Policymakers must avoid complacency and press ahead with the structural reforms and critical investments required to ensure that their countries can provide a prosperous environment and employment for their citizens. According to the Global Competitiveness Report 2013–2014, policy makers ought to identify and strengthen the transformative forces that will drive future economic growth.
“It is therefore vital that leaders from business, government, and civil society work collaboratively to create an enabling environment to foster innovation and in particular, to create appropriate educational systems,” says the report.
The report was released early this month was compiled by the World Economic Forum (WEF) in consultation with partner organisations and institutions from more than a hundred countries across the world including Kenya’s Institute for Development Studies, University of Nairobi, Paul Kamau, Senior Research Fellow Dorothy McCormick, Research Professor Winnie Mitullah and Director and Associate Research Professor.
Other countries in Africa that participated in the research included Ethiopia, Tunisia, Tanzania, Uganda and Rwanda. The Global Competitiveness Report 2013–2014 is also a vital tool that developing countries could use to compare growth patterns with developed countries and stronger economies.
“The Report contributes to an understanding of the key factors that determine economic growth, helps to explain why some countries are more successful than others in raising income levels and providing opportunities for their respective populations, and offers policymakers and business leaders an important tool for formulating improved economic policies and institutional reforms.
Going forward, the World Economic Forum will continue these efforts by collecting public-private practices that have proven useful in increasing competitiveness in countries around the world,” reads the report in part. Policymakers, thus, must identify and strengthen the transformative forces that will drive future economic growth.
Particularly important will be the ability of economies to create new value-added products, processes, and business models through innovation. According to the Economic Survey 2013, the growth rate of the global economy dropped from 3.9 per cent in 2011 to 3.2 per cent in 2012.
This drop, the report says, was triggered by the increase in oil prices in the international markets, the economic turmoil in the euro zone as well as slowed growth in emerging markets and developing economies due to weak demand from advanced economies. World Bank’s Global Monitoring Report 2012 estimates that Kenya’s poverty index stands at 44 to 46 percent. - By LILIAN KAIVILU