The report, which covers 144 economies and ranks them on 12 key measures that determine competitiveness, finds that productiveness in Latin America and the Caribbean remains low. But there are hush success stories. here are the top 10 performers in the region .
1. Chile remains the most competitive economy in Latin America, with a firm institutional set-up, abject levels of corruption and an efficient government. It besides boasts solid macroeconomic constancy with a small public deficit and low public debt. Although there are some rigidities in its labor market due to persistently high redundancy costs, its markets are on the whole efficient. The refuse in the price of minerals, however, highlights the want for Chile to diversify its economy and move towards more knowledge-based activities. Flaws in the area ’ s education system, particularly in mathematics and science, mean the work force generally lacks the skills required for initiation and this, together with moo levels of investment in initiation, could jeopardize Chile ’ s transition towards a knowledge-based economy .
2. Panama again follows Chile in the regional rankings and remains the most competitive economy in Central America, despite a fall in the global rankings driven by a slight dip in perceptions of its institutions, particularly regarding its ability to fight corruption. There are besides concerns about a skill dearth, which threatens to undermine Panama ’ s conversion towards more knowledge-intensive activities. however, the area has an impressive infrastructure, with some of the best port and airport facilities in the world, and it is proving to be a potent adoptive parent of engineering.
3. Costa Rica continues to rise in the rankings, improving three positions in the past year thanks to a very stable profile and potent institutions. It has one of the best education systems in the region, a fairly high ICT consumption and a sanely well-developed capability to innovate, making it well-placed to move towards knowledge-based activities. however, some dogged weaknesses are holding back its overall competitiveness. These include poor transport infrastructure, difficulties accessing finance, concerns about its macroeconomic performance and high budget deficit .
4. Barbados has slipped eight places down the global rankings, as it continues to suffer the consequences of the ball-shaped fiscal crisis. Within the region it ranks one-fourth for overall competitiveness. The credit grind is sternly hindering the capacity of local businesses to finance their activities or develop advanced projects. Concerns about macroeconomic conditions besides persist, as Barbados has one of the highest populace deficits in the universe, one of the lowest savings rates and high populace debt. The nation does, however, have a fairly skilled tug impel thanks to a high-quality education system and high registration rates in secondary and third education. It besides has solid infrastructure and by and large well-functioning institutions .
5. Brazil drops one position in the rankings this year to 57th globally, due to insufficient progress in fixing its inadequate transport infrastructure, and a sensed deterioration in the functioning of its institutions. It has had a weaker macroeconomic performance this year and a further tighten of access to finance. Its hapless education system is hush failing to provide workers with the necessary skills for an economy in transition to more knowledge-based activities. The state has besides faced headwinds due to a shed in the external price of commodities and electric potential outflows of capital. That said, Brazil has meaning strengths, most notably its big market size and its fairly twist business community, with pockets of initiation excellence in many research-driven, high-value-added activities .
6. Mexico has made important structural reforms in the past year aimed at increasing the degree of rival and efficiency of its markets, though the benefits of these have not even materialized. Competitiveness will improve as these reforms start to have an affect. There has been a fall in the perceived functioning of Mexico ’ south institutions, and the Mexican education arrangement does not seem to deliver the skills that its changing economy requires. In its prefer, however, is a static macroeconomic environment, large home commercialize, good transport infrastructure and a number of sophisticate businesses ‒ rare for a state at its stage of development .
7. Peru ’ mho competitiveness gains in late years, driven by a very hard macroeconomic operation and highly efficient fiscal and british labour party markets, seem to be losing momentum. There are concerns about the operation of its institutions, along with insufficient progress in improving the quality of its education and lift levels of technological adoption. Although Peru has recently benefited from impregnable growth thanks to the rise in the price of minerals, the country should build its resilience by addressing its most durable challenges : it needs to strengthen its public institutions by increasing government efficiency, fighting corruption and better infrastructure.
8. Colombia climbs three positions in the ball-shaped rankings this year due to an increase in its degree of technological borrowing and the development of its infrastructure. however, more progress needs to be made with infrastructure, as this is still the second most baffling divisor for doing business in Colombia, after the high gear level of corruptness. The country has stable macroeconomic conditions, but as is the case across much of the area, it needs to diversify its economy and become less pendent on gross from mineral resources. To do so it must improve department of education and foster an environment that fuels invention .
9. Guatemala climbs eight places to the center of the global rankings this year, due to improvements in its level of rival in the goods market ‒ thanks to the decrease of red tape for new businesses ‒ and better infrastructure, although more advance here must be made .
10. Uruguay has improved its performance this year. GDP per head has been growing at a firm rate in Uruguay than the regional average for several years, and the nation performs well on measures relating to technological readiness, its institutions and its education system. restrictive labor regulations are the biggest obstacle to doing commercial enterprise in the nation .
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writer : Beñat Bilbao, Associate Director, Senior Economist, Global Competitiveness and Risk, World Economic Forum
effigy : A fisherman waits for a catch in front of the beach of Copacabana in Rio de Janeiro, March 18, 2014. REUTERS/Jorge silva