Tuesday, October 28, 2008

How Competitive is SA?



The World Economic Forum (WEF) released their Global Competitiveness Report 2008-2009 last week and SA is ranked fourth in terms of our financing through local equity markets and fifth in terms of our regulation of securities exchanges.

Here is what Klaus Schwab, the Executive Chairman, says in the preface:

"This year’s Global Competitiveness Report is being released at a time of multiple shocks to the global economy. The subprime mortgage crisis and the ensuing credit crunch, combined with rising inflation worldwide and the consequent slowdown in demand in many advanced economies, has engendered significant uncertainty about the short-term outlook for the world economy. Global growth is slowing, and it is not yet clear when the effects of the present crisis will subside."

The Report measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity.
So how did South Africa fare? We slipped one place from 44 last year to 45 this year, while we were ranked 35 two years ago.

The most problematic factor for doing business in SA not crime and theft as many would have assumed, but rather an inadequately educated workforce.


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