Global Competitiveness Report

The Global Competitiveness Report (GCR)[1] is a yearly report published by the World Economic Forum. Since 2004, the Global Competitiveness Report ranks countries based on the Global Competitiveness Index,[1] developed by Xavier Sala-i-Martin and Elsa V. Artadi.[2] Before that, the macroeconomic ranks were based on Jeffrey Sachs's Growth Development Index and the microeconomic ranks were based on Michael Porter's Business Competitiveness Index. The Global Competitiveness Index integrates the macroeconomic and the micro/business aspects of competitiveness into a single index.

The report "assesses the ability of countries to provide high levels of prosperity to their citizens". This in turn depends on how productively a country uses available resources. Therefore, the Global Competitiveness Index measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity."[3][4]

Description

Since 2004, the report ranks the world's nations according to the Global Competitiveness Index,[2] based on the latest theoretical and empirical research.[5] It is made up of over 110 variables, of which two thirds come from the Executive Opinion Survey, and one third comes from publicly available sources such as the United Nations. The variables are organized into twelve pillars,[6] with each pillar representing an area considered as an important determinant of competitiveness.

One part of the report is the Executive Opinion Survey, which is a survey of a representative sample of business leaders in their respective countries. Respondent numbers have increased every year and is currently just over 13,500 in 142 countries (2010).[7]

The report notes that as a nation develops, wages tend to increase, and that in order to sustain this higher income, labor productivity must improve for the nation to be competitive. In addition, what creates productivity in Sweden is necessarily different from what drives it in Ghana. Thus, the GCI separates countries into three specific stages: factor-driven, efficiency-driven, and innovation-driven, each implying a growing degree of complexity in the operation of the economy.

The report has twelve pillars of competitiveness. These are:

  1. Institutions
  2. Appropriate infrastructure
  3. Stable macroeconomic framework
  4. Good health and primary education
  5. Higher education and training
  6. Efficient goods markets
  7. Efficient labor markets
  8. Developed financial markets
  9. Ability to harness existing technology
  10. Market sizeboth domestic and international
  11. Production of new and different goods using the most sophisticated production processes
  12. Innovation

In the factor-driven stage countries compete based on their factor endowments, primarily unskilled labor and natural resources. Companies compete on the basis of prices and sell basic products or commodities, with their low productivity reflected in low wages. To maintain competitiveness at this stage of development, competitiveness hinges mainly on well-functioning public and private institutions (pillar 1), appropriate infrastructure (pillar 2), a stable macroeconomic framework (pillar 3), and good health and primary education (pillar 4).

As wages rise with advancing development, countries move into the efficiency-driven stage of development, when they must begin to develop more efficient production processes and increase product quality. At this point, competitiveness becomes increasingly driven by higher education and training (pillar 5), efficient goods markets (pillar 6), efficient labor markets (pillar 7), developed financial markets (pillar 8), the ability to harness the benefits of existing technologies (pillar 9), and its market size, both domestic and international (pillar 10).

Finally, as countries move into the innovation-driven stage, they are only able to sustain higher wages and a higher standard of living if their businesses are able to compete by providing new or unique products. At this stage, companies must compete by producing new and different goods using the most sophisticated production processes (pillar 11) and through innovation (pillar 12).

Thus, the impact of each pillar on competitiveness varies across countries, in function of their stages of economic development. Therefore, in the calculation of the GCI, pillars are given different weights depending on the per capita income of the nation.[8] The weights used are the values that best explain growth in recent years[9] For example, the sophistication and innovation factors contribute 10% to the final score in factor and efficiency-driven economies, but 30% in innovation-driven economies. Intermediate values are used for economies in transition between stages.

The Global Competitiveness Index's annual reports are somewhat similar to the Ease of Doing Business Index and the Indices of Economic Freedom, which also look at factors affecting economic growth (but not as many as the Global Competitiveness Report). Data from the Global Competitiveness Index relating to the strength of auditing and reporting standards, institutions and judicial independence is used in the Basel AML Index, a money laundering risk assessment tool developed by the Basel Institute on Governance.

Limitations

In spite of the World Economic Forum's Global Risks Report which is increasingly identifying environmental pressures as the dominant risks to humanity, none of the indicators used to determine this report's competitiveness ranking reflect any of the countries' environmental dimensions such as energy, water, climate risks, resource or food security, etc. The Global Competitiveness Report 2018[10] and 2019[11] used the ecological footprint as a context indicator, but the footprint was not included in the scoring algorithm that determines the ranking.

2019 rankings

This is the full ranking of the 2019 report:[11]

Rank Country Score
1  Singapore 84.8
2  United States 83.7
3  Hong Kong 83.1
4  Netherlands 82.4
5   Switzerland 82.3
6  Japan 82.3
7  Germany 81.8
8  Sweden 81.2
9  United Kingdom 81.2
10  Denmark 81.2
11  Finland 80.2
12  Taiwan 80.2
13  South Korea 79.6
14  Canada 79.6
15  France 78.8
16  Australia 78.7
17  Norway 78.1
18  Luxembourg 77.0
19  New Zealand 76.7
20  Israel 76.7
21  Austria 76.6
22  Belgium 76.4
23  Spain 75.3
24  Ireland 75.1
25  United Arab Emirates 75.0
26  Iceland 74.7
27  Malaysia 74.6
28  China 73.9
29  Qatar 72.9
30  Italy 71.5
31  Estonia 70.9
32  Czech Republic 70.9
33  Chile 70.5
34  Portugal 70.4
35  Slovenia 70.2
36  Saudi Arabia 70.0
37  Poland 68.9
38  Malta 68.5
39  Lithuania 68.4
40  Thailand 68.1
41  Latvia 67.0
42  Slovakia 66.8
43  Russia 66.7
44  Cyprus 66.4
45  Bahrain 65.4
46  Kuwait 65.1
47  Hungary 65.1
48  Mexico 64.9
49  Bulgaria 64.9
50  Indonesia 64.6
51  Romania 64.4
52  Mauritius 64.3
53  Oman 63.6
54  Uruguay 63.5
55  Kazakhstan 62.9
56  Brunei 62.8
57  Colombia 62.7
58  Azerbaijan 62.7
59  Greece 62.6
60  South Africa 62.4
61  Turkey 62.1
62  Costa Rica 62.0
63  Croatia 61.9
64  Philippines 61.9
65  Peru 61.7
66  Panama 61.6
67  Vietnam 61.5
68  India 61.4
69  Armenia 61.3
70  Jordan 60.9
71  Brazil 60.9
72  Serbia 60.9
73  Montenegro 60.9
74  Georgia 60.9
75  Morocco 60.0
76  Seychelles 59.6
NEW 77  Barbados 58.9
78  Dominican Republic 58.3
79  Trinidad and Tobago 58.3
80  Jamaica 58.3
81  Albania 57.6
82  North Macedonia 57.3
83  Argentina 57.2
84  Sri Lanka 57.1
85  Ukraine 57.0
86  Moldova 56.7
87  Tunisia 56.4
88  Lebanon 56.3
89  Algeria 56.3
90  Ecuador 55.7
91  Botswana 55.5
92  Bosnia and Herzegovina 54.7
93  Egypt 54.5
94  Namibia 54.5
95  Kenya 54.1
96  Kyrgyzstan 54.0
97  Paraguay 53.6
98  Guatemala 53.5
99  Iran 53.0
100  Rwanda 52.8
101  Honduras 52.7
102  Mongolia 52.6
103  El Salvador 52.6
104  Tajikistan 52.4
105  Bangladesh 52.1
106  Cambodia 52.1
107  Bolivia 51.8
108    Nepal 51.6
109  Nicaragua 51.5
110  Pakistan 51.4
111  Ghana 51.2
112  Cape Verde 50.8
113  Laos 50.1
114  Senegal 49.7
115  Uganda 48.9
116  Nigeria 48.3
117  Tanzania 48.2
118  Ivory Coast 48.1
NEW 119  Gabon 47.5
120  Zambia 46.5
121  Eswatini 46.4
122  Guinea 46.1
123  Cameroon 46.0
124  Gambia 45.9
125  Benin 45.8
126  Ethiopia 44.4
127  Zimbabwe 44.2
128  Malawi 43.7
129  Mali 43.6
130  Burkina Faso 43.4
131  Lesotho 42.9
NEW 132  Madagascar 42.9
133  Venezuela 41.8
134  Mauritania 40.9
135  Burundi 40.3
136  Angola 38.1
137  Mozambique 38.1
138  Haiti 36.3
139  Democratic Republic of the Congo 36.1
140  Yemen 35.5
141  Chad 35.1

2018 rankings

This is the top 30 of the 2018 report:[10]

  1.  United States 85.6 (+1)
  2.  Singapore 83.5 (+1)
  3.  Germany 82.8 (+2)
  4.   Switzerland 82.6 (−3)
  5.  Japan 82.5 (+4)
  6.  Netherlands 82.4 (−2)
  7.  Hong Kong 82.3 (−1)
  8.  United Kingdom 82 (—)
  9.  Sweden 81.7 (−2)
  10.  Denmark 80.6 (+2)
  11.  Finland 80.3 (−1)
  12.  Canada 79.9 (+2)
  13.  Taiwan 79.3 (+2)
  14.  Australia 78.9 (+7)
  15.  South Korea 78.8 (+11)
  16.  Norway 78.2 (−5)
  17.  France 78 (+5)
  18.  New Zealand 77.5 (−5)
  19.  Luxembourg 76.6 (—)
  20.  Israel 76.6 (−4)
  21.  Belgium 76.6 (−1)
  22.  Austria 76.3 (−4)
  23.  Ireland 75.7 (+1)
  24.  Iceland 74.5 (—)
  25.  Malaysia 74.4 (−2)
  26.  Spain 74.2 (+8)
  27.  United Arab Emirates 73.4 (−10)
  28.  China 72.6(−1)
  29.  Czech Republic 71.2 (+2)
  30.  Qatar 71 (−5)

2017–2018 rankings

This is the top 30 of the 2017–2018 report:[12]

  1.   Switzerland 5.86 (—)
  2.  United States 5.85 (+1)
  3.  Singapore 5.71 (−1)
  4.  Netherlands 5.66 (—)
  5.  Germany 5.65 (—)
  6.  Hong Kong 5.53 (+3)
  7.  Sweden 5.52 (−1)
  8.  United Kingdom 5.51 (−1)
  9.  Japan 5.49 (−1)
  10.  Finland 5.49 (—)
  11.  Norway 5.40 (—)
  12.  Denmark 5.39 (—)
  13.  New Zealand 5.37 (—)
  14.  Canada 5.35 (+1)
  15.  Taiwan 5.33 (−1)
  16.  Israel 5.31 (+8)
  17.  United Arab Emirates 5.30 (−1)
  18.  Austria 5.25 (+1)
  19.  Luxembourg 5.23 (+1)
  20.  Belgium 5.23 (−3)
  21.  Australia 5.19 (+1)
  22.  France 5.18 (−1)
  23.  Malaysia 5.17 (+2)
  24.  Ireland 5.16 (−1)
  25.  Qatar 5.11 (−7)
  26.  South Korea 5.07 (—)
  27.  China 5.00 (+1)
  28.  Iceland 4.99 (−1)
  29.  Estonia 4.85 (+1)
  30.  Saudi Arabia 4.83 (−1)

2016–2017 rankings

This is the top 30 of the 2016–2017 report:[13]

  1.   Switzerland 5.81 (—)
  2.  Singapore 5.72 (—)
  3.  United States 5.7 (—)
  4.  Netherlands 5.57 (+1)
  5.  Germany 5.57 (−1)
  6.  Sweden 5.53 (+3)
  7.  United Kingdom 5.49 (+3)
  8.  Japan 5.48 (−2)
  9.  Hong Kong 5.48 (−2)
  10.  Finland 5.44 (−2)
  11.  Norway 5.44 (—)
  12.  Denmark 5.35 (—)
  13.  New Zealand 5.31 (+3)
  14.  Taiwan 5.28 (+1)
  15.  Canada 5.27 (−2)
  16.  United Arab Emirates 5.26 (+1)
  17.  Belgium 5.25 (+2)
  18.  Qatar 5.23 (−4)
  19.  Austria 5.22 (+4)
  20.  Luxembourg 5.2 (—)
  21.  France 5.2 (+1)
  22.  Australia 5.19 (−1)
  23.  Ireland 5.18 (+1)
  24.  Israel 5.18 (+3)
  25.  Malaysia 5.16 (−7)
  26.  South Korea 5.03 (—)
  27.  Iceland 4.96 (+2)
  28.  China 4.95 (—)
  29.  Saudi Arabia 4.84 (−4)
  30.  Estonia 4.78 (—)

2015–2016 rankings

This is the top 30 of the 2015–2016 report:[14]

  1.   Switzerland 5.76 (—)
  2.  Singapore 5.68 (—)
  3.  United States 5.61 (—)
  4.  Germany 5.53 (+1)
  5.  Netherlands 5.50 (+3)
  6.  Japan 5.47 (—)
  7.  Hong Kong 5.46 (—)
  8.  Finland 5.45 (−4)
  9.  Sweden 5.43 (+1)
  10.  United Kingdom 5.43 (−1)
  11.  Norway 5.41 (—)
  12.  Denmark 5.33 (+1)
  13.  Canada 5.31 (+2)
  14.  Qatar 5.30 (+2)
  15.  Taiwan 5.28 (−1)
  16.  New Zealand 5.25 (+1)
  17.  United Arab Emirates 5.24 (−5)
  18.  Malaysia 5.23 (+2)
  19.  Belgium 5.20 (−1)
  20.  Luxembourg 5.20 (−1)
  21.  Australia 5.15 (+1)
  22.  France 5.13 (+1)
  23.  Austria 5.12 (−2)
  24.  Ireland 5.11 (+1)
  25.  Saudi Arabia 5.07 (−1)
  26.  South Korea 4.98 (—)
  27.  Israel 4.98 (—)
  28.  China 4.89 (—)
  29.  Iceland 4.83 (+1)
  30.  Estonia 4.71 (−1)

2014–2015 rankings

This is the top 30 of the 2014–2015 report:[1]

  1.   Switzerland 5.80 (—)
  2.  Singapore 5.65 (—)
  3.  United States 5.54 (+2)
  4.  Finland 5.50 (−1)
  5.  Germany 5.49 (−1)
  6.  Japan 5.47 (+3)
  7.  Hong Kong 5.46 (—)
  8.  Netherlands 5.45 (—)
  9.  United Kingdom 5.41 (+1)
  10.  Sweden 5.41 (−4)
  11.  Norway 5.35 (—)
  12.  United Arab Emirates 5.33 (+7)
  13.  Denmark 5.29 (+2)
  14.  Taiwan 5.25 (−2)
  15.  Canada 5.24 (−1)
  16.  Qatar 5.26 (−3)
  17.  New Zealand 5.20 (+1)
  18.  Belgium 5.18 (−1)
  19.  Luxembourg 5.17 (+3)
  20.  Malaysia 5.16 (+4)
  21.  Austria 5.16 (−5)
  22.  Australia 5.08 (−1)
  23.  France 5.08 (—)
  24.  Saudi Arabia 5.06 (−4)
  25.  Ireland 4.98 (+3)
  26.  South Korea 4.96 (−1)
  27.  Israel 4.95 (—)
  28.  China 4.89 (+1)
  29.  Estonia 4.71 (+3)
  30.  Iceland 4.71 (+1)

2013–2014 rankings

This is the top 30 of the 2013–2014 report:[15]

  1.   Switzerland 5.67 (—)
  2.  Singapore 5.61 (—)
  3.  Finland 5.54 (—)
  4.  Germany 5.51 (+2)
  5.  United States 5.48 (+2)
  6.  Sweden 5.48 (−2)
  7.  Hong Kong 5.47 (+2)
  8.  Netherlands 5.42 (−3)
  9.  Japan 5.40 (+1)
  10.  United Kingdom 5.37 (−2)
  11.  Norway 5.33 (+4)
  12.  Taiwan 5.29 (+1)
  13.  Qatar 5.24 (−2)
  14.  Canada 5.20 (—)
  15.  Denmark 5.18 (−3)
  16.  Austria 5.15 (—)
  17.  Belgium 5.13 (—)
  18.  New Zealand 5.11 (+5)
  19.  United Arab Emirates 5.11 (+5)
  20.  Saudi Arabia 5.10 (−2)
  21.  Australia 5.09 (−1)
  22.  Luxembourg 5.09 (—)
  23.  France 5.05 (−2)
  24.  Malaysia 5.03 (+1)
  25.  South Korea 5.01 (−6)
  26.  Brunei 4.95 (+2)
  27.  Israel 4.94 (−1)
  28.  Ireland 4.92 (−1)
  29.  China 4.84 (—)
  30.  Puerto Rico 4.67 (+1)

2012–2013 rankings

This is the top 30 of the 2012–2013 report:[16]

  1.   Switzerland 5.72 (—)
  2.  Singapore 5.67 (—)
  3.  Finland 5.55 (+1)
  4.  Sweden 5.53 (−1)
  5.  Netherlands 5.50 (+2)
  6.  Germany 5.48 (—)
  7.  United States 5.47 (−2)
  8.  United Kingdom 5.45 (+2)
  9.  Hong Kong 5.41 (+2)
  10.  Japan 5.40 (−1)
  11.  Qatar 5.38 (+3)
  12.  Denmark 5.29 (−4)
  13.  Taiwan 5.28 (—)
  14.  Canada 5.27 (−2)
  15.  Norway 5.27 (+1)
  16.  Austria 5.22 (+3)
  17.  Belgium 5.21 (−2)
  18.  Saudi Arabia 5.19 (+1)
  19.  South Korea 5.12 (+5)
  20.  Australia 5.12 (—)
  21.  France 5.11 (−3)
  22.  Luxembourg 5.09 (+1)
  23.  New Zealand 5.09 (+2)
  24.  United Arab Emirates 5.07 (+3)
  25.  Malaysia 5.06 (−4)
  26.  Israel 5.02 (−4)
  27.  Ireland 4.91 (+2)
  28.  Brunei 4.87 (—)
  29.  China 4.83 (−3)
  30.  Iceland 4.74 (—)

2011–2012 rankings

This is the top 30 of the 2011–2012 report:[17][18]

  1.   Switzerland 5.75 (—)
  2.  Singapore 5.63 (+1)
  3.  Sweden 5.61 (−1)
  4.  Finland 5.47 (+3)
  5.  United States 5.43 (−1)
  6.  Germany 5.41 (−1)
  7.  Netherlands 5.41 (+1)
  8.  Denmark 5.40 (+1)
  9.  Japan 5.40 (−3)
  10.  United Kingdom 5.39 (+2)
  11.  Hong Kong 5.36 (—)
  12.  Canada 5.33 (−2)
  13.  Taiwan 5.26 (—)
  14.  Qatar 5.24 (+3)
  15.  Belgium 5.20 (+4)
  16.  Norway 5.18 (−2)
  17.  Saudi Arabia 5.17 (+4)
  18.  France 5.14 (−3)
  19.  Austria 5.14 (−1)
  20.  Australia 5.11 (−4)
  21.  Malaysia 5.08 (+5)
  22.  Israel 5.07 (+2)
  23.  Luxembourg 5.03 (−3)
  24.  South Korea 5.02 (−2)
  25.  New Zealand 4.93 (−2)
  26.  China 4.90 (+1)
  27.  United Arab Emirates 4.89 (−2)
  28.  Brunei 4.78 (—)
  29.  Ireland 4.77 (—)
  30.  Iceland 4.75 (+1)

2010–2011 rankings

This is the top 30 of the 2010–2011 report:[19]

  1.   Switzerland 5.63 (—)
  2.  Sweden 5.56 (+2)
  3.  Singapore 5.48 (—)
  4.  United States 5.43 (–2)
  5.  Germany 5.39 (+2)
  6.  Japan 5.37 (+2)
  7.  Finland 5.37 (–1)
  8.  Netherlands 5.33 (+2)
  9.  Denmark 5.32 (–4)
  10.  Canada 5.30 (–1)
  11.  Hong Kong 5.27 (—)
  12.  United Kingdom 5.25 (+1)
  13.  Taiwan 5.21 (–1)
  14.  Norway 5.14 (—)
  15.  France 5.13 (+1)
  16.  Australia 5.11 (–1)
  17.  Qatar 5.10 (—)
  18.  Austria 5.09 (–1)
  19.  Belgium 5.07 (–1)
  20.  Luxembourg 5.05 (+1)
  21.  Saudi Arabia 4.95 (+6)
  22.  South Korea 4.93 (—)
  23.  New Zealand 4.92 (–3)
  24.  Israel 4.91 (+3)
  25.  United Arab Emirates 4.89 (–2)
  26.  Malaysia 4.88 (–2)
  27.  China 4.84 (+2)
  28.  Brunei 4.75 (+4)
  29.  Ireland 4.74 (–4)
  30.  Chile 4.69 (—)

2009–2010 rankings

This is the top 30 of the 2009–2010 report:[20]

  1.   Switzerland 5.60 (+1)
  2.  United States 5.59 (–1)
  3.  Singapore 5.55 (+2)
  4.  Sweden 5.51 (—)
  5.  Denmark 5.46 (–2)
  6.  Finland 5.43 (—)
  7.  Germany 5.37 (—)
  8.  Japan 5.37 (+1)
  9.  Canada 5.33 (+1)
  10.  Netherlands 5.32 (–2)
  11.  Hong Kong 5.22 (—)
  12.  Taiwan 5.20 (+5)
  13.  United Kingdom 5.19 (–1)
  14.  Norway 5.17 (+1)
  15.  Australia 5.15 (+3)
  16.  France 5.13 (—)
  17.  Austria 5.13 (–3)
  18.  Belgium 5.09 (+1)
  19.  South Korea 5.00 (–6)
  20.  New Zealand 4.98 (+4)
  21.  Luxembourg 4.96 (+4)
  22.  Qatar 4.95 (+4)
  23.  United Arab Emirates 4.92 (+8)
  24.  Malaysia 4.87 (–3)
  25.  Ireland 4.84 (–3)
  26.  Iceland 4.80 (–6)
  27.  Israel 4.80 (–4)
  28.  Saudi Arabia 4.75 (–1)
  29.  China 4.74 (+1)
  30.  Chile 4.70 (+2)

2008–2009 rankings

This is the top 30 of the 2008–2009 report:[21]

  1.  United States 5.74
  2.   Switzerland 5.61
  3.  Denmark 5.58
  4.  Sweden 5.53
  5.  Singapore 5.53
  6.  Finland 5.50
  7.  Germany 5.46
  8.  Netherlands 5.41
  9.  Japan 5.38
  10.  Canada 5.37
  11.  Hong Kong 5.33
  12.  United Kingdom 5.30
  13.  South Korea 5.28
  14.  Austria 5.23
  15.  Norway 5.22
  16.  France 5.22
  17.  Taiwan 5.22
  18.  Australia 5.20
  19.  Belgium 5.14
  20.  Iceland 5.05
  21.  Malaysia 5.04
  22.  Ireland 4.99
  23.  Israel 4.97
  24.  New Zealand 4.93
  25.  Luxembourg 4.85
  26.  Qatar 4.83
  27.  Saudi Arabia 4.72
  28.  Chile 4.72
  29.  Spain 4.72
  30.  China 4.70

You can find the computation and structure of the GCI pp. 49–50 of the Global Competitiveness Report 2013-2014, Full Data Edition.

See also

  • Competition (companies)
  • List of national quality awards
  • World Competitiveness Yearbook

References

  1. "Global Competitiveness Report 2014-2015 - Reports - World Economic Forum". Global Competitiveness Report 2014-2015.
  2. "Sala-i-Martin, Xavier and Elsa V. Artadi, "The Global Competitiveness Index", Global Competitiveness Report, Global Economic Forum 2004
  3. "Global Competitiveness Network: Frequently Asked Questions". Archived from the original on 2009-03-26. Retrieved 2009-04-17.
  4. "Global Competitiveness".
  5. "Archived copy" (PDF). Archived from the original (PDF) on 2006-10-27. Retrieved 2006-09-27.CS1 maint: archived copy as title (link)
  6. See appendix in Page 47 of the 2011-12 report. http://www3.weforum.org/docs/WEF_GCR_Report_2011-12.pdf
  7. "Archived copy". Archived from the original on 2009-03-26. Retrieved 2009-04-17.CS1 maint: archived copy as title (link)
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  10. "The Global Competitiveness Report 2018" (PDF).
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  14. "Global Competitiveness Report 2015-2016".
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  16. http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf
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  18. "World Economic Forum - Home" (PDF). www3.weforum.org. Retrieved 2 April 2018.
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