Apr 10, 2016 News
The World Economic Forum (WEF), in its Global Competitiveness Report 2015-2016, has listed inefficient government bureaucracy – the failure of an organization to complete the work that it exists to perform – as the most problematic factor for doing business in Guyana.
Corruption has been listed as the second factor, followed by Access to Financing at third, with Crime and Theft appearing fourth on the list.
Other problematic factors listed were, tax rates; inadequate supply of infrastructure; policy instability; poor work ethic in labour force; poor public health; inadequately educated workforce; government instability; insufficient capacity to innovate; restrictive labour regulations; complexity of tax regulations; foreign currency regulations; and inflation respectively.
Zooming in on corruption
One can say that corruption over the years in Guyana, has somewhat changed the way of life of the Guyanese people. While some would have given blood, sweat and tears to fight this “malignant” virus, others are – or have chosen, to remain ignorant to the fact that it exists.
It also plays a direct role in affecting everyone and everything around us.
It also has an effect on Guyana’s ranking on the Global Competitiveness Index.
Guyana’s rankings on the Global Competitiveness Index
The Global Competitiveness Report 2015-2016 assesses the competitiveness landscape of 140 economies, providing insight into the drivers of their productivity and prosperity. The report series remains the most comprehensive assessment of national competitiveness worldwide.
In economics, competition is the rivalry among sellers trying to increase profits, amongst other aspects and is highly regarded – in the world of economics, as the driver behind businesses.
An economy that increases its ability to compete; gives wings to aspects that are proven to be beneficial to any country’s growth – the more a country competes, the more avenues are expanded; growth speeds up.
If the ability to compete is limited, the process of national development goes into turtle-mode.
Guyana currently ranks 121 out of 140 economies analysed.
While 2015 saw Guyana being ranked 117 out of 144 economies analysed, to make comparisons, would be seen as unfair.
Nevertheless, many have articulated that Guyana’s position is indeed worrying.
The 12 pillars
The WEF’s Global Competitiveness Report outlines “12 pillars” that are the core of its analysis. These pillars 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.
The report then further drills down to examine data within each pillar – for example, within the “Institutions,” pillars are measures including the burden of government regulation; business costs of crime and violence; reliability of police services; protection of minority shareholders’ interests; and property rights.
The values of measures are on a 1-to-7 scale while the ranking of those same measure, are on a one-to-the number of countries analysed, in this case – 140 (being the lowest).
For example, the value of reliability of police services in Guyana is currently – on a scale from 1 to 7, 2.8 with a ranking of 129 out of 140.
Favouritism in decisions of government officials stands at 2.7, 104. Guyana’s “Wastefulness of Government Spending” is currently valued at 3.1 with a ranking of 73 out of 140.
Transparency of Government Policy making in Guyana has been ranked as 102 with a value of 3.7.
Under the pillar of infrastructure, one of the measures, “the quality of overall infrastructure” within the state currently weighs in at 3.6 with a ranking of 94.
The quality of the education system has scored 3.9 which ranks 59 out of the 140 countries assessed.
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