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World Economic Forum Global Competitiveness Report 2004-2005. Please visit the source here
The Global Competitiveness Index (GCI) is a comprehensive tool that measures the microeconomic and macroeconomic foundations of national competitiveness. The Global Competitiveness Report defines competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country. The level of productivity, in turn, sets the level of prosperity that can be earned by an economy. The productivity level also determines the rates of return obtained by investments in an economy, which in turn are the fundamental drivers of its growth rates. In other words, a more competitive economy is one that is likely to sustain growth. The GCI measures 12 pillars: Pillar 1. Institutions, Pillar 2. Infrastructure, Pillar 3. Macroeconomic environment, Pillar 4. Health and primary education, Pillar 5. Higher education and training, Pillar 6. Goods market efficiency, Pillar 7. Labor market efficiency, Pillar 8. Financial market development, Pillar 9. Technological readiness, Pillar 10. Market size, Pillar 11. Business sophistication, and, finally, Pillar 12. Innovation.