& Investment Randall Krantz, Strategy Adviser Bosnia and herzegovina MIT Center, School of economics and Business in Sarajevo, University of Sarajevo Zlatko Lagumdzija, Professor Zeljko Sain, Executive director Jasmina
Technical and Marketing Director and Analyst Habib Sy, Director Général Mauritius Board of Investment, Mauritius Manaesha Fowdar, Investment Executive, Competitiveness Khoudijah Maudarbocus-Boodoo
Al-Ismaily, Chairman Public Authority for Investment Promotion and Export Development (ITHRAA) Azzan Qassim Al-Busaidi, Director General, Research & E-Services Pakistan
Uruguay Bruno Gili, Professor Isidoro Hodara, Professor Venezuela CONAPRI The Venezuelan Council for Investment Promotion Litsay Guerrero, Economic Affairs and Investor Services Manager
especially if productivity-enhancing investment levels do not manage to pick up. Investment and the recovery more broadly will also be influenced by the fact that low inflation,
or even deflation, in key advanced economies remains a tangible risk that could derail recovery
increasing the burden of public debt and leading to a stagnation of consumption and investment rates.
new actions in terms of engaging in much-needed structural reform and productivity-enhancing investments are required. These measures are not only important,
The productivity level also determines the rates of return obtained by investments in an economy,
it is also one of the central determinants of its return on investment, which is one of the key factors explaining an economy's growth potential.
engendering theories ranging from Adam smith's focus on specialization and the division of labor to neoclassical economists'emphasis on investment in physical capital and infrastructure, 2 and, more recently, to interest in other mechanisms such as education and training, technological
and growth. 4 It influences investment decisions and the organization of production and plays a key role in the ways in which societies distribute the 2014 World Economic Forum The Global Competitiveness Report 2014 2015 5 1. 1:
openness to trade and foreign investment; simple and transparent business regulation is the primary lesson for good public policy, at both national and municipal levels.
Cities should develop their own foreign economic policies on trade, foreign investment, tourism, and attracting foreign talent,
Investment in the provision of health services is thus critical for clear economic, as well as moral, considerations. 11 In addition to health, this pillar takes into account the quantity
competitiveness is hindered by distortionary or burdensome taxes and by restrictive and discriminatory rules on foreign direct investment (FDI)
It channels resources to those entrepreneurial or investment projects with the highest expected rates of return rather than to the politically connected.
Business investment is also critical to productivity. Therefore economies require sophisticated financial markets that can make capital available for private-sector investment from such sources as loans from a sound banking sector
well-regulated securities exchanges, venture capital, and other financial products. In order to fulfill all those functions, the banking sector needs to be trustworthy and transparent,
In particular, it means sufficient investment in research and development (R&d), especially by the private sector; the presence of high-quality scientific research institutions that can generate the basic knowledge needed to build the new technologies;
and that can stimulate a constructive dialogue to catalyze the needed reforms and productive investments.
Very high public and private investments in R&d (3rd), with very strong linkages between universities and industry (1st) coupled with an excellent education
Further investment in infrastructure (38th) would also be warranted, as transport infrastructure in particular is not yet up to Western European standards (58th).
and an insufficient capacity to innovate (60th) the result of low R&d investments (52nd) and weak university-industry collaborations (57th).
affects their investment capacity. In addition, as already mentioned, the labor market remains very rigid (136th) and unable to make an efficient use of the country's talent (130th).
That will require improvements in the quality of its education system (111th) as well as higher investments in knowledge-generating activities, such as R&d (114th.
along with investment rules, greatly limit competition. China is becoming more innovative (32nd), but it is not yet an innovation powerhouse.
This rate is probably too high in light of the need for China to rebalance its economy away from investment and toward more consumption.
Despite the persistence of bottlenecks, the country also boasts good transport infrastructure and connectivity (21st), thanks to decades of massive investments.
However, market competition remains limited by a number of barriers to entry, especially those affecting foreign investments.
But for these types of investments to materialize, the institutional framework needs to improve. There are encouraging signs.
Overall, the region continues to suffer from strong headwinds related to weak investments, a fall in exports and commodity prices,
A lack of sufficient investments in growth-enhancing areas such as infrastructure, skills development, and innovation, coupled with insufficient and delayed reforms needed to improve business conditions
The need to boost competitiveness by undertaking the necessary investments and by fully and efficiently implementing structural reforms has become not only important
This difficulty together with low innovation investment, especially in the private sector (77th) results in a poor innovation capacity overall (76th),
and ease the flow of financing toward productive investments will be crucial to allow the country to recover the ground lost since the beginning of the crisis. On a more positive note,
and engaging in productive investments (see Box3). This approach is not only important but has become urgent for reinforcing Brazil's resilience.
and better public investment but also a decisive recognition on the part of Colombian firms of the need to innovate by undertaking the right set of investments in areas such as R&d (84th) as well as on-the-job training schemes (73rd) and ICT
Going forward, putting the country on a more stable development path will require further investment to boost health and educational outcomes (38th on the health and primary education pillar.
Jordan could also benefit from more openness to international trade and investment, which would trigger further efficiency gains in its domestic economy
including making critical investments across all modes of infrastructure (128th), establishing a regulatory framework that encourages competition to foster economic diversification,
and enhanced smart investments in both advanced and emerging economies in order to accelerate robust economic growth, create productive jobs,
and provide the effort that can lead to the necessary reforms and productive investments across a vast array of areas.
At the same time, the business community does not always sufficiently engage in long-term and often risky investments in areas such as research and development
the positive spill over effects of their investments could result in higher societal gains. Fortunately, stakeholders are increasingly acknowledging the need to address this disconnect between public-and private-sector actions.
OECD, and UNDP 2014.27 IMF 2014b.28 The Central bank's bailout of African Bank Investments on August 11, 2014, is reflected not in the EOS data this year,
Infrastructure Investment: A Review Essay. Journal of Economic Literature 32 (3): 1176 96. Grossman, G. and E. Helpman. 1991.
Investment in Human Capital. American Economic Review 1 (2): 1 17. Schumpeter, J. 1942. Capitalism, Socialism and Democracy.
which, in turn, determines the rate of return of investment in an economy. As a result, most theories would predict the GCI to be positively related to an economy's growth rate.
if all countries had the same investment and population growth rates and the same levels of productivity,
Domestic competition is the sum of consumption (C), investment (I), government spending (G), and exports (X),
10 and in the number of financial management firms signing on to the United Nation's Principles for Responsible Investment. 11 Companies are also taking action on issues that may impact the sector in
investments in capital expenditures for emission reduction can generate business opportunities for new sectors Climate change is perceived already as one of the environmental challenges with the most far-reaching and most severe negative impact on human well-being,
efforts to reduce pollution may be interpreted as an investment in human capital. Recent empirical evidence has indicated that, in the United states,
otherwise go into productivity-enhancing investments in for example, education or innovation. Biodiversity for innovation. Ultimately, environmental degradation can impact the way ecosystems work
and investment, reinforcing business and political ethics, promoting gender parity, reviewing fiscal policy (tax code and social protection),
26 second, inequality can lead to reduction in human capital investments; 27 third, it may require more redistributive efforts,
The Organisation for Economic Co-operation and Development (OECD) estimated that the finance gap (the amount of investment necessary to achieve the MDGS by 2015) was approximately US$120 billion a year,
Providing protection also leads to a sense of financial security that enables individuals to undertake investments and entrepreneurial risk,
Recognizing that multi-stakeholder collaboration is vital for creating the confidence necessary to undertake the investments to build more sustainable economies,
see https://www. cdp. net/en-US/Pages/Homepage. aspx. 11 For information about the Principles for Responsible Investment,
World Investment Report 2014: Investing in the SDGS: An Action Plan. Geneva: United nations Publication. UNDP (United nations Development Programme.
Foreign Trade and Investment VII. Domestic Competition VIII. Company Operations and Strategy IX. Government and Public Institutions X. Education and Human Capital XI.
or discourage foreign direct investment (FDI)? 1=strongly discourage fdi; 7=strongly encourage fdi 2013 14 weighted average SOURCE:
2. 7 9. 03 FDI and technology transfer To what extent does foreign direct investment (FDI) bring new technology into your country?
National savings equals gross domestic investment plus the current-account balance. Sources: International monetary fund, World Economic Outlook Database (April 2014 edition;
except for equity and investment fund shares, financial derivatives, and employee stock options. For Australia, Belgium, Canada, Hong kong SAR, Iceland, New zealand,
or discourage foreign direct investment (FDI)? 1=strongly discourage FDI; 7=strongly encourage FDI 2013 14 weighted average Source:
World Economic Forum, Executive Opinion Survey 9. 03 FDI and technology transfer To what extent does foreign direct investment (FDI) bring new technology into your country?
His areas of expertise include international trade and competitiveness, institutions and development, investment flows, and financial stability.
where he conducted research on the attractiveness of Italian provinces for foreign direct investments, focusing on the role of institutions
but instead depends on undertaking the right investments and creating the right condition for it. Despite a drop of two places, the United kingdom continues to exhibit a very strong performance in 9th position.
which requires significant investment over many years. Policymakers should pay particular attention to environment readiness.
The NRI facilitates the identification of areas where policy intervention through investment including public-private partnerships
but instead depends on undertaking the right investments and creating the right condition for it. With the most pronounced improvement among the top 10, Hong kong SAR climbs six positions to 8th place.
Coupled with other innovation-related investments, such as research and development (R&d) and a favorable business environment (23rd), this results in a good technological performance both in the ICT sector (13th) and in the economy
and for the European commission's effort to build a common Digital Agenda that stimulates a virtuous circle of investment in ICT infrastructure, higher uptake levels,
and to encourage an effective integration of ICTS with other sources of innovation, such as R&d investments or higher levels of on-the-job training.
Addressing these weaknesses and integrating ICT investments better with other innovationenhancing investments, such as R&d, would result in more robust economic outputs,
but further investment in infrastructure and digital content (71st) are needed to ease access and foster even higher economic and social impacts.
both through investment in capacity building and infrastructure and through a more open and creative environment that could foster new ideas and business models.
while the country's infrastructure (104th) demands sustained investments to support the ICT sector adequately.
and access to it, coupled with better conditions and interaction with other innovation-related investments such as education, training,
Going forward, strengthening its innovation system through more and more efficient investments to foster the scientific and technological capacity of the country will be important to increasing the share of its population working at knowledgeintensive jobs (67th)
channeling many of the fossil fuel revenues toward ICT investments as a strategy to diversify their economies
however, may require concurrent investment in resources to manage the rise in data. It is forecasted that by 2020,
A 2013 Gartner survey found that less than 8 percent of companies surveyed have deployed actually big data technology. 5 Investment in forthcoming projects is much more widespread;
For example, over 40 percent of chief information officers in the middle East, according to IDC, are considering big data technology investment in 2013.
IDC forecasts investment in this area to grow at a compound annual growth rate of over 20 percent over the coming five years. 7 Both expenditure
The path to business model transformation, the highest level of maturity, promises potential high returns but often involves major investment over many years.
Quick wins Organizations should resist expensive upfront infrastructure investments for overly ambitious big data projects. Instead, they should select opportunities for high business impact
Largescale investment is flowing into establishing big data capabilities in many organizations, despite the limited number of cases in which it has been used successfully in completed projects and initiatives.
A 2004 OECD paper estimates that inflation-adjusted investment in ICTS accounted for an average of 0. 5 percentage points of annual growth in real GDP in OECD countries between 1995 and 2001.3 This represents about 20
And a 2002 OECD study demonstrated that corporate investment in networked computer systems is associated consistently with increased labor productivity for example,
ICT Investment in OECD Countries and its Economic Impacts. In The Economic Impact of ICT:
in order to ensure a certain environment that is conducive to investment and market growth. In the next sections we propose several options for regulators
Available at http://www. apec. org/Groups/Committeeon-Trade-and-Investment//media/Files/Groups/ECSG/05 ecsg privacyframewk. ashx.
Reestablishing the European union's Competitiveness with The next Wave of Investment in Telecommunications. In The Global Information technology Report:
given their other investments and their information technology (IT) usage. 29 Another study has shown that the use of Internet computing tools can also help firms reach decisions more efficiently, across a broad range of industries,
as they allow firms of all sizes to leverage data-driven analysis without needing to make huge investments in their IT infrastructure. 30 As is the case for businesses,
An organization should make The Global Information technology Report 2014 87 2014 World Economic Forum a big data investment
It is virtually impossible for big data investments to deliver value if business leaders do not have driven a data mind-set that is,
'Are our investments in customer service paying off? What is the optimal price for our product right now?
these are usually the right places to direct initial investments (see Figure1). Step 5: Match big data initiatives with compatible business functions.
Is the extra business value worth the additional investment of time, energy, and money? Step 7:
the investments required for scaling technologies (such as processors, storage, database management systems, and analytics) to perform efficiently grow even faster.
and technology and has led engagements in the areas of telecommunications-sector strategy development, policymaking and regulatory management, digitization, business development and strategic investments,
Bhutan Bhutan Chamber of commerce & Industry Sherab Lhamo, Research Officer Phub Tshering, Secretary general Druk Holding & Investment Randall Krantz, Strategy Adviser Bosnia and herzegovina MIT
and Marketing Director and Analyst Habib Sy, Director Général Mauritius Board of Investment, Mauritius Manaesha Fowdar, Investment Executive, Competitiveness Khoudijah Maudarbocus-Boodoo, Director
Research Foundation Salem Ben Nasser Al-Ismaily, Chairman Public Authority for Investment Promotion and Export Development (PAIPED) Mehdi Ali Juma, Expert for Economic
Uruguay Bruno Gili, Professor Isidoro Hodara, Professor Venezuela CONAPRI The Venezuelan Council for Investment Promotion Litsay Guerrero, Economic Affairs and Investor Services Manager
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