Business Enviornment (Wef)

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Strategies and its impact

Presented by:-

Nikita Pavitran

Nivedita Mudaliar

Reejo Samuel

Sonal Tiwari

BUSINESS ENVIORNMENT


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Member CommunitiesWorld Economic Forum

Communities

Strategic Partners

Industry Partners

Members

Global Growth Companies

Governments, International

Organizations

RepresentativesofCivil Society

Thought Leaders (Religion,

Culture, Science, Academia)

Technology Pioneers

Media

Women Leaders

Young Global Leaders

Social Entrepreneurs


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Objective of the Organization :-

improving the state of the world.

Areas of Engagement

Strengthening Economies

Global Trade & Investment Regime

Poverty & International Aid

Labor & Migration

Economic Imbalances & Systemic Financial Risk

Intellectual Property Regime & Innovation

Enhancing Security

Conflicts

Illicit Trade

Pandemics & Infectious Diseases

Terrorism & WeaponsofMass Destruction

Information Infrastructure & Data Security

New Technologies


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MAJOR CHALLENGES OR PROBLEMS SEEN IN 2009

RELATED TO OPEN TRADE

The deep drop in global trade between 2008 and 2009 represented a real-

world stress test for the global trading system. Some ofthem are asfollows:-

Pricesofwidely traded primary commodities and volume oftrade

was affected by the drop in demand, which the WTO reports fell

by 12.2 percent in 2009.

Decline in importsofsome countries.

Drop in goods trade in comparison toservice trade.

Entry ofnew capacity coincided with savage cutsin trade volumes.

Most critical issue that was hampering the open trade around the

globe was the tariff.

Government ofdifferent countries and their policies were not much

resourceful and effective in promoting global trade.


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Initiatives taken to resolve the

problems in 2010

The Global Redesign pr ocess is integrating the Forums diverse

communities through a series of meetings, reports and activities structured

to promote integrated thinking and develop pr oposals to improve

structures of international cooperation and pr ompting open trade in a wide

range ofareas.

Nine themes have been defined for the Global Redesign Initiative:-

1. Creating a Values Framework

2. Building Sustained Economic Growth

3. Strengthening the International Monetary and Financial System

4. Creating Employment, Eradicating Poverty and Improving SocialWelfare

5. Managing and Mitigating Global Risks

6. Ensuring Health for All

7. Enhancing Global Security

8. Ensuring Sustainability

9. Building Effective Institutionsin an Empowered Society


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STRATEGIES DEVISED BY

FORUM IN 2010 FORPROMOTING OPEN

TRADE

Beside meetings, the foundation produces a seriesofresearch reports

and engagesitsmembersin sectorspecific initiatives.

In the year, 2010 World Economic Forum produced few research

reports which entail ofstrategic tools that can help toidentify the

global market and hence promote open trade. The research reportsproduced are asfollows:-

Global Enabling Trade Report 2010-11

Global Competitiveness Report 2010-11


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Global Enabling Trade Report 2010-11

The Global Enabling Trade Report ismotivated by the view that,

in addition to trade policy, trade is enabled by a broaderset offactors. For thisWorld Economic Forum (WEF) has devised a

strategic tool called EnablingTrade Index (ETI).

The ETImeasures the extent to which individual economies

have developed institutions, policies, and servicesfacilitating

the free flow ofgoodsover borders and to destination.

The structure ofthe Index reflects the main enablersoftrade,

breaking themintofouroverall issue areas, captured in the sub-

indexes:

1. The market access sub-index measures the extent to

which the policy frameworkofthe country welcomes

foreign goodsinto the economy and enables access toforeign

marketsforits exporters.


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Continued

2. The border administration sub-index assesses the extent to

which the administration at the borderfacilitates the entry and exit ofgoods.

3. The transport and communications infrastructure sub-index

takesinto account whether the country hasin place the transport and

communicationsinfrastructure necessary tofacilitate the movement

ofgoods within the economy and across the border.

4. The business environment sub-index looks at the quality of

governance as well as at the over-arching regulatory and security

environment.

Country coverage

The overall country coverage hasincreased from121 to125

economiesin this years ETI. Five new countries were added to the

Index, as relevant data became available: Botswana, Georgia,

Iceland, Montenegro, and Serbia. Unfortunately, Moldova could not

be covered this year, as data from the Survey were not available.


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*India is ranked on 84th position among 125 countries.


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Impact of EnabledTrade Index (ETI)

Singapore continues to lead the ETIrankings. As a small economy, Singapore

has a very open trade policy and exporters

face only a few barriersin target markets.

Greatest improvementsin border

administration, were recorded by Cyprus

(up 18 places, from 47th to 29th) because

ofan improvement in the efficiency ofits

import-export procedures.

Ecuador (up 15 places, from 107th to

92nd), because ofmore efficient customs

administration.


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Global Competitiveness Report

2010-11

The Global Competitiveness Report:

launched in 1979 covering 16 countries;it has

since expanded its coverage to133 countries.

Global Competitiveness IndexDefinition-The set of institutions, policies, and

factors that determine the level of productivity

of an economy.

Goal: to provide a benchmarking tool for

policy-makers and business leaders


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The Global Competitiveness Index

Framework

Key for

efficiency-driveneconomies

Key for

factor-driveneconomies

1. Institutions

2. Infrastructure

3. Macroeconomic stability

4. Health and primary education

5. Higher education and training

6. Goods market efficiency

7. Labor market efficiency

8. Financial market sophistication

9. Technological Readiness

10. Market size

11. Business sophistication

12. Innovation

Key for

innovation-driveneconomies

BASIC REQUIREMENTS

EFFICIENCY ENHANCERS

INNOVATION & SOPHISTICATIONS FACTORS


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Top 11 countries in GCI

Ranking

*India is on 51st ranking among 135 countries


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Analysis of India on the basis of Global

Competitive Index in 2010


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Why India is ranked on 51st Rank?


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Why Switzerland Ranked 1st in GCI?


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Comparison ofboth countries


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CONCLUSION

Against this background, by ranking countries according to the

barriers to trade they currently have in place, The Global Enabling

Trade Report and Global Competitiveness Report provides

key information on one specific set ofmeasures that could facilitate

recovery.

These Reports were intended to be a motivatorfor change and afoundation for dialogue, by providing a yardstickofthe extent to

which countries have in place the factors that facilitate the free flow

ofgoods and identifying areas where improvements are most

needed.

So by the above mentioned strategic tools and reportsWorldEconomic Forum tried to promote open trade around the globe.


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Documents

Business Enviornment (Wef)