The Global Competitiveness Report 2009-2010 was published by the World Economic Forum on September 8. As a result of competitiveness tanking, Azerbaijani economy significantly strengthened and rose from 69th place last year to 51st.
Switzerland overtakes the United States this year as the world's most competitive economy. This is explained by the fact that Switzerland's performance has remained relatively stable, whereas the United States has seen a weakening across a number of areas. Switzerland's economy continues to be characterized by an excellent capacity for innovation and a very sophisticated business culture, ranked 3rd for its business sophistication and 2nd for its innovation capacity. The country is characterized by high spending on R&D. Switzerland's scientific research institutions are among the world's best, and the strong collaboration between the academic and business sectors ensures that much of this research is translated into marketable products and processes, reinforced by strong intellectual property protection. This strong innovative capacity is captured by the high rate of patenting (148.27 per million inhabitants) in the country, for which Switzerland ranks 7th worldwide on a per capita basis. Competitiveness is also buttressed by excellent infrastructure (5th) and a well-functioning goods market (5th), as well as a labor market that is among the most efficient in the world (2nd, just behind Singapore).
Singapore moves up two ranks to 3rd place, remaining the highest-ranked country from Asia.
Azerbaijan moves up an impressive 18 places to rank 51st this year, with measurable improvements across many aspects of the Index. The country is characterized by strong and improving macroeconomic stability, moving up 18 spots to 27th place this year, with high national savings, a large budget surplus, and low and shrinking government debt, although high inflation does raise some concerns. There have also been measurable improvements in the efficiency of the country's markets, especially labor and goods markets. Labor markets are ranked a high 13th (up from 34th last year), characterized by high and improving flexibility (for example, the country improved from 70th to 4th position in the rigidity of employment index), the report says. Within goods markets (up 18 places, from 89th to 71st), it has become much easier and less expensive to start a business: the number of procedures required more than halved from 13 to 6, and the time required has been reduced from 30 to 16 days. Indeed, the country is one of the ten biggest improvers in the World Bank's Doing Business 2009 report.
The WEF uses two sources for obtaining data: the so-called reliable data, i.e. official data of statistical agencies, government agencies and international organizations, and reviews on the basis of expert assessments. This year for the compilation of these reviews were polled about 13,000 business experts in 133 ranking member countries. According to local businessmen, in Azerbaijan the biggest obstacles for doing business are corruption, lack of skilled workforce, tax rates, tax regulations, inefficient government bureaucracy and a number of smaller ones.
In general, the internal impression of the results demonstrated by the economy of Azerbaijan for the year is very positive. However, the Global Competitiveness Index is intended to be a tool of analysis, where the Government indicates how weaknesses are objectively possible in their national economies that prevent strengthening of competitiveness. Only absolutely complete and transparent description of all events will help make right decisions in the future.
According to the Index, the weakest positions in the Azerbaijani economy are effective antimonopoly policy, quality of management schools, and infant mortality, the degree of competition in the domestic market, the credibility of professional management (who took senior positions in companies - family and friends regardless of the availability of professional qualifications, or managers, professionals, elected to these posts for his services), university admissions, etc.
Regarding higher education it is worthy to focus attention recent entrance examinations. In technical notes of the Report, revealing some concepts of indicators of the Index, the higher education is described as following: higher education, in this or another way leading to higher qualifications in the field of scientific research, generally requires a minimum admission condition [for the university] - the successful completion of secondary education.
The admission plan for universities in Azerbaijan this year was implemented, but at what cost. Just one example: while the passage point for the profession "operation of aircraft", the future masters of which will be directly responsible for the lives of many people, is five-point scale for all, but not all implement even the "troika". This is not a successful completion of secondary education. It is a complete mystery why the quality was sacrificed to quantity and what are benefits from all these.
All the goals and tasks outlined for the solution of global problems - the strengthening and prosperity of Azerbaijan - must be carefully monitored and analyzed during their implementation, mistakes - in public, but without a "witch hunt", should be recognized and corrected. This will help further consolidate the society and build trust amongst people.