Saturday, 22 September, 2018

Bangladesh ranks 99th in Global Competitiveness Index

India and China both face debt troubles which the World Economic Forum fears could precipitate a crisis
Ma Zhancheng  Xinhua via AP India and China both face debt troubles which the World Economic Forum fears could precipitate a crisis Credit Ma Zhancheng Xinhua via AP
Nellie Chapman | 27 September, 2017, 07:53

Once again, Switzerland has been found to be world's most competitive economy, narrowly ahead of the United States and Singapore.

The GCR is an annual report published by the WEF based on the Global Competitiveness Index (GCI) that combines 114 indicators that integrate both macro and micro economic aspects of competitiveness.

Pakistan's ranking in Global Competitiveness Report (GCR) has improved by seven notches and stood at the 115th position in accordance with the 2017-18 report against the 122th position in 2016-17, the World Economic Forum (WEF) states in its report.

In a statement yesterday, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the report highlighted three main challenges confronting the global economy - financial vulnerabilities which pose a threat to competitiveness and the economy; ability to spread the benefits of innovation inclusively and labor market flexibility; and worker protection are needed for competitiveness and shared prosperity.

India, however, is the top South Asian country in the index, even though most countries in the region have been progressing competitively. Singapore was ranked 18th for macroeconomic environment.

A Treasury spokesman defended the UK's position, saying the report proved that the country is still "one of the best places in the world to do business" thanks to a "low corporate tax rate, a robust labour market and a thriving technology sector". This is a key hindrance to its productive capacity, and even this three-position jump can only take it up to 107th.

That was followed closely by issues including "inefficient government bureaucracy", an "inadequately educated workforce", and access to financing.

In fact, the new GST tax regime brought in this year has been created to tackle the "tax regulations" problem, though a lot will depend on its effective implementation.

This wide disconnect between innovative strength and technological readiness will prevent the emerging market darling from fully leveraging its strengths across the wider economy, the WEF said.

Improvement across most pillars of competitiveness, particularly infrastructure and higher education, reflects recent public investments in these areas, WEF said. Talents will become increasingly more important than capital and therefore the world is moving from the age of capitalism into the age of talents.

"We will continue to adopt sound economic policies".