Governance Capabilities | Social Capabilities
Sub-Index 1: Economic Capabilities
| Economic Capabilities |
Primary Source KPMG Survey |
Secondary Sources |
| Macroeconomic Management |
- To what extent does the government in your country have in place an appropriate policy framework for macroeconomic management (e.g., one that supports macroeconomic stability and sound public financial management)?
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| Investment Climate |
- How effective are the mechanisms in place in your country for promoting access to credit when there is less private credit available during difficult economic times?
- How effective is the government in your country at making sound decisions on infrastructure development (e.g., ones that are within the budget constraints faced, facilitate economic growth and respond to the changing needs and opportunities facing the country)?
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World Bank (Doing Business): Time to Start a Business
The median duration that is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments
World Economic Forum GCI: Ease to Access Loans
Weighted average of the answers from the WEF executive opinion survey question:
- How easy is it to obtain a bank loan in your country with only a good business plan and no collateral?
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| Degree of Economic Openness |
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World Economic Forum: Prevalence of Trade Barriers & Business Impact of Rules on FDI
Weighted average of the answers from the WEF executive opinion survey questions:
- In your country, to what extent do tariff and non-tariff barriers limit the ability of imported goods to compete in the domestic market?
- To what extent do rules governing foreign direct investment (FDI) encourage or discourage it?
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| Flexibility of Labor Market |
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World Economic Forum: Hiring & Firing Practices
WEF executive opinion survey; weighted average of the answers from the survey question:
- How would you characterize the hiring and firing of workers in your country?
World Bank (Doing Business): Rigidity of Employment
The average of three sub indices:
- The difficulty of hiring index
- Rigidity of hours index
- Difficulty of redundancy index
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| Diversified Economy |
- How effective is the government in your country at taking the necessary action to promote an economy with a well-diversified economic structure (e.g., one in which a good range of different sectors and industries contribute to national income)?
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Economic Capabilities | Social Capabilities
Sub-Index 2: Governance Capabilities
| Governance Capabilities |
Primary Source KPMG Survey |
Secondary Sources |
| Public Administration |
- How effective is the government in your country at taking appropriate steps to understand the economic opportunities (e.g., potential new growth industries, new sources of finance through carbon markets) and threats (e.g., natural disasters affecting crops, or increased fuel costs) posed by climate change?
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World Bank: Government Effectiveness
Captures perceptions of the quality of public services, quality of the civil service and degree of its independence from political pressures, quality of policy formulation and implementation, and the credibility of the government's commitment to such policies
World Bank/Transparency International: Control of Corruption Index
Captures perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as 'capture' of the state by elites and private interests |
| Financial Regulation |
- How effective is the financial regulatory framework in your country (e.g., does it successfully balance the need to promote financial stability with that of access to finance)?
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World Economic Forum: Regulations of Security Exchange
Weighted average of the answer from the WEF executive opinion survey:
- How would you assess the regulation of securities exchanges in your country?
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| Risk Management |
- How effective is the government in your country at managing risks (e.g., by taking appropriate and effective action to identify and address them)? By risks we mean national level risks to the economy (e.g., from natural disasters, financial crises, climate change, etc).
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| State Business Relations |
- To what extent does the relationship between the government and business in your country promote a healthy and dynamic economy (e.g., one that enables the private sector to respond effectively to changing conditions and new opportunities)?
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Economic Capabilities | Governance Capabilities
Sub-Index 3: Social Capabilities
| Social Capabilities |
Primary Source KPMG Survey |
Secondary Sources |
| Entrepreneurship |
- To what extent is entrepreneurship viewed positively in your country?
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Legatum Institute: Entrepreneurship & Opportunity
- Measures countries' performances in three areas: entrepreneurial environment, innovative activity and access to opportunity
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| Safety Nets |
- To what extent is there an effective social safety net in your country which supports people during difficult economic times (e.g., through cash transfers)?
- To what extent do people in your country help each other out during difficult economic times?
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Legatum Institute: Social Capital
Measures countries' performances in two areas:
- Social cohesion and engagement
- Community and family networks
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| Information and Communication Technology (ICT) and Innovation |
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World Bank: ICT Index Knowledge Economy Index (KEI)
Average of the normalized scores for:
- Number of telephones per 1,000 people
- Number of computers per 1,000 people
- Internet users per 10,000 people
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| Innovation and Technology |
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World Economic Forum: Capacity for Innovation
Weighted average of the answers from the executive opinion survey question:
- In your country, how do companies obtain technology? (1 = exclusively from licensing or imitating foreign companies; 7 = by conducting formal research and pioneering their own new products and processes)
World Bank: Innovation system KEI
Average of the normalized scores for:
- Total royalty payments and receipts
- Patent applications
- Scientific and technical journal articles
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| Human Capital |
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World Bank: Education KEI
Average of the normalized scores for:
- Adult literacy rate
- Secondary and tertiary enrollment
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| Skills and Training |
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World Economic Forum: Availability of Research & Training
Weighted average of the answers from the executive opinion survey question:
- In your country, to what extent are high-quality, specialized training services available?
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| Civil Society |
- To what extent do civil society organizations play an important role in solving humanitarian, environmental and development issues in your country?
- To what extent does the government in your country engage in constructive dialogue with civil society organizations and encourage and support their activities?
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