Nepal moves up in global competitiveness report
Nepal has improved its rank in the Global Competitiveness Report 2013/14 (GCR) to 117th spot from last year’s 125th despite political instability in the country.
The GCR assess a country’s economic competitiveness based on 12 pillars of economic competitiveness. Nepal scored 3.66 out of the total 7 points, according to the report prepared by World Economic Forum (WEF), and climbed up seven places.
“Our position has improved because of higher scores in three of the twelve pillars including macroeconomic environment and health and primary education,” says Ram Chandra Dhakal, Executive Director at the Centre for Economic Development and Administration (CEDA). The organisation had partnered with WEF for the report.
Scores on these three pillars had increased by nominal 0.3 points to 3.7 points from last year’s score of 3.5, said Dhakal.
According to the report, Nepal ranking in macroeconomic environment has increased to 41st place from last year’s 56th while health and primary education ranked 88th from 109th last year.
However, Nepal’s ranks are lowest in infrastructure and public trust in politicians. Among 148 countries, Nepal stood at 144th spot in infrastructure while in public trust on politicians the country ranked at 142nd.
“Political instability is the main reason for the slow economy,” said Dhakal. “The trust of the public towards the politician is going low.”
The trade and business in the country is not secure due to political turmoil and that has also affected investment, said Dhakal, adding that lack of investment affected the country’s productivity.
The report shows efficiency of the legal framework in settling business disputes and cooperation in labour-employer relations in Nepal are worsening. Nepal has gone down to 123rd in the efficiency of the legal framework in settling business disputes from last year’s rank 113rd. The country is ranked at 146th in cooperation in Labour-employer relations, according to the report.
Dhakal said there is lack of job opportunity in the country even having skills and trainings that has forced many to foreign land. He also mentioned that increased remittance has played some role to uplift the life of the people.
The GCR assessed the competitiveness landscape of 148 economies this year, providing insight into the drivers of their productivity and prosperity. Nepal stood at 110 in 2006 and gradually hit bottom in 2010 at 130. The country's position has slowing improved since. nepalnews.com/Rajin Rai