CARIFORUM and UK EPA Study

APPENDIX II – THE GCI AND ITS SUITABILITY TO THE STUDY

As indicated by the Global Competitiveness Report 2020, the GCI can be used to guide policy makers. In particular, the report notes that looking at the score for individual countries has more utility as countries could gain or lose competitiveness at the same time. It assesses competitiveness over 12 broad pillars of competitiveness (see figure below). “It assesses the factors and institutions identified by empirical and theoretical research as determining improvements in productivity, which in turn is the main determinant of long-term growth and an essential factor in economic growth and prosperity. The Global Competitiveness Report hence seeks to help decision makers understand the complex and multifaceted nature of the development challenge…” (GCR, 2020). The GCI is also useful at identifying priorities, and the report notes that given that an economy cannot make sustained progress unless it advances “simultaneously on all pillars”. However given the limited resources of governments and the private sector they have to identity priorities. Analysing the trends in the Index is also useful, the report notes, as it will show which pillar is deteriorating, or which is falling behind the others, and also economies may be able to bench mark against an appropriate comparator economy and so gain insights as to the relevant pillars to address in order to achieve a similar level of performance (indicative).

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