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Taiwan Drops 2 Notches to 14th in GCI for 2014: WEF

2014/09/17 | By Judy Li

Taiwan has fallen two notches from a year earlier to globally 14th this year in the global competitiveness index (GCI) compiled by the Switzerland-based World Economic Forum (WEF).

The WEF has for many years been assessing the productive potential of nations and regions. This year WEF assessed 144 global economies and showed Taiwan at 14th, the worst ranking in six years. In Asia Taiwan is ranked No. 4, next to Singapore (No. 2), Japan (No. 6), and Hong Kong (No. 7); but ahead of Malaysia (No. 20), South Korea (No. 26) and China (No. 28).

Taiwan's National Development Council (NDC) indicates that Taiwan's GCI ranking dropped to 17th in 2008 when the global financial tsunami occurred and bounced back to either No. 12 or No. 13 in the following five years and then descended to No. 14 this year.

With three main sub-indexes and 12 parameters, the GCI shows an overall picture of  competitiveness of national economy. The three main sub-indexes are basic requirements, efficiency enhancers, and innovation & sophistication factors; while the 12 parameters  include institutions, infrastructure, macroeconomic stability, health & primary education, higher education & training, goods market efficiency, labor market efficiency, financial market sophistication, technological readiness, market size, business sophistication, and innovation.

Thanks to the improvement of such infrastructures as marine transportation, railway and telecommunication, Taiwan's ranking advanced two notches in basic requirements this year, but  dropped one position to No. 16 in efficiency enhancers and tumbled four places to No. 13 in innovation & sophistication factors.

NDC emphasizes that the government will refer to WEF's assessment to improve weaknesses and revise outdated rules and regulations to create a freer and better investment and marketing environment. (JL)

Taiwan's GCI Ranking by WEF (2010-2014)
Main sub-index

2014

2013

2012

2011

2010

Basic requirements

14

12

13

13

13

Efficiency enhancers

16

15

12

16

16

Innovation & sophistication factors

13

9

14

10

7

Source: NDC

WEF's GCI Rankings of Taiwan & Asian Trade Rivals (2010-2014)
Year

Taiwan

South Korea

Japan

China

2010

13

22

6

27

2011

13

24

9

26

2012

13

19

10

29

2013

12

25

9

29

2014

14

26

6

28

Source: NDC