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Global Competitiveness Index: Botswana down one spot

Publishing Date : 21 October, 2019

Author : ALFRED MASOKOLA

The 2019 Global competitiveness report released by the World Economic Forum last week  shows that Botswana scored 55.49 points out of 100  , a notch up on the percent score  from 54.5 scored in the previous report but  one spot down on the rankings  from 90 to 91.


Competitiveness Index in Botswana averaged 15.85 Points from 2007 until 2019, reaching an all time high of 55.49 Points in 2019 and a record low of 3.96 Points in 2008. This year’s Global Competitiveness Report is the latest edition of the series launched in 1979 that provides an annual assessment of the drivers of productivity and long-term economic growth. With a score of 84.8 (+1.3), Singapore is the world’s most competitive economy in 2019, overtaking the United States, which falls to second place. Hong Kong SAR (3rd), Netherlands (4th) and Switzerland (5th) round up the top five.


Building on four decades of experience in benchmarking competitiveness, the index maps the competitiveness landscape of 141 economies through 103 indicators organized into 12 themes. Each indicator, using a scale from 0 to 100, shows how close an economy is to the ideal state or “frontier” of competitiveness. The pillars, which cover broad socio-economic elements, are: institutions, infrastructure, ICT adoption, macroeconomic stability, health, skills, product market, labour market, the financial system, market size, and business dynamism and innovation capability.


The report states that the world is at a social, environmental and economic tipping point with subdued growth, rising inequalities and accelerating climate change providing the context for a backlash against capitalism, globalization, technology, and elites. “There is gridlock in the international governance system and escalating trade and geopolitical tensions are fuelling uncertainty. This holds back investment and increases the risk of supply shocks: disruptions to global supply chains, sudden price spikes or interruptions in the availability of key resources,” observes the World Economic Forum.


The Global Competitiveness Report 2019 reveals an average across the 141 economies covered of 61 points. This is almost 40 points short of the “frontier”. It is a global competitiveness gap that is particularly concerning; given the world economy faces the prospect of a downturn. The report’s survey of 13,000 business executives highlights deep uncertainty and lower confidence. The report says while the $10 trillion injection by central banks is unprecedented and has succeeded in averting a deeper recession; it is not enough to catalyse the allocation of resources towards productivity enhancing investments in the private and public sectors.


With the 2018 edition, the World Economic Forum introduced a new methodology, aiming to integrate the notion of the 4th Industrial Revolution into the definition of competitiveness. It emphasizes the role of human capital, innovation, resilience and agility, as not only drivers but also defining features of economic success in the 4th Industrial Revolution. . By analyzing more than 100 indicators of competitiveness, the Forum’s work aims to unveil the secrets of the strongest performers and showcase what they’re doing well, encouraging other policy-makers to learn from their peers.


Infrastructure was an area of excellence, with Singapore’s roads, ports and airports placing it top. And it came first for health, with the average person expected to enjoy 74 years of healthy life. It scores well for financial stability and also for the quality of its public institutions, which come second only to Finland’s. As per the 2019 rankings, Botswana remains in fourth spot when gauged against Sub-Saharan African countries, with Mauritius in the lead, followed by South Africa, and the Seychelles.

SLOW ICT ADOPTION SCORING BOTSWANA LOW


In the 4th industrial revolution era, countries are gauged predominately by how much they embrace digital and new technological advancements. Botswana is noted to be lacking in that aread, with many of the country’s population having no access to internet. To pick up Botswana’s ICT infrastructure stance, this week Government launched Fiber-to-Home Technology, which is expected to give unlimited bandwidth for internet connection to homes.


Minister of Transport and Communications, Dorcus Makgato said connection of the Fibre to the Home technology enhance sustainable transformation of Botswana into a knowledge based economy. “This would enable growth of small businesses to augment contribution to the gross domestic product,” she said when lunching the project implemented by Botswana Fiber Network (BOFINET) in Gaborone this week.

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