Global Economic Vitality
Decoding the Competitiveness Index: An analytical deep dive into the factors shaping national economic performance and global standing.
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Report Overview
The WEF Report
The Global Competitiveness Report (GCR) was an annual publication by the World Economic Forum (WEF) (opens in new tab). Between 2004 and 2020, it ranked nations using the Global Competitiveness Index (GCI), a comprehensive framework assessing the drivers of national productivity and long-term economic growth.
Purpose of the Index
The GCI aimed to measure the "ability of countries to provide high levels of prosperity to their citizens." This capability is intrinsically linked to how productively a nation utilizes its available resources. The index integrated macroeconomic stability, microeconomic foundations, and the institutional and policy environments that foster sustainable economic performance.
Discontinuation
The report and its associated index were discontinued in 2020. The WEF has since shifted its focus to other initiatives and reports, though the methodologies and findings of the GCR continue to inform discussions on global economic competitiveness.
Methodology & Metrics
Index Composition
The GCI was built upon over 110 variables, drawing data from two primary sources: the Executive Opinion Survey (EOS), representing the perspectives of business leaders, and publicly available data from international organizations like the United Nations.
Index Development
The GCI framework was developed by economists Xavier Sala-i-Martin and Elsa V. Artadi, integrating macroeconomic factors (previously measured by Sachs' Growth Development Index) and micro/business competitiveness factors (based on Porter's Business Competitiveness Index). This holistic approach aimed to provide a single, unified measure of national competitiveness.
The 12 Pillars of Competitiveness
Core Pillars
The GCI framework is structured around twelve key pillars, each representing a critical determinant of a nation's economic competitiveness:
Stages of Development
Factor-Driven Economies
In this initial stage, countries rely on basic endowments like unskilled labor and natural resources. Competitiveness hinges on foundational elements: strong institutions, adequate infrastructure, macroeconomic stability, and basic health and education.
Efficiency-Driven Economies
As economies develop, they must improve efficiency in production and product quality. Competitiveness shifts towards higher education, efficient goods and labor markets, developed financial systems, technology adoption, and market size.
Innovation-Driven Economies
At the highest stage, sustained prosperity depends on producing unique, differentiated goods and services through sophisticated processes and innovation. Pillars related to business sophistication and innovation become paramount, carrying greater weight in the overall score.
Pillar weights are adjusted based on a country's per capita income, reflecting the varying importance of these factors across different development levels.
2019 Global Competitiveness Rankings
Top Performers
The 2019 report highlighted significant variations in global competitiveness. Singapore led the rankings, followed closely by the United States and Hong Kong. The index reflects a complex interplay of institutional quality, technological readiness, and human capital development.
| Rank | Country | Score |
|---|---|---|
 1 |
 Singapore |
84.8 |
 2 |
 United States |
83.7 |
| 3 |
 Hong Kong |
83.1 |
| 4 |
 Netherlands |
82.4 |
| 5 |
 Switzerland |
82.3 |
| 6 |
 Japan |
82.3 |
| 7 |
 Germany |
81.8 |
| 8 |
 Sweden |
81.2 |
| 9 |
 United Kingdom |
81.2 |
 10 |
 Denmark |
81.2 |
| 11 |
 Finland |
80.2 |
| 12 |
 Taiwan |
80.2 |
| 13 |
 South Korea |
79.6 |
| 14 |
 Canada |
79.6 |
| 15 |
 France |
78.8 |
| 16 |
 Australia |
78.7 |
| 17 |
 Norway |
78.1 |
| 18 |
 Luxembourg |
77.0 |
| 19 |
 New Zealand |
76.7 |
| 20 |
 Israel |
76.7 |
| 21 |
 Austria |
76.6 |
| 22 |
 Belgium |
76.4 |
| 23 |
 Spain |
75.3 |
| 24 |
 Ireland |
75.1 |
| 25 |
 United Arab Emirates |
75.0 |
| 26 |
 Iceland |
74.7 |
| 27 |
 Malaysia |
74.6 |
| 28 |
 China |
73.9 |
| 29 |
 Qatar |
72.9 |
| 30 |
 Italy |
71.5 |
| 31 |
 Estonia |
70.9 |
| 32 |
 Czech Republic |
70.9 |
| 33 |
 Chile |
70.5 |
| 34 |
 Portugal |
70.4 |
| 35 |
 Slovenia |
70.2 |
| 36 |
 Saudi Arabia |
70.0 |
| 37 |
 Poland |
68.9 |
| 38 |
 Malta |
68.5 |
| 39 |
 Lithuania |
68.4 |
| 40 |
 Thailand |
68.1 |
| 41 |
 Latvia |
67.0 |
| 42 |
 Slovakia |
66.8 |
| 43 |
 Russia |
66.7 |
| 44 |
 Cyprus |
66.4 |
| 45 |
 Bahrain |
65.4 |
| 46 |
 Kuwait |
65.1 |
| 47 |
 Hungary |
65.1 |
| 48 |
 Mexico |
64.9 |
| 49 |
 Bulgaria |
64.9 |
| 50 |
 Indonesia |
64.6 |
Report Limitations
Environmental Oversight
Despite the WEF's own Global Risks Report increasingly identifying environmental pressures as dominant global risks, the GCI methodology historically excluded environmental dimensions from its core competitiveness ranking. While the 2018 and 2019 reports used the ecological footprint as a contextual indicator, it was not integrated into the scoring algorithm, potentially limiting a holistic view of sustainable development.
Allegations of Manipulation
Political Influence Claims
In 2025, reports emerged alleging that WEF leader Klaus Schwab intervened in the GCR process for political motives. These reports suggested that unfavorable rankings for certain countries, particularly in the Middle East, North Africa, and India, were altered or suppressed. Such allegations, if substantiated, would raise significant questions about the objectivity and reliability of the index's historical data.
This information highlights the importance of critically evaluating data sources and potential biases.
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References
References
- "Sala-i-Martin, Xavier and Elsa V. Artadi, "The Global Competitiveness Index", Global Competitiveness Report, Global Economic Forum 2004
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Disclaimer
Important Notice
This page was generated by an Artificial Intelligence and is intended for informational and educational purposes only. The content is derived from a snapshot of publicly available data and may not be entirely accurate, complete, or up-to-date, especially concerning the report's discontinuation and alleged manipulation.
This is not financial or economic advice. The information provided is not a substitute for professional economic analysis, consultation, or due diligence. Always consult with qualified economic advisors and refer to official sources for critical decision-making.
The creators of this page are not responsible for any errors or omissions, or for any actions taken based on the information provided herein.