Namibia's Global Competitiveness

**Comrade007** · 9th October 2008, 08:09 PM

Turns out we are ranked 83rd out of 134 countries globally in terms of oureconomic competitivenes according to the Global Competitiveness Report (GCR) 2008/9 released Wednesday by the World Economic Forum (WEF).

That's one place above Egypt (81) and one below El Salvador (79). It's also better than countries such as Argentina (88), Ghana (102), Zambia (112), Tanzania (113), Uganda (128) and the second lowest ranked Zimbabwe (133). The Chad is the lowest ranked country at 134.

The top ten countries were:

1. US
2. Switzerland
3. Denmark
4. Sweden
5. Singapore
6. Finland
7. Germany
8. Netherlands
9. Japan
10. Canada

I wonder how and when these rankings will change following the financial crisis sweeping our globe.

In 2007/8 we were ranked 89th, so that's an improvement. The most problematic factors for doing business in Namibia were listed as (in percent of responses):

Inadequately educated workforce: 19.4
Restrictive labor regulations:15.1
Poor work ethic in national labor force: 13.6
Inefficient government bureaucracy:12.7
Inflation: 6.5
Access to financing: 6.4
Tax rates: 6.4
Corruption:5.4
Crime and theft: 4.9
Inadequate supply of infrastructure: 4.2
Poor public health: 2.2
Tax regulations: 2.0
Foreign currency regulations: 1.1
Policy instability: 0.2
Government instability/coups: 0.0

That makes for depressing reading because employers have now been saying for years that the Government needs to relax the very restrictive labour regulations and allow them to hire foreign experts and skilled labour. It does appear this message is falling on deaf ears. What is very clear is that the closed and protected labour market is not only hurting our competitiveness, but also our potential for development. Government needs to seriously its policies in this regard. It is not tenable in an internaitonal environment where talented and skilled people are highly mobile.

The fact that poor work ethic is also indicated as highly problematic means that we are - well - perceived to be not the most hard-working nation on earth, and consequently neither the most competitive or the most productive. In terms of innovation we are doing badly (111th), and health and primary education too (118th).

But it's not all bad news. We are ranked 33rd out of 134 in terms of Infrastructure, and 42nd in terms of basic requirements. As far as macroeconomic stabilities goes we are doing quite well and are rated 27th out of 134. That's better than South Africa, which was scored 63rd in this category.

South Africa was ranked 45th globally in terms of its economic competitiveness, and has topped the rankings for sub-Saharan Africa.

Attached is the full report and the full rankings. Very interesting indeed.

**Rafiki** · 10th October 2008, 10:41 AM

Why do you bash your country? All this negativity? Why? Are you not patriotic? Do you want Namibia to fail?

**Comrade007** · 10th October 2008, 12:57 PM

My friend - I am a patriot. Rafiki - I love my country and I want it to succeed. I want it to develop and be a success. To face the facts as they are, to face the truths about our country, to speak openly about the problems - whether real or preceived - is the RIGHT and PROPER thing to do. How would it otherwise be possible to make plans for the future? If we stick our head in the sand and pretend everything is OK, where will that get us? To plan for the future, to develop, to change we have to know where we are now as a point of departure. If we are not honest about where we are now, then how can we ever get to a point somewhere in the future where we know that things are progressing, or regressing? I reject this link between criticism and being unpatriotic. Actually, I think ti is exactly the opposite. I you care about something, if you love something, you have to be able to see it for what it is. So, Rafiki , my post is not about bashing Namibia - it is about facing the problems and then doing something about them.

**Galaxy** · 11th October 2008, 10:45 PM

Namibia's score on macro-economic stability is really good and a positive reflection of where the cuntry is heading. To quote Wikipedia: "A credible commitment to low levels of inflation and a stable debt reduces the risk that the value of the debt will be eroded by higher levels of inflation or default in the future, allowing debt to be issued at a lower nominal interest rate." The commitment by Namibia's Government in this respect is considred to be credible, which is comendable and unlike many other African countries. Basically macroeconomic stability relfects a situation situation in which a country has low inflation accompanied by falling budget and trade deficits and a low rate of expansion of the money supply.

**Uncle Paul** · 16th October 2008, 03:11 PM

80 is better than 140, ad it is an improvement. Where Government has made a difference in this respect, it deserves credit. But that it could be better is also true. So let us remember that a lot of work remains to be done to get us into the top 10.

visio dei · 7th November 2008, 05:28 PM

Uncle Paul, forgive me, but "So let us remember that a lot of work remains to be done to get us into the top 10." must be the understatement of the millennium. Dream on, dear uncle, dream on!

**Uncle Paul** · 19th November 2008, 07:43 AM

This issue of not providing foreign professionals and experts in their respective fields with work and resident permits in our country is on the top of many business people's minds.

Just the other day I had a conversatino with a very prominent businessman who told me that he was nor able to get available and willing experts into the country although no Namibian was available to fill the job as far as experience and actual and proven skills are concerned.

This does real damage to the potential for growing our economy, and it is extremely short-sighted and unhelpful. What we need is realistic and flexible labour market regulations that allow businesses to hire foreign workers when and where there are clearly and obviously no Namibians who can take up the challenge.

I am sure the current law as it is applied by Government is a damper on economic growth at the moment. It is also something clearly identified by the rankings, and judging by how members are voting something they are also aware of.