13/12/19: World Bank and WEF reports highlight relatively poor competitiveness rankings for Ireland

The latest World Bank "Doing Business" report rankings and the WEF's "Global Competitiveness Report" rankings show Ireland in a mid-tier 1 position (24th ranked in both tables) in terms of competitiveness - hardly an enviable position.

Ireland's position marks a deterioration from 23rd rank in WEF table, driven by relatively poor performance in ICT adoption (hmmm... Silicon Docks economy is ranked 49th in the World), macroeconomic stability (ranked 34th), product markets competitiveness (35th), and financial system (42nd).

Full WEF report here: http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf and full WB report here: https://openknowledge.worldbank.org/bitstream/handle/10986/32436/9781464814402.pdf WB country profile for Ireland: https://www.doingbusiness.org/content/dam/doingBusiness/country/i/ireland/IRL.pdf.

A summary chart for Ireland from WB report:

Which, again shows poor performance in the area of credit supply, as well as trading across the border (correlated to the effective market size),  but also in access to electricity, registering property, dealing with construction permits, and enforcing contracts.

15/6/2014: WEF Misses on Another 'Metric'...

WSJ reported on Finland taking the lead in the EU competitiveness gains:

Link here: http://blogs.wsj.com/brussels/2014/06/10/finland-leapfrogs-sweden-in-competitiveness-new-report-says/?mod=e2tw

And here is my reply...

So Finland is one of the worst performers in the EA18 in terms of actual growth outcomes during the crisis and subsequent recovery. And it was followed by Sweden (stronger performer) and the Netherlands (even worse performer than Finland)...

This just confirms simple fact: World Economic Forum is not a very good indicator of anything other than egos of its participants and 'young leaders'... full stop... 

21/1/2014: Davos: Outdated Irrelevance of Banality?

If you do need to know exactly why the World Economic Forum at Davos is a vacuous undertaking, go no further than this:

The top 5 risks the #WEF survey delivers to us as a break-through insight into the future from all this 'intellectual' elite gathering in Swiss Alps this week are so... how should I put it mildly... banal? well-rehearsed? predictable? all of the above?

If we already know what Davos is just setting 'ahead' for the discussion, what on earth can be the point of following this global navel gazing ego fest?..

More to the point: Water crisis, Climate change, High unemployment, and Fiscal crises all have been at the core of Davos discussions in previous years. Apparently, the Greats of this World still can't resolve any of them. Time to fuel up that Learjet, cause pressing 'risks' are upon us...

21/1/2014: Four Reasons to Worry About Income Inequality

Not being a fan of 'relative poverty' concept for a number of economic reasons, here's my real concern:

Source for both charts: http://www.oxfam.org/sites/www.oxfam.org/files/bp-working-for-few-political-capture-economic-inequality-200114-summ-en.pdf

The core concerns I have are that

• Extreme disparities of wealth and income distributions can lead to inequality of opportunity and, as the result, to non-meritocratic distribution of wealth and income over generations. 
• Extreme divergence in wealth and income distributions can lead to the decline of democratic participation and thus to a rise in political extremism.
• Extreme differentials in income inequality the wake of a major economic crisis compound long-term effects of the crisis and reduce the rate of recovery, including structural recovery.
• In the current crisis, the core cost of the crisis befell the highly indebted households, primarily from middle and upper-middle classes, plus lower-skilled unemployed. Exit from the crisis, therefore, requires repairing their balancesheets more robustly than the balancesheets of the top 1% earners. The fact that we are witnessing the opposite effect tells me that the underlying causes of the crisis have not been addressed. We have wasted trillions in scarce economic resources and achieved preciously little for it.

5/9/2013: WEF on Ireland's Competitiveness - detailed analysis

World Economic Forum Global Competitiveness Report 2013-2014 puts Ireland's competitiveness in 28th place, one position worse in global rankings than in 2012-2013 report. Here are summary stats.

First, top 30 countries (2013-2014 ranks) and their recent performance history:

Several points of note:

• Compared to two years ago, there is only one new addition to top 10 performers group: Hong Kong. Denmark - ranked 8th in 2011-2012 report is now ranked 15th.
• Switzerland and Singapore are unchallenged ranked 1 and 2.
  Despite a recession, Finland ranks ahead of Germany and in venerable 3rd place. Sweden, meanwhile, lost 3 places over the last two years.
• Ireland's competitiveness 'neighbourhood' now includes Brunei and Malaysia, with such 'stars' of global competitiveness as Saudi Arabia, UAE and Qatar outperforming Ireland significantly.
• China and Puerto Rico are snapping on our heels. Iceland, Estonia, Oman, and Chile are nearby as well.
• We ranked 9th in EU18 euro area.

Ireland's relatively poor performance is highlighted in the following table, showing our overall decline from 22nd position worldwide in 2008-2009 to 28th in 2013-2014 reports. Blue colour codes improvements on 2008-2009 ranks and red codes deterioration in rankings.

The table above shows that Irish rankings are severely depressed by the Macroeconomic Stability (134th), Financial Markets Sophistication (85th) and Market Size (57th). We can't do much about the latter one, of course. We rank below where we should be in terms of Infrastructure (26th) and in terms of Institutions (16th), Higher Education and Training (18th), Labour Market Efficiency (16th), as well as across both sub-components of Innovation factors.

Full report is available here: http://www.weforum.org/content/pages/competitiveness-library and on page 222 there is a handy summary for Ireland's scores. Here's a chart mapping Ireland relative to its peers average:

There is very little in the above chart that distinguishes Ireland to the better side of the average Innovation-driven economy. The largest gaps in our favour are found in Goods Market efficiency (largely thanks to the EU common trade area, plus our severe dependency on imports, normal for a small open economy), and Institutions (ditto for the EU, plus common law etc). Best way to describe us, using the above chart - abstracting away from Macroeconomic and Banking crises - is average for our group.

In case you think otherwise, our own assessments confirm the above conclusion:

Notice that - again aside from the financial crisis - our top 5 drags on performance are: Inefficient government bureaucracy; Inadequate supply of infrastructure; Insufficient capacity to innovate and Tax rates. All are of our own making.

Should you care to see more: here are the details. Reading the below, keep in mind, we really should be aiming to be in top 12-15 in the world, if not better. We certainly market ourselves as if we are in top 10 at the very least...