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Indonesia Improves in WEF's Global Competitiveness Index 2014-2015
30 Sep 2015
Indonesia Improves in WEF's Global Competitiveness Index 2014-2015
Indonesia rose four positions in the World Economic Forum's Global Competitiveness Index 2014-2015. Based on the Global Competitiveness Report 2014-2015, released on Tuesday (29/09), Indonesia comes at 34th place in the ranking (out a total of 144 economies assessed across the globe). This improvement is a positive development although to some it may come as a bit of a surprise given Indonesia's slow progress in infrastructure development, high inflation and slowing economic growth.

The World Economic Forum (WEF) defines competitiveness as "the set of institutions, policies, and factors that determine the level of productivity of a country. The level of productivity, in turn, sets the level of prosperity that can be reached by an economy. The productivity level also determines the rates of return obtained by investment in an economy, which in turn are the fundamental drivers of its growth rates. In other words, a more competitive economy is one that is likely to grow faster over time."

To define the level of nations' competitiveness the WEF uses twelve pillars: institutional environment, infrastructure, macroeconomic environment, health and primary education, higher education and training, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.

For the sixth straight year, Switzerland tops the Global Competitiveness Index, followed by Singapore and the United States.

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