Incentive Framework: Domestic Policies and Institutions (Competition, Business Environment, and Governance)
Competition
Competition
Services and FDI
Governance
Governance
Intensity of domestic market competition Extent of market dominance (rating) Effectiveness of antimonopoly policy (rating) Investing across Borders (IAB) Starting a foreign business (time and procedures) Accessing industrial land (time to lease, strength of legal rights, availability of and access to information) Arbitrating commercial disputes (strength of laws, ease of process, extent of judicial assistance) Number of firms paying bribes Average bribe as percentage of total sales Irregular payments in exports and imports Losses due to crime and violence Losses due to security issues Unpredictable interpretation of regulations Corruption perception Index Degree of undue influence in the judicial system and among government officials Government efficiency
89
GCI GCI GCI IAB IAB IAB IAB World Bank Enterprise Surveys ICS GCI Enterprise Surveys; GCI Enterprise Surveys; GCI Enterprise Surveys Transparency International GCI GCI
World Competitiveness Yearbook • Published by the Institute for Management Development in Lausanne. Until 1996, a joint publication with the World Economic Forum (WEF). Analyzes the international competitiveness of 49 countries, on the basis of hard data from international organizations and perception surveys of enterprise managers. • Hard data cover economic performance, international trade and investment, public finance and fiscal policy, education, productivity, and infrastructure quality. Survey questions cover institutional framework (government efficiency, justice, and security), business legislation (openness, competition regulations, labor regulations, and capital market regulations) and management practices. Source: http://www.imd.ch. Global Competitiveness Report • The Global Competitiveness Index, published annually by the World Economic Forum since 1996, is another good example of benchmarking. Analyzes the international competitiveness of more than 100 countries, on the basis of hard data from international organizations and perception surveys of enterprise managers. • Survey questions cover access to credit, public institutions for contract and law enforcement, corruption, domestic competition, labor regulations, corporate governance, environmental policy, and cluster development. Hard data cover economic performance, international trade and investment, public finance and fiscal policy, education, technological innovation, information and communications technology, and infrastructure quality. Starting in 2003, the analysis includes six Doing Business indicators on starting a business and enforcing a contract. Source: www.weforum.org. Global Enabling Trade Report • Measures and analyzes institutions, policies, and services enabling trade in national economies around the world. Includes the most current data and recent analysis of the factors enabling trade in industrial and emerging economies, as well as the latest thinking and research from trade experts and industry practitioners. Source: www.weforum.org. Index of Economic Freedom • Published since 1995 by the Heritage Foundation and the Wall Street Journal. Analyzes economic freedom in 161 countries and is based on assessments by in-house experts, drawing on many public and private sources. • The index covers 10 areas: trade policy, fiscal burden, government intervention, monetary policy, foreign investment, banking and finance, wages and prices, property rights, business regulation, and black markets. Source: www.heritage.org.
Module 2
Sources for Cross-Country Indicators of the Business Environment