Divisas

APPENDIX I methodology and principles of analysis

By Suzanne Rosselet-McCauley

What is the World Competitiveness Yearbook?
The IMD World Competitiveness Yearbook (WCY) is the world’s most thorough and comprehensive annual report on the competitiveness of nations, published without interruption since 1989. It is considered to be the fi rst access point to world competitiveness, providingobjective benchmarking and trends, as well as a worldwide reference point to statistics and opinion data that highlight the competitiveness of key economies. The WCY analyzes and ranks how nations and enterprises manage the totality of their competencies to achieve increased prosperity. An economy’s competitiveness cannot be reduced only to GDP and productivity because enterprises must also cope withpolitical, social and cultural dimensions.Therefore nations need to provide an environment that has the most efficient structure, institutions and policies that encourage the competitiveness of enterprises. This year, the WCY provides extensive coverage of 59 economies, all key players in world markets. In this 2011 edition, we have added the United Arab Emirates (UAE) as an additional country.All economies are chosen because of their impact on the global economy and the availability of comparable international statistics. Over 300 competitiveness criteria have been selected as a result of extensive research using economic literature, international, national and regional sources and feedback from the business community, government agencies and academics. The criteria are revised andupdated on a regular basis as new theory, research and data become available and as the global economy evolves. A long-established collaboration with our Partner Institutes worldwide also helps ensure that the data is reliable, accurate and as up-to-date as possible.This year, we have the privilege of collaborating with a unique network of 54 Partner Institutes.

Who uses the World CompetitivenessYearbook?
The WCY is an invaluable, dynamic and constantly updated benchmark for decision-makers. The business community uses it to help determine and validate investment plans and to assess locations for new operations. Governments fi nd important indicators to benchmark their policies against those of other countries, to evaluate performance over time and to learn from the “success stories” ofnations that have improved their competitiveness. The academic world also uses the exceptional wealth of data in the WCY to better understand and analyze how nations (and not only enterprises) compete in world markets.

TABLE 1

Competitiveness Factors
Macro-economic evaluation of the domestic economy: Domestic Economy, International Trade, International Investment, Employment and Prices. Extentto which government policies are conducive to competitiveness: Public Finance, Fiscal Policy, Institutional Framework, Business Legislation and Societal Framework. Extent to which the national environment encourages enterprises to perform in an innovative, profitable and responsible manner: Productivity and Efficiency, Labor Market, Finance, Management Practices and Attitudes and Values.Economic Performance (78 criteria)

Government Efficiency (71 criteria)

Business Efficiency

(68 criteria)

Infrastructure

(114 criteria) Extent to which basic, technological, scientific and human resources meet the needs of business: Basic Infrastructure,Technological Infrastructure, Scientific Infrastructure, Health and Environment and Education.

480

IMD WORLD COMPETITIVENESS YEARBOOK2011

How does the World Competitiveness Yearbook measure Competitiveness?
During the past two decades, the methodology to assess the competitiveness of nations has constantly been fine-tuned to take into account the evolution of the global environment and new research. In this way, the WCY keeps pace with structural changes in national environments and the rapidly changing technological...