Pakistan at 115, Improves Seven Ranks on the World Economic Forum’s Global Competitiveness Report 2017-2018

Pakistan at 115, Improves Seven Ranks on the World Economic Forum’s Global Competitiveness Report 2017-2018

Pakistan improves seven ranks on the Global Competitiveness Index of the World Economic Forum. For the ninth consecutive year, Switzerland ranks as the most competitive economy in the world, United States and Singapore ranks at second and third respectively.

Pakistan's Performance on Global Competitiveness Index 2017-2018 of World Economic Forum - 27-09-2017

Islamabad/Geneva, Switzerland, 27 September 2017 – Pakistan has shown impressive performance and extraordinary recovery on key competitiveness indicators. The country has been successful in strengthening and improving its institutions and macroeconomic framework, showing stability and improvements to its global competitiveness footing.

The report is an annual assessment of the factors driving countries’ productivity and prosperity. the World Economic Forum defines competitiveness as the set of institutions, policies and factors that determine the level of productivity of a country, GCI scores are calculated by drawing together country-level data covering 12 categories – the pillars of competitiveness – that collectively make up a comprehensive picture of a country’s competitiveness.

Drawing on data going back 10 years, the report highlights in particular three areas of greatest concern. These include the financial system, where levels of “soundness” have yet to recover from the shock of 2007 and in some parts of the world are declining further. This is especially of concern given the important role the financial system will need to play in facilitating investment in innovation related to the Fourth Industrial Revolution.

Pakistan’s ranking at 115 is measured by the twelve pillars of Competitiveness. On the institutions pillar, Pakistan improved 21 ranks and stands at 90 from 111 last year. Infrastructure improved from 116 to 110, on the Macroeconomic Stability Pillar Pakistan improved 10 ranks and stands at 106.

On other pillars, among 137 countries, Pakistan ranks at Health and Primary Education 129, losing one rank from last year, Higher Education and Training improved from 123 to 120, Goods Market Efficiency 107, Labour Market Efficiency 128, Financial Market Development jumped from 107 to 96, Technological Readiness 111. Maintaining the regional competitiveness edge Pakistan ranks at 28 on the pillar of Market Size. Also showing sustained improvements on Business Sophistication the rank changed from 95 last year to 81 in 2017, while on the Innovation pillar an impressive improvement of 15 points now places Pakistan at 60 rank on the global competitiveness index. 

Amir Jahangir, Chief Executive Officer of Mishal Pakistan, the Country Partner Institute of the Global Competitiveness andBenchmarking Network of the World Economic Forum said, “Pakistan is classified as a factor driven economy, which primarily depends on improving its institutions, infrastructure, macroeconomic stability, health and primary education indicators. Pakistan has managed to resist the global crisis and has shown resilience for economic recovery. Globally countries that are competitive have shown resilience to crisis. However, the reforms agenda still remains an unfinished business”. He further said, “this year the Report also shows performance of the political government and its ability and understanding to address the competitiveness challenges.”  He also said, “the country needs to concentrate on its primary health and education to benefit from the demographic dividend it offers”. With the convergence of data and policy, Pakistan has huge potential to make an impact of globally policy making for sustainable development initiatives.

This year among 114 global competitiveness indicators, Pakistan showed improvements on 82 key indices, whereas on 20 indices the country lost its previous position. While on 12 indices Pakistan, retained its position as last year.

Competitiveness has improved across most countries in South Asia, in particular in the two Himalayan countries of Bhutan (82nd, up 15) and Nepal (88th, up 10). On a similarly positive trend, Pakistan (115th, up seven) and Bangladesh (99th, up seven) have both improved their scores across all pillars of competitiveness. Both India (40^th, down one) and Sri Lanka (85^th, down 14 ranks) had corruption and inefficient government bureaucracy as key factors for hindering progress. Upgrading ICT infrastructure and increasing ICT use remain among the biggest challenges for the region: over the past decade, South Asia has been the area where technological readiness stagnated the most.

The analysis from Mishal, the country partner institute for Pakistan also shows performance of some of the key regulatory bodies and other government institutions, which have shown progress as well. Among 138 countries the institutions are ranked as following: Intellectual Property Organization (97), Judicial Independence (80), Police Services (116), Auditor General of Pakistan Revenues (110), National Highways Authority (76), Pakistan Railways (52), Civil Aviation Authority (91), NEPRA (115), Higher Education Commission of Pakistan (116), National Vocational and Technical Training Commission (99), Competition Commission of Pakistan (70), Pakistan Customs (93), State Bank of Pakistan among other 138 Central Banks at (89), Securities and Exchange Commission of Pakistan at (91) and Trade Development Authority of Pakistan (135).

The Global Competitiveness Report 2017-2018 also identifies Corruption as the most problematic factor for doing business in Pakistan, followed by tax rates, government instability/coups and crime and thefts. 

To improve the soft-data on Pakistan, the World Economic Forum worked closely with Mishal Pakistan, the country partner institute of the Global Competitiveness and Benchmarking Network of WEF. This year a total of 526 respondents from the business community were reached out through the annual Executive Opinion Survey, whereas 236 were selected from last year and 290 from this year. The World Economic Forum reached out to more than 12,000 business leaders globally. This year Pakistan had the third largest sample size in the world after China and Mexico.

“Global competitiveness will be more and more defined by the innovative capacity of a country. Talents will become increasingly more important than capital and therefore the world is moving from the age of capitalism into the age of talentism. Countries preparing for the Fourth Industrial Revolution and simultaneously strengthening their political, economic and social systems will be the winners in the competitive race of the future,” said Klaus Schwab, Founder and Executive Chairman, World Economic Forum.

Another key finding is that competitiveness is enhanced, not weakened, by combining degrees of flexibility within the labour force with adequate protection of workers’ rights. With vast numbers of jobs set to be disrupted as a result of automation and robotization, creating conditions that can withstand economic shock and support workers through transition periods will be vital.

The Report states that, “Despite positive development, leaders are facing major predicaments when it comes to economic policy. Uneven distribution of the benefits of economic progress, generational divides, rising income inequality in advanced economies, and increasing environmental degradation have heightened the sense that the economic policies of past years have not served citizens or society well. Coupled with growth rates that remain below historical levels, these quandaries put many prevalent models of economic growth and related policies into question. Major technological disruption and the new fault lines emerging in the global economic and political order add further uncertainty about the types of policies that will make economies future-proof. Taken together, all of these factors are challenging decision makers to find new approaches and policies to advance economic progress.”

The report also highlights on why quantitative easing and other monetary policy measures have been insufficient in reigniting long-term growth for the world’s advanced economies. The report finds that interventions by economies with comparatively low GCI scores failed to generate the same effect as those performed in economies with high scores, suggesting that strong underlying competitiveness is a key requirement for successful monetary stimulus.

The report offers insight into how priorities may be shifting for nations in earlier stages of development. While basic drivers of competitiveness such as infrastructure, health, education and well-functioning markets will always be important, data in the GCI suggests that a nation’s performance in terms of technological readiness, business sophistication and innovation is now as important in driving competitiveness and growth.

The Global Competitiveness Report’s competitiveness ranking is based on the Global Competitiveness Index (GCI), which was introduced by the World Economic Forum in 2005. The 12 pillars of Competitiveness are: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.

Key Findings:

• TEN YEARS AFTER THE CRISIS, THE FINANCIAL SECTOR IS STILL VULNERABLE 

• MORE COUNTRIES ARE ABLE TO INNOVATE, BUT THEY MUST DO MORE TO SPREAD THE BENEFITS

• THERE NEED BE NO TRADE-OFF BETWEEN LABOR MARKET FLEXIBILITY AND WORKERS’ RIGHTS

• Access full report, infographics, videos and more visit: weforum.org

IGNITE National Technology Fund to Contribute to Pakistan Foresight Initiative

IGNITE National Technology Fund to Contribute to Pakistan Foresight Initiative

 

Strategic Partnership between AGAHI and IGNITE on Futures Research and Development to cultivate the dynamics around the Fourth Industrial Revolution.

Puruesh Chaudhary, Founder-President AGAHI and Yusuf Hussain, Chief Executive Officer Ignite Sign a Memorandum of Understanding on Futures Research and Development in Pakistan.

Islamabad, August 23, 2017 – AGAHI a not-for-profit organization and the country partner of the Millennium-Project, a Global Futures Studies & Research participatory think-tank, came into mutual agreement collaborating on foresight research and development by signing a memorandum of understanding with IGNITE National Technology Fund (formerly National ICT R&D Fund Company) to spadework Pakistan’s future to lead the Fourth Industrial revolution focusing on technologies and on the ecosystem of development initiatives to fulfill its of fostering a knowledge economy in Pakistan. In a statement, Ms. Ansha Rahman Khan, Minister of State for Information Technology & Telecom said, ‘this is a critical partnership which will position Pakistan globally in terms of research and development of information communication technology sector in the country’.

The mission of AGAHI is to advance the horizon of Pakistan’s future by establishing Foresight Lab that would be responsible to generate and disseminate cutting-edge knowledge for the benefit of students, of industry, of policymakers, academia and of society. Yusuf Hussain, CEO Ignite said, AGAHI will facilitate the team by identifying emerging trends, opportunities, in developing skills and the curriculum; This strategic partnership will not only strengthen the existing programmes but will also work towards increasing awareness on the Fourth Industrial Revolution in Pakistan, one by creating a taskforce on this significant transition and two by developing a National Strategy paper on the Future of Work. The MoU signing ceremony was convened at the premises of IGNITE in Islamabad. The strategic linkage between the two organizations will provide opportunities to shape institutional transformation and thought leaders to complement the traditional department-based structures with trans-disciplinary knowledge capital, focused on identifying societal challenges and their long-term solutions.

Speaking on the occasion, co-founder Foresight Lab and Chairman, CEO Interactive Group of Companies Dr. Shahid Mahmud stressed on "how in the age of consciousness there is a dire need to develop a deeper sense of how the non-state actors in an environment where the 4^th wave is imminent will be shaping the digital, biological and physical dimensions of futures research".   

Pakistan Foresight Initiative is designed to enable decision-makers to opt for data-driven foresight approach in the policy domain. This Initiative is led by a collaborative-network of academia, think tanks, experts and professionals along with a wider community contributing to futures knowledge. Puruesh Chaudhary, the Founder and President of AGAHI country partner of the Millennium Project said, ‘this partnership with Ignite reinforces our belief in a much promising future of the country; where we’ll be encouraging not only our collaborative-network but also the global community to harness a future that ensures the happiness of the humanity’. Also present at the meeting, Ms. Farzana Yaqoob President Asia Public Policy Institute; and member Policy Network of the Foresight Lab.

The collaboration will also further, amplify the engagement of all relevant stakeholders in foresight activities to help promote broad social debates and formation of futures research programs pertinent to Pakistan’s Foresight initiative, leading to an improved understanding on the paradigm of Fourth Industrial Revolution and how it will shape the futures discourse. AGAHI with its local partners Interactive Group of Companies and Eikon7 along with other leading academic institutions are creating a model that will have the ability to track expected state of the future over time at national, provincial and district levels – that will enable decision-makers to opt for the most informed policy choice. Foresight Lab a facilitative platform engaging 20 different Pakistani universities and think tanks on developing Pakistan State of Future Index ‘Anticipating 2027’, with an aim to improve the wellbeing of the people of Pakistan.

Amir Jahangir, CEO Mishal Pakistan, Partner Institute of the World Economic Forum explained how different indicators from the work that the Forum does contribute to systems and processes globally which enhances the ability of the decision-makers in different countries; this influence is driven by intensely accumulated data insights from over a 130 different nations, Pakistan needs to leverage from such a powerful community in order to improve the quality of life of the people in the country.  The Fourth Industrial Revolution, or 4IR, is the fourth major industrial era since the initial Industrial Revolution of the 18th century. The Fourth Industrial Revolution can be described as a range of new technologies that are fusing the physical, digital and biological worlds, and impacting all disciplines, economies and industries. Founder and Chairman of the World Economic Forum, Prof. Klaus Schwab has associated it with the "second machine age" in terms of the effects of digitization and Artificial Intelligence (AI) on the economy, but added a broader role for advances in biological technologies.

AGAHI is a not for profit organization established in Islamabad in 2011 under the Society Registration Act 1860. Its primary function is to create non-paid communication strategies, content intelligence structures, development collaterals and tools for diverse sectors and organizations. AGAHI encourages and advises individuals and institutions in pursuing and supporting initiatives to improve the state of development in Pakistan. It works on developmental frameworks facilitating information and knowledge sharing platforms on understanding challenges in global perspective. Its research work mainly focuses on national and international security, ICT, competitiveness, human security, and governance. AGAHI in association with several leading national and international partners focuses on creating shared spaces for interactive learning, collaborative thinking, and knowledge sharing. It is at the forefront of devising foresight research and future scenarios work in Pakistan. AGAHI works with highly motivated and qualified professionals who have substantial experience in learning and leadership development.

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