Nepal Global Competitive Index

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Global Competitive Index Report of Nepal

Out of 144 surveyed Countries, Nepal sticks to 125 rank in Global Competitive Index report of 2012.  Nepal has been in the same position in last year as well.  Global Competitive Index is published every year by World Economic forum which showcases the economic growth and competitiveness of each country in the global arena. Nepal has been poor performer consistently from past years.  Switzerland tops the list and Singapore ranked second.

The Global Competitive Index is a measure of country’s overall economic measure and global competitiveness which are based on different subindexes. These subindexes are defined in 3 major divisions with overall 12 pillars that give a total competitive score. The Basic prerequisites sub index includes pillars like infrastructural development, institution, primary education & health and macroeconomic environment. Similarly Efficiency enhancers sub index is based on 6 pillars which are: market size, labor efficiency, higher education, technological readiness and financial efficiency. The last sub index is innovation and sophistication which include two pillars; Business sophistication and Innovation.

According to the index, Nepal ranks 121 scoring 3.65 in basic requirements. Nepal lacks far behind in infrastructural development ranking 141, just near to bottom.  The infrastructural development index is based on 9 components including road networks, electricity, communication, air transportation etc. Power shortage in Nepal adds to the declining infrastructural score as well as business fall down. Nepal also lacks in institution, efficiency enhancement and business innovation. Also, Nepal scored poor on financial availability and approach despite the growing number financial institution.

The labor efficiency, trainings and higher education too suffered a bad drop.

The ongoing political uncertainties and visionless projects has been major reason for Nepal’s sluggish economy, say the experts. Dr. Ramesh Chitrakar, country coordinator of the Global Competitive Index say “Nepal lack far behind in infrastructural development and ongoing electricity crisis has been major reason to push back Nepal in such ranking.”

However, despite the political clichés, Nepal still holds strong hopes on macroeconomic sector. Nepal is ranked in 56th positions in macroeconomic environment, way ahead than other developing countries.  Natural resources richness and political map settings of Nepal has benefitted Nepal with immense economic opportunity. The fact that Nepal lies between India and China, the two rising economy of the world, it has possibilities of being a bridging economic centre in South Asia.

Also, Nepal has performed pretty well in Primary education and health. It achieves 109thposition in this department. The national as well as private organization has helped upgrade the primary health and education in remote villages of Nepal which has lead to a satisfactory landing in the 109th position.

But reports of total economic competitiveness of Nepal is frustrating. Political uncertainties, instabilities and corrupt system are cited as key reasons for such poor score. More to this, Nepal has not been able to improve its Global competitive index over consistently. It showcases the backwardness of Nepal while many other developing nations in Asia and Latin world are improving better than the growth rate of advanced economy centers of the world.

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