[PDF] The Global Competitiveness Report 2006–2007

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World Economic Forum

Geneva, Switzerland 2006

Professor Klaus Schwab

World Economic Forum

Professor Michael E. Porter

Harvard University

Co-Directors, The Global Competitiveness Report

Dr Augusto Lopez-Claros

Director, Global Competitiveness Programme, World Economic Forum

Editor

The Global

Competitiveness

Report 2006-2007

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The Global Competitiveness Report 2006-2007

is published by the World Economic Forum within the framework of the Global

Competitiveness Programme.

Professor Klaus Schwab

Executive Chairman

Augusto Lopez-Claros

Director

Laura Altinger

Jennifer Blanke

Ciara Browne

Margareta Drzeniek

Thierry Geiger

Kerry Jaggi

Emma Loades

Irene Mia

Aviva Rajczyk

Special thanks to Mario Blejer, Richard Cooper,

Peter Heller, Daniel Kaufmann, Richard Layard,

Kenneth Rogoff, Xavier Sala-i-Martin, and

Beatrice Weder for their valuable advice,

support, and collaboration.

We thank AmadeaEditing and Hope Steele for

their superb editing work and Ha Nguyen for her excellent graphic design and layout. We are very grateful to Nathali Glanzmann, Tamara

Gomes, Johannah Lanitis, Miguel Perez, Pearl

Samandari, and Shubhra Saxena for their

invaluable research assistance.

The terms

countryand nationas used in this report do not in all cases refer to a territorial entity that is a state as understood by interna- tional law and practice. The term covers well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis.Copyright © 2006by the World Economic Forum

All rights reserved. No reproduction, copy

or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court

Road, London W1T 4LP.

Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright,

Designs and Patents Act 1988.

First published 2006 by

PALGRAVE MACMILLAN

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175 Fifth Avenue, New York, N. Y. 10010

Companies and representatives throughout the world. PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin's Press, LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries.

ISBN-13: 978-1-4039-9636-7

ISBN-10: 1-4039-9636-9

This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. A catalogue record for this book is available from the Library of

Congress.

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Printed and bound in Great Britain by

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Partner Institutesv

Prefacexi

by Klaus Schwab

Executive Summaryxiii

by Augusto Lopez-Claros

Part 1: The Competitiveness Indexes1

1.1 The Global Competitiveness Index: Identifying 3

the Key Elements of Sustainable Growth by Augusto Lopez-Claros, Laura Altinger, Jennifer Blanke,

Margareta Drzeniek, and Irene Mia

1.2 The Microeconomic Foundations of Prosperity: 51

Findings from the Business Competitiveness Index

by Michael E. Porter, Christian Ketels, and Mercedes Delgado

Part 2: Selected Issues of Competitiveness 81

2.1 The US Current Account Deficit and its Global 83

Ramifications

World Economic Forum Chief Economist Augusto Lopez-Claros talks to Richard Cooper and Kenneth Rogoff

2.2 Looking Under Every Stone: Transparency 95

International and the Fight Against Corruption

by Juanita Olaya

2.3 Economic Growth, Employment, Competitiveness, 105

and Labor Market Institutions by Peter Auer and Rizwanul Islam

2.4 Are China and India Performing Well Relative 117

to their Competitive Potential? by Yasheng Huang

Part 3: Country/Economy Profiles 123

and Data Presentation

3.1 The Executive Opinion Survey: Gauging the 125

Business Climate

by Thierry Geiger and Emma Loades

3.2 Country/Economy Profiles137

How Country/Economy Profiles Work............................................139 List of Countries/Economies ..........................................................141 Country/Economy Profiles..............................................................142

3.3 Data Tables393

How Data Tables Work...................................................................395 Index of Tables ........................................................................ .......397 Data Tables........................................................................ .............399 Appendix: The Growth Competitiveness Index 2006-2007 553

Technical Notes and Sources565

About the Authors567

Acknowledgments570

Contents

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Albania

Institute for Contemporary Studies (ISB)

Artan Hoxha, President

Ilir Ciko, Researcher

Julia Dhimitri, Researcher

Algeria

Centre de Recherche en Economie Appliquée pour le

Développement (CREAD)

Professor Yassine Ferfera, Director

Youcef Benabdallah, Assistant Professor

Angola

Serviços de Organização e Finanças (SOF)

Marcolino Meireles, Manager

Argentina

IAE - Universidad Austral

Marcelo Paladino, Vice Dean

Ariel A. Casarin, Assistant Professor

Armenia

Economy and Values Research Center

Manuk Hergnyan, Chairman

Sevak Hovhannisyan, Senior Research Associate

Anna Makaryan, Research Analyst

Australia

Australian Industry Group

Heather Ridout, Chief Executive, Australian Industry Group Tony Pensabene, Associate Director - Economics & Research

Austria

Austrian Institute of Economic Research (WIFO)

Professor Karl Aiginger, Director

Gerhard Schwarz, Coordinator, Survey Department

Azerbaijan

Azerbaijan Marketing Society

Sanar Mammadov, Executive Director

Ashraf Hajiyev, Project Coordinator

Saida Mammadova, Consultant

Bahrain

Bahrain Competitiveness Council

Sulaf Zakharia, Secretary-General

Barbados

Arthur Lewis Institute for Social and Economic Studies, University of

West Indies (UWI)

Andrew Downes

Bangladesh

Centre for Policy Dialogue (CPD)

Dr Debapriya Bhattacharya, Executive Director

Professor Mustafizur Rahman, Research Director

Dr Khondaker Golam Moazzem, Research Fellow BelgiumVlerick Leuven Gent Management SchoolProfessor Dr Lutgart Van den Berghe, Executive Director; Chairman,

Competence Centre Entrepreneurship, Governance and Strategy Professor Dr Harry P. Bowen, Economics and International Business Benin Micro Impacts of Macroeconomic Adjustment Policies (MIMAP) Benin

Epiphane Adjovi, Business Coordinator

Maria-Odile Attanasso, Deputy Coordinator

Cosme Vodounou, Head, Department of Thematic Studies

Damien Mededji, Researcher

Bosnia and Herzegovina

MIT Center - The Faculty of Economics, Sarajevo University

Professor Zlatko Lagumdzija

Dr Fikret Causevic

Dr Zeljko Sain

Botswana

Botswana Institute for Development Policy Analysis (BIDPA)

Dr N.H. Fidzani, Executive Director

Kedikilwe P. Maroba, Programme Coordinator

Brazil

Fundação Dom Cabral

Professor Carlos Arruda, Associate Dean for Research and

Development

Rafael Tello, Researcher

Diogo Lara, Research Assistant

Movimento Brasil Competitivo (MBC)

José Fernando Mattos, President

Claudio Leite Gastal, Director

Jorge H. S. Lima, Project Coordinator

Bulgaria

Center for Economic Development

Anelia Damianova, Senior Expert

Burkina Faso

SERF (Société d'Etudes et de Recherche Formation pour le

Developpement)

Abdoulaye Tarnagda, Director General

Burundi

CURDES (Center of Scientific Research in Economics)

Pascal Rutake, Dean, Economics

Ferdinand Bararuzunza, Professor, Economics

Cambodia

Economic Institute of Cambodia

Sok Hach, Director

Chan Vuthy, Researcher

Tuy Chak Riya, Research Associate

Cameroon

Comité de Compétitivité (Competitiveness Committee)

Lucien Sanzouango, Permanent Secretary

v

Partner Institutes

Partner Institutes

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Canada

Institute for Competitiveness and Prosperity

Roger Martin, Dean of the Rotman School of Management, University of Toronto and Chairman of the Institute for

Competitiveness and Prosperity

James Milway, Executive Director of the Institute for

Competitiveness and Prosperity

Chad Groupe de Recherches Alternatives et de Monitoring du Projet

Pétrole-Tchad-Cameroun (GRAMP-TC)

Professor Gilbert Maoundonodji, Director

Lydie Beassemda, Program officer

Yode Miangotar, Researcher

Chile Universidad Adolfo Ibáñez - School of Government

Andres Allamand, Dean

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