Analysis of the World Economic Forum Global Competitiveness Report 2017/18 by Dr. Balraj Kistow, Lecturer and Programme Director at the Arthur Lok Jack Graduate School of Business

2. The Global Competitive Report
• Produced by the World Economic
Forum.
• Based on the Global Competitiveness
Index (GCI).
• Captures information on the micro and
macro economic foundations of
national competitiveness.

3. The Global Competitive Report
• Examines the many factors that enable national economies to
achieve sustained economic growth and long term prosperity.
• Provides business leaders and policymakers with benchmark
tools to identify obstacles to improved competitiveness.
• The idea is to stimulate discussion on strategies to improve
them.

4. Competitiveness
“
”
The set of institutions,
policies, and factors that
determine the level of
productivity of a country.

5. Effect of Productivity
Productivity
Higher
Income
The level of productivity, in turn, sets the level of prosperity
that can be earned by an economy.

6. Implied Framework
National
Competitiveness
Firm
Competitiveness
Enabling
Environment
Firms compete not
nations.
Government largely
responsible for the raw
conditions.

7. Why is it important?
Competitiveness is required for economic progress

8. More competitive economies grow faster

10. Classification

12. 1. Ranking is out of total participants.
2. A score from 1 – 7 - weighted average score from the 12
pillars of competitiveness.
3. Problematic factors for doing business.
The Results

13. Report Highlights
GCI 2017/18

15. Key Insight 1 – Ten years after the financial
crisis the financial sector is still vulnerable

16. Key Insight 2 – There needs to be no trade off
between labour market flexibility and workers rights

17. Country Analysis

18. Trinidad and Tobago
• Economy in transition - Stage 2 - 3
• GDP (US$ billions) - $21.6
• Per Capita Income $US - $15,342.2
(2015) - $18,085.8
(2014) - $21,311.0
(Source: IMF World Economic Outlook Database)

19. Weighs
2017 2016
Basic Requirements (Pillars 1 – 4) 24.1% 20%
Efficiency Enhancers (Pillars 5 – 10) 50.0% 50.0%
Innovation and Business Sophistication (Pillars 11 & 12) 25.9% 30%

20. Overall Rank

21. Web of Pillars
Trinidad and Tobago
is on par or better in
10 of the 12 pillars
when compared to
other countries in
Latin America and
the Caribbean.

22. Web of Pillars
2017 – 83/4.1 2016 – 94/3.9 2015 – 89/3.9

23. Sub-Indices & Pillars 2017 -2018 2016-2017 2015-2016
Rank Score Rank Score Rank Score
Basic Requirements 83 4.4 82 4.4 62 4.6
1st pillar: Institutions 97 3.5 107 3.4 108 3.4
2nd pillar: Infrastructure 59 4.3 54 4.3 51 4.5
3rd pillar: Macroeconomic environment 112 3.8 114 3.9 54 4.9
4th pillar: Health and primary education 60 5.9 61 5.9 60 5.9
Efficiency Enhancers 63 4.2 76 4.0 78 3.9
5th pillar: Higher education and training 33 5.1 74 4.3 73 4.3
6th pillar: Goods market efficiency 95 4.1 103 4.0 104 4.1
7th pillar: Labor market efficiency 85 4.0 89 4.0 96 4.0
8th pillar: Financial market development 51 4.2 61 4.1 56 4.0
9th pillar: Technological readiness 49 4.9 50 4.7 59 4.2
10th pillar: Market size 94 3.2 99 3.0 102 3.0
Innovation and Sophistication Factors 80 3.5 83 3.5 81 3.5
11th pillar: Business sophistication 65 4.1 67 3.9 68 3.9
12th pillar: Innovation 102 3.0 105 3.0 101 3.1

24. Getting from 94 to 83
94
(2016/17)
89
Change in weights
83 (2017/18)
Pillar 5 - Higher
Education and Training

26. Macroeconomic Environment 2017-2018 2016-2017 2015-2016 2014-2015
Value Rank Value Rank Value Rank Value Rank
Overall 3.8 112 3.9 114 4.9 54 38 5.4
Government surplus/deficit (% GDP) -14 132 -9.5 128 -4 92 -2.3 58
National savings rate (% GDP) 8.8 123 8.0 128 22.1 58 24.2 46
Inflation (annual % change) 3.4 59 4.7 96 7.0 118 5.2 93
Government debt (% GDP) 61.0 90 5.1 74 37.6 57 30.6 37
Country Credit Ratings (1 - 100 best) 61.0 49 49 63 46 64.7 42

27. Institutions 2017-2018 2016-2017 2015-2016 2014-2015
Rank Value Rank Value Rank Value Rank Value
Overall 97 3.5 107 4.3 108 3.4 3.5 95
1.01 Property rights 72 4.3 87 4.1 4 85 4.1 69
1.02 Intellectual property protection 88 3.7 98 3.6 3.4 99 3.2 94
1.03 Diversion of public funds 102 2.8 114 2.6 2.4 124 2.5 114
1.04 Public trust of politicians 111 2.1 118 1.9 1.8 128 2 123
1.05 Irregular Payment & Bribes 95 3.3 102 3.3 3.3 104 3.3 106
1.06 Judicial independence 47 4.5 55 4.2 4.3 51 4.6 41
1.07 Favoritism in decisions of government officials 120 2.2 134 1.9 1.9 137 2.1 137
1.08 Wastefulness of government spending 91 2.7 107 2.5 2.5 112 2.5 114
1.09 Burden of government regulation 73 3.3 87 3.2 3.3 77 3.5 70
1.10 Efficiency of legal framework in settling disputes 104 3.0 106 3.0 3.2 97 3.5 83
1.11 Efficiency of legal framework in challenging regs 93 2.9 95 3.0 3.1 94 3.1 90
1.12 Transparency of government policymaking 72 4.0 80 4.0 3.8 90 3.7 98
1.13 Business costs of terrorism 78 5.0 74 5.2 5.3 75 5.4 63
1.14 Business costs of crime and violence 129 2.7 132 2.5 2.4 136 2.3 141
1.14 Organized crime 114 3.9 116 3.8 3.9 117 4 112
1.16 Reliability of police services 124 2.9 126 2.8 3.1 116 3.1 117
1.17 Ethical behavior of firms 118 3.2 123 3.1 3.2 125 3.4 125
1.18 Strength of auditing and reporting standards 70 4.6 83 4.3 4.3 91 4.3 87
1.19 Efficacy of corporate boards 84 4.6 90 4.7 4.3 101 4.1 110
1.20 Protection of minority shareholders’ interests 95 3.8 111 3.6 3.4 118 3.5 116
1.21 Strength of Investor Protection 51 6.0 36 6.3 5.8 55 6.7 22

28. Innovation

30. JamaicaTrinidad and Tobago
Caribbean Comparison

31. JamaicaTrinidad and Tobago
Caribbean Comparison – Problematic Factors

32. Closing Statements
• To tackle the fundamental issues of our country requires an enabling
environment.
• This requires (inter alia) a reliable and predictable system –
processes, institutional functions, data and information.
• Competitiveness is the end result of a system that works to enhance
productivity.