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Monthly Archive December 2016

Global Competitiveness – Basic Requirements – A case of Pakistan

As I have previously discussed the general structure of the Global competitiveness report in my earlier post  , Now I will focus on understanding what the WEF categorize as subindex ABasic Requirements” for an economy. These basic requirements are used to asses the competitiveness of  an economy against the other.  The Basic requirement area of an economy actually serves as a key , as WEF says, for a factor-driven economy. The pillars that collectively affect the performance level of a country in “Basic requirement” area are:

  • Institutions
  • Infrastructure
  • Macroeconomic environment
  • Health & Primary Education

Pakistan ranked on 122 out of 138 economies assessed for global competitiveness. However, for the 1st subindex of this, Basic requirement, Pakistan is ranked at 126. We score 3.5 for the basic requirements while the best performing economy scored 6.37 and the minimum score by any economy is 2.74 whereas the median score on this index is 3.91.

Pakistan, Institutions, Governance, Quality

WEF’s GCI basic Requirement – Pakistan

Institutions

Institutions as a whole are the center of daily public needs and interactions. Both private & public institutions plays a key role in competitiveness of an economy.  The governance/corporate framework under which an institution conducts its business and interact with the stakeholders determine the quality of institution and extent of the trust an investor can put in such institution. Therefor transparency in business of an institution, reporting standards of its accounts and annual reports are important to understand the administrative and governance environment of public and private institutions and thus service quality as compared to other countries. Now lets have a look on rank and score of our public and private institutions and try if you can find who are the related government departments and regulatory bodies responsible in these areas.

Institutions, Paksitan, Corruption, Yasir cheema

GCI 2016-17: Pakistan -1st Pillar of Basic Requirements.

Our Federal agencies like FIA & NAB are basically responsible to investigate and eliminate the corrupt practices at any level of the federal or provincial govts however, the very institutions have constantly failed to deliver the visible and effective progress in their job. All the public sector departments like Heath, Education, police, revenue, judiciary etc are itself responsible for their performance. Their performance and subsequently public trust in such institutions is important to step up our competitiveness against other economies. Such institution in any country play the key role in national development however we are still far behind from an effective performance in such institutions.

On the Private sector, mainly, SECP is the concerned Govt agency to regulate private business. Key corporate governance control rests with SECP whereas other regulatory bodies may exercise their jurisdiction depending on the business nature of the private sector.

These indexes as above are further subdivided to their lowest level of assessment. This will make it more easier to understand what matters and how much matters.

Institutions, Yasir Cheema, Pakistan.

GIC 2016-17: Substructure of 1st pillar

 Infrastructure 

Undoubtedly, Infrastructure and connectivity is vital to have vibrant economy. Rail/Road and digital connectivity is changing the ways of doing business and is improving the time required to do a business. we may have rail/road connectivity but its not working to such a level where we can say its an efficient communication network. Our cities are growing faster than our pace of improving the transportation and infrastructure facilities. Connectivity to telecom and power infrastructure is equally important for masses to contribute in national growth and development. Power crisis has caused significant loss in  industrial productions and thus causing unemployment and  reducing levels of prosperity. Here is how we rank and score against other economies in the world. Apparently in transport infrastructure we are much better than our performance in Electricity infrastructure.

Infrastructure, Pakistan, Yasir Cheema, Roads, Electricity, Quality, Governance

GCI 2016-17:  Pakistan -2nd Pillar of Basic Requirements.

Macroeconomic environment

Macroeconomic indicators covered in GIC report are those reflecting Govt’s management of revenue and spending.

Macroeconomics, GDP, Yasir Cheema, Pakistan

GCI 2016-17: 3rd pillar of Basic Requirement

Health & Primary Education

Just like other parameters, Health & primary education are further divided into sub categories for the assessment. Our Ranking and score in this important pillar is as below:

Health, Education Yasir Cheema Pakistan

GCI 2016-17: 4th Pillar of Basic Requirements

This concludes the subindex Basic Requirements in GCI. All these tables and data is taken from Global Competitiveness Report 2016-17  .