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Global Competitiveness Report 2012-2013[/caption]World Economic Forum's Global Competitiveness Report 2012-2013 displays very similar rankings to those of the previous year. Just as it also did in the 2 previous years, Taiwan has remained in the 13th position. According to the report, Taiwan's "competitiveness profile is essentially unchanged and consistently strong. Notable strengths include its highly efficient markets for goods, where the economy ranks 8th; its solid educational performance (9th); and its sophisticated business sector (13th), which is inclined to innovate (14th). Strengthening competitiveness will require continued improvements to the economy’s institutional framework as well as stabilizing its macroeconomic environment, which would
require fiscal consolidation to reduce the budget deficit" (from http://www3.weforum.org/docs/CSI/2012-13/GCR_CountryHighlights_2012-13.pdf).
In an East Asian context, Taiwan is behind Singapore, Japan and Hong Kong, and in front of Malaysia, South Korea and China. In the global ranking, Switzerland and Singapore remain at the top 2 positions, whereas Hong Kong moves up from position #11th to 9th and Japan loses 1 place, from #9 to #10, respectively. South Korea improves its position from #24 to #19, whereas Malaysia and China both move downwards from #21 to #25 and from #26 to #29. Spain's position has also remained stable at #36 during the last year.
According to the report, Singapore "retains its place at 2nd position as a result of an outstanding performance across the entire Index. The country features in the top 3 in seven of the 12 categories of the Index and appears in the top 10 of three others. Its public and private institutions are rated as the best in the world for the fifth year in a row. It also ranks 1st for the efficiency of its goods and labor markets, and places 2nd in terms of financial market development. Singapore also has world-class infrastructure (2nd), with excellent roads, ports, and air transport facilities. In addition, the country’s competitiveness is reinforced by a strong focus on education, which has translated into a steady improvement in the higher education and training pillar (2nd) in recent years, thus providing individuals with the skills needed for a rapidly changing global economy" (from http://www3.weforum.org/docs/CSI/2012-13/GCR_CountryHighlights_2012-13.pdf).
Hong Kong "rises to 9th position while slightly improving its score. The territory’s consistently good performance is reflected in very good showing across most of the areas covered by the GCI. As in previous years, Hong Kong tops the infrastructure pillar, reflecting the outstanding quality of its facilities across all modes of transportation and
its telephony and electricity infrastructure. Moreover, the economy’s financial markets are second to none, revealing high efficiency and trustworthiness and stability of the banking sector. The dynamism and efficiency of Hong Kong’s goods market (2nd) and labor market (3rd) further contribute to the economy’s very good overall positioning. To maintain and enhance its competitiveness going forward, continued improvements in two important areas—higher education (22nd) and innovation (26th)—will be necessary. Although the quality of education in Hong Kong is good (12th), participation remains below levels found in other advanced economies (53rd). Improving educational outcomes will also help boost Hong Kong’s innovative capacity, which remains constrained by the limited availability of scientists and engineers (36th), among other things" (from http://www3.weforum.org/docs/CSI/2012-13/GCR_CountryHighlights_2012-13.pdf).
And about China, "it loses some ground in this year’s edition of the Report. After five years of incremental but steady progression, it has now returned to its 2009 level. The country continues to lead the BRICS economies by a wide margin, ahead of second-placed Brazil (48th) by almost 20 ranks. Although China’s decline is small—its overall score barely changes—it affects the rankings of every pillar of the GCI except market size. The deterioration is more pronounced in those areas that have become critical for China’s competitiveness: financial market development (54th, down 6), technological readiness (88th, down 11), and market efficiency (59th, down 14). In this latter pillar, insufficient domestic and foreign competition is of particular concern, as the various barriers to entry appear to be more prevalent and more important than in previous years. On a more positive note, China’s macroeconomic situation remains very favorable (11th), despite a prolonged episode of high inflation. China runs a moderate budget deficit; boasts a low, albeit increasing, government debt-to-GDP ratio of 26 percent; and its gross savings rate remains above 50 percent of GDP. The rating of its sovereign debt is significantly better than that of the other BRICS and indeed of many advanced economies. Moreover, China receives relatively high marks in health and basic education (35th) and enrollment figures for higher education are also on the rise, even though the quality of education—in particular the quality of management schools (68th)—and the disconnect between educational content and business needs (57th) in the country remain important issues" (from http://www3.weforum.org/docs/CSI/2012-13/GCR_CountryHighlights_2012-13.pdf).
The full report can be downloaded as pdf from the World Economic Forum website.
