World Economic Forum published the new issue of Global Competitiveness Report 2012-2013. The report measures competitiveness by 12 pillars: institutions, infrastructure, health & primary education, macroeconomic environment, goods market efficiency, financial market development, labor market efficiency, technological readiness, market size, business sophistication and innovation. Economies that meet the basic requirements (institutions, infrastructure, health & primary education, macroeconomic environment) are classified as factor-driven economies, those meeting efficiency requirements are classified as efficiency-driven, and finally those meeting business sophistication and innovation requirements are classified as innovation-driven economies.
In line with this classification, Armenia and Georgia fall under efficiency-driven economy list, outscoring Azerbaijan (transition from factor-driven to efficiency driven economy). In the overall index comparison Armenia ranks 82nd falling beyond Georgia (77th ), and Azerbaijan (46th ). Armenia ranked modest on basic requirements pillar (4.41 with 7 being the worst, and 1being the best score), and better on efficiency enhancers (3.86) and innovation factors (3.29). In terms of institutions Armenia ranked 71st Azerbaijan being 63rd and Georgia 61st . In terms of infrastructure Armenia ranked 80th while Azerbaijan ranked 71st and Georgia 53rd. From the macroeconomic environment perspective Armenia again fell beyond its regional comparators. However, Armenia ranked higher in terms of health and education (80th versus Azerbaijani 107th and Georgia’s 61st. ).
