.1 Norway3.........................................0.1 Oman2 ...........................................0.1 Pakistan .........................................0.1 Philippines .....................................0.1 Poland3..........................................0.1 Qatar2 ......................................... <0.1 Romania3 .......................................0.1 Saudi Arabia1.............................. <0.2 Serbia3...........................................0.1 Singapore3.....................................0.1 Slovak Republic3......................... <0.1 Slovenia3 .......................................0.1 Sri Lanka .......................................0.1 Sweden3 ........................................0.2 Tunisia ...........................................0.1 Turkey3 ....................................... <0.1 United Arab Emirates1 ................ <0.2 Yemen ...........................................0.1 Taiwan, China ................................0.2 Belgium3 ........................................0.3 Bolivia ............................................0.3 Canada3 ........................................0.3 Costa Rica .....................................0.3 Georgia ..........................................0.3 Iceland3 .........................................0.3 India...............................................0.3 Ireland3 ..........................................0.3 Kyrgyz Republic .............................0.3 Lao PDR ........................................0.3 Luxembourg3 .................................0.3 Nepal .............................................0.3 Nicaragua ......................................0.3 Paraguay .......................................0.3 59 59 75 75 75 75 75 75 75 75 75 75 75 75 87 88 88 88 88 92 92 92 92 92 97 97 97 97 97 97 97 104 105 106 106 106 109 110 110 110 113 114 114 114 114 114 119 120 121 122 122 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 n/a COUNTRY/ECONOMY VALUE Tajikistan ........................................0.3 United Kingdom3 ...........................0.3 Argentina .......................................0.4 Austria3 ..........................................0.4 Chile ..............................................0.4 France3 ..........................................0.4 Indonesia .......................................0.4 Italy3 ..............................................0.4 Malaysia.........................................0.4 Mauritania ......................................0.4 Peru ...............................................0.4 Spain3............................................0.4 Switzerland3...................................0.4 Vietnam .........................................0.4 Brazil4 ............................................0.5 Colombia .......................................0.5 Honduras .......................................0.5 Madagascar ...................................0.5 Senegal .........................................0.5 El Salvador.....................................0.6 Myanmar........................................0.6 Puerto Rico....................................0.6 United States3 ...............................0.6 Venezuela ......................................0.6 Dominican Republic .......................0.7 Guatemala .....................................0.7 Latvia3 ...........................................0.7 Moldova .........................................0.7 Panama .........................................0.7 Portugal3 .......................................0.7 Uruguay .........................................0.7 Cambodia ......................................0.8 Seychelles4 ....................................0.8 Barbados .......................................0.9 Mali ................................................0.9 Ukraine ..........................................0.9 Burkina Faso..................................1.0 Russian Federation3 .......................1.1 Suriname .......................................1.1 Thailand .........................................1.1 Mauritius ........................................1.2 Burundi ..........................................1.3 Estonia3 .........................................1.3 Ethiopia..........................................1.3 Gambia, The ..................................1.3 Guyana ..........................................1.3 Ghana ............................................1.4 Sierra Leone ..................................1.5 Trinidad and Tobago......................1.6 Guinea ...........................................1.7 Jamaica .........................................1.7 Haiti ...............................................2.1 Angola ...........................................2.3 Chad..............................................2.7 Rwanda .........................................2.9 Nigeria ...........................................3.1 Côte d’Ivoire ..................................3.2 Gabon ...........................................4.0 Cameroon......................................4.5 Tanzania ........................................5.1 Kenya ............................................6.1 Uganda ..........................................7.2 Malawi .........................................10.8 Mozambique ................................11.1 Zambia ........................................12.7 Namibia .......................................13.3 Zimbabwe ....................................14.7 South Africa .................................17.9 Botswana ....................................23.0 Lesotho .......................................23.1 Swaziland ....................................26.5 Timor-Leste ...................................n/a SOURCES: The World Bank, World Development Indicators (accessed June 18, 2014); UNAIDS, Global Report on the Global AIDS Epidemic (2008, 2010, 2012, and 2013 editions); national sources NOTE: Economies with a prevalence rate equal to or less than 0.2 percent (using non-rounded rates) are all ranked first, listed alphabetically, and presented with a bar of the same length although the value may differ. 1 2007 2 2009 3 2011 4 2012 448 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum 2.2: Data Tables 4.06 Business impact of HIV/AIDS How serious an impact do you consider HIV/AIDS will have on your company in the next five years (e.g., death, disability, medical and funeral expenses, productivity and absenteeism, recruitment and training expenses, revenues)? [1 = a serious impact; 7 = no impact at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Egypt .............................................6.9 Finland ...........................................6.9 Denmark ........................................6.8 Norway ..........................................6.8 Croatia ...........................................6.8 New Zealand .................................6.8 Austria ...........................................6.7 Israel ..............................................6.6 Slovenia .........................................6.6 Netherlands ...................................6.6 Switzerland ....................................6.6 Slovak Republic .............................6.6 Iceland ...........................................6.6 Serbia ............................................6.5 Spain .............................................6.5 Ireland............................................6.5 Hungary .........................................6.5 Qatar .............................................6.5 Sweden .........................................6.5 Luxembourg ..................................6.5 United Kingdom .............................6.5 Belgium .........................................6.5 Australia .........................................6.4 Taiwan, China ................................6.4 Kuwait ...........................................6.4 Canada ..........................................6.3 Albania...........................................6.3 Italy ................................................6.3 Germany ........................................6.3 United Arab Emirates .....................6.3 Uruguay .........................................6.2 Portugal .........................................6.2 Lithuania ........................................6.2 Lebanon ........................................6.2 Japan ............................................6.1 Malta .............................................6.1 Armenia .........................................6.1 Singapore ......................................6.1 Poland ...........................................6.1 Puerto Rico....................................6.1 Turkey............................................6.1 Greece ...........................................6.1 Estonia...........................................6.0 Georgia ..........................................6.0 Bulgaria .........................................6.0 Latvia .............................................6.0 Chile ..............................................6.0 France ...........................................6.0 Costa Rica .....................................6.0 Bangladesh....................................6.0 Cyprus ...........................................6.0 Sri Lanka .......................................5.9 Moldova .........................................5.9 Macedonia, FYR ............................5.9 Montenegro ...................................5.9 Bahrain ..........................................5.9 Mongolia ........................................5.8 Hong Kong SAR ............................5.8 Paraguay .......................................5.8 Russian Federation ........................5.8 Morocco ........................................5.7 Argentina .......................................5.7 Brazil..............................................5.7 Mexico ...........................................5.7 Oman ............................................5.7 Guatemala .....................................5.7 Tunisia ...........................................5.7 Jordan ...........................................5.7 Azerbaijan ......................................5.6 Mauritius ........................................5.6 Saudi Arabia ..................................5.6 Nicaragua ......................................5.5 SOURCE: 1 MEAN 5.3 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 5.3 7 Czech Republic .............................5.5 Cape Verde ...................................5.4 United States .................................5.4 Peru ...............................................5.4 Yemen ...........................................5.3 Iran, Islamic Rep. ...........................5.3 Gambia, The ..................................5.3 Korea, Rep. ...................................5.2 Kazakhstan ....................................5.2 Suriname .......................................5.2 Malaysia.........................................5.1 Venezuela ......................................5.1 Honduras .......................................5.0 Ukraine ..........................................5.0 Madagascar ...................................5.0 China .............................................5.0 Tajikistan ........................................5.0 Romania ........................................4.9 Colombia .......................................4.9 Ghana ............................................4.9 Libya ..............................................4.9 Philippines .....................................4.9 Kyrgyz Republic .............................4.8 Dominican Republic .......................4.8 Pakistan .........................................4.8 Rwanda .........................................4.7 Jamaica .........................................4.7 Nepal .............................................4.7 Panama .........................................4.7 Trinidad and Tobago......................4.7 Guyana ..........................................4.7 Senegal .........................................4.6 Thailand .........................................4.6 Guinea ...........................................4.6 Bhutan ...........................................4.6 Nigeria ...........................................4.5 Côte d’Ivoire ..................................4.5 Vietnam .........................................4.5 Barbados .......................................4.5 Cambodia ......................................4.4 Lesotho .........................................4.4 Sierra Leone ..................................4.3 Haiti ...............................................4.3 Burkina Faso..................................4.3 Myanmar........................................4.3 Algeria ...........................................4.3 El Salvador.....................................4.3 Lao PDR ........................................4.2 Ethiopia..........................................4.2 Gabon ...........................................4.1 Seychelles......................................4.1 Cameroon......................................4.0 Kenya ............................................4.0 Zimbabwe ......................................3.9 Burundi ..........................................3.9 Mali ................................................3.9 Zambia ..........................................3.9 Indonesia .......................................3.9 Tanzania ........................................3.8 India...............................................3.7 Mauritania ......................................3.7 Mozambique ..................................3.6 Timor-Leste ...................................3.5 South Africa ...................................3.4 Namibia .........................................3.4 Chad..............................................3.4 Botswana ......................................3.2 Bolivia ............................................3.2 Uganda ..........................................3.1 Malawi ...........................................3.1 Angola ...........................................2.5 Swaziland ......................................2.1 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 449 2.2: Data Tables 4.07 Infant mortality Infant (children aged 0–12 months) mortality per 1,000 live births 2013 or most recent year available RANK 1 2 3 4 4 6 6 8 9 9 11 11 13 14 15 16 16 16 19 19 19 19 19 24 25 26 27 28 28 28 31 32 33 33 35 36 37 38 39 40 41 41 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Hong Kong SAR ............................1.6 Luxembourg ..................................1.7 Iceland ...........................................1.8 Japan ............................................2.2 Norway ..........................................2.2 Singapore ......................................2.3 Sweden .........................................2.3 Finland ...........................................2.4 Cyprus ...........................................2.5 Slovenia .........................................2.5 Estonia...........................................2.9 Portugal .........................................2.9 Denmark ........................................3.0 Czech Republic .............................3.1 Italy ................................................3.2 Austria ...........................................3.3 Israel ..............................................3.3 Korea, Rep. ...................................3.3 Belgium .........................................3.4 France ...........................................3.4 Germany ........................................3.4 Ireland............................................3.4 Netherlands ...................................3.4 Switzerland ....................................3.7 Spain .............................................3.8 Taiwan, China ................................3.9 Croatia ...........................................4.0 Australia .........................................4.1 Greece ...........................................4.1 United Kingdom .............................4.1 Poland ...........................................4.3 Lithuania ........................................4.4 Canada ..........................................4.7 New Zealand .................................4.7 Hungary .........................................5.3 Montenegro ...................................5.5 Serbia ............................................5.7 Malta .............................................5.8 United States .................................6.0 Uruguay .........................................6.2 Qatar .............................................6.3 Slovak Republic .............................6.3 Macedonia, FYR ............................6.5 United Arab Emirates .....................7.2 Malaysia.........................................7.3 Saudi Arabia ..................................7.4 Latvia .............................................7.6 Chile ..............................................7.8 Lebanon ........................................8.0 Bahrain ..........................................8.2 Sri Lanka .......................................8.3 Costa Rica .....................................8.6 Russian Federation ........................8.9 Ukraine ..........................................9.2 Puerto Rico1 ..................................9.5 Kuwait ...........................................9.5 Oman ..........................................10.0 Bulgaria .......................................10.5 Romania ......................................10.7 Seychelles....................................11.2 Thailand .......................................11.4 China ...........................................12.1 Turkey..........................................12.2 Argentina .....................................12.7 Brazil............................................12.9 Mauritius ......................................13.0 Venezuela ....................................13.1 Libya ............................................13.2 El Salvador...................................13.6 Tunisia .........................................13.8 Mexico .........................................13.9 Peru .............................................14.1 73 74 75 76 76 76 79 80 81 82 83 84 85 86 86 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 127 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY SOURCES: The World Bank, World Development Indicators (accessed June 18, 2014); national sources 1 2012 450 The Global Competitiveness Report 2014–2015 VALUE Jamaica .......................................14.4 Armenia .......................................14.7 Albania.........................................15.0 Colombia .....................................15.1 Iran, Islamic Rep. .........................15.1 Moldova .......................................15.1 Panama .......................................15.9 Jordan .........................................16.4 Kazakhstan ..................................16.7 Barbados .....................................16.9 Algeria .........................................17.2 Georgia ........................................17.8 Egypt ...........................................17.9 Trinidad and Tobago....................18.4 Vietnam .......................................18.4 Suriname .....................................18.5 Paraguay .....................................18.8 Cape Verde .................................18.9 Honduras .....................................19.4 Nicaragua ....................................20.6 Dominican Republic .....................22.8 Mongolia ......................................23.0 Philippines ...................................23.5 Kyrgyz Republic ...........................23.6 Indonesia .....................................25.8 Guatemala ...................................26.5 Morocco ......................................26.8 Namibia .......................................28.3 Guyana ........................................29.0 Azerbaijan ....................................30.8 Bolivia ..........................................32.8 Bangladesh..................................33.1 South Africa .................................33.3 Nepal ...........................................33.6 Cambodia ....................................33.9 Bhutan .........................................35.7 Tanzania ......................................37.7 Rwanda .......................................38.8 Madagascar .................................40.9 Botswana ....................................41.0 Myanmar......................................41.1 Gabon .........................................42.4 India.............................................43.8 Senegal .......................................45.2 Uganda ........................................45.4 Malawi .........................................46.0 Yemen .........................................46.3 Ethiopia........................................46.5 Timor-Leste .................................47.8 Ghana ..........................................48.6 Kenya ..........................................48.7 Tajikistan ......................................49.0 Gambia, The ................................49.2 Lao PDR ......................................54.0 Swaziland ....................................55.7 Zimbabwe ....................................55.7 Zambia ........................................56.4 Haiti .............................................56.5 Cameroon....................................61.1 Mozambique ................................63.1 Mauritania ....................................64.8 Guinea .........................................65.2 Burkina Faso................................65.8 Burundi ........................................66.9 Pakistan .......................................69.3 Lesotho .......................................74.2 Côte d’Ivoire ................................76.2 Nigeria .........................................77.8 Mali ..............................................79.6 Chad............................................89.4 Angola .........................................99.5 Sierra Leone ..............................117.4 © 2014 World Economic Forum 2.2: Data Tables 4.08 Life expectancy Life expectancy at birth (years) 2013 RANK 1 2 3 4 5 6 7 8 9 10 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Hong Kong SAR ..........................83.5 Japan ..........................................83.1 Italy ..............................................82.9 Iceland .........................................82.9 Switzerland ..................................82.7 France .........................................82.6 Spain ...........................................82.4 Singapore ....................................82.1 Australia .......................................82.1 Israel ............................................81.7 Sweden .......................................81.7 United Kingdom ...........................81.5 Norway ........................................81.5 Luxembourg ................................81.4 Korea, Rep. .................................81.4 Canada ........................................81.2 New Zealand ...............................81.2 Netherlands .................................81.1 Austria .........................................80.9 Ireland..........................................80.9 Germany ......................................80.9 Malta ...........................................80.7 Greece .........................................80.6 Finland .........................................80.6 Belgium .......................................80.4 Portugal .......................................80.4 Slovenia .......................................80.1 Denmark ......................................80.1 Taiwan, China ..............................79.9 Lebanon ......................................79.8 Costa Rica ...................................79.7 Cyprus .........................................79.6 Chile ............................................79.6 United States ...............................78.7 Puerto Rico..................................78.5 Qatar ...........................................78.5 Czech Republic ...........................78.1 Panama .......................................77.4 Albania.........................................77.4 Mexico .........................................77.1 United Arab Emirates ...................77.0 Croatia .........................................76.9 Uruguay .......................................76.9 Poland .........................................76.8 Oman ..........................................76.6 Bahrain ........................................76.5 Estonia.........................................76.4 Slovak Republic ...........................76.1 Argentina .....................................76.0 Vietnam .......................................75.6 Saudi Arabia ................................75.5 Serbia ..........................................75.2 China ...........................................75.2 Libya ............................................75.2 Barbados .....................................75.1 Tunisia .........................................75.1 Hungary .......................................75.1 Macedonia, FYR ..........................75.0 Turkey..........................................74.9 Malaysia.......................................74.8 Montenegro .................................74.6 Romania ......................................74.6 Cape Verde .................................74.5 Peru .............................................74.5 Venezuela ....................................74.5 Nicaragua ....................................74.5 Armenia .......................................74.4 Kuwait .........................................74.4 Bulgaria .......................................74.3 Thailand .......................................74.2 Sri Lanka .....................................74.1 Georgia ........................................73.9 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE Lithuania ......................................73.9 Latvia ...........................................73.8 Colombia .....................................73.8 Iran, Islamic Rep. .........................73.8 Jordan .........................................73.7 Brazil............................................73.6 Mauritius ......................................73.6 Honduras .....................................73.5 Jamaica .......................................73.3 Dominican Republic .....................73.2 Seychelles....................................72.7 Paraguay .....................................72.2 El Salvador...................................72.1 Guatemala ...................................71.7 Cambodia ....................................71.4 Ukraine ........................................70.9 Egypt ...........................................70.9 Algeria .........................................70.9 Suriname .....................................70.8 Morocco ......................................70.6 Azerbaijan ....................................70.6 Indonesia .....................................70.6 Russian Federation ......................70.5 Bangladesh..................................70.3 Kyrgyz Republic ...........................70.0 Trinidad and Tobago....................69.8 Kazakhstan ..................................69.6 Moldova .......................................68.7 Philippines ...................................68.6 Nepal ...........................................68.0 Bhutan .........................................67.9 Lao PDR ......................................67.8 Mongolia ......................................67.3 Tajikistan ......................................67.3 Timor-Leste .................................67.0 Bolivia ..........................................66.9 Pakistan .......................................66.4 India.............................................66.2 Guyana ........................................66.0 Myanmar......................................64.9 Madagascar .................................64.2 Namibia .......................................63.9 Rwanda .......................................63.5 Senegal .......................................63.2 Gabon .........................................63.1 Ethiopia........................................63.0 Yemen .........................................62.9 Haiti .............................................62.7 Mauritania ....................................61.4 Kenya ..........................................61.1 Ghana ..........................................60.9 Tanzania ......................................60.8 Uganda ........................................58.6 Gambia, The ................................58.6 Zimbabwe ....................................58.0 Zambia ........................................57.0 South Africa .................................56.1 Burkina Faso................................55.9 Guinea .........................................55.8 Malawi .........................................54.7 Mali ..............................................54.6 Cameroon....................................54.6 Burundi ........................................53.6 Nigeria .........................................52.1 Angola .........................................51.5 Chad............................................50.7 Côte d’Ivoire ................................50.4 Mozambique ................................49.8 Swaziland ....................................48.9 Lesotho .......................................48.8 Botswana ....................................47.0 Sierra Leone ................................45.3 SOURCES: The World Bank, World Development Indicators (accessed June 18, 2014); national sources © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 451 2.2: Data Tables 4.09 Quality of primary education In your country, how would you assess the quality of primary schools? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Finland ...........................................6.7 Belgium .........................................6.2 Singapore ......................................6.0 Switzerland ....................................5.9 Barbados .......................................5.9 New Zealand .................................5.9 Ireland............................................5.8 Netherlands ...................................5.7 Qatar .............................................5.6 Japan ............................................5.5 Canada ..........................................5.5 Malta .............................................5.5 United Arab Emirates .....................5.4 Cyprus ...........................................5.4 Estonia...........................................5.4 Lebanon ........................................5.3 Malaysia.........................................5.3 Taiwan, China ................................5.3 Slovenia .........................................5.2 Iceland ...........................................5.1 Australia .........................................5.1 Germany ........................................5.1 Norway ..........................................5.0 Lithuania ........................................5.0 Luxembourg ..................................5.0 Latvia .............................................5.0 Austria ...........................................5.0 Hong Kong SAR ............................4.9 Montenegro ...................................4.9 United Kingdom .............................4.9 France ...........................................4.9 Sri Lanka .......................................4.8 Portugal .........................................4.8 Italy ................................................4.7 Denmark ........................................4.7 United States .................................4.7 Guyana ..........................................4.7 Sweden .........................................4.7 Costa Rica .....................................4.7 Ukraine ..........................................4.7 Croatia ...........................................4.6 Seychelles......................................4.6 Trinidad and Tobago......................4.6 Korea, Rep. ...................................4.5 Mauritius ........................................4.5 Czech Republic .............................4.5 Bahrain ..........................................4.5 Indonesia .......................................4.4 Swaziland ......................................4.4 Bulgaria .........................................4.4 Slovak Republic .............................4.4 Jordan ...........................................4.4 Poland ...........................................4.3 Zimbabwe ......................................4.3 Albania...........................................4.3 Macedonia, FYR ............................4.3 Russian Federation ........................4.2 Bhutan ...........................................4.2 China .............................................4.2 Philippines .....................................4.2 Hungary .........................................4.2 Spain .............................................4.1 Gambia, The ..................................4.1 Kazakhstan ....................................4.1 Romania ........................................4.1 Lesotho .........................................4.1 Mongolia ........................................4.0 Cape Verde ...................................4.0 Saudi Arabia ..................................4.0 Iran, Islamic Rep. ...........................4.0 Suriname .......................................4.0 Tunisia ...........................................3.9 SOURCE: MEAN 3.9 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 452 The Global Competitiveness Report 2014–2015 VALUE Oman ............................................3.8 Greece ...........................................3.8 Jamaica .........................................3.8 Moldova .........................................3.8 Zambia ..........................................3.8 Serbia ............................................3.8 Kenya ............................................3.8 Puerto Rico....................................3.7 Cameroon......................................3.7 Rwanda .........................................3.7 Armenia .........................................3.7 Lao PDR ........................................3.7 Botswana ......................................3.7 Israel ..............................................3.7 Tajikistan ........................................3.7 India...............................................3.6 Nepal .............................................3.6 Thailand .........................................3.6 Vietnam .........................................3.5 Georgia ..........................................3.5 Panama .........................................3.5 Turkey............................................3.5 Ethiopia..........................................3.5 Gabon ...........................................3.3 Uruguay .........................................3.3 Senegal .........................................3.3 Chile ..............................................3.3 El Salvador.....................................3.3 Colombia .......................................3.3 Argentina .......................................3.3 Côte d’Ivoire ..................................3.2 Kuwait ...........................................3.2 Morocco ........................................3.1 Azerbaijan ......................................3.1 Namibia .........................................3.1 Bangladesh....................................3.1 Burkina Faso..................................3.1 Kyrgyz Republic .............................3.0 Bolivia ............................................3.0 Ghana ............................................3.0 Cambodia ......................................2.9 Venezuela ......................................2.9 Uganda ..........................................2.9 Honduras .......................................2.9 Sierra Leone ..................................2.9 Mexico ...........................................2.8 Pakistan .........................................2.8 Mali ................................................2.8 Algeria ...........................................2.8 Haiti ...............................................2.7 Madagascar ...................................2.6 Nigeria ...........................................2.6 Nicaragua ......................................2.6 Brazil..............................................2.6 Malawi ...........................................2.5 Libya ..............................................2.5 Mauritania ......................................2.5 Guatemala .....................................2.5 Burundi ..........................................2.5 Tanzania ........................................2.5 South Africa ...................................2.4 Chad..............................................2.3 Guinea ...........................................2.3 Peru ...............................................2.3 Myanmar........................................2.2 Dominican Republic .......................2.2 Mozambique ..................................2.2 Paraguay .......................................2.1 Egypt .............................................2.1 Timor-Leste ...................................2.0 Angola ...........................................2.0 Yemen ...........................................2.0 © 2014 World Economic Forum 1 MEAN 3.9 7 2.2: Data Tables 4.10 Primary education enrollment rate Net primary education enrollment rate 2012 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Singapore ..................................100.0 Canada2 ......................................99.9 Japan ..........................................99.9 China ...........................................99.9 Iran, Islamic Rep. .........................99.8 United Kingdom ...........................99.8 Spain ...........................................99.7 Uruguay8 .....................................99.5 Greece9 .......................................99.5 Sweden .......................................99.5 Norway ........................................99.4 Korea, Rep. .................................99.1 Tunisia .........................................98.9 Finland .........................................98.8 Belgium .......................................98.7 Rwanda .......................................98.7 Portugal .......................................98.6 Brazil............................................98.5 Nepal10 ........................................98.5 Iceland9 .......................................98.5 Netherlands .................................98.4 New Zealand ...............................98.4 Austria7 ........................................98.4 Cambodia ....................................98.4 Tajikistan ......................................98.4 Montenegro .................................98.4 Georgia ........................................98.3 France .........................................98.2 Vietnam .......................................98.1 Germany ......................................97.9 Ukraine ........................................97.9 Cyprus .........................................97.9 Denmark ......................................97.9 Mauritius ......................................97.8 Taiwan, China10 ...........................97.7 Latvia ...........................................97.7 Slovenia .......................................97.7 Tanzania6.....................................97.6 Morocco10 ...................................97.5 Mongolia ......................................97.3 Algeria .........................................97.3 Italy9 ............................................97.2 Cape Verde .................................97.2 Jordan .........................................97.1 Barbados9 ...................................97.1 Malawi7 ........................................96.9 Australia .......................................96.8 Israel9 ..........................................96.7 Poland .........................................96.6 Saudi Arabia10 .............................96.5 Bahrain1.......................................96.5 Oman ..........................................96.3 Mexico .........................................96.3 Russian Federation ......................96.2 Czech Republic9 ..........................96.0 Lao PDR ......................................95.9 Lithuania ......................................95.8 Thailand7 .....................................95.6 Zimbabwe ....................................95.6 Malaysia.......................................95.5 Argentina10 ..................................95.4 Ireland..........................................95.3 Trinidad and Tobago8 ..................95.2 Egypt9 .........................................95.1 Malta ...........................................95.1 Bulgaria .......................................95.0 Estonia.........................................94.7 Turkey..........................................94.0 Honduras .....................................94.0 Burundi8 ......................................94.0 Seychelles9 ..................................93.8 Sri Lanka .....................................93.8 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 n/a n/a n/a n/a COUNTRY/ECONOMY VALUE Peru9 ...........................................93.7 Zambia ........................................93.7 Hong Kong SAR ..........................93.5 El Salvador...................................93.4 Switzerland ..................................93.4 India9 ...........................................93.3 Lebanon ......................................93.2 Guatemala9..................................92.8 Chile ............................................92.7 Qatar4 ..........................................92.4 Venezuela ....................................92.3 Suriname9 ....................................92.2 Indonesia .....................................92.2 Kuwait5 ........................................92.1 Jamaica .......................................92.1 Luxembourg9 ...............................92.1 Costa Rica ...................................92.0 United States ...............................91.8 Nicaragua8 ...................................91.8 Bangladesh8 ................................91.5 Cameroon....................................91.5 Serbia ..........................................91.4 Hungary .......................................91.3 Albania3 .......................................91.2 Panama .......................................91.2 United Arab Emirates ...................91.2 Timor-Leste9 ................................91.1 Uganda9 ......................................90.9 Bhutan .........................................90.6 Kyrgyz Republic ...........................90.5 Croatia .........................................89.3 Azerbaijan ....................................89.1 Philippines7 ..................................88.2 Moldova .......................................87.9 Namibia .......................................87.7 Ghana10.......................................87.1 Macedonia, FYR ..........................86.5 Dominican Republic .....................86.5 Myanmar......................................86.4 Yemen .........................................86.3 Mozambique ................................86.2 Romania ......................................85.8 Angola9 ........................................85.7 Kazakhstan10 ...............................85.6 Ethiopia........................................85.4 South Africa .................................85.0 Swaziland5 ...................................84.7 Armenia5 ......................................84.1 Colombia .....................................83.9 Botswana7 ...................................83.8 Bolivia9 ........................................83.4 Paraguay9 ....................................81.9 Kenya7 .........................................81.8 Lesotho .......................................81.6 Puerto Rico9 ................................80.4 Haiti .............................................77.2 Madagascar3 ...............................77.1 Guinea .........................................74.4 Senegal .......................................73.3 Pakistan .......................................72.5 Guyana ........................................71.5 Gambia, The ................................70.9 Mauritania ....................................69.6 Mali ..............................................68.7 Burkina Faso................................66.4 Nigeria8 ........................................63.9 Chad9 ..........................................63.1 Côte d’Ivoire7...............................61.9 Gabon ...........................................n/a Libya ..............................................n/a Sierra Leone ..................................n/a Slovak Republic .............................n/a SOURCES: UNESCO Institute for Statistics, Data Centre (accessed May 21, 2014); Organisation for Economic Co-operation and Development (OECD), Education at a Glance 2013; Sistema de Información de tendencias Educativas de América Latina (SITEAL); national sources 1 1999 2 2000 3 2003 4 2005 5 2007 6 2008 7 2009 8 2010 © 2014 World Economic Forum 9 2011 10 2013 The Global Competitiveness Report 2014–2015 453 2014 World Economic Forum Data Tables Higher education and training 2.2: Data Tables 5.01 Secondary education enrollment rate Gross secondary education enrollment rate 2012 or most recent year available RANKCOUNTRY/ECONOMY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 VALUE RANKCOUNTRY/ECONOMY Australia .....................................135.5 Spain .........................................130.8 Netherlands ...............................129.9 Denmark ....................................124.7 New Zealand .............................119.5 Ireland........................................119.1 Saudi Arabia12 ...........................116.2 Portugal .....................................112.9 Qatar11 ......................................111.6 Norway ......................................111.1 France .......................................109.7 Iceland11 ....................................108.6 Greece11....................................107.9 Finland .......................................107.7 Belgium .....................................107.3 Singapore ..................................107.1 Estonia.......................................107.1 Lithuania ....................................105.9 Barbados11 ................................104.7 Libya6 ........................................104.3 Costa Rica .................................103.6 Mongolia ....................................103.5 Canada11 ...................................103.4 South Africa ...............................101.9 Japan ........................................101.8 Israel11 .......................................101.7 Hungary .....................................101.6 Seychelles11 ..............................101.3 Germany ....................................101.3 Luxembourg11 ...........................101.0 Guyana ......................................101.0 Zambia ......................................100.8 Italy11 .........................................100.7 Kuwait7 ......................................100.3 Azerbaijan ..................................100.3 Taiwan, China12 .........................100.3 Brazil11 ........................................99.4 Sri Lanka .....................................99.3 Croatia .........................................98.4 Sweden .......................................98.4 Ukraine ........................................97.8 Kazakhstan ..................................97.7 Latvia ...........................................97.7 Austria .........................................97.7 Poland .........................................97.7 Algeria11 ......................................97.6 Slovenia .......................................97.6 Korea, Rep. .................................97.2 Czech Republic ...........................96.6 Switzerland ..................................96.3 Armenia .......................................95.9 Mauritius ......................................95.9 Bahrain ........................................95.5 United Kingdom ...........................95.4 Cyprus .........................................95.3 Russian Federation ......................95.3 Romania ......................................95.0 Slovak Republic ...........................93.9 United States ...............................93.7 Oman ..........................................93.5 Bulgaria .......................................93.1 Colombia .....................................92.8 Cape Verde .................................92.7 United Arab Emirates6 .................92.3 Argentina11 ..................................91.9 Serbia ..........................................91.7 Tunisia11 ......................................91.1 Montenegro .................................90.9 Uruguay10 ....................................90.3 Peru .............................................89.8 Chile ............................................89.0 China ...........................................89.0 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 VALUE Hong Kong SAR ..........................88.7 Jamaica11 ....................................88.6 Moldova .......................................88.2 Kyrgyz Republic11 ........................88.2 Jordan .........................................87.8 Tajikistan ......................................87.0 Thailand .......................................87.0 Georgia9 ......................................86.8 Egypt ...........................................86.3 Malta ...........................................86.3 Iran, Islamic Rep. .........................86.3 Turkey..........................................86.1 Mexico .........................................85.7 Trinidad and Tobago4 ..................85.5 Venezuela ....................................85.4 Suriname11 ..................................85.4 Philippines9 ..................................84.6 Panama .......................................84.0 Macedonia, FYR ..........................82.8 Indonesia .....................................82.5 Albania8 .......................................82.4 Botswana8 ...................................81.7 Puerto Rico11...............................78.3 Bolivia11 .......................................77.3 Dominican Republic .....................75.9 Vietnam5 ......................................75.2 Lebanon ......................................74.0 Bhutan .........................................73.9 Honduras .....................................73.1 Paraguay11 ..................................69.6 El Salvador...................................69.2 Nicaragua10 .................................68.9 Morocco ......................................68.9 India11..........................................68.5 Haiti .............................................68.1 Malaysia11....................................67.2 Nepal12 ........................................66.6 Guatemala11 ................................65.1 Namibia7 ......................................64.8 Ghana12.......................................61.1 Kenya9 .........................................60.1 Swaziland11 .................................59.9 Gambia, The10 .............................57.5 Timor-Leste11 ..............................56.6 Gabon3 ........................................53.9 Bangladesh..................................53.6 Lesotho .......................................53.3 Zimbabwe ....................................51.9 Cameroon....................................50.4 Myanmar10 ..................................50.2 Yemen .........................................46.9 Lao PDR ......................................46.5 Cambodia8 ..................................45.0 Mali11 ...........................................44.5 Nigeria10 ......................................43.8 Senegal11 ....................................41.0 Guinea .........................................38.1 Madagascar .................................38.0 Pakistan .......................................36.6 Tanzania ......................................35.0 Malawi .........................................34.2 Rwanda .......................................31.8 Angola11 ......................................31.5 Ethiopia6 ......................................28.9 Burundi ........................................28.5 Uganda9 ......................................27.6 Mauritania ....................................26.8 Sierra Leone2 ...............................26.4 Burkina Faso................................25.9 Mozambique ................................25.9 Côte d’Ivoire1...............................24.3 Chad............................................22.8 SOURCES: UNESCO Institute for Statistics, Data Centre (accessed May 21, 2014); UNICEF Childinfo.org (accessed August 07, 2014); Sistema de Información de tendencias Educativas de América Latina (SITEAL); national sources 1 1999 2 2001 3 2002 4 2004 5 2005 456 The Global Competitiveness Report 2014–2015 6 2006 7 2007 8 2008 © 2014 World Economic Forum 9 2009 10 2010 11 2011 12 2013 2.2: Data Tables 5.02 Tertiary education enrollment rate Gross tertiary education enrollment rate 2012 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Greece11....................................114.0 Korea, Rep. .................................98.4 United States ...............................94.3 Finland .........................................93.7 Puerto Rico11...............................86.5 Australia .......................................86.3 Slovenia .......................................86.0 Spain ...........................................84.6 Taiwan, China12 ...........................83.9 Singapore ....................................81.3 Iceland11 ......................................80.9 New Zealand ...............................79.8 Ukraine ........................................79.7 Denmark ......................................79.6 Argentina11 ..................................78.6 Venezuela9...................................78.1 Netherlands .................................77.3 Estonia.........................................76.7 Russian Federation ......................76.1 Chile ............................................74.4 Norway ........................................74.1 Lithuania ......................................73.9 Poland .........................................73.2 Austria .........................................72.4 Ireland..........................................71.2 Belgium .......................................70.8 Sweden .......................................70.0 Turkey..........................................69.4 Portugal .......................................68.9 Israel11 .........................................65.8 Latvia ...........................................65.1 Czech Republic ...........................64.2 Uruguay10 ....................................63.2 Bulgaria .......................................62.7 Italy ..............................................62.5 United Kingdom ...........................61.9 Germany ......................................61.7 Croatia .........................................61.6 Japan ..........................................61.5 Mongolia ......................................61.1 Libya3 ..........................................60.9 Barbados11 ..................................60.8 Hong Kong SAR ..........................59.7 Hungary .......................................59.6 Canada1 ......................................58.9 France .........................................58.3 Switzerland ..................................55.6 Montenegro10 ..............................55.5 Albania.........................................55.5 Iran, Islamic Rep. .........................55.2 Slovak Republic ...........................55.1 Serbia ..........................................52.4 Romania11 ...................................51.6 Thailand12 ....................................51.2 Saudi Arabia ................................50.9 Costa Rica ...................................46.7 Jordan .........................................46.6 Lebanon ......................................46.3 Armenia .......................................46.0 Cyprus .........................................45.9 Colombia .....................................45.0 Kazakhstan ..................................44.5 Peru10 ..........................................42.6 Panama11 ....................................41.8 Kyrgyz Republic11 ........................41.3 Malta ...........................................41.2 Kuwait .........................................40.7 Mauritius ......................................40.3 Moldova .......................................40.1 Macedonia, FYR ..........................38.5 Bolivia7 ........................................37.7 Malaysia11....................................36.0 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 n/a n/a n/a COUNTRY/ECONOMY VALUE Tunisia .........................................35.2 Paraguay10 ..................................34.5 Dominican Republic11 ..................34.1 Bahrain ........................................33.5 Indonesia .....................................31.5 Algeria .........................................31.5 Jamaica .......................................30.8 Egypt ...........................................30.1 Mexico .........................................29.0 Philippines9 ..................................28.2 Oman11 .......................................28.1 Georgia ........................................27.9 China ...........................................26.7 El Salvador...................................25.5 India.............................................24.8 Vietnam .......................................24.6 Tajikistan ......................................22.5 Cape Verde .................................20.6 Azerbaijan ....................................20.4 Honduras .....................................20.4 South Africa .................................19.2 Nicaragua11 .................................19.0 Luxembourg10 .............................18.2 Guatemala7..................................17.9 Timor-Leste10 ..............................17.7 Sri Lanka .....................................17.0 Lao PDR ......................................16.7 Morocco11 ...................................16.2 Cambodia11 .................................15.8 Nepal11 ........................................14.5 Myanmar11 ..................................13.8 Bangladesh11...............................13.2 Guyana ........................................12.9 Ghana ..........................................12.2 Qatar ...........................................12.1 Suriname2 ....................................12.1 Trinidad and Tobago4 ..................12.0 Cameroon11.................................11.9 Lesotho .......................................10.8 Nigeria5 ........................................10.4 Yemen11 ......................................10.3 Guinea ...........................................9.9 Pakistan .........................................9.5 Bhutan ...........................................9.5 Namibia8 ........................................9.3 Uganda11 .......................................9.1 Gabon3 ..........................................8.5 Senegal10 ......................................7.6 Angola11 ........................................7.5 Mali ................................................7.5 Botswana6 .....................................7.4 Rwanda .........................................7.2 Swaziland11 ...................................6.0 Zimbabwe ......................................5.9 Ethiopia11 ......................................5.4 Mauritania ......................................5.1 Mozambique11 ...............................4.9 Burkina Faso..................................4.6 Côte d’Ivoire ..................................4.5 Madagascar ...................................4.2 Kenya9 ...........................................4.0 Tanzania ........................................3.9 Gambia, The11 ...............................3.4 Burundi10 .......................................3.2 Zambia1 .........................................2.4 Chad11 ..........................................2.3 Sierra Leone2 .................................2.0 Seychelles......................................1.4 Malawi11 ........................................0.8 Brazil..............................................n/a Haiti ...............................................n/a United Arab Emirates .....................n/a SOURCES: UNESCO Institute for Statistics, Data Centre (accessed May 21, 2014); national sources 1 2000 2 2002 3 2003 4 2004 5 2005 6 2006 7 2007 8 2008 © 2014 World Economic Forum 9 2009 10 2010 11 2011 12 2013 The Global Competitiveness Report 2014–2015 457 2.2: Data Tables 5.03 Quality of the education system How well does the education system in your country meet the needs of a competitive economy? [1 = not well at all; 7 = extremely well] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................6.0 Finland ...........................................5.9 Qatar .............................................5.8 Singapore ......................................5.8 Ireland............................................5.4 Belgium .........................................5.3 New Zealand .................................5.3 Netherlands ...................................5.3 United Arab Emirates .....................5.3 Malaysia.........................................5.3 Canada ..........................................5.2 Germany ........................................5.2 Cyprus ...........................................5.2 Norway ..........................................5.0 Barbados .......................................5.0 Malta .............................................5.0 Iceland ...........................................4.9 Denmark ........................................4.8 Australia .........................................4.8 Hong Kong SAR ............................4.8 Costa Rica .....................................4.7 Sri Lanka .......................................4.6 United Kingdom .............................4.6 Jordan ...........................................4.6 Luxembourg ..................................4.6 Sweden .........................................4.6 United States .................................4.6 Lebanon ........................................4.6 Philippines .....................................4.5 Kenya ............................................4.5 Austria ...........................................4.5 Indonesia .......................................4.5 Japan ............................................4.4 France ...........................................4.4 Estonia...........................................4.4 Zambia ..........................................4.3 Seychelles......................................4.3 Bahrain ..........................................4.3 Gambia, The ..................................4.3 Portugal .........................................4.3 Montenegro ...................................4.3 Mauritius ........................................4.2 Zimbabwe ......................................4.2 Trinidad and Tobago......................4.2 India...............................................4.2 Albania...........................................4.1 Saudi Arabia ..................................4.1 Slovenia .........................................4.1 Lesotho .........................................4.1 Rwanda .........................................4.0 Bhutan ...........................................4.0 China .............................................4.0 Macedonia, FYR ............................4.0 Guyana ..........................................3.9 Lithuania ........................................3.9 Taiwan, China ................................3.9 Cape Verde ...................................3.9 Tajikistan ........................................3.8 Ghana ............................................3.8 Lao PDR ........................................3.8 Romania ........................................3.8 Cameroon......................................3.8 El Salvador.....................................3.8 Swaziland ......................................3.8 Latvia .............................................3.8 Senegal .........................................3.8 Italy ................................................3.7 Tunisia ...........................................3.7 Israel ..............................................3.7 Jamaica .........................................3.7 Chile ..............................................3.7 Ukraine ..........................................3.7 SOURCE: MEAN 3.7 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 458 The Global Competitiveness Report 2014–2015 VALUE Korea, Rep. ...................................3.6 Ethiopia..........................................3.6 Nepal .............................................3.6 Kazakhstan ....................................3.6 Czech Republic .............................3.6 Uganda ..........................................3.6 Poland ...........................................3.6 Côte d’Ivoire ..................................3.6 Oman ............................................3.5 Botswana ......................................3.5 Panama .........................................3.5 Russian Federation ........................3.5 Puerto Rico....................................3.5 Armenia .........................................3.5 Thailand .........................................3.4 Spain .............................................3.4 Turkey............................................3.4 Colombia .......................................3.4 Bulgaria .........................................3.4 Pakistan .........................................3.4 Bolivia ............................................3.3 Vietnam .........................................3.3 Bangladesh....................................3.3 Hungary .........................................3.3 Croatia ...........................................3.2 Georgia ..........................................3.2 Malawi ...........................................3.2 Honduras .......................................3.2 Cambodia ......................................3.2 Morocco ........................................3.2 Moldova .........................................3.2 Azerbaijan ......................................3.1 Kuwait ...........................................3.1 Serbia ............................................3.1 Namibia .........................................3.1 Iran, Islamic Rep. ...........................3.0 Tanzania ........................................3.0 Mali ................................................3.0 Greece ...........................................3.0 Sierra Leone ..................................3.0 Argentina .......................................3.0 Algeria ...........................................3.0 Madagascar ...................................3.0 Mongolia ........................................2.9 Uruguay .........................................2.9 Suriname .......................................2.9 Gabon ...........................................2.9 Burkina Faso..................................2.9 Kyrgyz Republic .............................2.9 Nigeria ...........................................2.9 Mexico ...........................................2.8 Mozambique ..................................2.8 Slovak Republic .............................2.8 Brazil..............................................2.7 Guatemala .....................................2.7 Mauritania ......................................2.7 Myanmar........................................2.7 Nicaragua ......................................2.7 Venezuela ......................................2.6 Dominican Republic .......................2.6 Burundi ..........................................2.6 Peru ...............................................2.5 Chad..............................................2.5 Timor-Leste ...................................2.4 Guinea ...........................................2.4 Haiti ...............................................2.3 Paraguay .......................................2.3 South Africa ...................................2.2 Egypt .............................................2.2 Angola ...........................................2.1 Yemen ...........................................1.9 Libya ..............................................1.9 © 2014 World Economic Forum 1 MEAN 3.7 7 2.2: Data Tables 5.04 Quality of math and science education In your country, how would you assess the quality of math and science education? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Singapore ......................................6.3 Finland ...........................................6.3 Belgium .........................................6.0 Switzerland ....................................5.9 Lebanon ........................................5.7 Qatar .............................................5.5 Barbados .......................................5.5 Netherlands ...................................5.4 Hong Kong SAR ............................5.4 Cyprus ...........................................5.4 United Arab Emirates .....................5.3 New Zealand .................................5.3 Malta .............................................5.3 Taiwan, China ................................5.3 Slovenia .........................................5.2 Malaysia.........................................5.2 France ...........................................5.2 Estonia...........................................5.1 Canada ..........................................5.1 Germany ........................................5.1 Japan ............................................5.1 Côte d’Ivoire ..................................5.1 Lithuania ........................................5.1 Ireland............................................5.0 Montenegro ...................................4.9 Croatia ...........................................4.9 Latvia .............................................4.9 Luxembourg ..................................4.8 Sri Lanka .......................................4.8 Ukraine ..........................................4.8 Romania ........................................4.7 Tunisia ...........................................4.7 Iceland ...........................................4.7 Korea, Rep. ...................................4.7 Trinidad and Tobago......................4.7 Indonesia .......................................4.6 Austria ...........................................4.6 Australia .........................................4.6 Jordan ...........................................4.6 Mauritius ........................................4.6 Norway ..........................................4.5 Denmark ........................................4.5 Portugal .........................................4.5 Iran, Islamic Rep. ...........................4.5 Italy ................................................4.5 Mongolia ........................................4.5 Costa Rica .....................................4.4 Macedonia, FYR ............................4.4 Sweden .........................................4.4 Poland ...........................................4.4 United States .................................4.4 Ghana ............................................4.4 Serbia ............................................4.3 Bulgaria .........................................4.3 Guyana ..........................................4.3 China .............................................4.3 Seychelles......................................4.3 Bahrain ..........................................4.3 Russian Federation ........................4.3 Hungary .........................................4.3 Greece ...........................................4.3 Zambia ..........................................4.3 United Kingdom .............................4.3 Albania...........................................4.3 Cameroon......................................4.3 Zimbabwe ......................................4.2 India...............................................4.2 Morocco ........................................4.2 Armenia .........................................4.2 Philippines .....................................4.1 Rwanda .........................................4.1 Kazakhstan ....................................4.1 SOURCE: 1 MEAN 4.0 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.0 7 Saudi Arabia ..................................4.1 Czech Republic .............................4.1 Slovak Republic .............................4.0 Kenya ............................................4.0 Senegal .........................................4.0 Swaziland ......................................4.0 Israel ..............................................4.0 Moldova .........................................4.0 Thailand .........................................3.9 Vietnam .........................................3.9 Lao PDR ........................................3.9 Bhutan ...........................................3.9 Spain .............................................3.9 Cape Verde ...................................3.9 Nepal .............................................3.8 Burkina Faso..................................3.8 Suriname .......................................3.8 Lesotho .........................................3.8 Puerto Rico....................................3.8 Tajikistan ........................................3.8 Madagascar ...................................3.7 Ethiopia..........................................3.6 Oman ............................................3.6 Botswana ......................................3.6 Gambia, The ..................................3.6 Turkey............................................3.5 Chile ..............................................3.5 Burundi ..........................................3.5 Jamaica .........................................3.5 Kuwait ...........................................3.4 El Salvador.....................................3.4 Pakistan .........................................3.4 Georgia ..........................................3.4 Bangladesh....................................3.4 Panama .........................................3.3 Azerbaijan ......................................3.3 Colombia .......................................3.3 Gabon ...........................................3.3 Cambodia ......................................3.2 Argentina .......................................3.2 Algeria ...........................................3.2 Mali ................................................3.1 Guinea ...........................................3.1 Bolivia ............................................3.1 Uganda ..........................................3.1 Venezuela ......................................3.1 Malawi ...........................................3.0 Kyrgyz Republic .............................3.0 Honduras .......................................2.9 Uruguay .........................................2.9 Mauritania ......................................2.9 Haiti ...............................................2.9 Libya ..............................................2.9 Namibia .........................................2.9 Chad..............................................2.8 Mexico ...........................................2.7 Myanmar........................................2.7 Nicaragua ......................................2.7 Brazil..............................................2.6 Nigeria ...........................................2.6 Mozambique ..................................2.6 Sierra Leone ..................................2.5 Guatemala .....................................2.5 Egypt .............................................2.4 Tanzania ........................................2.4 Paraguay .......................................2.3 Peru ...............................................2.3 Yemen ...........................................2.3 Timor-Leste ...................................2.1 Dominican Republic .......................2.1 Angola ...........................................1.9 South Africa ...................................1.9 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 459 2.2: Data Tables 5.05 Quality of management schools In your country, how would you assess the quality of business schools? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................6.2 Belgium .........................................6.0 Spain .............................................5.9 Portugal .........................................5.9 United Kingdom .............................5.8 Singapore ......................................5.8 Canada ..........................................5.8 France ...........................................5.7 Netherlands ...................................5.7 Qatar .............................................5.6 United States .................................5.6 Finland ...........................................5.6 Chile ..............................................5.4 Hong Kong SAR ............................5.4 Ireland............................................5.3 Costa Rica .....................................5.3 Lebanon ........................................5.3 United Arab Emirates .....................5.3 Norway ..........................................5.3 Iceland ...........................................5.2 Denmark ........................................5.2 New Zealand .................................5.2 Sweden .........................................5.2 South Africa ...................................5.2 Malaysia.........................................5.1 Italy ................................................5.1 Australia .........................................5.1 Barbados .......................................5.0 Germany ........................................5.0 Cyprus ...........................................5.0 Malta .............................................4.9 Israel ..............................................4.9 Trinidad and Tobago......................4.8 Argentina .......................................4.8 Sri Lanka .......................................4.8 Taiwan, China ................................4.8 Côte d’Ivoire ..................................4.8 Montenegro ...................................4.8 Luxembourg ..................................4.7 Philippines .....................................4.7 Guatemala .....................................4.7 Zambia ..........................................4.7 Jordan ...........................................4.7 Kenya ............................................4.7 Puerto Rico....................................4.6 Guyana ..........................................4.6 Austria ...........................................4.6 Estonia...........................................4.6 Indonesia .......................................4.6 Ghana ............................................4.6 Senegal .........................................4.6 Latvia .............................................4.6 Brazil..............................................4.5 Morocco ........................................4.5 Mauritius ........................................4.4 India...............................................4.4 Jamaica .........................................4.4 Cameroon......................................4.4 Bahrain ..........................................4.4 Lithuania ........................................4.4 Tunisia ...........................................4.4 Slovenia .........................................4.4 Seychelles......................................4.3 El Salvador.....................................4.3 Uruguay .........................................4.3 Hungary .........................................4.3 Pakistan .........................................4.3 Czech Republic .............................4.3 Colombia .......................................4.3 Mexico ...........................................4.2 Panama .........................................4.2 Japan ............................................4.2 SOURCE: MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 460 The Global Competitiveness Report 2014–2015 VALUE Korea, Rep. ...................................4.2 Romania ........................................4.2 Gambia, The ..................................4.2 Croatia ...........................................4.2 Peru ...............................................4.2 Saudi Arabia ..................................4.2 Lao PDR ........................................4.1 Zimbabwe ......................................4.1 Thailand .........................................4.1 Venezuela ......................................4.1 Suriname .......................................4.0 Poland ...........................................4.0 China .............................................3.9 Albania...........................................3.9 Kuwait ...........................................3.9 Ukraine ..........................................3.9 Greece ...........................................3.9 Macedonia, FYR ............................3.9 Lesotho .........................................3.9 Kazakhstan ....................................3.9 Madagascar ...................................3.8 Nepal .............................................3.8 Ethiopia..........................................3.8 Uganda ..........................................3.8 Burkina Faso..................................3.8 Georgia ..........................................3.8 Rwanda .........................................3.8 Turkey............................................3.8 Nigeria ...........................................3.8 Slovak Republic .............................3.8 Iran, Islamic Rep. ...........................3.8 Russian Federation ........................3.7 Bangladesh....................................3.7 Nicaragua ......................................3.7 Cape Verde ...................................3.7 Tajikistan ........................................3.6 Dominican Republic .......................3.6 Bhutan ...........................................3.6 Honduras .......................................3.6 Botswana ......................................3.6 Oman ............................................3.6 Serbia ............................................3.6 Algeria ...........................................3.5 Armenia .........................................3.5 Gabon ...........................................3.5 Namibia .........................................3.4 Vietnam .........................................3.4 Mali ................................................3.4 Bulgaria .........................................3.4 Swaziland ......................................3.4 Cambodia ......................................3.3 Azerbaijan ......................................3.3 Moldova .........................................3.2 Tanzania ........................................3.2 Malawi ...........................................3.2 Sierra Leone ..................................3.1 Paraguay .......................................3.1 Haiti ...............................................3.1 Bolivia ............................................3.0 Mongolia ........................................2.9 Kyrgyz Republic .............................2.9 Mozambique ..................................2.9 Yemen ...........................................2.9 Mauritania ......................................2.8 Chad..............................................2.7 Burundi ..........................................2.6 Myanmar........................................2.6 Angola ...........................................2.3 Guinea ...........................................2.3 Libya ..............................................2.3 Timor-Leste ...................................2.1 Egypt .............................................2.0 © 2014 World Economic Forum 1 MEAN 4.2 7 2.2: Data Tables 5.06 Internet access in schools In your country, how widespread is Internet access in schools? [1 = nonexistent; 7 = extremely widespread] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Iceland ...........................................6.7 Estonia...........................................6.6 Norway ..........................................6.5 Finland ...........................................6.5 Netherlands ...................................6.4 Singapore ......................................6.4 United Kingdom .............................6.3 Sweden .........................................6.3 Canada ..........................................6.2 Korea, Rep. ...................................6.2 Australia .........................................6.2 Taiwan, China ................................6.1 Switzerland ....................................6.1 Luxembourg ..................................6.1 United States .................................6.1 Hong Kong SAR ............................6.0 Uruguay .........................................6.0 United Arab Emirates .....................6.0 New Zealand .................................6.0 Slovenia .........................................6.0 Latvia .............................................6.0 Denmark ........................................6.0 Lithuania ........................................5.9 Belgium .........................................5.9 Qatar .............................................5.9 Malta .............................................5.8 Czech Republic .............................5.8 Portugal .........................................5.7 Austria ...........................................5.6 Cyprus ...........................................5.6 Slovak Republic .............................5.5 Israel ..............................................5.5 Macedonia, FYR ............................5.5 Malaysia.........................................5.4 Hungary .........................................5.4 Ireland............................................5.4 Japan ............................................5.3 China .............................................5.3 Bahrain ..........................................5.2 Panama .........................................5.1 Russian Federation ........................5.1 Chile ..............................................5.1 Germany ........................................5.0 Barbados .......................................5.0 Bulgaria .........................................5.0 Jordan ...........................................5.0 Vietnam .........................................5.0 Indonesia .......................................4.9 Moldova .........................................4.9 Poland ...........................................4.9 Spain .............................................4.8 Croatia ...........................................4.8 Romania ........................................4.8 Puerto Rico....................................4.8 France ...........................................4.7 Kazakhstan ....................................4.7 Costa Rica .....................................4.7 Turkey............................................4.7 Georgia ..........................................4.6 Oman ............................................4.6 Thailand .........................................4.6 Mongolia ........................................4.6 Saudi Arabia ..................................4.6 Trinidad and Tobago......................4.5 Mauritius ........................................4.4 Philippines .....................................4.3 Ukraine ..........................................4.3 Armenia .........................................4.3 Azerbaijan ......................................4.3 Rwanda .........................................4.3 Guyana ..........................................4.2 Serbia ............................................4.2 SOURCE: 1 MEAN 4.3 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.3 7 Montenegro ...................................4.2 Seychelles......................................4.2 Albania...........................................4.1 Argentina .......................................4.1 Greece ...........................................4.1 Tajikistan ........................................4.1 Kenya ............................................4.1 Kuwait ...........................................4.1 El Salvador.....................................4.0 Colombia .......................................4.0 Jamaica .........................................4.0 Bhutan ...........................................3.9 Senegal .........................................3.9 Gambia, The ..................................3.8 India...............................................3.8 Lao PDR ........................................3.8 Pakistan .........................................3.8 Cape Verde ...................................3.8 Italy ................................................3.8 Lebanon ........................................3.7 Mexico ...........................................3.7 Peru ...............................................3.7 Kyrgyz Republic .............................3.6 Tunisia ...........................................3.6 Zambia ..........................................3.6 Brazil..............................................3.6 Bolivia ............................................3.6 Cambodia ......................................3.6 Sri Lanka .......................................3.6 Nepal .............................................3.5 Venezuela ......................................3.5 Dominican Republic .......................3.5 Honduras .......................................3.5 Namibia .........................................3.5 Guatemala .....................................3.4 Botswana ......................................3.4 Mali ................................................3.4 Côte d’Ivoire ..................................3.4 Nigeria ...........................................3.4 Morocco ........................................3.3 Ghana ............................................3.2 Lesotho .........................................3.2 Ethiopia..........................................3.2 Uganda ..........................................3.2 South Africa ...................................3.2 Zimbabwe ......................................3.1 Swaziland ......................................3.1 Bangladesh....................................3.1 Nicaragua ......................................3.0 Paraguay .......................................2.9 Mozambique ..................................2.8 Tanzania ........................................2.8 Suriname .......................................2.7 Iran, Islamic Rep. ...........................2.7 Cameroon......................................2.7 Malawi ...........................................2.7 Haiti ...............................................2.6 Timor-Leste ...................................2.5 Egypt .............................................2.5 Angola ...........................................2.4 Algeria ...........................................2.4 Sierra Leone ..................................2.4 Madagascar ...................................2.4 Gabon ...........................................2.2 Myanmar........................................2.1 Mauritania ......................................2.1 Guinea ...........................................1.8 Burkina Faso..................................1.8 Yemen ...........................................1.7 Burundi ..........................................1.7 Libya ..............................................1.6 Chad..............................................1.5 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 461 2.2: Data Tables 5.07 Local availability of specialized research and training services In your country, to what extent are high-quality, specialized training services available? [1 = not available at all; 7 = widely available] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................6.5 Netherlands ...................................6.1 Germany ........................................6.0 Belgium .........................................6.0 Austria ...........................................5.9 Finland ...........................................5.9 United Kingdom .............................5.7 United States .................................5.6 Japan ............................................5.6 Puerto Rico....................................5.6 Norway ..........................................5.5 Singapore ......................................5.5 Malaysia.........................................5.4 Taiwan, China ................................5.4 Sweden .........................................5.4 Hong Kong SAR ............................5.4 United Arab Emirates .....................5.4 Denmark ........................................5.3 Qatar .............................................5.3 Canada ..........................................5.3 France ...........................................5.3 Luxembourg ..................................5.3 Australia .........................................5.2 Portugal .........................................5.1 Ireland............................................5.0 New Zealand .................................4.9 Czech Republic .............................4.9 Costa Rica .....................................4.9 Estonia...........................................4.8 Italy ................................................4.8 Poland ...........................................4.8 Kenya ............................................4.8 Lithuania ........................................4.8 Cyprus ...........................................4.7 Spain .............................................4.7 Korea, Rep. ...................................4.7 Barbados .......................................4.7 Israel ..............................................4.6 Iceland ...........................................4.6 Malta .............................................4.6 Jordan ...........................................4.6 Bahrain ..........................................4.5 El Salvador.....................................4.5 South Africa ...................................4.5 Slovak Republic .............................4.5 Chile ..............................................4.5 Brazil..............................................4.5 Zambia ..........................................4.4 Philippines .....................................4.4 Indonesia .......................................4.4 Slovenia .........................................4.4 Mauritius ........................................4.4 Latvia .............................................4.4 Guatemala .....................................4.4 Sri Lanka .......................................4.4 Senegal .........................................4.4 Turkey............................................4.4 China .............................................4.4 Russian Federation ........................4.3 Mexico ...........................................4.3 Trinidad and Tobago......................4.3 Côte d’Ivoire ..................................4.3 Panama .........................................4.2 India...............................................4.2 Argentina .......................................4.2 Kazakhstan ....................................4.2 Lebanon ........................................4.2 Romania ........................................4.2 Thailand .........................................4.2 Croatia ...........................................4.1 Colombia .......................................4.1 Morocco ........................................4.1 SOURCE: MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 462 The Global Competitiveness Report 2014–2015 VALUE Saudi Arabia ..................................4.1 Dominican Republic .......................4.1 Uruguay .........................................4.1 Guyana ..........................................4.0 Cameroon......................................4.0 Gambia, The ..................................4.0 Azerbaijan ......................................4.0 Honduras .......................................4.0 Tajikistan ........................................3.9 Lesotho .........................................3.9 Lao PDR ........................................3.9 Ukraine ..........................................3.9 Hungary .........................................3.9 Jamaica .........................................3.9 Peru ...............................................3.9 Iran, Islamic Rep. ...........................3.9 Tunisia ...........................................3.8 Greece ...........................................3.8 Albania...........................................3.8 Ghana ............................................3.8 Macedonia, FYR ............................3.8 Oman ............................................3.8 Nigeria ...........................................3.7 Rwanda .........................................3.7 Bolivia ............................................3.7 Uganda ..........................................3.7 Seychelles......................................3.6 Kuwait ...........................................3.6 Pakistan .........................................3.6 Namibia .........................................3.6 Montenegro ...................................3.6 Cambodia ......................................3.6 Burkina Faso..................................3.5 Serbia ............................................3.5 Zimbabwe ......................................3.5 Cape Verde ...................................3.5 Tanzania ........................................3.5 Kyrgyz Republic .............................3.5 Bulgaria .........................................3.4 Mozambique ..................................3.4 Malawi ...........................................3.4 Botswana ......................................3.4 Mali ................................................3.4 Georgia ..........................................3.4 Madagascar ...................................3.4 Vietnam .........................................3.3 Moldova .........................................3.3 Armenia .........................................3.3 Swaziland ......................................3.3 Ethiopia..........................................3.3 Nicaragua ......................................3.3 Egypt .............................................3.2 Sierra Leone ..................................3.2 Algeria ...........................................3.1 Bhutan ...........................................3.1 Mauritania ......................................3.1 Bangladesh....................................3.1 Suriname .......................................3.1 Nepal .............................................3.1 Venezuela ......................................3.1 Paraguay .......................................3.0 Gabon ...........................................3.0 Myanmar........................................2.9 Yemen ...........................................2.9 Mongolia ........................................2.8 Burundi ..........................................2.8 Guinea ...........................................2.8 Haiti ...............................................2.7 Timor-Leste ...................................2.7 Chad..............................................2.7 Libya ..............................................2.5 Angola ...........................................2.5 © 2014 World Economic Forum 1 MEAN 4.2 7 2.2: Data Tables 5.08 Extent of staff training In your country, to what extent do companies invest in training and employee development? [1 = not at all; 7 = to a great extent] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Switzerland ....................................5.7 Japan ............................................5.4 Luxembourg ..................................5.4 Malaysia.........................................5.3 Finland ...........................................5.3 Qatar .............................................5.3 Singapore ......................................5.3 Norway ..........................................5.2 Belgium .........................................5.1 Sweden .........................................5.1 United Arab Emirates .....................5.1 Netherlands ...................................5.0 Germany ........................................5.0 United States .................................5.0 Denmark ........................................4.9 Puerto Rico....................................4.9 New Zealand .................................4.9 South Africa ...................................4.9 Austria ...........................................4.8 Ireland............................................4.8 Costa Rica .....................................4.7 Canada ..........................................4.7 United Kingdom .............................4.7 Indonesia .......................................4.7 Iceland ...........................................4.7 Hong Kong SAR ............................4.6 Philippines .....................................4.6 Guatemala .....................................4.6 Bahrain ..........................................4.5 Australia .........................................4.5 France ...........................................4.5 Albania...........................................4.4 Latvia .............................................4.4 Kenya ............................................4.4 Mauritius ........................................4.4 Estonia...........................................4.4 Thailand .........................................4.4 Honduras .......................................4.4 Barbados .......................................4.4 Malta .............................................4.4 Taiwan, China ................................4.4 Gambia, The ..................................4.3 Cyprus ...........................................4.3 Brazil..............................................4.3 Lao PDR ........................................4.3 China .............................................4.3 Panama .........................................4.3 Nigeria ...........................................4.3 Oman ............................................4.3 Lithuania ........................................4.2 Trinidad and Tobago......................4.2 Chile ..............................................4.2 Korea, Rep. ...................................4.2 Portugal .........................................4.2 Czech Republic .............................4.1 Sri Lanka .......................................4.1 Namibia .........................................4.1 Jordan ...........................................4.1 Jamaica .........................................4.1 Saudi Arabia ..................................4.1 Ghana ............................................4.1 Kazakhstan ....................................4.1 Zambia ..........................................4.1 Guyana ..........................................4.0 Malawi ...........................................4.0 Rwanda .........................................4.0 Seychelles......................................4.0 Botswana ......................................4.0 Cameroon......................................4.0 Côte d’Ivoire ..................................4.0 El Salvador.....................................4.0 Poland ...........................................4.0 SOURCE: 1 MEAN 4.0 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.0 7 Mongolia ........................................4.0 Mexico ...........................................4.0 Lesotho .........................................4.0 Israel ..............................................4.0 India...............................................3.9 Senegal .........................................3.9 Swaziland ......................................3.9 Uruguay .........................................3.9 Macedonia, FYR ............................3.9 Cambodia ......................................3.9 Colombia .......................................3.9 Zimbabwe ......................................3.9 Vietnam .........................................3.9 Dominican Republic .......................3.9 Montenegro ...................................3.9 Nicaragua ......................................3.8 Russian Federation ........................3.8 Slovak Republic .............................3.8 Turkey............................................3.8 Ukraine ..........................................3.8 Peru ...............................................3.8 Azerbaijan ......................................3.7 Argentina .......................................3.7 Spain .............................................3.7 Kuwait ...........................................3.7 Slovenia .........................................3.7 Tunisia ...........................................3.7 Gabon ...........................................3.7 Suriname .......................................3.7 Madagascar ...................................3.7 Tajikistan ........................................3.7 Cape Verde ...................................3.7 Paraguay .......................................3.7 Morocco ........................................3.6 Sierra Leone ..................................3.6 Hungary .........................................3.6 Bhutan ...........................................3.6 Uganda ..........................................3.6 Romania ........................................3.6 Greece ...........................................3.6 Kyrgyz Republic .............................3.5 Georgia ..........................................3.5 Bolivia ............................................3.5 Tanzania ........................................3.5 Lebanon ........................................3.5 Algeria ...........................................3.4 Armenia .........................................3.4 Moldova .........................................3.4 Mozambique ..................................3.4 Pakistan .........................................3.4 Ethiopia..........................................3.4 Venezuela ......................................3.3 Nepal .............................................3.3 Mali ................................................3.3 Bulgaria .........................................3.3 Guinea ...........................................3.2 Croatia ...........................................3.2 Haiti ...............................................3.2 Bangladesh....................................3.2 Yemen ...........................................3.2 Italy ................................................3.2 Serbia ............................................3.1 Iran, Islamic Rep. ...........................3.0 Timor-Leste ...................................3.0 Burundi ..........................................2.9 Myanmar........................................2.9 Chad..............................................2.8 Burkina Faso..................................2.8 Angola ...........................................2.8 Egypt .............................................2.8 Libya ..............................................2.7 Mauritania ......................................2.6 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 463 2014 World Economic Forum Data Tables Goods market efficiency 2.2: Data Tables 6.01 Intensity of local competition In your country, how intense is competition in the local markets? [1 = not intense at all; 7 = extremely intense] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Japan ............................................6.4 Taiwan, China ................................6.1 Malta .............................................6.1 Hong Kong SAR ............................6.1 United Kingdom .............................6.1 Belgium .........................................6.0 Puerto Rico....................................6.0 Australia .........................................6.0 United Arab Emirates .....................6.0 United States .................................5.9 Turkey............................................5.9 Germany ........................................5.9 Korea, Rep. ...................................5.9 Netherlands ...................................5.9 Austria ...........................................5.8 Sri Lanka .......................................5.8 Czech Republic .............................5.7 Qatar .............................................5.7 Switzerland ....................................5.7 Singapore ......................................5.7 Kenya ............................................5.7 Lithuania ........................................5.6 Latvia .............................................5.6 Mauritius ........................................5.6 Zambia ..........................................5.6 New Zealand .................................5.6 Chile ..............................................5.6 Barbados .......................................5.6 Estonia...........................................5.5 Lebanon ........................................5.5 France ...........................................5.5 Slovak Republic .............................5.5 Canada ..........................................5.5 Malaysia.........................................5.5 Spain .............................................5.5 South Africa ...................................5.5 Cyprus ...........................................5.4 Thailand .........................................5.4 Jamaica .........................................5.4 Saudi Arabia ..................................5.4 Sweden .........................................5.4 Guatemala .....................................5.4 Macedonia, FYR ............................5.4 China .............................................5.4 Denmark ........................................5.4 Bahrain ..........................................5.4 Hungary .........................................5.3 Morocco ........................................5.3 Norway ..........................................5.3 Nigeria ...........................................5.3 Poland ...........................................5.3 Brazil..............................................5.3 Indonesia .......................................5.3 Luxembourg ..................................5.2 Uganda ..........................................5.2 Colombia .......................................5.2 Jordan ...........................................5.2 Italy ................................................5.2 Costa Rica .....................................5.2 Ireland............................................5.2 Philippines .....................................5.2 Trinidad and Tobago......................5.2 Portugal .........................................5.1 Mexico ...........................................5.1 Vietnam .........................................5.1 Slovenia .........................................5.1 Panama .........................................5.1 Paraguay .......................................5.1 Lao PDR ........................................5.1 Peru ...............................................5.1 Greece ...........................................5.1 Dominican Republic .......................5.0 SOURCE: MEAN 5.0 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 466 The Global Competitiveness Report 2014–2015 VALUE Oman ............................................5.0 Russian Federation ........................5.0 Bulgaria .........................................5.0 Malawi ...........................................4.9 Zimbabwe ......................................4.9 Rwanda .........................................4.9 Bangladesh....................................4.9 Iceland ...........................................4.9 Senegal .........................................4.9 Mongolia ........................................4.9 Croatia ...........................................4.9 Pakistan .........................................4.9 Armenia .........................................4.9 Cambodia ......................................4.9 Gambia, The ..................................4.9 Honduras .......................................4.8 El Salvador.....................................4.8 Madagascar ...................................4.8 India...............................................4.8 Tunisia ...........................................4.8 Lesotho .........................................4.8 Nepal .............................................4.8 Botswana ......................................4.7 Mozambique ..................................4.7 Mali ................................................4.7 Suriname .......................................4.7 Moldova .........................................4.7 Myanmar........................................4.7 Ukraine ..........................................4.7 Guyana ..........................................4.7 Uruguay .........................................4.7 Namibia .........................................4.6 Georgia ..........................................4.6 Bhutan ...........................................4.6 Kyrgyz Republic .............................4.6 Finland ...........................................4.6 Cameroon......................................4.6 Burkina Faso..................................4.6 Kazakhstan ....................................4.6 Côte d’Ivoire ..................................4.6 Ethiopia..........................................4.5 Kuwait ...........................................4.5 Swaziland ......................................4.5 Sierra Leone ..................................4.5 Cape Verde ...................................4.5 Ghana ............................................4.4 Iran, Islamic Rep. ...........................4.4 Romania ........................................4.4 Azerbaijan ......................................4.3 Tajikistan ........................................4.3 Tanzania ........................................4.3 Gabon ...........................................4.3 Yemen ...........................................4.3 Israel ..............................................4.2 Seychelles......................................4.2 Serbia ............................................4.2 Guinea ...........................................4.2 Nicaragua ......................................4.2 Mauritania ......................................4.1 Argentina .......................................4.1 Egypt .............................................4.0 Burundi ..........................................3.9 Montenegro ...................................3.9 Algeria ...........................................3.8 Chad..............................................3.8 Timor-Leste ...................................3.8 Bolivia ............................................3.8 Haiti ...............................................3.8 Libya ..............................................3.7 Albania...........................................3.5 Venezuela ......................................2.9 Angola ...........................................2.6 © 2014 World Economic Forum 1 MEAN 5.0 7 2.2: Data Tables 6.02 Extent of market dominance In your country, how would you characterize corporate activity? [1 = dominated by a few business groups; 7 = spread among many firms] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Switzerland ....................................6.0 Japan ............................................5.7 Germany ........................................5.7 Austria ...........................................5.5 Taiwan, China ................................5.4 Belgium .........................................5.4 Netherlands ...................................5.3 Italy ................................................5.3 Qatar .............................................5.2 United Arab Emirates .....................5.2 Malaysia.........................................5.2 Denmark ........................................5.1 Singapore ......................................5.1 United States .................................5.1 United Kingdom .............................5.0 Puerto Rico....................................4.9 Norway ..........................................4.8 Luxembourg ..................................4.8 Poland ...........................................4.8 Ireland............................................4.7 Canada ..........................................4.7 Sweden .........................................4.5 El Salvador.....................................4.5 Finland ...........................................4.5 New Zealand .................................4.5 France ...........................................4.4 Hong Kong SAR ............................4.4 Costa Rica .....................................4.4 China .............................................4.3 Spain .............................................4.3 Jordan ...........................................4.3 Saudi Arabia ..................................4.3 Mali ................................................4.2 Czech Republic .............................4.2 Brazil..............................................4.2 India...............................................4.2 Lao PDR ........................................4.2 Zambia ..........................................4.2 Turkey............................................4.2 Australia .........................................4.2 Kenya ............................................4.1 Ghana ............................................4.1 Indonesia .......................................4.1 Malta .............................................4.1 Estonia...........................................4.1 Guatemala .....................................4.1 Morocco ........................................4.0 South Africa ...................................4.0 Panama .........................................4.0 Sri Lanka .......................................4.0 Gambia, The ..................................4.0 Rwanda .........................................4.0 Cape Verde ...................................3.9 Uruguay .........................................3.9 Cyprus ...........................................3.9 Seychelles......................................3.9 Bahrain ..........................................3.9 Portugal .........................................3.9 Greece ...........................................3.9 Senegal .........................................3.8 Romania ........................................3.8 Guyana ..........................................3.8 Nigeria ...........................................3.8 Latvia .............................................3.8 Cameroon......................................3.8 Bolivia ............................................3.8 Thailand .........................................3.8 Kazakhstan ....................................3.8 Vietnam .........................................3.7 Macedonia, FYR ............................3.7 Pakistan .........................................3.7 Iran, Islamic Rep. ...........................3.7 SOURCE: 1 MEAN 3.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.8 7 Tajikistan ........................................3.7 Slovenia .........................................3.7 Russian Federation ........................3.7 Lebanon ........................................3.7 Tunisia ...........................................3.7 Iceland ...........................................3.6 Mauritius ........................................3.6 Oman ............................................3.6 Lithuania ........................................3.6 Peru ...............................................3.6 Honduras .......................................3.6 Lesotho .........................................3.5 Philippines .....................................3.5 Suriname .......................................3.5 Cambodia ......................................3.5 Hungary .........................................3.5 Jamaica .........................................3.5 Namibia .........................................3.5 Azerbaijan ......................................3.5 Montenegro ...................................3.5 Armenia .........................................3.5 Trinidad and Tobago......................3.5 Tanzania ........................................3.5 Slovak Republic .............................3.5 Côte d’Ivoire ..................................3.4 Barbados .......................................3.4 Burundi ..........................................3.4 Kuwait ...........................................3.4 Colombia .......................................3.4 Zimbabwe ......................................3.3 Georgia ..........................................3.3 Guinea ...........................................3.3 Mozambique ..................................3.3 Bhutan ...........................................3.3 Bangladesh....................................3.3 Algeria ...........................................3.3 Kyrgyz Republic .............................3.3 Croatia ...........................................3.3 Swaziland ......................................3.3 Madagascar ...................................3.3 Sierra Leone ..................................3.3 Mexico ...........................................3.3 Bulgaria .........................................3.2 Dominican Republic .......................3.2 Argentina .......................................3.2 Paraguay .......................................3.2 Nicaragua ......................................3.2 Korea, Rep. ...................................3.2 Botswana ......................................3.1 Malawi ...........................................3.1 Egypt .............................................3.1 Uganda ..........................................3.1 Moldova .........................................3.1 Mauritania ......................................3.1 Gabon ...........................................3.1 Ethiopia..........................................3.0 Ukraine ..........................................3.0 Timor-Leste ...................................2.9 Albania...........................................2.9 Nepal .............................................2.9 Chile ..............................................2.9 Venezuela ......................................2.9 Yemen ...........................................2.9 Serbia ............................................2.8 Libya ..............................................2.7 Burkina Faso..................................2.7 Chad..............................................2.7 Haiti ...............................................2.6 Mongolia ........................................2.6 Myanmar........................................2.4 Israel ..............................................2.4 Angola ...........................................2.2 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 467 2.2: Data Tables 6.03 Effectiveness of anti-monopoly policy In your country, to what extent does anti-monopoly policy promote competition? [1 = does not promote competition; 7 = effectively promotes competition] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Finland ...........................................5.6 Netherlands ...................................5.5 Qatar .............................................5.4 Japan ............................................5.4 New Zealand .................................5.4 United Arab Emirates .....................5.3 Puerto Rico....................................5.3 Singapore ......................................5.3 Belgium .........................................5.2 Sweden .........................................5.2 Luxembourg ..................................5.2 Germany ........................................5.2 Norway ..........................................5.2 South Africa ...................................5.1 United States .................................5.1 United Kingdom .............................5.1 Malaysia.........................................5.0 Switzerland ....................................5.0 Taiwan, China ................................5.0 France ...........................................4.9 Austria ...........................................4.8 Canada ..........................................4.8 Ireland............................................4.8 Malta .............................................4.8 Denmark ........................................4.7 Turkey............................................4.7 Estonia...........................................4.7 Rwanda .........................................4.7 Cyprus ...........................................4.7 El Salvador.....................................4.7 Bahrain ..........................................4.6 Saudi Arabia ..................................4.6 Australia .........................................4.6 Chile ..............................................4.6 Lao PDR ........................................4.5 Zambia ..........................................4.5 Indonesia .......................................4.5 China .............................................4.5 Jordan ...........................................4.5 Uganda ..........................................4.5 Jamaica .........................................4.4 Kenya ............................................4.4 India...............................................4.4 Bhutan ...........................................4.4 Mauritius ........................................4.4 Costa Rica .....................................4.4 Korea, Rep. ...................................4.4 Portugal .........................................4.3 Oman ............................................4.3 Hong Kong SAR ............................4.3 Panama .........................................4.3 Iceland ...........................................4.3 Gambia, The ..................................4.3 Spain .............................................4.3 Brazil..............................................4.3 Poland ...........................................4.2 Sri Lanka .......................................4.2 Colombia .......................................4.2 Namibia .........................................4.2 Latvia .............................................4.2 Senegal .........................................4.2 Macedonia, FYR ............................4.2 Peru ...............................................4.2 Morocco ........................................4.2 Czech Republic .............................4.1 Seychelles......................................4.1 Thailand .........................................4.1 Lithuania ........................................4.0 Mali ................................................4.0 Ghana ............................................4.0 Tunisia ...........................................4.0 Philippines .....................................4.0 SOURCE: MEAN 4.1 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 468 The Global Competitiveness Report 2014–2015 VALUE Barbados .......................................4.0 Cambodia ......................................4.0 Botswana ......................................3.9 Guyana ..........................................3.9 Slovenia .........................................3.9 Cameroon......................................3.9 Malawi ...........................................3.9 Hungary .........................................3.9 Honduras .......................................3.9 Côte d’Ivoire ..................................3.9 Iran, Islamic Rep. ...........................3.9 Nepal .............................................3.9 Pakistan .........................................3.9 Bangladesh....................................3.9 Vietnam .........................................3.9 Cape Verde ...................................3.8 Romania ........................................3.8 Dominican Republic .......................3.8 Ethiopia..........................................3.8 Greece ...........................................3.8 Guatemala .....................................3.8 Kazakhstan ....................................3.8 Tajikistan ........................................3.8 Tanzania ........................................3.8 Croatia ...........................................3.7 Slovak Republic .............................3.7 Zimbabwe ......................................3.7 Italy ................................................3.7 Montenegro ...................................3.7 Russian Federation ........................3.7 Lesotho .........................................3.7 Mexico ...........................................3.7 Armenia .........................................3.6 Trinidad and Tobago......................3.6 Sierra Leone ..................................3.6 Nicaragua ......................................3.6 Uruguay .........................................3.6 Nigeria ...........................................3.6 Egypt .............................................3.5 Mongolia ........................................3.5 Burkina Faso..................................3.5 Bolivia ............................................3.5 Gabon ...........................................3.5 Swaziland ......................................3.4 Lebanon ........................................3.4 Israel ..............................................3.4 Madagascar ...................................3.4 Albania...........................................3.4 Mozambique ..................................3.4 Bulgaria .........................................3.4 Kyrgyz Republic .............................3.3 Algeria ...........................................3.3 Suriname .......................................3.3 Serbia ............................................3.3 Georgia ..........................................3.3 Paraguay .......................................3.3 Myanmar........................................3.3 Azerbaijan ......................................3.2 Kuwait ...........................................3.2 Timor-Leste ...................................3.2 Moldova .........................................3.2 Burundi ..........................................3.1 Yemen ...........................................3.0 Ukraine ..........................................3.0 Argentina .......................................3.0 Guinea ...........................................2.9 Mauritania ......................................2.8 Haiti ...............................................2.7 Chad..............................................2.7 Venezuela ......................................2.3 Libya ..............................................2.1 Angola ...........................................2.0 © 2014 World Economic Forum 1 MEAN 4.1 7 2.2: Data Tables 6.04 Effect of taxation on incentives to invest In your country, to what extent do taxes reduce the incentive to invest? [1 = significantly reduce the incentive to invest; 7 = do not reduce the incentive to invest at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Bahrain ..........................................6.5 United Arab Emirates .....................6.3 Qatar .............................................6.2 Singapore ......................................5.9 Oman ............................................5.7 Hong Kong SAR ............................5.7 Switzerland ....................................5.3 Luxembourg ..................................5.3 Mauritius ........................................5.3 Malaysia.........................................5.2 Saudi Arabia ..................................5.0 Estonia...........................................4.9 New Zealand .................................4.9 Botswana ......................................4.7 Paraguay .......................................4.7 Kuwait ...........................................4.6 Netherlands ...................................4.6 Ireland............................................4.5 Macedonia, FYR ............................4.5 Trinidad and Tobago......................4.4 Cyprus ...........................................4.4 Georgia ..........................................4.4 Panama .........................................4.4 Canada ..........................................4.4 United Kingdom .............................4.3 South Africa ...................................4.3 Malta .............................................4.3 Sweden .........................................4.3 Rwanda .........................................4.3 Indonesia .......................................4.2 Chile ..............................................4.2 Ghana ............................................4.2 Taiwan, China ................................4.2 United States .................................4.1 Cambodia ......................................4.1 Germany ........................................4.1 Kazakhstan ....................................4.0 Lao PDR ........................................4.0 Namibia .........................................4.0 Nigeria ...........................................4.0 Norway ..........................................4.0 Jordan ...........................................4.0 Montenegro ...................................4.0 China .............................................4.0 Lebanon ........................................4.0 Bhutan ...........................................4.0 Seychelles......................................3.9 Finland ...........................................3.9 India...............................................3.9 Israel ..............................................3.9 Timor-Leste ...................................3.9 Philippines .....................................3.9 Morocco ........................................3.9 Thailand .........................................3.9 Myanmar........................................3.9 Zambia ..........................................3.9 Suriname .......................................3.9 Gabon ...........................................3.9 Guatemala .....................................3.9 Uruguay .........................................3.8 Senegal .........................................3.8 Swaziland ......................................3.8 Guyana ..........................................3.8 Pakistan .........................................3.8 Lesotho .........................................3.8 Sri Lanka .......................................3.8 Latvia .............................................3.8 Costa Rica .....................................3.8 Tunisia ...........................................3.8 Mongolia ........................................3.8 Japan ............................................3.7 Puerto Rico....................................3.7 SOURCE: 1 MEAN 3.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.8 7 Barbados .......................................3.7 Australia .........................................3.7 Austria ...........................................3.6 Kenya ............................................3.6 Bolivia ............................................3.6 Sierra Leone ..................................3.6 Egypt .............................................3.6 Haiti ...............................................3.6 Bulgaria .........................................3.6 Azerbaijan ......................................3.6 Albania...........................................3.6 Mozambique ..................................3.6 Iran, Islamic Rep. ...........................3.6 Algeria ...........................................3.5 Guinea ...........................................3.5 Zimbabwe ......................................3.5 Angola ...........................................3.5 Turkey............................................3.5 Peru ...............................................3.5 Bangladesh....................................3.5 Vietnam .........................................3.5 Uganda ..........................................3.4 Nicaragua ......................................3.4 Tanzania ........................................3.4 Iceland ...........................................3.4 Cameroon......................................3.4 Kyrgyz Republic .............................3.4 Côte d’Ivoire ..................................3.4 Nepal .............................................3.3 Poland ...........................................3.3 Malawi ...........................................3.3 Gambia, The ..................................3.3 Armenia .........................................3.3 Korea, Rep. ...................................3.3 Czech Republic .............................3.3 Moldova .........................................3.2 Libya ..............................................3.2 Mexico ...........................................3.2 Ethiopia..........................................3.2 Yemen ...........................................3.2 Mali ................................................3.2 Slovak Republic .............................3.2 Denmark ........................................3.2 Cape Verde ...................................3.2 Jamaica .........................................3.2 El Salvador.....................................3.2 Burkina Faso..................................3.1 Mauritania ......................................3.1 Dominican Republic .......................3.1 Russian Federation ........................3.1 Tajikistan ........................................3.1 Lithuania ........................................3.1 Madagascar ...................................3.1 Belgium .........................................3.1 Colombia .......................................3.0 Romania ........................................2.9 Portugal .........................................2.9 Spain .............................................2.9 Honduras .......................................2.9 Venezuela ......................................2.8 Hungary .........................................2.8 Slovenia .........................................2.8 France ...........................................2.8 Serbia ............................................2.7 Ukraine ..........................................2.7 Burundi ..........................................2.6 Brazil..............................................2.4 Chad..............................................2.4 Greece ...........................................2.4 Croatia ...........................................2.1 Italy ................................................2.0 Argentina .......................................2.0 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 469 2.2: Data Tables 6.05 Total tax rate This variable is a combination of profit tax (% of profits), labor tax and contribution (% of profits), and other taxes (% of profits) 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 20 21 22 23 23 25 26 27 28 28 30 30 32 33 34 35 35 37 38 38 38 41 42 43 44 45 46 47 48 48 50 51 51 53 54 55 56 57 58 58 58 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Macedonia, FYR ............................8.2 Timor-Leste .................................11.0 Qatar ...........................................11.3 Kuwait .........................................12.4 Bahrain ........................................13.5 Saudi Arabia ................................14.5 United Arab Emirates ...................14.9 Zambia ........................................15.1 Lesotho .......................................16.0 Georgia ........................................16.4 Croatia .........................................19.8 Luxembourg ................................20.7 Montenegro .................................20.9 Cambodia ....................................21.4 Namibia .......................................21.8 Oman ..........................................22.0 Cyprus .........................................22.5 Ghana ..........................................22.9 Hong Kong SAR ..........................22.9 Canada ........................................24.3 Mongolia ......................................24.6 Botswana ....................................25.4 Ireland..........................................25.7 Seychelles....................................25.7 Lao PDR ......................................26.8 Denmark ......................................27.0 Singapore ....................................27.1 Bulgaria .......................................27.7 Chile ............................................27.7 Korea, Rep. .................................27.9 Suriname .....................................27.9 Mauritius ......................................28.2 Kazakhstan ..................................28.6 Jordan .........................................28.9 Switzerland ..................................29.1 Trinidad and Tobago....................29.1 Thailand .......................................29.8 Iceland .........................................29.9 Israel ............................................29.9 Rwanda .......................................29.9 South Africa .................................30.1 Lebanon ......................................30.2 Nepal ...........................................31.5 Libya ............................................31.6 Albania.........................................31.7 Indonesia .....................................32.2 Sierra Leone ................................32.4 Guyana ........................................32.5 Slovenia .......................................32.5 Yemen .........................................32.7 Ethiopia........................................33.4 Kyrgyz Republic ...........................33.4 Nigeria .........................................33.8 United Kingdom ...........................34.0 New Zealand ...............................34.6 Pakistan .......................................34.7 Malawi .........................................34.9 Bangladesh..................................35.0 Paraguay .....................................35.0 Taiwan, China ..............................35.0 Vietnam .......................................35.2 Zimbabwe ....................................35.3 Madagascar .................................35.8 Latvia ...........................................35.9 Malaysia.......................................36.3 Peru .............................................36.4 Swaziland ....................................36.5 Uganda ........................................36.6 Serbia ..........................................36.8 Cape Verde .................................37.2 Mozambique ................................37.5 El Salvador...................................38.1 73 74 75 76 77 78 79 79 81 82 83 83 85 86 87 88 89 90 91 92 93 93 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 110 112 113 114 114 116 116 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 SOURCE: COUNTRY/ECONOMY World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises 470 The Global Competitiveness Report 2014–2015 VALUE Armenia .......................................38.8 Honduras .....................................39.2 Netherlands .................................39.3 Finland .........................................39.8 Azerbaijan ....................................40.0 Turkey..........................................40.2 Haiti .............................................40.4 Moldova .......................................40.4 Panama .......................................40.5 Norway ........................................40.7 Barbados .....................................40.8 Bhutan .........................................40.8 Guatemala ...................................40.9 Malta ...........................................41.0 Poland .........................................41.6 Uruguay .......................................41.9 Portugal .......................................42.3 Egypt ...........................................42.6 Romania ......................................42.9 Lithuania ......................................43.1 Dominican Republic .....................43.5 Gabon .........................................43.5 Burkina Faso................................43.9 Greece .........................................44.0 Iran, Islamic Rep. .........................44.1 Kenya ..........................................44.2 Jamaica .......................................44.3 Philippines ...................................44.5 Tanzania ......................................44.9 United States ...............................46.3 Côte d’Ivoire ................................46.4 Australia .......................................47.0 Slovak Republic ...........................47.2 Czech Republic ...........................48.1 Senegal .......................................48.5 Cameroon....................................48.8 Myanmar......................................48.9 Estonia.........................................49.4 Germany ......................................49.4 Mali ..............................................49.5 Morocco ......................................49.6 Hungary .......................................49.7 Japan ..........................................49.7 Puerto Rico..................................50.7 Russian Federation ......................50.7 Burundi ........................................51.6 Sweden .......................................52.0 Angola .........................................52.1 Austria .........................................52.4 Mexico .........................................53.7 Ukraine ........................................54.9 Sri Lanka .....................................55.1 Costa Rica ...................................55.3 Belgium .......................................57.5 Spain ...........................................58.6 Venezuela ....................................61.7 Tunisia .........................................62.4 India.............................................62.8 China ...........................................63.7 France .........................................64.7 Nicaragua ....................................64.9 Italy ..............................................65.8 Mauritania ....................................68.2 Brazil............................................68.3 Algeria .........................................71.9 Chad............................................73.8 Colombia .....................................76.0 Bolivia ..........................................83.4 Tajikistan ......................................86.0 Guinea .........................................91.2 Argentina ...................................107.8 Gambia, The ..............................283.2 © 2014 World Economic Forum 2.2: Data Tables 6.06 Number of procedures required to start a business Number of procedures required to start a business 2013 RANK 1 1 3 3 3 3 3 3 3 10 10 10 10 10 10 10 10 10 10 10 10 22 22 22 22 22 22 22 22 22 22 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 57 COUNTRY/ECONOMY VALUE RANK Canada .............................................1 New Zealand ....................................1 Armenia ............................................2 Georgia .............................................2 Kyrgyz Republic ................................2 Macedonia, FYR ...............................2 Madagascar ......................................2 Rwanda ............................................2 Slovenia ............................................2 Australia ............................................3 Azerbaijan .........................................3 Belgium ............................................3 Burkina Faso.....................................3 Burundi .............................................3 Finland ..............................................3 Hong Kong SAR ...............................3 Malaysia............................................3 Portugal ............................................3 Singapore .........................................3 Sweden ............................................3 Taiwan, China ...................................3 Bulgaria ............................................4 Denmark ...........................................4 Hungary ............................................4 Ireland...............................................4 Latvia ................................................4 Lithuania ...........................................4 Netherlands ......................................4 Poland ..............................................4 Senegal ............................................4 Thailand ............................................4 Albania..............................................5 Cameroon.........................................5 Côte d’Ivoire .....................................5 Estonia..............................................5 France ..............................................5 Greece ..............................................5 Guinea ..............................................5 Iceland ..............................................5 Israel .................................................5 Jamaica ............................................5 Korea, Rep. ......................................5 Lebanon ...........................................5 Mali ...................................................5 Mauritius ...........................................5 Mongolia ...........................................5 Morocco ...........................................5 Norway .............................................5 Oman ...............................................5 Panama ............................................5 Peru ..................................................5 Romania ...........................................5 South Africa ......................................5 Tajikistan ...........................................5 Uruguay ............................................5 Zambia .............................................5 Croatia ..............................................6 Cyprus ..............................................6 Guatemala ........................................6 Italy ...................................................6 Kazakhstan .......................................6 Lao PDR ...........................................6 Luxembourg .....................................6 Mexico ..............................................6 Moldova ............................................6 Montenegro ......................................6 Puerto Rico.......................................6 Serbia ...............................................6 Sierra Leone .....................................6 Sri Lanka ..........................................6 Switzerland .......................................6 Turkey...............................................6 57 57 57 57 57 78 78 78 78 78 78 78 78 78 78 78 78 78 78 78 93 93 93 93 93 93 93 93 93 93 93 93 93 106 106 106 106 106 106 106 106 106 106 106 106 118 118 118 118 118 118 118 118 118 118 128 128 128 131 131 131 131 135 135 135 135 139 139 141 141 141 144 SOURCE: COUNTRY/ECONOMY VALUE Ukraine .............................................6 United Arab Emirates ........................6 United Kingdom ................................6 United States ....................................6 Yemen ..............................................6 Bahrain .............................................7 Bangladesh.......................................7 Cape Verde ......................................7 Chile .................................................7 Dominican Republic ..........................7 Egypt ................................................7 Gabon ..............................................7 Jordan ..............................................7 Lesotho ............................................7 Nepal ................................................7 Nicaragua .........................................7 Paraguay ..........................................7 Russian Federation ...........................7 Slovak Republic ................................7 Trinidad and Tobago.........................7 Angola ..............................................8 Austria ..............................................8 Barbados ..........................................8 Bhutan ..............................................8 El Salvador........................................8 Gambia, The .....................................8 Ghana ...............................................8 Guyana .............................................8 Iran, Islamic Rep. ..............................8 Japan ...............................................8 Nigeria ..............................................8 Qatar ................................................8 Timor-Leste ......................................8 Botswana .........................................9 Chad.................................................9 Colombia ..........................................9 Costa Rica ........................................9 Czech Republic ................................9 Ethiopia.............................................9 Germany ...........................................9 Mauritania .........................................9 Mozambique .....................................9 Saudi Arabia .....................................9 Tanzania ...........................................9 Zimbabwe .........................................9 Indonesia ........................................10 Kenya .............................................10 Libya ...............................................10 Malawi ............................................10 Namibia ..........................................10 Pakistan ..........................................10 Seychelles.......................................10 Spain ..............................................10 Tunisia ............................................10 Vietnam ..........................................10 Cambodia .......................................11 Malta ..............................................11 Myanmar.........................................11 Haiti ................................................12 India................................................12 Kuwait ............................................12 Swaziland .......................................12 Brazil...............................................13 China ..............................................13 Honduras ........................................13 Suriname ........................................13 Algeria ............................................14 Argentina ........................................14 Bolivia .............................................15 Philippines ......................................15 Uganda ...........................................15 Venezuela .......................................17 World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 471 2.2: Data Tables 6.07 Time required to start a business Number of days required to start a business 2013 RANK 1 2 2 2 5 5 5 5 9 9 9 12 12 14 14 14 14 18 18 18 21 21 21 21 21 21 21 21 21 21 31 31 31 31 31 36 36 36 39 39 39 39 39 39 39 39 39 48 48 50 50 52 52 52 52 56 57 57 57 57 61 62 62 62 62 66 67 67 69 69 69 69 COUNTRY/ECONOMY VALUE RANK New Zealand .................................0.5 Georgia ..........................................2.0 Macedonia, FYR ............................2.0 Rwanda .........................................2.0 Australia .........................................2.5 Hong Kong SAR ............................2.5 Portugal .........................................2.5 Singapore ......................................2.5 Armenia .........................................4.0 Belgium .........................................4.0 Netherlands ...................................4.0 Albania...........................................4.5 Iceland ...........................................4.5 Burundi ..........................................5.0 Canada ..........................................5.0 Hungary .........................................5.0 United States .................................5.0 Chile ..............................................5.5 Denmark ........................................5.5 Korea, Rep. ...................................5.5 Italy ................................................6.0 Jamaica .........................................6.0 Malaysia.........................................6.0 Mauritius ........................................6.0 Mexico ...........................................6.0 Panama .........................................6.0 Puerto Rico....................................6.0 Senegal .........................................6.0 Slovenia .........................................6.0 Turkey............................................6.0 Estonia...........................................6.5 France ...........................................6.5 Lithuania ........................................6.5 Uruguay .........................................6.5 Zambia ..........................................6.5 Azerbaijan ......................................7.0 Moldova .........................................7.0 Norway ..........................................7.0 Côte d’Ivoire ..................................8.0 Croatia ...........................................8.0 Cyprus ...........................................8.0 Egypt .............................................8.0 Kyrgyz Republic .............................8.0 Madagascar ...................................8.0 Oman ............................................8.0 Sri Lanka .......................................8.0 United Arab Emirates .....................8.0 Qatar .............................................8.5 Romania ........................................8.5 Bahrain ..........................................9.0 Lebanon ........................................9.0 Cape Verde .................................10.0 Ireland..........................................10.0 Montenegro .................................10.0 Taiwan, China ..............................10.0 Bangladesh..................................10.5 Mali ..............................................11.0 Mongolia ......................................11.0 Morocco ......................................11.0 Tunisia .........................................11.0 Serbia ..........................................11.5 Jordan .........................................12.0 Kazakhstan ..................................12.0 Sierra Leone ................................12.0 United Kingdom ...........................12.0 Latvia ...........................................12.5 Burkina Faso................................13.0 Mozambique ................................13.0 Finland .........................................14.0 Ghana ..........................................14.0 Greece .........................................14.0 Honduras .....................................14.0 69 74 75 75 75 75 79 79 79 82 83 84 84 84 87 87 87 90 90 92 92 94 95 96 96 98 99 100 101 101 101 101 105 106 106 108 109 110 111 112 112 112 112 116 116 118 119 119 119 122 123 124 125 126 127 127 129 130 131 132 133 134 134 136 137 138 139 140 141 142 143 144 SOURCE: COUNTRY/ECONOMY World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises 472 The Global Competitiveness Report 2014–2015 VALUE Israel ............................................14.0 Germany ......................................14.5 Cameroon....................................15.0 Colombia .....................................15.0 Ethiopia........................................15.0 Russian Federation ......................15.0 Guinea .........................................16.0 Iran, Islamic Rep. .........................16.0 Sweden .......................................16.0 El Salvador...................................16.5 Nepal ...........................................17.0 Barbados .....................................18.0 Bulgaria .......................................18.0 Switzerland ..................................18.0 Dominican Republic .....................18.5 Luxembourg ................................18.5 Slovak Republic ...........................18.5 Mauritania ....................................19.0 South Africa .................................19.0 Czech Republic ...........................19.5 Guatemala ...................................19.5 Guyana ........................................20.0 Saudi Arabia ................................20.5 Pakistan .......................................21.0 Ukraine ........................................21.0 Japan ..........................................22.0 Spain ...........................................23.0 Costa Rica ...................................24.0 Algeria .........................................25.0 Argentina .....................................25.0 Austria .........................................25.0 Peru .............................................25.0 Tanzania ......................................26.0 Gambia, The ................................27.0 India.............................................27.0 Thailand .......................................27.5 Nigeria .........................................28.0 Lesotho .......................................29.0 Poland .........................................30.0 Bhutan .........................................32.0 Kenya ..........................................32.0 Kuwait .........................................32.0 Uganda ........................................32.0 China ...........................................33.0 Tajikistan ......................................33.0 Vietnam .......................................34.0 Libya ............................................35.0 Paraguay .....................................35.0 Philippines ...................................35.0 Nicaragua ....................................36.0 Trinidad and Tobago....................37.5 Swaziland ....................................38.0 Seychelles....................................39.0 Malta ...........................................39.5 Malawi .........................................40.0 Yemen .........................................40.0 Indonesia .....................................48.0 Bolivia ..........................................49.0 Gabon .........................................50.0 Botswana ....................................60.0 Chad............................................62.0 Angola .........................................66.0 Namibia .......................................66.0 Myanmar......................................72.0 Zimbabwe ....................................90.0 Lao PDR ......................................92.0 Timor-Leste .................................94.0 Haiti .............................................97.0 Cambodia ..................................104.0 Brazil..........................................107.5 Venezuela ..................................144.0 Suriname ...................................208.0 © 2014 World Economic Forum 2.2: Data Tables 6.08 Agricultural policy costs In your country, how would you assess the agricultural policy? [1 = excessively burdensome for the economy; 7 = balances well the interests of taxpayers, consumers and producers] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE New Zealand .................................6.1 Malaysia.........................................5.2 United Arab Emirates .....................5.0 Luxembourg ..................................5.0 Gambia, The ..................................4.8 Qatar .............................................4.8 Singapore ......................................4.8 Netherlands ...................................4.8 Ireland............................................4.7 Uruguay .........................................4.7 China .............................................4.7 Sweden .........................................4.6 Oman ............................................4.5 Chile ..............................................4.5 Morocco ........................................4.5 Australia .........................................4.5 Estonia...........................................4.5 Rwanda .........................................4.5 Bhutan ...........................................4.4 Bangladesh....................................4.4 Saudi Arabia ..................................4.4 Lao PDR ........................................4.3 Macedonia, FYR ............................4.3 United Kingdom .............................4.3 Malta .............................................4.3 Mauritius ........................................4.3 Montenegro ...................................4.2 Canada ..........................................4.2 Austria ...........................................4.2 Nigeria ...........................................4.2 Germany ........................................4.2 Côte d’Ivoire ..................................4.2 United States .................................4.2 Denmark ........................................4.2 Zambia ..........................................4.1 Indonesia .......................................4.1 Bahrain ..........................................4.1 Guatemala .....................................4.1 Brazil..............................................4.1 Belgium .........................................4.1 Cyprus ...........................................4.1 Ethiopia..........................................4.1 Tajikistan ........................................4.0 Sri Lanka .......................................4.0 Paraguay .......................................4.0 Myanmar........................................4.0 Hong Kong SAR ............................4.0 Botswana ......................................4.0 Taiwan, China ................................4.0 Kenya ............................................4.0 Finland ...........................................4.0 Latvia .............................................4.0 Cape Verde ...................................4.0 Honduras .......................................3.9 Namibia .........................................3.9 Vietnam .........................................3.9 Kazakhstan ....................................3.9 Jordan ...........................................3.9 Mali ................................................3.9 India...............................................3.9 Lesotho .........................................3.9 Barbados .......................................3.9 Nicaragua ......................................3.9 Albania...........................................3.9 South Africa ...................................3.9 Seychelles......................................3.9 Dominican Republic .......................3.9 Switzerland ....................................3.8 Romania ........................................3.8 Lithuania ........................................3.8 Uganda ..........................................3.8 Peru ...............................................3.8 SOURCE: 1 MEAN 3.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.8 7 Israel ..............................................3.8 France ...........................................3.8 Cambodia ......................................3.8 Guyana ..........................................3.8 Turkey............................................3.7 Sierra Leone ..................................3.7 Armenia .........................................3.7 Korea, Rep. ...................................3.7 Norway ..........................................3.7 Burkina Faso..................................3.7 Azerbaijan ......................................3.7 Spain .............................................3.7 Portugal .........................................3.7 Philippines .....................................3.7 Bolivia ............................................3.6 Jamaica .........................................3.6 Hungary .........................................3.6 Poland ...........................................3.6 Malawi ...........................................3.6 Panama .........................................3.6 Ghana ............................................3.6 Costa Rica .....................................3.6 Swaziland ......................................3.6 Nepal .............................................3.6 Senegal .........................................3.5 Mongolia ........................................3.5 Georgia ..........................................3.5 Madagascar ...................................3.5 Tanzania ........................................3.4 Czech Republic .............................3.4 Puerto Rico....................................3.4 Ukraine ..........................................3.4 Tunisia ...........................................3.4 Timor-Leste ...................................3.4 Slovenia .........................................3.4 Chad..............................................3.4 Pakistan .........................................3.4 Italy ................................................3.4 Iran, Islamic Rep. ...........................3.3 Cameroon......................................3.3 Guinea ...........................................3.3 Algeria ...........................................3.3 Slovak Republic .............................3.3 Suriname .......................................3.3 Trinidad and Tobago......................3.2 Angola ...........................................3.2 Mozambique ..................................3.2 Bulgaria .........................................3.2 Gabon ...........................................3.2 El Salvador.....................................3.1 Egypt .............................................3.1 Thailand .........................................3.1 Russian Federation ........................3.1 Kyrgyz Republic .............................3.0 Iceland ...........................................3.0 Serbia ............................................3.0 Greece ...........................................3.0 Mauritania ......................................3.0 Japan ............................................3.0 Mexico ...........................................3.0 Moldova .........................................2.9 Colombia .......................................2.9 Yemen ...........................................2.9 Burundi ..........................................2.8 Haiti ...............................................2.8 Lebanon ........................................2.8 Argentina .......................................2.8 Kuwait ...........................................2.8 Croatia ...........................................2.5 Zimbabwe ......................................2.5 Libya ..............................................2.1 Venezuela ......................................2.0 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 473 2.2: Data Tables 6.09 Prevalence of trade barriers In your country, to what extent do non-tariff barriers (e.g., health and product standards, technical and labeling requirements, etc.) limit the ability of imported goods to compete in the domestic market? [1 = strongly limit; 7 = do not limit at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Hong Kong SAR ............................5.5 United Arab Emirates .....................5.5 Singapore ......................................5.5 New Zealand .................................5.5 Luxembourg ..................................5.3 Georgia ..........................................5.3 Portugal .........................................5.2 Finland ...........................................5.1 Malaysia.........................................5.1 Barbados .......................................5.1 Jamaica .........................................5.0 Cyprus ...........................................5.0 Trinidad and Tobago......................5.0 Greece ...........................................5.0 Ireland............................................4.9 Suriname .......................................4.9 Zimbabwe ......................................4.9 Bahrain ..........................................4.9 Estonia...........................................4.8 Netherlands ...................................4.8 Taiwan, China ................................4.8 Chile ..............................................4.8 South Africa ...................................4.8 Puerto Rico....................................4.7 Morocco ........................................4.7 Latvia .............................................4.7 Oman ............................................4.7 Belgium .........................................4.7 Bangladesh....................................4.7 Hungary .........................................4.7 United Kingdom .............................4.7 Sierra Leone ..................................4.6 Mauritius ........................................4.6 Malawi ...........................................4.6 Croatia ...........................................4.6 Swaziland ......................................4.6 Kyrgyz Republic .............................4.6 Slovak Republic .............................4.6 Slovenia .........................................4.6 Qatar .............................................4.6 Sweden .........................................4.6 Nigeria ...........................................4.6 Uruguay .........................................4.5 Denmark ........................................4.5 Norway ..........................................4.5 Panama .........................................4.5 Austria ...........................................4.5 Australia .........................................4.5 Gambia, The ..................................4.5 Lebanon ........................................4.5 Philippines .....................................4.5 Zambia ..........................................4.5 Rwanda .........................................4.5 China .............................................4.5 Thailand .........................................4.5 Mozambique ..................................4.5 Saudi Arabia ..................................4.4 Guatemala .....................................4.4 Malta .............................................4.4 Seychelles......................................4.4 Spain .............................................4.4 Uganda ..........................................4.4 Kazakhstan ....................................4.4 Namibia .........................................4.4 Pakistan .........................................4.4 Poland ...........................................4.4 Botswana ......................................4.4 Azerbaijan ......................................4.4 Paraguay .......................................4.4 Mexico ...........................................4.4 United States .................................4.4 Czech Republic .............................4.4 SOURCE: MEAN 4.3 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 474 The Global Competitiveness Report 2014–2015 VALUE Macedonia, FYR ............................4.4 Guyana ..........................................4.3 France ...........................................4.3 Mongolia ........................................4.3 Turkey............................................4.3 Montenegro ...................................4.3 Italy ................................................4.3 Armenia .........................................4.3 Canada ..........................................4.3 Lao PDR ........................................4.3 Burkina Faso..................................4.3 Nepal .............................................4.3 Jordan ...........................................4.3 Gabon ...........................................4.3 Germany ........................................4.3 Cambodia ......................................4.3 Moldova .........................................4.3 Serbia ............................................4.3 Vietnam .........................................4.3 Côte d’Ivoire ..................................4.2 Timor-Leste ...................................4.2 Israel ..............................................4.2 Peru ...............................................4.2 Bhutan ...........................................4.2 Lithuania ........................................4.1 Senegal .........................................4.1 Bulgaria .........................................4.1 India...............................................4.1 Cape Verde ...................................4.1 Dominican Republic .......................4.1 Indonesia .......................................4.1 Korea, Rep. ...................................4.1 Sri Lanka .......................................4.1 Ukraine ..........................................4.1 Switzerland ....................................4.0 Guinea ...........................................4.0 Madagascar ...................................4.0 Kenya ............................................4.0 Russian Federation ........................4.0 Haiti ...............................................4.0 Ethiopia..........................................4.0 Myanmar........................................4.0 Brazil..............................................4.0 Japan ............................................4.0 Romania ........................................4.0 Honduras .......................................4.0 Colombia .......................................4.0 Cameroon......................................3.9 Egypt .............................................3.9 Lesotho .........................................3.9 Iran, Islamic Rep. ...........................3.9 Tunisia ...........................................3.9 Tanzania ........................................3.9 Costa Rica .....................................3.9 Ghana ............................................3.9 Nicaragua ......................................3.8 Iceland ...........................................3.8 Yemen ...........................................3.8 Kuwait ...........................................3.7 Libya ..............................................3.7 Tajikistan ........................................3.7 El Salvador.....................................3.7 Algeria ...........................................3.7 Albania...........................................3.7 Bolivia ............................................3.7 Venezuela ......................................3.6 Burundi ..........................................3.5 Mauritania ......................................3.2 Mali ................................................3.2 Chad..............................................3.2 Argentina .......................................2.9 Angola ...........................................2.9 © 2014 World Economic Forum 1 MEAN 4.3 7 2.2: Data Tables 6.10 Trade tariffs Trade-weighted average tariff rate 2013 or most recent year available RANK 1 1 3 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 32 33 33 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Hong Kong SAR8...........................0.0 Libya1 ............................................0.0 Singapore8.....................................0.3 Mauritius8 ......................................0.8 Austria ...........................................0.8 Belgium .........................................0.8 Bulgaria .........................................0.8 Cyprus ...........................................0.8 Czech Republic .............................0.8 Denmark ........................................0.8 Estonia...........................................0.8 Finland ...........................................0.8 France ...........................................0.8 Germany ........................................0.8 Greece ...........................................0.8 Hungary .........................................0.8 Ireland............................................0.8 Italy ................................................0.8 Latvia .............................................0.8 Lithuania ........................................0.8 Luxembourg ..................................0.8 Malta .............................................0.8 Netherlands ...................................0.8 Poland ...........................................0.8 Portugal .........................................0.8 Romania ........................................0.8 Slovak Republic .............................0.8 Slovenia .........................................0.8 Spain .............................................0.8 Sweden .........................................0.8 United Kingdom .............................0.8 Georgia7 ........................................1.1 Puerto Rico....................................1.3 United States .................................1.3 New Zealand8 ................................1.5 Peru ...............................................1.8 Japan6 ...........................................2.2 Australia8 .......................................2.3 Timor-Leste ...................................2.5 Canada ..........................................2.7 Armenia .........................................2.8 Albania8 .........................................2.8 Ukraine7 .........................................2.8 Montenegro8..................................2.9 Croatia ...........................................3.2 Iceland ...........................................3.2 Switzerland ....................................3.5 Philippines7 ....................................3.6 Myanmar2 ......................................3.9 Costa Rica6 ...................................3.9 Norway ..........................................3.9 Guatemala .....................................3.9 Nicaragua ......................................4.1 Oman8 ...........................................4.1 Israel3 ............................................4.1 Bahrain8.........................................4.1 Kuwait8 ..........................................4.1 United Arab Emirates8 ...................4.2 Qatar8 ............................................4.2 Moldova .........................................4.2 Saudi Arabia8.................................4.2 Honduras3 .....................................4.6 El Salvador.....................................4.6 Indonesia .......................................4.6 Mongolia ........................................4.6 Chile3 .............................................4.6 Panama .........................................4.9 Serbia8...........................................5.0 Turkey............................................5.1 Taiwan, China ................................5.2 Macedonia, FYR7...........................5.3 Yemen ...........................................5.7 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 SOURCE: 1 2006 COUNTRY/ECONOMY VALUE Tajikistan ........................................5.7 Haiti8..............................................5.8 Botswana8 .....................................5.9 South Africa ...................................6.0 Lesotho8 ........................................6.1 Namibia8 ........................................6.1 Swaziland8 .....................................6.1 Lebanon2 .......................................6.1 Malaysia2 .......................................6.2 Colombia .......................................6.6 Vietnam .........................................6.8 Thailand1 .......................................6.8 Paraguay .......................................6.8 Dominican Republic3 .....................7.4 Azerbaijan ......................................7.5 Madagascar8 .................................7.6 Mozambique5 ................................7.7 Uruguay .........................................7.9 Lao PDR2 ......................................8.5 Mexico4 .........................................8.5 Korea, Rep.2 ..................................8.5 Jamaica6 .......................................8.6 Burundi ..........................................8.7 Rwanda .........................................8.7 Bolivia ............................................8.8 Kenya ............................................8.8 Uganda ..........................................9.0 Angola4 ..........................................9.3 Kazakhstan ....................................9.4 Russian Federation ........................9.5 Malawi ...........................................9.7 Tanzania ........................................9.7 Cape Verde .................................10.3 Ghana ..........................................10.4 Jordan2........................................10.5 Argentina .....................................10.5 Kyrgyz Republic ...........................10.7 Zambia ........................................10.7 Mali ..............................................10.8 Burkina Faso................................10.8 Senegal .......................................10.8 Côte d’Ivoire ................................10.8 China6 .........................................11.1 Mauritania2 ..................................11.1 Sri Lanka7 ....................................11.3 Brazil7 ..........................................11.4 Nigeria .........................................11.4 Guinea7 .......................................11.5 Suriname2 ....................................11.7 Morocco7.....................................11.7 Guyana7 ......................................11.8 India4 ...........................................12.4 Venezuela ....................................12.4 Ethiopia7 ......................................12.7 Trinidad and Tobago3 ..................12.9 Cambodia3 ..................................13.0 Bangladesh2 ................................13.7 Gambia, The7 ..............................13.7 Sierra Leone1 ...............................13.8 Cameroon7 ..................................14.3 Gabon4 ........................................14.3 Algeria4 ........................................14.5 Chad6 ..........................................14.6 Egypt4 .........................................16.0 Seychelles2 ..................................16.0 Tunisia3........................................16.3 Barbados .....................................16.6 Pakistan3 .....................................16.9 Nepal ...........................................17.7 Zimbabwe2 ..................................21.0 Bhutan2 .......................................22.7 Iran, Islamic Rep.6........................27.1 International Trade Centre, Trade Competitiveness Map data 2 2007 3 2008 4 2009 5 2010 6 2011 7 2012 8 2014 © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 475 2.2: Data Tables 6.11 Prevalence of foreign ownership In your country, how prevalent is foreign ownership of companies? [1 = extremely rare; 7 = highly prevalent] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Luxembourg ..................................6.3 Singapore ......................................6.1 Ireland............................................6.1 United Kingdom .............................6.1 Hong Kong SAR ............................6.1 Slovak Republic .............................6.0 Czech Republic .............................6.0 Estonia...........................................5.8 New Zealand .................................5.7 United Arab Emirates .....................5.7 Australia .........................................5.7 Puerto Rico....................................5.6 Canada ..........................................5.5 Chile ..............................................5.5 Hungary .........................................5.5 Botswana ......................................5.5 Barbados .......................................5.5 Netherlands ...................................5.5 Panama .........................................5.5 Gabon ...........................................5.4 Belgium .........................................5.4 Bahrain ..........................................5.4 France ...........................................5.4 Uruguay .........................................5.4 Denmark ........................................5.4 Zambia ..........................................5.3 Japan ............................................5.3 Costa Rica .....................................5.3 Latvia .............................................5.3 Malaysia.........................................5.3 Norway ..........................................5.3 Taiwan, China ................................5.2 Uganda ..........................................5.2 Sweden .........................................5.2 Switzerland ....................................5.2 Namibia .........................................5.1 Gambia, The ..................................5.1 Mexico ...........................................5.1 Dominican Republic .......................5.1 Morocco ........................................5.1 United States .................................5.1 South Africa ...................................5.1 Sierra Leone ..................................5.1 Finland ...........................................5.1 Peru ...............................................5.0 Germany ........................................5.0 Jamaica .........................................5.0 Spain .............................................4.9 Nigeria ...........................................4.9 Austria ...........................................4.9 Philippines .....................................4.9 Israel ..............................................4.9 Guatemala .....................................4.9 Poland ...........................................4.9 Côte d’Ivoire ..................................4.9 Mozambique ..................................4.8 Sri Lanka .......................................4.8 Swaziland ......................................4.8 Qatar .............................................4.8 Malta .............................................4.8 Cameroon......................................4.8 Honduras .......................................4.7 Mongolia ........................................4.7 Cambodia ......................................4.7 Mauritius ........................................4.7 Jordan ...........................................4.6 Malawi ...........................................4.6 Indonesia .......................................4.6 Cape Verde ...................................4.5 Thailand .........................................4.5 China .............................................4.5 Ghana ............................................4.5 SOURCE: MEAN 4.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 476 The Global Competitiveness Report 2014–2015 VALUE Senegal .........................................4.5 Trinidad and Tobago......................4.5 Montenegro ...................................4.5 Colombia .......................................4.5 Greece ...........................................4.5 Kenya ............................................4.5 Oman ............................................4.5 Argentina .......................................4.4 Tunisia ...........................................4.4 Portugal .........................................4.4 Rwanda .........................................4.4 Cyprus ...........................................4.4 Guyana ..........................................4.4 Paraguay .......................................4.4 Seychelles......................................4.4 Lithuania ........................................4.4 Romania ........................................4.3 Nicaragua ......................................4.3 Brazil..............................................4.3 Croatia ...........................................4.3 Lao PDR ........................................4.3 Zimbabwe ......................................4.3 Armenia .........................................4.3 Madagascar ...................................4.3 Timor-Leste ...................................4.2 India...............................................4.2 Korea, Rep. ...................................4.2 Georgia ..........................................4.2 Kyrgyz Republic .............................4.1 Turkey............................................4.1 Vietnam .........................................4.1 Tanzania ........................................4.1 Burkina Faso..................................4.1 Saudi Arabia ..................................4.1 Lesotho .........................................4.0 Bulgaria .........................................4.0 Serbia ............................................4.0 El Salvador.....................................4.0 Kazakhstan ....................................4.0 Macedonia, FYR ............................3.9 Lebanon ........................................3.9 Pakistan .........................................3.8 Azerbaijan ......................................3.8 Suriname .......................................3.8 Moldova .........................................3.7 Bangladesh....................................3.7 Guinea ...........................................3.5 Mali ................................................3.5 Bolivia ............................................3.5 Ukraine ..........................................3.5 Italy ................................................3.5 Russian Federation ........................3.4 Tajikistan ........................................3.4 Egypt .............................................3.3 Nepal .............................................3.3 Chad..............................................3.3 Iceland ...........................................3.3 Venezuela ......................................3.2 Algeria ...........................................3.2 Ethiopia..........................................3.2 Albania...........................................3.2 Slovenia .........................................3.2 Myanmar........................................3.1 Haiti ...............................................3.0 Kuwait ...........................................3.0 Angola ...........................................2.9 Burundi ..........................................2.8 Mauritania ......................................2.7 Bhutan ...........................................2.6 Yemen ...........................................2.5 Libya ..............................................2.4 Iran, Islamic Rep. ...........................2.2 © 2014 World Economic Forum 1 MEAN 4.5 7 2.2: Data Tables 6.12 Business impact of rules on FDI In your country, to what extent do rules and regulations encourage or discourage foreign direct investment (FDI)? [1 = strongly discourage fdi; 7 = strongly encourage fdi] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Ireland............................................6.6 Singapore ......................................6.3 Hong Kong SAR ............................6.2 Luxembourg ..................................5.9 Rwanda .........................................5.8 United Arab Emirates .....................5.7 Mauritius ........................................5.6 United Kingdom .............................5.6 Qatar .............................................5.5 Morocco ........................................5.5 Malaysia.........................................5.5 Bahrain ..........................................5.5 Panama .........................................5.4 Netherlands ...................................5.4 Malta .............................................5.3 Taiwan, China ................................5.3 Estonia...........................................5.3 Chile ..............................................5.3 Sri Lanka .......................................5.2 Macedonia, FYR ............................5.2 Uruguay .........................................5.2 Thailand .........................................5.1 Puerto Rico....................................5.0 Zambia ..........................................5.0 Sweden .........................................5.0 China .............................................5.0 Finland ...........................................5.0 Georgia ..........................................4.9 Oman ............................................4.9 Uganda ..........................................4.9 Switzerland ....................................4.9 Costa Rica .....................................4.9 Cambodia ......................................4.8 Lao PDR ........................................4.8 Germany ........................................4.8 Latvia .............................................4.8 Vietnam .........................................4.7 Norway ..........................................4.7 Mozambique ..................................4.7 Peru ...............................................4.7 Barbados .......................................4.7 Denmark ........................................4.7 Belgium .........................................4.7 United States .................................4.7 Nigeria ...........................................4.7 Bangladesh....................................4.7 Lesotho .........................................4.7 Gambia, The ..................................4.7 Tunisia ...........................................4.6 Australia .........................................4.6 Cyprus ...........................................4.6 Canada ..........................................4.6 Burkina Faso..................................4.6 Côte d’Ivoire ..................................4.6 Trinidad and Tobago......................4.6 New Zealand .................................4.6 Austria ...........................................4.6 Japan ............................................4.6 Indonesia .......................................4.6 Mexico ...........................................4.6 Israel ..............................................4.5 Albania...........................................4.5 Colombia .......................................4.5 Slovak Republic .............................4.5 Philippines .....................................4.5 France ...........................................4.5 Czech Republic .............................4.5 Senegal .........................................4.5 Cameroon......................................4.5 Kenya ............................................4.4 Turkey............................................4.4 Paraguay .......................................4.4 SOURCE: 1 MEAN 4.3 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.3 7 Jordan ...........................................4.4 Montenegro ...................................4.4 Pakistan .........................................4.4 Poland ...........................................4.4 Dominican Republic .......................4.4 Kazakhstan ....................................4.4 Portugal .........................................4.3 Sierra Leone ..................................4.3 Azerbaijan ......................................4.3 Tanzania ........................................4.3 Botswana ......................................4.3 Hungary .........................................4.3 Cape Verde ...................................4.3 Korea, Rep. ...................................4.2 Ghana ............................................4.2 Bhutan ...........................................4.2 Gabon ...........................................4.2 Spain .............................................4.2 Mongolia ........................................4.2 Nicaragua ......................................4.2 India...............................................4.2 Ethiopia..........................................4.2 Saudi Arabia ..................................4.2 Guatemala .....................................4.2 Namibia .........................................4.2 Seychelles......................................4.1 Malawi ...........................................4.1 Jamaica .........................................4.1 Lithuania ........................................4.0 Madagascar ...................................4.0 Guyana ..........................................4.0 South Africa ...................................4.0 Romania ........................................4.0 Swaziland ......................................3.9 Kyrgyz Republic .............................3.9 Moldova .........................................3.9 Mali ................................................3.9 Armenia .........................................3.8 Lebanon ........................................3.8 Suriname .......................................3.8 Bulgaria .........................................3.8 Brazil..............................................3.7 El Salvador.....................................3.7 Nepal .............................................3.7 Honduras .......................................3.7 Russian Federation ........................3.7 Timor-Leste ...................................3.6 Bolivia ............................................3.6 Tajikistan ........................................3.6 Yemen ...........................................3.6 Myanmar........................................3.6 Egypt .............................................3.6 Ukraine ..........................................3.5 Haiti ...............................................3.5 Guinea ...........................................3.4 Algeria ...........................................3.3 Burundi ..........................................3.3 Serbia ............................................3.2 Chad..............................................3.1 Mauritania ......................................3.1 Greece ...........................................3.0 Iran, Islamic Rep. ...........................3.0 Libya ..............................................3.0 Slovenia .........................................2.9 Iceland ...........................................2.9 Italy ................................................2.7 Kuwait ...........................................2.6 Croatia ...........................................2.6 Angola ...........................................2.6 Zimbabwe ......................................1.8 Argentina .......................................1.8 Venezuela ......................................1.4 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 477 2.2: Data Tables 6.13 Burden of customs procedures In your country, how efficient are the customs procedures (related to the entry and exit of merchandise)? [1 = not efficient at all; 7 = extremely efficient] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Singapore ......................................6.1 Hong Kong SAR ............................6.1 United Arab Emirates .....................6.0 Finland ...........................................6.0 New Zealand .................................5.9 Netherlands ...................................5.6 Georgia ..........................................5.6 Ireland............................................5.5 Luxembourg ..................................5.5 Taiwan, China ................................5.5 Qatar .............................................5.4 United Kingdom .............................5.3 Estonia...........................................5.3 Iceland ...........................................5.3 Norway ..........................................5.2 Rwanda .........................................5.2 Sweden .........................................5.2 Switzerland ....................................5.2 Austria ...........................................5.2 Malaysia.........................................5.2 Australia .........................................5.2 Belgium .........................................5.2 Denmark ........................................5.2 Japan ............................................5.1 Puerto Rico....................................5.1 Portugal .........................................5.1 Chile ..............................................5.0 Canada ..........................................4.9 Cyprus ...........................................4.9 Slovenia .........................................4.9 Hungary .........................................4.8 Oman ............................................4.8 United States .................................4.8 Spain .............................................4.8 France ...........................................4.7 Macedonia, FYR ............................4.7 Germany ........................................4.7 Mauritius ........................................4.7 Bahrain ..........................................4.7 Malta .............................................4.7 Croatia ...........................................4.6 Gambia, The ..................................4.6 Lithuania ........................................4.6 Jordan ...........................................4.5 Latvia .............................................4.5 Uruguay .........................................4.5 Czech Republic .............................4.5 Slovak Republic .............................4.5 Bhutan ...........................................4.5 Panama .........................................4.4 Dominican Republic .......................4.4 Korea, Rep. ...................................4.4 Israel ..............................................4.4 Saudi Arabia ..................................4.3 China .............................................4.3 Senegal .........................................4.3 Morocco ........................................4.3 Poland ...........................................4.3 Zambia ..........................................4.2 Botswana ......................................4.2 Greece ...........................................4.2 South Africa ...................................4.1 Lao PDR ........................................4.1 Namibia .........................................4.1 Montenegro ...................................4.1 Paraguay .......................................4.1 Bulgaria .........................................4.1 Indonesia .......................................4.0 Sri Lanka .......................................4.0 Mexico ...........................................4.0 Italy ................................................4.0 Barbados .......................................4.0 SOURCE: MEAN 4.1 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 478 The Global Competitiveness Report 2014–2015 VALUE Peru ...............................................4.0 Thailand .........................................3.9 India...............................................3.9 El Salvador.....................................3.9 Kazakhstan ....................................3.9 Costa Rica .....................................3.9 Seychelles......................................3.8 Malawi ...........................................3.8 Egypt .............................................3.8 Bolivia ............................................3.8 Turkey............................................3.8 Uganda ..........................................3.8 Guyana ..........................................3.7 Romania ........................................3.7 Pakistan .........................................3.7 Guatemala .....................................3.7 Moldova .........................................3.7 Cameroon......................................3.6 Colombia .......................................3.6 Kenya ............................................3.6 Burkina Faso..................................3.6 Vietnam .........................................3.6 Russian Federation ........................3.6 Serbia ............................................3.6 Jamaica .........................................3.6 Tajikistan ........................................3.6 Philippines .....................................3.5 Kuwait ...........................................3.5 Gabon ...........................................3.5 Swaziland ......................................3.5 Honduras .......................................3.5 Mozambique ..................................3.5 Bangladesh....................................3.5 Tunisia ...........................................3.4 Lesotho .........................................3.4 Armenia .........................................3.4 Kyrgyz Republic .............................3.4 Sierra Leone ..................................3.4 Suriname .......................................3.4 Albania...........................................3.4 Ghana ............................................3.4 Madagascar ...................................3.4 Mongolia ........................................3.3 Iran, Islamic Rep. ...........................3.3 Guinea ...........................................3.3 Ukraine ..........................................3.3 Côte d’Ivoire ..................................3.3 Cape Verde ...................................3.2 Mali ................................................3.2 Azerbaijan ......................................3.2 Tanzania ........................................3.2 Nepal .............................................3.2 Myanmar........................................3.2 Timor-Leste ...................................3.1 Trinidad and Tobago......................3.1 Cambodia ......................................3.1 Lebanon ........................................3.1 Nicaragua ......................................3.1 Yemen ...........................................3.0 Nigeria ...........................................3.0 Zimbabwe ......................................3.0 Mauritania ......................................3.0 Ethiopia..........................................2.9 Burundi ..........................................2.9 Algeria ...........................................2.8 Brazil..............................................2.7 Libya ..............................................2.6 Haiti ...............................................2.3 Chad..............................................2.1 Argentina .......................................2.0 Angola ...........................................1.8 Venezuela ......................................1.7 © 2014 World Economic Forum 1 MEAN 4.1 7 2.2: Data Tables 6.14 Imports as a percentage of GDP Imports of goods and services as a percentage of gross domestic product 2013 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Hong Kong SAR ........................249.1 Singapore ..................................167.5 Lesotho2 ....................................127.4 Luxembourg ..............................125.3 Kyrgyz Republic .........................109.5 Belgium .....................................107.9 Mauritania2 ................................102.0 Malta ...........................................94.7 Cambodia ....................................93.7 Slovak Republic ...........................92.9 Estonia.........................................91.6 Netherlands .................................88.9 Seychelles2 ..................................88.8 Guyana2 ......................................88.4 Hungary .......................................87.8 Vietnam .......................................85.1 Lithuania ......................................84.9 Puerto Rico..................................84.6 Ireland..........................................83.6 Czech Republic ...........................82.1 Moldova .......................................81.7 Slovenia .......................................80.8 Lebanon2 .....................................80.4 Malaysia.......................................80.0 Thailand .......................................78.9 Jordan .........................................77.7 United Arab Emirates2 .................76.3 Mozambique ................................75.4 Macedonia, FYR ..........................74.4 Mongolia ......................................74.1 Bulgaria .......................................73.5 Malawi2 ........................................70.2 Swaziland2 ...................................68.8 Namibia .......................................68.1 Honduras .....................................67.4 Mauritius ......................................67.1 Montenegro .................................66.8 Latvia ...........................................65.6 Tajikistan ......................................64.8 Panama .......................................64.3 Trinidad and Tobago1 ..................63.9 Taiwan, China ..............................63.7 Botswana2 ...................................59.5 Tunisia .........................................58.0 Georgia ........................................57.8 Serbia ..........................................57.6 Nicaragua ....................................57.3 Jamaica .......................................56.8 Suriname .....................................56.3 Bhutan2 .......................................56.3 Sierra Leone2 ...............................55.3 Austria .........................................54.6 Albania.........................................54.0 Senegal2 ......................................53.7 Guinea2 .......................................53.6 Armenia .......................................53.5 Gambia, The2 ..............................53.2 Barbados .....................................52.5 Iceland .........................................52.2 Ukraine ........................................51.9 Cape Verde .................................51.0 Korea, Rep. .................................50.9 Ghana ..........................................50.5 Côte d’Ivoire2...............................50.3 Zimbabwe1 ..................................50.1 Paraguay2 ....................................49.7 Haiti2............................................49.5 El Salvador...................................49.4 Morocco ......................................49.1 Zambia2 .......................................48.6 Oman2 .........................................47.7 Denmark ......................................47.5 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE Bahrain2.......................................47.1 Poland .........................................45.9 Kenya2 .........................................45.5 Tanzania ......................................45.2 Romania ......................................44.0 Cyprus .........................................43.8 Croatia .........................................42.4 Mali2 ............................................42.3 Chad2 ..........................................42.1 Madagascar2 ...............................42.0 Germany ......................................41.3 Finland .........................................41.2 South Africa .................................40.7 Portugal .......................................40.6 Costa Rica ...................................40.2 Rwanda2......................................39.9 Sri Lanka2 ....................................39.7 Burkina Faso2 ..............................39.2 Yemen2........................................39.1 Angola2 ........................................38.9 Switzerland ..................................38.8 Sweden .......................................38.7 Nepal ...........................................38.6 Bolivia ..........................................38.6 Burundi2 ......................................37.4 Guatemala ...................................36.8 Ethiopia2 ......................................36.4 Uganda ........................................36.2 Libya2 ..........................................34.5 Chile ............................................34.4 Gabon2 ........................................34.1 Cameroon2 ..................................33.9 Mexico .........................................33.3 Turkey..........................................33.1 United Kingdom ...........................32.6 Israel ............................................32.5 Canada ........................................31.7 France .........................................31.7 Algeria .........................................31.7 India.............................................31.7 Greece .........................................31.7 Spain ...........................................31.6 Dominican Republic .....................30.7 Lao PDR2 ....................................30.6 Qatar ...........................................30.5 Bangladesh..................................30.1 Philippines ...................................29.7 Saudi Arabia ................................28.7 New Zealand ...............................28.6 Italy ..............................................28.2 Kazakhstan ..................................27.7 Egypt ...........................................27.5 Nigeria .........................................27.0 Azerbaijan ....................................26.6 Uruguay .......................................26.2 Norway ........................................26.0 Indonesia .....................................25.4 China ...........................................24.8 Peru .............................................24.8 Kuwait2 ........................................24.6 Russian Federation ......................22.1 Pakistan .......................................21.6 Japan ..........................................20.3 Australia .......................................20.2 Argentina .....................................19.0 Venezuela ....................................18.9 Colombia .....................................18.4 Myanmar1 ....................................18.0 Timor-Leste2 ................................17.9 Iran, Islamic Rep.2........................17.5 United States ...............................16.4 Brazil............................................14.9 SOURCES: World Trade Organization, Statistical Database: Time Series on Merchandise and Commercial Services (accessed July 02, 2014); International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 1 2011 2 2012 © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 479 2.2: Data Tables 6.15 Degree of customer orientation In your country, how well do companies treat customers? [1 = indifferent to customer satisfaction; 7 = highly responsive to customers and seek customer retention] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Japan ............................................6.3 Switzerland ....................................6.0 Austria ...........................................5.8 Qatar .............................................5.8 New Zealand .................................5.7 United Arab Emirates .....................5.7 Hong Kong SAR ............................5.7 Taiwan, China ................................5.6 Belgium .........................................5.6 Denmark ........................................5.5 Malaysia.........................................5.5 Singapore ......................................5.5 Korea, Rep. ...................................5.5 United States .................................5.4 Canada ..........................................5.4 Luxembourg ..................................5.4 Thailand .........................................5.4 Sweden .........................................5.4 Norway ..........................................5.4 Germany ........................................5.3 Guatemala .....................................5.3 Iceland ...........................................5.3 Netherlands ...................................5.3 Ireland............................................5.3 Philippines .....................................5.2 Finland ...........................................5.2 Sri Lanka .......................................5.2 Puerto Rico....................................5.2 United Kingdom .............................5.2 Lithuania ........................................5.2 Estonia...........................................5.1 Turkey............................................5.1 Portugal .........................................5.1 Cyprus ...........................................5.1 Kenya ............................................5.1 Egypt .............................................5.1 Costa Rica .....................................5.1 Latvia .............................................5.0 Indonesia .......................................5.0 Bulgaria .........................................5.0 France ...........................................5.0 Colombia .......................................5.0 Italy ................................................5.0 El Salvador.....................................4.9 Slovenia .........................................4.9 Australia .........................................4.9 Jordan ...........................................4.9 Oman ............................................4.9 Poland ...........................................4.9 Mauritius ........................................4.8 Peru ...............................................4.8 Bahrain ..........................................4.8 Gambia, The ..................................4.7 Macedonia, FYR ............................4.7 Mexico ...........................................4.7 Zambia ..........................................4.7 Albania...........................................4.7 Senegal .........................................4.7 Czech Republic .............................4.7 Croatia ...........................................4.6 Brazil..............................................4.6 Greece ...........................................4.6 Saudi Arabia ..................................4.6 Slovak Republic .............................4.6 Kazakhstan ....................................4.6 Armenia .........................................4.6 South Africa ...................................4.6 Lao PDR ........................................4.6 Azerbaijan ......................................4.6 China .............................................4.5 Spain .............................................4.5 Ukraine ..........................................4.5 SOURCE: MEAN 4.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 480 The Global Competitiveness Report 2014–2015 VALUE Ghana ............................................4.5 Madagascar ...................................4.5 Honduras .......................................4.5 Dominican Republic .......................4.4 Cambodia ......................................4.4 Kuwait ...........................................4.4 Montenegro ...................................4.4 Kyrgyz Republic .............................4.4 Malta .............................................4.4 Morocco ........................................4.4 Russian Federation ........................4.4 Romania ........................................4.4 Hungary .........................................4.4 Côte d’Ivoire ..................................4.4 Lebanon ........................................4.4 Chile ..............................................4.3 Tunisia ...........................................4.3 Myanmar........................................4.3 Barbados .......................................4.3 Uruguay .........................................4.3 Panama .........................................4.2 Mongolia ........................................4.2 Mali ................................................4.2 Cameroon......................................4.2 Tajikistan ........................................4.2 Pakistan .........................................4.2 Paraguay .......................................4.1 Moldova .........................................4.1 Burkina Faso..................................4.1 Uganda ..........................................4.1 Israel ..............................................4.1 Swaziland ......................................4.1 Vietnam .........................................4.1 Bhutan ...........................................4.1 Rwanda .........................................4.1 Malawi ...........................................4.0 Bangladesh....................................4.0 India...............................................4.0 Yemen ...........................................4.0 Gabon ...........................................4.0 Nigeria ...........................................3.9 Guyana ..........................................3.9 Seychelles......................................3.9 Serbia ............................................3.9 Tanzania ........................................3.9 Jamaica .........................................3.8 Iran, Islamic Rep. ...........................3.8 Nepal .............................................3.8 Georgia ..........................................3.8 Mozambique ..................................3.7 Sierra Leone ..................................3.7 Ethiopia..........................................3.7 Algeria ...........................................3.6 Suriname .......................................3.6 Zimbabwe ......................................3.6 Argentina .......................................3.6 Cape Verde ...................................3.6 Bolivia ............................................3.5 Nicaragua ......................................3.5 Botswana ......................................3.5 Lesotho .........................................3.5 Namibia .........................................3.5 Timor-Leste ...................................3.4 Guinea ...........................................3.4 Libya ..............................................3.4 Trinidad and Tobago......................3.3 Burundi ..........................................3.3 Venezuela ......................................3.2 Haiti ...............................................2.9 Mauritania ......................................2.8 Chad..............................................2.8 Angola ...........................................2.4 © 2014 World Economic Forum 1 MEAN 4.5 7 2.2: Data Tables 6.16 Buyer sophistication In your country, how do buyers make purchasing decisions? [1 = based solely on the lowest price; 7 = based on a sophisticated analysis of performance attributes] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Japan ............................................5.3 Qatar .............................................5.2 Switzerland ....................................5.0 Malaysia.........................................4.9 Luxembourg ..................................4.7 Finland ...........................................4.6 Hong Kong SAR ............................4.6 United Kingdom .............................4.6 United Arab Emirates .....................4.5 United States .................................4.5 Singapore ......................................4.5 Sweden .........................................4.5 New Zealand .................................4.5 Taiwan, China ................................4.3 Germany ........................................4.3 Canada ..........................................4.3 Netherlands ...................................4.3 China .............................................4.3 Norway ..........................................4.3 Belgium .........................................4.3 Ireland............................................4.2 Sri Lanka .......................................4.1 Thailand .........................................4.1 Korea, Rep. ...................................4.1 Bahrain ..........................................4.0 Puerto Rico....................................4.0 Austria ...........................................4.0 Kazakhstan ....................................4.0 Chile ..............................................4.0 Azerbaijan ......................................4.0 South Africa ...................................4.0 France ...........................................3.9 Malta .............................................3.9 El Salvador.....................................3.9 Indonesia .......................................3.9 Mauritius ........................................3.8 Cyprus ...........................................3.8 India...............................................3.8 Panama .........................................3.8 Peru ...............................................3.8 Iceland ...........................................3.8 Israel ..............................................3.8 Italy ................................................3.8 Russian Federation ........................3.7 Lao PDR ........................................3.7 Philippines .....................................3.7 Denmark ........................................3.7 Australia .........................................3.7 Costa Rica .....................................3.7 Tajikistan ........................................3.6 Bolivia ............................................3.6 Saudi Arabia ..................................3.6 Jordan ...........................................3.6 Uruguay .........................................3.6 Lesotho .........................................3.6 Guatemala .....................................3.6 Seychelles......................................3.6 Iran, Islamic Rep. ...........................3.5 Oman ............................................3.5 Brazil..............................................3.5 Rwanda .........................................3.5 Bangladesh....................................3.5 Mexico ...........................................3.5 Portugal .........................................3.5 Jamaica .........................................3.5 Cambodia ......................................3.5 Turkey............................................3.5 Spain .............................................3.4 Ghana ............................................3.4 Barbados .......................................3.4 Kyrgyz Republic .............................3.4 Kuwait ...........................................3.4 SOURCE: 1 MEAN 3.4 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.4 7 Ukraine ..........................................3.4 Zambia ..........................................3.4 Trinidad and Tobago......................3.4 Czech Republic .............................3.4 Armenia .........................................3.4 Swaziland ......................................3.4 Colombia .......................................3.3 Pakistan .........................................3.3 Namibia .........................................3.3 Côte d’Ivoire ..................................3.3 Argentina .......................................3.3 Greece ...........................................3.3 Vietnam .........................................3.3 Guyana ..........................................3.3 Lebanon ........................................3.3 Nigeria ...........................................3.3 Kenya ............................................3.2 Honduras .......................................3.2 Tunisia ...........................................3.2 Senegal .........................................3.2 Poland ...........................................3.2 Lithuania ........................................3.2 Nepal .............................................3.2 Georgia ..........................................3.1 Latvia .............................................3.1 Dominican Republic .......................3.1 Gambia, The ..................................3.1 Morocco ........................................3.1 Tanzania ........................................3.1 Algeria ...........................................3.0 Moldova .........................................3.0 Suriname .......................................3.0 Albania...........................................3.0 Mongolia ........................................3.0 Romania ........................................3.0 Estonia...........................................3.0 Nicaragua ......................................3.0 Cape Verde ...................................2.9 Bulgaria .........................................2.9 Botswana ......................................2.9 Montenegro ...................................2.9 Mali ................................................2.9 Zimbabwe ......................................2.9 Slovenia .........................................2.9 Malawi ...........................................2.9 Macedonia, FYR ............................2.8 Gabon ...........................................2.8 Paraguay .......................................2.8 Venezuela ......................................2.8 Bhutan ...........................................2.8 Cameroon......................................2.8 Hungary .........................................2.7 Ethiopia..........................................2.7 Slovak Republic .............................2.7 Myanmar........................................2.7 Croatia ...........................................2.7 Mozambique ..................................2.7 Sierra Leone ..................................2.6 Egypt .............................................2.6 Timor-Leste ...................................2.5 Madagascar ...................................2.5 Haiti ...............................................2.5 Mauritania ......................................2.5 Uganda ..........................................2.4 Serbia ............................................2.4 Angola ...........................................2.3 Libya ..............................................2.3 Yemen ...........................................2.2 Burundi ..........................................2.2 Chad..............................................2.0 Guinea ...........................................1.9 Burkina Faso..................................1.9 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 481 2014 World Economic Forum Data Tables Labor market efficiency 2.2: Data Tables 7.01 Cooperation in labor-employer relations In your country, how would you characterize labor-employer relations? [1 = generally confrontational; 7 = generally cooperative] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................6.2 Singapore ......................................6.1 Denmark ........................................6.0 Norway ..........................................5.8 Qatar .............................................5.7 Japan ............................................5.6 Netherlands ...................................5.5 New Zealand .................................5.5 Hong Kong SAR ............................5.5 United Arab Emirates .....................5.5 Iceland ...........................................5.4 Austria ...........................................5.4 Costa Rica .....................................5.4 Malaysia.........................................5.4 Luxembourg ..................................5.4 Ireland............................................5.4 Sweden .........................................5.4 Guatemala .....................................5.2 Germany ........................................5.2 Bahrain ..........................................5.1 Lao PDR ........................................5.1 United Kingdom .............................5.1 Taiwan, China ................................5.1 Rwanda .........................................5.0 Oman ............................................5.0 Canada ..........................................5.0 Finland ...........................................5.0 Estonia...........................................4.9 Philippines .....................................4.9 Puerto Rico....................................4.9 Mauritius ........................................4.9 Thailand .........................................4.9 Barbados .......................................4.9 Malta .............................................4.8 Latvia .............................................4.8 Cyprus ...........................................4.8 Albania...........................................4.7 Gambia, The ..................................4.7 Sri Lanka .......................................4.7 Côte d’Ivoire ..................................4.7 Honduras .......................................4.7 Armenia .........................................4.7 United States .................................4.7 Jordan ...........................................4.6 Mexico ...........................................4.6 Indonesia .......................................4.6 Colombia .......................................4.6 Chile ..............................................4.6 Kazakhstan ....................................4.5 Saudi Arabia ..................................4.5 Panama .........................................4.5 Czech Republic .............................4.5 Mali ................................................4.5 Tajikistan ........................................4.5 Dominican Republic .......................4.5 Kuwait ...........................................4.5 Senegal .........................................4.4 China .............................................4.4 Paraguay .......................................4.4 Zambia ..........................................4.4 Nigeria ...........................................4.4 Bhutan ...........................................4.3 Macedonia, FYR ............................4.3 Peru ...............................................4.3 Portugal .........................................4.3 Azerbaijan ......................................4.3 Nicaragua ......................................4.3 Malawi ...........................................4.3 Botswana ......................................4.3 Kenya ............................................4.3 Hungary .........................................4.3 Swaziland ......................................4.3 SOURCE: MEAN 4.4 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 484 The Global Competitiveness Report 2014–2015 VALUE Guyana ..........................................4.3 Cambodia ......................................4.2 Jamaica .........................................4.2 Israel ..............................................4.2 Madagascar ...................................4.2 Belgium .........................................4.2 Vietnam .........................................4.2 Georgia ..........................................4.2 El Salvador.....................................4.2 Lebanon ........................................4.2 Morocco ........................................4.2 Sierra Leone ..................................4.1 Ghana ............................................4.1 Moldova .........................................4.1 Lithuania ........................................4.1 Kyrgyz Republic .............................4.1 Russian Federation ........................4.1 India...............................................4.1 Uganda ..........................................4.1 Mongolia ........................................4.1 Spain .............................................4.1 Burkina Faso..................................4.1 Egypt .............................................4.0 Turkey............................................4.0 Ethiopia..........................................4.0 Yemen ...........................................4.0 Seychelles......................................4.0 Poland ...........................................4.0 Namibia .........................................4.0 Lesotho .........................................4.0 Libya ..............................................4.0 Bangladesh....................................4.0 Slovak Republic .............................4.0 Montenegro ...................................4.0 Pakistan .........................................3.9 Greece ...........................................3.9 Australia .........................................3.9 Timor-Leste ...................................3.9 Bulgaria .........................................3.9 Zimbabwe ......................................3.9 Gabon ...........................................3.9 Cape Verde ...................................3.9 Myanmar........................................3.8 Haiti ...............................................3.8 Tanzania ........................................3.8 Tunisia ...........................................3.8 Ukraine ..........................................3.8 Bolivia ............................................3.7 Slovenia .........................................3.7 Suriname .......................................3.7 Brazil..............................................3.7 Guinea ...........................................3.7 Romania ........................................3.7 Croatia ...........................................3.7 Chad..............................................3.6 Cameroon......................................3.6 France ...........................................3.6 Algeria ...........................................3.6 Mozambique ..................................3.6 Korea, Rep. ...................................3.6 Trinidad and Tobago......................3.5 Iran, Islamic Rep. ...........................3.5 Argentina .......................................3.5 Mauritania ......................................3.4 Italy ................................................3.4 Burundi ..........................................3.4 Uruguay .........................................3.4 Serbia ............................................3.3 Nepal .............................................3.2 Angola ...........................................3.2 Venezuela ......................................2.9 South Africa ...................................2.5 © 2014 World Economic Forum 1 MEAN 4.4 7 2.2: Data Tables 7.02 Flexibility of wage determination In your country, how are wages generally set? [1 = by a centralized bargaining process; 7 = by each individual company] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Estonia...........................................6.2 Uganda ..........................................6.2 United Arab Emirates .....................6.1 Hong Kong SAR ............................6.1 Qatar .............................................6.0 Latvia .............................................6.0 Singapore ......................................6.0 Lithuania ........................................6.0 Japan ............................................5.9 United Kingdom .............................5.8 Yemen ...........................................5.8 Bahrain ..........................................5.8 Saudi Arabia ..................................5.8 New Zealand .................................5.8 Switzerland ....................................5.7 Kyrgyz Republic .............................5.7 Mongolia ........................................5.7 Macedonia, FYR ............................5.7 Puerto Rico....................................5.7 Kazakhstan ....................................5.7 Guatemala .....................................5.7 Lao PDR ........................................5.7 Gambia, The ..................................5.7 United States .................................5.6 Chile ..............................................5.6 Georgia ..........................................5.6 Oman ............................................5.6 Russian Federation ........................5.6 Poland ...........................................5.6 Moldova .........................................5.5 Taiwan, China ................................5.5 Paraguay .......................................5.5 Malaysia.........................................5.5 Croatia ...........................................5.5 Nigeria ...........................................5.5 Myanmar........................................5.5 Morocco ........................................5.4 Jamaica .........................................5.4 Peru ...............................................5.4 Azerbaijan ......................................5.4 Sri Lanka .......................................5.4 Botswana ......................................5.4 Czech Republic .............................5.4 Bulgaria .........................................5.4 Serbia ............................................5.4 Canada ..........................................5.4 Guinea ...........................................5.3 Malawi ...........................................5.3 Turkey............................................5.3 Burkina Faso..................................5.3 Lebanon ........................................5.3 Malta .............................................5.3 Colombia .......................................5.3 Rwanda .........................................5.3 Dominican Republic .......................5.2 Kuwait ...........................................5.2 Madagascar ...................................5.2 Korea, Rep. ...................................5.2 Bhutan ...........................................5.2 Vietnam .........................................5.1 Burundi ..........................................5.1 Haiti ...............................................5.1 Zambia ..........................................5.1 Hungary .........................................5.1 Armenia .........................................5.1 Chad..............................................5.1 Egypt .............................................5.1 Romania ........................................5.0 Kenya ............................................5.0 Guyana ..........................................5.0 Sierra Leone ..................................5.0 Suriname .......................................5.0 SOURCE: 1 MEAN 4.9 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.9 7 Jordan ...........................................5.0 Ethiopia..........................................5.0 Montenegro ...................................5.0 Costa Rica .....................................5.0 Ukraine ..........................................4.9 Israel ..............................................4.9 Ireland............................................4.9 Cape Verde ...................................4.9 Barbados .......................................4.9 Libya ..............................................4.9 Seychelles......................................4.9 China .............................................4.8 Bangladesh....................................4.8 Philippines .....................................4.8 France ...........................................4.8 Mexico ...........................................4.8 Tajikistan ........................................4.8 Nicaragua ......................................4.8 Namibia .........................................4.8 Cambodia ......................................4.8 Portugal .........................................4.7 Mali ................................................4.7 Côte d’Ivoire ..................................4.7 Luxembourg ..................................4.7 Honduras .......................................4.7 Cameroon......................................4.7 Mauritius ........................................4.7 Trinidad and Tobago......................4.6 Mauritania ......................................4.6 Slovak Republic .............................4.6 Pakistan .........................................4.6 Algeria ...........................................4.6 Tanzania ........................................4.6 Panama .........................................4.6 Denmark ........................................4.5 Cyprus ...........................................4.5 Swaziland ......................................4.5 Timor-Leste ...................................4.5 Gabon ...........................................4.5 Senegal .........................................4.5 India...............................................4.4 Indonesia .......................................4.4 Nepal .............................................4.4 Thailand .........................................4.3 Spain .............................................4.2 Greece ...........................................4.2 Tunisia ...........................................4.2 Iceland ...........................................4.1 Albania...........................................4.1 Angola ...........................................4.1 Lesotho .........................................4.0 Bolivia ............................................4.0 Brazil..............................................4.0 El Salvador.....................................3.9 Slovenia .........................................3.9 Mozambique ..................................3.9 Belgium .........................................3.8 Iran, Islamic Rep. ...........................3.8 Venezuela ......................................3.7 Australia .........................................3.7 Norway ..........................................3.7 Sweden .........................................3.6 Netherlands ...................................3.5 Germany ........................................3.4 Ghana ............................................3.3 Italy ................................................3.0 South Africa ...................................2.7 Argentina .......................................2.6 Zimbabwe ......................................2.6 Austria ...........................................2.5 Finland ...........................................2.4 Uruguay .........................................2.4 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 485 2.2: Data Tables 7.03 Hiring and firing practices In your country, how would you characterize the hiring and firing of workers? [1 = heavily impeded by regulations; 7 = extremely flexible] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Hong Kong SAR ............................5.7 Switzerland ....................................5.7 Singapore ......................................5.4 Iceland ...........................................5.3 Qatar .............................................5.3 Denmark ........................................5.3 Nigeria ...........................................5.2 United Arab Emirates .....................5.1 Malaysia.........................................4.9 Uganda ..........................................4.9 United States .................................4.9 Estonia...........................................4.8 Cambodia ......................................4.8 Georgia ..........................................4.7 China .............................................4.6 Zambia ..........................................4.5 Kenya ............................................4.5 Armenia .........................................4.5 Sierra Leone ..................................4.5 United Kingdom .............................4.5 Taiwan, China ................................4.4 Kazakhstan ....................................4.4 Thailand .........................................4.4 Guatemala .....................................4.4 Azerbaijan ......................................4.4 Canada ..........................................4.4 Macedonia, FYR ............................4.4 Bangladesh....................................4.4 Côte d’Ivoire ..................................4.4 Bahrain ..........................................4.3 Rwanda .........................................4.3 Indonesia .......................................4.3 Costa Rica .....................................4.3 Guyana ..........................................4.3 Mali ................................................4.3 Madagascar ...................................4.2 Gambia, The ..................................4.2 Cameroon......................................4.2 Cyprus ...........................................4.2 Ireland............................................4.2 Russian Federation ........................4.2 Mauritius ........................................4.2 Hungary .........................................4.2 Israel ..............................................4.2 Tajikistan ........................................4.1 Lao PDR ........................................4.1 India...............................................4.1 Nicaragua ......................................4.1 Pakistan .........................................4.1 Latvia .............................................4.1 Myanmar........................................4.1 Kyrgyz Republic .............................4.1 Burkina Faso..................................4.1 Saudi Arabia ..................................4.1 Jamaica .........................................4.1 Senegal .........................................4.1 Romania ........................................4.1 New Zealand .................................4.1 Haiti ...............................................4.0 Jordan ...........................................4.0 Dominican Republic .......................4.0 Montenegro ...................................4.0 Bhutan ...........................................3.9 Ukraine ..........................................3.9 Vietnam .........................................3.9 Chile ..............................................3.9 Turkey............................................3.9 Albania...........................................3.9 Egypt .............................................3.9 Lebanon ........................................3.9 Mongolia ........................................3.9 Ghana ............................................3.9 SOURCE: MEAN 3.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 486 The Global Competitiveness Report 2014–2015 VALUE Tanzania ........................................3.9 Honduras .......................................3.9 Kuwait ...........................................3.9 Lesotho .........................................3.9 Yemen ...........................................3.8 Ethiopia..........................................3.8 Colombia .......................................3.8 El Salvador.....................................3.8 Swaziland ......................................3.8 Botswana ......................................3.8 Trinidad and Tobago......................3.7 Malta .............................................3.7 Panama .........................................3.7 Morocco ........................................3.7 Luxembourg ..................................3.7 Seychelles......................................3.6 Barbados .......................................3.6 Malawi ...........................................3.6 Oman ............................................3.6 Greece ...........................................3.6 Moldova .........................................3.6 Puerto Rico....................................3.6 Libya ..............................................3.6 Bulgaria .........................................3.6 Tunisia ...........................................3.5 Bolivia ............................................3.5 Finland ...........................................3.5 Sweden .........................................3.5 Austria ...........................................3.5 Mozambique ..................................3.4 Mexico ...........................................3.4 Philippines .....................................3.4 Guinea ...........................................3.4 Korea, Rep. ...................................3.4 Timor-Leste ...................................3.4 Gabon ...........................................3.4 Germany ........................................3.4 Paraguay .......................................3.4 Cape Verde ...................................3.4 Poland ...........................................3.4 Portugal .........................................3.3 Chad..............................................3.3 Serbia ............................................3.3 Spain .............................................3.3 Mauritania ......................................3.3 Burundi ..........................................3.3 Nepal .............................................3.2 Iran, Islamic Rep. ...........................3.2 Czech Republic .............................3.2 Algeria ...........................................3.1 Netherlands ...................................3.1 Sri Lanka .......................................3.0 Lithuania ........................................3.0 Suriname .......................................3.0 Uruguay .........................................2.9 Namibia .........................................2.9 Croatia ...........................................2.9 Peru ...............................................2.9 Slovak Republic .............................2.9 Norway ..........................................2.8 Japan ............................................2.8 France ...........................................2.7 Brazil..............................................2.7 Australia .........................................2.7 Angola ...........................................2.6 Argentina .......................................2.6 Belgium .........................................2.6 Slovenia .........................................2.4 Italy ................................................2.4 Zimbabwe ......................................2.2 South Africa ...................................2.1 Venezuela ......................................1.4 © 2014 World Economic Forum 1 MEAN 3.8 7 2.2: Data Tables 7.04 Redundancy costs Redundancy costs in weeks of salary 2013 RANK 1 1 1 1 5 6 7 8 8 8 8 8 13 13 15 16 17 18 19 20 21 22 23 24 25 26 26 26 26 26 26 32 33 33 35 35 37 38 38 38 38 42 43 43 45 46 47 48 49 50 51 52 53 54 55 56 57 57 57 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Denmark ........................................0.0 New Zealand .................................0.0 Puerto Rico....................................0.0 United States .................................0.0 Austria ...........................................2.0 Singapore ......................................3.0 Romania ........................................4.0 Bahrain ..........................................4.3 Japan ............................................4.3 Oman ............................................4.3 Timor-Leste ...................................4.3 United Arab Emirates .....................4.3 Georgia ..........................................4.3 Jordan ...........................................4.3 Cyprus ...........................................5.7 Hong Kong SAR ............................5.8 Kenya ............................................6.5 Italy ................................................7.2 Belgium .........................................7.2 Malta .............................................7.3 Bulgaria .........................................7.5 Serbia ............................................7.7 Guinea ...........................................7.9 Bhutan ...........................................8.3 United Kingdom .............................8.5 Kazakhstan ....................................8.7 Lebanon ........................................8.7 Mongolia ........................................8.7 Netherlands ...................................8.7 Norway ..........................................8.7 Uganda ..........................................8.7 Suriname .......................................8.8 South Africa ...................................9.3 Tanzania ........................................9.3 Latvia .............................................9.7 Namibia .........................................9.7 Canada ........................................10.0 Finland .........................................10.1 Haiti .............................................10.1 Iceland .........................................10.1 Switzerland ..................................10.1 Libya ............................................10.3 Burkina Faso................................10.5 Mauritania ....................................10.5 Mauritius ......................................10.6 Slovenia .......................................10.7 Armenia .......................................11.0 Montenegro .................................11.2 Peru .............................................11.4 Australia .......................................11.7 France .........................................11.8 Tunisia .........................................12.1 Ireland..........................................12.2 Madagascar .................................12.3 Estonia.........................................12.9 Rwanda .......................................13.0 Chad............................................13.0 Macedonia, FYR ..........................13.0 Ukraine ........................................13.0 Côte d’Ivoire ................................13.1 Hungary .......................................13.4 Seychelles....................................13.5 Mali ..............................................13.7 Senegal .......................................13.7 Jamaica .......................................14.0 Sweden .......................................14.4 Swaziland ....................................14.6 Gabon .........................................14.8 Nicaragua ....................................14.9 Lesotho .......................................15.0 Croatia .........................................15.1 Cameroon....................................15.3 73 74 75 76 76 78 79 80 80 80 83 83 83 86 87 88 89 89 91 92 93 94 95 96 97 98 99 100 101 101 103 104 105 106 107 108 109 110 111 112 112 114 115 116 117 118 118 120 120 120 120 124 124 126 127 128 129 129 131 132 133 134 135 136 137 138 139 140 141 142 143 143 COUNTRY/ECONOMY VALUE Brazil............................................15.4 Tajikistan ......................................15.5 India.............................................15.8 Burundi ........................................15.9 Greece .........................................15.9 Barbados .....................................16.0 Nigeria .........................................16.2 Colombia .....................................16.7 Guyana ........................................16.7 Malawi .........................................16.7 Algeria .........................................17.3 Kyrgyz Republic ...........................17.3 Russian Federation ......................17.3 Spain ...........................................17.4 Panama .......................................18.1 Costa Rica ...................................18.7 Poland .........................................18.8 Slovak Republic ...........................18.8 Ethiopia........................................19.1 Cambodia ....................................19.4 Saudi Arabia ................................19.5 Myanmar......................................20.2 Czech Republic ...........................20.2 Trinidad and Tobago....................20.5 Morocco ......................................20.7 Uruguay .......................................20.8 Albania.........................................20.8 Germany ......................................21.6 Azerbaijan ....................................21.7 Luxembourg ................................21.7 Botswana ....................................21.7 Mexico .........................................22.0 Taiwan, China ..............................22.6 Moldova .......................................22.6 El Salvador...................................22.9 Portugal .......................................23.1 Iran, Islamic Rep. .........................23.1 Qatar ...........................................23.2 Malaysia.......................................23.9 Lithuania ......................................24.6 Vietnam .......................................24.6 Gambia, The ................................26.0 Paraguay .....................................26.1 Dominican Republic .....................26.2 Guatemala ...................................27.0 Nepal ...........................................27.2 Pakistan .......................................27.2 Chile ............................................27.4 China ...........................................27.4 Korea, Rep. .................................27.4 Yemen .........................................27.4 Israel ............................................27.4 Philippines ...................................27.4 Kuwait .........................................28.1 Cape Verde .................................29.5 Turkey..........................................29.8 Argentina .....................................30.3 Honduras .....................................30.3 Bangladesh..................................31.0 Angola .........................................31.0 Thailand .......................................36.0 Egypt ...........................................36.8 Mozambique ................................37.5 Lao PDR ......................................47.2 Ghana ..........................................49.8 Zambia ........................................50.6 Indonesia .....................................57.8 Sri Lanka .....................................58.5 Sierra Leone ................................78.3 Zimbabwe ....................................82.3 Bolivia ..............................not possible Venezuela ........................not possible SOURCES: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises; World Economic Forum’s calculations © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 487 2.2: Data Tables 7.05 Effect of taxation on incentives to work In your country, to what extent do taxes reduce the incentive to work? [1 = significantly reduce the incentive to work; 7 = do not reduce incentive to work at all] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Bahrain ..........................................6.3 Qatar .............................................6.3 United Arab Emirates .....................6.2 Singapore ......................................6.0 Hong Kong SAR ............................5.9 Oman ............................................5.8 Kuwait ...........................................5.3 Malaysia.........................................5.1 Mauritius ........................................5.1 Luxembourg ..................................5.1 Switzerland ....................................5.1 New Zealand .................................5.0 Saudi Arabia ..................................4.9 Botswana ......................................4.6 South Africa ...................................4.5 Rwanda .........................................4.5 Paraguay .......................................4.4 Cyprus ...........................................4.4 Macedonia, FYR ............................4.4 Georgia ..........................................4.4 Nigeria ...........................................4.3 Trinidad and Tobago......................4.3 Canada ..........................................4.3 Estonia...........................................4.3 Gabon ...........................................4.2 Zambia ..........................................4.2 Malta .............................................4.2 Chile ..............................................4.2 Norway ..........................................4.2 Sweden .........................................4.2 Indonesia .......................................4.1 Lao PDR ........................................4.1 United Kingdom .............................4.1 Cambodia ......................................4.1 Panama .........................................4.0 China .............................................4.0 United States .................................4.0 Ghana ............................................4.0 Namibia .........................................4.0 Lesotho .........................................4.0 Angola ...........................................4.0 Morocco ........................................3.9 Kazakhstan ....................................3.9 Senegal .........................................3.9 India...............................................3.9 Bhutan ...........................................3.9 Philippines .....................................3.9 Seychelles......................................3.9 Taiwan, China ................................3.9 Sri Lanka .......................................3.9 Lebanon ........................................3.8 Libya ..............................................3.8 Albania...........................................3.8 Sierra Leone ..................................3.8 Guatemala .....................................3.8 Myanmar........................................3.8 Guinea ...........................................3.8 Barbados .......................................3.8 Timor-Leste ...................................3.8 Thailand .........................................3.8 Japan ............................................3.8 Netherlands ...................................3.7 Burkina Faso..................................3.7 Costa Rica .....................................3.7 Montenegro ...................................3.7 Côte d’Ivoire ..................................3.7 Germany ........................................3.7 Mongolia ........................................3.6 Swaziland ......................................3.6 Israel ..............................................3.6 Tunisia ...........................................3.6 Guyana ..........................................3.6 SOURCE: MEAN 3.7 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 488 The Global Competitiveness Report 2014–2015 VALUE Finland ...........................................3.6 Uganda ..........................................3.6 Kenya ............................................3.6 Bolivia ............................................3.6 Gambia, The ..................................3.6 Mozambique ..................................3.6 Bangladesh....................................3.6 Australia .........................................3.5 Iran, Islamic Rep. ...........................3.5 Pakistan .........................................3.5 Suriname .......................................3.5 Cameroon......................................3.5 Nepal .............................................3.5 Vietnam .........................................3.4 Azerbaijan ......................................3.4 Poland ...........................................3.4 Cape Verde ...................................3.4 Haiti ...............................................3.4 Bulgaria .........................................3.4 Kyrgyz Republic .............................3.4 Ireland............................................3.4 Armenia .........................................3.4 Jordan ...........................................3.3 Mali ................................................3.3 Algeria ...........................................3.3 Turkey............................................3.3 Iceland ...........................................3.3 Malawi ...........................................3.3 Zimbabwe ......................................3.3 Jamaica .........................................3.3 Latvia .............................................3.3 Peru ...............................................3.2 Tanzania ........................................3.2 Ethiopia..........................................3.2 Nicaragua ......................................3.2 El Salvador.....................................3.2 Tajikistan ........................................3.2 Czech Republic .............................3.1 Madagascar ...................................3.1 Puerto Rico....................................3.1 Korea, Rep. ...................................3.1 Venezuela ......................................3.1 Russian Federation ........................3.0 Mexico ...........................................3.0 Egypt .............................................3.0 Dominican Republic .......................2.9 Slovak Republic .............................2.9 Uruguay .........................................2.9 Austria ...........................................2.9 Colombia .......................................2.9 Moldova .........................................2.9 Lithuania ........................................2.9 France ...........................................2.9 Mauritania ......................................2.8 Yemen ...........................................2.8 Hungary .........................................2.8 Honduras .......................................2.8 Spain .............................................2.8 Portugal .........................................2.8 Denmark ........................................2.7 Burundi ..........................................2.7 Chad..............................................2.7 Ukraine ..........................................2.6 Serbia ............................................2.6 Slovenia .........................................2.5 Greece ...........................................2.5 Brazil..............................................2.5 Romania ........................................2.5 Belgium .........................................2.3 Croatia ...........................................2.2 Italy ................................................1.9 Argentina .......................................1.9 © 2014 World Economic Forum 1 MEAN 3.7 7 2.2: Data Tables 7.06 Pay and productivity In your country, to what extent is pay related to worker productivity? [1 = not related to worker productivity; 7 = strongly related to worker productivity] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Hong Kong SAR ............................5.5 Malaysia.........................................5.4 Qatar .............................................5.4 Singapore ......................................5.3 Switzerland ....................................5.3 United Arab Emirates .....................5.2 Taiwan, China ................................5.1 Lao PDR ........................................5.0 Estonia...........................................4.9 United States .................................4.8 Japan ............................................4.8 Lithuania ........................................4.8 Latvia .............................................4.8 Mongolia ........................................4.8 China .............................................4.8 Kazakhstan ....................................4.7 United Kingdom .............................4.7 Macedonia, FYR ............................4.7 Czech Republic .............................4.6 Bahrain ..........................................4.6 New Zealand .................................4.6 Puerto Rico....................................4.6 Vietnam .........................................4.6 Russian Federation ........................4.6 Saudi Arabia ..................................4.5 Kyrgyz Republic .............................4.5 Philippines .....................................4.5 Ireland............................................4.5 Canada ..........................................4.5 Indonesia .......................................4.5 Ukraine ..........................................4.5 Slovak Republic .............................4.4 Albania...........................................4.4 Azerbaijan ......................................4.4 Moldova .........................................4.4 Korea, Rep. ...................................4.4 Sri Lanka .......................................4.4 Tajikistan ........................................4.4 Cambodia ......................................4.3 Germany ........................................4.3 Chile ..............................................4.3 Bhutan ...........................................4.3 Luxembourg ..................................4.3 Jordan ...........................................4.3 Gambia, The ..................................4.3 Guatemala .....................................4.3 Mauritius ........................................4.2 Armenia .........................................4.2 Iceland ...........................................4.2 Thailand .........................................4.2 Nigeria ...........................................4.2 Costa Rica .....................................4.2 Poland ...........................................4.1 Côte d’Ivoire ..................................4.1 Bulgaria .........................................4.1 Kenya ............................................4.1 Georgia ..........................................4.1 Malta .............................................4.1 Cyprus ...........................................4.0 Lebanon ........................................4.0 Malawi ...........................................4.0 Denmark ........................................4.0 Ghana ............................................4.0 Hungary .........................................4.0 Morocco ........................................4.0 Romania ........................................4.0 Nicaragua ......................................4.0 Rwanda .........................................4.0 India...............................................4.0 Oman ............................................3.9 Madagascar ...................................3.9 Austria ...........................................3.9 SOURCE: 1 MEAN 3.9 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.9 7 Finland ...........................................3.9 Montenegro ...................................3.9 Peru ...............................................3.9 Israel ..............................................3.9 France ...........................................3.9 Croatia ...........................................3.9 Myanmar........................................3.9 Honduras .......................................3.8 Turkey............................................3.8 Botswana ......................................3.8 Dominican Republic .......................3.8 Lesotho .........................................3.8 Guyana ..........................................3.8 Pakistan .........................................3.8 Mexico ...........................................3.8 Sweden .........................................3.8 Bolivia ............................................3.8 Senegal .........................................3.8 Timor-Leste ...................................3.7 Norway ..........................................3.7 Swaziland ......................................3.7 Netherlands ...................................3.7 Colombia .......................................3.7 Zambia ..........................................3.6 Tunisia ...........................................3.6 Yemen ...........................................3.6 Ethiopia..........................................3.6 Belgium .........................................3.6 Panama .........................................3.5 Seychelles......................................3.5 Bangladesh....................................3.5 Kuwait ...........................................3.5 Sierra Leone ..................................3.5 Mali ................................................3.5 Namibia .........................................3.5 Slovenia .........................................3.5 Paraguay .......................................3.5 El Salvador.....................................3.5 Barbados .......................................3.5 Gabon ...........................................3.4 Portugal .........................................3.4 Cameroon......................................3.4 Jamaica .........................................3.4 Serbia ............................................3.4 Brazil..............................................3.3 Cape Verde ...................................3.3 Haiti ...............................................3.3 Suriname .......................................3.3 Greece ...........................................3.3 Tanzania ........................................3.3 Algeria ...........................................3.3 Trinidad and Tobago......................3.3 Australia .........................................3.2 Uganda ..........................................3.2 Spain .............................................3.2 Nepal .............................................3.1 Iran, Islamic Rep. ...........................3.1 Burkina Faso..................................3.1 Egypt .............................................3.0 Libya ..............................................3.0 Mozambique ..................................2.9 Guinea ...........................................2.8 Chad..............................................2.8 South Africa ...................................2.7 Burundi ..........................................2.6 Venezuela ......................................2.6 Italy ................................................2.6 Mauritania ......................................2.5 Angola ...........................................2.5 Argentina .......................................2.5 Zimbabwe ......................................2.3 Uruguay .........................................2.3 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 489 2.2: Data Tables 7.07 Reliance on professional management In your country, who holds senior management positions? [1 = usually relatives or friends without regard to merit; 7 = mostly professional managers chosen for merit and qualifications] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 New Zealand .................................6.5 Norway ..........................................6.2 Finland ...........................................6.2 Netherlands ...................................6.1 Denmark ........................................6.0 Singapore ......................................6.0 Switzerland ....................................5.9 Canada ..........................................5.9 Sweden .........................................5.9 United Kingdom .............................5.8 Belgium .........................................5.7 United States .................................5.7 Australia .........................................5.6 Ireland............................................5.6 Malaysia.........................................5.6 Qatar .............................................5.6 Luxembourg ..................................5.5 Japan ............................................5.5 Germany ........................................5.5 United Arab Emirates .....................5.5 South Africa ...................................5.5 Estonia...........................................5.4 Puerto Rico....................................5.3 Taiwan, China ................................5.3 Iceland ...........................................5.3 Austria ...........................................5.3 Hong Kong SAR ............................5.2 Indonesia .......................................5.0 Philippines .....................................5.0 Gambia, The ..................................4.9 Oman ............................................4.9 Sri Lanka .......................................4.8 Latvia .............................................4.8 Kenya ............................................4.8 Rwanda .........................................4.8 Botswana ......................................4.8 Barbados .......................................4.8 Zambia ..........................................4.7 Chile ..............................................4.7 Malawi ...........................................4.7 Zimbabwe ......................................4.7 Costa Rica .....................................4.7 China .............................................4.6 Brazil..............................................4.6 Saudi Arabia ..................................4.6 Jamaica .........................................4.5 Czech Republic .............................4.5 France ...........................................4.5 Korea, Rep. ...................................4.5 Lithuania ........................................4.5 Thailand .........................................4.5 Nigeria ...........................................4.5 Bahrain ..........................................4.5 Peru ...............................................4.5 Mauritius ........................................4.4 Seychelles......................................4.4 Colombia .......................................4.4 Ghana ............................................4.4 Spain .............................................4.3 Guatemala .....................................4.3 Trinidad and Tobago......................4.3 Swaziland ......................................4.3 Turkey............................................4.3 Morocco ........................................4.3 Lao PDR ........................................4.3 Bhutan ...........................................4.3 Venezuela ......................................4.3 Argentina .......................................4.2 Namibia .........................................4.2 Sierra Leone ..................................4.2 Poland ...........................................4.2 Jordan ...........................................4.2 SOURCE: MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 490 The Global Competitiveness Report 2014–2015 VALUE Portugal .........................................4.2 Slovak Republic .............................4.2 Kazakhstan ....................................4.2 Israel ..............................................4.2 India...............................................4.2 Georgia ..........................................4.1 Mexico ...........................................4.1 Honduras .......................................4.1 Senegal .........................................4.1 Uruguay .........................................4.0 Côte d’Ivoire ..................................4.0 Malta .............................................4.0 Russian Federation ........................4.0 Cyprus ...........................................3.9 Pakistan .........................................3.9 Uganda ..........................................3.9 Cambodia ......................................3.9 El Salvador.....................................3.9 Madagascar ...................................3.9 Slovenia .........................................3.8 Albania...........................................3.8 Tunisia ...........................................3.8 Armenia .........................................3.8 Azerbaijan ......................................3.8 Bolivia ............................................3.8 Greece ...........................................3.8 Croatia ...........................................3.8 Panama .........................................3.8 Montenegro ...................................3.8 Gabon ...........................................3.8 Dominican Republic .......................3.7 Suriname .......................................3.7 Mongolia ........................................3.7 Tanzania ........................................3.7 Macedonia, FYR ............................3.7 Guyana ..........................................3.6 Cameroon......................................3.6 Bangladesh....................................3.6 Moldova .........................................3.6 Kuwait ...........................................3.6 Bulgaria .........................................3.6 Hungary .........................................3.5 Ukraine ..........................................3.5 Tajikistan ........................................3.5 Vietnam .........................................3.5 Nepal .............................................3.4 Lesotho .........................................3.4 Mozambique ..................................3.4 Cape Verde ...................................3.4 Italy ................................................3.4 Nicaragua ......................................3.4 Ethiopia..........................................3.4 Lebanon ........................................3.3 Romania ........................................3.3 Kyrgyz Republic .............................3.3 Serbia ............................................3.2 Paraguay .......................................3.2 Timor-Leste ...................................3.2 Haiti ...............................................3.2 Iran, Islamic Rep. ...........................3.1 Yemen ...........................................3.1 Egypt .............................................3.1 Mali ................................................2.9 Burkina Faso..................................2.9 Myanmar........................................2.9 Guinea ...........................................2.8 Burundi ..........................................2.8 Libya ..............................................2.7 Algeria ...........................................2.6 Angola ...........................................2.2 Chad..............................................2.1 Mauritania ......................................2.0 © 2014 World Economic Forum 1 MEAN 4.2 7 2.2: Data Tables 7.08 Country capacity to retain talent Does your country retain talented people? [1 = the best and brightest leave to pursue opportunities in other countries; 7 = the best and brightest stay and pursue opportunities in the country] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Switzerland ....................................5.8 Qatar .............................................5.8 United States .................................5.7 Finland ...........................................5.6 Norway ..........................................5.6 United Arab Emirates .....................5.5 Hong Kong SAR ............................5.3 Singapore ......................................5.2 Malaysia.........................................5.1 Germany ........................................5.1 United Kingdom .............................5.0 Luxembourg ..................................5.0 Netherlands ...................................4.8 Canada ..........................................4.8 Chile ..............................................4.8 Costa Rica .....................................4.8 Sweden .........................................4.8 Bahrain ..........................................4.7 Panama .........................................4.6 Belgium .........................................4.5 Oman ............................................4.5 Saudi Arabia ..................................4.4 Korea, Rep. ...................................4.4 Japan ............................................4.4 Austria ...........................................4.4 Iceland ...........................................4.4 Rwanda .........................................4.3 Australia .........................................4.2 Barbados .......................................4.2 Ireland............................................4.2 China .............................................4.2 Indonesia .......................................4.2 Thailand .........................................4.1 Lao PDR ........................................4.1 Guatemala .....................................4.1 Bhutan ...........................................4.1 Malta .............................................4.1 Cyprus ...........................................4.0 Guyana ..........................................4.0 Denmark ........................................3.9 Peru ...............................................3.9 India...............................................3.9 Jordan ...........................................3.9 Brazil..............................................3.9 Morocco ........................................3.8 Taiwan, China ................................3.8 Kenya ............................................3.8 Bolivia ............................................3.8 Côte d’Ivoire ..................................3.8 South Africa ...................................3.7 Cambodia ......................................3.7 New Zealand .................................3.7 Angola ...........................................3.7 Cape Verde ...................................3.7 Israel ..............................................3.6 France ...........................................3.6 Ghana ............................................3.6 Timor-Leste ...................................3.6 Botswana ......................................3.5 Philippines .....................................3.5 Azerbaijan ......................................3.5 Tajikistan ........................................3.5 Mexico ...........................................3.5 El Salvador.....................................3.5 Mali ................................................3.4 Gabon ...........................................3.4 Zambia ..........................................3.4 Lesotho .........................................3.4 Kuwait ...........................................3.4 Gambia, The ..................................3.4 Kazakhstan ....................................3.4 Namibia .........................................3.4 SOURCE: 1 MEAN 3.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.5 7 Mozambique ..................................3.4 Colombia .......................................3.4 Trinidad and Tobago......................3.4 Honduras .......................................3.4 Senegal .........................................3.4 Malawi ...........................................3.3 Argentina .......................................3.3 Czech Republic .............................3.3 Montenegro ...................................3.3 Dominican Republic .......................3.3 Uruguay .........................................3.3 Vietnam .........................................3.2 Mauritius ........................................3.2 Turkey............................................3.2 Pakistan .........................................3.2 Ethiopia..........................................3.1 Nicaragua ......................................3.1 Seychelles......................................3.1 Portugal .........................................3.1 Nigeria ...........................................3.1 Albania...........................................3.1 Latvia .............................................3.1 Tunisia ...........................................3.0 Greece ...........................................3.0 Estonia...........................................3.0 Tanzania ........................................3.0 Burkina Faso..................................3.0 Paraguay .......................................3.0 Georgia ..........................................3.0 Cameroon......................................3.0 Russian Federation ........................2.9 Madagascar ...................................2.9 Jamaica .........................................2.9 Puerto Rico....................................2.9 Spain .............................................2.9 Sri Lanka .......................................2.9 Slovenia .........................................2.9 Egypt .............................................2.9 Mongolia ........................................2.8 Suriname .......................................2.8 Uganda ..........................................2.8 Swaziland ......................................2.8 Bangladesh....................................2.7 Nepal .............................................2.7 Poland ...........................................2.7 Libya ..............................................2.7 Lithuania ........................................2.7 Zimbabwe ......................................2.7 Italy ................................................2.6 Hungary .........................................2.6 Armenia .........................................2.6 Sierra Leone ..................................2.5 Iran, Islamic Rep. ...........................2.5 Guinea ...........................................2.5 Macedonia, FYR ............................2.5 Romania ........................................2.5 Chad..............................................2.4 Slovak Republic .............................2.4 Mauritania ......................................2.3 Ukraine ..........................................2.3 Algeria ...........................................2.3 Lebanon ........................................2.3 Haiti ...............................................2.2 Kyrgyz Republic .............................2.2 Croatia ...........................................2.1 Burundi ..........................................2.0 Yemen ...........................................1.9 Moldova .........................................1.9 Serbia ............................................1.8 Bulgaria .........................................1.8 Venezuela ......................................1.8 Myanmar........................................1.7 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 491 2.2: Data Tables 7.09 Country capacity to attract talent Does your country attract talented people from abroad? [1 = not at all; 7 = attracts the best and brightest from around the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................6.1 Singapore ......................................6.0 United Arab Emirates .....................5.9 Qatar .............................................5.9 United Kingdom .............................5.9 United States .................................5.8 Hong Kong SAR ............................5.6 Luxembourg ..................................5.5 Canada ..........................................5.2 Ireland............................................5.1 Bahrain ..........................................5.1 Malaysia.........................................5.0 Panama .........................................4.9 Norway ..........................................4.8 Netherlands ...................................4.8 Australia .........................................4.8 Saudi Arabia ..................................4.7 Germany ........................................4.7 New Zealand .................................4.6 Rwanda .........................................4.6 Barbados .......................................4.5 Oman ............................................4.4 Chile ..............................................4.3 Malta .............................................4.3 Indonesia .......................................4.3 Sweden .........................................4.3 China .............................................4.2 Korea, Rep. ...................................4.2 Austria ...........................................4.1 Guyana ..........................................4.0 Seychelles......................................4.0 Belgium .........................................4.0 Costa Rica .....................................4.0 Azerbaijan ......................................4.0 Jordan ...........................................4.0 Thailand .........................................3.9 Kazakhstan ....................................3.9 Mauritius ........................................3.9 South Africa ...................................3.9 Morocco ........................................3.9 Côte d’Ivoire ..................................3.9 Gambia, The ..................................3.9 Zambia ..........................................3.9 France ...........................................3.8 Peru ...............................................3.8 India...............................................3.8 Nigeria ...........................................3.8 Trinidad and Tobago......................3.8 Denmark ........................................3.8 Angola ...........................................3.8 Botswana ......................................3.7 Finland ...........................................3.7 Kuwait ...........................................3.7 Senegal .........................................3.7 Kenya ............................................3.7 Cambodia ......................................3.6 Gabon ...........................................3.6 Mozambique ..................................3.6 Bhutan ...........................................3.6 Timor-Leste ...................................3.6 Brazil..............................................3.6 Cape Verde ...................................3.6 Lesotho .........................................3.6 Malawi ...........................................3.5 Taiwan, China ................................3.5 Cyprus ...........................................3.5 El Salvador.....................................3.5 Tajikistan ........................................3.5 Ghana ............................................3.4 Iceland ...........................................3.4 Namibia .........................................3.4 Portugal .........................................3.4 SOURCE: MEAN 3.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 492 The Global Competitiveness Report 2014–2015 VALUE Lao PDR ........................................3.4 Vietnam .........................................3.4 Bolivia ............................................3.4 Dominican Republic .......................3.3 Suriname .......................................3.3 Mali ................................................3.3 Japan ............................................3.3 Mexico ...........................................3.3 Puerto Rico....................................3.3 Philippines .....................................3.3 Israel ..............................................3.3 Tanzania ........................................3.3 Guatemala .....................................3.3 Sierra Leone ..................................3.3 Swaziland ......................................3.2 Jamaica .........................................3.2 Colombia .......................................3.1 Honduras .......................................3.1 Nicaragua ......................................3.1 Russian Federation ........................3.1 Czech Republic .............................3.1 Estonia...........................................3.1 Uganda ..........................................3.0 Madagascar ...................................3.0 Montenegro ...................................2.9 Albania...........................................2.9 Chad..............................................2.9 Turkey............................................2.9 Cameroon......................................2.9 Zimbabwe ......................................2.8 Spain .............................................2.8 Tunisia ...........................................2.8 Ethiopia..........................................2.8 Uruguay .........................................2.7 Latvia .............................................2.7 Egypt .............................................2.7 Haiti ...............................................2.7 Pakistan .........................................2.7 Paraguay .......................................2.7 Guinea ...........................................2.7 Myanmar........................................2.7 Mongolia ........................................2.7 Romania ........................................2.6 Georgia ..........................................2.6 Slovak Republic .............................2.6 Hungary .........................................2.6 Armenia .........................................2.5 Slovenia .........................................2.5 Argentina .......................................2.5 Sri Lanka .......................................2.5 Mauritania ......................................2.5 Poland ...........................................2.5 Burkina Faso..................................2.4 Bangladesh....................................2.4 Greece ...........................................2.3 Italy ................................................2.3 Lithuania ........................................2.3 Ukraine ..........................................2.3 Nepal .............................................2.3 Libya ..............................................2.3 Algeria ...........................................2.3 Macedonia, FYR ............................2.2 Lebanon ........................................2.2 Kyrgyz Republic .............................2.1 Yemen ...........................................2.0 Burundi ..........................................1.9 Moldova .........................................1.8 Iran, Islamic Rep. ...........................1.8 Croatia ...........................................1.8 Bulgaria .........................................1.8 Serbia ............................................1.6 Venezuela ......................................1.4 © 2014 World Economic Forum 1 MEAN 3.5 7 2.2: Data Tables 7.10 Female participation in the labor force Ratio of women to men in the labor force 2012 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Malawi .........................................1.05 Mozambique ................................1.04 Rwanda .......................................1.02 Burundi ........................................1.02 Lao PDR ......................................0.99 Tanzania ......................................0.99 Sierra Leone ................................0.97 Madagascar .................................0.97 Uganda ........................................0.96 Ghana ..........................................0.96 Iceland .........................................0.95 Finland .........................................0.95 Lithuania ......................................0.95 Sweden .......................................0.94 Norway ........................................0.94 Zimbabwe ....................................0.93 Nepal ...........................................0.93 Cambodia ....................................0.93 Myanmar......................................0.93 Azerbaijan ....................................0.93 Latvia ...........................................0.93 Denmark ......................................0.93 Vietnam .......................................0.92 Estonia.........................................0.91 Kazakhstan ..................................0.91 Canada ........................................0.91 Moldova .......................................0.91 Botswana ....................................0.91 Seychelles....................................0.91 Slovenia .......................................0.90 Barbados .....................................0.90 Portugal .......................................0.90 Ethiopia........................................0.90 Bulgaria .......................................0.89 France .........................................0.88 Israel ............................................0.88 Netherlands .................................0.88 Gambia, The ................................0.88 Burkina Faso................................0.88 Haiti .............................................0.87 Russian Federation ......................0.87 New Zealand ...............................0.87 Switzerland ..................................0.87 Bhutan .........................................0.87 Germany ......................................0.87 Namibia .......................................0.87 Austria .........................................0.87 Kenya ..........................................0.86 United States ...............................0.86 Gabon .........................................0.86 United Kingdom ...........................0.85 Ukraine ........................................0.85 Zambia ........................................0.85 Australia .......................................0.85 Cameroon....................................0.85 Belgium .......................................0.85 Spain ...........................................0.85 Guinea .........................................0.84 Croatia .........................................0.84 China ...........................................0.84 Cyprus .........................................0.83 Mongolia ......................................0.83 Hungary .......................................0.83 Jamaica .......................................0.83 Luxembourg ................................0.83 Angola .........................................0.83 Thailand .......................................0.83 Chad............................................0.82 Poland .........................................0.82 Ireland..........................................0.81 Lesotho .......................................0.81 Bolivia ..........................................0.80 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE Slovak Republic ...........................0.80 Czech Republic ...........................0.80 Peru .............................................0.80 Singapore ....................................0.79 Montenegro .................................0.79 Uruguay .......................................0.78 Romania ......................................0.78 Tajikistan ......................................0.77 Serbia ..........................................0.77 Georgia ........................................0.77 Hong Kong SAR ..........................0.77 South Africa .................................0.77 Nigeria .........................................0.76 Brazil............................................0.76 Greece .........................................0.76 Japan ..........................................0.75 Taiwan, China ..............................0.75 Senegal .......................................0.75 Korea, Rep. .................................0.72 Trinidad and Tobago....................0.72 Italy ..............................................0.72 Kyrgyz Republic ...........................0.72 Colombia .....................................0.72 Armenia .......................................0.72 Albania.........................................0.70 Bangladesh..................................0.70 Chile ............................................0.69 Puerto Rico..................................0.69 Argentina .....................................0.67 Dominican Republic .....................0.67 Paraguay .....................................0.66 Macedonia, FYR ..........................0.66 Venezuela ....................................0.66 Philippines ...................................0.65 Côte d’Ivoire ................................0.65 Cape Verde .................................0.64 Mali ..............................................0.63 Swaziland ....................................0.62 El Salvador...................................0.62 Indonesia .....................................0.62 Panama .......................................0.62 Suriname .....................................0.61 Mauritius ......................................0.61 Malta ...........................................0.61 Costa Rica ...................................0.60 Nicaragua ....................................0.60 Malaysia.......................................0.59 Mexico .........................................0.58 Guatemala ...................................0.57 Qatar ...........................................0.54 Guyana ........................................0.54 Kuwait .........................................0.53 Honduras .....................................0.52 United Arab Emirates ...................0.51 Timor-Leste .................................0.49 Sri Lanka .....................................0.48 Bahrain ........................................0.46 Turkey..........................................0.43 Libya ............................................0.40 Mauritania ....................................0.37 India.............................................0.36 Tunisia .........................................0.36 Oman ..........................................0.36 Yemen .........................................0.35 Morocco ......................................0.34 Lebanon ......................................0.34 Egypt ...........................................0.32 Pakistan .......................................0.30 Saudi Arabia ................................0.25 Jordan .........................................0.23 Iran, Islamic Rep. .........................0.23 Algeria .........................................0.21 SOURCES: International Labour Organization, Key Indicators of the Labour Markets, 8th Edition; national sources © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 493 2014 World Economic Forum Data Tables Financial market development 2.2: Data Tables 8.01 Availability of financial services In your country, to what extent does the financial sector provide a wide range of financial products and services to businesses? [1 = not at all; 7 = provides a wide variety] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................6.5 Luxembourg ..................................6.3 Hong Kong SAR ............................6.2 United States .................................6.2 Canada ..........................................6.1 South Africa ...................................6.1 United Kingdom .............................6.1 Singapore ......................................6.1 Norway ..........................................6.0 Finland ...........................................6.0 Netherlands ...................................5.9 Belgium .........................................5.9 Qatar .............................................5.8 New Zealand .................................5.7 Bahrain ..........................................5.7 Panama .........................................5.7 Malaysia.........................................5.6 Germany ........................................5.6 Australia .........................................5.6 Sweden .........................................5.6 Chile ..............................................5.5 United Arab Emirates .....................5.5 Puerto Rico....................................5.5 Austria ...........................................5.4 Taiwan, China ................................5.4 Malta .............................................5.4 Japan ............................................5.3 Thailand .........................................5.3 Guatemala .....................................5.3 France ...........................................5.3 Sri Lanka .......................................5.3 Denmark ........................................5.3 Brazil..............................................5.2 Mauritius ........................................5.2 Turkey............................................5.2 Estonia...........................................5.2 Israel ..............................................5.2 Czech Republic .............................5.1 Slovak Republic .............................5.1 Latvia .............................................5.1 Honduras .......................................5.1 Philippines .....................................5.0 Portugal .........................................4.9 Poland ...........................................4.9 Lithuania ........................................4.9 Indonesia .......................................4.9 Oman ............................................4.9 Saudi Arabia ..................................4.9 Ireland............................................4.9 Barbados .......................................4.9 Spain .............................................4.9 Dominican Republic .......................4.8 Colombia .......................................4.8 Namibia .........................................4.7 Peru ...............................................4.7 Kenya ............................................4.7 Cyprus ...........................................4.7 Jordan ...........................................4.7 Morocco ........................................4.6 Lebanon ........................................4.6 Jamaica .........................................4.6 Hungary .........................................4.5 China .............................................4.5 Trinidad and Tobago......................4.5 Kazakhstan ....................................4.5 Swaziland ......................................4.4 Iceland ...........................................4.4 Kuwait ...........................................4.4 Rwanda .........................................4.4 Costa Rica .....................................4.4 Russian Federation ........................4.4 Botswana ......................................4.4 SOURCE: MEAN 4.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 496 The Global Competitiveness Report 2014–2015 VALUE Mexico ...........................................4.3 Zambia ..........................................4.3 Armenia .........................................4.3 Macedonia, FYR ............................4.3 Italy ................................................4.3 Croatia ...........................................4.3 Lao PDR ........................................4.3 Paraguay .......................................4.3 Uruguay .........................................4.2 Pakistan .........................................4.2 India...............................................4.2 Nepal .............................................4.2 Bulgaria .........................................4.2 Uganda ..........................................4.1 Nigeria ...........................................4.1 Guyana ..........................................4.1 Georgia ..........................................4.1 El Salvador.....................................4.1 Cambodia ......................................4.1 Azerbaijan ......................................4.1 Romania ........................................4.1 Montenegro ...................................4.1 Bangladesh....................................4.1 Gambia, The ..................................4.1 Tajikistan ........................................4.0 Serbia ............................................4.0 Ghana ............................................4.0 Korea, Rep. ...................................4.0 Bhutan ...........................................3.9 Ukraine ..........................................3.9 Seychelles......................................3.9 Vietnam .........................................3.9 Bolivia ............................................3.8 Cameroon......................................3.8 Zimbabwe ......................................3.8 Kyrgyz Republic .............................3.8 Moldova .........................................3.8 Greece ...........................................3.8 Mongolia ........................................3.8 Malawi ...........................................3.8 Côte d’Ivoire ..................................3.7 Senegal .........................................3.7 Albania...........................................3.7 Nicaragua ......................................3.7 Ethiopia..........................................3.7 Mozambique ..................................3.7 Cape Verde ...................................3.7 Tunisia ...........................................3.7 Suriname .......................................3.7 Tanzania ........................................3.7 Venezuela ......................................3.6 Sierra Leone ..................................3.6 Slovenia .........................................3.6 Mali ................................................3.5 Madagascar ...................................3.5 Gabon ...........................................3.5 Egypt .............................................3.4 Burkina Faso..................................3.4 Lesotho .........................................3.2 Argentina .......................................3.1 Algeria ...........................................3.0 Haiti ...............................................3.0 Iran, Islamic Rep. ...........................2.9 Timor-Leste ...................................2.9 Guinea ...........................................2.9 Mauritania ......................................2.9 Myanmar........................................2.8 Burundi ..........................................2.8 Yemen ...........................................2.7 Chad..............................................2.6 Angola ...........................................2.3 Libya ..............................................2.1 © 2014 World Economic Forum 1 MEAN 4.5 7 2.2: Data Tables 8.02 Affordability of financial services In your country, to what extent are financial services affordable for businesses? [1 = not affordable at all; 7 = affordable] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Switzerland ....................................6.1 Luxembourg ..................................6.1 Finland ...........................................6.0 Hong Kong SAR ............................6.0 Norway ..........................................5.9 Qatar .............................................5.9 Singapore ......................................5.9 Canada ..........................................5.8 New Zealand .................................5.7 United States .................................5.7 Taiwan, China ................................5.6 Malaysia.........................................5.6 Belgium .........................................5.5 Germany ........................................5.5 Bahrain ..........................................5.5 Sweden .........................................5.5 Netherlands ...................................5.5 Panama .........................................5.5 United Kingdom .............................5.5 United Arab Emirates .....................5.4 South Africa ...................................5.3 Puerto Rico....................................5.3 Austria ...........................................5.3 Malta .............................................5.2 Australia .........................................5.2 Slovak Republic .............................5.2 Oman ............................................5.2 France ...........................................5.2 Japan ............................................5.1 Saudi Arabia ..................................5.1 Czech Republic .............................5.1 Latvia .............................................5.1 Guatemala .....................................5.0 Denmark ........................................5.0 Thailand .........................................5.0 Brazil..............................................5.0 Turkey............................................4.9 Estonia...........................................4.9 Lithuania ........................................4.9 Mauritius ........................................4.9 Indonesia .......................................4.9 Chile ..............................................4.9 Philippines .....................................4.8 Poland ...........................................4.8 Sri Lanka .......................................4.7 Ireland............................................4.7 Jordan ...........................................4.5 Barbados .......................................4.5 Namibia .........................................4.4 China .............................................4.4 Cyprus ...........................................4.4 Kuwait ...........................................4.4 Trinidad and Tobago......................4.3 Macedonia, FYR ............................4.3 Kazakhstan ....................................4.3 Rwanda .........................................4.3 Lao PDR ........................................4.2 Honduras .......................................4.2 Israel ..............................................4.2 Swaziland ......................................4.2 Portugal .........................................4.2 Spain .............................................4.2 Morocco ........................................4.2 Kenya ............................................4.2 Iceland ...........................................4.2 Romania ........................................4.2 Botswana ......................................4.2 Costa Rica .....................................4.1 Russian Federation ........................4.1 Peru ...............................................4.1 Uruguay .........................................4.1 Lebanon ........................................4.1 SOURCE: 1 MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.2 7 India...............................................4.1 Nepal .............................................4.1 Georgia ..........................................4.1 Guyana ..........................................4.1 Azerbaijan ......................................4.1 Montenegro ...................................4.0 Bhutan ...........................................4.0 Jamaica .........................................4.0 Armenia .........................................4.0 Italy ................................................4.0 Tajikistan ........................................4.0 Pakistan .........................................4.0 Bulgaria .........................................4.0 El Salvador.....................................4.0 Gambia, The ..................................4.0 Venezuela ......................................3.9 Bangladesh....................................3.9 Korea, Rep. ...................................3.9 Tunisia ...........................................3.9 Cambodia ......................................3.9 Côte d’Ivoire ..................................3.9 Zambia ..........................................3.9 Seychelles......................................3.9 Nicaragua ......................................3.8 Ghana ............................................3.8 Hungary .........................................3.8 Dominican Republic .......................3.8 Cape Verde ...................................3.8 Croatia ...........................................3.8 Senegal .........................................3.7 Moldova .........................................3.7 Albania...........................................3.7 Bolivia ............................................3.7 Mexico ...........................................3.7 Kyrgyz Republic .............................3.7 Paraguay .......................................3.7 Cameroon......................................3.7 Serbia ............................................3.7 Suriname .......................................3.6 Ethiopia..........................................3.6 Mali ................................................3.6 Colombia .......................................3.6 Vietnam .........................................3.6 Tanzania ........................................3.6 Mozambique ..................................3.6 Greece ...........................................3.6 Mongolia ........................................3.5 Slovenia .........................................3.5 Uganda ..........................................3.5 Nigeria ...........................................3.5 Ukraine ..........................................3.5 Sierra Leone ..................................3.4 Lesotho .........................................3.4 Egypt .............................................3.3 Gabon ...........................................3.3 Angola ...........................................3.2 Mauritania ......................................3.2 Iran, Islamic Rep. ...........................3.1 Zimbabwe ......................................3.1 Madagascar ...................................3.1 Malawi ...........................................3.1 Burkina Faso..................................3.1 Algeria ...........................................3.1 Myanmar........................................3.0 Haiti ...............................................2.9 Argentina .......................................2.9 Timor-Leste ...................................2.9 Chad..............................................2.9 Guinea ...........................................2.8 Burundi ..........................................2.7 Yemen ...........................................2.4 Libya ..............................................2.0 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 497 2.2: Data Tables 8.03 Financing through local equity market In your country, how easy is it for companies to raise money by issuing shares on the stock market? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Hong Kong SAR ............................5.7 Taiwan, China ................................5.5 South Africa ...................................5.4 New Zealand .................................5.3 Qatar .............................................5.2 United States .................................5.2 Singapore ......................................5.1 Malaysia.........................................5.1 Norway ..........................................5.0 United Kingdom .............................4.9 Canada ..........................................4.9 Japan ............................................4.9 Sweden .........................................4.8 Australia .........................................4.8 Sri Lanka .......................................4.8 Switzerland ....................................4.8 United Arab Emirates .....................4.7 Thailand .........................................4.6 Saudi Arabia ..................................4.5 Oman ............................................4.5 Finland ...........................................4.5 Luxembourg ..................................4.4 Philippines .....................................4.4 France ...........................................4.4 Malta .............................................4.4 Chile ..............................................4.4 Netherlands ...................................4.3 Jamaica .........................................4.3 Indonesia .......................................4.3 Kenya ............................................4.3 Germany ........................................4.3 Mauritius ........................................4.2 Panama .........................................4.2 China .............................................4.2 Jordan ...........................................4.2 Bahrain ..........................................4.1 Bangladesh....................................4.1 Ghana ............................................4.0 India...............................................4.0 Kuwait ...........................................3.9 Denmark ........................................3.9 Israel ..............................................3.9 Belgium .........................................3.9 Vietnam .........................................3.9 Turkey............................................3.9 Nigeria ...........................................3.8 Nepal .............................................3.8 Estonia...........................................3.8 Morocco ........................................3.8 Austria ...........................................3.8 Iceland ...........................................3.7 Zambia ..........................................3.7 El Salvador.....................................3.7 Namibia .........................................3.7 Brazil..............................................3.6 Botswana ......................................3.6 Tunisia ...........................................3.6 Guyana ..........................................3.6 Poland ...........................................3.6 Egypt .............................................3.6 Pakistan .........................................3.6 Peru ...............................................3.5 Malawi ...........................................3.5 Trinidad and Tobago......................3.5 Korea, Rep. ...................................3.5 Swaziland ......................................3.5 Lithuania ........................................3.5 Bhutan ...........................................3.5 Paraguay .......................................3.5 Puerto Rico....................................3.5 Colombia .......................................3.4 Mexico ...........................................3.4 SOURCE: MEAN 3.4 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 498 The Global Competitiveness Report 2014–2015 VALUE Rwanda .........................................3.4 Macedonia, FYR ............................3.4 Côte d’Ivoire ..................................3.3 Bolivia ............................................3.3 Senegal .........................................3.3 Ireland............................................3.3 Montenegro ...................................3.3 Zimbabwe ......................................3.2 Italy ................................................3.2 Tanzania ........................................3.2 Romania ........................................3.2 Czech Republic .............................3.2 Uganda ..........................................3.1 Russian Federation ........................3.1 Kazakhstan ....................................3.1 Gambia, The ..................................3.1 Seychelles......................................3.1 Azerbaijan ......................................3.1 Barbados .......................................3.1 Nicaragua ......................................3.0 Portugal .........................................3.0 Cape Verde ...................................3.0 Bulgaria .........................................3.0 Latvia .............................................3.0 Tajikistan ........................................3.0 Ethiopia..........................................3.0 Iran, Islamic Rep. ...........................3.0 Lao PDR ........................................2.9 Cameroon......................................2.9 Spain .............................................2.9 Gabon ...........................................2.9 Croatia ...........................................2.8 Dominican Republic .......................2.8 Hungary .........................................2.8 Slovak Republic .............................2.8 Ukraine ..........................................2.7 Lesotho .........................................2.7 Kyrgyz Republic .............................2.6 Suriname .......................................2.6 Armenia .........................................2.5 Cyprus ...........................................2.5 Moldova .........................................2.5 Honduras .......................................2.5 Mongolia ........................................2.5 Costa Rica .....................................2.4 Mali ................................................2.4 Mozambique ..................................2.4 Guatemala .....................................2.4 Greece ...........................................2.3 Slovenia .........................................2.3 Haiti ...............................................2.3 Sierra Leone ..................................2.3 Madagascar ...................................2.3 Georgia ..........................................2.2 Burkina Faso..................................2.2 Argentina .......................................2.2 Timor-Leste ...................................2.2 Uruguay .........................................2.2 Cambodia ......................................2.2 Lebanon ........................................2.2 Serbia ............................................2.2 Algeria ...........................................2.1 Yemen ...........................................2.0 Mauritania ......................................2.0 Myanmar........................................1.9 Burundi ..........................................1.8 Chad..............................................1.8 Libya ..............................................1.8 Venezuela ......................................1.8 Guinea ...........................................1.6 Albania...........................................1.6 Angola ...........................................1.4 © 2014 World Economic Forum 1 MEAN 3.4 7 2.2: Data Tables 8.04 Ease of access to loans In your country, how easy is it to obtain a bank loan with only a good business plan and no collateral? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Qatar .............................................5.1 Malaysia.........................................4.8 United Arab Emirates .....................4.7 Singapore ......................................4.5 Hong Kong SAR ............................4.5 Luxembourg ..................................4.4 Norway ..........................................4.3 Bahrain ..........................................4.2 Oman ............................................4.1 Sweden .........................................4.1 New Zealand .................................4.0 Finland ...........................................4.0 Panama .........................................4.0 United States .................................3.9 Indonesia .......................................3.9 Malta .............................................3.8 France ...........................................3.8 Canada ..........................................3.8 Japan ............................................3.7 Chile ..............................................3.7 China .............................................3.7 Tajikistan ........................................3.6 Thailand .........................................3.6 Bolivia ............................................3.6 Jordan ...........................................3.6 Taiwan, China ................................3.6 Saudi Arabia ..................................3.6 Switzerland ....................................3.6 India...............................................3.6 Philippines .....................................3.5 Mauritius ........................................3.5 South Africa ...................................3.5 Kenya ............................................3.4 Germany ........................................3.3 Belgium .........................................3.3 Czech Republic .............................3.3 Guyana ..........................................3.3 Australia .........................................3.3 Slovak Republic .............................3.3 Estonia...........................................3.3 Rwanda .........................................3.2 Peru ...............................................3.2 Kazakhstan ....................................3.2 Côte d’Ivoire ..................................3.1 Kuwait ...........................................3.1 Morocco ........................................3.1 Guatemala .....................................3.1 Netherlands ...................................3.1 Montenegro ...................................3.0 Seychelles......................................3.0 Israel ..............................................3.0 El Salvador.....................................3.0 Bulgaria .........................................3.0 Botswana ......................................3.0 Macedonia, FYR ............................3.0 Russian Federation ........................3.0 Paraguay .......................................3.0 Ghana ............................................2.9 Romania ........................................2.9 Denmark ........................................2.9 Senegal .........................................2.9 Honduras .......................................2.9 Lesotho .........................................2.9 Turkey............................................2.9 Sri Lanka .......................................2.9 Austria ...........................................2.9 Nicaragua ......................................2.8 Namibia .........................................2.8 Uruguay .........................................2.8 Tunisia ...........................................2.8 Lao PDR ........................................2.8 Algeria ...........................................2.8 SOURCE: 1 MEAN 2.9 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 2.9 7 Puerto Rico....................................2.8 Iceland ...........................................2.8 Dominican Republic .......................2.8 Lebanon ........................................2.8 Colombia .......................................2.8 Madagascar ...................................2.7 Azerbaijan ......................................2.7 Cambodia ......................................2.7 Swaziland ......................................2.7 United Kingdom .............................2.7 Gabon ...........................................2.7 Mali ................................................2.7 Brazil..............................................2.7 Tanzania ........................................2.7 Ukraine ..........................................2.6 Vietnam .........................................2.6 Poland ...........................................2.6 Pakistan .........................................2.6 Lithuania ........................................2.6 Cameroon......................................2.5 Uganda ..........................................2.5 Timor-Leste ...................................2.5 Gambia, The ..................................2.5 Latvia .............................................2.5 Armenia .........................................2.5 Bhutan ...........................................2.5 Zambia ..........................................2.5 Cape Verde ...................................2.5 Barbados .......................................2.5 Trinidad and Tobago......................2.5 Bangladesh....................................2.4 Moldova .........................................2.4 Guinea ...........................................2.4 Croatia ...........................................2.4 Mexico ...........................................2.4 Portugal .........................................2.4 Cyprus ...........................................2.4 Georgia ..........................................2.4 Suriname .......................................2.4 Haiti ...............................................2.3 Venezuela ......................................2.3 Malawi ...........................................2.3 Kyrgyz Republic .............................2.3 Nepal .............................................2.3 Ireland............................................2.2 Costa Rica .....................................2.2 Jamaica .........................................2.2 Korea, Rep. ...................................2.2 Serbia ............................................2.2 Angola ...........................................2.2 Ethiopia..........................................2.1 Chad..............................................2.1 Mauritania ......................................2.0 Hungary .........................................2.0 Mozambique ..................................1.9 Albania...........................................1.9 Egypt .............................................1.9 Sierra Leone ..................................1.8 Burundi ..........................................1.8 Spain .............................................1.7 Yemen ...........................................1.7 Argentina .......................................1.7 Zimbabwe ......................................1.7 Greece ...........................................1.7 Nigeria ...........................................1.6 Burkina Faso..................................1.6 Italy ................................................1.6 Slovenia .........................................1.6 Iran, Islamic Rep. ...........................1.6 Libya ..............................................1.5 Mongolia ........................................1.5 Myanmar........................................1.4 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 499 2.2: Data Tables 8.05 Venture capital availability In your country, how easy is it for entrepreneurs with innovative but risky projects to find venture capital? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Qatar .............................................4.8 Malaysia.........................................4.6 United States .................................4.4 United Arab Emirates .....................4.4 Hong Kong SAR ............................4.3 Norway ..........................................4.3 Singapore ......................................4.3 Finland ...........................................4.3 Israel ..............................................4.2 Luxembourg ..................................4.2 Sweden .........................................4.2 New Zealand .................................3.9 China .............................................3.9 Indonesia .......................................3.9 Taiwan, China ................................3.9 Panama .........................................3.6 Canada ..........................................3.6 Bahrain ..........................................3.6 United Kingdom .............................3.6 India...............................................3.5 Oman ............................................3.5 Netherlands ...................................3.5 Jordan ...........................................3.5 Japan ............................................3.4 Switzerland ....................................3.4 Estonia...........................................3.4 Saudi Arabia ..................................3.4 Germany ........................................3.4 Australia .........................................3.4 Bolivia ............................................3.4 Philippines .....................................3.3 Chile ..............................................3.3 Belgium .........................................3.3 Guyana ..........................................3.3 France ...........................................3.3 Ghana ............................................3.2 South Africa ...................................3.2 Tajikistan ........................................3.2 Rwanda .........................................3.1 Malta .............................................3.1 Mauritius ........................................3.1 Czech Republic .............................3.1 Kenya ............................................3.1 Thailand .........................................3.0 El Salvador.....................................3.0 Ireland............................................3.0 Kazakhstan ....................................3.0 Latvia .............................................3.0 Morocco ........................................2.9 Montenegro ...................................2.9 Puerto Rico....................................2.9 Macedonia, FYR ............................2.9 Senegal .........................................2.9 Peru ...............................................2.9 Côte d’Ivoire ..................................2.8 Honduras .......................................2.8 Slovak Republic .............................2.8 Iceland ...........................................2.8 Lebanon ........................................2.8 Cambodia ......................................2.7 Russian Federation ........................2.7 Seychelles......................................2.7 Guatemala .....................................2.7 Azerbaijan ......................................2.7 Nicaragua ......................................2.7 Sri Lanka .......................................2.7 Botswana ......................................2.7 Tunisia ...........................................2.7 Kuwait ...........................................2.7 Austria ...........................................2.7 Vietnam .........................................2.7 Lesotho .........................................2.7 SOURCE: MEAN 2.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 500 The Global Competitiveness Report 2014–2015 VALUE Lithuania ........................................2.7 Swaziland ......................................2.7 Cyprus ...........................................2.7 Timor-Leste ...................................2.6 Uruguay .........................................2.6 Romania ........................................2.6 Bulgaria .........................................2.6 Brazil..............................................2.6 Tanzania ........................................2.6 Colombia .......................................2.6 Dominican Republic .......................2.6 Portugal .........................................2.5 Lao PDR ........................................2.5 Mexico ...........................................2.5 Denmark ........................................2.5 Namibia .........................................2.5 Madagascar ...................................2.5 Turkey............................................2.5 Cape Verde ...................................2.5 Pakistan .........................................2.5 Gambia, The ..................................2.4 Mali ................................................2.4 Zambia ..........................................2.4 Armenia .........................................2.4 Ukraine ..........................................2.3 Angola ...........................................2.3 Poland ...........................................2.3 Spain .............................................2.3 Barbados .......................................2.3 Cameroon......................................2.3 Egypt .............................................2.3 Bhutan ...........................................2.3 Nepal .............................................2.2 Uganda ..........................................2.2 Korea, Rep. ...................................2.2 Algeria ...........................................2.2 Trinidad and Tobago......................2.2 Ethiopia..........................................2.2 Costa Rica .....................................2.2 Malawi ...........................................2.2 Paraguay .......................................2.2 Croatia ...........................................2.2 Kyrgyz Republic .............................2.2 Moldova .........................................2.2 Jamaica .........................................2.2 Georgia ..........................................2.1 Bangladesh....................................2.1 Mozambique ..................................2.1 Hungary .........................................2.1 Venezuela ......................................2.1 Gabon ...........................................2.0 Haiti ...............................................2.0 Slovenia .........................................2.0 Suriname .......................................2.0 Italy ................................................2.0 Albania...........................................1.9 Burundi ..........................................1.9 Guinea ...........................................1.9 Nigeria ...........................................1.9 Serbia ............................................1.9 Iran, Islamic Rep. ...........................1.9 Mauritania ......................................1.9 Greece ...........................................1.9 Chad..............................................1.9 Sierra Leone ..................................1.8 Argentina .......................................1.8 Yemen ...........................................1.7 Zimbabwe ......................................1.6 Mongolia ........................................1.6 Libya ..............................................1.6 Myanmar........................................1.6 Burkina Faso..................................1.5 © 2014 World Economic Forum 1 MEAN 2.8 7 2.2: Data Tables 8.06 Soundness of banks In your country, how would you assess the soundness of banks? [1 = extremely low—banks may require recapitalization; 7 = extremely high—banks are generally healthy with sound balance sheets] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Canada ..........................................6.7 New Zealand .................................6.7 Australia .........................................6.6 Singapore ......................................6.6 Finland ...........................................6.5 South Africa ...................................6.5 Hong Kong SAR ............................6.5 Norway ..........................................6.4 Qatar .............................................6.3 Malta .............................................6.3 Chile ..............................................6.3 Panama .........................................6.2 Brazil..............................................6.1 Barbados .......................................6.1 Mauritius ........................................6.1 Luxembourg ..................................6.0 Saudi Arabia ..................................6.0 Israel ..............................................6.0 Guatemala .....................................6.0 Slovak Republic .............................5.9 Switzerland ....................................5.9 Oman ............................................5.9 United Arab Emirates .....................5.9 Czech Republic .............................5.9 Sri Lanka .......................................5.8 Sweden .........................................5.8 Lebanon ........................................5.8 Bahrain ..........................................5.8 Peru ...............................................5.8 Colombia .......................................5.8 Costa Rica .....................................5.8 Taiwan, China ................................5.7 Japan ............................................5.7 Honduras .......................................5.7 Malaysia.........................................5.7 Namibia .........................................5.7 Thailand .........................................5.7 Turkey............................................5.7 Estonia...........................................5.7 Trinidad and Tobago......................5.7 Mexico ...........................................5.6 Morocco ........................................5.6 Botswana ......................................5.6 Paraguay .......................................5.6 Dominican Republic .......................5.6 Philippines .....................................5.5 France ...........................................5.4 Uruguay .........................................5.4 United States .................................5.4 Kuwait ...........................................5.4 Poland ...........................................5.4 Macedonia, FYR ............................5.3 Jamaica .........................................5.3 Kenya ............................................5.3 Germany ........................................5.3 Latvia .............................................5.2 Jordan ...........................................5.2 Suriname .......................................5.1 Zambia ..........................................5.1 Indonesia .......................................5.1 Austria ...........................................5.0 Bulgaria .........................................5.0 China .............................................5.0 Puerto Rico....................................4.9 Swaziland ......................................4.9 Armenia .........................................4.9 Georgia ..........................................4.9 Gambia, The ..................................4.9 Croatia ...........................................4.9 Gabon ...........................................4.9 Pakistan .........................................4.8 Nicaragua ......................................4.8 SOURCE: 1 MEAN 4.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.8 7 Hungary .........................................4.8 Malawi ...........................................4.8 Guyana ..........................................4.8 Lao PDR ........................................4.8 Côte d’Ivoire ..................................4.8 Nigeria ...........................................4.8 Senegal .........................................4.8 Netherlands ...................................4.7 Denmark ........................................4.7 Rwanda .........................................4.7 Uganda ..........................................4.6 Mozambique ..................................4.6 Belgium .........................................4.6 Argentina .......................................4.6 Seychelles......................................4.5 Cambodia ......................................4.5 United Kingdom .............................4.5 Venezuela ......................................4.5 Romania ........................................4.5 Cameroon......................................4.5 Italy ................................................4.4 Tajikistan ........................................4.4 Bhutan ...........................................4.4 Cape Verde ...................................4.4 Ghana ............................................4.4 Albania...........................................4.3 Mongolia ........................................4.3 Azerbaijan ......................................4.3 India...............................................4.3 Ethiopia..........................................4.3 Nepal .............................................4.2 Bangladesh....................................4.2 Haiti ...............................................4.2 Serbia ............................................4.2 Tanzania ........................................4.2 Kazakhstan ....................................4.2 Montenegro ...................................4.2 Egypt .............................................4.2 Portugal .........................................4.2 Spain .............................................4.2 Lithuania ........................................4.2 El Salvador.....................................4.1 Angola ...........................................4.1 Burkina Faso..................................4.1 Sierra Leone ..................................4.1 Russian Federation ........................4.0 Madagascar ...................................4.0 Bolivia ............................................4.0 Iceland ...........................................4.0 Korea, Rep. ...................................3.9 Mali ................................................3.9 Moldova .........................................3.8 Iran, Islamic Rep. ...........................3.8 Kyrgyz Republic .............................3.7 Guinea ...........................................3.6 Tunisia ...........................................3.5 Timor-Leste ...................................3.5 Lesotho .........................................3.5 Myanmar........................................3.5 Vietnam .........................................3.5 Algeria ...........................................3.4 Chad..............................................3.2 Mauritania ......................................3.1 Zimbabwe ......................................3.1 Yemen ...........................................3.0 Ukraine ..........................................3.0 Ireland............................................3.0 Burundi ..........................................2.9 Greece ...........................................2.8 Libya ..............................................2.7 Cyprus ...........................................2.4 Slovenia .........................................2.2 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 501 2.2: Data Tables 8.07 Regulation of securities exchanges In your country, how effective are the regulation and supervision of securities exchanges? [1 = not at all effective; 7 = extremely effective] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 South Africa ...................................6.4 Finland ...........................................6.1 Hong Kong SAR ............................6.0 Luxembourg ..................................6.0 Singapore ......................................6.0 New Zealand .................................5.9 Qatar .............................................5.9 Puerto Rico....................................5.8 Norway ..........................................5.7 Canada ..........................................5.6 Australia .........................................5.5 United Arab Emirates .....................5.5 Malaysia.........................................5.5 Oman ............................................5.5 Japan ............................................5.5 Bahrain ..........................................5.4 Brazil..............................................5.4 Denmark ........................................5.4 Switzerland ....................................5.4 Sweden .........................................5.4 Taiwan, China ................................5.4 United Kingdom .............................5.3 Chile ..............................................5.3 Mauritius ........................................5.2 Netherlands ...................................5.2 Malta .............................................5.0 Thailand .........................................5.0 Jamaica .........................................5.0 Panama .........................................5.0 United States .................................5.0 Saudi Arabia ..................................5.0 France ...........................................5.0 Barbados .......................................5.0 Belgium .........................................4.9 Poland ...........................................4.9 Peru ...............................................4.8 Namibia .........................................4.8 Germany ........................................4.8 Estonia...........................................4.8 Mexico ...........................................4.8 Costa Rica .....................................4.7 Jordan ...........................................4.7 Ireland............................................4.7 Zambia ..........................................4.7 Philippines .....................................4.6 Portugal .........................................4.6 Kenya ............................................4.6 Turkey............................................4.6 Morocco ........................................4.5 Macedonia, FYR ............................4.5 Pakistan .........................................4.5 Israel ..............................................4.5 Indonesia .......................................4.5 Hungary .........................................4.4 Austria ...........................................4.4 Sri Lanka .......................................4.4 Botswana ......................................4.4 China .............................................4.4 Czech Republic .............................4.4 Latvia .............................................4.3 Iceland ...........................................4.3 India...............................................4.3 Zimbabwe ......................................4.3 Uruguay .........................................4.2 Nigeria ...........................................4.2 Spain .............................................4.2 Paraguay .......................................4.1 Cyprus ...........................................4.1 Nicaragua ......................................4.1 Lithuania ........................................4.1 Seychelles......................................4.0 Croatia ...........................................4.0 SOURCE: MEAN 4.1 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 502 The Global Competitiveness Report 2014–2015 VALUE Rwanda .........................................4.0 Malawi ...........................................4.0 Colombia .......................................4.0 Kuwait ...........................................4.0 Swaziland ......................................4.0 Montenegro ...................................4.0 Lao PDR ........................................3.9 Ghana ............................................3.9 Gambia, The ..................................3.9 El Salvador.....................................3.9 Bhutan ...........................................3.8 Italy ................................................3.8 Slovak Republic .............................3.8 Kazakhstan ....................................3.8 Dominican Republic .......................3.8 Slovenia .........................................3.7 Korea, Rep. ...................................3.7 Tunisia ...........................................3.7 Russian Federation ........................3.7 Uganda ..........................................3.7 Azerbaijan ......................................3.7 Greece ...........................................3.7 Trinidad and Tobago......................3.7 Cape Verde ...................................3.7 Guatemala .....................................3.7 Bolivia ............................................3.7 Guyana ..........................................3.7 Côte d’Ivoire ..................................3.6 Romania ........................................3.6 Iran, Islamic Rep. ...........................3.6 Bulgaria .........................................3.6 Tanzania ........................................3.5 Ethiopia..........................................3.5 Senegal .........................................3.5 Egypt .............................................3.5 Lebanon ........................................3.5 Nepal .............................................3.4 Vietnam .........................................3.3 Gabon ...........................................3.3 Armenia .........................................3.3 Serbia ............................................3.3 Argentina .......................................3.3 Bangladesh....................................3.2 Mozambique ..................................3.2 Moldova .........................................3.2 Cambodia ......................................3.2 Tajikistan ........................................3.1 Sierra Leone ..................................3.1 Georgia ..........................................3.1 Burkina Faso..................................3.1 Honduras .......................................3.0 Kyrgyz Republic .............................3.0 Suriname .......................................3.0 Cameroon......................................2.9 Ukraine ..........................................2.9 Mongolia ........................................2.7 Mali ................................................2.6 Lesotho .........................................2.6 Timor-Leste ...................................2.6 Venezuela ......................................2.6 Madagascar ...................................2.5 Haiti ...............................................2.3 Myanmar........................................2.2 Algeria ...........................................2.2 Libya ..............................................2.0 Mauritania ......................................1.9 Guinea ...........................................1.9 Albania...........................................1.9 Burundi ..........................................1.9 Chad..............................................1.8 Yemen ...........................................1.4 Angola ...........................................1.2 © 2014 World Economic Forum 1 MEAN 4.1 7 2.2: Data Tables 8.08 Legal rights index Degree of legal protection of borrowers’ and lenders’ rights on a 0–10 (best) scale 2013 RANK 1 1 1 1 1 1 1 1 1 1 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 29 29 29 29 29 29 29 29 29 29 29 29 29 29 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 63 63 63 63 63 63 63 63 63 63 COUNTRY/ECONOMY VALUE RANK Australia ..........................................10 Hong Kong SAR .............................10 Kenya .............................................10 Kyrgyz Republic ..............................10 Latvia ..............................................10 Malaysia..........................................10 Montenegro ....................................10 New Zealand ..................................10 Singapore .......................................10 United Kingdom ..............................10 Albania..............................................9 Barbados ..........................................9 Bulgaria ............................................9 Cyprus ..............................................9 Denmark ...........................................9 Georgia .............................................9 Ireland...............................................9 Israel .................................................9 Macedonia, FYR ...............................9 Moldova ............................................9 Nigeria ..............................................9 Poland ..............................................9 Puerto Rico.......................................9 Romania ...........................................9 Trinidad and Tobago.........................9 Ukraine .............................................9 United States ....................................9 Zambia .............................................9 Cambodia .........................................8 Finland ..............................................8 Ghana ...............................................8 Guatemala ........................................8 Honduras ..........................................8 India..................................................8 Jamaica ............................................8 Korea, Rep. ......................................8 Nepal ................................................8 Rwanda ............................................8 Slovak Republic ................................8 Sweden ............................................8 Switzerland .......................................8 Vietnam ............................................8 Austria ..............................................7 Bangladesh.......................................7 Canada .............................................7 Croatia ..............................................7 Estonia..............................................7 France ..............................................7 Germany ...........................................7 Hungary ............................................7 Iceland ..............................................7 Japan ...............................................7 Lithuania ...........................................7 Malawi ..............................................7 Namibia ............................................7 Peru ..................................................7 Serbia ...............................................7 Sierra Leone .....................................7 South Africa ......................................7 Tanzania ...........................................7 Uganda .............................................7 Zimbabwe .........................................7 Armenia ............................................6 Azerbaijan .........................................6 Belgium ............................................6 Botswana .........................................6 Burkina Faso.....................................6 Cameroon.........................................6 Chad.................................................6 Chile .................................................6 Côte d’Ivoire .....................................6 Czech Republic ................................6 63 63 63 63 63 63 63 63 63 63 63 63 85 85 85 85 85 85 85 85 85 85 85 96 96 96 96 96 96 96 96 96 96 96 96 96 96 96 96 96 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 137 137 137 137 137 137 143 143 SOURCE: COUNTRY/ECONOMY VALUE Gabon ..............................................6 Guinea ..............................................6 Lesotho ............................................6 Mali ...................................................6 Mauritius ...........................................6 Mexico ..............................................6 Mongolia ...........................................6 Norway .............................................6 Pakistan ............................................6 Senegal ............................................6 Spain ................................................6 Swaziland .........................................6 China ................................................5 Colombia ..........................................5 El Salvador........................................5 Gambia, The .....................................5 Indonesia ..........................................5 Netherlands ......................................5 Panama ............................................5 Saudi Arabia .....................................5 Sri Lanka ..........................................5 Taiwan, China ...................................5 Thailand ............................................5 Argentina ..........................................4 Ethiopia.............................................4 Greece ..............................................4 Guyana .............................................4 Iran, Islamic Rep. ..............................4 Kazakhstan .......................................4 Lao PDR ...........................................4 Luxembourg .....................................4 Myanmar...........................................4 Oman ...............................................4 Philippines ........................................4 Seychelles.........................................4 Slovenia ............................................4 Suriname ..........................................4 Turkey...............................................4 United Arab Emirates ........................4 Uruguay ............................................4 Algeria ..............................................3 Angola ..............................................3 Bahrain .............................................3 Bhutan ..............................................3 Brazil.................................................3 Burundi .............................................3 Cape Verde ......................................3 Costa Rica ........................................3 Dominican Republic ..........................3 Egypt ................................................3 Haiti ..................................................3 Italy ...................................................3 Kuwait ..............................................3 Lebanon ...........................................3 Malta ................................................3 Mauritania .........................................3 Morocco ...........................................3 Mozambique .....................................3 Nicaragua .........................................3 Paraguay ..........................................3 Portugal ............................................3 Qatar ................................................3 Russian Federation ...........................3 Tunisia ..............................................3 Jordan ..............................................2 Madagascar ......................................2 Tajikistan ...........................................2 Timor-Leste ......................................2 Venezuela .........................................2 Yemen ..............................................2 Bolivia ...............................................1 Libya .................................................1 World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 503 2014 World Economic Forum Data Tables Technological readiness 2.2: Data Tables 9.01 Availability of latest technologies In your country, to what extent are the latest technologies available? [1 = not available at all; 7 = widely available] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Finland ...........................................6.6 United States .................................6.5 Norway ..........................................6.5 United Kingdom .............................6.5 Iceland ...........................................6.4 Switzerland ....................................6.4 Sweden .........................................6.4 United Arab Emirates .....................6.3 Netherlands ...................................6.3 Israel ..............................................6.3 Portugal .........................................6.3 Belgium .........................................6.3 Luxembourg ..................................6.2 Japan ............................................6.2 Singapore ......................................6.2 Canada ..........................................6.2 Germany ........................................6.2 Hong Kong SAR ............................6.1 France ...........................................6.1 Puerto Rico....................................6.1 New Zealand .................................6.1 Ireland............................................6.0 Austria ...........................................6.0 Australia .........................................6.0 Qatar .............................................5.9 Bahrain ..........................................5.9 Estonia...........................................5.8 Denmark ........................................5.8 Barbados .......................................5.8 Korea, Rep. ...................................5.7 Chile ..............................................5.7 Lithuania ........................................5.7 Malaysia.........................................5.7 Malta .............................................5.7 Latvia .............................................5.7 Panama .........................................5.6 Spain .............................................5.6 Saudi Arabia ..................................5.5 South Africa ...................................5.5 Slovenia .........................................5.5 Jordan ...........................................5.4 Cyprus ...........................................5.4 Jamaica .........................................5.4 Hungary .........................................5.3 Turkey............................................5.3 Rwanda .........................................5.3 Guatemala .....................................5.3 Mauritius ........................................5.2 Taiwan, China ................................5.2 Slovak Republic .............................5.2 Czech Republic .............................5.2 Trinidad and Tobago......................5.2 Indonesia .......................................5.2 Namibia .........................................5.1 Kenya ............................................5.1 Oman ............................................5.1 Morocco ........................................5.1 Philippines .....................................5.1 Croatia ...........................................5.1 Dominican Republic .......................5.0 Greece ...........................................5.0 Costa Rica .....................................5.0 Azerbaijan ......................................5.0 Italy ................................................5.0 Seychelles......................................4.9 Mexico ...........................................4.9 Kuwait ...........................................4.9 Senegal .........................................4.9 Macedonia, FYR ............................4.9 Sri Lanka .......................................4.9 Montenegro ...................................4.8 Honduras .......................................4.8 SOURCE: MEAN 4.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 506 The Global Competitiveness Report 2014–2015 VALUE Gambia, The ..................................4.8 Thailand .........................................4.7 Cape Verde ...................................4.7 Mongolia ........................................4.7 Brazil..............................................4.7 Guyana ..........................................4.7 Tunisia ...........................................4.7 Peru ...............................................4.6 Romania ........................................4.6 Zambia ..........................................4.6 Uruguay .........................................4.6 Colombia .......................................4.5 Pakistan .........................................4.5 Mauritania ......................................4.5 Cambodia ......................................4.5 Côte d’Ivoire ..................................4.5 Georgia ..........................................4.5 Poland ...........................................4.5 Bulgaria .........................................4.4 Botswana ......................................4.4 Kazakhstan ....................................4.4 Nigeria ...........................................4.4 Armenia .........................................4.4 Moldova .........................................4.3 China .............................................4.3 Uganda ..........................................4.3 Bangladesh....................................4.3 Lebanon ........................................4.3 Zimbabwe ......................................4.3 Mozambique ..................................4.3 Madagascar ...................................4.3 Ghana ............................................4.3 Mali ................................................4.2 Serbia ............................................4.2 El Salvador.....................................4.2 Russian Federation ........................4.2 Suriname .......................................4.2 India...............................................4.1 Tajikistan ........................................4.1 Cameroon......................................4.1 Ukraine ..........................................4.1 Lao PDR ........................................4.1 Nepal .............................................4.0 Albania...........................................4.0 Gabon ...........................................4.0 Paraguay .......................................4.0 Ethiopia..........................................4.0 Nicaragua ......................................3.9 Swaziland ......................................3.9 Iran, Islamic Rep. ...........................3.9 Vietnam .........................................3.9 Argentina .......................................3.8 Bhutan ...........................................3.8 Tanzania ........................................3.8 Egypt .............................................3.8 Bolivia ............................................3.8 Malawi ...........................................3.8 Venezuela ......................................3.8 Kyrgyz Republic .............................3.7 Haiti ...............................................3.6 Burkina Faso..................................3.5 Sierra Leone ..................................3.5 Lesotho .........................................3.5 Algeria ...........................................3.4 Guinea ...........................................3.3 Yemen ...........................................3.2 Angola ...........................................3.2 Libya ..............................................3.1 Burundi ..........................................3.1 Timor-Leste ...................................3.0 Chad..............................................2.9 Myanmar........................................2.7 © 2014 World Economic Forum 1 MEAN 4.8 7 2.2: Data Tables 9.02 Firm-level technology absorption In your country, to what extent do businesses adopt new technology? [1 = not at all; 7 = adopt extensively] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Iceland ...........................................6.2 Japan ............................................6.1 United States .................................6.1 Norway ..........................................6.1 Israel ..............................................6.0 Switzerland ....................................6.0 United Arab Emirates .....................6.0 Luxembourg ..................................6.0 Sweden .........................................6.0 Finland ...........................................5.8 New Zealand .................................5.8 Qatar .............................................5.8 Germany ........................................5.7 United Kingdom .............................5.7 Denmark ........................................5.7 Singapore ......................................5.7 Austria ...........................................5.7 Puerto Rico....................................5.6 Hong Kong SAR ............................5.6 Belgium .........................................5.6 Netherlands ...................................5.6 Portugal .........................................5.6 Australia .........................................5.6 Malaysia.........................................5.6 Ireland............................................5.6 Taiwan, China ................................5.5 France ...........................................5.5 Korea, Rep. ...................................5.4 South Africa ...................................5.4 Canada ..........................................5.4 Saudi Arabia ..................................5.4 Estonia...........................................5.4 Lithuania ........................................5.4 Bahrain ..........................................5.3 Panama .........................................5.3 Jordan ...........................................5.3 Turkey............................................5.2 Malta .............................................5.2 Chile ..............................................5.2 Cyprus ...........................................5.1 Philippines .....................................5.1 Indonesia .......................................5.1 Senegal .........................................5.0 Mauritius ........................................5.0 Costa Rica .....................................5.0 Barbados .......................................5.0 Guatemala .....................................5.0 Latvia .............................................5.0 Rwanda .........................................5.0 Czech Republic .............................5.0 Slovenia .........................................4.9 Spain .............................................4.9 Sri Lanka .......................................4.9 Namibia .........................................4.9 Thailand .........................................4.9 Kenya ............................................4.8 Slovak Republic .............................4.8 Oman ............................................4.8 Brazil..............................................4.8 Honduras .......................................4.8 Jamaica .........................................4.7 Kuwait ...........................................4.7 Seychelles......................................4.7 Azerbaijan ......................................4.7 Hungary .........................................4.7 Mongolia ........................................4.7 Zambia ..........................................4.7 China .............................................4.7 Cape Verde ...................................4.6 Mexico ...........................................4.6 Trinidad and Tobago......................4.6 Croatia ...........................................4.6 SOURCE: 1 MEAN 4.7 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.7 7 Côte d’Ivoire ..................................4.6 Greece ...........................................4.5 Morocco ........................................4.5 Gambia, The ..................................4.5 Dominican Republic .......................4.5 Peru ...............................................4.5 Tunisia ...........................................4.5 Guyana ..........................................4.4 Romania ........................................4.4 El Salvador.....................................4.4 Pakistan .........................................4.4 Cameroon......................................4.4 Bulgaria .........................................4.4 Gabon ...........................................4.4 Madagascar ...................................4.4 Montenegro ...................................4.4 Colombia .......................................4.4 Kazakhstan ....................................4.4 Nigeria ...........................................4.3 Botswana ......................................4.3 Uruguay .........................................4.3 Lebanon ........................................4.3 Ghana ............................................4.3 Lao PDR ........................................4.3 Cambodia ......................................4.3 Russian Federation ........................4.2 Mozambique ..................................4.2 Ukraine ..........................................4.2 Poland ...........................................4.2 India...............................................4.2 Georgia ..........................................4.2 Mauritania ......................................4.2 Macedonia, FYR ............................4.2 Italy ................................................4.2 Mali ................................................4.1 Bangladesh....................................4.1 Moldova .........................................4.1 Uganda ..........................................4.1 Zimbabwe ......................................4.1 Albania...........................................4.1 Armenia .........................................4.1 Paraguay .......................................4.1 Argentina .......................................4.0 Suriname .......................................4.0 Tajikistan ........................................4.0 Kyrgyz Republic .............................3.9 Swaziland ......................................3.9 Bhutan ...........................................3.9 Vietnam .........................................3.9 Venezuela ......................................3.9 Nepal .............................................3.9 Nicaragua ......................................3.8 Malawi ...........................................3.8 Egypt .............................................3.8 Serbia ............................................3.8 Ethiopia..........................................3.8 Tanzania ........................................3.8 Bolivia ............................................3.7 Iran, Islamic Rep. ...........................3.7 Burkina Faso..................................3.7 Guinea ...........................................3.7 Yemen ...........................................3.7 Haiti ...............................................3.5 Lesotho .........................................3.5 Sierra Leone ..................................3.5 Algeria ...........................................3.4 Timor-Leste ...................................3.3 Chad..............................................3.3 Burundi ..........................................3.2 Libya ..............................................3.2 Angola ...........................................2.9 Myanmar........................................2.9 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 507 2.2: Data Tables 9.03 FDI and technology transfer To what extent does foreign direct investment (FDI) bring new technology into your country? [1 = not at all; 7 = to a great extent—FDI is a key source of new technology] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Ireland............................................6.4 Singapore ......................................5.9 United Arab Emirates .....................5.8 Panama .........................................5.7 Costa Rica .....................................5.6 Qatar .............................................5.6 Lithuania ........................................5.5 Malaysia.........................................5.5 Luxembourg ..................................5.4 Saudi Arabia ..................................5.4 Israel ..............................................5.4 Chile ..............................................5.3 Malta .............................................5.2 Portugal .........................................5.2 Thailand .........................................5.2 Puerto Rico....................................5.2 United Kingdom .............................5.2 Slovak Republic .............................5.1 Hungary .........................................5.1 Uruguay .........................................5.1 Australia .........................................5.1 New Zealand .................................5.1 Hong Kong SAR ............................5.1 Barbados .......................................5.1 Rwanda .........................................5.1 Mexico ...........................................5.1 Peru ...............................................5.1 Turkey............................................5.1 Dominican Republic .......................5.1 Bahrain ..........................................5.0 Philippines .....................................5.0 Belgium .........................................5.0 Jordan ...........................................5.0 Estonia...........................................5.0 Switzerland ....................................5.0 Czech Republic .............................5.0 Netherlands ...................................5.0 Guatemala .....................................5.0 Brazil..............................................4.9 Indonesia .......................................4.9 United States .................................4.9 Honduras .......................................4.9 Germany ........................................4.9 Latvia .............................................4.8 Morocco ........................................4.8 Denmark ........................................4.8 Taiwan, China ................................4.8 France ...........................................4.8 Romania ........................................4.8 South Africa ...................................4.8 Cambodia ......................................4.8 Oman ............................................4.8 Sri Lanka .......................................4.8 Colombia .......................................4.8 Japan ............................................4.7 Uganda ..........................................4.7 Mauritius ........................................4.7 Namibia .........................................4.7 Kenya ............................................4.7 Sweden .........................................4.7 Cape Verde ...................................4.7 Mongolia ........................................4.7 Azerbaijan ......................................4.7 Zambia ..........................................4.7 Spain .............................................4.7 Norway ..........................................4.7 Austria ...........................................4.6 Poland ...........................................4.6 Jamaica .........................................4.6 Trinidad and Tobago......................4.6 Canada ..........................................4.6 Lao PDR ........................................4.6 SOURCE: MEAN 4.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 508 The Global Competitiveness Report 2014–2015 VALUE Korea, Rep. ...................................4.6 Senegal .........................................4.6 Mozambique ..................................4.6 Macedonia, FYR ............................4.6 Nigeria ...........................................4.5 Cyprus ...........................................4.5 Armenia .........................................4.5 Gambia, The ..................................4.5 China .............................................4.5 Montenegro ...................................4.5 Cameroon......................................4.4 Tunisia ...........................................4.4 Egypt .............................................4.4 Gabon ...........................................4.3 Finland ...........................................4.3 Mali ................................................4.3 Albania...........................................4.3 Pakistan .........................................4.3 Bulgaria .........................................4.3 Burkina Faso..................................4.2 Vietnam .........................................4.2 Botswana ......................................4.2 India...............................................4.2 Paraguay .......................................4.2 Moldova .........................................4.2 Guyana ..........................................4.2 Tanzania ........................................4.2 Ghana ............................................4.2 Tajikistan ........................................4.2 Seychelles......................................4.2 Madagascar ...................................4.2 Sierra Leone ..................................4.1 Greece ...........................................4.1 El Salvador.....................................4.1 Kazakhstan ....................................4.1 Serbia ............................................4.0 Nicaragua ......................................4.0 Croatia ...........................................4.0 Ethiopia..........................................4.0 Bangladesh....................................3.9 Georgia ..........................................3.9 Slovenia .........................................3.9 Algeria ...........................................3.9 Kyrgyz Republic .............................3.9 Angola ...........................................3.9 Swaziland ......................................3.8 Malawi ...........................................3.8 Côte d’Ivoire ..................................3.8 Guinea ...........................................3.8 Suriname .......................................3.8 Russian Federation ........................3.8 Iran, Islamic Rep. ...........................3.8 Iceland ...........................................3.7 Nepal .............................................3.7 Ukraine ..........................................3.7 Italy ................................................3.7 Bolivia ............................................3.6 Bhutan ...........................................3.6 Haiti ...............................................3.6 Myanmar........................................3.5 Zimbabwe ......................................3.5 Lesotho .........................................3.5 Mauritania ......................................3.4 Yemen ...........................................3.4 Chad..............................................3.4 Timor-Leste ...................................3.4 Lebanon ........................................3.4 Burundi ..........................................3.3 Kuwait ...........................................3.2 Argentina .......................................3.1 Venezuela ......................................2.9 Libya ..............................................2.7 © 2014 World Economic Forum 1 MEAN 4.5 7 2.2: Data Tables 9.04 Internet users Percentage of individuals using the Internet 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Iceland .........................................96.5 Norway ........................................95.1 Sweden .......................................94.8 Denmark ......................................94.6 Netherlands .................................94.0 Luxembourg ................................93.8 Finland .........................................91.5 Bahrain ........................................90.0 United Kingdom ...........................89.8 United Arab Emirates ...................88.0 Switzerland ..................................86.7 Japan ..........................................86.3 Canada ........................................85.8 Qatar ...........................................85.3 Korea, Rep. .................................84.8 United States ...............................84.2 Germany ......................................84.0 Australia .......................................83.0 New Zealand ...............................82.8 Belgium .......................................82.2 France .........................................81.9 Austria .........................................80.6 Estonia.........................................80.0 Taiwan, China ..............................80.0 Ireland..........................................78.2 Slovak Republic ...........................77.9 Kuwait .........................................75.5 Latvia ...........................................75.2 Barbados .....................................75.0 Hong Kong SAR ..........................74.2 Czech Republic ...........................74.1 Puerto Rico..................................73.9 Singapore ....................................73.0 Slovenia .......................................72.7 Hungary .......................................72.6 Spain ...........................................71.6 Israel ............................................70.8 Lebanon ......................................70.5 Malta ...........................................68.9 Lithuania ......................................68.5 Malaysia.......................................67.0 Croatia .........................................66.7 Chile ............................................66.5 Oman ..........................................66.5 Cyprus .........................................65.5 Trinidad and Tobago....................63.8 Poland .........................................62.8 Portugal .......................................62.1 Russian Federation ......................61.4 Macedonia, FYR ..........................61.2 Saudi Arabia ................................60.5 Albania.........................................60.1 Argentina .....................................59.9 Greece .........................................59.9 Azerbaijan ....................................58.7 Italy ..............................................58.5 Uruguay .......................................58.1 Montenegro .................................56.8 Morocco ......................................56.0 Venezuela ....................................54.9 Kazakhstan ..................................54.0 Bulgaria .......................................53.1 Colombia .....................................51.7 Brazil............................................51.6 Serbia ..........................................51.5 Seychelles....................................50.4 Romania ......................................49.8 Egypt ...........................................49.6 South Africa .................................48.9 Moldova .......................................48.8 Armenia .......................................46.3 Turkey..........................................46.3 73 74 75 76 77 78 79 80 81 82 83 84 85 85 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 108 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 130 132 133 133 135 136 136 138 139 140 141 142 143 144 SOURCE: COUNTRY/ECONOMY VALUE Costa Rica ...................................46.0 Dominican Republic .....................45.9 China ...........................................45.8 Jordan .........................................44.2 Vietnam .......................................43.9 Tunisia .........................................43.8 Mexico .........................................43.5 Georgia ........................................43.1 Panama .......................................42.9 Ukraine ........................................41.8 Bolivia ..........................................39.5 Peru .............................................39.2 Kenya ..........................................39.0 Mauritius ......................................39.0 Nigeria .........................................38.0 Jamaica .......................................37.8 Cape Verde .................................37.5 Suriname .....................................37.4 Philippines ...................................37.0 Paraguay .....................................36.9 Guyana ........................................33.0 Iran, Islamic Rep. .........................31.4 Bhutan .........................................29.9 Thailand .......................................28.9 Swaziland ....................................24.7 Kyrgyz Republic ...........................23.4 El Salvador...................................23.1 Sri Lanka .....................................21.9 Senegal .......................................20.9 Yemen .........................................20.0 Guatemala ...................................19.7 Angola .........................................19.1 Zimbabwe ....................................18.5 Honduras .....................................17.8 Mongolia ......................................17.7 Algeria .........................................16.5 Libya ............................................16.5 Uganda ........................................16.2 Tajikistan ......................................16.0 Indonesia .....................................15.8 Nicaragua ....................................15.5 Zambia ........................................15.4 India.............................................15.1 Botswana ....................................15.0 Gambia, The ................................14.0 Namibia .......................................13.9 Nepal ...........................................13.3 Lao PDR ......................................12.5 Ghana ..........................................12.3 Pakistan .......................................10.9 Haiti .............................................10.6 Gabon ...........................................9.2 Rwanda .........................................8.7 Bangladesh....................................6.5 Cameroon......................................6.4 Mauritania ......................................6.2 Cambodia ......................................6.0 Malawi ...........................................5.4 Mozambique ..................................5.4 Lesotho .........................................5.0 Burkina Faso..................................4.4 Tanzania ........................................4.4 Côte d’Ivoire ..................................2.6 Chad..............................................2.3 Mali ................................................2.3 Madagascar ...................................2.2 Ethiopia..........................................1.9 Sierra Leone ..................................1.7 Guinea ...........................................1.6 Burundi ..........................................1.3 Myanmar........................................1.2 Timor-Leste ...................................1.1 International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition) © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 509 2.2: Data Tables 9.05 Fixed broadband Internet subscriptions Fixed broadband Internet subscriptions per 100 population 2013 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Switzerland ..................................43.0 Denmark ......................................40.2 Netherlands .................................40.1 France .........................................38.8 Korea, Rep. .................................38.0 Norway ........................................36.4 United Kingdom ...........................35.7 Iceland .........................................35.1 Germany ......................................34.6 Belgium .......................................34.4 Luxembourg ................................33.5 Canada ........................................33.3 Malta ...........................................32.8 Sweden .......................................32.6 Finland .........................................30.9 Hong Kong SAR ..........................30.8 New Zealand ...............................29.2 Japan ..........................................28.8 United States ...............................28.5 Estonia.........................................26.5 Greece .........................................26.2 Austria .........................................26.0 Singapore ....................................25.7 Israel ............................................25.7 Spain ...........................................25.6 Australia .......................................25.0 Slovenia .......................................25.0 Latvia ...........................................24.7 Ireland..........................................24.2 Taiwan, China ..............................24.2 Hungary .......................................24.1 Portugal .......................................23.8 Barbados .....................................23.8 Italy ..............................................22.3 Lithuania ......................................22.0 Croatia .........................................21.5 Uruguay .......................................21.1 Cyprus .........................................19.9 Bulgaria .......................................19.0 Romania ......................................17.3 Czech Republic ...........................17.0 Azerbaijan ....................................17.0 Russian Federation ......................16.6 Puerto Rico..................................16.3 Macedonia, FYR ..........................15.7 Poland .........................................15.6 Slovak Republic ...........................15.5 Trinidad and Tobago....................14.6 Serbia ..........................................13.9 Argentina .....................................13.9 China ...........................................13.6 Moldova .......................................13.4 Bahrain ........................................13.2 Seychelles....................................12.9 Montenegro .................................12.8 Mauritius ......................................12.5 Chile ............................................12.3 Kazakhstan ..................................11.6 Turkey..........................................11.2 Mexico .........................................11.1 United Arab Emirates ...................11.1 Georgia ........................................10.2 Brazil............................................10.1 Lebanon ......................................10.0 Qatar .............................................9.9 Costa Rica .....................................9.7 Colombia .......................................9.3 Ukraine ..........................................8.8 Malaysia.........................................8.2 Armenia .........................................7.9 Panama .........................................7.7 Thailand .........................................7.4 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 143 SOURCE: 1 2007 COUNTRY/ECONOMY International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition) 2 2008 510 The Global Competitiveness Report 2014–2015 VALUE Saudi Arabia ..................................7.3 Venezuela ......................................7.3 Suriname .......................................6.9 Albania...........................................5.8 Vietnam .........................................5.6 Iran, Islamic Rep. ...........................5.6 Peru ...............................................5.2 Mongolia ........................................4.9 Tunisia ...........................................4.8 Jamaica .........................................4.8 Dominican Republic .......................4.7 Guyana ..........................................4.6 El Salvador.....................................4.5 Cape Verde ...................................4.3 Algeria ...........................................3.3 Egypt .............................................3.3 South Africa ...................................3.1 Jordan ...........................................2.8 Bhutan ...........................................2.7 Oman ............................................2.6 Philippines .....................................2.6 Morocco ........................................2.5 Nicaragua ......................................2.2 Sri Lanka .......................................2.0 Guatemala .....................................1.8 Paraguay .......................................1.6 Kuwait ...........................................1.4 Bolivia ............................................1.3 Indonesia .......................................1.3 Namibia .........................................1.3 India...............................................1.2 Botswana ......................................1.1 Yemen ...........................................1.1 Libya ..............................................1.0 Kyrgyz Republic .............................1.0 Honduras .......................................0.8 Senegal .........................................0.8 Nepal .............................................0.8 Zimbabwe ......................................0.7 Bangladesh....................................0.6 Pakistan .........................................0.6 Gabon ...........................................0.5 Swaziland ......................................0.3 Côte d’Ivoire ..................................0.3 Ghana ............................................0.3 Ethiopia..........................................0.3 Angola ...........................................0.2 Cambodia ......................................0.2 Mauritania ......................................0.2 Myanmar........................................0.2 Lao PDR ........................................0.1 Kenya ............................................0.1 Chad..............................................0.1 Uganda ..........................................0.1 Lesotho .........................................0.1 Tanzania ........................................0.1 Burkina Faso..................................0.1 Cameroon......................................0.1 Zambia ..........................................0.1 Tajikistan ........................................0.1 Mozambique ..................................0.1 Timor-Leste ...................................0.1 Madagascar ...................................0.1 Gambia, The ..................................0.0 Rwanda .........................................0.0 Mali ................................................0.0 Malawi ...........................................0.0 Nigeria ...........................................0.0 Guinea ...........................................0.0 Burundi ..........................................0.0 Haiti2..............................................0.0 Sierra Leone1 .................................0.0 © 2014 World Economic Forum 2.2: Data Tables 9.06 Internet bandwidth International Internet bandwidth (kb/s) per Internet user 2013 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Luxembourg ...........................6,445.8 Hong Kong SAR .....................1,762.8 Malta ......................................1,204.6 Singapore ..................................580.7 Iceland .......................................443.2 Sweden .....................................374.8 United Kingdom .........................352.6 Switzerland ................................314.1 Denmark ....................................261.2 Netherlands ...............................235.0 Belgium .....................................201.9 Suriname ...................................201.6 Norway ......................................195.9 Portugal .....................................181.1 Finland .......................................172.2 Slovenia .....................................152.7 France .......................................141.5 Puerto Rico2 ..............................136.9 Romania ....................................136.6 Ireland........................................132.3 Austria .......................................128.5 Canada ......................................115.9 Moldova .....................................115.8 Germany ....................................112.4 Czech Republic .........................111.2 Serbia ........................................108.9 Bulgaria .....................................107.2 Spain .........................................102.4 Israel ..........................................100.5 Lithuania ......................................99.6 Italy ..............................................89.8 Greece .........................................84.8 Georgia ........................................82.1 Montenegro .................................76.5 Colombia .....................................76.1 Costa Rica ...................................73.5 Poland .........................................73.0 Latvia ...........................................68.1 Australia .......................................67.1 Turkey..........................................65.5 Taiwan, China ..............................65.1 United States ...............................64.1 Cyprus .........................................63.4 Uruguay .......................................59.9 Mongolia ......................................59.7 Philippines ...................................57.6 Chile ............................................56.3 Armenia .......................................55.1 Panama .......................................54.3 Ukraine ........................................52.9 United Arab Emirates ...................52.3 Barbados .....................................52.0 Kenya ..........................................49.9 Kazakhstan ..................................49.8 Qatar ...........................................48.7 Saudi Arabia ................................46.7 New Zealand ...............................45.6 Azerbaijan ....................................45.2 Argentina .....................................44.3 Brazil............................................42.9 Russian Federation ......................41.2 Croatia .........................................40.5 El Salvador...................................40.5 Japan ..........................................39.2 Thailand .......................................37.4 Macedonia, FYR ..........................36.4 Oman ..........................................34.0 Nicaragua ....................................32.6 Jamaica .......................................32.3 Korea, Rep. .................................30.3 Estonia.........................................29.1 Algeria .........................................26.3 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 SOURCE: 1 2004 COUNTRY/ECONOMY VALUE Myanmar......................................26.2 Bahrain ........................................25.9 Hungary .......................................24.9 Mauritius ......................................24.4 Seychelles....................................23.6 Côte d’Ivoire ................................22.7 Mexico .........................................22.6 Morocco ......................................22.3 Malaysia.......................................22.1 Libya ............................................21.5 Albania.........................................21.0 Tunisia .........................................19.1 Peru .............................................18.1 Gabon .........................................18.1 Timor-Leste3 ................................17.5 Trinidad and Tobago....................17.2 Dominican Republic .....................16.9 Vietnam .......................................15.9 Lebanon ......................................15.4 Paraguay .....................................12.7 Slovak Republic ...........................11.8 Cape Verde .................................11.6 Burundi ........................................11.2 Guatemala ...................................10.8 Lao PDR ......................................10.6 Guyana ........................................10.2 Venezuela ....................................10.2 Indonesia .....................................10.1 Honduras .....................................10.0 Kuwait ...........................................9.8 Rwanda .........................................9.8 Cambodia ......................................9.3 Bolivia ............................................9.0 Gambia, The ..................................7.2 India...............................................6.8 Ethiopia..........................................6.7 Botswana ......................................6.6 Pakistan .........................................6.5 Tanzania ........................................6.5 Lesotho .........................................5.9 Mali ................................................5.9 Senegal .........................................5.4 Egypt .............................................5.3 Ghana ............................................5.2 Sri Lanka .......................................5.0 Iran, Islamic Rep. ...........................4.6 Tajikistan ........................................4.6 China .............................................4.2 Uganda ..........................................4.2 Zambia ..........................................4.2 Jordan ...........................................4.0 Bangladesh....................................4.0 Kyrgyz Republic .............................3.9 South Africa ...................................3.7 Zimbabwe ......................................3.5 Namibia .........................................3.4 Swaziland ......................................3.2 Cameroon......................................3.2 Burkina Faso..................................3.1 Mozambique ..................................2.9 Bhutan ...........................................2.8 Mauritania ......................................2.6 Guinea ...........................................2.5 Yemen ...........................................2.5 Nepal .............................................2.4 Malawi ...........................................2.2 Sierra Leone3 .................................2.0 Angola ...........................................2.0 Nigeria ...........................................0.8 Chad..............................................0.6 Madagascar ...................................0.4 Haiti1..............................................0.2 International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition) 2 2010 3 2012 © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 511 2.2: Data Tables 9.07 Mobile broadband subscriptions Mobile broadband subscriptions per 100 population 2013 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Singapore ..................................135.1 Finland .......................................123.5 Japan ........................................120.5 Australia .....................................110.5 Bahrain ......................................109.7 Denmark ....................................107.3 Korea, Rep. ...............................105.3 Sweden2 ....................................104.9 Hong Kong SAR ..........................95.4 United States ...............................92.8 United Arab Emirates ...................89.0 United Kingdom ...........................87.2 Norway ........................................85.7 New Zealand ...............................81.3 Luxembourg ................................80.5 Estonia.........................................77.4 Qatar ...........................................76.8 Iceland .........................................74.3 Botswana ....................................74.1 Costa Rica ...................................72.1 Oman ..........................................67.3 Ireland..........................................67.2 Spain ...........................................67.1 Croatia .........................................65.3 Italy ..............................................64.8 Austria .........................................62.8 Netherlands .................................62.3 Latvia ...........................................61.2 Russian Federation ......................60.1 Poland2........................................58.5 Bulgaria .......................................58.3 Taiwan, China ..............................57.1 France .........................................57.1 Kazakhstan ..................................56.6 Serbia ..........................................54.8 Slovak Republic ...........................53.6 Israel2 ..........................................53.0 Thailand .......................................52.3 Brazil............................................51.5 Lithuania ......................................49.9 Saudi Arabia ................................49.5 Moldova .......................................47.2 Belgium .......................................46.0 Czech Republic ...........................45.3 Germany ......................................44.7 Switzerland ..................................44.3 Azerbaijan ....................................43.9 Cape Verde .................................42.6 Lebanon ......................................41.8 Slovenia .......................................41.8 Barbados .....................................41.5 Canada2 ......................................41.0 Malta ...........................................40.6 Ghana ..........................................39.9 Macedonia, FYR ..........................38.3 Zimbabwe ....................................37.8 Romania ......................................37.6 Portugal .......................................36.7 Greece .........................................36.1 Chile ............................................35.6 Namibia .......................................34.2 Turkey..........................................32.3 Uruguay2 .....................................31.9 Cyprus .........................................31.6 Indonesia2....................................31.6 Egypt ...........................................31.1 Armenia .......................................31.0 Mauritius ......................................28.8 Jamaica .......................................28.3 Hungary .......................................26.3 Tunisia .........................................26.1 Dominican Republic .....................25.4 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 133 133 133 133 133 133 133 n/a n/a n/a n/a SOURCE: 1 2011 COUNTRY/ECONOMY International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition) 2 2012 512 The Global Competitiveness Report 2014–2015 VALUE Panama .......................................25.2 South Africa2 ...............................25.2 Albania.........................................24.7 Montenegro .................................23.1 Kyrgyz Republic ...........................22.7 China ...........................................21.4 Philippines ...................................20.3 Trinidad and Tobago....................18.9 Vietnam2 ......................................18.8 Mongolia2 ....................................18.2 Georgia ........................................16.4 Argentina2 ....................................16.2 Jordan .........................................16.1 Puerto Rico..................................15.8 Bhutan .........................................15.6 Senegal .......................................15.3 Suriname2 ....................................15.0 Morocco ......................................15.0 Bolivia ..........................................13.9 Nepal ...........................................13.0 Malaysia.......................................12.5 Angola .........................................12.1 Honduras .....................................11.7 Nigeria .........................................10.1 Seychelles......................................9.9 Cambodia ......................................9.6 Burkina Faso..................................9.0 Colombia .......................................7.9 Sri Lanka .......................................7.8 Uganda2 ........................................7.4 Lesotho .........................................7.4 Mexico1 .........................................6.3 El Salvador.....................................6.0 Rwanda .........................................5.8 Ukraine2 .........................................5.4 Mauritania ......................................5.4 Ethiopia..........................................4.8 Paraguay .......................................4.8 Guatemala .....................................4.4 Malawi ...........................................3.9 Venezuela ......................................3.7 India...............................................3.2 Kenya ............................................3.0 Peru ...............................................2.9 Tanzania ........................................2.7 Lao PDR2 ......................................2.1 Mali ................................................1.8 Mozambique2 ................................1.8 Nicaragua ......................................1.3 Gambia, The2 ................................1.2 Iran, Islamic Rep. ...........................1.2 Myanmar........................................1.0 Zambia ..........................................0.7 Swaziland1 .....................................0.7 Pakistan .........................................0.5 Madagascar ...................................0.4 Timor-Leste1 ..................................0.4 Bangladesh....................................0.4 Yemen2..........................................0.2 Burundi2 ........................................0.0 Algeria ...........................................0.0 Cameroon......................................0.0 Chad..............................................0.0 Côte d’Ivoire1.................................0.0 Gabon2 ..........................................0.0 Guinea2 .........................................0.0 Guyana ..........................................0.0 Haiti1..............................................0.0 Kuwait ...........................................n/a Libya ..............................................n/a Sierra Leone ..................................n/a Tajikistan ........................................n/a © 2014 World Economic Forum Data Tables Market size 2.2: Data Tables 10.01 Domestic market size index Sum of gross domestic product plus value of imports of goods and services, minus value of exports of goods and services, normalized on a 1–7 (best) scale 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK United States .................................7.0 China .............................................6.8 India...............................................6.2 Japan ............................................6.1 Germany ........................................5.8 Brazil..............................................5.7 Russian Federation ........................5.7 United Kingdom .............................5.7 France ...........................................5.6 Mexico ...........................................5.5 Italy ................................................5.5 Korea, Rep. ...................................5.4 Canada ..........................................5.4 Spain .............................................5.3 Indonesia .......................................5.3 Turkey............................................5.2 Australia .........................................5.1 Iran, Islamic Rep. ...........................5.0 Taiwan, China ................................5.0 Poland ...........................................4.9 Argentina .......................................4.9 Saudi Arabia ..................................4.8 Thailand .........................................4.8 South Africa ...................................4.8 Pakistan .........................................4.8 Netherlands ...................................4.7 Egypt .............................................4.7 Colombia .......................................4.6 Malaysia.........................................4.6 Philippines .....................................4.5 Nigeria ...........................................4.5 Belgium .........................................4.4 Hong Kong SAR ............................4.4 Venezuela ......................................4.4 Sweden .........................................4.4 Vietnam .........................................4.4 Ukraine ..........................................4.4 Bangladesh....................................4.4 Austria ...........................................4.4 Peru ...............................................4.4 Chile ..............................................4.3 Switzerland ....................................4.3 Singapore ......................................4.3 Romania ........................................4.2 Algeria ...........................................4.2 Greece ...........................................4.2 Israel ..............................................4.2 Czech Republic .............................4.1 Norway ..........................................4.1 Portugal .........................................4.1 United Arab Emirates .....................4.0 Kazakhstan ....................................4.0 Morocco ........................................4.0 Denmark ........................................4.0 Finland ...........................................4.0 Hungary .........................................3.9 Sri Lanka .......................................3.8 Ethiopia..........................................3.8 Ireland............................................3.7 New Zealand .................................3.7 Slovak Republic .............................3.7 Puerto Rico....................................3.7 Tunisia ...........................................3.6 Qatar .............................................3.6 Myanmar........................................3.6 Bulgaria .........................................3.6 Dominican Republic .......................3.6 Ghana ............................................3.5 Angola ...........................................3.5 Kenya ............................................3.5 Tanzania ........................................3.5 Guatemala .....................................3.5 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 SOURCE: COUNTRY/ECONOMY World Economic Forum’s calculations. For more details, refer to Appendix B of Chapter 1.1 of this Report 514 The Global Competitiveness Report 2014–2015 VALUE Serbia ............................................3.4 Kuwait ...........................................3.4 Azerbaijan ......................................3.4 Croatia ...........................................3.3 Lebanon ........................................3.3 Oman ............................................3.3 Yemen ...........................................3.3 Lithuania ........................................3.3 Costa Rica .....................................3.2 Uganda ..........................................3.2 Panama .........................................3.2 Uruguay .........................................3.2 Cameroon......................................3.1 El Salvador.....................................3.1 Bolivia ............................................3.1 Jordan ...........................................3.1 Paraguay .......................................3.1 Nepal .............................................3.1 Slovenia .........................................3.1 Cambodia ......................................3.0 Honduras .......................................3.0 Côte d’Ivoire ..................................2.9 Libya ..............................................2.9 Latvia .............................................2.9 Botswana ......................................2.9 Mozambique ..................................2.9 Nicaragua ......................................2.8 Senegal .........................................2.8 Georgia ..........................................2.8 Jamaica .........................................2.7 Albania...........................................2.7 Burkina Faso..................................2.7 Estonia...........................................2.7 Timor-Leste ...................................2.7 Bahrain ..........................................2.7 Chad..............................................2.7 Macedonia, FYR ............................2.6 Tajikistan ........................................2.6 Armenia .........................................2.6 Luxembourg ..................................2.6 Zambia ..........................................2.6 Madagascar ...................................2.6 Mauritius ........................................2.5 Gabon ...........................................2.5 Namibia .........................................2.5 Kyrgyz Republic .............................2.5 Cyprus ...........................................2.5 Mongolia ........................................2.5 Mali ................................................2.5 Malawi ...........................................2.4 Lao PDR ........................................2.4 Trinidad and Tobago......................2.4 Rwanda .........................................2.4 Haiti ...............................................2.4 Moldova .........................................2.4 Guinea ...........................................2.3 Iceland ...........................................2.1 Malta .............................................2.1 Zimbabwe ......................................2.1 Sierra Leone ..................................2.0 Mauritania ......................................2.0 Montenegro ...................................1.9 Guyana ..........................................1.8 Barbados .......................................1.8 Lesotho .........................................1.8 Swaziland ......................................1.8 Burundi ..........................................1.8 Suriname .......................................1.7 Bhutan ...........................................1.6 Gambia, The ..................................1.4 Seychelles......................................1.0 Cape Verde ...................................1.0 © 2014 World Economic Forum 2.2: Data Tables 10.02 Foreign market size index Value of exports of goods and services, normalized on a 1–7 (best) scale 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK China .............................................7.0 United States .................................6.7 Germany ........................................6.5 India...............................................6.4 Hong Kong SAR ............................6.2 Korea, Rep. ...................................6.2 Japan ............................................6.2 United Kingdom .............................6.1 Russian Federation ........................6.1 Netherlands ...................................6.1 Taiwan, China ................................6.1 France ...........................................6.1 Singapore ......................................6.0 Mexico ...........................................6.0 Italy ................................................5.9 Thailand .........................................5.9 Saudi Arabia ..................................5.9 Belgium .........................................5.9 Spain .............................................5.8 Malaysia.........................................5.8 Canada ..........................................5.8 Poland ...........................................5.7 Indonesia .......................................5.6 Brazil..............................................5.6 Vietnam .........................................5.6 Turkey............................................5.5 Czech Republic .............................5.5 Iran, Islamic Rep. ...........................5.5 United Arab Emirates .....................5.5 Austria ...........................................5.4 Ireland............................................5.4 Australia .........................................5.4 Hungary .........................................5.3 South Africa ...................................5.3 Switzerland ....................................5.3 Sweden .........................................5.3 Nigeria ...........................................5.3 Ukraine ..........................................5.2 Argentina .......................................5.2 Qatar .............................................5.2 Slovak Republic .............................5.1 Philippines .....................................5.1 Romania ........................................5.1 Denmark ........................................5.0 Chile ..............................................5.0 Kuwait ...........................................5.0 Norway ..........................................5.0 Portugal .........................................5.0 Kazakhstan ....................................4.9 Venezuela ......................................4.9 Egypt .............................................4.9 Algeria ...........................................4.9 Israel ..............................................4.9 Colombia .......................................4.9 Puerto Rico....................................4.8 Angola ...........................................4.8 Greece ...........................................4.8 Peru ...............................................4.8 Finland ...........................................4.8 Bulgaria .........................................4.8 Bangladesh....................................4.8 Luxembourg ..................................4.8 Pakistan .........................................4.7 Oman ............................................4.7 Morocco ........................................4.7 Lithuania ........................................4.6 Libya ..............................................4.6 Slovenia .........................................4.6 Tunisia ...........................................4.6 Azerbaijan ......................................4.6 Lebanon ........................................4.5 New Zealand .................................4.4 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 SOURCE: COUNTRY/ECONOMY VALUE Panama .........................................4.4 Serbia ............................................4.4 Croatia ...........................................4.3 Ghana ............................................4.3 Bahrain ..........................................4.3 Sri Lanka .......................................4.3 Cambodia ......................................4.3 Estonia...........................................4.2 Dominican Republic .......................4.2 Bolivia ............................................4.2 Latvia .............................................4.1 Trinidad and Tobago......................4.1 Côte d’Ivoire ..................................4.1 Costa Rica .....................................4.1 Myanmar........................................4.0 Kenya ............................................4.0 Tanzania ........................................4.0 Guatemala .....................................4.0 Honduras .......................................4.0 Gabon ...........................................3.9 Yemen ...........................................3.9 Ethiopia..........................................3.9 Jordan ...........................................3.9 Paraguay .......................................3.9 Botswana ......................................3.9 El Salvador.....................................3.8 Cameroon......................................3.8 Uruguay .........................................3.8 Zambia ..........................................3.8 Macedonia, FYR ............................3.7 Mozambique ..................................3.7 Mauritius ........................................3.7 Uganda ..........................................3.7 Chad..............................................3.7 Malta .............................................3.7 Georgia ..........................................3.6 Cyprus ...........................................3.6 Albania...........................................3.6 Mongolia ........................................3.5 Iceland ...........................................3.5 Kyrgyz Republic .............................3.5 Nicaragua ......................................3.5 Jamaica .........................................3.5 Senegal .........................................3.4 Madagascar ...................................3.4 Lao PDR ........................................3.4 Burkina Faso..................................3.4 Namibia .........................................3.4 Mauritania ......................................3.3 Moldova .........................................3.3 Mali ................................................3.3 Malawi ...........................................3.2 Tajikistan ........................................3.2 Armenia .........................................3.2 Nepal .............................................3.1 Guyana ..........................................3.1 Suriname .......................................3.1 Swaziland ......................................3.1 Zimbabwe ......................................3.1 Guinea ...........................................3.0 Montenegro ...................................3.0 Sierra Leone ..................................3.0 Barbados .......................................2.9 Rwanda .........................................2.8 Seychelles......................................2.7 Lesotho .........................................2.7 Haiti ...............................................2.6 Bhutan ...........................................2.6 Gambia, The ..................................2.3 Cape Verde ...................................2.2 Burundi ..........................................1.7 Timor-Leste ...................................1.5 World Economic Forum’s calculations. For more details, refer to Appendix B of Chapter 1.1 of this Report © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 515 2.2: Data Tables 10.03 GDP (PPP) Gross domestic product valued at purchasing power parity in billions of international dollars 2013 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK United States ........................16,799.7 China ....................................13,395.4 India........................................5,069.2 Japan .....................................4,698.8 Germany .................................3,232.5 Russian Federation .................2,556.2 Brazil.......................................2,423.3 United Kingdom ......................2,390.9 France ....................................2,278.0 Mexico ....................................1,842.6 Italy .........................................1,807.8 Korea, Rep. ............................1,666.8 Canada ...................................1,526.1 Spain ......................................1,391.3 Indonesia ................................1,292.8 Turkey.....................................1,174.2 Australia .....................................999.6 Iran, Islamic Rep. .......................945.5 Saudi Arabia ..............................937.2 Taiwan, China ............................929.5 Poland .......................................817.5 Argentina ...................................777.9 Netherlands ...............................700.5 Thailand .....................................673.7 South Africa ...............................596.5 Pakistan .....................................575.0 Egypt .........................................553.6 Colombia ...................................527.6 Malaysia.....................................525.7 Nigeria .......................................479.3 Philippines .................................456.4 Belgium .....................................422.8 Venezuela ..................................407.9 Sweden .....................................396.8 Hong Kong SAR ........................381.9 Switzerland ................................371.6 Austria .......................................361.4 Vietnam .....................................359.8 Singapore ..................................348.7 Peru ...........................................344.2 Ukraine ......................................336.8 Chile ..........................................334.8 Bangladesh................................325.1 Czech Republic .........................286.0 Algeria .......................................285.5 Romania ....................................285.1 Norway ......................................280.0 Israel ..........................................273.7 United Arab Emirates .................272.0 Greece .......................................265.6 Kazakhstan ................................246.9 Portugal .....................................244.8 Denmark ....................................211.9 Qatar .........................................199.6 Hungary .....................................198.2 Finland .......................................194.2 Ireland........................................188.9 Morocco ....................................179.2 Kuwait .......................................154.5 New Zealand .............................136.6 Sri Lanka ...................................136.0 Slovak Republic .........................133.1 Angola .......................................130.1 Ethiopia......................................121.4 Myanmar....................................113.0 Puerto Rico................................111.9 Tunisia .......................................108.4 Bulgaria .....................................105.0 Dominican Republic ...................103.2 Azerbaijan ..................................102.8 Oman ..........................................95.0 Ghana ..........................................88.5 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY SOURCES: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 516 The Global Competitiveness Report 2014–2015 VALUE Guatemala ...................................81.8 Serbia ..........................................81.1 Kenya ..........................................80.4 Tanzania ......................................79.4 Croatia .........................................77.9 Libya ............................................70.4 Lithuania ......................................67.6 Lebanon ......................................66.3 Panama .......................................62.0 Yemen .........................................61.8 Costa Rica ...................................61.6 Bolivia ..........................................59.2 Slovenia .......................................57.4 Uruguay .......................................56.7 Uganda ........................................54.6 Cameroon....................................53.3 El Salvador...................................47.5 Paraguay .....................................46.4 Côte d’Ivoire ................................43.8 Luxembourg ................................42.6 Nepal ...........................................42.1 Bahrain ........................................40.6 Jordan .........................................40.0 Cambodia ....................................39.7 Honduras .....................................39.2 Latvia ...........................................38.9 Botswana ....................................34.1 Gabon .........................................30.4 Estonia.........................................29.8 Mozambique ................................28.2 Chad............................................28.0 Nicaragua ....................................27.9 Senegal .......................................27.7 Georgia ........................................27.6 Trinidad and Tobago....................27.5 Burkina Faso................................26.6 Albania.........................................26.5 Timor-Leste .................................25.8 Zambia ........................................25.5 Jamaica .......................................25.2 Macedonia, FYR ..........................22.6 Madagascar .................................22.3 Cyprus .........................................22.3 Mauritius ......................................20.9 Lao PDR ......................................20.8 Armenia .......................................20.4 Tajikistan ......................................19.1 Mali ..............................................18.6 Namibia .......................................17.8 Mongolia ......................................17.1 Rwanda .......................................16.4 Malawi .........................................15.0 Kyrgyz Republic ...........................14.7 Haiti .............................................13.6 Moldova .......................................13.3 Iceland .........................................13.2 Guinea .........................................12.5 Malta ...........................................11.6 Zimbabwe ....................................10.3 Sierra Leone ..................................9.4 Mauritania ......................................8.2 Montenegro ...................................7.4 Suriname .......................................7.2 Barbados .......................................7.0 Swaziland ......................................6.8 Guyana ..........................................6.6 Burundi ..........................................5.8 Bhutan ...........................................4.7 Lesotho .........................................4.3 Gambia, The ..................................3.7 Seychelles......................................2.5 Cape Verde ...................................2.2 © 2014 World Economic Forum 2.2: Data Tables 10.04 Exports as a percentage of GDP Exports of goods and services as a percentage of gross domestic product 2013 or most recent year available RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Hong Kong SAR ........................245.0 Singapore ..................................178.1 Luxembourg ..............................164.3 Belgium .....................................112.6 Ireland........................................109.1 Netherlands ...............................100.7 Slovak Republic ...........................97.9 Hungary .......................................97.6 United Arab Emirates2 .................94.9 Czech Republic ...........................92.8 Estonia.........................................89.9 Malta ...........................................89.0 Trinidad and Tobago1 ..................88.4 Slovenia .......................................88.1 Malaysia.......................................85.6 Vietnam .......................................83.6 Lithuania ......................................83.3 Seychelles2 ..................................82.3 Libya2 ..........................................76.1 Bahrain2.......................................74.4 Cambodia ....................................74.2 Thailand .......................................74.2 Taiwan, China ..............................72.9 Qatar ...........................................72.7 Puerto Rico..................................72.6 Oman2 .........................................70.3 Bulgaria .......................................69.8 Mauritania2 ..................................69.6 Kuwait2 ........................................69.5 Lebanon2 .....................................65.1 Latvia ...........................................62.5 Angola2 ........................................62.3 Panama .......................................61.6 Guyana2 ......................................59.3 Austria .........................................57.6 Iceland .........................................57.5 Swaziland2 ...................................55.8 Korea, Rep. .................................55.0 Gabon2 ........................................54.9 Denmark ......................................54.6 Suriname .....................................53.5 Macedonia, FYR ..........................53.0 Saudi Arabia ................................52.0 Kyrgyz Republic ...........................51.5 Côte d’Ivoire2...............................51.4 Mauritius ......................................51.0 Switzerland ..................................49.6 Azerbaijan ....................................48.5 Germany ......................................47.8 Zambia2 .......................................47.8 Poland .........................................47.0 Honduras .....................................46.9 Tunisia .........................................46.5 Ukraine ........................................46.5 Serbia ..........................................44.9 Mongolia ......................................44.8 Lesotho2 ......................................43.6 Montenegro .................................43.6 Cyprus .........................................43.5 Sweden .......................................43.5 Moldova .......................................42.8 Botswana2 ...................................42.8 Croatia .........................................42.4 Bolivia ..........................................42.3 Romania ......................................41.9 Portugal .......................................40.9 Finland .........................................40.5 Kazakhstan ..................................39.6 Barbados .....................................39.1 Jordan .........................................38.6 Mozambique ................................38.4 Norway ........................................37.3 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE Chad2 ..........................................37.3 Ghana ..........................................36.7 Cape Verde .................................36.5 Georgia ........................................36.3 Nigeria .........................................35.6 Costa Rica ...................................35.2 Zimbabwe1 ..................................35.1 Israel ............................................34.1 Sierra Leone2 ...............................34.0 Spain ...........................................33.9 Namibia .......................................33.8 Algeria .........................................33.8 Albania.........................................33.7 Morocco ......................................33.3 Bhutan2 .......................................32.8 United Kingdom ...........................32.8 Chile ............................................32.5 Mexico .........................................31.8 Paraguay2 ....................................31.4 South Africa .................................31.3 Malawi2 ........................................30.9 Lao PDR2 ....................................30.8 Greece .........................................30.3 Italy ..............................................30.3 France .........................................29.7 Jamaica .......................................29.4 Canada ........................................29.4 Madagascar2 ...............................28.8 El Salvador...................................28.4 Philippines ...................................28.0 New Zealand ...............................28.0 Russian Federation ......................27.8 Iran, Islamic Rep.2........................27.8 Gambia, The2 ..............................27.7 Mali2 ............................................27.4 Nicaragua ....................................26.6 China ...........................................26.3 Yemen2........................................26.0 Guinea2 .......................................25.9 Dominican Republic .....................25.6 India.............................................24.9 Senegal2 ......................................24.7 Tanzania ......................................24.6 Kenya2 .........................................24.5 Venezuela ....................................23.7 Turkey..........................................23.6 Indonesia .....................................23.6 Tajikistan ......................................23.5 Burkina Faso2 ..............................23.0 Guatemala ...................................23.0 Peru .............................................23.0 Cameroon2 ..................................23.0 Sri Lanka2 ....................................22.1 Bangladesh..................................21.9 Armenia .......................................21.9 Uruguay .......................................21.5 Australia .......................................20.3 Argentina .....................................19.8 Uganda ........................................19.2 Japan ..........................................17.5 Myanmar1 ....................................17.5 Egypt ...........................................17.4 Colombia .....................................16.9 Rwanda2......................................13.4 United States ...............................13.3 Ethiopia2 ......................................12.9 Haiti2............................................12.8 Brazil............................................12.5 Pakistan .......................................11.9 Nepal .............................................9.4 Burundi2 ........................................6.0 Timor-Leste2 ..................................1.0 SOURCES: World Trade Organization, Online Statistics Database (accessed June 18, 2014); International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 1 2011 2 2012 © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 517 2014 World Economic Forum Data Tables Business sophistication 2.2: Data Tables 11.01 Local supplier quantity In your country, how numerous are local suppliers? [1 = largely nonexistent; 7 = extremely numerous] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Japan ............................................6.3 Germany ........................................5.6 United Kingdom .............................5.5 Malta .............................................5.5 Switzerland ....................................5.5 Malaysia.........................................5.5 Taiwan, China ................................5.5 United States .................................5.5 Belgium .........................................5.4 Italy ................................................5.4 United Arab Emirates .....................5.4 Hong Kong SAR ............................5.4 Sri Lanka .......................................5.3 Turkey............................................5.3 Austria ...........................................5.3 Netherlands ...................................5.3 Qatar .............................................5.3 France ...........................................5.2 Kenya ............................................5.2 Lithuania ........................................5.2 Brazil..............................................5.1 Saudi Arabia ..................................5.1 Czech Republic .............................5.1 China .............................................5.1 Thailand .........................................5.0 Spain .............................................5.0 Portugal .........................................5.0 Colombia .......................................5.0 Denmark ........................................5.0 Canada ..........................................5.0 Poland ...........................................5.0 Korea, Rep. ...................................5.0 Guatemala .....................................4.9 Zambia ..........................................4.9 Mauritius ........................................4.9 Jordan ...........................................4.9 Trinidad and Tobago......................4.8 Indonesia .......................................4.8 Australia .........................................4.8 Yemen ...........................................4.8 Vietnam .........................................4.8 El Salvador.....................................4.8 Morocco ........................................4.8 Ireland............................................4.8 Puerto Rico....................................4.8 Nigeria ...........................................4.8 South Africa ...................................4.8 Tajikistan ........................................4.8 Macedonia, FYR ............................4.7 Lebanon ........................................4.7 Peru ...............................................4.7 Slovak Republic .............................4.7 Estonia...........................................4.7 Sweden .........................................4.7 Mexico ...........................................4.7 Bahrain ..........................................4.7 Guyana ..........................................4.7 Libya ..............................................4.7 Uganda ..........................................4.7 Bangladesh....................................4.7 Dominican Republic .......................4.7 Croatia ...........................................4.7 Mali ................................................4.7 Kuwait ...........................................4.7 Greece ...........................................4.7 Pakistan .........................................4.7 Israel ..............................................4.7 Egypt .............................................4.6 Philippines .....................................4.6 Barbados .......................................4.6 Costa Rica .....................................4.6 India...............................................4.6 SOURCE: MEAN 4.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 520 The Global Competitiveness Report 2014–2015 VALUE Slovenia .........................................4.6 New Zealand .................................4.6 Tunisia ...........................................4.6 Norway ..........................................4.6 Cyprus ...........................................4.6 Paraguay .......................................4.6 Armenia .........................................4.5 Ukraine ..........................................4.5 Chile ..............................................4.5 Singapore ......................................4.5 Honduras .......................................4.5 Oman ............................................4.5 Jamaica .........................................4.5 Senegal .........................................4.5 Iran, Islamic Rep. ...........................4.5 Panama .........................................4.5 Gambia, The ..................................4.5 Azerbaijan ......................................4.4 Russian Federation ........................4.4 Malawi ...........................................4.4 Cameroon......................................4.4 Madagascar ...................................4.4 Hungary .........................................4.4 Finland ...........................................4.4 Sierra Leone ..................................4.4 Bulgaria .........................................4.3 Romania ........................................4.3 Suriname .......................................4.3 Lao PDR ........................................4.3 Algeria ...........................................4.3 Kazakhstan ....................................4.2 Côte d’Ivoire ..................................4.2 Burkina Faso..................................4.2 Ghana ............................................4.2 Rwanda .........................................4.2 Latvia .............................................4.2 Nepal .............................................4.2 Serbia ............................................4.1 Mozambique ..................................4.1 Montenegro ...................................4.1 Argentina .......................................4.1 Iceland ...........................................4.1 Tanzania ........................................4.1 Ethiopia..........................................4.1 Kyrgyz Republic .............................4.0 Chad..............................................4.0 Seychelles......................................4.0 Albania...........................................4.0 Luxembourg ..................................4.0 Uruguay .........................................3.9 Moldova .........................................3.9 Cambodia ......................................3.9 Swaziland ......................................3.9 Bhutan ...........................................3.8 Mauritania ......................................3.8 Cape Verde ...................................3.8 Botswana ......................................3.8 Mongolia ........................................3.8 Guinea ...........................................3.8 Namibia .........................................3.7 Zimbabwe ......................................3.7 Bolivia ............................................3.7 Nicaragua ......................................3.6 Lesotho .........................................3.6 Burundi ..........................................3.6 Georgia ..........................................3.6 Haiti ...............................................3.5 Timor-Leste ...................................3.5 Gabon ...........................................3.4 Myanmar........................................3.2 Venezuela ......................................2.6 Angola ...........................................2.4 © 2014 World Economic Forum 1 MEAN 4.5 7 2.2: Data Tables 11.02 Local supplier quality In your country, how would you assess the quality of local suppliers? [1 = extremely poor quality; 7 = extremely high quality] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Japan ............................................6.2 Switzerland ....................................6.1 Austria ...........................................6.0 Germany ........................................6.0 Belgium .........................................5.8 Netherlands ...................................5.7 Denmark ........................................5.6 United States .................................5.6 Finland ...........................................5.5 Sweden .........................................5.5 Taiwan, China ................................5.5 Norway ..........................................5.5 United Kingdom .............................5.5 Canada ..........................................5.5 New Zealand .................................5.5 France ...........................................5.4 Luxembourg ..................................5.4 Hong Kong SAR ............................5.4 Puerto Rico....................................5.4 Qatar .............................................5.4 Australia .........................................5.3 Czech Republic .............................5.3 United Arab Emirates .....................5.3 Malaysia.........................................5.2 Ireland............................................5.2 Italy ................................................5.2 Estonia...........................................5.1 Iceland ...........................................5.1 Singapore ......................................5.1 Portugal .........................................5.0 Korea, Rep. ...................................5.0 Spain .............................................5.0 Sri Lanka .......................................5.0 Lithuania ........................................5.0 Guatemala .....................................5.0 Slovenia .........................................4.9 Latvia .............................................4.9 South Africa ...................................4.9 Cyprus ...........................................4.9 Israel ..............................................4.8 Colombia .......................................4.8 Slovak Republic .............................4.8 Chile ..............................................4.8 Poland ...........................................4.8 Costa Rica .....................................4.7 Mexico ...........................................4.7 Kenya ............................................4.7 Barbados .......................................4.7 Turkey............................................4.7 El Salvador.....................................4.6 Croatia ...........................................4.6 Malta .............................................4.6 Mauritius ........................................4.6 Brazil..............................................4.6 Guyana ..........................................4.6 Bahrain ..........................................4.6 Peru ...............................................4.6 Tajikistan ........................................4.6 Oman ............................................4.5 Saudi Arabia ..................................4.5 Panama .........................................4.5 Thailand .........................................4.5 China .............................................4.5 Jordan ...........................................4.4 Philippines .....................................4.4 Greece ...........................................4.4 Bulgaria .........................................4.4 Hungary .........................................4.4 Honduras .......................................4.4 Morocco ........................................4.4 Macedonia, FYR ............................4.4 Dominican Republic .......................4.4 SOURCE: 1 MEAN 4.4 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.4 7 Jamaica .........................................4.4 Senegal .........................................4.4 Indonesia .......................................4.3 Trinidad and Tobago......................4.3 Gambia, The ..................................4.3 India...............................................4.2 Côte d’Ivoire ..................................4.2 Zambia ..........................................4.2 Uruguay .........................................4.2 Namibia .........................................4.2 Ukraine ..........................................4.2 Mali ................................................4.2 Burkina Faso..................................4.1 Armenia .........................................4.1 Azerbaijan ......................................4.1 Russian Federation ........................4.1 Tunisia ...........................................4.1 Romania ........................................4.1 Montenegro ...................................4.1 Vietnam .........................................4.1 Lebanon ........................................4.1 Pakistan .........................................4.1 Paraguay .......................................4.0 Rwanda .........................................4.0 Albania...........................................4.0 Serbia ............................................4.0 Nigeria ...........................................3.9 Bangladesh....................................3.9 Madagascar ...................................3.9 Swaziland ......................................3.9 Cameroon......................................3.9 Lao PDR ........................................3.9 Kuwait ...........................................3.9 Egypt .............................................3.9 Ghana ............................................3.9 Kazakhstan ....................................3.9 Seychelles......................................3.8 Argentina .......................................3.8 Bolivia ............................................3.8 Tanzania ........................................3.8 Moldova .........................................3.8 Bhutan ...........................................3.8 Kyrgyz Republic .............................3.8 Ethiopia..........................................3.7 Cape Verde ...................................3.7 Suriname .......................................3.7 Malawi ...........................................3.7 Georgia ..........................................3.7 Gabon ...........................................3.7 Sierra Leone ..................................3.7 Mongolia ........................................3.7 Nepal .............................................3.6 Nicaragua ......................................3.6 Zimbabwe ......................................3.5 Cambodia ......................................3.5 Lesotho .........................................3.5 Uganda ..........................................3.5 Botswana ......................................3.5 Mozambique ..................................3.4 Iran, Islamic Rep. ...........................3.4 Haiti ...............................................3.4 Venezuela ......................................3.3 Burundi ..........................................3.3 Algeria ...........................................3.3 Guinea ...........................................3.1 Timor-Leste ...................................3.0 Myanmar........................................3.0 Yemen ...........................................2.9 Mauritania ......................................2.8 Libya ..............................................2.8 Chad..............................................2.7 Angola ...........................................2.2 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 521 2.2: Data Tables 11.03 State of cluster development In your country, how widespread are well-developed and deep clusters (geographic concentrations of firms, suppliers, producers of related products and services, and specialized institutions in a particular field)? [1 = nonexistent; 7 = widespread in many fields] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Italy ................................................5.6 Taiwan, China ................................5.6 Germany ........................................5.5 United Arab Emirates .....................5.5 United States .................................5.4 Switzerland ....................................5.4 Netherlands ...................................5.3 Japan ............................................5.3 Malaysia.........................................5.3 United Kingdom .............................5.2 Qatar .............................................5.2 Singapore ......................................5.1 Finland ...........................................5.1 Norway ..........................................5.1 Hong Kong SAR ............................5.0 Austria ...........................................4.9 Luxembourg ..................................4.9 Ireland............................................4.8 Canada ..........................................4.8 Sweden .........................................4.7 Belgium .........................................4.7 Saudi Arabia ..................................4.7 Puerto Rico....................................4.6 Brazil..............................................4.6 China .............................................4.6 Indonesia .......................................4.5 India...............................................4.5 Israel ..............................................4.5 Jordan ...........................................4.5 El Salvador.....................................4.5 Korea, Rep. ...................................4.3 France ...........................................4.3 Bahrain ..........................................4.3 Denmark ........................................4.3 Mauritius ........................................4.3 Turkey............................................4.3 Lao PDR ........................................4.3 Egypt .............................................4.3 Costa Rica .....................................4.2 Thailand .........................................4.2 Kenya ............................................4.2 Portugal .........................................4.2 Australia .........................................4.2 South Africa ...................................4.2 Mexico ...........................................4.1 Zambia ..........................................4.1 Czech Republic .............................4.1 Honduras .......................................4.1 Malta .............................................4.0 Cyprus ...........................................4.0 Philippines .....................................4.0 Panama .........................................4.0 New Zealand .................................4.0 Oman ............................................4.0 Spain .............................................4.0 Mali ................................................3.9 Guatemala .....................................3.9 Pakistan .........................................3.9 Rwanda .........................................3.9 Iceland ...........................................3.9 Chile ..............................................3.9 Guyana ..........................................3.9 Seychelles......................................3.9 Cambodia ......................................3.9 Lesotho .........................................3.9 Bangladesh....................................3.8 Sri Lanka .......................................3.8 Namibia .........................................3.8 Slovak Republic .............................3.8 Romania ........................................3.8 Morocco ........................................3.8 Nigeria ...........................................3.8 SOURCE: MEAN 3.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 522 The Global Competitiveness Report 2014–2015 VALUE Gambia, The ..................................3.8 Barbados .......................................3.8 Vietnam .........................................3.8 Estonia...........................................3.7 Ghana ............................................3.7 Colombia .......................................3.7 Malawi ...........................................3.7 Dominican Republic .......................3.7 Kuwait ...........................................3.7 Jamaica .........................................3.7 Bhutan ...........................................3.6 Trinidad and Tobago......................3.6 Mozambique ..................................3.5 Uganda ..........................................3.5 Cameroon......................................3.5 Tunisia ...........................................3.5 Lithuania ........................................3.5 Latvia .............................................3.5 Hungary .........................................3.5 Poland ...........................................3.5 Uruguay .........................................3.5 Bolivia ............................................3.5 Macedonia, FYR ............................3.5 Slovenia .........................................3.4 Iran, Islamic Rep. ...........................3.4 Tanzania ........................................3.4 Azerbaijan ......................................3.4 Swaziland ......................................3.4 Cape Verde ...................................3.4 Nepal .............................................3.3 Senegal .........................................3.3 Botswana ......................................3.3 Algeria ...........................................3.3 Tajikistan ........................................3.3 Lebanon ........................................3.3 Peru ...............................................3.3 Côte d’Ivoire ..................................3.3 Nicaragua ......................................3.2 Yemen ...........................................3.2 Georgia ..........................................3.2 Armenia .........................................3.2 Sierra Leone ..................................3.2 Serbia ............................................3.2 Kazakhstan ....................................3.2 Croatia ...........................................3.2 Russian Federation ........................3.1 Argentina .......................................3.1 Suriname .......................................3.1 Paraguay .......................................3.1 Montenegro ...................................3.0 Guinea ...........................................3.0 Timor-Leste ...................................3.0 Greece ...........................................3.0 Albania...........................................3.0 Ethiopia..........................................3.0 Ukraine ..........................................3.0 Bulgaria .........................................3.0 Kyrgyz Republic .............................3.0 Zimbabwe ......................................2.9 Burkina Faso..................................2.9 Madagascar ...................................2.9 Mongolia ........................................2.8 Mauritania ......................................2.8 Chad..............................................2.8 Gabon ...........................................2.8 Burundi ..........................................2.7 Myanmar........................................2.7 Libya ..............................................2.7 Angola ...........................................2.6 Haiti ...............................................2.6 Venezuela ......................................2.4 Moldova .........................................2.4 © 2014 World Economic Forum 1 MEAN 3.8 7 2.2: Data Tables 11.04 Nature of competitive advantage What is the competitive advantage of your country’s companies in international markets based upon? [1 = low-cost labor or natural resources; 7 = unique products and processes] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Japan ............................................6.4 Switzerland ....................................6.4 Denmark ........................................6.2 Finland ...........................................6.1 Belgium .........................................6.0 Italy ................................................6.0 Germany ........................................6.0 Israel ..............................................6.0 United Kingdom .............................6.0 Austria ...........................................6.0 Netherlands ...................................6.0 Singapore ......................................5.7 Luxembourg ..................................5.7 United States .................................5.6 Sweden .........................................5.6 Ireland............................................5.4 Hong Kong SAR ............................5.3 Norway ..........................................5.3 Korea, Rep. ...................................5.3 France ...........................................5.3 Puerto Rico....................................5.2 Taiwan, China ................................5.2 Qatar .............................................4.9 Barbados .......................................4.8 United Arab Emirates .....................4.8 Malaysia.........................................4.8 Seychelles......................................4.7 Australia .........................................4.6 Costa Rica .....................................4.5 Cyprus ...........................................4.4 Panama .........................................4.4 Jordan ...........................................4.3 Thailand .........................................4.2 Malta .............................................4.2 Canada ..........................................4.2 New Zealand .................................4.1 Iceland ...........................................4.1 Slovenia .........................................4.1 Mauritius ........................................4.1 Spain .............................................4.1 Jamaica .........................................4.0 Greece ...........................................4.0 El Salvador.....................................3.9 India...............................................3.9 China .............................................3.9 Czech Republic .............................3.9 Ghana ............................................3.9 Saudi Arabia ..................................3.8 Zambia ..........................................3.8 Bhutan ...........................................3.8 Kenya ............................................3.8 Estonia...........................................3.8 Portugal .........................................3.8 Lebanon ........................................3.8 Sri Lanka .......................................3.7 Croatia ...........................................3.7 Armenia .........................................3.7 Uruguay .........................................3.7 Oman ............................................3.7 Indonesia .......................................3.7 Bahrain ..........................................3.7 South Africa ...................................3.7 Latvia .............................................3.6 Mongolia ........................................3.6 Rwanda .........................................3.6 Namibia .........................................3.5 Tajikistan ........................................3.5 Chile ..............................................3.5 Lithuania ........................................3.5 Gambia, The ..................................3.4 Guatemala .....................................3.4 Guyana ..........................................3.4 SOURCE: 1 MEAN 3.7 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.7 7 Colombia .......................................3.4 Senegal .........................................3.4 Russian Federation ........................3.4 Mexico ...........................................3.4 Philippines .....................................3.4 Mali ................................................3.4 Hungary .........................................3.3 Georgia ..........................................3.3 Honduras .......................................3.3 Swaziland ......................................3.3 Romania ........................................3.3 Kazakhstan ....................................3.3 Bolivia ............................................3.3 Kuwait ...........................................3.3 Lesotho .........................................3.3 Montenegro ...................................3.3 Cape Verde ...................................3.3 Timor-Leste ...................................3.2 Tunisia ...........................................3.2 Botswana ......................................3.2 Pakistan .........................................3.2 Albania...........................................3.2 Turkey............................................3.2 Egypt .............................................3.2 Cameroon......................................3.2 Morocco ........................................3.2 Brazil..............................................3.2 Côte d’Ivoire ..................................3.1 Kyrgyz Republic .............................3.1 Poland ...........................................3.1 Gabon ...........................................3.1 Algeria ...........................................3.1 Azerbaijan ......................................3.1 Peru ...............................................3.1 Ukraine ..........................................3.0 Tanzania ........................................3.0 Suriname .......................................3.0 Iran, Islamic Rep. ...........................3.0 Trinidad and Tobago......................3.0 Lao PDR ........................................3.0 Nepal .............................................3.0 Slovak Republic .............................2.9 Dominican Republic .......................2.9 Mauritania ......................................2.8 Nigeria ...........................................2.8 Argentina .......................................2.8 Bulgaria .........................................2.8 Malawi ...........................................2.8 Uganda ..........................................2.8 Burundi ..........................................2.7 Cambodia ......................................2.7 Madagascar ...................................2.7 Sierra Leone ..................................2.7 Mozambique ..................................2.7 Chad..............................................2.7 Vietnam .........................................2.6 Yemen ...........................................2.6 Haiti ...............................................2.6 Moldova .........................................2.6 Macedonia, FYR ............................2.6 Guinea ...........................................2.6 Libya ..............................................2.6 Angola ...........................................2.6 Nicaragua ......................................2.5 Zimbabwe ......................................2.5 Myanmar........................................2.4 Venezuela ......................................2.4 Ethiopia..........................................2.4 Serbia ............................................2.4 Paraguay .......................................2.3 Bangladesh....................................2.1 Burkina Faso..................................2.0 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 523 2.2: Data Tables 11.05 Value chain breadth In your country, do companies have a narrow or broad presence in the value chain? [1 = narrow, primarily involved in individual steps of the value chain (e.g., resource extraction or production); 7 = broad, present across the entire value chain (e.g.,including production and marketing, distribution, design, etc.)] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Japan ............................................6.1 Germany ........................................5.9 Switzerland ....................................5.9 Austria ...........................................5.5 United States .................................5.4 France ...........................................5.3 Sweden .........................................5.3 Netherlands ...................................5.2 Qatar .............................................5.2 Denmark ........................................5.2 Malaysia.........................................5.2 United Kingdom .............................5.2 United Arab Emirates .....................5.1 Singapore ......................................5.0 Belgium .........................................5.0 Finland ...........................................5.0 Hong Kong SAR ............................5.0 Luxembourg ..................................4.9 Italy ................................................4.9 Ireland............................................4.8 Taiwan, China ................................4.8 Korea, Rep. ...................................4.7 Spain .............................................4.7 Puerto Rico....................................4.7 Norway ..........................................4.6 Mauritius ........................................4.6 Czech Republic .............................4.6 Costa Rica .....................................4.5 Israel ..............................................4.4 Indonesia .......................................4.4 Saudi Arabia ..................................4.4 Malta .............................................4.4 El Salvador.....................................4.4 Panama .........................................4.3 Iceland ...........................................4.3 Kenya ............................................4.3 China .............................................4.3 Thailand .........................................4.3 Cyprus ...........................................4.2 Lithuania ........................................4.2 Mexico ...........................................4.2 Guatemala .....................................4.2 India...............................................4.1 Philippines .....................................4.1 Sri Lanka .......................................4.1 Jordan ...........................................4.1 Canada ..........................................4.0 Cameroon......................................4.0 Chile ..............................................4.0 Portugal .........................................4.0 Bahrain ..........................................4.0 Barbados .......................................4.0 Poland ...........................................4.0 Turkey............................................4.0 Senegal .........................................4.0 Colombia .......................................3.9 New Zealand .................................3.9 Seychelles......................................3.9 Zambia ..........................................3.9 Morocco ........................................3.9 Ghana ............................................3.9 Honduras .......................................3.9 Oman ............................................3.9 Pakistan .........................................3.9 Dominican Republic .......................3.9 Slovak Republic .............................3.9 Guyana ..........................................3.9 South Africa ...................................3.8 Brazil..............................................3.8 Tunisia ...........................................3.8 Rwanda .........................................3.7 Macedonia, FYR ............................3.7 SOURCE: MEAN 3.9 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 524 The Global Competitiveness Report 2014–2015 VALUE Greece ...........................................3.7 Gambia, The ..................................3.7 Azerbaijan ......................................3.7 Jamaica .........................................3.7 Latvia .............................................3.7 Lebanon ........................................3.7 Ukraine ..........................................3.7 Slovenia .........................................3.7 Egypt .............................................3.7 Croatia ...........................................3.7 Montenegro ...................................3.7 Argentina .......................................3.7 Estonia...........................................3.6 Peru ...............................................3.6 Romania ........................................3.6 Uruguay .........................................3.6 Lao PDR ........................................3.6 Trinidad and Tobago......................3.6 Bolivia ............................................3.6 Nigeria ...........................................3.6 Uganda ..........................................3.6 Armenia .........................................3.6 Australia .........................................3.6 Russian Federation ........................3.5 Tajikistan ........................................3.5 Côte d’Ivoire ..................................3.5 Madagascar ...................................3.5 Hungary .........................................3.5 Lesotho .........................................3.5 Tanzania ........................................3.5 Cambodia ......................................3.4 Kuwait ...........................................3.4 Moldova .........................................3.4 Georgia ..........................................3.4 Bangladesh....................................3.3 Swaziland ......................................3.3 Kazakhstan ....................................3.3 Bhutan ...........................................3.3 Mali ................................................3.3 Vietnam .........................................3.3 Bulgaria .........................................3.3 Cape Verde ...................................3.3 Botswana ......................................3.3 Kyrgyz Republic .............................3.3 Namibia .........................................3.2 Nepal .............................................3.2 Malawi ...........................................3.2 Iran, Islamic Rep. ...........................3.2 Mongolia ........................................3.1 Myanmar........................................3.1 Suriname .......................................3.1 Ethiopia..........................................3.1 Chad..............................................3.1 Algeria ...........................................3.1 Yemen ...........................................3.1 Serbia ............................................3.1 Nicaragua ......................................3.1 Mauritania ......................................3.1 Mozambique ..................................3.0 Burkina Faso..................................3.0 Paraguay .......................................3.0 Sierra Leone ..................................3.0 Guinea ...........................................2.9 Burundi ..........................................2.9 Timor-Leste ...................................2.9 Zimbabwe ......................................2.9 Haiti ...............................................2.9 Venezuela ......................................2.9 Gabon ...........................................2.9 Albania...........................................2.7 Libya ..............................................2.7 Angola ...........................................2.6 © 2014 World Economic Forum 1 MEAN 3.9 7 2.2: Data Tables 11.06 Control of international distribution To what extent are international distribution and marketing from your country owned and controlled by domestic companies? [1 = not at all—they take place through foreign companies; 7 = to a great extent—they are primarily owned and controlled by domestic companies] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Japan ............................................5.6 Qatar .............................................5.5 United Arab Emirates .....................5.3 Switzerland ....................................5.3 United States .................................5.3 Germany ........................................5.2 Malaysia.........................................5.2 Iceland ...........................................5.0 Austria ...........................................5.0 Sweden .........................................4.9 Saudi Arabia ..................................4.9 Finland ...........................................4.8 Hong Kong SAR ............................4.8 Bahrain ..........................................4.8 Kuwait ...........................................4.8 Netherlands ...................................4.7 Yemen ...........................................4.7 Mauritius ........................................4.7 United Kingdom .............................4.7 Lebanon ........................................4.7 Oman ............................................4.6 Cyprus ...........................................4.6 Sri Lanka .......................................4.6 France ...........................................4.6 Denmark ........................................4.6 Turkey............................................4.6 Norway ..........................................4.6 Taiwan, China ................................4.5 Korea, Rep. ...................................4.5 El Salvador.....................................4.5 China .............................................4.5 Canada ..........................................4.5 Jordan ...........................................4.5 Lithuania ........................................4.5 South Africa ...................................4.4 Malta .............................................4.4 Italy ................................................4.4 Indonesia .......................................4.4 Guatemala .....................................4.4 Kenya ............................................4.4 Thailand .........................................4.4 Belgium .........................................4.4 Philippines .....................................4.4 Iran, Islamic Rep. ...........................4.4 New Zealand .................................4.3 Puerto Rico....................................4.3 Slovenia .........................................4.3 Chile ..............................................4.3 Latvia .............................................4.3 India...............................................4.2 Spain .............................................4.2 Israel ..............................................4.2 Panama .........................................4.2 Estonia...........................................4.2 Brazil..............................................4.2 Australia .........................................4.1 Singapore ......................................4.1 Trinidad and Tobago......................4.1 Dominican Republic .......................4.1 Costa Rica .....................................4.1 Colombia .......................................4.1 Ethiopia..........................................4.1 Bulgaria .........................................4.1 Luxembourg ..................................4.1 Azerbaijan ......................................4.1 Portugal .........................................4.0 Rwanda .........................................4.0 Tunisia ...........................................4.0 Peru ...............................................4.0 Barbados .......................................4.0 Ghana ............................................4.0 Greece ...........................................4.0 SOURCE: 1 MEAN 4.0 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.0 7 Russian Federation ........................4.0 Guyana ..........................................4.0 Morocco ........................................4.0 Mexico ...........................................4.0 Honduras .......................................4.0 Uruguay .........................................3.9 Ireland............................................3.9 Gambia, The ..................................3.9 Macedonia, FYR ............................3.9 Ukraine ..........................................3.9 Libya ..............................................3.9 Bolivia ............................................3.9 Senegal .........................................3.9 Lao PDR ........................................3.8 Albania...........................................3.8 Pakistan .........................................3.8 Montenegro ...................................3.8 Seychelles......................................3.8 Kazakhstan ....................................3.8 Paraguay .......................................3.8 Zambia ..........................................3.8 Argentina .......................................3.8 Armenia .........................................3.8 Croatia ...........................................3.8 Romania ........................................3.8 Nigeria ...........................................3.8 Georgia ..........................................3.7 Uganda ..........................................3.7 Zimbabwe ......................................3.7 Tajikistan ........................................3.7 Vietnam .........................................3.7 Hungary .........................................3.7 Suriname .......................................3.7 Jamaica .........................................3.7 Mali ................................................3.7 Moldova .........................................3.7 Poland ...........................................3.6 Bhutan ...........................................3.6 Namibia .........................................3.6 Bangladesh....................................3.6 Czech Republic .............................3.5 Swaziland ......................................3.5 Venezuela ......................................3.5 Malawi ...........................................3.5 Kyrgyz Republic .............................3.5 Angola ...........................................3.5 Tanzania ........................................3.5 Haiti ...............................................3.5 Nicaragua ......................................3.4 Serbia ............................................3.4 Slovak Republic .............................3.4 Cambodia ......................................3.4 Cameroon......................................3.4 Côte d’Ivoire ..................................3.4 Algeria ...........................................3.4 Madagascar ...................................3.3 Mozambique ..................................3.3 Cape Verde ...................................3.3 Egypt .............................................3.3 Nepal .............................................3.3 Lesotho .........................................3.2 Botswana ......................................3.2 Burundi ..........................................3.1 Mongolia ........................................3.1 Sierra Leone ..................................3.0 Burkina Faso..................................3.0 Myanmar........................................3.0 Guinea ...........................................3.0 Timor-Leste ...................................3.0 Gabon ...........................................2.9 Mauritania ......................................2.8 Chad..............................................2.7 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 525 2.2: Data Tables 11.07 Production process sophistication In your country, how sophisticated are production processes? [1 = not at all—production uses labor-intensive processes or old technology; 7 = highly—production uses sophisticated and knowledge-intensive processes] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................6.4 Japan ............................................6.4 Finland ...........................................6.2 Germany ........................................6.2 Netherlands ...................................6.1 Norway ..........................................6.1 United States .................................6.1 Sweden .........................................6.0 Belgium .........................................5.9 Puerto Rico....................................5.9 Austria ...........................................5.9 United Kingdom .............................5.7 Ireland............................................5.7 Denmark ........................................5.6 Singapore ......................................5.6 Luxembourg ..................................5.6 France ...........................................5.5 Taiwan, China ................................5.5 Qatar .............................................5.4 Canada ..........................................5.3 Israel ..............................................5.3 Hong Kong SAR ............................5.2 Malaysia.........................................5.2 Iceland ...........................................5.2 Korea, Rep. ...................................5.2 New Zealand .................................5.2 United Arab Emirates .....................5.1 Italy ................................................5.0 Australia .........................................4.9 Czech Republic .............................4.9 Saudi Arabia ..................................4.7 Costa Rica .....................................4.7 Malta .............................................4.7 Spain .............................................4.6 Mauritius ........................................4.5 Turkey............................................4.5 Indonesia .......................................4.5 South Africa ...................................4.5 El Salvador.....................................4.5 Portugal .........................................4.4 Lithuania ........................................4.4 Chile ..............................................4.3 Bahrain ..........................................4.3 Philippines .....................................4.3 Cyprus ...........................................4.3 Oman ............................................4.3 Jordan ...........................................4.3 Brazil..............................................4.2 Slovak Republic .............................4.2 Trinidad and Tobago......................4.2 Thailand .........................................4.2 Panama .........................................4.2 Estonia...........................................4.2 Mexico ...........................................4.1 Kenya ............................................4.1 China .............................................4.1 Poland ...........................................4.1 Barbados .......................................4.1 Slovenia .........................................4.1 Guatemala .....................................4.1 Azerbaijan ......................................4.0 India...............................................4.0 Sri Lanka .......................................4.0 Hungary .........................................3.9 Honduras .......................................3.9 Latvia .............................................3.9 Seychelles......................................3.9 Ghana ............................................3.9 Senegal .........................................3.9 Guyana ..........................................3.8 Albania...........................................3.8 Kazakhstan ....................................3.8 SOURCE: MEAN 4.0 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 526 The Global Competitiveness Report 2014–2015 VALUE Macedonia, FYR ............................3.8 Zambia ..........................................3.8 Argentina .......................................3.7 Greece ...........................................3.7 Colombia .......................................3.7 Uruguay .........................................3.7 Peru ...............................................3.7 Jamaica .........................................3.7 Dominican Republic .......................3.7 Romania ........................................3.7 Namibia .........................................3.7 Lebanon ........................................3.6 Swaziland ......................................3.6 Tajikistan ........................................3.6 Pakistan .........................................3.6 Lao PDR ........................................3.6 Iran, Islamic Rep. ...........................3.6 Bulgaria .........................................3.6 Armenia .........................................3.5 Russian Federation ........................3.5 Cameroon......................................3.5 Cape Verde ...................................3.5 Ukraine ..........................................3.5 Tunisia ...........................................3.5 Croatia ...........................................3.5 Bolivia ............................................3.5 Kuwait ...........................................3.5 Gambia, The ..................................3.4 Mongolia ........................................3.4 Rwanda .........................................3.4 Montenegro ...................................3.4 Côte d’Ivoire ..................................3.4 Morocco ........................................3.4 Nigeria ...........................................3.3 Bangladesh....................................3.3 Gabon ...........................................3.3 Botswana ......................................3.3 Madagascar ...................................3.3 Tanzania ........................................3.2 Cambodia ......................................3.2 Bhutan ...........................................3.2 Georgia ..........................................3.2 Uganda ..........................................3.2 Vietnam .........................................3.2 Paraguay .......................................3.2 Suriname .......................................3.2 Nepal .............................................3.1 Egypt .............................................3.1 Nicaragua ......................................3.1 Moldova .........................................3.1 Mozambique ..................................3.1 Kyrgyz Republic .............................3.1 Lesotho .........................................3.0 Ethiopia..........................................3.0 Malawi ...........................................3.0 Mali ................................................3.0 Venezuela ......................................3.0 Yemen ...........................................2.9 Algeria ...........................................2.8 Sierra Leone ..................................2.8 Serbia ............................................2.8 Mauritania ......................................2.6 Zimbabwe ......................................2.5 Myanmar........................................2.5 Angola ...........................................2.4 Burkina Faso..................................2.4 Haiti ...............................................2.4 Burundi ..........................................2.4 Timor-Leste ...................................2.4 Libya ..............................................2.3 Chad..............................................2.3 Guinea ...........................................2.3 © 2014 World Economic Forum 1 MEAN 4.0 7 2.2: Data Tables 11.08 Extent of marketing In your country, to what extent do companies use sophisticated marketing tools and techniques? [1 = not at all; 7 = to a great extent] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE United States .................................6.2 United Kingdom .............................6.1 Puerto Rico....................................6.0 Netherlands ...................................5.9 Switzerland ....................................5.9 Sweden .........................................5.7 Germany ........................................5.6 Japan ............................................5.6 United Arab Emirates .....................5.6 Norway ..........................................5.6 Austria ...........................................5.5 Hong Kong SAR ............................5.5 Belgium .........................................5.5 Qatar .............................................5.5 France ...........................................5.5 Australia .........................................5.4 Malaysia.........................................5.3 Canada ..........................................5.3 Singapore ......................................5.3 Ireland............................................5.3 Luxembourg ..................................5.3 Taiwan, China ................................5.2 New Zealand .................................5.2 South Africa ...................................5.2 Sri Lanka .......................................5.1 Finland ...........................................5.1 Denmark ........................................5.1 Iceland ...........................................5.0 Israel ..............................................5.0 Brazil..............................................4.9 Indonesia .......................................4.9 Cyprus ...........................................4.9 El Salvador.....................................4.8 Korea, Rep. ...................................4.8 Czech Republic .............................4.8 Chile ..............................................4.8 Lithuania ........................................4.8 Bahrain ..........................................4.7 Spain .............................................4.7 Saudi Arabia ..................................4.7 Philippines .....................................4.7 Turkey............................................4.6 Thailand .........................................4.6 Panama .........................................4.6 Guatemala .....................................4.6 Costa Rica .....................................4.6 Slovak Republic .............................4.6 Mauritius ........................................4.6 Portugal .........................................4.5 Poland ...........................................4.5 Malta .............................................4.5 China .............................................4.5 Lebanon ........................................4.4 Estonia...........................................4.4 Jordan ...........................................4.4 Barbados .......................................4.4 Latvia .............................................4.4 Dominican Republic .......................4.4 Kenya ............................................4.4 Argentina .......................................4.3 Mexico ...........................................4.3 Peru ...............................................4.3 Italy ................................................4.3 Russian Federation ........................4.3 Kazakhstan ....................................4.3 Azerbaijan ......................................4.3 Jamaica .........................................4.2 Mongolia ........................................4.2 Greece ...........................................4.2 Trinidad and Tobago......................4.2 Honduras .......................................4.2 Hungary .........................................4.2 SOURCE: 1 MEAN 4.2 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.2 7 Senegal .........................................4.1 Pakistan .........................................4.1 Zambia ..........................................4.1 Slovenia .........................................4.1 Nigeria ...........................................4.1 Macedonia, FYR ............................4.1 Ukraine ..........................................4.1 Montenegro ...................................4.1 India...............................................4.1 Lao PDR ........................................4.0 Romania ........................................4.0 Uruguay .........................................4.0 Colombia .......................................4.0 Albania...........................................4.0 Cambodia ......................................4.0 Oman ............................................4.0 Côte d’Ivoire ..................................4.0 Kuwait ...........................................4.0 Ghana ............................................4.0 Seychelles......................................3.9 Kyrgyz Republic .............................3.9 Croatia ...........................................3.9 Gambia, The ..................................3.9 Namibia .........................................3.9 Guyana ..........................................3.9 Cameroon......................................3.8 Moldova .........................................3.8 Tajikistan ........................................3.8 Tunisia ...........................................3.8 Bulgaria .........................................3.8 Morocco ........................................3.8 Georgia ..........................................3.7 Paraguay .......................................3.7 Mozambique ..................................3.7 Bolivia ............................................3.7 Cape Verde ...................................3.7 Armenia .........................................3.7 Botswana ......................................3.6 Swaziland ......................................3.6 Mali ................................................3.5 Bangladesh....................................3.5 Vietnam .........................................3.5 Nicaragua ......................................3.5 Iran, Islamic Rep. ...........................3.5 Tanzania ........................................3.5 Egypt .............................................3.5 Uganda ..........................................3.4 Venezuela ......................................3.4 Nepal .............................................3.4 Malawi ...........................................3.4 Madagascar ...................................3.4 Zimbabwe ......................................3.4 Rwanda .........................................3.3 Lesotho .........................................3.3 Suriname .......................................3.3 Gabon ...........................................3.3 Burkina Faso..................................3.1 Bhutan ...........................................3.1 Serbia ............................................3.1 Ethiopia..........................................3.1 Myanmar........................................3.0 Sierra Leone ..................................3.0 Angola ...........................................2.9 Yemen ...........................................2.9 Haiti ...............................................2.9 Mauritania ......................................2.9 Algeria ...........................................2.8 Guinea ...........................................2.7 Timor-Leste ...................................2.6 Burundi ..........................................2.6 Libya ..............................................2.5 Chad..............................................2.5 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 527 2.2: Data Tables 11.09 Willingness to delegate authority In your country, how do you assess the willingness to delegate authority to subordinates? [1 = not willing at all—senior management takes all important decisions; 7 = very willing—authority is mostly delegated to business unit heads and other lower-level managers] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Denmark ........................................6.1 Norway ..........................................6.0 Netherlands ...................................5.7 Sweden .........................................5.6 Finland ...........................................5.6 New Zealand .................................5.5 Qatar .............................................5.3 Switzerland ....................................5.3 United States .................................5.2 Malaysia.........................................5.2 Canada ..........................................5.1 Belgium .........................................5.1 United Arab Emirates .....................5.0 Luxembourg ..................................5.0 Iceland ...........................................5.0 United Kingdom .............................5.0 Australia .........................................4.9 Ireland............................................4.9 Germany ........................................4.9 Puerto Rico....................................4.8 Japan ............................................4.7 Singapore ......................................4.7 Austria ...........................................4.7 Philippines .....................................4.7 Estonia...........................................4.5 Hong Kong SAR ............................4.5 South Africa ...................................4.5 Indonesia .......................................4.5 Costa Rica .....................................4.4 Saudi Arabia ..................................4.4 Jordan ...........................................4.4 Taiwan, China ................................4.3 Israel ..............................................4.2 Lao PDR ........................................4.2 Egypt .............................................4.2 Thailand .........................................4.2 Oman ............................................4.2 Kenya ............................................4.1 Kuwait ...........................................4.1 Brazil..............................................4.1 El Salvador.....................................4.1 Czech Republic .............................4.1 Mauritius ........................................4.1 Guatemala .....................................4.0 Latvia .............................................4.0 Cyprus ...........................................4.0 Bahrain ..........................................4.0 Zambia ..........................................4.0 China .............................................3.9 Gambia, The ..................................3.9 Tajikistan ........................................3.9 France ...........................................3.9 Slovenia .........................................3.9 Colombia .......................................3.9 Kazakhstan ....................................3.9 Malta .............................................3.9 India...............................................3.9 Ghana ............................................3.9 Barbados .......................................3.8 Yemen ...........................................3.8 Sri Lanka .......................................3.8 Poland ...........................................3.8 Swaziland ......................................3.8 Korea, Rep. ...................................3.8 Rwanda .........................................3.8 Peru ...............................................3.8 Lithuania ........................................3.8 Mexico ...........................................3.8 Albania...........................................3.8 Guyana ..........................................3.7 Seychelles......................................3.7 Honduras .......................................3.7 SOURCE: MEAN 3.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 528 The Global Competitiveness Report 2014–2015 VALUE Chile ..............................................3.7 Panama .........................................3.7 Montenegro ...................................3.7 Dominican Republic .......................3.7 Jamaica .........................................3.6 Namibia .........................................3.6 Azerbaijan ......................................3.6 Portugal .........................................3.6 Russian Federation ........................3.6 Romania ........................................3.6 Madagascar ...................................3.6 Morocco ........................................3.6 Bhutan ...........................................3.6 Côte d’Ivoire ..................................3.6 Malawi ...........................................3.6 Turkey............................................3.6 Senegal .........................................3.6 Nigeria ...........................................3.6 Zimbabwe ......................................3.6 Greece ...........................................3.6 Bolivia ............................................3.5 Slovak Republic .............................3.5 Argentina .......................................3.5 Spain .............................................3.5 Trinidad and Tobago......................3.5 Croatia ...........................................3.4 Botswana ......................................3.4 Moldova .........................................3.4 Nicaragua ......................................3.4 Uruguay .........................................3.4 Tunisia ...........................................3.4 Cambodia ......................................3.4 Tanzania ........................................3.4 Armenia .........................................3.4 Kyrgyz Republic .............................3.4 Cameroon......................................3.4 Ethiopia..........................................3.4 Cape Verde ...................................3.3 Sierra Leone ..................................3.3 Vietnam .........................................3.3 Macedonia, FYR ............................3.3 Mali ................................................3.3 Pakistan .........................................3.3 Mongolia ........................................3.3 Venezuela ......................................3.3 Georgia ..........................................3.2 Mozambique ..................................3.2 Bulgaria .........................................3.2 Lebanon ........................................3.2 Gabon ...........................................3.2 Ukraine ..........................................3.2 Uganda ..........................................3.1 Algeria ...........................................3.1 Myanmar........................................3.1 Italy ................................................3.1 Libya ..............................................3.1 Lesotho .........................................3.0 Timor-Leste ...................................3.0 Suriname .......................................3.0 Paraguay .......................................3.0 Hungary .........................................3.0 Iran, Islamic Rep. ...........................2.9 Nepal .............................................2.9 Serbia ............................................2.9 Burundi ..........................................2.8 Bangladesh....................................2.6 Haiti ...............................................2.6 Chad..............................................2.4 Mauritania ......................................2.4 Angola ...........................................2.4 Guinea ...........................................2.3 Burkina Faso..................................2.1 © 2014 World Economic Forum 1 MEAN 3.8 7 Data Tables Innovation 2014 World Economic Forum 2.2: Data Tables 12.01 Capacity for innovation In your country, to what extent do companies have the capacity to innovate? [1 = not at all; 7 = to a great extent] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................5.9 United States .................................5.9 Israel ..............................................5.8 Germany ........................................5.6 Finland ...........................................5.6 Sweden .........................................5.5 Japan ............................................5.4 Denmark ........................................5.3 Luxembourg ..................................5.3 United Kingdom .............................5.3 Netherlands ...................................5.2 Qatar .............................................5.2 Malaysia.........................................5.2 Belgium .........................................5.2 New Zealand .................................5.1 Norway ..........................................5.0 Ireland............................................5.0 Singapore ......................................5.0 Austria ...........................................5.0 Puerto Rico....................................4.9 France ...........................................4.8 Indonesia .......................................4.8 Taiwan, China ................................4.8 Korea, Rep. ...................................4.7 United Arab Emirates .....................4.7 Canada ..........................................4.6 Australia .........................................4.6 Czech Republic .............................4.6 Sri Lanka .......................................4.6 Philippines .....................................4.5 Estonia...........................................4.5 Hong Kong SAR ............................4.5 Kenya ............................................4.5 El Salvador.....................................4.4 South Africa ...................................4.3 Costa Rica .....................................4.3 Portugal .........................................4.3 Lithuania ........................................4.3 Italy ................................................4.3 China .............................................4.2 Guatemala .....................................4.2 Panama .........................................4.2 Azerbaijan ......................................4.1 Brazil..............................................4.1 Zambia ..........................................4.1 Iceland ...........................................4.0 Malta .............................................4.0 India...............................................4.0 Ghana ............................................4.0 Mauritius ........................................4.0 Pakistan .........................................4.0 Honduras .......................................4.0 Jamaica .........................................4.0 Lebanon ........................................4.0 Saudi Arabia ..................................4.0 Senegal .........................................3.9 Barbados .......................................3.9 Jordan ...........................................3.9 Seychelles......................................3.9 Spain .............................................3.8 Guyana ..........................................3.8 Tajikistan ........................................3.8 Cyprus ...........................................3.8 Cameroon......................................3.8 Bahrain ..........................................3.8 Russian Federation ........................3.8 Poland ...........................................3.8 Romania ........................................3.7 Kazakhstan ....................................3.7 Thailand .........................................3.7 Lao PDR ........................................3.7 Mexico ...........................................3.7 SOURCE: MEAN 3.9 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 530 The Global Competitiveness Report 2014–2015 VALUE Nigeria ...........................................3.7 Dominican Republic .......................3.7 Slovenia .........................................3.7 Chile ..............................................3.7 Turkey............................................3.7 Gambia, The ..................................3.7 Namibia .........................................3.7 Argentina .......................................3.7 Latvia .............................................3.6 Ukraine ..........................................3.6 Madagascar ...................................3.6 Montenegro ...................................3.6 Colombia .......................................3.5 Rwanda .........................................3.5 Uruguay .........................................3.5 Côte d’Ivoire ..................................3.5 Slovak Republic .............................3.5 Uganda ..........................................3.5 Macedonia, FYR ............................3.5 Bolivia ............................................3.5 Swaziland ......................................3.5 Iran, Islamic Rep. ...........................3.5 Vietnam .........................................3.5 Bhutan ...........................................3.5 Cape Verde ...................................3.5 Armenia .........................................3.5 Burkina Faso..................................3.4 Peru ...............................................3.4 Cambodia ......................................3.4 Tanzania ........................................3.4 Oman ............................................3.4 Mongolia ........................................3.3 Trinidad and Tobago......................3.3 Botswana ......................................3.3 Tunisia ...........................................3.3 Bulgaria .........................................3.3 Greece ...........................................3.3 Georgia ..........................................3.3 Kyrgyz Republic .............................3.3 Mali ................................................3.3 Bangladesh....................................3.2 Mozambique ..................................3.2 Albania...........................................3.2 Malawi ...........................................3.2 Sierra Leone ..................................3.2 Morocco ........................................3.2 Nicaragua ......................................3.2 Paraguay .......................................3.1 Zimbabwe ......................................3.1 Lesotho .........................................3.1 Nepal .............................................3.1 Croatia ...........................................3.1 Suriname .......................................3.1 Gabon ...........................................3.1 Hungary .........................................3.0 Moldova .........................................3.0 Kuwait ...........................................3.0 Serbia ............................................3.0 Mauritania ......................................2.9 Egypt .............................................2.9 Timor-Leste ...................................2.9 Ethiopia..........................................2.9 Yemen ...........................................2.9 Haiti ...............................................2.9 Myanmar........................................2.9 Venezuela ......................................2.8 Chad..............................................2.8 Burundi ..........................................2.8 Guinea ...........................................2.7 Angola ...........................................2.7 Algeria ...........................................2.7 Libya ..............................................2.5 © 2014 World Economic Forum 1 MEAN 3.9 7 2.2: Data Tables 12.02 Quality of scientific research institutions In your country, how would you assess the quality of scientific research institutions? [1 = extremely poor—among the worst in the world; 7 = extremely good—among the best in the world] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Switzerland ....................................6.4 United Kingdom .............................6.3 Israel ..............................................6.3 United States .................................6.1 Belgium .........................................6.1 Netherlands ...................................5.9 Japan ............................................5.8 Germany ........................................5.8 Australia .........................................5.8 Finland ...........................................5.7 Singapore ......................................5.6 France ...........................................5.6 Ireland............................................5.5 Sweden .........................................5.5 Canada ..........................................5.5 Qatar .............................................5.4 Denmark ........................................5.4 Portugal .........................................5.4 New Zealand .................................5.3 Malaysia.........................................5.2 Norway ..........................................5.2 Taiwan, China ................................5.2 Hungary .........................................5.1 Austria ...........................................5.0 Estonia...........................................5.0 Luxembourg ..................................5.0 Korea, Rep. ...................................5.0 Lithuania ........................................4.8 Iceland ...........................................4.8 United Arab Emirates .....................4.8 Costa Rica .....................................4.8 Hong Kong SAR ............................4.8 Slovenia .........................................4.7 South Africa ...................................4.7 Puerto Rico....................................4.7 Czech Republic .............................4.5 Spain .............................................4.5 Italy ................................................4.5 China .............................................4.3 Cyprus ...........................................4.3 Indonesia .......................................4.3 Kenya ............................................4.2 Latvia .............................................4.2 Saudi Arabia ..................................4.2 Iran, Islamic Rep. ...........................4.1 Panama .........................................4.1 Sri Lanka .......................................4.1 Argentina .......................................4.1 Jamaica .........................................4.1 Brazil..............................................4.0 Chile ..............................................4.0 India...............................................4.0 Croatia ...........................................4.0 Barbados .......................................4.0 Romania ........................................4.0 Russian Federation ........................4.0 Jordan ...........................................3.9 Mexico ...........................................3.9 Malta .............................................3.9 Montenegro ...................................3.9 Thailand .........................................3.9 Côte d’Ivoire ..................................3.9 Poland ...........................................3.9 Turkey............................................3.9 Slovak Republic .............................3.9 Senegal .........................................3.9 Ukraine ..........................................3.8 Guyana ..........................................3.8 Serbia ............................................3.7 Greece ...........................................3.7 Macedonia, FYR ............................3.7 Rwanda .........................................3.7 SOURCE: 1 MEAN 3.8 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.8 7 Ghana ............................................3.7 Uruguay .........................................3.7 Philippines .....................................3.6 Seychelles......................................3.6 El Salvador.....................................3.6 Uganda ..........................................3.6 Mali ................................................3.6 Tanzania ........................................3.6 Bulgaria .........................................3.5 Colombia .......................................3.5 Cameroon......................................3.5 Namibia .........................................3.5 Morocco ........................................3.5 Lao PDR ........................................3.5 Azerbaijan ......................................3.4 Tajikistan ........................................3.4 Zambia ..........................................3.4 Burkina Faso..................................3.4 Mauritius ........................................3.4 Oman ............................................3.4 Trinidad and Tobago......................3.4 Pakistan .........................................3.4 Gambia, The ..................................3.3 Vietnam .........................................3.3 Honduras .......................................3.3 Gabon ...........................................3.2 Kazakhstan ....................................3.2 Botswana ......................................3.2 Bolivia ............................................3.2 Bahrain ..........................................3.2 Kuwait ...........................................3.2 Madagascar ...................................3.2 Armenia .........................................3.1 Ethiopia..........................................3.1 Mongolia ........................................3.1 Cape Verde ...................................3.1 Tunisia ...........................................3.1 Malawi ...........................................3.1 Guatemala .....................................3.0 Zimbabwe ......................................3.0 Dominican Republic .......................2.9 Lesotho .........................................2.9 Mozambique ..................................2.9 Swaziland ......................................2.9 Peru ...............................................2.9 Cambodia ......................................2.9 Georgia ..........................................2.8 Nigeria ...........................................2.8 Moldova .........................................2.7 Bangladesh....................................2.7 Nicaragua ......................................2.7 Mauritania ......................................2.7 Bhutan ...........................................2.7 Suriname .......................................2.6 Algeria ...........................................2.6 Lebanon ........................................2.6 Kyrgyz Republic .............................2.6 Albania...........................................2.6 Nepal .............................................2.6 Venezuela ......................................2.5 Sierra Leone ..................................2.5 Burundi ..........................................2.4 Egypt .............................................2.4 Myanmar........................................2.3 Guinea ...........................................2.3 Timor-Leste ...................................2.3 Chad..............................................2.2 Haiti ...............................................2.2 Paraguay .......................................2.2 Angola ...........................................1.9 Libya ..............................................1.7 Yemen ...........................................1.7 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 531 2.2: Data Tables 12.03 Company spending on R&D In your country, to what extent do companies spend on research and development (R&D)? [1 = do not spend on R&D; 7 = spend heavily on R&D] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Switzerland ....................................5.9 Japan ............................................5.8 Finland ...........................................5.7 United States .................................5.5 Germany ........................................5.5 Sweden .........................................5.4 Israel ..............................................5.3 Qatar .............................................5.0 Malaysia.........................................4.9 Singapore ......................................4.8 Belgium .........................................4.8 Austria ...........................................4.8 Denmark ........................................4.8 United Kingdom .............................4.8 France ...........................................4.7 Luxembourg ..................................4.7 Netherlands ...................................4.7 Taiwan, China ................................4.6 Ireland............................................4.6 Korea, Rep. ...................................4.5 Norway ..........................................4.5 United Arab Emirates .....................4.3 China .............................................4.3 Indonesia .......................................4.0 El Salvador.....................................4.0 Hong Kong SAR ............................3.9 Canada ..........................................3.9 Kenya ............................................3.8 New Zealand .................................3.8 India...............................................3.8 Czech Republic .............................3.7 Iceland ...........................................3.7 Guyana ..........................................3.7 Panama .........................................3.7 Italy ................................................3.6 Estonia...........................................3.6 Saudi Arabia ..................................3.6 Portugal .........................................3.6 Australia .........................................3.6 Costa Rica .....................................3.6 Bolivia ............................................3.5 Philippines .....................................3.5 Brazil..............................................3.5 Ghana ............................................3.5 Jordan ...........................................3.5 Cyprus ...........................................3.5 Puerto Rico....................................3.5 South Africa ...................................3.4 Zambia ..........................................3.4 Sri Lanka .......................................3.3 Lao PDR ........................................3.3 Spain .............................................3.3 Cameroon......................................3.3 Mauritius ........................................3.3 Malta .............................................3.3 Thailand .........................................3.2 Côte d’Ivoire ..................................3.2 Senegal .........................................3.2 Honduras .......................................3.2 Azerbaijan ......................................3.2 Montenegro ...................................3.2 Russian Federation ........................3.2 Vietnam .........................................3.2 Seychelles......................................3.1 Romania ........................................3.1 Ukraine ..........................................3.1 Macedonia, FYR ............................3.1 Kazakhstan ....................................3.1 Namibia .........................................3.1 Lithuania ........................................3.1 Mexico ...........................................3.1 Slovenia .........................................3.1 SOURCE: MEAN 3.3 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 532 The Global Competitiveness Report 2014–2015 VALUE Albania...........................................3.1 Latvia .............................................3.1 Croatia ...........................................3.1 Guatemala .....................................3.1 Chile ..............................................3.1 Slovak Republic .............................3.1 Cambodia ......................................3.1 Mongolia ........................................3.0 Uruguay .........................................3.0 Barbados .......................................3.0 Jamaica .........................................3.0 Colombia .......................................3.0 Bahrain ..........................................3.0 Tanzania ........................................3.0 Oman ............................................3.0 Madagascar ...................................2.9 Turkey............................................2.9 Gambia, The ..................................2.9 Bhutan ...........................................2.9 Lesotho .........................................2.9 Pakistan .........................................2.9 Rwanda .........................................2.9 Tunisia ...........................................2.9 Hungary .........................................2.9 Uganda ..........................................2.9 Poland ...........................................2.8 Mali ................................................2.8 Bulgaria .........................................2.8 Tajikistan ........................................2.8 Armenia .........................................2.8 Argentina .......................................2.8 Swaziland ......................................2.8 Malawi ...........................................2.8 Nigeria ...........................................2.8 Cape Verde ...................................2.8 Dominican Republic .......................2.8 Mauritania ......................................2.7 Iran, Islamic Rep. ...........................2.7 Suriname .......................................2.6 Morocco ........................................2.6 Mozambique ..................................2.6 Greece ...........................................2.6 Nicaragua ......................................2.6 Nepal .............................................2.6 Trinidad and Tobago......................2.6 Botswana ......................................2.6 Peru ...............................................2.6 Kuwait ...........................................2.6 Paraguay .......................................2.6 Ethiopia..........................................2.6 Venezuela ......................................2.5 Sierra Leone ..................................2.5 Serbia ............................................2.5 Georgia ..........................................2.4 Lebanon ........................................2.3 Burkina Faso..................................2.3 Zimbabwe ......................................2.3 Timor-Leste ...................................2.3 Kyrgyz Republic .............................2.3 Gabon ...........................................2.3 Egypt .............................................2.3 Bangladesh....................................2.3 Moldova .........................................2.3 Chad..............................................2.2 Burundi ..........................................2.2 Algeria ...........................................2.2 Haiti ...............................................2.2 Myanmar........................................2.2 Angola ...........................................2.1 Guinea ...........................................2.0 Yemen ...........................................2.0 Libya ..............................................1.8 © 2014 World Economic Forum 1 MEAN 3.3 7 2.2: Data Tables 12.04 University-industry collaboration in R&D In your country, to what extent do business and universities collaborate on research and development (R&D)? [1 = do not collaborate at all; 7 = collaborate extensively] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Finland ...........................................6.0 United States .................................5.8 Switzerland ....................................5.8 United Kingdom .............................5.7 Singapore ......................................5.6 Belgium .........................................5.6 Israel ..............................................5.5 Qatar .............................................5.4 Netherlands ...................................5.4 Germany ........................................5.3 Sweden .........................................5.3 Malaysia.........................................5.3 Ireland............................................5.2 Taiwan, China ................................5.1 Norway ..........................................5.0 Japan ............................................5.0 New Zealand .................................4.9 Luxembourg ..................................4.9 Canada ..........................................4.9 Denmark ........................................4.9 Australia .........................................4.8 United Arab Emirates .....................4.7 Portugal .........................................4.7 Austria ...........................................4.7 Iceland ...........................................4.6 Korea, Rep. ...................................4.6 Lithuania ........................................4.6 Hong Kong SAR ............................4.6 France ...........................................4.6 Indonesia .......................................4.5 South Africa ...................................4.5 China .............................................4.4 Costa Rica .....................................4.4 Estonia...........................................4.4 Hungary .........................................4.3 Puerto Rico....................................4.2 Kenya ............................................4.2 Saudi Arabia ..................................4.2 Chile ..............................................4.2 Cyprus ...........................................4.2 Panama .........................................4.0 Czech Republic .............................4.0 Barbados .......................................4.0 Mexico ...........................................4.0 Slovenia .........................................4.0 Thailand .........................................4.0 Montenegro ...................................3.9 Honduras .......................................3.9 Colombia .......................................3.9 India...............................................3.9 Malta .............................................3.9 Jordan ...........................................3.8 El Salvador.....................................3.8 Brazil..............................................3.8 Philippines .....................................3.8 Jamaica .........................................3.8 Spain .............................................3.8 Guyana ..........................................3.8 Italy ................................................3.7 Macedonia, FYR ............................3.7 Turkey............................................3.7 Uganda ..........................................3.7 Latvia .............................................3.7 Rwanda .........................................3.7 Senegal .........................................3.6 Argentina .......................................3.6 Russian Federation ........................3.6 Guatemala .....................................3.6 Oman ............................................3.6 Uruguay .........................................3.6 Romania ........................................3.6 Bolivia ............................................3.5 SOURCE: 1 MEAN 3.7 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 3.7 7 Poland ...........................................3.5 Ukraine ..........................................3.5 Zambia ..........................................3.5 Lao PDR ........................................3.5 Ghana ............................................3.5 Ethiopia..........................................3.5 Namibia .........................................3.5 Seychelles......................................3.4 Croatia ...........................................3.4 Cameroon......................................3.4 Tanzania ........................................3.4 Slovak Republic .............................3.4 Swaziland ......................................3.3 Côte d’Ivoire ..................................3.3 Gambia, The ..................................3.3 Kazakhstan ....................................3.3 Mozambique ..................................3.3 Bahrain ..........................................3.3 Tajikistan ........................................3.3 Vietnam .........................................3.3 Madagascar ...................................3.3 Dominican Republic .......................3.3 Serbia ............................................3.2 Morocco ........................................3.2 Cape Verde ...................................3.2 Pakistan .........................................3.2 Lesotho .........................................3.2 Mali ................................................3.2 Mauritius ........................................3.2 Iran, Islamic Rep. ...........................3.2 Burkina Faso..................................3.2 Azerbaijan ......................................3.2 Botswana ......................................3.1 Trinidad and Tobago......................3.1 Venezuela ......................................3.1 Kuwait ...........................................3.1 Peru ...............................................3.1 Sri Lanka .......................................3.1 Greece ...........................................3.1 Armenia .........................................3.1 Bulgaria .........................................3.0 Mongolia ........................................3.0 Cambodia ......................................3.0 Nicaragua ......................................3.0 Tunisia ...........................................2.9 Lebanon ........................................2.9 Suriname .......................................2.9 Malawi ...........................................2.8 Zimbabwe ......................................2.8 Burundi ..........................................2.8 Nigeria ...........................................2.8 Moldova .........................................2.7 Paraguay .......................................2.7 Bhutan ...........................................2.7 Nepal .............................................2.6 Georgia ..........................................2.6 Gabon ...........................................2.6 Timor-Leste ...................................2.6 Kyrgyz Republic .............................2.6 Bangladesh....................................2.6 Egypt .............................................2.4 Sierra Leone ..................................2.4 Albania...........................................2.3 Haiti ...............................................2.3 Algeria ...........................................2.3 Myanmar........................................2.2 Chad..............................................2.2 Guinea ...........................................2.2 Mauritania ......................................2.0 Angola ...........................................2.0 Yemen ...........................................2.0 Libya ..............................................1.7 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 533 2.2: Data Tables 12.05 Government procurement of advanced technology products In your country, to what extent do government purchasing decisions foster innovation? [1 = not at all; 7 = to a great extent] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE 1 Qatar .............................................5.7 United Arab Emirates .....................5.4 Malaysia.........................................5.2 Singapore ......................................5.1 Rwanda .........................................4.8 Luxembourg ..................................4.6 Saudi Arabia ..................................4.6 United States .................................4.4 Israel ..............................................4.3 China .............................................4.3 Panama .........................................4.3 Oman ............................................4.2 Indonesia .......................................4.2 Norway ..........................................4.2 Estonia...........................................4.2 Germany ........................................4.2 Turkey............................................4.2 Azerbaijan ......................................4.2 Malta .............................................4.2 Korea, Rep. ...................................4.1 Japan ............................................4.1 Finland ...........................................4.1 Bahrain ..........................................4.1 Taiwan, China ................................4.1 Zambia ..........................................4.0 Sweden .........................................4.0 Senegal .........................................4.0 Netherlands ...................................4.0 El Salvador.....................................4.0 Hong Kong SAR ............................4.0 Switzerland ....................................4.0 Gambia, The ..................................3.9 Tajikistan ........................................3.9 Vietnam .........................................3.9 Jordan ...........................................3.9 Cape Verde ...................................3.9 Sri Lanka .......................................3.8 Côte d’Ivoire ..................................3.8 Guyana ..........................................3.8 Chile ..............................................3.8 Cameroon......................................3.8 Portugal .........................................3.8 France ...........................................3.8 United Kingdom .............................3.7 Botswana ......................................3.7 Seychelles......................................3.7 Bhutan ...........................................3.7 Canada ..........................................3.7 Kenya ............................................3.7 Colombia .......................................3.7 Lao PDR ........................................3.7 Ethiopia..........................................3.7 Philippines .....................................3.7 Austria ...........................................3.7 Cyprus ...........................................3.7 Macedonia, FYR ............................3.6 Montenegro ...................................3.6 Mali ................................................3.6 Dominican Republic .......................3.6 Iceland ...........................................3.6 India...............................................3.5 Ireland............................................3.5 Belgium .........................................3.5 Bolivia ............................................3.5 Ghana ............................................3.5 Mauritius ........................................3.5 Costa Rica .....................................3.5 Honduras .......................................3.5 Georgia ..........................................3.5 Albania...........................................3.5 New Zealand .................................3.4 Uganda ..........................................3.4 SOURCE: MEAN 3.5 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 534 The Global Competitiveness Report 2014–2015 VALUE Australia .........................................3.4 Kazakhstan ....................................3.4 Romania ........................................3.4 Mexico ...........................................3.4 Brazil..............................................3.4 Morocco ........................................3.4 Uruguay .........................................3.4 Denmark ........................................3.3 Russian Federation ........................3.3 Namibia .........................................3.3 Madagascar ...................................3.3 Tanzania ........................................3.3 Gabon ...........................................3.3 Mozambique ..................................3.3 Swaziland ......................................3.3 Barbados .......................................3.2 Poland ...........................................3.2 Timor-Leste ...................................3.2 Iran, Islamic Rep. ...........................3.2 Latvia .............................................3.2 Mongolia ........................................3.2 Sierra Leone ..................................3.2 Hungary .........................................3.2 Burkina Faso..................................3.2 Bulgaria .........................................3.2 Pakistan .........................................3.1 Algeria ...........................................3.1 Puerto Rico....................................3.1 Lithuania ........................................3.1 Spain .............................................3.1 Tunisia ...........................................3.1 Cambodia ......................................3.1 Peru ...............................................3.0 Lesotho .........................................3.0 Czech Republic .............................3.0 Slovenia .........................................3.0 Nigeria ...........................................3.0 Malawi ...........................................3.0 Guatemala .....................................3.0 South Africa ...................................3.0 Egypt .............................................3.0 Thailand .........................................2.9 Jamaica .........................................2.9 Suriname .......................................2.9 Slovak Republic .............................2.9 Trinidad and Tobago......................2.9 Kuwait ...........................................2.9 Nicaragua ......................................2.9 Armenia .........................................2.9 Serbia ............................................2.9 Ukraine ..........................................2.9 Paraguay .......................................2.9 Nepal .............................................2.8 Mauritania ......................................2.8 Moldova .........................................2.7 Burundi ..........................................2.7 Croatia ...........................................2.7 Italy ................................................2.6 Guinea ...........................................2.6 Haiti ...............................................2.6 Chad..............................................2.6 Kyrgyz Republic .............................2.6 Angola ...........................................2.6 Greece ...........................................2.6 Argentina .......................................2.5 Bangladesh....................................2.5 Myanmar........................................2.5 Zimbabwe ......................................2.4 Yemen ...........................................2.1 Lebanon ........................................2.0 Libya ..............................................1.9 Venezuela ......................................1.9 © 2014 World Economic Forum 1 MEAN 3.5 7 2.2: Data Tables 12.06 Availability of scientists and engineers In your country, to what extent are scientists and engineers available? [1 = not at all; 7 = widely available] 2013–14 weighted average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE Finland ...........................................6.2 Qatar .............................................5.6 Japan ............................................5.4 Greece ...........................................5.4 United States .................................5.3 Puerto Rico....................................5.3 United Arab Emirates .....................5.2 Portugal .........................................5.2 Malaysia.........................................5.2 Israel ..............................................5.2 Spain .............................................5.2 Canada ..........................................5.1 Jordan ...........................................5.0 Taiwan, China ................................5.0 Ireland............................................5.0 Singapore ......................................4.9 Cyprus ...........................................4.9 Germany ........................................4.9 Sweden .........................................4.9 Sri Lanka .......................................4.9 France ...........................................4.8 United Kingdom .............................4.8 Italy ................................................4.8 Switzerland ....................................4.8 Costa Rica .....................................4.8 Tunisia ...........................................4.7 Australia .........................................4.7 Lebanon ........................................4.6 Chile ..............................................4.6 Netherlands ...................................4.6 Indonesia .......................................4.6 Denmark ........................................4.6 Iceland ...........................................4.6 Morocco ........................................4.6 Norway ..........................................4.5 Hong Kong SAR ............................4.5 Belgium .........................................4.5 Madagascar ...................................4.4 Trinidad and Tobago......................4.4 New Zealand .................................4.4 Egypt .............................................4.4 Korea, Rep. ...................................4.4 China .............................................4.4 Kenya ............................................4.4 India...............................................4.4 Iran, Islamic Rep. ...........................4.4 Saudi Arabia ..................................4.4 Ukraine ..........................................4.3 Pakistan .........................................4.3 Mali ................................................4.3 Zambia ..........................................4.3 Luxembourg ..................................4.3 Austria ...........................................4.3 Thailand .........................................4.3 Czech Republic .............................4.2 Hungary .........................................4.2 Malta .............................................4.2 Bahrain ..........................................4.2 Turkey............................................4.2 Côte d’Ivoire ..................................4.2 Algeria ...........................................4.2 Poland ...........................................4.2 Azerbaijan ......................................4.2 Cameroon......................................4.1 Guyana ..........................................4.1 Barbados .......................................4.1 Lithuania ........................................4.1 Senegal .........................................4.1 Montenegro ...................................4.1 Russian Federation ........................4.1 Philippines .....................................4.0 Romania ........................................4.0 SOURCE: 1 MEAN 4.0 7 RANK 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 COUNTRY/ECONOMY VALUE 1 MEAN 4.0 7 Mongolia ........................................4.0 Rwanda .........................................4.0 Armenia .........................................4.0 Slovak Republic .............................4.0 Kuwait ...........................................4.0 Mexico ...........................................3.9 Croatia ...........................................3.9 Slovenia .........................................3.9 Macedonia, FYR ............................3.9 Serbia ............................................3.9 Kazakhstan ....................................3.9 Panama .........................................3.9 Colombia .......................................3.8 Argentina .......................................3.8 Vietnam .........................................3.8 Bangladesh....................................3.8 Nigeria ...........................................3.8 Tajikistan ........................................3.7 El Salvador.....................................3.7 Oman ............................................3.7 Mauritius ........................................3.7 Bolivia ............................................3.6 Ghana ............................................3.6 Bulgaria .........................................3.6 Lesotho .........................................3.6 Tanzania ........................................3.6 Zimbabwe ......................................3.6 Honduras .......................................3.6 Guatemala .....................................3.6 South Africa ...................................3.5 Malawi ...........................................3.5 Estonia...........................................3.5 Uganda ..........................................3.5 Latvia .............................................3.5 Burkina Faso..................................3.5 Jamaica .........................................3.5 Nepal .............................................3.5 Albania...........................................3.4 Uruguay .........................................3.4 Cape Verde ...................................3.3 Peru ...............................................3.3 Brazil..............................................3.3 Dominican Republic .......................3.3 Burundi ..........................................3.3 Ethiopia..........................................3.3 Venezuela ......................................3.3 Libya ..............................................3.3 Botswana ......................................3.2 Gabon ...........................................3.2 Georgia ..........................................3.2 Cambodia ......................................3.2 Chad..............................................3.2 Nicaragua ......................................3.1 Yemen ...........................................3.1 Lao PDR ........................................3.1 Moldova .........................................3.1 Gambia, The ..................................3.1 Namibia .........................................3.0 Myanmar........................................3.0 Mozambique ..................................3.0 Suriname .......................................3.0 Sierra Leone ..................................3.0 Bhutan ...........................................3.0 Kyrgyz Republic .............................2.9 Guinea ...........................................2.9 Haiti ...............................................2.9 Mauritania ......................................2.9 Seychelles......................................2.8 Swaziland ......................................2.7 Paraguay .......................................2.6 Timor-Leste ...................................2.6 Angola ...........................................2.5 World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 535 2.2: Data Tables 12.07 PCT patent applications Number of applications filed under the Patent Cooperation Treaty (PCT) per million population 2010–11 average RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 COUNTRY/ECONOMY VALUE RANK Switzerland ................................315.0 Japan ........................................308.2 Sweden .....................................300.8 Finland .......................................286.7 Israel ..........................................230.0 Germany ....................................226.9 Denmark ....................................214.8 Korea, Rep. ...............................201.5 Netherlands ...............................192.6 Austria .......................................166.3 United States .............................149.8 Norway ......................................138.7 Singapore ..................................125.2 Luxembourg ..............................118.6 France .......................................118.1 Belgium .....................................113.3 Iceland .........................................91.4 United Kingdom ...........................89.1 Canada ........................................84.8 Ireland..........................................82.6 Australia .......................................78.4 New Zealand ...............................73.9 Slovenia .......................................63.0 Italy ..............................................53.8 Barbados .....................................40.6 Spain ...........................................39.6 Estonia.........................................32.7 Seychelles....................................30.2 Hungary .......................................25.0 Czech Republic ...........................15.8 Portugal .......................................13.0 Malaysia.......................................12.6 Cyprus .........................................12.0 China ...........................................11.7 Malta ...........................................10.2 Croatia .........................................10.0 Latvia .............................................9.2 Slovak Republic .............................9.2 Greece ...........................................7.6 Poland ...........................................7.1 Russian Federation ........................7.1 Turkey............................................6.8 Chile ..............................................6.7 Saudi Arabia ..................................6.7 South Africa ...................................6.5 Qatar .............................................6.4 Lithuania ........................................6.1 Bulgaria .........................................5.1 United Arab Emirates .....................5.0 Brazil..............................................3.2 Montenegro ...................................3.2 Ukraine ..........................................3.2 Armenia .........................................3.2 Uruguay .........................................2.4 Serbia ............................................2.3 Romania ........................................2.2 Puerto Rico....................................2.1 Mexico ...........................................1.8 Namibia .........................................1.7 Lebanon ........................................1.7 India...............................................1.5 Panama .........................................1.4 Argentina .......................................1.4 Costa Rica .....................................1.3 Georgia ..........................................1.3 Colombia .......................................1.2 Thailand .........................................1.2 Tunisia ...........................................1.2 Bahrain ..........................................1.1 Kazakhstan ....................................1.0 Oman ............................................1.0 Trinidad and Tobago......................1.0 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 124 124 124 124 124 124 124 124 124 124 124 124 124 124 124 124 124 124 n/a n/a COUNTRY/ECONOMY VALUE Moldova .........................................0.8 Jamaica .........................................0.6 Azerbaijan ......................................0.6 Sri Lanka .......................................0.6 Egypt .............................................0.6 Morocco ........................................0.5 Kuwait ...........................................0.5 Dominican Republic .......................0.5 Suriname .......................................0.5 Jordan ...........................................0.5 Bhutan ...........................................0.4 Albania...........................................0.4 Gabon ...........................................0.3 Philippines .....................................0.3 Mongolia ........................................0.3 Timor-Leste ...................................0.3 Peru ...............................................0.3 Venezuela ......................................0.3 Macedonia, FYR ............................0.2 Swaziland ......................................0.2 Vietnam .........................................0.2 Mauritius ........................................0.2 Kenya ............................................0.2 Botswana ......................................0.2 Algeria ...........................................0.2 Zimbabwe ......................................0.1 Kyrgyz Republic .............................0.1 Paraguay .......................................0.1 Nicaragua ......................................0.1 Bolivia ............................................0.1 Guatemala .....................................0.1 Senegal .........................................0.1 Iran, Islamic Rep. ...........................0.1 Indonesia .......................................0.1 Cameroon......................................0.1 Ghana ............................................0.0 Madagascar ...................................0.0 Côte d’Ivoire ..................................0.0 Sierra Leone ..................................0.0 Uganda ..........................................0.0 Burkina Faso..................................0.0 Pakistan .........................................0.0 Lao PDR ........................................0.0 Tanzania ........................................0.0 Nigeria ...........................................0.0 Nepal .............................................0.0 Angola ...........................................0.0 Bangladesh....................................0.0 El Salvador.....................................0.0 Malawi ...........................................0.0 Ethiopia..........................................0.0 Burundi ..........................................0.0 Cambodia ......................................0.0 Cape Verde ...................................0.0 Chad..............................................0.0 Gambia, The ..................................0.0 Guinea ...........................................0.0 Guyana ..........................................0.0 Haiti ...............................................0.0 Honduras .......................................0.0 Lesotho .........................................0.0 Libya ..............................................0.0 Mali ................................................0.0 Mauritania ......................................0.0 Mozambique ..................................0.0 Myanmar........................................0.0 Rwanda .........................................0.0 Tajikistan ........................................0.0 Yemen ...........................................0.0 Zambia ..........................................0.0 Hong Kong SAR ............................n/a Taiwan, China ................................n/a SOURCES: Organisation for Economic Co-operation and Development (OECD), Patent Database, (situation as of June 2014); For population: International Monetary Fund,World Economic Outlook Database (April 2014 edition); World Economic Forum’s calculations. For more details about the treatment of Hong Kong SAR and Taiwan (China), refer to the section “Technical Notes and Sources”. 536 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Technical Notes and Sources This section complements the Data Tables by providing additional information for all indicators used in the computation of the Global Competitiveness Index, as well as for additional key indicators. In the case of indicators derived from the Executive Opinion Survey (the Survey), the full question and associated answers are provided. For more details on Survey indicators, refer to Chapter 1.3. Indicators that are not derived from the Survey are sourced from international agencies and national authorities. They represent the best available estimates at the time the Report was prepared. It is possible that some data will have been updated or revised after publication. 1.02 Intellectual property protection In your country, how strong is the protection of intellectual property, including anti-counterfeiting measures? [1 = extremely weak; 7 = extremely strong] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.03 Diversion of public funds In your country, how common is diversion of public funds to companies, individuals, or groups due to corruption? [1 = very commonly occurs; 7 = never occurs] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.04 Public trust in politicians In your country, how would you rate the ethical standards of politicians? [1 = extremely low; 7 = extremely high] 2013–14 weighted average Key indicators Source: World Economic Forum, Executive Opinion Survey 0.01 Gross domestic product Gross domestic product in billions of current US dollars 2013 1.05 Irregular payments and bribes Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources Average score across the five components of the following Executive Opinion Survey question: In your country, how common is it for firms to make undocumented extra payments or bribes in connection with (a) imports and exports; (b) public utilities; (c) annual tax payments; (d) awarding of public contracts and licenses; (e) obtaining favorable judicial decisions? In each case, the answer ranges from 1 [very common] to 7 [never occurs]. 2013–14 weighted average 0.02 Population Total population in millions 2013 Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources Source: World Economic Forum, Executive Opinion Survey 0.03 GDP per capita Gross domestic product per capita in current US dollars 2013 1.06 Judicial independence Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources In your country, to what extent is the judiciary independent from influences of members of government, citizens, or firms? [1 = heavily influenced; 7 = entirely independent] 2013–14 weighted average 0.04 GDP as a share of world GDP Gross domestic product based on purchasing power parity as a percentage of world GDP 2013 Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition) Source: World Economic Forum, Executive Opinion Survey 1.07 Favoritism in decisions of government officials In your country, to what extent do government officials show favoritism to well-connected firms and individuals when deciding upon policies and contracts? [1 = always show favoritism; 7 = never show favoritism] 2013–14 weighted average Pillar 1: Institutions 1.01 Property rights In your country, how strong is the protection of property rights, including financial assets? [1 = extremely weak; 7 = extremely strong] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.08 Wastefulness of government spending Source: World Economic Forum, Executive Opinion Survey In your country, how efficiently does the government spend public revenue? [1 = extremely inefficient; 7 = extremely efficient in providing goods and services] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 537 Technical Notes and Sources 1.09 Burden of government regulation 1.19 Efficacy of corporate boards In your country, how burdensome is it for businesses to comply with governmental administrative requirements (e.g., permits, regulations, reporting)? [1 = extremely burdensome; 7 = not burdensome at all] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey In your country, how would you characterize corporate governance by investors and boards of directors? [1 = management has little accountability to investors and boards; 7 = management is highly accountable to investors and boards] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.10 Efficiency of legal framework in settling disputes In your country, how efficient is the legal framework for private businesses in settling disputes? [1 = extremely inefficient; 7 = extremely efficient] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.20 Protection of minority shareholders’ interests In your country, to what extent are the interests of minority shareholders protected by the legal system? [1 = not protected at all; 7 = fully protected] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.11 Efficiency of legal framework in challenging regulations In your country, how easy is it for private businesses to challenge government actions and/or regulations through the legal system? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.12 Transparency of government policymaking In your country, how easy is it for businesses to obtain information about changes in government policies and regulations affecting their activities? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.13 Business costs of terrorism In your country, to what extent does the threat of terrorism impose costs on businesses? [1 = to a great extent; 7 = not at all] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.14 Business costs of crime and violence In your country, to what extent does the incidence of crime and violence impose costs on businesses? [1 = to a great extent; 7 = not at all] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.15 Organized crime In your country, to what extent does organized crime (mafia-oriented racketeering, extortion) impose costs on businesses? [1 = to a great extent; 7 = not at all] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.16 Reliability of police services In your country, to what extent can police services be relied upon to enforce law and order? [1 = cannot be relied upon at all; 7 = can be completely relied upon] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.17 Ethical behavior of firms In your country, how would you rate the corporate ethics of companies (ethical behavior in interactions with public officials, politicians, and other firms)? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 1.18 Strength of auditing and reporting standards In your country, how strong are financial auditing and reporting standards? [1 = extremely weak; 7 = extremely strong] 2013–14 weighted average 1.21 Strength of investor protection Strength of Investor Protection Index on a 0–10 (best) scale 2013 This indicator is a combination of the Extent of disclosure index (transparency of transactions), the Extent of director liability index (liability for self-dealing), and the Ease of shareholder suit index (shareholders’ ability to sue officers and directors for misconduct). For more details about the methodology employed and the assumptions made to compute this indicator, visit http:// www.doingbusiness.org/methodologysurveys/. Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises Pillar 2: Infrastructure 2.01 Quality of overall infrastructure How would you assess general infrastructure (e.g., transport, telephony, and energy) in your country? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 2.02 Quality of roads In your country, how would you assess the quality of roads? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 2.03 Quality of railroad infrastructure In your country, how would you assess the quality of the railroad system? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] 2013–14 weighted average. This indicator does not apply to economies where there is no regular train service or where the network covers only a negligible portion of the territory. Assessment of the existence of a network was conducted by the World Economic Forum based on various sources. Source: World Economic Forum, Executive Opinion Survey 2.04 Quality of port infrastructure In your country, how would you assess the quality of seaports? (For landlocked countries: How accessible are seaport facilities?) [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey Source: World Economic Forum, Executive Opinion Survey 538 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Technical Notes and Sources Pillar 3: Macroeconomic environment 2.05 Quality of air transport infrastructure In your country, how would you assess the quality of air transport infrastructure? [1 = extremely underdeveloped— among the worst in the world; 7 = extensive and efficient— among the best in the world] 2013–14 weighted average 3.01 Government budget balance General government budget balance as a percentage of GDP 2013 General government budget balance is calculated as general government revenue minus total expenditure. This is a core Government Finance Statistics (GFS) balance that measures the extent to which the general government is either putting financial resources at the disposal of other sectors in the economy and nonresidents (net lending), or utilizing the financial resources generated by other sectors and nonresidents (net borrowing). This balance may be viewed as an indicator of the financial impact of general government activity on the rest of the economy and nonresidents. Revenue consists of taxes, social contributions, grants receivable, and other revenue. Revenue increases a government’s net worth, which is the difference between its assets and liabilities. General government total expenditure consists of total expenses and the net acquisition of nonfinancial assets. Source: World Economic Forum, Executive Opinion Survey 2.06 Available airline seat kilometers Airline seat kilometers (in millions) available on all flights (domestic and international service) originating in country per week (year average) 2014 This indicator measures the total passenger-carrying capacity of all scheduled flights, including domestic flights, originating in a country. It is computed by multiplying the number of seats available on each flight by the flight distance in kilometers and summing the result across all scheduled flights in a week. The final value represents the weekly average for the year (Jan–Dec), taking into account flights scheduled beforehand by airline companies. Source: International Air Transport Association, SRS Analyser Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 2.07 Quality of electricity supply In your country, how would you assess the reliability of the electricity supply (lack of interruptions and lack of voltage fluctuations)? [1 = not reliable at all; 7 = extremely reliable] 2013–14 weighted average 3.02 Gross national savings Gross national savings as a percentage of GDP 2013 or most recent year available Aggregate national savings is defined as public- and privatesector savings as a percentage of nominal GDP. National savings equals gross domestic investment plus the current-account balance. Source: World Economic Forum, Executive Opinion Survey 2.08 Mobile telephone subscriptions Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); World Bank, At-a-Glance Table; Organisation for Economic Co-operation and Development (OECD), Economic Outlook 2014; national sources Number of mobile telephone subscriptions per 100 population 2013 A mobile telephone subscription refers to a subscription to a public mobile telephone service that provides access to the public switched telephone network (PSTN) using cellular technology, including the number of pre-paid SIM cards active during the last three months of the year under review. This includes both analog and digital cellular systems (IMT-2000, Third Generation, 3G) and 4G subscriptions, but excludes mobile broadband subscriptions via data cards or USB modems. Subscriptions to public mobile data services, private trunked mobile radio, telepoint or radio paging, and telemetry services are also excluded. It includes all mobile cellular subscriptions that offer voice communications. Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators Database 2014 (June 2014 edition) 3.03 Inflation Annual percent change in consumer price index (year average) 2013 For inflation rates between 0.5 and 2.9 percent, a country receives the highest possible score of 7. Outside this range, scores decrease linearly as they move away from these values. Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 3.04 Government debt 2.09 Fixed telephone lines Number of active fixed telephone lines per 100 population 2013 A fixed telephone line is an active line connecting the subscriber’s terminal equipment to the public switched telephone network (PSTN) that has a dedicated port in the telephone exchange equipment. Active lines are those that have registered an activity in the last three months of the year under review. Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators Database 2014 (June 2014 edition) Gross general government debt as a percentage of GDP 2013 or most recent year available Gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future. This includes debt liabilities in the form of special drawing rights, currency and deposits, debt securities, loans, insurance, pensions and standardized guarantee schemes, and other accounts payable. Thus, all liabilities in the Government Finance Statistics Manual (GFSM) 2001 system are debt, except for equity and investment fund shares, financial derivatives, and employee stock options. For Australia, Belgium, Canada, Hong Kong SAR, Iceland, New Zealand, and Sweden, government debt coverage also includes insurance technical reserves, following the GFSM 2001 definition. Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition) and Public Information Notices (various issues); African Development Bank, Organisation for Economic Co-operation and Development (OECD), and United Nations Development Programme, African Economic Outlook 2014; national sources. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 539 Technical Notes and Sources 3.05 Country credit rating 4.05 HIV prevalence Institutional Investor’s Country Credit Ratings™ assessing the probability of sovereign debt default on a 0–100 (lowest probability) scale March 2014 Institutional Investor’s Country Credit Ratings™ developed by Institutional Investor are based on information provided by senior economists and sovereign-debt analysts at leading global banks and money management and security firms. Twice a year, the respondents grade each country on a scale of 0 to 100, with 100 representing the least chance of default. Institutional Investor’s “Country Credit Ratings” is a trademark of Institutional Investor, LLC. No further copying or transmission of this material is allowed without the express written permission of Institutional Investor’s publisher, who can be reached at publisher@institutionalinvestor.com. Copyright © Institutional Investor, LLC 2014. Source: Institutional Investor HIV prevalence as a percentage of adults aged 15–49 years 2013 HIV prevalence refers to the percentage of people aged 15–49 who are infected with HIV at a particular point in time, no matter when infection occurred. Sources: The World Bank, World Development Indicators (accessed June 18, 2014); UNAIDS, Global Report on the Global AIDS Epidemic (2008, 2010, 2012, and 2013 editions); national sources 4.06 Business impact of HIV/AIDS How serious an impact do you consider HIV/AIDS will have on your company in the next five years (e.g., death, disability, medical and funeral expenses, productivity and absenteeism, recruitment and training expenses, revenues)? [1 = a serious impact; 7 = no impact at all] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey Pillar 4: Health and primary education 4.07 Infant mortality 4.01 Malaria incidence Estimated number of malaria cases per 100,000 population 2012 This indicator refers to the estimated number of new cases of malaria in the economy per 100,000 population. M.F. and S.L. indicate respectively that the World Health Organization (WHO) has declared the area malaria-free (M.F.) or that it has included it in the supplementary list (S.L.) of areas where malaria has never existed or has disappeared without specific measures. Hong Kong SAR and Puerto Rico have been considered malaria-free (M.F.) following the assessment by the US Centers for Disease Control and Prevention (CDC). Sources: The World Health Organization, World Malaria Report 2013; United States Centers for Disease Control and Prevention (CDC), Malaria Information and Prophylaxis information (accessed July 11, 2014) Infant (children aged 0–12 months) mortality per 1,000 live births 2013 Infant mortality rate is the number of infants dying before reaching one year of age per 1,000 live births in a given year. Sources: The World Bank, World Development Indicators (accessed June 18, 2014); national sources 4.08 Life expectancy Life expectancy at birth (years) 2013 Life expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life. Sources: The World Bank, World Development Indicators (accessed June 18, 2014); national sources 4.09 Quality of primary education 4.02 Business impact of malaria How serious an impact do you consider malaria will have on your company in the next five years (e.g., death, disability, medical and funeral expenses, productivity and absenteeism, recruitment and training expenses, revenues)? [1 = a serious impact; 7 = no impact at all] 2013–14 weighted average This indicator does not apply to economies considered free of malaria or included in the World Health Organization’s supplementary list of areas where malaria has never existed or has disappeared without specific measures. Source: World Economic Forum, Executive Opinion Survey 4.03 Tuberculosis incidence Estimated number of tuberculosis cases per 100,000 population 2013 Incidence of tuberculosis is the estimated number of new pulmonary, smear positive, and extra-pulmonary tuberculosis cases. Sources: The World Bank, World Development Indicators (accessed June 18, 2014); national sources In your country, how would you assess the quality of primary schools? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 4.10 Primary education enrollment rate Net primary education enrollment rate 2012 The reported value corresponds to the ratio of children of official primary school age (as defined by the national education system) who are enrolled in primary school. Primary education (ISCED level 1) provides children with basic reading, writing, and mathematics skills along with an elementary understanding of such subjects as history, geography, natural science, social science, art, and music. Sources: UNESCO Institute for Statistics, Data Centre (accessed May 21, 2014); Organisation for Economic Co-operation and Development (OECD), Education at a Glance 2013; Sistema de Información de tendencias Educativas de América Latina (SITEAL); national sources 4.04 Business impact of tuberculosis How serious an impact do you consider tuberculosis will have on your company in the next five years (e.g., death, disability, medical and funeral expenses, productivity and absenteeism, recruitment and training expenses, revenues)? [1 = a serious impact; 7 = no impact at all] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 540 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Technical Notes and Sources Pillar 5: Higher education and training Pillar 6: Goods market efficiency 5.01 Secondary education enrollment rate 6.01 Intensity of local competition Gross secondary education enrollment rate 2012 The reported value corresponds to the ratio of total secondary enrollment, regardless of age, to the population of the age group that officially corresponds to the secondary education level. Secondary education (ISCED levels 2 and 3) completes the provision of basic education that began at the primary level, and aims to lay the foundations for lifelong learning and human development by offering more subject- or skills-oriented instruction using more specialized teachers. Sources: UNESCO Institute for Statistics, Data Centre (accessed May 21, 2014); UNICEF Childinfo.org (accessed August 07, 2014); Sistema de Información de tendencias Educativas de América Latina (SITEAL); national sources In your country, how intense is competition in the local markets? [1 = not intense at all; 7 = extremely intense] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 6.02 Extent of market dominance In your country, how would you characterize corporate activity? [1 = dominated by a few business groups; 7 = spread among many firms] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 6.03 Effectiveness of anti-monopoly policy In your country, to what extent does anti-monopoly policy promote competition? [1 = does not promote competition; 7 = effectively promotes competition] 2013–14 weighted average 5.02 Tertiary education enrollment rate Gross tertiary education enrollment rate 2012 The reported value corresponds to the ratio of total tertiary enrollment, regardless of age, to the population of the age group that officially corresponds to the tertiary education level. Tertiary education (ISCED levels 5 and 6), whether or not leading to an advanced research qualification, normally requires, as a minimum condition of admission, the successful completion of education at the secondary level. Source: World Economic Forum, Executive Opinion Survey 6.04 Effect of taxation on incentives to invest In your country, to what extent do taxes reduce the incentive to invest? [1 = significantly reduce the incentive to invest; 7 = do not reduce the incentive to invest at all] 2013–14 weighted average Sources: UNESCO Institute for Statistics, Data Centre (accessed May 21, 2014); national sources Source: World Economic Forum, Executive Opinion Survey 5.03 Quality of the education system How well does the education system in your country meet the needs of a competitive economy? [1 = not well at all; 7 = extremely well] 2013–14 weighted average 6.05 Total tax rate This indicator is a combination of profit tax (% of profits), labor tax and contribution (% of profits), and other taxes (% of profits) 2013 Source: World Economic Forum, Executive Opinion Survey The total tax rate measures the amount of taxes and mandatory contributions payable by a business in the second year of operation, expressed as a share of commercial profits. The total amount of taxes is the sum of five different types of taxes and contributions payable after accounting for deductions and exemptions: profit or corporate income tax, social contributions and labor taxes paid by the employer, property taxes, turnover taxes, and other small taxes. For more details about the methodology employed and the assumptions made to compute this indicator, visit http://www.doingbusiness.org/ methodologysurveys/. 5.04 Quality of math and science education In your country, how would you assess the quality of math and science education? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 5.05 Quality of management schools In your country, how would you assess the quality of business schools? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises 6.06 Number of procedures required to start a business Number of procedures required to start a business 2013 5.06 Internet access in schools For details about the methodology employed and the assumptions made to compute this indicator, visit http:// www.doingbusiness.org/methodologysurveys/. In your country, how widespread is Internet access in schools? [1 = nonexistent; 7 = extremely widespread] 2013–14 weighted average Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises Source: World Economic Forum, Executive Opinion Survey 5.07 Local availability of specialized research and training services 6.07 Time required to start a business In your country, to what extent are high-quality, specialized training services available? [1 = not available at all; 7 = widely available] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 5.08 Extent of staff training In your country, to what extent do companies invest in training and employee development? [1 = not at all; 7 = to a great extent] 2013–14 weighted average Number of days required to start a business 2013 For details about the methodology employed and the assumptions made to compute this indicator, visit http:// www.doingbusiness.org/methodologysurveys/. Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises Source: World Economic Forum, Executive Opinion Survey © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 541 Technical Notes and Sources 6.08 Agricultural policy costs 6.16 Buyer sophistication In your country, how would you assess the agricultural policy? [1 = excessively burdensome for the economy; 7 = balances well the interests of taxpayers, consumers and producers] 2013–14 weighted average In your country, how do buyers make purchasing decisions? [1 = based solely on the lowest price; 7 = based on a sophisticated analysis of performance attributes] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey Source: World Economic Forum, Executive Opinion Survey 6.09 Prevalence of trade barriers In your country, to what extent do non-tariff barriers (e.g., health and product standards, technical and labeling requirements, etc.) limit the ability of imported goods to compete in the domestic market? [1 = strongly limit; 7 = do not limit at all] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 6.10 Trade tariffs Pillar 7: Labor market efficiency 7.01 Cooperation in labor-employer relations In your country, how would you characterize labor-employer relations? [1 = generally confrontational; 7 = generally cooperative] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 7.02 Flexibility of wage determination Trade-weighted average tariff rate 2013 An applied tariff is a customs duty that is levied on imports of merchandise goods. This indicator is calculated as a weighted average of all the applied tariff rates, including preferential rates that a country applies to the rest of the world. The weights are the trade patterns of the importing country’s reference group (2012 data). Source: International Trade Centre, Trade Competitiveness Map Data 6.11 Prevalence of foreign ownership In your country, how prevalent is foreign ownership of companies? [1 = extremely rare; 7 = highly prevalent] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 6.12 Business impact of rules on FDI In your country, to what extent do rules and regulations encourage or discourage foreign direct investment (FDI)? [1 = strongly discourage FDI; 7 = strongly encourage FDI] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 6.13 Burden of customs procedures In your country, how efficient are the customs procedures (related to the entry and exit of merchandise)? [1 = not efficient at all; 7 = extremely efficient] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 6.14 Imports as a percentage of GDP In your country, how are wages generally set? [1 = by a centralized bargaining process; 7 = by each individual company] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 7.03 Hiring and firing practices In your country, how would you characterize the hiring and firing of workers? [1 = heavily impeded by regulations; 7 = extremely flexible] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 7.04 Redundancy costs Redundancy costs in weeks of salary 2013 This indicator estimates the cost of advance notice requirements, severance payments, and penalties due when terminating a redundant worker, expressed in weekly wages. For more details about the methodology employed and the assumptions made to compute this indicator, visit http://www.doingbusiness.org/ methodologysurveys/. Sources: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises; World Economic Forum’s calculations 7.05 Effect of taxation on incentives to work In your country, to what extent do taxes reduce the incentive to work? [1 = significantly reduce the incentive to work; 7 = do not reduce incentive to work at all] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 7.06 Pay and productivity Imports of goods and services as a percentage of gross domestic product 2013 Total imports is the sum of total imports of merchandise and commercial services. Sources: World Trade Organization, Statistical Database: Time Series on Merchandise and Commercial Services (accessed July 02, 2014); International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 6.15 Degree of customer orientation In your country, how well do companies treat customers? [1 = indifferent to customer satisfaction; 7 = highly responsive to customers and seek customer retention] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey In your country, to what extent is pay related to worker productivity? [1 = not related to worker productivity; 7 = strongly related to worker productivity] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 7.07 Reliance on professional management In your country, who holds senior management positions? [1 = usually relatives or friends without regard to merit; 7 = mostly professional managers chosen for merit and qualifications] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 7.08 Country capacity to retain talent Does your country retain talented people? [1 = the best and brightest leave to pursue opportunities in other countries; 7 = the best and brightest stay and pursue opportunities in the country] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey For more details, refer to Chapter 1.3 of this Report 542 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Technical Notes and Sources 7.09 Country capacity to attract talent 8.08 Legal rights index Does your country attract talented people from abroad? [1 = not at all; 7 = attracts the best and brightest from around the world] 2013–14 weighted average Degree of legal protection of borrowers’ and lenders’ rights on a 0–10 (best) scale 2013 This index measures the degree to which collateral and bankruptcy laws protect borrowers’ and lenders’ rights and thus facilitate lending. For more details about the methodology employed and the assumptions made to compute this indicator, visit http://www.doingbusiness.org/methodologysurveys/. Source: World Economic Forum, Executive Opinion Survey 7.10 Female participation in the labor force Ratio of women to men in the labor force 2012 Source: World Bank/International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises This measure is the percentage of women aged 15–64 participating in the labor force divided by the percentage of men aged 15–64 participating in the labor force. Sources: International Labour Organization, Key Indicators of the Labour Markets, 8th Edition; national sources Pillar 9: Technological readiness 9.01 Availability of latest technologies Pillar 8: Financial market development In your country, to what extent are the latest technologies available? [1 = not available at all; 7 = widely available] 2013–14 weighted average 8.01 Availability of financial services In your country, to what extent does the financial sector provide a wide range of financial products and services to businesses? [1 = not at all; 7 = provides a wide variety] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 9.02 Firm-level technology absorption In your country, to what extent do businesses adopt new technology? [1 = not at all; 7 = adopt extensively] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 8.02 Affordability of financial services In your country, to what extent are financial services affordable for businesses? [1 = not affordable at all; 7 = affordable] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 9.03 FDI and technology transfer To what extent does foreign direct investment (FDI) bring new technology into your country? [1 = not at all; 7 = to a great extent—FDI is a key source of new technology] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 8.03 Financing through local equity market In your country, how easy is it for companies to raise money by issuing shares on the stock market? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 9.04 Internet users Source: World Economic Forum, Executive Opinion Survey Percentage of individuals using the Internet 2013 Internet users refers to people using the Internet from any device (including mobile phones) during the year under review. Data are based on surveys generally carried out by national statistical offices or estimated based on the number of Internet subscriptions. 8.04 Ease of access to loans In your country, how easy is it to obtain a bank loan with only a good business plan and no collateral? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average Source: International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition) Source: World Economic Forum, Executive Opinion Survey 8.05 Venture capital availability In your country, how easy is it for entrepreneurs with innovative but risky projects to find venture capital? [1 = extremely difficult; 7 = extremely easy] 2013–14 weighted average 9.05 Fixed broadband Internet subscriptions Fixed broadband Internet subscriptions per 100 population 2013 or most recent year available This refers to total fixed (wired) broadband Internet subscriptions (that is, subscriptions to high-speed access to the public Internet—a TCP/IP connection—at downstream speeds equal to or greater than 256 kb/s). Source: World Economic Forum, Executive Opinion Survey 8.06 Soundness of banks In your country, how would you assess the soundness of banks? [1 = extremely low—banks may require recapitalization; 7 = extremely high—banks are generally healthy with sound balance sheets] 2013–14 weighted average Source: International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition) 9.06 Internet bandwidth Source: World Economic Forum, Executive Opinion Survey 8.07 Regulation of securities exchanges In your country, how effective are the regulation and supervision of securities exchanges? [1 = not at all effective; 7 = extremely effective] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey © 2014 World Economic Forum International Internet bandwidth (kb/s) per Internet user 2013 or most recent year available International Internet bandwidth is the sum of capacity of all Internet exchanges offering international bandwidth measured in kilobits per second (kb/s). Source: International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition) The Global Competitiveness Report 2014–2015 543 Technical Notes and Sources 9.07 Mobile broadband subscriptions 11.02 Local supplier quality Mobile broadband subscriptions per 100 population 2013 or most recent year available Mobile broadband subscriptions refers to active SIM cards or, on CDMA networks, connections accessing the Internet at consistent broadband speeds of over 512 kb/s, including cellular technologies such as HSPA, EV-DO, and above. This includes connections being used in any type of device able to access mobile broadband networks, including smartphones, USB modems, mobile hotspots, and other mobile broadband– connected devices. Source: International Telecommunication Union, World Telecommunication/ICT Indicators 2014 (June 2014 edition) In your country, how would you assess the quality of local suppliers? [1 = extremely poor quality; 7 = extremely high quality] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 11.03 State of cluster development In your country, how widespread are well-developed and deep clusters (geographic concentrations of firms, suppliers, producers of related products and services, and specialized institutions in a particular field)? [1 = nonexistent; 7 = widespread in many fields] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey Pillar 10: Market size 11.04 Nature of competitive advantage 10.01 Domestic market size index Sum of gross domestic product plus value of imports of goods and services, minus value of exports of goods and services, normalized on a 1–7 (best) scale 2013 The size of the domestic market is calculated as the natural log of the sum of the gross domestic product valued at PPP plus the total value (PPP estimates) of imports of goods and services, minus the total value (PPP estimates) of exports of goods and services. Data are then normalized on a 1–7 scale. PPP estimates of imports and exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP. Source: World Economic Forum’s calculations. For more details, refer to Appendix B of Chapter 1.1 of this Report. What is the competitive advantage of your country’s companies in international markets based upon? [1 = lowcost labor or natural resources; 7 = unique products and processes] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 11.05 Value chain breadth In your country, do companies have a narrow or broad presence in the value chain? [1 = narrow, primarily involved in individual steps of the value chain (e.g., resource extraction or production); 7 = broad, present across the entire value chain (e.g., including production and marketing, distribution, design, etc.)] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 10.02 Foreign market size index Value of exports of goods and services, normalized on a 1–7 (best) scale 2013 The size of the foreign market is estimated as the natural log of the total value (PPP estimates) of exports of goods and services, normalized on a 1–7 scale. PPP estimates of exports are obtained by taking the product of exports as a percentage of GDP and GDP valued at PPP. Source: World Economic Forum’s calculations. For more details, refer to Appendix B of Chapter 1.1 of this Report. 10.03 GDP (PPP) Gross domestic product valued at purchasing power parity in billions of international dollars 2013 Sources: International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources 11.06 Control of international distribution To what extent are international distribution and marketing from your country owned and controlled by domestic companies? [1 = not at all—they take place through foreign companies; 7 = to a great extent—they are primarily owned and controlled by domestic companies] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 11.07 Production process sophistication In your country, how sophisticated are production processes? [1 = not at all—production uses labor-intensive processes or old technology; 7 = highly—production uses sophisticated and knowledge-intensive processes] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 11.08 Extent of marketing 10.04 Exports as a percentage of GDP Exports of goods and services as a percentage of gross domestic product 2013 Total exports is the sum of total exports of merchandise and commercial services. Sources: World Trade Organization, Online Statistics Database (accessed June 18, 2014); International Monetary Fund, World Economic Outlook Database (April 2014 edition); national sources Pillar 11: Business sophistication 11.01 Local supplier quantity In your country, how numerous are local suppliers? [1 = largely nonexistent; 7 = extremely numerous] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey In your country, to what extent do companies use sophisticated marketing tools and techniques? [1 = not at all; 7 = to a great extent] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 11.09 Willingness to delegate authority In your country, how do you assess the willingness to delegate authority to subordinates? [1 = not willing at all—senior management takes all important decisions; 7 = very willing— authority is mostly delegated to business unit heads and other lower-level managers] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey Pillar 12: Innovation 12.01 Capacity for innovation In your country, to what extent do companies have the capacity to innovate? [1 = not at all; 7 = to a great extent] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 544 The Global Competitiveness Report 2014–2015 © 2014 World Economic Forum Technical Notes and Sources 12.02 Quality of scientific research institutions In your country, how would you assess the quality of scientific research institutions? [1 = extremely poor—among the worst in the world; 7 = extremely good—among the best in the world] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 12.03 Company spending on R&D In your country, to what extent do companies spend on research and development (R&D)? [1 = do not spend on R&D; 7 = spend heavily on R&D] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 12.04 University-industry collaboration in R&D In your country, to what extent do business and universities collaborate on research and development (R&D)? [1 = do not collaborate at all; 7 = collaborate extensively] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 12.05 Government procurement of advanced technology products In your country, to what extent do government purchasing decisions foster innovation? [1 = not at all; 7 = to a great extent] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 12.06 Availability of scientists and engineers In your country, to what extent are scientists and engineers available? [1 = not at all; 7 = widely available] 2013–14 weighted average Source: World Economic Forum, Executive Opinion Survey 12.07 PCT patent applications Number of applications filed under the Patent Cooperation Treaty (PCT) per million population 2010-2011 average This indicator measures the total count of applications filed under the Patent Cooperation Treaty (PCT), by priority date and inventor nationality, using fractional count if an application is filed by multiple inventors. The average count of applications filed in 2010 and 2011 is divided by population figures for 2011. In the absence of reliable data on PCT applications for Taiwan (China) and Hong Kong SAR, two advanced economies that are not signatories of the Treaty, the number of applications is estimated as follows: first, we compute the average number of all utility patent applications filed with the United States Patents and Trademarks Office (USPTO) for 2010 and 2011. We then compute the average number of PCT applications for 2010 and 2011, before computing the ratio of the two averages (1.59). For the computation of the two averages, only economies with a two-year average number of at least 100 USPTO applications and 50 PCT applications are considered. Taiwan and Hong Kong are excluded in both cases. We then divide the number of USPTO applications filed by residents of Taiwan (19,892) and Hong Kong (1,024), respectively, by the ratio above in order to produce estimates for PCT applications. As a final step, we compute the estimates per million population—that is, 537.2 for Taiwan and 90.3 for Hong Kong. The estimates are used in the computation of the respective Innovation pillar scores of the two economies. Sources: Organisation for Economic Co-operation and Development (OECD), Patent Database, (situation as of June 2014); For population: International Monetary Fund, World Economic Outlook Database (April 2014 edition); World Economic Forum’s calculations © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 545 2014 World Economic Forum About the Authors Beñat Bilbao-Osorio Beñat Bilbao-Osorio is an Associate Director and Senior Economist with The Global Competitiveness and Benchmarking Network at the World Economic Forum. In this capacity, he carries out research on national competitiveness issues with a special focus on Latin America and Iberia. In addition, he analyzes the role of innovation and information and communication technologies in fostering competitiveness, and is coeditor of The Global Information Technology Report. Prior to joining the Forum, Dr Bilbao-Osorio worked at the Directorate-General for Research & Innovation of the European Commission, where he was responsible for the economic analysis of European Innovation Policy; at the Directorates of Science, Technology and Industry, and Education of the Organisation for Economic Cooperation and Development (OECD) on innovation-related topics; and at the International Trade Centre (UNCTAD/ WTO) on international trade competitiveness analysis. His main research fields are innovation, skills, and economic development, where he has published extensively. Dr Bilbao-Osorio holds a degree in Economics from the Universidad Comercial de Deusto (Spain), a Master in European Studies from the Université Catholique de Louvain (Belgium), and a PhD in Economic Geography from the London School of Economic and Political Science (UK). Ciara Browne Ciara Browne is a Director with The Global Competitiveness and Benchmarking Network team, where her responsibilities include managing partnerships— including institutional and corporate partnerships—and outreach for both competitiveness and risks reports. Ms Browne also oversees the process of implementing the Executive Opinion Survey, which is conducted worldwide and completed by around 15,000 business executives. Ms Browne is involved in the production process of reports on the team and works closely with the Forum’s media team in conveying the findings of the various competitiveness reports to the media and the public. Before joining the Forum, she served for several years with the International Organization for Migration, where she worked for a mass claims processing program. She has a BA (Hons) degree from the University of Manchester (UK). Gemma Corrigan Gemma Corrigan is a Senior Associate with The Global Competitiveness and Benchmarking Network at the World Economic Forum. Her responsibilities include the development of a repository of competitiveness practices, and she contributes to the research and drafting of various reports, including The Global Competitiveness Report and the Global Risks report. Prior to joining the World Economic Forum, she worked in the Division of Country Programmes at the International Trade Centre (UNCTAD/ WTO), where she focused on export strategies and issues related to trade competitiveness. Her areas of expertise include new institutional economics, development policy, inequality, and inclusive growth. She holds a Bachelor’s degree in Economics and History from Barnard College/ Columbia University in New York and a Master in Political Economy from the London School of Economics (UK). Roberto Crotti Roberto Crotti is an Economist with The Global Competitiveness and Benchmarking Network at the World Economic Forum. His responsibilities include the computation and management of a range of indexes as well as data analysis for various projects and studies. His main areas of expertise are quantitative research, forecasting, and development economics. Prior to joining the Forum, he worked as an Analyst in the private consulting and forecasting sector. Mr Crotti holds a five-year degree in Economics/Economic Policy from Università Cattolica del Sacro Cuore in Milan, Italy, and an MA in Economics from Boston University. Attilio Di Battista Attilio Di Battista is a Junior Quantitative Economist with The Global Competitiveness and Benchmarking Network at the World Economic Forum. He works on the development and computation of a range of indexes and on the analysis of data for the elaboration of various reports. His areas of expertise include international trade and competitiveness, institutions and development, investment flows, and financial stability. Prior to joining the Forum, he worked at the International Trade Centre (UNCTAD/WTO) on export strategy, policy, and trade competitiveness analysis. He has a Bachelor’s degree in International and Diplomatic Sciences from Università degli Studi di Trieste in Gorizia and a Master in International Economics from the Graduate Institute of International and Development Studies in Geneva, where he conducted research on the attractiveness of Italian provinces for foreign direct investments, focusing on the role of institutions and economic geography. © 2014 World Economic Forum The Global Competitiveness Report 2014–2015 547 About the Authors Margareta Drzeniek Hanouz Margareta Drzeniek Hanouz is Director, Lead Economist, and Head of The Global Competitiveness and Benchmarking Network at the World Economic Forum. She researches and writes on issues of national competitiveness and global risks and is lead author or editor of a number of regional and topical reports and papers, including The Global Competitiveness Report and the Global Risks report series. Before joining The Global Competitiveness and Benchmarking Network, Dr Drzeniek Hanouz worked with the International Trade Centre (UNCTAD/WTO) in Geneva, where she was in charge of relations with Central and Eastern European countries. Dr Drzeniek Hanouz received a Diploma in Economics from the University of Münster and holds a PhD in International Economics from the University of Bochum, both in Germany. Caroline Galvan Caroline Galvan is an Economist and Senior Manager with The Global Competitiveness and Benchmarking Network at the World Economic Forum. She researches and writes on national competitiveness issues in sub-Saharan Africa and Europe and manages The Africa Competitiveness Report and The Europe 2020 Competitiveness Report. She also works on the World Economic Forum’s Global Risks report. Prior to joining the Forum, she worked for an economic policy consultancy in the United Kingdom, where she analyzed economic and financial policies in Central and Eastern Europe and Central Asia. She also worked for the Directorate-General for Economic and Financial Affairs of the European Commission, where she assessed financial development in the 2004 accession Member States. She holds an undergraduate degree in Economics from the University of Groningen and an MSc in Economics and Finance from the University of Tilburg, both in the Netherlands. Thierry Geiger Thierry Geiger is an Associate Director and Senior Economist with The Global Competitiveness and Benchmarking Network at the World Economic Forum. He leads the competitiveness practice on Asia. As head of quantitative research, he supervises the development and computation of a wide range of composite indicators. He is also responsible for the Network’s technical assistance and capacity-building activities. His areas of expertise are private-sector development, international trade, and data science. Mr Geiger is co-editor of The Global Enabling Trade Report and co-author of The Global Competitiveness Report and The Global Information Technology Report, and is the lead author of several regional and country studies. A Swiss national, Mr Geiger holds a BA in Economics from the University of Geneva, an MA in Economics from the University of British Columbia, and was a Fellow of the Forum’s Global Leadership Programme. Prior to joining the Forum, he worked for the World Trade Organization and Caterpillar Inc. He is co-founder of Procab Studio, a Geneva-based IT company. 548 The Global Competitiveness Report 2014–2015 Tania Gutknecht Tania Gutknecht is Community Manager with The Global Competitiveness and Benchmarking Network at the World Economic Forum. Her responsibilities include managing the network of Partner Institutes worldwide and driving the Executive Opinion Survey process. She also is responsible for the production of The Global Competitiveness Report and related benchmarking studies. She collaborates closely with the Forum’s media and digital content teams in conveying the findings of the competitiveness reports to the public through press, web, and social media. Prior joining the Global Competitiveness Network team, Ms Gutknecht worked with the Centre for Business Engagement at the World Economic Forum, where she designed high-profile events and projects to address the challenges of inclusive social and economic growth; built relationships with C-suite executives of partner companies; and oversaw the operation-management responsibilities of a team of coordinators. Ms Gutknecht holds an MA in International Relations from the Graduate Institute of International Studies (Geneva) as well as an MSc in International Management from the University of Geneva. Xavier Sala-i-Martín Xavier Sala-i-Martín is a Professor in the Department of Economics at Columbia University. He was previously an Associate Professor at the Department of Economics at Yale University and a Visiting Professor at Universitat Pompeum Fabra. His research interests include economic growth, macroeconomics, public finance and social security, health and population economics, monetary economics, poverty, inequality, estimation of the world distribution of income, and measuring competitiveness. He is a consultant on growth and competitiveness for a number of countries, international institutions, and corporations. Professor Sala-i-Martín is a Research Associate at the National Bureau of Economic Research. He earned his MA and PhD, both in Economics, from Harvard University. He collaborates closely with the World Economic Forum in his capacity as Chief Advisor to The Global Competitiveness and Benchmarking Network. Cecilia Serin Cecilia Serin is a Senior Associate with The Global Competitiveness and Benchmarking Network at the World Economic Forum. Her responsibilities include supporting the team through the production of the various reports, and coordinating the Sustainable Competitiveness project. Prior to joining the Forum, she worked at the United Nations Environment Programme Finance Initiative (UNEP FI), where she was responsible for organizing the biannual Global Roundtable on Sustainable Finance. She also worked at the United Nations Economic Commission for Europe (UNECE) on various sustainability issues. Ms Serin holds a BSc in Business Administration from the International University of Monaco and an MSc in Development Management from the London School of Economics and Political Science (UK). © 2014 World Economic Forum Over more than three decades, The Global Competitiveness Report series has evolved into the world’s most comprehensive assessment of national competitiveness. This 35th edition is being released at a time when the global economy finally seems to be recovering from the worst financial and economic crisis the world has seen in decades. But current economic growth needs to be strengthened if it is to be robust, generate more productive jobs, and ensure inclusive growth. Potential risks going forward concern the possible tightening of financial conditions that may follow a normalization of the monetary policy in the United States and other advanced economies, a strained geopolitical scenario, and internal social tensions linked to rising inequality in large economies that could have global consequences. In the current context, if recovery is to strengthen and generate the high-quality jobs that societies need and ensure higher sustainable growth, policymakers and business and civil society leaders need to understand the complex and interrelated forces that drive productivity and competitiveness. The Global Competitiveness Report 2014–2015 aims to support these stakeholders in establishing a collaborative approach and identifying assets on which they can build as well as areas of concern that need to be addressed. Produced in collaboration with leading academics and a global network of Partner Institutes, The Global Competitiveness Report 2014–2015 offers users a unique dataset on a broad array of competitiveness indicators for 144 economies. The data used in the Report are obtained from leading international sources as well as from the World Economic Forum’s annual Executive Opinion Survey, a unique source that captures the perspectives of more than 14,000 business leaders on topics related to national competitiveness. The Report presents the rankings of the Global Competitiveness Index (GCI). The GCI is based on 12 pillars of competitiveness, providing a comprehensive picture of the competitiveness landscape in countries around the world at different stages of economic development. The Report contains detailed profiles highlighting competitive strengths and weaknesses for each of the 144 economies featured, as well as an extensive section of data tables displaying relative rankings for more than 100 variables. The Report and an interactive data platform are available at www.weforum.org/gcr. World Economic Forum 91-93 route de la Capite CH-1223 Cologny/Geneva Switzerland Tel +41 (0) 22 869 1212 Fax +41 (0) 22 786 2744 contact@weforum.org www.weforum.org