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Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
Global ompetitiveness Index - Nigeria
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Global ompetitiveness Index - Nigeria

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Survival of the fittest was once a biological concept, where one animal out-smart the other in order to feed on the most sought-after preys, it later became a business idea as one company employs all …

Survival of the fittest was once a biological concept, where one animal out-smart the other in order to feed on the most sought-after preys, it later became a business idea as one company employs all the mercenary they can to out-sell, out-market, and out-profit others. Today, it is survival of the fittest country.

Many countries have been relegated to the background because they can no longer compete base on cost, size, quality and speed; and like the old economic term comparative cost advantage, it is imperative that individual countries know where they are strongest and do their best to use this means to market their Nation to the World.

World Economic Forum, in their WEF_GlobalCompetitivenessReport_2011 – 2012 give detail facts showing each country area of Global competitive advantage. I have gone a step further focusing on Nigeria and showing where Nigeria stands compared to the rest of the world and how we can improve on where we are, leverage on our strength in order to join the growing economies of the World.

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  1. Global Competitiveness Index: Focus on Nigeria StatiSense ® - Wale Micaiah ©
  2. GlobalCompetitiveness Index:Focus on Nigeria
  3. The World Economic Forum (WEF) Geneva,Switzerland produces a yearly report to measurecountries and regions competitiveness amongNations of the world using Global CompetitivenessIndex (GCI)The GCI was launched in 2005 and currently in its 7thyear, it has identified 12 Pillars that measures andcontribute to Nations’ Competitiveness.This presentation focuses on Nigeria’s GCI for thepurpose of knowing where we are currentlycompetitive and how we can compete globally. Data Source: WEF_GlobalCompetitivenessReport_2011 - 2012
  4. The 12 Pillars of GCI Institutions Infrastructure BASIC REQUIREMENTS Macroeconomic Environment Health and Primary Education Higher Education & Training Goods Market Efficiency Labor Market Efficiency EFFICIENCY Financial Market Development ENHANCERS Technological Readiness Market Size Business Sophistication INNOVATION & SOPHISTICATION Innovation FACTORS
  5. 1: InstitutionsThe institutional environment is determined by the legal andadministrative framework within which individuals, firms, andgovernments interact to generate income and wealth in the economy. Overall, Nigeria ranks 111 of 142 countries in Institutions, only with competitive advantages in Burden of government regulation and Strength of investor protection. The lack of strong Institutions lead to: Excessive bureaucracy and red tape Overregulation Corruption Dishonesty in dealing with public contracts Lack of transparency and trustworthiness
  6. 2: InfrastructureExtensive and efficient infrastructure is critical for ensuring theeffective functioning of the economy, as it is an important factordetermining the location of economic activity and the kinds ofactivities or sectors that can develop in a particular economy.Overall, Nigeria ranks 135 of 142countries in Infrastructure, with nocompetitive advantage in any of it’smetrics.It is impossible for a Nation to experienceeconomic turn-around without: Electricity (constant supply) Transportation and Communication - telecoms Nigeria is about the only country of her status without an efficient rail system!
  7. 3: Macroeconomic EnvironmentThe stability of the macroeconomic environment is important forbusiness and, therefore, is important for the overall competitivenessof a country. The government cannot provide services efficiently if ithas to make high-interest payments on its past debts. Overall, Nigeria ranks 121 of 142 countries in Macroeconomic Environment, with competitive advantages in Gross national savings, % GDP and General government debt, % GDP.
  8. 4: Health and Primary EducationA healthy workforce is vital to a country’s competitiveness and productivity.Workers who are ill cannot function to their potential and will be lessproductive. Poor health leads to significant costs to business, as sick workersare often absent or operate at lower levels of efficiency. In addition tohealth, this pillar takes into account the quantity and quality of basiceducation received by the population, which is increasingly important intoday’s economy. Overall, Nigeria ranks 140 of 142 countries in Health and Primary Education, with no competitive advantage in any of it’s metrics. The Health of a Nation, is her Wealth!
  9. 5: Higher Education & TrainingQuality higher education and training is crucial for economies that want tomove up the value chain beyond simple production processes and products.In particular, today’s globalizing economy requires countries to nurturepools of well-educated workers who are able to adapt rapidly to theirchanging environment and the evolving needs of the production system.This pillar measures secondary and tertiary enrollment rates as well as thequality of education as evaluated by the business community. Overall, Nigeria ranks 114 of 142 countries in Higher Education & Training, with no competitive advantage in any of it’s metrics. Similarly, the Wealth of a Nation, is highly dependent on her Citizens’ level of education!
  10. 6: Goods Market EfficiencyCountries with efficient goods markets are well positioned to produce theright mix of products and services given their particular supply-and-demandconditions, as well as to ensure that these goods can be most effectivelytraded in the economy. The best possible environment for the exchange ofgoods requires a minimum of impediments to business activity throughgovernment intervention. Overall, Nigeria ranks 73 of 142 countries in Goods Market Efficiency, with competitive advantages in Extent of market dominance, Extent and effect of taxation and Total tax rate.
  11. 7: Labor Market EfficiencyThe efficiency and flexibility of the labor market are critical for ensuring thatworkers are allocated to their most efficient use in the economy andprovided with incentives to give their best effort in their jobs. Labor marketsmust therefore have the flexibility to shift workers from one economicactivity to another rapidly and at low cost, and to allow for wagefluctuations without much social disruption. Overall, Nigeria ranks 73 of 142 countries in Labor Market Efficiency, with competitive advantages in Flexibility of wage determination, Rigidity of employment index and Hiring and firing practices. Efficient labor markets ensure: Clear relationship between worker incentives Promotion meritocracy at the workplace Equity in the business environment between women and men
  12. 8: Financial Market DevelopmentAn efficient financial sector allocates the resources saved by a nation’scitizens, as well as those entering the economy from abroad, to their mostproductive uses. It channels resources to those entrepreneurial orinvestment projects with the highest expected rates of return rather than tothe politically connected. Overall, Nigeria ranks 86 of 142 countries in Financial Market Development, with competitive advantages in Financing through local equity market and Legal rights index. Trust and Transparency!
  13. 9: Technological ReadinessIn today’s globalized world, technology is increasingly essential for firms tocompete and prosper. The technological readiness pillar measures the agilitywith which an economy adopts existing technologies to enhance theproductivity of its industries, with specific emphasis on its capacity to fullyleverage ICT in daily activities and production processes for increasedefficiency and competitiveness. Overall, Nigeria ranks 106 of 142 countries in Technological Readiness, with no competitive advantage. There is high correlation between infrastructure & Technology!
  14. 10: Market SizeThe size of the market affects productivity since large markets allow firms toexploit economies of scale. In the era of globalization, international marketshave become a substitute for domestic markets, especially for smallcountries. There is vast empirical evidence showing that trade openness ispositively associated with growth. Overall, Nigeria ranks 34 of 142 countries in Market Size, with competitive advantages in the only two metrics - Domestic market size index and Foreign market size index. Population does matter!
  15. 11: Business SophisticationBusiness sophistication concerns two elements that are intricately linked:the quality of a country’s overall business networks and the quality ofindividual firms’ operations and strategies. These factors are particularlyimportant for countries at an advanced stage of development, when, to alarge extent, the more basic sources of productivity improvements havebeen exhausted. Overall, Nigeria ranks 64 of 142 countries in Business Sophistication, with competitive advantages in State of cluster development and Willingness to delegate authority.
  16. 12: InnovationInnovation is particularly important for economies as they approach thefrontiers of knowledge and the possibility of integrating and adaptingexogenous technologies tends to disappear. Overall, Nigeria ranks 82 of 142 countries in Innovation, with competitive advantages in Company spending on R&D.
  17. Summary GCI RankNo. Pillar Rank/142 Score* G.A.S*1 Institutions 111 3.31 4.042 Infrastructure 135 2.21 3.983 Macroeconomic Environment 121 3.96 4.814 Health and Primary Education 140 3.28 5.455 Higher Education & Training 114 3.18 4.106 Goods Market Efficiency 73 4.18 4.237 Labor Market Efficiency 70 4.36 4.338 Financial Market Development 86 3.89 4.079 Technological Readiness 106 3.08 3.8810 Market Size 34 4.59 3.6911 Business Sophistication 64 3.96 3.9912 Innovation 82 3.01 3.36 Score – measured on a scale of 1 – 7; the higher the better G.A.S – Average of Score for all 142 countries
  18. No. Pillar Rank/142 Score* G.A.S* 1 Institutions 111 3.31 4.04 2 Infrastructure 135 2.21 3.98 3 Macroeconomic Environment 121 3.96 4.81 4 Health and Primary Education 140 3.28 5.45 5 Higher Education & Training 114 3.18 4.10 6 Goods Market Efficiency 73 4.18 4.23 7 Labor Market Efficiency 70 4.36 4.33 8 Financial Market Development 86 3.89 4.07 9 Technological Readiness 106 3.08 3.88 10 Market Size 34 4.59 3.69 11 Business Sophistication 64 3.96 3.99 12 Innovation 82 3.01 3.36Apparently, the only competitive advantage Nigeria have isin Market Size which is partly due to her population size.The farther we are from the GAS the more precarious thatsector of the economy is; Infrastructure being the worst ofall requiring urgent attention.
  19. A realistic goal for Nigeria would be:- Strive to reach get those pillars with less than 3.5 score to 3.5 which is the average of the scale (1 – 7)- Next is to target the respective GAS value for each Pillar- Then we can decided to reach for higher marks3.5
  20. Data source:- The World Economic Forum https://www.weforum.org/- WEF_GlobalCompetitivenessReport_2011 - 2012Freely share, freely use and freely acknowledge thesource – © Wale Micaiah Analysis by: Wale Micaiah e: walegate@yahoo.com m: 08078001800 b: walemicaiah.blog.com w. www.statisense.info StatiSense ® - Wale Micaiah ©

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