Q. The Global Competitiveness Report is published by the

  • International Monetary Fund
  • United Nations Conference on Trade and Development
  • World Economic Forum
  • World Bank

Answer: (c) World Economic Forum

Notes:
  • The Global Competitiveness Report (GCR) was a yearly report published by the World Economic Forum.
  • The report “assesses the ability of countries to provide high levels of prosperity to their citizens”. This in turn depends on how productively a country uses available resources.
  • Therefore, the Global Competitiveness Index measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity.”
  • The report has twelve pillars of competitiveness. These are:
    1. Institutions
    2. Appropriate infrastructure
    3. Stable macroeconomic framework
    4. Good health and primary education
    5. Higher education and training
    6. Efficient goods markets
    7. Efficient labor markets
    8. Developed financial markets
    9. Ability to harness existing technology
    10. Market size—both domestic and international
    11. Production of new and different goods using the most sophisticated production processes
    12. Innovation
  • The Global Competitiveness Rankings have been paused in the wake of the COVID-19 pandemic and challenges brought by it to the countries.
    • The most recent global competitiveness ranking was released in 2019 in the Global Competitiveness Index 4.0.
    • First Edition: Global Competitiveness Report 1979.
  • India ranked 68th in Global Competitiveness Index 2019 out of 141 countries.
World Economic Forum (WEF)
  • WEF is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas.
    • It is headquartered in Geneva, Switzerland.
  • Foundation: Klaus Schwab, a German professor with a background in mechanical engineering and a Master of Public Administration from Harvard, founded WEFin1971, originally known as the European Management Forum.
    • He introduced the concept of “stakeholder capitalism.”
    • According to Schwab, “It is a form of capitalism in which companies do not only optimize short-term profits for shareholders, but seek long term value creation, by taking into account the needs of all their stakeholders, and society at large.”
  • Major Reports: WEF regularly publishes globally recognized reports, including the
    • Global Competitiveness Report
    • Global Gender Gap Report,
    • Energy Transition Index,
    • Global Risk Report,
    • Global Travel and Tourism Report,
    • Global IT Report
      • WEF along with INSEAD, and Cornell University publish this report.
International Monetary Fund (IMF)
  • The International Monetary Fund (IMF) is an organization of 190 member countries, each of which has representation on the IMF’s executive board in proportion to its financial importance, so that the most powerful countries in the global economy have the most voting power.
  • Objectives of IMF:
    • Foster global monetary cooperation
    • Secure financial stability
    • Facilitate international trade
    • Promote high employment and sustainable economic growth
    • And reduce poverty around the world
    • Macro-economic growth
    • Policy advise & financing for developing countries,
    • Promotion of exchange rate stability, and an international payment system
  • It has three critical missions:
    • Furthering international monetary cooperation, encouraging the expansion of trade and economic growth,
    • Discouraging policies that would harm prosperity.
    • To fulfill these missions, IMF member countries work collaboratively with each other and with other international bodies.
  • Functions of IMF:
    • Provides Financial Assistance: To provide financial assistance to member countries with balance of payments problems, the IMF lends money to replenish international reserves, stabilize currencies and strengthen conditions for economic growth. Countries must embark on structural adjustment policies monitored by the IMF.
    • IMF Surveillance: It oversees the international monetary system and monitors the economic and financial policies of its 190 member countries.
      • As part of this process, which takes place both at the global level and in individual countries, the IMF highlights possible risks to stability and advises on needed policy adjustments.
    • Capacity Development: It provides technical assistance and training to central banks, finance ministries, tax authorities, and other economic institutions.
      • This helps countries raise public revenues, modernize banking systems, develop strong legal frameworks, improve governance, and enhance the reporting of macroeconomic and financial data. It also helps countries to make progress towards the Sustainable Development Goals (SDGs).
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