Latin America
and the Caribbean remain low in productivity. In other to keep up the positive
economic momentum and boost its competitiveness, this region needs to implement
further structural reforms. They have to strengthen its investment in
infrastructure, skills development and innovation. This fact is according to
the report from Global Competitiveness Report from the latest World Economic
Forum that covers 144 economies and ranks them on 12 key measures that
influence competitiveness.
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| image source: latinlink.com |
Even most
countries in this region is considered as low in productivity, still there are a
number of countries that able to manage their economic performance well. Hence,
they still attain competitiveness. Here are the lists of top ten best performers’
country that have impressive competitiveness in the region according to Global
Competitiveness Report 2014.
1.
Chile
Chile remains the best performers’ country in Latin America
with high competitiveness. This is according to the excellent factor including a
strong institutional set-up, an efficient government, low levels of corruption
and also boasts solid macroeconomic stability with a small public deficit and
low public debt. Chile’s markets are overall efficient. However, there are some
rigidities in labor market due to persistently high redundancy costs. These are
home affairs that Chile must move towards to attain more knowledge-based
activities and diversify its economy due to the decline of the minerals price. Moreover,
Chile’s education systems are generally low, together with low levels of
investment in innovation; these problems could jeopardize Chile’s transition
towards a knowledge-based economy.
2.
Panama
Panama comes after Chile as the best performers’ country in
Latin America. Panama is known with some of the best port and airport
facilities in the world. These impressive infrastructures prove to be a strong
adopter of technology. However, Panama just experiences a fall in the global
rankings regarding this country’s ability to fight corruption, just like Chile.
This corruption matter, together with lack of skill shortage brings Panama into
a slight dip in perceptions of its institutions.
3.
Costa
Rica
Costa Rica continues to be the best
performers’ country in Latin America. Costa Rica has a very stable profile and
strong institutions in the past year. Costa Rica has a success story about one
of the best education systems in the region. Costa Rica has a fairly high ICT
uptake and a reasonably well-developed capacity to innovate that able to move
towards knowledge-based activities. However, unlike Panama, Costa Rica has a
poor transport infrastructure that could jeopardize its overall competitiveness.
Moreover, its macroeconomic performances are considered low with high budget
deficit.
4.
Barbados
Barbados ranks in the
fourth line as the best performers’ country
in Latin America. This is actually sadness because Barbados has just slipped eight places down
the global rankings. The global financial crisis brings Barbados continues to
suffer the consequences. The credit crunch is hindering the capacity of local
businesses to develop innovative projects because not able to finance their
activities. Barbados has one of the highest public deficits in the world, one
of the lowest savings rates and high public debt that could be persistent
weakness of its macro economy. However, Barbados has a fairly skilled labor
force due to a high-quality education system together with high enrolment rates
in secondary and tertiary education. Barbados also experiences a high
competitiveness in case of solid infrastructure and generally well-functioning
institutions.
5.
Brazil
Brazil is the best fifth performers’ country in Latin America. Even though, it drops one position in the global
rankings this year to 57th. Brazil competitiveness is generally due to the large
market size and its fairly sophisticated business community. Brazil is
excellence in many research-driven innovation and high-value-added activities. However,
the drop of international price of commodities and potential outflows of capital
being a major problem for Brazil. Brazil gets insufficient progress in fixing
its poor transport infrastructure, and a perceived deterioration in the
functioning of institutions. Macroeconomic performance of Brazil has had a
weaker this year and further tightening of financial access. Moreover, poor
education system of Brazil is still failing to provide skillful workers for an
economic transition to more knowledge-based activities.
6.
Mexico
Mexico manages to be the best performers’ country in Latin
America. Mexico has a high competitiveness including good transport
infrastructure, large internal market and a stable macroeconomic environment. Interestingly,
Mexico also has a number of sophisticated businesses that uncommon for a
country at its stage of development. In the past years, Mexico made important
structural reforms aimed to increase the level of competition and efficiency of
its markets, though the benefits of these have not yet materialized. There has
been a fall in the perceived functioning of Mexico’s institutions. Moreover, the
Mexican education system does not seem to deliver the skills that its changing
economy requires.
7. Peru
Peru’s competitiveness gains to be the best performers’ country
in Latin America. It is driven by a very strong macroeconomic performance and
highly efficient financial. While the labor markets seem to be losing momentum.
Peru is hindering by the concerns about functioning of its institutions, along
with insufficient progress to improve the educations quality and lifting levels
of technological adoption. Although, the rise of the minerals price recently,
has benefited Peru. The country should still build its strength in most
long-lasting challenges in its public institutions including government
efficiency, fighting corruption and improving infrastructure.
8. Colombia
Colombia climbs three positions in the global rankings
this year and become the eight best performers’ country in Latin America. This success
is because of the increase in its level of technological adoption and the infrastructure
development. However, Colombia needs more progress in infrastructure. After the
high level of corruption, Infrastructure is still the second most problematic
factor for doing business in Colombia. Moreover, Colombia must improve its
education system and foster an environment that fuels innovation. However,
Colombia has stable macroeconomic conditions.
9.
Guatemala
Guatemala attains a great deal in this year that it able
to climb eight places to the middle of the global rankings this year. This successful
is due to improvements in its level of competition in the goods market. Colombia
has managed to build a better infrastructure and reduce of red tape for new
businesses. However, more progress here must be made to increase more its
competitiveness.
10.
Uruguay
Uruguay has improved its performance this year globally
and managed to join in the best performers’ country in Latin America. GDP per
capita has been growing at a faster rate than the regional average for several
years. Uruguay performs well on measures relating to its education system, institutions
and technological readiness. However, restrictive labor regulations are still the
biggest obstacle to do business in Uruguay.
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