Oct 17, 2016 Uncategorized Comments Off on Taiwan lags in ‘institutions’ category of competitiveness reports
Taiwan has not performed well in the "institutions " category of the World Economic Forum's (WEF) Global Competitiveness Report over the past five years, the National Development Council (NDC) said Monday.
The "institutions" category rates public institutions, such as ethics and corruption, public trust in politicians, undue influence such as judicial independence.
Corporate ethics and the accountability of private institutions are also gauged.
In the "institutions" category, the ranking dropped to 30th place this year mainly because Taiwan is deemed to have too many administrative laws and regulations, and the government has been spending lavishly. The legal efficiency in solving business disputes and judicial independence also needs to be improved, according to WEF.
In terms of overall ranking, Taiwan ranked 14th place, up one notch from the previous year in the latest competitiveness report released last month.
The WEF assesses the competitiveness of 138 economies based on 114 indicators grouped in there sub-indexes: basic requirements, efficiency enhancers, and innovation and sophistication factors.
To analyze the strengths and weakness of Taiwan's competitiveness, the NDC examined its strong and weak categories in the three sub-indexes over the past five years.
From 2012 to 2016, Taiwan's overall ranking has stayed within the 15th place.
Taiwan has climbed steadily in the basic requirements sub-index, but its ranking in the sub-indexes in efficiency enhancers and innovation and sophistication factors slipped slightly.
The NDC said that the climb in the "basic requirement" ranking is mainly because of government debts having been markedly improved, and the quality of roads, railways and air traffic have risen.
In the efficiency enhancers sub-index, Taiwan's ranking in the "financial market development" category rose, while the other categories dropped, especially the "technological readiness" category, which fell to 30th place.
The ranking in "financial market development" rose mainly because it's easier for Taiwan's business to raise funds and because the banking system is becoming healthier.
The drop in the ranking of "technological readiness" category is because of the indexes of the users of fixed broadband network and the businesses' ability to absorb new technology are lagging behind.
In the sub-index of "innovation and sophistication factors," Taiwan's ranking climbed mainly because of increasing cooperation between Taiwan's academic and business sectors and growing investment by businesses in research and development.
Source: Focus Taiwan News Channel