The World Economic Forum (WEF) has published its 2013-2014 Global Competitiveness Report. You can find the report here in a number of languages. How did the Latin American region fare and why should we care? Let’s take a look at what “competitiveness” is and its relation to doing business.
The WEF explains:
We define competitiveness as the set of institutions,
policies, and factors that determine the level of
productivity of a country. The level of productivity, in
turn, sets the level of prosperity that can be earned by
an economy. The productivity level also determines the
rates of return obtained by investments in an economy,
which in turn are the fundamental drivers of its growth
rates. In other words, a more competitive economy is
one that is likely to sustain growth.
Competitiveness is based on a number of factors; economists have studied for hundreds of years what makes an economy able to foster growth and sustain it. The competitiveness landscape, as revealed in the WEF’s report, is important to business because it provides insight into what drives productivity and prosperity in 148 economies. It helps us understand how our investments will do and what we might want to look out for so we can mitigate against it. It tells us what challenges or “wins” we might expect when doing business in the studied economies.
In an upcoming blog post I will highlight the findings related to competitiveness in the Latin American region.
Enjoy the rest of the week!