By Katy Wilson
The Global Competitiveness Index (GCI), developed by the World Economic Forum, measures and ranks economies in terms of their competitiveness, defined as “the set of institutions, policies and factors that determine the level of productivity of a country”. The details of this ranking and descriptions of the competitiveness landscape of individual economies are detailed in The Global Competitiveness Report, an annual publication designed to provide a “platform for dialogue between government, business and civil society about the actions required to improve economic prosperity”. This year the report covers 144 countries, which together represent 98.3% of world GDP. The GCI, in calculating competitiveness, combines 114 indicators under 12 pillars (shown in Figure 1 below). For more details on the methodology for compiling the GCI go here.
In the 2014-2015 report, the 35th edition, innovation and skills are highlighted as being particularly important in influencing competitiveness, key attributes needed in the aftermath of global economic crisis. Alongside a recovering and unsettled economy, conflict and growing wealth inequality pose significant barriers to sustainable and inclusive growth, themes the report prioritizes. Political will and cooperation are of utmost importance in seeking a more resilient and fair global economy.
Sub-Saharan Africa is a region performing the worst in terms of global competitiveness. The top ten most competitive economies in SSA are:
Of these only the top three occur in the first half of the league table and African countries fill 15 of the lowest 20 spots. Areas in need of improvement include health, education and infrastructure. A significant threat highlighted is the growing youth population – “by 2035, more people will be reaching working age in sub-Saharan Africa than in the rest of the world put together”.
The GCI has come under criticism for being opaque in its definition of competitiveness. On the one hand conflating it with productivity and prosperity while on the other having a high competitiveness score does not necessarily mean the country and its citizens are more prosperous than others. Instead the indicators are seen as being representative of WEF’s neoliberal politics. The WEF did, however, recently release The Inclusive Growth and Development Report, which engages with discussions to improve or develop new models of economic growth and development to expand social participation and benefit sharing. The report, which covers 112 economies, seeks to improve our understanding of how countries can use a diverse spectrum of policy incentives and institutional mechanisms to make economic growth more socially inclusive without dampening incentives to work, save and invest. [Read more…]
One Billion Hungry: Can We Feed the World? 