The Global Competitiveness Report 2016–2017

Transcription

1. Insight Report The Global Competitiveness Report 2016 –2017 Klaus Schwab, World Economic Forum
3. Insight Report The Global Competitiveness Report 2016 –2017 Professor Klaus Schwab World Economic Forum Editor Professor Xavier Sala-i-Martín Columbia University Chief Advisor of The Global Competitiveness Report
4. The Global Competitiveness Report 2016 –2017 is published by the World Economic Forum within the framework of the Global Competitiveness and Risks Team. Professor Klaus Schwab Executive Chairman Professor Xavier Sala-i-Martín Chief Advisor of The Global Competitiveness Report Richard Samans Head of the Centre for the Global Agenda and Member of the Managing Board Jennifer Blanke Chief Economist THE GLOBAL COMPETITIVENESS AND RISKS TEAM Margareta Drzeniek Hanouz, Head of Global Competitiveness and Risks Silja Baller, Practice Lead, Competitiveness and Innovation Ciara Browne, Head of Partnerships Roberto Crotti, Practice Lead, Competitiveness Research TERMS OF USE AND DISCLAIMER The Global Competitiveness Report 2016–2017 (herein: “Report”) presents information and data that were compiled and/or collected by the World Economic Forum (all information and data referred herein as “Data”). Data in this Report is subject to change without notice. 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. Although the World Economic Forum takes every reasonable step to ensure that the Data thus compiled and/or collected is accurately reflected in this Report, the World Economic Forum, its agents, officers, and employees: (i) provide the Data “as is, as available” and without warranty of any kind, either express or implied, including, without limitation, warranties of merchantability, fitness for a particular purpose and non-infringement; (ii) make no representations, express or implied, as to the accuracy of the Data contained in this Report or its suitability for any particular purpose; (iii) accept no liability for any use of the said Data or reliance placed on it, in particular, for any interpretation, decisions, or actions based on the Data in this Report. Attilio Di Battista, Quantitative Economist Caroline Galvan, Practice Lead, Competitiveness and Risks Thierry Geiger, Head of Analytics and Quantitative Research Daniel Gómez Gaviria, Head of Competitiveness Research Gaëlle Marti, Economist Stéphanie Verin, Community Specialist We thank Hope Steele for her superb editing work and Neil Weinberg for his excellent graphic design and layout. We are grateful to Miso Lee, Witold Mucha, and Hassen Naas for their invaluable research assistance. Other parties may have ownership interests in some of the Data contained in this Report. The World Economic Forum in no way represents or warrants that it owns or controls all rights in all Data, and the World Economic Forum will not be liable to users for any claims brought against users by third parties in connection with their use of any Data. The World Economic Forum, its agents, officers, and employees do not endorse or in any respect warrant any third-party products or services by virtue of any Data, material, or content referred to or included in this Report. Users shall not infringe upon the integrity of the Data and in particular shall refrain from any act of alteration of the Data that intentionally affects its nature or accuracy. If the Data is materially transformed by the user, this must be stated explicitly along with the required source citation. For Data compiled by parties other than the World Economic Forum, as specified in the “Technical Notes and Sources” section of this Report, users must refer to these parties’ terms of use, in particular concerning the attribution, distribution, and reproduction of the Data. World Economic Forum Geneva Copyright © 2016 by the World Economic Forum ISBN-13: 978-1-944835-04-0 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Printed and bound in Switzerland. The Report and an interactive data platform are available at www.weforum.org/gcr. When Data for which the World Economic Forum is the source (herein “World Economic Forum”), as specified in the “Technical Notes and Sources” section of this Report, is distributed or reproduced, it must appear accurately and be attributed to the World Economic Forum. This source attribution requirement is attached to any use of Data, whether obtained directly from the World Economic Forum or from a user. Users who make World Economic Forum Data available to other users through any type of distribution or download environment agree to make reasonable efforts to communicate and promote compliance by their end users with these terms. Users who intend to sell World Economic Forum Data as part of a database or as a standalone product must first obtain the permission from the World Economic Forum (gcp@weforum.org).
5. Contents Partner Institutes v Prefacexi by Richard Samans The Global Competitiveness Index 2016 –2017 Rankings xiii Part 1: Measuring Competitiveness 1 1.1 Competitiveness Agendas to Reignite Growth: Findings from the Global Competitiveness Index 3 by Xavier Sala-i-Martín, Silja Baller, Roberto Crotti, Attilio Di Battista, Margareta Drzeniek Hanouz, Thierry Geiger, Daniel Gómez Gaviria, and Gaëlle Marti 1.2 Modernizing the Measurement of Drivers of Prosperity in Light of the Fourth Industrial Revolution: The Updated Global Competitiveness Index 51 by Xavier Sala-i-Martín, Roberto Crotti, Silja Baller, Attilio Di Battista, Margareta Drzeniek Hanouz, Thierry Geiger, Daniel Gómez Gaviria, and Gaëlle Marti 1.3 The Executive Opinion Survey: The Voice of the Business Community 77 by Ciara Browne, Attilio Di Batista, Thierry Geiger, and Stéphanie Verin Part 2: Country/Economy Profiles 89 How to Read the Country/Economy Profiles 91 Index of Countries/Economies 93 Country/Economy Profiles 94 Technical Notes and Sources 371 About the Authors 381 The Global Competitiveness Report 2016–2017 | iii
7. Partner Institutes The World Economic Forum ’s Global Competitiveness and Risks Team is pleased to acknowledge and thank the following organizations as its valued Partner Institutes, without which the realization of The Global Competitiveness Report 2016–2017 would not have been feasible: Albania Institute for Contemporary Studies (ISB) Artan Hoxha, President Elira Jorgoni, Senior Expert Endrit Kapaj, Expert Algeria Centre de Recherche en Economie Appliquée pour le Développement (CREAD) Mohamed Yassine Ferfera, Director Khaled Menna, Research Fellow Argentina IAE—Universidad Austral Carlos Marcelo Belloni, 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 Australia Australian Industry Group Colleen Dowling, Economics Research Coordinator Julie Toth, Chief Economist Innes Willox, Chief Executive Austria Austrian Institute of Economic Research (WIFO) Christoph Badelt, Director Gerhard Schwarz, Coordinator, Survey Department Azerbaijan Azerbaijan Marketing Society Fuad Aliyev, Deputy Chairman Ashraf Hajiyev, Consultant Bahrain Bahrain Economic Development Board Khalid Al Rumaihi, Chief Executive Nada Azmi, Manager, Competitiveness Observatory Fatema Al Atbi, Junior Officer, Competitiveness Observatory Bangladesh Centre for Policy Dialogue (CPD) Khondaker Golam Moazzem, Additional Research Director Meherun Nesa, Research Associate Mustafizur Rahman, Executive Director Belgium Vlerick Business School Wim Moesen, Professor Carine Peeters, Professor Leo Sleuwaegen, Professor, Competence Centre Entrepreneurship, Governance and Strategy Benin Institut de Recherche Empirique en Economie Politique (IREEP) Richard Houessou, Research Associate Romaric Samson, Research Assistant Léonard Wantchekon, Director Bhutan Bhutan Chamber of Commerce & Industry (BCCI) Tshering Lhaden, NTM Desk Officer Phub Tshering, Secretary General Kesang Wangdi, Deputy Secretary General 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, Professor and Director FDC Innovation and Entrepreneurship Center Ana Burcharth, Associate Professor Fernanda Bedê, Research Assistant Brunei Darussalam Energy and Industry Department at the Prime Minister’s Office Awang Adi Shamsul bin Haji Sabli, Permanent Secretary of Industry University of Brunei Darussalam (UBD) Datin Dayang Hajah Anita Binurul Zahrina binti Pehin Orang Kaya Laila Wijaya Dato Seri Setia Haji Awang Abdul Aziz, Vice-Chancelllor Bulgaria Center for Economic Development Adriana Daganova, Expert, International Programmes and Projects Anelia Damianova, Senior Expert Barbados The Sir Arthur Lewis Institute of Social and Economic Studies Don. D. Marshall, Director The Global Competitiveness Report 2016–2017 | v
8. Partner Institutes Burundi Faculty of Economics and Management , Research Centre for Economic and Social Development (CURDES), National University of Burundi Ferdinand Bararuzunza, Director of the Centre Gilbert Niyongabo, Head of Department Léonidas Ndayizeye, Dean of the Faculty Cambodia Nuppun Institute for Economic Research (NUPPUN) Chakriya Heng, Administrative Assistant Pisey Khin, Director Chanthan Tha, Senior Research Assistant Cameroon Comité de Compétitivité (SELPI) Lucien Sanzouango, Permanent Secretary Guy Yakana, Expert Junior Samuel Znoumsi, Expert Senior Canada The Conference Board of Canada Michael R. Bloom, Vice President Jessica Edge, Senior Research Associate Natalie Verania, Marketing and Administrative Assistant Cape Verde Center for Applied Statistics and Econometrics Research – INOVE Júlio Delgado, Director Jerónimo Freire, Project Manager 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 Chen Wei, Division Director and Professor Li Xiaolin, Research Fellow Li Zhenjing, Deputy Director and Professor The 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 Simon Gaviria, Director National Planning Department Adriana Quiñones, Project Manager Andres Felipe Trejos, Director of Enterprise Development Colombian Private Council on Competitiveness Rosario Córdoba, President Rafael Puyana, Vice President Congo, Republic Democratic of Congo-Invest Consulting (CIC) Teza Bila, Managing Director Alphonse Mande, Project Coordinator Daddy Nsiku, Project Coordinator vi | The Global Competitiveness Report 2016–2017 Côte d’Ivoire Chamber of Commerce and Industry of Côte d’Ivoire Marie-Gabrielle Boka Varlet, General Manager Anzoumane Diabakate, Head of Communication Jean-Rock Kouadio-Kirine, Head of Territories and sustainable development Croatia National Competitiveness Council Jadranka Gable, Advisor Kresimir Jurlin, Research Fellow Cyprus European University of Cyprus Research Center Bambos Papageorgiou, Head of Socioeconomic & Academic Research Bank of Cyprus Public Company Ltd Maria Georgiadou, Consultant for Innovation & Entrepreneurship Charis Pouangare, Director of Corporate Banking and SME Czech Republic CMC Graduate School of Business Tomáš Janča, Executive Director Denmark Danish Technological Institute Hanne Shapiro, Innovation Director, Division for Business and Society Stig Yding Sørensen, Center Director, Center for Business and Policy Analysis Ecuador ESPAE Graduate School of Management, Escuela Superior Politécnica del Litoral (ESPOL) Virginia Lasio, Director Rafael Coello, Project Assistant Sara Wong, Professor Egypt The Egyptian Center for Economic Studies (ECES) Abla Abdel Latif, Executive Director and Director of Research Mohsen Adel, Consultant Maye Ehab, Economist Estonia Estonian Institute of Economic Research (EKI) Marje Josing, Director Enterprise Estonia (EAS) Hanno Tomberg, Chairman of the Board Ethiopia African Institute of Management, Development and Governance Tegegne Teka, Senior ExpertAdugna Girma, Operations Manager Finland ETLA—The Research Institute of the Finnish Economy Markku Kotilainen, Research Director Petri Rouvinen, Research Director Vesa Vihriälä, Managing Director France HEC Paris, HEC Paris Executive Education Inge Kerkloh-Devif, Executive Director, Global Business Development Armelle Dufour, Project Director, Global Initiatives Chloé Hayreaud, Project Manager, Global Business Development Gabon Confédération Patronale Gabonaise Madeleine E. Berre, President Regis Loussou Kiki, General Secretary Gina Eyama Ondo, Assistant General Secretary
9. Partner Institutes Gambia , The Gambia Economic and Social Development Research Institute (GESDRI) Makaireh A. Njie, Director Ireland Department of Jobs, Enterprise and Innovation, Competitiveness Unit, Strategic Policy Division Conor Hand, Economist, Senior Policy Analyst 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 Irish Business and Employers’ Confederation (IBEC) Fergal Obrien, Project Manager Germany WHU—Otto Beisheim School of Management Ralf Fendel, Professor, Chair of Monetary Economics Michael Frenkel, Professor, Chair of Macroeconomics and International Economics Ghana Association of Ghana Industries (AGI) James Asare-Adjei, President John Defor, Senior Policy Officer Seth Twum-Akwaboah, Chief Executive Officer Greece SEV Hellenic Federation of Enterprises Michael Mitsopoulos, Senior Advisor, Macroeconomic Analysis and European Policy Thanasis Printsipas, Associate Advisor, Macroeconomic Analysis and European Policy Guatemala FUNDESA Felipe Bosch G., President of the Board of Directors Juan Carlos Zapata, Chief Executive Officer Hong Kong SAR Hong Kong General Chamber of Commerce Rocky Tung, Senior Economist Hungary KOPINT-TÁRKI Economic Research Ltd. Éva Palócz, Chief Executive Officer Peter Vakhal, Project Manager Iceland Innovation Center Iceland Karl Fridriksson, Managing Director of Human Resources and Marketing Tinna Jóhannsdóttir, Marketing Manager Snaebjorn Kristjansson, Operational R&D Manager 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 Ida Busnetty, Vice Director Tulus Tambunan, 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 School of Economics, University College Cork Stephen Brosnan, Research Assistant Eleanor Doyle, Head of School Sean O’Connor, Research Assistant Israel Manufacturers Association of Israel (MAI) Dan Catarivas, Foreign Trade & International Relations Director Yehuda Segev, Managing Director Shraga Brosh, President Italy SDA Bocconi School of Management Paola Dubini, Associate Professor, Bocconi University Francesco A. Saviozzi, SDA Professor, Strategic and Entrepreneurial Management Department 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 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 Satoko Okawa, Project Manager Jordan Ministry of Planning and International Cooperation Imad Fakhouri, Minister Mukhallad Omari, Director of Policies and Strategies Kazakhstan National Analytical Centre Aktoty Aitzhanova, Chairperson Assylan Akimbayev, Researcher and Analyst Saule Gazizova, Head of Lab Kenya Institute for Development Studies, University of Nairobi Paul Kamau, Senior Research Fellow Dorothy McCormick, Research Professor Winnie Mitullah, Director and Associate Research Professor Korea, Republic of Korea Development Institute Joohoon Kim, Executive Director, Economic Information and Education Center Youngho Jung, Chief, Public Opinion Analysis Unit Seungjoo Lee, Senior Research Associate, Public Opinion Analysis Unit Kuwait Kuwait National Competitiveness Committee Adel Al-Husainan, Committee Member Fahed Al-Rashed, Committee Chairman Sayer Al-Sayer, Committee Member The Global Competitiveness Report 2016–2017 | vii
10. Partner Institutes Kyrgyz Republic Economic Policy Institute Lola Abduhametova , Program Coordinator Marat Tazabekov, Chairman Mauritius Board of Investment, Mauritius Manaesha Fowdar, Investment Executive, Competitiveness Ken Poonoosamy, Managing Director Lao PDR Enterprise & Development Consultants Co., Ltd Business Mauritius Raj Makoond, Director Latvia Stockholm School of Economics in Riga Arnis Sauka, Head of the Centre for Sustainable Development Mexico Center for Intellectual Capital and Competitiveness Erika Ruiz Manzur, Executive Director René Villarreal Arrambide, President and Chief Executive Tania Guiot, Director Lebanon Bader Young Entrepreneurs Program Fadi Bizri, Managing Director Sandrine Hachem, Programs Manager InfoPro, Research Department Lesotho Private Sector Foundation of Lesotho Nthati Mapitsi, Researcher Thabo Qhesi, Chief Executive Officer Kutloano Sello, President, Researcher 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 Luxembourg Luxembourg Chamber of Commerce Carlo Thelen, Chief Economist, Director General Lynn Zoenen, Research Analyst Ricarda Braun, Research Analyst Macedonia, FYR National Entrepreneurship and Competitiveness Council of the Republic of Macedonia – NECC of RM Dejan Janevski, Project Coordinator Viktorija Mitrikjeska, Administrative Officer Madagascar Centre of Economic Studies, University of Antananarivo Ravelomanana Mamy Raoul, Director Razato Rarijaona Simon, Executive Secretary Malawi Malawi Confederation of Chambers of Commerce and Industry Hope Chavula, Manager, Head, Public Private Dialogue Chancellor L. Kaferapanjira, Chief Executive Officer Malaysia Malaysia Productivity Corporation (MPC) Zainon Bakar, Director Mohd Razali Hussain, Director General Abdul Latif Abu Seman, Deputy Director General Mali Groupe de Recherche en Economie Appliquée et Théorique (GREAT) Massa Coulibaly, Executive Director Malta Competitive Malta Matthew Castillo, Board Secretary Margrith Lütschg-Emmenegger, President Mauritania Mauritania Bicom-Service Commercial Oumou El Khairy Youssouf, Administrative Financial Director Ousmane Samb, Technical and Marketing Director Habib Sy, Analyst viii | The Global Competitiveness Report 2016–2017 Instituto Mexicano para la Competitividad (IMCO) Gabriela Alarcón, Research Director Juan E. Pardinas, General Director Mariana Tapia, Researcher Ministry of the Economy María del Rocío Ruiz Chávez, Undersecretary for Competitiveness and Standardization Francisco Javier Anaya Rojas, Technical Secretary for Competitiveness Daniel Zaga Szenker, Deputy General Director Moldova Academy of Economic Studies of Moldova (AESM) Grigore Belostecinic, Rector Institute of Economic Research and European Studies (IERES) Corneliu Gutu, Director Mongolia Open Society Forum (OSF), Mongolia Oyunbadam Davaakhuu, Manager of Economic Policy Program Erdenejargal Perenlei, Executive Director Montenegro Institute for Strategic Studies and Prognoses (ISSP) Maja Drakic Grgur, Project Manager Jadranka Kaludjerovic, Program Director Veselin Vukotic, President 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 Mozambique EconPolicy Research Group, Lda. Peter Coughlin, Director Mwikali Kieti, Project Coordinator Namibia Institute for Public Policy Research (IPPR) Graham Hopwood, Executive Director Leon Kufa, Research Associate Lizaan van Wyk, Research Associate Nepal Competitiveness and Development Institute (CODE) Ramesh Chandra Chitrakar, Professor, Country Coordinator and Project Director Rabindra Mananda Bajracharya, Team Member Menaka Shrestha, Team Member Netherlands INSCOPE: Research for Innovation, Erasmus University Rotterdam Henk W. Volberda, Director and Professor New Zealand BusinessNZ Phil O’Reilly, Chief Executive
11. Partner Institutes Nigeria Nigerian Economic Summit Group (NESG) Olaoye Jaiyeola, Chief Executive Officer Olajiire Onatade-Abati, Research Analyst Wilson Erumebor, Research Analyst Norway BI Norwegian Business School Marius Kristian Nordkvelde, Research Coordinator Ole Jakob Ramsøy, Researcher Torger Reve, Professor Oman The International Research Foundation Azzan Qassim Al-Busaidi, Director General of Planning and Studies Pakistan Mishal Pakistan Puruesh Chaudhary, Director Content Amir Jahangir, Chief Executive Officer 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) Peter Angelo V. Perfecto, Executive Director Anthony Patrick D. Chua, Special Services Unit Director Mary Elizabeth A. Bautista, Programs Officer Management Association of the Philippines (MAP) Perry L. Pe, President Arnold P. Salvador, Executive Director Poland Department of Financial Stability, National Bank of Poland Piotr Boguszewski, Advisor Jacek Osinski, Director Portugal PROFORUM, Associação para o Desenvolvimento da Engenharia Ilídio António de Ayala Serôdio, President of the Board of Directors 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 Qatar Qatari Businessmen Association (QBA) Sarah Abdallah, Deputy General Manager Issa Abdul Salam Abu Issa, Secretary-General Social and Economic Survey Research Institute (SESRI) Hanan Abdul Rahim, Associate Director Darwish Al-Emadi, Director Raymond Carasig, Contracts and Grants Administrator Romania Association for Women Entrepreneurship Development (ADAF) Cornelia Rotaru, President Russian Federation Eurasia Competitiveness Institute (ECI) Katerina Marandi, Programme Manager Alexey Prazdnichnykh, Managing Director Rwanda Private Sector Federation (PSF) Benjamin Gasamagera, Chairman Fiona Uwera, Head of Research and Policy Analysis Saudi Arabia Alfaisal University Mohammed Kafaji, Assistant Professor National Competitiveness Center (NCC) Saud bin Khalid Al-Faisal, President Khaldon Zuhdi Mahasen, Managing Director Senegal Centre de Recherches Economiques Appliquées (CREA), University of Dakar Ahmadou Aly Mbaye, Director Ndiack Fall, Deputy Director Youssou Camara, Administrative Staff Serbia Foundation for the Advancement of Economics (FREN) Aleksandar Radivojevic, Project Coordinator Svetozar Tanaskovic, Researcher Jelena Zarkovic Rakic, Director Singapore Economic Development Board Thien Kwee Eng, Assistant Managing Director, Planning Cheng Wai San, Director, Research & Statistics Unit Teo Xinyu, Executive, Research & Statistics Unit Slovak Republic Business Alliance of Slovakia (PAS) Peter Kremsky, Executive Director Slovenia Institute for Economic Research Peter Stanovnik, Professor Sonja Uršic, Senior Research Assistant University of Ljubljana, Faculty of Economics Mateja Drnovšek, Professor Kaja Rangus, Teaching Assistant South Africa Business Leadership South Africa Friede Dowie, General Manager Thero Setiloane, Chief Executive Officer Business Unity South Africa Khanyisile Kweyama, Chief Executive Officer Olivier Serrao, 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) Raveen Ekanayake, Research Officer Kithmina Hewage, Research Assistant Saman Kelegama, Executive Director Sweden International University of Entrepreneurship and Technology Association (IUET) Thomas Andersson, President In partnership with Deloitte Sweden The Global Competitiveness Report 2016–2017 | ix
12. Partner Institutes Switzerland University of St . Gallen, Executive School of Management, Technology and Law (ES-HSG) Rubén Rodriguez Startz, Head of Project Tobias Trütsch, Communications Manager United Kingdom LSE Enterprise Ltd Adam Austerfield, Project Director Elitsa Garnizova, Project Manager and Researcher Robyn Klingler-Vidra, Senior Researcher Taiwan, China National Development Council Shien-Quey Kao, Deputy Minister Chung-Chung Shieh, Researcher, Economic Research Department Minghuei Wu, Director, Economic Research Department Uruguay Universidad ORT Uruguay Bruno Gili, Professor Isidoro Hodara, Professor Tajikistan Center of Sociological Research “Zerkalo” Qahramon Baqozoda, Director Tanzania Policy Research for Development, REPOA Cornel Jahari, Assistant Researcher Blandina Kilama, Senior Researcher Donald Mmari, Executive Director Thailand Chulalongkorn Business School, Chulalongkorn University Pasu Decharin, Dean Siri-on Setamanit, Assistant Dean Trinidad and Tobago Arthur Lok Jack Graduate School of Business Miguel Carillo, Executive Director and Professor of Strategy Nirmala Maharaj, Director, Internationalisation and Institutional Relations 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 Federal Competitiveness and Statistics Authority H.E. Abdulla Nasser Lootah, Director General Department of Economic Development—Abu Dhabi, Competitiveness Office of Abu Dhabi H.E. khaleefa Salem Al Mansouri, Undersecretary Department of Economic Development—Dubai, Competitiveness Office H.E. Khaled Ibrahim Al kassim, Director of Dubai Competitiveness Office Zayed University Mouawiya Al Awad, Director of Institute of Social and Economic Research x | The Global Competitiveness Report 2016–2017 Venezuela CONAPRI—The Venezuelan Council for Investment Promotion Litsay Guerrero, Economic Affairs and Investor Services Manager Eduardo Porcarelli, Executive Director Vietnam Ho Chi Minh Institute for Development Studies (HIDS) Tran Anh Tuan, Acting Director Du Phuoc Tan, Head of Urban Management Studies Department Trieu Thanh Son, Deputy Head of Research Management and Cooperation Department Yemen Yemeni Business Club (YBC) Fathi Abdulwasa Hayel Saeed, Chairman Mohammed Ismail Hamanah, Executive Director Ghadeer Ahmed Almaqhafi, 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 Fulham Economics, Harare A. M. Hawkins, Chairman Bolivia, Costa Rica, Dominican Republic, 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
13. Preface RICHARD SAMANS Head of the Centre for the Global Agenda and Member of the Managing Board , World Economic Forum The Global Competitiveness Report 2016–2017 is being launched at a time of rising income inequality, mounting social and political tensions, and a general feeling of uncertainty about the future. Growth remains persistently low: commodity prices have fallen, as has trade; external imbalances are increasing; and government finances are stressed. However, it also comes during one of the most prosperous and peaceful times in recorded history, with less disease, poverty, and violent conflict than ever before. Against this backdrop of seeming contradictions, the Fourth Industrial Revolution brings both unprecedented opportunity and an accelerated speed of change. Creating the conditions necessary to reignite growth could not be more urgent. The Report this year is the latest edition of the Forum’s longstanding cross-country benchmarking analysis of the factors and institutions that determine long-term growth and prosperity. Incentivizing innovation is especially important for finding new growth engines, but laying the foundations for long-term, sustainable growth requires working on all factors and institutions identified in the Global Competitiveness Index. Leveraging the opportunities of the Fourth Industrial Revolution will require not only businesses willing and able to innovate, but also sound institutions, both public and private; basic infrastructure, health, and education; macroeconomic stability; and well-functioning labor, financial, and human capital markets. Although there is broad consensus on the importance of the factors currently measured in the Index, we are undertaking a review process that seeks to understand the impact of the Fourth Industrial Revolution on measures of productivity and the drivers of growth. In the second chapter of this Report, we present our thinking regarding the potential future structure of the Index, building on consultations with experts on each pillar under the thought leadership of our main academic advisor, Professor Xavier Sala-i-Martín. It explores new ways of assessing innovation, human capital, and competitiveness at different stages of development, as well as our latest thinking on how our benchmarking tools can be used for policy prioritization. We face a large challenge—how to build a more prosperous and inclusive world for all. As a flagship effort of the Forum’s System Initiative on Economic Growth and Social Inclusion, The Global Competitiveness Report serves as a tool for public-private collaboration on long-term competitiveness agendas contributing to this objective. As well as the thought leadership of Professor Sala-i-Martín, The Global Competitiveness Report 2016–2017 has benefited from the dedication and collaboration of 160 Partner Institutes worldwide. We would like to convey our appreciation to all the business executives who respond to our Executive Opinion Survey, one of the unique components of the Index. Appreciation also goes to Professor Klaus Schwab, Executive Chairman, who developed the original concept back in 1979; Jennifer Blanke, Chief Economist; Margareta Drzeniek Hanouz, Head of Global Competitiveness and Risks; and team members Silja Baller, Attilio Di Battista, Ciara Browne, Roberto Crotti, Caroline Galvan, Thierry Geiger, Daniel Gómez Gaviria, Gaëlle Marti, and Stéphanie Verin. The Global Competitiveness Report 2016–2017 | xi
15. The Global Competitiveness Index 2016 –2017 Rankings Economy Score1 Prev.2 Trend3 Economy Score1 Prev.2 1 Switzerland 5.81 1 47 2 Singapore 5.72 2 48 South Africa 4.47 49 Bahrain 4.47 39 3 United States 5.70 3 49 Latvia 4.45 44 4 Netherlands 5.57 5 50 Bulgaria 4.44 5 Germany 5.57 4 51 Mexico 6 Sweden 5.53 7 United Kingdom 5.49 9 52 10 53 8 Japan 5.48 6 Trend3 Economy Score1 Prev.2 93 Lao PDR 3.93 83 94 Trinidad and Tobago 3.93 89 95 Tunisia 3.92 92 54 96 Kenya 3.90 99 4.41 57 97 Bhutan 3.87 105 Rwanda 4.41 58 98 Nepal 3.87 100 Kazakhstan 4.41 42 99 Côte d’Ivoire 3.86 91 54 Costa Rica 4.41 52 100 Moldova 3.86 84 9 Hong Kong SAR 5.48 7 55 Turkey 4.39 51 101 Lebanon 3.84 101 10 Finland 5.44 8 56 Slovenia 4.39 59 102 Mongolia 3.84 104 11 Norway 5.44 11 57 Philippines 4.36 47 103 Nicaragua 3.81 108 12 Denmark 5.35 12 58 Brunei Darussalam 4.35 n/a 104 Argentina 3.81 106 13 New Zealand 5.31 16 59 Georgia 4.32 66 105 El Salvador 3.81 95 14 Taiwan, China 5.28 15 60 Vietnam 4.31 56 106 Bangladesh 3.80 107 15 Canada 5.27 13 61 Colombia 4.30 61 107 Bosnia & Herzegovina 3.80 111 16 United Arab Emirates 5.26 17 62 Romania 4.30 53 108 Gabon 3.79 103 109 17 Belgium 5.25 19 63 Jordan 4.29 64 109 Ethiopia 3.77 18 Qatar 5.23 14 64 Botswana 4.29 71 110 Cape Verde 3.76 112 19 Austria 5.22 23 65 Slovak Republic 4.28 67 111 Kyrgyz Republic 3.75 102 20 Luxembourg 5.20 20 66 Oman 4.28 62 112 Senegal 3.74 110 21 France 5.20 22 67 Peru 4.23 69 113 Uganda 3.69 115 22 Australia 5.19 21 68 Macedonia, FYR 4.23 60 114 Ghana 3.68 119 23 Ireland 5.18 24 69 Hungary 4.20 63 115 Egypt 3.67 116 24 Israel 5.18 27 70 Morocco 4.20 72 116 Tanzania 3.67 120 118 25 Malaysia 5.16 18 71 Sri Lanka 4.19 68 117 Paraguay 3.65 26 Korea, Rep. 5.03 26 72 Barbados 4.19 n/a 118 Zambia 3.60 96 27 Iceland 4.96 29 73 Uruguay 4.17 73 119 Cameroon 3.58 114 28 China 4.95 28 74 Croatia 4.15 77 120 Lesotho 3.57 113 29 Saudi Arabia 4.84 25 75 Jamaica 4.13 86 121 Bolivia 3.54 117 30 Estonia 4.78 30 76 Iran, Islamic Rep. 4.12 74 122 Pakistan 3.49 126 31 Czech Republic 4.72 31 77 Tajikistan 4.12 80 123 Gambia, The 3.47 123 32 Spain 4.68 33 78 Guatemala 4.08 78 124 Benin 3.47 122 33 Chile 4.64 35 79 Armenia 4.07 82 125 Mali 3.46 127 34 Thailand 4.64 32 80 Albania 4.06 93 126 Zimbabwe 3.41 125 3.39 124 130 35 Lithuania 4.60 36 81 Brazil 4.06 75 127 Nigeria 36 Poland 4.56 41 82 Montenegro 4.05 70 128 Madagascar 3.33 37 Azerbaijan 4.55 40 83 Cyprus 4.04 65 129 Congo, Democratic Rep. 3.29 n/a 38 Kuwait 4.53 34 84 Namibia 4.02 85 130 Venezuela 3.27 132 39 India 4.52 55 85 Ukraine 4.00 79 131 Liberia 3.21 129 40 Malta 4.52 48 86 Greece 4.00 81 132 Sierra Leone 3.16 137 41 Indonesia 4.52 37 87 Algeria 3.98 87 133 Mozambique 3.13 133 42 Panama 4.51 50 88 Honduras 3.98 88 134 Malawi 3.08 135 43 Russian Federation 4.51 45 89 Cambodia 3.98 90 135 Burundi 3.06 136 44 Italy 4.50 43 90 Serbia 3.97 94 136 Chad 2.95 139 45 Mauritius 4.49 46 91 Ecuador 3.96 76 137 Mauritania 2.94 138 46 Portugal 4.48 38 92 Dominican Republic 3.94 98 138 Yemen 2.74 n/a East Asia and the Pacific Eurasia Europe Latin America and the Caribbean Middle East and North Africa North America South Asia Trend3 Sub-Saharan Africa Note: The Global Competitiveness Index captures the determinants of long-term growth. Recent developments (such as Brexit, commodity price changes, and market volatility) are reflected only in-so-far as they have an impact on data measuring these determinants. The Index should be interpreted in this context. 1 Scale ranges from 1 to 7. 2 2015-2016 rank out of 140 economies. 3 Evolution in percentile rank since 2007. The Global Competitiveness Report 2016–2017 | xiii
17. Part 1 Measuring Competitiveness
19. CHAPTER 1 .1 Competitiveness Agendas to Reignite Growth: Findings from the Global Competitiveness Index XAVIER SALA-I-MARTÍN Columbia University SILJA BALLER ROBERTO CROTTI ATTILIO DI BATTISTA MARGARETA DRZENIEK HANOUZ THIERRY GEIGER DANIEL GÓMEZ GAVIRIA GAËLLE MARTI World Economic Forum The Global Competitiveness Report 2016–2017 comes out in the context of persistent slow growth and a nearterm outlook that is fraught with renewed uncertainty fueled by continued geopolitical turmoil, financial market fragility, and sustained high debt levels in emerging markets. Despite unorthodox monetary policy, global GDP growth has fallen from levels of 4.4 percent in 2010 to 2.5 percent in 2015. This fall in growth reflects not only the productivity slowdown documented in last year’s Report, which has continued during 2016, but also what now seems like a long-term downward trend in investment rates.1 Future growth prospects are constrained by longerterm trends. Many economies around the world struggle with the double challenges of slowing productivity growth and rising income inequality, often exacerbated by rapidly aging societies. Stagnating and unequally distributed income growth in turn has opened the door to more inward-looking policies, mounting protectionist pressures, and a general questioning of the premises underlying globalization in many economies—most visibly embodied in the recent Brexit vote. At the same time, in emerging markets, the end of the commodity supercycle has led to an abrupt economic slowdown that has exposed the slow pace or lack of competitivenessenhancing reforms in recent years, which could increase polarization and threaten social cohesion. On the bright side, tremendous promise for higher economic growth and societal progress dawns with the Fourth Industrial Revolution.2 Based on digital platforms, the Fourth Industrial Revolution is characterized by a convergence of technologies that is blurring the lines between the physical, digital, and biological spheres (Box 1). Breakthroughs in technologies such as artificial intelligence, biotechnology, robotics, the Internet of Things, and 3D printing, to name a few, will provide new avenues for growth and development in the future but could also give rise to significant social challenges. The political and ideological constraints placed on fiscal policy in the wake of the financial crisis left monetary policy as the only option for governments in advanced economies to try to avert secular stagnation.3 Although this may have been successful in stabilizing growth in the short term, ensuring a higher future growth path will necessitate continued competitivenessenhancing supply-side reforms and investment to strengthen productive sectors. And as the Fourth Industrial Revolution is gathering speed, it will be increasingly important to support the emergence of new sectors of economic activity through competitiveness reforms that foster innovation. Yet, as the Global The authors would like to thank Miso Lee for research support for this Report. The Global Competitiveness Report 2016–2017 | 3
20. 1 .1: Findings from the Global Competitiveness Index Box 1: The Fourth Industrial Revolution We are at the beginning of a global transformation that is characterized by the convergence of digital, physical, and biological technologies in ways that are changing both the world around us and our very idea of what it means to be human. The changes are historic in terms of their size, speed, and scope. This transformation—the Fourth Industrial Revolution—is not defined by any particular set of emerging technologies themselves, but rather by the transition to new systems that are being built on the infrastructure of the digital revolution. As these individual technologies become ubiquitous, they will fundamentally alter the way we produce, consume, communicate, move, generate energy, and interact with one another. And given the new powers in genetic engineering and neurotechnologies, they may directly impact who we are and how we think and behave. The fundamental and global nature of this revolution also poses new threats related to the disruptions it may cause—affecting labor markets and the future of work, income inequality, and geopolitical security as well as social value systems and ethical frameworks. Adapted from Klaus Schwab, The Fourth Industrial Revolution, 2016. Competitiveness Index (GCI) shows, to date, progress in building an enabling environment for innovation remains the advantage of only a few economies. Last but not least, future growth will also depend on the ability of economies to safeguard the benefits of openness to trade and investment that has led to record reductions in poverty rates in recent decades.4 Against this background, this Report serves as a critical reminder of the importance of competitiveness in solving both our international macroeconomic challenges and laying the ground for future prosperity. Recovering growth in the context of the Fourth Industrial Revolution will require the recognition that policymakers need a shared assessment and understanding of the future sources of competitiveness. By reducing complexity and providing a tool to identify strengths and weaknesses and track progress, the Report serves as a means to inform this conversation and to support policymakers, businesses, and civil society in their development of a shared long-term vision (see Box 2 for two examples of how the Report is being used). In the next section of this chapter we present the methodology and framework underpinning the GCI. It is followed by an overview of the results, where we develop the key findings. The chapter continues by exploring regional highlights, showing great differences within regions and their main competitiveness gaps, trends, and challenges. Highlights for selected economies in the top 10 of the rankings, G20 economies, and countries 4 | The Global Competitiveness Report 2016–2017 selected for World Economic Regional Summits in 2017 follow. The second chapter presents the framework of the modernized Global Competitiveness Index and some preliminary results, building on work presented in The Global Competitiveness Report 2015–2016. It highlights new indicators, new concepts of innovation, new approaches to measuring human capital, and a new approach to policy prioritization. The third chapter describes the Executive Opinion Survey, an invaluable and unique source of current data from which we derive a large number of indicators used in the GCI. The Country/Economy Profiles section at the end of the Report presents the detailed GCI results by economy and is a useful complement to the present chapter.5 METHODOLOGY We define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of an economy, which in turn sets the level of prosperity that the country can achieve. Since 2005, building on Klaus Schwab’s original idea of 1979, the World Economic Forum has published the Global Competitiveness Index (GCI) developed by Xavier Sala-i-Martín in collaboration with the Forum. The GCI combines 114 indicators that capture concepts that matter for productivity and long-term prosperity (described in greater detail in Appendix A). These indicators are grouped into 12 pillars (Figure 1): 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. These pillars are in turn organized into three subindexes: basic requirements, efficiency enhancers, and innovation and sophistication factors. The three subindexes are given different weights in the calculation of the overall Index, depending on each economy’s stage of development, as proxied by its GDP per capita and the share of exports represented by raw materials. Appendix A presents a description of each pillar, a classification of economies by stage of development, the detailed structure of the GCI, and a description of the various steps of its computation, including normalization and aggregation.6 The GCI includes statistical data from internationally recognized organizations, notably the International Monetary Fund (IMF); the World Bank; and various United Nations’ specialized agencies, including the International Telecommunication Union, UNESCO, and the World Health Organization. The Index also includes indicators derived from the World Economic Forum’s Executive Opinion Survey that reflect qualitative aspects of competitiveness, or for which comprehensive and
21. 1 .1: Findings from the Global Competitiveness Index 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.Market sizesize Pillar 10. Market Key for Key for Key for factor-driven efficiency-driven innovation-driven economies economies economies See Appendix A for the detailed structure of the GCI. comparable statistical data are not available for a sufficiently large number of economies (see Chapter 1.3). The Report this year covers 138 economies included based on data availability. Some have been reinstated in the 2016 edition of the Survey after one or more years of exclusion. These are Barbados and Yemen (last included in 2014) and Brunei Darussalam (last included in 2013). For the first time ever, the Survey was administered in the Democratic Republic of Congo. However, it was not completed to minimum requirements in Guinea, Guyana, Haiti, Myanmar, Seychelles, and Swaziland. For this reason, these economies are not included in this year’s edition of the Report. Altogether, the combined output of the economies covered in the GCI accounts for 98 percent of world GDP.7 RESULTS OVERVIEW AND MAIN FINDINGS Table 1 presents the rankings of the GCI 2016–2017 and Appendix B reports the rankings by pillar and subindex. Many of the competitiveness challenges we see today stem from the aftermath of the financial crisis. Today, productivity and growth are not picking up in advanced economies, and the consequences of low and even negative productivity growth in many emerging economies are now evident. The great recession led many advanced economies to implement very loose monetary policy, which in turn fueled a global commodities boom (Box 3) that masked many of the competitiveness challenges of commodity-exporting emerging markets. Vulnerability to commodity price fluctuations in emerging economies and the promises of the Fourth Industrial Revolution underscore the importance of innovation as a source of competitiveness and economic diversification to reignite growth. Against this background, it is clear that (1) monetary stimulus is not enough to reignite growth if economies are not competitive, (2) an increasingly important element of competitiveness is creating an enabling environment for innovation, and (3) innovation in turn goes hand in hand with openness and economic integration. Monetary policy is not enough: Insufficient competitiveness is a constraint for reigniting growth worldwide In the aftermath of the 2007–2009 financial crisis, many central banks and governments have resorted to monetary policy to try to jumpstart growth. However, near-zero or negative real interest rates have left little further scope for traditional monetary policy, and quantitative easing—the process of buying assets and increasing the size of central bank balance sheets—has delivered mixed results in spurring growth. The Global Competitiveness Report 2016–2017 | 5
22. 1 .1: Findings from the Global Competitiveness Index Box 2: The Global Competitiveness Index as a public policy tool The Global Competitiveness Report, published since 1979, aims to serve as a neutral and objective tool for governments, the private sector, and civil society to work together on effective public-private collaboration to boost future prosperity. By benchmarking each year’s progress on different factors and institutions that matter for future growth, the Report keeps competitiveness on the public agenda, provides a focal point for the discussion of long-term competitiveness policies, and helps to keep stakeholders accountable. The ability to compare 138 economies on a variety of indicators helps them to assess gaps and priority areas and to construct joint, public-private agendas to address them. The annual updating of the Index allows countries to track their progress and reassess their agendas, adjusting them if necessary. Some countries have used the Index to build entire competitiveness systems and formally organize their institutions for competitiveness, as illustrated by two examples from Latin America and the Caribbean: the Dominican Republic and Colombia. The Dominican Republic In 2014, a group of leading Dominican business leaders began discussions about increasing the country’s competitiveness levels, and mitigating the risks it faces, through a public-private partnership. In August 2015, the Initiative for National Productivity and Competitiveness (IPCN in Spanish) was created by presidential decree and tasked with identifying and promoting actions and reforms that would strengthen productivity and competitiveness.1 The IPCN comprises 35 business leaders and five government ministers: the Minister of the Presidency; the Minister of Industry and Commerce; the Minister of Economics, Planning and Development; the Minister of Finance; and the Administrative Minister of the Presidency. Members of the IPCN agreed to use globally recognized indicators, particularly the Global Competitiveness Index (GCI), to set common goals and coordinate actions between the public and private sectors through three mechanisms: • Nine working groups, organized around the GCI’s 12 pillars of competitiveness, are responsible for formulating action plans and proposals—with priority given to the groups working on pillars on which the Dominican Republic is underperforming. After the first working period, 15 projects were selected, including legal reforms to facilitate creating businesses, a digital platform for import and export procedures, structural changes to improve the transportation system, adjustments to quality control processes, and amendments to taxation legislation. • The Ventanilla de Consultas is an online platform that serves as a communication channel between the public and the IPCN—any citizen may propose actions to improve national or regional competitiveness and productivity. So far this has led to the creation of a commission to aid the private sector in its preparations for an evaluation by the Financial Action Task Force, and to a presidential decree protecting low-income homeowners from new tax legislation. 6 | The Global Competitiveness Report 2016–2017 • The Public-Private Partnerships Promotion Unit identifies and evaluates public-private investment projects that could have a large impact on national development, benchmarking them against international PPP best practices. A new PPP law is being written by a team of experts, including the IPCN’s technical support committee and other members of the public and private sectors. Colombia The National System of Competitiveness (SNC) was established in 2006 to coordinate the activities of Colombia’s national government with the private sector, academia, and civil society on issues related to productivity and economic development. Regional Commissions for Competitiveness (RCCs) were also created, to coordinate policy implementation. Within this system, the Private Competitiveness Council was launched by a group of large Colombian firms and universities to be the voice of the private sector. The Council now constitutes the system’s think tank, and uses tools such as The Global Competitiveness Report.2 The system is coordinated by a Presidential Adviser for Competitiveness and Innovation and led by an Executive Committee composed of three government officials (the Minister of Trade and Industry, the Director of National Planning, and the Director of Colciencias [the National Administrative Department for Science, Technology and Innovation]) and two representatives from the private sector (President of the Private Competitiveness Council and President of Confecamaras [the Business Association of Chambers of Commerce]). The Executive Committee also coordinates work with the RCCs and presents annual reports to the National Competitiveness Assembly. In an ongoing effort to improve capacity to make progress on the competitiveness agenda, the system was recently merged with the Science, Technology and Innovation System; a project management model was implemented; and governance was revamped to better coordinate with the regions and improve empowerment and accountability by introducing a requirement for the Executive Committee to report to the full Council of Ministers. The system has successfully improved coordination among government agencies, producing a policy document on productive development and implementing an 11-point competitiveness agenda with concrete projects and accountability. Notes 1 Text for this section is contributed by Members of the CTA (Comité Tecnico de apoyo de la Iniciativa para la Productividad y Competitividad Nacional-IPCN) and Rafael Esteva, Researcher from Grupo Privado para la Competitividad Nacional from the Dominican Republic. 2 This text draws on the article by Jaime Bueno Miranda “How Can Colombia Become More Competitive?“ available at https://www. weforum.org/agenda/2016/06/how-colombia-has-become-morecompetitive/.
23. 1 .1: Findings from the Global Competitiveness Index Table 1: Global Competitiveness Index 2016–2017 rankings and 2015–2016 comparisons GCI 2016–2017 Country/Economy Switzerland Singapore United States Netherlands Germany Sweden United Kingdom Japan Hong Kong SAR Finland Norway Denmark New Zealand Taiwan, China Canada United Arab Emirates Belgium Qatar Austria Luxembourg France Australia Ireland Israel Malaysia Korea, Rep. Iceland China Saudi Arabia Estonia Czech Republic Spain Chile Thailand Lithuania Poland Azerbaijan Kuwait India Malta Indonesia Panama Russian Federation Italy Mauritius Portugal South Africa Bahrain Latvia Bulgaria Mexico Rwanda Kazakhstan Costa Rica Turkey Slovenia Philippines Brunei Darussalam Georgia Vietnam Colombia Romania Jordan Botswana Slovak Republic Oman Peru Macedonia, FYR Hungary GCI 2015–2016 Rank (out of 138) Score (1–7) Rank (out of 140) Score (1–7) 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 5.81 5.72 5.70 5.57 5.57 5.53 5.49 5.48 5.48 5.44 5.44 5.35 5.31 5.28 5.27 5.26 5.25 5.23 5.22 5.20 5.20 5.19 5.18 5.18 5.16 5.03 4.96 4.95 4.84 4.78 4.72 4.68 4.64 4.64 4.60 4.56 4.55 4.53 4.52 4.52 4.52 4.51 4.51 4.50 4.49 4.48 4.47 4.47 4.45 4.44 4.41 4.41 4.41 4.41 4.39 4.39 4.36 4.35 4.32 4.31 4.30 4.30 4.29 4.29 4.28 4.28 4.23 4.23 4.20 1 2 3 5 4 9 10 6 7 8 11 12 16 15 13 17 19 14 23 20 22 21 24 27 18 26 29 28 25 30 31 33 35 32 36 41 40 34 55 48 37 50 45 43 46 38 49 39 44 54 57 58 42 52 51 59 47 n/a 66 56 61 53 64 71 67 62 69 60 63 5.76 5.68 5.61 5.50 5.53 5.43 5.43 5.47 5.46 5.45 5.41 5.33 5.25 5.28 5.31 5.24 5.20 5.30 5.12 5.20 5.13 5.15 5.11 4.98 5.23 4.99 4.83 4.89 5.07 4.74 4.69 4.59 4.58 4.64 4.55 4.49 4.50 4.59 4.31 4.39 4.52 4.38 4.44 4.46 4.43 4.52 4.39 4.52 4.45 4.32 4.29 4.29 4.48 4.33 4.37 4.28 4.39 n/a 4.22 4.30 4.28 4.32 4.23 4.19 4.22 4.25 4.21 4.28 4.25 GCI 2016–2017 Country/Economy Morocco Sri Lanka Barbados Uruguay Croatia Jamaica Iran, Islamic Rep. Tajikistan Guatemala Armenia Albania Brazil Montenegro Cyprus Namibia Ukraine Greece Algeria Honduras Cambodia Serbia Ecuador Dominican Republic Lao PDR Trinidad and Tobago Tunisia Kenya Bhutan Nepal Côte d'Ivoire Moldova Lebanon Mongolia Nicaragua Argentina El Salvador Bangladesh Bosnia and Herzegovina Gabon Ethiopia Cape Verde Kyrgyz Republic Senegal Uganda Ghana Egypt Tanzania Paraguay Zambia Cameroon Lesotho Bolivia Pakistan Gambia, The Benin Mali Zimbabwe Nigeria Madagascar Congo, Democratic Rep. Venezuela Liberia Sierra Leone Mozambique Malawi Burundi Chad Mauritania Yemen GCI 2015–2016 Rank (out of 138) Score (1–7) Rank (out of 140) Score (1–7) 70 4.20 72 4.16 71 72 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 4.19 4.19 4.17 4.15 4.13 4.12 4.12 4.08 4.07 4.06 4.06 4.05 4.04 4.02 4.00 4.00 3.98 3.98 3.98 3.97 3.96 3.94 3.93 3.93 3.92 3.90 3.87 3.87 3.86 3.86 3.84 3.84 3.81 3.81 3.81 3.80 3.80 3.79 3.77 3.76 3.75 3.74 3.69 3.68 3.67 3.67 3.65 3.60 3.58 3.57 3.54 3.49 3.47 3.47 3.46 3.41 3.39 3.33 3.29 3.27 3.21 3.16 3.13 3.08 3.06 2.95 2.94 2.74 68 n/a 73 77 86 74 80 78 82 93 75 70 65 85 79 81 87 88 90 94 76 98 83 89 92 99 105 100 91 84 101 104 108 106 95 107 111 103 109 112 102 110 115 119 116 120 118 96 114 113 117 126 123 122 127 125 124 130 n/a 132 129 137 133 135 136 139 138 n/a 4.21 n/a 4.09 4.07 3.97 4.09 4.03 4.05 4.01 3.93 4.08 4.20 4.23 3.99 4.03 4.02 3.97 3.95 3.94 3.89 4.07 3.86 4.00 3.94 3.93 3.85 3.80 3.85 3.93 4.00 3.84 3.81 3.75 3.79 3.87 3.76 3.71 3.83 3.74 3.70 3.83 3.73 3.66 3.58 3.66 3.57 3.60 3.87 3.69 3.70 3.60 3.45 3.48 3.55 3.44 3.45 3.46 3.32 n/a 3.30 3.37 3.06 3.20 3.15 3.11 2.96 3.03 n/a Source: Authors' calculations. Note: The Global Competitiveness Index captures the determinants of long-term growth. Recent developments (for example, Brexit, commodity price changes, and market volatility) are reflected only in so far as they have an impact on the data measuring these determinants. The Index should be interpreted in this context. See “Economy highlights” on pages 25–31 for a brief analysis of the performance of selected economies and the "Country/Economy Profiles" for detailed results for all economies. “n/a” = not available (the economy was not covered in that edition of the GCI). The Global Competitiveness Report 2016–2017 | 7
24. 1 .1: Findings from the Global Competitiveness Index Box 3: Competitiveness at the end of the commodity boom become smaller than they used to be (exports became less responsive to changes in the exchange rate).3 The key lesson learned, however, is that the process of starting to produce new goods in new sectors and managing to export them is hard. It requires having productivity levels beyond those achieved by commodity-exporting economies. Indeed, using the IMF Diversification Index, we find that more competitive economies also have more diversified export baskets, and more diversified economies are more competitive. The link between productivity and exports is well understood in the firm-level trade literature,4 and the relationship between diversification and productivity has been explored in Hausmann and Klinger (2006) and Juvenal and Santos Monteiro (2013), among others. Figure 1 shows the relationship between competitiveness and diversification. The mechanism linking diversification and competitiveness comes via the effect of the fall in mineral and oil prices on the value of exports and on government deficits Figure 1: Correlation between GCI score and diversification 7 6 Diversification Index 2010 Today’s competitiveness landscape is the outcome of developments stemming from the global financial crisis which spread negative wealth shocks and contractionary effects from the United States to Europe and beyond.1 After reducing interest rates toward zero and all but exhausting the possibilities of conventional monetary policy to spur recovery, policymakers resorted to more unorthodox solutions. Central banks’ strategy of quantitative easing continues today, as they inflate their balance sheets and keep interest rates at record lows. This box explores the link between these well-known macro policies and diversification and competitiveness. The end of the commodity super-cycle and the sharp drop in prices, mainly of oil and minerals but also of food and agricultural products, reveals a close relationship between commodity dependence and competitiveness and provides lessons going forward. As prices of commodities soared following the global financial crisis, reinforced by strong demand from a few large emerging markets known as the BRICs (Brazil, Russia, India, and China), the weight of commodities in the export baskets of commodity-rich economies increased. The continued strong growth of the BRIC economies, particularly China, reinforced the commodity super-cycle that had begun in 2000 after the long slump of the 1980s and 1990s.2 Close-to-zero interest rates in advanced economies induced large capital flows into emerging markets that went to these profitable commodity sectors. The dollar depreciation super-cycle was matched by currency appreciations that some claim produced Dutch disease phenomena in emerging markets. Commodity sectors attracted resources and manufacturing sectors found it harder to export and harder to attract investment. The end of the commodity super-cycle, and in particular the pronounced fall in oil prices in response to increased supply of unconventional oil sources, especially in the United States, produced a large drop in the value of exports, current account deficits, government budget deficits, and large currency depreciations. As the US economy slowly recovered and monetary policy was expected to normalize, capital flows toward emerging markets fell. Many policymakers and analysts hoped that exchange rate depreciations would lead to increased exports of manufacturing goods. They soon realized that, for a variety of reasons—including depressed global trade in general, smaller real versus nominal depreciations, and the changing structure of global value chains and international trade—export elasticities had 5 4 3 2 1 1 2 3 4 5 6 7 Average GCI score, 2007–2010 Source: Authors’ calculations based on IMF Diversification Index. Note: Higher diversification scores indicate more concentrated (less diversified) export baskets based on a sample of 117 economies. (Cont’d.) Figure 2 shows how economies that perform poorly in the GCI have seen their central banks boost their balance sheets more than better-performing economies, and yet those with higher competitiveness have recovered faster from the financial crisis and ensuing recession, achieving faster growth rates. The fact that monetary stimulus has been more effective and growth has been higher in more competitive economies, regardless of fiscal policies followed, suggests that the constraints may be on the supply side. Improving the 8 | The Global Competitiveness Report 2016–2017 conditions for businesses to flourish and increase their productivity is therefore the main policy challenge for advanced and emerging economies alike. At the dawn of the Fourth Industrial Revolution era, technology and innovation are increasingly driving development As a new wave of technological convergence and digitalization materializes in the Fourth Industrial Revolution, innovation and business sophistication,
25. 1 .1: Findings from the Global Competitiveness Index Box 3: Competitiveness at the end of the commodity boom (cont’d.) and inflation, which increases as a result of depreciation passthrough. In turn, as falling exports affect competitiveness through the deterioration of the macroeconomic environment, it is harder for new firms and new sectors to flourish. Additional mechanisms involve the incentives of cash-rich commodity exporters to make the investments and take the policy actions that would lead to increased competitiveness of alternative sectors. These incentive effects are reflected in the composition of changes in the Index for net commodity exporters. Figure 2 shows the decomposition of changes in the GCI between 2008 and 2016. In particular, the business sophistication and innovation pillars fall for net exporters of commodities following the negative terms-of-trade shock. On the other hand, net commodity importers have smaller changes in overall GCI scores when prices are lower, but no individual pillar drives the change. The analysis suggests that competitiveness will not come from currency depreciations alone. Increasing productivity and creating the conditions for new growth sectors, based on emerging business models and technologies in the context of the Fourth Industrial Revolution, requires making progress on the competitiveness agenda that many economies neglected during their commodity-led growth period. The Global Competitiveness Report should serve as a tool to achieve this change. Notes 1 Obstfeld and Rogoff 2009. 2 Mariscal and Powell 2014. 3 Ahmed et al. 2015. 4 Melitz 2003. Figure 2: Pillar contribution to net commodity exporters' competitiveness change over time Contribution to year-on-year GCI change, point change in score 0.10 0.08 0.06 Institutions Infrastructure 0.04 Macroeconomic environment 0.02 Health and primary education Higher education and training 0.00 Goods market efficiency Labor market efficiency –0.02 Financial market development –0.04 Technological readiness Market size –0.06 Business sophistication Innovation –0.08 –0.10 2008– 2009 2009– 2010 2010– 2011 2011– 2012 2012– 2013 2013– 2014 2014– 2015 2015– 2016 2016– 2017 GCI edition* Source: Authors’ calculations. Note: Based on a constant sample of GCI coverage of net commodity exporters including Algeria, Argentina, Australia, Azerbaijan, Bahrain, Bolivia, Brazil, Cameroon, Canada, Chad, Chile, Colombia, Denmark, Guatemala, Iceland, Indonesia, Kazakhstan, Kuwait, Malaysia, Mauritania, Mexico, Mongolia, Mozambique, Namibia, Netherlands, New Zealand, Nigeria, Norway, Oman, Panama, Paraguay, Peru, Qatar, Russian Federation, Saudi Arabia, South Africa, United Arab Emirates, Uruguay, Venezuela, Vietnam, Zambia, Zimbabwe. * Each column corresponds to the change with respect to the previous GCI edition. understood as the process of creating new products and services and finding new ways to produce things, are becoming increasingly important. Innovation and business sophistication are more closely associated with income levels in general, and in emerging economies and commodity-exporting economies in particular, than they used to be. Figure 3 shows how, since 2010, for these two groups, GDP per capita has become more closely correlated with the GCI’s technological readiness, business sophistication, and innovation pillars than it is with the infrastructure, health and primary education, and market-related pillars (goods markets efficiency, financial market development, and labor market efficiency). These results illustrate how sources of productivity within firms and production units that are related to their ability to incorporate new technologies into their production processes, and that change the ways in which those firms and units perform tasks, are playing a larger role than investment in basic physical and human capital and well-functioning factor and goods markets, The Global Competitiveness Report 2016–2017 | 9
26. 1 .1: Findings from the Global Competitiveness Index Figure 2: Central bank assets and GDP growth economies with higher and lower GCI performance 2A: GDP growth 2B: Central bank gross assets (% GDP) 8 7 6 5 4 3 2 1 0 –1 –2 –3 –4 –5 –6 250 200 150 2007 2008 2009 2010 2011 2012 2013 2014 2015 ­   Higher GCI performance — —  Lower GCI performance 100 50 0 ­   Higher GCI performance — —  Lower GCI performance 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Authors’ calculations based on IMF, International Financial Statistics (for central bank asset data) and IMF 2016c (for GDP growth data). Note: A subset of economies was considered for this exercise to match availability of central bank balance sheet information. Higher GCI performers include (in alphabetical order): Austria, Belgium, China, Estonia, Finland, France, Germany, Ireland, Japan, Luxembourg, the Netherlands, and the United States. Lower GCI performers include Brazil, Cyprus, Greece, Italy, Latvia, Lithuania, Malta, Portugal, the Russian Federation, the Slovak Republic, Slovenia, and Spain. Higher GCI economies are those with GCI 2007–2015 average score > 4.6; lower GCI economies are those with GCI 2007–2015 average score < 4.6. Figure 3: Correlation between GDP per capita and lagged GCI pillars over time 3A: Emerging economies 3B: Net commodity exporters 0.8 0.8 ­   General physical and human capital and market efficiency — ­­—  Technology, business sophistication, and innovation ­   General physical and human capital and market efficiency — ­­—  Technology, business sophistication, and innovation 0.7 0.7 0.6 0.5 2008 2009 2010 2011 2012 2013 2014 0.6 2008 2009 2010 2011 2012 2013 2014 Source: Authors' calculations based on IMF 2016c and UNCTAD. Note: This graph builds two subindexes based on two groups of pillars: (1) infrastructure, health and primary education, goods market efficiency, labor market efficiency, and financial development; (2) technological readiness, business sophistication, and innovation. The graphs show the correlation between income per capita and the lagged value of these two subindexes. Each observation shows the correlation between GDP per capita in PPP terms (average over two years) and one-year lagged measures of the subindexes. The first subindex refers to investments in general physical and human capital and how well markets work on the one hand, and innovation and sophistication factors on the other. Emerging economies follow the IMF classification and net commodity exporters are identified using UNCTAD 2015 trade data. These are: Algeria, Argentina, Australia, Azerbaijan, Bahrain, Bolivia, Brazil, Cameroon, Canada, Chad, Chile, Colombia, Denmark, Guatemala, Iceland, Indonesia, Kazakhstan, Kuwait, Malaysia, Mauritania, Mexico, Mongolia, Mozambique, Namibia, Netherlands, New Zealand, Nigeria, Norway, Oman, Panama, Paraguay, Peru, Qatar, Russian Federation, Saudi Arabia, South Africa, United Arab Emirates, Uruguay, Venezuela, Vietnam, Zambia, Zimbabwe. frequently thought to be sufficient to reignite growth. It also shows how the price changes experienced since the end of the commodity cycle and faster technological change are creating incentives for firms and policymakers to engage in more innovative activities. Declining openness is endangering future growth and prosperity An open, trading economy generates incentives to innovate and invest in new technologies because firms are exposed to competition and new ideas and can benefit from the technology transfer that comes from 10 | The Global Competitiveness Report 2016–2017 imports and foreign investment. At the same time, firms can benefit from larger markets abroad.8 However, the benefits of openness are at risk: protectionist measures, especially non-tariff barriers, have increased and global trade has not recovered since the global trade slowdown following the financial crisis.9 Figure 4 illustrates that, according to GCI data, economies in all income groups have become less open since 2007, driven mainly by non-tariff barriers, including increased legal and normative requirements. Figure 5 shows that economies that are open to foreign competition (as measured by the foreign competition subpillar of the GCI) are also
27. 1 .1: Findings from the Global Competitiveness Index Figure 4: Openness in 2007–2008 and 2016–2017 editions, by income group Openness perception score (1–7) 7 Figure 5: Correlation between openness and innovation, 2016–2017 edition 7 ■ 2007–2008 ■ 2016–2017 Innovation pillar score (1–7) 6 5 4 3 5 4 3 2 2 1 6 Low income Lower-middle income Upper-middle income 1 High income more innovative, suggesting the importance of openness for innovation. Box 4 explores the relationship between openness, innovation, and competitiveness in the context of cities’ development and their integration into global value chains. REGIONAL HIGHLIGHTS Figure 6 shows the persistent competitiveness gaps between regions as measured by the GCI. This lack of convergence within and across regions represents an impediment to inclusive growth. 2 3 4 5 6 7 Openness to foreign competition score (1–7) Income level Source: Authors' calculations. Note: The indicator is an average of four indicators sourced from the Executive Opinion Survey: Prevalence on non-tariff barriers, Burden of customs procedures, Prevalence of foreign ownership, and Business impact of rules on FDI. Income group based on World Bank July 2016 classification. Based on a constant sample of 116 economies. 1 Source: Authors’ calculations. Figure 6: Regional competitiveness comparison over time Average GCI score 7 6 East Asia and Pacific North America Europe South Asia Latin America and the Caribbean Sub-Saharan Africa Middle East and North Africa Eurasia 5 4 Europe Faced with impending Brexit and geopolitical crises spilling over into the region, Europe finds itself in critical condition in many respects. Nevertheless, the region— which includes the EU28, Iceland, Norway, Switzerland, the Balkans, and Turkey—still performs above the global average in terms of competitiveness (4.72 average score in Europe versus an average score of 4.11 among the rest of the world; see Figure 7). This is driven by the performance of a group of regional champions, notably Switzerland, which leads the global rankings for the eighth consecutive year. The top 12 includes seven more European countries: the Netherlands (4th), Germany (5th), Sweden (6th), the United Kingdom (7th), Finland (10th), Norway (11th), and Denmark (12th). Although the top European countries are pushing the frontier in almost all areas, there is wide dispersion in regional performance on several pillars. The largest gap is in the macroeconomic environment pillar, a reflection of the fact that the region has been recovering unevenly from the global financial crisis. Europe’s median performance is weakest across the innovation indicators: 3 2007– 2008– 2009– 2010– 2011– 2012– 2013– 2014– 2015– 2016– 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 GCI edition Source: Authors’ calculations. Note: A constant sample of 116 economies is included in all GCR editions. Figure 8 shows that the region’s countries are clearly divided, with a significant gap between the innovation assessment for Northern and Western European countries versus Central, Eastern, and Southern European ones. Although this gap has been a persistent challenge, there are some recent encouraging signs of convergence in certain dimensions.10 Accelerating innovation efforts will be crucial to maintain current levels of prosperity, and Europe can expect high returns from focusing its resources on nurturing its talent. Figure 9 zooms in on seven important human capital indicators. Among the basic education indicators, the regional gaps are most apparent for math and science education. On attracting and retaining The Global Competitiveness Report 2016–2017 | 11
28. 1 .1: Findings from the Global Competitiveness Index Figure 7: GCI score range for Europe across the 12 pillars, 2016–2017 edition Score (1–7) 7 Norway Hong Kong SAR Finland 6 Finland Switzerland Singapore Netherlands Finland Singapore Switzerland New Zealand Luxembourg China Germany Switzerland Switzerland Finland 5 Best global Best Europe Average Europe Median Europe Worst Europe 4 3 2 1 Institutions Infrastructure Macro- Health and Higher Goods economic primary education market environment education and training efficiency Labor Financial Technological market market readiness efficiency development Market Business Innovation size sophistication GCI pillar Source: Authors' calculations. Note: The name of the best global economy is mentioned at the top; where the best European country does not coincide with the best global, the best European country is mentioned separately. Figure 8: Evolution of the innovation pillar in Europe, 2012–2017 Score (1–7) EU28 North/West 7 Non-EU Emerging Non-EU Advanced EU28 South EU28 Central/East 6 Switzerland Finland 5 Estonia Italy 4 Macedonia, FYR 3 2 1 2012–2013 2013–2014 2014–2015 2015–2016 2016–2017 GCI edition Source: Authors’ calculations. Note: The countries composing each group are: EU28 North/West: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Luxembourg, the Netherlands, Sweden, the United Kingdom EU28 South: Cyprus, Greece, Italy, Malta, Portugal, Spain EU28 Central/East: Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic, Slovenia Non-EU Emerging: Albania, Macedonia (FYR), Montenegro, Serbia, Turkey Non-EU Advanced: Iceland, Norway, Switzerland. Bosnia and Herzegovina was not included in this graph as it was not covered in the Global Competitiveness Index 2014–2015. The best country of each group is mentioned in the figure and is colored according to its group. 12 | The Global Competitiveness Report 2016–2017 international talent, although one European country (Switzerland) achieves the top global scores, the average for the region as a whole is low; this does not bode well for the creation of a vibrant European knowledge economy. The United Kingdom is currently still the most attractive EU destination for talent, yet the Brexit vote has created significant uncertainty over the conditions under which workers from EU countries will be able to participate in the UK economy in the future. Moreover, university applications from the European Union could potentially drop amid uncertainty over prospective students’ status and subsequent access to the UK job market (see Box 5 on the potential implications of Brexit; note that data presented in the Report were collected before the Brexit vote). Other European destinations also seem to be losing appeal. Indeed, some of the largest score drops for France compared to last year were registered for the “attract and retain talent” indicators. With unemployment—and youth unemployment, in particular—still high across the region, Europe is leaving large numbers of its citizens behind. Yet good practice examples in this area exist on the continent, with countries such as Switzerland and Denmark striking a balance between high labor market flexibility and strong social safety nets. Table 3 in Appendix B gives an idea of the extent of catching up on labor market efficiency that many European countries will have to do over the coming years; note that the level of inclusion
29. 1 .1: Findings from the Global Competitiveness Index Box 4: Competitive cities and global value chains: Connections between two powerful drivers of growth, productivity, and jobs In its white paper on Competitive Cities and their Connections to Global Value Chains, the Global Agenda Council on Competitiveness identified policy elements that can be put in place at the city level to upgrade products and processes and foster participation in international production networks. Listed below are some of its main findings: • Inserting the productive sector into global value chains (GVCs) can be central to a city’s competitiveness. GVCs provide a vehicle for cities to take part in the global economy through trade and investment; they can contribute to making cities vibrant magnets for innovation, productivity increases, and employment. • Participating in GVCs requires a sustained effort by cities to re-invent and reposition themselves. This participation is not a matter of making just one major push to insert the city’s productive sector into GVCs. City leaders need to scan the global and local economic horizon to identify initiatives that can most enable their cities to catch the momentum of economic forces. • Creating robust soft connectivity advantages to build on hard connectivity is essential to improving participation. Access to a qualified and educated labor force, innovation and research and development policies conducive to upgrading, digital infrastructure to deepen connectivity, and trade facilitation and logistics policies to expedite movements of people are key elements of successful GVC participation. • Successful cities have flourished in a context of openness. Open trade and investment policies pave the way for connecting cities to the opportunities presented by international markets; a city open to talent from other regions and from abroad enhances its attractiveness to GVCs. • Understanding how GVCs operate and how investors select their investment destinations, with a focus on inclusiveness and flexibility, should guide policymakers’ competitiveness decisions. City leaders can maximize the impact of their investments in competitiveness by addressing bottlenecks and challenges that are particularly relevant in order to attract and facilitate the operation of GVCs, as well as to foster value addition in the city. Inclusiveness by opening opportunities to all members of society and flexibility to quickly adapt to constant changes in production networks determine the sustainability of successful competitive cities. Contributed by Anabel Gonzalez, Global Agenda Council on Competitiveness, based on the white paper Competitive Cities and their Connections to Global Value Chains by the Global Agenda Council on Competitiveness. For the full paper, see http://www3.weforum.org/docs/WEF_2016_WhitePaper_GAC_ Competitive_Cities_.pdf. Figure 9: Range for Europe across seven human capital indicators, 2016–2017 edition Score (1–7) 7 Switzerland Singapore Switzerland 6 Finland Singapore Switzerland Switzerland Finland Iceland 5 Best global Best Europe Average Europe Median Europe Worst Europe 4 3 2 1 Quality of math Quality of the and science education education system Internet access in schools Local availability of specialized training services Country capacity to retain talent Country capacity Availability of to attract talent scientists and engineers GCI indicator Source: Authors' calculations. Note: The name of the best global performer is mentioned at the top; where the best European performer does not coincide with the best global, the best European country is mentioned separately. The Global Competitiveness Report 2016–2017 | 13
30. 1 .1: Findings from the Global Competitiveness Index Box 5: The Brexit vote: What impact will it have on competitiveness? On June 23, 2016, the United Kingdom voted to leave the European Union. At the time of writing, Article 50 of the Lisbon Treaty—which governs the withdrawal of a member state from the Union—had not yet been triggered and a timeline for the exit process had not been fixed. Nevertheless, economic repercussions of the vote are already being felt and will probably be amplified once actual treaty changes are implemented (note that the data for the GCI were collected before the vote and thus do not yet reflect the new situation). Before the Brexit vote, the economic recovery in Europe was progressing; this progress was backed by stronger internal demand fueled by low oil prices, accommodating monetary policy, and ongoing job creation. The vote triggered an immediate depreciation of the British pound and a drop in the price of UK and euro-area risky assets, and has led to downward corrections of the short- to medium-term growth outlook for the United Kingdom as well as the rest of the European Union.1 Although we do not know yet what the exact impact of Brexit will be, economic repercussions of the leave vote are likely to fall into two categories: in the short run, before any modifications of the legal framework have taken place, economic outcomes are affected by an increase in uncertainty over the legal conditions that will eventually prevail. This increased uncertainty has macroeconomic consequences, reducing investment, consumption, and foreign trade as consumers and investors become more cautious. Projections by the European Commission yield a downward revision of the 2017 growth forecast by 1.00 to 2.75 percentage points for the United Kingdom and 0.25 to 0.50 percentage points for the European Union (the range reflects different assumptions about the change in the risk premium that captures the severity of the shock).2 All scenarios assume a 15 percent depreciation of the pound, which should improve UK export performance; nevertheless, the net effect on growth is predicted to be negative. Because uncertainty is holding back investment and reducing the attractiveness of the United Kingdom for talent (both students and workers), important drivers of competitiveness are expected to be affected by the leave vote before any treaty changes have taken place. In the longer run, economic repercussions will be emanating from changes to the four freedoms guaranteed by the European Union (the free movement of people, goods, services, and capital) as well as the partial or full withdrawal of the United Kingdom from the EU budget. The key long-run channels through which the exit will be transmitted are thus increases in the cost of trade, investment, and movement of labor, which will all eventually be reflected in the goods and labor market efficiency as well as market size pillars of the Global Competitiveness Index (GCI). Most projections have focused on the immediate trade and investment effects of Brexit. The three most plausible scenarios for governing the United Kingdom’s economic relations with the European Union post-Brexit are (1) to adopt European Economic Area (EEA) membership following the Norwegian model (the most liberal option in terms of the four freedoms), (2) to adopt European Free Trade Association (EFTA) membership 14 | The Global Competitiveness Report 2016–2017 following the Swiss model, or (3) to fall back on World Trade Organization (WTO) rules. There is a consensus among leading economists that the impact on GDP will be negative under all scenarios that reduce any or all of the four freedoms. The largest negative impact—of –6.3 to –9.5 percent of UK GDP (in 2030)—is predicted under a scenario that models impacts on trade, productivity, and budget with EEA/EFTA parameters in a dynamic setting.3 Static, tradeonly projections by the same authors put the economic cost at 1.3 to 2.6 percent of 2030 GDP for the United Kingdom.4 UK government projections assume changes in budget, trade, foreign direct investment, and productivity and find losses for the UK economy ranging from 3.8 percent (under the EEA/ Norwegian model) to 7.5 percent (using the WTO model) of GDP in 2030.5 Since geographic proximity is an important factor in determining trade flows, simply shifting trade to other (necessarily more distant) markets is unlikely to provide a quick fix.6 Additional effects on growth and competitiveness are likely to be felt in terms of innovation impact if the country becomes less accessible for international talent. In order to cushion the impact of the withdrawal of EU funding for basic research, the UK Treasury has pledged to guarantee funding for projects that are currently funded by the EU.7 Although the majority of those mechanisms contribute to weakening the UK economy, one source of potential benefits of leaving might be regulatory changes that shift the regime in a way that is optimal for the United Kingdom; currently, a significant part of the UK economy is subject to a regulatory regime that reflects a compromise between the preferences of 28 countries. However, no clear plan for such regulatory changes that would allow for a forecast of economic impact has been outlined. Although it is clear that various drivers of competitiveness will be affected by the leave vote, the size of the ultimate effect of Brexit on productivity itself remains difficult to predict. Reversing trade liberalization is known to have negative productivity effects because it loosens competitive pressures, giving more leeway to less-productive firms. The ultimate productivity impact will depend to a large extent on the level of competition that prevails in the UK economy after Brexit. A distributional analysis of the longer-term consequences of Brexit suggests that the costs will mostly fall on those with middle incomes, although the poor will not be spared from its impact.8 Notes 1 Bank of England 2016; European Commission 2016b. 2 European Commission 2016b. 3 Dhingra et al. 2016 (in CEP 2016). 4 Dhingra et al. 2016 (in CEP 2016). 5 HM Treasury 2016 cited in Miles 2016. 6 CEP 2016. 7 Morgan 2016. 8 Breinlich et al. 2016 (in CEP 2016).
31. 1 .1: Findings from the Global Competitiveness Index achieved by reforms will depend heavily on the details of implementation. A more detailed assessment of the European competitiveness landscape is currently being undertaken in the context of the Europe Inclusive Growth and Competitiveness Lab, a joint initiative between the Forum, the European Investment Bank, and Bruegel (see Box 7). Figure 10: Share of minerals in exports and macroeconomic environment in Eurasia, 2016–2017 edition Percent 100 80 ■ Share of minerals in export ■ Change in macroeconomic environment pillar score (2015–2016 vs 2016–2017) 60 40 Eurasia Eurasia’s competitiveness performance has been stable overall, although most economies in the region face challenges related to the fall in commodity prices (Figure 10), volatile exchange rates, recession in the Russian Federation and Ukraine, and the slowdown of the Chinese economy. These shocks have affected competitiveness in two major ways: all Eurasian economies except Georgia have seen the value of their exports fall, reducing their total market size; and falling tax and royalties revenues have increased government deficits and public debt. On average, the region went into recession in 2015 and its growth is expected to remain negative for 2016. In many cases, currency devaluation and inflation— especially in economies dependent on commodity exports—have also contributed to a volatile economic environment. Financial sectors are under stress in at least half of Eurasian economies, with banks becoming less liquid and reducing firms’ access to finance— especially in Moldova (which has been affected by banking scandals), the Russian Federation, Tajikistan, and Ukraine. Regional geopolitics continues to cause uncertainty, instability, and declining perceptions of security, as reflected in the institutions pillar of the GCI. Concerns include the Armenian–Azerbaijani clashes in NagornoKarabakh; the still-unresolved situation in Ukraine; and sanctions against the Russian Federation’s financial sector, which contributed to the increased stress on this sector regionally. Nonetheless, the region has improved other factors of competitiveness, including technological readiness, education, and institutions. With mineral resources accounting for over 65 percent of the region’s exports, microeconomic fundamentals are necessary to lay the foundation for much-needed diversification of economic activity.11 Eurasian economies still need to accelerate progress to close the gaps with the most advanced economies in innovation capacity and technological readiness. Upgrading transport infrastructure remains another priority. Regional competitiveness differences remain wide, with Azerbaijan (37th) and the Russian Federation (43rd) again the top performers. Despite headwinds from the drop in oil prices that impact their macroeconomic environment, both economies improve their performance 20 –0 –20 –40 Moldova Kyrgyz Ukraine Georgia Tajikistan Armenia Russian Kazakhstan Azerbaijan Republic Federation Source: Authors’ calculations; International Trade Centre. slightly, mainly driven by better and more widespread education and reforms to improve the business environment and goods market efficiency. Some progress has been made in curbing corruption, which nevertheless remains a problematic factor for doing business in both countries. The most improved Eurasian economies are Georgia (up seven places at 59th) and Tajikistan (up five at 77th).12 In both countries GDP is expected to grow by over 2.5 percent in 2016—below the average for the past decade, but more than other Eurasian countries. Tajikistan starts from a lower base and its positive performance this year is mainly driven by better ground transport and electricity infrastructure, less red tape to start a business, and slightly improved institutional environment. Kazakhstan (53rd), Moldova (100th), and the Kyrgyz Republic (111th) decline in the rankings and register scores lower by 2 to 3 percent, dropping eight or more positions. Kazakhstan has lost ground almost exclusively as a result of the worsened situation of public finance, linked to the loss of oil export revenues. Despite not being oil exporters, Moldova and the Kyrgyz Republic have been severely hit by the recession in the Russian Federation and Ukraine, which has reduced their economic activity, increased inflation, and considerably worsened public finances. East Asia and Pacific East Asia and Pacific is characterized by great diversity. The region’s 18 economies covered in the GCI 2016– 2017 span a large part of the development ladder, from Cambodia to Singapore, and include three of the world’s 10 largest economies: China, Japan, and Indonesia. The region’s emerging economies, led by China, have been supporting the modest global recovery since the global financial crisis. These economies accounted for almost The Global Competitiveness Report 2016–2017 | 15
32. 1 .1: Findings from the Global Competitiveness Index Figure 11: GCI scores of East Asia and Pacific economies GCI edition: ■ 2007–2008 7 6 0.3 0.1 0.1 0.3 ■ 2016–2017 0.0 0.0 0.1 –0.4 0.4 5 –0.1 0.3 0.4 0.3 0.5 4 0.2 3 2 1 Singapore (2nd) Japan (8th) Hong Kong SAR (9th) New Zealand (13th) Taiwan, China (14th) Australia (22nd) Malaysia (25th) Korea, Rep. (26th) China (28th) Thailand (34th) Indonesia (31st) Philippines (57th) Vietnam (60th) Cambodia (89th) Mongolia (102nd) Source: Authors’ calculations. Note: The GCI 2016–2017 rank is reported in parentheses. Score differences were rounded to the nearest decimal, but exact values were used for representation. The green and red bars indicate, respectively, gains and losses between the two editions. two-fifths of global growth last year, more than twice the combined contribution of all other emerging regions.13 Today, global economic prospects look less favorable as a result of China’s slowdown, anemic growth in Japan and other advanced economies, and persistently low commodity prices undermining the growth and public finances of several economies in the region—notably Indonesia and Mongolia.14 The GCI results reveal contrasts in the region. Its advanced economies continue to perform strongly. Led by Singapore, 2nd overall behind Switzerland for the sixth consecutive year, these economies all feature in the top 30 of the GCI rankings. Losing ground since last year, Japan ranks 8th (down two) and Hong Kong SAR ranks 9th (down two). New Zealand advances three positions to 13th, while Taiwan, China is up one notch to 14th. Further down, Australia (22nd) and the Republic of Korea (26th) both improve their scores but their positions are unchanged. Among emerging economies, Malaysia (25th) continues to lead the region, despite losing some ground this year following six years of improvement. China remains steady at 28th for the third year in a row. Reflected in the evolution of the GCI score since the 2007–2008 edition, the overall competitiveness trends for the region are overwhelmingly positive: 13 of the region’s 15 economies covered since 2007 achieve a higher score today, with Cambodia, China, and the Philippines posting the largest gains (see Figure 11). The only exceptions are Korea and Thailand, though for the latter the loss has been small and from a high base. There are signs, however, that the generalized upward trend is tapering off somewhat: for half of the economies in the 16 | The Global Competitiveness Report 2016–2017 region, the score is either stable (score difference of less than 0.01 point) or lower than last year. Still, the contrast with South Asia remains very stark. Six of the nine East Asian emerging economies feature in the top half of the GCI rankings; among the six South Asian economies covered, only India achieves this feat. The region’s advanced economies need to further develop their innovation capacity. Japan and Singapore are the only economies in the region among the world’s top 10 innovators, ranking respectively 8th and 9th in the innovation pillar. Japan, Korea (which has dropped from 8th to 20th in the pillar since 2007), and to a lesser extent Taiwan, China (11th), have experienced a steady erosion of their innovation edge since 2007. Meanwhile New Zealand (23rd), although it has improved significantly since 2007, Australia (26th), and Hong Kong (27th) remain far behind the world’s innovation powerhouses. Since 2007, most emerging economies have improved on the basic drivers of competitiveness (i.e., on the first four pillars of the GCI)—often markedly, though also often from a low base. With the exception of Malaysia and Thailand, these economies have made major strides in improving governance, including in tackling corruption. All of them except Thailand have also made significant progress in terms of transport infrastructure, which has traditionally been a major constraint to growth for these economies. A similar generalized upward trend is seen in health and basic education. In the past decade, the situation has greatly improved in this area—except in Indonesia, which achieves some of the worst health outcomes outside sub-Saharan Africa. On the macroeconomic front, the
33. 1 .1: Findings from the Global Competitiveness Index Figure 12: Changes in the drivers of competitiveness in South Asia, 2007–2016 edition Pillar Change in pillars' contributions to South Asia's* competitiveness between 2007 and 2016 Change in pillar score Pillar score in 2016 Higher education and training 0.04 0.41 3.56 Market size 0.04 0.27 4.66 Health and primary education 0.03 0.52 5.29 Technological readiness 0.02 0.15 2.84 Goods market efficiency 0.02 0.02 4.12 Innovation 0.02 0.15 3.28 Infrastructure 0.02 0.33 3.13 Business sophistication 0.02 –0.13 3.79 Labor market efficiency 0.00 –0.25 3.64 Financial market development 0.00 –0.41 3.87 Macroeconomic environment –0.01 0.27 4.58 Institutions –0.02 0.13 3.69 Source: Authors’ calculations. Note: The contibution of each pillar to the region’s overall competitiveness level varies according to the changes in both its score and weight. The latter depends on whether countries have moved across different stages of development. * Based on a constant sample: Bangladesh, India, Nepal, Pakistan, and Sri Lanka. situation has also improved almost everywhere, with inflation at a 10-year low in most economies. The fiscal situation is also relatively sound, with most economies posting deficits lower than 3 percent. The notable exception is Mongolia, where the macroeconomic situation remains worryingly volatile. Despite positive developments, there is no room for complacency. All emerging economies in the region have achieved middle-income status, and to sustain growth they now need to pay increasing attention to the more complex areas of competitiveness, where their shortcomings are many. Digital infrastructure and ICT uptake are showing significant progress, but becoming more innovative is also a pressing imperative—especially for Malaysia, China, and Thailand—if they are to avoid the middle-income trap.15 South Asia South Asia continues its upward trend and competitiveness improves in most economies in the region, which is experiencing positive economic momentum, and in 2016 is set to grow more quickly than China for the first time in more than 20 years. Over the past decade, the subcontinent has focused on improving overall health and primary education levels and upgrading infrastructure, areas of particular importance for future diversification and preparedness given the resource-driven nature of the regional economies. In the health and primary education and the infrastructure pillars, South Asia’s average score has increased by 0.5 and 0.3 respectively since 2007, but infrastructure remains the region’s second weakest pillar, just after technological readiness. Investment in these areas will be vital to fully unlock economic growth. As they move up the development ladder, it will also be increasingly important for South Asian economies to establish competitiveness agendas to improve the functioning of their labor and financial markets, which have deteriorated over the last 10 years (Figure 12). The region remains diverse, with a core of three heavyweight economies—India, Pakistan, and Bangladesh—surrounded by smaller ones such as Bhutan, Nepal, and Sri Lanka, each with its own peculiarities and unique development path (Figure 13). Since 2007, the gap between the best- and worstperforming economies in the region has increased in some of the drivers of competitiveness, mostly as a result of the deteriorating situation in Pakistan. The quality of infrastructure has improved significantly (although from low levels) in India, Bangladesh, and Sri Lanka, while it stalls in Nepal and deteriorates in Pakistan. Pakistan is also the only economy that fails to improve its macroeconomic environment and health and primary education levels, falling behind other South Asian economies. Financial market development remains poor across the entire region, as does technological readiness; this last area improves significantly only in Bangladesh and Sri Lanka, which overtook India to become the best performer in this pillar in the region. India leads the group of South Asian economies, climbing to 39th with improvements across the board, including institutions and infrastructure (42nd and 68th), which have been particularly important in increasing overall competitiveness (see Box 6). The most advanced economy in the region, Sri Lanka, slips three positions to 71st, but with a stable The Global Competitiveness Report 2016–2017 | 17
34. 1 .1: Findings from the Global Competitiveness Index Figure 13: GCI score range across the 12 pillars in South Asia, 2016–2017 edition Score (1–7) 7 India Sri Lanka 6 Nepal 5 Bhutan Sri Lanka Bhutan India India India India 4 Bhutan 3 India Pakistan Pakistan Pakistan Bangladesh Pakistan Sri Lanka Nepal Pakistan Nepal Nepal 2 Best performer South Asia Median South Asia Worst performer South Asia China Nepal Bhutan 1 Institutions Infrastructure Macro- Health and Higher Goods economic primary education market environment education and training efficiency Labor Financial Technological market market readiness efficiency development Market Business Innovation size sophistication GCI pillar Source: Authors' calculations. Note: China is included for reference. Box 6: Ten years of competitiveness in India India’s GDP per capita in PPP terms almost doubled between 2007 and 2016, from US$3,587 to US$6,599. Growth slowed after the 2008 crisis, hitting a decade’s low in 2012–13. This experience triggered India to rethink its policies and engage more firmly in the reforms necessary to improve its competitiveness. Growth rebounded in 2014 and last year surpassed that of China, making it the fastest-growing large emerging market in that year. India’s competitiveness score stagnated between 2007 and 2014, and the economy slipped down the GCI rankings. Since the new government took office in 2014, India climbed back up the rankings to 39th in this edition of the Report, from 48th in 2007–2008. What has made India so successful in recent years? The overall trend masked some diversity over the years on the different pillars, as shown in Figure 1. For example, health and basic education improved throughout the decade.1 Improvement in infrastructure, by contrast, was small and faltering during most of the period, but picked up after 2014 when the government increased public investment and sped up approval procedures to attract private resources. The institutional environment deteriorated until 2014, as mounting governance scandals and seemingly unmanageable inefficiencies saw businesses lose trust in government and public administration, but this trend was also reversed after 2014. Macroeconomic conditions followed a similar path, as India managed only in recent years—thanks also to the drop in commodity prices—to keep inflation below the target of 5 percent while rebalancing its current account and decreasing public deficit. Financial market development has also improved since 2014, but—unlike the case of institutions and Table 1: Change in pillars' contribution to India's competitiveness between 2007 and 2016 Pillar Weighted contribution to Change in change in GCI pillar score Pillar weight Pillar score 2016 Health and primary education 0.09 0.62 15% 5.54 Infrastructure 0.09 0.59 15% 4.03 Macroeconomic environment 0.05 0.34 15% 4.55 Market size 0.02 0.27 6% 6.43 Institutions 0.00 0.03 15% 4.36 Innovation 0.00 0.15 3% 4.05 Labor market efficiency 0.00 0.02 6% 4.10 Higher education and training 0.00 0.00 6% 4.12 Technological readiness –0.01 –0.18 6% 2.99 Business sophistication –0.01 –0.43 3% 4.39 Goods market efficiency –0.02 –0.26 6% 4.39 Financial market development –0.03 –0.52 6% 4.41 Source: Authors' calculations. the macroeconomic environment—not enough to recover to 2007 levels. Table 1 illustrates which pillars improved or deteriorated over the 10 years from 2007 to 2016. Thanks to the 2015 and 2016 rebound, India’s overall competitiveness score in this period increased by 0.19 points. The two most significant improvements are in infrastructure and in health and primary education: for example, India almost halved its (Cont’d.) 18 | The Global Competitiveness Report 2016–2017
35. 1 .1: Findings from the Global Competitiveness Index score. After years of conflict, the country needs to concentrate on triggering the efficiencies that will drive further growth—for example, by restructuring the labor market and investing in technological readiness, where it lags significantly behind economies at a similar stage of development. The two Himalayan economies, Bhutan (97th) and Nepal (98th), both improve their positions this year, by eight places and one place, respectively. Infrastructure and connectivity are bottlenecks for both economies but, thanks to heavy investments in hydroelectric power, Bhutan can rely on a highquality electricity supply (41st). Nepal boasts the best Box 6: Ten years of competitiveness in India (cont’d) Figure 1: Pillar contribution to India’s competitiveness over time Contribution to year-on-year GCI change, point change in score 0.25 0.20 Institutions Infrastructure 0.15 Macroeconomic environment Health and primary education 0.10 Higher education and training Goods market efficiency 0.05 Labor market efficiency Financial market development 0.00 Technological readiness Market size –0.05 Business sophistication –0.10 Innovation –0.15 2008– 2009 2009– 2010 2010– 2011 2011– 2012 2012– 2013 2013– 2014 2014– 2015 2015– 2016 2016– 2017 GCI edition* Source: Authors' calculations. *  Each column corresponds to the change with respect to the previous GCI edition. rate of infant mortality (62 per 1,000 in the 2007–2008 edition of the GCI versus 37.9 today). Life expectancy increased to 68, up from 62 10 years ago, while primary education has become almost universal (up to 93.1 percent from 88.8 percent). Macroeconomic environment is another basic requirement where India’s performance has improved significantly (+0.34).2 At the other end of the spectrum, financial market development is the pillar most dragging down India’s competitiveness compared to 10 years ago. Here the efforts of the Reserve Bank of India have increased transparency in the financial market and shed light on the large amounts of nonperforming loans, previously not reported on the balance sheets of Indian banks. Banks have not yet found a way to sell these assets, and some need large recapitalizations. The efficiency of the goods market has also deteriorated, resulting from India’s failure to address long-running problems such as varying goods and services tax (GST) levels within the country (this is set to finally change as of 2017 if the Central GST and Integrated GST Bills currently in Parliament are fully implemented). Another area of concern is India’s stagnating performance on technological readiness, a pillar on which it scores one full point lower than any other. These three pillars will be key for India to prosper in its next stage of development, when it will no longer be possible to base its competitiveness on low-cost, abundant labor. Higher education and training has also shown no improvement. What areas should India prioritize today? India has made significant progress on infrastructure, one of the pillars where it ranked worst. As the country closes the infrastructure gap, new priorities emerge. The country’s biggest relative weakness today is in technological readiness, where initiatives such as Digital India could lead to significant improvements in the next years. India outperforms countries in the same stage of development, mostly those in sub-Saharan Africa, in all pillars except labor market efficiency. Even on indicators where India has made progress, comparisons with other countries can be sobering: although life expectancy has increased, for example, it is still low by global standards, with India ranking only 106th in the world; and while India almost halved infant mortality, other countries did even better, so it drops nine places this year to 115th. Huge challenges still lie ahead on India’s path to prosperity. Notes 1 The deterioration in health and primary education performance reported between 2008 and 2009 was the result of a revision of previously available data on the incidence of malaria, which was corrected upward. 2 The adoption of new PPP estimates by the IMF in 2014 also contributed to the increase in the measure of market size used in the GCI. The Global Competitiveness Report 2016–2017 | 19
36. 1 .1: Findings from the Global Competitiveness Index Figure 14: GCI score range across the 12 pillars in Latin America and the Caribbean (LAC), 2016–2017 edition Score (1–7) 7 Norway Hong Kong SAR Finland Panama 6 Finland Switzerland Costa Rica Singapore Singapore Switzerland New Zealand China Brazil Switzerland Switzerland Barbados Barbados 5 Chile Uruguay Panama Panama Barbados Dominican Republic Panama 4 Costa Rica 3 2 Nicaragua Paraguay Venezuela Venezuela Venezuela Best global Best LAC Average LAC Median LAC Worst LAC Venezuela Argentina Nicaragua Nicaragua Venezuela Barbados 1 Institutions Infrastructure Macro- Health and Higher Goods economic primary education market environment education and training efficiency Labor Financial Technological market market readiness efficiency development Market Business Innovation size sophistication GCI pillar Source: Authors' calculations. macroeconomic environment in the region and, after significant recent improvement, the second highest level of health and primary education. Pakistan trails the group of South Asian economies. Its upward trend of recent years continues with an advance of four places to 122nd, although its score is still below the 2007 level. The climate of instability during this period has surely weighed down the country’s economic development. Latin America and the Caribbean After almost a decade of strong growth following the global financial crisis, growth rates in the region have fallen and several countries are now heading into recession. The end of the commodity super-cycle resulted in a drop in export values for major commodityexporting countries, including Brazil, Venezuela, Colombia, Ecuador, and Argentina. The subsequent fall in global trade has also hit demand for manufacturing exports, further reducing the value of exports across most of the region. The result of this negative terms-oftrade shock has been a large trade deficit, producing current account deficits and government budget deficits. Despite the relative depreciation of the region’s floating currencies against the US dollar, exports have not recovered. This makes evident the magnitude of the competitiveness challenges in the region, where productivity has been falling, on average, during the last 20 years. 20 | The Global Competitiveness Report 2016–2017 The top performing country in the region remains Chile (33th), increasing two places in the rankings, followed by Panama (42nd) with an improvement of eight positions. Costa Rica falls slightly to 54th rank, and Mexico (51st) improves by six positions. The overall range of scores in Latin America and the Caribbean remains large, with the worst-ranked in 130th place and the best-ranked in 33rd place. Within pillars, the largest regional gaps remain in the macroeconomic environment, reflecting the magnitude of the commodity and investment shock on commodity-exporting countries, and size of domestic markets. We also observe an increased dispersion within the institutions pillar, driven by the ethics and corruption subpillars and recent scandals in the region. Figure 14 shows the best, worst, median, and mean performer in the region—and the best global performer— on each of the 12 pillars of the GCI. This allows us to understand the sources of regional inequality driving productivity and growth differences, as well as the gap between the regional and global top performers. Although Latin America and the Caribbean has made progress on average, large gaps remain in all pillars. The largest gaps with the best world performer are in business sophistication and innovation, where Panama and Costa Rica lead the region. Other large gaps are in infrastructure, institutions, and labor market efficiency. Panama, the largest upward mover in the overall Index this year, leads the region in macroeconomic environment, goods market efficiency, financial
37. 1 .1: Findings from the Global Competitiveness Index Figure 15: Performance of net oil exporters vs net oil importers in Latin America and the Caribbean, 2016–2017 edition Figure 16: Performance of North America and OECD countries, 2016–2017 edition Institutions Innovation Business sophistication 7 6 Infrastructure 5 4 Macroeconomic environment Institutions Not Oil Exporter Innovation 7 Net Oil Exporter Business sophistication 5 3 2 Market size 1 Financial market development 4 OE Infrastructure Macroeconomic environment 3 Health and primary education Higher education and training Technological readiness 6 Goods market efficiency Labor market efficiency Oil-exporting countries Oil-importing countries Un 2 Market size Health and primary education 1 Higher education and training Technological readiness Financial market development Goods market efficiency Labor market efficiency United States Canada OECD average Source: Authors' calculations. Note: Net oil exporters determined using UNCTAD Trade Data. Oil-exporting countries included are Colombia, Ecuador, Mexico and Venezuela. Oil importing countries are Barbados, Belize, Bolivia, Brazil, Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Panama, Paraguay, Peru, Suriname, Trinidad and Tobago, Uruguay. Source: Authors' calculations. Note: OECD = Organisation for Economic Co-operation and Development. market development, and business sophistication. Costa Rica leads in health and primary education and innovation. Uruguay leads the institutions pillar, and Chile leads higher education and training. Barbados tops the regional rankings in infrastructure, labor market efficiency, and technological readiness, despite having the smallest domestic market. Figure 15 compares the results of oil-exporting countries and oil-importing countries in the region. Oil-exporting countries fare worse in macroeconomic performance, and they perform worse than oilimporting countries in institutions, infrastructure, goods market efficiency, labor market efficiency, and financial development. The commodity boom masked the need to make urgent progress on pending competitiveness gaps. Large inflows of FDI, prices of oil above US$100, and the resulting export and government revenue increases all reduced the urgency of advancing on a competitiveness agenda that would allow new growth sectors to emerge. Oil-exporting countries in the region are now facing the consequences of unfinished work on all fronts. They also have the opportunity to respond with renewed competitiveness agendas (for an example see Box 7 on competitiveness labs). Both the United States and Canada outperform the Organisation for Economic Co-operation and Development (OECD) country average overall and on most pillars, although the OECD average beats the United States in areas such as macroeconomic performance and health and primary education (Figure 16). The United States lags behind Canada in the quality of institutions, macroeconomic environment, and health and primary education. Canada’s largest disparities with OECD countries are in business sophistication and innovation. The large domestic market in the United States represents a major source of competitiveness advantage over other advanced economies. Since 2007, the United States has been falling behind both in absolute and relative terms in infrastructure, macroeconomic environment, and goods market efficiency. It has improved, however, on health and primary education, higher education and training, and especially technological readiness, one of the most essential pillars for taking advantage of new technologies. Canada, on the other hand, has improved marginally in all efficiency enhancers, with markets for goods, labor, capital, and human capital remaining among the bestranked of the OECD countries. However, Canada lags behind on innovation and business sophistication, which are especially central for advanced economies. In the United States, innovation and business sophistication have improved; in Canada, they have deteriorated and could be slowing down productivity improvements. However, the business community in North America The United States ranks 3rd for the third consecutive year, while Canada ranks 15th. However, the evolution of how the two countries rank on various pillars sheds light on the forces shaping competitiveness among advanced economies at the forefront of the Fourth Industrial Revolution. Ca The Global Competitiveness Report 2016–2017 | 21
38. 1 .1: Findings from the Global Competitiveness Index Box 7: Competitiveness Labs The Global Competitiveness Index seeks to serve not only as the foremost benchmarking tool to track competitiveness, but also as a tool to facilitate the identification of priority areas and the design of public-private collaboration on agendas to make progress in those areas. The World Economic Forum strives to contribute to this process of closing competitiveness gaps through a model of public-private collaboration toward actionable agendas called the Competitiveness Labs. This box describes the two ongoing Labs in Latin America and Europe. Latin America Based on The Global Competitiveness Report (GCR) series, the Competitiveness Lab project has been exploring how to address key competitiveness challenges in Latin America, specifically Colombia and Mexico. The Lab promotes publicprivate collaboration, by bringing together representatives from each sector to devise actionable, long-term competitiveness agendas. The Competitiveness Lab project began at the World Economic Forum Annual Meeting at Davos in 2014, with a broad mandate from participants from the private and public sectors in Latin America. Together with Strategic Partner Deloitte and a high-level steering board, the Forum built on the GCR analysis to identify the region’s main competitiveness gaps and produce an Insight Report with a set of policy recommendations. The report, Bridging the Skills and Innovation Gap to Boost Productivity in Latin America,1 was presented during the World Economic Forum on Latin America 2015. It led to requests for a second phase, to help implement the policy recommendations at the country level. The Lab methodology consists of an initial workshop, facilitated by the Forum, which convenes high-level representatives from government, the private sector, and civil society to select the most pressing policy recommendation from the Insight Report. Workshop participants form a Steering Committee to be the Lab’s main governance and decision-making body. A Working Group, with representatives from government and the business community, writes a proposal with help from Forum’s technical secretariat. Both Colombia and Mexico chose to focus on the need for new public-private financial schemes for innovation. Although both Labs are currently at the stage of completing recommendations to their Steering Committees, the process the United States is increasingly concerned about basic determinants of competitiveness such as infrastructure. Middle East and North Africa The Middle East and North Africa region continues to experience significant instability in geopolitical and economic terms as spillover effects from the conflicts in Libya, Syria, and Yemen are undermining economic progress in the entire region. Instability is also being created by the uncertain future of energy prices after recent falls, which affect the region’s countries in different ways. Oil-exporting 22 | The Global Competitiveness Report 2016–2017 has already resulted in a more positive dynamic between relevant agencies in government and the private sector. A forthcoming report will document lessons learned, with a view to replicating the experience and contributing to more vigorous, evidence-based and project-driven competitiveness agendas in the region. Europe As in Latin America, the Europe Inclusive Growth and Competitiveness Lab aims to support the design, launch, and implementation of actionable agendas for publicprivate collaborations to increase competitiveness and inclusive growth.2 The Lab is a joint initiative of the Forum, the European Investment Bank, and the European think tank Bruegel. Drawing on the three partner organizations’ established frameworks and the latest academic research, its first phase will run from January 2016 to January 2017. In the project’s first phase, the partners are currently analyzing the inclusive growth and competitiveness situation in Europe to inform a white paper that will identify priorities. The second phase will implement concrete public-private partnership opportunities at the EU and subregional levels and/or the industry level. The Lab has a strong, cross-cutting focus on the role of digitalization in the regional economy; it considers reallocating resources to invest in innovation and entrepreneurship to be a key driver for change, and deeper integration of the European single market to be a key catalyst. The Lab will build on, strengthen, and engage the World Economic Forum’s multi-stakeholder communities through sustained dialogue to support informed decision-making on transformation processes in Europe. Mindful of the shortterm challenges currently confronting the continent, the Lab is focusing on longer-term drivers of competitiveness and inclusive growth—and providing thought leadership on how to unleash these drivers through public-private action. Notes 1 The full report is available at https://www.weforum.org/reports/ bridging-skills-and-innovation-gap-boost-productivity-latin-america-competitiveness-lab/. 2 The details of this methodology will be available in a forthcoming World Economic Report on the Latin America Competitiveness Lab. countries—which include Algeria (87th), Bahrain (48th), the Islamic Republic of Iran (76th), Kuwait (38th), Oman (66th), Qatar (18th), Saudi Arabia (29th), the United Arab Emirates (16th), and Yemen (138th)—are experiencing lower growth, higher fiscal deficits, and rising concerns about unemployment. Growth in Gulf Cooperation Council (GCC) economies averaged 5.2 percent between 2000 and 2012, but fell to 2.5 percent in 2015. The forecast for 2016 is also 2.5 percent,16 and rising oil supplies are expected to keep prices low and limit growth expectations for the coming years.
39. 1 .1: Findings from the Global Competitiveness Index Figure 17: GCI rank of oil importers and oil exporters in the Middle East and North Africa, 2016–2017 edition Higher education and training Goods market efficiency Labor market efficiency Financial market development Technological readiness Market size Business sophistication Innovation 11 28 18 27 13 25 30 7 17 21 33 50 18 18 46 41 65 47 41 14 31 42 76 94 85 115 65 60 51 61 110 34 44 22 35 43 37 92 33 45 81 69 85 51 82 55 57 68 66 76 28 48 28 24 32 21 19 22 57 21 2 56 118 80 51 43 87 68 75 75 36 40 50 58 49 77 104 64 124 83 81 55 76 96 99 100 63 73 96 133 132 132 108 36 121 112 38 40 18 2 27 31 68 51 52 6 32 113 28 38 24 31 63 34 Morocco 70 Algeria 87 Institutions 4 Country/economy Global Competitiveness Index Health and primary education 3 Macroeconomic environment 34 Infrastructure Oil-importing economies Oil-exporting economies PILLARS United Arab Emirates 16 7 Qatar 18 10 Saudi Arabia 29 24 Kuwait 38 59 Bahrain 48 25 Oman 66 Israel Jordan Tunisia 95 78 83 99 59 93 113 133 119 80 69 101 104 Lebanon 101 119 117 136 52 66 55 104 69 72 76 50 58 Egypt 115 87 96 134 89 112 112 135 111 99 25 85 122 Yemen 138 137 136 138 117 136 131 137 138 136 89 129 138 n 1–20 n 21–40 n 41–60 n 61–80 n 81–100 n 101–120 n 121–138 Source: Authors' calculations. With a growing youth population, creating employment opportunities in the private sector is crucial to ensuring a prosperous future: the United Nations estimates that 3.8 million people will enter the labor force in the region by 2021.17 This creates pressure for structural economic reform in order to diversify and increase productivity. Although the region’s oil-exporting countries are diverse in terms of their competitiveness (see Figure 17), two commonalities can be observed. First, despite recent privatization efforts, most national economies remain state-dominated (in particular in the extractive industries) and not sufficiently diversified. In Saudi Arabia, for example, the state’s stake in state-owned enterprises amounts to 19.8 percent of GDP; in the UAE, this is 21.8 percent; and in Qatar, 23.1 percent. The oil sector remains predominant in many countries, with the oil GDP as share of total GDP ranging from 19.5 percent in Yemen to 62.9 percent in Kuwait.18 Competition remains constrained throughout the region: the level of domestic competition and openness to foreign trade and investment remains below OECD levels for most countries. Efficiency and productivity could be improved by continued privatization, reducing regulatory barriers to entry for domestic companies, and making business environments more welcoming for foreign direct investment and more conducive to the growth of smalland medium-sizes enterprises. Second, as the Fourth Industrial Revolution gathers pace, putting in place innovation, technological readiness, and health and primary education will be increasingly important. Oil-exporting countries in the Middle East and North Africa region have room for improvement in these areas, which should go hand in hand with diversification away from the energy sector. The most competitive economy in this group, the United Arab Emirates, is also the most diversified and has made great strides toward improving technological readiness and innovation since 2011, moving from 30th to 18th and from 28th to 25th on the related pillars of the GCI, respectively. Growth in the region’s oil-importing Arab economies—Egypt (GCI rank of 115th), Jordan (63rd), Lebanon (101st), Morocco (70th), and Tunisia (95th)— has also slowed, down from 5.4 percent on average between 2000 and 2012 to 1.9 percent in 2015, often as a result of spillover effects from regional conflict.19 Key priorities for these countries continue to be fostering employment and making economies more inclusive to meet the population’s demands for higher living standards and economic opportunities. This will require reforms that aim to strengthen the private sector: The Global Competitiveness Report 2016–2017 | 23
40. 1 .1: Findings from the Global Competitiveness Index Figure 18: GCI score range across the 12 pillars in sub-Saharan Africa (SSA), 2016–2017 edition Score (1–7) 7 Botswana Mauritius 6 Rwanda 5 Rwanda South Africa Mauritius Mauritius Mauritius Nigeria South Africa South Africa South Africa 4 3 Chad Nigeria Chad Best SSA Median SSA Worst SSA China Mauritania Mauritania 2 Malawi Congo, Dem Rep. Mauritania Mauritania The Gambia 1 Institutions Infrastructure Mauritania Chad Macro- Health and Higher Goods economic primary education market environment education and training efficiency Labor Financial Technological market market readiness efficiency development Market Business Innovation size sophistication GCI pillar Source: Authors’ calculations. Note: China, the region’s main trading partner, is included for reference. promoting competition, reducing red tape, and making labor markets more flexible are key challenges across all countries. The drop in oil prices creates a window of opportunity to tackle long-standing energy subsidies, which would allow for more competitiveness-enhancing investments and help to stabilize the macroeconomic environment, which remains strained in most countries. Although most of the oil-importing countries in the region are facing declining or stagnating competitiveness, Israel (24th) improves by three positions as it continues to build on its positioning as one of the most innovative economies in the world (2nd). Sub-Saharan Africa Sub-Saharan Africa’s competitiveness has slightly weakened year on year, mainly as a consequence of deteriorating macroeconomic environments across the region (Figure 18). Public finance has been put under stress by economic slowdowns among trading partners and persistently low commodity prices, which affect the commodity-exporting countries. These factors help to explain why growth has dropped from over 5.0 percent two years ago to only 3.5 percent in 2015 and is projected to fall further, to 3.0 percent, in 2016. Short-run pressure on public funds may have longlasting effects on African economies by reducing muchneeded investments in infrastructure and education, while higher uncertainty about country financial risks could shrink private investments. Slower growth and 24 | The Global Competitiveness Report 2016–2017 falling commodity prices have already started to affect the African financial sector, reducing liquidity and tightening credit conditions. As a result, although the banking system remains generally solid, business leaders rate the banking environment as worsening in two-thirds of the countries assessed by the GCI, and access to finance is mentioned more often as a problematic factor for doing business in the region. Improvements have been achieved in the business environment, information and communication technologies, and infrastructure, but these have been insufficient to improve overall productivity levels, as reflected by a substantially stable GCI performance at the regional level (this changed by less than 1 percent compared to the last edition). Continued progress in these areas will be challenging, given low commodity prices and low growth trajectories in advanced and emerging economies—but progress is necessary, as these countries are among the areas where Africa still has the largest disparities with the world’s most competitive economies. Improving infrastructure, technological readiness, and health and primary education continue to be sub-Saharan Africa’s main priorities as the region seeks to reap the demographic dividend by creating more employment opportunities for the millions of youth who will enter the labor market every year (Figure 19). Country performances in sub-Saharan Africa vary widely, reflecting economic and political conditions.
41. 1 .1: Findings from the Global Competitiveness Index Not all commodities have faced declining prices and demand: economies relying on oil and gas have been harder hit than those exporting gold or cotton.20 Droughts have also impacted agriculture unevenly, affecting the Horn of Africa and Southern Africa more severely than other areas. Politically, 2016 has been an election year in a number of countries (notably Cape Verde, the Democratic Republic of Congo, Ghana, and Uganda), increasing uncertainty in the business environment. Health and security situations have impacted the fundamentals of competitiveness in some countries, especially with continuing Ebola cases in Liberia and Sierra Leone and terrorism attacks in parts of West Africa, namely Côte d’Ivoire, Cameroon, and Nigeria. Mauritius (ranking 45th) and South Africa (47th) remain the region’s most competitive economies, climbing two places and one place, respectively. South Africa maintains its regional leadership in terms of financial markets, competition, infrastructure, and education, despite recent challenges from exchange rate volatility, governance concerns, and policy uncertainty, as reflected in the institutions pillar. Five sub-Saharan Africa economies improve their GCI rankings by three to six positions and their scores by 2 percent or more: Rwanda (52nd), Botswana (64th), Ghana (114th), Tanzania (116th), and Sierra Leone (132nd). Ghana, which improves the most, advances in labor market efficiency; along with Rwanda and Tanzania, it also strengthens its macroeconomic environment and improves its infrastructure, education, and institutions. Sierra Leone’s five-place rise is mainly thanks to recovering health conditions and infrastructure, while Botswana also gains five places thanks to a better performance in infrastructure, higher education, and goods market efficiency. The region’s biggest losers this year are Zambia (118th), down an exceptional 22 positions, and Côte d’Ivoire (99th), down eight places—although its score fell by less than 2 percent. Côte d’Ivoire’s economy is growing at a rate of more than 8 percent, and its decline in ranking mainly reflects political uncertainty in an election year, growing terrorism concerns after the Grand-Bassam shooting in March, and concern about institutions. Zambia’s decline is driven by difficulties in public finance and a lower performance in institutions, infrastructure, and goods market efficiency. The country has been affected this year by power shortages, low copper prices, and political uncertainty ahead of August’s elections.21 ECONOMY HIGHLIGHTS This section discusses performance highlights for selected economies, including the top 10 most competitive and G20 economies outside the top 10.22 Economies are listed in rank order. The performance of Figure 19: Working age population, regional trend Working age population, billion 3.0 2.5 2.0 — — — — 1.5 Asia Europe Latin America and the Caribbean Sub-Saharan Africa 1.0 0.5 0.0 1995 2005 2015 2025 2035 2045 2055 2065 2075 Source: United Nations, Department of Economic and Social Affairs, Population Division (2015). World Population Prospects: The 2015 Revision, custom data acquired via website. Note: Working age population is defined as people aged between 25 and 64. selected additional countries is described in the Country/ Economy Profiles in part 2 of this Report. For the eighth consecutive year, Switzerland tops the GCI, achieving an even higher score than in previous years. Although its performance remains largely unchanged from last year, a small score improvement means Switzerland achieves the highest GCI score since the introduction of the current methodology in 2007. The country features in the top 10 of 11 GCI pillars and tops four of them: labor market efficiency, business sophistication, innovation, and technological readiness (for the first time). Switzerland arguably possesses one of the world’s most fertile innovation ecosystems, combining a very conducive policy environment and infrastructure, academic excellence, an unmatched capacity to attract the best talent, and large multinationals that are often leaders in their sector as well as a dense network of small- and medium-sized enterprises across sectors that has a reputation for quality and a strive for innovation. Furthermore, intense collaboration between the academic and business worlds yields innovative products with commercial applications. Among the country’s relative weaknesses are the persistent and deepening deflation (1.1 percent in 2015), the relative lack of market competition, hindrances to business creation, relatively high barriers to entry, and the low level of women’s participation in the labor force in comparison with other advanced economies. Singapore ranks 2nd for the sixth year in a row thanks to a remarkably strong performance. It features in the top 10 of ten pillars. It tops the higher education and training pillar and the goods market efficiency pillar, and ranks 2nd in a further five. Singapore’s public institutions (2nd behind Finland) are transparent and highly efficient (1st on public-sector performance). Its infrastructures are among the world’s best (2nd behind Hong Kong). Singapore boasts a stable macroeconomic environment The Global Competitiveness Report 2016–2017 | 25
42. 1 .1: Findings from the Global Competitiveness Index (11th) with healthy public finances (government budget has been in surplus since 2010). Singapore still lags behind the best-performing nations in the most sophisticated areas of competitiveness, with a relatively disappointing 19th rank in the business sophistication pillar and 9th rank in the innovation pillar. The United States remains stable overall in 3rd position, showing improvement in areas including macroeconomic stability, the result of a declining budget deficit. Non-tariff barriers appear less burdensome than in the past. However, stagnating productivity has called for a downward revision of growth prospects, highlighting the need for a renewed competitiveness agenda even in the top-ranking economies. Despite being in the top 10 best-ranked economies and recent positive news showing recovering income growth across all income groups,23 the United States does not rank in the top 10 on any of the basic requirements pillars (institutions, infrastructure, macroeconomic environment, health and primary education). On the efficiency enhancers subindex, it is not within the top 10 on goods market efficiency or technological adoption. The position of the United States is driven by innovation, business sophistication, market size, financial market development, labor market efficiency, and higher education and training. These findings highlight important challenges if the country is to remain in the top 10 over the long term, and possible bottlenecks indicating the supply-side constraints that are holding back progress and reducing the effectiveness of monetary policy for jump-starting growth. The Netherlands continues its climb toward the top of the Index, improving its score and rising by one spot to 4th. This is the result of small improvements across all three subindexes, with a solid and even performance across the pillars including top 10 ranks for infrastructure, health and primary education, higher education and training, goods market efficiency, technological readiness, business sophistication, and innovation. The Netherlands scores especially high on the quality of its scientific research institutions (4th) and closeness of links between universities and the private sector (5th). Success stories of social innovation are particularly frequent in the Netherlands.24 One weakness is its 37th rank in financial market development, as both the perceived efficiency of and confidence and trust in the financial sector are low. On a continued upward trend, the country registers large positive moves again this year for labor market efficiency indicators, including for ease of hiring and firing; this comes in the wake of the entry into effect of the Work and Security Act in mid-2015.25 Importantly, the Act attempts to improve the position of flexible workers and simplifies dismissal procedures. Despite a slight improvement in its overall score, Germany drops one place to 5th. Its macroeconomic 26 | The Global Competitiveness Report 2016–2017 environment is generally stable, with a very low government deficit, yet—like the rest of the euro zone— it faces near-zero inflation. The country continues to push the innovation frontier, ranking high on the pillars of technological readiness (10th), innovation (5th), and business sophistication (3rd). Germany does well in efficiently using its talent (14th), supported by management practices that encourage worker involvement. As recent empirical evidence suggests, this type of decentralized management is effective in incentivizing quality upgrades and other types of product improvements,26 which in turn boost export competitiveness.27 An important labor market challenge for the coming year will be the integration of the large numbers of migrants, many of whom arrived over the course of 2015; first steps have been taken to lower labor market entry barriers for asylum seekers.28 An improvement from 82nd to 65th is registered in an important business environment indicator, as the number of days to start a business is reduced from 14.5 to 10.5. Yet the data show a longer-term deterioration in another dimension of the business environment with a drop to 58th on the security indicators. Sweden moves up three places to 6th with improvements in the basic factors of competitiveness, especially the macroeconomic environment. Growth has been robust, at 3.7 percent in 2016,29 and the country has managed to significantly decrease its deficit in 2015, jumping 30 places to 22nd on this indicator. The labor market functions reasonably well and Sweden has a high employment rate, with a high level of women’s participation in the workforce. However, there is still room for improvement in labor market flexibility: Sweden has dropped 26 places to 120th in terms of the effect of taxation on incentives to work, and restrictive labor regulations are perceived as the second most problematic factor for doing business. The country also faces a difficult housing market: a continued increase in house prices could impede mobility and negatively impact labor market efficiency.30 Sweden is well equipped to embrace the Fourth Industrial Revolution, with a strong score on technological readiness and ranked within the top 10 in innovation. However, the availability of scientists and engineers is falling (down six places to 20th)—a reminder that renewed efforts to invest in human capital and skills are necessary to ensure long-term competitiveness and innovation capacity. Currently the United Kingdom is still one of the most competitive economies in the world, moving up three places to 7th on the back of marginal score improvements. Note that the data were collected before the Brexit vote, so initial repercussions from the vote are not captured by this year’s Index. Although the process and the conditions of Brexit are still unknown, it is likely to have a negative impact on the
43. 1 .1: Findings from the Global Competitiveness Index United Kingdom’s competitiveness through goods and financial markets as well as market size and, potentially, innovation. Competitiveness of the UK economy has, up to now, rested on highly efficient goods and labor markets (9th and 5th, respectively); business processes are highly sophisticated (7th) and supported by a high level of digital readiness by both businesses and consumers (3rd). Last year saw a partial recovery in the macroeconomic environment (up 23 to 85th) and an improvement in financial market conditions, although in general scores were mostly stable. For a detailed discussion of the potential impacts of Brexit, see Box 5. Japan (8th) loses two places, overtaken by Sweden and the United Kingdom. The macroeconomic situation (104th) continues to undermine Japan’s competitiveness performance, although the situation has improved over the past year (up 17 places) thanks to a lower, yet still very large, budget deficit. Inflation is now again very close to zero and the 2 percent target set by the Bank of Japan has been met only once since Shinzo Abe became Prime Minister. Japan is also beset by the rigidities and lack of dynamism of its labor market (19th). Despite progressing eight places, Japan still ranks a low 115th on the ease of hiring and firing. The ratio of women to men in the labor force (77th) is one of the lowest among high-income economies and Japan remains a rather unattractive destination for foreign talent (77th). The domestic market is relatively uncompetitive and closed, with high barriers to entry and to business creation. On the brighter side, Japan features in the top 10 of five pillars. It notably boasts an excellent infrastructure (5th) and firms are highly sophisticated (2nd), typically employing unique products and production processes (2nd) with significant control over international distribution (5th). High-quality research institutions (13th) and company spending on R&D (4th), coupled with an excellent availability of scientists and engineers (3rd), contribute to the country’s overall highly innovative environment (5th). Yet Japan’s innovation prowess seems to be eroding: consistently ranked in the top 5 between 2007 and 2015, Japan loses three positions and now ranks 8th. Ranked for the fifth consecutive year in the top 10, Hong Kong SAR (9th, down two) achieves a strong and consistent performance: it ranks no lower than 33rd in any of the pillars and features in the top 10 of seven of them.31 It tops the infrastructure pillar for the seventh time, reflecting the outstanding quality of its facilities across all modes of transportation. Its financial sector (4th) is very well developed, highly sophisticated, trustworthy, and stable. Hong Kong’s domestic market is highly competitive, efficient, and one of the most open in the world. Its labor market is among the world’s most flexible and efficient (3rd worldwide). Finally, Hong Kong is hyper-connected and it boasts some of the highest rates of Internet use and mobile telephony penetration. Its business community is also highly sophisticated (17th). The challenge for Hong Kong is to evolve from one of the world’s foremost financial hubs to become an innovative powerhouse: with the exception of the market size pillar (33rd), innovation remains the weakest aspect (27th) of Hong Kong’s performance and the business community consistently cites the capacity to innovate as their biggest concern. Finland drops two places to 10th, mainly as a result of its weakening macroeconomic environment. The country has been hit hard by the global economic downturn—especially the fall of exports to Russia and the drop in demand for paper and electronic exports32— which has hurt Finland’s competitiveness for the past three years. Although some improvements are perceived in the labor market (up three places to 23rd), with an improvement in the efficient use of talent (up one to 6th), these are offset by the market’s rigidity (102nd): restrictive labor regulation is identified as the most problematic factor for doing business. The government’s planned reforms in this area are to be commended.33 Finland can count on its first-class, efficient, and transparent institutions and its high-quality education system. Finland is also well positioned in terms of innovation, with its capacity to innovate supported by the excellent availability of scientists and engineers (1st) and a high degree of collaboration between universities and industry (2nd). Canada drops slightly, by two places, to 15th. Since 2007, the most positive contributions to Canada’s competitiveness score have come from improvements in technological readiness, health and primary education, and labor market efficiency. On the other hand, this year sees a continuing downward trend in innovation, business sophistication, financial market development, infrastructure, and goods market efficiency. Canada ranks among the top 10 countries in health and primary education, labor market efficiency, and financial market development. These strengths, together with monetary and fiscal policy, are helping the Canadian economy adjust to the fall in commodity prices, falling investment in the energy sector, and declining employment in energy-producing provinces. The negative income shock from the fall in terms of trade affected growth, but has been met by improvements in non-energy-exporting sectors. The shift of Canada to non-resource-led growth will benefit from the competitiveness strengths of the country but also requires work on the pillars that do not make it to the top 10. The United Arab Emirates (UAE) improves by one place to 16th as it continues to lead the Middle East and North Africa region, building on improvements in competitiveness in recent years. This year small gains in areas such as technological adoption and business sophistication are partially offset by deteriorating macroeconomic stability that is the result of lower energy The Global Competitiveness Report 2016–2017 | 27
44. 1 .1: Findings from the Global Competitiveness Index prices, which have led to a rise in inflation and public debt and to the emergence of a fiscal deficit. Overall, the UAE boasts a number of competitive strengths: infrastructure is top notch (4th overall) and goods and labor markets are open and efficient. Going forward, for the country to diversify its economy, enhancing innovation—where the country currently ranks 25th—will be crucial. There is equal scope for better leveraging digital technologies that are an important enabler of business innovation. Currently the country ranks 29th in ICT use. France remains stable this year (moving up one spot to 21st). Its largest improvement is in the innovation and sophistication subindex (15th, up five), although the underlying score improvements are small. The macroeconomic environment (67th) is improving but still weak: although the budget deficit has been reduced, government debt is approaching 100 percent of GDP and inflation is near zero. Relatively low levels of efficiency of both the goods and labor markets have traditionally weighed down competitiveness in France. In a move that should ultimately boost competitiveness, the French government pushed through wide-ranging labor market reforms in July 2016 against considerable opposition. Going forward, France will need to ensure that its talent base does not erode: the GCI data suggest that France’s capacity to attract and retain talent has deteriorated since last year (51st, down nine, and 86th, down 23, respectively); this includes the availability of scientist and engineers, although the talent pool is still relatively large in this case (26th overall). Australia’s (22nd) performance is stable compared with the previous edition and remarkably consistent yet never stellar—Australia does not rank lower than 28th across the 12 pillars, and it ranks in the top 10 of three pillars. Notable strengths include access to education and the quality of its education system. Australia places 10th in the health and primary education pillar and 9th in higher education and training. Improving further, Australia now ranks 6th overall in the financial development pillar, thanks to the high level of trust and confidence in the system. The efficiency of the labor market, where Australia used to rank in the 50s, improves further (28th, up eight)—a gain of almost 30 places over the past three years. Despite the prolonged commodity bust, Australia’s performance in the macroeconomic situation (23rd, up five) is strong, with the government reducing the fiscal deficit to less than 3 percent. Innovation represents Australia’s challenge and imperative in the face of low commodity prices and China’s slowdown. In both business sophistication (28th, down one) and innovation (26th, down three), Australia not only lags far behind the best performers but also loses ground to them. The Republic of Korea places 26th for the third consecutive year. This stable overall position conceals some notable improvement in a number of pillars. 28 | The Global Competitiveness Report 2016–2017 Building on healthy public finances, the country improves two places to a remarkable 3rd rank (behind Norway and Qatar) in the macroeconomic environment pillar. Korea also makes strides in the institutions pillar (63rd, up six), owing to improved public-sector performance (77th, up seven), security situation (55th, up 19), and corporate accountability (60th, up 15). Korea also post gains in infrastructure, entering the top 10 of this pillar for the first time. In the labor market efficiency pillar, one of the areas where it has struggled the most historically, Korea is improving, but from a low base (77th, up six), suffering from rigidities (119th): it notably ranks 113th for the ease of firing and hiring workers, 112th for the average cost of redundancy, and 135th for the quality of social dialogue. After several years of decline, the country improves markedly in the financial development pillar (80th, up seven), posting gains in all indicators within the pillar except one. Although credit access conditions and low confidence in the banking system remain of concern, this encouraging development suggests that the financial reforms initiated by the government are starting to bear fruit. Finally, the quality of Korea’s innovation remains excellent although it has eroded over the past year (20th, down one). China retains its 28th rank for the third year in row. Its overall score improves, thanks to progress in some of the more sophisticated areas of competitiveness that contribute to shaping the country’s innovation ecosystem. These include higher education (54th, up 14), innovation (30th, up one), and business sophistication (34th, up four). This bodes well for the future while China transitions to a new normal, where growth will need to be increasingly driven by innovation.34 Yet China still lags behind in technological readiness (74th, unchanged) despite a significant improvement in all components of this category since last year. A more widespread adoption of technology by business and the population at large will increase productivity and create a more fertile innovation ecosystem. The gains posted in these categories are partially offset by a worsening fiscal situation—the budget deficit more than doubled between 2014 and 2015, to reach 2.7 percent of GDP— but China still ranks a strong 8th in the macroeconomic pillar. In addition, little progress has been made over the past year in two areas that are critical for accelerating the transition to a new growth model. First, goods market efficiency (56th, up two) is undermined by various distortions, including the lack of competition caused by high barriers to entry for foreign firms (113th) and new businesses—it takes over a month to start up a business. Second, inefficiencies and instability characterize the financial sector (56th, down two)—the result of inefficiencies, non-performing loans, lack of competition, and suboptimal allocation of capital.35 Saudi Arabia comes in at 29th, losing four places mainly as a result of a deteriorating macroeconomic
45. 1 .1: Findings from the Global Competitiveness Index environment following the drop in energy prices. The country has recently revealed its ambitious economic development program, which aims at widespread diversification of the economy in order to reduce dependence on oil by 2030. Achieving higher diversification will require building capacities in highend industries and services sectors. Strengthening education, particularly in terms of the quality of math and science training but also in management and primary education, will be necessary, but so will be a more flexible labor market that ensures that talent is used efficiently. Significant potential for improvement also exists with respect to financial markets, which remain less stable than in peer economies. India climbs for the second year in a row, to 39th. Its 16-place improvement is the largest this year. India’s competitiveness has improved across the board, in particular in goods market efficiency, business sophistication, and innovation. Thanks to improved monetary and fiscal policies, as well as lower oil prices, the Indian economy has stabilized and now boasts the highest growth among G20 countries. Recent reform efforts have concentrated on improving public institutions (up 16), opening the economy to foreign investors and international trade (up four), and increasing transparency in the financial system (up 15). Still, a lot needs to be done. The labor market is segmented between workers protected by rigid regulations and centralized wage determination (112th), especially in the manufacturing sector, and millions of unprotected and informal workers. The efficiency of the domestic market (81st) is hindered by fiscal regulations that allow federal states to levy different levels of value-added taxes; large, publicly owned enterprises further reduce the overall efficiency of the economy, especially in the utilities sector and the financial market, where there is growing concern about the incidence of non-performing loans. Finally, lack of infrastructure (68th) and ICT use (120th) remain bottlenecks. Improvement has been slow in recent years and further investment will be necessary, especially to connect rural areas and make sure they can equally benefit from and contribute to the country’s development. Indonesia (41st) drops four places as it is overtaken by a few countries. Despite many reforms to its business environment, its performance remains one of contrasts: the country ranks 10th for market size, 30th in the macroeconomic environment pillar—in spite of the protracted commodity bust—and 31st for innovation. It performs well in terms of financial development (42nd, up seven). But Indonesia ranks a low 100th in the health and basic education pillar (down 20),36 and 108th in the labor market efficiency pillar (up seven) as a result of various rigidities, prohibitive redundancy costs that amount to over a year’s worth of salary (133rd), and the low labor force participation rate of women (115th). Indonesia also ranks a low 91st in the technological readiness pillar (down six) because ICT penetration remains low— only one fifth of the population uses the Internet and there is just one broadband connection for every 100 people. However, technology uptake by firms is more widespread (53rd). The Russian Federation fell into recession in 2015, with its GDP shrinking by 3.7 percent, but nonetheless remained rather stable in terms of its competitiveness (up two places at 43rd). This is partly the result of strengthened fundamentals, including the quality and quantity of education (up six places) and innovation capacity (up 12, although from a low base), along with an improved domestic business environment, and less negative domestic business sentiment than expected. Low commodities prices are affecting the Russian Federation somewhat less than other Eurasian economies: the level of government debt remains relatively low and gross national savings are almost unchanged. According to the IMF, economic measures such as exchange rate flexibility, banking sector capital and liquidity injections, limited fiscal stimulus, and regulatory forbearance “cushioned the shocks, and helped restore confidence and stabilized the financial system.”37 Nonetheless, the commodity price shock is still having a profound impact on the Russian economy: with sharply reduced public revenue and higher inflation, the Russian macroeconomic environment is much less sound, dropping to 91st place. The financial sector is suffering from a lower inflow of capital related to mineral revenues and the quasi-closure of international financial markets to Russian entities, as seen in the reduced availability of loans and venture capital. Italy’s competitiveness score has improved but more slowly than others’, and it slips one spot to 44th. Its financial and labor markets and institutions continue to be its weakest areas, with rankings below 100th. Reforms implemented in recent years have improved businesses’ perception of ethics and corruption (up 14), but publicsector performance remains poor, with pervasive red tape and a highly inefficient judicial system. Italy’s labor market has become more efficient (up 17 since 2014): hiring and firing practices have been made more flexible and a framework was provided for more decentralized wage determination, but the full benefits of these reforms will require time and more cooperative laboremployer relations. In the meantime, Italy continues to squander its talent: in the south of the country, only one in three women work (according to the Italian Institute of Statistics (ISTAT), women’s employment rate in southern Italy was 30.6 percent in 2015), while reforms to the pension system introduced in 2012, albeit necessary, have further closed the job market to youth. Financial market development (122nd) is Italy’s weakest link: the banking sector is burdened by non-performing loans, and some institutions need recapitalization. Recent scandals The Global Competitiveness Report 2016–2017 | 29
46. 1 .1: Findings from the Global Competitiveness Index in mutual banks have further undermined trust, while governance issues—including the strong link with local banking foundations—have been only partially addressed. Italy has strengthened its macroeconomic position, but public debt remains high in light of low inflation. Innovation and business sophistication remain among the strengths of the Italian economy and Italy continues to improve important dimensions of its digital readiness as seen in the World Economic Forum’s Global Information Technology Report 2016. South Africa slightly improves both its score and ranking (47th, up two). It has been relatively less affected by commodity price falls than other economies in the region, and has registered marginal improvements in almost all aspects of competitiveness. Most significant areas of progress include enhanced competition, both locally (up 13 places) and internationally (up 16 places); better use of talent in terms of how pay reflects productivity (98th, up 29 places); and a small but important upgrade in the quality of education (up five places), with primary school enrollment also now passing 97 percent. However, a number of shortcomings may limit South African competitiveness going forward. Infrastructure development has stalled, both in transport and electricity, with power shortages experienced this year. Institutional quality has diminished, with increased political uncertainty, less transparency, some security concerns, and business leaders having less trust in politicians (down 11 places since last year). The slowdown of the Chinese economy and exchange rate volatility may dampen growth, now forecast at 0.1 percent for 2016. This makes it unlikely that the high unemployment rate will diminish soon, hampering the ability to leverage Africa’s demographic dividend. Mexico improves six positions to 51st place, mainly driven by gains in market efficiency. Domestic and foreign competition in the goods market all improve significantly, reflecting the results of competition and trade policy reforms. Labor markets have boosted flexibility and incentives, and financial markets have improved affordability. Primary education continues to be a significant competitiveness weakness compared to regional and global leaders, and institutional quality is lagging. The Mexican economy has been hit by falling oil prices, weak global trade, and a resulting fall in industrial production. However, it is still one of the most competitive economies in the region, and is making progress on some of the fundamental drivers of future prosperity. Turkey drops four places to 55th (note that the data were collected before the attempted coup in July 2016). Nevertheless, considering the unstable geopolitical situation in neighboring countries and the pressures from migration—Turkey accounts for 56 percent of all registered Syrian refugees38—the country has proven economically resilient. Its relative 30 | The Global Competitiveness Report 2016–2017 strengths include infrastructure, despite a lower score this year, and its macroeconomic environment (up 14 places to 54th)—in the face of persistently high inflation, the fall in oil prices has helped the country reduce its government budget deficit and debt. Turkey has made gains in higher education and training (up five places to 50th), increasing enrollment rates in secondary and tertiary education. However, building a highly skilled workforce will require improving the quality of education and investing in on-the-job training. Weaknesses in the labor market (126th) need to be urgently addressed through structural reforms to increase flexibility and use talent more efficiently. To create a more dynamic business environment, domestic competition needs to be improved (Turkey drops 11 places to 53rd), and investments are needed to develop a sound innovation ecosystem to help the country move up the global value chain. This includes improving business sophistication and fostering companies’ innovation by boosting workforce qualifications—the quality of scientific research institutions drops this year to 103rd. Reforms are also needed to make public institutions more efficient and transparent. Jordan retains its position at 63rd place despite the daunting challenges it has to face as a result of the geopolitical situation in the region. Jordan has the advantage of having a fairly efficient goods market (43rd) because of a certain intensity of domestic competition that raises the efficiency of firms. The country also has relatively efficient financial markets (33rd), although trustworthiness and confidence in the financial sector needs to be strengthened (107th) and the labor market has some flexibility (29th). Going forward, Jordan can take advantage of its fairly vibrant business sector (36th) and healthy level of adoption of technologies from abroad (40th) to achieve a higher, more sustainable growth path. Addressing macroeconomic challenges will be key to freeing up public funding for competitivenessenhancing investment, in particular in education (91st on primary education and 64th on enrollment in secondary and tertiary levels). In the context of negative terms of trade shocks and political turmoil, Brazil falls six positions to 81st. This is driven mainly by deteriorating goods, labor, and financial markets. On the institutional side, security has deteriorated and also the perception of the quality of public-sector administration. However, Brazil has improved in areas such as protection of property rights and measures of undue influence, and the country’s bounce back after a sharp drop last year probably reflects the fight against corruption and for judicial independence. The political uncertainty and the government’s sinking finances are still impediments to consolidating a pro-growth competitiveness agenda in the largest economy in Latin America and the Caribbean. Brazil is currently going through a recession.
47. 1 .1: Findings from the Global Competitiveness Index The country’s growth rate has decelerated steadily, from an average annual growth rate of 4.5 percent between 2006 and 2010 to 2.1 percent between 2011 and 2014, according to the World Bank, and negative growth is projected for 2015 and 2016. Addressing the macroeconomic imbalances facing the country, including large current account and government deficits and increasing inflation, requires improving productivity, starting with the macroeconomic environment and addressing the market distortions affecting how markets work. Cambodia ranks 89th, up one position from last year. Among Asian nations, it is the one that has posted the largest GCI score improvement—from 3.5 to 4.0— since 2007. Despite the positive trend, the challenges are many and significant. Cambodia ranks no better than 50th in any of the 12 pillars of the Index; in half of them it sits beyond the 100th mark. Of particular concern is its mediocre performance in three of the four areas that constitute the basic drivers of competitiveness: institutions (104th, up seven), infrastructure (106th, down five), and health and primary education (103rd, down 16). Moreover, Cambodia ranks 124th in higher education and training, its poorest performance in any pillar. It is estimated that secondary education enrollment is around 50 percent. With a median age of 23.8, Cambodia is home to one of the youngest populations in Asia.39 Ensuring access to quality of education for all should therefore be a policy priority. Argentina gains two positions to 104th, driven mainly by innovation and sophistication factors, reflecting better preparedness to cope with a changing future environment. The quality of institutions improved mainly through better intellectual property protection and a more efficient legal framework. The quality of education and use of talent show signs of progress, as does the efficiency of goods markets. Argentina’s improvement in both ranking and score comes while a new administration implements broad reforms in an adverse external context: the recession in Brazil, Argentina’s main trading partner; low commodity prices; adjustments in utility tariffs; and high inflation have all made the transition toward a more market-oriented model difficult. Consumer sentiment remains weak but growth is expected to rebound, supported by competitivenessimproving reforms. CONCLUSIONS Nearly 10 years after the global financial crisis, the world has not yet fully recovered from the Great Recession that followed. Productivity is falling or stagnant, employment is below peak pre-crisis levels, and growth remains sluggish. Slower growth is magnifying tensions within high-income countries as large segments of the traditionally well-off middle class see their income gains lag behind those of top earners; a growing middle class in emerging countries is demanding better government and public goods. Governments in many of these countries, however, are facing tighter constraints as a result of lower revenues from commodity sectors, and still struggle with the burden of corruption and unfinished work on basic fundamentals of competitiveness such as pro-growth institutions and infrastructure. At the same time, the dawn of the Fourth Industrial Revolution, with rapid leveraging of digital technologies transforming businesses and entire production systems, represents a source of opportunity. Against this backdrop, global competitiveness remains hampered by long-term challenges. Large gaps remain within regions and globally, reflecting the need to work on renewed competitiveness agendas and sources of global inequality. Slow progress among commodity-dependent countries to boost resilience through diversification, and widespread failure to build an enabling environment that allows innovation to truly flourish, create negative feedback loops between low competitiveness, macroeconomic vulnerability, and low diversification. This year, the Report stresses the renewed importance of addressing supply-side constraints to growth. Income levels have recovered faster in countries with better competitive conditions even as those countries have resorted less to quantitative easing, creating less stress on their central banks. The second key finding is that more open economies are also more innovative. Therefore, falling openness—in the form of increased non-tariff barriers to trade and investment—represents a real threat to future prosperity. Although innovation and technology are gaining importance as drivers of competitiveness for all countries, advanced and emerging, the results this year show that all factors of competitiveness are complementary and should be addressed simultaneously. Making sustainable, long-term overall progress requires addressing gaps in all pillars, laying the foundations for more vibrant economies with new productive sectors. The Global Competitiveness Report seeks to help policymakers and the private sector identify areas for fruitful long-term public-private collaboration for growth. The ability to track progress, identify success stories, and prioritize growth agendas is essential for galvanizing multiple stakeholders around structured public-private dialogue that overcomes the constraints of the political cycle and the short-term and special interests of all parties. As the world embraces the Fourth Industrial Revolution, Chapter 1.2 presents progress on a modernized Global Competitiveness Index that will continue to serve as the foremost benchmarking tool for pro-competitive agenda building. The Global Competitiveness Report 2016–2017 | 31
48. 1 .1: Findings from the Global Competitiveness Index NOTES 1 World Bank national accounts data (accessible at http:// data.worldbank.org/) and OECD National Accounts data files (accessible at http://www.oecd.org/std/na/). 24 See The Global Information Technology Report 2016 (World Economic Forum 2016a) where the Netherlands scores highly on social impact of digital innovation. 25 European Commission 2016c; van het Kaar 2014. 2 Schwab 2016. 26 Marin et al. 2015. 3 Eggertsson et al. 2016. 27 OECD 2016b. 4 Bartley Johns et al. 2015; World Bank 2015. 28 OECD 2016b. 5 More detailed results and historical performance for all economies and sortable rankings for all the components of the GCI, as well as a downloadable datasets can be found at http://gcr.weforum.org/. 29 Annual percentage change is from IMF projections in the World Economic Outlook: Too Slow for Too Long (IMF 2016c). 6 When interpreting the data, it is important to keep in mind that we consider economies with small changes in ranking of one or two places as stable because this small ranking change often reflects only small changes in score. This is the case in particular in the middle of the rankings, where economies’ scores are relatively close together and small changes in score can translate to relatively large changes in rank. Another key consideration is that the ranking is relative, so both score and rank need to be considered together when interpreting the results. 7 IMF 2016c. 8 Bustos 2011; Cassiman et al. 2010. 9 See http://www.globaltradealert.org/. 10 European Commission 2016c. 11 Calculated as the sum of total export of mineral resources of Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Moldova, the Russian Federation, Tajikistan, and Ukraine, divided by the sum of these countries’ total merchandise export. Data are sourced from the Trade Competitiveness Map database, Market Analysis and Research, International Trade Centre (ITC), available at http://legacy.intracen.org/marketanalysis/ TradeCompetitivenessMap.aspxITC trade map and the World Bank’s World Development Indicators available at http://data. worldbank.org/data-catalog/world-development-indicators. 12 Both countries scored more than 2 percent higher than last year. 13 See World Bank 2016. In the World Bank’s classification, Developing East Asia and Pacific comprises Cambodia, China, Indonesia, Lao PDR, Malaysia, Mongolia, the Philippines, Thailand, and Vietnam, which are all covered in the GCI 2016–2017, as well as Myanmar, Papua New Guinea, Timor-Leste, and the Pacific Island countries. 14 For a discussion of China’s competitiveness challenges under the “new normal,” see Box 4 in Sala-i-Martín et al. 2015. 15 The middle-income trap defines a state in which an economy has lost its competitive edge in the exportation of manufactured goods because its wages have risen, but are unable yet to compete with more advanced economies in the high-value-added market. 16 IMF 2016b. 17 Quoted in IMF 2016a. 18 Data are for 2014. IMF 2016d. 19 IMF 2016b. 20 Cotton prices were around US$60 per pound at the beginning of 2016 and are now over US$70 per pound. Similarly, gold was quoted at US$1,000 per ounce at the beginning of the year and it has now passed the US$1,350 per ounce mark (Bloomberg commodities market quotation online, available at http://www. bloomberg.com/markets/commodities; prices were accessed on August 24, 2016). 21 From US$240 per pound in the Fall of 2015 to US$2,111 per pound today (Bloomberg commodities market quotation online, available at http://www.bloomberg.com/markets/commodities; prices were accessed on August 24, 2016). 22 Countries where the World Economic Forum is holding regional meetings are also included in this section. 23 Proctor et al. 2016. 32 | The Global Competitiveness Report 2016–2017 30 IMF 2015. 31 The Executive Opinion Survey 2016 results for Hong Kong SAR were excluded. The results from the 2014 and 2015 editions of the Survey were used instead for the computation of the GCI. For more information, refer to Chapter 1.3 of this Report. 32 OECD 2016a. 33 European Commission 2016a. 34 For a discussion of China’s “new normal,” see Box 4 in Sala-iMartín et al. 2015. 35 For a discussion of vulnerabilities of China’s financial sector, see Box 1.4 in The Global Risks Report (World Economic Forum 2016b). 36 The drop of 20 places in this pillar of the index is largely caused by the dramatic increase reported by the World Health Organization of tuberculosis incidence between 2013 and 2014. 37 IMF, Article IV 2016 Russian Federation Consultation. 38 OECD 2016c. 39 United Nations 2015. REFERENCES Ahmed S, M. Appendino, and M. Ruta. 2015. “Depreciations without Exports? Global Value Chains and the Exchange Rate Elasticity of Exports.” World Bank Policy Research Working Paper No. WPS7390, Washington, DC: World Bank. Baldwin, R. E., ed. 2016. Brexit Beckons: Thinking Ahead by Leading Economists. eBook. VoxEU.org, CEPR Press. 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51. 1 .1: Findings from the Global Competitiveness Index Appendix A: Methodology and Computation of the Global Competitiveness Index 2016–2017 This appendix presents a short description of each pillar of the Global Competitiveness Index 2016–2017 (GCI) and of the application of the concept of stages of development to weight the Index. For a more detailed description and literature review for each pillar, refer to Chapter 1.1 in The Global Competitiveness Report 2014– 2015.a The appendix also presents the detailed structure of the GCI and explains how the Index is computed. THE TWELVE 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. This open-endedness is captured within the GCI by including a weighted average of many different components, each measuring a different aspect of competitiveness. The components are grouped into 12 categories, the pillars of competitiveness: 1st pillar: Institutions The institutional environment of a country depends on the efficiency and the behavior of both public and private stakeholders. The legal and administrative framework within which individuals, firms, and governments interact determines the quality of the public institutions of a country and has a strong bearing on competitiveness and growth. It influences investment decisions and the organization of production and plays a key role in the ways in which societies distribute the benefits and bear the costs of development strategies and policies. Good private institutions are also important for the sound and sustainable development of an economy. The 2007–08 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. 2nd pillar: Infrastructure Extensive and efficient infrastructure is critical for ensuring the effective functioning of the economy. Effective modes of transport—including high-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. 3rd pillar: Macroeconomic environment The stability of the macroeconomic environment is important for business and, therefore, is significant for the overall competitiveness of a country. 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. 4th 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. In addition to health, this pillar takes into account the quantity and quality of the basic education The Global Competitiveness Report 2016–2017 | 35
52. 1 .1: Findings from the Global Competitiveness Index received by the population, which is increasingly important in today’s economy. Basic education increases the efficiency of each individual worker. 5th 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. 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-the-job training—which is neglected in many economies—for ensuring a constant upgrading of workers’ skills. 6th 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. 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 customeroriented and thus imposes the discipline necessary for efficiency to be achieved in the market. 7th 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. Efficient labor markets must also ensure clear strong incentives for employees and 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 of the labor market that are growing more important as talent shortages loom on the horizon. 36 | The Global Competitiveness Report 2016–2017 8th pillar: Financial market development An efficient financial sector allocates the resources saved by a nation’s population, as well as those entering the economy from abroad, to the entrepreneurial or investment projects with the highest expected rates of return rather than to the politically connected. Business investment is 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. 9th pillar: Technological readiness The technological readiness pillar measures the agility with which an economy adopts existing technologies to 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. 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. 10th 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. 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. 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. 11th pillar: Business sophistication 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 stage of
53. 1 .1: Findings from the Global Competitiveness Index 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. 12th pillar: Innovation The last pillar focuses on innovation. 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. In these economies, firms 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 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. 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. The detailed structure and methodology used to compute the GCI are presented at the end of this appendix. STAGES OF DEVELOPMENT AND THE WEIGHTED INDEX Although all of the pillars described above will matter to a certain extent for all economies, it is clear that they affect different economies in different ways. 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 unskilled labor and natural resources.b Maintaining competitiveness at this stage of development hinges primarily on well-functioning public and private institutions (1st pillar), a well-developed infrastructure (2nd pillar), a stable macroeconomic environment (3rd pillar), and a healthy workforce that has received at least a basic education (4th pillar). 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 (5th pillar), efficient goods markets (6th pillar), well-functioning labor markets (7th pillar), developed financial markets (8th pillar), the ability to harness the benefits of existing technologies (9th pillar), and a large domestic or foreign market (10th pillar). 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 using the most sophisticated production processes (11th pillar) and by innovating new ones (12th pillar). 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. 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 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 innovationdriven stage. The weights attributed to each subindex in every stage of development are shown in Table 1. Two criteria are used to allocate countries into stages of development. The first is the level of GDP per capita at market exchange rates. The thresholds used are also reported 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.c Countries that are resource driven and significantly wealthier than economies at the technological frontier are classified in the innovationdriven stage.d Any countries falling between two of the three stages are considered to be “in transition.” For these countries, the weights change smoothly as a country develops, reflecting the smooth transition from one stage of development to another. The classification The Global Competitiveness Report 2016–2017 | 37
54. 1 .1: Findings from the Global Competitiveness Index Table 1: Subindex weights and income thresholds for stages of development STAGE OF DEVELOPMENT Stage 1: Factor-driven GDP per capita (US$) thresholds* Transition from stage 1 to stage 2 Stage 2: Efficiency-driven Transition from stage 2 to stage 3 Stage 3: Innovation-driven <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% Weight for innovation and sophistication factors * 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. Table 2: Classification by each stage of development Stage 1: Factor-driven (35 economies) Transition from stage 1 to stage 2 (17 economies) Stage 2: Efficiency-driven (30 economies) Transition from stage 2 to stage 3 (19 economies) Stage 3: Innovation-driven (37 economies) Bangladesh Benin Burundi Cambodia Cameroon Chad Congo, Democratic Rep. Côte d'Ivoire Ethiopia Gambia, The Ghana India Kenya Kyrgyz Republic Lao PDR Lesotho Liberia Madagascar Malawi Mali Mauritania Moldova Mozambique Nepal Nicaragua Pakistan Rwanda Senegal Sierra Leone Tajikistan Tanzania Uganda Yemen Zambia Zimbabwe Algeria Azerbaijan Bhutan Bolivia Botswana Brunei Darussalam Gabon Honduras Kazakhstan Kuwait Mongolia Nigeria Philippines Russian Federation Ukraine Venezuela Vietnam Albania Armenia Bosnia and Herzegovina Brazil Bulgaria Cape Verde China Colombia Dominican Republic Ecuador Egypt El Salvador Georgia Guatemala Indonesia Iran, Islamic rep. Jamaica Jordan Macedonia, FYR Montenegro Morocco Namibia Paraguay Peru Romania Serbia South Africa Sri Lanka Thailand Tunisia Argentina Barbados Chile Costa Rica Croatia Hungary Latvia Lebanon Lithuania Malaysia Mauritius Mexico Oman Panama Poland Saudi Arabia Slovak Republic Turkey Uruguay Australia Austria Bahrain 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 Qatar Singapore Slovenia Spain Sweden Switzerland Taiwan, China Trinidad and Tobago United Arab Emirates United Kingdom United States 38 | The Global Competitiveness Report 2016–2017 >17,000
55. 1 .1: Findings from the Global Competitiveness Index of countries into stages of development is shown in Table 2. Weight (%) within immediate parent category BASIC REQUIREMENTS..........................................20–60% f STRUCTURE AND COMPUTATION OF THE INDEX 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.e 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 subpillar transport infrastructure 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.f 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 Turkey, currently in transition from stage 2 to stage 3, the weight on each subindex is 38.9 percent, 50 percent, and 11.1 percent, respectively, as reported in the country profile on page 346. Indicators that are not derived from the Executive Opinion Survey (the Survey) are identified by an asterisk (*) in the following list. 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.g Indicators that are followed by the designation “½” enter the GCI in two different pillars. In order to avoid double counting, we assign a half-weight to each instance.h 1st pillar: Institutions...................................................25% A. Public institutions..........................................................................75% 1. Property rights...........................................................................20% 1.01 Property rights 1.02 Intellectual property protection½ 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. Public-sector performance.........................................................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* 2nd pillar: Infrastructure..............................................25% A. Transport infrastructure................................................................50% 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructurei 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* ½ 2.09 Fixed telephone lines* ½ 3rd pillar: Macroeconomic environment.....................25% 3.01 Government budget balance* 3.02 Gross national savings* j 3.03Inflation*  3.04 Government debt* 3.05 Country credit rating* The Global Competitiveness Report 2016–2017 | 39
56. 1 .1: Findings from the Global Competitiveness Index 4th pillar: Health and primary education.....................25% A. Health........................................................................................... 50% 4.01 Business impact of malariak 4.02 Malaria incidence* k 4.03 Business impact of tuberculosisk 4.04 Tuberculosis incidence* k 4.05 Business impact of HIV/AIDSk 4.06 HIV prevalence* k 4.07 Infant mortality* 4.08 Life expectancy* B. Primary education.........................................................................50% 4.09 Quality of primary education 4.10 Primary education enrollment rate* EFFICIENCY ENHANCERS.......................................35–50%f 5th pillar: Higher education and training.....................17% A. Quantity of education....................................................................33% 5.01 Secondary education enrollment rate* 5.02 Tertiary education enrollment rate* B. Quality of education......................................................................33% 5.03 Quality of the educational 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........................................................variablel 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* m 6.07 Time required to start a business* m 6.08 Agricultural policy costs 2. Foreign competition variablel 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* n 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 management½ 40 | The Global Competitiveness Report 2016–2017 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 Financial services meeting business needs 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 B. Trustworthiness and confidence...................................................50% 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index* 9th pillar: Technological readiness..............................17% A. Technological adoption..................................................................50% 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 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* ½ 2.09 Fixed telephone lines* ½ 10th pillar: Market size................................................17% A. Domestic market size...................................................................75% 10.01 Domestic market size index* o B. Foreign market size......................................................................25% 10.02 Foreign market size index* p INNOVATION AND SOPHISTICATION FACTORS..........5–30%f 11th pillar: Business sophistication............................50% 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority 7.07 Reliance on professional management½ 12th pillar: R&D Innovation..........................................50% 12.01 12.02 12.03 12.04 12.05 12.06 12.07 1.02 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 protection½
57. 1 .1: Findings from the Global Competitiveness Index NOTES a World Economic Forum 2014. b See Chapter 1.1 of The Global Competitiveness Report 2007–2008 for a complete description of how we have adapted Michael Porter’s theory for the present application. c 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 2011 through 2015. Further information on these data can be found at http://www.intracen.org/itc/market-info-tools/tradestatistics/ All countries 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). j 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. k 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. d 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 number of Patent Cooperation Treaty patent applications per capita. lThe 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. e Formally, for a category i composed of K indicators, we have: m Indicators 6.06 and 6.07 combine to form one single indicator. K k=1 categoryi n For indicator 6.14, imports as a percentage of GDP, we first apply a log-transformation and then a min-max transformation. indicatork K f As described above, the weights are as specified in Table 1 of this appendix. Refer to individual country/economy profiles at the end of this Report for the exact weights used in the computation of each economy’s GCI score. g 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 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 correspond to the worst and best possible outcomes, respectively: –6 x ( country score – sample minimum sample maximum – sample minimum ) o 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) (indicator 10.03) plus the total value (PPP estimates) of imports of goods and services (indicator 6.14), minus the total value (PPP estimates) of exports of goods and services (indicator 10.04). 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. p 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 (indicator 10.04) and GDP valued at PPP (10.03). + 7 h For those categories that contain one or several half-weight indicators, country scores are computed as follows: (sum of scores on full-weight variables) 1 (count of full-weight variables) 1 3 (sum of scores on half-weight variables) 3 (count of half-weight variables) i “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. The Global Competitiveness Report 2016–2017 | 41
59. 1 .1: Findings from the Global Competitiveness Index Appendix B: Global Competitiveness Index 2016–2017 rankings The following pages report the GCI 2016–2017 rankings for the three subindexes (Table 1) and their corresponding pillars (Tables 2–4). Detailed scorecards for all the economies are available at the end of the Report. Enhanced scorecards and sortable rankings for every component of the GCI are available at http://gcr.weforum.org/. The Global Competitiveness Report 2016–2017 | 43
60. 1 .1: Findings from the Global Competitiveness Index Table 1: The Global Competitiveness Index 2016–2017 SUBINDEXES OVERALL INDEX Country/Economy Switzerland Singapore United States Netherlands Germany Sweden United Kingdom Japan Hong Kong SAR Finland Norway Denmark New Zealand Taiwan, China Canada United Arab Emirates Belgium Qatar Austria Luxembourg France Australia Ireland Israel Malaysia Korea, Rep. Iceland China Saudi Arabia Estonia Czech Republic Spain Chile Thailand Lithuania Poland Azerbaijan Kuwait India Malta Indonesia Panama Russian Federation Italy Mauritius Portugal South Africa Bahrain Latvia Bulgaria Mexico Rwanda Kazakhstan Costa Rica Turkey Slovenia Philippines Brunei Darussalam Georgia Vietnam Colombia Romania Jordan Botswana Slovak Republic Oman Peru Macedonia, FYR Hungary Basic requirements Efficiency enhancers Innovation and sophistication factors Rank Score Rank Score Rank Score Rank Score 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 5.81 5.72 5.70 5.57 5.57 5.53 5.49 5.48 5.48 5.44 5.44 5.35 5.31 5.28 5.27 5.26 5.25 5.23 5.22 5.20 5.20 5.19 5.18 5.18 5.16 5.03 4.96 4.95 4.84 4.78 4.72 4.68 4.64 4.64 4.60 4.56 4.55 4.53 4.52 4.52 4.52 4.51 4.51 4.50 4.49 4.48 4.47 4.47 4.45 4.44 4.41 4.41 4.41 4.41 4.39 4.39 4.36 4.35 4.32 4.31 4.30 4.30 4.29 4.29 4.28 4.28 4.23 4.23 4.20 2 1 27 4 10 7 23 22 3 12 6 13 8 14 17 11 24 5 18 9 25 15 21 28 26 19 16 30 32 20 31 33 37 44 35 45 49 36 63 29 52 34 59 47 39 43 84 40 41 60 71 53 62 57 56 38 65 50 46 73 85 72 70 55 54 42 77 66 69 6.29 6.37 5.43 6.12 5.94 6.06 5.61 5.62 6.23 5.88 6.06 5.85 5.98 5.81 5.72 5.90 5.56 6.09 5.72 5.95 5.54 5.81 5.63 5.37 5.49 5.71 5.79 5.34 5.21 5.68 5.27 5.15 5.08 4.95 5.14 4.91 4.86 5.10 4.62 5.36 4.78 5.15 4.68 4.86 5.05 4.97 4.37 5.04 5.02 4.67 4.56 4.74 4.62 4.70 4.70 5.07 4.61 4.81 4.90 4.49 4.35 4.55 4.56 4.71 4.74 4.99 4.43 4.61 4.57 3 2 1 9 7 12 5 10 4 14 11 17 8 16 6 15 18 21 22 23 19 13 20 25 24 26 32 30 33 28 27 29 31 37 36 34 59 70 46 41 49 51 38 43 62 39 35 40 42 44 45 81 50 52 53 54 58 87 69 65 48 55 66 84 47 63 57 73 56 5.62 5.73 5.85 5.38 5.40 5.31 5.55 5.37 5.58 5.26 5.34 5.19 5.38 5.20 5.42 5.22 5.18 5.00 5.00 4.99 5.14 5.27 5.10 4.95 4.96 4.88 4.75 4.79 4.74 4.80 4.85 4.80 4.77 4.56 4.59 4.64 4.23 4.08 4.41 4.49 4.38 4.36 4.56 4.43 4.19 4.52 4.62 4.52 4.44 4.43 4.41 3.93 4.37 4.34 4.32 4.31 4.24 3.88 4.08 4.15 4.38 4.28 4.13 3.89 4.38 4.17 4.26 4.04 4.27 1 12 2 6 3 5 9 4 23 7 13 10 26 17 25 21 14 18 11 16 15 27 19 8 20 22 24 29 36 33 35 34 56 47 43 55 49 79 30 41 32 44 66 28 48 38 31 42 58 71 50 54 76 45 65 37 53 78 113 84 63 100 39 90 57 69 108 64 97 5.80 5.25 5.63 5.52 5.61 5.54 5.30 5.57 4.80 5.47 5.21 5.27 4.73 5.05 4.74 4.91 5.16 5.04 5.26 5.07 5.07 4.65 5.01 5.41 4.94 4.81 4.75 4.22 4.10 4.15 4.13 4.15 3.73 3.85 4.01 3.74 3.83 3.49 4.22 4.02 4.16 3.93 3.62 4.39 3.85 4.08 4.18 4.01 3.71 3.57 3.83 3.76 3.51 3.93 3.63 4.08 3.76 3.49 3.22 3.47 3.65 3.35 4.05 3.42 3.71 3.60 3.30 3.64 3.36 (Cont’d.) 44 | The Global Competitiveness Report 2016–2017
61. 1 .1: Findings from the Global Competitiveness Index Table 1: The Global Competitiveness Index 2016–2017 (cont’d.) SUBINDEXES OVERALL INDEX Country/Economy Morocco Sri Lanka Barbados Uruguay Croatia Jamaica Iran, Islamic Rep. Tajikistan Guatemala Armenia Albania Brazil Montenegro Cyprus Namibia Ukraine Greece Algeria Honduras Cambodia Serbia Ecuador Dominican Republic Lao PDR Trinidad and Tobago Tunisia Kenya Bhutan Nepal Côte d'Ivoire Moldova Lebanon Mongolia Nicaragua Argentina El Salvador Bangladesh Bosnia and Herzegovina Gabon Ethiopia Cape Verde Kyrgyz Republic Senegal Uganda Ghana Egypt Tanzania Paraguay Zambia Cameroon Lesotho Bolivia Pakistan Gambia, The Benin Mali Zimbabwe Nigeria Madagascar Congo, Democratic Rep. Venezuela Liberia Sierra Leone Mozambique Malawi Burundi Chad Mauritania Yemen Basic requirements Efficiency enhancers Innovation and sophistication factors Rank Score Rank Score Rank Score Rank Score 70 4.20 51 4.80 88 3.87 86 3.46 71 72 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 4.19 4.19 4.17 4.15 4.13 4.12 4.12 4.08 4.07 4.06 4.06 4.05 4.04 4.02 4.00 4.00 3.98 3.98 3.98 3.97 3.96 3.94 3.93 3.93 3.92 3.90 3.87 3.87 3.86 3.86 3.84 3.84 3.81 3.81 3.81 3.80 3.80 3.79 3.77 3.76 3.75 3.74 3.69 3.68 3.67 3.67 3.65 3.60 3.58 3.57 3.54 3.49 3.47 3.47 3.46 3.41 3.39 3.33 3.29 3.27 3.21 3.16 3.13 3.08 3.06 2.95 2.94 2.74 64 58 48 68 76 61 78 93 83 74 103 86 67 75 102 80 88 92 96 87 81 95 99 82 79 115 90 98 104 101 125 107 97 110 100 105 94 91 106 89 108 112 116 121 117 114 111 118 119 109 113 126 124 122 123 120 136 127 128 134 132 129 133 137 130 135 131 138 4.62 4.70 4.86 4.60 4.43 4.64 4.41 4.27 4.37 4.46 4.00 4.34 4.61 4.43 4.03 4.40 4.33 4.28 4.21 4.33 4.37 4.22 4.16 4.37 4.41 3.81 4.31 4.19 3.97 4.06 3.56 3.94 4.21 3.89 4.15 3.97 4.23 4.30 3.96 4.32 3.93 3.86 3.79 3.59 3.79 3.82 3.87 3.67 3.64 3.91 3.83 3.47 3.57 3.59 3.58 3.63 3.06 3.37 3.32 3.14 3.20 3.30 3.15 3.03 3.28 3.08 3.22 2.74 83 64 60 68 78 89 99 77 80 86 61 79 71 94 74 67 110 98 97 90 95 92 104 76 103 75 108 118 96 102 72 93 126 82 101 107 106 122 117 121 112 111 109 91 100 119 105 115 114 133 120 113 123 125 124 132 85 128 127 116 129 134 131 130 137 135 138 136 3.91 4.16 4.23 4.09 3.98 3.86 3.68 4.00 3.96 3.88 4.20 3.96 4.06 3.79 4.04 4.09 3.55 3.69 3.69 3.85 3.74 3.83 3.63 4.03 3.65 4.03 3.58 3.45 3.73 3.66 4.05 3.83 3.28 3.92 3.67 3.60 3.60 3.33 3.47 3.40 3.54 3.54 3.56 3.84 3.67 3.45 3.62 3.51 3.52 3.06 3.42 3.53 3.31 3.29 3.29 3.10 3.88 3.26 3.27 3.51 3.19 2.95 3.11 3.17 2.72 2.76 2.55 2.74 46 51 80 92 61 101 60 59 81 106 72 98 68 77 73 70 119 82 118 120 102 99 93 83 104 40 94 127 75 131 52 115 135 87 117 116 122 128 74 105 123 62 95 67 111 96 126 88 103 112 132 85 89 107 109 129 110 114 125 133 91 130 124 121 134 137 138 136 3.90 3.80 3.48 3.41 3.69 3.35 3.71 3.71 3.48 3.31 3.55 3.35 3.61 3.51 3.53 3.58 3.12 3.47 3.15 3.10 3.34 3.35 3.39 3.47 3.32 4.03 3.38 2.94 3.53 2.85 3.79 3.18 2.77 3.46 3.16 3.16 3.04 2.94 3.53 3.31 3.03 3.67 3.37 3.61 3.23 3.36 2.96 3.44 3.34 3.22 2.84 3.47 3.42 3.30 3.27 2.89 3.26 3.21 3.01 2.83 3.42 2.87 3.02 3.05 2.81 2.60 2.38 2.67 Note: Ranks out of 138 economies and scores measured on a 1-to-7 scale. The Global Competitiveness Report 2016–2017 | 45
62. 1 .1: Findings from the Global Competitiveness Index Table 2: The Global Competitiveness Index 2016–2017: Basic requirements PILLARS 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 Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burundi Cambodia Cameroon Canada Cape Verde Chad Chile China Colombia Congo, Democratic Rep. Costa Rica Côte d'Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Finland France Gabon Gambia, The Georgia Germany Ghana Greece Guatemala 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 74 88 110 83 15 18 49 40 105 58 24 122 90 113 94 55 103 50 60 130 96 119 17 89 135 37 30 85 128 57 104 68 67 31 13 95 81 117 100 20 106 12 25 91 124 46 10 121 80 93 92 3 69 16 63 52 61 21 28 47 76 22 70 62 115 19 36 108 99 4.46 4.33 3.89 4.37 5.81 5.72 4.86 5.04 3.97 4.70 5.56 3.59 4.31 3.83 4.23 4.71 4.00 4.81 4.67 3.28 4.21 3.64 5.72 4.32 3.08 5.08 5.34 4.35 3.32 4.70 3.97 4.60 4.61 5.27 5.85 4.22 4.37 3.79 4.15 5.68 3.96 5.88 5.54 4.30 3.57 4.90 5.94 3.59 4.40 4.27 4.28 6.23 4.57 5.79 4.62 4.78 4.64 5.63 5.37 4.86 4.43 5.62 4.56 4.62 3.81 5.71 5.10 3.93 4.16 76 99 130 66 19 20 48 25 125 44 21 95 33 133 126 37 120 47 97 134 104 101 18 71 136 35 45 112 117 60 77 89 62 54 15 123 113 87 132 23 75 1 29 85 52 43 22 72 81 110 109 9 114 17 42 56 90 12 31 103 73 16 34 49 86 63 59 105 68 3.83 3.50 3.04 3.99 5.32 5.23 4.23 5.04 3.15 4.35 5.21 3.54 4.67 2.89 3.14 4.50 3.24 4.25 3.53 2.89 3.46 3.49 5.37 3.97 2.68 4.51 4.30 3.33 3.29 4.09 3.82 3.63 4.02 4.16 5.49 3.19 3.32 3.65 2.99 5.11 3.85 6.13 4.90 3.72 4.18 4.35 5.16 3.95 3.77 3.34 3.34 5.73 3.31 5.43 4.36 4.10 3.63 5.59 4.78 3.47 3.87 5.45 4.61 4.23 3.65 4.02 4.10 3.38 3.98 91 100 85 82 17 14 55 32 114 30 23 128 92 102 105 90 72 78 70 134 106 131 15 94 137 44 42 84 138 67 87 46 50 43 21 101 71 96 69 33 115 26 7 107 93 65 8 111 37 81 99 1 62 19 68 60 59 29 28 25 77 5 56 63 98 10 52 113 108 3.47 3.28 3.66 3.77 5.65 5.77 4.30 5.01 2.77 5.13 5.46 2.22 3.44 3.20 3.19 3.49 3.98 3.88 4.01 1.92 3.17 2.15 5.70 3.39 1.75 4.66 4.71 3.67 1.72 4.05 3.62 4.58 4.39 4.68 5.56 3.22 3.99 3.36 4.03 4.98 2.77 5.34 6.12 3.09 3.42 4.14 6.06 2.88 4.83 3.82 3.28 6.69 4.24 5.59 4.03 4.24 4.24 5.24 5.30 5.40 3.90 6.29 4.28 4.19 3.35 5.96 4.36 2.85 3.08 93 63 130 88 23 31 39 113 65 129 62 111 117 110 76 10 126 61 42 124 50 95 41 107 105 32 8 53 64 82 66 84 115 19 18 26 83 134 97 12 78 46 67 25 133 40 15 132 131 57 55 9 47 29 75 30 72 43 48 98 112 104 118 69 122 3 6 90 87 4.28 4.83 2.95 4.31 5.69 5.45 5.24 3.88 4.79 3.17 4.84 3.95 3.78 3.96 4.55 6.18 3.49 4.87 5.21 3.55 5.02 4.25 5.22 4.02 4.07 5.44 6.19 4.95 4.80 4.44 4.73 4.41 3.82 5.89 5.93 5.54 4.42 2.68 4.22 6.13 4.52 5.14 4.73 5.55 2.83 5.24 6.03 2.90 2.90 4.93 4.95 6.18 5.12 5.53 4.55 5.51 4.61 5.20 5.10 4.19 3.88 4.10 3.75 4.65 3.57 6.58 6.31 4.30 4.32 33 73 63 93 10 20 75 34 105 45 3 116 97 101 50 113 99 31 57 110 103 112 9 58 131 71 41 90 135 35 132 66 36 25 21 108 68 89 96 12 111 1 19 109 129 64 14 115 46 107 83 26 78 7 85 100 49 13 28 23 47 5 80 94 114 29 76 104 102 6.25 5.71 5.91 5.41 6.56 6.42 5.65 6.24 5.16 6.13 6.74 4.63 5.34 5.26 6.03 4.66 5.30 6.26 5.94 4.75 5.20 4.68 6.58 5.92 3.83 5.71 6.17 5.44 3.48 6.21 3.71 5.78 6.20 6.35 6.40 4.93 5.77 5.45 5.37 6.51 4.72 6.89 6.43 4.85 3.85 5.86 6.50 4.64 6.10 4.98 5.56 6.31 5.62 6.59 5.54 5.28 6.06 6.50 6.29 6.39 6.07 6.64 5.59 5.41 4.66 6.28 5.63 5.19 5.25 (Cont’d.) 46 | The Global Competitiveness Report 2016–2017
63. 1 .1: Findings from the Global Competitiveness Index Table 2: The Global Competitiveness Index 2016–2017: Basic requirements (cont’d.) PILLARS 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 Latvia Lebanon Lesotho Liberia Lithuania Luxembourg Macedonia, FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Montenegro Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russian Federation Rwanda Saudi Arabia Senegal Serbia Sierra Leone Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka 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 41 125 109 132 35 9 66 127 137 26 123 29 131 39 71 101 107 86 51 133 75 98 4 8 97 136 6 42 126 34 111 77 65 45 43 5 72 59 53 32 112 87 129 1 54 38 84 33 64 7 2 14 78 114 44 82 79 56 116 102 11 23 27 48 134 73 138 118 120 5.02 3.56 3.91 3.20 5.14 5.95 4.61 3.37 3.03 5.49 3.58 5.36 3.22 5.05 4.56 4.06 3.94 4.34 4.80 3.15 4.43 4.19 6.12 5.98 4.21 3.06 6.06 4.99 3.47 5.15 3.87 4.43 4.61 4.91 4.97 6.09 4.55 4.68 4.74 5.21 3.86 4.33 3.30 6.37 4.74 5.07 4.37 5.15 4.62 6.06 6.29 5.81 4.41 3.82 4.95 4.37 4.41 4.70 3.79 4.03 5.90 5.61 5.43 4.86 3.14 4.49 2.74 3.67 3.63 64 119 53 79 51 8 67 127 94 26 98 38 135 36 116 128 96 80 50 124 39 100 11 3 122 118 5 28 111 70 131 106 91 65 46 10 92 88 13 24 69 115 121 2 102 58 40 55 57 4 6 30 41 83 84 107 78 74 93 129 7 14 27 32 138 82 137 61 108 4.00 3.28 4.18 3.81 4.21 5.76 3.98 3.10 3.54 4.97 3.50 4.49 2.81 4.51 3.30 3.09 3.53 3.79 4.21 3.15 4.47 3.50 5.70 6.01 3.19 3.28 5.89 4.95 3.34 3.97 3.00 3.37 3.62 3.99 4.30 5.70 3.59 3.63 5.56 5.10 3.97 3.31 3.24 6.10 3.48 4.10 4.46 4.14 4.10 5.94 5.89 4.82 4.41 3.76 3.73 3.36 3.81 3.85 3.55 3.05 5.82 5.55 4.96 4.72 2.16 3.76 2.60 4.02 3.35 51 117 119 120 45 16 80 133 135 24 112 40 129 41 57 86 110 76 58 124 66 130 3 27 104 132 34 38 116 36 122 89 95 53 22 18 88 35 97 31 109 74 127 2 61 39 64 12 73 20 6 13 103 118 49 54 83 48 126 75 4 9 11 47 121 79 136 125 123 4.38 2.71 2.62 2.61 4.65 5.66 3.84 1.97 1.88 5.42 2.86 4.75 2.19 4.74 4.26 3.64 2.93 3.93 4.25 2.47 4.10 2.16 6.37 5.33 3.19 2.10 4.93 4.82 2.75 4.85 2.57 3.57 3.37 4.34 5.48 5.64 3.61 4.87 3.35 5.07 3.01 3.94 2.33 6.50 4.24 4.79 4.18 5.85 3.95 5.58 6.24 5.80 3.20 2.67 4.39 4.33 3.74 4.42 2.43 3.93 6.31 6.04 5.94 4.52 2.57 3.88 1.79 2.44 2.50 24 136 36 127 34 7 44 102 137 35 52 21 106 59 51 100 121 119 49 125 74 27 22 17 56 108 1 81 116 16 60 33 20 45 120 2 28 91 80 68 92 103 123 11 37 58 79 86 96 5 4 14 89 70 13 114 99 54 73 128 38 85 71 94 135 77 138 109 101 5.56 2.27 5.33 3.29 5.44 6.22 5.20 4.12 2.11 5.43 4.96 5.76 4.02 4.89 4.98 4.14 3.60 3.73 5.08 3.49 4.59 5.54 5.74 5.99 4.95 4.01 6.84 4.46 3.79 5.99 4.87 5.44 5.88 5.14 3.69 6.72 5.53 4.30 4.51 4.71 4.28 4.12 3.56 6.15 5.28 4.91 4.52 4.33 4.23 6.33 6.45 6.12 4.31 4.62 6.12 3.88 4.16 4.95 4.60 3.17 5.28 4.40 4.62 4.26 2.42 4.55 2.00 4.01 4.12 42 52 133 136 32 43 92 122 120 44 137 18 130 48 74 95 72 60 77 134 121 82 4 6 87 138 11 69 128 67 106 98 81 38 22 27 88 62 84 51 126 53 127 2 55 16 123 30 37 24 8 15 70 124 86 61 59 79 118 54 40 17 39 56 91 65 117 125 119 6.16 5.98 3.50 3.10 6.25 6.15 5.42 4.32 4.57 6.15 3.00 6.45 3.84 6.06 5.68 5.39 5.71 5.92 5.63 3.48 4.56 5.56 6.67 6.61 5.51 2.85 6.56 5.74 3.99 5.78 5.04 5.33 5.57 6.19 6.40 6.30 5.48 5.92 5.54 5.98 4.18 5.97 4.10 6.75 5.95 6.47 4.30 6.28 6.19 6.37 6.58 6.50 5.71 4.23 5.53 5.92 5.92 5.59 4.58 5.95 6.17 6.45 6.18 5.94 5.42 5.79 4.59 4.22 4.57 Note: Ranks out of 138 economies and scores measured on a 1-to-7 scale. The Global Competitiveness Report 2016–2017 | 47
64. 1 .1: Findings from the Global Competitiveness Index Table 3: The Global Competitiveness Index 2016–2017: Efficiency enhancers PILLARS EFFICIENCY ENHANCERS Country/Economy Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burundi Cambodia Cameroon Canada Cape Verde Chad Chile China Colombia Congo, Democratic Rep. Costa Rica Côte d'Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Finland France Gabon Gambia, The Georgia Germany Ghana Greece Guatemala 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 5. Higher education and training 6. Goods market efficiency 7. Labor market efficiency 8. Financial market development 9. Technological readiness 10. Market size Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 86 110 82 80 13 22 59 40 107 64 18 125 108 120 106 84 61 87 44 137 97 114 6 121 135 31 30 48 127 52 96 68 71 27 17 92 95 100 101 28 117 14 19 122 123 69 7 91 67 77 98 4 56 32 46 49 89 20 25 43 78 10 66 50 75 26 70 112 104 3.88 3.55 3.92 3.96 5.27 5.00 4.23 4.52 3.60 4.16 5.18 3.29 3.58 3.42 3.60 3.89 4.20 3.88 4.43 2.72 3.69 3.52 5.42 3.40 2.76 4.77 4.79 4.38 3.27 4.34 3.73 4.09 4.06 4.85 5.19 3.83 3.74 3.67 3.67 4.80 3.47 5.26 5.14 3.33 3.31 4.08 5.40 3.84 4.09 4.00 3.69 5.58 4.27 4.75 4.41 4.38 3.86 5.10 4.95 4.43 3.98 5.37 4.13 4.37 4.03 4.88 4.08 3.54 3.63 42 96 40 71 9 12 78 44 118 29 5 117 98 100 92 88 84 65 56 134 124 105 19 79 137 28 54 70 128 35 109 49 55 27 6 95 73 112 103 18 127 2 21 121 108 89 16 99 45 102 101 14 72 11 81 63 60 13 24 43 90 23 51 57 97 25 94 87 106 4.90 3.87 4.96 4.38 5.91 5.76 4.16 4.90 3.04 5.16 5.99 3.09 3.84 3.77 4.02 4.07 4.11 4.48 4.64 2.29 2.88 3.43 5.54 4.15 2.21 5.20 4.64 4.39 2.77 5.07 3.36 4.70 4.64 5.20 5.95 3.94 4.34 3.27 3.57 5.54 2.79 6.16 5.46 2.98 3.39 4.06 5.63 3.77 4.87 3.61 3.63 5.66 4.36 5.88 4.12 4.50 4.56 5.70 5.38 4.90 4.05 5.38 4.69 4.62 3.86 5.32 3.98 4.10 3.40 69 133 135 45 27 25 50 22 96 86 13 126 101 134 129 73 128 68 57 130 76 109 17 97 137 44 56 100 127 78 92 95 33 36 18 106 124 112 102 20 105 19 31 125 82 46 23 93 89 48 94 2 59 29 60 58 111 5 32 67 61 16 43 62 77 24 85 75 72 4.33 3.52 3.26 4.59 4.82 4.90 4.49 4.98 4.08 4.19 5.22 3.72 4.05 3.42 3.69 4.29 3.70 4.34 4.41 3.62 4.24 3.97 5.10 4.08 3.00 4.59 4.43 4.06 3.72 4.23 4.16 4.10 4.70 4.67 5.07 4.00 3.75 3.95 4.03 5.06 4.01 5.06 4.71 3.74 4.21 4.57 4.97 4.16 4.17 4.56 4.12 5.71 4.40 4.74 4.39 4.40 3.96 5.43 4.71 4.34 4.39 5.20 4.62 4.39 4.23 4.93 4.20 4.25 4.30 98 132 130 55 28 40 26 35 120 42 45 50 27 136 125 36 117 47 54 78 58 76 8 116 111 52 39 81 53 68 75 100 48 44 13 109 123 135 122 15 70 23 51 101 46 43 22 72 114 99 118 3 80 10 84 108 134 12 21 119 60 19 87 20 31 77 115 102 30 3.93 3.25 3.30 4.40 4.69 4.53 4.77 4.55 3.58 4.52 4.49 4.42 4.69 3.12 3.46 4.54 3.67 4.46 4.40 4.13 4.39 4.16 5.34 3.67 3.79 4.41 4.53 4.11 4.41 4.26 4.19 3.89 4.44 4.50 5.08 3.79 3.55 3.15 3.57 5.03 4.24 4.78 4.42 3.89 4.49 4.51 4.80 4.23 3.75 3.92 3.64 5.60 4.13 5.21 4.10 3.80 3.21 5.13 4.80 3.64 4.36 4.85 4.04 4.81 4.62 4.14 3.67 3.87 4.63 94 132 127 90 6 34 97 43 99 62 29 106 79 76 101 66 93 92 59 135 63 91 7 112 133 23 56 25 117 40 75 95 120 27 24 87 113 111 45 22 102 5 31 103 100 58 20 85 136 18 36 4 70 53 38 42 131 67 19 122 30 17 68 104 50 80 65 96 81 3.59 2.89 2.98 3.68 5.42 4.54 3.55 4.30 3.54 4.09 4.65 3.47 3.87 3.88 3.51 3.99 3.63 3.65 4.14 2.57 4.06 3.66 5.30 3.37 2.88 4.82 4.16 4.75 3.24 4.37 3.88 3.58 3.19 4.74 4.76 3.73 3.37 3.39 4.27 4.82 3.51 5.46 4.60 3.50 3.52 4.16 4.88 3.78 2.52 4.88 4.54 5.53 3.97 4.17 4.41 4.33 2.92 3.99 4.88 3.11 4.65 4.91 3.99 3.50 4.20 3.86 4.01 3.57 3.86 82 108 69 71 24 23 55 37 122 31 15 129 102 111 76 86 59 84 38 137 98 124 21 78 138 39 74 64 134 45 94 47 51 29 11 79 90 99 93 32 131 16 17 109 112 65 10 95 42 96 106 5 54 8 110 91 97 12 22 40 77 19 75 56 89 28 60 117 121 3.66 3.08 4.08 4.01 5.66 5.72 4.52 5.15 2.69 5.44 5.99 2.48 3.19 2.96 3.88 3.58 4.37 3.60 5.14 2.01 3.28 2.60 5.79 3.76 1.93 5.09 3.96 4.25 2.30 4.77 3.39 4.72 4.63 5.54 6.10 3.73 3.55 3.26 3.40 5.35 2.43 5.97 5.92 3.06 2.92 4.21 6.11 3.39 4.98 3.37 3.12 6.21 4.52 6.17 2.99 3.54 3.35 6.05 5.76 5.03 3.76 5.81 3.90 4.43 3.55 5.54 4.33 2.81 2.72 109 36 28 120 22 43 63 92 38 136 34 123 133 82 98 105 8 116 65 135 86 85 15 137 115 44 1 35 95 83 80 78 114 46 58 67 62 25 94 100 66 59 7 112 138 101 5 72 56 73 97 33 53 129 3 10 19 54 57 12 119 4 75 45 70 13 51 121 108 2.87 4.73 4.93 2.68 5.10 4.53 3.89 3.23 4.65 1.56 4.75 2.59 1.82 3.35 3.05 2.89 5.73 2.74 3.85 1.69 3.28 3.29 5.42 1.37 2.76 4.50 7.00 4.73 3.17 3.35 3.40 3.52 2.76 4.43 4.21 3.79 3.90 5.03 3.18 3.00 3.83 4.10 5.74 2.81 1.34 3.00 5.99 3.70 4.23 3.68 3.06 4.77 4.27 2.31 6.43 5.71 5.19 4.27 4.21 5.58 2.69 6.06 3.56 4.47 3.74 5.51 4.28 2.65 2.89 (Cont’d.) 48 | The Global Competitiveness Report 2016–2017
65. 1 .1: Findings from the Global Competitiveness Index Table 3: The Global Competitiveness Index 2016–2017: Efficiency enhancers (cont’d.) PILLARS EFFICIENCY ENHANCERS Country/Economy Latvia Lebanon Lesotho Liberia Lithuania Luxembourg Macedonia, FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Montenegro Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russian Federation Rwanda Saudi Arabia Senegal Serbia Sierra Leone Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka 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 5. Higher education and training 6. Goods market efficiency 7. Labor market efficiency 8. Financial market development 9. Technological readiness 10. Market size Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score 42 72 133 129 36 23 73 128 130 24 124 41 138 62 45 102 93 79 88 131 94 118 9 8 126 85 11 63 113 51 105 57 58 34 39 21 55 38 81 33 111 90 134 2 47 54 35 29 83 12 3 16 99 119 37 76 103 53 109 74 15 5 1 60 116 65 136 115 132 4.44 4.05 3.06 3.19 4.59 4.99 4.04 3.26 3.17 4.96 3.29 4.49 2.55 4.19 4.41 3.66 3.83 3.96 3.87 3.11 3.79 3.45 5.38 5.38 3.28 3.88 5.34 4.17 3.53 4.36 3.62 4.26 4.24 4.64 4.52 5.00 4.28 4.56 3.93 4.74 3.54 3.85 2.95 5.73 4.38 4.31 4.62 4.80 3.91 5.31 5.62 5.20 3.68 3.45 4.56 4.03 3.65 4.32 3.56 4.04 5.22 5.55 5.85 4.23 3.51 4.15 2.74 3.51 3.10 39 66 119 130 26 47 76 126 131 41 122 38 138 52 82 91 59 64 104 135 110 113 3 10 116 125 7 85 123 86 107 80 58 37 36 30 67 32 114 46 111 69 133 1 61 22 77 31 68 15 4 17 75 132 62 74 93 50 129 33 34 20 8 48 53 83 136 120 115 5.01 4.46 3.03 2.73 5.25 4.78 4.25 2.85 2.61 4.96 2.93 5.02 1.90 4.68 4.12 4.04 4.57 4.49 3.55 2.29 3.33 3.26 6.07 5.89 3.15 2.86 5.94 4.10 2.91 4.10 3.40 4.13 4.60 5.03 5.04 5.14 4.45 5.09 3.22 4.80 3.29 4.40 2.56 6.29 4.54 5.42 4.22 5.14 4.45 5.63 6.03 5.61 4.28 2.60 4.54 4.30 4.02 4.69 2.74 5.08 5.07 5.54 5.91 4.75 4.68 4.11 2.26 2.99 3.15 49 55 88 90 39 4 34 120 119 12 110 30 136 26 70 107 104 74 64 118 79 116 8 10 122 98 21 51 117 40 91 65 99 47 38 7 80 87 35 41 84 121 123 1 53 42 28 54 66 11 6 15 71 114 37 103 113 52 115 108 3 9 14 63 138 81 131 83 132 4.52 4.45 4.18 4.17 4.64 5.54 4.70 3.81 3.81 5.25 3.97 4.73 3.21 4.90 4.33 3.99 4.01 4.27 4.38 3.88 4.23 3.90 5.41 5.31 3.77 4.07 5.05 4.48 3.89 4.64 4.17 4.37 4.07 4.57 4.66 5.41 4.22 4.19 4.68 4.64 4.20 3.78 3.77 5.78 4.45 4.62 4.77 4.45 4.35 5.29 5.42 5.20 4.31 3.93 4.66 4.02 3.93 4.47 3.91 3.98 5.61 5.34 5.21 4.38 2.86 4.21 3.56 4.20 3.54 34 104 96 74 59 16 95 56 38 24 112 41 131 57 105 91 66 83 124 92 32 103 14 6 113 37 9 82 129 67 107 61 86 79 64 17 88 49 7 65 94 106 110 2 93 85 97 69 128 18 1 25 33 62 71 89 133 126 29 73 11 5 4 121 138 63 137 90 127 4.57 3.85 3.96 4.21 4.37 5.03 3.96 4.40 4.53 4.77 3.77 4.52 3.26 4.39 3.85 3.99 4.29 4.10 3.55 3.98 4.61 3.86 5.07 5.43 3.75 4.54 5.25 4.10 3.30 4.27 3.81 4.34 4.04 4.13 4.31 5.00 4.04 4.43 5.37 4.30 3.97 3.84 3.79 5.80 3.98 4.08 3.94 4.25 3.37 4.86 5.95 4.77 4.59 4.33 4.23 4.01 3.24 3.39 4.66 4.23 5.17 5.46 5.48 3.58 2.75 4.33 3.10 4.00 3.37 52 69 134 74 60 14 57 121 115 13 109 41 137 44 35 129 125 54 83 128 49 73 37 1 114 89 9 55 107 12 72 26 48 46 116 21 86 108 32 47 88 110 123 2 33 118 11 71 64 10 8 15 105 98 39 61 119 82 77 130 28 16 3 51 124 78 138 84 126 4.19 3.97 2.61 3.89 4.13 4.97 4.16 3.13 3.26 4.98 3.42 4.35 2.21 4.29 4.54 2.96 3.09 4.16 3.79 2.98 4.22 3.91 4.48 5.79 3.31 3.69 5.24 4.16 3.44 5.12 3.95 4.75 4.22 4.24 3.25 4.84 3.73 3.43 4.60 4.23 3.71 3.41 3.11 5.69 4.56 3.21 5.19 3.96 4.03 5.22 5.26 4.93 3.49 3.55 4.39 4.12 3.21 3.82 3.88 2.95 4.72 4.93 5.56 4.20 3.11 3.88 2.07 3.78 3.08 34 72 123 130 27 2 61 128 135 43 113 20 133 66 73 58 68 52 81 127 87 126 6 13 116 105 7 57 119 53 104 88 83 46 26 33 48 62 100 41 103 70 132 9 44 35 49 25 101 4 1 30 114 125 63 50 80 67 118 85 18 3 14 36 107 92 136 115 120 5.20 4.01 2.67 2.43 5.59 6.40 4.31 2.49 2.26 4.81 2.84 5.80 2.32 4.17 3.97 4.40 4.12 4.59 3.69 2.54 3.56 2.56 6.18 6.03 2.81 3.15 6.17 4.40 2.73 4.55 3.15 3.56 3.61 4.76 5.59 5.35 4.71 4.30 3.25 5.01 3.17 4.05 2.41 6.14 4.79 5.19 4.70 5.61 3.23 6.29 6.41 5.53 2.84 2.59 4.30 4.68 3.73 4.16 2.78 3.58 5.82 6.33 6.02 5.16 3.09 3.51 2.21 2.83 2.73 96 76 132 134 77 93 110 107 125 24 111 126 128 118 11 124 104 130 55 102 113 91 23 64 106 26 49 68 29 79 90 48 31 21 52 50 42 6 127 14 103 74 131 37 61 84 30 16 60 40 39 20 122 71 18 99 69 17 81 47 27 9 2 87 41 32 89 88 117 3.15 3.55 1.90 1.70 3.53 3.21 2.87 2.89 2.54 5.03 2.83 2.53 2.42 2.71 5.64 2.56 2.90 2.12 4.26 2.99 2.76 3.24 5.05 3.86 2.89 4.99 4.37 3.79 4.91 3.49 3.24 4.40 4.88 5.13 4.28 4.29 4.53 5.90 2.45 5.44 2.92 3.63 2.08 4.70 3.99 3.32 4.89 5.39 4.06 4.60 4.63 5.18 2.59 3.73 5.22 3.03 3.79 5.38 3.38 4.40 4.93 5.72 6.90 3.27 4.55 4.85 3.24 3.25 2.72 Note: Ranks out of 138 economies and scores measured on a 1-to-7 scale. The Global Competitiveness Report 2016–2017 | 49
66. 1 .1: Findings from the Global Competitiveness Index Table 4: The Global Competitiveness Index 2016–2017: Innovation and sophistication factors PILLARS INNOVATION AND SOPHISTICATION FACTORS 11. Business sophistication PILLARS 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 Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burundi Cambodia Cameroon Canada Cape Verde Chad Chile China Colombia Congo, Democratic Rep. Costa Rica Côte d'Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Finland France Gabon Gambia, The Georgia Germany Ghana Greece Guatemala 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 106 119 87 81 27 11 49 42 116 51 14 107 94 132 122 90 72 78 71 134 118 103 25 105 137 56 29 63 125 45 75 92 68 35 10 99 102 111 117 33 74 7 15 128 89 113 3 67 70 59 82 23 97 24 30 32 101 19 8 28 61 4 39 76 40 22 79 123 93 3.31 3.12 3.46 3.48 4.65 5.26 3.83 4.01 3.16 3.80 5.16 3.30 3.38 2.84 3.04 3.42 3.55 3.49 3.57 2.81 3.15 3.34 4.74 3.31 2.60 3.73 4.22 3.65 3.01 3.93 3.53 3.41 3.61 4.13 5.27 3.35 3.34 3.23 3.16 4.15 3.53 5.47 5.07 2.94 3.42 3.22 5.61 3.61 3.58 3.71 3.47 4.80 3.36 4.75 4.22 4.16 3.35 5.01 5.41 4.39 3.69 5.57 4.05 3.51 4.03 4.81 3.49 3.03 3.39 94 121 88 81 28 8 60 33 107 51 11 116 91 126 115 100 63 84 79 135 114 112 24 108 137 56 34 59 132 41 89 80 62 32 9 77 87 85 86 44 93 12 14 131 71 102 3 68 69 49 73 17 113 27 35 39 109 16 21 25 57 2 36 97 47 23 61 119 92 3.66 3.31 3.68 3.75 4.74 5.50 4.02 4.42 3.52 4.18 5.35 3.39 3.67 3.21 3.40 3.61 4.01 3.73 3.78 3.07 3.47 3.49 4.87 3.52 2.70 4.09 4.41 4.04 3.17 4.30 3.68 3.76 4.01 4.49 5.42 3.81 3.68 3.71 3.69 4.26 3.67 5.25 5.22 3.17 3.85 3.60 5.64 3.91 3.87 4.19 3.85 5.20 3.47 4.77 4.39 4.33 3.50 5.20 5.10 4.84 4.08 5.72 4.37 3.64 4.23 4.87 4.02 3.34 3.67 109 112 81 87 26 14 44 45 121 53 15 86 99 135 125 84 100 78 65 131 118 90 24 98 134 63 30 79 115 48 61 103 85 37 10 114 107 122 127 28 57 3 17 124 106 116 5 69 72 82 102 27 80 21 29 31 89 19 2 32 70 8 40 59 36 20 110 123 95 2.96 2.93 3.24 3.20 4.55 5.03 3.63 3.61 2.80 3.43 4.97 3.21 3.10 2.46 2.68 3.22 3.10 3.26 3.36 2.55 2.83 3.18 4.61 3.11 2.49 3.38 4.04 3.26 2.85 3.55 3.38 3.06 3.21 3.78 5.13 2.89 3.00 2.75 2.63 4.05 3.40 5.68 4.92 2.71 3.00 2.85 5.58 3.32 3.30 3.23 3.09 4.40 3.24 4.73 4.05 3.99 3.19 4.81 5.73 3.93 3.31 5.43 3.73 3.39 3.83 4.75 2.96 2.71 3.12 Latvia Lebanon Lesotho Liberia Lithuania Luxembourg Macedonia, FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Montenegro Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russian Federation Rwanda Saudi Arabia Senegal Serbia Sierra Leone Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka 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 58 52 112 91 43 16 64 114 121 20 109 41 138 48 50 131 115 98 86 124 77 127 6 26 135 110 13 69 85 44 126 108 53 55 38 18 100 66 54 36 62 120 130 12 57 37 31 34 46 5 1 17 60 96 47 83 104 65 95 73 21 9 2 80 133 84 136 88 129 3.71 3.79 3.22 3.42 4.01 5.07 3.64 3.21 3.05 4.94 3.27 4.02 2.38 3.85 3.83 2.85 3.18 3.35 3.46 3.02 3.51 2.94 5.52 4.73 2.77 3.26 5.21 3.60 3.47 3.93 2.96 3.30 3.76 3.74 4.08 5.04 3.35 3.62 3.76 4.10 3.67 3.10 2.87 5.25 3.71 4.08 4.18 4.15 3.90 5.54 5.80 5.05 3.71 3.36 3.85 3.47 3.32 3.63 3.37 3.53 4.91 5.30 5.63 3.48 2.83 3.47 2.67 3.44 2.89 58 50 110 90 42 15 75 120 122 20 118 40 138 37 45 127 123 103 76 128 83 124 5 26 134 99 10 66 95 38 117 78 52 54 46 18 104 72 64 31 70 125 133 19 55 48 30 29 53 6 1 22 74 106 43 67 101 65 111 98 13 7 4 82 136 96 129 105 130 4.06 4.18 3.50 3.67 4.28 5.21 3.83 3.32 3.28 5.16 3.38 4.32 2.56 4.36 4.24 3.20 3.27 3.57 3.82 3.19 3.73 3.25 5.61 4.83 3.12 3.61 5.37 3.94 3.65 4.34 3.38 3.78 4.15 4.10 4.24 5.20 3.56 3.85 3.97 4.52 3.86 3.22 3.15 5.18 4.10 4.23 4.52 4.54 4.14 5.59 5.80 5.03 3.84 3.53 4.27 3.91 3.61 3.95 3.49 3.62 5.25 5.58 5.62 3.74 3.04 3.64 3.18 3.55 3.17 64 58 111 91 39 16 51 97 120 22 92 41 137 67 55 133 101 94 96 117 74 126 7 23 136 113 12 76 75 49 132 119 62 60 34 18 93 56 47 42 50 108 130 9 68 33 35 38 43 6 1 11 46 88 54 105 104 71 77 52 25 13 4 83 128 73 138 66 129 3.36 3.40 2.95 3.16 3.75 4.93 3.44 3.11 2.81 4.72 3.16 3.71 2.20 3.34 3.41 2.51 3.09 3.13 3.11 2.84 3.29 2.63 5.44 4.63 2.42 2.90 5.05 3.26 3.28 3.53 2.54 2.82 3.38 3.39 3.91 4.87 3.14 3.40 3.56 3.69 3.48 2.97 2.59 5.33 3.32 3.93 3.85 3.76 3.65 5.49 5.80 5.07 3.58 3.20 3.43 3.02 3.03 3.31 3.26 3.44 4.57 5.03 5.64 3.22 2.62 3.29 2.16 3.34 2.61 Note: Ranks out of 138 economies and scores measured on a 1-to-7 scale. 50 | The Global Competitiveness Report 2016–2017
67. CHAPTER 1 .2 Modernizing the Measurement of Drivers of Prosperity in Light of the Fourth Industrial Revolution: The Updated Global Competitiveness Index XAVIER SALA-I-MARTÍN Columbia University ROBERTO CROTTI SILJA BALLER ATTILIO DI BATTISTA MARGARETA DRZENIEK-HANOUZ THIERRY GEIGER DANIEL GÓMEZ GAVIRIA GAËLLE MARTI World Economic Forum Economies and people worldwide are starting to feel the first effects of the dawning Fourth Industrial Revolution, a convergence of technologies that is blurring the lines between the physical, digital, and biological in ways that promise to disrupt almost every industry in every country.1 Breakthroughs are happening and proliferating at an unprecedented pace—from sensors to blockchain to human-brain interfaces. Technology-enabled platforms in the “sharing” or “on-demand” economies are upending business models and forcing countries to rethink how they formulate economic policies. The number of industrial robots in the world is roughly doubling every five years (from 69,000 in 2002 to 229,000 in 2014, as shown in Figure 1, and is projected to reach 400,000 by 2018),2 driven especially by demand from automotive parts suppliers and the electrical/electronics industry. As the Internet of Things becomes mainstream, the number of connected devices will almost triple by 2020, from 13.4 billion to 38.5 billion,3 and the proportion of products sold via e-commerce will more than double, from 6 percent in 2014 to 12.8 percent by 2019.4 The combination of automation and digitalization is revolutionizing manufacturing and services alike, as well as blurring the lines between them. This process is increasing efficiency, optimizing logistics, and making prices more transparent and competition starker. At the same time, it is reinforcing the need of firms to remain ahead of the innovation curve. More and more, technological forces are pushing companies to either innovate or disappear: 88 percent of firms in the 1955 Fortune 500 were not on the 2014 list, and the rate of turnover is accelerating, while the duration of product lifecycles declined, across all industries, by 24 percent between 1997 and 2012.5 Such dramatic changes in the dynamics of the economy need to be reflected in how we measure economic progress and its drivers. These changes make it necessary to better understand how the Fourth Industrial Revolution is altering how we understand competitiveness, growth, and—fundamentally—the prosperity of countries (see Box 1 for further discussion). For purposes of the present report, an important question is how it impacts the drivers of competitiveness captured by the Global Competitiveness Index. The increased complexity of today’s economy is arguably making our current statistical tools outdated, both conceptually and methodologically. Calculation methods built for tracking physical sales of goods and services are incapable of accurately measuring transactions that take place on virtual platforms or The authors invite feedback on this chapter. Please send feedback and comments to gcp@weforum.org. The Global Competitiveness Report 2016–2017 | 51
68. 1 .2: The Updated Global Competitiveness Index Figure 1: Estimated worldwide annual supply of industrial robots Sales of industrial robots (1,000 units) 250 200 150 100 50 0 through non-monetary exchanges of services. Increased measurement challenges in calculating GDP have lessened its value as an indicator of economic progress (see Box 2), and also calls into question the accuracy of productivity estimates, which require precise evaluation of output, capital, and labor. Measuring the drivers of prosperity likewise requires a conceptual and methodological rethink. When the Global Competitiveness Index (GCI) was introduced in 2006, the effects of the Fourth Industrial Revolution had not yet started to arise. Today, although the main drivers of competitiveness identified at that time remain generally valid, they may affect the development process in a different way than they did a decade ago. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: IFR 2015. Box 1: The competitiveness factors supporting the Fourth Industrial Revolution The possibilities of the Fourth Industrial Revolution to produce productivity gains and, therefore, greater prosperity for both individuals and communities depend on a number of factors. Ultimately the goal is for individuals, firms, and sectors to be able to access emerging technologies, incorporate them into their innovation and operational processes, and participate meaningfully in both new and transforming value networks. It is tempting to assume that the competitiveness factors that matter the most for firms and countries looking to benefit from the Fourth Industrial Revolution are linked primarily to measures of technological sophistication and innovation. Indeed, this edition of The Global Competitiveness Report shows that levels of business sophistication and the strength of innovation-related factors are becoming more influential in driving competitiveness, and many of the characteristics of technologies that are driving the Fourth Industrial Revolution (such as their networked nature) suggest that these factors will continue to rise in importance. However, many other factors also influence the ability of an economy to employ and develop emerging technologies. As this chapter outlines, the Forum’s approach to measuring innovation is itself changing, taking an integrated, future-oriented, and ecosystemic approach to the link between productivity and new products and processes, moving away from a linear process of idea creation to commercialization. A hallmark of the Fourth Industrial Revolution is the way in which it converges with, relies on, and employs digital technologies and business models in order to create, exchange, and distribute value, requiring digital infrastructure and network availability in addition to business sophistication. The innovation ecosystem pillars in the revised Global Competitiveness Index presented in this chapter offer an approach that captures all of these ideas: the Fourth Industrial Revolution does not rely only on ICT technologies but also on non-ICT technologies, as reflected in the revamped technology adoption pillar; the possibility of recouping investments through economies of scale as reflected in the new market size pillar; the business dynamism 52 | The Global Competitiveness Report 2016–2017 pillar showing the factors that drive entrepreneurial spirit and ways businesses respond to opportunity; and, finally, the pillar showing innovation capacity going beyond R&D to incorporate the factors that incentivize creativity, ideageneration, and collaboration. A companion report, the Forum’s Global Information Technology Report 2016, explores some of these aspects: the ways in which network readiness is essential to enabling the creation and use of emerging technologies. The 2016 report reveals that countries looking to capitalize on economic gains of ICTs should promote not just access, but also adoption and use of digital networks. Adoption—the successful use and development of emerging technologies—of course requires human capital, which is another critical input of the Fourth Industrial Revolution in the form of healthy, educated populations. The new human capital pillars of the GCI, divided into a heath pillar and an education and skills pillar captures these two forms of investment in human capital. In particular, the education and skills pillar looks at both the skills of the current work force and the skills of the future work force. In line with finding from the Forum’s Future of Jobs report, this pillar includes indicators on critical thinking in teaching. Finally, while the Fourth Industrial Revolution will feature technologies such as the blockchain that can support both private and public governance, these technologies alone will not replace the importance of an enabling environment. The framework presented in this chapter covers three pillars that will be essential for economies looking to capitalize on the Fourth Industrial Revolution: institutions, such as rule of law and smooth functioning of public administration; infrastructure reflecting investment in new measures of connectivity; and a healthy macroeconomic context. Contributed by Nicholas Davis, Head of Society and Innovation, Member of the Executive Committee, World Economic Forum
69. 1 .2: The Updated Global Competitiveness Index This chapter lays out the Forum’s latest thinking on the concept of competitiveness and its implications for the GCI in light of the new forces that are starting to be unleashed by the Fourth Industrial Revolution and other trends. The goal of the chapter is to provide a basis for discussion and feedback ahead of the launch of the new methodology. THE GCI IN THE TIME OF THE FOURTH INDUSTRIAL REVOLUTION The need to produce measurements that better capture this emerging new economic reality translates into an evolved measurement of competitiveness and its drivers to give more relevant guidance to policymakers and public-private dialogues. The World Economic Forum has been working on modernizing the GCI over the past two years. In the 2015–2016 edition of The Global Competitiveness Report (GCR), the first reflections from this process were published, providing a thorough literature review of competitiveness drivers,6 as well as a preliminary methodology for the new Index. Since last year’s Report the Forum’s thinking has advanced further to identify five clear directions for measuring competitiveness during the rise of the Fourth Industrial Revolution. First, productivity remains a key driver of prosperity. Although measuring productivity has become more complex, economists have little doubt Box 2: The global productivity slowdown: Five hypotheses Since Robert Solow identified technology as a driver of growth in the 1950s,1 productivity has been developing hand in hand with innovation. In recent years, innovations such as big data, FinTech, the sharing economy, and other ICT-enabled services, and also advances in science and technology, including in biotechnology, new materials, and artificial intelligence, are expanding. Yet, in the vast majority of global regions, productivity growth has slowed since the global financial crisis: the last decade was the first since World War II where productivity growth stagnated or declined, as shown in The Global Competitiveness Report 2015–2016. What could explain this paradox? There are five main hypotheses. 1.Technology has yet to show its full impact on productivity. We need time to re-invent our organizations, laws, and rules to fully leverage new technologies. For investments in digital technologies to be viable, firms need to simultaneously reform many business processes and equip workers with new skills; it they do not, the combination of new technologies and insufficient people who can use them will create new inefficiencies. In some cases, a governance vacuum prevents some of the more advanced technologies, such as self-driving cars and drones, from being translated into reality. In other cases, we recognize the potential of new technologies but do not yet know how best to deploy them. Only now are companies emerging with new business models for goods and services in fields such as transportation, energy, and healthcare; truly reinventing fields such as banking and education will take more time. 2.The way we measure productivity underestimates improvements. Productivity measurements capture only monetary transactions, so non-monetary transactions (e.g., those initiated in the sharing economy) may not be captured. We may not be able to measure spreading free digital services correctly—how do we account for the output of companies such as Google or Wikipedia or for the matchmaking efficiency achieved by Etsy or Airbnb? And how do we measure cross-border trade in data? In the same way, qualitative improvements to products and services are equally inherently difficult to capture in national accounts and have arguably been taking place faster in recent years. However, recent research highlights the idea that mis-measurement is not telling the whole story.2 3.Innovation today may not be as all-encompassing and or groundbreaking as it has been in the past. Economist Robert Gordon argues that, compared with innovations in the 19th century (such as the steam engine, electric lights, and sewerage) that had a quick and pervasive impact on people’s lives, today’s innovations (such as social media and smartphones) may not yet have a similar level of impact and hence their impact on productivity is incremental.3 4.Hysteresis effects may have emerged following the financial crisis. As outlined by economist Nouriel Roubini, protracted recessions—such as the one the global economy has been experiencing since 2007—can slow productivity growth for two reasons: because people who remain unemployed for a long time lose their skills and because slowing investment prevents the latest technologies embedded in capital goods from being used.4 5.Rising inequality could slow down productivity growth. The rising inequality observed in past years could slow productivity growth further. If rising inequality reduces demand (the wealthy tend to spend less and the poor have less to spend), then productivity improvements will not lead to rising sales, and no resource re-allocation toward more productive sectors will take place. As a result, average productivity will not increase—it may even decrease. More research is needed to understand the reasons behind the slowdown in productivity growth. Whatever the reasons, however, there is widespread agreement that productivity remains a key driver of growth and prosperity, which remain important for citizens’ well-being. When growth is balanced and inclusive, pro-competitiveness reforms are key to ensuring rising standards of living and social stability. Notes 1 Solow 1956, 1957. 2 Byrne et al. 2016. 3 Gordon 2012. 4 Roubini 2016. The Global Competitiveness Report 2016–2017 | 53
70. 1 .2: The Updated Global Competitiveness Index of its central role in economic progress. Prosperity can increase only if inputs of production are used in smarter and more efficient ways to fulfill constantly evolving human demands. Therefore we still define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of an economy, which in turn determines the level of prosperity a country can achieve. Second, future orientation is central. Because technology disrupts the business landscape in unexpected ways and does this more quickly than it used to, the primary feature of successful economies will be their capacity to be agile, adapt to changes, and respond to shocks relatively smoothly and speedily. These aspects are meant to be captured by the education and skills, labor market, and goods market pillars that measure the extent to which a country’s regulations and human capital support structural change and industrial revamp. Third, the meaning of innovation is being updated. The capacity of a country to be innovative has to be thought of as an ecosystem that not only produces scientific knowledge but also enables all industries— including in the service sector—and society at large to be more flexible, interconnected, and open to new ideas and business models. This way of understanding innovation focuses on a country’s ability to bring new products and services to market, and it attributes equal importance to non-technical and technical inventions. To be truly innovative, a country should not only file patents and support research and development in science and technology, but should also provide a networked, connected environment that promotes creativity and entrepreneurship, fosters collaboration, and rewards individuals who are open-minded and embrace new ways to perform tasks. In such an ecosystem the modernization of the educational framework also plays a pivotal role: it must offer life-long learning opportunities and teach students to think critically, collaborate with individuals of different backgrounds, and expose them to different points of view and ideas. Similarly, the financial sector needs to offer venture capital and new financing solutions suitable for smaller or riskier projects, as well as leverage information and communication technologies (ICT) platforms, such as what today is known as FinTech. Fourth, ICT infrastructure is an imperative. As ICT-based business models become more prevalent, countries that fail to transition to a digital economy will be at a substantial competitive disadvantage, not only commercially but also in terms of innovation. Hence the technology adoption, business agility, and innovation capacity pillars have been reformed, considering them to be all part of the innovation ecosystem. ICT infrastructure measures have also been added to the infrastructure pillar as they now play a prerequisite role for development as much as transport infrastructure. 54 | The Global Competitiveness Report 2016–2017 Fifth, the world is leveled more than it used to be. The current GCI model assumes that a country’s priorities evolve as it develops, with infrastructure, institutions, macroeconomic stability, and basic health and education more important for lower-income countries and innovation and business sophistication more important for higher-income countries. The Fourth Industrial Revolution makes it reasonable to take a more agnostic approach and recognize that all competitiveness factors matter for countries at all income levels and the exercise of policy prioritization is more complex than we have so far believed. For example, robotics is making light manufacturing less labor-intensive, which reduces the feasibility of lowerincome countries developing by leveraging unskilled labor. However, because ICTs enable the rapid transfer of ideas and technologies, they also make innovation less capital-intensive, offering those countries new ways to develop. The updated GCI will reflect this conceptual change and weight all 12 pillars equally for all countries. We assume that a country’s development priorities are country-specific rather than determined by their income level. Defining policy priorities is a country-specific exercise that will be better informed by the updated GCI (see Box 3). In addition to these new conceptual underpinnings, the methodology needs to keep up with new indicators that have become available, notably for health and financial development. On health, the disability-adjusted life year summarizes all available information on the extent of mortality and disability due to communicable and non-communicable diseases and is, therefore, a more accurate measure of the health component of human capital than life expectancy or the prevalence of malaria, tuberculosis, and HIV. On finance, new metrics on depth, liquidity, soundness, and access to the banking sector have started to become more available for a larger set of countries since the global financial crisis. These changes in the GCI methodology are a natural evolution of the current framework rather than a completely new approach. The overall structure of 12 pillars remains relevant because it captures general concepts that are important for any type of marketbased society: good governance, infrastructure, education, and functioning markets will continue to determine how successfully economic systems can cope with technological and societal revolutions, but they will do so in different ways. For example, institutions will not only have to protect property rights, security, and rule of law, but they also have to become more forward looking, updating regulations to prevent potential misuse of new technologies while nurturing a dynamic business environment; countries will need to build “data highways” as well as roads and ports; and financial sectors will need to support industrial restructuring and innovation.
71. 1 .2: The Updated Global Competitiveness Index Box 3: How to prioritize policies to overcome the “middle-income trap”: An empirical exercise for Latin America and the Caribbean Historically, the Global Competitiveness Index (GCI) has pointed toward one major way to prioritize policy reforms: dividing the Index into three subindexes (basic requirements, efficiency enhancers, and innovation and sophistication factors) while also classifying countries into three groups according to per capita income. For lower-income countries, a higher weight is given to basic requirements; for the middleincome group, the priority is efficiency enhancers; for higherincome countries, the focus is on improving innovation and sophistication. However, as the World Economic Forum revises the Global Competitiveness Index, other ways to contribute to the debate about policy prioritization to boost inclusive growth in emerging and developing markets and industrialized countries alike are being looked at—a debate that is especially urgent as the Fourth Industrial Revolution disrupts patterns of development and opens new paths to development. Following a session at the World Economic Forum on Latin America 2016, the Forum and the OECD Development Centre are exploring new methodologies to identify policy priorities in the region by combining GCI data with recent OECD Development Centre research. For Latin America, an especially challenging scenario is the “middle-income trap”: it is common for countries to grow rapidly in their early stages of development, only to stagnate when they approach middle levels of per capita income. Different sources of growth become more important at this stage, and countries can struggle to prioritize the right policies to make the necessary adjustments.1 In the region, only Argentina, Chile, and Uruguay have overcome the middle-income trap or are close to doing so.2 Several other Latin American countries were already in the middleincome range as early as 1950, but these countries have not advanced beyond that range, and the region’s average per capita income growth has remained weak in comparison to the OECD average (see Figure 1). Figure 1: Middle-income countries: Latin America and the Caribbean compared to OECD GCP per capita, constant 1990 PPP dollars 11,800 Upper-middle income 9,800 Whether a country falls into or escapes from the middleincome trap depends on a range of many variables, from its general economic and legal environment and macroeconomic stability to integration and the effectiveness of productive development policies. The OECD Development Centre conducted empirical research to shed light on the most important policy areas, statistically analyzing the experiences of emerging economies and the OECD countries that have graduated to higher-income status since 1985. The Centre defines middle-income as between US$2,000 and US$11,750, measured in 1990 constant levels and adjusted for PPP, as in Felipe et al. (2012). Using fixed thresholds at constant PPP prices allows us to compare the current characteristics of middle-income Latin American economies to those of countries at the time they graduated to high-income status: Israel (1986), Singapore (1988), Ireland (1990), Spain (1990), the Republic of Korea (1995), Portugal (1996), Greece (2000), Chile (2005), Kuwait (2005), Qatar (2005), Uruguay (2012), Malaysia (2014), and Poland (2014). The Centre uses linear discriminant analysis to find the linear combination of institutional and economic features—covering institutions, the structure of production, demographic variables, and macroeconomic indicators—that characterize countries that did and did not evade the middleincome trap.3 Preliminary results show that the variables that best separate these sets of countries are the rule of law, the index of productive capabilities, and investment. These policy areas seem to exhibit robust results, because most countries are correctly ascribed to their particular income category based on a larger group of growth determinants, not exclusively on per capita income. The analysis also points to differing policy priorities for economies in Latin America and the Caribbean. For instance, Chile lags behind in terms of productive capabilities and the size of the manufacturing sector; in Mexico, improvements to the rule of law are highlighted; in Colombia and Peru, the challenges are linked to productive capabilities, the size of the manufacturing sector, public revenues, and the rule of law. The Forum and the OECD Development Centre are collaborating to extend this research by including new variables, broadening the country sample, and testing novel empirical methodologies. Notes 1 See, for example, Aiyar et al. 2013; Eichengreen et al. 2011; Felipe et al. 2012; OECD 2013; Zhang et al. 2012. 2 OECD/ECLAC/CAF 2015. 5,800 3 For details about linear discriminant analysis, see Fisher 1936. 3,800 Contributed by Angel Melguizo and Sebastian Nieto, OECD Development Centre. We would like to acknowledge the contributions of José Ramon Perea, formerly with the OECD Development Centre and now at the World Bank, and member of the research team. 7,800 1,800 Lower-middle income Low income LAC average OECD average 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Source: OECD Development Centre calculations, based on Felipe et al. 2012. Data were extracted from the International Monetary Fund’s World Economic Outlook Database (April 2016), https://www.imf.org/external/data.htm, and the Maddison Project (2010) database, http://www.ggdc.net/maddison/. The Global Competitiveness Report 2016–2017 | 55
72. 1 .2: The Updated Global Competitiveness Index Figure 2: The updated GCI framework Enabling environment Institutions Introduced new statistical measures of security and transparency Infrastructure Included more measures of connectivity, ICT, energy, and water infrastructure Macroeconomic context Human capital Markets Innovation ecosystem Health Refocused from morbidity to disability-adjusted life years Product market efficiency Streamlined and simplified to focus on tariffs, antitrust, and taxation Technology Improved ICT adoption measures; more measures capturing non-ICT technologies Education and skills Restructured as current versus future skills of the labor force Labor market functioning Refocused on matching skills and capacity to support industry disruption Market size Rethought to capture market potential rewarding larger pools of ideas and economies of scale Business dynamism Rethought to capture entrepreneurial spirit entry and bankruptcy regulation Innovation capacity Combines R&D with non-R&D factors (e.g., creativity, connectivity, business models) Added measures of external and foreign currency debt and improved conventional indicators Figure 2 summarizes the main changes to the GCI framework. These include centering the health pillar on disability-adjusted life years, rethinking market size as market potential, and reflecting the richer data now available in the financial pillar. The appendix fully describes all the indicators that are part of the updated methodology. SELECTED ISSUES: DISCUSSION AND PRELIMINARY RESULTS This section presents preliminary results on two subindexes that are particularly relevant in the context of the Fourth Industrial Revolution and that have been extensively reviewed—the human capital subindex and the innovation ecosystem subindex—as well as a new approximation to the weights given to pillars due to implications for policy prioritization. Four subindexes Moving away from the idea that countries move through sequential, defined stages of development implies that the methodology needs to be updated accordingly. The planned index will weight all 12 pillars equally for 56 | The Global Competitiveness Report 2016–2017 Financial Using predominantly market hard data, expanded development regulatory and access aspects all countries and the pillars will be grouped into four subindexes:7 • The enabling environment subindex measures whether countries have in place sound institutions, well-developed infrastructure, and strong macroeconomic conditions, which together determine the environment in which companies operate. • The human capital subindex measures how the health and skills of the labor force contribute to a country’s competitiveness. • The markets subindex measures how firms can rely on product, labor, and financial markets to find the production inputs they need and how quickly and easily they can reorganize when the industry landscape changes. • The innovation ecosystem subindex measures how technology adoption, business dynamism, and innovation capacity all influence the innovation
73. 1 .2: The Updated Global Competitiveness Index Table 1: Structure of the education and skills pillar Skills of the current workforce Skills of the future workforce Mean years of schooling (UNESCO) School life expectancy overall (UNESCO) Extent of staff training (EOS) Quality of primary education (EOS) Quality of vocational training (EOS) Internet use in schools (EOS) Skillset of secondary-education graduates (EOS) Critical thinking in teaching (EOS) Skillset of university graduates (EOS) Note: For a full definition of variables and sources, see the appendix at the end of this chapter. EOS = Executive Opinion Survey. process. Using existing technology can give rise to new products and business models; countries where businesses are more open to new ideas are more likely to adopt the latest technologies faster and create new ones; and larger markets foster innovation because they enable economies of scale for new products and services. Education and skills At every level of schooling, the education system needs to teach competences that are relevant to the modern economy. Even lower-skilled jobs increasingly require talent and knowledge, so vocational training and secondary education need to equip people with the ability to work in a complex, digital environment. Because change occurs so quickly, there is a high level of uncertainty regarding the skills needed for the future.8 However, at all skill levels, individuals will be rewarded for the capacity to think critically, solve problems, and take advantage of new technologies. Schools will therefore need to teach flexible thinking rather than emphasizing memorization; they will need to show students how to cooperate and work with individuals with different backgrounds as well as to compete, and will need to nurture the ability to challenge, confront, and critically appraise differing ideas. To capture these developments, the suggested education and skills pillar measures both the quantity and quality of skills and the training that today’s workers possess, as well as the level of education and skills of tomorrow’s workforce, with particular emphasis on the use of ICTs in school and the style of teaching. Measuring the skills of the current and future workforce together captures the dynamics of the workforce’s skillset in each country, tracking whether the level of human capital is increasing or declining. Even the most advanced countries today could quickly lose their human capital advantage if their education systems fail to increase the quantity and quality of skills of their future professionals and entrepreneurs. Similarly, developing countries could see their investments in education generate decreasing returns if they do not manage to update curricula and teaching styles. Table 1 shows the structure of the education and skills pillar. Table 2 presents the preliminary results for this pillar. Denmark has the most sustainable system, with the skills of the current and future workforce both ranking in the top five. Denmark is one of the first countries to include computer science in its primary-school curriculum, together with the United Kingdom, Israel, New Zealand, and Australia. Finland and Iceland are among the advanced countries where the future workforce is expected to be better equipped than current workers, whereas Switzerland, Israel, and Japan are among those that may see their currently high level of human capital diminish going forward. Among emerging and developing economies, Brazil, China, Colombia, Rwanda, and Kenya are examples of countries improving the future skillset of their workforce, while countries with education systems that may see reductions in their future human capital include the Philippines, Panama, South Africa, and Nigeria, which already ranks as low as 123rd. Innovation According to the latest thinking, innovation occurs in an ecosystem where businesses, regulations, and social norms promote connectivity, creativity, entrepreneurship, collaboration, and the adoption of the latest technologies to generate new ideas and bring new products and business models to market. These concepts are measured by four pillars: technological adoption, market size, business dynamism, and innovation capacity. The concepts measured by the latter two pillars, in particular, need to go hand in hand for a country to be considered an innovation powerhouse (Table 3). As long as new ideas cannot find a practical implementation they might contribute to knowledge accumulation but they do not immediately translate into advances in human welfare. In some cases finding a practical application for a new idea is just a matter of time, because technological progress in other fields has to occur before these ideas can be put into practical use. It is, however, crucial for a country to develop the skills and the conditions that can ignite the process of transforming abstract innovation into new products and processes. The Global Competitiveness Report 2016–2017 | 57
74. 1 .2: The Updated Global Competitiveness Index Table 2: Education and skills pillar: Preliminary country/economy rankings 5th pillar: Education and skills A. Skills of the current workforce Value B. Skills of the future workforce Economy Rank Value Rank Denmark 1 6.18 3 6.13 Rank 5 6.22 Value Switzerland 2 6.17 1 6.56 12 5.79 Norway 3 6.12 4 6.13 9 6.12 Netherlands 4 6.11 9 5.92 2 6.29 Sweden 5 6.09 6 5.97 6 6.22 Australia 6 6.04 10 5.89 7 6.18 United Kingdom 7 6.00 8 5.93 10 6.07 Germany 8 5.93 2 6.20 15 5.67 New Zealand 9 5.92 17 5.57 4 6.27 Belgium 10 5.89 13 5.63 8 6.15 Finland 11 5.88 23 5.33 1 6.43 United States 12 5.82 5 6.05 18 5.58 Iceland 13 5.78 24 5.29 3 6.28 Singapore 14 5.76 12 5.79 13 5.73 Canada 15 5.69 7 5.94 19 5.44 Ireland 16 5.64 27 5.26 11 6.01 Estonia 17 5.61 15 5.58 16 5.64 Israel 18 5.53 11 5.86 25 5.19 Slovenia 19 5.49 20 5.38 17 5.59 Czech Republic 20 5.46 16 5.58 22 5.33 Lithuania 21 5.45 18 5.53 20 5.36 Korea, Rep. 22 5.23 26 5.27 24 5.20 Latvia 23 5.22 21 5.37 30 5.07 France 24 5.22 22 5.33 28 5.10 United Arab Emirates 25 5.15 50 4.60 14 5.70 Japan 26 5.12 19 5.39 39 4.85 Austria 27 5.12 34 5.09 26 5.15 Malta 28 5.07 25 5.27 38 4.86 Luxembourg 29 5.05 14 5.59 52 4.51 Poland 30 5.04 35 5.08 32 5.00 Russian Federation 31 5.02 28 5.26 40 4.77 Taiwan, China 32 5.01 39 4.88 27 5.14 Qatar 33 4.96 29 5.16 41 4.77 Kazakhstan 34 4.91 32 5.10 44 4.71 Spain 35 4.88 56 4.41 21 5.35 Malaysia 36 4.86 33 5.09 48 4.63 Slovak Republic 37 4.86 30 5.14 49 4.58 Greece 38 4.80 47 4.64 33 4.95 Ukraine 39 4.79 46 4.69 36 4.89 Portugal 40 4.75 67 4.19 23 5.31 Cyprus 41 4.74 31 5.11 59 4.38 Argentina 42 4.73 55 4.45 31 5.01 Italy 43 4.69 54 4.45 34 4.94 Hungary 44 4.68 36 4.96 57 4.41 Albania 45 4.68 62 4.26 29 5.10 Chile 46 4.63 49 4.60 46 4.67 Sri Lanka 47 4.61 38 4.93 62 4.30 Montenegro 48 4.61 45 4.70 51 4.51 Georgia 49 4.61 37 4.93 63 4.29 Saudi Arabia 50 4.59 61 4.30 37 4.89 Barbados 51 4.56 65 4.23 35 4.90 Costa Rica 52 4.56 58 4.37 42 4.76 Croatia 53 4.54 48 4.63 55 4.45 Brunei Darussalam 54 4.42 71 4.11 43 4.73 Uruguay 55 4.36 72 4.04 45 4.68 Romania 56 4.36 59 4.35 60 4.37 Bulgaria 57 4.35 68 4.19 53 4.50 Serbia 58 4.33 53 4.57 70 4.09 Bahrain 59 4.32 60 4.35 61 4.30 Mauritius 60 4.32 74 3.99 47 4.65 Azerbaijan 61 4.31 42 4.75 79 3.87 Jordan 62 4.29 51 4.59 73 4.00 Mongolia 63 4.28 70 4.12 56 4.43 Trinidad and Tobago 64 4.27 40 4.87 89 3.67 Armenia 65 4.21 44 4.73 86 3.70 Moldova 66 4.16 41 4.87 96 3.44 Ecuador Tajikistan 67 68 4.13 4.12 79 43 3.79 4.75 54 93 4.47 3.48 Dynamics* (Cont’d.) 58 | The Global Competitiveness Report 2016–2017
75. 1 .2: The Updated Global Competitiveness Index Table 2: Education and skills pillar: Preliminary country/economy rankings (cont’d.) 5th pillar: Education and skills Economy A. Skills of the current workforce B. Skills of the future workforce Rank Value Rank 69 70 4.11 4.05 57 66 Jamaica 71 4.01 64 4.24 83 3.77 South Africa 72 4.00 52 4.58 97 3.43 Panama 73 3.99 63 4.25 84 3.73 China 74 3.97 85 3.56 58 4.39 Bosnia and Herzegovina 75 3.97 80 3.78 66 4.15 Philippines Venezuela Value Rank Value 4.37 4.22 80 78 3.85 3.88 Turkey 76 3.95 92 3.36 50 4.53 Indonesia 77 3.92 81 3.75 69 4.09 Iran, Islamic Rep. 78 3.89 86 3.52 64 4.25 Botswana 79 3.88 75 3.97 82 3.79 Macedonia, FYR 80 3.87 77 3.85 77 3.89 Kyrgyz Republic 81 3.87 69 4.15 91 3.59 Oman 82 3.83 84 3.60 71 4.06 Lebanon 83 3.80 82 3.65 76 3.94 Thailand 84 3.79 83 3.64 75 3.95 Peru 85 3.77 76 3.94 90 3.60 Colombia 86 3.76 91 3.40 67 4.13 Mexico 87 3.76 78 3.84 87 3.68 Brazil 88 3.65 96 3.18 68 4.13 Cape Verde 89 3.64 98 3.12 65 4.16 Bolivia 90 3.60 87 3.51 85 3.70 Zambia 91 3.59 73 4.01 104 3.17 Tunisia 92 3.44 103 2.83 72 4.06 Dominican Republic 93 3.44 90 3.41 95 3.47 Algeria 94 3.39 102 2.84 74 3.95 Gabon 95 3.31 94 3.30 99 3.31 India 96 3.25 104 2.82 88 3.67 Vietnam 97 3.25 95 3.29 101 3.21 Kuwait 98 3.24 100 2.90 92 3.58 Bhutan 99 3.20 112 2.56 81 3.85 Paraguay 100 3.16 93 3.30 110 3.02 Zimbabwe 101 3.15 89 3.43 113 2.88 El Salvador 102 3.15 101 2.89 98 3.42 Ghana 103 3.15 97 3.15 105 3.15 Guatemala 104 3.13 88 3.45 116 2.80 Rwanda 105 3.06 108 2.64 94 3.47 Honduras 106 3.00 99 2.94 108 3.06 Kenya 107 2.97 105 2.73 102 3.21 Namibia 108 2.87 106 2.72 109 3.03 Benin 109 2.81 116 2.42 103 3.20 Lao PDR 110 2.78 114 2.48 107 3.08 Cameroon 111 2.77 111 2.56 111 2.98 Nepal 112 2.75 127 2.21 100 3.28 Morocco 113 2.68 125 2.24 106 3.13 Lesotho 114 2.59 122 2.30 112 2.89 Gambia, The 115 2.57 113 2.55 118 2.60 Liberia 116 2.56 120 2.31 115 2.82 Côte d'Ivoire 117 2.55 109 2.61 121 2.49 Senegal 118 2.54 110 2.58 120 2.50 Cambodia 119 2.54 126 2.22 114 2.85 Madagascar 120 2.52 121 2.30 117 2.74 Congo, Democratic Rep. 127 2.29 123 2.27 125 2.30 Uganda 121 2.41 119 2.35 123 2.46 Nigeria 122 2.40 107 2.70 129 2.10 Malawi 123 2.36 129 2.18 119 2.54 Mali 124 2.33 117 2.41 126 2.25 Bangladesh 125 2.33 130 2.18 122 2.47 Burundi 126 2.30 124 2.25 124 2.35 Pakistan 128 2.27 118 2.37 128 2.17 Tanzania 129 2.25 115 2.47 131 2.04 Ethiopia 130 2.20 131 2.18 127 2.21 Mozambique 131 2.05 133 2.05 130 2.06 Sierra Leone 132 2.01 128 2.19 132 1.83 Chad 133 1.93 132 2.11 133 1.75 Mauritania Yemen 134 135 1.78 1.74 134 135 1.86 1.83 134 135 1.70 1.65 Dynamics* * The dynamics column shows the change vis-a-vis the current pillar of the Global Competitiveness Index. = The score of the Skills of the future workforce subpillar is higher than the score of the Skills of the current workforce by 15 percent or more. = The score of the Skills of the future workforce subpillar is lower than the score of the Skills of the current workforce by 10 percent or more. The Global Competitiveness Report 2016–2017 | 59
76. 1 .2: The Updated Global Competitiveness Index Table 3: Structure of the business dynamism and innovation capacity pillars Business dynamism pillar Innovation capacity pillar Cost required to start a business (World Bank) Collaboration inside company/ between companies/industry-university Scientific and technical articles (World Bank) Time required to start a business (World Bank) Internet users (ITU) Patent application (WIPO) Bankruptcy proceedings costs (World Bank) Stage of clusters development (EOS) Company spending on R&D (EOS) Strength of insolvency framework (World Bank) Encouragement to idea generation (EOS) Buyer sophistication (EOS) Attitudes towards entrepreneurial risk (EOS) Exposure to new ideas (EOS) International brands (EOS) Growth of innovative companies (EOS) ICT and business model creations (EOS) Trademark application (WIPO) Willingness to delegate authority (EOS) Companies embracing disruptive ideas (EOS) Capacity to commercialize new products (EOS) Note: For a full definition of variables and sources, see the appendix at the end of this chapter. EOS = Executive Opinion Survey. Therefore the business dynamism pillar measures the extent to which regulations promote entrepreneurial mindset and business agility—for example, the ease of opening and closing a business and attitudes toward entrepreneurial risk. Innovation capacity, in addition to measuring the accumulation of knowledge produced by formal research and patenting activity, also captures a country’s capacity to encourage creativity, interaction, and collaboration between individuals and institutions; and the aptitude of its companies to commercialize new products. This way of thinking about innovation emphasizes how breakthrough ideas emerge from contrasting and applying concepts across diverse industries, cultures, departments, and disciplines.9 A similar process was observed during the Renaissance when the cultural environment provided the conditions for painters, sculptors, scientists, philosophers, financiers, and architects to influence each other’s’ work and produce remarkable progress in both arts and science. Table 4 shows the preliminary country rankings on these two pillars. Switzerland, Sweden, the Netherlands, Germany, Denmark, and the United States are in the top 10 on both pillars. Others fall short in one or other dimension: for example, Italy and China rank above 40th for innovation capacity but below 60th for business agility. Japan and the Republic of Korea rank around 20th in both dimensions: although both countries score highly for patenting and research and development investment, their innovation ecosystem is limited by burdensome regulations and conservative social norms around entrepreneurial risk. Conversely, New Zealand ranks better for business dynamism than it does for innovation capacity. Because countries can be truly innovative only if all components of the ecosystem are in place, this analysis should help policymakers, businesses, and civil society to identify bottlenecks and prioritize interventions. 60 | The Global Competitiveness Report 2016–2017 CONCLUSIONS This chapter has explained the current status of the World Economic Forum’s work to modernize the Global Competitiveness Index in light of the new reality brought about by the Fourth Industrial Revolution. We have presented preliminary results on the three most renovated pillars (education and skills, business dynamism, and innovation capacity). The analysis of the preliminary results suggests that the competitiveness of advanced and emerging economies alike will rest on a country’s future orientation and its ability to update skills, and on the regulations and social norms that promote entrepreneurship and welcome change, collaboration, and creativity. As we continue to work to improve the Index, we invite users, policymakers, business executives, and the academic community to provide feedback on the components discussed above and the preliminary Index results presented in this chapter.10
77. 1 .2: The Updated Global Competitiveness Index Table 4: Business dynamism and innovation capacity pillars: Preliminary country rankings 11TH PILLAR: BUSINESS DYNAMISM Country/Economy 12TH PILLAR: INNOVATION CAPACITY Rank Score Country/Economy Rank Score Country/Economy Rank Score Country/Economy Rank Score United States 1 6.12 5.93 5.88 4.64 4.64 1 2 70 69 Switzerland Sweden India Argentina Sweden 2 5.92 Argentina Uruguay 69 70 2.95 2.95 Norway 3 5.85 Panama 71 4.63 Netherlands 3 5.68 Kuwait 71 2.94 Netherlands 4 5.82 Turkey 72 4.62 Germany 4 5.66 Kazakhstan 72 2.94 Denmark 5 5.81 Tunisia 73 4.61 Denmark 5 5.48 Brunei Darussalam 73 2.93 United Kingdom 6 5.81 Croatia 74 4.61 United States 6 5.46 Jamaica 74 2.91 New Zealand 7 5.79 Guatemala 75 4.56 Luxembourg 7 5.42 Oman 75 2.91 Iceland 8 5.77 Vietnam 76 4.54 Finland 8 5.39 Vietnam 76 2.90 Switzerland 9 5.71 Poland 77 4.54 Israel 9 5.36 Colombia 77 2.90 Germany 10 5.70 Serbia 78 4.51 Austria 10 5.32 Montenegro 78 2.89 Finland 11 5.66 Trinidad and Tobago 79 4.50 Taiwan, China 11 5.26 Ukraine 79 2.89 Singapore 12 5.62 Saudi Arabia 80 4.49 United Kingdom 12 5.25 Lao PDR 80 2.88 Ireland 13 5.62 Honduras 81 4.47 Singapore 13 5.16 Rwanda 81 2.88 Taiwan, China 16 5.53 Kyrgyz Republic 82 4.47 Iceland 14 5.13 Iran, Islamic Rep. 82 2.88 Australia 14 5.55 Ukraine 83 4.41 Norway 15 5.11 Serbia 83 2.87 Belgium 15 5.54 Lebanon 84 4.41 Korea, Rep. 16 5.06 Tajikistan 84 2.84 Estonia 17 5.52 Brazil 85 4.40 Ireland 17 5.06 Senegal 85 2.81 Canada 18 5.49 Philippines 86 4.40 Belgium 18 5.03 Namibia 86 2.80 Israel 19 5.48 Hungary 87 4.39 Japan 19 4.97 Morocco 87 2.80 Japan 20 5.47 Kuwait 88 4.38 France 20 4.86 Ethiopia 88 2.79 Malaysia 21 5.41 Bangladesh 90 4.36 New Zealand 21 4.71 Ghana 89 2.79 Korea, Rep. 22 5.38 Rwanda 91 4.35 Canada 22 4.51 Nigeria 90 2.78 United Arab Emirates 23 5.29 Iran, Islamic Rep. 92 4.32 Australia 23 4.47 Tunisia 91 2.78 France 24 5.28 Thailand 93 4.31 Qatar 24 4.32 Peru 92 2.76 Portugal 25 5.25 Morocco 94 4.29 Estonia 25 4.31 Honduras 93 2.76 Qatar 26 5.24 Jordan 95 4.26 Malaysia 26 4.25 Botswana 94 2.75 Macedonia, FYR 27 5.21 El Salvador 96 4.26 Slovenia 27 4.21 Trinidad and Tobago 95 2.74 Slovenia 28 5.16 Côte d'Ivoire 89 4.36 Italy 28 4.15 Cambodia 96 2.72 Austria 29 5.14 Bhutan 97 4.25 Portugal 29 4.12 Dominican Republic 97 2.72 Chile 30 5.11 Indonesia 98 4.25 Spain 30 4.11 Bhutan 98 2.71 Latvia 31 5.10 Algeria 99 4.23 United Arab Emirates 31 4.07 Liberia 99 2.70 Lithuania 32 5.09 Nepal 100 4.22 Czech Republic 32 4.05 Georgia 100 2.70 Kazakhstan 33 5.07 Ghana 101 4.21 Malta 33 3.93 Côte d'Ivoire 101 2.69 Colombia 34 5.06 Mozambique 102 4.20 Cyprus 34 3.82 Pakistan 102 2.69 Bahrain 35 5.06 Paraguay 103 4.18 Lithuania 35 3.70 Zambia 103 2.68 Azerbaijan 36 5.03 Tanzania 104 4.18 China 36 3.66 Cameroon 104 2.68 Russian Federation 37 5.01 Madagascar 105 4.16 Slovak Republic 37 3.54 Cape Verde 105 2.67 Jamaica 38 4.99 Kenya 106 4.15 South Africa 38 3.49 Albania 106 2.67 Spain 39 4.97 Bosnia and Herzegovina 107 4.13 Latvia 39 3.46 Gambia, The 107 2.66 Luxembourg 40 4.97 Nigeria 108 4.10 Poland 40 3.44 Mongolia 108 2.64 Czech Republic 41 4.96 Namibia 109 4.08 Greece 41 3.41 Uganda 109 2.64 Mauritius 42 4.94 Cape Verde 110 4.06 Barbados 42 3.36 Ecuador 110 2.64 Montenegro 43 4.93 Botswana 111 4.05 Bahrain 43 3.35 Tanzania 111 2.62 Peru 44 4.91 Burundi 112 4.02 India 44 3.32 Mali 112 2.59 Oman 45 4.90 Dominican Republic 113 4.01 Azerbaijan 45 3.30 Kyrgyz Republic 113 2.57 Greece 46 4.90 Benin 114 3.99 Indonesia 46 3.28 Lesotho 114 2.56 Bulgaria 47 4.88 Lesotho 115 3.95 Bulgaria 47 3.27 Benin 115 2.55 Slovak Republic 48 4.87 Senegal 116 3.92 Croatia 48 3.26 Bangladesh 116 2.55 Armenia 49 4.87 Ecuador 117 3.87 Panama 49 3.24 Venezuela 117 2.54 South Africa 50 4.85 Mali 119 3.84 Saudi Arabia 50 3.24 El Salvador 118 2.54 Romania 51 4.84 Ethiopia 120 3.82 Lebanon 51 3.21 Bosnia and Herzegovina 119 2.53 Uruguay 52 4.81 Gambia, The 121 3.80 Jordan 52 3.18 Paraguay 120 2.52 Mexico 53 4.81 Uganda 122 3.79 Mauritius 53 3.17 Algeria 121 2.52 Albania 54 4.80 Liberia 123 3.71 Chile 54 3.16 Moldova 122 2.48 Cyprus 55 4.79 Congo, Democratic Rep. 124 3.68 Thailand 55 3.15 Madagascar 123 2.47 Brunei Darussalam 56 4.76 Cameroon 125 3.67 Hungary 56 3.15 Gabon 124 2.46 Georgia 57 4.76 Gabon 127 3.65 Kenya 57 3.13 Bolivia 125 2.44 Moldova 58 4.72 Sierra Leone 126 3.66 Turkey 58 3.11 Mozambique 126 2.44 Tajikistan 59 4.70 Mauritania 128 3.61 Russian Federation 59 3.10 Nepal 127 2.34 Mongolia 61 4.69 Lao PDR 129 3.60 Mexico 60 3.06 Congo, Democratic Rep. 128 2.33 Sri Lanka 62 4.68 Bolivia 130 3.56 Costa Rica 61 3.04 Zimbabwe 129 2.33 Zambia 63 4.67 Yemen 132 3.13 Macedonia, FYR 62 3.02 Malawi 130 2.32 Italy 66 4.66 Cambodia 131 3.24 Brazil 63 3.02 Sierra Leone 131 2.27 Pakistan 65 4.66 Zimbabwe 118 3.85 Guatemala 64 3.00 Burundi 132 2.20 Malta 64 4.66 Malawi 133 3.08 Philippines 65 3.00 Yemen 133 2.15 Costa Rica 67 4.65 2.99 4.70 4.64 2.70 2.41 66 60 68 134 135 Romania Barbados China Venezuela Chad Sri Lanka Armenia 67 68 2.98 2.96 Chad Mauritania 134 135 2.12 1.96 The Global Competitiveness Report 2016–2017 | 61
78. 1 .2: The Updated Global Competitiveness Index NOTES 1 For a concise definition of the Fourth Industrial Revolution, see Box 1 of Chapter 1.1; see also Box 1 in this chapter. For a fuller description, see Schwab 2016. 2 IFR 2016. 3 Juniper Research 2016. 4 eMarketer 2016. 5 Roland Berger Strategy Consultants 2012. 6 For the full literature review, see Sala-i-Martín et al. 2015b. 7 Technically, the index score will be calculated as a simple average of the 12 pillars. The four subindex’s scores will be used for analysis but will not enter directly into the overall GCI score calculation. The organization of the pillars into four subindexes reflects therefore a conceptual representation of main areas of competitiveness, but does not determine the ranking. 8 World Economic Forum 2016b. 9 Johansson 2004. 10 Please send your feedback to gcp@weforum.org. REFERENCES OECD (Organisation for Economic Co-operation and Development). 2013. The People’s Republic of China – Avoiding the MiddleIncome Trap: Policies for Sustained and Inclusive Growth. Better Policies. Paris: OECD Publishing. http://dx.doi. org/10.1787/9789264207974-en. OECD/ECLAC/CAF (Organisation for Economic Co-operation and Development/Economic Commission for Latin America and the Caribbean/Coporación Andina de Fomento). 2015. Latin American Economic Outlook 2016: Towards a New Partnership with China. Paris: OECD Publishing. http://dx.doi.org/10.1787/9789264246218en. Ridley, M. 2015. The Evolution of Everything: How New Ideas Emerge. New York: Harper Collins. Roland Berger Strategy Consultants. 2012. Mastering Product Complexity. Roubini, N. 2016. “Populists and Productivity.” Project Syndicate, June 3. Available at https://www.project-syndicate.org/commentary/ productivity-paradox-explanations-populism-by-nourielroubini-2016-06. Sala-i-Martín, X., R. Crotti, A. Di Battista, M. Drzeniek Hanouz, C. Galvan, T. Geiger, and G. Marti. 2015a. “Reaching beyond the New Normal: Findings from the Global Competitiveness Index 2015–2016.” In The Global Competitiveness Report 2015–2016. Geneva: World Economic Forum. 3–41. Aiyar, S., R. Duval, D. Puy, Y. Wu, and L. Zhang. 2013. “Growth Slowdowns and the Middle-Income Trap.” IMF Working Paper No. WP/13/71. Washington, DC: International Monetary Fund. Available at www.imf.org/external/pubs/ft/wp/2013/wp1371.pdf. ———. 2015b. “Drivers of Long-Run Prosperity: Laying the Foundations for an Updated Global Competitiveness Index. In The Global Competitiveness Report 2015–2016. Geneva: World Economic Forum. 43–75. Barro, J. and X. Sala-i-Martín. 1997. “Technological Diffusion, Convergence, and Growth.” Journal of Economic Growth 2 (1): 1–26. Schwab, K. 2016. The Fourth industrial Revolution. Geneva: World Economic Forum. Byrne, D. M., J. G. Fernald, M. B. Reinsdorf. 2016. “Does the United States Have a Productivity Slowdown or a Measurement Problem?” Brookings Papers on Economic Activity Spring 2016: 109–82. Eichengreen, B., D. Park, and K. Shin. 2011. “When Fast Growing Economies Slow Down: International Evidence and Implications for China.” NBER Working Paper No. 16919. Cambridge, MA: National Bureau of Economic Research. Available at www.nber.org/papers/ w16919.pdf eMarketer. 2016. Worldwide Retail Ecommerce Sales: Emarketer’s Updated Estimates and Forecast through 2019. eMarketer Inc. Available at http://www.emarketer.com/public_media/docs/ eMarketer_eTailWest2016_Worldwide_ECommerce_Report.pdf. Felipe, J., A. Abdon, and U. Kumar. 2012. “Tracking the MiddleIncome Trap: What Is It, Who Is in It, and Why?” Levy Economics Institute Working Paper No. 715. Annandale-on-Hudson, NY: Levy Economics Institute of Bard College. Available at www. levyinstitute.org/pubs/wp_715.pdf. Fisher, R. A. 1936. “The Use of Multiple Measurements in Taxonomic Problems.” Annals of Eugenics 7 (2): 179–188. doi:10.1111/j.1469-1809.1936.tb02137.x. Johansson, F. 2004. The Medici Effect: Breakthrough Insights at the Intersection of Ideas, Concepts, and Cultures. Cambridge, MA: Harvard Business School Press. Juniper Research. 2016. “ ‘Internet of Things’ Connected Devices to almost Triple to over 38 Billion Units by 2020.” Press Release, 28 July. Available at http://www.juniperresearch.com/press/pressreleases/iot-connected-devices-to-triple-to-38-bn-by-2020. Gordon, R. J. 2012. “Is U.S. Economic Growth Over? Faltering Innovation Confronts the Six Headwinds.” NBER Working Paper No. 18315. Cambridge, MA: National Bureau of Economic Research. IFR (International Federation of Robotics). 2015. World Robotics: Industrial Robots 2015. Frankfurt: International Federation of Robotics. Available at http://www.ifr.org/industrial-robots/statistics/ 62 | The Global Competitiveness Report 2016–2017 Solow, R. M. 1956. “A Contribution to the Theory of Economic Growth.” Quarterly Journal of Economics 70 (1): 65–94. doi:10.2307/1884513. ———. 1957. “Technical Change and the Aggregate Production Function.” Review of Economics and Statistics 39 (3): 312–20. doi:10.2307/1926047. World Economic Forum. 2016a. The Global Information Technology Report 2016. Geneva: World Economic Forum. ———. 2016b. The Future of Jobs Report. Geneva: World Economic Forum. Zhuang, J., P. Vandenberg, and Y. Huang. 2012. Growing beyond the Low-Cost Advantage: How the People’s Republic of China Can Avoid the Middle-Income Trap. Asian Development Bank, Mandaluyong City, Philippines: Asian Development Bank. Available at https://www.adb.org/sites/default/files/publication/30036/ growing-beyond-prc-avoid-middle-income-trap.pdf.
79. 1 .2: The Updated Global Competitiveness Index Appendix: Updated Global Competitiveness Index Structure The following table provides sources and descriptions for all the indicators composing the updated Global Competitiveness Index methodology to date. Although the World Economic Forum’s effort to refine the measurement of competitiveness is ongoing, the indicators below represent the latest stage in benchmarking the concepts described in the chapter. Below is a description of each indicator or, in the case of Executive Opinion Survey data, the full question and associated answers. Title Data type† Indicator description Sources Most frequent occurrence 1st pillar: Institutions Property rights EOS In your country, to what extent are property rights, including financial assets, protected? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Intellectual property protection EOS In your country, to what extent is intellectual property protected? [1 = not at all; 7 = To a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Business costs of crime and violence EOS In your country, to what extent does the incidence of crime and violence impose costs on businesses? [1 = to a great extent, imposes huge costs; 7 = no costs at all] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Homicide rate Non-EOS Number of homicides per 100,000 population. United Nations Office on Drugs and Crime (UNODC) Statistics, https://data. unodc.org/ 2014 Organized crime EOS In your country, to what extent does organized crime (mafia-oriented racketeering, extortion) impose costs on businesses? [1 = to a great extent, imposes huge costs; 7 = no costs at all] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Terrorism incidence Non-EOS Index (1–7 best) averaging the number of terrorismrelated casualties (injuries plus fatalities) and the number of terrorist attacks, each normalized separately. World Economic Forum’s calculations, based on data from the National Consortium for the Study of Terrorism and Responses to Terrorism (START) (2015), Global Terrorism Database http://www.start.umd.edu/ gtd 2015 Reliability of police services EOS In your country, to what extent can police services be relied upon to enforce law and order? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Irregular payments in exports and imports EOS In your country, how common is it for companies to make undocumented extra payments or bribes in connection with the imports and exports [1 = very common; 7 = never occurs] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Irregular payments in public utilities EOS In your country, how common is it for companies to make undocumented extra payments or bribes in connection with the public utilities (e.g., telephone, electricity) [1 = very common; 7 = never occurs] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average † EOS = Executive Opinion Survey; Non-EOS = other sources. The Global Competitiveness Report 2016–2017 | 63
80. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Irregular payments in tax collection EOS In your country, how common is it for companies to make undocumented extra payments or bribes in connection with tax payments [1 = very common; 7 = never occurs] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Irregular payments in public contracts EOS In your country, how common is it for companies to make undocumented extra payments or bribes in connection with awarding of public contracts and licenses [1 = very common; 7 = never occurs] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Irregular payments in judicial decisions EOS In your country, how common is it for companies to make undocumented extra payments or bribes in connection with obtaining favorable judicial decisions [1 = very common; 7 = never occurs] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Diversion of public funds EOS In your country, how common is illegal diversion of public funds to companies, individuals or groups? [1 = very commonly occurs; 7 = never occurs] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Favoritism in decisions of government officials EOS In your country, to what extent do government officials show favoritism to well-connected firms and individuals when deciding upon policies and contracts? [1 = show favoritism to a great extent; 7 = do not show favoritism at all] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Open budget survey Non-EOS Index (0–100) of central government budget transparency. It is calculated by averaging the score of 109 questions assessing the ease of access to and timeliness of information on eight key budget documents. The International Budget Partnership, http://survey. internationalbudget. org/#timeline 2015 Judicial independence EOS In your country, how independent is the judicial system from influences of the government, individuals, or companies? [1 = not independent at all; 7 = entirely independent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Efficiency of legal framework in challenging regulations EOS 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] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average World Press Freedom Non-EOS Index (0–100 worst) measures media independence, the quality of the infrastructure that supports the production of news, and information and acts of violence against journalists. It is based on two instruments: a database of the level of abuses and violence against journalist and media; and an expert opinion survey on pluralism, media independence, self-censorship, transparency, and infrastructure in each country. Reporters without Borders, https://rsf.org/en/ranking 2016 Burden of government regulation EOS In your country, how burdensome is it for companies to comply with public administration’s requirements (e.g., permits, regulations, reporting)? [1 = extremely burdensome; 7 = not burdensome at all] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Government online Service Non-EOS Index (0–1 best) that measures the scope and quality of government’s online services. United Nations Department of Economic and Social Affairs (UNDESA), UN E-Government Development Index, https:// publicadministration.un.org/ egovkb/en-us/Data-Center 2014 Efficiency of legal framework in settling disputes EOS In your country, how efficient are the legal and judicial systems for companies in settling disputes? [1 = extremely inefficient; 7 = extremely efficient] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average † EOS = Executive Opinion Survey; Non-EOS = other sources. 64 | The Global Competitiveness Report 2016–2017 Most frequent occurrence
81. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Efficiency in provision of public goods and services EOS In your country, how efficient is the government in providing public goods and services? [1 = extremely inefficient; 7 = extremely efficient] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Government ensuring policy stability EOS In your country, to what extent does the government ensure a stable policy environment for doing business? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Workers’ rights Non-EOS Index (0–97 worst) measures the level of protection of internationally recognized core labor standards including civil rights, the right to bargain collectively, the right to strike, the right to associate freely, and access to due process rights. It does not take into account any element of firing regulations. International Trade Union Confederation, Global Rights Index 2016, http:// survey.ituc-csi.org/ITUCGlobal-Rights-Index.html 2015 Ethical behavior of firms EOS In your country, how do 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] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Strength of auditing and accounting standards EOS In your country, how strong are financial auditing and reporting standards? [1 = extremely weak; 7 = extremely strong] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Efficacy of corporate boards EOS In your country, to what extent is management accountable to investors and boards of directors? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Extent of conflict of interest regulation Non-EOS Index (0–10 best) that measures the level of protection of shareholders against directors’ misuse of corporate assets for personal gain. It is an average of three sub-indexes: an index of transparency of transactions, an index of director liability, and an index of shareholders’ ability to sue officers and directors for misconduct. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Extent of shareholder governance Non-EOS Index (0–10 best) that measures the level of shareholders’ right in corporate boards. It is an average of three sub-indexes: an index of the role of shareholders in major corporate decisions, an index of the extent of safeguards against undue board control and entrenchment, and an index of corporate transparency. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Most frequent occurrence 2nd pillar: Infrastructure and connectivity Road straightness Non-EOS Average of two distance measures: the first measure is the ratio between the length of the street to connect the 10 largest cities in a country and their crow-fly distances. The second measure is the ratio between the length of the street to connect the most north, south, east, and west points of a country and their crow-fly distances. World Economic Forum’s calculations, based on Open Street Maps and Google Directions data 2015 Road speed Non-EOS Average of two speed measures: the average speed to connect the 10 largest cities in a country in a non-optimized itinerary, and the average speed to connect the most north, south, east, and west points of a country. World Economic Forum’s calculations, based on Open Street Maps and Google Directions data 2015 Quality of road infrastructure EOS In your country, how is the quality (extensiveness and condition) of transport infrastructure for roads [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average † EOS = Executive Opinion Survey; Non-EOS = other sources. The Global Competitiveness Report 2016–2017 | 65
82. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Efficiency of ground transportation EOS In your country, how efficient (i.e., frequency, punctuality, speed, price) are the following transport services? a. Ground transportation (buses, subways, taxis) [1 = extremely inefficient—among the worst in the world; 7 = extremely efficient— among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Railroad density Non-EOS Kilometers of railroad per 100 square kilometers of land. World Bank, World Development Indicators (WDI), http://data. worldbank.org/ 2014 Quality of railroad infrastructure EOS In your country, how is the quality (extensiveness and condition) of transport infrastructure for railroads [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient— among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Efficiency of train services EOS In your country, how efficient (i.e., frequency, punctuality, speed, price) are the train services [1 = extremely inefficient—among the worst in the world; 7 = extremely efficient—among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Air connectivity Non-EOS Index that measures air connectivity, capturing the full range of interactions among all air transport network nodes, even when there is no direct flight connection between them. World Bank, http:// documents.worldbank. org/curated/ en/2011/06/14491791/ air-connectivity-indexmeasuring-integrationglobal-air-transport-network 2007 Quality of airport infrastructure EOS In your country, how is the quality (extensiveness and condition) of air transport [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Efficiency of air transport services EOS In your country, how efficient (i.e., frequency, punctuality, speed, price) are air transport services [1 = extremely inefficient—among the worst in the world; 7 = extremely efficient—among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Liner shipping connectivity Non-EOS Index (0–100 best) of how well countries are connected to global shipping networks. It is based on five components of the maritime transport sector: the number of ships, their container-carrying capacity, the maximum vessel size, the number of services, and the number of companies that deploy container ships in a country’s ports. United Nations Conference on Trade and Development (UNCTAD) Statistics, http:// unctadstat.unctad.org/ wds/TableViewer/tableView. aspx?ReportId=92 2016 Quality of seaport infrastructure EOS In your country, how is the quality (extensiveness and condition) of seaports (for landlocked countries, assess access to seaports) [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Efficiency of seaport services EOS In your country, how efficient (i.e., frequency, punctuality, speed, price) are seaport services (ferries, boats) (for landlocked countries, assess access to seaport services) [1 = extremely inefficient—among the worst in the world; 7 = extremely efficient—among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Electrification rate Non-EOS Share of population with access to electricity. World Bank, World Development Indicators (WDI), http://data. worldbank.org/ 2012 Electric power losses Non-EOS Electric power transmission and distribution losses as a percentage of output. Electric power transmission and distribution losses include losses in transmission between sources of supply and points of distribution and in the distribution to consumers, including pilferage. World Bank, World Development Indicators (WDI), http://data. worldbank.org/ 2013 † EOS = Executive Opinion Survey; Non-EOS = other sources. 66 | The Global Competitiveness Report 2016–2017 Most frequent occurrence
83. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Quality of electricity supply EOS In your country, how reliable is the electricity supply (lack of interruptions and lack of voltage fluctuations)? [1 = extremely unreliable; 7 = extremely reliable] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Reliability of water supply EOS In your country, how reliable is the water supply (lack of interruptions and flow fluctuations)? [1 = extremely unreliable; 7 = extremely reliable] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Access to improved drinking water Non-EOS Percentage of the population using an improved drinking water source (i.e., piped water or protected wells and springs). World Bank, World Development Indicators (WDI), http://data. worldbank.org/ 2015 Mobile network coverage rate Non-EOS Share of the population covered by a mobile-cellular network. International Telecommunication Union (ITU), World Telecommunication/ICT Indicators Database 2016 (20th edition/June 2016) 2015 Most frequent occurrence 3rd pillar: Macroeconomic context Debt coverage ratio Non-EOS General government gross debt as a percentage of general government revenue World Economic Forum’s calculations, based on International Monetary Fund (IMF), World Economic Outlook (April 2016 edition), http://www.imf.org/weo 2015 Government budget balance Non-EOS Average of general government budget balance over 10 years, calculated as the general government revenue minus total expenditure, as a percentage of GDP. International Monetary Fund (IMF), World Economic Outlook (April 2016 edition), http://www.imf.org/weo 2006–2015 average Government debt in foreign currency Non-EOS Gross general government debt borrowed in foreign currency as a percentage of gross general government debt. World Bank, Quarterly Public Sector Debt (QPSD) database; and International Monetary Fund (IMF), World Economic Outlook, http:// data.worldbank.org/datacatalog/quarterly-publicsector-debt and http:// www.imf.org/weo 2015 Government external debt Non-EOS Gross general government debt owned by foreign creditors in local or foreign currency as a percentage of gross general government debt. World Bank, Quarterly Public Sector Debt (QPSD) database; and International Monetary Fund (IMF), World Economic Outlook, http:// data.worldbank.org/datacatalog/quarterly-publicsector-debt and http:// www.imf.org/weo 2015 Gross national savings Non-EOS Gross national savings as a percentage of GDP. Gross national savings is defined as gross disposable income less final consumption expenditure after taking account of an adjustment for pension funds. For many countries, the estimates of national savings are built up from national accounts data on gross domestic investment and from balance of payments–based data on net foreign investment. International Monetary Fund (IMF), World Economic Outlook (April 2016 edition), http://www.imf.org/weo 2015 Inflation Non-EOS Annual percent change in the consumer price index (year average) International Monetary Fund (IMF), World Economic Outlook (April 2016 edition), http://www.imf.org/weo 2015 † EOS = Executive Opinion Survey; Non-EOS = other sources. The Global Competitiveness Report 2016–2017 | 67
84. 1 .2: The Updated Global Competitiveness Index Data type† Indicator description Sources DALYs Non-EOS DALY (disability-adjusted life year) measures the number of “healthy” life years lost in the population aged between 15 and 69 years old due to diseases or injuries. It is the gap between current health status and an ideal health situation where the entire population lives to an advanced age, free of disease and disability. A DALY is calculated for each of a large set of diseases or health conditions as the sum of the years of life lost (YLL) due to premature mortality in the population and years lost due to disability (YLD) for people living with that health condition or its consequences. Institute for Health Metrics and Evaluation (IHME) 2013 Infant mortality Non-EOS Number of infants dying before reaching one year of age per 1,000 live births in a given year. World Bank, World Development Index, http:// data.worldbank.org/ 2015 Business cost of health-related absence EOS In your country, to what extent does health-related absence cost on businesses (consider both communicable and non-communicable diseases)? [1 = to a great extent; 7 = not at all] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Title Most frequent occurrence 4th pillar: Health 5th pillar: Education and skills A. Skills of the current workforce Mean years of schooling Non-EOS Average number of completed years of education of a country’s population aged 25 years and older. The value is converted from education attainment levels using official durations of each level; it excludes years spent repeating individual grades. UNESCO Institute for Statistics, http://data.uis. unesco.org/ 2010 Extent of staff training EOS In your country, to what extent do companies invest in training and employee development? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Quality of vocational training EOS In your country, how do you assess the quality of vocational training? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Skillset of secondaryeducation graduates EOS In your country, to what extent do graduating students from secondary education possess the skills needed by businesses? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Skillset of university graduates EOS In your country, to what extent do graduating students from university possess the skills needed by businesses? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average B. Skills of the future workforce School life expectancy Non-EOS Total number of years of schooling (primary through tertiary) that a child can expect to receive, assuming that the probability of his or her being enrolled in school at any particular future age is equal to the current enrollment ratio at that age. UNESCO Institute for Statistics, http://data.uis. unesco.org/ 2014 Quality of primary education EOS In your country, how do you assess the quality of primary schools [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Internet use in schools EOS In your country, to what extent is the Internet used in schools for learning purposes? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Critical thinking in teaching EOS In your country, how do you assess the style of teaching? [1 = frontal, teacher based, and focused on memorizing; 7 = encourages creative and critical individual thinking] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average † EOS = Executive Opinion Survey; Non-EOS = other sources. 68 | The Global Competitiveness Report 2016–2017
85. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Most frequent occurrence 6th pillar: Product market efficiency Extent of market dominance EOS In your country, how do you characterize corporate activity? [1 = dominated by a few business groups; 7 = spread among many firms] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Effectiveness of antitrust policy EOS In your country, how effective are anti-monopoly policies at ensuring fair competition? [1 = not effective at all; 7 = extremely effective] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Competition in professional services EOS In your country, how competitive are the provisions of professional services (legal services, accounting, engineering, etc.) [1 = not at all competitive; 7 = extremely competitive] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Competition in retail services EOS In your country, how competitive are the provision of the retail services [1 = not at all competitive; 7 = extremely competitive] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Competition in network services EOS In your country, how competitive are the provisions of the network sector services (telecommunications, utilities, postal, transport, etc.) [1 = not at all competitive; 7 = extremely competitive] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Prevalence of non-tariff barriers EOS 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] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Trade tariffs Non-EOS Trade-weighted average applied tariff rate. An applied tariff is a customs duty that is levied on imports of merchandise goods, 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 determined for each of the reference groups defined by the International Trade Centre (ITC). They are calculated on the basis of the trade patterns (volume of imports of each product category) of the importing country’s reference group. International Trade Centre, Trade Competitiveness Map database, http:// legacy.intracen.org/appli1/ tradecom/TPIC.aspx 2015 Complexity of tariffs Non-EOS Index (1–7 best) that measures the complexity of a country’s tariff regime based on three criteria: tariff dispersion, the prevalence of tariff peak and specific tariffs, and the number of distinct tariffs. World Economic Forum, The Global Enabling Trade Report 2014, based on data from UNCTAD and WTO 2013 Burden of customs procedures EOS In your country, how efficient are customs procedures (related to the entry and exit of merchandise)? [1 = extremely inefficient; 7 = extremely efficient] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Service trade restrictiveness Non-EOS Index (0–100 worst) assessing the overall openness of the service sector of a country for five major services sectors (financial services, telecommunications, retail distribution, transportation, professional services) and three modes of supply (cross-border supply of services, supply of services through commercial presence (or FDI), and temporary presence of natural persons) World Bank, Service Trade Restrictiveness Index Database, http://iresearch. worldbank.org/servicetrade/ 2011 Total non-labor tax rate Non-EOS Sum of profit tax and other taxes (percent of profits) paid by businesses World Economic Forum’s calculations, based on World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 † EOS = Executive Opinion Survey; Non-EOS = other sources. The Global Competitiveness Report 2016–2017 | 69
86. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Distortive effect on competition of taxes and subsidies EOS In your country, to what extent do fiscal measures (subsidies, tax breaks, etc.) distort competition? [1 = distort competition to a great extent; 7 = do not distort competition at all] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Most frequent occurrence 7th pillar: Labor market functioning Redundancy costs Non-EOS Cost (in weekly wages) of advance notice requirements, severance payments, and penalties due when terminating a redundant worker. World Bank/International Finance Corporation; Doing Business Database (retrieved June 07 2016); www.doingbusiness.org 2015 Hiring and firing practices EOS In your country, to what extent do regulations allow flexible hiring and firing of workers? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Cooperation in labor-employer relations EOS In your country, how do you characterize laboremployer relations? [1 = generally confrontational; 7 = generally cooperative] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Flexibility of wage determination EOS In your country, how are wages generally set? [1 = by a centralized bargaining process; 7 = by each individual company] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Active labor policies EOS In your country, to what extent do labor market policies help unemployed people to reskill and find new employment (including skills matching, retraining, etc.)? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Ease of finding skilled employees EOS In your country, to what extent can companies find people with the skills required to fill their vacancies? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Ease of hiring foreign labor EOS In your country, how restrictive are regulations related to the hiring of foreign labor? [1 = highly restrictive; 7 = not restrictive at all] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Internal labor mobility EOS In your country, to what extent do people move to other parts of the country for professional reasons? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Reliance of professional management EOS In your country, who holds senior management positions in companies? [1 = usually relatives or friends without regard to merit; 7 = mostly professional managers chosen for merit and qualifications] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Pay and productivity EOS In your country, to what extent is pay related to employee productivity? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Female wage and salaried workers Non-EOS Percentage of women aged 15–64 participating in the labor force as wage and salaried workers divided by the percentage of men aged 15–64 participating in the labor force as wage and salaried workers. World Economic Forum’s calculations, based on International Labor Organization, www.ilostat. org 2013 Total tax on labor Non-EOS The amount of taxes and mandatory contributions on labor paid by the business as a percentage of commercial profits. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 † EOS = Executive Opinion Survey; Non-EOS = other sources. 70 | The Global Competitiveness Report 2016–2017
87. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Most frequent occurrence 8th pillar: Financial market development Domestic credit to private sector Non-EOS Ratio of financial resources provided to the private sector by financial corporations to GDP. Financial resources are loans, purchases of non-equity securities, and trade credits and other accounts receivable that establish a claim for repayment. It is a measure of depth of the credit market. World Bank, World Development Indicators (WDI), http://data. worldbank.org/ 2015 Financing of SMEs EOS In your country, to what extent can small- and medium-sized enterprises (SMEs) access finance they need for their business operations through the financial sector? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Venture capital availability EOS In your country, how easy is it for start-up entrepreneurs with innovative but risky projects to obtain equity funding? [1 = extremely difficult; 7 = extremely easy] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Corporate bond issuance volume Non-EOS Ratio of new corporate bond issuance as a percentage of GDP. This takes into account only bonds issued by private entities, excluding finance, holding companies, and insurance companies. It is a measure of the depth of the bond market. World Bank, Global Financial Development Database, http://www. worldbank.org/en/ publication/gfdr/data/globalfinancial-developmentdatabase 2014 Financing through the equity market EOS In your country, to what extent can companies raise money by issuing shares and/or bonds on the capital market? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Market capitalization of listed companies Non-EOS Total value of listed companies to GDP. The total value is calculated as the price of all listed domestic companies multiplied by the number of their outstanding shares. It is a measure of the depth of the equity market. World Bank, World Development Indicators (WDI), http://data. worldbank.org/ 2015 Soundness of banks EOS In your country, how do you assess the soundness of banks? [1 = extremely low—banks may require recapitalization; 7 = extremely high—banks are generally healthy with sound balance sheets] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Bank nonperforming loans Non-EOS Value of nonperforming loans divided by the total value of the loan portfolio (including nonperforming loans before the deduction of specific loanloss provisions). It measures one aspect of the soundness of the banking sector and credit crunch. World Bank, World Development Indicators (WDI), http://data. worldbank.org/ 2015 Credit gap Non-EOS Difference between the most recent domestic credit to private sector (as a share to GDP) and its 20-year trend. It is a measure of the build-up of financial vulnerabilities. World Economic Forum’s calculations, based on World Bank, World Development Indicators, http://data.worldbank.org/ 2015 Regulation of security exchanges EOS In your country, to what extent do regulators ensure the stability of the financial sector? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Share of asset held by top 5 banks Non-EOS Assets of the five largest banks as a share of total assets of commercial banks. Assets include total earning assets, cash and due from banks, foreclosed real estate, fixed assets, goodwill, other intangibles, current tax assets, deferred tax, discontinued operations, and other assets. It is a measure of concentration of the banking sector. World Bank, Global Financial Development Database, http://www. worldbank.org/en/ publication/gfdr/data/globalfinancial-developmentdatabase 2014 † EOS = Executive Opinion Survey; Non-EOS = other sources. The Global Competitiveness Report 2016–2017 | 71
88. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Banks’ liquid assets ratio Non-EOS Ratio of the value of liquid assets of banks to their short-term funding plus total deposits. Liquid assets are cash, trading securities at fair value through income, loans and advances to banks, reverse repos and cash collaterals. Deposits and short-term funding includes total customer deposits (current, savings, and term) and short-term borrowing (money market instruments, certificates of deposit, and other deposits). It is a measure of the liquidity of the banking sector. World Bank, Global Financial Development Database, http://www. worldbank.org/en/ publication/gfdr/data/globalfinancial-developmentdatabase 2014 Banks’ regulatory capital ratio Non-EOS Ratio of total regulatory capital of banks to their assets, weighted according to the risk of those assets. It measures one aspect of banks’ solidity. World Bank, Global Financial Development Database, http://www. worldbank.org/en/ publication/gfdr/data/globalfinancial-developmentdatabase 2014 Share of adults with a bank account Non-EOS Percentage of population 15 year old or older who have an account. It is a measure one aspect of individuals’ access to finance. World Bank, Global Findex, http://databank. worldbank.org/data/reports. aspx?source=1228# 2014 Commercial bank branches Non-EOS Number of commercial bank branches per 100,000 adults. Commercial bank branches are retail locations of resident commercial banks and other resident banks that function as commercial banks that provide financial services to customers and are physically separated from the main office but not organized as legally separated subsidiaries. It measures an aspect of access to finance complementary to number of adults with a bank account. World Bank, World Development Indicators (WDI), http://data. worldbank.org/ 2014 Depth of credit information Non-EOS Index (0–8 best) measuring the coverage, scope, and accessibility of credit information. It assesses the rules and practices to access information available in public credit registry or a private credit bureau. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Strength of legal rights Non-EOS Index (0–12 best) measuring the protection of borrowers’ and lenders’ rights through collateral and bankruptcy laws. It is a measure of ease of lending. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Public credit registry coverage Non-EOS Number of individuals and firms listed in a public credit registry with information on their borrowing history from the past five years as a percentage of the total adult population of 15 years old or older. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Private credit bureau coverage Non-EOS Number of individuals and firms listed by a private credit bureau with information on their borrowing history from the past five years as a percentage of the total adult population of 15 years old or older. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Ratio of trade of machinery and technology to total trade. The numerator is the sum of imports and exports relative to codes 8311, 84, 85, 90, using HS 2012 classification. The denominator is the sum of imports and exports. It is a proxy of technology adoption. World Economic Forum’s calculations, based on COMTRADE 2012–2015 2012–2015 average Most frequent occurrence 9th pillar Technology adoption Share of machinery and technology products in trade Non-EOS † EOS = Executive Opinion Survey; Non-EOS = other sources. 72 | The Global Competitiveness Report 2016–2017
89. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Firm-level technology adoption EOS In your country, to what extent do businesses adopt the latest technologies? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average FDI and technology transfer EOS To what extent does foreign direct investment (FDI) bring new technology into your country? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average FDI greenfield investment Non-EOS Average over the five most recent available years of the absolute value in US dollars of greenfield foreign direct investments received by each country. United Nations Conference on Trade and Development (UNCTAD), World Investment Report 2016, http://unctad.org/en/ Pages/DIAE/World%20 Investment%20Report/ Annex-Tables.aspx 2011–2015 average ICT use for businessto-business transactions EOS In your country, to what extent do businesses use ICTs for transactions with other businesses? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Internet use for businessto-consumer transactions EOS In your country, to what extent do businesses use the Internet for selling their goods and services to consumers? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Mobile-cellular telephone subscriptions Non-EOS Number of mobile-cellular telephone subscriptions per 100 population. It includes postpaid subscriptions, active prepaid accounts (i.e., that have been active during the past three months), and all mobile-cellular subscriptions that offer voice communications. International Telecommunication Union (ITU), World Telecommunication/ICT Indicators Database 2016 (20th edition/June 2016) 2015 Fixedbroadband Internet subscriptions Non-EOS Number of fixed-broadband Internet subscriptions per 100 population. It refers to subscriptions for high-speed access to the public Internet (a TCP/IP connection). It includes cable modem, DSL, fiber, and other fixed (wired)-broadband technologies— such as Ethernet LAN, and broadband over powerline (BPL) communications. International Telecommunication Union (ITU), World Telecommunication/ICT Indicators Database 2016 (20th edition/June 2016) 2015 Mobilebroadband subscriptions Non-EOS Number of active mobile-broadband subscriptions per 100 population. It includes standard mobilebroadband subscriptions and dedicated mobilebroadband data subscriptions to the public Internet International Telecommunication Union (ITU), World Telecommunication/ICT Indicators Database 2016 (20th edition/June 2016) 2015 Fiber Internet subscriptions Non-EOS Number of Internet subscriptions using fiber-tothe-home or fiber-to-the-building; at downstream speeds equal to or greater than 256 kbit/s per 100 population. It includes subscriptions where fiber goes directly to the subscriber’s premises or fiber-to-the-building subscriptions that terminate no more than 2 meters from an external wall of the building. Fiber-to-the-cabinet and fiber-to-the-node are excluded. International Telecommunication Union (ITU), World Telecommunication/ICT Indicators Database 2016 (20th edition/June 2016) 2014 Size of domestic and foreign markets measured as an expenditure-weighted average of market access including own domestic demand. Estimated based on the results of a gravity equation. World Economic Forum’s calculations, based on the United Nations Commodity Trade Statistics Database (UN COMTRADE) and CEEPI gravity dataset 2015 Most frequent occurrence 10th pillar: Market size Real market potential Non-EOS † EOS = Executive Opinion Survey; Non-EOS = other sources. The Global Competitiveness Report 2016–2017 | 73
90. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Most frequent occurrence 11th pillar: Business dynamism Cost required to start a business Non-EOS Ratio of total cost to start a business to the economy’s income per capita. Total cost includes all official fees and fees for legal or professional services if such services are required by law or commonly used in practice. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Time required to start a business Non-EOS Number of days required to start a business. This is the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Cost of bankruptcy proceedings Non-EOS The average cost of bankruptcy proceedings as a percentage of the estate’s value. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Strength of insolvency framework Non-EOS Index (0–16 best) measuring the adequacy and integrity of the legal framework applicable to liquidation and reorganization proceedings. This is based on four other indexes: the Commencement of proceedings index, the Management of debtor’s assets index, the Reorganization proceedings index, and the Creditor participation index. World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency, http://www. doingbusiness.org/ 2015 Attitudes toward entrepreneurial risk EOS In your country, to what extent do people have an appetite for entrepreneurial risk? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Growth of innovative companies EOS In your country, to what extent do new companies with innovative ideas grow rapidly? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Willingness to delegate authority EOS In your country, to what extent does senior management delegate authority to subordinates? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average 12th pillar: Innovation capacity Internet users Non-EOS Percentage of individuals who used the Internet from any location and for any purpose, irrespective of the device and network used, in the last three months. International Telecommunication Union (ITU), World Telecommunication/ICT Indicators Database 2016 (20th edition/June 2016) 2015 Stage of clusters development EOS 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] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Collaboration inside company EOS In your country, to what extent do people collaborate and share ideas within a company? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Collaboration between companies EOS In your country, to what extent do companies collaborate in sharing ideas and innovating? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average † EOS = Executive Opinion Survey; Non-EOS = other sources. 74 | The Global Competitiveness Report 2016–2017
91. 1 .2: The Updated Global Competitiveness Index Title Data type† Indicator description Sources Universityindustry collaboration in R&D EOS 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] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average In your country, to what extent do companies encourage employees to generate new ideas? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Encouragement EOS of idea generation Most frequent occurrence Exposure to new ideas EOS In your country, to what extent are people exposed to ideas from outside their environment/community? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average ICTs and business model creations EOS In your country, to what extent do ICTs enable new business models? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Companies embracing disruptive ideas EOS In your country, to what extent do companies embrace risky or disruptive business ideas? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Number of scientific and technical articles Non-EOS Number the scientific articles per 1,000 population. This takes into account scientific and engineering articles published in physics, biology, chemistry, mathematics, clinical medicine, biomedical research, engineering and technology, and earth and space sciences. World Bank, World Development Indicators (WDI); and International Monetary Fund (IMF), World Economic Outlook, http:// data.worldbank.org/ and http://imf.org/weo 2013 Patent application Non-EOS Number of applications filed under the Patent Cooperation Treaty (PCT) per million population Organization for Economic Co-operation and Development (OECD), patent database, situation as of July 2016); for population, International Monetary Fund (IMF), World Economic Outlook Database (April 2016 edition); World Economic Forum calculation 2012–2013 average Company spending on R&D EOS In your country, to what extent do companies invest in research and development (R&D)? [1 = do not invest at all in R&D; 7 = invest heavily in R&D] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Buyer sophistication EOS In your country, on what basis do buyers make purchasing decisions? [1 = based solely on the lowest price; 7 = based on sophisticated performance attributes] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average International brands EOS In your country, how successful are domestic companies at building international brands? [1 = not successful at all; 7 = extremely successful] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average Trademark application Non-EOS Number of international trademark applications issued directly or through the Madrid System by country of origin per 1,000 population. World Intellectual Property Organization (WIPO), Statistics Database; and International Monetary Fund (IMF), World Economic Outlook, http://www.wipo. int/portal/en/ and http:// www.imf.org/weo 2014 Capacity to commercialize new products EOS In your country, to what extent do companies turn ideas into commercially successful new products, services, or business models? [1 = not at all; 7 = to a great extent] World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report. 2015–2016 weighted average † EOS = Executive Opinion Survey; Non-EOS = other sources. The Global Competitiveness Report 2016–2017 | 75
93. CHAPTER 1 .3 The Executive Opinion Survey: The Voice of the Business Community CIARA BROWNE ATTILIO DI BATTISTA THIERRY GEIGER STÉPHANIE VERIN World Economic Forum For almost 40 years, The Global Competitiveness Report has been used by policymakers, business executives, and academics as a tool that contributes a valuable portrait of an economy’s productivity and its ability to achieve sustained levels of prosperity and growth. Central to the Report’s index, the Executive Opinion Survey (the Survey) is the longest-running and most extensive survey of its kind, capturing the opinions of business leaders around the world on a broad range of topics for which statistics are unreliable, outdated, or nonexistent for many countries. Thus the Survey aims to measure critical concepts—such as appetite for entrepreneurship, the extent of the skills gap, and the incidence of corruption—to complement the traditional sources of statistics and provide a more accurate assessment of the business environment and, more broadly, of the many drivers of economic development. The indicators derived from the Survey are used in the calculation of the Global Competitiveness Index (GCI) as well as a number of other World Economic Forum indexes, such as the Networked Readiness Index, the Enabling Trade Index, the Travel & Tourism Competitiveness Index, the Gender Gap Index, and the Human Capital Index as well as several other reports, including The Inclusive Economic Growth and Development Report and a number of regional competitiveness 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 selected indicators from the Survey in its Corruption Perceptions Index. Institutions such as the Organisation for Economic Co-operation and Development (OECD), the World Bank, the Mo Ibrahim Foundation, and the International Monetary Fund (IMF) also refer to the Forum’s Survey data in their publications, as do a number of academic publications. Furthermore, a number of countries publish national competitiveness studies and reports that draw on or refer to the Survey data. Finally, many privatesector companies also use the data for their studies. THE SURVEY IN NUMBERS The Executive Opinion Survey 2016 captured the opinions of 14,723 business executives in 141 economies between February and June 2016. Following the data editing process described below, 13,877 responses in 135 economies were retained (see Figure 1). The 2016 edition of the Survey was made available in 39 languages (see Table 1), 21 of which were available online. The share of participants who took the Survey online increased to 43 percent this year. In 31 economies the Survey was administered entirely online, and in a further 10 economies, over 90 percent of respondents participated online (see rightmost column of Table 2). The Global Competitiveness Report 2016–2017 | 77
94. 1 .3: The Executive Opinion Survey Figure 1: Descriptive statistics of the Executive Opinion Survey 2016 NUMBER OF ECONOMIES Collected NUMBER OF SURVEYS 14,723 surveys collected 141economies surveyed SAMPLE SIZE (number of valid surveys by economy) Maximum 485: United States 355: China 304: Mexico 13,877 135 surveys retained* economies with enough valid responses* 3rd quartile Administration method Repeat and new respondents* ■ Online (42.8%) ■ Paper (57.2%) ■ Repeat (34.9%) ■ New (61.5%) ■ Not available (3.6%) 109 Average 102.8 Median 95 1st quartile 78 Minimum 32: Norway Source: World Economic Forum, Executive Opinion Survey, 2016 edition. Note: Not all charts are drawn to scale. * Following data treatment. See text for details. Table 1: The 39 languages in which the 2016 Survey was available Albanian Croatian* Hungarian Macedonian Serbian Arabic* Czech* Italian Mongolian Slovak* Armenian Danish Japanese Montenegrin Slovenian* Azeri English* Khmer Persian* Spanish* Bosnian Estonian* Korean Polish* Thai Bulgarian French* Lao Portuguese* Turkish* Chinese* German* Latvian* Romanian Vietnamese Chinese traditional* Greek* Lithuanian* Russian* * Language also available in the online Survey tool (20 languages). 78 | The Global Competitiveness Report 2016–2017 3 largest samples
95. 1 .3: The Executive Opinion Survey Figure 2: Country/economy coverage of the Executive Opinion Survey n  Covered in both 2015 and 2016 n  Covered in 2016   Not covered in 2016 Geographic coverage Some countries have been reinstated in the 2016 edition of the Survey after one or more years of exclusion. These are Barbados and Yemen (last included in 2014) and Brunei Darussalam (last included in 2013). For the first time ever, the Survey was administered in the Democratic Republic of Congo. However, it was not completed to minimum requirements in Haiti, Seychelles, and Suriname. For this reason, these economies are not included in this year’s edition of the Report (Figure 2). SURVEY STRUCTURE, ADMINISTRATION, AND METHODOLOGY The Survey is divided into 15 sections: I. About Your Company II. Most Problematic Factors for Doing Business III. Infrastructure IV. Technology V. Financial Environment VI. Foreign Trade and Investment VII. Domestic Competition VIII. Business Operations and Innovation IX. Security X. Governance XI. Education and Human Capital XII. Health XIII. Travel and Tourism XIV. Environment XV. Risks 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 1 for an example). The Survey is administered by the World Economic Forum and conducted at national level by the Forum’s network of Partner Institutes. Partner Institutes are recognized research or academic institutes, business organizations, national competitiveness councils, or other established professional entities and, in some cases, survey consultancies. These institutes have the network to reach out to the business community, are reputable organizations, and have a firm commitment to improving the competitiveness conditions of their economies. (For the full list, see the Partner Institutes section at the beginning of this Report.)1 In administering the Survey and in order to gather the strongest dataset, Partner Institutes are asked to follow detailed sampling guidelines to ensure that the sample of respondents is the most representative possible and comparable across the globe and in a specific timeframe. The sampling guidelines are based on best practices in the field of survey administration and on discussions with survey experts. In view of comparability across countries and time, the sampling guidelines have remained the same since their revision and the improvements implemented in 2012. The Survey sampling guidelines specify that the Partner Institute build a “sample frame”—that is, a list of The Global Competitiveness Report 2016–2017 | 79
96. 1 .3: The Executive Opinion Survey Table 2. Executive Opinion Survey: Descriptive statistics and weightings Period 1 Country/Economy Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Barbados Belgium Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burundi Cambodia Cameroon Canada Congo, Democratic Rep. Cape Verde Chad Chile China Colombia Costa Rica Côte d'Ivoire Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Finland France Gabon Gambia, The Georgia Germany Ghana Greece Guatemala 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 Period 2 Survey edition No. of respondents Weight (%)* 2015 2015 2015 2015 2015 2015 2014 2015 2015 2014 2015 2015 2015 2015 2015 2015 2015 64 96 96 75 113 101 88 50 56 48 65 67 163 55 104 81 197 New in 2016 115 94 78 100 98 New in 2016 81 83 139 364 162 114 83 80 62 95 128 77 116 100 84 88 92 50 101 37 91 49 149 100 86 76 103 63 47 87 236 98 265 43 30 91 82 91 114 93 104 100 50 101 75 40.1 42.4 44.6 44.7 47.7 43.8 46.7 38.0 39.4 44.5 48.0 45.0 49.2 48.4 44.1 42.6 50.3 2015 2014 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2014 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2014 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 44.9 44.7 47.7 45.6 40.9 45.0 42.4 40.1 45.3 45.3 49.5 45.5 44.2 44.4 43.6 46.9 44.8 47.9 53.6 51.3 44.9 45.4 45.8 45.9 46.4 44.9 46.1 49.6 45.0 45.7 44.1 46.4 41.7 43.7 45.1 43.5 46.6 50.0 46.5 33.6 41.4 47.3 41.6 46.5 44.2 43.9 45.0 42.9 45.1 40.5 Survey edition 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2015 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2015 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 No. of respondents Weight (%)* Online (%)† 95 118 99 77 91 111 77 89 88 50 51 67 116 42 112 98 128 80 116 96 63 95 137 97 81 102 206 355 158 79 80 85 65 106 110 78 92 49 50 89 89 47 94 33 92 45 103 100 81 82 92 82 52 86 266 86 176 38 80 122 68 120 101 99 114 100 59 100 108 59.9 57.6 55.4 55.3 52.3 56.2 53.3 62.0 60.6 55.5 52.0 55.0 50.8 51.6 55.9 57.4 49.7 100.0 55.1 55.3 52.3 54.4 59.1 100.0 55.0 57.6 59.9 54.7 54.7 50.5 54.5 55.8 55.6 56.4 53.1 55.2 52.1 46.4 48.7 55.1 54.6 54.2 54.1 53.6 55.1 53.9 50.4 55.0 54.3 55.9 53.6 58.3 56.3 54.9 56.5 53.4 50.0 53.5 66.4 58.6 52.7 58.4 53.5 55.8 56.1 55.0 57.1 54.9 59.5 — 0.8 100.0 — 17.6 49.5 — — — 60.0 100.0 — — 100.0 — 49.0 100.0 100.0 — — — — 100.0 — 21.0 — 95.1 — 75.9 98.7 — 84.7 — 100.0 — 100.0 — n/a 100.0 100.0 — 100.0 88.3 9.1 — 100.0 88.3 3.0 93.8 1.2 — n/a — 100.0 — 1.2 100.0 100.0 100.0 — — 7.5 — 4.0 — — 55.9 — — (Cont’d.) 80 | The Global Competitiveness Report 2016–2017
97. 1 .3: The Executive Opinion Survey Table 2: Executive Opinion Survey: Descriptive statistics and weightings (cont’d.) Period 1 Country/Economy Latvia Lebanon Lesotho Liberia Lithuania Luxembourg Macedonia, FYR Madagascar Malawi Malaysia Mali Malta Mauritania Mauritius Mexico Moldova Mongolia Montenegro Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russian Federation Rwanda Saudi Arabia Senegal Serbia Sierra Leone Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka 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 Period 2 Survey edition No. of respondents Weight (%)* 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2014 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2014 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2014 2015 2015 2015 2015 2015 2014 2015 2015 77 92 97 80 118 49 81 85 52 101 87 53 87 60 311 129 81 84 93 90 75 95 83 46 36 102 40 79 114 136 73 91 130 214 190 104 107 276 107 107 90 99 98 165 73 99 50 84 100 68 70 108 101 96 110 145 88 83 96 105 157 84 458 88 56 120 53 80 52 43.2 46.9 46.9 46.8 44.7 42.1 44.7 45.1 43.9 45.0 43.5 40.9 43.8 45.6 45.3 45.3 45.2 43.7 43.5 42.5 44.5 44.5 46.3 47.1 36.7 44.5 47.8 42.2 36.3 46.6 44.0 45.4 50.4 45.5 43.2 42.2 45.8 44.3 43.6 46.4 43.8 45.0 45.1 46.5 40.1 46.9 46.6 42.3 45.0 47.9 51.0 43.1 46.3 44.7 41.3 47.8 44.0 45.3 45.1 44.9 49.3 46.8 44.3 44.9 42.2 47.3 45.5 45.5 45.0 Survey edition 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2015 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 No. of respondents Weight (%)* Online (%)† 89 79 83 69 121 62 83 84 57 101 98 74 96 57 304 126 80 93 105 110 78 99 75 39 72 106 32 99 236 120 79 88 84 206 220 130 100 293 120 96 99 99 97 146 109 85 44 104 100 54 43 126 91 98 148 116 95 81 95 106 111 73 485 89 70 100 51 77 52 56.8 53.1 53.1 53.2 55.3 57.9 55.3 54.9 56.1 55.0 56.5 59.1 56.2 54.4 54.7 54.7 54.8 56.3 56.5 57.5 55.5 55.5 53.7 52.9 63.3 55.5 52.2 57.8 63.7 53.4 56.0 54.6 49.6 54.5 56.8 57.8 54.2 55.7 56.4 53.6 56.2 55.0 54.9 53.5 59.9 53.1 53.4 57.7 55.0 52.1 49.0 56.9 53.7 55.3 58.7 52.2 56.0 54.7 54.9 55.1 50.7 53.2 55.7 55.1 57.8 52.7 54.5 54.5 55.0 100.0 100.0 — — 71.9 100.0 — — 12.3 49.5 — 13.5 — 98.2 98.7 — — — 100.0 0.9 — — 100.0 100.0 n/a — 100.0 90.9 15.7 50.0 7.6 54.5 40.5 99.0 97.3 25.4 — 0.7 76.7 29.2 — — — 65.1 100.0 67.1 95.5 89.4 — 100.0 100.0 58.7 — — 99.3 100.0 100.0 38.3 — — 50.5 100.0 100.0 65.2 100.0 1.0 — — 67.3 Note: All statistics are computed following the editing of the data; see text for details. “n/a” indicates that this information is not provided for economies for which 2016 data are not available; “—” indicates that there was no online administration of the Survey. * Weight applied to the country score in that edition of the Survey. See Box 3 for details. † Share of surveys completed online (2016 only). The Global Competitiveness Report 2016–2017 | 81
98. 1 .3: The Executive Opinion Survey Box 1: Example of a typical Survey question In your country, to what extent do ICTs enable new business models? Not at all < 1 2 3 4 5 6 7 > To a great extent 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 potential business executives from small- and mediumsized enterprises and large companies—from the various 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 one 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 new 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 new respondents with some repeat respondents for further comparative analysis.3 Finally, the Partner Institutes are asked to collect Surveys from all regions of the economy, again to better represent the economy. The Survey is administered in a variety of formats, including face-to-face or telephone interviews with business executives, mailed paper forms, and online surveys. For environmental, time, and cost 82 | The Global Competitiveness Report 2016–2017 considerations, the Forum encourages the use of the online survey tool. 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 World Economic Forum by holding press events and workshops to highlight the results at the national level to the business community, the public sector, and other stakeholders. Survey methodology reviews With its aim of applying surveying best practices, the Survey as a tool is reviewed every year and its methodology has been audited by survey experts. The audits, undertaken by Gallup, took place in 2008 and 2012. In response to these audits, the Survey process has undergone a number of improvements both to the Survey tool itself as well as to the sampling guidelines, following international best practices in surveying. Furthermore, an issue that comes up in discussions of international surveying, and that was also noted as part of the Survey’s 2012 review, is that national culture—the so-called cultural bias—may impact interviewee responses. The Global Competitiveness and Risks Team recognizes this as a possibility; nonetheless, following international best practices and upon Gallup’s recommendation, it was decided not to re-weight the data using vignettes because of the limited effectiveness of such a procedure and to prevent introducing additional noise into the data that can occur with such an approach. In order to mitigate cultural bias, the Partner Institutes are reminded to administer the Survey according to guidelines and to ask the respondents to answer the Survey in view of the country they are assessing based on international comparison. With such ongoing efforts in the realm of survey administration best practice, the Forum’s competitiveness team continues to improve processes to achieve greater data quality and heightened comparability across economies. Further details about the Survey’s demographics are described in Box 2 on pages 84–85 and further statistics and weightings can be seen in Table 2 on pages 80–81. 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 careful editing process. A first series of tests is run to identify and exclude those surveys whose patterns of answers demonstrate a lack of sufficient
99. 1 .3: The Executive Opinion Survey focus on the part of the respondents. Surveys with at least 80 percent of the same answers are excluded. Surveys with a completion rate inferior to 50 percent are excluded.5 The very few cases of duplicate surveys— which can occur, for example, when a completed 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 core 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 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 zi,q,c greater than 3 are dropped. Aggregation and computation of country averages We use a simple average to compute scores of all countries.6 Therefore, every individual response carries the same implicit weight. 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 country scores that are used for the computation of the GCI 2016–2017 and for other projects. The 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 2015 and first quarter of 2016 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 3 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 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 66 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 138 economies. 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 upper bound = Q3 + 1.5 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 2016 are combined with the 2015 averages to produce the IQR 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. The Global Competitiveness Report 2016–2017 | 83
100. 1 .3: The Executive Opinion Survey Box 2: Insights from the Executive Opinion Survey 2016 The sampling guidelines for the Executive Opinion Survey aim to reflect in the composition of surveyed companies the economic structure of the country while maintaining a 50 percent share of respondents from previous years. Figure 1 summarizes respondent demographics from the 2016 edition of the survey, thus demonstrating the efforts undertaken by the Partner Institutes to follow the sampling guidelines. Because small- and medium-sized enterprises (SMEs) account for a large share of economic activities in most countries, the Partner Institutes are asked to collect the opinions from SMEs as well as from large companies (Figure 1a). In 2016, small enterprises, defined here as those with fewer than 50 employees, account for a share of respondents ranging from 18 percent in North America to 49 percent in Sub-Saharan Africa. On average, one respondent out of three has already taken part in the survey in the past. This allows maintaining a panel of constant respondents within the sample and increases the comparability of data across years (Figure 1b). Figure 1: Executive Opinion Survey: Respondent profile by region 1a: Company size by number of employees, percent 1b: Repeat and new respondents, percent East Asia and the Pacific (1,827) East Asia and the Pacific (1,827) Eurasia (1,014) Eurasia (1,014) Europe (3,366) Europe (3,366) Latin America and the Caribbean (2,090) Latin America and the Caribbean (2,090) Middle East and North Africa (1,389) Middle East and North Africa (1,389) North America (622) North America (622) South Asia (905) South Asia (905) Sub-Saharan Africa (2,664) Sub-Saharan Africa (2,664) 0 20 40 60 80 0 100 n  Small (< 50)   n  Small to medium (50–150) n  Medium to large (151–1,000)   n  Large (> 1,000) n  Not available 20 40 60 80 100 n New   n Repeat   n Not available   Note: Figures in parentheses represent the number of respondents in that region. See page xiii for group composition. Being one of the most comprehensive, regular, and largescale exercises of its kind, the Executive Opinion Survey allows us to monitor across time which areas businesses see as particularly problematic for the economic competitiveness of their countries. It is therefore an invaluable source that can inform public-private dialogue at the national and regional levels and help policymakers in prioritizing their efforts. Figure 2 looks at the 2016 Executive Opinion Survey results in a new, innovative way. Focusing exclusively on the questions that feed into the Global Competitiveness Index, the answers of each respondent have been normalized as the distance (in percentage terms) from the respondent-specific average. These distances have then been re-aggregated through simple averages to form areas of analysis that, to the extent possible, mirror the components and subcomponents of the Global Competitiveness Index. Areas with a negative distance are the ones that, on average, respondents in the region have assessed as relatively more problematic. Importantly, given this normalization, results do not indicate the level of development of each element in the region. For example, a score of –18 percent for the efficiency of the financial market in Europe should not be compared with a score of –17 percent in sub-Saharan Africa to conclude that the level of efficiency in the two regions is similar. Rather these two negative scores indicate that business executives in both regions prioritize this element in a similar way in terms of how problematic it is with respect to the other drivers of competitiveness. In the East Asia and Pacific region, businesses have given lower scores especially to the performance of the public sector and to the incidence of undue influence in their countries. With few exceptions, such as New Zealand, this holds true across most countries in the region, including advanced economies. The same areas are also problematic in Europe, according to the executives there, who have also expressed a negative assessment of the efficiency of their financial market. In that region, public institutions receive low scores in many Central and Eastern European countries, while financial market efficiency attracts most of the private sector’s discontent in the western half of the continent, particularly in the southern economies. This is also true in Eurasia, where falling oil prices have hit particularly hard and have put the financial sector under stress. Private companies in Eurasia also complain about the quality of public institutions, with undue influence being the factor with the second-lowest average score. Low fuel prices have also put a strain on (Cont’d.) 84 | The Global Competitiveness Report 2016–2017
101. 1 .3: The Executive Opinion Survey Box 2: Insights from the Executive Opinion Survey 2015 (cont’d.) the efficiency of financial markets in the Middle East and North Africa, where the use of human talent is also deemed particularly inefficient. As for Latin America and the Caribbean, executives seem to believe that most countries in the region remain plagued by high levels of corruption, undue influence on the government and other public institutions, and poor performance of the public sector. Latin America is also the region where results are most skewed, with the distance from the average score ranging from –27 percent (ethics and corruption) to +36 percent (trustworthiness and confidence in the financial sector). Public institutions collect low scores also in North America, although with a much smaller distance from the average (–11 percent on undue influence), while financial markets seem to have recovered well in the continent and their assessment is generally in line with that of other competitiveness factors. Ethics and corruption and undue influence are the areas that receive the lowest appraisal by businesses in South Asia, followed by infrastructure. This finding shows how the region, one of the poorest in the world, still needs to work on the basic foundations of competitiveness to allow its private sector to thrive. SubSaharan Africa economies appear to face many of the same challenges, although in this case the infrastructure gap appears even wider than it is in South Asia. The inefficiency of the financial market also attracts a lot of the discontent of businesses in the region, receiving an average score that is 17 percent lower than that of all competitiveness factors. In terms of general trends, businesses across all regions appear generally optimistic about the capacity of their countries to adopt existing technologies, but, with the relevant exception of North America, all of them are almost equally negative about the quality of their innovation environment. Almost a decade after the outbreak of the global economic crisis, the efficiency of the financial markets is still a source of discontent across all regions, with a negative delta ranging from –22 percent for Eurasia to –4 percent in North America. Figure 2: Businesses’ assessment of the drivers of competitiveness in their country, percent distance from average score East Asia and the Pacific Area Property rights Ethics and corruption Undue influence Public-sector performance Security Public institutions Corporate ethics Accountability Private institutions Institutions Infrastructure Eurasia Latin America and the Caribbean Europe Middle East and North Africa North America South Asia Sub-Saharan Africa 1.7% –7.1% –9.8% –9.8% 10.2% –1.9% –11.3% –17.0% –6.4% 20.4% 4.4% –10.1% –14.5% –19.1% 17.9% 5.3% –27.3% –24.8% –19.0% 0.4% 6.0% –2.5% –6.2% –7.7% 19.3% 7.4% –9.1% –11.4% –9.9% –3.5% 1.7% –8.6% –6.3% –4.9% 4.6% 6.4% –12.6% –9.2% –1.2% 15.2% –3.0% –3.3% 5.1% –3.1% –0.6% 7.3% –4.2% –3.0% 7.9% –13.0% –11.8% 21.9% 1.9% 1.5% 6.7% –5.3% –4.3% 7.3% –2.5% –0.1% 8.7% –0.2% –0.9% 14.8% 1.1% 3.5% 2.6% 5.6% 4.4% 1.9% 4.3% 7.2% –2.0% –1.5% –2.5% –8.4% 2.5% –3.5% –0.8% 1.7% 3.2% 1.6% 9.3% 0.9% 2.9% 7.0% –5.7% –13.2% Quality of education 1.4% 8.6% 4.0% –5.1% –0.7% 0.4% 1.9% –4.3% On-the-job training 1.8% 4.2% 2.6% 8.7% –2.2% 1.2% 1.5% 5.8% Education and training Domestic competition Foreign competition 1.6% 6.4% 3.3% 1.8% –1.5% 0.8% 1.7% 0.8% –2.1% 1.7% –1.3% 3.0% –4.0% 10.2% –1.5% 16.2% –0.3% –2.5% –5.2% –3.0% 2.1% 5.8% 4.4% 14.0% Competition Quality of demand conditions Goods market efficiency –0.2% 0.9% 3.0% 7.1% –1.4% –4.1% 3.9% 9.1% 2.2% 6.2% –1.9% 3.4% –2.2% –2.6% 1.7% –3.7% 0.6% 2.7% 1.4% 5.9% –1.7% –3.6% 3.2% 4.9% 3.6% 16.8% –5.0% 6.1% 6.4% –3.9% 7.7% 19.2% Efficient use of talent –2.8% –7.6% –13.1% –1.8% –10.2% 3.5% –2.6% –2.9% Labor market efficiency 0.4% 4.6% –8.9% 2.1% –2.1% –0.1% 2.4% 8.1% Flexibility Efficiency –7.7% –22.1% –18.0% –9.5% –12.8% –4.4% –5.5% –17.0% 8.7% –10.5% 4.3% 36.1% 10.4% 7.2% 10.7% 10.1% Financial market development 0.6% –16.4% –6.8% 13.2% –1.2% 1.4% 2.5% –3.5% Technological adoption 8.6% 10.5% 15.9% 20.8% 9.9% 10.0% 5.7% 9.7% Business sophistication –0.9% –1.9% 1.7% 4.4% –1.2% 3.1% 0.4% –2.6% Innovation –5.0% –5.9% –6.9% –9.7% –8.2% 0.8% –4.6% –6.8% Trustworthiness and confidence Note: White bars indicate a positive score, black bars indicate a negative score. See page xiii for group composition. The Global Competitiveness Report 2016–2017 | 85
102. 1 .3: The Executive Opinion Survey Box 3: Country/economy score calculation This box presents the methodology applied to compute the country scores for the vast majority of economies included in The Global Competitiveness Report 2016–2017 (see text for exceptions). 2015–16 For any given Survey question i, country c’s final score, q i,c , is given by: 2015–16 q i,c 2015 ϭwc 2015 ϫ q i,c 2016 ϩ wc 2016 ϫ q i,c (1) where t q i,c is country c’s score on question i in year t, with t = 2015, 2016, 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 w 2015 c ϭ 2015 c 2015 ϩ c2016 c N N N 2 ␣ϩ (2a)     and    w 2016 c ϭ 2016 c 2015 ϩ c2016 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 = 2015, 2016. a is a discount factor. Its value is set at 0.6. That is, the 2015 score of country c is given 2/3 of the weight given to the 2016 score. Plugging Equations (2a) and (2b) into (1) and rearranging yields: ΄ ΅ 2015 2016 1 1 ϫ (1Ϫ␣) ϫ q i,c ϩ ␣ ϫ q i,c ϩ ϫ 2 2 ΄ ΅ N c2015 N c2016 2015 2016 .(3) ϩ 2015 ϫ q i,c 2016 ϫ q i,c N c ϩN c N c ϩ N c2016 2015 Ά Ά q i,c2015–16 ϭ discounted-past weighted average 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. 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 .(4) t t 2 2 N c ϩN c N c ϩ N ct ΄ 1 2 ΅ 1 2 1 1 2 2 1 2 (Cont’d.) 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 the result of this test and additional qualitative analysis, and in light of the developments in these respective countries, it was decided to not use the data collected in Egypt, Hong Kong SAR, and Nicaragua. In those cases, we use the results from last year, which were derived from the results of the 2014 86 | The Global Competitiveness Report 2016–2017 and 2015 editions (see the Exceptions section in Box 3 for a formal description). CONCLUSION The Executive Opinion Survey has become one of the largest executive studies of its kind, collecting the perceptions of over 14,000 business executives in 138 economies. As with all perception data, it is essential to apply a detailed sampling methodology in view of collecting the most representative sample of the country’s economic structure as well as minimizing the risk of cultural bias. As described above and to this effect, the Forum works closely with its network of over 160 Partner Institutes to carry out the Survey at a national level. Therefore, along with the dataediting measures, the strong collaboration with the Partner Institutes and their commitment to following the guidelines is essential. Together these allow us to deliver
103. 1 .3: The Executive Opinion Survey Box 3: Country/economy score calculation (cont’d.) Exceptions As noted in the text, there are a number of exceptions to the approach described above. In illustrating 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 2016, where, by definition, no past data exist, the weight applied to the 2015 score is wc2015 = 0 and the weight applied to the 2016 score is wc2016 = 1. Equation (1) simply is qi,c2015–16 = qi,c2016. The same is true for the Democratic Republic of Congo. In this case, we have qi,c2015–16 = qi,c2016. In the case of countries for which the 2016 data were discarded, we rely on the results from last year’s edition as a proxy. They were calculated using Equation (1), but instead of using the 2015 and 2016 editions of the Survey, they were derived from the 2014 and 2015 editions, respectively. Therefore, we have qi,c2014, 2015 = wc2014 3 qi,c2014 1 wc2015 3 qi,c2015. Finally, in the case of countries whose data failed the inter-year robustness check last year and for which the 2015 data were discarded, we use the Survey data from 2014 instead, and combine them with those of 2016 to compute the scores. Equation (1) then becomes: qi,c2014, 2016 = wc2014 3 qi,c2014 1 wc2016 3 qi,c2016. The same treatment applies for those countries where the Survey was not administered in 2015 but was conducted in 2014 and in 2016. This is the case for Barbados and Yemen. Example of score computation For this example, we compute the score of Paraguay for the indicator Burden of government regulation, which is included in the Global Competitiveness Index (indicator 1.09) and derived from the following Survey question: “In your country, how burdensome is it for companies to comply with public administration’s requirements (e.g., permits, regulations, reporting)? [1 = extremely burdensome; 7 = not burdensome at all] | 2015–16 weighted average.” This question is not a new Survey question and Paraguay did not fail the inter-year robustness test either this year or last year. Therefore the normal treatment applies, using Equation (1). Paraguay’s Survey score was 3.61 in 2015 and 3.33 in 2016. The weighting scheme described above indicates how the two scores are combined. In Paraguay, the size of the sample was 73 in 2015 and 79 in 2016. Using a = 0.6 and applying Equations (2a) and (2b) yields weights of 44.0 percent for 2015 and 56.0 percent for 2016 (see Table 2). The final country score for this question is therefore: Ά Ά 0.440ϫ 3.61 ϩ 0.560ϫ 3.33 ϭ 3.45. 2015 2016 This is the final score used in the computation of the GCI. Although numbers are rounded to two decimal places in this example and to one decimal place in the Paraguay country profile, exact figures are used in all calculations. this unique and global dataset, which feeds into The Global Competitiveness Report 2016–2017 and is used by many organizations, governments, and businesses around the world. NOTES 1 The World Economic Forum’s Competitiveness and Risks Team would like to acknowledge Research Now for carrying out the Executive Opinion Survey 2016 in the United States, following the detailed sampling guidelines. Furthermore, Research Now supplemented a sample in Germany. 2Company 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. 5The completion rate is the proportion of answered questions among a subset of questions in the Survey instrument. These 130 core questions are all numerical questions of sections III through XI. 6 Until 2013, we used a sector-weighted average for computing country scores. Since 2014, we have used a simple average. Refer to Chapter 1.3 of The Global Competitiveness Report 2014–2015 for a detailed discussion about this evolution of the methodology. REFERENCE Browne, C., A. Di Battista, T. Geiger, and T. Gutknecht. 2014. “The Executive Opinion Survey: The Voice of the Business Community.” The Global Competitiveness Report 2014–2015. Geneva: World Economic Forum. 85–96. 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. 4The results are the scores obtained by each economy in the various questions of the Survey. The two terms are used interchangeably throughout the text. The Global Competitiveness Report 2016–2017 | 87
105. Part 2 Country /Economy Profiles
107. How to Read the Country /Economy Profiles The Country/Economy Profiles section presents a twopage profile for each of the 138 economies covered in The Global Competitiveness Report 2016–2017. 2.1: Country/Economy Profiles Global Competitiveness Index 2016-2017 edition Australia 22 nd / 138 Key Indicators, 2015 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 24.0 Population (millions) 1223.9 GDP (US$ billions) 50961.9 GDP per capita (US$) 1.00 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Edition 2012-13 2013-14 2014-15 2015-16 2016-17 5.2 Rank 20 / 144 21 / 148 22 / 144 21 / 140 22 / 138 15 5.8 Score 5.1 5.1 5.1 5.1 5.2 19 5.3 2nd pillar: Infrastructure 17 5.6  3rd pillar: Macroeconomic environment 23  4th pillar: Health and primary education 10 Global Competitiveness Index PAGE 1 Key indicators The first section presents a selection of key indicators for the economy under review. All data in this section are for 2015 and sourced from the April 2016 edition of the International Monetary Fund (IMF)’s World Economic Outlook (WEO) Database. 22 Subindex A: Basic requirements  1st pillar: Institutions 5.3 5.9 6th pillar: Goods market efficiency 27 4.8  7th pillar: Labor market efficiency 28 4.7  8th pillar: Financial market development 6 5.4  9th pillar: Technological readiness 24 5.7  10th pillar: Market size 22 5.1  27 4.6  11th pillar: Business sophistication 28 4.7  12th pillar: Innovation 26 4.5 Subindex C: Innovation and sophistication factors 12th pillar: Innovation 6.6 9 5th pillar: Higher education and training 1st pillar: Institutions 5.7 13 Subindex B: Efficiency enhancers  Distance from best 3rd pillar: Macroeconomic environment 3 2 4th pillar: Health and primary education 1 5th pillar: Higher education and training 8th pillar: Financial market development 7th pillar: Labor market efficiency Australia East Asia and Pacific eight)—a gain of almost 30 places over the past three years. Despite the prolonged commodity bust, Australia’s performance in the macroeconomic situation (23rd, up five) is strong, with the government reducing the fiscal deficit to less than 3 percent. Innovation represents Australia’s challenge and imperative in the face of low commodity prices and China’s slowdown. In both business sophistication (28th, down one) and innovation (26th, down three), Australia not only lags far behind the best performers but also loses ground to them. Source: World Economic Forum, Executive Opinion Survey 2016 score 0 6 12 18 102 | The Global Competitiveness Report 2016–2017Index in detail The Global Competitiveness 2.1: Country/Economy Profiles Australia The Global Competitiveness Index in detail Rank / 138  1st pillar: Institutions 1.02 Intellectual property protection 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Value Trend Rank / 138 6th pillar: Goods market efficiency 19 5.3  15 18 15 23 17 10 22 52 77 27 28 23 55 45 34 11 13 13 12 24 63 5.9 5.8 5.6 4.5 6.1 6.2 4.2 3.5 3.4 4.7 4.4 5.1 5.4 5.1 5.6 6.3 5.6 6.1 6.0 5.0 5.7 6.01 Intensity of local competition 17 5.6 33 40 36 36 37 7 22 36 24 4.8 4.8 4.0 4.9 5.3 4841.0 6.4 132.8 38.0 23 5.7 59 55 1 43 11 -2.8 22.2 1.5 36.8 10 6.6 n/a M.F. N/Appl. N/Appl. 17 14 1 24 17 8 14 37 - 6.4 6.7 0.2 6.4 3.0 82.3 5.5 97.4 9 5.9 3 8 14 24 17 6 14 21 137.6 86.6 5.2 4.9 5.4 6.0 5.8 4.9 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 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 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 1.03 Diversion of public funds PAGE 2 6th pillar: Goods market efficiency 20.2 17.3 11.6 10.3 7.7 6.4 6.3 6.1 5.0 3.9 2.3 1.7 1.1 0.1 0.1 0.0 1.01 Property rights 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 World Economic Forum’s Executive Opinion Survey (the Survey). 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. 5 4 9th pillar: Technological readiness Most problematic factors for doing business Performance overview This section details the economy’s performance on the main components of the Global Competitiveness Index (GCI). The table on the upper left of this section shows the evolution in the economy’s overall GCI rank and score since the 2012–2013 edition (or the earliest edition available). On the right-hand side, a chart shows the economy’s performance in the 12 pillars of the GCI (blue line) measured against the region’s average scores. See page xiii for group composition. For selected economies, a brief commentary of the performance appears at the bottom part of this section. 6 10th pillar: Market size Australia’s (22nd) performance is stable compared with the previous edition and remarkably consistent yet never stellar—Australia does not rank lower than 28th across the 12 pillars, and it ranks in the top 10 of three pillars. Notable strengths include access to education and the quality of its education system. Australia places 10th in the health and primary education pillar and 9th in higher education and training. Improving further, Australia now ranks 6th overall in the financial development pillar, thanks to the high level of trust and confidence in the system. The efficiency of the labor market, where Australia used to rank in the 50s, improves further (28th, up Restrictive labor regulations Tax rates Inefficient government bureaucracy Tax regulations Poor work ethic in national labor force Access to financing Insufficient capacity to innovate Inadequate supply of infrastructure Policy instability Inadequately educated workforce Foreign currency regulations Government instability Inflation Crime and theft Corruption Poor public health 2nd pillar: Infrastructure 7 11th pillar: Business sophistication 12.07 PCT patent applications applications/million pop. Value 27 4.8 7 53 34 96 100 11 6 13 22 37 12 49 24 127 20 33 5.9 3.8 4.2 3.3 47.6 3 2.5 4.7 4.9 2.1 5.6 4.8 5.1 21.4 5.5 3.8 28 4.7 54 111 118 43 111 26 12 26 19 54 4.6 4.3 3.1 11.7 3.3 4.7 6.0 4.5 4.7 0.86 6 5.4 24 39 15 14 44 5 8 4 5.1 4.3 5.1 5.1 3.2 6.5 5.9 11 24 5.7 26 25 39 24 26 44 10 5.7 5.4 4.8 84.6 27.9 81.6 112.9 22 5.1 20 36 19 116 5.0 5.3 1138.1 19.3 28 4.7 77 17 43 25 50 33 25 23 17 4.4 5.4 4.0 4.8 4.1 4.3 5.2 5.1 4.9 26 4.5 22 12 24 33 63 17 22 5.1 5.7 4.5 4.3 3.3 5.0 76.2 Trend Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 103 The Global Competitiveness Report 2016–2017 | 91
108. 2 : Country/Economy Profiles shown on this page. See Appendix A of Chapter 1.1 for the detailed structure of the GCI and methodology. Indicators derived from the Survey are always expressed as scores on a 1–7 scale, with 7 being the most desirable outcome. For those, units are omitted for the sake of readability. For indicators that are not derived from the Survey, the units are displayed next to the indicator name. A line depicts the evolution of this value since the 2012–2013 edition of the Report (or the earliest period available). ONLINE RESOURCES Interactive profiles and sortable rankings with detailed meta information, as well as downloadable datasets, are available at http://gcr.weforum.org. 92 | The Global Competitiveness Report 2016–2017
109. Index of Country /Economy Profiles Country/Economy Country/Economy Page Country/Economy Page Albania Page 94 Germany 186 New Zealand 278 Algeria 96 Ghana 188 Nicaragua 280 Argentina 98 Greece 190 Nigeria 282 Armenia 100 Guatemala 192 Norway 284 Australia 102 Honduras 194 Oman 286 Austria 104 Hong Kong SAR 196 Pakistan 288 Azerbaijan 106 Hungary 198 Panama 290 Bahrain 108 Iceland 200 Paraguay 292 Bangladesh 110 India 202 Peru 294 Barbados 112 Indonesia 204 Philippines 296 Belgium 114 Iran, Islamic Rep. 206 Poland 298 Benin 116 Ireland 208 Portugal 300 Bhutan 118 Israel 210 Qatar 302 Bolivia 120 Italy 212 Romania 304 Bosnia and Herzegovina 122 Jamaica 214 Russian Federation 306 Botswana 124 Japan 216 Rwanda 308 Brazil 126 Jordan 218 Saudi Arabia 310 Brunei Darussalam 128 Kazakhstan 220 Senegal 312 Bulgaria 130 Kenya 222 Serbia 314 Burundi 132 Korea, Rep. 224 Sierra Leone 316 Cambodia 134 Kuwait 226 Singapore 318 Cameroon 136 Kyrgyz Republic 228 Slovak Republic 320 Canada 138 Lao PDR 230 Slovenia 322 Cape Verde 140 Latvia 232 South Africa 324 Chad 142 Lebanon 234 Spain 326 Chile 144 Lesotho 236 Sri Lanka 328 China 146 Liberia 238 Sweden 330 Colombia 148 Lithuania 240 Switzerland 332 Congo, Democratic Rep. 150 Luxembourg 242 Taiwan, China 334 Costa Rica 152 Macedonia, FYR 244 Tajikistan 336 Côte d'Ivoire 154 Madagascar 246 Tanzania 338 Croatia 156 Malawi 248 Thailand 340 Cyprus 158 Malaysia 250 Trinidad and Tobago 342 Czech Republic 160 Mali 252 Tunisia 344 Denmark 162 Malta 254 Turkey 346 Dominican Republic 164 Mauritania 256 Uganda 348 Ecuador 166 Mauritius 258 Ukraine 350 Egypt 168 Mexico 260 United Arab Emirates 352 El Salvador 170 Moldova 262 United Kingdom 354 Estonia 172 Mongolia 264 United States 356 Ethiopia 174 Montenegro 266 Uruguay 358 Finland 176 Morocco 268 Venezuela 360 France 178 Mozambique 270 Vietnam 362 Gabon 180 Namibia 272 Yemen 364 Gambia, The 182 Nepal 274 Zambia 366 Georgia 184 Netherlands 276 Zimbabwe 368 The Global Competitiveness Report 2016–2017 | 93
110. 2 .1: Country/Economy Profiles Albania 80 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 2.9 Population (millions) 11.5 GDP (US$ billions) 3995.4 GDP per capita (US$) 0.03 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 80 4.1 Rank 89 / 144 95 / 148 97 / 144 93 / 140 80 / 138 74 4.5 Score 3.9 3.8 3.8 3.9 4.1 76 3.8 2nd pillar: Infrastructure 91 3.5  3rd pillar: Macroeconomic environment 93 4.3  4th pillar: Health and primary education 33 6.3 86 3.9 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 42 4.9  6th pillar: Goods market efficiency 69 4.3  7th pillar: Labor market efficiency 98 3.9  8th pillar: Financial market development 94 3.6  9th pillar: Technological readiness 82 3.7  10th pillar: Market size 109 2.9 106 3.3 94 3.7 109 3.0 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Albania Most problematic factors for doing business Corruption Tax rates Inadequately educated workforce Access to financing Policy instability Inefficient government bureaucracy Poor work ethic in national labor force Inadequate supply of infrastructure Crime and theft Inflation Tax regulations Insufficient capacity to innovate Foreign currency regulations Government instability Poor public health Restrictive labor regulations 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 23.6 21.3 11.3 10.1 8.9 6.6 5.6 4.5 2.4 2.4 1.9 0.6 0.4 0.3 0.2 0.0 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 94 | The Global Competitiveness Report 2016–2017
111. 2 .1: Country/Economy Profiles Albania The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 76 119 118 84 81 66 125 72 64 11 120 109 45 56 66 94 45 43 95 82 57 8 3.8 3.5 3.3 3.2 2.8 4.0 2.6 3.0 3.3 4.6 2.8 2.8 4.5 5.4 4.8 4.3 5.0 4.3 4.2 4.7 4.2 7.3 91 3.5 68 56 105 62 68 124 82 89 97 4.1 4.4 1.4 4.2 4.4 19.4 4.5 106.4 7.1 93 4.3 87 85 1 104 80 -4.0 16.8 1.9 71.9 33 6.3 - n/a S.L. N/Appl. N/Appl. 44 40 1 28 69 38 22 63 42 61 41 34 37 60 30 90 72 19.0 6.2 <0.1 6.3 12.5 77.8 5.1 95.5 4.9 96.4 62.7 4.5 4.7 4.3 5.2 4.1 3.9 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP 11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  Value 69 116 124 112 126 66 54 28 15 81 39 107 59 86 49 29 91 4.3 4.5 2.9 3.1 2.8 36.5 6 5.5 4.7 4.3 2.4 3.9 4.8 3.7 51.7 5.3 3.1 98 29 94 50 92 116 40 82 117 119 97 94 110 92 138 106 124 64 103 28 82 104 77 43 61 78 79 83 109 10.01 Domestic market size index  Rank / 138 12th pillar: Innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.9 5.1 4.7 4.0 20.8 3.1 4.4 4.0 2.7 2.4 0.68 3.6 3.6 3.5 1.5 3.2 2.1 5.0 3.7 7 3.7 4.1 4.4 4.7 63.3 7.6 30.7 40.6 2.9 106 107 111 62 2.6 3.7 32.6 35.8 94 70 93 121 80 125 122 62 70 68 3.7 4.5 4.0 3.0 3.3 3.1 2.9 3.9 4.4 3.8 109 12.01 Capacity for innovation 62 130 104 104 22 126 90 Trend 3.0 4.2 2.5 2.9 3.0 3.9 3.1 0.2 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 95
112. 2 .1: Country/Economy Profiles Algeria 87 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 39.9 Population (millions) 172.3 GDP (US$ billions) 4318.1 GDP per capita (US$) 0.51 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 110 / 144 100 / 148 79 / 144 87 / 140 87 / 138 88 4.3 Score 3.7 3.8 4.1 4.0 4.0 99 3.5 100 3.3 63 4.8  4th pillar: Health and primary education 73 5.7 110 3.6 96 3.9  5th pillar: Higher education and training  6th pillar: Goods market efficiency 133 3.5  7th pillar: Labor market efficiency 132 3.2  8th pillar: Financial market development 132 2.9  9th pillar: Technological readiness 108 3.1  10th pillar: Market size 36 4.7 119 3.1  11th pillar: Business sophistication 121 3.3  12th pillar: Innovation 112 2.9 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Algeria Most problematic factors for doing business Inefficient government bureaucracy Access to financing Corruption Policy instability Foreign currency regulations Poor work ethic in national labor force Inadequately educated workforce Inflation Inadequate supply of infrastructure Restrictive labor regulations Tax regulations Tax rates Insufficient capacity to innovate Crime and theft Government instability Poor public health 2013-14 4.0 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 87  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Middle East and North Africa Source: World Economic Forum, Executive Opinion Survey 2016 17.5 13.7 13.3 6.5 6.2 5.7 5.7 5.7 5.6 5.3 4.6 4.5 2.5 2.2 0.6 0.5 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 96 | The Global Competitiveness Report 2016–2017
113. 2 .1: Country/Economy Profiles Algeria The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 99 117 108 81 83 101 94 70 75 86 67 75 127 102 71 80 60 107 135 136 100 133 3.5 3.6 3.4 3.3 2.8 3.3 3.4 3.0 3.1 3.2 3.6 3.4 3.2 4.5 4.6 4.6 4.7 3.4 3.1 3.4 3.7 3.3 2nd pillar: Infrastructure 100 3.3  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 101 96 57 105 117 64 92 77 89 3.3 3.2 3.0 3.2 3.2 233.2 4.0 113.0 8.0 63 4.8 135 10 99 4 70 -15.3 34.6 4.8 8.7 73 5.7 - 11 45 86 125 1 113 93 65 102 40 0.1 4.5 78.0 4.0 0.1 4.3 21.9 74.8 3.3 97.3 96 3.9 46 78 85 99 127 124 120 131 99.9 34.6 3.4 3.5 3.3 3.1 3.6 3.1 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP 11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  Value 133 136 87 113 92 135 126 103 112 125 127 132 135 114 85 130 90 3.5 3.8 3.4 3.1 3.4 72.7 12 20.0 3.2 3.6 13.8 3.1 3.0 3.4 36.0 3.7 3.1 132 3.2 115 113 111 74 89 122 135 116 125 136 3.8 4.3 3.3 17.3 3.7 3.3 3.0 2.7 2.2 0.24 132 2.9 131 95 124 122 85 123 129 108 108 125 128 121 95 84 80 85 36 10.01 Domestic market size index  Rank / 138 12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.1 3.5 2.5 2.9 2.6 3.6 3.0 2 3.1 3.7 3.6 3.6 38.2 5.6 30.1 40.1 4.7 33 43 33 102 4.6 5.1 578.7 24.0 121 108 130 115 93 109 112 108 125 124 3.3 4.0 3.4 3.1 3.1 3.4 3.0 3.2 3.7 3.1 112 2.9 112 99 113 120 105 81 94 Trend 3.7 3.4 2.8 2.7 2.9 3.8 0.2 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 97
114. 2 .1: Country/Economy Profiles Argentina 104 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 43.1 Population (millions) 585.6 GDP (US$ billions) 13588.8 GDP per capita (US$) 0.86 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 94 / 144 104 / 148 104 / 144 106 / 140 104 / 138 110 3.9 Score 3.9 3.8 3.8 3.8 3.8 130 3.0 85 3.7 130 2.9  4th pillar: Health and primary education 63 5.9 82 3.9 40 5.0  5th pillar: Higher education and training  6th pillar: Goods market efficiency 135 3.3  7th pillar: Labor market efficiency 130 3.3  8th pillar: Financial market development 127 3.0  9th pillar: Technological readiness 69 4.1  10th pillar: Market size 28 4.9 87 3.5  11th pillar: Business sophistication 88 3.7  12th pillar: Innovation 81 3.2 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Argentina Argentina gains two positions to 104th, driven mainly by innovation and sophistication factors, reflecting better preparedness to cope with a changing future environment. The quality of institutions improved mainly through better intellectual property protection and a more efficient legal framework. The quality of education and use of talent show signs of progress, as does the efficiency of goods markets. Argentina’s improvement in both ranking and score comes while a new administration implements broad reforms in an Most problematic factors for doing business Inflation Tax rates Access to financing Corruption Inefficient government bureaucracy Policy instability Restrictive labor regulations Inadequate supply of infrastructure Tax regulations Foreign currency regulations Inadequately educated workforce Poor work ethic in national labor force Crime and theft Insufficient capacity to innovate Government instability Poor public health 2013-14 3.8 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 104  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean score comes while a new administration implements broad reforms in an adverse external context: the recession in Brazil, Argentina’s main trading partner; low commodity prices; adjustments in utility tariffs; and high inflation have all made the transition toward a more market-oriented model difficult. Consumer sentiment remains weak but growth is expected to rebound, supported by competitiveness-improving reforms. Source: World Economic Forum, Executive Opinion Survey 2016 23.1 15.9 11.7 11.2 7.5 5.9 5.8 4.9 3.9 3.1 2.6 1.5 1.1 0.8 0.7 0.2 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 98 | The Global Competitiveness Report 2016–2017
115. 2 .1: Country/Economy Profiles Argentina The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 130 125 103 128 129 107 121 131 134 132 119 119 124 51 115 106 122 132 113 92 129 49 3.0 3.2 3.6 2.2 1.7 3.1 2.8 2.0 1.5 2.2 2.8 2.7 3.3 5.5 3.5 4.2 3.0 2.7 3.8 4.6 3.3 6.0 85 3.7 109 103 87 79 87 32 119 28 43 3.1 3.1 2.1 3.8 4.1 924.5 2.7 143.9 24.0 130 2.9 121 93 n/a 82 115 -7.4 15.6 n/a 56.5 63 5.9 - 1 2 53 30 85 62 63 51 95 13 0.0 6.7 24.0 6.4 0.5 5.7 11.1 76.2 3.4 99.0 40 5.0 29 16 93 111 39 78 43 81 106.3 80.0 3.3 3.2 4.7 4.1 4.8 3.8 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP 11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  Value 135 122 94 126 135 138 134 107 100 127 119 86 126 135 138 104 64 3.3 4.4 3.4 2.8 2.1 137.4 14 25.0 3.3 3.4 11.1 4.3 3.5 2.4 13.2 4.2 3.5 130 3.3 121 133 133 123 131 105 59 57 104 94 3.7 3.0 2.4 30.3 2.7 3.5 4.5 3.7 2.6 0.69 127 3.0 133 126 109 117 120 85 124 108 69 114 104 133 50 54 67 46 28 10.01 Domestic market size index  Rank / 138 12th pillar: Innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.0 2.8 2.8 3.0 2.2 4.5 3.2 2 4.1 3.9 4.1 3.1 69.4 16.1 46.1 67.3 4.9 24 50 25 131 4.9 5.0 972.0 12.0 88 105 112 103 101 83 100 72 50 93 3.7 4.1 3.7 3.2 3.0 3.7 3.2 3.7 4.6 3.5 81 12.01 Capacity for innovation 74 33 91 71 122 94 71 Trend 3.2 4.1 4.6 3.0 3.4 2.6 3.7 1.2 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 99
116. 2 .1: Country/Economy Profiles Armenia 79 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 3.0 Population (millions) 10.6 GDP (US$ billions) 3534.9 GDP per capita (US$) 0.02 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 79 4.1 Rank 82 / 144 79 / 148 85 / 144 82 / 140 79 / 138 83 4.4 Score 4.0 4.1 4.0 4.0 4.1 66 4.0 2nd pillar: Infrastructure 82 3.8  3rd pillar: Macroeconomic environment 88 4.3  4th pillar: Health and primary education 93 5.4 80 4.0 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 71 4.4  6th pillar: Goods market efficiency 45 4.6  7th pillar: Labor market efficiency 55 4.4  8th pillar: Financial market development 90 3.7  9th pillar: Technological readiness 71 4.0  10th pillar: Market size 120 2.7 81 3.5 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 81 3.8  12th pillar: Innovation 87 3.2 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development 7th pillar: Labor market efficiency Armenia Most problematic factors for doing business Access to financing Corruption Inefficient government bureaucracy Tax rates Tax regulations Inadequately educated workforce Foreign currency regulations Inflation Inadequate supply of infrastructure Insufficient capacity to innovate Policy instability Poor work ethic in national labor force Restrictive labor regulations Poor public health Crime and theft Government instability 2nd pillar: Infrastructure 7 6th pillar: Goods market efficiency Eurasia Source: World Economic Forum, Executive Opinion Survey 2016 15.3 11.3 10.6 10.5 10.1 8.9 7.9 6.8 6.1 3.7 3.3 2.8 1.3 0.9 0.3 0.1 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 100 | The Global Competitiveness Report 2016–2017
117. 2 .1: Country/Economy Profiles Armenia The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 66 66 84 70 65 65 101 61 77 42 68 80 48 33 27 57 67 70 66 81 88 49 4.0 4.3 3.8 3.5 3.1 4.0 3.2 3.2 3.0 3.7 3.6 3.2 4.5 5.8 5.4 5.1 4.4 3.9 4.6 4.7 3.8 6.0 82 3.8 58 81 66 122 67 103 72 72 59 4.3 3.8 2.7 2.4 4.4 45.4 4.8 115.1 18.4 88 4.3 103 88 69 68 87 -4.9 16.4 3.7 46.6 93 5.4 - n/a M.F. N/Appl. N/Appl. 67 71 1 38 71 68 66 125 71 60 64 68 42 116 69 84 109 45.0 5.7 0.2 6.1 12.6 74.7 4.1 84.1 4.4 96.6 44.3 3.7 4.6 3.6 4.2 4.1 3.5 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 45 91 51 77 48 12 3 9 52 36 64 103 88 95 62 52 58 4.6 4.8 3.9 3.6 3.9 19.9 2 3.0 4.0 4.7 4.6 4.1 4.3 3.6 45.4 4.9 3.5 55 39 34 19 39 62 60 89 109 102 82 90 99 87 119 71 73 80 85 68 71 75 90 77 65 70 52 81 120 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.4 4.7 5.4 4.6 11.0 4.0 4.1 3.9 2.8 2.7 0.77 3.7 3.8 3.6 2.6 3.9 2.8 4.6 4.0 5 4.0 4.6 4.3 4.3 58.2 9.6 67.9 41.3 2.7 118 121 118 95 2.4 3.4 25.3 28.1 81 89 87 98 49 88 84 75 111 105 3.8 4.3 4.1 3.3 3.9 3.6 3.4 3.7 3.9 3.4 87 12.01 Capacity for innovation 63 100 92 92 93 52 57 Trend 3.2 4.2 3.4 3.0 3.2 2.9 4.2 2.8 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 101
118. 2 .1: Country/Economy Profiles Australia 22 Key Indicators, 2015 nd Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 24.0 Population (millions) 1223.9 GDP (US$ billions) 50961.9 GDP per capita (US$) 1.00 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 22 5.2 Rank 20 / 144 21 / 148 22 / 144 21 / 140 22 / 138 15 5.8 Score 5.1 5.1 5.1 5.1 5.2 19 5.3 2nd pillar: Infrastructure 17 5.6  3rd pillar: Macroeconomic environment 23 5.7  4th pillar: Health and primary education 10 6.6 13 5.3 9 5.9 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 27 4.8  7th pillar: Labor market efficiency 28 4.7  8th pillar: Financial market development 6 5.4  9th pillar: Technological readiness 24 5.7  10th pillar: Market size 22 5.1 27 4.6 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 28 4.7  12th pillar: Innovation 26 4.5 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Australia Australia’s (22nd) performance is stable compared with the previous edition and remarkably consistent yet never stellar—Australia does not rank lower than 28th across the 12 pillars, and it ranks in the top 10 of three pillars. Notable strengths include access to education and the quality of its education system. Australia places 10th in the health and primary education pillar and 9th in higher education and training. Improving further, Australia now ranks 6th overall in the financial development pillar, thanks to the high level of trust and confidence in the system. The efficiency of the labor market, where Australia used to rank in the 50s, improves further (28th, up eight)—a gain of almost 30 places over the past three years. Despite the Most problematic factors for doing business Restrictive labor regulations Tax rates Inefficient government bureaucracy Tax regulations Poor work ethic in national labor force Access to financing Insufficient capacity to innovate Inadequate supply of infrastructure Policy instability Inadequately educated workforce Foreign currency regulations Government instability Inflation Crime and theft Corruption Poor public health 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency East Asia and Pacific eight)—a gain of almost 30 places over the past three years. Despite the prolonged commodity bust, Australia’s performance in the macroeconomic situation (23rd, up five) is strong, with the government reducing the fiscal deficit to less than 3 percent. Innovation represents Australia’s challenge and imperative in the face of low commodity prices and China’s slowdown. In both business sophistication (28th, down one) and innovation (26th, down three), Australia not only lags far behind the best performers but also loses ground to them. Source: World Economic Forum, Executive Opinion Survey 2016 20.2 17.3 11.6 10.3 7.7 6.4 6.3 6.1 5.0 3.9 2.3 1.7 1.1 0.1 0.1 0.0 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 102 | The Global Competitiveness Report 2016–2017
119. 2 .1: Country/Economy Profiles Australia The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 19 15 18 15 23 17 10 22 52 77 27 28 23 55 45 34 11 13 13 12 24 63 5.3 5.9 5.8 5.6 4.5 6.1 6.2 4.2 3.5 3.4 4.7 4.4 5.1 5.4 5.1 5.6 6.3 5.6 6.1 6.0 5.0 5.7 2nd pillar: Infrastructure 17 5.6  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 33 40 36 36 37 7 22 36 24 4.8 4.8 4.0 4.9 5.3 4841.0 6.4 132.8 38.0 23 5.7 59 55 1 43 11 -2.8 22.2 1.5 36.8 10 6.6 - n/a M.F. N/Appl. N/Appl. 17 14 1 24 17 8 14 37 9 3 8 14 24 17 6 14 21 6.4 6.7 0.2 6.4 3.0 82.3 5.5 97.4 5.9 137.6 86.6 5.2 4.9 5.4 6.0 5.8 4.9 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 27 7 53 34 96 100 11 6 13 22 37 12 49 24 127 20 33 4.8 5.9 3.8 4.2 3.3 47.6 3 2.5 4.7 4.9 2.1 5.6 4.8 5.1 21.4 5.5 3.8 28 54 111 118 43 111 26 12 26 19 54 6 24 39 15 14 44 5 8 4 24 26 25 39 24 26 44 10 22 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.7 4.6 4.3 3.1 11.7 3.3 4.7 6.0 4.5 4.7 0.86 5.4 5.1 4.3 5.1 5.1 3.2 6.5 5.9 11 5.7 5.7 5.4 4.8 84.6 27.9 81.6 112.9 5.1 20 36 19 116 5.0 5.3 1138.1 19.3 28 77 17 43 25 50 33 25 23 17 4.7 4.4 5.4 4.0 4.8 4.1 4.3 5.2 5.1 4.9 26 12.01 Capacity for innovation 22 12 24 33 63 17 22 Trend 4.5 5.1 5.7 4.5 4.3 3.3 5.0 76.2 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 103
120. 2 .1: Country/Economy Profiles Austria 19 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 8.6 Population (millions) 374.1 GDP (US$ billions) 43724.0 GDP per capita (US$) 0.36 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 19 5.2 Rank 16 / 144 16 / 148 21 / 144 23 / 140 19 / 138 18 5.7 Score 5.2 5.2 5.2 5.1 5.2 20 5.2 2nd pillar: Infrastructure 14 5.8  3rd pillar: Macroeconomic environment 31 5.5  4th pillar: Health and primary education 20 6.4 22 5.0 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 12 5.8  6th pillar: Goods market efficiency 25 4.9  7th pillar: Labor market efficiency 40 4.5  8th pillar: Financial market development 34 4.5  9th pillar: Technological readiness 23 5.7  10th pillar: Market size 43 4.5 11 5.3 8 5.5 14 5.0 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Austria Most problematic factors for doing business Restrictive labor regulations Inefficient government bureaucracy Tax rates Tax regulations Inadequately educated workforce Insufficient capacity to innovate Access to financing Policy instability Poor work ethic in national labor force Inadequate supply of infrastructure Inflation Foreign currency regulations Crime and theft Government instability Corruption Poor public health 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 23.6 21.2 19.8 13.1 6.5 4.3 4.0 2.5 2.1 1.3 0.5 0.4 0.4 0.1 0.1 0.0 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 104 | The Global Competitiveness Report 2016–2017
121. 2 .1: Country/Economy Profiles Austria The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 20 13 17 30 29 19 26 36 54 50 23 24 20 35 22 20 17 19 12 6 16 36 5.2 5.9 5.8 4.7 4.2 5.9 5.4 3.9 3.4 3.7 4.8 4.6 5.3 5.8 5.5 6.0 6.2 5.4 6.1 6.1 5.2 6.3 2nd pillar: Infrastructure 14 5.8  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 9 8 12 74 35 45 12 17 17 5.9 6.0 5.3 3.9 5.3 516.6 6.6 157.4 42.2 31 5.5 37 40 1 116 14 -1.6 25.8 0.8 86.2 20 6.4 - n/a S.L. N/Appl. N/Appl. 25 5 76 8 13 19 29 26 12 52 15 32 30 30 26 7 11 7.8 6.8 0.4 6.7 2.9 81.3 4.9 98.1 5.8 99.3 80.0 4.5 4.8 5.1 5.3 5.9 5.2 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Rank / 138 Value 25 23 7 20 120 114 94 105 33 26 5 44 21 18 45 5 40 4.9 5.6 5.2 4.8 2.9 51.7 8 22.0 4.4 4.8 1.0 5.0 5.4 5.2 53.7 5.9 3.8 40 8 137 121 3 133 32 23 24 34 38 34 20 7 25 19 46 65 43 68 23 18 20 46 25 23 39 43 43 4.5 5.7 2.2 3.0 2.0 2.7 4.6 5.5 4.6 4.0 0.89 4.5 5.3 5.3 4.7 4.8 3.1 5.0 4.8 5 5.7 6.1 5.4 4.6 83.9 28.6 90.5 68.6 4.5 45 33 45 26 4.3 5.3 404.3 56.2 8 6 3 19 4 4 10 5 18 22 5.5 5.5 6.0 4.8 6.2 5.8 5.1 6.1 5.2 4.7 14 5.0 7 22 19 15 61 27 11 Trend 5.6 5.3 4.9 4.8 3.4 4.7 170.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 105
122. 2 .1: Country/Economy Profiles Azerbaijan 37 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 9.4 Population (millions) 54.0 GDP (US$ billions) 5739.4 GDP per capita (US$) 0.15 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 37 4.6 Rank 46 / 144 39 / 148 38 / 144 40 / 140 37 / 138 49 4.9 Score 4.4 4.5 4.5 4.5 4.6 48 4.2 2nd pillar: Infrastructure 55 4.3  3rd pillar: Macroeconomic environment 39 5.2  4th pillar: Health and primary education 75 5.7 59 4.2 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 78 4.2  6th pillar: Goods market efficiency 50 4.5  7th pillar: Labor market efficiency 26 4.8  8th pillar: Financial market development 97 3.5  9th pillar: Technological readiness 55 4.5  10th pillar: Market size 63 3.9 49 3.8 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 60 4.0  12th pillar: Innovation 44 3.6 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development 7th pillar: Labor market efficiency Azerbaijan Most problematic factors for doing business Corruption Inflation Foreign currency regulations Tax regulations Tax rates Access to financing Inadequately educated workforce Inefficient government bureaucracy Poor work ethic in national labor force Inadequate supply of infrastructure Crime and theft Restrictive labor regulations Poor public health Policy instability Insufficient capacity to innovate Government instability 2nd pillar: Infrastructure 7 6th pillar: Goods market efficiency Eurasia Source: World Economic Forum, Executive Opinion Survey 2016 16.6 10.3 10.3 9.7 9.2 8.7 8.1 7.0 6.0 4.4 2.7 2.2 2.1 1.7 0.6 0.3 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 106 | The Global Competitiveness Report 2016–2017
123. 2 .1: Country/Economy Profiles Azerbaijan The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 48 71 71 60 35 79 85 43 53 17 43 49 41 32 20 39 75 47 91 96 64 36 4.2 4.2 4.1 3.7 4.0 3.8 3.7 3.6 3.5 4.3 4.2 3.8 4.6 5.8 5.5 5.5 4.3 4.2 4.2 4.6 4.1 6.3 2nd pillar: Infrastructure 55 4.3  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 34 50 29 59 36 84 59 81 58 4.8 4.4 4.2 4.3 5.3 100.7 5.1 111.3 18.7 39 5.2 74 37 81 41 65 -3.4 26.6 4.0 36.1 75 5.7 - 1 14 85 80 1 69 101 94 81 68 0.0 5.8 77.0 5.4 0.1 5.6 27.9 70.8 3.8 95.2 78 4.2 32 94 72 80 89 56 69 82 102.8 23.2 3.7 3.9 3.9 4.5 4.3 3.8 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 50 115 74 72 51 78 3 9 41 71 89 80 84 85 97 63 31 4.5 4.5 3.6 3.6 3.9 39.8 2 3.0 4.2 4.4 7.7 4.4 4.4 3.8 33.2 4.7 3.9 26 50 30 22 97 61 34 77 37 27 18 97 51 52 84 101 48 98 88 108 55 53 49 38 33 45 74 54 63 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.8 4.6 5.5 4.5 21.7 4.0 4.5 4.1 4.1 4.3 0.93 3.5 4.5 4.0 3.4 3.3 3.1 4.3 4.0 2 4.5 5.0 4.8 4.8 77.0 19.8 35.1 60.9 3.9 64 65 63 66 3.7 4.6 169.4 35.0 60 80 61 69 68 56 42 46 71 76 4.0 4.4 4.4 3.7 3.5 3.9 4.0 4.3 4.4 3.6 44 12.01 Capacity for innovation 42 68 38 54 14 41 80 Trend 3.6 4.4 3.9 3.8 3.6 4.2 4.4 0.5 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 107
124. 2 .1: Country/Economy Profiles Bahrain 48 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 1.3 Population (millions) 30.4 GDP (US$ billions) 23510.0 GDP per capita (US$) 0.06 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 35 / 144 43 / 148 44 / 144 39 / 140 48 / 138 40 5.0 Score 4.6 4.5 4.5 4.5 4.5 25 5.0 32 5.0 113 3.9  4th pillar: Health and primary education 34 6.2 40 4.5  5th pillar: Higher education and training 44 4.9  6th pillar: Goods market efficiency 22 5.0  7th pillar: Labor market efficiency 35 4.6  8th pillar: Financial market development 43 4.3  9th pillar: Technological readiness 37 5.2  10th pillar: Market size 92 3.2 42 4.0  11th pillar: Business sophistication 33 4.4  12th pillar: Innovation 45 3.6 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Bahrain Most problematic factors for doing business Inefficient government bureaucracy Restrictive labor regulations Poor work ethic in national labor force Inadequately educated workforce Insufficient capacity to innovate Inadequate supply of infrastructure Access to financing Policy instability Corruption Inflation Tax rates Government instability Crime and theft Foreign currency regulations Tax regulations Poor public health 2013-14 4.5 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 48  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Middle East and North Africa Source: World Economic Forum, Executive Opinion Survey 2016 13.1 11.4 10.1 10.0 9.3 9.2 8.8 7.9 7.5 2.6 2.1 2.1 2.0 1.8 1.5 0.5 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 108 | The Global Competitiveness Report 2016–2017
125. 2 .1: Country/Economy Profiles Bahrain The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 25 26 30 22 22 24 32 21 17 10 25 21 27 94 31 23 33 23 28 37 21 94 5.0 5.5 5.0 5.2 4.5 5.6 5.1 4.3 4.3 4.7 4.8 4.7 4.9 4.8 5.4 5.8 5.7 5.1 5.4 5.2 5.1 4.8 2nd pillar: Infrastructure 32 5.0  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 23 25 5.2 5.1 N/Appl. N/Appl. 30 46 72 31 5 49 113 5.1 4.9 177.3 6.2 185.3 20.5 3.9 134 110 1 91 66 -15.1 12.9 1.8 63.3 34 6.2 - n/a S.L. N/Appl. N/Appl. 37 58 1 56 39 48 36 47 44 51 75 25 29 34 39 35 26 14.0 5.9 <0.2 5.9 5.3 76.7 4.7 96.9 4.9 99.4 36.8 4.6 4.8 4.9 5.0 5.0 4.7 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 22 61 33 25 2 5 76 55 32 12 52 18 18 19 96 41 35 5.0 5.2 4.2 4.6 6.1 13.5 7 9.0 4.4 5.0 3.9 5.5 5.5 5.2 33.4 5.1 3.8 35 21 22 26 7 7 22 32 28 20 122 43 25 21 50 23 18 47 20 127 37 36 36 33 5 48 65 4 92 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.6 5.2 5.6 4.4 4.3 5.3 4.7 4.8 4.4 4.6 0.47 4.3 5.1 4.8 4.0 4.7 3.8 5.4 5.5 1 5.2 5.6 5.1 4.9 93.5 18.6 47.2 131.8 3.2 92 82 88 48 2.9 4.2 64.8 42.9 33 53 45 24 45 38 32 37 40 46 4.4 4.6 4.6 4.6 4.0 4.3 4.3 4.5 4.7 4.0 45 12.01 Capacity for innovation 65 75 57 44 18 42 55 Trend 3.6 4.1 3.7 3.4 3.7 4.0 4.4 3.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 109
126. 2 .1: Country/Economy Profiles Bangladesh 106 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 159.9 GDP per capita (US$) 1286.9 GDP (US$ billions) 205.7 GDP (PPP) % world GDP 0.51 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 109 / 144 107 / 140 106 / 138 105 4.0 Score 3.6 3.7 3.7 3.8 3.8 125 3.1 114 2.8 4th pillar: Health and primary education 105 5.2 107 3.6 118 3.0 96 4.1 120 3.6 99 3.5 122 2.7 38 4.6 116 3.2  7th pillar: Labor market efficiency  8th pillar: Financial market development  9th pillar: Technological readiness  10th pillar: Market size Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 107 3.5  12th pillar: Innovation 121 2.8 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development 7th pillar: Labor market efficiency Bangladesh Most problematic factors for doing business Inadequate supply of infrastructure Corruption Access to financing Inefficient government bureaucracy Inadequately educated workforce Tax rates Policy instability Tax regulations Crime and theft Government instability Foreign currency regulations Insufficient capacity to innovate Poor work ethic in national labor force Restrictive labor regulations Inflation Poor public health 2016-17 110 / 148  6th pillar: Goods market efficiency 2015-16 118 / 144 4.8  2014-15 Rank 65 5th pillar: Higher education and training 2013-14 3.8 3rd pillar: Macroeconomic environment  2012-13 106  Subindex B: Efficiency enhancers Edition 6th pillar: Goods market efficiency South Asia Source: World Economic Forum, Executive Opinion Survey 2016 20.4 16.5 9.8 9.6 8.5 4.6 4.4 4.1 4.0 3.9 3.6 3.6 3.1 1.6 1.5 0.9 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 110 | The Global Competitiveness Report 2016–2017
127. 2 .1: Country/Economy Profiles Bangladesh The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 125 107 129 99 117 135 117 117 102 93 118 106 96 116 114 113 119 121 133 117 123 79 3.1 3.8 3.0 2.9 1.9 2.2 2.9 2.2 2.6 3.2 2.8 2.8 3.8 4.2 3.6 3.9 3.1 3.1 3.5 4.2 3.4 5.3 2nd pillar: Infrastructure 114 2.8  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 120 113 72 89 115 58 110 116 127 2.8 2.9 2.7 3.5 3.2 292.6 3.2 83.4 0.5 65 4.8 85 26 112 30 100 -3.9 28.4 6.4 34.0 105 5.2 - 38 19 118 76 1 50 104 89 109 103 440.0 5.6 227.0 5.5 0.1 6.0 30.7 71.6 3.1 90.0 118 3.0 110 109 84 106 110 120 127 124 58.3 13.4 3.5 3.4 3.7 3.2 3.4 3.3 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 96 71 122 120 62 44 108 102 24 56 125 113 74 116 124 110 80 4.1 5.1 3.0 3.0 3.7 31.6 9 19.5 4.4 4.5 13.5 3.8 4.5 3.3 23.4 4.1 3.3 120 3.6 91 69 35 125 41 83 104 97 100 120 99 86 113 65 96 119 115 112 46 122 112 93 112 126 98 115 120 38 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.2 5.0 4.3 31.0 4.3 3.7 3.7 3.0 2.8 0.54 3.5 4.0 3.2 3.7 3.4 2.2 3.9 3.5 6 2.7 4.0 4.2 3.7 14.4 2.4 6.2 13.5 4.6 34 54 34 123 4.6 4.8 576.5 16.6 107 47 78 77 136 110 104 82 89 134 3.5 4.7 4.2 3.6 2.1 3.4 3.1 3.6 4.2 2.6 121 12.01 Capacity for innovation 113 120 118 132 117 72 113 Trend 2.8 3.7 2.9 2.7 2.5 2.7 3.9 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 111
128. 2 .1: Country/Economy Profiles Barbados 72 Key Indicators, 2015 nd Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 0.3 GDP per capita (US$) GDP (US$ billions) 4.4 GDP (PPP) % world GDP 15773.6 0.00 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2016-17 Rank 44 / 144 47 / 148 55 / 144 72 / 138 58 4.7 Score 4.4 4.4 4.4 4.2 44 4.3 30 5.1 129 3.2  4th pillar: Health and primary education 45 6.1 64 4.2  5th pillar: Higher education and training 29 5.2  6th pillar: Goods market efficiency 86 4.2  7th pillar: Labor market efficiency 42 4.5  8th pillar: Financial market development 62 4.1  9th pillar: Technological readiness 31 5.4  10th pillar: Market size 136 1.6 51 3.8  11th pillar: Business sophistication 51 4.2  12th pillar: Innovation 53 3.4 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Barbados Most problematic factors for doing business Poor work ethic in national labor force Inefficient government bureaucracy Tax rates Restrictive labor regulations Access to financing Inadequately educated workforce Insufficient capacity to innovate Foreign currency regulations Inflation Tax regulations Policy instability Inadequate supply of infrastructure Government instability Crime and theft Corruption Poor public health 2013-14 4.2 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 72  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 19.2 16.1 14.0 8.7 8.0 7.4 6.3 5.3 3.9 3.2 2.9 2.1 1.7 1.1 0.5 0.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 112 | The Global Competitiveness Report 2016–2017
129. 2 .1: Country/Economy Profiles Barbados The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 44 41 48 40 55 50 36 90 58 64 69 79 54 27 101 19 35 33 31 67 55 129 4.3 4.9 4.4 4.3 3.4 4.5 4.9 2.8 3.4 3.5 3.6 3.3 4.4 5.9 3.9 6.0 5.5 4.5 5.4 4.9 4.2 3.5 30 5.1 25 49 5.1 4.5 N/Appl. N/Appl. 35 32 90 33 68 6 129 4.9 5.3 76.8 6.0 116.5 54.6 3.2 122 127 1 127 72 -7.7 8.4 0.5 103.0 45 6.1 - n/a S.L. N/Appl. N/Appl. 1 62 102 109 67 58 10 97 29 20 36 22 20 36 54 45 46 0.9 5.9 0.9 4.5 12.0 75.5 5.6 91.0 5.2 109.2 65.4 4.7 5.2 4.8 4.5 4.7 4.2 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 86 68 115 67 86 59 94 94 84 43 129 16 63 90 47 111 52 4.2 5.2 3.1 3.7 3.4 34.7 8 18.0 3.6 4.6 14.2 5.5 4.7 3.7 52.2 4.1 3.6 42 76 87 104 70 74 104 48 36 25 21 62 76 77 98 113 112 24 56 28 31 37 47 34 35 32 10 64 136 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.5 4.3 4.8 3.3 16.0 3.8 3.5 4.6 4.2 4.3 0.93 4.1 4.1 3.6 3.1 3.0 2.3 5.8 4.6 7 5.4 5.5 4.8 4.9 76.1 27.2 247.5 54.9 1.6 136 133 135 46 1.2 2.7 4.6 43.3 51 76 51 70 23 54 54 57 76 58 4.2 4.4 4.5 3.7 4.9 4.0 3.8 4.0 4.3 3.8 53 12.01 Capacity for innovation 85 76 93 83 100 63 25 Trend 3.4 3.9 3.7 3.0 3.3 2.9 4.0 51.9 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 113
130. 2 .1: Country/Economy Profiles Belgium 17 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 11.3 Population (millions) 454.7 GDP (US$ billions) 40106.6 GDP per capita (US$) 0.43 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 17 5.3 Rank 17 / 144 17 / 148 18 / 144 19 / 140 17 / 138 24 5.6 Score 5.2 5.1 5.2 5.2 5.3 21 5.2 2nd pillar: Infrastructure 23 5.5  3rd pillar: Macroeconomic environment 62 4.8  4th pillar: Health and primary education 3 6.7 18 5.2 5 6.0 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 13 5.2  7th pillar: Labor market efficiency 45 4.5  8th pillar: Financial market development 29 4.7  9th pillar: Technological readiness 15 6.0  10th pillar: Market size 34 4.7 14 5.2 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 11 5.4  12th pillar: Innovation 15 5.0 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Belgium Most problematic factors for doing business Tax rates Tax regulations Restrictive labor regulations Inefficient government bureaucracy Inadequate supply of infrastructure Insufficient capacity to innovate Policy instability Access to financing Inadequately educated workforce Inflation Government instability Poor public health Foreign currency regulations Poor work ethic in national labor force Crime and theft Corruption 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 27.7 17.4 17.4 11.1 7.5 4.9 4.5 3.7 2.1 1.0 1.0 0.7 0.6 0.4 0.0 0.0 0 7 14 21 28 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 114 | The Global Competitiveness Report 2016–2017
131. 2 .1: Country/Economy Profiles Belgium The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 21 21 11 17 15 22 17 19 60 89 38 23 31 87 48 45 26 15 20 17 22 57 5.2 5.7 6.0 5.5 4.8 5.8 5.7 4.5 3.3 3.2 4.5 4.6 4.8 4.8 5.1 5.4 5.9 5.6 5.7 5.9 5.0 5.8 2nd pillar: Infrastructure 23 5.5  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 26 35 17 6 19 37 27 71 22 5.1 4.9 4.9 6.3 5.7 671.1 6.2 115.7 40.1 62 4.8 58 52 1 129 21 -2.8 23.3 0.6 106.3 3 6.7 - n/a S.L. N/Appl. N/Appl. 28 13 60 23 23 27 3 17 5 1 22 4 3 3 23 2 14 9.0 6.7 0.3 6.5 3.3 80.6 6.2 98.8 6.0 164.8 73.3 5.6 6.0 6.1 5.4 6.2 5.2 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 13 13 8 14 97 121 11 15 37 15 5 13 16 23 6 11 16 5.2 5.8 5.2 5.1 3.3 58.4 3 4.0 4.2 5.0 1.0 5.6 5.5 5.1 105.7 5.7 4.5 45 37 125 114 87 132 23 10 23 29 47 29 12 11 20 17 19 57 35 86 15 10 21 10 20 11 12 49 34 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.5 4.8 3.9 3.2 19.7 2.7 4.7 6.0 4.6 4.2 0.87 4.7 5.5 5.1 4.9 5.0 3.8 5.2 5.2 4 6.0 6.3 5.4 5.3 85.1 36.8 241.8 66.6 4.7 37 20 37 5 4.4 5.8 494.1 111.6 11 9 5 25 15 13 19 11 12 12 5.4 5.3 5.8 4.6 5.8 5.3 4.8 6.0 5.3 5.1 15 12.01 Capacity for innovation 11 6 13 9 51 22 16 Trend 5.0 5.4 5.9 5.1 5.3 3.5 4.8 108.5 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 115
132. 2 .1: Country/Economy Profiles Benin 124 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 10.9 Population (millions) 8.5 GDP (US$ billions) 780.1 GDP per capita (US$) 0.02 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2015-16 2016-17 124 3.5 Rank 119 / 144 130 / 148 122 / 140 124 / 138 122 3.6 Score 3.6 3.4 3.5 3.5 95 3.5 2nd pillar: Infrastructure 128 2.2  3rd pillar: Macroeconomic environment 111 4.0  4th pillar: Health and primary education 116 4.6 125 3.3 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 117 3.1  6th pillar: Goods market efficiency 126 3.7  7th pillar: Labor market efficiency 50 4.4  8th pillar: Financial market development 106 3.5  9th pillar: Technological readiness 129 2.5  10th pillar: Market size 123 2.6 107 3.3 116 3.4 86 3.2 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Benin Most problematic factors for doing business Access to financing Corruption Tax rates Tax regulations Inefficient government bureaucracy Restrictive labor regulations Poor work ethic in national labor force Inadequate supply of infrastructure Insufficient capacity to innovate Policy instability Inflation Crime and theft Foreign currency regulations Inadequately educated workforce Government instability Poor public health 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 21.4 19.8 16.5 7.4 7.4 4.9 4.6 3.3 2.7 2.6 2.2 1.9 1.8 1.3 1.1 1.0 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 116 | The Global Competitiveness Report 2016–2017
133. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 95 105 83 104 82 132 96 66 68 81 77 81 114 97 82 103 86 97 126 75 108 117 3.5 3.8 3.8 2.9 2.8 2.5 3.4 3.1 3.2 3.3 3.5 3.2 3.5 4.7 4.3 4.2 4.1 3.5 3.6 4.8 3.6 4.0 2nd pillar: Infrastructure 128 2.2  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 127 114 100 85 118 127 134 113 115 2.4 2.9 1.6 3.7 3.2 15.0 1.7 85.6 1.8 111 4.0 123 86 44 45 119 -7.9 16.7 0.3 37.5 116 4.6 - 62 29249.5 62 3.4 78 61.0 128 3.9 106 1.1 125 3.9 129 64.2 125 59.5 120 2.9 62 95.9 117 114 108 131 102 103 122 65 123 3.1 54.4 15.4 2.4 3.5 3.8 3.2 4.3 3.4 Trend Rank / 138  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 126 89 82 127 128 125 76 73 114 133 107 114 96 118 69 67 134 50 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Value 4.4 4.1 5.4 3.6 11.6 3.8 3.3 3.4 2.8 2.9 0.97 106 3.5 105 114 79 130 129 95 110 46 129 126 103 127 131 111 126 136 123 3.7 3.1 3.4 2.6 2.0 4.4 3.6 6 2.5 3.6 4.1 3.3 6.8 0.7 3.0 4.2 2.6 122 124 122 96 2.4 3.3 22.9 25.9 116 116 86 99 94 95 121 137 86 126 3.4 3.9 4.1 3.3 3.0 3.5 2.9 2.4 4.2 3.1 34 78 97 98 83 104 121 Trend 3.7 4.8 3.5 2.7 2.7 63.3 7 12.0 3.2 3.2 9.9 3.7 4.2 3.3 40.8 4.7 2.2 101 33 83 42 75 116 124 111 97 8 86 12.01 Capacity for innovation Benin 3.2 4.7 3.7 3.0 3.1 3.1 3.5 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 117
134. 2 .1: Country/Economy Profiles Bhutan 97 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 0.8 GDP per capita (US$) GDP (US$ billions) 2.2 GDP (PPP) % world GDP 2843.4 0.01 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2015-16 2016-17 Rank 109 / 148 103 / 144 105 / 140 97 / 138 90 4.3 Score 3.7 3.8 3.8 3.9 33 4.7 92 3.4 117 3.8  4th pillar: Health and primary education 97 5.3 108 3.6 98 3.8 101 4.0  5th pillar: Higher education and training  6th pillar: Goods market efficiency  7th pillar: Labor market efficiency 27 4.7  8th pillar: Financial market development 79 3.9  9th pillar: Technological readiness 102 3.2  10th pillar: Market size 133 1.8 94 3.4  11th pillar: Business sophistication 91 3.7  12th pillar: Innovation 99 3.1 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development 7th pillar: Labor market efficiency Bhutan Most problematic factors for doing business Access to financing Restrictive labor regulations Inadequate supply of infrastructure Poor work ethic in national labor force Foreign currency regulations Inadequately educated workforce Tax rates Inefficient government bureaucracy Insufficient capacity to innovate Policy instability Tax regulations Inflation Corruption Poor public health Government instability Crime and theft 2014-15 3.9 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2013-14 97  Subindex B: Efficiency enhancers Edition 6th pillar: Goods market efficiency South Asia Source: World Economic Forum, Executive Opinion Survey 2016 17.0 13.7 11.5 10.3 8.2 7.8 5.9 5.5 5.5 5.1 3.3 3.0 1.4 0.7 0.7 0.4 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 118 | The Global Competitiveness Report 2016–2017
135. 2 .1: Country/Economy Profiles Bhutan The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 33 44 46 27 25 41 38 38 15 48 26 39 56 44 18 15 34 34 60 63 49 96 4.7 4.7 4.5 4.8 4.4 4.8 4.8 3.8 4.5 3.7 4.8 4.0 4.3 5.7 5.7 6.1 5.5 4.5 4.8 5.0 4.2 4.7 2nd pillar: Infrastructure 92 3.4  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 78 80 3.9 3.8 N/Appl. N/Appl. 134 104 135 41 111 109 117 1.9 3.7 3.1 5.8 87.1 2.8 3.8 50 61 119 131 112 -2.4 21.6 7.2 115.7 97 5.3 - 18 44 108 108 1 104 100 100 43 121 6.5 4.5 164.0 4.4 0.1 4.6 27.2 69.5 4.6 85.6 98 3.8 90 113 45 67 75 89 117 67 84.2 10.9 4.3 4.1 4.1 3.8 3.6 3.9 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 101 104 116 68 59 62 94 87 18 102 137 135 125 62 34 90 102 4.0 4.6 3.1 3.7 3.8 35.3 8 15.0 4.7 4.0 22.7 2.8 3.5 4.2 60.9 4.4 3.0 27 26 53 47 18 33 58 57 41 54 71 79 75 74 53 67 55 81 64 86 102 101 113 119 93 91 106 59 133 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.7 5.1 5.2 4.0 8.3 4.4 4.2 4.5 4.0 3.6 0.80 3.9 4.1 3.7 3.9 4.0 3.0 4.6 4.4 4 3.2 4.1 4.0 3.6 39.8 3.6 11.2 56.4 1.8 134 132 133 78 1.5 2.7 6.4 31.9 91 114 110 82 37 93 118 99 128 82 3.7 4.0 3.7 3.6 4.1 3.6 3.0 3.4 3.7 3.6 99 12.01 Capacity for innovation 86 117 80 106 34 123 121 Trend 3.1 3.9 3.0 3.2 3.0 3.7 3.2 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 119
136. 2 .1: Country/Economy Profiles Bolivia 121 Key Indicators, 2015 st Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 11.5 GDP per capita (US$) 2886.2 GDP (US$ billions) 33.2 GDP (PPP) % world GDP 0.07 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 121 3.5 Rank 104 / 144 98 / 148 105 / 144 117 / 140 121 / 138 113 3.8 Score 3.8 3.8 3.8 3.6 3.5 133 2.9 2nd pillar: Infrastructure 102 3.2  3rd pillar: Macroeconomic environment 110 4.0  4th pillar: Health and primary education 101 5.3 120 3.4 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 100 3.8  6th pillar: Goods market efficiency 134 3.4  7th pillar: Labor market efficiency 136 3.1  8th pillar: Financial market development 76 3.9  9th pillar: Technological readiness 111 3.0  10th pillar: Market size 82 3.4 132 2.8 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 126 3.2  12th pillar: Innovation 135 2.5 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Bolivia Most problematic factors for doing business Corruption Inefficient government bureaucracy Restrictive labor regulations Tax rates Tax regulations Inadequately educated workforce Poor work ethic in national labor force Access to financing Policy instability Insufficient capacity to innovate Inadequate supply of infrastructure Poor public health Crime and theft Inflation Government instability Foreign currency regulations 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 19.1 17.2 15.5 11.1 9.2 6.2 5.4 3.6 3.4 3.1 2.9 1.3 1.1 0.5 0.2 0.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 120 | The Global Competitiveness Report 2016–2017
137. 2 .1: Country/Economy Profiles Bolivia The Global Competitiveness Index in detail  1st pillar: Institutions Rank / 138 Value 133 2.9 1.21 Strength of investor protection 0-10 (best) 130 135 136 136 126 137 137 63 127 132 137 118 29 72 72 132 137 48 125 107 115 3.0 2.7 1.8 1.5 2.7 1.6 1.8 3.3 2.5 2.3 1.7 3.4 5.9 4.6 4.9 2.5 2.6 4.9 4.1 3.6 4.2 2nd pillar: Infrastructure 102 3.2 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 114 105 92 126 96 86 64 107 90 3.0 3.1 1.9 2.2 3.9 92.2 5.0 92.2 8.0 110 4.0 117 108 82 52 84 -6.6 13.0 4.1 39.7 101 5.3 - 30 52 97 134 60 134 103 103 121 78 100.4 3.9 120.0 3.5 0.3 3.2 30.6 68.3 2.8 94.1 100 3.8 88 74 120 118 117 119 121 130 84.7 38.4 2.8 3.0 3.5 3.3 3.6 3.1 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency Rank / 138 Value 134 3.4 82 105 116 104 137 135 128 107 106 95 127 123 126 86 128 114 4.9 3.3 3.0 3.2 83.7 15 50.0 3.3 4.0 8.9 3.3 3.6 3.1 36.0 3.8 2.8 136 3.1 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 133 106 136 7.04 Redundancy costs weeks of salary 137 7.05 Effect of taxation on incentives to work 106 129 127 114 117 76 7.01 Cooperation in labor-employer relations 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 76 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.9 4.7 4.5 3.1 4.5 2.7 5.9 4.7 0 111 3.0 82 85 87 84 91 126 115 120 130 135 133 126 120 104 91 135 12.01 Capacity for innovation 3.5 4.4 2.2 not possible 3.4 3.1 3.3 2.7 2.5 0.78 39 29 92 35 80 21 47 136 116 127 126 86 103 91 97 131 131 134 136 110 130 102 Trend 3.9 3.7 3.4 45.1 1.6 19.7 33.8 3.4 3.1 4.0 74.4 29.5 3.2 3.9 3.6 2.9 2.2 2.9 2.9 3.0 4.0 3.5 2.5 3.2 2.4 2.3 2.4 2.8 2.9 0.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 121
138. 2 .1: Country/Economy Profiles Bosnia and Herzegovina 107 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 3.9 Population (millions) 15.8 GDP (US$ billions) 4088.2 GDP per capita (US$) 0.04 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2015-16 2016-17 Rank 88 / 144 87 / 148 111 / 140 107 / 138 94 4.2 Score 3.9 4.0 3.7 3.8 126 3.1 105 3.2 76 4.5  4th pillar: Health and primary education 50 6.0 106 3.6 92 4.0  5th pillar: Higher education and training  6th pillar: Goods market efficiency 129 3.7  7th pillar: Labor market efficiency 125 3.5  8th pillar: Financial market development 101 3.5  9th pillar: Technological readiness 76 3.9  10th pillar: Market size 98 3.1 122 3.0  11th pillar: Business sophistication 115 3.4  12th pillar: Innovation 125 2.7 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development 5th pillar: Higher education and training 7th pillar: Labor market efficiency Bosnia and Herzegovina Most problematic factors for doing business Inefficient government bureaucracy Corruption Government instability Policy instability Tax regulations Tax rates Access to financing Inadequately educated workforce Inadequate supply of infrastructure Crime and theft Restrictive labor regulations Poor work ethic in national labor force Insufficient capacity to innovate Inflation Poor public health Foreign currency regulations 2013-14 3.8 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 107  Subindex B: Efficiency enhancers Edition 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 13.7 13.0 11.1 10.5 8.8 7.9 7.3 5.3 5.3 5.0 3.6 3.3 2.5 1.4 0.8 0.6 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 122 | The Global Competitiveness Report 2016–2017
139. 2 .1: Country/Economy Profiles Bosnia and Herzegovina The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 126 128 132 107 114 100 116 108 133 125 123 123 132 73 96 112 89 124 131 124 137 63 3.1 3.1 2.9 2.8 2.1 3.4 2.9 2.5 1.7 2.6 2.7 2.6 2.9 5.2 4.0 3.9 4.0 3.1 3.5 4.1 2.8 5.7 2nd pillar: Infrastructure 105 3.2  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 104 116 88 129 133 125 80 108 50 3.2 2.9 2.0 2.2 2.6 19.2 4.6 90.2 20.2 76 4.5 29 123 90 64 107 -1.4 10.4 -1.0 45.5 50 6.0 - n/a M.F. N/Appl. N/Appl. 63 7 1 2 37 49 80 35 92 78 58 130 92 124 77 126 133 42.0 6.8 <0.1 6.9 5.1 76.4 3.8 97.5 4.0 88.7 47.6 2.5 3.7 3.4 4.1 3.4 3.1 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 129 119 108 105 122 22 126 133 124 105 66 116 127 115 35 101 135 3.7 4.5 3.3 3.3 2.9 23.3 12 67.0 3.1 4.0 4.8 3.6 3.4 3.3 60.0 4.2 2.1 125 3.5 125 51 112 27 129 130 134 134 135 111 3.7 5.2 3.3 9.2 2.7 3.1 3.1 1.9 1.7 0.63 101 3.5 123 115 118 68 101 112 122 28 76 87 75 122 57 53 61 98 98 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.4 3.0 2.7 4.0 2.5 4.0 3.2 7 3.9 4.4 4.4 3.5 65.1 16.6 56.3 33.5 3.1 97 97 99 50 2.8 3.9 40.5 42.7 115 109 94 108 113 121 105 110 126 85 3.4 4.0 4.0 3.2 2.8 3.2 3.1 3.1 3.7 3.6 125 12.01 Capacity for innovation 134 106 120 117 126 119 62 Trend 2.7 3.1 3.2 2.7 2.8 2.5 3.2 1.9 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 123
140. 2 .1: Country/Economy Profiles Botswana 64 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 2.1 Population (millions) 12.9 GDP (US$ billions) 6041.0 GDP per capita (US$) 0.03 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 64 4.3 Rank 79 / 144 74 / 148 74 / 144 71 / 140 64 / 138 55 4.7 Score 4.1 4.1 4.2 4.2 4.3 37 4.5 2nd pillar: Infrastructure 90 3.5  3rd pillar: Macroeconomic environment 10 6.2  4th pillar: Health and primary education 113 4.7 84 3.9 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 88 4.1  6th pillar: Goods market efficiency 73 4.3  7th pillar: Labor market efficiency 36 4.5  8th pillar: Financial market development 66 4.0  9th pillar: Technological readiness 86 3.6  10th pillar: Market size 105 2.9 90 3.4 100 3.6 84 3.2 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Botswana Most problematic factors for doing business Poor work ethic in national labor force Access to financing Inadequately educated workforce Inadequate supply of infrastructure Inefficient government bureaucracy Restrictive labor regulations Insufficient capacity to innovate Corruption Crime and theft Policy instability Inflation Tax rates Poor public health Government instability Foreign currency regulations Tax regulations 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 16.2 13.3 10.8 10.1 9.5 8.6 8.1 7.9 3.8 2.8 2.8 1.9 1.5 1.4 0.7 0.6 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 124 | The Global Competitiveness Report 2016–2017
141. 2 .1: Country/Economy Profiles Botswana The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 37 36 56 39 38 46 41 44 26 67 29 30 34 34 83 54 50 40 59 52 42 73 4.5 5.0 4.3 4.3 3.9 4.6 4.7 3.6 4.1 3.5 4.7 4.4 4.7 5.8 4.3 5.2 4.8 4.4 4.8 5.0 4.4 5.5 2nd pillar: Infrastructure 90 3.5  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 77 62 51 109 89 132 108 9 92 4.0 4.1 3.2 3.0 4.0 8.3 3.3 169.0 7.8 10 6.2 35 6 41 11 45 -1.6 37.1 3.0 17.8 113 4.7 - 27 38 130 132 137 133 109 113 73 98 45.0 4.8 385.0 3.7 25.2 3.2 34.8 64.4 4.0 91.0 88 4.1 91 89 66 87 107 106 72 48 83.9 27.5 3.7 3.8 3.7 3.6 4.2 4.2 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 73 50 109 63 26 26 108 127 49 45 80 27 60 48 44 124 76 4.3 5.3 3.2 3.7 4.5 25.1 9 48.0 4.1 4.6 6.4 5.3 4.7 4.5 54.0 3.9 3.3 36 69 75 62 96 22 100 43 58 36 20 66 65 83 52 69 72 68 59 68 86 84 76 93 99 101 104 45 105 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.5 4.4 4.9 3.9 21.7 4.6 3.6 4.6 3.7 3.9 0.93 4.0 4.3 3.6 3.9 3.9 2.8 4.8 4.5 5 3.6 4.4 4.4 4.0 27.5 1.8 11.4 67.3 2.9 112 93 107 25 2.5 4.0 34.8 56.4 100 120 105 93 74 107 98 94 102 98 3.6 3.9 3.8 3.4 3.4 3.4 3.2 3.5 4.1 3.4 84 12.01 Capacity for innovation 87 96 86 72 39 107 97 Trend 3.2 3.9 3.5 3.1 3.4 3.6 3.5 0.2 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 125
142. 2 .1: Country/Economy Profiles Brazil 81 Key Indicators, 2015 st Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 204.5 Population (millions) 1772.6 GDP (US$ billions) 8670.0 GDP per capita (US$) 2.81 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 57 / 144 75 / 140 81 / 138 103 4.0 Score 4.4 4.3 4.3 4.1 4.1 120 3.2 72 4.0 4th pillar: Health and primary education 99 5.3 61 4.2 84 4.1  5th pillar: Higher education and training  6th pillar: Goods market efficiency 128 3.7  7th pillar: Labor market efficiency 117 3.7  8th pillar: Financial market development 93 3.6  9th pillar: Technological readiness 59 4.4  10th pillar: Market size 8 5.7 72 3.6 63 4.0 100 3.1 12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Brazil In the context of negative terms of trade shocks and political turmoil, Brazil falls six positions to 81st. This is driven mainly by deteriorating goods, labor, and financial markets. On the institutional side, security has deteriorated and also the perception of the quality of public-sector administration. However, Brazil has improved in areas such as protection of property rights and measures of undue influence, and the country’s bounce back after a sharp drop last year probably reflects the fight against corruption and for judicial independence. The political uncertainty and the government’s sinking finances are still impediments to consolidating a pro-growth competitiveness agenda in the largest economy in Latin America and the Caribbean. Brazil is Most problematic factors for doing business Tax rates Corruption Tax regulations Inefficient government bureaucracy Policy instability Restrictive labor regulations Inadequate supply of infrastructure Inadequately educated workforce Access to financing Government instability Insufficient capacity to innovate Inflation Poor public health Poor work ethic in national labor force Crime and theft Foreign currency regulations 2016-17 56 / 148   2015-16 48 / 144 3.5 11th pillar: Business sophistication 2014-15 Rank 126  2013-14 4.1 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 81  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean agenda in the largest economy in Latin America and the Caribbean. Brazil is currently going through a deep recession. The country's growth rate has decelerated steadily, from an average annual growth rate of 4.5 percent between 2006 and 2010 to 2.1 percent between 2011 and 2014, according to the World Bank, and negative growth projected for 2015 and 2016. Addressing the macroeconomic imbalances facing the country, including large current account and government deficits and increasing inflation, requires improving productivity, starting with the macroeconomic environment and addressing the market distortions affecting how markets work. Source: World Economic Forum, Executive Opinion Survey 2016 15.9 13.6 12.5 11.9 9.2 8.7 7.8 4.8 3.4 3.4 2.8 2.5 1.7 0.9 0.8 0.2 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 126 | The Global Competitiveness Report 2016–2017
143. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 120 80 73 135 138 111 79 121 128 137 125 107 130 10 129 120 111 131 72 89 94 29 3.2 4.1 4.1 1.8 1.3 3.1 3.8 2.2 1.9 1.7 2.7 2.8 3.1 6.2 2.7 3.7 3.4 2.8 4.5 4.7 3.7 6.5 72 4.0 116 111 93 114 95 12 91 54 48 3.0 3.0 1.9 2.9 3.9 3558.3 4.1 126.6 21.4 126 3.5 130 90 126 106 59 -10.3 16.4 9.0 73.7 99 5.3 - 31 5 66 41 92 63 80 73 127 102 111.6 6.3 44.0 6.2 0.6 5.7 14.6 74.4 2.6 90.4 84 4.1 38 60 128 129 99 93 124 62 101.9 46.4 2.6 2.6 3.8 3.8 3.5 4.0 Trend Rank / 138  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Value 128 52 48 73 138 132 122 135 53 119 120 91 104 129 136 95 65 3.7 5.3 3.9 3.6 1.8 69.2 11 83.0 4.0 3.7 11.5 4.2 4.1 3.0 14.0 4.3 3.4 117 3.7 118 119 137 65 138 88 60 47 101 87 93 92 131 83 85 95 38 54 108 59 3.6 3.9 2.6 3.4 3.6 2.5 5.6 4.6 2 4.4 4.4 4.6 4.5 59.1 12.2 43.6 88.6 8 5.7 7 27 7 128 5.8 5.6 3192.4 12.6 63 54 83 44 116 61 62 60 41 39 4.0 4.6 4.1 4.0 2.8 3.8 3.7 3.9 4.7 4.1 92 86 74 90 112 111 51 Trend 3.8 4.1 1.9 15.4 2.2 3.7 4.5 3.8 2.7 0.74 85 65 63 64 62 69 22 100 12.01 Capacity for innovation Brazil 3.1 3.9 3.6 3.2 3.2 2.7 3.4 3.5 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 127
144. 2 .1: Country/Economy Profiles Brunei Darussalam 58 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 0.4 Population (millions) 11.8 GDP (US$ billions) 28236.6 GDP per capita (US$) 0.03 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2016-17 58 4.3 Rank 28 / 144 26 / 148 58 / 138 50 4.8 Score 4.9 4.9 4.3 47 4.2 2nd pillar: Infrastructure 78 3.9  3rd pillar: Macroeconomic environment 61 4.9  4th pillar: Health and primary education 31 6.3 87 3.9 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 65 4.5  6th pillar: Goods market efficiency 68 4.3  7th pillar: Labor market efficiency 47 4.5  8th pillar: Financial market development 92 3.7  9th pillar: Technological readiness 84 3.6  10th pillar: Market size 116 2.7 78 3.5 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 84 3.7  12th pillar: Innovation 78 3.3 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development 5th pillar: Higher education and training 7th pillar: Labor market efficiency Brunei Darussalam Most problematic factors for doing business Inefficient government bureaucracy Access to financing Restrictive labor regulations Poor work ethic in national labor force Inadequate supply of infrastructure Insufficient capacity to innovate Inadequately educated workforce Policy instability Corruption Government instability Inflation Foreign currency regulations Crime and theft Tax rates Poor public health Tax regulations 2nd pillar: Infrastructure 7 6th pillar: Goods market efficiency East Asia and Pacific Source: World Economic Forum, Executive Opinion Survey 2016 17.4 15.1 13.1 12.4 12.2 10.2 6.8 6.5 2.3 1.3 1.0 0.6 0.5 0.3 0.1 0.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 128 | The Global Competitiveness Report 2016–2017
145. 2 .1: Country/Economy Profiles Brunei Darussalam The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 47 67 58 33 34 35 61 51 n/a 83 58 131 92 68 50 40 57 38 73 97 51 108 4.2 4.3 4.3 4.6 4.0 5.1 4.1 3.4 n/a 3.3 3.8 2.3 3.8 5.3 5.0 5.5 4.7 4.5 4.5 4.6 4.2 4.3 78 3.9 67 41 4.1 4.7 N/Appl. N/Appl. 87 84 100 52 85 85 61 3.7 4.1 50.0 5.3 108.1 9.0 4.9 129 25 71 2 n/a -9.8 29.0 -0.4 3.1 n/a 31 6.3 n/a M.F. N/Appl. N/Appl. 79 n/a n/a n/a 55 35 26 39 65 54 80 36 34 54 46 100 52 62.0 n/a n/a n/a 8.6 78.8 5.0 97.3 4.5 99.1 31.7 4.4 4.7 4.4 4.8 3.9 4.2 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 68 111 102 104 13 1 76 81 51 104 35 110 103 81 80 60 103 4.3 4.6 3.3 3.3 4.9 8.7 7 14.0 4.0 4.0 1.7 3.8 4.1 3.8 37.9 4.7 2.9 47 42 25 71 4 15 68 85 52 37 96 92 87 55 120 86 61 91 73 86 84 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.5 4.7 5.6 3.7 3.0 5.0 4.0 4.0 3.7 3.9 0.69 3.7 4.0 4.0 2.6 3.6 3.0 4.4 4.2 4 3.6 80 80 110 45 76 54 134 4.5 4.4 3.7 71.2 8.0 63.1 4.5 116 2.7 124 91 109 22 2.3 4.0 33.2 60.9 84 110 98 49 66 98 85 100 107 n/a 3.7 4.0 3.9 3.9 3.5 3.5 3.4 3.4 4.0 n/a 78 12.01 Capacity for innovation 100 79 102 84 41 80 53 Trend 3.3 3.8 3.7 2.9 3.3 3.6 3.8 3.3 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 129
146. 2 .1: Country/Economy Profiles Bulgaria 50 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 7.2 Population (millions) 49.0 GDP (US$ billions) 6831.7 GDP per capita (US$) 0.12 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 50 4.4 Rank 62 / 144 57 / 148 54 / 144 54 / 140 50 / 138 60 4.7 Score 4.3 4.3 4.4 4.3 4.4 97 3.5 2nd pillar: Infrastructure 70 4.0  3rd pillar: Macroeconomic environment 42 5.2  4th pillar: Health and primary education 57 5.9 44 4.4 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 56 4.6  6th pillar: Goods market efficiency 57 4.4  7th pillar: Labor market efficiency 54 4.4  8th pillar: Financial market development 59 4.1  9th pillar: Technological readiness 38 5.1  10th pillar: Market size 65 3.9 71 3.6 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 79 3.8  12th pillar: Innovation 65 3.4 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Bulgaria Most problematic factors for doing business Corruption Inadequately educated workforce Poor work ethic in national labor force Inadequate supply of infrastructure Tax rates Access to financing Inefficient government bureaucracy Government instability Restrictive labor regulations Policy instability Tax regulations Insufficient capacity to innovate Inflation Crime and theft Poor public health Foreign currency regulations 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 12.9 10.9 9.9 9.4 8.9 8.0 6.5 5.9 5.6 4.7 4.2 3.9 3.6 3.2 1.5 0.9 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 130 | The Global Competitiveness Report 2016–2017
147. 2 .1: Country/Economy Profiles Bulgaria The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 97 115 116 94 86 87 110 97 93 66 95 82 111 107 97 118 105 87 74 71 89 14 3.5 3.7 3.3 3.0 2.7 3.6 3.0 2.7 2.6 3.5 3.1 3.2 3.5 4.5 4.0 3.7 3.5 3.6 4.4 4.9 3.8 7.2 70 4.0 79 94 54 70 77 77 79 46 44 3.9 3.4 3.1 4.0 4.1 126.7 4.6 129.3 23.3 42 5.2 63 49 91 20 58 -2.9 23.5 -1.1 26.9 57 5.9 - n/a M.F. N/Appl. N/Appl. 57 54 1 45 58 59 67 72 56 41 26 91 75 111 52 111 102 27.0 6.0 0.1 6.0 9.3 75.4 4.1 94.9 4.6 100.9 70.8 3.3 4.0 3.6 4.6 3.7 3.5 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 57 107 57 74 42 29 22 94 118 84 5 87 112 77 24 73 82 4.4 4.6 3.8 3.6 4.0 27.0 4 18.0 3.2 4.2 1.0 4.3 3.9 3.8 69.9 4.6 3.3 54 92 71 60 19 66 67 101 125 110 35 59 57 67 75 61 47 107 100 13 38 63 56 44 68 41 23 27 65 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.4 4.2 5.0 3.9 8.6 3.9 4.0 3.7 2.6 2.5 0.89 4.1 4.5 3.8 3.5 4.1 3.1 4.2 3.8 9 5.1 4.9 4.7 4.7 56.7 22.4 145.2 81.3 3.9 71 56 70 19 3.5 4.8 136.9 68.7 79 78 46 78 87 62 76 68 112 119 3.8 4.4 4.6 3.6 3.2 3.8 3.5 3.8 3.9 3.2 65 12.01 Capacity for innovation 59 64 50 74 64 71 45 Trend 3.4 4.3 3.9 3.5 3.4 3.3 3.9 7.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 131
148. 2 .1: Country/Economy Profiles Burundi 135 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 9.4 GDP per capita (US$) 305.8 GDP (US$ billions) 2.9 GDP (PPP) % world GDP 0.01 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 135 3.1 Rank 144 / 144 146 / 148 139 / 144 136 / 140 135 / 138 130 3.3 Score 2.8 2.9 3.1 3.1 3.1 134 2.9 2nd pillar: Infrastructure 134 1.9  3rd pillar: Macroeconomic environment 124 3.5  4th pillar: Health and primary education 110 4.8 137 2.7 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 134 2.3  6th pillar: Goods market efficiency 130 3.6  7th pillar: Labor market efficiency 78 4.1  8th pillar: Financial market development 135 2.6  9th pillar: Technological readiness 137 2.0  10th pillar: Market size 135 1.7 134 2.8 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 135 3.1  12th pillar: Innovation 131 2.5 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Burundi Most problematic factors for doing business Policy instability Corruption Access to financing Inflation Government instability Tax rates Inadequate supply of infrastructure Inefficient government bureaucracy Insufficient capacity to innovate Crime and theft Inadequately educated workforce Foreign currency regulations Poor public health Poor work ethic in national labor force Tax regulations Restrictive labor regulations 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 23.4 18.2 15.3 9.2 4.8 4.8 4.2 3.9 3.7 3.1 3.0 2.5 1.6 1.6 0.5 0.3 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 132 | The Global Competitiveness Report 2016–2017
149. 2 .1: Country/Economy Profiles Burundi The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 134 135 136 131 88 115 135 107 116 102 104 113 133 108 119 124 136 129 115 76 113 96 2.9 2.8 2.7 2.1 2.6 3.0 1.7 2.5 2.3 3.0 3.0 2.7 2.8 4.4 3.3 3.3 2.2 2.9 3.8 4.8 3.5 4.7 2nd pillar: Infrastructure 134 1.9 N/Appl. N/Appl.  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 133 117 123 134 136 129 134 132 124 2.2 2.9 2.3 2.6 1.4 2.1 46.2 0.2 3.5 118 137 105 47 117 -6.9 -4.4 5.6 38.4 110 4.8 - 52 12942.8 64 3.3 99 126.0 126 3.9 106 1.1 121 3.9 126 54.1 131 56.7 125 2.7 64 95.4 134 130 130 125 94 114 136 137 134 2.3 37.9 4.4 2.7 3.6 3.6 1.9 2.6 3.0 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 130 123 85 109 121 81 11 15 135 130 98 134 132 119 92 122 138 3.6 4.4 3.5 3.2 2.9 40.3 3 4.0 2.6 3.4 9.6 2.9 3.2 3.3 34.5 3.9 1.8 78 3.8 5.8 3.2 15.9 3.4 2.9 3.3 2.2 1.8 1.03 135 2.6 137 137 138 132 134 133 118 131 135 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 2.7 3.2 2.3 2.4 2.2 3.1 2.5 2 2.0 2.9 2.9 3.2 4.9 0.0 5.7 7.6 1.7 132 138 132 138 1.7 1.8 7.7 5.0 135 134 132 128 115 120 117 132 134 133 3.1 3.5 3.3 2.9 2.8 3.2 3.0 2.6 3.4 2.8 131 12.01 Capacity for innovation 4.1 114 18 117 68 108 134 128 131 134 4 134 109 131 133 114 131 134 108 133 136 125 115 111 122 121 Trend 2.5 3.2 2.2 2.6 2.8 2.7 3.2 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 133
150. 2 .1: Country/Economy Profiles Cambodia 89 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 15.5 GDP per capita (US$) 1168.0 GDP (US$ billions) 18.2 GDP (PPP) % world GDP 0.05 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 85 / 144 88 / 148 95 / 144 90 / 140 89 / 138 96 4.2 Score 4.0 4.0 3.9 3.9 4.0 104 3.5 106 3.2 50 5.0  4th pillar: Health and primary education 103 5.2 97 3.7 124 2.9  5th pillar: Higher education and training  6th pillar: Goods market efficiency 76 4.2  7th pillar: Labor market efficiency 58 4.4  8th pillar: Financial market development 63 4.1  9th pillar: Technological readiness 98 3.3  10th pillar: Market size 86 3.3 118 3.2  11th pillar: Business sophistication 114 3.5  12th pillar: Innovation 118 2.8 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Cambodia Cambodia ranks 89th, up one position from last year. Among Asian nations, it is the one that has posted the largest GCI score improvement—from 3.5 to 4.0—since 2007. Despite the positive trend, the challenges are many and significant. Cambodia ranks no better than 50th in any of the 12 pillars of the Index; in half of them it sits beyond the 100th mark. Of particular concern is its mediocre performance in three of the four areas that constitute the basic drivers of competitiveness: institutions (104th, up seven), infrastructure (106th, down five), and health and primary education (103rd, down 16). Most problematic factors for doing business Corruption Inadequately educated workforce Inefficient government bureaucracy Tax regulations Poor work ethic in national labor force Tax rates Inadequate supply of infrastructure Policy instability Access to financing Poor public health Inflation Crime and theft Insufficient capacity to innovate Government instability Restrictive labor regulations Foreign currency regulations 2013-14 4.0 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 89  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency East Asia and Pacific (106th, down five), and health and primary education (103rd, down 16). Moreover, Cambodia ranks 124th in higher education and training, its poorest performance in any pillar. It is estimated that secondary education enrollment is around 50 percent. With a median age of 23.8, Cambodia is home to one of the youngest populations in Asia. Ensuring access to quality of education for all should therefore be a policy priority. Source: World Economic Forum, Executive Opinion Survey 2016 18.2 9.6 8.7 7.4 7.0 6.8 6.8 6.3 5.6 4.7 4.7 4.4 4.0 3.2 1.9 0.6 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 134 | The Global Competitiveness Report 2016–2017
151. 2 .1: Country/Economy Profiles Cambodia The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 104 106 130 68 62 114 123 76 104 65 115 111 125 95 84 86 120 74 130 115 112 94 3.5 3.8 3.0 3.5 3.1 3.0 2.8 3.0 2.5 3.5 2.9 2.7 3.3 4.8 4.2 4.4 3.0 3.8 3.5 4.3 3.6 4.8 2nd pillar: Infrastructure 106 3.2  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 95 93 98 76 99 81 106 35 116 3.4 3.4 1.6 3.9 3.9 106.7 3.3 133.0 1.6 50 5.0 14 119 1 29 101 0.1 11.3 1.2 33.6 103 5.2 - 39 43 131 117 92 110 98 105 110 74 502.3 4.5 390.0 4.2 0.6 4.4 24.6 68.2 3.1 94.7 124 2.9 119 104 87 113 128 108 115 100 45.1 15.9 3.4 3.2 3.2 3.6 3.6 3.5 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Rank / 138 Value 76 98 78 54 63 15 76 136 85 86 96 55 80 127 13 79 59 4.2 4.7 3.6 3.8 3.7 21.0 7 87.0 3.6 4.2 9.1 4.7 4.4 3.1 89.7 4.5 3.5 58 70 104 32 85 73 63 98 56 56 43 63 74 79 132 76 66 92 117 4 98 100 99 53 116 115 94 78 86 4.4 4.4 4.4 4.3 19.3 3.8 4.0 3.8 3.7 3.6 0.88 4.1 4.1 3.6 2.3 3.8 2.9 4.4 3.4 11 3.3 4.2 4.2 4.6 19.0 0.5 17.8 42.8 3.3 94 71 94 13 2.9 4.4 54.2 86.7 114 125 125 46 97 104 131 117 85 103 3.5 3.7 3.5 3.9 3.0 3.4 2.8 3.0 4.2 3.4 118 2.8 115 123 84 102 95 124 109 Trend 3.6 2.8 3.1 3.1 2.9 3.1 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 135
152. 2 .1: Country/Economy Profiles Cameroon 119 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 23.1 GDP per capita (US$) 1232.4 GDP (US$ billions) 28.5 GDP (PPP) % world GDP 0.06 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 116 / 144 114 / 140 119 / 138 119 3.6 Score 3.7 3.7 3.7 3.7 3.6 101 3.5 131 2.2 4th pillar: Health and primary education 112 4.7 114 3.5  5th pillar: Higher education and training 105 3.4  6th pillar: Goods market efficiency 109 4.0  7th pillar: Labor market efficiency 76 4.2  8th pillar: Financial market development 91 3.7  9th pillar: Technological readiness 124 2.6  10th pillar: Market size 85 3.3 103 3.3 112 3.5 90 3.2 12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Cameroon Most problematic factors for doing business Corruption Access to financing Tax rates Inadequate supply of infrastructure Tax regulations Inefficient government bureaucracy Poor work ethic in national labor force Inadequately educated workforce Insufficient capacity to innovate Restrictive labor regulations Inflation Foreign currency regulations Poor public health Crime and theft Policy instability Government instability 2016-17 115 / 148   2015-16 112 / 144 4.2 11th pillar: Business sophistication 2014-15 Rank 95  2013-14 3.6 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 119  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 16.8 15.2 11.4 9.8 8.9 8.9 5.6 5.5 4.9 2.9 2.8 2.3 1.9 1.4 1.1 0.4 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 136 | The Global Competitiveness Report 2016–2017
153. 2 .1: Country/Economy Profiles Cameroon The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 101 85 60 126 72 123 111 98 85 78 66 71 67 124 103 95 69 118 119 69 75 108 3.5 4.1 4.3 2.3 3.0 2.9 3.0 2.7 2.8 3.4 3.6 3.4 4.1 3.6 3.9 4.3 4.3 3.2 3.7 4.9 4.0 4.3 2nd pillar: Infrastructure 131 2.2  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 134 130 82 112 130 97 128 127 106 2.2 2.5 2.4 3.0 2.7 58.1 2.1 71.8 4.5 95 4.2 109 92 1 28 96 -5.8 16.0 2.8 33.5 112 4.7 - 60 22834.0 55 3.8 117 220.0 121 4.1 126 4.8 118 4.0 128 57.1 132 55.5 61 4.2 94 91.6 105 113 111 79 63 47 94 67 74 3.4 56.4 11.9 3.6 4.3 4.6 3.8 4.3 3.8 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 109 88 49 90 105 104 41 87 78 131 132 64 83 108 111 94 123 4.0 4.8 3.9 3.4 3.2 48.8 5 15.0 3.7 3.3 14.6 4.5 4.4 3.4 29.7 4.3 2.7 76 100 79 46 88 34 115 125 119 108 44 91 91 103 86 98 103 93 101 46 124 120 110 117 112 131 137 135 85 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.2 4.1 4.9 4.1 19.9 4.4 3.4 3.3 2.6 2.6 0.88 3.7 4.0 3.2 3.3 3.4 2.4 4.4 3.8 6 2.6 3.8 4.0 3.6 20.7 0.1 1.0 4.3 3.3 83 105 86 120 3.2 3.7 72.6 17.8 112 101 104 105 120 99 99 121 51 107 3.5 4.2 3.8 3.2 2.7 3.5 3.2 2.9 4.6 3.4 90 12.01 Capacity for innovation 44 88 85 91 91 110 110 Trend 3.2 4.4 3.6 3.1 3.2 3.0 3.4 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 137
154. 2 .1: Country/Economy Profiles Canada 15 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 35.8 Population (millions) 1552.4 GDP (US$ billions) 43332.0 GDP per capita (US$) 1.44 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 15 5.3 Rank 14 / 144 14 / 148 15 / 144 13 / 140 15 / 138 17 5.7 Score 5.3 5.2 5.2 5.3 5.3 18 5.4 2nd pillar: Infrastructure 15 5.7  3rd pillar: Macroeconomic environment 41 5.2  4th pillar: Health and primary education 9 6.6 6 5.4 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 19 5.5  6th pillar: Goods market efficiency 17 5.1  7th pillar: Labor market efficiency 8 5.3  8th pillar: Financial market development 7 5.3  9th pillar: Technological readiness 21 5.8  10th pillar: Market size 15 5.4 25 4.7 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 24 4.9  12th pillar: Innovation 24 4.6 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Canada Most problematic factors for doing business Insufficient capacity to innovate Inefficient government bureaucracy Access to financing Tax rates Tax regulations Inadequate supply of infrastructure Inadequately educated workforce Policy instability Restrictive labor regulations Poor work ethic in national labor force Inflation Foreign currency regulations Government instability Crime and theft Poor public health Corruption 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 15.8 15.7 15.3 14.8 10.8 7.9 5.1 5.0 4.9 2.8 0.6 0.6 0.3 0.2 0.1 0.1 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 138 | The Global Competitiveness Report 2016–2017
155. 2 .1: Country/Economy Profiles Canada The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 18 14 15 21 20 21 13 31 23 40 20 19 16 67 36 44 10 18 8 16 10 6 5.4 5.9 5.9 5.3 4.7 5.9 6.1 4.0 4.1 3.8 5.0 4.8 5.4 5.3 5.3 5.4 6.3 5.5 6.2 5.9 5.3 7.7 2nd pillar: Infrastructure 15 5.7  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 21 22 18 19 16 11 16 119 14 5.2 5.3 4.8 5.4 5.8 3831.3 6.5 81.9 44.3 41 5.2 39 67 1 120 8 -1.7 20.5 1.1 91.5 9 6.6 - n/a S.L. N/Appl. N/Appl. 8 20 60 27 32 13 13 9 19 18 45 15 13 8 15 9 29 5.2 6.6 0.3 6.3 4.3 82.0 5.5 99.5 5.5 109.9 58.9 5.2 5.3 5.7 5.8 5.8 4.6 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 17 32 28 21 46 16 3 3 21 63 40 15 48 28 94 22 19 5.1 5.4 4.2 4.7 3.9 21.1 2 1.5 4.5 4.5 2.8 5.5 4.9 5.0 34.3 5.5 4.4 8 20 38 12 32 32 13 14 16 10 25 7 26 25 14 24 33 3 7 13 21 15 31 20 14 13 24 60 15 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 5.3 5.2 5.4 4.8 10.0 4.4 4.9 5.8 4.8 5.1 0.91 5.3 5.0 4.7 5.1 4.7 3.4 6.5 6.0 9 5.8 6.1 5.3 5.1 88.5 36.4 135.5 56.3 5.4 15 24 15 79 5.3 5.8 1631.9 31.2 24 29 13 20 39 46 25 18 25 11 4.9 4.8 5.4 4.7 4.1 4.2 4.5 5.5 5.0 5.1 24 12.01 Capacity for innovation 26 17 29 23 67 6 19 Trend 4.6 5.0 5.6 4.2 4.6 3.3 5.4 90.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 139
156. 2 .1: Country/Economy Profiles Cape Verde 110 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 0.5 GDP per capita (US$) 3038.5 GDP (US$ billions) 1.6 GDP (PPP) % world GDP 0.00 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 114 / 144 112 / 140 110 / 138 89 4.3 Score 3.5 3.5 3.7 3.7 3.8 71 4.0 94 3.4 4th pillar: Health and primary education 58 5.9 121 3.4  5th pillar: Higher education and training 79 4.1  6th pillar: Goods market efficiency 97 4.1  7th pillar: Labor market efficiency 116 3.7  8th pillar: Financial market development 112 3.4  9th pillar: Technological readiness 78 3.8  10th pillar: Market size 137 1.4 105 3.3 108 3.5 98 3.1 12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Cape Verde Most problematic factors for doing business Access to financing Tax rates Inefficient government bureaucracy Tax regulations Restrictive labor regulations Inadequately educated workforce Inadequate supply of infrastructure Insufficient capacity to innovate Crime and theft Poor work ethic in national labor force Corruption Poor public health Inflation Foreign currency regulations Government instability Policy instability 2016-17 122 / 148   2015-16 122 / 144 4.0 11th pillar: Business sophistication 2014-15 Rank 107  2013-14 3.8 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 110  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 21.6 17.2 11.3 9.8 7.5 6.9 6.4 4.3 4.0 3.0 3.0 2.2 1.7 0.5 0.5 0.1 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 140 | The Global Competitiveness Report 2016–2017
157. 2 .1: Country/Economy Profiles Cape Verde The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 71 70 91 52 50 58 53 52 44 52 89 76 69 70 95 84 77 59 102 112 90 126 4.0 4.3 3.7 3.9 3.5 4.2 4.3 3.4 3.6 3.6 3.3 3.4 4.1 5.2 4.1 4.5 4.3 4.0 4.0 4.3 3.8 3.7 94 3.4 86 66 3.6 4.1 N/Appl. N/Appl. 95 102 98 107 51 78 107 3.4 3.7 55.6 3.3 127.2 11.5 4.0 100 17 51 132 103 -4.8 31.5 0.1 119.3 58 5.9 - 20 20 100 81 106 74 92 84 60 24 9.7 5.5 138.0 5.3 1.1 5.4 20.7 73.1 4.2 98.2 79 4.1 69 95 58 71 62 59 75 113 92.6 23.0 4.0 4.0 4.3 4.5 4.2 3.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 97 120 68 88 119 66 76 56 48 99 94 78 70 94 43 126 85 4.1 4.4 3.7 3.5 2.9 36.5 7 10.0 4.1 4.0 8.8 4.4 4.6 3.6 54.1 3.8 3.2 116 3.7 107 64 86 121 87 103 116 76 79 101 4.0 5.1 3.6 29.5 3.7 3.5 3.5 3.4 3.2 0.65 112 3.4 118 101 85 107 74 86 78 108 78 79 87 65 90 96 96 38 137 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.5 3.3 3.4 3.2 2.8 4.5 4.1 2 3.8 4.5 4.3 4.4 43.0 3.0 17.1 72.9 1.4 137 135 137 68 1.0 2.4 3.4 34.8 108 130 119 85 67 71 103 106 108 109 3.5 3.6 3.6 3.5 3.5 3.7 3.1 3.2 4.0 3.3 98 12.01 Capacity for innovation 109 93 88 95 59 102 121 Trend 3.1 3.7 3.5 3.1 3.2 3.4 3.5 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 141
158. 2 .1: Country/Economy Profiles Chad 136 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 11.6 GDP per capita (US$) 941.9 GDP (US$ billions) 10.9 GDP (PPP) % world GDP 0.03 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 136 2.9 Rank 139 / 144 148 / 148 143 / 144 139 / 140 136 / 138 135 3.1 Score 3.1 2.9 2.8 3.0 2.9 136 2.7 2nd pillar: Infrastructure 137 1.8  3rd pillar: Macroeconomic environment 105 4.1  4th pillar: Health and primary education 131 3.8 135 2.8 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 137 2.2  6th pillar: Goods market efficiency 137 3.0  7th pillar: Labor market efficiency 111 3.8  8th pillar: Financial market development 133 2.9  9th pillar: Technological readiness 138 1.9  10th pillar: Market size 115 2.8 137 2.6 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 137 2.7  12th pillar: Innovation 134 2.5 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Chad Most problematic factors for doing business Access to financing Corruption Tax rates Inadequate supply of infrastructure Inefficient government bureaucracy Inadequately educated workforce Poor work ethic in national labor force Crime and theft Insufficient capacity to innovate Policy instability Tax regulations Poor public health Inflation Restrictive labor regulations Government instability Foreign currency regulations 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 20.4 16.4 13.1 10.0 6.6 5.3 5.1 4.8 4.3 3.8 3.5 2.1 2.0 1.7 0.9 0.1 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 142 | The Global Competitiveness Report 2016–2017
159. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 136 133 133 137 105 136 130 113 100 95 105 114 135 136 123 128 124 135 136 134 130 120 2.7 3.0 2.8 1.6 2.4 2.1 2.2 2.3 2.6 3.2 3.0 2.7 2.7 2.6 3.0 3.1 2.9 2.7 2.8 3.7 3.3 3.8 2nd pillar: Infrastructure 137 1.8 N/Appl. N/Appl.  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 137 127 131 125 130 131 137 136 105 1.7 2.6 2.0 2.9 10.2 1.9 40.2 0.1 4.1 102 105 66 50 135 -4.9 14.4 3.6 39.3 131 3.8 - 53 13983.9 70 2.8 106 159.0 135 3.4 121 2.5 132 3.4 137 85.0 136 51.6 129 2.5 124 84.4 137 138 134 129 121 131 138 130 136 2.2 22.4 3.4 2.5 2.8 3.1 1.7 3.3 2.9 Trend Rank / 138  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Value 137 137 138 135 129 127 108 131 125 135 131 131 129 137 83 138 131 3.0 3.6 2.1 2.5 2.6 63.5 9 60.0 3.0 3.1 14.3 3.1 3.2 2.4 36.9 3.0 2.3 111 3.8 130 88 105 50 99 136 137 112 90 63 3.5 4.8 3.3 13.0 3.6 2.5 2.4 2.7 3.0 0.82 133 2.9 135 134 126 131 132 130 132 46 138 1.9 2.7 3.1 2.8 2.7 0.1 2.6 1.4 115 2.8 111 118 113 101 2.5 3.4 30.5 24.5 137 104 136 136 129 137 138 138 136 135 2.7 4.1 3.0 2.6 2.4 2.4 2.3 2.0 3.2 2.4 132 127 127 128 123 136 121 Trend 2.7 2.4 2.5 2.6 2.0 3.2 2.8 6 138 137 136 137 128 130 138 134 12.01 Capacity for innovation Chad 2.5 3.2 2.6 2.6 2.6 2.6 2.7 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 143
160. 2 .1: Country/Economy Profiles Chile 33 Key Indicators, 2015 rd Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 18.0 Population (millions) 240.2 GDP (US$ billions) 13340.9 GDP per capita (US$) 0.37 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 33 4.6 Rank 33 / 144 34 / 148 33 / 144 35 / 140 33 / 138 37 5.1 Score 4.6 4.6 4.6 4.6 4.6 35 4.5 2nd pillar: Infrastructure 44 4.7  3rd pillar: Macroeconomic environment 32 5.4  4th pillar: Health and primary education 71 5.7 31 4.8 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 28 5.2  6th pillar: Goods market efficiency 44 4.6  7th pillar: Labor market efficiency 52 4.4  8th pillar: Financial market development 23 4.8  9th pillar: Technological readiness 39 5.1  10th pillar: Market size 44 4.5 56 3.7 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 56 4.1  12th pillar: Innovation 63 3.4 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Chile Most problematic factors for doing business Inefficient government bureaucracy Restrictive labor regulations Inadequately educated workforce Insufficient capacity to innovate Tax regulations Tax rates Policy instability Access to financing Crime and theft Poor work ethic in national labor force Inadequate supply of infrastructure Poor public health Corruption Inflation Government instability Foreign currency regulations 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 17.2 15.8 11.6 10.2 10.0 6.9 6.0 4.7 4.6 4.3 3.5 2.1 1.7 0.6 0.5 0.2 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 144 | The Global Competitiveness Report 2016–2017
161. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 35 33 52 43 75 31 37 53 21 68 57 47 33 65 86 46 25 49 29 38 36 36 4.5 5.3 4.3 4.2 2.9 5.4 4.8 3.4 4.2 3.5 3.9 3.8 4.7 5.3 4.2 5.4 5.9 4.2 5.4 5.2 4.5 6.3 2nd pillar: Infrastructure 44 4.7  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 44 30 80 34 47 36 37 44 55 4.5 5.0 2.4 4.9 4.9 672.8 5.9 129.5 19.2 32 5.4 49 70 87 8 23 -2.3 20.4 4.3 17.1 71 5.7 - n/a S.L. N/Appl. N/Appl. 40 19 60 47 48 17 111 85 28 44 6 88 108 26 60 32 59 16.0 6.6 0.3 6.0 7.0 81.5 3.0 93.0 5.2 100.4 86.6 3.4 3.2 5.2 4.4 5.0 4.0 Trend Rank / 138  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 44 62 128 36 64 33 76 28 17 10 45 17 20 25 101 82 32 52 57 5 122 112 13 51 39 15 24 91 23 17 20 23 20 42 9 14 86 39 32 34 18 60 57 26 58 44 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Value 4.4 4.5 6.1 3.0 27.4 5.1 4.3 4.7 4.9 4.3 0.72 4.8 5.3 4.8 4.8 4.8 3.2 6.4 5.7 4 5.1 5.6 5.1 5.1 64.3 15.2 129.8 57.6 4.5 4.3 5.0 422.4 30.4 56 74 41 94 86 60 44 43 31 70 4.1 4.4 4.7 3.4 3.2 3.8 4.0 4.3 4.9 3.7 89 43 108 64 118 23 44 Trend 4.6 5.2 2.9 4.1 3.7 28.9 7 5.5 4.7 5.1 3.2 5.5 5.4 5.0 31.8 4.5 3.8 41 46 42 83 63 12.01 Capacity for innovation Chile 3.4 3.9 4.3 2.9 3.5 2.7 4.7 7.5 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 145
162. 2 .1: Country/Economy Profiles China 28 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 1374.6 Population (millions) 10982.8 GDP (US$ billions) 7989.7 GDP per capita (US$) 17.08 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 29 / 144 29 / 148 28 / 144 28 / 140 28 / 138 30 5.3 Score 4.8 4.8 4.9 4.9 5.0 45 4.3 42 4.7 8 6.2  4th pillar: Health and primary education 41 6.2 30 4.8  5th pillar: Higher education and training 54 4.6  6th pillar: Goods market efficiency 56 4.4  7th pillar: Labor market efficiency 39 4.5  8th pillar: Financial market development 56 4.2  9th pillar: Technological readiness 74 4.0  10th pillar: Market size 1 7.0 29 4.2  11th pillar: Business sophistication 34 4.4  12th pillar: Innovation 30 4.0 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development China China retains its 28th rank for the third year in row. Its overall score improves, thanks to progress in some of the more sophisticated areas of competitiveness that contribute to shaping the country’s innovation ecosystem. These include higher education (54th, up 14), innovation (30th, up one), and business sophistication (34th, up four). This bodes well for the future while China transitions to a new normal, where growth will need to be increasingly driven by innovation. Yet China still lags behind in technological readiness (74th, unchanged) despite a significant improvement in all components of this category since last year. A more widespread adoption of technology by business and the population at large will increase productivity and create a more fertile innovation ecosystem. The gains posted in these categories are partially offset by a worsening fiscal situation—the budget Most problematic factors for doing business Access to financing Policy instability Inefficient government bureaucracy Inflation Corruption Tax rates Tax regulations Inadequate supply of infrastructure Insufficient capacity to innovate Poor work ethic in national labor force Inadequately educated workforce Government instability Restrictive labor regulations Foreign currency regulations Poor public health Crime and theft 2013-14 5.0 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 28  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency East Asia and Pacific categories are partially offset by a worsening fiscal situation—the budget deficit more than doubled between 2014 and 2015, to reach 2.7 percent of GDP—but China still ranks a strong 8th in the macroeconomic pillar. In addition, little progress has been made over the past year in two areas that are critical for accelerating the transition to a new growth model. First, goods market efficiency (56th, up two) is undermined by various distortions, including the lack of competition caused by high barriers to entry for foreign firms (113th) and new businesses—it takes over a month to start up a business. Second, inefficiencies and instability characterize the financial sector (56th, down two)—the result of inefficiencies, non-performing loans, lack of competition, and suboptimal allocation of capital. Source: World Economic Forum, Executive Opinion Survey 2016 10.8 8.8 8.7 8.4 7.9 7.8 7.5 6.8 6.7 5.0 4.8 4.0 4.0 4.0 2.8 1.9 0 3 6 9 12 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 146 | The Global Competitiveness Report 2016–2017
163. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 45 50 62 44 30 54 56 25 24 21 46 46 40 83 56 78 56 52 68 116 48 108 4.3 4.5 4.3 4.1 4.2 4.3 4.2 4.1 4.1 4.1 4.1 3.8 4.6 5.0 4.9 4.7 4.7 4.1 4.6 4.3 4.3 4.3 42 4.7 43 4.5 39 4.8 14 5.1 43 4.6 49 4.8 2 17363.7 56 5.3 105 93.2 64 16.5 8 6.2 57 2 1 61 26 -2.7 46.0 1.4 43.9 41 6.2 - 7 32 83 95 1 87 57 54 47 1 0.0 5.0 68.0 4.9 <0.1 5.0 9.2 75.8 4.5 100.0 54 4.6 65 69 43 50 61 50 61 41 94.3 39.4 4.3 4.5 4.3 4.6 4.4 4.3 Trend Rank / 138  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 56 36 23 29 34 131 122 121 22 78 118 68 82 55 132 68 21 39 47 82 25 112 60 27 58 33 23 56 56 64 45 40 36 14 79 57 86 74 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Value Trend 4.4 5.4 4.4 4.3 4.1 67.8 11 31.4 4.5 4.3 11.1 4.5 4.4 4.4 19.6 4.6 4.3 4.5 4.6 4.9 4.5 27.4 4.0 4.6 4.5 4.2 4.4 0.84 4.2 4.3 4.2 4.2 4.5 4.1 4.6 4.5 4 4.0 81 60 59 77 49 113 63 4.5 4.6 4.5 50.3 18.6 6.5 56.0 1 7.0 34 16 57 21 43 29 29 44 62 48 4.4 5.1 4.4 4.7 4.0 4.4 4.3 4.3 4.5 3.9 1 7.0 1 7.0 1 19392.4 105 23.3 30 12.01 Capacity for innovation China 45 40 25 30 10 30 33 4.0 4.4 4.5 4.4 4.3 4.4 4.7 15.2 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 147
164. 2 .1: Country/Economy Profiles Colombia 61 Key Indicators, 2015 st Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 48.2 Population (millions) 293.2 GDP (US$ billions) 6083.5 GDP per capita (US$) 0.59 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 61 4.3 Rank 69 / 144 69 / 148 66 / 144 61 / 140 61 / 138 85 4.3 Score 4.2 4.2 4.2 4.3 4.3 112 3.3 2nd pillar: Infrastructure 84 3.7  3rd pillar: Macroeconomic environment 53 5.0  4th pillar: Health and primary education 90 5.4 48 4.4 70 4.4 100 4.1 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency  7th pillar: Labor market efficiency 81 4.1  8th pillar: Financial market development 25 4.8  9th pillar: Technological readiness 64 4.3  10th pillar: Market size 35 4.7 63 3.6 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 59 4.0  12th pillar: Innovation 79 3.3 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Colombia Most problematic factors for doing business Tax rates Corruption Inadequate supply of infrastructure Inefficient government bureaucracy Tax regulations Inadequately educated workforce Restrictive labor regulations Crime and theft Access to financing Inflation Policy instability Poor work ethic in national labor force Insufficient capacity to innovate Poor public health Government instability Foreign currency regulations 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 21.1 16.2 9.0 8.7 8.6 6.0 5.4 5.3 5.2 4.5 3.0 2.4 2.1 0.9 0.9 0.8 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 148 | The Global Competitiveness Report 2016–2017
165. 2 .1: Country/Economy Profiles Colombia The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 112 82 66 129 128 94 113 112 96 124 111 104 78 133 127 132 113 104 58 31 70 14 3.3 4.1 4.2 2.2 1.7 3.5 2.9 2.3 2.6 2.6 2.9 2.9 4.0 2.9 2.8 2.9 3.4 3.5 4.8 5.4 4.1 7.2 84 3.7 113 120 104 83 76 35 70 70 71 3.0 2.8 1.4 3.7 4.2 693.7 4.8 115.7 14.4 53 5.0 62 81 103 72 43 -2.8 18.0 5.0 49.4 90 5.4 - 33 26 60 82 76 90 77 81 101 104 165.3 5.3 33.0 5.3 0.4 4.9 13.6 74.0 3.3 89.8 70 4.4 56 56 98 112 66 76 80 98 98.8 51.3 3.3 3.2 4.2 4.1 4.1 3.6 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 100 24 96 69 130 133 94 67 131 94 79 65 76 89 126 35 81 4.1 5.6 3.4 3.7 2.6 69.7 8 11.0 2.9 4.1 6.4 4.5 4.5 3.7 22.2 5.1 3.3 81 48 43 101 72 107 87 78 72 84 85 25 61 94 72 62 69 25 48 1 64 82 84 70 69 67 33 82 35 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.1 4.6 5.3 3.4 16.7 3.4 3.7 4.1 3.5 3.1 0.75 4.8 4.4 3.5 3.5 4.1 2.8 5.8 4.7 12 4.3 4.4 4.3 4.4 55.9 11.2 105.0 41.0 4.7 31 53 31 126 4.7 4.9 667.4 14.6 59 26 40 80 77 51 70 76 59 53 4.0 4.9 4.8 3.6 3.3 4.1 3.6 3.7 4.5 3.9 79 12.01 Capacity for innovation 91 69 101 48 80 75 61 Trend 3.3 3.9 3.8 2.9 3.7 3.1 3.9 1.9 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 149
166. 2 .1: Country/Economy Profiles Congo, Democratic Rep. 129 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 81.7 GDP per capita (US$) 475.9 GDP (US$ billions) 38.9 GDP (PPP) % world GDP 0.06 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 3.3 Rank 129 / 138 128 3.3 Score 3.3 117 3.3 138 1.7 3rd pillar: Macroeconomic environment 64 4.8  4th pillar: Health and primary education 135 3.5 127 3.3  5th pillar: Higher education and training 128 2.8  6th pillar: Goods market efficiency 127 3.7  7th pillar: Labor market efficiency 53 4.4  8th pillar: Financial market development 117 3.2  9th pillar: Technological readiness 134 2.3  10th pillar: Market size 95 3.2 125 3.0 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 132 3.2  12th pillar: Innovation 115 2.8 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development 5th pillar: Higher education and training 6th pillar: Goods market efficiency 7th pillar: Labor market efficiency Congo, Democratic Rep. Most problematic factors for doing business Access to financing Corruption Inadequate supply of infrastructure Tax rates Tax regulations Policy instability Inadequately educated workforce Restrictive labor regulations Poor work ethic in national labor force Government instability Insufficient capacity to innovate Inefficient government bureaucracy Poor public health Inflation Crime and theft Foreign currency regulations 2016-17 129  Subindex B: Efficiency enhancers Edition Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 18.4 16.7 13.4 12.1 8.7 7.9 4.5 4.3 3.8 2.6 2.5 2.2 1.2 0.8 0.6 0.5 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 150 | The Global Competitiveness Report 2016–2017
167. 2 .1: Country/Economy Profiles Congo, Democratic Rep. The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 117 114 106 113 102 131 131 89 n/a 53 85 120 102 59 89 88 100 128 132 84 85 133 3.3 3.7 3.5 2.6 2.4 2.6 2.2 2.8 n/a 3.6 3.3 2.6 3.7 5.4 4.2 4.3 3.7 3.0 3.5 4.7 3.8 3.3 2nd pillar: Infrastructure 138 1.7  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 136 137 101 124 127 108 136 132 138 1.9 2.1 1.5 2.3 2.8 38.3 1.6 53.0 0.0 64 4.8 3 129 1 12 134 1.9 5.5 1.0 18.8 135 3.5 - 61 28046.0 n/a n/a 128 325.0 n/a n/a 104 1.0 n/a n/a 135 74.5 126 58.7 86 3.6 115 87.0 128 122 125 113 84 108 130 119 116 2.8 43.5 6.6 3.0 3.8 3.7 2.9 3.6 3.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Rank / 138 Value 127 102 106 93 100 118 54 67 127 136 112 51 65 110 119 103 136 3.7 4.7 3.3 3.4 3.2 54.6 6 11.0 3.0 2.9 10.2 4.8 4.7 3.4 24.7 4.2 2.0 53 4.4 88 58 102 35 23 137 93 121 96 6 4.2 5.2 3.4 10.3 4.6 2.4 3.8 2.6 2.9 0.99 117 3.2 129 127 134 119 96 126 97 46 134 130 125 124 136 137 138 129 95 3.2 2.8 2.3 3.0 2.5 3.4 3.8 6 2.3 3.4 3.7 3.5 3.8 0.0 0.4 8.5 3.2 88 110 90 122 3.0 3.6 62.9 16.6 132 122 114 116 127 136 137 136 39 n/a 3.2 3.8 3.7 3.0 2.4 2.5 2.3 2.4 4.8 n/a 115 2.8 106 107 114 113 130 103 121 Trend 3.7 3.2 2.8 2.9 2.4 3.5 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 151
168. 2 .1: Country/Economy Profiles Costa Rica 54 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 4.8 Population (millions) 52.9 GDP (US$ billions) 10936.2 GDP per capita (US$) 0.07 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 54 4.4 Rank 57 / 144 54 / 148 51 / 144 52 / 140 54 / 138 57 4.7 Score 4.3 4.3 4.4 4.3 4.4 60 4.1 2nd pillar: Infrastructure 67 4.1  3rd pillar: Macroeconomic environment 82 4.4  4th pillar: Health and primary education 35 6.2 52 4.3 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 35 5.1  6th pillar: Goods market efficiency 78 4.2  7th pillar: Labor market efficiency 68 4.3  8th pillar: Financial market development 40 4.4  9th pillar: Technological readiness 45 4.8  10th pillar: Market size 83 3.3 45 3.9 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 41 4.3  12th pillar: Innovation 48 3.6 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Costa Rica Most problematic factors for doing business Inefficient government bureaucracy Inadequate supply of infrastructure Tax rates Access to financing Corruption Tax regulations Restrictive labor regulations Insufficient capacity to innovate Poor work ethic in national labor force Policy instability Inadequately educated workforce Foreign currency regulations Inflation Crime and theft Government instability Poor public health 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 22.9 16.1 13.4 10.3 8.0 7.0 5.6 4.5 2.2 2.0 2.0 1.9 1.6 1.6 0.5 0.3 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 152 | The Global Competitiveness Report 2016–2017
169. 2 .1: Country/Economy Profiles Costa Rica The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 60 48 43 78 76 62 31 65 113 126 87 43 46 23 85 67 63 57 55 64 66 129 4.1 4.6 4.5 3.3 2.9 4.2 5.2 3.1 2.4 2.6 3.3 3.9 4.5 5.9 4.2 5.0 4.5 4.0 4.9 4.9 4.1 3.5 67 4.1 106 125 97 102 59 74 44 20 63 3.2 2.7 1.8 3.2 4.6 163.5 5.6 150.7 17.2 82 4.4 110 98 1 58 60 -5.8 15.1 0.8 42.4 35 6.2 - 14 4 30 29 60 49 54 32 41 58 0.2 6.5 11.0 6.4 0.3 6.0 8.5 79.4 4.7 96.1 35 5.1 10 53 27 59 28 47 25 39 120.3 53.0 4.6 4.4 5.2 4.7 5.3 4.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 78 49 42 65 116 120 108 106 111 115 50 35 44 88 95 45 61 4.2 5.3 4.0 3.7 3.0 58.0 9 24.0 3.2 3.8 3.6 5.1 5.0 3.7 34.3 5.0 3.5 68 24 100 38 79 68 36 45 27 44 109 40 72 75 111 99 109 33 42 8 45 60 41 16 63 66 57 16 83 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.3 5.2 4.5 4.2 18.7 3.9 4.5 4.6 4.5 3.8 0.64 4.4 4.1 3.7 2.8 3.3 2.3 5.7 4.8 10 4.8 4.9 4.9 5.2 59.8 11.2 61.7 95.5 3.3 86 85 83 75 3.1 4.1 74.9 32.7 41 69 50 50 28 37 81 39 57 28 4.3 4.5 4.5 3.9 4.5 4.3 3.4 4.5 4.5 4.4 48 12.01 Capacity for innovation 40 37 53 65 124 24 58 Trend 3.6 4.5 4.6 3.5 3.5 2.6 4.7 2.4 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 153
170. 2 .1: Country/Economy Profiles Côte d'Ivoire 99 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 23.7 GDP per capita (US$) 1314.7 GDP (US$ billions) 31.2 GDP (PPP) % world GDP 0.07 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 99 3.9 Rank 131 / 144 126 / 148 115 / 144 91 / 140 99 / 138 104 4.0 Score 3.4 3.5 3.7 3.9 3.9 77 3.8 2nd pillar: Infrastructure 87 3.6  3rd pillar: Macroeconomic environment 66 4.7  4th pillar: Health and primary education 132 3.7 96 3.7 109 3.4 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 92 4.2  7th pillar: Labor market efficiency 75 4.2  8th pillar: Financial market development 75 3.9  9th pillar: Technological readiness 94 3.4  10th pillar: Market size 80 3.4 75 3.5 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 89 3.7  12th pillar: Innovation 61 3.4 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Côte d'Ivoire Most problematic factors for doing business Access to financing Corruption Inefficient government bureaucracy Tax rates Inadequate supply of infrastructure Inadequately educated workforce Crime and theft Inflation Restrictive labor regulations Insufficient capacity to innovate Tax regulations Poor work ethic in national labor force Policy instability Government instability Foreign currency regulations Poor public health 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 22.0 17.5 15.2 14.8 6.3 4.7 4.6 3.0 2.7 2.1 2.0 2.0 1.6 1.1 0.3 0.1 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 154 | The Global Competitiveness Report 2016–2017
171. 2 .1: Country/Economy Profiles Côte d'Ivoire The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 77 72 90 82 48 88 87 62 39 27 41 63 50 84 106 127 87 73 98 80 68 120 3.8 4.2 3.7 3.3 3.6 3.6 3.6 3.2 3.7 4.0 4.2 3.6 4.4 4.9 3.8 3.2 4.1 3.8 4.1 4.8 4.1 3.8 87 3.6 60 42 71 28 38 93 100 62 118 4.2 4.7 2.7 5.2 5.2 65.5 3.6 119.3 1.3 66 4.7 70 87 1 34 93 -3.2 16.4 1.2 34.7 132 3.7 - 67 37459.8 40 4.6 109 165.0 119 4.1 124 3.5 107 4.5 132 66.6 135 51.6 69 4.1 131 74.7 109 125 119 49 43 51 98 46 37 3.4 40.1 8.7 4.1 4.6 4.5 3.7 4.7 4.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 92 95 79 76 118 116 22 42 19 128 105 46 57 68 76 88 104 4.2 4.8 3.5 3.6 2.9 51.9 4 7.0 4.6 3.4 9.9 5.0 4.8 4.1 38.7 4.4 2.9 75 58 67 65 53 29 82 63 61 48 102 75 104 90 44 126 77 66 67 46 94 59 69 60 110 117 120 84 80 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.2 4.5 5.0 3.8 13.1 4.4 3.8 4.3 3.6 3.7 0.65 3.9 3.7 3.5 4.1 2.7 2.7 4.9 4.4 6 3.4 4.9 4.5 4.5 21.0 0.5 5.2 40.4 3.4 84 81 81 64 3.2 4.2 78.6 35.4 89 96 71 131 99 74 123 83 53 83 3.7 4.2 4.3 2.8 3.0 3.7 2.9 3.6 4.6 3.6 61 12.01 Capacity for innovation 58 45 45 86 70 77 107 Trend 3.4 4.3 4.2 3.6 3.3 3.2 3.9 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 155
172. 2 .1: Country/Economy Profiles Croatia 74 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 4.2 Population (millions) 48.9 GDP (US$ billions) 11572.9 GDP per capita (US$) 0.08 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 74 4.1 Rank 81 / 144 75 / 148 77 / 144 77 / 140 74 / 138 68 4.6 Score 4.0 4.1 4.1 4.1 4.1 89 3.6 2nd pillar: Infrastructure 46 4.6  3rd pillar: Macroeconomic environment 84 4.4  4th pillar: Health and primary education 66 5.8 68 4.1 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 49 4.7  6th pillar: Goods market efficiency 95 4.1  7th pillar: Labor market efficiency 100 3.9  8th pillar: Financial market development 95 3.6  9th pillar: Technological readiness 47 4.7  10th pillar: Market size 78 3.5 92 3.4 80 3.8 103 3.1 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Croatia Most problematic factors for doing business Inefficient government bureaucracy Tax rates Policy instability Tax regulations Corruption Access to financing Restrictive labor regulations Insufficient capacity to innovate Inadequately educated workforce Poor work ethic in national labor force Inadequate supply of infrastructure Crime and theft Government instability Poor public health Inflation Foreign currency regulations 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 20.8 15.3 14.2 11.7 9.4 6.2 5.9 5.4 3.7 3.5 1.4 1.1 0.9 0.5 0.0 0.0 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 156 | The Global Competitiveness Report 2016–2017
173. 2 .1: Country/Economy Profiles Croatia The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 89 109 87 98 113 67 104 102 121 135 134 130 120 13 19 56 49 88 85 91 96 29 3.6 3.8 3.8 2.9 2.1 4.0 3.1 2.6 2.2 2.0 2.2 2.4 3.4 6.2 5.6 5.1 4.9 3.6 4.3 4.6 3.7 6.5 46 4.6 48 18 68 45 78 79 40 94 31 4.5 5.5 2.7 4.6 4.1 112.2 5.8 103.8 34.7 84 4.4 89 53 72 118 67 -4.0 22.7 -0.5 87.7 66 5.8 - n/a M.F. N/Appl. N/Appl. 31 17 1 6 29 41 53 108 49 55 27 105 39 83 81 73 122 12.0 6.7 <0.1 6.8 3.6 77.3 4.3 88.7 4.7 99.0 69.5 3.1 4.6 4.0 4.0 4.2 3.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 95 92 107 98 132 13 76 73 136 13 5 101 109 51 54 74 121 4.1 4.8 3.3 3.4 2.5 20.0 7 12.0 2.5 5.0 1.0 4.1 3.9 4.4 49.7 4.6 2.7 100 3.9 132 66 128 63 134 66 92 132 133 49 95 114 112 104 95 106 67 98 68 47 65 85 114 48 39 49 33 78 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.5 5.1 2.7 15.1 2.7 4.0 3.9 2.2 1.9 0.87 3.6 3.6 3.2 3.0 3.4 2.3 4.9 3.8 5 4.7 4.9 4.3 3.7 69.8 23.2 72.4 75.4 3.5 80 69 75 32 3.2 4.4 91.1 52.0 80 75 49 124 62 87 77 73 106 97 3.8 4.4 4.5 3.0 3.6 3.6 3.5 3.7 4.0 3.4 103 12.01 Capacity for innovation 122 61 79 114 129 91 41 Trend 3.1 3.5 4.0 3.2 2.9 2.5 3.7 9.7 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 157
174. 2 .1: Country/Economy Profiles Cyprus 83 Key Indicators, 2015 rd Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 0.9 Population (millions) 19.3 GDP (US$ billions) 22587.5 GDP per capita (US$) 0.03 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 58 / 144 58 / 148 58 / 144 65 / 140 83 / 138 67 4.6 Score 4.3 4.3 4.3 4.2 4.0 62 4.0 50 4.4 115 3.8  4th pillar: Health and primary education 36 6.2 71 4.1  5th pillar: Higher education and training 55 4.6  6th pillar: Goods market efficiency 33 4.7  7th pillar: Labor market efficiency 48 4.4  8th pillar: Financial market development 120 3.2  9th pillar: Technological readiness 51 4.6  10th pillar: Market size 114 2.8 68 3.6  11th pillar: Business sophistication 62 4.0  12th pillar: Innovation 85 3.2 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Cyprus Most problematic factors for doing business Access to financing Corruption Inefficient government bureaucracy Restrictive labor regulations Inadequately educated workforce Tax rates Insufficient capacity to innovate Inadequate supply of infrastructure Poor work ethic in national labor force Government instability Policy instability Tax regulations Foreign currency regulations Poor public health Inflation Crime and theft 2013-14 4.0 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 83  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 24.9 14.7 13.8 8.6 7.9 6.8 6.4 4.9 4.7 3.8 1.4 0.9 0.7 0.5 0.1 0.1 0 7 14 21 28 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 158 | The Global Competitiveness Report 2016–2017
175. 2 .1: Country/Economy Profiles Cyprus The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 62 69 59 65 103 48 42 103 57 33 98 74 58 53 33 62 64 79 87 130 87 25 4.0 4.3 4.3 3.6 2.4 4.5 4.7 2.6 3.4 4.0 3.1 3.4 4.3 5.5 5.3 5.1 4.5 3.7 4.3 4.0 3.8 6.7 50 4.4 54 34 4.4 4.9 N/Appl. N/Appl. 61 44 66 54 103 38 115 4.3 4.9 212.2 5.3 95.4 27.8 3.8 38 124 102 130 85 -1.7 10.2 -1.5 108.7 36 6.2 - n/a M.F. N/Appl. N/Appl. 9 39 1 51 11 30 55 48 55 50 52 52 66 101 62 57 83 5.3 6.2 <0.1 6.0 2.5 80.1 4.3 96.9 4.6 99.4 53.1 4.1 4.1 3.8 4.4 4.5 3.7 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 33 43 41 44 20 23 54 48 63 34 5 104 62 47 38 64 42 4.7 5.3 4.0 4.0 4.6 24.4 6 8.0 3.8 4.7 1.0 4.0 4.7 4.5 56.9 4.7 3.7 48 4.4 4.7 3.7 5.7 4.5 3.7 3.5 3.5 3.0 0.86 120 3.2 51 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.8 3.5 2.3 2.6 2.2 2.9 3.1 7 4.6 67 101 88 43 42 40 65 4.8 4.2 4.1 71.7 22.4 89.8 54.8 114 2.8 119 101 116 28 2.4 3.8 28.1 54.9 62 45 62 58 38 41 97 66 93 45 4.0 4.7 4.3 3.8 4.1 4.2 3.3 3.8 4.1 4.0 85 12.01 Capacity for innovation 4.4 65 91 75 13 27 84 117 75 94 52 98 93 133 132 117 133 127 28 119 73 107 76 103 53 39 Trend 3.2 3.5 3.8 2.9 3.4 2.9 4.2 10.5 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 159
176. 2 .1: Country/Economy Profiles Czech Republic 31 Key Indicators, 2015 st Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 10.5 Population (millions) 181.9 GDP (US$ billions) 17256.9 GDP per capita (US$) 0.29 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 31 4.7 Rank 39 / 144 46 / 148 37 / 144 31 / 140 31 / 138 31 5.3 Score 4.5 4.4 4.5 4.7 4.7 54 4.2 2nd pillar: Infrastructure 43 4.7  3rd pillar: Macroeconomic environment 19 5.9  4th pillar: Health and primary education 25 6.3 27 4.8 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 27 5.2  6th pillar: Goods market efficiency 36 4.7  7th pillar: Labor market efficiency 44 4.5  8th pillar: Financial market development 27 4.7  9th pillar: Technological readiness 29 5.5  10th pillar: Market size 46 4.4 35 4.1 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 32 4.5  12th pillar: Innovation 37 3.8 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Czech Republic Most problematic factors for doing business Inefficient government bureaucracy Tax regulations Corruption Policy instability Tax rates Inadequately educated workforce Restrictive labor regulations Insufficient capacity to innovate Inadequate supply of infrastructure Access to financing Poor work ethic in national labor force Foreign currency regulations Crime and theft Poor public health Government instability Inflation 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 19.7 16.0 11.3 10.6 10.0 7.3 7.0 5.3 4.4 3.7 2.9 0.6 0.6 0.4 0.2 0.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 160 | The Global Competitiveness Report 2016–2017
177. 2 .1: Country/Economy Profiles Czech Republic The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 54 51 32 105 92 51 50 96 7 111 99 93 77 22 38 30 62 76 35 25 43 57 4.2 4.5 4.9 2.9 2.6 4.5 4.4 2.7 5.0 2.8 3.1 3.1 4.0 6.0 5.3 5.7 4.5 3.8 5.3 5.6 4.4 5.8 43 4.7 36 65 22 97 31 63 20 47 61 4.7 4.1 4.6 3.4 5.3 236.3 6.4 129.2 18.1 19 5.9 40 32 42 55 22 -1.9 27.4 0.3 40.9 25 6.3 - n/a S.L. N/Appl. N/Appl. 5 68 1 73 12 37 35 25 27 30 32 59 56 64 25 24 35 4.6 5.7 <0.1 5.5 2.8 78.3 4.8 98.1 5.2 105.1 66.0 3.9 4.4 4.2 5.3 5.3 4.5 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 36 15 22 42 47 111 94 87 82 16 5 5 26 33 14 44 98 4.7 5.8 4.4 4.0 3.9 50.4 8 15.0 3.6 5.0 1.0 6.0 5.3 4.8 88.1 5.0 3.0 44 44 13 94 89 110 21 29 59 70 67 27 27 23 60 40 34 14 33 28 29 27 37 23 28 25 28 42 46 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.5 4.7 5.9 3.5 20.3 3.3 4.7 5.3 3.6 3.3 0.81 4.7 5.0 4.8 3.7 4.4 3.4 6.0 5.2 7 5.5 5.7 5.1 5.1 81.3 27.9 119.8 68.8 4.4 50 28 49 8 4.1 5.5 332.5 99.5 32 35 21 59 44 44 30 29 46 41 4.5 4.8 5.2 3.8 4.0 4.2 4.3 5.0 4.6 4.1 37 12.01 Capacity for innovation 29 30 32 47 79 89 29 Trend 3.8 4.8 4.8 4.1 3.7 3.1 3.7 21.7 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 161
178. 2 .1: Country/Economy Profiles Denmark 12 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 5.7 Population (millions) 295.0 GDP (US$ billions) 52114.2 GDP per capita (US$) 0.23 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 12 5.3 Rank 12 / 144 15 / 148 13 / 144 12 / 140 12 / 138 13 5.8 Score 5.3 5.2 5.3 5.3 5.3 15 5.5 2nd pillar: Infrastructure 21 5.6  3rd pillar: Macroeconomic environment 18 5.9  4th pillar: Health and primary education 21 6.4 17 5.2 6 5.9 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 18 5.1  7th pillar: Labor market efficiency 13 5.1  8th pillar: Financial market development 24 4.8  9th pillar: Technological readiness 11 6.1  10th pillar: Market size 58 4.2 10 5.3 9 5.4 10 5.1 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Denmark Most problematic factors for doing business Tax rates Tax regulations Restrictive labor regulations Access to financing Inefficient government bureaucracy Inadequately educated workforce Poor work ethic in national labor force Inadequate supply of infrastructure Insufficient capacity to innovate Policy instability Inflation Poor public health Foreign currency regulations Crime and theft Government instability Corruption 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 18.1 15.8 14.3 11.0 10.6 9.5 5.7 4.5 4.4 3.6 0.7 0.6 0.5 0.3 0.2 0.2 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 162 | The Global Competitiveness Report 2016–2017
179. 2 .1: Country/Economy Profiles Denmark The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 15 18 25 13 13 5 12 14 37 84 18 34 26 76 28 25 24 5 23 7 27 20 5.5 5.8 5.6 5.9 5.1 6.5 6.2 4.9 3.8 3.3 5.1 4.2 5.0 5.1 5.4 5.8 6.0 6.1 5.6 6.1 5.0 6.8 2nd pillar: Infrastructure 21 5.6  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 10 10 20 9 17 40 6 49 37 5.8 5.7 4.7 5.7 5.8 604.6 6.8 128.3 29.9 18 5.9 42 38 39 66 10 -2.0 26.3 0.5 45.6 21 6.4 - n/a S.L. N/Appl. N/Appl. 20 3 1 4 13 28 31 27 6 7 13 16 16 12 13 8 13 7.1 6.9 0.2 6.8 2.9 80.5 4.8 98.1 5.9 129.9 81.5 5.1 5.2 5.6 5.9 5.9 5.2 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 18 31 4 12 110 25 22 9 34 50 5 21 19 29 58 8 44 5.1 5.5 5.2 5.1 3.1 24.5 4 3.0 4.3 4.6 1.0 5.4 5.4 5.0 47.1 5.8 3.7 13 4 99 5 80 126 11 13 22 31 19 24 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.8 4.8 4.4 4.3 4.1 3.0 5.6 5.5 8 11 6.1 58 6.0 5.7 4.9 96.3 42.5 328.0 116.8 4.2 57 44 56 31 3.9 5.0 258.7 53.0 9 21 10 22 3 17 17 15 21 1 5.4 4.9 5.5 4.6 6.3 5.2 4.9 5.8 5.1 6.1 10 12.01 Capacity for innovation 5.1 6.1 4.5 5.5 18.8 2.9 5.0 5.9 4.7 4.1 0.93 31 33 38 56 58 41 19 20 20 10 31 4 2 8 7 18 16 16 14 53 37 8 Trend 5.1 5.3 5.6 5.0 4.8 3.5 4.5 210.8 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 163
180. 2 .1: Country/Economy Profiles Dominican Republic 92 Key Indicators, 2015 nd Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 10.0 GDP per capita (US$) 6755.7 GDP (US$ billions) 67.5 GDP (PPP) % world GDP 0.13 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 101 / 144 98 / 140 92 / 138 95 4.2 Score 3.8 3.8 3.8 3.9 3.9 123 3.2 101 3.2 4th pillar: Health and primary education 108 4.9 92 3.8 95 3.9  5th pillar: Higher education and training  6th pillar: Goods market efficiency 106 4.0  7th pillar: Labor market efficiency 109 3.8  8th pillar: Financial market development 87 3.7  9th pillar: Technological readiness 79 3.7  10th pillar: Market size 67 3.8 99 3.3 77 3.8 114 2.9 12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Dominican Republic Latin America and the Caribbean Most problematic factors for doing business Corruption Tax rates Inefficient government bureaucracy Inadequately educated workforce Access to financing Tax regulations Crime and theft Poor work ethic in national labor force Inadequate supply of infrastructure Restrictive labor regulations Insufficient capacity to innovate Poor public health Inflation Policy instability Government instability Foreign currency regulations 2016-17 105 / 148   2015-16 105 / 144 5.5 11th pillar: Business sophistication 2014-15 Rank 26  2013-14 3.9 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 92  Subindex B: Efficiency enhancers Edition Source: World Economic Forum, Executive Opinion Survey 2016 18.8 16.4 12.0 11.8 8.0 7.0 7.0 4.1 3.9 3.7 3.0 1.6 1.1 1.0 0.5 0.3 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 164 | The Global Competitiveness Report 2016–2017
181. 2 .1: Country/Economy Profiles Dominican Republic The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 123 91 77 133 130 112 127 128 111 110 112 127 83 36 122 111 133 130 67 74 78 73 3.2 4.0 4.0 1.9 1.7 3.1 2.5 2.0 2.4 2.8 2.9 2.5 3.9 5.8 3.1 4.0 2.4 2.9 4.6 4.8 3.9 5.5 2nd pillar: Infrastructure 101 3.2 N/Appl. N/Appl.  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 92 54 46 50 51 123 117 76 26 3.5 4.4 4.6 4.8 427.9 2.4 82.6 12.3 5.5 16 68 1 31 73 0.1 20.4 0.8 34.3 108 4.9 - 19 27 77 92 104 94 99 83 123 126 7.7 5.2 60.0 5.0 1.0 4.8 25.7 73.5 2.8 83.6 95 3.9 96 59 124 131 86 101 82 106 78.4 47.5 2.7 2.5 3.9 3.6 4.1 3.5 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Rank / 138 Value 106 21 130 132 111 89 76 86 96 69 77 41 42 56 110 99 110 4.0 5.6 2.8 2.6 3.0 42.4 7 14.5 3.4 4.4 6.2 5.1 5.0 4.4 29.9 4.3 2.9 109 3.8 72 44 108 108 69 124 118 79 66 95 87 56 86 89 58 99 42 53 127 79 64 59 41 74 80 73 87 67 4.4 5.3 3.3 26.2 3.9 3.2 3.5 3.4 3.4 0.69 3.7 4.5 3.6 3.3 4.1 2.5 5.5 4.6 1 3.7 4.9 4.6 4.7 51.9 6.4 36.2 39.6 3.8 66 76 67 99 3.6 4.3 149.7 24.7 77 27 81 64 125 79 78 87 37 73 3.8 4.9 4.2 3.8 2.5 3.7 3.5 3.6 4.8 3.7 114 2.9 90 124 119 111 104 108 83 Trend 3.9 2.8 2.7 2.9 2.9 3.5 0.4 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 165
182. 2 .1: Country/Economy Profiles Ecuador 91 Key Indicators, 2015 st Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 16.3 GDP per capita (US$) GDP (US$ billions) 98.8 GDP (PPP) % world GDP 6071.0 0.16 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2015-16 2016-17 91 4.0 Rank 86 / 144 71 / 148 76 / 140 91 / 138 81 4.4 Score 3.9 4.2 4.1 4.0 113 3.3 2nd pillar: Infrastructure 71 4.0  3rd pillar: Macroeconomic environment 83 4.4  4th pillar: Health and primary education 68 5.8 95 3.7 73 4.3 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 124 3.8  7th pillar: Labor market efficiency 123 3.6  8th pillar: Financial market development 113 3.4  9th pillar: Technological readiness 90 3.5  10th pillar: Market size 62 3.9 102 3.3 87 3.7 107 3.0 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Ecuador Most problematic factors for doing business Restrictive labor regulations Access to financing Tax rates Inefficient government bureaucracy Policy instability Corruption Tax regulations Foreign currency regulations Inadequately educated workforce Insufficient capacity to innovate Poor work ethic in national labor force Government instability Crime and theft Inflation Inadequate supply of infrastructure Poor public health 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 14.9 12.8 11.6 11.5 8.5 8.5 8.3 4.9 4.0 3.2 2.9 2.6 2.2 2.1 1.2 0.9 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 166 | The Global Competitiveness Report 2016–2017
183. 2 .1: Country/Economy Profiles Ecuador The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 113 118 93 115 122 81 134 123 42 133 107 136 119 47 109 79 91 111 43 48 103 96 3.3 3.6 3.7 2.5 1.9 3.7 1.9 2.1 3.6 2.2 3.0 2.0 3.4 5.6 3.7 4.6 3.9 3.3 5.1 5.1 3.7 4.7 71 4.0 47 24 4.5 5.1 N/Appl. N/Appl. 40 39 70 78 122 68 83 4.7 5.1 186.7 4.7 79.4 15.5 4.4 107 64 76 32 106 -5.3 21.2 4.0 34.5 68 5.8 - 17 29 73 90 60 96 87 53 83 75 2.5 5.2 54.0 5.1 0.3 4.8 18.4 75.9 3.7 94.7 73 4.3 31 68 81 90 69 68 81 85 104.2 40.5 3.6 3.7 4.2 4.2 4.1 3.7 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 124 76 121 94 134 51 126 130 101 137 108 123 134 84 118 92 92 3.8 5.0 3.0 3.4 2.5 33.0 12 50.5 3.3 2.9 9.9 3.4 3.1 3.8 24.9 4.3 3.1 123 3.6 64 59 131 126 91 77 100 92 80 113 4.4 5.2 2.4 31.8 3.7 3.8 3.7 3.2 3.2 0.63 113 3.4 93 85 88 109 115 63 87 127 90 86 96 118 81 72 60 96 62 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.9 3.6 3.3 3.1 2.2 5.0 4.0 1 3.5 4.4 4.2 3.6 48.9 9.2 56.6 35.1 3.9 62 74 61 109 3.8 4.3 183.4 20.8 87 91 96 101 88 91 110 93 60 62 3.7 4.3 4.0 3.3 3.2 3.6 3.0 3.5 4.5 3.8 107 12.01 Capacity for innovation 88 101 110 101 87 113 91 Trend 3.0 3.9 3.4 2.8 3.1 3.0 3.4 0.2 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 167
184. 2 .1: Country/Economy Profiles Egypt 115 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 88.4 Population (millions) 330.8 GDP (US$ billions) 3740.2 GDP per capita (US$) 0.92 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 119 / 144 116 / 140 115 / 138 117 3.8 Score 3.7 3.6 3.6 3.7 3.7 87 3.6 96 3.4 4th pillar: Health and primary education 89 5.5 100 3.7  5th pillar: Higher education and training 112 3.3  6th pillar: Goods market efficiency 112 4.0  7th pillar: Labor market efficiency 135 3.2  8th pillar: Financial market development 111 3.4  9th pillar: Technological readiness 99 3.3  10th pillar: Market size 25 5.0 111 3.2 85 3.7 122 2.7 12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Egypt Egypt remains stable at 115th position this year. To create growth and employment, Egypt could build on its large market size (25th); its business sector, which by some accounts appears more sophisticated than those of neighboring countries (85th); and its geographical proximity to the large European market. To do so, Egypt needs to step up its reform efforts and address the major rigidities that plague its goods, labor, and financial markets, on which the country ranks 112th, 135th, and 111th, respectively. Other priorities include higher education and training (112th), which is below Most problematic factors for doing business Policy instability Government instability Access to financing Foreign currency regulations Corruption Inadequate supply of infrastructure Poor work ethic in national labor force Inadequately educated workforce Crime and theft Restrictive labor regulations Tax rates Inflation Tax regulations Inefficient government bureaucracy Insufficient capacity to innovate Poor public health 2016-17 118 / 148   2015-16 107 / 144 2.7 11th pillar: Business sophistication 2014-15 Rank 134  2013-14 3.7 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 115  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Middle East and North Africa Other priorities include higher education and training (112th), which is below the performance of peer economies, particularly in terms of quality (134th); as well as the overall security situation (133rd), which remains fragile and imposes significant cost for business. Support for reform efforts comes from the recent drop in oil prices that could open up the fiscal space to consolidate the public budget by reducing energy subsidies, which make up a significant part of the public spending. Source: World Economic Forum, Executive Opinion Survey 2015 21.0 12.5 10.2 8.4 7.7 5.5 5.4 5.4 4.3 4.1 3.9 3.2 3.1 2.7 1.7 0.9 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 168 | The Global Competitiveness Report 2016–2017
185. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 87 100 124 67 84 64 47 28 122 63 81 72 97 135 124 119 114 77 84 131 83 101 3.6 3.9 3.2 3.5 2.8 4.1 4.5 4.1 2.2 3.5 3.4 3.4 3.7 2.7 2.9 3.7 3.3 3.8 4.3 3.9 3.9 4.5 96 3.4 108 107 73 58 52 41 102 82 95 3.1 3.0 2.6 4.3 4.8 590.1 3.5 111.0 7.4 134 2.7 132 121 130 117 98 -11.7 10.9 11.0 87.7 89 5.5 - n/a 1 38 16 1 1 91 93 134 28 P.R. 6.8 15.0 6.7 0.1 6.9 20.3 71.1 2.1 98.0 112 3.3 85 81 135 130 138 133 136 137 86.1 31.7 2.1 2.6 2.5 2.6 2.7 2.7 Trend Rank / 138  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Value 112 127 103 78 84 96 76 48 130 100 126 125 114 80 120 55 116 4.0 4.2 3.3 3.6 3.4 45.0 7 8.0 2.9 4.0 13.6 3.4 3.8 3.8 24.7 4.9 2.8 135 3.2 96 72 61 129 104 125 133 104 103 133 4.1 5.0 3.9 36.9 3.4 3.2 3.1 2.9 2.7 0.31 111 3.4 54 72 58 136 98 70 105 108 99 117 121 71 96 87 105 72 25 3.3 3.9 3.8 4.4 35.9 4.5 11.3 50.7 5.0 5.1 5.0 1047.9 11.2 85 64 106 32 89 72 116 105 121 34 3.7 4.5 3.8 4.3 3.2 3.7 3.0 3.2 3.8 4.2 135 128 133 137 72 46 74 Trend 4.5 3.8 3.8 1.9 2.5 4.8 3.7 2 19 49 23 132 122 12.01 Capacity for innovation Egypt 2.7 3.1 2.6 2.4 2.4 3.2 4.3 0.8 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 169
186. 2 .1: Country/Economy Profiles El Salvador 105 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 6.4 Population (millions) 25.8 GDP (US$ billions) 4040.3 GDP per capita (US$) 0.05 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 105 3.8 Rank 101 / 144 97 / 148 84 / 144 95 / 140 105 / 138 100 4.2 Score 3.8 3.8 4.0 3.9 3.8 132 3.0 2nd pillar: Infrastructure 69 4.0  3rd pillar: Macroeconomic environment 97 4.2  4th pillar: Health and primary education 96 5.4 101 3.7 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 103 3.6  6th pillar: Goods market efficiency 102 4.0  7th pillar: Labor market efficiency 122 3.6  8th pillar: Financial market development 45 4.3  9th pillar: Technological readiness 93 3.4  10th pillar: Market size 94 3.2 117 3.2 86 3.7 127 2.6 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development El Salvador Most problematic factors for doing business Crime and theft Corruption Inefficient government bureaucracy Policy instability Tax rates Access to financing Inadequately educated workforce Tax regulations Inadequate supply of infrastructure Poor public health Insufficient capacity to innovate Restrictive labor regulations Poor work ethic in national labor force Inflation Government instability Foreign currency regulations 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 26.6 14.0 12.1 10.8 10.4 5.5 4.3 3.4 2.8 2.7 2.2 1.5 1.4 1.3 1.0 0.0 0 7 14 21 28 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 170 | The Global Competitiveness Report 2016–2017
187. 2 .1: Country/Economy Profiles El Salvador The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 132 108 113 121 133 91 99 122 67 120 127 116 129 131 137 138 134 125 69 79 119 120 3.0 3.8 3.4 2.4 1.7 3.5 3.2 2.2 3.2 2.7 2.6 2.7 3.1 3.0 1.8 1.9 2.3 3.1 4.6 4.8 3.5 3.8 69 4.0 91 73 3.5 3.9 N/Appl. N/Appl. 91 74 82 69 25 70 97 3.5 4.3 104.6 4.9 145.3 14.7 4.2 71 122 85 86 82 -3.2 10.6 -0.7 58.9 96 5.4 - 13 11 62 112 85 114 79 87 128 83 0.2 6.0 41.0 4.3 0.5 4.3 14.4 72.8 2.5 93.1 103 3.6 94 86 133 127 118 118 116 110 81.1 28.9 2.3 2.6 3.5 3.3 3.6 3.5 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 102 53 119 123 108 74 94 92 134 110 61 82 101 123 59 59 113 4.0 5.3 3.0 3.0 3.1 38.7 8 16.5 2.7 3.9 4.2 4.3 4.1 3.2 46.2 4.8 2.8 122 3.6 109 55 90 101 82 128 113 120 121 107 45 50 56 94 65 100 60 76 13 93 92 109 107 101 85 56 110 94 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.0 5.2 3.5 22.9 3.8 3.1 3.6 2.6 2.4 0.64 4.3 4.5 4.0 3.1 4.0 2.5 5.1 4.2 9 3.4 4.3 4.0 3.8 26.9 5.5 62.0 19.9 3.2 91 99 95 86 3.0 3.8 52.9 30.0 86 90 88 107 117 85 87 92 75 40 3.7 4.3 4.1 3.2 2.8 3.7 3.4 3.5 4.3 4.1 127 12.01 Capacity for innovation 103 129 116 118 132 135 88 Trend 2.6 3.8 2.6 2.8 2.8 2.4 2.7 0.3 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 171
188. 2 .1: Country/Economy Profiles Estonia 30 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 1.3 Population (millions) 22.7 GDP (US$ billions) 17288.1 GDP per capita (US$) 0.03 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 30 4.8 Rank 34 / 144 32 / 148 29 / 144 30 / 140 30 / 138 20 5.7 Score 4.6 4.7 4.7 4.7 4.8 23 5.1 2nd pillar: Infrastructure 33 5.0  3rd pillar: Macroeconomic environment 12 6.1  4th pillar: Health and primary education 12 6.5 28 4.8 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 18 5.5  6th pillar: Goods market efficiency 20 5.1  7th pillar: Labor market efficiency 15 5.0  8th pillar: Financial market development 22 4.8  9th pillar: Technological readiness 32 5.4  10th pillar: Market size 100 3.0 33 4.2 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 44 4.3  12th pillar: Innovation 28 4.1 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Estonia Most problematic factors for doing business Tax rates Inadequately educated workforce Insufficient capacity to innovate Inefficient government bureaucracy Restrictive labor regulations Poor work ethic in national labor force Access to financing Inadequate supply of infrastructure Tax regulations Policy instability Corruption Inflation Poor public health Government instability Crime and theft Foreign currency regulations 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 18.2 17.3 10.2 9.9 8.5 8.3 8.0 5.0 4.4 3.9 1.8 1.7 1.4 0.7 0.7 0.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 172 | The Global Competitiveness Report 2016–2017
189. 2 .1: Country/Economy Profiles Estonia The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 23 25 26 28 37 18 18 23 19 24 40 26 24 12 21 10 20 28 21 21 44 73 5.1 5.5 5.5 4.8 3.9 6.1 5.7 4.2 4.3 4.1 4.3 4.5 5.1 6.2 5.5 6.3 6.1 4.8 5.7 5.7 4.3 5.5 2nd pillar: Infrastructure 33 5.0  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 22 45 33 14 64 117 42 22 36 5.2 4.7 4.0 5.6 4.5 28.1 5.7 148.7 30.3 12 6.1 11 39 57 5 24 0.5 25.9 0.1 10.1 12 6.5 - n/a S.L. N/Appl. N/Appl. 45 33 114 43 9 43 8 41 18 23 24 26 11 31 12 27 27 20.0 6.4 1.3 6.0 2.3 77.2 5.7 97.3 5.5 108.6 72.9 4.6 5.4 4.9 5.9 5.2 4.7 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 20 16 36 23 23 108 11 13 31 18 5 9 9 13 16 25 50 5.1 5.8 4.1 4.7 4.5 49.4 3 3.5 4.4 5.0 1.0 5.8 5.7 5.4 81.5 5.4 3.6 15 23 1 17 46 56 12 27 84 69 29 22 28 18 47 30 25 28 23 28 32 25 24 40 15 22 78 8 100 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 5.0 5.2 6.2 4.7 12.9 4.0 5.0 5.3 3.3 3.3 0.90 4.8 4.9 4.9 4.1 4.6 3.6 5.8 5.4 7 5.4 5.7 5.4 4.8 88.4 28.7 30.9 114.3 3.0 107 77 100 15 2.6 4.2 37.5 82.5 44 61 23 63 57 70 57 50 72 24 4.3 4.6 5.2 3.8 3.6 3.8 3.8 4.1 4.4 4.5 28 12.01 Capacity for innovation 27 21 36 35 49 45 31 Trend 4.1 4.9 5.3 3.9 4.1 3.5 4.3 18.7 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 173
190. 2 .1: Country/Economy Profiles Ethiopia 109 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 89.8 GDP per capita (US$) 686.6 GDP (US$ billions) 61.6 GDP (PPP) % world GDP 0.14 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 121 / 144 127 / 148 118 / 144 109 / 140 109 / 138 106 4.0 Score 3.6 3.5 3.6 3.7 3.8 75 3.9 115 2.8 78 4.5  4th pillar: Health and primary education 111 4.7 117 3.5  5th pillar: Higher education and training 127 2.8  6th pillar: Goods market efficiency 105 4.0  7th pillar: Labor market efficiency 70 4.2  8th pillar: Financial market development 102 3.5  9th pillar: Technological readiness 131 2.4  10th pillar: Market size 66 3.8 74 3.5  11th pillar: Business sophistication 93 3.7  12th pillar: Innovation 57 3.4 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Ethiopia Most problematic factors for doing business Corruption Access to financing Foreign currency regulations Tax rates Inefficient government bureaucracy Inadequate supply of infrastructure Inflation Tax regulations Government instability Poor work ethic in national labor force Insufficient capacity to innovate Inadequately educated workforce Crime and theft Policy instability Restrictive labor regulations Poor public health 2013-14 3.8 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 109  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 14.4 10.7 10.4 9.3 7.3 7.1 6.9 6.4 5.6 4.7 4.2 4.2 3.6 2.2 2.0 0.9 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 174 | The Global Competitiveness Report 2016–2017
191. 2 .1: Country/Economy Profiles Ethiopia The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 75 90 88 49 41 93 73 34 55 55 55 53 98 117 91 93 92 63 112 132 91 129 3.9 4.0 3.8 4.0 3.8 3.5 3.8 3.9 3.4 3.6 4.0 3.7 3.7 4.2 4.1 4.3 3.9 3.9 3.8 3.8 3.8 3.5 2nd pillar: Infrastructure 115 2.8  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 94 83 48 90 105 52 104 136 124 3.4 3.7 3.4 3.5 3.7 398.3 3.4 42.8 0.9 78 4.5 52 36 129 70 123 -2.5 27.0 10.1 48.6 111 4.7 - 46 33 116 114 111 116 117 115 107 120 3919.2 5.0 207.0 4.3 1.2 4.2 41.4 64.0 3.1 85.8 127 2.8 133 121 83 97 120 99 101 99 36.2 8.1 3.5 3.5 3.5 3.7 3.9 3.6 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 105 135 58 57 50 46 122 98 45 123 122 109 117 96 77 132 60 4.0 3.9 3.8 3.8 3.9 32.1 11 19.0 4.1 3.6 13.0 3.8 3.7 3.6 38.4 3.7 3.5 70 3.8 4.2 3.6 19.1 4.2 3.8 3.6 3.6 3.8 0.88 102 3.5 131 123 130 102 127 113 134 123 66 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.6 3.8 3.7 3.7 3.4 3.8 3.8 3 2.4 3.7 3.5 3.9 11.6 0.7 2.0 11.9 3.8 61 96 65 133 3.8 3.9 161.6 10.8 93 131 121 84 59 55 45 84 122 108 3.7 3.6 3.6 3.5 3.6 3.9 4.0 3.6 3.8 3.4 57 12.01 Capacity for innovation 4.2 117 116 87 84 50 79 107 63 43 41 113 70 61 79 35 116 94 97 104 70 39 39 50 73 114 Trend 3.4 3.7 3.8 3.8 3.8 3.5 3.9 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 175
192. 2 .1: Country/Economy Profiles Finland 10 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 5.5 Population (millions) 229.7 GDP (US$ billions) 41974.0 GDP per capita (US$) 0.20 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 10 5.4 Rank 3 / 144 3 / 148 4 / 144 8 / 140 10 / 138 12 5.9 Score 5.5 5.5 5.5 5.5 5.4 1 6.1 2nd pillar: Infrastructure 26 5.3  3rd pillar: Macroeconomic environment 46 5.1  4th pillar: Health and primary education 1 6.9 14 5.3 2 6.2 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 19 5.1  7th pillar: Labor market efficiency 23 4.8  8th pillar: Financial market development 5 5.5  9th pillar: Technological readiness 16 6.0  10th pillar: Market size 59 4.1 7 5.5 12 5.3 3 5.7 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Finland Finland drops two places to 10th, mainly as a result of its weakening macroeconomic environment. The country has been hit hard by the global economic downturn—especially the fall of exports to Russia and the drop in demand for paper and electronic exports—which has hurt Finland’s competitiveness for the past three years. Although some improvements are perceived in the labor market (up three places to 23rd), with an improvement in the efficient use of talent (up one to 6th), these are offset by the market’s rigidity (102nd): restrictive labor regulation is identified as the most Most problematic factors for doing business Restrictive labor regulations Tax rates Access to financing Tax regulations Inefficient government bureaucracy Policy instability Insufficient capacity to innovate Government instability Inflation Inadequately educated workforce Inadequate supply of infrastructure Poor work ethic in national labor force Poor public health Foreign currency regulations Crime and theft Corruption 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America rigidity (102nd): restrictive labor regulation is identified as the most problematic factor for doing business. The government’s planned reforms in this area are to be commended. Finland can count on its first-class, efficient, and transparent institutions and its high-quality education system. Finland is also well positioned in terms of innovation, with its capacity to innovate supported by the excellent availability of scientists and engineers (1st) and a high degree of collaboration between universities and industry (2nd). Source: World Economic Forum, Executive Opinion Survey 2016 29.4 19.1 10.5 10.3 9.4 9.2 8.3 1.6 0.8 0.8 0.5 0.3 0.0 0.0 0.0 0.0 0 8 16 24 32 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 176 | The Global Competitiveness Report 2016–2017
193. 2 .1: Country/Economy Profiles Finland The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 1 2 2 2 5 1 1 2 9 13 5 2 7 3 4 1 1 4 2 5 2 63 6.1 6.5 6.4 6.3 5.8 6.8 6.7 5.6 4.8 4.5 5.7 5.8 6.0 6.4 6.4 6.7 6.8 6.2 6.6 6.2 6.1 5.7 2nd pillar: Infrastructure 26 5.3  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 7 12 6 7 5 47 13 33 82 6.1 5.7 5.7 6.2 6.2 488.2 6.6 135.5 9.8 46 5.1 73 77 65 90 12 -3.4 19.0 -0.2 62.4 1 6.9 - n/a S.L. N/Appl. N/Appl. 11 1 1 3 4 23 1 10 2 2 4 3 2 18 18 4 7 5.6 7.0 0.1 6.9 1.9 81.1 6.7 99.4 6.2 145.5 88.7 5.7 6.2 5.4 5.8 6.0 5.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Rank / 138 Value 19 94 47 3 52 72 11 81 35 6 5 42 5 3 81 23 14 5.1 4.8 3.9 5.5 3.9 37.9 3 14.0 4.3 5.4 1.0 5.1 6.0 6.1 37.4 5.4 4.5 23 22 138 91 33 112 18 1 11 64 10 5 9 4 24 10 5 1 2 28 16 1 6 57 9 16 15 1 59 4.8 5.2 2.2 3.5 10.1 3.3 4.8 6.3 5.2 3.5 0.97 5.5 5.6 5.5 4.8 5.2 4.6 6.6 6.2 7 6.0 6.6 5.9 4.6 92.7 31.7 208.5 144.1 4.1 60 62 59 59 3.9 4.8 225.0 36.4 12 92 15 18 12 15 12 4 84 5 5.3 4.2 5.4 4.9 5.9 5.2 5.1 6.2 4.2 5.6 3 5.7 6 8 7 2 26 1 4 Trend 5.6 5.8 5.4 5.7 3.8 6.1 291.2 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 177
194. 2 .1: Country/Economy Profiles France 21 Key Indicators, 2015 st Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 64.3 Population (millions) 2421.6 GDP (US$ billions) 37675.0 GDP per capita (US$) 2.33 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 21 / 144 23 / 148 23 / 144 22 / 140 21 / 138 25 5.5 Score 5.1 5.1 5.1 5.1 5.2 29 4.9 7 6.1 67 4.7  4th pillar: Health and primary education 19 6.4 19 5.1  5th pillar: Higher education and training 21 5.5  6th pillar: Goods market efficiency 31 4.7  7th pillar: Labor market efficiency 51 4.4  8th pillar: Financial market development 31 4.6  9th pillar: Technological readiness 17 5.9  10th pillar: Market size 7 5.7 15 5.1  11th pillar: Business sophistication 14 5.2  12th pillar: Innovation 17 4.9 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development France France remains stable this year (moving up one spot to 21). Its largest improvement is in the innovation and sophistication subindex (15th, up five), although the underlying score improvements are small. The macroeconomic environment (67th) is improving but still weak: although the budget deficit has been reduced, government debt is approaching 100 percent of GDP and inflation is near zero. Relatively low levels of efficiency of both the goods and labor markets have traditionally weighed down competitiveness in France. In a move that should ultimately boost competitiveness, the French government pushed through wide-ranging labor market reforms in July 2016 against Most problematic factors for doing business Restrictive labor regulations Tax rates Tax regulations Inefficient government bureaucracy Insufficient capacity to innovate Inadequately educated workforce Access to financing Poor work ethic in national labor force Policy instability Inflation Inadequate supply of infrastructure Government instability Foreign currency regulations Crime and theft Poor public health Corruption 2013-14 5.2 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 21  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America pushed through wide-ranging labor market reforms in July 2016 against considerable opposition. Going forward, France will need to ensure that its talent base does not erode: the GCI data suggest that France’s capacity to attract and retain talent has deteriorated since last year (51st, down 9, and 86th, down 23, respectively); this includes the availability of scientist and engineers, although the talent pool is still relatively large in this case (26th overall). Source: World Economic Forum, Executive Opinion Survey 2016 23.8 23.4 19.2 11.7 7.3 3.9 3.6 2.6 1.8 0.8 0.6 0.5 0.5 0.3 0.0 0.0 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 178 | The Global Competitiveness Report 2016–2017
195. 2 .1: Country/Economy Profiles France The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 29 27 10 24 39 28 28 30 73 115 22 27 36 113 64 55 29 26 25 10 31 29 4.9 5.4 6.0 5.0 3.9 5.5 5.3 4.0 3.1 2.8 4.9 4.5 4.6 4.3 4.8 5.1 5.8 5.0 5.6 6.1 4.8 6.5 7 6.1 8 6 4 23 13 10 7 96 1 6.0 6.0 5.8 5.3 5.9 3997.5 6.7 102.6 59.9 67 4.7 79 62 56 124 16 -3.6 21.4 0.1 96.8 19 6.4 - n/a S.L. N/Appl. N/Appl. 27 34 76 48 26 7 28 16 21 17 37 33 12 15 40 20 24 8.7 6.4 0.4 6.0 3.5 82.4 4.9 98.8 5.5 110.6 64.4 4.5 5.3 5.5 4.9 5.5 4.8 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Rank / 138 Value 31 14 24 18 124 124 41 15 62 83 5 14 50 31 98 30 26 4.7 5.8 4.3 5.0 2.8 62.7 5 4.0 3.8 4.2 1.0 5.5 4.8 4.9 33.1 5.3 4.1 51 110 65 129 44 125 53 22 86 51 32 31 33 26 17 51 28 32 18 86 17 4.4 3.9 5.1 2.6 11.9 3.0 4.2 5.5 3.3 3.6 0.90 4.6 4.8 4.7 5.0 4.3 3.5 5.7 5.6 4 5.9 17 33 28 23 4 25 36 6.1 5.2 5.0 84.7 41.3 130.0 74.7 7 5.7 9 10 10 80 5.6 6.0 2646.9 30.8 14 15 11 26 13 9 9 16 6 51 5.2 5.1 5.5 4.6 5.9 5.5 5.2 5.7 5.6 3.9 17 4.9 8 9 9 32 24 26 14 Trend 5.4 5.8 5.2 4.3 3.8 4.7 122.9 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 179
196. 2 .1: Country/Economy Profiles Gabon 108 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 1.9 Population (millions) 14.3 GDP (US$ billions) 7735.9 GDP per capita (US$) 0.03 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 99 / 144 112 / 148 106 / 144 103 / 140 108 / 138 91 4.3 Score 3.8 3.7 3.7 3.8 3.8 85 3.7 107 3.1 25 5.6  4th pillar: Health and primary education 109 4.8 122 3.3  5th pillar: Higher education and training 121 3.0  6th pillar: Goods market efficiency 125 3.7  7th pillar: Labor market efficiency 101 3.9  8th pillar: Financial market development 103 3.5  9th pillar: Technological readiness 109 3.1  10th pillar: Market size 112 2.8 128 2.9  11th pillar: Business sophistication 131 3.2  12th pillar: Innovation 124 2.7 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Gabon Most problematic factors for doing business Access to financing Inadequately educated workforce Inadequate supply of infrastructure Inefficient government bureaucracy Corruption Restrictive labor regulations Poor work ethic in national labor force Insufficient capacity to innovate Tax regulations Tax rates Inflation Foreign currency regulations Crime and theft Policy instability Poor public health Government instability 2013-14 3.8 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 108  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 17.7 15.3 11.9 9.2 7.8 7.5 6.3 5.8 5.6 4.9 4.9 1.0 1.0 0.7 0.5 0.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 180 | The Global Competitiveness Report 2016–2017
197. 2 .1: Country/Economy Profiles Gabon The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 85 83 102 100 71 98 108 78 66 79 84 97 61 61 73 73 90 82 100 32 63 120 3.7 4.1 3.6 2.9 3.0 3.5 3.1 3.0 3.2 3.4 3.4 3.0 4.3 5.4 4.6 4.9 3.9 3.7 4.1 5.4 4.1 3.8 2nd pillar: Infrastructure 107 3.1  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 119 121 64 101 108 111 114 10 120 2.9 2.8 2.8 3.2 3.6 33.3 2.9 168.9 1.1 25 5.6 48 9 55 62 89 -2.3 34.8 0.1 43.9 109 4.8 - 55 20738.6 66 3.2 134 444.0 105 4.4 125 3.9 117 4.1 113 36.1 114 64.4 87 3.6 67 95.2 121 115 120 116 95 98 121 128 84 3.0 53.3 8.4 2.9 3.6 3.8 3.2 3.4 3.7 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 125 134 131 103 65 97 76 128 122 132 124 23 72 92 106 118 94 3.7 4.0 2.8 3.3 3.7 45.7 7 50.0 3.1 3.3 13.4 5.4 4.6 3.6 30.5 3.9 3.0 101 3.9 98 101 98 80 21 131 97 93 59 92 4.1 4.5 3.4 18.8 4.6 3.1 3.8 3.2 3.5 0.70 103 3.5 122 128 87 118 118 89 96 46 109 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.4 2.7 3.3 3.0 2.2 4.4 3.8 6 3.1 113 107 113 104 114 107 99 4.0 4.1 3.7 23.5 0.6 8.5 33.1 112 2.8 110 111 108 85 2.5 3.6 34.6 30.1 131 133 124 132 100 132 134 126 120 121 3.2 3.5 3.5 2.8 3.0 2.9 2.7 2.8 3.8 3.2 124 12.01 Capacity for innovation 118 109 117 130 119 134 85 Trend 2.7 3.6 3.2 2.7 2.6 2.7 2.8 0.4 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 181
198. 2 .1: Country/Economy Profiles Gambia, The 123 Key Indicators, 2015 rd Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 2.0 GDP per capita (US$) 450.9 GDP (US$ billions) 0.9 GDP (PPP) % world GDP 0.00 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 125 / 144 123 / 140 123 / 138 124 3.6 Score 3.8 3.7 3.5 3.5 3.5 52 4.2 93 3.4 4th pillar: Health and primary education 129 3.8 123 3.3 108 3.4  5th pillar: Higher education and training  6th pillar: Goods market efficiency 82 4.2  7th pillar: Labor market efficiency 46 4.5  8th pillar: Financial market development 100 3.5  9th pillar: Technological readiness 112 2.9  10th pillar: Market size 138 1.3 89 3.4 71 3.8 106 3.0 12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Gambia, The Most problematic factors for doing business Access to financing Foreign currency regulations Tax rates Inflation Inadequate supply of infrastructure Poor work ethic in national labor force Corruption Tax regulations Inefficient government bureaucracy Insufficient capacity to innovate Inadequately educated workforce Policy instability Crime and theft Government instability Poor public health Restrictive labor regulations 2016-17 116 / 148   2015-16 98 / 144 2.8 11th pillar: Business sophistication 2014-15 Rank 133  2013-14 3.5 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 123  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 19.8 17.6 14.6 13.6 6.4 5.0 4.8 3.6 3.4 3.3 3.3 2.1 0.9 0.7 0.5 0.4 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 182 | The Global Competitiveness Report 2016–2017
199. 2 .1: Country/Economy Profiles Gambia, The The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 52 75 86 45 44 68 93 33 27 15 45 56 42 62 37 38 48 58 90 59 77 126 4.2 4.2 3.8 4.1 3.7 4.0 3.5 3.9 4.0 4.4 4.2 3.6 4.5 5.4 5.3 5.5 4.9 4.0 4.2 5.0 4.0 3.7 93 3.4 82 74 3.7 3.9 N/Appl. N/Appl. 68 79 128 101 39 110 133 4.0 4.1 13.2 3.5 131.3 2.3 2.8 115 130 116 121 130 -6.5 4.6 6.8 91.6 129 3.8 - 59 22819.2 54 3.8 114 174.0 87 5.1 120 1.8 79 5.3 123 47.9 123 60.2 62 4.2 135 67.9 108 111 135 40 104 68 96 64 88 3.4 57.5 3.1 4.3 3.4 4.2 3.7 4.3 3.7 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 82 85 52 39 72 125 76 107 9 77 130 49 58 53 42 62 117 4.2 4.8 3.9 4.1 3.6 63.3 7 25.0 5.0 4.3 14.3 4.9 4.8 4.4 54.2 4.7 2.7 46 4.4 5.6 4.0 26.0 4.2 4.2 4.6 3.5 3.6 0.88 100 3.5 85 69 122 120 102 76 86 86 4.0 3.8 2.6 2.9 2.4 4.7 4.0 4 112 2.9 138 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.3 4.2 4.0 17.1 0.2 13.3 10.0 1.3 138 136 138 67 1.0 2.4 3.3 34.9 71 67 64 60 69 76 94 111 101 49 3.8 4.5 4.3 3.8 3.5 3.7 3.3 3.1 4.1 3.9 106 12.01 Capacity for innovation 4.5 66 24 52 107 45 56 49 67 55 42 98 91 92 122 123 100 125 60 113 100 127 32 128 81 Trend 3.0 4.2 3.1 2.9 2.6 3.8 3.0 0.4 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 183
200. 2 .1: Country/Economy Profiles Georgia 59 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 3.7 Population (millions) 14.0 GDP (US$ billions) 3788.6 GDP per capita (US$) 0.03 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 59 4.3 Rank 77 / 144 72 / 148 69 / 144 66 / 140 59 / 138 46 4.9 Score 4.1 4.2 4.2 4.2 4.3 43 4.4 2nd pillar: Infrastructure 65 4.1  3rd pillar: Macroeconomic environment 40 5.2  4th pillar: Health and primary education 64 5.9 69 4.1 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 89 4.1  6th pillar: Goods market efficiency 46 4.6  7th pillar: Labor market efficiency 43 4.5  8th pillar: Financial market development 58 4.2  9th pillar: Technological readiness 65 4.2  10th pillar: Market size 101 3.0 113 3.2 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 102 3.6  12th pillar: Innovation 116 2.8 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development 7th pillar: Labor market efficiency Georgia Most problematic factors for doing business Inadequately educated workforce Access to financing Inflation Inefficient government bureaucracy Inadequate supply of infrastructure Policy instability Insufficient capacity to innovate Poor work ethic in national labor force Tax rates Tax regulations Government instability Foreign currency regulations Restrictive labor regulations Corruption Crime and theft Poor public health 2nd pillar: Infrastructure 7 6th pillar: Goods market efficiency Eurasia Source: World Economic Forum, Executive Opinion Survey 2016 15.5 13.2 10.1 9.8 9.0 8.2 8.2 8.0 4.6 3.9 3.9 2.8 1.6 0.8 0.3 0.0 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 184 | The Global Competitiveness Report 2016–2017
201. 2 .1: Country/Economy Profiles Georgia The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 43 43 99 42 77 23 63 45 69 8 53 52 43 38 23 26 40 68 61 77 105 20 4.4 4.8 3.6 4.2 2.9 5.6 4.0 3.5 3.2 4.8 4.0 3.7 4.5 5.7 5.5 5.8 5.3 3.9 4.7 4.8 3.6 6.8 65 4.1 75 78 38 71 88 99 66 48 46 4.0 3.8 3.9 4.0 4.0 55.4 4.9 129.0 22.1 40 5.2 24 58 80 56 83 -1.2 21.7 4.0 41.2 64 5.9 - 1 6 94 67 60 44 62 69 93 14 0.0 6.3 106.0 5.7 0.3 6.0 10.6 74.7 3.4 99.0 89 4.1 49 71 95 100 97 73 125 125 99.4 39.2 3.3 3.5 3.8 4.2 3.5 3.3 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Rank / 138 Value 46 78 76 114 11 9 3 5 65 14 4 92 23 12 25 105 89 4.6 5.0 3.6 3.1 5.1 16.4 2 2.0 3.8 5.0 0.9 4.2 5.4 5.4 66.7 4.1 3.1 43 89 20 20 19 10 75 56 100 106 84 58 79 82 130 52 94 54 81 13 65 111 111 97 85 58 36 73 101 4.5 4.2 5.7 4.6 8.6 5.2 3.9 4.5 3.0 2.6 0.76 4.2 4.1 3.6 2.4 4.2 2.6 5.2 4.1 9 4.2 4.0 4.0 4.0 45.2 14.6 101.5 50.4 3.0 99 104 105 57 2.7 3.7 35.6 37.6 102 132 116 122 60 75 86 95 77 117 3.6 3.5 3.7 3.0 3.6 3.7 3.4 3.4 4.3 3.2 116 2.8 105 118 123 119 84 115 59 Trend 3.7 3.0 2.7 2.7 3.1 3.3 2.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 185
202. 2 .1: Country/Economy Profiles Germany 5 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 81.9 Population (millions) 3357.6 GDP (US$ billions) 40996.5 GDP per capita (US$) 3.38 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 6 / 144 4 / 148 5 / 144 4 / 140 5 / 138 10 5.9 Score 5.5 5.5 5.5 5.5 5.6 22 5.2 8 6.1 15 6.0  4th pillar: Health and primary education 14 6.5 7 5.4  5th pillar: Higher education and training 16 5.6  6th pillar: Goods market efficiency 23 5.0  7th pillar: Labor market efficiency 22 4.8  8th pillar: Financial market development 20 4.9  9th pillar: Technological readiness 10 6.1  10th pillar: Market size 5 6.0 3 5.6  11th pillar: Business sophistication 3 5.6  12th pillar: Innovation 5 5.6 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Germany Despite a slight improvement in its overall score, Germany drops one place to 5th. Its macroeconomic environment is generally stable, with a very low government deficit, yet—like the rest of the euro zone—it faces near-zero inflation. The country continues to push the innovation frontier, ranking high on the pillars of technological readiness (10th), innovation (5th), and business sophistication (3rd). Germany does well in efficiently using its talent (14th), supported by management practices that encourage worker involvement. As recent empirical evidence suggests, this type of decentralized management is effective in incentivizing quality upgrades and other types of product improvements, which in turn boost export Most problematic factors for doing business Tax regulations Tax rates Inefficient government bureaucracy Inadequately educated workforce Restrictive labor regulations Insufficient capacity to innovate Poor work ethic in national labor force Access to financing Policy instability Inadequate supply of infrastructure Government instability Corruption Foreign currency regulations Crime and theft Poor public health Inflation 2013-14 5.6 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 5  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America other types of product improvements, which in turn boost export competitiveness. An important labor market challenge for the coming year will be the integration of the large numbers of migrants, many of whom arrived over the course of 2015; first steps have been taken to lower labor market entry barriers for asylum seekers. An improvement from 82nd to 65th is registered in an important business environment indicator, as the number of days to start a business is reduced from 14.5 to 10.5. Yet the data show a longer-term deterioration in another dimension of the business environment with a drop to 58th on the security indicators. Source: World Economic Forum, Executive Opinion Survey 2016 14.3 14.1 12.0 11.1 10.6 6.3 5.7 5.3 5.2 3.8 2.4 2.2 2.0 2.0 1.6 1.4 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 186 | The Global Competitiveness Report 2016–2017
203. 2 .1: Country/Economy Profiles Germany The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 22 17 19 25 16 29 24 17 20 18 17 15 19 85 63 64 39 22 18 22 32 49 5.2 5.8 5.8 5.0 4.8 5.5 5.6 4.6 4.2 4.3 5.1 5.0 5.4 4.9 4.8 5.0 5.3 5.2 5.8 5.7 4.8 6.0 8 6.1 13 16 11 11 12 6 19 67 5 5.7 5.6 5.4 5.6 5.9 5338.4 6.4 116.7 54.9 15 6.0 10 33 49 103 3 0.6 27.3 0.1 71.0 14 6.5 - n/a S.L. N/Appl. N/Appl. 15 26 1 30 20 25 20 18 16 33 35 13 17 23 37 13 12 6.2 6.5 0.2 6.3 3.1 80.8 5.2 98.6 5.6 102.4 65.5 5.3 5.2 5.3 5.0 5.8 5.2 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Rank / 138 Value 23 10 3 16 55 104 108 65 20 51 5 47 51 32 73 24 23 5.0 5.9 5.3 5.0 3.9 48.8 9 10.5 4.5 4.6 1.0 4.9 4.8 4.9 39.9 5.4 4.1 22 25 126 43 94 93 10 15 17 16 40 20 22 15 12 15 21 45 28 46 10 4.8 5.1 3.9 4.1 21.6 3.7 5.0 5.7 4.8 4.7 0.88 4.9 5.2 4.9 5.2 5.0 3.8 5.4 5.3 6 6.1 16 12 17 19 9 29 35 6.1 5.7 5.2 87.6 37.2 117.5 75.1 5 6.0 5 3 5 39 5.8 6.5 3840.6 47.0 3 2 4 4 10 5 1 7 7 19 5.6 5.7 5.9 5.4 5.9 5.8 5.6 6.1 5.5 4.9 5 5.6 5 11 5 8 6 16 7 Trend 5.7 5.8 5.6 5.4 4.5 5.0 219.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 187
204. 2 .1: Country/Economy Profiles Ghana 114 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 26.9 GDP per capita (US$) 1340.4 GDP (US$ billions) 36.0 GDP (PPP) % world GDP 0.10 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 114 3.7 Rank 103 / 144 114 / 148 111 / 144 119 / 140 114 / 138 121 3.6 Score 3.8 3.7 3.7 3.6 3.7 72 3.9 2nd pillar: Infrastructure 111 2.9  3rd pillar: Macroeconomic environment 132 2.9  4th pillar: Health and primary education 115 4.6 91 3.8 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 99 3.8  6th pillar: Goods market efficiency 93 4.2  7th pillar: Labor market efficiency 72 4.2  8th pillar: Financial market development 85 3.8  9th pillar: Technological readiness 95 3.4  10th pillar: Market size 72 3.7 67 3.6 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 68 3.9  12th pillar: Innovation 69 3.3 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Ghana Most problematic factors for doing business Access to financing Corruption Tax rates Foreign currency regulations Inflation Tax regulations Inadequate supply of infrastructure Policy instability Poor work ethic in national labor force Insufficient capacity to innovate Inefficient government bureaucracy Crime and theft Poor public health Inadequately educated workforce Restrictive labor regulations Government instability 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 18.0 14.4 14.0 8.8 7.0 6.5 6.3 5.5 4.9 4.5 3.7 1.9 1.7 1.6 0.7 0.5 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 188 | The Global Competitiveness Report 2016–2017
205. 2 .1: Country/Economy Profiles Ghana The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 72 68 78 90 67 109 46 83 49 62 44 44 85 88 88 82 58 64 93 56 52 63 3.9 4.3 3.9 3.1 3.1 3.1 4.6 2.9 3.5 3.5 4.2 3.9 3.9 4.8 4.2 4.6 4.7 3.9 4.2 5.0 4.2 5.7 2nd pillar: Infrastructure 111 2.9  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 103 86 96 82 92 78 126 43 123 3.2 3.5 1.8 3.7 4.0 120.8 2.2 129.7 1.0 132 2.9 104 95 133 105 111 -5.0 15.6 17.2 73.3 115 4.6 - 63 30985.6 56 3.7 109 165.0 101 4.6 117 1.5 91 4.9 119 42.8 121 61.3 97 3.4 95 91.1 99 100 107 60 93 53 95 53 64 3.8 71.0 15.6 3.9 3.7 4.5 3.7 4.6 4.0 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 93 72 50 91 80 49 94 81 77 61 111 40 73 79 52 93 120 4.2 5.1 3.9 3.4 3.4 32.7 8 14.0 3.7 4.5 10.2 5.1 4.5 3.8 50.6 4.3 2.7 72 59 92 29 131 46 99 35 48 45 7 85 90 110 66 104 105 87 92 28 95 115 95 80 105 120 128 48 72 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.2 4.5 4.7 4.4 49.8 4.2 3.6 4.7 3.8 3.8 0.97 3.8 4.0 3.2 3.7 3.3 2.4 4.5 3.9 7 3.4 3.9 4.2 4.2 23.5 0.3 2.8 66.8 3.7 72 68 73 51 3.5 4.5 114.7 42.4 68 65 95 45 79 57 92 90 66 57 3.9 4.5 4.0 4.0 3.3 3.9 3.3 3.5 4.4 3.9 69 12.01 Capacity for innovation 69 81 59 88 45 76 108 Trend 3.3 4.1 3.7 3.4 3.3 3.6 3.9 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 189
206. 2 .1: Country/Economy Profiles Greece 86 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 10.8 Population (millions) 195.3 GDP (US$ billions) 18064.3 GDP per capita (US$) 0.25 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 96 / 144 91 / 148 81 / 144 81 / 140 86 / 138 80 4.4 Score 3.9 3.9 4.0 4.0 4.0 81 3.8 37 4.8 131 2.9  4th pillar: Health and primary education 46 6.1 67 4.1  5th pillar: Higher education and training 45 4.9  6th pillar: Goods market efficiency 89 4.2  7th pillar: Labor market efficiency 114 3.8  8th pillar: Financial market development 136 2.5  9th pillar: Technological readiness 42 5.0  10th pillar: Market size 56 4.2 70 3.6  11th pillar: Business sophistication 69 3.9  12th pillar: Innovation 72 3.3 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Greece Most problematic factors for doing business Policy instability Tax rates Inefficient government bureaucracy Access to financing Tax regulations Government instability Inadequate supply of infrastructure Corruption Restrictive labor regulations Foreign currency regulations Poor work ethic in national labor force Insufficient capacity to innovate Inadequately educated workforce Poor public health Inflation Crime and theft 2013-14 4.0 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 86  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 17.6 17.1 15.6 14.0 12.1 9.3 3.8 3.6 3.5 1.0 0.9 0.8 0.6 0.1 0.1 0.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 190 | The Global Competitiveness Report 2016–2017
207. 2 .1: Country/Economy Profiles Greece The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 81 89 61 80 107 69 69 86 123 129 130 84 121 63 52 50 54 81 105 105 84 47 3.8 4.1 4.3 3.3 2.3 4.0 3.9 2.8 2.2 2.4 2.4 3.2 3.4 5.4 5.0 5.3 4.7 3.7 4.0 4.4 3.8 6.2 37 4.8 64 59 62 47 43 34 55 74 13 4.2 4.3 2.8 4.5 4.9 772.0 5.3 114.0 46.5 131 2.9 92 125 92 137 113 -4.2 9.8 -1.1 178.4 46 6.1 - n/a S.L. N/Appl. N/Appl. 7 36 1 42 29 21 82 43 45 25 1 108 62 80 97 106 76 4.8 6.3 0.2 6.1 3.6 81.3 3.8 97.2 4.9 108.2 110.2 3.0 4.3 4.0 3.7 3.8 3.8 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 89 73 61 97 136 109 41 77 126 55 5 93 113 71 105 46 71 4.2 5.1 3.8 3.4 2.1 49.6 5 13.0 3.0 4.5 1.0 4.2 3.8 4.0 31.0 5.0 3.4 114 3.8 105 122 99 69 135 86 95 124 130 78 4.0 4.0 3.4 15.9 2.6 3.7 3.8 2.6 2.1 0.78 136 2.5 132 133 136 137 135 134 125 97 42 58 73 104 54 19 37 75 56 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.0 2.5 2.1 1.7 1.8 2.7 3.2 3 5.0 4.9 4.4 3.9 66.8 30.7 100.9 45.6 4.2 51 60 53 84 4.0 4.8 286.0 30.4 69 84 56 117 47 66 63 58 95 90 3.9 4.3 4.4 3.0 4.0 3.8 3.7 4.0 4.1 3.6 72 12.01 Capacity for innovation 96 67 90 124 121 10 38 Trend 3.3 3.8 3.9 3.1 2.7 2.6 5.2 10.5 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 191
208. 2 .1: Country/Economy Profiles Guatemala 78 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 16.3 GDP per capita (US$) 3929.1 GDP (US$ billions) 63.9 GDP (PPP) % world GDP 0.11 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 78 4.1 Rank 83 / 144 86 / 148 78 / 144 78 / 140 78 / 138 93 4.3 Score 4.0 4.0 4.1 4.1 4.1 110 3.3 2nd pillar: Infrastructure 81 3.8  3rd pillar: Macroeconomic environment 57 4.9  4th pillar: Health and primary education 107 5.0 77 4.0 102 3.6 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 48 4.6  7th pillar: Labor market efficiency 99 3.9  8th pillar: Financial market development 18 4.9  9th pillar: Technological readiness 96 3.4  10th pillar: Market size 73 3.7 59 3.7 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 49 4.2  12th pillar: Innovation 82 3.2 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Guatemala Most problematic factors for doing business Crime and theft Corruption Inadequate supply of infrastructure Inefficient government bureaucracy Inadequately educated workforce Policy instability Tax regulations Restrictive labor regulations Poor public health Insufficient capacity to innovate Access to financing Tax rates Poor work ethic in national labor force Government instability Inflation Foreign currency regulations 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 19.7 17.7 14.1 11.0 7.8 6.0 5.5 5.3 3.5 3.1 2.7 1.7 1.3 0.6 0.0 0.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 192 | The Global Competitiveness Report 2016–2017
209. 2 .1: Country/Economy Profiles Guatemala The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 110 64 81 123 127 86 97 116 120 72 108 87 76 111 135 133 128 96 42 34 101 133 3.3 4.3 3.9 2.4 1.8 3.6 3.3 2.3 2.3 3.4 3.0 3.1 4.0 4.3 2.4 2.6 2.7 3.5 5.1 5.3 3.7 3.3 81 3.8 89 92 3.6 3.4 N/Appl. N/Appl. 86 98 101 43 80 80 57 3.7 3.9 45.8 5.7 111.5 10.6 4.9 31 117 1 19 74 -1.5 11.7 2.4 24.3 107 5.0 - 29 13 74 53 85 66 97 88 130 117 64.9 5.9 57.0 6.0 0.5 5.7 24.3 71.7 2.5 86.4 102 3.6 109 101 126 134 48 92 34 40 63.5 18.3 2.6 2.4 4.5 3.8 5.0 4.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 48 26 44 110 33 71 54 96 60 40 47 62 24 111 99 28 56 4.6 5.5 4.0 3.2 4.1 37.5 6 18.5 3.9 4.6 3.4 4.6 5.4 3.4 32.3 5.3 3.6 99 28 27 40 109 30 57 68 40 75 121 18 21 19 107 22 54 13 29 13 96 46 40 56 100 97 84 124 73 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.9 5.1 5.5 4.1 27.0 4.4 4.2 4.3 4.0 3.3 0.51 4.9 5.2 4.8 2.9 4.7 3.0 6.0 5.3 9 3.4 5.2 5.0 4.6 27.1 2.8 24.7 10.1 3.7 70 84 72 107 3.5 4.1 125.9 21.0 49 32 39 54 81 43 51 53 33 43 4.2 4.8 4.8 3.8 3.3 4.2 3.9 4.1 4.8 4.0 82 12.01 Capacity for innovation 46 94 63 59 127 65 104 Trend 3.2 4.4 3.5 3.3 3.5 2.5 4.0 0.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 193
210. 2 .1: Country/Economy Profiles Honduras 88 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 8.4 Population (millions) 20.3 GDP (US$ billions) 2406.6 GDP per capita (US$) 0.04 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 88 4.0 Rank 90 / 144 111 / 148 100 / 144 88 / 140 88 / 138 92 4.3 Score 3.9 3.7 3.8 4.0 4.0 109 3.3 2nd pillar: Infrastructure 99 3.3  3rd pillar: Macroeconomic environment 55 4.9  4th pillar: Health and primary education 83 5.6 98 3.7 101 3.6 94 4.1 118 3.6 36 4.5 106 3.1 97 3.1 82 3.5 73 3.8 102 3.1 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency  7th pillar: Labor market efficiency  8th pillar: Financial market development  9th pillar: Technological readiness  10th pillar: Market size Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Honduras Most problematic factors for doing business Inefficient government bureaucracy Tax rates Crime and theft Corruption Tax regulations Access to financing Inadequately educated workforce Policy instability Inadequate supply of infrastructure Restrictive labor regulations Government instability Poor public health Poor work ethic in national labor force Insufficient capacity to innovate Inflation Foreign currency regulations 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 15.3 13.8 13.5 13.2 13.0 6.9 4.9 4.2 3.9 3.3 2.3 1.5 1.4 1.3 0.8 0.8 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 194 | The Global Competitiveness Report 2016–2017
211. 2 .1: Country/Economy Profiles Honduras The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 109 98 68 112 101 97 114 95 119 121 92 101 100 109 134 136 131 95 46 39 56 108 3.3 4.0 4.1 2.6 2.4 3.5 2.9 2.7 2.3 2.7 3.2 3.0 3.7 4.4 2.4 2.5 2.5 3.5 5.0 5.2 4.2 4.3 99 3.3 83 76 3.7 3.8 N/Appl. N/Appl. 51 83 118 98 102 100 55 4.5 4.1 25.6 3.7 95.5 5.9 4.9 28 79 45 69 108 -1.4 18.8 3.2 47.4 83 5.6 - 32 25 64 77 76 84 84 85 104 79 138.2 5.4 43.0 5.4 0.4 5.0 17.4 73.1 3.1 94.0 101 3.6 104 97 99 109 96 83 85 50 68.4 21.2 3.2 3.2 3.8 4.0 4.1 4.2 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 94 79 93 87 125 95 126 81 90 82 53 77 53 112 30 66 101 4.1 5.0 3.4 3.5 2.8 44.3 12 14.0 3.5 4.3 4.0 4.4 4.8 3.4 63.7 4.7 3.0 118 3.6 38 93 55 123 97 69 99 71 73 119 36 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.5 4.6 4.0 2.5 4.3 2.8 5.8 5.0 9 106 3.1 97 4.6 4.5 4.6 20.4 2.3 23.6 17.2 3.1 98 88 98 33 2.7 4.0 41.1 51.5 73 85 65 67 104 84 68 81 42 69 3.8 4.3 4.3 3.7 3.0 3.7 3.6 3.6 4.7 3.7 102 12.01 Capacity for innovation 4.8 4.7 3.9 30.3 3.6 3.9 3.8 3.5 3.3 0.57 47 59 125 48 70 23 41 13 74 70 51 113 99 86 113 64 115 99 99 81 93 121 Trend 3.1 4.2 3.1 3.0 3.1 3.1 3.7 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 195
212. 2 .1: Country/Economy Profiles Hong Kong SAR 9 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 7.3 Population (millions) 309.9 GDP (US$ billions) 42389.6 GDP per capita (US$) 0.36 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 Global Competitiveness Index 9 5.5 Rank 9 / 144 7 / 148 7 / 144 7 / 140 9 / 138 Subindex A: Basic requirements 3 6.2 Score 5.4 5.5 5.5 5.5 5.5 9 5.7 2nd pillar: Infrastructure 1 6.7  3rd pillar: Macroeconomic environment 9 6.2  4th pillar: Health and primary education 26 6.3 4 5.6 14 5.7  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 2 5.7  7th pillar: Labor market efficiency 3 5.6  8th pillar: Financial market development 4 5.5  9th pillar: Technological readiness 5 6.2  10th pillar: Market size 33 4.8 23 4.8 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 17 5.2  12th pillar: Innovation 27 4.4 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development 5th pillar: Higher education and training 7th pillar: Labor market efficiency Hong Kong SAR Ranked for the fifth consecutive year in the top 10, Hong Kong SAR (9th, down two) achieves a strong and consistent performance: it ranks no lower than 33rd in any of the pillars and features in the top 10 pillars of seven of them. It tops the infrastructure pillar for the seventh time, reflecting the outstanding quality of its facilities across all modes of transportation. Its financial sector (4th) is very well developed, highly sophisticated, trustworthy, and stable. Hong Kong’s domestic market is highly competitive, efficient, and one of the most open in the world. Its labor market is among the world’s most flexible and efficient (3rd worldwide). Finally, Hong Kong is hyper-connected Most problematic factors for doing business Insufficient capacity to innovate Inefficient government bureaucracy Inflation Restrictive labor regulations Inadequately educated workforce Policy instability Inadequate supply of infrastructure Access to financing Poor work ethic in national labor force Foreign currency regulations Tax rates Government instability Corruption Tax regulations Poor public health Crime and theft 2nd pillar: Infrastructure 7 6th pillar: Goods market efficiency East Asia and Pacific flexible and efficient (3rd worldwide). Finally, Hong Kong is hyper-connected and it boasts some of the highest rates of Internet use and mobile telephony penetration. Its business community is also highly sophisticated (17th). The challenge for Hong Kong is to evolve from one of the world’s foremost financial hubs to become an innovative powerhouse: with the exception of the market size pillar (33rd), innovation remains the weakest aspect (27th) of Hong Kong’s performance and the business community consistently cites the capacity to innovate as their biggest concern. Source: World Economic Forum, Executive Opinion Survey 2015 17.7 14.5 11.7 11.4 9.9 9.8 6.5 4.4 3.5 2.5 2.0 2.0 1.8 1.2 1.1 0.1 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 196 | The Global Competitiveness Report 2016–2017
213. 2 .1: Country/Economy Profiles Hong Kong SAR The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 9 7 13 12 21 12 8 15 14 4 2 3 4 11 9 18 15 17 7 33 9 1 5.7 6.2 6.0 5.9 4.6 6.3 6.3 4.6 4.5 5.2 6.0 5.6 6.0 6.2 6.1 6.0 6.2 5.5 6.2 5.4 5.4 8.3 1 6.7 3 3 3 4 3 17 3 2 3 6.4 6.2 6.4 6.4 6.6 2768.0 6.8 228.8 59.2 9 6.2 4 43 40 1 17 1.5 24.8 3.0 0.1 26 6.3 - n/a M.F. N/Appl. N/Appl. 84 50 1 58 3 1 27 76 14 42 28 20 8 10 8 19 25 74.0 6.0 0.1 5.8 1.7 84.0 5.0 94.6 5.7 100.6 68.8 4.8 5.5 5.6 6.0 5.5 4.8 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 2 2 21 27 3 20 3 3 46 2 1 6 2 1 1 10 2 5.7 6.2 4.5 4.4 6.0 22.8 2 1.5 4.1 5.5 0.0 6.0 6.4 6.2 204.3 5.7 5.0 3 14 2 2 14 4 3 26 10 9 73 4 1 1 6 33 11 6 4 20 5 19 16 12 22 15 2 14 33 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 5.6 5.5 6.2 5.7 5.7 5.9 5.5 5.4 5.2 5.4 0.80 5.5 6.0 5.7 5.6 4.5 4.3 6.5 6.1 8 6.2 6.0 5.6 5.3 84.9 31.9 4155.7 107.0 4.8 40 9 43 1 4.3 6.0 414.6 198.4 17 3 8 15 19 20 16 26 11 25 5.2 5.7 5.6 5.0 5.3 5.1 4.9 5.2 5.4 4.5 27 12.01 Capacity for innovation 35 31 34 22 29 43 n/a Trend 4.4 4.7 4.8 4.0 4.6 3.8 4.3 n/a Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 197
214. 2 .1: Country/Economy Profiles Hungary 69 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 9.9 Population (millions) 120.6 GDP (US$ billions) 12239.9 GDP per capita (US$) 0.23 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 69 4.2 Rank 60 / 144 63 / 148 60 / 144 63 / 140 69 / 138 69 4.6 Score 4.3 4.2 4.3 4.2 4.2 114 3.3 2nd pillar: Infrastructure 62 4.2  3rd pillar: Macroeconomic environment 47 5.1  4th pillar: Health and primary education 78 5.6 56 4.3 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 72 4.4  6th pillar: Goods market efficiency 59 4.4  7th pillar: Labor market efficiency 80 4.1  8th pillar: Financial market development 70 4.0  9th pillar: Technological readiness 54 4.5  10th pillar: Market size 53 4.3 97 3.4 113 3.5 80 3.2 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Hungary Most problematic factors for doing business Policy instability Corruption Tax regulations Inadequately educated workforce Inefficient government bureaucracy Insufficient capacity to innovate Tax rates Access to financing Inadequate supply of infrastructure Poor work ethic in national labor force Poor public health Restrictive labor regulations Crime and theft Foreign currency regulations Inflation Government instability 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 21.0 20.5 9.7 8.8 8.3 7.8 5.4 5.0 3.8 3.6 3.4 1.5 0.8 0.4 0.1 0.0 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 198 | The Global Competitiveness Report 2016–2017
215. 2 .1: Country/Economy Profiles Hungary The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 114 134 85 108 97 57 102 135 92 123 114 108 136 89 17 81 70 136 110 111 60 73 3.3 2.9 3.8 2.7 2.5 4.3 3.1 1.9 2.6 2.6 2.9 2.8 2.7 4.8 5.7 4.6 4.3 2.6 3.9 4.3 4.1 5.5 62 4.2 49 69 44 103 73 69 73 63 34 4.5 4.1 3.5 3.2 4.3 188.1 4.8 118.9 31.2 47 5.1 45 34 63 109 53 -2.2 27.1 -0.1 75.5 78 5.6 - n/a M.F. N/Appl. N/Appl. 31 32 1 18 39 52 96 99 72 27 51 114 83 73 90 96 115 12.0 6.4 0.1 6.5 5.3 75.9 3.4 90.8 4.4 107.0 53.2 2.9 3.8 4.1 3.8 4.0 3.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 59 129 113 59 40 103 22 26 129 114 5 70 38 35 12 72 74 4.4 4.2 3.1 3.7 4.0 48.4 4 5.0 2.9 3.8 1.0 4.5 5.1 4.8 89.7 4.6 3.4 80 82 78 30 54 101 108 108 130 122 61 70 89 63 93 29 60 114 133 8 54 38 135 68 42 31 62 86 53 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.1 4.3 4.9 4.4 13.4 3.5 3.5 3.6 2.4 2.4 0.82 4.0 4.0 3.9 3.1 4.6 3.0 3.9 2.7 10 4.5 5.5 3.4 4.4 72.8 27.4 55.4 39.8 4.3 58 31 57 9 3.9 5.4 258.4 99.5 113 137 68 96 56 113 82 89 137 129 3.5 3.4 4.3 3.4 3.7 3.3 3.4 3.6 3.2 3.0 80 12.01 Capacity for innovation 101 39 98 109 114 83 27 Trend 3.2 3.8 4.5 3.0 2.9 2.7 3.8 23.7 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 199
216. 2 .1: Country/Economy Profiles Iceland 27 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 0.3 Population (millions) 16.7 GDP (US$ billions) 50854.6 GDP per capita (US$) 0.01 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 27 5.0 Rank 30 / 144 31 / 148 30 / 144 29 / 140 27 / 138 16 5.8 Score 4.7 4.7 4.7 4.8 5.0 17 5.4 2nd pillar: Infrastructure 19 5.6  3rd pillar: Macroeconomic environment 29 5.5  4th pillar: Health and primary education 7 6.6 32 4.7 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 11 5.9  6th pillar: Goods market efficiency 29 4.7  7th pillar: Labor market efficiency 10 5.2  8th pillar: Financial market development 53 4.2  9th pillar: Technological readiness 8 6.2  10th pillar: Market size 129 2.3 24 4.8 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 27 4.8  12th pillar: Innovation 21 4.7 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Iceland Most problematic factors for doing business Foreign currency regulations Tax rates Inflation Policy instability Access to financing Inefficient government bureaucracy Tax regulations Inadequate supply of infrastructure Government instability Insufficient capacity to innovate Restrictive labor regulations Inadequately educated workforce Corruption Poor work ethic in national labor force Poor public health Crime and theft 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 22.5 14.7 12.1 8.7 8.7 8.5 5.6 4.3 4.0 3.3 2.9 1.9 1.7 0.5 0.5 0.1 0 6 12 18 24 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 200 | The Global Competitiveness Report 2016–2017
217. 2 .1: Country/Economy Profiles Iceland The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 17 16 23 19 24 4 20 26 36 16 16 12 17 4 8 5 8 20 30 24 25 20 5.4 5.8 5.7 5.4 4.5 6.6 5.7 4.1 3.8 4.3 5.2 5.3 5.4 6.4 6.1 6.5 6.4 5.3 5.4 5.6 5.0 6.8 2nd pillar: Infrastructure 19 5.6  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 11 38 5.8 4.8 N/Appl. N/Appl. 8 11 65 8 73 12 29 5.9 6.0 220.7 6.7 114.0 49.9 5.5 9 48 1 99 51 0.7 23.5 1.6 67.6 7 6.6 - n/a S.L. N/Appl. N/Appl. 4 8 1 14 2 12 15 19 11 15 12 11 23 20 2 21 17 3.3 6.8 0.2 6.6 1.6 82.1 5.5 98.6 5.9 111.2 82.2 5.3 5.0 5.4 6.3 5.4 5.1 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 29 87 62 30 39 38 41 15 108 80 42 124 122 22 55 15 25 4.7 4.8 3.8 4.3 4.1 29.6 5 4.0 3.2 4.3 2.9 3.4 3.6 5.1 48.5 5.6 4.1 10 12 121 4 50 52 14 20 14 33 12 53 37 98 37 32 27 74 55 68 8 8 3 82 1 10 5 18 129 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 5.2 5.6 4.0 5.6 13.0 4.1 4.9 5.5 4.9 4.0 0.95 4.2 4.7 3.4 4.3 4.5 3.6 4.7 4.6 5 6.2 6.4 6.0 4.2 98.2 37.0 725.8 93.4 2.3 129 115 129 30 1.9 3.5 15.2 53.8 27 100 30 42 27 27 23 19 27 15 4.8 4.2 5.1 4.1 4.7 4.5 4.6 5.5 5.0 5.0 21 12.01 Capacity for innovation 23 20 21 16 36 15 17 Trend 4.7 5.1 5.4 4.6 4.8 3.7 5.0 105.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 201
218. 2 .1: Country/Economy Profiles India 39 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 1292.7 GDP per capita (US$) 1617.3 GDP (US$ billions) 2090.7 GDP (PPP) % world GDP 7.02 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 39 4.5 Rank 59 / 144 60 / 148 71 / 144 55 / 140 39 / 138 63 4.6 Score 4.3 4.3 4.2 4.3 4.5 42 4.4 2nd pillar: Infrastructure 68 4.0  3rd pillar: Macroeconomic environment 75 4.5  4th pillar: Health and primary education 85 5.5 46 4.4 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 81 4.1  6th pillar: Goods market efficiency 60 4.4  7th pillar: Labor market efficiency 84 4.1  8th pillar: Financial market development 38 4.4  9th pillar: Technological readiness 110 3.0  10th pillar: Market size 3 6.4 30 4.2 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 35 4.4  12th pillar: Innovation 29 4.0 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development 7th pillar: Labor market efficiency India India climbs for the second year in a row, to 39th. Its 16-place improvement is the largest this year. India’s competitiveness has improved across the board, in particular in goods market efficiency, business sophistication, and innovation. Thanks to improved monetary and fiscal policies, as well as lower oil prices, the Indian economy has stabilized and now boasts the highest growth among G20 countries. Recent reform efforts have concentrated on improving public institutions (up 16), opening the economy to foreign investors and international trade (up four), and increasing transparency in the financial system (up 15). Still, a lot needs to be done. The labor market is segmented between workers protected by rigid regulations and centralized wage determination (112th), especially in the manufacturing sector, and millions of unprotected and informal workers. The efficiency of the domestic market (81st) is hindered by fiscal regulations that allow federal states to levy Most problematic factors for doing business Tax regulations Corruption Tax rates Poor public health Inflation Crime and theft Insufficient capacity to innovate Poor work ethic in national labor force Government instability Foreign currency regulations Restrictive labor regulations Inadequate supply of infrastructure Policy instability Inefficient government bureaucracy Access to financing Inadequately educated workforce 2nd pillar: Infrastructure 7 6th pillar: Goods market efficiency South Asia market (81st) is hindered by fiscal regulations that allow federal states to levy different levels of value-added taxes; large, publicly owned enterprises further reduce the overall efficiency of the economy, especially in the utilities sector and the financial market, where there is growing concern about the incidence of non-performing loans. Finally, lack of infrastructure (68th) and ICT use (120th) remain bottlenecks. Improvement has been slow in recent years and further investment will be necessary, especially to connect rural areas and make sure they can equally benefit from and contribute to the country’s development. See Box 6 of Chapter 1.1 of the Global Competitiveness Report 2016-2017 for an analysis of India's performance over the past decade. Source: World Economic Forum, Executive Opinion Survey 2016 11.7 10.9 9.6 8.5 7.4 7.4 7.3 6.0 5.7 4.6 4.4 4.2 3.6 3.5 2.8 2.5 0 3 6 9 12 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 202 | The Global Competitiveness Report 2016–2017
219. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 42 101 42 34 31 49 54 29 50 23 32 29 51 122 81 97 53 37 64 94 37 8 4.4 3.9 4.5 4.5 4.2 4.5 4.3 4.1 3.5 4.1 4.6 4.4 4.4 4.0 4.4 4.3 4.7 4.5 4.7 4.6 4.5 7.3 68 4.0 51 51 23 48 63 8 88 123 114 4.5 4.4 4.5 4.5 4.5 4324.2 4.3 78.8 2.0 75 4.5 119 15 101 98 47 -7.2 32.0 4.9 67.2 85 5.5 - 41 57 111 129 60 127 115 106 40 92 1312.4 3.6 167.0 3.7 0.3 3.7 37.9 68.0 4.7 92.3 81 4.1 102 93 29 44 43 74 55 30 68.9 23.9 4.5 4.6 4.6 4.2 4.5 4.6 Trend Rank / 138  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 60 96 31 31 25 123 132 115 44 47 123 72 71 37 121 71 17 84 67 112 15 67 37 33 66 32 22 130 38 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Value 4.1 4.4 4.3 4.8 15.7 4.4 4.5 4.3 4.3 4.4 0.35 4.4 4.6 4.3 4.4 4.4 4.4 4.7 4.5 6 110 3.0 78 81 54 102 106 117 127 4.5 4.4 4.6 26.0 1.3 5.7 9.4 3 6.4 3 4 3 112 6.4 6.4 7965.2 20.2 35 36 59 27 36 26 28 45 61 56 4.4 4.8 4.4 4.5 4.2 4.6 4.4 4.3 4.5 3.9 39 36 28 24 7 36 64 Trend 4.4 4.7 4.2 4.3 4.5 60.6 13 29.0 4.1 4.6 13.0 4.4 4.6 4.6 24.6 4.6 4.5 45 38 31 39 9 75 58 46 29 12.01 Capacity for innovation India 4.0 4.6 4.6 4.3 4.5 4.5 4.6 1.6 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 203
220. 2 .1: Country/Economy Profiles Indonesia 41 Key Indicators, 2015 st Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 255.5 GDP per capita (US$) 3362.4 GDP (US$ billions) 859.0 GDP (PPP) % world GDP 2.50 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 41 4.5 Rank 50 / 144 38 / 148 34 / 144 37 / 140 41 / 138 52 4.8 Score 4.4 4.5 4.6 4.5 4.5 56 4.1 2nd pillar: Infrastructure 60 4.2  3rd pillar: Macroeconomic environment 30 5.5  4th pillar: Health and primary education 100 5.3 49 4.4 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 63 4.5  6th pillar: Goods market efficiency 58 4.4  7th pillar: Labor market efficiency 108 3.8  8th pillar: Financial market development 42 4.3  9th pillar: Technological readiness 91 3.5  10th pillar: Market size 10 5.7 32 4.2 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 39 4.3  12th pillar: Innovation 31 4.0 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Indonesia Indonesia (41st) drops four places as it is overtaken by a few countries. Despite many reforms to its business environment, its performance remains one of contrasts: the country ranks 10th for market size, 30th in the macroeconomic environment pillar—in spite of the protracted commodity bust—and 31st for innovation. It performs well in terms of financial development (42nd, up seven). But Indonesia ranks a low 100th in the health and basic education pillar (down 20),36 and 108th in the labor market efficiency pillar (up seven) as a result of various rigidities, prohibitive Most problematic factors for doing business Corruption Inefficient government bureaucracy Inadequate supply of infrastructure Access to financing Inflation Policy instability Poor work ethic in national labor force Tax rates Inadequately educated workforce Tax regulations Foreign currency regulations Government instability Poor public health Crime and theft Insufficient capacity to innovate Restrictive labor regulations 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency East Asia and Pacific efficiency pillar (up seven) as a result of various rigidities, prohibitive redundancy costs that amount to over a year’s worth of salary (133rd), and the low labor force participation rate of women (115th). Indonesia also ranks a low 91st in the technological readiness pillar (down six) because ICT penetration remains low—only one fifth of the population uses the Internet and there is just one broadband connection for every 100 people. However, technology uptake by firms is more widespread (53rd). Source: World Economic Forum, Executive Opinion Survey 2016 11.8 9.3 9.0 8.6 7.6 6.5 6.3 6.1 5.6 4.8 4.6 4.1 4.0 4.0 3.7 3.7 0 3 6 9 12 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 204 | The Global Competitiveness Report 2016–2017
221. 2 .1: Country/Economy Profiles Indonesia The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 56 60 50 51 49 84 60 39 30 37 52 42 62 115 102 108 71 46 80 68 47 79 4.1 4.4 4.3 3.9 3.6 3.6 4.1 3.8 3.9 3.9 4.0 3.9 4.3 4.2 3.9 4.1 4.3 4.3 4.4 4.9 4.3 5.3 60 4.2 80 75 39 75 62 14 89 38 86 3.8 3.9 3.8 3.9 4.5 3228.4 4.2 132.3 8.8 30 5.5 53 14 111 22 56 -2.5 32.5 6.4 27.3 100 5.3 - 43 47 132 122 85 124 95 102 54 106 1611.3 4.3 399.0 4.1 0.5 3.9 22.8 68.9 4.3 89.7 63 4.5 92 82 39 53 49 43 49 34 82.5 31.1 4.4 4.4 4.5 4.9 4.7 4.5 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 58 51 43 51 37 39 133 126 40 91 62 60 91 73 129 49 38 4.4 5.3 4.0 3.9 4.1 29.7 13 47.8 4.2 4.2 4.4 4.7 4.3 4.0 20.1 4.9 3.8 108 3.8 45 109 27 133 43 29 41 35 28 115 42 34 36 29 26 20 72 60 68 91 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.7 4.3 4.4 57.8 4.2 4.6 4.7 4.2 4.2 0.61 4.3 4.8 4.4 4.4 4.7 3.8 4.8 4.5 5 3.5 73 39 50 107 108 112 79 4.7 5.0 4.6 22.0 1.1 6.6 42.0 10 5.7 8 18 8 113 5.7 5.8 2842.2 20.0 39 40 70 29 54 36 39 59 35 27 4.3 4.7 4.3 4.5 3.7 4.3 4.1 4.0 4.8 4.5 31 12.01 Capacity for innovation 32 41 26 28 12 38 99 Trend 4.0 4.7 4.4 4.4 4.4 4.3 4.5 0.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 205
222. 2 .1: Country/Economy Profiles Iran, Islamic Rep. 76 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 79.5 Population (millions) 387.6 GDP (US$ billions) 4877.1 GDP per capita (US$) 1.21 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 76 4.1 Rank 66 / 144 82 / 148 83 / 144 74 / 140 76 / 138 61 4.6 Score 4.2 4.1 4.0 4.1 4.1 90 3.6 2nd pillar: Infrastructure 59 4.2  3rd pillar: Macroeconomic environment 72 4.6  4th pillar: Health and primary education 49 6.1 89 3.9 60 4.6 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 111 4.0  7th pillar: Labor market efficiency 134 3.2  8th pillar: Financial market development 131 2.9  9th pillar: Technological readiness 97 3.3  10th pillar: Market size 19 5.2 101 3.3 109 3.5 89 3.2 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Iran, Islamic Rep. Most problematic factors for doing business Access to financing Inflation Inefficient government bureaucracy Policy instability Corruption Inadequate supply of infrastructure Foreign currency regulations Restrictive labor regulations Tax rates Inadequately educated workforce Poor work ethic in national labor force Insufficient capacity to innovate Tax regulations Crime and theft Government instability Poor public health 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Middle East and North Africa Source: World Economic Forum, Executive Opinion Survey 2016 14.8 12.2 12.1 10.9 10.0 9.2 5.4 4.8 4.6 4.0 3.6 3.3 3.0 1.5 0.6 0.1 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 206 | The Global Competitiveness Report 2016–2017
223. 2 .1: Country/Economy Profiles Iran, Islamic Rep. The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 90 104 126 83 52 92 91 49 81 97 76 96 116 105 79 90 73 85 116 128 117 117 3.6 3.9 3.2 3.3 3.4 3.5 3.5 3.4 2.9 3.1 3.5 3.0 3.5 4.5 4.4 4.3 4.3 3.6 3.8 4.0 3.5 4.0 59 4.2 76 68 46 73 111 53 63 104 23 4.0 4.1 3.5 3.9 3.4 376.9 5.0 93.4 38.3 72 4.6 66 22 131 9 105 -2.9 30.1 12.0 17.1 49 6.1 - 8 17 50 74 1 78 75 60 65 11 0.0 5.7 22.0 5.6 0.1 5.3 13.4 75.4 4.1 99.2 60 4.6 79 33 97 48 90 113 78 121 88.4 66.0 3.3 4.6 3.9 3.5 4.1 3.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 111 126 75 45 78 94 94 87 95 88 138 137 133 109 135 127 49 4.0 4.2 3.6 3.9 3.5 44.1 8 15.0 3.4 4.2 28.0 2.4 3.2 3.4 14.5 3.8 3.6 134 3.2 124 123 78 102 78 113 130 122 126 137 3.7 4.0 3.6 23.1 3.8 3.4 3.3 2.6 2.2 0.22 131 2.9 117 108 106 124 110 122 128 108 97 107 124 84 88 68 108 109 19 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.5 3.2 3.0 2.8 2.3 3.7 3.0 2 3.3 4.0 3.7 4.2 44.1 10.9 8.5 20.0 5.2 18 32 18 119 5.1 5.4 1371.1 18.7 109 66 107 81 105 100 101 78 130 130 3.5 4.5 3.7 3.6 2.9 3.5 3.2 3.6 3.6 2.9 89 12.01 Capacity for innovation 108 66 89 105 66 44 100 Trend 3.2 3.7 3.9 3.1 3.0 3.3 4.3 0.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 207
224. 2 .1: Country/Economy Profiles Ireland 23 Key Indicators, 2015 rd Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 4.6 Population (millions) 238.0 GDP (US$ billions) 51350.7 GDP per capita (US$) 0.23 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 23 5.2 Rank 27 / 144 28 / 148 25 / 144 24 / 140 23 / 138 21 5.6 Score 4.9 4.9 5.0 5.1 5.2 12 5.6 2nd pillar: Infrastructure 29 5.2  3rd pillar: Macroeconomic environment 43 5.2  4th pillar: Health and primary education 13 6.5 20 5.1 13 5.7 5 5.4 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency  7th pillar: Labor market efficiency 12 5.1  8th pillar: Financial market development 67 4.0  9th pillar: Technological readiness 12 6.1  10th pillar: Market size 54 4.3 19 5.0 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 16 5.2  12th pillar: Innovation 19 4.8 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Ireland Most problematic factors for doing business Inadequate supply of infrastructure Tax rates Access to financing Inefficient government bureaucracy Insufficient capacity to innovate Poor public health Restrictive labor regulations Policy instability Tax regulations Inadequately educated workforce Poor work ethic in national labor force Government instability Inflation Foreign currency regulations Crime and theft Corruption 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America Source: World Economic Forum, Executive Opinion Survey 2016 26.4 15.9 15.7 9.2 9.0 4.4 4.2 4.2 4.0 2.3 1.9 1.3 1.0 0.4 0.0 0.0 0 7 14 21 28 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 208 | The Global Competitiveness Report 2016–2017
225. 2 .1: Country/Economy Profiles Ireland The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 12 8 9 9 14 9 6 10 32 9 30 16 11 16 42 24 19 16 54 14 33 8 5.6 6.2 6.0 6.0 4.9 6.4 6.4 5.2 3.8 4.7 4.7 4.9 5.8 6.1 5.2 5.8 6.1 5.6 4.9 6.0 4.7 7.3 2nd pillar: Infrastructure 29 5.2  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 38 32 35 26 25 42 18 95 19 4.7 5.0 4.0 5.2 5.6 589.1 6.5 103.7 40.9 43 5.2 36 30 62 123 32 -1.6 27.7 -0.0 95.2 13 6.5 - n/a S.L. N/Appl. N/Appl. 21 22 60 17 17 22 7 73 13 9 23 6 21 13 36 10 23 7.4 6.5 0.3 6.5 3.0 81.2 5.8 94.9 5.7 126.1 73.2 5.5 5.1 5.5 5.0 5.8 4.8 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 5 64 20 17 17 28 22 34 10 4 5 2 1 6 10 21 20 5.4 5.2 4.6 5.0 4.7 25.9 4 6.0 5.0 5.4 1.0 6.2 6.4 5.7 93.6 5.5 4.4 12 19 42 14 57 85 7 7 18 7 68 67 68 81 55 91 38 111 66 28 12 24 23 1 29 28 19 17 54 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 5.1 5.3 5.4 4.8 14.3 3.7 5.3 6.2 4.7 5.5 0.81 4.0 4.2 3.6 3.8 3.5 3.2 4.0 4.4 7 6.1 5.9 5.4 6.3 80.1 27.7 155.5 95.0 4.3 59 30 58 6 3.9 5.4 257.4 104.3 16 50 20 17 17 11 24 10 22 18 5.2 4.7 5.2 4.9 5.6 5.3 4.6 6.0 5.1 4.9 19 12.01 Capacity for innovation 16 15 20 13 47 12 20 Trend 4.8 5.3 5.6 4.8 5.1 3.6 5.2 83.8 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 209
226. 2 .1: Country/Economy Profiles Israel 24 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 8.4 Population (millions) 296.1 GDP (US$ billions) 35343.3 GDP per capita (US$) 0.25 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 24 5.2 Rank 26 / 144 27 / 148 27 / 144 27 / 140 24 / 138 28 5.4 Score 5.0 4.9 4.9 5.0 5.2 31 4.8 2nd pillar: Infrastructure 28 5.3  3rd pillar: Macroeconomic environment 48 5.1  4th pillar: Health and primary education 28 6.3 25 5.0 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 24 5.4  6th pillar: Goods market efficiency 32 4.7  7th pillar: Labor market efficiency 21 4.8  8th pillar: Financial market development 19 4.9  9th pillar: Technological readiness 22 5.8  10th pillar: Market size 57 4.2 8 5.4 21 5.1 2 5.7 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Israel Most problematic factors for doing business Inefficient government bureaucracy Tax rates Policy instability Inadequately educated workforce Access to financing Tax regulations Restrictive labor regulations Government instability Inadequate supply of infrastructure Foreign currency regulations Corruption Insufficient capacity to innovate Poor work ethic in national labor force Crime and theft Inflation Poor public health 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Middle East and North Africa Source: World Economic Forum, Executive Opinion Survey 2016 18.6 15.5 8.7 8.1 8.1 7.2 7.1 6.0 5.8 4.5 3.5 2.9 2.5 0.7 0.5 0.4 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 210 | The Global Competitiveness Report 2016–2017
227. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 31 30 22 37 51 27 14 46 78 46 37 32 39 125 54 58 42 32 16 29 18 8 4.8 5.4 5.7 4.4 3.4 5.5 6.1 3.5 3.0 3.7 4.5 4.4 4.6 3.4 5.0 5.1 5.1 4.7 5.8 5.5 5.1 7.3 28 5.3 39 33 45 50 30 44 28 34 16 4.7 4.9 3.5 4.5 5.4 574.3 6.2 133.5 43.1 48 5.1 68 47 79 96 35 -3.0 23.5 -0.6 64.6 28 6.3 - n/a S.L. N/Appl. N/Appl. 12 11 1 9 21 11 45 50 24 39 31 24 35 22 27 29 28 5.8 6.8 0.2 6.6 3.2 82.2 4.5 96.7 5.4 101.9 66.2 4.7 4.7 5.4 5.3 5.1 4.6 Trend Rank / 138  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 12.01 Capacity for innovation 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 32 65 83 35 38 41 41 77 27 53 44 43 40 43 112 53 27 21 31 54 21 112 38 28 25 25 38 30 19 30 46 27 27 2 18 21 46 22 6 15 6 31 30 41 62 57 Israel Value 4.8 5.0 5.2 4.5 27.4 4.3 4.6 5.4 4.5 3.9 0.90 4.9 4.9 4.2 4.6 4.7 4.8 5.9 5.5 6 5.8 6.4 5.7 5.4 78.9 27.4 89.6 56.1 4.2 55 57 54 73 4.0 4.8 281.9 33.1 21 57 31 34 5 19 14 13 10 32 5.1 4.6 5.1 4.2 6.2 5.2 5.0 5.8 5.4 4.2 2 5.7 4 3 3 3 9 8 5 Trend 4.7 5.2 3.5 4.2 4.1 30.6 5 13.0 4.4 4.6 3.0 5.0 5.0 4.6 29.4 4.9 4.1 5.9 6.2 5.7 5.6 4.4 5.3 246.6 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 211
228. 2 .1: Country/Economy Profiles Italy 44 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 60.8 Population (millions) 1815.8 GDP (US$ billions) 29866.6 GDP per capita (US$) 1.91 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 44 4.5 Rank 42 / 144 49 / 148 49 / 144 43 / 140 44 / 138 47 4.9 Score 4.5 4.4 4.4 4.5 4.5 103 3.5 2nd pillar: Infrastructure 25 5.4  3rd pillar: Macroeconomic environment 98 4.2  4th pillar: Health and primary education 23 6.4 43 4.4 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 43 4.9  6th pillar: Goods market efficiency 67 4.3  7th pillar: Labor market efficiency 119 3.6  8th pillar: Financial market development 122 3.1  9th pillar: Technological readiness 40 5.0  10th pillar: Market size 12 5.6 28 4.4 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 25 4.8  12th pillar: Innovation 32 3.9 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Italy Italy’s competitiveness score has improved but more slowly than others’, and it slips one spot to 44th. Its financial and labor markets and institutions continue to be its weakest areas, with rankings below 100th. Reforms implemented in recent years have improved businesses’ perception of ethics and corruption (up 14), but public-sector performance remains poor, with pervasive red tape and a highly inefficient judicial system. Italy’s labor market has become more efficient (up 17 since 2014): hiring and firing practices have been made more flexible and a framework was provided for more decentralized wage determination, but the full benefits of these reforms will require time and more cooperative labor-employer relations. In the meantime, Italy continues to squander its talent: in the south of the country, only one in three women work (according to the Italian Institute of Statistics (ISTAT), women’s employment rate in southern Italy was 30.6 percent in Most problematic factors for doing business Tax rates Inefficient government bureaucracy Access to financing Tax regulations Restrictive labor regulations Corruption Inadequate supply of infrastructure Insufficient capacity to innovate Policy instability Inadequately educated workforce Poor work ethic in national labor force Crime and theft Inflation Government instability Poor public health Foreign currency regulations 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Europe and North America (ISTAT), women’s employment rate in southern Italy was 30.6 percent in 2015), while reforms to the pension system introduced in 2012, albeit necessary, have further closed the job market to youth. Financial market development (122nd) is Italy’s weakest link: thebanking sector is burdened by non-performing loans, and some institutions need recapitalization. Recent scandals in mutual banks have further undermined trust, while governance issues—including the strong link with local banking foundations—have been only partially addressed. Italy has strengthened its macroeconomic position, but public debt remains high in light of low inflation. Innovation and business sophistication remain among the strengths of the Italian economy and Italy continues to improve important dimensions of its digital readiness as seen in the World Economic Forum’s Global Information Technology Report 2016. Source: World Economic Forum, Executive Opinion Survey 2016 19.6 18.9 12.8 12.6 11.5 6.4 5.0 3.7 3.0 2.4 2.2 0.9 0.5 0.2 0.2 0.1 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 212 | The Global Competitiveness Report 2016–2017
229. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 103 94 53 87 116 56 74 120 130 136 136 125 128 79 98 122 72 100 99 120 122 36 3.5 4.0 4.3 3.2 1.9 4.3 3.8 2.2 1.9 2.0 2.2 2.5 3.1 5.1 4.0 3.5 4.3 3.5 4.1 4.2 3.4 6.3 25 5.4 57 46 31 56 60 19 38 19 32 4.3 4.6 4.1 4.4 4.6 2613.1 5.9 151.3 33.1 98 4.2 54 78 53 135 37 -2.6 18.9 0.1 132.6 23 6.4 - n/a M.F. N/Appl. N/Appl. 14 21 60 29 13 5 39 34 43 35 39 63 47 27 80 37 117 6.0 6.6 0.3 6.3 2.9 82.7 4.7 97.6 4.9 102.4 63.5 3.8 4.6 5.2 4.1 5.0 3.4 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 67 46 14 56 137 129 41 28 87 33 5 112 85 61 115 48 48 4.3 5.3 5.0 3.8 1.9 64.8 5 5.5 3.5 4.7 1.0 3.8 4.4 4.3 28.0 4.9 3.6 119 3.6 111 131 124 12 130 127 102 107 105 89 3.9 3.4 2.8 4.5 2.7 3.1 3.7 2.9 2.6 0.74 122 3.1 120 106 76 116 131 106 116 108 40 48 64 105 55 37 45 25 12 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 5.0 5.2 4.6 3.9 65.6 23.8 77.3 82.1 5.6 5.5 5.9 2170.9 30.7 25 11 19 5 14 12 34 23 54 125 4.8 5.2 5.3 5.4 5.8 5.3 4.3 5.2 4.6 3.1 33 32 35 45 89 31 24 Trend 3.5 3.2 3.4 3.0 2.0 4.2 3.4 2 12 16 12 82 32 12.01 Capacity for innovation Italy 3.9 4.7 4.7 3.9 3.7 3.0 4.7 56.6 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 213
230. 2 .1: Country/Economy Profiles Jamaica 75 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 2.8 Population (millions) 13.9 GDP (US$ billions) 4948.0 GDP per capita (US$) 0.02 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 97 / 144 94 / 148 86 / 144 86 / 140 75 / 138 76 4.4 Score 3.8 3.9 4.0 4.0 4.1 73 3.9 77 3.9 112 3.9  4th pillar: Health and primary education 47 6.1 78 4.0  5th pillar: Higher education and training 90 4.0  6th pillar: Goods market efficiency 61 4.4  7th pillar: Labor market efficiency 60 4.4  8th pillar: Financial market development 30 4.6  9th pillar: Technological readiness 77 3.8  10th pillar: Market size 119 2.7 61 3.7  11th pillar: Business sophistication 57 4.1  12th pillar: Innovation 70 3.3 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 10th pillar: Market size 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Jamaica Most problematic factors for doing business Crime and theft Inefficient government bureaucracy Tax rates Corruption Poor work ethic in national labor force Inadequately educated workforce Access to financing Tax regulations Inadequate supply of infrastructure Insufficient capacity to innovate Inflation Foreign currency regulations Restrictive labor regulations Poor public health Policy instability Government instability 2013-14 4.1 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 75  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Latin America and the Caribbean Source: World Economic Forum, Executive Opinion Survey 2016 16.5 14.4 11.9 8.0 7.3 7.0 6.8 5.7 5.2 4.2 4.1 3.3 2.1 1.4 1.3 0.6 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 214 | The Global Competitiveness Report 2016–2017
231. 2 .1: Country/Economy Profiles Jamaica The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 73 45 47 77 91 77 35 91 117 96 79 73 65 71 136 134 95 62 39 40 35 57 3.9 4.7 4.4 3.3 2.6 3.8 4.9 2.8 2.3 3.1 3.4 3.4 4.2 5.2 2.3 2.6 3.8 3.9 5.2 5.2 4.6 5.8 77 3.9 70 79 4.1 3.8 N/Appl. N/Appl. 41 41 75 76 79 84 112 4.7 5.0 157.3 4.7 111.5 9.0 3.9 20 114 97 133 97 -0.4 12.4 4.7 124.3 47 6.1 - n/a M.F. N/Appl. N/Appl. 6 61 118 98 76 55 59 29 90 103 88 61 88 37 53 40 61 4.7 5.9 1.6 4.7 13.5 75.7 4.2 98.0 4.0 68.8 27.8 3.8 3.7 4.8 4.6 4.8 4.0 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 61 28 81 46 103 61 3 9 55 11 99 32 22 78 50 120 70 4.4 5.5 3.5 3.9 3.2 35.2 2 3.0 3.9 5.1 9.7 5.1 5.4 3.8 51.3 3.9 3.4 60 83 56 64 56 57 92 34 98 85 60 30 67 91 26 81 107 39 32 8 77 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.4 4.3 5.2 3.8 14.0 4.0 3.7 4.7 3.0 3.1 0.83 4.6 4.3 3.5 4.6 3.6 2.3 5.6 5.2 10 3.8 45 50 67 89 82 101 66 5.3 4.8 4.4 43.2 5.8 13.3 53.5 119 2.7 117 119 119 88 2.4 3.4 24.6 29.8 57 37 60 75 50 69 66 69 38 74 4.1 4.7 4.4 3.7 3.9 3.8 3.7 3.8 4.8 3.6 70 12.01 Capacity for innovation 55 52 72 67 106 97 78 Trend 3.3 4.3 4.1 3.3 3.4 2.8 3.6 0.6 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 215
232. 2 .1: Country/Economy Profiles Japan 8 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 126.9 Population (millions) 4123.3 GDP (US$ billions) 32485.5 GDP per capita (US$) 4.25 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 10 / 144 9 / 148 6 / 144 6 / 140 8 / 138 22 5.6 Score 5.4 5.4 5.5 5.5 5.5 16 5.4 5 6.3 104 4.1  4th pillar: Health and primary education 5 6.6 10 5.4  5th pillar: Higher education and training 23 5.4  6th pillar: Goods market efficiency 16 5.2  7th pillar: Labor market efficiency 19 4.8  8th pillar: Financial market development 17 4.9  9th pillar: Technological readiness 19 5.8  10th pillar: Market size 4 6.1 4 5.6  11th pillar: Business sophistication 2 5.7  12th pillar: Innovation 8 5.4 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Japan Japan places, overtaken overtaken by Sweden Japan (8th) (8th) loses loses three two places, Sweden and and the theUnited United (104th) continues to to undermine Kingdom. Kingdom.The Themacroeconomic macroeconomicsituation situation (104th) continues undermine Japan’s although thethe situation hashas improved Japan’s competitiveness competitivenessperformance, performance, although situation improved over the very large, the past pastyear year(up (up17 17places) places)thanks thankstotoa alower, lower,yet yetstill still very large, budget again very close to zero andand thethe 2 percent budget deficit. deficit.Inflation Inflationisisnow now again very close to zero 2 percent target met only once since Shinzo AbeAbe target set setby bythe theBank BankofofJapan Japanhas hasbeen been met only once since Shinzo became byby thethe rigidities andand lacklack of of became Prime Prime Minister. Minister.Japan Japanisisalso alsobeset beset rigidities dynamism eight places, Japan dynamism of ofits itslabor labormarket market(19th). (19th).Despite Despiteprogressing progressing eight places, still ranks low 115th the ease of hiring and firing. Thefiring. ratio The of women to Japan stillaranks a lowon115th on the ease of hiring and ratio of men in the labor force (77th) is one of the lowest among high-income women to men in the labor force (77th) is one of the lowest among higheconomies. And Japan a rather unattractive destination for foreign income economies andremains Japan remains a rather unattractive destination talent (77th). The domestic market is relatively uncompetitive and closed, Most problematic factors for doing business Tax rates Restrictive labor regulations Insufficient capacity to innovate Inefficient government bureaucracy Tax regulations Policy instability Government instability Inadequate supply of infrastructure Access to financing Inadequately educated workforce Foreign currency regulations Poor work ethic in national labor force Inflation Crime and theft Poor public health Corruption 2013-14 5.5 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 8  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency East Asia and Pacific talent (77th). The(77th). domestic is relatively uncompetitive and closed, for foreign talent Themarket domestic market is relatively uncompetitive withclosed, high barriers to entry and to business On the brighterOn side, and with high barriers entry andcreation. to business creation. the Japan features in thefeatures top 10 of boasts an excellent brighter side, Japan infive the pillars. top 10 Itofnotably five pillars. It notably boasts infrastructure (5th) and firms areand highly sophisticated (2nd), typically(2nd), an excellent infrastructure (5th) firms are highly sophisticated employing unique products and production processes processes (2nd) with significant typically employing unique products and production (2nd) control over international distribution (5th).distribution High-quality(5th). research institutions with significant control over international High-quality R&D (4th), coupledonwith an(4th), excellent (13th) and company (13th) spending research institutions andon company spending R&D coupled availability of scientists and engineers (3rd), to (3rd), the country’s with an excellent availability of scientists andcontribute engineers contribute highly innovative environment (5th). Yet Japan’s(5th). innovation prowess tooverall the country’s overall highly innovative environment Yet Japan’s seems to be eroding: consistently ranked in the top 5 between 2007 innovation prowess seems to be eroding: consistently ranked in theand top 5 2015, Japan three positions and three now ranks 8th. and now ranks 8th. between 2007loses and 2015, Japan loses positions Source: World Economic Forum, Executive Opinion Survey 2016 24.2 19.3 17.2 13.3 8.9 6.6 2.7 2.1 1.7 1.4 1.1 0.7 0.4 0.2 0.2 0.0 0 7 14 21 28 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 216 | The Global Competitiveness Report 2016–2017
233. 2 .1: Country/Economy Profiles The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 16 11 14 20 26 15 15 13 22 54 15 22 13 77 34 48 18 11 17 20 13 36 5.4 6.2 5.9 5.4 4.4 6.2 6.1 4.9 4.1 3.6 5.3 4.6 5.6 5.1 5.3 5.4 6.1 5.7 5.8 5.7 5.3 6.3 5 6.3 6 5 1 22 24 4 15 57 11 6.2 6.1 6.7 5.3 5.6 5977.1 6.5 125.1 50.2 104 4.1 105 42 1 138 19 -5.2 25.3 0.8 248.1 5 6.6 - n/a S.L. N/Appl. N/Appl. 42 43 1 36 5 2 11 3 23 36 42 37 18 58 38 23 10 18.0 6.2 <0.1 6.1 2.0 83.6 5.6 100.0 5.4 101.9 62.4 4.4 5.2 4.4 5.0 5.3 5.3 Trend Rank / 138  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation 16 1 1 5 53 113 94 64 116 89 38 24 36 27 130 1 5 19 7 9 115 7 40 24 16 38 77 77 17 16 5 13 6 26 29 13 86 19 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. Value 4.8 5.8 6.0 3.2 4.3 4.3 4.7 5.7 4.1 3.2 0.78 4.9 5.4 5.5 5.2 5.3 3.6 5.8 5.8 4 5.8 6.2 5.6 4.9 93.3 30.5 62.6 126.4 4 6.1 4 6 4 118 6.0 6.1 4830.1 19.0 2 1 2 8 2 1 5 2 28 20 5.7 6.2 6.1 5.2 6.3 6.2 5.4 6.3 5.0 4.7 21 13 4 18 16 3 1 Trend 5.2 6.2 5.9 5.5 3.9 51.3 8 10.2 3.2 4.2 2.1 5.3 5.1 5.0 19.9 6.2 4.9 12 18 32 6 20 55 5 8 12.01 Capacity for innovation Japan 5.4 5.1 5.7 5.6 4.8 4.0 5.5 335.4 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 217
234. 2 .1: Country/Economy Profiles Jordan 63 Key Indicators, 2015 rd Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 6.8 Population (millions) 37.6 GDP (US$ billions) 5513.0 GDP per capita (US$) 0.07 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 64 / 144 68 / 148 64 / 144 64 / 140 63 / 138 70 4.6 Score 4.2 4.2 4.3 4.2 4.3 34 4.6 56 4.3 118 3.7  4th pillar: Health and primary education 80 5.6 66 4.1  5th pillar: Higher education and training 51 4.7  6th pillar: Goods market efficiency 43 4.6  7th pillar: Labor market efficiency 87 4.0  8th pillar: Financial market development 68 4.0  9th pillar: Technological readiness 75 3.9  10th pillar: Market size 75 3.6 39 4.0  11th pillar: Business sophistication 36 4.4  12th pillar: Innovation 40 3.7 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 2nd pillar: Infrastructure 7 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Jordan Jordan retains its position at 63rd place despite the daunting challenges it has to face as a result of the geopolitical situation in the region. Jordan has the advantage of having a fairly efficient goods market (43rd) because of a certain intensity of domestic competition that raises the efficiency of firms. The country also has relatively efficient financial markets (33rd), although trustworthiness and confidence in the financial sector needs to be strengthened (107th) and the labor market has some flexibility (29th). Going forward, Jordan can take advantage of its fairly vibrant business sector (36th) Most problematic factors for doing business Policy instability Tax rates Inadequate supply of infrastructure Inefficient government bureaucracy Access to financing Tax regulations Corruption Restrictive labor regulations Inflation Inadequately educated workforce Poor work ethic in national labor force Poor public health Government instability Foreign currency regulations Insufficient capacity to innovate Crime and theft 2013-14 4.3 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 63  Subindex B: Efficiency enhancers Edition 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Middle East and North Africa forward, Jordan can take advantage of its fairly vibrant business sector (36th) and healthy level of adoption of technologies from abroad (40th) to achieve a higher, more sustainable growth path. Addressing macroeconomic challenges will be key to freeing up public funding for competitivenessenhancing investment, in particular in education (91st on primary education and 64th on enrollment in secondary and tertiary levels). Source: World Economic Forum, Executive Opinion Survey 2016 13.6 13.4 10.5 9.1 8.7 7.5 7.5 6.6 6.4 4.5 3.3 2.7 2.1 1.7 1.3 1.2 0 4 8 12 16 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 218 | The Global Competitiveness Report 2016–2017
235. 2 .1: Country/Economy Profiles Jordan The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 34 38 31 23 36 42 34 35 33 44 34 41 68 103 59 49 22 29 53 100 41 126 4.6 5.0 4.9 5.2 3.9 4.7 4.9 3.9 3.8 3.7 4.5 4.0 4.1 4.5 4.9 5.3 6.0 4.8 4.9 4.5 4.4 3.7 56 4.3 46 57 75 49 34 68 49 6 104 4.5 4.3 2.5 4.5 5.3 199.6 5.5 179.4 4.8 118 3.7 88 118 86 122 77 -4.0 11.4 -0.9 91.7 80 5.6 - n/a S.L. N/Appl. N/Appl. 10 66 1 68 82 79 56 111 51 89 57 28 61 57 55 52 42 5.5 5.7 <0.2 5.7 15.4 74.1 4.2 87.5 4.7 84.3 47.6 4.6 4.4 4.4 4.5 4.6 4.3 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 43 38 26 33 74 36 76 73 38 98 87 76 75 34 27 56 57 4.6 5.4 4.3 4.2 3.6 29.5 7 12.0 4.2 4.1 7.4 4.4 4.5 4.8 66.2 4.9 3.5 87 41 57 33 7 100 55 74 55 61 138 68 46 47 39 18 24 48 50 136 75 43 38 47 72 89 81 95 75 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.0 4.7 5.2 4.3 4.3 3.6 4.2 4.2 3.7 3.5 0.22 4.0 4.6 4.1 4.3 4.9 3.6 5.4 4.6 0 3.9 5.4 5.0 4.6 53.4 4.2 27.5 35.6 3.6 75 79 78 61 3.3 4.2 82.7 36.1 36 22 58 31 30 47 47 41 49 30 4.4 4.9 4.4 4.3 4.4 4.1 4.0 4.4 4.6 4.4 40 12.01 Capacity for innovation 43 57 52 38 43 13 72 Trend 3.7 4.4 4.0 3.5 3.8 3.6 5.1 0.8 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 219
236. 2 .1: Country/Economy Profiles Kazakhstan 53 Key Indicators, 2015 rd Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) 17.7 Population (millions) 173.2 GDP (US$ billions) 9795.6 GDP per capita (US$) 0.38 GDP (PPP) % world GDP Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 53 4.4 Rank 51 / 144 50 / 148 50 / 144 42 / 140 53 / 138 62 4.6 Score 4.4 4.4 4.4 4.5 4.4 49 4.2 2nd pillar: Infrastructure 63 4.2  3rd pillar: Macroeconomic environment 69 4.7  4th pillar: Health and primary education 94 5.4 50 4.4 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 57 4.6  6th pillar: Goods market efficiency 62 4.4  7th pillar: Labor market efficiency 20 4.8  8th pillar: Financial market development 104 3.5  9th pillar: Technological readiness 56 4.4  10th pillar: Market size 45 4.5 76 3.5 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 97 3.6  12th pillar: Innovation 59 3.4 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development 7th pillar: Labor market efficiency Kazakhstan Most problematic factors for doing business Inflation Tax rates Corruption Access to financing Tax regulations Foreign currency regulations Inadequately educated workforce Insufficient capacity to innovate Inefficient government bureaucracy Restrictive labor regulations Crime and theft Poor work ethic in national labor force Inadequate supply of infrastructure Poor public health Government instability Policy instability 2nd pillar: Infrastructure 7 6th pillar: Goods market efficiency Eurasia Source: World Economic Forum, Executive Opinion Survey 2016 16.6 13.0 12.8 11.5 8.9 7.2 5.7 4.7 4.1 3.8 3.7 2.9 2.0 1.4 1.1 0.6 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 220 | The Global Competitiveness Report 2016–2017
237. 2 .1: Country/Economy Profiles Kazakhstan The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 49 58 69 64 32 61 68 55 41 38 47 57 29 48 40 53 85 51 88 72 65 25 4.2 4.4 4.1 3.6 4.1 4.2 3.9 3.4 3.7 3.8 4.1 3.6 4.8 5.6 5.2 5.2 4.1 4.1 4.3 4.8 4.1 6.7 2nd pillar: Infrastructure 63 4.2  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 73 108 26 107 90 59 81 4 42 4.0 3.0 4.3 3.1 4.0 283.8 4.5 187.2 24.7 69 4.7 108 45 113 17 62 -5.3 24.2 6.5 23.3 94 5.4 - n/a S.L. N/Appl. N/Appl. 92 106 1 81 71 90 70 118 57 21 61 73 69 106 29 51 69 99.0 4.4 0.2 5.2 12.6 71.6 4.1 86.3 4.6 109.1 46.0 3.7 4.1 3.7 5.2 4.6 3.9 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 62 106 69 83 57 35 22 26 64 67 75 105 92 59 122 89 46 4.4 4.6 3.7 3.5 3.8 29.2 4 5.0 3.8 4.4 5.8 4.0 4.2 4.3 24.1 4.4 3.7 20 4.5 5.4 4.4 8.6 4.5 4.5 3.8 3.6 3.6 0.90 104 3.5 56 90 71 95 41 59 51 56 45 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.1 3.7 3.1 3.6 2.6 4.2 3.6 4 4.4 4.3 4.5 4.0 72.9 13.0 69.6 60.0 4.5 43 47 41 87 4.3 5.0 429.1 29.8 97 113 97 119 90 114 79 70 88 54 3.6 4.0 4.0 3.0 3.1 3.3 3.5 3.8 4.2 3.9 59 12.01 Capacity for innovation 4.8 60 39 31 19 28 38 96 62 52 28 80 76 99 89 92 105 108 86 73 63 61 66 55 64 69 Trend 3.4 4.1 3.9 3.4 3.5 3.4 4.0 1.4 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 221
238. 2 .1: Country/Economy Profiles Kenya 96 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 44.2 GDP per capita (US$) GDP (US$ billions) 61.4 GDP (PPP) % world GDP 1388.5 0.13 Performance overview Rank / 138 Score (1-7) Trend Distance from best Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions 2nd pillar: Infrastructure 2014-15 2015-16 2016-17 Rank 106 / 144 96 / 148 90 / 144 99 / 140 96 / 138 115 3.8 Score 3.7 3.8 3.9 3.9 3.9 86 3.6 98 3.3 122 3.6  4th pillar: Health and primary education 114 4.7 75 4.0  5th pillar: Higher education and training 97 3.9  6th pillar: Goods market efficiency 77 4.2  7th pillar: Labor market efficiency 31 4.6  8th pillar: Financial market development 50 4.2  9th pillar: Technological readiness 89 3.6  10th pillar: Market size 70 3.7 40 4.0  11th pillar: Business sophistication 47 4.2  12th pillar: Innovation 36 3.8 1st pillar: Institutions 12th pillar: Innovation 2nd pillar: Infrastructure 7 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Kenya Most problematic factors for doing business Corruption Tax rates Access to financing Inefficient government bureaucracy Inadequate supply of infrastructure Policy instability Inflation Crime and theft Insufficient capacity to innovate Tax regulations Poor work ethic in national labor force Restrictive labor regulations Inadequately educated workforce Poor public health Foreign currency regulations Government instability 2013-14 3.9 3rd pillar: Macroeconomic environment Subindex C: Innovation and sophistication factors 2012-13 96  Subindex B: Efficiency enhancers Edition 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 17.8 13.7 11.5 9.6 8.1 7.3 6.1 5.8 4.1 3.9 3.3 2.8 2.1 1.7 1.3 0.9 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 222 | The Global Competitiveness Report 2016–2017
239. 2 .1: Country/Economy Profiles Kenya The Global Competitiveness Index in detail  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 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 0-10 (best) 2nd pillar: Infrastructure 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training Rank / 138 Value 86 59 76 89 78 113 62 92 62 36 56 50 55 137 128 125 93 78 86 43 62 96 3.6 4.4 4.0 3.1 2.9 3.0 4.0 2.7 3.3 3.9 3.9 3.8 4.3 2.6 2.8 3.3 3.9 3.8 4.3 5.1 4.1 4.7 98 3.3 56 61 61 64 48 62 96 121 134 4.3 4.2 2.8 4.2 4.8 264.4 3.9 80.7 0.2 122 3.6 126 104 115 77 94 -8.4 14.4 6.6 52.7 114 4.7 - 54 14488.4 42 4.5 121 246.0 100 4.6 127 5.3 119 4.0 111 35.5 120 61.6 76 3.9 122 84.9 97 106 132 35 68 45 87 41 43 3.9 67.6 4.0 4.4 4.1 4.6 3.9 4.8 4.3 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 77 19 60 71 71 69 122 109 54 90 97 59 8
240. 2.1: Country/Economy Profiles Yemen 138 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 28.3 GDP per capita (US$) GDP (US$ billions) 36.9 GDP (PPP) % world GDP 1302.9 0.07 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2016-17 138 2.7 Rank 140 / 144 145 / 148 142 / 144 138 / 138 138 2.7 Score 3.0 3.0 3.0 2.7 137 2.6 2nd pillar: Infrastructure 136 1.8  3rd pillar: Macroeconomic environment 138 2.0  4th pillar: Health and primary education 117 4.6 136 2.7 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 136 2.3  6th pillar: Goods market efficiency 131 3.6  7th pillar: Labor market efficiency 137 3.1  8th pillar: Financial market development 138 2.1  9th pillar: Technological readiness 136 2.2  10th pillar: Market size 89 3.2 136 2.7 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 129 3.2  12th pillar: Innovation 138 2.2 1st pillar: Institutions 12th pillar: Innovation 11th pillar: Business sophistication 6 5 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 8th pillar: Financial market development Yemen Most problematic factors for doing business Access to financing Government instability Inadequate supply of infrastructure Policy instability Corruption Inefficient government bureaucracy Inadequately educated workforce Foreign currency regulations Restrictive labor regulations Inflation Insufficient capacity to innovate Poor work ethic in national labor force Tax rates Tax regulations Crime and theft Poor public health 2nd pillar: Infrastructure 7 5th pillar: Higher education and training 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Middle East and North Africa Source: World Economic Forum, Executive Opinion Survey 2016 16.3 14.4 13.1 12.6 12.3 8.8 5.8 4.7 3.3 2.0 1.9 1.6 1.3 1.0 1.0 0.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 364 | The Global Competitiveness Report 2016–2017
241. 2 .1: Country/Economy Profiles Yemen The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 137 132 137 132 112 137 128 126 132 100 128 118 131 138 131 126 135 127 138 137 131 101 2.6 3.0 2.3 2.0 2.1 2.1 2.3 2.1 1.8 3.1 2.6 2.7 3.0 2.1 2.6 3.2 2.2 3.0 2.5 3.3 3.1 4.5 2nd pillar: Infrastructure 136 1.8 N/Appl. N/Appl.  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 135 129 120 137 137 138 129 105 138 2.1 2.5 2.6 2.2 0.6 1.2 68.0 4.7 2.0 131 135 135 101 136 -10.8 -3.9 30.0 68.6 117 4.6 - 44 46 70 94 1 77 108 117 137 123 1756.8 4.3 48.0 4.9 0.1 5.3 33.8 63.8 2.1 84.8 136 2.3 117 116 138 136 136 137 135 135 48.6 10.0 2.0 2.2 2.7 1.7 2.8 3.0 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 131 125 132 130 109 53 54 124 123 121 81 138 128 134 88 125 132 3.6 4.3 2.7 2.6 3.1 33.1 6 40.0 3.1 3.7 6.4 2.2 3.3 2.8 35.6 3.9 2.3 137 3.1 113 48 97 112 113 118 136 135 131 129 3.9 5.3 3.4 27.4 3.2 3.3 2.8 1.9 2.0 0.36 138 2.1 136 130 137 135 138 132 138 136 136 136 136 135 103 104 131 133 89 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 2.5 2.6 2.1 2.0 1.6 3.1 1.8 0 2.2 2.9 3.3 2.8 25.1 1.5 2.5 5.9 3.2 77 127 82 137 3.3 3.1 75.5 5.8 129 49 137 126 126 135 75 133 133 59 3.2 4.7 2.7 2.9 2.5 2.7 3.5 2.5 3.4 3.8 138 12.01 Capacity for innovation 136 138 137 138 135 132 121 Trend 2.2 3.1 1.8 2.2 1.9 2.3 2.8 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 365
242. 2 .1: Country/Economy Profiles Zambia 118 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 16.2 GDP per capita (US$) 1350.2 GDP (US$ billions) 21.9 GDP (PPP) % world GDP 0.06 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 118 3.6 Rank 102 / 144 93 / 148 96 / 144 96 / 140 118 / 138 118 3.7 Score 3.8 3.9 3.9 3.9 3.6 61 4.0 2nd pillar: Infrastructure 125 2.4  3rd pillar: Macroeconomic environment 109 4.0  4th pillar: Health and primary education 125 4.2 115 3.5 120 3.0 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training  6th pillar: Goods market efficiency 83 4.2  7th pillar: Labor market efficiency 90 4.0  8th pillar: Financial market development 84 3.8  9th pillar: Technological readiness 115 2.8  10th pillar: Market size 88 3.2 88 3.4 105 3.5 66 3.3 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication  12th pillar: Innovation 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Zambia Most problematic factors for doing business Access to financing Tax rates Corruption Inflation Poor work ethic in national labor force Foreign currency regulations Policy instability Inefficient government bureaucracy Tax regulations Inadequate supply of infrastructure Restrictive labor regulations Crime and theft Insufficient capacity to innovate Poor public health Inadequately educated workforce Government instability 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 18.3 13.6 12.0 10.1 7.8 5.7 5.2 5.2 4.7 4.1 3.8 2.8 2.7 1.9 1.1 1.0 0 5 10 15 20 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 366 | The Global Competitiveness Report 2016–2017
243. 2 .1: Country/Economy Profiles Zambia The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 61 53 64 74 68 96 67 87 48 47 49 58 53 37 67 63 112 48 109 54 58 79 4.0 4.5 4.2 3.4 3.0 3.5 4.0 2.8 3.6 3.7 4.1 3.6 4.4 5.8 4.7 5.0 3.4 4.2 3.9 5.0 4.2 5.3 2nd pillar: Infrastructure 125 2.4  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 100 85 74 128 121 107 120 125 126 3.3 3.5 2.6 2.2 3.2 38.5 2.5 74.5 0.7 109 4.0 124 19 128 78 90 -8.1 31.1 10.1 52.9 125 4.2 - 57 20990.6 53 3.9 133 406.0 111 4.3 132 12.4 123 3.9 120 43.3 124 60.0 100 3.3 112 87.4 120 132 136 53 96 95 107 63 77 3.0 37.0 2.2 4.1 3.6 3.8 3.6 4.4 3.8 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 83 63 73 99 88 11 54 46 66 57 114 11 35 102 82 98 124 4.2 5.2 3.6 3.3 3.4 18.6 6 7.5 3.8 4.5 10.6 5.6 5.1 3.5 37.0 4.3 2.7 90 73 52 34 132 88 93 73 65 39 46 84 88 117 64 94 116 109 69 28 115 102 100 76 110 126 125 119 88 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 4.0 4.3 5.2 4.3 50.5 3.7 3.7 4.2 3.5 3.9 0.87 3.8 4.0 3.0 3.7 3.4 2.2 4.1 4.3 7 2.8 4.1 4.2 4.3 21.0 0.1 3.2 13.8 3.2 89 94 91 92 3.0 3.9 62.7 28.8 105 81 126 68 119 111 120 122 91 47 3.5 4.4 3.5 3.7 2.7 3.4 2.9 2.9 4.2 4.0 66 12.01 Capacity for innovation 84 85 78 60 42 59 115 Trend 3.3 3.9 3.6 3.2 3.5 3.6 4.1 0.0 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 367
244. 2 .1: Country/Economy Profiles Zimbabwe 126 Key Indicators, 2015 th Global Competitiveness Index 2016-2017 edition / 138 Source: International Monetary Fund; World Economic Outlook Database (April 2016) Population (millions) 13.4 GDP per capita (US$) 1064.3 GDP (US$ billions) 14.3 GDP (PPP) % world GDP 0.03 Performance overview Rank / 138 Score (1-7) Trend Distance from best Edition 2012-13 2013-14 2014-15 2015-16 2016-17 126 3.4 Rank 132 / 144 131 / 148 124 / 144 125 / 140 126 / 138 120 3.6 Score 3.3 3.4 3.5 3.5 3.4 108 3.3 2nd pillar: Infrastructure 123 2.5  3rd pillar: Macroeconomic environment 101 4.1  4th pillar: Health and primary education 119 4.6 132 3.1 Global Competitiveness Index Subindex A: Basic requirements  1st pillar: Institutions Subindex B: Efficiency enhancers  5th pillar: Higher education and training 115 3.2  6th pillar: Goods market efficiency 132 3.5  7th pillar: Labor market efficiency 127 3.4  8th pillar: Financial market development 126 3.1  9th pillar: Technological readiness 120 2.7  10th pillar: Market size 117 2.7 129 2.9 Subindex C: Innovation and sophistication factors  11th pillar: Business sophistication 130 3.2  12th pillar: Innovation 129 2.6 1st pillar: Institutions 12th pillar: Innovation 6 5 11th pillar: Business sophistication 3rd pillar: Macroeconomic environment 4 3 2 10th pillar: Market size 4th pillar: Health and primary education 1 9th pillar: Technological readiness 5th pillar: Higher education and training 8th pillar: Financial market development Zimbabwe Most problematic factors for doing business Policy instability Access to financing Corruption Inefficient government bureaucracy Inadequate supply of infrastructure Restrictive labor regulations Tax rates Foreign currency regulations Government instability Insufficient capacity to innovate Tax regulations Inflation Poor work ethic in national labor force Crime and theft Inadequately educated workforce Poor public health 2nd pillar: Infrastructure 7 7th pillar: Labor market efficiency 6th pillar: Goods market efficiency Sub-Saharan Africa Source: World Economic Forum, Executive Opinion Survey 2016 24.6 14.5 12.7 11.2 10.1 6.4 5.1 5.1 3.3 2.4 1.8 1.3 0.8 0.5 0.1 0.0 0 7 14 21 28 Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the five most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings. 368 | The Global Competitiveness Report 2016–2017
245. 2 .1: Country/Economy Profiles Zimbabwe The Global Competitiveness Index in detail Rank / 138 Value 1.21 Strength of investor protection 0-10 (best) 108 137 97 109 134 99 115 133 127 130 83 112 112 5 65 41 108 108 50 83 73 73 3.3 2.6 3.6 2.7 1.6 3.4 2.9 1.9 2.1 2.4 3.4 2.7 3.5 6.4 4.8 5.5 3.5 3.4 4.9 4.7 4.0 5.5 2nd pillar: Infrastructure 123 2.5  1st pillar: Institutions 1.01 Property rights 1.02 Intellectual property protection 1.03 Diversion of public funds 1.04 Public trust in politicians 1.05 Irregular payments and bribes 1.06 Judicial independence 1.07 Favoritism in decisions of government officials 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 regs 1.12 Transparency of government policymaking 1.13 Business costs of terrorism 1.14 Business costs of crime and violence 1.15 Organized crime 1.16 Reliability of police services 1.17 Ethical behavior of firms 1.18 Strength of auditing and reporting standards 1.19 Efficacy of corporate boards 1.20 Protection of minority shareholders’ interests 2.01 Quality of overall infrastructure 2.02 Quality of roads 2.03 Quality of railroad infrastructure 2.04 Quality of port infrastructure 2.05 Quality of air transport infrastructure 2.06 Available airline seat kilometers millions/week 2.07 Quality of electricity supply 2.08 Mobile-cellular telephone subscriptions /100 pop. 2.09 Fixed-telephone lines /100 pop.  3rd pillar: Macroeconomic environment 3.01 Government budget balance % GDP 3.02 Gross national savings % GDP 3.03 Inflation annual % change 3.04 Government debt % GDP 3.05 Country credit rating 0-100 (best)  4th pillar: Health and primary education 4.01 Malaria incidence cases/100,000 pop. 4.02 Business impact of malaria 4.03 Tuberculosis incidence cases/100,000 pop. 4.04 Business impact of tuberculosis 4.05 HIV prevalence % adult pop. 4.06 Business impact of HIV/AIDS 4.07 Infant mortality deaths/1,000 live births 4.08 Life expectancy years 4.09 Quality of primary education 4.10 Primary education enrollment rate net %  5th pillar: Higher education and training 5.01 Secondary education enrollment rate gross % 5.02 Tertiary education enrollment rate gross % 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 5.07 Local availability of specialized training services 5.08 Extent of staff training 111 101 83 106 107 121 124 115 111 3.1 3.2 2.3 3.2 3.6 23.2 2.3 84.8 2.2 101 4.1 26 136 109 79 137 -1.2 -4.3 -2.4 53.0 119 4.6 - 48 35 123 113 134 120 122 129 50 119 6559.2 4.9 278.0 4.3 16.7 3.9 46.6 57.5 4.4 85.9 115 3.2 118 127 51 64 102 116 86 90 47.6 5.9 4.1 4.3 3.8 3.4 4.1 3.7 Trend  6th pillar: Goods market efficiency 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 % profits 6.06 No. of procedures to start a business 6.07 Time to start a business days 6.08 Agricultural policy costs 6.09 Prevalence of non-tariff barriers 6.10 Trade tariffs % duty 6.11 Prevalence of foreign ownership 6.12 Business impact of rules on FDI 6.13 Burden of customs procedures 6.14 Imports % GDP 6.15 Degree of customer orientation 6.16 Buyer sophistication  7th pillar: Labor market efficiency 7.01 Cooperation in labor-employer relations 7.02 Flexibility of wage determination 7.03 Hiring and firing practices 7.04 Redundancy costs weeks of salary 7.05 Effect of taxation on incentives to work 7.06 Pay and productivity 7.07 Reliance on professional management 7.08 Country capacity to retain talent 7.09 Country capacity to attract talent 7.10 Female participation in the labor force ratio to men  8th pillar: Financial market development 8.01 Financial services meeting business needs 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 8.06 Soundness of banks 8.07 Regulation of securities exchanges 8.08 Legal rights index 0-10 (best)  9th pillar: Technological readiness 9.01 Availability of latest technologies 9.02 Firm-level technology absorption 9.03 FDI and technology transfer 9.04 Internet users % pop. 9.05 Fixed-broadband Internet subscriptions /100 pop. 9.06 Internet bandwidth kb/s/user 9.07 Mobile-broadband subscriptions /100 pop.  10th pillar: Market size 10.01 Domestic market size index 10.02 Foreign market size index 10.03 GDP (PPP) PPP $ billions 10.04 Exports % GDP  11th pillar: Business sophistication 11.01 Local supplier quantity 11.02 Local supplier quality 11.03 State of cluster development 11.04 Nature of competitive advantage 11.05 Value chain breadth 11.06 Control of international distribution 11.07 Production process sophistication 11.08 Extent of marketing 11.09 Willingness to delegate authority  12th pillar: Innovation Rank / 138 Value 132 90 112 92 115 50 108 137 137 70 133 106 138 131 75 117 115 3.5 4.8 3.2 3.4 3.0 32.8 9 90.0 2.3 4.4 14.6 4.0 2.2 3.0 39.8 4.0 2.8 127 3.4 108 134 134 136 53 123 42 129 124 36 4.0 2.9 2.3 82.3 4.1 3.3 4.7 2.4 2.3 0.89 126 3.1 126 137 102 125 137 128 95 68 120 12.02 Quality of scientific research institutions 12.03 Company spending on R&D 12.04 University-industry collaboration in R&D 12.05 Gov't procurement of advanced tech. products 12.06 Availability of scientists and engineers 12.07 PCT patent applications applications/million pop. 3.4 2.2 3.0 2.8 1.7 3.3 3.8 5 2.7 108 115 134 123 107 114 90 4.0 3.9 2.8 16.4 1.1 6.4 39.0 117 2.7 114 122 115 100 2.5 3.4 28.1 24.7 130 126 123 134 124 134 136 131 124 89 3.2 3.7 3.6 2.7 2.5 2.8 2.6 2.6 3.7 3.6 129 12.01 Capacity for innovation 129 110 132 134 137 118 101 Trend 2.6 3.3 3.2 2.4 2.5 2.1 3.2 0.1 Note: Values are on a 1-to-7 scale unless indicated otherwise. Trend lines depict evolution in values since the 2012-2013 edition (or earliest edition available). For detailed definitions, sources, and periods, consult the interactive Country/Economy Profiles and Rankings at http://gcr.weforum.org/ The Global Competitiveness Report 2016–2017 | 369
247. Technical Notes and Sources 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. The following notes provide sources for all the indicators composing the Global Competitiveness Index. The title of each indicator appears on the first line, preceded by its number to allow for quick reference. The numbering is consistent with the one adopted in Appendix A of Chapter 1.1. 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. Pillar 1: Institutions 1.01 Property rights In your country, to what extent are property rights, including financial assets, protected? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.02 Intellectual property protection In your country, to what extent is intellectual property protected? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.03 Diversion of public funds In your country, how common is illegal diversion of public funds to companies, individuals, or groups? [1 = very commonly occurs; 7 = never occurs] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.04 Public trust in politicians In your country, how do you rate the ethical standards of politicians? [1 = extremely low; 7 = extremely high] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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 connected with (a) imports and exports; (b) public utilities; (c) annual tax payments; (d) awarding of public contracts and licenses; (e) obtaining favorable judicial decisions? In each case, the answer ranges from 1 [very common] to 7 [never occurs] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.06 Judicial independence In your country, how independent is the judicial system from influences of the government, individuals, or companies? [1 = not independent at all; 7 = entirely independent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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 = show favoritism to a great extent; 7 = do not show favoritism at all] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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 Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.09 Burden of government regulation In your country, how burdensome is it for companies to comply with public administration’s requirements (e.g., permits, regulations, reporting)? [1 = extremely burdensome; 7 = not burdensome at all] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.10 Efficiency of legal framework in settling disputes In your country, how efficient are the legal and judicial systems for companies in settling disputes? [1 = extremely inefficient; 7 = extremely efficient] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report The Global Competitiveness Report 2016–2017 | 371
248. Technical Notes and Sources 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.19 Efficacy of corporate boards In your country, to what extent is management accountable to investors and boards of directors? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.20 Protection of minority shareholders’ interests 1.12 Transparency of government policymaking In your country, how easy is it for companies to obtain information about changes in government policies and regulations affecting their activities? [1 = extremely difficult; 7 = extremely easy] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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, imposes huge costs; 7 = no costs at all] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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, imposes huge costs; 7 = no costs at all] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.15 Organized crime In your country, to what extent does organized crime (mafiaoriented racketeering, extortion) impose costs on businesses? [1 = to a great extent, imposes huge costs; 7 = no costs at all] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.16 Reliability of police services In your country, to what extent can police services be relied upon to enforce law and order? [1 = not at all; 7 = to a great extent] | 2016 Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.17 Ethical behavior of firms In your country, how do 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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] | 2015– 16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 1.21 Strength of investor protection Strength of Investor Protection Index on a 0–10 (best) scale | 2015 This variable 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 2016: Measuring Regulatory Quality and Efficiency Pillar 2: Infrastructure 2.01 Quality of overall infrastructure How do you assess the general state of infrastructure (e.g., transport, communications, and energy) in your country? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 2.02 Quality of roads In your country, how is the quality (extensiveness and condition) of road infrastructure [1 = extremely poor—among the worst in the world; 7 = extremely good—among the best in the world] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 2.03 Quality of railroad infrastructure In your country, how is the quality (extensiveness and condition) of the railroad system [1 = extremely poor—among the worst in the world; 7 = extremely good—among the best in the world] | 2015–16 weighted average For economies where there is no regular train service or where the network covers only a negligible portion of the territory this indicator is not used in the calculation, and in the Country/ Economy Profiles of these economies, N/Appl is used for this indicator Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 2.04 Quality of port infrastructure In your country, how is the quality (extensiveness and condition) of seaports (for landlocked countries, assess access to seaports) [1 = extremely poor—among the worst in the world; 7 = extremely good—among the best in the world] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 372 | The Global Competitiveness Report 2016–2017
249. Technical Notes and Sources 2 .05 Quality of air transport infrastructure In your country, how is the quality (extensiveness and condition) of airports [1 = extremely poor—among the worst in the world; 7 = extremely good—among the best in the world] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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 2016 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 2.07 Quality of electricity supply In your country, how reliable is the electricity supply (lack of interruptions and lack of voltage fluctuations)? [1 = extremely unreliable; 7 = extremely reliable] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 2.08 Mobile-cellular telephone subscriptions Number of mobile-cellular telephone subscriptions per 100 population | 2015 Mobile-cellular telephone subscriptions refers to the number of subscriptions to a public mobile telephone service that provides access to the public switched telephone network (PSTN) using cellular technology. It includes both the number of postpaid subscriptions and the number of active prepaid accounts (i.e., that have been active during the past three months). It includes all mobile-cellular subscriptions that offer voice communications. It excludes subscriptions via data cards or USB modems, subscriptions to public mobile data services, and private trunked mobile radio, telepoint, radio paging, and telemetry services. Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators June 2016 (June 2016 edition) 2.09 Fixed-telephone lines Number of fixed-telephone lines per 100 population | 2015 Fixed-telephone subscriptions refers to the sum of active analogue fixed-telephone lines, voice over IP (VoIP) subscriptions, fixed wireless local loop (WLL) subscriptions, ISDN voice-channel equivalents, and fixed-public payphones. It includes all accesses over fixed infrastructure supporting voice telephony using copper wire, voice services using Internet Protocol (IP) delivered over fixed (wired)-broadband infrastructure (e.g., DSL, fiber optic), and voice services provided over coaxial-cable television networks (cable modem). It also includes WLL connections, which are defined as services provided by licensed fixed-line telephone operators that provide last-mile access to the subscriber using radio technology, when the call is then routed over a fixed-line telephone network (and not a mobile-cellular network). In the case of VoIP, it refers to subscriptions that offer the ability to place and receive calls at any time and do not require a computer. VoIP is also known as voice-over broadband (VoB), and includes subscriptions through fixed-wireless, DSL, cable, fiber optic, and other fixed-broadband platforms that provide fixed telephony using IP. Pillar 3: Macroeconomic environment 3.01 Government budget balance General government budget balance as a percentage of GDP | 2015 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: International Monetary Fund, World Economic Outlook Database (April 2016 edition) 3.02 Gross national savings Gross national savings as a percentage of GDP | 2015 or most recent year available Gross national savings is expressed as a ratio of gross national savings in current local currency and GDP in current local currency. It corresponds to gross disposable income less final consumption expenditure after taking account of an adjustment for pension funds. For many economies, the estimates of national savings are built up from national accounts data on gross domestic investment and from balance of payments–based data on net foreign investment. Sources: International Monetary Fund, World Economic Outlook Database (April 2016 edition); US Central Intelligence Agency, The World Factbook (accessed August 12, 2016); national sources 3.03 Inflation Annual percent change in consumer price index (year average) | 2015 or most recent year available Source: International Monetary Fund, World Economic Outlook Database (April 2016 edition) 3.04 Government debt Gross general government debt as a percentage of GDP | 2015 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. Source: International Monetary Fund, World Economic Outlook Database (April 2016 edition) and Article IV Consultation Staff Reports Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators June 2016 (June 2016 edition) The Global Competitiveness Report 2016–2017 | 373
250. Technical Notes and Sources 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 2016 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. Source: 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 publisher@institutionalinvestor. com. Copyright © Institutional Investor, LLC 2016 Pillar 4: Health and primary education 4.01 Malaria incidence Estimated number of malaria cases per 100,000 population | 2013 or most recent year available For economies that: (1) were declared free of malaria by the World Health Organization (WHO) (except in the case of Hong Kong SAR, for which malaria assessment is from CDC); (2) are included in the WHO’s supplementary list of areas where malaria has never existed or has disappeared without specific measures; or (3) are currently in the prevention of reintroduction phase as identified by the WHO, this indicator is excluded from the calculation of the GCI. In the Country/Economy profiles of these economies, the following abbreviations are used: M.F. for malaria-free economies; P.R. means the economy is in the prevention of reintroduction phase; and S.L. means the economy is on the WHO’s supplementary list. Sources: The World Health Organization, World Malaria Report 2012 and 2015 editions; United States Centers for Disease Control and Prevention (CDC), Malaria Information and Prophylaxis information (accessed July 29, 2016). 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 For economies that are considered free of malaria; that are included in the World Health Organization’s supplementary list; or that are in the prevention of reintroduction phase (see indicator 4.01 above), this indicator is excluded from the calculation of the GCI. In the Country/Economy Profiles of these economies, N/ Appl. is used for this indicator. Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 4.03 Tuberculosis incidence Estimated number of tuberculosis cases per 100,000 population | 2014 or most recent year available 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 May19, 2016); 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. For more details, refer to Chapter 1.3 of this Report 374 | The Global Competitiveness Report 2016–2017 4.05 HIV prevalence HIV prevalence as a percentage of adults aged 15–49 years | 2014 or most recent year available 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. Economies with a prevalence rate equal to or less than 0.2 percent are all ranked first. Sources: The World Bank, World Development Indicators (accessed May 18, 2015, and May 19, 2016); UNAIDS, UNAIDS Global Report on the Global AIDS Epidemic (2008, 2010, 2012, and 2013 editions); UNAIDS, IUNAIDS Gap Report 2014; 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. For more details, refer to Chapter 1.3 of this Report 4.07 Infant mortality Infant (children aged 0–12 months) mortality per 1,000 live births | 2015 or most recent year available 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 July 5, 2016); national sources 4.08 Life expectancy Life expectancy at birth (years) | 2014 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 July 5, 2016); national sources 4.09 Quality of primary education In your country, how do you assess the quality of primary education [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 4.10 Primary education enrollment rate Net primary education enrollment rate | 2014 or most recent year available 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 July 12, 2016); Organisation for Economic Co-operation and Development (OECD), Education at a Glance 2015; UNICEF; national sources
251. Technical Notes and Sources Pillar 5 : Higher education and training 5.01 Secondary education enrollment rate Gross secondary education enrollment rate | 2014 or most recent year available 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 July 12, 2016); national sources 5.02 Tertiary education enrollment rate Gross tertiary education enrollment rate | 2014 or most recent year available 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. Sources: UNESCO Institute for Statistics, Data Centre (accessed July 12, 2016); national sources 5.03 Quality of the education system In your country, how well does the education system meet the needs of a competitive economy? [1 = not well at all; 7 = extremely well] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 5.04 Quality of math and science education In your country, how do 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] | 2015– 16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 5.05 Quality of management schools In your country, how do you assess the quality of management schools? [1 = extremely poor—among the worst in the world; 7 = excellent—among the best in the world] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 5.06 Internet access in schools In your country, to what extent is the Internet used in schools for learning purposes? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 5.07 Local availability of specialized training services vIn your country, how available are high-quality, professional training services? [1 = not available at all; 7 = widely available] | 2015–16 weighted average 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report Pillar 6: Goods market efficiency 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] | 2015– 16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 6.02 Extent of market dominance In your country, how do you characterize corporate activity? [1 = dominated by a few business groups; 7 = spread among many firms] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 6.03 Effectiveness of anti-monopoly policy In your country, how effective are anti-monopoly policies at ensuring fair competition? [1 = not effective at all; 7 = extremely effective] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 6.04 Effect of taxation on incentives to invest In your country, to what extent do taxes reduce the incentive to invest? [1 = to a great extent; 7 = not at all] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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) | 2015 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/. Source: World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency 6.06 Number of procedures required to start a business Number of procedures required to start a business | 2015 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 2016: Measuring Regulatory Quality and Efficiency Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report The Global Competitiveness Report 2016–2017 | 375
252. Technical Notes and Sources 6 .07 Time required to start a business Number of days required to start a business | 2015 6.15 Degree of customer orientation For details about the methodology employed and the assumptions made to compute this indicator, visit http://www. doingbusiness.org/methodologysurveys/. In your country, how well do companies treat customers? [1 = poorly—mostly indifferent to customer satisfaction; 7 = extremely well—highly responsive to customers and seek customer retention] | 2015–16 weighted average Source: World Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 6.08 Agricultural policy costs 6.16 Buyer sophistication In your country, how do you assess the agricultural policy? [1 = excessively burdensome for the economy; 7 = balances well the interests of taxpayers, consumers, and producers] | 2015–16 weighted average In your country, on what basis do buyers make purchasing decisions? [1 = based solely on the lowest price; 7 = based on sophisticated performance attributes] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 6.09 Prevalence of non-tariff 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 6.10 Trade tariffs Trade-weighted average tariff rate | 2015 or most recent year available 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. Sources: 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 = extremely prevalent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 6.12 Business impact of rules on FDI In your country, how restrictive are rules and regulations on foreign direct investment (FDI)? [1 = extremely restrictive; 7 = not restrictive at all] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 6.13 Burden of customs procedures In your country, how efficient are customs procedures (related to the entry and exit of merchandise)? [1 = extremely inefficient; 7 = extremely efficient] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 6.14 Imports as a percentage of GDP Imports of goods and services as a percentage of gross domestic product | 2015 or most recent year available Pillar 7: Labor market efficiency 7.01 Cooperation in labor-employer relations In your country, how do you characterize labor-employer relations? [1 = generally confrontational; 7 = generally cooperative] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 7.03 Hiring and firing practices In your country, to what extent do regulations allow flexible hiring and firing of workers? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 7.04 Redundancy costs Redundancy costs in weeks of salary | 2015 This variable 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 2016: Measuring Regulatory Quality and Efficiency; World Economic Forum’s calculations 7.05 Effect of taxation on incentives to work In your country, to what extent do taxes and social contributions reduce the incentive to work? [1 = to a great extent; 7 = not at all] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 7.06 Pay and productivity Total imports is the sum of total imports of merchandise and commercial services. In your country, to what extent is pay related to employee productivity? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Sources: World Trade Organization, Online Statistics Database (accessed June 08, 2016); International Monetary Fund, World Economic Outlook Database (April 2016 edition); national sources Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 376 | The Global Competitiveness Report 2016–2017
253. Technical Notes and Sources 7 .07 Reliance on professional management 8.05 Venture capital availability In your country, who holds senior management positions in companies? [1 = usually relatives or friends without regard to merit; 7 = mostly professional managers chosen for merit and qualifications] | 2015–16 weighted average In your country, how easy is it for start-up entrepreneurs with innovative but risky projects to obtain equity funding? [1 = extremely difficult; 7 = extremely easy] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 7.08 Country capacity to retain talent To what extent does your country retain talented people? [1 = not at all—the best and brightest leave to pursue opportunities abroad; 7 = to a great extent—the best and brightest stay and pursue opportunities in the country] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 8.06 Soundness of banks In your country, how do you assess the soundness of banks? [1 = extremely low—banks may require recapitalization; 7 = extremely high—banks are generally healthy with sound balance sheets] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 8.07 Regulation of securities exchanges 7.09 Country capacity to attract talent To what extent does your country attract talented people from abroad? [1 = not at all; 7 = to a great extent—the country attracts the best and brightest from around the world] | 2015– 16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 7.10 Female participation in the labor force Ratio of women to men in the labor force | 2015 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, 9th Edition; national sources Pillar 8: Financial market development In your country, to what extent do regulators ensure the stability of the financial market? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 8.08 Legal rights index Degree of legal protection of borrowers’ and lenders’ rights on a 0–12 (best) scale | 2015 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 Bank/International Finance Corporation, Doing Business 2016: Measuring Regulatory Quality and Efficiency Pillar 9: Technological readiness 8.01 Financial services meeting business needs In your country, to what extent does the financial sector provide the products and services that meet the needs of businesses? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 8.02 Affordability of financial services In your country, to what extent does the cost of financial services (e.g., insurance, loans, trade finance) impede business activity? [1 = impedes business to a great extent; 7 = not at all] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 8.03 Financing through local equity market In your country, to what extent can companies raise money by issuing shares and/or bonds on the capital market? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 8.04 Ease of access to loans In your country, how easy is it for businesses to obtain a bank loan? [1 = extremely difficult; 7 = extremely easy] | 2016 Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 9.01 Availability of latest technologies In your country, to what extent are the latest technologies available? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 9.02 Firm-level technology absorption In your country, to what extent do businesses adopt the latest technologies? [1 = not at all; 7 = to a great extent] | 2016 Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 9.04 Internet users Percentage of individuals using the Internet | 2015 Individuals using the Internet refers to people who used the Internet from any location and for any purpose, irrespective of the device and network used, in the last three months. It can be via a computer (i.e., desktop computer, laptop computer or tablet, or similar handheld computer), mobile phone, games machine, digital TV, etc. Access can be via a fixed or mobile network. Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators June 2016 (June 2016 edition) The Global Competitiveness Report 2016–2017 | 377
254. Technical Notes and Sources 9 .05 Fixed-broadband Internet subscriptions Fixed-broadband Internet subscriptions per 100 population | 2015 or most recent year available Fixed (wired)-broadband subscriptions refers to the number of subscriptions for high-speed access to the public Internet (a TCP/ IP connection). Highspeed access is defined as downstream speeds equal to, or greater than, 256 kbit/s. Fixed (wired)broadband includes cable modem, DSL, fiber, and other fixed (wired)-broadband technologies—such as Ethernet LAN, and broadband over powerline (BPL) communications. Subscriptions with access to data communications (including the Internet) via mobile-cellular networks are excluded. Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators June 2016 (June 2016 edition) 9.06 Internet bandwidth International Internet bandwidth (kb/s) per Internet user | 2015 or most recent year available International Internet bandwidth refers to the total used capacity of international Internet bandwidth, in megabits per second (Mbit/s). It is measured as the sum of used capacity of all Internet exchanges offering international bandwidth. If capacity is asymmetric, then the incoming capacity is used. International Internet bandwidth (kbit/s) per Internet user is calculated by converting the speed from megabits to kilobits per second and dividing by the total number of Internet users. Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators June 2016 (June 2016 edition) 9.07 Mobile-broadband subscriptions Active mobile-broadband subscriptions per 100 population | 2015 Active mobile-broadband subscriptions refers to the sum of standard mobile-broadband subscriptions and dedicated mobilebroadband data subscriptions to the public Internet. It covers actual subscribers, not potential subscribers, even though the latter may have broadband-enabled handsets. Standard mobile-broadband subscriptions refers to active mobile-cellular subscriptions with advertised data speeds of 256 kbit/s or greater that allow access to the greater Internet via HTTP and that have been used to set up an Internet data connection using Internet Protocol (IP) in the past three months. Standard SMS and MMS messaging do not count as an active Internet data connection, even if the messages are delivered via IP. Dedicated mobile-broadband data subscriptions refers to subscriptions to dedicated data services (over a mobile network) that allow access to the greater Internet and that are purchased separately from voice services, either as a standalone service (e.g., using a data card such as a USB modem/dongle) or as an add-on data package to voice services that requires an additional subscription. All dedicated mobile-broadband subscriptions with recurring subscription fees are included regardless of actual use. Prepaid mobile-broadband plans require use if there is no monthly subscription. This indicator could also include mobile WiMAX subscriptions. Source: International Telecommunication Union, ITU World Telecommunication/ICT Indicators June 2016 (June 2016 edition) Pillar 10: Market size 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 | 2015 or most recent year available 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. For more details, refer to the Appendix of Chapter 1.1 of this Report 10.02 Foreign market size index Value of exports of goods and services, normalized on a 1–7 (best) scale | 2015 or most recent year available 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. For more details, refer to the Appendix of Chapter 1.1 of this Report 10.03 GDP (PPP) Gross domestic product valued at purchasing power parity in billions of international dollars | 2015 Source: International Monetary Fund, World Economic Outlook Database (April 2016 edition) 10.04 Exports as a percentage of GDP Exports of goods and services as a percentage of gross domestic product | 2015 or most recent year available Total exports is the sum of total exports of merchandise and commercial services. Sources: World Trade Organization, Online Statistics Database (accessed June 08, 2016); International Monetary Fund, World Economic Outlook Database (April 2016 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 11.02 Local supplier quality In your country, how do you assess the quality of local suppliers? [1 = extremely poor quality; 7 = extremely high quality] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 378 | The Global Competitiveness Report 2016–2017
255. Technical Notes and Sources 11 .04 Nature of competitive advantage On what is the competitive advantage of your country’s companies in international markets based? [1 = primarily lowcost labor or natural resources; 7 = primarily unique products and processes] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 12.03 Company spending on R&D In your country, to what extent do companies invest in research and development (R&D)? [1 = do not invest at all in R&D; 7 = invest heavily in R&D] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 12.04 University-industry collaboration in R&D 11.05 Value chain breadth In your country, how broad is companies’ 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, marketing, distribution, design, etc.)] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 11.06 Control of international distribution In your country, to what extent do domestic companies control the international distribution of their products? [1 = not at all; 7 = to a great extent] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 11.07 Production process sophistication In your country, how sophisticated are production processes? [1 = not at all—production uses labor-intensive processes; 7 = highly—production uses latest technologies] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 11.08 Extent of marketing In your country, how successful are companies in using marketing to differentiate their products and services? [1 = not successful at all; 7 = extremely successful] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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. For more details, refer to Chapter 1.3 of this Report 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 12.02 Quality of scientific research institutions In your country, how do 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] | 2015–16 weighted average 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] | 2016 Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 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] | 2015–16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 12.06 Availability of scientists and engineers In your country, to what extent are scientists and engineers available? [1 = not available at all; 7 = widely available] | 2015– 16 weighted average Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report 12.07 PCT patent applications Number of applications filed under the Patent Cooperation Treaty (PCT) per million population | 2012–2013 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 2012 and 2013 is divided by population figures for 2013. 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 2012 and 2013. We then compute the average number of PCT applications for 2012 and 2013, before computing the ratio of the two averages (1.67). 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, China and Hong Kong are excluded in both cases. We then divide the 2012–2013 average number of USPTO applications filed by residents of Taiwan, China (20,766) and Hong Kong (1,118), 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, 531.6 for Taiwan, China and 92.6 for Hong Kong. The estimates are used in the computation of the respective Innovation pillar scores of the two economies. Sources: World Intellectual Property Organization (WIPO) PCT Data, sourced from Organisation for Economic Co-operation and Development (OECD), Patent Database (situation as of June 2016), http://www.oecd.org/sti/inno/oecdpatentdatabases.htm; for population: International Monetary Fund, World Economic Outlook Database (April 2016 edition); World Economic Forum’s calculations. Source: World Economic Forum, Executive Opinion Survey. For more details, refer to Chapter 1.3 of this Report The Global Competitiveness Report 2016–2017 | 379
257. About the Authors Silja Baller Silja Baller is Practice Lead for Competitiveness and Innovation with the Forum ’s Global Competitiveness and Risks Team. She is co-author and co-editor of The Global Information Technology Report, co-author of The Global Competitiveness Report, and leads the Europe Competitiveness and Inclusive Growth Lab. Her areas of expertise include the economics of international trade, digital economy questions, industrial organization, and competition policy. Prior to joining the Forum, she held economist positions at the World Bank, the World Health Organization, and in the London Economics practice of PricewaterhouseCoopers. She holds a BA in Economics from the University of Cambridge; a DEA in International Economics from the Graduate Institute of International Studies, Geneva; and an MPhil and DPhil (PhD) in Economics from the University of Oxford. Attilio Di Battista Attilio Di Battista is a Quantitative Economist with the Global Competitiveness and Risks Team at the World Economic Forum. He works on the development and computation of a range of indexes and is a co-author of various studies, including The Global Information Technology Report 2016 and The Africa Competitiveness Report 2015. 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. Ciara Browne Ciara Browne is Head of Partnerships with the Global Competitiveness and Risks Team at the World Economic Forum, 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 over 15,000 business executives. Ms Browne is involved in the production process of the Team’s reports and works closely with the Forum’s media team in conveying the findings of the various competitiveness and risks 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). Margareta Drzeniek Hanouz Margareta Drzeniek Hanouz is Head of the Global Competitiveness and Risks Team at the World Economic Forum. She leads the Forum’s work on 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 Risks Team, Dr Drzeniek Hanouz was in charge of the economics section of the Forum’s Annual Meeting in Davos. Prior to that she worked with the International Trade Centre 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. Roberto Crotti Roberto Crotti is an Economist with the Global Competitiveness and Risk Team at the World Economic Forum. His responsibilities include the computation, analysis, and management of indexes of competitiveness, including those for The Travel & Tourism Competitiveness Report and The Global Competitiveness Report. His main areas of expertise are applied quantitative methods for policy evaluation, economic growth, and development economics. Prior to joining the Forum, he worked as an analyst in the private consulting 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. He is currently pursuing his doctorate in Development Economics at the Graduate Institute of International Studies (Geneva). The Global Competitiveness Report 2016–2017 | 381
258. About the Authors Daniel G ómez Gaviria Daniel Gómez Gaviria is currently Head of Competitiveness Research at the World Economic Forum. He holds a PhD in Economics with specializations in international trade and industrial organization from the University of Chicago, where he also obtained an MBA from the Booth School of Business and an MA in Economics from the Department of Economics. He completed his degree in Economics at HEC University of Lausanne, where he also completed a Master’s in Banking and Finance. Before joining the Forum, Dr Gómez Gaviria was advisor to the Minister of Trade, Industry and Tourism of Colombia and a researcher with Fedesarrollo, the main public policy think tank in Colombia. Before completing his PhD, he was an antitrust consultant with NERA and LECG’s European Competition Policy Practices. He also completed the European EC Competition Law diploma at King’s College, London. Dr Gómez Gaviria has been a frequent contributor to Revista Dinero, Portafolio, and La Patria, and he was editor of Revista Coyuntura Económica Fedesarrollo. He has been an adjunct professor of Economics at Universidad de los Andes and Universidad Javeriana, in Bogotá, Colombia. Thierry Geiger Thierry Geiger is Head of Analytics and Quantitative Research with the Global Competitiveness and Risks Team at the World Economic Forum. In this position he supervises the development and computation of a wide range of composite indicators. In addition, he leads the competitiveness practice on Asia and is responsible for the Team’s technical assistance and capacity-building activities. Mr Geiger is co-editor of The Global Enabling Trade Report series and was co-editor of The Global Information Technology Report 2015. He is also a coauthor of The Global Competitiveness Report and 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 a co-founder of Procab Studio, a Geneva-based IT company. Gaëlle Marti Gaëlle Marti is an Economist with the Global Competitiveness and Risks Team at the World Economic Forum. Her responsibilities include the overall management of The Global Risks Report process as well as the development and writing of different sections of that report and managing its Advisory Board. She also contributes to the research and drafting of The Global Competitiveness Report. Prior to joining the Forum, she worked at the University of Neuchâtel, Switzerland, as a research assistant, where she conducted a study on the estimation of the medical cost of diabetes. She also worked as a research assistant at the Swiss Health Observatory on various health-related projects. She holds a BSc and an MSc in Economics from the University of Neuchâtel, Switzerland, as well as an MA in International and Development Economics from Yale University. 382 | The Global Competitiveness Report 2016–2017 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 Report. Stéphanie Verin Stéphanie Verin is Community Specialist with the Global Competitiveness and Risks Team at the World Economic Forum, where she is responsible for managing the network of Partner Institutes worldwide and driving the Executive Opinion Survey process. Her project management responsibilities include the digital transformation journey and the communication of The Global Competitiveness Report—and related benchmarking studies—in close collaboration with the media teams. Before joining the Forum, Ms Verin worked for blue chip multinational companies such as Kellogg’s, Mondelēz International, and Nissan. Holder of a Master in Business Administration with a specialization in marketing innovation, she is recognized as a fast-track brand and project manager with experience in driving international commercial and marketing strategic campaigns.
259. The Global Competitiveness Report 2016 –2017 comes out in the context of persistent slow growth despite unorthodox monetary policy and a near-term outlook that is fraught with renewed uncertainty fueled by continued geopolitical turmoil, financial market fragility, and sustained high debt levels in emerging markets. On the bright side, tremendous promise for higher economic growth and societal progress dawns with the Fourth Industrial Revolution. Based on digital platforms, the Fourth Industrial Revolution is characterized by a convergence of technologies that is blurring the lines between the physical, digital, and biological spheres. Yet, as indicated in this Report, progress in building an enabling environment for innovation remains the advantage of only a few economies and, since innovation and openness go hand in hand, future growth will also depend on the ability to safeguard the benefits of openness to trade and investment. Against this background, the Report serves as a critical reminder of the role competitiveness is called to play in both solving the world’s international macroeconomic challenges and laying the ground for future prosperity. Produced in collaboration with leading academics and a global network of Partner Institutes, The Global Competitiveness Report 2016–2017 offers users a unique dataset of a broad array of competitiveness indicators for 138 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 distinctive 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 that provide a comprehensive picture of the competitiveness landscape— the set of institutions, policies, and factors that determine the level of productivity of an economy—in countries around the world at different stages of economic development. Detailed profiles highlighting competitive strengths and weaknesses for each of the 138 economies included in the Index as well as the 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