Posts tagged ‘Competitiveness’

The Competitiveness Cycles

Competitiveness is a redundant idea, if we ignore cyclicality.

Competitiveness is a comparative concept of the ability and performance of a firm, sub-sector or country. It’s a ranking system based on a host of parameters. The Global competitiveness report 2009-2010 from the World Economic Forum measures competitiveness based on 12 pillars.

First is the Institution pillar, which aims at quantifying the direct role played by the state in the economy of many countries. The whole structure of competitiveness stands challenged now that the world faces sovereign risk. How can you rank a country in competitiveness if it is being bailed out? Or should we ask how competitive a country is to emerge out of a sovereign risk crisis? This is a question conventional knowledge can’t answer. Another pillar is the macroeconomic stability, which again the report says could be a double edged sword if interest rate payments and inflation rises? How competitive you are as a nation compared to others if global interest rates rise?

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Orpheus Research at Reuters - United Kingdom

Orpheus Research at Reuters - United States