The global competitiveness report 2018 PDF

Preview

Summary

The global competitiveness report for egypt...

Description

CHAPTER 2

Key Findings of the Global Competitiveness Index 2017–2018

The Global Competitiveness Report has been measuring competitiveness for over four decades. This year also marks the 10th anniversary of the global financial crisis and comes at a time of increased uncertainty and rapid transformations for the global economy. With slow and uncertain growth recoveries, the end of the commodity boom, shifting geopolitics, global imbalances, and increasing inequality in some economies, understanding the factors that determine growth continues to be a pressing global issue. In this chapter we present the methodology, the rankings, and the three main findings of the Global Competitiveness Index 2017–2018. METHODOLOGY

Building on Klaus Schwab’s original work of 1979, the World Economic Forum has used the Global Competitiveness Index (GCI) developed by Xavier Salai-Martín in collaboration with the Forum since 2005. 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. 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 comparable statistical data are not available for a sufficiently large number of economies (see Appendix C).

The Global Competitiveness Report 2017–2018 | 11

Covering 140 economies, the Global Competitiveness Index 4.0 measures national competitiveness—defined as the set of institutions, policies and factors that determine the level of productivity.

l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l

l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l

l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l

score 

debt change 20

Albania

76th / 140

Global Competitiveness Index 4.0 2018 edition

Rank in 2017 edition: 80th /135

Performance Overview 2018 Overall

Enabling

Score

Environment

Best

USA

NZL

Human

Innovation

Capital

SGP

KOR

(31)

(4)

Markets

FIN

SGP

Ecosystem

USA

USA

CHN

USA

DEU

100 90

87

80

70

70 60

58

54

50

69

57

65

64

57 52

51 39

40

32

30 20 10

0 Score





76th

Rank /140

68th

Overall

Institutions

 100th Infrastructure

 74th ICT adoption

 97th Macroeconomic stability





45th

47th

Health

Skills









58th

34th

105th

108th

Labour market

Financial system

Market size

Product market

 48th Business dynamism

 91st Innovation capability

Selected contextual indicators Population

2.9

millions

GDP per capita

GDP (PPP)% world GDP

4,582.9 Unemployment rate

US$

10-year average annual GDP growth

%

%

3.0 5-year average FDI inward flow % GDP

0.03 13.9 8.6

Social and environmental performance Environmental footprint

gha/capita

Inclusive Development Index 1-7 (best)

2.1

Global Gender Gap Index0-1 (gender parity)

4.1 Income Gini 0 (perfect equality) -1 (perfect inequality)

0.7 29.0

Albania

76th /140

Index Component



Value

1.02 Homicide rate /100,000 pop.

4.1 2.7

1.03 Terrorism incidence 1 (v ery high) - 7 (no inc idenc e)

99.9

1.04 Reliability of police services 1-7 (bes t)

68 108 70

99.9 67.1

Finland

109 42

Australia Multiple (2)

1.07 Judicial independence 1-7 (bes t)

2.4

22.9

126

2.6 29.5

27.3 70.5

114 62

1.10 Burden of government regulation 1-7 (bes t)

4.9

64.6

1.11 Efficiency of legal framework in settling disputes 1-7 (bes t)

3.0 0.76

33.8 75.84

3.9

47.8

1.12 E-Participation Index 0-1 (bes t) 1.13 Future orientation of government 1-7 (bes t) 1.14 Incidence of corruption 0-100 (bes t)

38.0 3.8

1.15 Property rights 1-7 (bes t)

Finland Finland Norway

6

Singapore

102 58

Singapore Multiple (3)

56

Singapore

77 111

38.0 46.3

Multiple (24)

46

45.1 65.4

1.08 Efficiency of legal framework in challenging regulations 1-7 (bes t)

45.1 65.4 =

New Zealand Finland Multiple (9)

61

1.06 Budget transparency 0-100 (bes t)

1.09 Freedom of the press 0-100 (wors t)

Best Performer

53.9 51.7 92.5

5.0

1.05 Social capital 0-100 (high)

New Zealand Finland

1.16 Intellectual property protection 1-7 (bes t)

3.5

41.8

106

1.17 Quality of land administration 0-30 (bes t)

15.5 4.5

51.7 = 58.7

70 78

Singapore Finland

7.7

77.0 =

16

Multiple (2)

1.18 Strength of auditing and reporting standards 1-7 (bes t) 1.19 Conflict of interest regulation 0-10 (bes t) 1.20 Shareholder governance 0-10 (bes t)



-

4.3 14.7

2.04 Efficiency of train services 1-7 (bes t)

1.3

2.05 Airport connectivity index (United States =100)

2.08 Efficiency of seaport services 1-7 (bes t) 2.09 Electrification rate % pop.

30.1 48.8

102 96 100

Multiple (4)

59 1

Singapore Multiple (66)

13.1 3.7

86.3

104

88.6 45.5 -

119.4 69.3

99.5 n/a

70 68

10.0

20.0

73

Pillar 4: Macroeconomic stability

1.0 66.4



Pillar 5: Health

Pillar 6: Skills

40.0 = -

0-100 (bes t)

10.2 4.0

6.02 Extent of staff training 1-7 (bes t) 6.03 Quality of vocational training 1-7 (bes t)

3.9

6.04 Skillset of graduates 1-7 (bes t)

97 1

68.7

47

Finland Switzerland

49.1

76

Switzerland

4.2 4.7

53.4 61.2

55 44

4.0

50.5

74

18.2

Finland

54 62

15.4 4.5

6.09 Pupil-to-teacher ratio in primary education Ratio

Multiple (4) Multiple (4)

68.0 = 49.5

6.06 Ease of finding skilled employees 1-7 (bes t)

6.08 Critical thinking in teaching 1-7 (bes t)

Multiple (31) Multiple (74) Multiple (36)

45

6.07 School life expectancy Years

6.05 Digital skills among population 1-7 (bes t)

Korea, Rep. Iceland

59 59

113

44

86.8 -

0-100 (bes t)

6.01 Mean years of schooling Years

Switzerland

86.8

67.8

Korea, Rep. Multiple (68) United Arab Emirates

70.0 = 100.0 =

1.6 40.0

5.01 Healthy life expectancy y ears



n/a 66.4 -

0-100 (bes t)

4.01 Inflation annual % c hange 4.02 Debt dynamics 0-100 (bes t)

Multiple (23) Switzerland 74

3.03 Fixed-broadband Internet subscriptions /100 pop.



Multiple (9)

76 111

52.3

3.02 Mobile-broadband subscriptions /100 pop.

3.05 Internet users % pop.

Multiple (8) Singapore

7.2

17.1

3.04 Fibre Internet subscriptions /100 pop.

Singapore Multiple (20) Switzerland

54.7 100.0 =

0-100 (bes t)

3.01 Mobile-cellular telephone subscriptions /100 pop.

136

7.2

2.11 Exposure to unsafe drinking water % pop.

Pillar 3: ICT adoption

5.1

Singapore United States

59 48

4.3 100.0

2.10 Electric power transmission and distribution losses % output

2.12 Reliability of water supply 1-7 (bes t)

Kazakhstan 100

115

54.3 36.8 =

8,289.1 3.9

2.06 Efficiency of air transport services 1-7 (bes t) 2.07 Liner Shipping Connectivity Index 0–157.1 (bes t)

Finland

32

57.3 39.4 =

39.4

2.03 Railroad density k m of roads /s quare k m



67.0 =

6.7

0-100 (bes t)

Pillar 2: Infrastructure

2.01 Road connectivity index 0-100 (bes t) 2.02 Quality of roads 1-7 (bes t)



Score* Rank/140 -

0-100 (bes t)

Pillar 1: Institutions

1.01 Organized crime 1-7 (bes t)

85.4 58.0 79.5

47 19 66

Switzerland Sweden United States Multiple (9) United States Multiple (6)

-

53.9

68

1.01 Organized crime 1-7 (best)

4.1

51.7

108

Finland

1.02 Homicide rate /100,000 pop.

2.7

92.5

70

Multiple (9) Multiple (24)

Pillar 1: Institutions 0-100 (best)

1.03 Terrorism incidence 1 (very high) - 7 (no incidence) 1.04 Reliability of police services 1-7 (best) 1.05 Social capital 0-100 (high)

New Zealand

99.9

99.9

61

5.0

67.1

46

Finland

45.1

45.1

109

Australia

Economy Profiles

Egypt

94th / 140

Global Competitiveness Index 4.0 2018 edition

Performance Overview 2018 Overall Score Best

Previous edition

Key

Enabling Environment

USA

NZL

Rank in 2017 edition: 94th / 135 Lower middle income group average

Human Capital SGP

KOR

(31)

(4)

Middle East and North Africa average

Innovation Ecosystem

Markets FIN

SGP

USA

USA

CHN

USA

DEU

100 90 80

70

70

73

69

60

54

53

51

48

50

46

41

40

54

52

48

38

30 20 10 0 Score

 Rank /140

























94th

102nd

56th

100th

135th

99th

99th

121st

130th

99th

24th

97th

64th

Overall

Institutions

Infrastructure

ICT adoption

Macroeconomic stability

Health

Skills

Product market

Labour market

Financial system

Market size

Business dynamism

Innovation capability

Selected contextual indicators Population

94.8

millions

GDP per capita

2,500.8

US$

10-year average annual GDP growth

%

GDP (PPP)

0.95

% world GDP

Unemployment rate

12.1

%

3.9

5-year average FDI inward flow

2.0

Global Gender Gap Index

2.8

Income Gini

% GDP

2.1

Social and environmental performance Environmental footprint

gha/capita

Inclusive Development Index

1-7 (best)

0-1 (gender parity)

0 (perfect equality) -100 (perfect inequality)

0.6 31.8

The Global Competitiveness Report 2018 | 203

Economy Profiles

94th /140

Egypt Index Component



Value

Score* Rank/140

Best Performer

-

48.1

102

1.01 Organized crime 1-7 (best)

5.3

71.1

43

Finland

1.02 Homicide rate /100,000 pop.

2.5

93.2 =

67

Multiple (9) Multiple (24)

Pillar 1: Institutions 0-100 (best)

1.03 Terrorism incidence 0 (very high) -100 (no incidence)

New Zealand

41.6

41.6

135

4.8

63.2

51

Finland

1.05 Social capital 0-100 (high)

44.4

44.4

113

Australia

1.06 Budget transparency 0-100 (best)

38.5

38.5 =

110

Multiple (2)

1.07 Judicial independence 1-7 (best)

5.2

69.4

29

Finland

1.08 Efficiency of legal framework in challenging regulations 1-7 (best)

3.7

45.3

48

Finland

56.7

43.3

132

Norway

3.2

36.9

87

Singapore

3.7

45.8

64

Singapore

0.54

53.9

99

Multiple (3)

1.04 Reliability of police services 1-7 (best)

1.09 Freedom of the press 0-100 (worst) 1.10 Burden of government regulation 1-7 (best) 1.11 Efficiency of legal framework in settling disputes 1-7 (best) 1.12 E-Participation Index 0-1 (best) 1.13 Future orientation of government 1-7 (best)

3.9

47.8

57

Singapore

32.0

32.0

99

New Zealand

1.15 Property rights 1-7 (best)

4.6

60.4

51

Finland

1.16 Intellectual property protection 1-7 (best)

3.3

38.2

124

Finland

1.17 Quality of land administration 0-30 (best)

7.0

23.3 =

122

Singapore

1.14 Incidence of corruption 0-100 (best)

1.18 Strength of auditing and reporting standards 1-7 (best)

4.7

61.1

1.19 Conflict of interest regulation 0-10 (best)

4.7

47.0 =

1.20 Shareholder governance 0-10 (best)

6.3 -



Pillar 2: Infrastructure 0-100 (best)

2.01 Road connectivity index 0-100 (best)

71.6

68

Finland

106

Multiple (2)

63.0

45

Kazakhstan

70.5

56

Singapore

71.6 =

54

United States

2.02 Quality of roads 1-7 (best)

4.5

58.7

45

Singapore

2.03 Railroad density km of roads/square km

5.1

12.9 =

68

Multiple (20)

2.04 Efficiency of train services 1-7 (best) 2.05 Airport connectivity score 2.06 Efficiency of air transport services 1-7 (best) 2.07 Liner Shipping Connectivity Index 0–157.1 (best) 2.08 Efficiency of seaport services 1-7 (best) 2.09 Electrification rate % pop.

3.6

42.8

58

Switzerland

101,480.7

62.7

40

Multiple (8)

5.1

68.3

43

Singapore

54.6

54.6

26

Multiple (4)

4.6

60.8

39

Singapore

99.9

99.9

69

Multiple (66)

2.10 Electric power transmission and distribution losses % output

11.3

92.4

74

Multiple (9)

2.11 Exposure to unsafe drinking water % pop.

10.9

90.9

71

Multiple (23)

4.9

64.6

69

Switzerland

2.12 Reliability of water supply 1-7 (best)



Pillar 3: ICT adoption 0-100 (best)

3.01 Mobile-cellular telephone subscriptions /100 pop.

-

40.6

100

Korea, Rep.

105.5

88.0

92

Multiple (68)

50.1

n/a

95

United Arab Emirates

3.03 Fixed-broadband Internet subscriptions /100 pop.

...