Guyana’s tax and crime rates have been identified as “the two most problematic factors for doing business” here by the Global Competitiveness Index (GCI), in the annual report released by the World Economic Forum.
The report, for the year 2010-2011 included responses from respondents who were asked to select from a list of 15, the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. According to the report, Tax rates received the most responses with a percentage of 15.29, while crime and theft came in second with 11.94 per cent.
“Inadequately educated workforce,” “poor work ethic in the national labour force” and “access to financing” were the next most popular responses with percentages of 10.79, 10.14 and 9.24 respectively. Corruption, with 8.91 per cent, inefficient government bureaucracy with 8.75 per cent and tax regulations with 8.34 per cent also ranked high.
Poor public health and government instability/coups were the two factors which were ranked the least problematic with percentages of 0.16 and 0.65 respectively.
Guyana was ranked 110th out of 134 countries in the GCI index 2010-2011 list, slipping from its ranking of 104 out of 133 countries that it achieved last year. The GCI listing is based on individual countries’ performances which are measured using 12 pillars as well as looking at the impact on business related issues such as crime, corruption, taxation, bureaucracy, inflation and stability, among others.
The top ten countries on this year’s index are Switzerland, Sweden, Singapore, the United States, Germany, Japan Finland, Netherlands, Denmark and Canada.
The 12 pillars on which the index is built are institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation.
Guyana, under the category of Institutions, scored 3.32 and recorded a rank of 95, while for the category of Infrastructure it scored 2.92 and achieved a rank of 103 out of 134 countries. Guyana ranked 126 for the macroeconomic environment, achieving a score of 3.52. Under the category of Health and primary education, Guyana scored 5.55, which placed it at 78 of the 133 countries.
Under Institutions, the country scored 95/134 for its attention to property rights 95/134; intellectual property protection 90; diversion of public funds 80; public trust of politicians 77, irregular payments and bribes 109, judicial independence (lack of) 86; favouritism in decisions of government officials 99; efficiency of legal framework 109; reliability of police service (lack of) 114; organized crime 96; and protection of minority shareholders’ interests 105. The country scored favourably – 48/134 – when it comes to the burden of government regulation.
The overall quality of infrastructure was ranked at 96. A breakdown saw quality of roads at 69/134; port infrastructure 103; availability of airline seat kilometres 130; electricity supply 116; fixed telephone lines 75 and mobile telephone subscriptions 99.
In the category of macroeconomic environment, national savings rate 67/134, inflation 70; interest rate spread 122; government debt 129; and country credit rating 122. The government budget balance rated 100/134.
In the broad categorization of basic requirements which comprise the pillars of Institutions, Infrastructure, Macroeconomic Environment and Health and primary education, Guyana ranked 105 out of the 134 countries with the average score of 3.89.
For the category of Health and primary education, Guyana received sound ratings for the quality of primary education 53/134 and for primary education enrolment. However, it scored poorly in the business impact of malaria, 118/134; malaria incidence 116; business impact of tuberculosis 108; tuberculosis incidence 92; business impact of HIV/AIDS 122; HIV prevalence 122; Infant mortality 108 and life expectancy 101.
According to the report under the Efficiency Enhancers the country achieved a rank of 112 with an average of 3.43. In the category of Higher Education and training the country pegged a score of 3.91 which placed it at 81. Guyana recorded a rank of 95 and achieved a score of 3.88 for its Goods Market Efficiency.
In the category of Labour Market Efficiency, the country scored 4.08 and achieved a ranking of 100. Financial Market Development saw the country ranking 102 with a score of 3.70. In the category of Technological readiness, Guyana placed 103 with a score of 3.05 while under the category of Market Size, the country ranked 131 with its score of 1.96.
Under the category of Higher education and training; Guyana was ranked 16/134 – the highest individual ranking. It, however, scored poorly in the tertiary education enrolment rate, 105; internet access in schools; local availability of research and training services, 106.
Meanwhile, under the broad grouping of Innovation and Sophistication Factors the country recorded a rank of 103 with its score of 3.13. In the pillars which contribute to this category: Business Sophistication and Innovation, Guyana ranked 86 and 114 respectively with respective scores of 3.61 and 2.65.
In individual categories, the country’s second best score was 20/134 for its hiring and firing practices under the 7th pillar of labour market efficiency. Guyana also scored highly in agricultural policy costs, ranking 40 under the 6th pillar of goods market efficiency and 46 for rigidity of employment under the pillar of Labour Market Efficiency.
Guyana’s worst score –133– was occasioned by the unavailability of scientists and engineers under the twelfth pillar, innovation. It also scored poorly (131/134) in the category of brain drain under pillar 7.
The country recorded a score of 131 under domestic market size index, and a rank of 125 for the extent and effect of taxation, under the pillar of Goods market and efficiency.
