Global Competitiveness Report 2005-2006

[sibgakhan]

Global Competitiveness Report 2005-2006

Good new is that India (Rank 50) and Pakistan (Rank 83) up from their positions in 2004 India by 5 points and Pakistan by 8 points. BTW China (Rank 49) is down by 3 points.

We can be friends in growth.


Global competitiveness: Pakistan jumps 8 places to 83rd position

RECORDER REPORT

ISLAMABAD (September 29 2005): Pakistan has jumped up by eight places to 83rd position in global competitiveness during 2005, however, strengthening of public institutions was still a barrier in boosting the mood of the business community, a report said.

The Switzerland-based World Economic Forum (WEF) who issued its 26th Global Competitiveness Report for 2005-06, assigned scores to nations by looking at factors like government's economic policies, the strength of local institutions, and the degree to which technology has been used to bolster growth.

According to the report, Pakistan has secured 80th position regarding technology, 69th position in macroeconomic environment, while it shown discouraging performance pertaining to strengthening of public institutions in the country and scored 113th position among 117 economies of the world.

Finland tops the annual Global Competitiveness Index (GCI), for the third consecutive year, despite its authors concerns about the Nordic nation's high taxation system. With the United States in second place in the WEF report, Finland is one of the five Nordic countries in the top 10.

Leading within Asia are Taiwan and Singapore, ranked 5th and 6th, respectively, some places ahead of the next Asian country covered by the GCI, Japan, ranked 12th. The distance between these top-ranked economies and Japan has increased since last year, reflecting Japan's relatively poor macroeconomic performance, particularly regarding management of the public finances.

Taiwan and Singapore are economies that, through sustained good policies over the last few decades, have lifted their citizens from poverty, joining the ranks of the most prosperous and competitive economies in the world.

India and China also performed well by securing 49th and 50th position, respectively, now rank much more closely to one another than in previous years. China dropped three ranks, India moved up five places.

But, it warns, both the countries suffer from institutional weaknesses that could slow their "ascension to the top tier" of the world's most competitive economies.

China had a slightly deteriorating score with regard to the country's macroeconomic environment, while India's improved position is due to a somewhat higher rank in the area of technology, the report added. Australia, ranked 10th, the biggest 'climbed' economy among the top-ranked nations last year, ups four places. Other notable placing include South Korea, up 12 places to 17th, while China and India are ranked 49th and 50th of the 117 nations surveyed.

The publication of this year's Global Competitiveness Report provides an opportunity to examine some of the key economic issues confronting the international community.

About the global economy, the WEF's report said that it is expected to grow by some 4.25 percent in 2005, nearly one percentage point less than in 2004, when rapid expansion of global trade delivered the best growth performance for world output of the last decade.

Notwithstanding a slowdown in industrial production and global trade and the adverse impact of higher oil prices, the short-term outlook suggests solid growth, at least through the end of 2006.

The Global Competitiveness Report is a contribution to enhancing understanding of the key ingredients of economic growth and prosperity. By highlighting the strengths and weaknesses of an economy, policymakers and business leaders are offered an important tool to assist them in the formulation of improved economic policies and institutional reforms.

The Nordic countries share a number of characteristics that make them extremely competitive, such as very healthy macroeconomic environments and public institutions that are highly transparent and efficient, with general agreement within society on the spending priorities to be met in the government budget.

While the business communities in the Nordic countries point to high tax rates, as a potential problem area, there is no evidence that these are adversely affecting the ability of these countries to compete effectively in the world markets or to provide to their respective populations some of the highest standards of living in the world.

The Nordic countries continue to hold prominent positions in the rankings among the top 10 most competitive economies this year, with Finland (1), Sweden (3), Denmark (4), Iceland (7) and Norway (9) all in privileged places.

Within the Middle East and North Africa (MENA) region, the small Gulf States perform quite well in the overall GCI rankings. The United Arab Emirates (UAE) and Qatar are ranked 18th and 19th, respectively. Terms-of-trade gains have boosted growth rates and reinforced already high levels of confidence in the business community, resulting in ongoing institutional modernisation and improvements in macroeconomic management.

Copyright Business Recorder, 2005

[sibgakhan]

Global Competitiveness Report 2005-2006

Good new is that India (Rank 50) and Pakistan (Rank 83) up from their positions in 2004 India by 5 points and Pakistan by 8 points. BTW China (Rank 49) is down by 3 points.

We can be friends in growth.

http://www.weforum.org/site/homepubl...04+comparisons