The new state of Andhra Pradesh is in the process of rebirth and start over. The state which holds a great prospect with sheer inherent natural resources and skill is yet to take over the plains of complete development. To imagine that the once glorious united state was bifurcated without a capital to its territory came as a blow to its people. However, the state continues to fight and grow into what was once a historic legion of learning, wealth and economic diversity.
The state government of Andhra Pradesh is leaving no stone not turned that deflects towards a progressive path. Chief Minister, Sri N Chandrababu Naidu’s past one year as the honcho of governance led to many promising ventures and plans. Starting from the building of new capital city of Amaravati to making AP the core hub of mobile manufacturing, there are some mind blowing results waiting ahead.
To this effect, there also needs be a global level analysis and study to keep a constant track of headway for the state. This is precisely where Global Competitiveness Index steps in.
CM’s move to incorporate Global Competitiveness Report for the state in collaboration with the World Economic Forum is a praiseworthy one, not to forget timely and wise. Mr Naidu has once again proved that he is a man of ‘right strategy at the right time’ with the inclusion of GCI for Andhra Pradesh.
Why is GCI a lurking blessing for the state? This would perhaps be the waging question. To decode the same, let us look at what GCI does for the countries all over the world.
Global Competitiveness Index assimilates both the macro economic and micro business aspects of the competition within a specific region and integrates the same into a single index. This is a boon for the growing nascent Andhra Pradesh, which is now playing a mixed game of economic battle in the arena of agriculture, manufacturing, service and technology.
Over years, GCI had laid out the actual broad spectrum growth patterns and loopholes for major economies in the world. Super powers like United States heavily bank on the GCI to evaluate their positioning in the global economy as such.
The GCI report is always based on the latest theoretical and empirical analysis of an economy. The index is made up of 110 variables. Out of these, two thirds arrive from an Executive opinion survey, and the rest from open sources like the United Nations and other common interest bodies.
The Twelve Pillars of Global Competitiveness Index (GCI)
There will be exactly twelve pillars divided looking at an individual demographic. Each pillar will be an avenue of prosperity and growth. Every pillar is looked upon as a core area of competitiveness.
2. Appropriate Infrastructure
3. Stable Macroeconomic Framework
4. Good Health & Primary Education
5. Higher Education & Training
6. Efficient Goods Market
7. Efficient Labor Market
8. Well Developed Financial Market
9. Harnessing of Existing Technology
10. Market Size – Domestic & International
11. Sophisticated Production processes
Income Formula Behind Global Competitiveness Report
As the nation/state develops, wages increase, and in order to sustain the higher income, labor productivity should improve for the region at a competitive level with the rest of the world.
GCI Three Stage Specification
The index separates the analysis based on three stages
Factor driven stage
Efficiency driven stage
Innovation driven stage
Each pillar of the index is given different weight based on the per capita income of the nation, or the state in this case. The reports generated post application of GCI are near accurate, as the analysis is dissected to the micro levels of each area of economic activity in the region.
Andhra Pradesh falls under one of the esteemed regions to have been considered for the formulation of GCI in coming financial years. A lot depends on how strategies are revamped based on the numeric outcomes that are close to accurate inferences.