The prosperity of any country is determined by the productivity of
an economy, which is measured by the value of goods and services produced per
unit by nation’s human capital and natural resources.
Productivity supports high wages, a strong currency, and a high standard of living. Competitiveness is then measured by productivity.
Productivity supports high wages, a strong currency, and a high standard of living. Competitiveness is then measured by productivity.
Many
countries like India can enhance their prosperity if they improve their
productivity. Improving productivity will lead to a rise in the value of goods
produced which in return will improve the local income. Analyzing the drivers
of productivity across countries is one of the oldest vocations of economic
research.
The global talent
competitiveness index prepared by the INSEAD business school in partner with
Tata communication and Adecco Group was released on the First day of the World
Economic Forum Annual meeting 2019.
What is Global talent Competitiveness
index?
Launched for the first time
in 2013, the global talent competitiveness index is an annual benchmarking
report that measures the ability of countries to compete for talent.
The global competitiveness
index has been measuring the factors that drive long-term growth and property
for over four decades which in returns helps the policymakers of different
countries in identifying the global and domestic challenges to be addressed.
This index is widely used
among different countries to measure their competitiveness with rest of the
world.
It provide unique insight
into the drivers/indicators or productivity of different countries. The index
comprises of both the macroeconomic and micro economics/ micro-business aspects
of competitiveness.
The Global Talent Competitive
Index measures how countries and cities grow attract and retain talent, ranking
125 countries and 114 cities across all groups of income and levels of
development.
Highlight of the index 2019
This year’s Global Talent
Competitiveness Index covers 93% of the population, focuses on entrepreneurial
talent and global competitiveness.
To withstand turbulent
markets organizations need to find ways to foster entrepreneurial talent. It
can be seen that a collaborative, open approach leads to greater success in
government education and business.
What is the Global finding in
the index?
Switzerland followed by
Singapore, the US, Norway and Denmark in the top five on the list. The talent
gap between higher and lower income countries has widened over the last five
years.
Countries in Asia, Latin
America and Africa are seeing progressive erosion of their talent base. China’s
ranking fell by two places to 45. Even then China is the best performer among
BRICS countries.
The report cities rather than
countries are developing stronger roles as talent hubs and will be crucial in
reshaping the global talent scene.
The top ranked city in the
index is Washington DC, followed by Copenhagen, Oslo, Vienna and Zurich.
The study found that entrepreneurial
talent has become a key differentiator in relative talent competitiveness.
India up one place on ranking
at 80th
India has moved up one
position to rank 80th on the Global Talent Competitive Index, but
remains lagged behind among BRICS nations, though India’s performance was
better than its lower-income peers when it comes to growing talent 48th
and access to growth opportunities 41st.
In spite of the scope for
improvement across the board, India’s biggest challenge is to improve its
ability to attract 95th and retain 96th talent.
India has lagged behind to
address its poor level of internal openness 116th in particular with
respect to weak gender equality and low tolerance towards minorities and
immigrants and its disappointing showing in lifestyle 112th
indicators.
Reasons why India don’t grow
drastically
There are various reasons
behind the slowdown of India’s rank in the index. One most important factor is
corruption which is considered as the most problematic factor for doing
business in India. Access in financing, followed by tax regulations. The other
major is reason educational inadequacy in the workforce/laborers.
India’s poor ranking health
and primary education pillar is the second worst ranking to the technological
readiness
India has an enormous
infrastructure gap, but it can be bridged by cooperation between the public
private sectors. In India refusal to give payments or delay in giving payments
by the government will lead to breach of contractual agreements which in turn
will have a bad influence on future investment decisions.
One of the other constraints
includes access to financing and waiting for a long period of time to get
returns from the investment. This affects financiers and investors who are
looking for a long term and steady returns.
India is doing well in the
field of innovation but is leaving a large section of the society behind as
they are not technologically equipped.
As it can be seen from the
reports that innovation is not at par with the technological readiness of the
individuals and the firms in India. Technological readiness is relatively low
as compared to innovation.
Disruptive inequalities
The technological advancement
has in a way polarized the labour market, huge drop in the number of
mid-skilled joins and increase in both low and high skilled jobs. In many
advanced economies, income inequality has increased.
Conclusion
Even though with all these
limitations/barriers in the improvement of ranking in Global competitiveness
country in south Asia. The world Economic forum has appreciated India’s effort
in information and communication technology sector.
India can go far ahead if
deep rooted problem can be addressed. India needs to change its
methodology and adapt new ways for growth in every sector. Then only India can
get better position in the index.