NZ competitiveness

September 7th, 2013 at 4:00 pm by David Farrar

Stuff reports:

For the first time, New Zealand is ahead of Australia in the Global Competitive Index.

The annual report by the World Economic Forum shows New Zealand is 18th, up five places in the past year. Australia dropped one place to 21st.

New Zealand’s rise reflected a steady economic recovery and “prudent pro-growth policies”, said Oliver Hartwich, executive director of the New Zealand Initiative, which helped compile the survey data.

New Zealand was ranked among the top 10 in the world for the quality of its institutions, health and primary education, higher education, goods and labour market efficiency, and financial markets development, the report shows.

Hartwich cautioned against complacency. The country had failed to make any improvement on its innovation and business sophistication factors, ranking 27th globally, behind Puerto Rico and Qatar.

Switzerland, which was ranked second in the world for innovation and business sophistication, was named the most competitive economy in the world for a fifth year. The next most competitive countries were Finland, Japan, Germany, Sweden, the United States, the Netherlands, Israel, Taiwan and Britain.

Good to be improving. Global competitiveness is a key factor in prosperity – not increased barriers and destroying competition.

The full report is here. Our individual rankings are:

  • Institutions 2nd
  • Infrastructure 27th
  • Macroeconomic environment 43rd
  • Health and primary education 5th
  • Higher education & training 9th
  • Goods market efficiency 9th
  • Labor market efficiency 8th
  • Financial market development 4th
  • Technological readiness 24th
  • Market size 62nd
  • Business sophistication 26th
  • Innovation 26th

The most problematic factors for doing business were:

  1. Inadequate supply of infrastructure
  2. Inadequately educated workforce
  3. Insufficient capacity to innovate
  4. Inefficient government bureaucracy
  5. Access to financing
  6. Tax rates
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14 Responses to “NZ competitiveness”

  1. Redbaiter (8,800 comments) says:

    Very interesting report. Hours of reading.

    Good to see NZ up in so many areas. Not so good to see it a long way down in taxation and debt/GDP ratio.

    Also interesting to see Singapore beating NZ in many areas it should not if it was the police state that its detractors claim it is.

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  2. hj (6,991 comments) says:

    The scale and frequency of weather shocks, combined with long-term economic forecasts of climate change effects and fossil fuel costs, are having a political as well as an economic impact. Many developing country governments are changing their approach to infrastructure and industrial planning, choosing to design more sustainable, resilient pathways to economic growth. They are developing comprehensive national investment programmes in clean energy, energy efficiency, water management, climate-resilient agriculture, smart grids and low-carbon transport systems. This strategic shift has been termed “greening the economy” or making a “green growth” transition. Currently, significant private investment is not being attracted to these plans due to a range of perceived risks and the relative novelty of the market. What public-private partnerships can support developing countries to create large-scale, investment-grade blueprints for their green growth strategies? What new financing mechanisms can use targeted public funds to address key risks and leverage a step change in private capital flow into green infrastructure projects?

    Nationals certainly not going down that route are they?
    Looks like Labour is more inclined
    http://www.labour.org.nz/news/speech-the-dolphin-and-the-dole-queue

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  3. duggledog (1,554 comments) says:

    Problematic factors for doing business 1 thru 6.

    Inadequately educated workforce, (leads directly to:) Insufficient capacity to innovate

    Inefficient government bureaucracy and tax rates.

    The predictable end result of decades of socialism. This is where the ‘inequality’ comes from.

    Unlikely to improve

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  4. Harriet (4,969 comments) says:

    What crap!

    “….» Higher education & training 9th

    2.Inadequately educated workforce….”

    These lists themselves are the problem:

    They rate those who inadequately educate the workforce as being in the TOP 10 in the world as educationalists!

    If National now try to eradicate nonsense papers out of all degree courses to keep the cost of education down, and a reflection of the real world, this bullshit report will held up as a reason not to by ivory tower academics – and that the private sector should infact be sending more of their staff to the PC /Prog propaganda institutions for ‘training’.

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  5. JC (955 comments) says:

    The problems mentioned read like the socialist manifesto.. or consequences of it.

    JC

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  6. kiwigunner (230 comments) says:

    5th best primary education in the world – sure needed those National Standards and Charter Schools!

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  7. MikeG (425 comments) says:

    Technological readiness 24th

    So how’s the high speed broadband rollout coming along…

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  8. wf (441 comments) says:

    Just reading what’s on here – I don’t believe a word of it. Too many contradictions. Rubbish.

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  9. Nigel (514 comments) says:

    Heaven help NZ if Labour get back in, they’ll drop NZ by ten spots every year.

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  10. hj (6,991 comments) says:

    Heaven help NZ if Labour get back in, they’ll drop NZ by ten spots every year.
    ……………………
    Hang on what about the Lange Douglas Government?

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  11. hj (6,991 comments) says:

    From the report.
    In recent years, increasing environmental and social concerns have started to change the way we look at economic development. Throughout the second half of the 20th century, data showed that increasing productivity and economic growth went hand in hand with better and improving living conditions. More recent data suggests that trends in economic growth no longer tell the whole story. The need to better understand the relationship between economic competitiveness and social and environmental sustainability has been revealed by events such as the “Arab Spring”, the rise of unemployment in many advanced economies – particularly among the young and less skilled population –, increasing income inequalities and social unrest in rapidly-growing economies as well as by increasing pressure on natural resources or the high levels of pollution.
    http://www.weforum.org/content/pages/sustainable-competitiveness/

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  12. hj (6,991 comments) says:

    From the report:
    World Population Day is a good reminder of the promise, the power and the potential of demography. Put the right policies in place, and demographic growth will drive society forward.
    http://forumblog.org/2013/07/can-demographic-growth-drive-society-forward/

    of course forward isn’t defined.

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  13. Feanor (38 comments) says:

    Why they use the term competitiveness instead of Productivity is beyond me. Countries don’t compete like sports teams.

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  14. Ian McK (237 comments) says:

    This item should be shown to the two obese whinging PIs in the Herald. I get sick and tired of seeing these types being used as political pawns to drive left-wing journos’ foul and futile ideals of socialism. If these PIs can’t live on the wages they earn, along with WFF, State house, free food at school to allow for their excess breeding, rent subsidies for their taxpayer-provided homes . . . give us a break, as taxpayers we have had a gutsful. There are always spare seats on flights out of Mangere for whoever may not be happy here. We could even give them monetary handouts (they are adept in organising these) to help them on their way.

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