Georgia Loses 8 Positions in Global Competitiveness Index
World Economic Forum (WEF) has published the 2017-2018 report for Global Competitiveness Index. The document explores competitive capacity of 137 countries and Georgia ranks 67th among them. According to the 2016-2017 report, Georgia ranked 59th, that is the country has lost 8 positions. Georgia’s total score has not changed and remains 4.3, but the country lost positions, because other countries improved their scores.
Global Competitiveness Index comprises more than 100 criteria and a major part of them has worsened in Georgia. The chart comprises the criteria that have considerably worsened or improved.
In general, Georgia is less competitive in terms of higher education, technologies, innovations and market size.
Georgia’s positions in the index criteria have worsened in most cases. At the same time, the country has improved several criteria anyway. For example, property rights – 46th position (3 positions lost); court independence – 87th position (24 positions lost); favoritism in government decisions – 57th place (12 positions lost); government transparency – 46th place (3 positions lost); balanced budget – 40th place (16 positions lost); government debt – 59th place (3 positions lost); initial education quality – 106th place (13 positions lost); level of taxes – 8th place (1 position improved); Inflation – 1 (+79); crediting rating – 81 (+2); internetization at public schools – 68 (+5); antitrust legislation – 112 (+2); workforce qualification – 125th place (unchanged).
As to Georgia’s total position, it should be noted that the country is demonstrating improvement tendencies since 2012. For example, our country ranked 88th in Global Competitiveness Index in 2011-2012, while the country advanced to the 59th place in the 2016 rating, but lost 8 positions in 2017.
According to the index, Georgia records the worst positions in the field of innovations and ranks 118th (down from 116th place of 2016). Low level of innovations is related to very low research indicator of companies (R&D), small amount of money spent by universities on research works and a small number of engineers and researchers in the country. Georgia’s rating score in the field of innovations is 2.8.
According to the WEF report, Georgia’s key challenge consists in strengthening institutions, improving education level and growing labor market efficiency.
It should be noted that, according to the WEF report, , unqualified workforce remains the key challenge for doing business in Georgia. Access to financial resources and inflation share second and third positions. (table 1)
According to the report, among 137 countries Switzerland, the USA, Singapore, Netherlands, Germany, Hong Kong and Sweden have the most competitive economies, while Yemen, Mozambique, Chad and Liberia have the least competitive economies.
World Economic Forum started publishing the global competitiveness index in 2005. The report considers the competitiveness as a combination of institutions, policy and other factors that determine the level of productivity of countries. And the level of productivity preconditions the level of profits raised from investments. This is a key driving force of economic growth. Therefore, the economy is considered to be competitive if it grows at high paces in the course of time.