1. DEVELOPING
COMPETITIVENESS
INDICATORS FOR EMERGING
ECONOMIES
BY:
CONRAD SEBEGO(MANAGER: BENCHMARKING &
INNOVATION)
NICKOLAOS GAVALETAKIS (ECONOMICS RESEARCHER)

2. PRESENTATION
OUTLINE
Why?
Objectives of study
Scope of research
Proposed approach
Expected outcomes
Way-forward suggestions
Concluding remarks

3. WHY?
Current World Competitiveness Indicators insufficient
in reflecting the true economic prosperity of developing
economies
 Developing economies not ranked fairly
by current measure
 The current criteria used to rank developing
economies are based on the economic
prosperity of developed economies
 There should be a separate ranking based on
the economic prosperity of developing economies
 Economic prosperity of SA and other developing economies
should be evaluated in relation to the achievement
of the MDG’s set by UN

4. WHY?

The current indicators are not feasible to
indicate true potential + represent the inadequacies
of developing economies
 Inadequacies including lack of infrastructure,
ICT’s etc. of emerging economies ranked
i.t.o circumstances prevailing in developed
economies
 Main shortcoming: Ranking i.t.o developed
countries and no comparison with other
developing economies to provide accurate
representation of true potential of such
economies and benchmarking these with
regard to economies of similar
inadequacies + experiences.

5. OBJECTIVES OF STUDY
 Framework to access development +
economic growth to eradicate poverty
of emerging economies
 Review existing indicators for suitability
+ appropriateness
 Evaluate approaches for economic
development specifically for the needs
of SA
 Examine MDG’S and outcomes

6. SCOPE OF THE RESEARCH
 Examine the factors + criteria that are
considered by IMD for assessing
competitiveness of nations
i.e. World Competitiveness Report
 Examine the programmes to be implemented by
government for assessing the competitiveness +
economic growth of South Africa
 Examine World Development Report +
African Development Report + NEPAD
 Examine link of MDG’s to poverty measure to
be implemented by Stats SA

7. Principle s o f Wo rld Co m pe titive ne ss
 Economic performance
 Government efficiency
 Business efficiency
 Infrastructure

8. We akne sse s in Eco no m ic pe rfo rm ance
Unemployment rate (61)
Employment (60)
Youth unemployment (50)
Trade to GDP ratio (47)
GDP per capita (45)

9. We akne sse s in G o ve rnm e nt Efficie ncy
Discrimination- race, gender (61)
Immigration laws (58)
Personal security and private property (55)
Labour regulations -hiring/firing practices +
minimum wages etc. (53)
Investment incentives (51)

10. We akne sse s in Busine ss Efficie ncy
Skilled labor readily available (61)
Brain drain (61)
Labour force (59)
Finance skills readily available (54)
Labor relations are generally
productive (54)
Sub-factor Breakdown: Productivity +
Efficiency (56)

11. We akne sse s in Infrastructure
 Life expectancy at birth (61)
 Internet costs - Cost of 20 hours dial up p/m (61)
 Health problems -AIDS, alcohol, drug abuse etc (61)
 Energy intensity (60)
 Human Development Index (58)

12. Challe ng e s ide ntifie d by IMD Study in 20 0 6
 Stabilize the exchange rate
 Invest in new technology to improve
imports of consumer goods
 Augment infrastructure investment,
planning + competition to reduce
commuter transport
 Amend competition / industrial policies
to enhance consumer/service industries
+ competitiveness
 Enhance regulations for SMEE’s to
 Increase their growth and employment
Improve education, industrial skills +
commuter transport

13. Pro g ram m e s link to IMD Study
 Raise the rate of investment in 1st
economy (51)
 Reduce the cost of doing business
 To speed up process of skills
development (61)
 To improve health profile of the nation
as a whole (61)
 To improve the safety + security of all
citizens + communities
To implement additional measures to
open wider the doors of learning
+ culture (61)

14. PROPOSEDAPPROACH
 Feedback, ideas + suggestions on Executive
Summary of Indicators
 Form working groups to investigate +
report back on MDG’s + targets
 Investigate buy-in from relevant stakeholders,
civil society, government departments + business
 MOU with stakeholders
 Steering committee formed from
organisations involved to overlook task
assigned to each

15. EXPECTEDOUTCOMES

Benchmark competitiveness indicators
for developing economies to assess development
+ growth to eradicate poverty
 Benchmarking improvements +shortcomings
in achieving MDG’s by 2014
 Improvise realistic targets on infrastructure
development for developing economies
 Policy + advocacy of benchmark indicators
by government – link with Poverty measure
 Initiate benchmark indicators for buy-in from other
developing economies to follow +implement

16. State of the Nation Address +Budget Speech
 10th
Anniversary of Freedom
“ None of the great social problems we have to solve is
capable of resolution outside the context of jobs and the
alleviation
and eradication of poverty. ”
 “ the struggle to eradicate poverty has been and will continue to
be a central part of the national effort to build the new South
Africa.”
 Trevor Manuel = “budget surplus in the coming fiscal year. The
fiscal stance creates space for our future social security reforms
and
allows for rising funding levels for public sector infrastructure,
improvements to education and other government priorities,
while enhancing the competitiveness of the economy and
sustaining
the current growth trajectory.”

17. State of the Nation Address +Budget Speech

“ … working with various governments, including a visit to countries such as
Tunisia and Chile where great progress has been made in dealing with
poverty,
does point to some defects in our systems in this regard. From experience
of
delegation it is clear among other things :
 Define clearly the poverty matrix of our country
 Develop a proper database of household living in
poverty
 Identify and implement specific interventions relevant to these
households
 Monitor progress in these households as the programmes take effect in
graduating them out of poverty
In this context, address all indigence, especially the high numbers of
woman effected
 Co-ordinate and align all anti-poverty programmes to maximize impact
+avoid wastage and duplication “

18. Achie ving ASG ISAinitiative s
ide ntifie d as targ e ts fo r 20 0 7
 Increase export goods + services
 Accelerate investment in areas of comparative
advantage
 Raise levels of productivity
 Generate jobs for low skilled workers
 Red tape = business constraints
 Infrastructure capacity enhanced for
telecommunications +rails +roads +
ports +electricity + water
 Improve public sector = state tool
for reconstruction and development

19. WAY-FORWARD
• Refine role and contribution of the
external Contributors
• Formalise the relationship between NPI
and Contributors to the research study
• Incorporate new thoughts about formulation of
concept and definition of the scope
• Develop a project plan, with clear milestones,
budget, roles and responsibilities
• Establish and agree on feedback + progress
review mechanisms

20. CONCLUDING REMARKS
 Beneficial for benchmarking SA to
developing economies
 Indicators improve efficiency + effective
implementation of MDG’s
 Future : Establish a broad based benchmark for
developing economies
 Competitiveness and Productivity to eradicate poverty
 Stimulate growth + sustainable development
+ better quality of life for all
 Form foundation for greater attention
achieving MDG’s

21. END!
Thank you for your
attention!