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Global Essay

751 words - 4 pages

1. Among the twelve “pillars” of competitiveness, how can you explain the strengths and weaknesses of nations in the basic factor, efficiency, and innovation stages? Can you give an example of three nations, one in each stage, explaining the main factors relating to its’ competitiveness?

The factor-driven stage: Zimbabwe

Zimbabwe remains relatively stable at 131st position. Public institutions continue to receive a weak assessment, particularly related to corruption, security, and government favoritism偏袒, although overall the assessment of this pillar has improved somewhat since a few years ago. Yet major concerns remain with regard to the protection of property rights (137th), where ...view middle of the document...

On a more positive note, China’s macroeconomic situation remains favorable (10th). Inflation was back down to below 3 percent in 2012 (from 5.4 percent the previous year), the budget deficit is moderate中等, and China’s public debt-to-GDP ratio at 22.9 percent is among the lowest in the world, and the gross savings rate represents a staggering 50 percent of GDP. However, this rate is probably too high in light of the need for China to rebalance its economy away from investment and toward more consumption. Although China receives good marks in health and basic education (40th), the assessment is more negative when it comes to higher education (70th) because of China’s low tertiary education高等教育enrollment, the average quality of teaching, and an apparent disconnect between educational content and business needs (54th). Finally, China’s innovation capacity has been improving recently, but much remains done for it to become an innovation powerhouse.

The innovation driven stage: Germany

Germany moves up by two notches to 4th place this year. The country is ranked an excellent 3rd for the quality of its infrastructure, boasting in particular first-rate facilities across all modes of transport. The goods market is quite efficient and is characterized by intense local competition (10th) and low market dominance市场操纵by large companies (2nd). Germany’s business sector is very...

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