The World Economic Forum has broadened the traditional definition of national competitiveness to emphasize the importance of social, cultural and economic factors, in addition to traditional measures of labour and capital productivity.
Income inequality is rising, social and political tensions mounting, and there is a general feeling of uncertainty about the future. This is compounded by persistently low growth: commodity prices have fallen, as has trade.
In this context, creating the conditions necessary to reignite growth has never been more urgent.
The Global Competitiveness Report is a tool to help governments, the private sector and civil society work together to boost future prosperity. Comparative analysis between countries allows leaders to gauge areas that need strengthening and build a coordinated response. It also helps identify best practice elsewhere in the world.
The Global Competitive Index forms the basis of the report. It measures national performance according to 114 indicators that influence a nation’s productivity. The latest edition covered 140 economies, covering 98.3% of the world’s GDP.
Countries’ scores are based primarily on quantitative findings from internationally recognized agencies such as the International Monetary Fund and World Health Organization, with the addition of qualitative assessments from economic and social specialists and senior corporate executives.
The report is a key performance indicator for Saudi Arabia’s Vision 2030
Recent impact from the Global Competitiveness Report includes instigating a discussion among Dominican Republic business leaders on how to increase the country’s competitiveness. This led to a presidential decree in 2015, creating the Initiative for National Productivity and Competitiveness, which aims to identify and promote the necessary actions and reforms.
Similarly, the report influenced a major initiative to improve business practices and policies to produce higher competitiveness in Thailand.
The report is also a key performance indicator for Saudi Arabia’s Vision 2030, which sets out the country’s long-term economic goals.
How can the world strengthen growth and equality at the same time?