Ghana ranks 114th in WEF’s Competitiveness Index, but cited for government efficiency
Ghana is ranked at 114th on the World Economic Forum’s (WEF) Global Competitiveness Index report for the year 2010 to 2011. The first report was released in 1979.
The country has been cited for its strong public institutions and relatively high government efficiency.
The Index is an annual report released by WEF when world leaders and top executives of multi-national companies meet to discuss the world economy.
For more than three decades, the World Economic Forum’s annual competitiveness reports have examined the many factors enabling national economies to achieve sustained economic growth and long-term prosperity, the WEF says.
Since 2005, the World Economic Forum has based its competitiveness analysis on the Global Competitiveness Index (GCI), a highly comprehensive index for measuring national competitiveness, which captures the microeconomic and macroeconomic foundations of national competitiveness.
It adds, “We define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country. The level of productivity, in turn, sets the sustainable level of prosperity that can be earned by an economy. In other words, more competitive economies tend to be able to produce higher levels of income for their citizens. The productivity level also determines the rates of return obtained by investments (physical, human, and technological) in an economy. Because the rates of return are the fundamental drivers of the growth rates of the economy, a more competitive economy is one that is likely to grow faster in the medium to long run.”
The report said “Ghana is ranked 114th this year, the same position as last year, although gaining four positions in a constant sample.”
“Ghana continues to display strong public institutions and governance indicators with relatively high government efficiency, particularly by regional standards”, the report said.
Some African countries ahead of Ghana in the report are Tanzania, Cameroon, Kenya, Senegal and Benin.
According to the report some aspects of the country’s infrastructure are good by regional standards, particularly with the ports which Ghana was ranked 59th.
The country’s financial markets (ranked 60th), according to the report, are also relatively well developed.
Ghana, however didn’t do well in sectors like education, labour markets, ICT and macroeconomic instability, just as it did last year.
“On the other hand, education levels continue to lag behind international standards at all levels, labor markets continue to be characterized by inefficiencies, and the country is not harnessing new technologies for productivity enhancements (ICT adoption rates are very low)”, the report said adding “The country is characterized by macroeconomic instability, with the government running high fiscal deficits and building up significant debt, and with high interest rate spreads pointing to inefficiencies in the financial system.”
The Global Competitiveness Index contributes to the understanding of the key factors determining economic growth, helps to explain why some countries are more successful than others in raising income levels and opportunities for their respective populations, and offers policymakers and business leaders an important tool in the formulation of improved economic policies and institutional reforms.
This year’s report featured a record number of 139 economies, and thus continues to be the most comprehensive assessment of its kind.
The report is also based on 12 criteria in areas of institutions, infrastructure, macroeconomic environment as well as health and primary education.
By Ekow Quandzie