………………… 75%
1. Property rights ……………………………………………………………….20%
1.01 Property rights
1.02 Intellectual property protection
2. Ethics and corruption …………………………………………………….20%
1.03 Diversion of public funds
1.04 Public trust of politicians
1.05 Irregular payments and bribes
3. Undue influence …………………………………………………………….20%
1.06 Judicial independence
1.07 Favoritism in decisions of government officials
4. Government inefficiency ………………………………………………..20%
1.08 Wastefulness of government spending
1.09 Burden of government regulation
1.10 Efficiency of legal framework in settling disputes
1.11 Efficiency of legal framework in challenging regulations
1.12 Transparency of government policymaking
5. Security ………………………………………………………………………….20%
1.13 Business costs of terrorism
1.14 Business costs of crime and violence
1.15 Organized crime
1.16 Reliability of police services
B. Private institutions ………………………………………….. 25%
1. Corporate ethics …………………………………………………………….50%
1.17 Ethical behavior of firms
2. Accountability ………………………………………………………………..50%
1.18 Strength of auditing and reporting standards
1.19 Efficacy of corporate boards
1.20 Protection of minority shareholders’ interests
1.21 Strength of investor protection 2nd pillar: Infrastructure …………………………………… 25%
A. Transport infrastructure …………………………………… 50%
2.01 Quality of overall infrastructure
2.02 Quality of roads
2.03 Quality of railroad infrastructure
2.04 Quality of port infrastructure
2.05 Quality of air transport infrastructure
2.06 Available seat kilometers
B. Energy and telephony infrastructure ………………… 50%
2.07 Quality of electricity supply
2.08 Fixed telephone lines
2.09 Mobile telephone subscriptions 3rd pillar: Macroeconomic environment………….. 25%
3.01 Government budget balance
3.02 National savings rate
3.03 Inflation
3.04 Interest rate spread*
3.05 Government debt
3.06 Country credit rating 4th pillar: Health and primary education…………… 25%
A. Health…………………………………………………………. 50%
4.01 Business impact of malaria
4.02 Malaria incidence
4.03 Business impact of tuberculosis
4.04 Tuberculosis incidence
4.05 Business impact of HIV/AIDS
4.06 HIV prevalence
4.07 Infant mortality
4.08 Life expectancy
B. Primary education……………………………………………. 50%
4.09 Quality of primary education
4.10 Primary education enrollment rate EFFICIENCY ENHANCERS 5th pillar: Higher education and training………….. 17%
A. Quantity of education……………………………………… 33%
5.01 Secondary education enrollment rate
5.02 Tertiary education enrollment rate
B. Quality of education………………………………………… 33%
5.03 Quality of the educational system
5.04 Quality of math and science education
5.05 Quality of management schools
5.06 Internet access in schools
C. On-the-job training………………………………………….. 33%
5.07 Local availability of specialized research
and training services
5.08 Extent of staff training 6th pillar: Goods market efficiency…………………… 17%
A. Competition…………………………………………………….. 67%
1. Domestic competition……………………………………………. variableg
6.01 Intensity of local competition
6.02 Extent of market dominance
6.03 Effectiveness of anti-monopoly policy
6.04 Extent and effect of taxation
6.05 Total tax rate
6.06 Number of procedures required to start
a business
6.07 Time required to start a business
6.08 Agricultural policy costs
2. Foreign competition………………………………………………..variable g
6.09 Prevalence of trade barriers
6.10 Trade tariffs*
6.11 Prevalence of foreign ownership
6.12 Business impact of rules on FDI
6.13 Burden of customs procedures
6.14 Imports as a percentage of GDP
B. Quality of demand conditions………………………….. 33%
6.15 Degree of customer orientation
6.16 Buyer sophistication 7th pillar: Labor market efficiency…………………….. 17%
A. Flexibility………………………………………………………… 50%
7.01 Cooperation in labor-employer relations
7.02 Flexibility of wage determination
7.03 Rigidity of employment
7.04 Hiring and firing practices
7.05 Redundancy costs
6.04 Extent and effect of taxation
B. Efficient use of talent……………………………………….. 50%
7.06 Pay and productivity
7.07 Reliance on professional management
7.08 Brain drain
7.09 Female participation in labor force 8th pillar: Financial market development………….. 17%
A. Efficiency…………………………………………………………. 50%
8.01 Availability of financial services
8.02 Affordability of financial services
8.03 Financing through local equity market
8.04 Ease of access to loans
8.05 Venture capital availability
B. Trustworthiness and confidence……………………….. 50%
8.06 Soundness of banks
8.07 Regulation of securities exchanges
8.08 Legal rights index 9th pillar: Technological readiness…………………… 17%
A. Technological adoption…………………………………….. 50%
9.01 Availability of latest technologies
9.02 Firm-level technology absorption
9.03 FDI and technology transfer
B. ICT use……………………………………………………………. 50%
9.04 Internet users
9.05 Broadband Internet subscriptions
9.06 Internet bandwidth
2.08 Fixed telephone lines
2.09 Mobile telephone subscriptions 10th pillar: Market size……………………………………… 17%
A. Domestic market size………………………………………. 75%
10.01 Domestic market size index
B. Foreign market size………………………………………….. 25%
10.02 Foreign market size index INNOVATION AND SOPHISTICATION FACTORS 11th pillar: Business sophistication …………………. 50%
11.01 Local supplier quantity
11.02 Local supplier quality
11.03 State of cluster development
11.04 Nature of competitive advantage
11.05 Value chain breadth
11.06 Control of international distribution
11.07 Production process sophistication
11.08 Extent of marketing
11.09 Willingness to delegate authority
7.07 Reliance on professional management
12th pillar: Innovation……………………………………….. 50%
12.01 Capacity for innovation
12.02 Quality of scientific research institutions
12.03 Company spending on R&D
12.04 University-industry collaboration in R&D
12.05 Government procurement of advanced technology products
12.06 Availability of scientists and engineers
12.07 Utility patents
1.02 Intellectual property protection
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