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Russia has still a long way to go to improve its investment appeal, says the 2012-2013 Global Competitiveness Report published annually by the World Economic Forum. In fact, it edged down one position from 66th place held last year. According to the report, such a low standing is accounted for by poor performance across almost all key indicators.
The country suffers from inefficiencies in the goods (134th), labor (84th), and financial (130th) markets, where the situation is deteriorating for the second year in a row. The weak level of competition (136th) — caused by inefficient antimonopoly policies (124th) and high restrictions on trade and foreign ownership as well as the lack of trust in the financial system (134th) — contributes to this inefficient allocation of Russia’s vast resources, hampering higher levels of productivity in the economy,” says the report.
The country suffers from inefficiencies in the goods (134th), labor (84th), and financial (130th) markets, where the situation is deteriorating for the second year in a row. The weak level of competition (136th) — caused by inefficient antimonopoly policies (124th) and high restrictions on trade and foreign ownership as well as the lack of trust in the financial system (134th) — contributes to this inefficient allocation of Russia’s vast resources, hampering higher levels of productivity in the economy,” says the report.
And despite a sharp improvement in the macroeconomic environment, where Russia jumped from 44th to 22nd position because of low government debt and a surplus budget, “its lack of business sophistication (119th) and low rates of technological adoption (137th) will become increasingly important challenges for its sustained progress.
Among the areas that can help boost its competitiveness are Russia’s high level of education enrollment, its “fairly good infrastructure”, and a vast domestic market (7th).
Among the areas that can help boost its competitiveness are Russia’s high level of education enrollment, its “fairly good infrastructure”, and a vast domestic market (7th).
Author: Mikhail Vesely
