Global Competitiveness Ranking and report was published by Institute of Management Development (IMD) World Competitiveness Center, located in Switzerland. First report was published in 1989.
The institute is publishing annual Global Competitiveness Ranking Report every year, and through this report it is making assessment of competitiveness of Nation and World Economic Ranking.
The ranking is based on four principal factors namely –
- Economic Performance
- Government Efficiency
- Business Efficiency
- InfrastructureBased on these four factors, IMD-WCC has fixed as much as 340 different criteria for holistic assessment of economies.
Two third part of the Global Competitiveness Ranking is based on statistical indicators, while rest one third part is based in international survey by IMD-WCC. This comprehensive survey is carried out by more than fifty thousand executives around the world.
In its first report released in 1989, the 32 countries were ranked. While in latest 2016 report 61 countries were ranked.
Global Competitiveness Ranking – Important Countries and their Ranks
In 2016, Global Competitiveness Ranking, India ranks 41. It has improved its position by three ranks as it was ranked at 44 in last year’s report. The reason of this improvement may be attributed to three factors –
- Fiscal deficit management. We have been able to bring down the fiscal deficit.
- Efforts to tackle corruption and red tapism which led to ease of doing business in India.
- Exchange rate stability.
China has slipped by three ranks, it is ranked 25. Last year it was ranked at 22. However, China is best ranked among BRICS nations in Global Competitiveness Ranking followed by India (41), Russia (44), South Africa (52) and Brazil (57).
In Global Competitiveness Ranking 2016, Hong Kong (China) is at top position, followed by Switzerland and United States. Last year top rank was held by US. Venezuela ranks at the bottom of this list.
As report mentions the USA has surrendered its status as the world’s most competitive economy after being overtaken by China Hong Kong and Switzerland!
Among these 61 countries, 28 has improved their ranking including India, Hong Kong etc. 23 countries have slipped from their previous ranks ex. China, Switzerland etc. 10 countries have not changed their position.
Normally the Global Competitiveness Ranking is published in the month of May, and global investors refers it for their investment decisions. This report along with ‘Ease of Doing Business Report’ helps them in finding better opportunities.
Global Competitiveness Ranking 2016
(2) China Hong Kong
(17) New Zealand
(19) United Kingdom
(22) China Mainland
(25) Korea Rep.
(29) Czech Republic
(46) Slovak Republic
(53) South Africa
In its object, IMD-WCC mentions “the World Competitiveness Center helps businesses and governments highlight competitive advantages and uncover opportunities in offering a range of customized solutions.”