World Economic Forum
Competitiveness Indicators
and Policy Actions
Aleksandra Zoric Krzic
USAID Serbia
Analyzing Serbia:
WB Doing Business Report:
rank 94 among 181 countries
major weaknesses:
- Dealing with Construction Permits (171)
- Starting / closing a business
- Paying taxes
- Registering property
- Enforcing contracts
- Employing workers
WEF Glob. Comp. Report:
rank 85 among 132 countries
….will be discussed further
The most problematic factors for doing business WEF GCR
2008-2009
2007-2008
Serbia comparing to average
of countries at the second stage of development
Innovation &
Sophistication
Efficiency Enhancers
Basic
Requirements
In numbers….
Progress against last year
(6 positions up)
45 positions up
SERBIA
2008-2009
2007-2008
Rank
Score
Absolute
Change (Score)
Rank
Score
GLOBAL COMPETITIVE INDEX
85
3.9
0.1
91
3.8
BASIC REQUIREMENTS
88
4.1
-0.1
78
4.2
1st Pillar: Institutions
108
3.4
--
99
3.4
2nd Pillar: Infrastructure
102
2.7
--
92
2.7
3d Pillar: Macroeconomic Stability
86
4.7
0.1
88
4.6
4th Pillar: Health and Primary
Education
46
5.8
-0.2
31
6.0
EFFICIENCY ENHANCERS
78
3.8
0.2
88
3.6
5th Pillar: Higher Education and
Training
70
3.9
0.2
82
3.7
6th Pillar: Goods market Efficiency
115
3.7
0.2
114
3.5
7th Pillar: Labor Market Efficiency
66
4.4
0.5
111
3.9
8th Pillar: Financial Market
Sophistication
89
3.9
0.2
98
3.7
9th Pillar: Technological Readiness
61
3.5
0.2
57
3.3
10th Pillar: Market Size
65
3.6
0.4
75
3.2
INNOVATION AND
SOPHISTICATION FACTORS
91
3.3
--
88
3.3
11th Pillar: Business Sophistication
100
3.5
--
95
3.5
12th Pillar: Innovation
70
3.1
--
78
3.1
The USAID Competitiveness Project support
- Financed WEF and WB Indicator Analysis by a local Think Tank
“International Competitiveness and Economic Growth of Serbia” by CEVES
- Advised on the new Structure of the NCC
- Policy assistance / Drafted Action Plan 2009
-----------------------------------------------------------------------------------------------------------
- Request for STTA to assist with implementation
Serbia NCC:
• Reestablished late 2007
(in 2002 failed)
• Currently 32 members
(Government members mostly)
• 5 Working Groups
(inefficient)
• No clear agenda
General recommendations:
1. Reduce the size of the NCC
- max 20-22 members, less Gov. members
- invite top leaders and decision makers
2. Formalize a NCC Secretariat
3. Redesign the Working Groups
(to respond to policy priorities)
4. Set clear goals
5. Monitor performance
(based on WEF and WB indicators)
Policy Priority Areas:
1. Public Administration
2. Micro-Econ. Environment
3. Educational Reform
4. Energy Efficiency
5. Infrastructure Development
Recommendations for Policy Priorities by Working Groups:
1. Public Administration
4. Energy
Burden of Gov. Regulations
Extent of staff training*
Effectiveness of Antimonopoly Policy**
Regulation on Securities and Exchange
Soundness of Banks
Quality of Overall Infrastructure
Quality of Electrical Supply
Energy Security
Prospects for Renewable Energy
5. Infrastructure
2. Market Efficiency
Extent of Market Dominance
Intensity of Local Competition**
Financial Market Sophistication
Restriction of Capital Flows
3. Human Capital
Extent of Staff training*
Reliance on Professional Management
Quality of Management Schools
Quality of Roads
Prospects of integration in PanEuropean Logistic Network
A strong political leadership, with a clear vision and
commitment to economic growth as a priority.
Thank you!