Taiwan remains 13th in WEF global competitiveness rankings | Economics

Marco Green
October 19, 2018

In light of political and economic developments in South Africa in recent years, Parsons notes that the further slippage in the country's overall global competitiveness ranking in the latest restructured and refined WEF report for 2018/19 from 62 to 67, out of 140 countries, is not unexpected.

A Chinatown market in Singapore.

The World Economic Forum (WEF) competitiveness index pointed out that this year's gains were attributed to an improvement in the country's macroeconomic environment and a high level of information technology.

Last on the list of 140 economies measured was Chad with a score of 35.5 on the scale, barely missed by Yemen (36.4) and Haiti (36.5). "Beyond income, competitiveness is generally associated with better socioeconomic outcomes, including life satisfaction".

The country was ranked lowest in product market at 102nd, business dynamism at 101st and skills at 97th.

The authors tweaked the index this year to account in part for the effects of the 2008 financial crisis, changes in human capital and the "Fourth Industrial Revolution" - the forum's buzzword for the digital revolution that is disrupting almost every industry around the globe at a breakneck pace.

"Those new drivers include adaptability and agility of all stakeholders, including the governments".

Technology is changing everything, and countries that are not ready to adapt will struggle.

WEF experts denied that the analysis had been remodelled to flatter US President Donald Trump, who topped the bill at the WEF's annual meeting at Davos in January, bringing his "America First" message to the world's elite. Its entrepreneurial culture saw it score highly in the business dynamism pillar. The market capitalisation of the financial system as a percentage of the country's GDP is what drives down the financial system pillar score.

It warns for instance that there are indications the social fabric is weakening, that the security situation is worsening - the country's homicide rate is five times the average for advanced economies - and that there are relatively low checks and balances, judicial independence and transparency. Germany placed third with a score of 82.8.

The WEF's findings lent support to the government's New Southbound Policy as South Asia remains the region with the lowest trade penetration in the world, with imports and exports of both services and merchandise amounting to 39 percent of regional GDP past year.

One of the key findings from the report is that all economies could do better in certain areas. It is a full six years behind Singapore and Japan, the report found.

The consumer-oriented capitalist economy is based on healthy competition between all concerning parties, not just among consumers but also between rivals occupying the same market.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER