Introduction: - World Economic Competitiveness Index
The World Economic Forum released the Global Competitiveness Report 2018. India has become the 58th most competitive economy on competitiveness index among 140 nation. Whereas the United States is the world’s most competitive economy with a score of 85.6.
The WEF’s Global Competitiveness Index 4.0’ is something of a departure from previous editions of annual report. In that it has slightly changed its name and updated its methodology as the report mentioned—“the changing nature of economic competitiveness in a world that is becoming increasingly transformed by new, digital technologies”
The 2018 edition, using the new criteria “backcast” data for 2017 and came up with new ranking for that year. In that updated list, the US finished top as well.
The 2018 edition, using the new criteria “backcast” data for 2017 and came up with new ranking for that year. In that updated list, the US finished top as well.
According to the report, India has jumped five spots to become the 58th in the index. India witnessed the largest gain among the G20 nations. India ranked highest among South Asian countries with a score of 62.0.
Sri Lanka was ranked 86, Bangladesh 103, Pakistan 107 and Nepal 109. Top 5 countries on the index include U.S, Singapore, Germany, Switzerland and Japan. It may be noted that this index captures determinants of long-term growth. The report stated that the global economy is projected to grow nearly 4% in 2018 and 2019.
Sri Lanka was ranked 86, Bangladesh 103, Pakistan 107 and Nepal 109. Top 5 countries on the index include U.S, Singapore, Germany, Switzerland and Japan. It may be noted that this index captures determinants of long-term growth. The report stated that the global economy is projected to grow nearly 4% in 2018 and 2019.
Among BRICS nations China topped the list at 28th position with a score of 72.6 followed by Russian federation, India, south Africa and brazil respectively.
The report states that India leads the south Asian region in all areas of competitiveness except for education, health and skills. The report also mentions that India's greatest competitive advantages include its market size, innovation and business dynamism. The areas for further improvement are labour market, products marker skills
Highlights of the report
In addition to ranking countries, the report makes a number of general assessments regarding the overall competitiveness and health of the world economy. Its central finding is that the new wave of digital technologies is creating fresh policy challenges for governments, and it runs the risk of impacting global growth and productivity in the near future.
The report argues that many of the key factors that will drive future economic growth, such as idea generation, entrepreneurial culture, openness and agility, have not yet been focus of major governmental policy making.
Calling for openness and inclusion
“Embracing the fourth industrial revolution has become a defining factor for competitiveness the chairman of the World Economic Forum quoted in the report.
The report also mentions about the ongoing trade tensions
The presidency of Donald Trump in the U.S, as well as the UK’s vote to leave the EU, has threatened to drastically alter the status of international trade in recent years.
Conclusion
As the report emphasizes the importance of trade openness for global competitiveness, saying that the data suggests that global economic health would be positively impacted by a return to greater openness and integration. India should also start emphasizing in skill, health and education sector. Indian economy is growing high, jobs are available in India but well skilled employee are less, though India is focusing on providing skills through various ongoing programmes. Health and education sectors are still poorly working. Government have to work multidimensionally in every sector. Other than that, in report it has clearly given that governments should implement more inclusive and redistributive tax polies which means a situation in which rich people give more taxes and poor people give less taxes according to their income percentage. Then only it is possible to be pro-growth and inclusive at the same time.
A glance about World Economic Forum
It is an international institution founded by Klaus Schwab that worked to improve the state of the world through public-private cooperation. It was established in 1971 and is headquartered in Geneva, Switzerland. It serves as independent not – for- profit organization that works closely with other international organizations. It also works with leaders in the field of politics, business, academia to set a global, regional and industrial agenda.
The WEF has been publishing global competitive r eports since 1979, according to its own mission, has been “providing policy-makers and other stakeholders around the world with an annual assessment of the drivees of long-term growth”.
