Assessing Iceland’s competitiveness amidst the global economic crisis Findings from the Global Competitiveness Index 2009-2010 Irene Mia Director, Senior Economist Ciara Browne Associate Director Global Competitiveness Network, World Economic Forum Reykjavik , September 25th, 2009
38
Embed
Assessing Iceland’s competitiveness amidst the global ...ibr.hi.is/sites/ibr.hi.is/files/Irene_420045656.pdfThe Global Competitiveness Index (GCI) and our data sources. The GCI rankings
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Assessing Iceland’s competitiveness
amidst the global economic crisisFindings from the Global Competitiveness Index
2009-2010
Irene MiaDirector, Senior Economist
Ciara BrowneAssociate Director
Global Competitiveness Network, World Economic Forum
Reykjavik , September 25th, 2009
2
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
Outline
The World Economic Forum, The Global Competitiveness
Network and The Global Competitiveness Report (GCR)
series.
The Global Competitiveness Index (GCI) and our data
sources.
The GCI rankings for 2009-2010 with a focus on
Iceland’s performance and selected comparators.
3
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The World Economic Forum
The World Economic Forum is an independent international
organization committed to improving the state of the world by
engaging leaders in partnerships to shape the global, regional
and industry agendas.
Established in 1971, the Forum has its headquarters in Geneva,
Switzerland, with offices in New York and Beijing.
4
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The World Economic ForumMember Communities
Strategic Partners
Industry Partners
Forum Members
Global Growth Companies
Technology Pioneers
Thought Leaders (religion,
culture, science)
Media Leaders
Women Leaders
Young Global Leaders
Social Entrepreneurs
Governments and
International Organisations
Civil Society
5
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The World Economic Forum – ActivitiesGlobal and Regional Summits in 2009
January World Economic Forum Annual Meeting 2009
April World Economic Forum on Latin America, Brazil
May World Economic Forum on the Middle East, Jordan
June World Economic Forum on Africa, South Africa
World Economic East Asia, Korea
September Annual Meeting of the New Champions 2009, Dalian, China
November India Economic Summit, India
Summit on the Global Agenda, Dubai, UAE
6
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The World Economic Forum
Initiatives
Beyond its Summit activities, the World Economic Forum runs a number of initiatives including:
The Global Health Initiative
The Global Education Initiative
Energy Poverty Action
Climate Change
The Water Initiative
Financing for Development
The Global Risk Network
Scenario Planning
The Global Competitiveness Network
7
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The Global Competitiveness Network
Flagship product: The Global Competitiveness Report:
launched in 1979 covering 16 countries; it has since expanded
its coverage to 133 countries.
Editor: Professor Klaus Schwab.
Goal: to provide a benchmarking tool for policymakers and
business leaders.
8
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The Global Competitiveness Report 2009-2010Geographical coverage
9
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The Global Competitiveness NetworkThematic coverage
Regional, topical and industry report series:
The Travel and Tourism Competitiveness Report
The Global Information Technology Report
The Global Enabling Trade Report
The Lisbon Review
The Mexico Competitiveness Report 2009
The Brazil Competitiveness Report 2009
The Africa Competitiveness Report 2009
The Global Gender Gap Report
10
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The Global Competitiveness IndexData sources
Use of hard data (publicly available information from
sources such as the International Monetary Fund, the
World Bank, UNESCO, United Nations, etc.).
And survey data (from the Executive Opinion Survey),
which records the perspectives of business leaders
around the world; survey data is indispensable,
particularly for variables where no reliable hard data
sources exist.
11
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The Global Competitiveness IndexData sources: The Executive Opinion Survey
The Executive Opinion Survey is structured around
eleven major issue areas, each of significant relevance
to the current state of an economy’s business
environment,
Survey respondents are asked a total of 144 questions
based on their own experiences of operating a business
in the country in which they are based.
The Survey is translated into over 20 languages and is
available online.
In 2009, over 13,000 business leaders from 133
countries responded to the Survey.
12
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The Global Competitiveness IndexData sources: The Executive Opinion Survey
The Executive Opinion Survey is conducted on a yearly
basis between January and May by our network of
Partner Institutes.
The Partner Institutes follow sampling guidelines;
carefully selecting sample respondents in each country
to reflect the structure of a country’s GDP.
Our partner institute in Iceland is Innovation Center
Iceland.
13
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The Global Competitiveness ReportWhat are we trying to measure?
Source: International Monetary Fund, World Economic Outlook, September 2008
Gross domestic product based on purchasing-power-parity per capita, 1980-2008
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Iceland Denmark Italy
14
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
Competitiveness is defined as the set of factors,
policies and institutions that determine the level of
productivity of a country.
Productivity is the main driver of investment in an
economy. Investment, in turn, determines the rate of
growth of the economy.
We say that a more competitive economy is one that
is likely to grow faster over the medium to long run.
We try to shed light on “the factors, policies and
institutions” that determine the sharply different
growth experiences of 134 economies worldwide.
The Global Competitiveness ReportWhat do we mean by competitiveness?
15
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The Global Competitiveness IndexThe 12 pillars of competitiveness
Key for
efficiency-driven
economies
Key for
factor-driven
economies
1. Institutions
2. Infrastructure
3. Macroeconomic stability
4. Health and primary education
5. Higher education and training
6. Goods market efficiency
7. Labor market efficiency
8. Financial market sophistication
9. Technological Readiness
10. Market size
11. Business sophistication
12. Innovation
Key for
innovation-driven
economies
BASIC REQUIREMENTS
EFFICIENCY ENHANCERS
INNOVATION & SOPHISTICATION FACTORS
16
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
The process of economic development evolves in three
stages captured by the model:
a. "Factor-driven stage"
Firms compete in prices, taking advantage of cheap
factors.
b. "Efficiency-driven stage"
Efficient production practices to increase productivity.
c. "Innovation-driven stage"
Economies need to produce innovative products using
sophisticated production methods (incorporating and
taking full advantage of ICT, among other things.)
The Global Competitiveness IndexStages of development
17
Ass
ess
ing
Ic
ela
nd
’s n
atio
na
l c
om
pe
titiv
en
ess
Re
yk
jav
ik |
Se
pte
mb
er
25
th, 2
00
9
* Based on GDP per capita and resource intensity
Transition from
1 to 2 Stage 2
Transition from
2 to 3
Bangladesh Malawi Algeria Albania Bahrain Australia Luxembourg
Benin Mali Azerbaijan Argentina Barbados Austria Malta
Extent of market dominance 84 3.46 11th pillar: Business sophistication 23 4.85Effectiveness of anti-monopoly policy 23 4.90 A. Networks and supporting industries 38 4.72
Agricultural policy costs 104 3.48 Local supplier quantity 60 4.87
Prevalence of trade barriers 99 4.16 State of cluster development 48 3.82
Tariff barriers 51 0.04 Nature of competitive advantage 28 4.36
Prevalence of foreign ownership 126 3.55 Value chain breadth 31 4.30
Business impact of rules on FDI 119 3.87 Extent of marketing 27 5.20