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Kazakhstan climbed 15 positions in world competitiveness rating

by June 5, 2017 Key Issues

The Center for the Study of Global Competitiveness of the International Institute for Management Development (IMD, Switzerland, Lausanne) on May 31 this year published the results of the World Competitiveness Rating of 2017.

Kazakhstan first took part in this rating in 2008. According to the results of the World Competitiveness Rating of the IMD in 2017, Kazakhstan took the 32nd place, having risen by 15 positions. Thus, Kazakhstan returned to the positions of 2014 (in 2014 � the 32nd place, in 2015 � the 34th, in 2016 � the 47th).

At the same time, among the countries that improved their IMD-2017 rating, Kazakhstan made the biggest breakthrough. For example, China rose in the ranking by 7 positions, Indonesia – by 6, the United Arab Emirates – by 5. In 2017, 63 countries were ranked in the world rating. Thus, the most competitive countries are Hong Kong, Switzerland and Singapore, which moved the USA from the third place. Kazakhstan is in the ranking above such countries as Spain (34th), Italy (44th), India (45th), Russia (46th) and Turkey (47th).

In the IMD World Competitiveness Rating, out of 4 factors Kazakhstan has the strongest positions in two factors: “Government Effectiveness” (19th place, plus 12 positions) and “Business Efficiency” (23rd place, plus 21). Within these factors, the largest growth in Kazakhstan’s positions is observed in the sub-factors “Public Finance” (4th place, plus 47 positions) and “Management Practice” (14th place, plus 32 positions). Less weak positions of Kazakhstan are in the factors “Infrastructure” (43rd place, plus 5 positions) and “Economic activity” (54th place, minus 2 positions). At the same time, according to the “Infrastructure” factor, the growth was recorded in 4 out of 5 of its components: “Basic Infrastructure” (32nd place, improvement by 10 positions), “Technological Infrastructure” (43rd place, improvement by 4 positions), “Health and Environment” (53rd place, improvement by 2 positions) and “Education” (35th place, improvement by 9 positions). The decrease in positions is observed in the sub-factors “Scientific Infrastructure” (49th place, deterioration by 1 position). According to the factor “Economic activity”, the 5th component of the economic activity decreased by 3, including “Employment” (32nd place, minus 10 positions), “Prices” (53rd place, minus 9 positions) and “International Trade “(62nd place, minus 4 positions).

In general, Kazakhstan increased its positions in most of the sub-factors: 15 out of 20 showed growth, 4 positions decreased and one in sub-factor “Public order” – the position did not change. Regarding the poll results, according to respondents, the most attractive factors of Kazakhstan’s economy are stability and predictability of policies/situation (62%), favorable business environment (54%) and competitive taxation system (44%). The respondents attributed the least attractive factors to the effectiveness of the legal field (18%), the quality of corporate governance (15%) and the culture of research and development (9%).

However, for the first time this year, IMD published an additional report, which provides a separate ranking of the countries’ digital competitiveness, so countries now have two positions in the IMD ratings. According to the results of the 2017 survey, in the Digital Competitiveness Rating IMD Kazakhstan took the 38th place, by 5 positions better than in 2016. The rating of digital competitiveness is a new report of the World Competitiveness Center IMD, first published in 2017 along with the annual World Competitiveness Rating. It should be noted that the criteria in the field of technology have always been part of the main IMD rating. A new rating of digital competitiveness introduced a number of new criteria for assessing the ability of countries to introduce and explore digital technologies leading to the transformation of state practice, business models and society as a whole. The top ten leaders in the IMD-2017 Digital Competitiveness Rankings are Singapore, Sweden, the United States, Finland, Denmark, the Netherlands, Hong Kong SAR, Switzerland, Canada and Norway. In this rating Kazakhstan in all three factors showed growth: Technology (35th place, plus 7 positions), Readiness for the future (38th place, plus 3 positions), Knowledge (40th Place, plus 7 positions). Thus, thanks to the restoration of the economic activity of the national economy in 2016 and the growth of its economic indicators, Kazakhstan has significantly strengthened its position in the world IMD Competitiveness Rating. In addition, institutional reforms carried out in the country led to better positions, as predicted by the results of the previous IMD-2016 report.

IMD Rating is one of the most prestigious and well-known in the field of comparing the world competitiveness of countries. The IMD methodology is based on an assessment of the national environment that promotes competitiveness for 4 factors: Economic activity; Effectiveness of the Government; Business Efficiency; Infrastructure. Factors are divided into 20 sub-factors, each weighing 5%. The rating includes 342 indicators, 2/3 of which are based on statistical data and 1/3 on survey data.

Source: Kazakhstan 2050