Question

Compare and contrast two selected countries with the USA economy. Analyze all 12 pillars for each economy and present them in the table format. Select one major challenge for each of the countries that they should address to improve their competitiveness

Answer 1

Solution

Here,I chose to take the examples of 3 countries - The US,India and Pakistan in order to analyze their economies in terms of their competitiveness.The score represent the level they are on the scale of 1 (lowest) to 7(highest).

SOURCE - World Economic Forum Website

Pillars	US	India	Pakistan
Institutions	4.7	3.8	3.2
Infrastructure	5.8	3.6	2.7
Macroeconomic environment	4.0	4.2	3.2
Health & Primary Education	6.1	5.4	4.0
Higher Education & Training	5.8	3.9	2.8
Goods Market Efficiency	5.1	4.1	4.1
Labor market efficiency	5.3	3.8	3.4
Financial Market Development	5.3	4.3	4.0
Technology Readiness	5.8	2.7	2.8
Market Size	6.9	6.3	4.8
Business Sophistication	5.6	4.2	3.9
Innovation	5.5	1.5	3.1

The US should make it a priority to focus on the improvement in their macroeconomic environment as we can see that they secured their least score 4.0 under this parameter. The US government has to reduce it's national debt.It is presently (i.e.,$15.80 Trillion as of 2018)and is also growing at an alarming rate.The govt.cannot spend money wherever required if most of its revenue is going into servicing the debts.As the fiscal deficit of the Government increases,it limits the government's ability to react to the business cycles.

India should mainly focus on Innovation,Higher education and technology readiness. Among the technology readiness factor it needs improve on the sub-factor of " ICT (Information and Communication Technology) usage.Improving in this area is very essential for enhancing the competitiveness of the Indian Industry.

Coming to Pakistan,Among the factor " Innovation" the sub-factor of " number PCT patents filed per million " Pakistan secures a score of "0",so it needs to seriously focus on that.This has mainly occurred because the population of Pakistan is very huge (denominator in the ratio) and also the number of patents are also not that high(numerator) as it is still a developing country.

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