Inequality in the Global Competitiveness

The era of free market increases global competition. Many countries try to improve their infrastructure facilities and others economic aspect in their country in order to encourage the development of the industry. Various companies are also trying to advance its business to compete with other companies. The latest edition of Global Competitiveness Report on the Global Competitiveness Index (GCI) 2014-2015, published by the World Economic Forum (WEF) adequately reflects the conditions of global competition that are increasingly tight. Its report shows how these 144 countries doing various works hard to improve competitiveness.

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Although each country does their best to be better, but the fact shows that the results of the global competitiveness are inequality each other’s. The WEF report, published in early September, said a number of countries still face difficulties in improving global competitiveness. This difficulty is mainly experienced by developing countries. In contrast, the developed economies countries, continued to dominate economic activity in a large scale.

Index of global competitiveness is determined based on 12 factors including the condition of the infrastructure, institutions, health, education, market efficiency, labor, technological readiness, innovation, macroeconomic, and business practices. Although these all 12 factors were measured separately, but it can not be denied even if all of these factors are interrelated. Proficiency level factors do not stand alone, but has a strict causality. The weakness in one of the factors often cause weakness in other factors, and vice versa.

Based on these factors, the WEF report also shows the top ten countries with high competitiveness, overall, not much changed in years. Top tens of global competitiveness countries are still dominated by developed countries, including in Asia. Meanwhile, United States (USA) and Japan showed significant progress. This year, the competitiveness of the United States climbed to be the third place and Japan jumped three places to the sixth rank. While Switzerland, for six years series success to be the world's top ranks. Singapore, for the fourth years series also success for being in the second place of the most global competitive countries in the world.

Although the position of the top ten global competitiveness ranking is not much changed over the years. On the other hand, the WEF saw that there is emergence of gaps in the global competitiveness in a number of areas. This gap arises because of various factors including the internal factors and external factors. Internal factors are generally caused due to the lack of structural economic improvement efforts. While external factors can be influenced by geopolitical conflicts in certain areas.

This inequality of global competitiveness does not necessarily indicate a good thing. The developing countries have to work harder to keep the gap closer. This is the only way to create a stronger national economy. At the same time, developing countries need to maintain the country's sovereignty in order to stay strong. Thus, developing countries will not face difficulties when conducting cooperation with developed countries due to the low bargaining position. However, it is not easy to develop quickly and equalizes global competitiveness.