Issue Overview

The Council defines competitiveness as the set of institutions, policies and factors that determine the level of productivity of a country. The level of productivity, in turn, determines the level of prosperity that can be gained by an economy. The productivity level also determines the rates of return obtained by investments in an economy, which are the fundamental drivers of its growth rates; thus, a more competitive economy is one that is likely to sustain growth.

The importance of enhancing national competitiveness has moved up on the agenda of many countries during the past decade. In this same period, traditional cornerstones of globalization have shifted and changed the framework in which national policies operate. The global financial crisis of 2008-09, the lack of clear progress on the Doha Development Round and the rise in preferential trading agreements are among the developments that have shaped the global context of national economic growth. 

Despite recognizing the importance of competitiveness, achieving improvements is a complex process. Leaders often find it difficult to identify the most impactful measures and create the necessary political support and momentum for competitiveness-enhancing reforms.

Did You Know?

• In this year’s Competitiveness ranking, the top 10 remain dominated by European countries, with Switzerland, Finland, Sweden, the Netherlands, Germany and the United Kingdom confirming their place among the most competitive economies. Along with the United States, three Asian economies also figure in the top 10, with Singapore remaining the second-most competitive economy in the world, and Hong Kong SAR and Japan placing ninth and tenth (The Global Competitiveness Report 2012-2013).
• During the past 30 years, the key indicator of prosperity – gross domestic product (GDP) per capita – has grown 18 times in Korea and 58 times in China, while in Nigeria it increased only five times. 
• Sub-Saharan Africa has grown impressively over the last 15 years: registering growth rates of over 5% in the past two years, the region continues to exceed the global average and exhibit a favourable economic outlook (The Global Competitiveness Report 2012-2013).
• Latin America and the Caribbean have continued to grow steadily in the past year at an average rate of 4.5% (The Global Competitiveness Report 2012-2013).
• In the Middle East and North Africa, addressing the unemployment challenge will remain the key economic priority for the foreseeable future (The Global Competitiveness Report 2012-2013).

Quotes

"At a time of economic uncertainty among advanced economies and slowing growth in major emerging countries, the need to focus on growth and ways to enhance national competitiveness is paramount for governments the world over. There is an opportunity for business and governments to work together to put in place the kind of policies that will promote productivity growth at the national and sub-national level, and in doing so, make their cities, regions and countries more competitive on the global stage."
Clement Gignac, Chief Economist and Senior Vice-President, Industrial Alliance Insurance and Financial Services

“As economic, political and social turbulence transform the global landscape, and as advances at the atomic, genetic and nuclear levels rewrite the human condition, nations and leaders in the early 21st century have an obligation to double down and focus as never before on the fundamentals of competitiveness – those factors that will drive long-term productivity growth and better living standards for all. This report and its findings illuminate a path for future prosperity; we must take the first steps and show the way.”
Deborah Wince-Smith, President, Council on Competitiveness, USA

"National competitiveness is all about core productivity. Liberalization and global integration over the last three decades have boosted productivity around the world, and with it the living standards and life chances of hundreds of millions – indeed billions – of people. But productivity is still held back by thickets of government regulations, restrictions on competition and protectionism. That leaves a substantial reform agenda for rich countries and emerging markets alike."
Razeen Sally, Visiting Associate Professor, Lee Kuan Yew School of Public Policy, National University of Singapore

Further resources

Guidelines for National Competitiveness Reports
Guidelines for Creating a National Competitiveness Council (NCC)
World Economic Forum’s Global Competitiveness Reports
Global Agenda Council on Competitiveness Annual Report 2011-2012
Global Federation of Competitiveness Council

Calendar

Global Federation of Competitiveness Councils (GFCC) Summit
27-29 November 2012
Dubai and Abu Dhabi, United Arab Emirates

Global Competitiveness Forum
January 2013
Riyadh, Saudi Arabia

Council Insights

The Council seeks to raise awareness of the importance of competitiveness for economic growth, and to identify ways for countries to systematically transform their economies towards higher competitiveness. The Council will reiterate the need to foster competitiveness by raising productivity, and has identified the following as key issues for national competitiveness: increasing sustainable competitiveness; institutionalizing multistakeholder discussions on competitiveness; analysing competitiveness; focusing on competitiveness at the sub-national level; and, developing new models of governance.

During the 2011-12 term, the Council on Competitiveness produced Guidelines for National Competitiveness Councils and reports. These provide a point of entry to institutions interested in setting up a competitiveness council or publishing a competitiveness report. The Council also provided input to a number of regional and topical competitiveness projects. For example, in the Europe 2020 review, benchmarks analyse the progress of Europe towards both the competitiveness goals, and to the World Economic Forum’s ongoing work on sustainable competitiveness. The Council has agreed to work with the Global Federation of Competitiveness Councils to stimulate the creation and growth of private-sector-led National Competitiveness Councils around the world, particularly in Europe, Africa, the Indian sub-continent, and South and Central Asia.

During the new term, the Council will focus on wealth creation and economic growth-enhancing reforms, and will pursue two work streams: identification of best practices in regional competitiveness, focusing on large heterogeneous countries; and, analysis of barriers to structural reform and the methods required to overcome them. Individual Council Members will also continue to discuss sustainable competitiveness and related distributional issues in the Advisory Board on Sustainable Competitiveness.

Contact Information

Research Analyst: Daniel Akinmade Emejulu, Research Analyst, Global Agenda Councils, Daniel.Emejulu@weforum.org
Council Manager: Margareta Drzeniek, Director, Senior Economist, Head of Competitiveness Research, Global Benchmarking Network, margareta.drzeniek@weforum.org
Forum Lead: Jennifer Blanke, Lead Economist, Senior Director, Head of Global Benchmarking Network, jennifer.blanke@weforum.org