Egypt fast-tracks recycling plant to turn Suez Canal into 'green canal'    Global pressure mounts on Israel as Gaza death toll surges, war deepens    Egypt targets 7.7% AI contribution to GDP by 2030: Communications Minister    Irrigation Minister highlights Egypt's water challenges, innovation efforts at DAAD centenary celebration    Egypt discusses strengthening agricultural ties, investment opportunities with Indian delegation    Al-Sisi welcomes Spain's monarch in historic first visit, with Gaza, regional peace in focus    Cairo governor briefs PM on Khan el-Khalili, Rameses Square development    El Gouna Film Festival's 8th edition to coincide with UN's 80th anniversary    Egypt expands medical, humanitarian support for Gaza patients    Egypt condemns Israeli offensive in Gaza City, warns of grave regional consequences    Cairo University, Roche Diagnostics inaugurate automated lab at Qasr El-Ainy    Egypt investigates disappearance of ancient bracelet from Egyptian Museum in Tahrir    Egypt launches international architecture academy with UNESCO, European partners    Egypt signs MoUs with 3 European universities to advance architecture, urban studies    Egypt's Sisi, Qatar's Emir condemn Israeli strikes, call for Gaza ceasefire    Egypt condemns terrorist attack in northwest Pakistan    Egyptian pound ends week lower against US dollar – CBE    Egypt hosts G20 meeting for 1st time outside member states    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Egypt seeks Indian expertise to boost pharmaceutical industry    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Stable competitiveness
Published in Al-Ahram Weekly on 04 - 10 - 2016

Egypt retained its ranking in the 2016-2017 World Economic Forum Global Competitiveness Index (GCI), placed at 115th out of 138 countries.
The country was ranked 116th out of 140 countries in last year's GCI. The slight advance this year does not necessarily reflect better performance as there were fewer countries represented in the 2016-2017 Index.
Guinea and Haiti are missing from this year's Index, both of them ranking lower than Egypt last year.
The Global Competitiveness Index is a yearly report that assesses the competitiveness of the world's economies and highlights their key strengths and weaknesses.
It does this by assessing 12 main “pillars,” including institutions, infrastructure, the 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.
This year's GCI shows that Egypt lags behind in the areas of goods, labour, and financial markets, on which the country ranks 112th, 135th, and 111th, respectively.
The GCI stresses the importance of addressing the rigidities that plague these areas, pointing also to weaknesses in higher education and training (112th), below the performance of peer economies, as well as the overall security situation (133rd), which remains fragile and imposes significant costs on business, it says.
“To create growth and employment, Egypt could build on its large market size (25th), its business sector, which by some accounts appears more sophisticated than those of neighbouring countries (85th), and its geographical proximity to the large European market,” the GCI says.
Policy instability, government instability, access to financing, foreign currency regulations, corruption and an inadequate supply of infrastructure are major hurdles to doing business in Egypt, the GCI says.
Policy instability was cited by 21 per cent of respondents as the most prominent obstacle to doing business in Egypt, followed by government instability at 12.5 per cent.
Egypt is also lagging behind other countries in the Middle East, with only Yemen ranking lower, while the United Arab Emirates, Qatar, and Saudi Arabia are the best performing countries in the region and among the GCI's top 30 countries.
The country is also performing badly compared to other economies at the same level of development, such as China, Thailand, Indonesia, Iran and Jordan.
Ahmed Galal, managing director of the Economic Research Forum (ERF), an NGO, said that the GCI was important because it showed Egypt's competitiveness ranking compared with other countries, stressing the importance of competitiveness to the economy.
“Competitiveness is our way to achieve efficiency and thus economic growth,” he said at a seminar organised by the Egyptian Centre for Economic Studies (ECES), a think tank, this week to announce the results of the GCI.
However, Galal criticised the GCI for highlighting weaknesses without offering solutions or means for improvement.
Abla Abdel-Latif, executive director of the ECES, also criticised the methodology of the GCI. Part of the findings is based on surveys of the country's private sector, she said, but the questions in the surveys were highly specialised and sometimes came with a limited choice of answers, leading to imprecise findings.
However, she stressed the importance of redressing the obstacles standing in the way of doing business in Egypt and focusing on reforms.
Galal said the only way that reform and development could take place was by creating a “political market” in which the whole of society could participate in a dialogue about reforms.
Ziad Bahaaeddin, former deputy prime minister and managing partner of Thebes Consultancy, a consulting firm, said the most important elements affecting a country's competitiveness were infrastructure and the legal system.
He said the problem in Egypt with regard to legal reforms was that the government had adopted a “quick-win” approach to reform that entailed finding quick solutions to economic problems in a way that had hindered Egypt's development over the last decade.
“This has blocked us from achieving the substantial reforms we need for the coming 40 years,” Bahaaeddin said.
Switzerland has been ranked as the most competitive economy in the world for eight years in a row in the GCI, followed by Singapore, the United States, the Netherlands and Germany.
Chad, Mauritania and Yemen have been ranked as the least competitive.


Clic here to read the story from its source.