Release of the results of the WEF GCR 2015-2016 by Dr. Balraj Kistow, Faculty Member, UWI-ALJGSB

1. Global Competitiveness Report
2015/16
“Reaching Beyond the New Normal”
Dr. Balraj Kistow
Lok Jack GSB
September 30, 2015

2. The Global Competitive Report
• The GCR is produced by
the World Economic
Forum
• The report is based on
the Global
Competitiveness Index
(GCI)
• The GCI captures
information on the micro
and macro economic
foundations of national
competitiveness.

3. The Global Competitive Report
• The report examines the many factors that enable
national economies to achieve sustained economic
growth and long term prosperity.
• The overall goal is to provide business leaders and
policymakers with benchmark tools to identify
obstacles to improved competitiveness.
• The idea is to stimulate discussion on strategies to
improve them.

4. The Global Competitiveness Index (GCI)
“
”
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 earned by an
economy.

5. Effect of Productivity
Productivity
Higher
Income
Productivity helps drive high levels of income and determines
the growth potential of an economy

6. Implied Framework
National
Competitiveness
Firm
Competitiveness
Enabling
Environment
Firms compete not
nations.
Government largely
responsible for the raw
conditions

7. Basic requirements
1.Institutions
2.Infrastructure
3.Macroeconomic
environment
4.Health and
primary education
Efficiency enhancers
5.Higher education
and training
6. Goods market
efficiency
7. Labor market
efficiency
8. Financial market
development
9. Technological
readiness
10. Market size
Innovation and
sophistication factors
11. Business
sophistication
12. Innovation
The Global Competitiveness Index (GCI)
The Global Competitiveness Index

8. • The many components of the competitiveness survey are grouped
in various categories to form the 12 pillars of competitiveness.
• Pillars are not independent - e.g. innovation tied to education
• Each of the pillars consists of a number of different dimensions
• There are a total of 133 dimensions
• These dimensions are either considered to be a competitive
advantage or a competitive disadvantage.
The 12 Pillars

9. The 12 Pillars
Basic Requirements
Institutions
Infrastructure
Macroeconomic stability
Health and Primary Education
Efficiency Enhancers
Higher Education
Goods Market efficiency
Labour Market Efficiency
Financial Market sophistication
Technological readiness
Market size
Innovation & Sophistication
Factors
Business sophistication
Innovation
Key for
Factor-driven
economies
Key for
Efficiency-driven
economies
Key for
Innovation-driven
economies

11. Qualitative data sourced from the annual
Executive Opinion Survey carried out by
the network of the World Economic
Forum’s Partner Institutes.
Quantitative data sourced from
international organizations.
The Global Competitiveness Report 2015-
2016 Data

12. 1. Ranking is out of total participants
2. A score from 1 – 7 - weighted average score from
the 12 pillars of competitiveness.
3. Problematic factors for doing business
The Results

13. GCI 2015 – 2016
Report

14. “Reaching Beyond the New Normal”
• “New Normal” – Lower economic growth, lower
productivity growth and high unemployment.
• Growth lower than levels in previous decade
• Uncertainties fueled by slowdown in emerging markets,
geopolitical conflicts and humanitarian crisis.

15. Difference in Total Factor Productivity
Growth - 1995 – 04 & 2005 - 14
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
TFP growth Unemployment growth (right axis) GDP growth
United
States
Europe Japan World
Em. and
Dev.
markets
CIS, S-E
Europe
Sub-
Saharan
Africa
MENA
Latin
America
IndiaChina

16. Rankings 2015/16
16
• Switzerland retains
the top rank
• China is stable at
28th
• Chile remains the
most competitive
economy in Latin
America, at 35th
• India climbs 16
positions to 55th
Rank Economy Score
1 Switzerland 5.8
2 Singapore 5.7
3 United States 5.6
4 Germany 5.5
5 Netherlands 5.5
6 Japan 5.5
7 Hong Kong SAR 5.5
8 Finland 5.5
9 Sweden 5.4
10 United Kingdom 5.4
11 Norway 5.4
12 Denmark 5.3
13 Canada 5.3
15 Taiwan 5.3
17
United Arab
Emirates
5.2
18 Malaysia 5.2
19 Belgium 5.2
22 France 5.1
28 China 4.9
Rank Economy Score
33 Spain 4.6
35 Chile 4.6
37 Indonesia 4.5
38 Portugal 4.5
43 Italy 4.5
45 Russian Federation 4.4
46 Mauritius 4.4
47 Philippines 4.4
49 South Africa 4.4
51 Turkey 4.4
55 India 4.3
56 Vietnam 4.3
57 Mexico 4.3
75 Brazil 4.1
81 Greece 4.0
106 Argentina 3.8
124 Nigeria 3.5
131 Myanmar 3.3
140 Guinea 2.8

17. Trinidad and Tobago
• Innovation Driven economy – Stage 3
• Per Capita Income - $US21,311

18. Countries in Stage 3

19. T&T Rank & Score

20. Trinidad and
Tobago is on par
or better in 11
of the 12 pillars
when compared
to other
countries in
Latin America
and the
Caribbean.
The Web

21. Trinidad and
Tobago is on par
or better in 2 of
the 12 pillars
when compared
to other countries
in the innovation
category.
The Web

22. Pillar Scores and Ranking
2013/14
Rank Score
2015/16
Rank Score
2014/15
Rank Score

23. 2015/16 2014/15

24. Macroeconomic Environment
2015/16 2014/15
Rank Score Rank Score

25. Innovation
2015/16 2014/15
Rank Score Rank Score

26. Perspective of Investment
Notably competitive advantages for Trinidad and Tobago:
Strength of investor protection
Quality of Electricity supply
Credit Ratings
Quality of primary and higher education including Math’s, Science and
management
The effects of taxation on incentives to invest
Prevalence of Trade barriers
Effects of taxation on incentives to work
Country capacity to attract talent
Export as a percentage of GDP
Availability of Scientist and Engineers
Production Process Sophistication
Export as a percentage of GDP

27. On the Downside
• Significant areas of weaknesses:
• Business cost of crime and violence
• Reliability of the police service
• Burden of Customs Procedures
• Favourism in Government Decisions
• Pay and Productivity
• Market size
• Value Chain
• Willingness to delegate authority
• Capacity to innovate
• Company spending on R & D
• University-Industry Collaboration in R&D
• Government procurement of advance tech product
• Degree of customer orientation

28. Impact of Data Inertia

29. Problematic Factors for Doing Business

30. Problematic Factors for Doing Business
2015 2010 2005
Poor work ethic in
national labour
force
Crime and Theft Crime and Theft
Corruption Poor work ethic in
national labour
force
Inefficient govt
bureaucracy
Inefficient govt
bureaucracy
Corruption Poor work ethic in
national labour
force
Crime and Theft Inefficient govt
bureaucracy
Poor infrastructure
Access to finance Access to finance Corruption

31. Caribbean Competitiveness
Country Stage Rank Score Problematic Factors
Jamaica 2 86
(86)
4.0 Inefficient Gov’t Bureaucracy
Crime and Theft
Tax Rates
Corruption
T & T 3 89
(89)
3.94 Poor work ethic in national labour force
Corruption
Inefficient Gov’t Bureaucracy
Crime and Theft
Guyana 2 121
(117)
3.6 Inefficient Gov’t Bureaucracy
Corruption
Access to Finance
Crime and Theft
Barbados
Suriname
The survey was not completed to the minimum requirements
(page 77)

32. Summary
• T &T remains classified as an innovation driven
economy.
• No change in ranking but the score went down
slightly.
• We still have a long way to go especially in terms of
institutional development, innovation and business
sophistication
• Work ethic and corruption was seen being most
problematic factors.

33. Thank You