The Global Competitive Report

• Produced by the World Economic Forum.

• Based on the Global Competitiveness Index (GCI).

• Captures information on the micro and macro economic foundations of national competitiveness.

The Global Competitive Report

• Examines the many factors that enable national economies to achieve sustained economic growth and long term prosperity.

• Provides business leaders and policymakers with benchmark tools to identify obstacles to improved competitiveness.

• The idea is to stimulate discussion on strategies to improve them.

Competitiveness

“

”

The set of institutions, policies, and factors that determine the level of productivity of a country.

Effect of Productivity

Productivity

Higher Income

The level of productivity, in turn, sets the level of prosperity that can be earned by an economy.

Implied Framework National

Competitiveness

Firm Competitiveness

Enabling Environment

Firms compete not nations.

Government largely responsible for the raw conditions.

Why is it important?Competitiveness is required for economic progress

More competitive economies grow faster

Classification

1. Ranking is out of total participants.

2. A score from 1 – 7 - weighted average score from the 12 pillars of competitiveness.

3. Problematic factors for doing business.

The Results

Report HighlightsGCI 2017/18

Key Insight 1 – Ten years after the financial crisis the financial sector is still vulnerable

Key Insight 2 – There needs to be no trade off between labour market flexibility and workers rights

Country Analysis

Trinidad and Tobago

• Economy in transition - Stage 2 - 3

• GDP (US$ billions) - $21.6

• Per Capita Income $US - $15,342.2 (2015) - $18,085.8(2014) - $21,311.0

(Source: IMF World Economic Outlook Database)

Weighs

2017 2016

Basic Requirements (Pillars 1 – 4) 24.1% 20%

Efficiency Enhancers (Pillars 5 – 10) 50.0% 50.0%

Innovation and Business Sophistication (Pillars 11 & 12) 25.9% 30%

Overall Rank

Web of Pillars

Trinidad and Tobago is on par or better in 10 of the 12 pillars when compared to other countries in Latin America and the Caribbean.

Web of Pillars

2017 – 83/4.1 2016 – 94/3.9 2015 – 89/3.9

Sub-Indices & Pillars 2017 -2018 2016-2017 2015-2016

Rank Score Rank Score Rank Score

Basic Requirements 83 4.4 82 4.4 62 4.6

1st pillar: Institutions 97 3.5 107 3.4 108 3.4

2nd pillar: Infrastructure 59 4.3 54 4.3 51 4.5

3rd pillar: Macroeconomic environment 112 3.8 114 3.9 54 4.9

4th pillar: Health and primary education 60 5.9 61 5.9 60 5.9

Efficiency Enhancers 63 4.2 76 4.0 78 3.9

5th pillar: Higher education and training 33 5.1 74 4.3 73 4.3

6th pillar: Goods market efficiency 95 4.1 103 4.0 104 4.1

7th pillar: Labor market efficiency 85 4.0 89 4.0 96 4.0

8th pillar: Financial market development 51 4.2 61 4.1 56 4.0

9th pillar: Technological readiness 49 4.9 50 4.7 59 4.2

10th pillar: Market size 94 3.2 99 3.0 102 3.0

Innovation and Sophistication Factors 80 3.5 83 3.5 81 3.5

11th pillar: Business sophistication 65 4.1 67 3.9 68 3.9

12th pillar: Innovation 102 3.0 105 3.0 101 3.1

Getting from 94 to 83

94(2016/17)

89

Change in weights

83 (2017/18)

Pillar 5 - Higher Education and Training

Macroeconomic Environment 2017-2018 2016-2017 2015-2016 2014-2015

Value Rank Value Rank Value Rank Value Rank

Overall 3.8 112 3.9 114 4.9 54 38 5.4

Government surplus/deficit (% GDP) -14 132 -9.5 128 -4 92 -2.3 58

National savings rate (% GDP) 8.8 123 8.0 128 22.1 58 24.2 46

Inflation (annual % change) 3.4 59 4.7 96 7.0 118 5.2 93

Government debt (% GDP) 61.0 90 5.1 74 37.6 57 30.6 37

Country Credit Ratings (1 - 100 best) 61.0 49 49 63 46 64.7 42

Institutions 2017-2018 2016-2017 2015-2016 2014-2015

Rank Value Rank Value Rank Value Rank Value

Overall 97 3.5 107 4.3 108 3.4 3.5 95

1.01 Property rights 72 4.3 87 4.1 4 85 4.1 69

1.02 Intellectual property protection 88 3.7 98 3.6 3.4 99 3.2 94

1.03 Diversion of public funds 102 2.8 114 2.6 2.4 124 2.5 114

1.04 Public trust of politicians 111 2.1 118 1.9 1.8 128 2 123

1.05 Irregular Payment & Bribes 95 3.3 102 3.3 3.3 104 3.3 106

1.06 Judicial independence 47 4.5 55 4.2 4.3 51 4.6 41

1.07 Favoritism in decisions of government officials 120 2.2 134 1.9 1.9 137 2.1 137

1.08 Wastefulness of government spending 91 2.7 107 2.5 2.5 112 2.5 114

1.09 Burden of government regulation 73 3.3 87 3.2 3.3 77 3.5 70

1.10 Efficiency of legal framework in settling disputes 104 3.0 106 3.0 3.2 97 3.5 83

1.11 Efficiency of legal framework in challenging regs 93 2.9 95 3.0 3.1 94 3.1 90

1.12 Transparency of government policymaking 72 4.0 80 4.0 3.8 90 3.7 98

1.13 Business costs of terrorism 78 5.0 74 5.2 5.3 75 5.4 63

1.14 Business costs of crime and violence 129 2.7 132 2.5 2.4 136 2.3 141

1.14 Organized crime 114 3.9 116 3.8 3.9 117 4 112

1.16 Reliability of police services 124 2.9 126 2.8 3.1 116 3.1 117

1.17 Ethical behavior of firms 118 3.2 123 3.1 3.2 125 3.4 125

1.18 Strength of auditing and reporting standards 70 4.6 83 4.3 4.3 91 4.3 87

1.19 Efficacy of corporate boards 84 4.6 90 4.7 4.3 101 4.1 110

1.20 Protection of minority shareholders’ interests 95 3.8 111 3.6 3.4 118 3.5 116

1.21 Strength of Investor Protection 51 6.0 36 6.3 5.8 55 6.7 22

Innovation

Jamaica Trinidad and Tobago

Caribbean Comparison

Jamaica Trinidad and Tobago

Caribbean Comparison – Problematic Factors

Closing Statements

• To tackle the fundamental issues of our country requires an enabling

environment.

• This requires (inter alia) a reliable and predictable system –

processes, institutional functions, data and information.

• Competitiveness is the end result of a system that works to enhance

productivity.