egypt in gcr; 10-11 - 18092010

Egypt in The Global Competitiveness Report 2010-

2011

Egypt RankingsSeptember 2010

Cairo1

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Introduction

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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.

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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

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79

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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.

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Use of hard data (publicly available information) and survey data

(from the Executive Opinion Survey)

The Executive Opinion Survey records the perspectives of business

leaders around the world; survey data is indispensable, particularly for

dimensions where no reliable hard data sources exist

The Global Competitiveness Report (GCR)

Data sources

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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 the most

recognized index of reference for competitiveness.

The Global Competitiveness Index (GCI)

Definition:

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BASIC REQUIREMENTS

EFFICIENCY ENHANCERS

INNOVATION & SOPHISTICATIONS FACTORS

The Global Competitiveness Index (GCI)

Th

e F

ram

ew

ork

12 P

illars

of

Com

peti

tiveness

•Institutions

•Infrastructure

•Macroeconomic stability

•Health and primary education

Key forfactor-driven

economies

•Higher education and training

•Goods market efficiency

•Labor market efficiency

•Financial market sophistication

•Technological Readiness

•Market size

Key forefficiency-driven

economies

•Business sophistication

•Innovation

Key forinnovation-driven

economies

Basic Requirements(4)

Efficiency Enhancers(6)

Innovation & Sophistications Factors(2)

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Egypt Rankings in GCR

Performance and trend

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The Global Competitiveness Index 2010-2011

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The Global Competitiveness Index 2010-2011

Reg

ion

al

Vie

w

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2010-2011 2009–2010 2008–2009 2007-2008

Score 4 4.04 4 3.96

Rank 81 70 81 77

Out of 139 133 134 131

Evolution of Egypt Overall Rankings

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Benchmarking Egypt Performance; 2010-2011

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• Qatar Tops Arab Countries

• South Africa Tops African Countries

• Tunisia Tops North African Countries

Click Here to View Full

Benchmarking with 14

selected countries

Score (out of 7)


http://megaswf.com/serve/47354/

Evolution of Egypt Rankings in GCI Pillars

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• Best Performance:

• Market Size

• Worst Performance:

• Labor Market Efficiency

• Top Improvement:

• Business Sophistication

• Most Deterioration:

• Higher Education and Training

• Innovation

• Infrastructure

• Macroeconomic Stability

•Straight Improvement:

•Financial Market Sophistication

•Straight Deterioration

•Institutions

Ranking out 0f 130+ countries


Evolution of Egypt Rankings in GCI Pillars

15ImprovementDeterioration

Rank movement


Market Size

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• Sheer Market Size is Egypt’s main competitive strengths, which allows businesses to exploit economies of scale

• Although remaining the overall rank, Egypt lost ranking in the two sub-indices of this pillar

• 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

• The size of the foreign market is estimated based on the total value of exports of goods and Services


* Lower Ranking Reflects Improved Performance


Labor market efficiency

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• The labor market continues to be overregulated, which reduces its ability to property allocate and employ human

• The biggest loss came at the labor-employer relation ranking

• Worst performance areas include female participation in labor force, and the redundancy (firing) cost

• Although better ranking, Egypt still face high risk of a degradation of human capital, brain drain from the country (123rd), potentially causing social problems



Business Sophistication

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• Business sophistication concerns the quality of a country’s overall business networks as well as the quality of individual firms’ operations and strategies

• Best performance is for the nature of competitive advantage, followed the quantity of local suppliers

• However, the quality of local suppliers is ranked the worst just and only better than the control of international distribution



Higher education and training

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• Best performance is for the availability of research of training services

• Worst performance is for the overall quality of educational system.

• All areas except the availability, witnessed deterioration versus last year

• The most deteriorated area is the secondary education enrollment rate (data from UNESCO)



Innovation

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• Best performance is for the availability of scientists and engineers, and it’s also the only area the witnessed improved ranking than previous year

• Worst performance is for the university-industry collaboration in R&D, and this refers to the issue of isolated academic organizations in Egypt



Infrastructure

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• 2010-2011 report included additional ranking for Mobile telephone subscriptions and Egypt ranked 102/139

• The only area that had a significant improvement is quality of air transport

• The worst performance is for telephone lines ranking, and it’s also the most deteriorated area



Institutions

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• 2010-2011 report included four more rankings:

• Irregular payments and bribes (64)

• Efficiency of legal framework in settling disputes (40)

• Efficiency of legal framework in challenging regulations (69)

• Strength of investor protection (59)

• Egypt best performance is the insignificance of organized crime

• While worst performance is for costs imposed by terrorism on operating businesses




Macroeconomic stability

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• Government debt has been reduced following the favorable trend of previous years• budget deficit

remained stable, at and improved rankings reflect again minor effects of the global crises• However, Egypt

continues to struggle with serious challenges

• inflation came as Egypt worst performance in this pillar

• The deterioration of national saving rate ranking continued for the third consecutive year



Most problematic factors for doing business in Egypt

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% of Respondents

• Survey of business executives

• From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.


Reform PrioritiesWorst Ranked Factors

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Critical Issues:Require Urgent Reforms

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Ranking out 0f 139 countries


Critical Issues:Require Urgent Reforms

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Ranking out 0f 139 countries


All Data in this presentation from:

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Fore more updates and coverage on Egypt Rankings Go To:



egypt in gcr; 10-11 - 18092010

Documents

growth competitiveness

competitiveness of nations

new index

world survey data

ability of countries

selected countries

benchmarking egypt performance

recognized index of