presentation regional connectivity (final)

Regional Connectivity: Regional Connectivity:

Potential for Infrastructure development and Energy in South Potential for Infrastructure development and Energy in South AsiaAsia

““Causality of Causality of Infrastructure, Competitiveness and Infrastructure, Competitiveness and

Connectivity”Connectivity”

Dr. Ayub MeharDr. Ayub Mehar Director General (R&D)Director General (R&D)

Federation of Pakistan Chambers of Commerce & Industry (FPCCI)Federation of Pakistan Chambers of Commerce & Industry (FPCCI)

Seminar Organized Seminar Organized byby

SAARC Chamber of Commerce and Industry (SCCI)SAARC Chamber of Commerce and Industry (SCCI)

Dhaka (Bangladesh)Dhaka (Bangladesh)May 26, 2009May 26, 2009

Factors of CompetitivenessFactors of Competitiveness

o Competitiveness remains a concept that is not well understood, Competitiveness remains a concept that is not well understood, despite the widespread acceptance of its importance. despite the widespread acceptance of its importance.

o The widely used definition of competitiveness is a country’s share The widely used definition of competitiveness is a country’s share of world markets for its products. This view of competitiveness is of world markets for its products. This view of competitiveness is used to justify interventions and playing a key role in the used to justify interventions and playing a key role in the formulation of trade and industrial policies by the governments. formulation of trade and industrial policies by the governments.

o The subsidies, artificial restraints on local wages, and intervention The subsidies, artificial restraints on local wages, and intervention to devalue the nations’ currencies are the common ingredients of to devalue the nations’ currencies are the common ingredients of industrial and trade policies to attain such competitiveness. industrial and trade policies to attain such competitiveness.

o This view creates an uneven level playing field and unhealthy This view creates an uneven level playing field and unhealthy competition among the nations. competition among the nations.

o The World Economic Forum (WEF) has been studying the The World Economic Forum (WEF) has been studying the competitiveness of nations for nearly three decades. According to competitiveness of nations for nearly three decades. According to the WEF definition, “competitiveness is a set of institutions, the WEF definition, “competitiveness is a set of institutions, policies, and factors that determine the level of productivity of a policies, and factors that determine the level of productivity of a country”.country”.

Competitveness: Scope and Limitations

Major Components of WEF Competitiveness Index

o InstitutionsInstitutionso InfrastructureInfrastructureo Macro-economyMacro-economyo Health and primary educationHealth and primary educationo Higher education and trainingHigher education and trainingo Goods market efficiencyGoods market efficiencyo Labor market efficiencyLabor market efficiencyo Financial market Financial market

sophisticationsophisticationo Technological readinessTechnological readinesso Market sizeMarket sizeo Business sophisticationBusiness sophisticationo InnovationInnovation

(Worldwide Ranking of 134 Countries)

Business Competitiveness of South Asian Countries (Ranking)

BangladeBangladeshsh IndiaIndia PakistPakist

ananSri Sri LankaLanka

Overall Business Competitiveness Overall Business Competitiveness IndexIndex 111111 5050 101101 7777

InstitutionsInstitutions 127127 5353 9595 6666

InfrastructureInfrastructure 122122 7272 8585 6565

Macroeconomic stabilityMacroeconomic stability 101101 109109 116116 132132

Health and primary educationHealth and primary education 105105 100100 116116 5353

Higher education and trainingHigher education and training 131131 6363 123123 6565

Goods market efficiencyGoods market efficiency 106106 4747 100100 4242

Labor market efficiencyLabor market efficiency 107107 8989 121121 115115

Financial market sophisticationFinancial market sophistication 8282 3434 7171 6565

Technological readinessTechnological readiness 126126 6969 100100 8282

Market sizeMarket size 5353 55 2929 6464

Business sophisticationBusiness sophistication 105105 2727 8787 3232

InnovationInnovation 122122 3232 8282 3636

Infrastructure DevelopmentInfrastructure Development

Banglade

shIndia

Pakistan

Sri Lank

a

Infrastructure Development Rank (out of 134)

122 72 85 65

Infrastructure Development Score (1-7) 2.2 3.4 3.0 3.6

Quality of overall infrastructure 121 90 83 62

Quality of roads 93 87 69 63

Quality of railroad infrastructure 67 21 53 46

Quality of port infrastructure 121 93 78 44

Quality of air transport infrastructure 118 66 83 65

Available seat kilometers 63 10 47 60

Quality of electricity supply 124 108 120 72

Telephone Lines 124 107 108 93Competitive Advantage

Competitive Disadvantage

Causal Relations and Causal Relations and SimultaneitySimultaneity

Causal Relations

ExplanatoryExplanatory VariablesVariables InfrastructureInfrastructureTechnology Readiness

Coefficient of CorrelationCoefficient of Correlation 0.490.49 0.550.55

T-StatisticsT-Statistics 6.146.14 8.828.82

Infrastructure

Freedom to Trade

Internationally

Technology Readiness

Components of InfrastructureComponents of Infrastructure

A.A. Generalized ComponentsGeneralized Components

o Road Transportation and Railways (Goods and passengers transport)Road Transportation and Railways (Goods and passengers transport)

o Energy and electric supplyEnergy and electric supply

o CommunicationCommunication

o Health services including surgery and cureHealth services including surgery and cure

o Tourism and TravelingTourism and Traveling

o Education including higher education, research and high technologyEducation including higher education, research and high technology

o Banking & Finance including stock market and brokerage servicesBanking & Finance including stock market and brokerage services

Cont…Cont…

B.B. Specific ComponentsSpecific Components

o Quality of roadsQuality of roads

o Quality of railroad infrastructure Quality of railroad infrastructure

o Quality of port infrastructure Quality of port infrastructure

o Quality of air transport infrastructure Quality of air transport infrastructure

o Available seat kilometersAvailable seat kilometers

o Quality of electricity supply Quality of electricity supply

o Telephone lines Telephone lines

Components of InfrastructureComponents of Infrastructure

Trickle Down EffectTrickle Down Effect

Logistical infrastructur

e

Communications infrastructure

Administrative

infrastructure

Capital market

infrastructure

Innovation infrastructur

e

Factor(input)

conditions

National Business environment (NBE)

Microeconomic competitiveness

Competitiveness

Impacts of Infrastructure on GDPImpacts of Infrastructure on GDP

Regression on GDP per capita, PPP-adjusted

(log)

Beta R2

Logistical infrastructure Quality of roads 0.371 0.759

Quality of railroad infrastructure 0.306 0.745

Quality of port infrastructure 0.351 0.728

Quality of air transport infrastructure 0.421 0.731

Quality of electricity supply 0.463 0.812

Quality of domestic transport network: business

0.571 0.791

Communications infrastructure Quality of telephone infrastructure 0.456 0.777

Internet access in schools 0.471 0.816

Mobile telephone subscribers per 100 population

0.023 0.833

Personal computers per 100 population 0.026 0.773

Internet users per 100 population 0.031 0.774

Telephone lines per 100 population 0.036 0.848Cont…Cont…


Regression on GDP per capita, PPP-adjusted

(log)

Beta R2

Administrative infrastructure (Low) Burden of customs procedures 0.497 0.741

(Low) Burden of government regulation 0.364 0.659

Ease of starting a new business 0.317 0.668

(Low) Number of procedures required to start a business

0.076 0.660

(Low) Time required to start a business 0.381 0.682

Doing Business, Paying Taxes (Low) Payments number (WB)

0.016 0.681

Capital market infrastructure Regulation of securities exchanges 0.384 0.729

Financial market sophistication 0.424 0.749

Soundness of banks 0.326 0.673

Ease of access to loans 0.49 0.722

Venture capital availability 0.509 0.732

Financing through local equity market 0.242 0.664

Protection of minority shareholders’ interests 0.287 0.652

Doing Business, Getting Credit Legal rights index (WB)

0.089 0.637

Domestic credit to private sector (WB) 0.009 0.741

Cont…Cont…


Regression on GDP per capita, PPP-adjusted (log)

Beta R2

Innovation infrastructure Quality of scientific research institutions 0.448 0.709

University-industry research collaboration 0.488 0.727

Quality of the educational system 0.383 0.706

Quality of math and science education 0.363 0.698

Quality of management schools 0.453 0.706

Availability of scientists and engineers 0.469 0.707

(Low) Brain drain 0.469 0.740

Tertiary enrollment 0.022 0.742

Utility patents per million population 0.256 0.825

Overview of South AsiaOverview of South Asia

Connectivity in Trade & Finance: South Asia

Countries

Trade International Finance

% of GDP % of GDP

Merchandise

Services

Financing through

international capital markets

Gross inflows

Foreign direct investment

Workers remittances

and compensati

on of employees received

Net inflow

s

Net outflo

ws

Bangladesh 45.1 5.9 0.2 1.1 0.0 8.8

India 32.4 15.2 4.2 1.9 1.1 2.8

Pakistan 36.9 9.4 3.0 3.4 0.1 4.0

Sri Lanka 63.6 14.9 0.1 1.8 0.1 8.7

South Asia 34.4 14.1 3.7 2.0 0.9 3.5

Low Income Group

44.1 14.3 3.1 2.6 0.9 3.6

High Income Group

46.9 11.6 - 2.7 3.5 0.2

World 49.9 11.3 - 2.8 3.0 0.6

Travel and TourismTravel and Tourism

Countries

International Tourists

Inbound tourism expenditure

Outbound tourism expenditure

thousands $ million

s

% of exports

$ millions

% of ImportsInboun

dOutboun

d

Bangladesh 200 1819 80 0.6 444 2.6

India 4447 8340 9227 4.6 9296 4

Pakistan 898 - 919 4.5 2029 5.8

Sri Lanka 560 757 733 8.6 666 5.7

South Asia 7296 12998 11608 4.8 12923 4.2

Low Income Group

27246 - 22549 5.7 24213 4.4

High Income Group

510271 533390 633422 5.9 632672 6

World 850778 1030976 887743 6 803866 5.6

Transport Services

Countries

Roads Railways Ports Air

Total road

network

Km

Paved

roads%

Passengers

carriedmillion

passenger-

Km

Rail linestotal route

- Km

Passengers

carriedmillion

Passenger

Km

Goodshaule

dmillion

ton-km

Portcontain

ertrafficthousa

ndTEU

(Twenty-foot-

Equivalent

units)

Registered

carrierdepartur

esworldwid

eThousan

ds

Passengers

carriedThousan

ds

Air freigh

tmillion

ton-km

Bangladesh

239226 9.5 - 2855 4164 817 904 8 1729 191

India338334

447.4 - 63465 575702

407398

6190 454 40289 843

Pakistan 258340 64.7 209959 7791 24237 5013 1699 51 5715 427

Sri Lanka 97286 81 21067 1200 4358 135 3079 21 3101 325

South Asia

- 56.9 - - 14297 2915 11872 549 51488 1793

Low Income

Group

- 12.1 - - - 9772 846 69322 2469

High Income Group

- 90.9 - - 6152 10311 243338 18417 153497711767

8

World - 35.9 - - 2278 7751 414087 24848 207223714321

2

Power and Communications

Countries

Electric power Telephones

Consumptio

nper

capitakWh

Transmission

anddistributi

onlosses% of

output

Access Affordability and efficiency

per 1,000 people Population

coveredby

mobile

telephony%

Internationa

lvoice trafficminutes perperso

n

$ per month

Cost of

call to U.S.$ per

3 minut

es

telecommunicati

onsrevenue

% of GDP

subscribers

peremployee

Fixedmainline

s

Mobile

subscribers

Pricebasket

forresidenti

alfixed line

Price baske

tfor

mobile

Bangladesh

136 8 1 12 90 6 4.0 2.6 2.02 1.5 -

India 480 25 4 15 61 - 3.3 2.5 1.19 2.0 -

Pakistan 456 24 3 22 36 10 4.1 2.4 1.03 2.5 433

Sri Lanka 378 15 9 27 85 28 8.2 1.2 2.11 2.6 619

South Asia

432 24 3 15 60 - 4.0 2.4 2.02 2.1 433

Low Income Group

391 22 3 14 40 - 6.1 10.0 1.99 4.0 -

High Income Group

9760 6 53 90 99 204 26.6 17.0 0.77 4.4 641

World 2678 9 20 40 - - 10.0 10.4 1.42 2.9 572

Investment in infrastructure projects with private participation ($ millions)

CountriesTelecommunicat

ionsEnerg

yTranspo

rt

Water and

sanitation

Bangladesh 2187.3 501.5 0 -

India 27912.611572

.211365.7 2.1

Pakistan 9068 800.7 322 -

Sri Lanka 938.2 270.8 - -

South Asia 41008.413185

.811687.7 2.1

Trans-Asian Railway ProjectTrans-Asian Railway Project

Trans-Asian Railway: HistoryTrans-Asian Railway: Historyo The The Trans-Asian RailwayTrans-Asian Railway (TAR) project was initiated by the (TAR) project was initiated by the

United Nations Economic and Social Commission for Asia and United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) to create an integrated freight railway the Pacific (UNESCAP) to create an integrated freight railway network across Europe and Asia. network across Europe and Asia.

o The project was initiated in the 1960s, with the objective of The project was initiated in the 1960s, with the objective of providing a continuous 8750 mile (14,000km) rail link providing a continuous 8750 mile (14,000km) rail link between Singapore and Istanbul, Turkey, with possible further between Singapore and Istanbul, Turkey, with possible further connections to Europe and Africa. connections to Europe and Africa.

o The Northern Corridor was working already in the 1960s, The Northern Corridor was working already in the 1960s, although only for Soviet Union-China trade. although only for Soviet Union-China trade.

o One can not say that the Trans-Asian Railway Project has One can not say that the Trans-Asian Railway Project has been a great success so far. Very little railway has been built been a great success so far. Very little railway has been built along the corridors during the 40 years. along the corridors during the 40 years.

Cont….Cont….

Trans-Asian Railway: BenefitsTrans-Asian Railway: Benefits

o The project promised to significantly reduce The project promised to significantly reduce shipping times and costs between Europe and shipping times and costs between Europe and Asia. Asia.

o The TAR was also seen as a way to accessibility The TAR was also seen as a way to accessibility of landlocked countries like Laos, Afghanistan, of landlocked countries like Laos, Afghanistan, Mongolia, and the Central Asian republics.Mongolia, and the Central Asian republics.

Trans-Asian Railway: ObstaclesTrans-Asian Railway: Obstacles o Progress in developing the TAR was hindered by political and Progress in developing the TAR was hindered by political and

economic obstacles throughout the 1960s, 1970s and early economic obstacles throughout the 1960s, 1970s and early 1980s. By the 1990s, the end of the cold war and normalization 1980s. By the 1990s, the end of the cold war and normalization of relations between some countries improved the prospects for of relations between some countries improved the prospects for creating a rail network across the Asian continent.creating a rail network across the Asian continent.

o Much of the railway network already exists, although some Much of the railway network already exists, although some significant gaps remain. significant gaps remain.

o A big challenge is the differences in rail gauge across Eurasia. A big challenge is the differences in rail gauge across Eurasia. Four different major rail gauges exist across the continent: most Four different major rail gauges exist across the continent: most of Europe, Turkey, Iran, China, and the Koreas use the 1435 mm of Europe, Turkey, Iran, China, and the Koreas use the 1435 mm gauge, known as Standard gauge; Finland, Russia, and the gauge, known as Standard gauge; Finland, Russia, and the former Soviet republics use a 1520 mm gauge; most of the former Soviet republics use a 1520 mm gauge; most of the railways in India, Pakistan, Bangladesh and Sri Lanka use a 1676 railways in India, Pakistan, Bangladesh and Sri Lanka use a 1676 mm gauge, and most of Southeast Asia has metre-gauge. mm gauge, and most of Southeast Asia has metre-gauge.

o By 2001, the four corridors had been studied as part of By 2001, the four corridors had been studied as part of the plan:the plan:

o The The Northern Corridor:Northern Corridor: Germany, Poland, Belarus, Germany, Poland, Belarus, Russia, Kazakhstan, Mongolia, China, and the Koreas; Russia, Kazakhstan, Mongolia, China, and the Koreas;

o The The Southern Corridor:Southern Corridor: Turkey, Iran, Pakistan, India, Turkey, Iran, Pakistan, India, Bangladesh, Myanmar, and Thailand, with links to Bangladesh, Myanmar, and Thailand, with links to China's Yunnan Province and, via Malaysia, to Singapore. China's Yunnan Province and, via Malaysia, to Singapore.

o A A Southeast Asian networkSoutheast Asian network

o The The North-South Corridor:North-South Corridor: Northern Europe to the Northern Europe to the Persian Gulf. The main route starts in Helsinki, Finland, Persian Gulf. The main route starts in Helsinki, Finland, and continues through Russia to the Caspian Sea. and continues through Russia to the Caspian Sea.

Trans-Asian Railway: DevelopmentTrans-Asian Railway: Development

o The The Trans-Asian Railway Network AgreementTrans-Asian Railway Network Agreement was signed on November 10, 2006, by seventeen was signed on November 10, 2006, by seventeen Asian nations as part of a United Nations Economic Asian nations as part of a United Nations Economic and Social Commission for Asia and the Pacific and Social Commission for Asia and the Pacific (UNESCAP) effort to build a transcontinental railway (UNESCAP) effort to build a transcontinental railway network between Europe and Pacific ports in China. network between Europe and Pacific ports in China.

o Transportation and railway ministers from forty one Transportation and railway ministers from forty one nations participated in the week-long conference held nations participated in the week-long conference held in Busan, South Korea, where the agreement was in Busan, South Korea, where the agreement was formulated. The proposed 80,900-km railway network formulated. The proposed 80,900-km railway network will originate from the Pacific seaboard of Asia and will originate from the Pacific seaboard of Asia and end on the doorsteps of Europe. end on the doorsteps of Europe.

The Trans-Asian Railway Network AgreementThe Trans-Asian Railway Network Agreement

ConclusionConclusion

Empirical Findings Infrastructure is a component of the overall competitiveness: it Infrastructure is a component of the overall competitiveness: it

determine the improvement in the other factors of determine the improvement in the other factors of competitiveness.competitiveness.

Infrastructure development leads the ‘Freedom & Trade Infrastructure development leads the ‘Freedom & Trade internationally’ which improves competitiveness through internationally’ which improves competitiveness through enhancement in Technology Readiness.enhancement in Technology Readiness.

Statistical analysis shown the significant impact of the components Statistical analysis shown the significant impact of the components of infrastructure on GDP.of infrastructure on GDP.

It was concluded in statistical analysis (Appendix-III) that It was concluded in statistical analysis (Appendix-III) that enhancement in international trade is the ultimate outcome of the enhancement in international trade is the ultimate outcome of the competitiveness and Technology readiness: while trade in goods competitiveness and Technology readiness: while trade in goods and services is itself an indictor of connectivity.and services is itself an indictor of connectivity.

Reduction among the disparities between the nations, accelerated Reduction among the disparities between the nations, accelerated development of the institutions and growth of economic activities development of the institutions and growth of economic activities are the ultimate output of the connectivity and infrastructure are the ultimate output of the connectivity and infrastructure development. The inducement of cultural relations and interaction development. The inducement of cultural relations and interaction among the peoples of the partner countries is the most important among the peoples of the partner countries is the most important aspect of the regional connectivity.aspect of the regional connectivity.

Overview of the infrastructure development in South Asia explores Overview of the infrastructure development in South Asia explores the causes of economic underdevelopment and lack of connectivity.the causes of economic underdevelopment and lack of connectivity.

The causal relation in the famous slogan of ‘World Peace The causal relation in the famous slogan of ‘World Peace through World Trade’ was not accepted through historical through World Trade’ was not accepted through historical evidences. Historical evidences show the inverse evidences. Historical evidences show the inverse direction in causality: Peace leads the trade.direction in causality: Peace leads the trade.

The quantum of trade in merchandizing goods does not The quantum of trade in merchandizing goods does not reflect the relations between the peoples of partner reflect the relations between the peoples of partner countries. However, connectivity of peoples through countries. However, connectivity of peoples through availability of better infrastructure leads the interaction availability of better infrastructure leads the interaction among the peoples of partner countries. It may lead the among the peoples of partner countries. It may lead the peace and reduction in the political tensions and peace and reduction in the political tensions and disparities. disparities.

Misleading Causality Analysis

Dependency of Trade Relations on Connectivity

The commerce departments and their associated The commerce departments and their associated institutions are not only responsible for the trade institutions are not only responsible for the trade promotional activities. Connectivity by infrastructure promotional activities. Connectivity by infrastructure facilitation is the catalyst for enhancement in trade facilitation is the catalyst for enhancement in trade relations. relations.

For all kinds of trade in general and for trade in services For all kinds of trade in general and for trade in services particular, the role of interior and foreign ministries are particular, the role of interior and foreign ministries are also important. Free Trade Agreements, Bilateral Treaties also important. Free Trade Agreements, Bilateral Treaties and Monetary Union can not achieve the targeted goals and Monetary Union can not achieve the targeted goals unless the interiors and foreign affairs ministries unless the interiors and foreign affairs ministries participate in these agreements. The roles of participate in these agreements. The roles of transportation and communication departments are also transportation and communication departments are also important in trade promotion among the nations.important in trade promotion among the nations.

At the time of agreements of the mutual economic At the time of agreements of the mutual economic relations, the interiors and foreign affairs ministries and relations, the interiors and foreign affairs ministries and the concerned departments of the transportation and the concerned departments of the transportation and communication must be shared their views and their communication must be shared their views and their recommendations must be incorporated. recommendations must be incorporated.

The Global Competitiveness Index(Rank)

S.No.

Country/Economy

PILLERS

BASIC REQUIREMENTS

1. Institutions2.

Infrastructure

3. Macroeco

nomic stability

4. Health and

primary education

1 Albania 100 109 121 96 69

2 Algeria 61 102 84 5 76

3 Argentina 89 128 87 64 61

4 Armenia 93 96 90 83 97

5 Australia 15 12 21 28 15

6 Austria 9 11 10 44 13

7 Azerbaijan 62 62 61 45 102

8 Bahrain 28 31 28 20 45

9 Bangladesh 117 127 122 101 105

10 Barbados 33 20 24 114 10

11 Belgium 18 21 16 60 3

12 Benin 103 85 106 95 110

13 Bolivia 108 131 126 77 93

14 Bosnia and Herzegovina

98 123 123 57 82

15 Botswana 53 36 52 22 112

Cont…

Appendix-I

S.No. Country/Economy

PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re

3. Macroeconomic stability

4. Health and primary education

16 Brazil 96 91 78 122 79

17 Brunei Darussalam 29 41 39 2 47

18 Bulgaria 82 111 95 54 68

19 Burkina Faso 126 75 104 120 131

20 Burundi 132 124 129 124 124

21 Cambodia 107 103 97 105 111

22 Cameroon 109 116 117 34 125

23 Canada 8 15 6 43 6

24 Chad 133 133 134 97 134

25 Chile 36 37 30 14 73

26 China 42 56 47 11 50

27 Colombia 77 87 80 88 67

28 Costa Rica 63 50 94 85 37

29 Côte d’Ivoire 113 130 73 69 127

30 Croatia 49 74 51 61 41

31 Cyprus 23 24 25 46 7

32 Czech Republic 45 72 50 42 29

33 Denmark 4 3 8 12 4

34 Dominican Republic 99 119 81 78 106

35 Ecuador 90 129 108 16 92 Cont…

The Global Competitiveness Index (Rank)



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



36 Egypt 83 52 60 125 88

37 El Salvador 66 100 56 62 86

38 Estonia 30 33 40 23 28

39 Ethiopia 119 77 103 119 123

40 Finland 1 2 9 8 1

41 France 13 23 2 65 9

42 Gambia, The 81 38 62 99 119

43 Georgia 91 69 77 118 91

44 Germany 7 14 1 40 24

45 Ghana 106 63 82 121 115

46 Greece 51 58 45 106 40

47 Guatemala 84 98 71 87 99

48 Guyana 115 117 98 133 62

49 Honduras 78 82 75 89 83

50 Hong Kong SAR 5 9 5 3 43

51 Hungary 64 64 57 115 49

52 Iceland 11 6 17 56 2

53 India 80 53 72 109 100

54 Indonesia 76 68 86 72 87

55 Ireland 32 17 53 47 14 Cont…



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



56 Israel 41 47 37 59 25

57 Italy 58 84 54 100 30

58 Jamaica 97 86 67 130 77

59 Japan 26 26 11 98 22

60 Jordan 47 27 44 111 56

61 Kazakhstan 74 81 76 74 81

62 Kenya 104 93 91 107 108

63 Korea, Rep. 16 28 15 4 26

64 Kuwait 39 48 49 1 75

65 Kyrgyz Republic 124 122 111 128 96

66 Latvia 55 60 58 71 48

67 Lesotho 118 114 125 39 129

68 Libya 75 65 112 6 103

69 Lithuania 46 55 46 52 52

70 Luxembourg 12 13 20 7 31

71 Macedonia, FYR 68 90 89 31 55

72 Madagascar 125 94 114 127 104

73 Malawi 127 51 119 129 120

74 Malaysia 25 30 23 38 23

75 Mali 116 79 107 94 130Cont…



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



76 Malta 40 32 38 68 32

77 Mauritania 130 107 127 126 114

78 Mauritius 50 39 43 117 57

79 Mexico 60 97 68 48 65

80 Moldova 95 92 113 80 89

81 Mongolia 102 121 133 37 94

82 Montenegro 59 59 100 35 42

83 Morocco 67 61 70 84 71

84 Mozambique 131 112 124 112 132

85 Namibia 48 42 33 27 118

86 Nepal 120 120 132 90 107

87 Netherlands 10 10 12 36 11

88 New Zealand 19 8 42 25 5

89 Nicaragua 122 118 128 123 98

90 Nigeria 105 106 120 26 126

91 Norway 14 7 27 17 12

92 Oman 31 19 32 13 80

93 Pakistan 110 95 85 116 116

94 Panama 54 70 55 55 64

95 Paraguay 123 132 130 113 85Cont…



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



96 Peru 94 101 110 67 95

97 Philippines 85 105 92 53 90

98 Poland 70 88 96 50 39

99 Portugal 37 35 26 82 33

100 Puerto Rico 44 44 31 81 38

101 Qatar 21 16 35 19 18

102 Romania 87 89 105 76 66

103 Russian Federation 56 110 59 29 59

104 Saudi Arabia 34 34 41 9 51

105 Senegal 101 83 83 103 109

106 Serbia 88 108 102 86 46

107 Singapore 3 1 4 21 16

108 Slovak Republic 52 73 64 49 44

109 Slovenia 38 49 36 33 21

110 South Africa 69 46 48 63 122

111 Spain 27 43 22 30 35

112 Sri Lanka 92 66 65 132 53

113 Suriname 73 99 99 32 63

114 Sweden 6 4 13 15 8

115 Switzerland 2 5 3 10 17Cont…



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



116 Syria 71 54 74 93 70

117 Taiwan, China 20 40 19 18 20

118 Tajikistan 112 78 101 131 101

119 Tanzania 114 76 118 108 117

120 Thailand 43 57 29 41 58

121 Timor-Leste 128 125 131 73 121

122 Trinidad and Tobago 65 104 63 51 72

123 Tunisia 35 22 34 75 27

124 Turkey 72 80 66 79 78

125 Uganda 129 113 115 92 133

126 Ukraine 86 115 79 91 60

127 United Arab Emirates 17 18 14 24 36

128 United Kingdom 24 25 18 58 19

129 United States 22 29 7 66 34

130 Uruguay 57 45 69 104 54

131 Venezuela 111 134 109 110 74

132 Vietnam 79 71 93 70 84

133 Zambia 121 67 116 102 128

134 Zimbabwe 134 126 88 134 113

The Global Competitiveness Index(Score)

Cont…


PILLERS

BASIC REQUIREMENTS

1. Institution

s

2. Infrastructure


4. Health and primary

education

1 Albania 3.89 3.32 2.22 4.56 5.47

2 Algeria 4.46 3.45 2.96 6.08 5.34

3 Argentina 4.12 2.94 2.92 5.05 5.58

4 Armenia 4.04 3.50 2.87 4.73 5.06

5 Australia 5.75 5.72 5.33 5.66 6.27

6 Austria 5.81 5.72 5.86 5.36 6.28

7 Azerbaijan 4.45 4.05 3.70 5.35 4.72

8 Bahrain 5.31 4.89 4.77 5.78 5.82

9 Bangladesh 3.57 2.98 2.21 4.46 4.63

10 Barbados 5.23 5.19 5.21 4.21 6.32

11 Belgium 5.60 5.15 5.62 5.14 6.50

12 Benin 3.81 3.67 2.56 4.60 4.40

13 Bolivia 3.68 2.66 2.10 4.83 5.13

14 Bosnia and Herzegovina

3.93 3.06 2.20 5.15 5.30

15 Botswana 4.65 4.73 3.96 5.73 4.17

Appendix-II

The Global Competitiveness Index (Score)

Cont…


PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



education

16 Brazil 3.98 3.56 3.15 3.89 5.31

17 Brunei Darussalam 5.30 4.65 4.45 6.33 5.79

18 Bulgaria 4.20 3.28 2.79 5.21 5.53

19 Burkina Faso 3.43 3.82 2.57 3.93 3.42

20 Burundi 3.14 3.03 2.05 3.76 3.70

21 Cambodia 3.72 3.44 2.77 4.39 4.27

22 Cameroon 3.67 3.24 2.32 5.47 3.66

23 Canada 5.84 5.50 6.12 5.36 6.39

24 Chad 2.96 2.54 1.65 4.54 3.09

25 Chile 5.15 4.73 4.59 5.90 5.37

26 China 5.01 4.18 4.22 5.95 5.71

27 Colombia 4.24 3.66 3.07 4.71 5.53

28 Costa Rica 4.45 4.35 2.80 4.73 5.92

29 Côte d’Ivoire 3.64 2.82 3.33 4.93 3.49

30 Croatia 4.69 3.82 3.98 5.10 5.85

31 Cyprus 5.48 5.03 5.17 5.33 6.39

32 Czech Republic 4.85 3.87 4.11 5.37 6.07

33 Denmark 6.14 6.18 6.01 5.92 6.44

34 Dominican Republic 3.90 3.14 3.05 4.80 4.58

35 Ecuador 4.12 2.92 2.54 5.88 5.13

Cont…



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



education

36 Egypt 4.18 4.25 3.74 3.56 5.19

37 El Salvador 4.43 3.46 3.90 5.10 5.26

38 Estonia 5.27 4.85 4.44 5.72 6.08

39 Ethiopia 3.56 3.80 2.66 4.00 3.79

40 Finland 6.18 6.18 5.94 6.01 6.57

41 France 5.76 5.10 6.54 5.04 6.35

42 Gambia, The 4.22 4.73 3.68 4.51 3.96

43 Georgia 4.07 3.89 3.23 4.02 5.14

44 Germany 5.96 5.65 6.65 5.42 6.10

45 Ghana 3.74 4.02 2.98 3.91 4.04

46 Greece 4.66 4.10 4.28 4.37 5.89

47 Guatemala 4.17 3.48 3.47 4.72 5.02

48 Guyana 3.60 3.23 2.76 2.84 5.57

49 Honduras 4.24 3.69 3.29 4.67 5.30

50 Hong Kong SAR 6.05 5.78 6.32 6.26 5.82

51 Hungary 4.43 3.94 3.85 4.20 5.74

52 Iceland 5.80 5.93 5.60 5.17 6.50

53 India 4.23 4.23 3.38 4.32 4.99

54 Indonesia 4.25 3.89 2.95 4.91 5.26

55 Ireland 5.24 5.39 3.95 5.33 6.28

Cont…



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastruct

ure



education

56 Israel 5.06 4.53 4.48 5.15 6.10

57 Italy 4.53 3.68 3.94 4.46 6.04

58 Jamaica 3.95 3.66 3.54 3.25 5.33

59 Japan 5.36 4.99 5.80 4.53 6.11

60 Jordan 4.80 4.98 4.30 4.24 5.67

61 Kazakhstan 4.29 3.71 3.26 4.87 5.30

62 Kenya 3.80 3.54 2.86 4.37 4.43

63 Korea, Rep. 5.71 4.95 5.63 6.15 6.10

64 Kuwait 5.12 4.46 4.16 6.51 5.35

65 Kyrgyz Republic 3.49 3.06 2.51 3.31 5.06

66 Latvia 4.63 4.05 3.81 4.91 5.76

67 Lesotho 3.57 3.26 2.14 5.42 3.44

68 Libya 4.27 3.93 2.47 6.03 4.65

69 Lithuania 4.84 4.19 4.24 5.23 5.69

70 Luxembourg 5.78 5.68 5.38 6.03 6.03

71 Macedonia, FYR 4.42 3.58 2.9 5.51 5.67

72 Madagascar 3.49 3.52 2.41 3.38 4.63

73 Malawi 3.43 4.33 2.27 3.26 3.87

74 Malaysia 5.42 4.91 5.25 5.43 6.11

75 Mali 3.58 3.73 2.55 4.6 3.43

Cont…



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



education

76 Malta 5.08 4.88 4.46 4.97 6.02

77 Mauritania 3.28 3.42 2.1 3.49 4.13

78 Mauritius 4.67 4.68 4.32 4.03 5.66

79 Mexico 4.47 3.49 3.51 5.32 5.55

80 Moldova 3.99 3.55 2.43 4.79 5.19

81 Mongolia 3.87 3.08 1.85 5.44 5.11

82 Montenegro 4.52 4.07 2.72 5.46 5.83

83 Morocco 4.42 4.05 3.5 4.73 5.39

84 Mozambique 3.21 3.27 2.18 4.23 3.15

85 Namibia 4.71 4.59 4.56 5.69 3.99

86 Nepal 3.55 3.13 1.9 4.62 4.54

87 Netherlands 5.81 5.76 5.71 5.45 6.3

88 New Zealand 5.58 5.81 4.37 5.72 6.42

89 Nicaragua 3.54 3.2 2.07 3.86 5.03

90 Nigeria 3.74 3.42 2.24 5.7 3.59

91 Norway 5.76 5.93 4.99 5.83 6.28

92 Oman 5.25 5.21 4.56 5.92 5.31

93 Pakistan 3.67 3.51 2.96 4.17 4.03

94 Panama 4.64 3.88 3.94 5.19 5.56

95 Paraguay 3.51 2.64 1.91 4.22 5.27

Cont…



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



education

96 Peru 4.02 3.45 2.53 4.98 5.1

97 Philippines 4.17 3.44 2.86 5.21 5.17

98 Poland 4.39 3.63 2.77 5.25 5.9

99 Portugal 5.14 4.75 5.07 4.74 6

100 Puerto Rico 4.96 4.56 4.59 4.77 5.92

101 Qatar 5.5 5.47 4.54 5.8 6.18

102 Romania 4.15 3.63 2.56 4.85 5.55

103 Russian Federation 4.54 3.29 3.75 5.55 5.59

104 Saudi Arabia 5.21 4.75 4.39 6.01 5.7

105 Senegal 3.88 3.69 2.97 4.44 4.43

106 Serbia 4.15 3.4 2.68 4.72 5.79

107 Singapore 6.14 6.19 6.39 5.74 6.24

108 Slovak Republic 4.66 3.85 3.64 5.31 5.82

109 Slovenia 5.13 4.4 4.49 5.48 6.15

110 South Africa 4.41 4.55 4.21 5.06 3.84

111 Spain 5.34 4.59 5.3 5.53 5.96

112 Sri Lanka 4.07 3.92 3.6 3.07 5.69

113 Suriname 4.31 3.47 2.72 5.51 5.56

114 Sweden 5.9975 6.05 5.71 5.88 6.35

115 Switzerland 6.14 5.97 6.4 5.97 6.22



PILLERS

BASIC REQUIREMENTS

1. Institutio

ns

2. Infrastructu

re



education

116 Syria 4.38 4.2 3.3 4.61 5.42

117 Taiwan, China 5.53 4.67 5.46 5.82 6.16

118 Tajikistan 3.65 3.74 2.68 3.18 4.99

119 Tanzania 3.61 3.81 2.28 4.34 4.03

120 Thailand 4.97 4.17 4.67 5.41 5.61

121 Timor-Leste 3.42 3.03 1.9 4.88 3.87

122 Trinidad and Tobago 4.43 3.44 3.65 5.25 5.39

123 Tunisia 5.17 5.15 4.56 4.87 6.09

124 Turkey 4.34 3.72 3.54 4.79 5.33

125 Uganda 3.34 3.27 2.36 4.61 3.12

126 Ukraine 4.15 3.26 3.13 4.62 5.59

127 United Arab Emirates 5.67 5.37 5.66 5.72 5.93

128 United Kingdom 5.46 4.99 5.52 5.15 6.17

129 United States 5.5 4.93 6.1 4.99 5.97

130 Uruguay 4.53 4.55 3.5 4.41 5.68

131 Venezuela 3.65 2.41 2.54 4.29 5.36

132 Vietnam 4.23 3.87 2.86 4.91 5.29

133 Zambia 3.54 3.91 2.35 4.45 3.46

134 Zimbabwe 2.88 3 2.9 1.48 4.16

Dependent Dependent VariableVariable

Independent Independent VariablesVariables

CoefficientCoefficientss

T-T-StatisticsStatistics

Adjusted R-Adjusted R-squaresquare

F-F-StatisticsStatistics

Export of Goods Export of Goods (EXG)(EXG)

ConstantConstant -664223.26-664223.26 -5.609-5.609 0.33010.3301 43.37943.379

BCIBCI 181713181713 6.5866.586

Import of Goods Import of Goods (IMG)(IMG)

ConstantConstant 6174.2826174.282 1.8821.882 0.9890.989 3859.1033859.103

GDPGDP 0.0990.099 33.10233.102

EXGEXG 0.5940.594 28.09328.093

Export of Services Export of Services (EXS)(EXS)


INOVINOV 66902.7966902.79 6.3276.327

INSTINST -32215.089-32215.089 -3.123-3.123

Import of Services Import of Services (IMS)(IMS)


GDPGDP 0.0220.022 13.81713.817

MSIZMSIZ 7558.8887558.888 2.992.99

BCIBCI 15463.3215463.32 3.8813.881

Estimated Parameters: Regression Results

Appendix-III

Structure of outputStructure of output

Countries

Gross domestic product

Agriculture

Industry

Manufacturing

Services

$ millions % of GDP

Bangladesh 61987 20 28 17 52

India 911813 18 28 16 55

Pakistan 126836 19 27 19 53

Sri Lanka 26964 16 27 14 56

South Asia 1146716 18 28 17 54

Low Income Group

1618703 20 28 16 52

High Income Group

36794507 2 26 17 72

World 48461854 3 28 18 69

Appendix-IV

Growth of Growth of OutputOutput

Countries

Gross domestic product

Agriculture

Industry

Manufacturing

Services

average annual % growth

Bangladesh 5.6 2.8 7.7 7.3 5.8

India 7.4 2.7 8 7.7 8.9

Pakistan 5.5 2.5 7.9 10 6.1

Sri Lanka 4.8 1.2 4.4 3.5 6.3

South Asia 7 2.7 7.9 7.8 8.2

Low Income Group

6.5 3.1 7.6 7.7 7.6

High Income Group

2.3 0.5 1.4 1.8 2.4

World 3 2.5 2.6 2.9 2.8

Appendix-V

Structure of merchandise exports

Countries

Merchandise

exportsFood

Agricultural

raw material

s

Fuels

Ores and

metals

Manufactures

$ millions % of total

Bangladesh 11802 6 1 0 0 92

India 120254 9 2 11 7 70

Pakistan 16930 12 1 5 1 81

Sri Lanka 6886 22 2 0 4 70

South Asia 157637 11 2 9 6 72

Low Income Group

323066 17 4 15 5 59

High Income Group

8451209 6 2 8 4 77

World 12084582 6 2 11 4 73

Appendix-VI

Structure of service exports

Countries

Commercial

service exports

Transport

Travel

Insurance and

financial services

Computer, information,

communications, and

other commercial

service

$ millions % of total

Bangladesh 603 14.7 13.3 57 66

India 75057 10.2 11.9 4.2 73.7

Pakistan 2246 49.6 11.3 3.7 35.4

Sri Lanka 1604 46.8 25.6 3.6 24

South Asia 80602 19.3 13.7 4.2 62.8

Low Income Group

111021 19.7 18.2 3.5 58.8

High Income Group

2200476 23.4 22.7 8.8 45.1

World 2767235 23.2 27.6 7.5 41.7

Appendix-VII

presentation regional connectivity (final)

Documents

impacts of infrastructure

quality of roads62

competitiveness of nations

definition of competitiveness

factors of competitiveness

view of competitiveness

quality of electricity

stock market