The World Economic Forum (WEF) provides a thorough analysis of 142 countries competitiveness. Its analysis is based on the Global Competitiveness Index (GCI), a comprehensive tool that measures the microeconomic and macroeconomic foundations of national competitiveness.
In its 2012 report “Greece falls another seven places in the rankings to 90th, remaining the lowest-ranked country of the European Union. In the context of the ongoing sovereign debt crisis, Greece continues to fall precipitously in the macroeconomic environment pillar, dropping to 140th position this year. Similarly, Greece’s financial markets are assessed more poorly than in the past, at 110th this year, showing particularly low confidence on the part of investors.
The evaluation of public institutions (e.g., government efficiency, corruption, undue influence) continues to suffer and is ranked a low 89th overall. Another major area of concern is the country’s inefficient labor market (126th), which continues to constrain Greece’s ability to emerge from the crisis, demonstrating the importance of recent efforts to increase the retirement age and increase labor market flexibility”
The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum
WEF defines competitiveness as the set of institutions, policies, and factors (summarized in 12 pillars of competitiveness) that determine the level of productivity of a country.
In the recent McKinsey&Company report “Greece 10 Years Ahead” , the competitiveness issues of the Greek Economy and the gaps in productivity are due to five principal causes:
The structure of the economy discourages investment and economies of scale
- The broader public sector is large and inefficient
- Labor force utilization stifles flexibility and job mobility
- The legal/judicial system is cumbersome and deters investment and
- Informality is widespread