Nation bumped to No. 15 by Qatar on WEF Global Competitiveness Report
Report cites politics, gov’t red tape and lack of capacity to innovate
Taiwan fell by one spot to No. 15 on the World Economic Forum’s (WEF) Global Competitiveness Report 2015-2016, which was released yesterday.
Political instability, government bureaucracy and insufficient capacity to innovate were the top three factors that led to Taiwan’s drop in ranking, according to the report. On the bright side, Taiwan’s competitiveness shines through in its low crime and theft rate, public health and low inflation.
National Development Council (NDC, ) Minister Duh Tyzzjiun ( ) cited two factors that resulted in Taiwan’s lowered ranking — lack of enough scientists and engineers and the poor extent of marketing venues for Taiwanese corporations overseas. Both are valid reflections of Taiwan’s concerns of a brain-drain and lack of global competitiveness in recent years.
Taiwan’s Global Competitiveness Index (GCI), which is what the WEF report’s ranking is based on, shows Taiwan’s basic requirement index at No. 14, efficiency enhancers at No. 15, and innovation and sophistication factors at No. 16 in the rankings among countries.
Under the three indexes are 12 categories that are used to calculate each country’s GCI scores, otherwise known as the pillars of competitiveness. Under basic requirements, Taiwan’s first pillar, institutions, ranked at No. 22; the second pillar, infrastructure, at No. 12; the third pillar, macroeconomic environment, at No. 13; and the fourth pillar, health and primary education, placed No. 14 in the rankings among countries.
Under efficiency enhancers, the fifth pillar on higher education and training, Taiwan ranked at No. 14; the six pillar, goods market efficiency at No. 13, the seventh pillar labor market efficiency at No. 22, the eighth pillar, financial market development, at No. 17; the ninth pillar, technological readiness, at No. 28; and the 10th pillar, market size, placed at No. 20 in the rankings. Under innovation and sophistication factors, the 11th pillar, business sophistication, ranked at No. 21, while the 12th pillar, innovation, ranked No. 11 among countries.
Taiwan came in first place worldwide in its HIV prevention efforts and low inflation rate. What was notable is the improvement in ranking in HIV prevention — Taiwan was ranked No. 58 among countries last year. In labor market efficiency, Taiwan’s pay and productivity ranked 9th. Transparency of government policymaking fell to 15 from its previous 9th place.
According to the GCI rankings, Switzerland takes first place again for the seventh consecutive year. Singapore remained in second place and the United States, third. Germany improved by one place to fourth, followed by the Netherlands making a comeback to fifth place. Japan came in sixth, Hong Kong in seventh, Finland in eighth, making this year its worst ranking ever, and Sweden at ninth. The United Kingdom rounded up the top 10.
Norway came in at 11th, Denmark at 12th, Canada at 13th, and Qatar replaced Taiwan’s 2015 ranking at 14. Mainland China ranked 28th, the same as last year.