- International Institute for Management Development (IMD), an independent academic institution based in Lausanne and Singapore, founded 75 years ago by business leaders to create business leaders. IMD is focused in developing leaders who transform organizations and contribute to society.
- The IMD World Competitiveness Yearbook (WCY), first published in 1989, is a comprehensive annual report and worldwide reference point on the competitiveness of countries. It provides benchmarking and trends, as well as statistics and survey data based on extensive research. It analyzes and ranks countries according to how they manage their competencies to achieve long-term value creation.
This year’s ranking:
- India has witnessed the sharpest rise among the Asian economies, with a six-position jump from 43rd to 37th rank on the, largely due to gains in economic performance. Denmark has moved to the top of the 63-nation list from the third position last year, while Switzerland slipped from the top ranking to the second position and Singapore regained the third spot from fifth.
- This year two countries namely Russia and Ukraine, are not included in the 2022 ranking due to the limited reliability of the data collected.
Challenges for the economic recovery:
- The three most important trends considered to be impacting businesses in 2022 were:
- Inflationary pressures (50%),
- Geopolitical conflicts (49%)
- Supply chain bottlenecks (48%).
- COVID-19 (43%)
- It was also noted that there was somewhat impact of regulation on greenhouse emissions and socio-economic disparities
Factors for deciding Rankings:
- Based on analysis made by leading scholars and by our own research and experience, the methodology of the World Competitiveness ranking thus divides the national environment into four main factors:
- Economic Performance
- Government Efficiency
- Business Efficiency
- Infrastructure
- In turn, each of these factors is divided into 5 sub-factors which highlight every facet of the areas analyzed. Altogether, the World Competitiveness ranking features 20 such sub-factors. These 20 sub-factors comprise 333 criteria, although each sub-factor does not necessarily have the same number of criteria (for example, it takes more criteria to assess Education than to evaluate Prices).
- Each sub-factor, independently of the number of criteria it contains, has the same weight in the overall consolidation of results.
- Criteria can be hard data, which analyze competitiveness as it can be measured (e.g. GDP) or soft data, which analyze competitiveness as it is perceived (e.g. availability of competent managers).
Ranking based on 4 Parameters:
- Economic performance: It ranked 28th in 2022.
- Government Efficiency: It ranked 45th in 2022.
- Business Efficiency: It saw a huge improvement from 32nd rank in 2021 to 23rd in 2022
- Infrastructure: It was ranked same as 2021, i.e. 49.
Challenges in 2022:
- Managing Trade disruptions and Energy security.
- Maintaining high GDP growth post COVID.
- Skill development and employment generation.
- Strategic disinvestment and asset monetization.
- Resource mobilization for infrastructure development
Questions:
Ques: 1: Which of the following statement is true based on IMD’s Global Competitiveness Ranking 2022?a) India’s ranking in the parameter of Economic Performance is 37th
b) India’s ranking in the parameter of Business Efficiency is 23th
c) India’s ranking in the parameter of Infrastructure is 49th
d) Both b and c
e) All of the above
Ques: 2: What is India’s ranking in IMD’s World Competitive Index?
a) 42nd
b) 39th
c) 45th
d) 37th
e) None of the Above
Ques: 3: Which country topped in World Competitiveness Index 2022?
a) Switzerland
b) Netherland
c) Singapore
d) Denmark
a) Switzerland
b) Netherland
c) Singapore
d) Denmark
