The nation’s global competitiveness ranking remained unchanged at No. 13 this year, supported by strong business innovation and improving financial market developments, despite weak labor market efficiency and worsening government finances, a report by the World Economic Forum (WEF) showed yesterday.
The Global Competitiveness Report 2011-2012 by the Geneva-based independent organization ranked Switzerland as the most competitive among 142 economies, followed by Singapore, Sweden, Finland and the US.
Regionally, Taiwan ranked fourth behind Singapore, Japan and Hong Kong, but outperformed South Korea. Japan ranked ninth, while Hong Kong and South Korea were at No. 11 and No. 24 respectively, the report said.
Countries are evaluated based on 111 factors that fall under 12 main categories: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication and innovation.
“The study showed that Taiwan placed first in eight detailed factors, with 37 of its factors marking their highest levels in history, an indication that the nation’s global competitiveness remains strong,” Council for Economic Planning and Development Minister Christina Liu (劉憶如) told a media briefing.
Taiwan placed first in utility patents granted — the fourth straight year it topped the list — demonstrating local companies’ continuing efforts on innovation, Liu said, citing the WEF’s statement.
In terms of financial market development, Taiwan moved up 11 notches to No. 24, with affordability of financial services and financing through local equity market ranking first and second respectively.
However, Taiwan ranked 118th in “rigidity of employment index” and “redundancy costs,” indications that labor market efficiency remained an important issue for the nation.
“The government should carefully consider how to balance the flexibility between the employers and employees,” Liu said.
The government budget balance ranked No. 91, down from No. 68 a year earlier, with the ranking of general government debt dropping five notches to 71st. Both factors were a drag on the nation’s macroeconomic environment, the report said.
Liu attributed these worsening rankings to the government’s strategy of spurring domestic demand by granting consumption vouchers in 2009, as the WEF said in the report that the evaluations on government finance were made based on 2009 data.
“These rankings may rebound next year, further driving up the nation’s overall global competitiveness ranking,” she said.
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