The Global Competitiveness Report 2019

The Global Competitiveness Report 2019

1. Institutions

   • The institutional environment of a country is relevant because it establishes legal (laws and enforcement or compliance) and informal (rules and behavior) restrictions. Institutions determine the context in which individuals organize in their economic activity. Institutions likewise, vary productivity, mainly, incentives and reduce uncertainty. have an impact impact on providing

2. Infrastructure

   • Areas with better geographic connections are generally more prosperous, because well-developed infrastructure lowers transportation costs, facilitates the movement of goods and people turnover, as well as the transfer of information within and outside a country. Likewise, guaranteeing access to energy, together with a well-developed infrastructure, are necessary for the progress of economic activities in modern times.

3. ICT adoption

   • Information and Communication Technologies (ICT) reduce transaction costs, accelerate the exchange of ideas and information, improving efficiency and the development of innovation. ICTs are used in a general way and are increasingly coupled to the structure of the economy. ICT includes access to and subscriptions to mobile phone and internet services. TIC

4. Economic stability

   • Macroeconomic stability is integrated by various concepts such as inflation and debt. In this way, moderate and predictable inflation, like sustainable public budgets, reduce uncertainty and set targets for expected investments and increase business confidence, boosting productivity.

5. Health

   • Healthier individuals have greater physical and mental capacities, and are more productive and creative, for this reason there is a tendency to invest more in education so that life expectancy increases. This is triggered in healthier children who will be adults with stronger cognitive abilities. This indicator uses adjusted life expectancy as the basis for its performance, which is the number of years that a newborn expects to live in good health.

6. Education and skills

   • Education comprises skills and competence in the workforce. The highly educated population is more productive, as they have greater collective skills to perform tasks and transfer knowledge quickly. This indicator examines the general level of workforce skills, quantity and quality of education.

7. Product market

   • It refers to the degree to which a country provides a level playing field for companies to participate in its markets. In this way, competition drives productivity gains by incentivizing companies to innovate, upgrade their products, services and organization, as well as provide the best possible products at the fairest prices.

8. Labour marke

   • Well-functioning labor markets promote productivity by linking workers to the most suitable jobs according to their skills and developing their talent to reach their full potential. By combining flexibility with the protection of basic workers' rights, labor markets allow countries to be more resilient to potential shocks and can reallocate production to emerging segments

9. Financial system

   • A developed financial sector fosters productivity in three ways: uniting savings with productive investments; improving capital allocation to the most promising investments through lender monitoring, reducing information asymmetries; and providing an efficient payment system. In turn, adequate regulation of financial institutions is needed to avoid a crisis in the sector that can cause lasting negative effects on investments and productivity.

10. Market size

    • Larger markets increase productivity through economies of scale, where the unit cost of production tends to decrease according to the volume of production, encouraging innovation. Furthermore, in large markets there are positive externalities, since the accumulation of human capital and the transmission of knowledge.

11. Business dynamism

    • An agile and dynamic private sector increases productivity when it comes to commercials, trying new ideas and creating innovative products and services. In an environment characterized by frequent disruption and redefinition of businesses and companies and sectors, successful economic systems are resilient to technological shocks and may constantly reinvent themselves. take risks

12. Innovation capability

    • The WEF notes that countries that can generate a greater accumulation of knowledge and offer better interdisciplinary skills are likely to generate innovative ideas and new business models, which are widely considered to be the engines of economic growth