3. The World Economic Forum (WEF) The WEF is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape the global, regional and industry agendas. The WEF Forum is impartial and not-for-profit; it is tied to no political, partisan or national interests. The World Economic Forum is under the supervision of the Swiss Federal Government, Established in 1971 with its headquarters in Geneva, Switzerland, with offices in New York and Beijing. 3
4. Global Competitiveness Reports (GCR) Flagship product: The Global Competitiveness Report: Launched in 1979 covering 16 countries; it has since Expanded its coverage to 133 countries. Editor: Professor Klaus Schwab 1979 4
5. Global Competitiveness Reports (GCR) The GCR’s Goal is to provide a benchmarking tool for policy-makers and business leaders The Global Competitiveness Report assesses the ability of countries to provide high levels of prosperity to their citizens. This in turn depends on how productively a country uses available resources. Therefore, the Global Competitiveness Index measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity. 5
6. The Global Competitiveness Report (GCR) Data sources Use of hard data (publicly available information) and survey data (from the Executive Opinion Survey) TheExecutiveOpinion Survey records the perspectives of business leaders around the world; survey data is indispensable, particularly for dimensions where no reliable hard data sources exist 6
7. The Global Competitiveness Index (GCI) Definition: The Global Competitiveness Index (GCI) is a new, more comprehensive tool to assess competitiveness of nations. Developed for the World Economic Forum by Professor Xavier Sala-i-Martin of Columbia University, the new index extends and deepens the concepts and ideas underpinning the Growth Competitiveness Index formerly used by the Forum. Officially launched in September 2006 as part of The Global Competitiveness Report 2006-2007, the GCI has now become our main index of reference. 7
8. The Global Competitiveness Index (GCI) BASIC REQUIREMENTS The Framework12 Pillars of Competitiveness Basic Requirements (4) EFFICIENCY ENHANCERS Efficiency Enhancers (6) Innovation & Sophistications Factors (2) INNOVATION & SOPHISTICATIONS FACTORS 8
11. The Global Competitiveness Index 2009-2010 Qatar leads Middle east & South Africa leads Africa. Egypt ranked the 10th in Middle East, and the 4th in Africa. Regional View Improved than previous Year Worst than previous Year 11
12. Evolution of Egypt Overall Rankings Egypt ranked the 70th in 2009/2010, up 11 places from 2008/2009. Although the significant improvement in rankings, the index value witnessed a slight improvement. 12
25. The deterioration of national saving rate ranking reflects also declining gross domestic investment
26.
27. The size of the domestic market is calculated as the Sum of gross domestic product plus value of imports of goods and services, minus value of exports of goods and services.
28. The size of the foreign market is estimated based on the total value of exports of goods and Services.
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30. Inflexible hiring and firing procedures keep the country’s many unemployed young people.
35. Most problematic factors for Egyptian Competitiveness 23 The challenges, are numerous. The labor market continues to be over-regulated, which diminishes its efficiency. Although some progress has been achieved, the persisting labor market rigidities are particularly worrisome. Inflexible hiring and firing procedures keep the country’s many unemployed young people, a large number of whom are well educated, from entering the formal labor market, raising the risk of a degradation of human capital, brain drain from the country (123rd), and potentially causing social problems. Also, the participation of women in the labor force continues to be low (127th), despite some progress achieved in the context of a government program.
36. Most problematic factors for Egyptian Competitiveness 24 Egypt continues to struggle with serious challenges related to macroeconomic stability (120th). Although government debt has been reduced somewhat (from 105.8 percent of GDP in 2007 to 85.9 in 2008), the budget deficit and inflation continue to rise. The budget deficit has reached 6.8 percent of GDP (in 2008, 128th position), and inflation is also among the highest in the world at 11.7 (in 2008, 101st). Furthermore, Egypt’s banking system continues to lack trustworthiness and solidity, as reflected in the 107th position in the rankings.
