Assessing the Competitiveness of Assessing the Competitiveness of UNECE EconomiesUNECE EconomiesThe Global Competitiveness Report 2010-2011

The Global Competitiveness Report

Launched in 1979 covering 16 European countries

Most recently covering 139 countries, from all regions of the World

Goal: to provide a benchmarking tool for policymakers and business leaders

The Global Competitiveness Report 2010-2011 Coverage

All UNECE members are covered except for Andorra, Belarus, Liechtenstein, Monaco, San Marino, Turkmenistan, and Uzbekistan.

How we define competitiveness: How we define competitiveness: “The set of institutions, policies, and factors that determine the level of productivity

of a country”The level of productivity, in turn, sets the sustainable level of prosperity that can be

earned by an economy.

The Global Competitiveness Index The Framework

A. Basic Requirements B. Efficiency Enhancers

C. Innovation & Sophistication Factors

5. Higher education and training

6. Goods market efficiency

7. Labor market efficiency

8. Financial market development

9. Technological readiness

10. Market Size

11. Business sophistication

12. Innovation

3. Macroeconomic environment

2. Infrastructures

4. Health and primary education

1. Institutions

Key for efficiency-driven economies

Key for innovation-driven economies

Key for factor-driven economies

The Global Competitiveness Index The Framework

A. Basic Requirements B. Efficiency Enhancers

C. Innovation & Sophistication Factors

5. Higher education and training

6. Goods market efficiency

7. Labor market efficiency

8. Financial market development

9. Technological readiness

10. Market Size

11. Business sophistication

12. Innovation

3. Macroeconomic environment

2. Infrastructure

4. Health and primary education

1. Institutions

Key for efficiency-driven economies

Key for innovation-driven economies

Key for factor-driven economies The Global Competitiveness Index

Stage 1 Transition from 1 to 2 Stage 2 Transition from 2 to 3 Stage 3

Bangladesh Senegal Algeria Albania Bahrain AustraliaBenin Tajikistan Angola Argentina Barbados AustriaBolivia Tanzania Armenia Bosnia-Herzegovina Chile Belgium

Burkina Faso Timor-Leste Azerbaijan Brazil Croatia CanadaBurundi Uganda Botswana Bulgaria Estonia Cyprus

Cambodia Vietnam Brunei Darussalam Cape Verde Hungary Czech RepublicCameroon Zambia Egypt China Latvia Denmark

Chad Zimbabwe Georgia Colombia Lithuania FinlandCôte d'Ivoire Guatemala Costa Rica Oman France

Ethiopia Guyana Dominican Republic Poland GermanyGambia, The Indonesia Ecuador Puerto Rico Greece

Ghana Iran, Islamic Rep. El Salvador Slovak Republic Hong Kong SARHonduras Jamaica Jordan Taiwan, China Iceland

India Kazakhstan Lebanon Trinidad and Tobago IrelandKenya Kuwait Macedonia, FYR Uruguay Israel

Kyrgyz Republic Libya Malaysia ItalyLesotho Morocco Mauritius Japan

Madagascar Paraguay Mexico Korea, Rep.Malawi Qatar Montenegro Luxembourg

Mali Saudi Arabia Namibia MaltaMauritania Sri Lanka Panama NetherlandsMoldova Swaziland Peru New ZealandMongolia Syria Romania Norway

Mozambique Ukraine Russian Federation PortugalNepal Venezuela Serbia Singapore

Nicaragua South Africa SloveniaNigeria Thailand Spain

Pakistan Tunisia SwedenPhilippines Turkey Switzerland

Rwanda United Arab EmiratesUnited Kingdom

United States

The Global Competitiveness IndexCountries by Stage of Development

Countries in red are the UNECE members

The Global Competitiveness Index 2010 Top 10 ranking

Countries in Italic are NON UNECE Countries

Rank Economy Score1 Switzerland 5.62 Sweden 5.63 Singapore 5.54 United States 5.45 Germany 5.46 Japan 5.47 Finland 5.48 Netherlands 5.39 Denmark 5.310 Canada 5.3

The Global Competitiveness Index 2010 UNECE economiesRank Economy Score1 Switzerland 5.62 Sweden 5.64 United States 5.45 Germany 5.47 Finland 5.48 Netherlands 5.39 Denmark 5.310 Canada 5.312 United Kingdom 5.314 Norway 5.115 France 5.118 Austria 5.119 Belgium 5.120 Luxembourg 5.024 Israel 4.929 Ireland 4.731 Iceland 4.733 Estonia 4.636 Czech Republic 4.639 Poland 4.540 Cyprus 4.542 Spain 4.545 Slovenia 4.446 Portugal 4.447 Lithuania 4.4

Rank Economy Score48 Italy 4.449 Montenegro 4.450 Malta 4.352 Hungary 4.357 Azerbaijan 4.360 Slovak Republic 4.261 Turkey 4.263 Russian Federation 4.267 Romania 4.270 Latvia 4.171 Bulgaria 4.172 Kazakhstan 4.177 Croatia 4.079 Macedonia, FYR 4.083 Greece 4.088 Albania 3.989 Ukraine 3.993 Georgia 3.994 Moldova 3.996 Serbia 3.898 Armenia 3.8102 Bosnia & Herzegovina 3.7116 Tajikistan 3.5121 Kyrgyz Republic 3.5

The Global Competitiveness IndexDifferences within UNECE and most significant gaps

The Global Competitiveness IndexGlobal Comparison

* The Asian Tigers include Hong Kong, Korea, Singapore and Taiwan

Europe’s performanceGoods market efficiency pillar

5.5

6.1 6.3

5.86.0

5.0

5.96.3

6.8

3.9

4.5

4.0

3.3

4.2

3.03.3

2.3

4.1

1

4

7

Goo

ds m

arke

t eff

icie

ncy

Inte

nsity

of l

ocal

co

mpe

titio

n

Pre

vale

nce

of fo

reig

n ow

ners

hip

Eff

ectiv

enes

s of

ant

i-m

onop

oly

polic

y

Deg

ree

of c

usto

mer

or

ient

atio

n

Buy

er s

ophi

stic

atio

n

Ext

ent o

f mar

ket

dom

inan

ce

Num

ber o

f pro

cedu

res

requ

ired

to s

tart

a bu

sine

ss*

Tim

e re

quire

d to

sta

rt a

busi

ness

*

Score

Highest/Lowest EU member EU 27 average United States Asian Tigers

Europe’s performanceLabour market efficiency pillar

5.5

5.9

6.7

5.0

6.56.0

5.8

7.0

5.4

3.7 3.53.3

3.13.5

2.4 2.32.7

2.2

1

4

7

Labo

r mar

ket

effic

ienc

y

Coo

pera

tion

in la

bor-

empl

oyer

rela

tions

Fem

ale

parti

cipa

tion

in

labo

r for

ce*

Pay

and

pro

duct

ivity

Rel

ianc

e on

pro

fess

iona

l m

anag

emen

t

Flex

ibili

ty o

f wag

e de

term

inat

ion

Hiri

ng a

nd fi

ring

prac

tices

Red

unda

ncy

cost

s*

Bra

in d

rain

Score

Highest/Lowest EU member EU 27 average United States Asian Tigers

Europe’s performanceHigher education and training pillar

6.16.2

7.06.8

5.6

6.4

5.7

4.1

3.1

6.2

1.6

2.9

3.6

2.8

1

4

7

Hig

her e

duca

tion

and

train

ing

Qua

lity

of m

ath

and

scie

nce

educ

atio

n

Sec

onda

ry e

duca

tion

enro

llmen

t rat

e*

Terti

ary

educ

atio

n en

rollm

ent r

ate*

Qua

lity

of th

e ed

ucat

iona

l sy

stem

Inte

rnet

acc

ess

in s

choo

ls

Ext

ent o

f sta

ff tr

aini

ng

Score

Highest/Lowest EU member EU 27 average United States Asian Tigers

Europe’s performance Technological readiness pillar

6.1

6.8

6.4 6.3

6.8 7.0

3.8

4.34.0 4.0

3.3

2.7

1

4

7Te

chno

logi

cal r

eadi

ness

Ava

ilabi

lity

of la

test

te

chno

logi

es

Firm

-leve

l tec

hnol

ogy

abso

rptio

n

FDI a

nd te

chno

logy

tra

nsfe

r

Inte

rnet

use

rs*

Bro

adba

nd In

tern

et

subs

crip

tions

*

Score

Highest/Lowest EU member EU 27 average United States Asian Tigers

Europe’s performance Innovation pillar

5.65.9 6.0 6.0 6.0

5.65.9

2.92.5

3.33.6

2.4

3.0

1.01

4

7In

nova

tion

Cap

acity

for i

nnov

atio

n

Qua

lity

of s

cien

tific

re

sear

ch in

stitu

tions

Ava

ilabi

lity

of s

cien

tists

and

en

gine

ers

Com

pany

spe

ndin

g on

R

&D

Uni

vers

ity-in

dust

ry

colla

bora

tion

in R

&D

Util

ity p

aten

ts p

er m

illio

n po

pula

tion*

ScoreHighest/Lowest EU member EU 27 average United States Asian Tigers

Views from Annual Meeting in Davos 2011 Europe: Back to the drawing board

Ensuring strong growth requires: –Stable macro-economic environments–Continued investment in infrastructure(particularly in transport and energy)

–Improving skills through education and training

–Investing in R&D–Structural reforms to hardwire

competitiveness into the economy

Panellists in this session:- George Papandreou, Prime Minister of Greece- Nick Clegg, Deputy Prime Minister of the United Kingdom - Jean-Claude Trichet, President of the European Central Bank- Jacob Wallenberg, Chairman of Investor AB

“With the new competitive powers, it is not a matter of whether they are going bypass us – the risk is that they will run us over”

–Jacob Wallenberg

Irresponsible fiscal policies created a fragile financial system which generated a fragile real economy.

Visit our website for further information and to download the Report:

www.weforum.org/gcr