Competition plays a key role in today’s global economy and that is why main target of the most countries is achieving more interactions with other economies and finally benefit from advantages of open economy. Generally, the countries’ welfare level and their competitiveness have a meaningful relationship. In this regard, the most influential factors in countries’ welfare level such as the value of foreign investment and economic stability affect competitiveness level too. Global Competitiveness Index (GCI) is one of the indices which evaluate welfare and competitiveness. GCI is calculated with indirect methods by using 114 variables. Therefore, the main results of this measurement are obtained through the survey from business managers and then statistical data. The mentioned index annually published by World Economic Forum (WEF) based on the main economic, social and health details of various countries. Iran as one of the participants in this report has mostly gotten top rank in the field of “market size” variable and has improved the situation of “higher education and professionalism”. It should be noted that, the main continuous challenges of Iran’s competitiveness place include market efficiency, financial market situation, technology infrastructure and innovation in business.
Iran’s position was 74 in the GCI 2016 which shows improvement in the table by 9 levels comparing to last year. Top three countries plus Iran and its neighbors’ GCI position are shown in the table below:
This ranking has been changed in 2017 comparing to 2016 and the changes are as below:
The main reason of Iran’s rank improvement in the last GCI report is because of better understanding of business environment by managers and following that, development of economic activities. On the other hand, according to the WEF research, inefficient government bureaucracy, instability in government policy, foreign exchange and tax regulations, inflation, corruption and lack of suitable infrastructure are the most important weaknesses in Iran’s business environment.
To conclude, comparison of Iran’s rank in GCI with the last 5 years shows the significant jump of Iran’s global place. Getting 4.27 point out of 7 in 2017 by Iran as the highest point from 2010 confirms this issue. At the moment, accessibility to financial resources is the most important problem of Iran’s environmental business and GCI rank. However, European countries tendency like Switzerland and Italy, for investment in strategic industries like petrochemical is one of the current opportunities for Iran which can improve the global place of Iran’s economy in the future.