Georgia Improves Global Competitiveness Index by 11 Notches
31 January, 2013
Georgia Improves Global Competitiveness Index by 11 Notches
Georgia climbed 11 notches up in the World Economic Forum’s (WEF) 2012-2013 Global Competitiveness Report (GCR). Some economic analysts believe it is a significant achievement for Georgia, while others appear skeptical toward the rating.
With an overall score of 4.1 out of possible 7, Georgia moved to the 77th position out of 144 economies and was transferred to Stage 2, falling into the group of efficiency-driven countries.
Since 1979, the WEF GCR has benchmarked the business environment and competitiveness landscape
of most of the world’s major economies. Georgia has been included in the GCR since 2004.
Data for the GCR originates from the Executive Opinion Survey of small, medium and large businesses across various sectors in each economy (2/3 of the indicators) as well as from International Organizations (1/3 of indicators). The report contains three main stages of country development: factor-driven, efficiency-driven and innovation-driven. There are also intermediary transition stages.
In the latest report, there are 38 stage-1 or factor-driven economies, which mainly compete with their factor endowments—primarily low-skilled labor and natural resources. At this stage, competitiveness hinges primarily on well-functioning public and private institutions, a well-developed infrastructure, a stable macroeconomic environment, and a healthy workforce that has received at least basic education. Georgia left this stage by the latest report and moved on to the efficiency-driven group of economies incorporating 33 economies now.
Stage 2 means that economies begin to develop more efficient production processes and increase product quality. At this point, competitiveness is increasingly driven by higher education and training, efficient goods markets, well-functioning labor markets, developed financial markets, the ability to harness the benefits of existing technologies, and a large domestic or foreign market.
The GCR is based on the Global Competitiveness Index (GCI) - a weighted average of 111 indicators, which are assigned across 12 pillars, and weighted based on a country’s development status. These pillars comprise: government institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.
In the 2012-2013 report of GCR, Georgia registered improvements in 6 of the 12 pillars. Georgia gained most in the “macroeconomic environment” pillar, where it jumped 49 places to the 88th spot from last year’s the137th.
In the “infrastructure” pillar, the country improved its ranking by 15 places to the 53rd, based on a significant improvement in the number of mobile telephone subscribers and fixed telephone lines. “Health and primary education” moved up 6 places to 61st position and “financial market development”, up 6 places to the 93rd position. Georgia showed good performance on “technological readiness” moving up 24 places to 76th position and for “market size,” up 7 places to the 99th position.
The three categories where Georgia slid back were in “goods market efficiency,” where it fell 10 places to the 82nd, though the country has shown some positive indicators in relation to trade barriers and the burden of customs procedures. In “innovation” the rank declined by 8 places to the 126th, and in “higher education and training” 5 places to the 93rd.
Though Georgia showed a minimal decline in the rank of “labor market efficiency”, “business sophistication”, and “institutions”, the report indicates that country has failed to come up with effective regulations on property rights and intellectual property protection, where the country lost its position of the 105th to the 126th.
According to the report, the greatest challenges facing Georgia in improving its competitiveness are strengthening government institutions, enhancing quality of higher education, and advancing efficiency and equality on the labor market. Property rights [physical as well as intellectual], limited access to financial service and monopolized market still remains the problem to Georgia making vital obstacles to business development. For now government plans to establish new competition agency (EU recommendation) and situation is supposed to improve in this direction. Gross national savings are minimal in the country. Local suppliers are very few and quality is very low either.
As for Georgia’s neighboring countries, Turkey with a rank of 43rd and Azerbaijan of 46th made important strides this year in improving competitiveness, as did Armenia with the rank of 82nd, while the Russian Federation fell one point to take 67th position. Turkey was identified as having the most competitive economy in Southeast Europe.
Demur Giorkhelidze, an economic analyst, is skeptical toward any kind of ranking like GCI that rather misleads investors than gives trustful clues.
“How could Georgia with its stagnated economy get promoted in the ranking by 11 notches?” Giorkhelidze wonders. “This is a humbug.”
Irakli Lekvinadze, an economic analyst, argues that the GCI is one of the most trustful indices and depicts the real economic picture of rated countries and investors do have much belief in it.
“This improved rating in GCI is a real achievement as this index makes a comprehensive picture of the country. Of course investors do their own research to make final decision but this here rating gives a very trustful information on the overall political, economic, legislative, and technological development of the country,” he said.
Print
Other Stories
The most wanted fruits from Georgia
The fruit exportation has decreased in Georgia. According to Geostat (National Statistics Office of Georgia), this year, up until May Georgia exported 25 939 300 USD worth of fruit – 6 771 300 USD less than in 2018.
Investment Plan for Europe – Additional EUR 800 million for SMEs as EIF and ProCredit double support for innovative companies
The European Investment Fund (EIF) and ProCredit Group are providing an additional EUR 800 million to innovative small and medium-sized companies (SMEs),
Everything of comfortable life in one space – Second part of construction of one of the largest apartment complexes finished in Tbilisi
Apartment in ecologically clean environment, thousands of square meters of green yard, swimming pools, places for various sports activities, treks for walking and running, commercial spaces – all these available in one space is not a fantasy.
Batumi awarded Europe's Leading Emerging Tourism Destination 2019
World Travel Awards Europe Gala Ceremony 2019 took place on the 8th of June in Madeira, Portugal.
Coca Cola to open new factory in Georgia, will hire female drivers
Coca Cola is opening new factory in Georgia in December.
World's best party supply company now on the Georgian market
The largest party supply store in Georgia - MyDay is launching as the official distributor of AMSCAN from 2019.
Live as a marketing tool and an unprecedented live stream launched by Livetag
Sharing information has become smoother and more versatile in today’s technological world. Recently, live streaming, an online streaming media has become especially popular.
Theme and program of Caspian Energy Forum Tbilisi – 2019 changed
“The 8th International Caspian Energy Forum Tbilisi – 2019, scheduled for June 21, will focus on the development of the Azerbaijan-Georgia relations in the field of economy and energy”,
Misunderstanding over Poti deep sea ports
There was misunderstanding around deep sea ports in Georgia – in Poti.
High demand for dollars or the investment decline – Why Georgian Lari depreciates
$1 equals GEL 2,7470 in the official rate set by the National Bank of Georgia (NBG).
PSP Group confirms negotiations regarding purchasing of GEO Hospitals
PSP Group confirms negotiations regarding purchasing of GEO Hospitals.
New life to be given to Dashbashi Canyon
Georgia’s Agency of Protected Areas is planning to give new life to Dashbashi Canyon in Tsalka (southeastern Georgia).
Who is constructing “Khadori 3” Hydropower Plant in Pankisi Gorge?
Clashes broke out in Pankisi Gorge, Georgia’s northeastern region between special forces and residents
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
20.07.2019
21.07.2019
USD
1
USD
2.8845
2.8845
EUR
1
EUR
3.2410
3.2410
GBP
1
GBP
3.6177
3.6177
RUB
100
RUB
4.5787
4.5787
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.8845
EUR
1
EUR
3.2410
GBP
1
GBP
3.6177
RUB
100
RUB
4.5787
July 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31