Italy
Key indicators
Total population (millions), 2007 .............................58.2
GDP (US$ billions), 2007......................................2,104.7
GDP per capita (US$), 2007 ..............................35,872.4
GDP (PPP) as share (%) of world total, 2007 .......2.76
Global Competitiveness Index
GCI 2008–2009.........................................................49 ......4.4
GCI 2007–2008 (out of 131)..................................................46 ........4.4
GCI 2006–2007 (out of 122)..................................................47 ........4.4
Basic requirements.............................................................58 ........4.5
1st pillar: Institutions ...........................................................84 ........3.7
2nd pillar: Infrastructure.....................................................54 ........3.9
3rd pillar: Macroeconomic stability................................100 ........4.5
4th pillar: Health and primary education .........................30 ........6.0
Efficiency enhancers..........................................................42 ........4.4
5th pillar: Higher education and training.........................44 ........4.4
6th pillar: Goods market efficiency...................................62 ........4.2
7th pillar: Labor market efficiency ..................................126 ........3.6
8th pillar: Financial market sophistication.......................91 ........3.9
9th pillar: Technological readiness...................................31 ........4.5
10th pillar: Market size..........................................................9 ........5.6
Innovation and sophistication factors ............................31 ........4.2
11th pillar: Business sophistication .................................21 ........5.0
12th pillar: Innovation..........................................................53 ........3.4
The most problematic factors for doing business
Inefficient government bureaucracy.........................21.0
Tax rates .........................................................................14.7
Tax regulations ..............................................................13.7
Inadequate supply of infrastructure ..........................11.2
Policy instability...............................................................8.5
Access to financing........................................................7.6
Restrictive labor regulations.........................................6.4
Corruption.........................................................................5.9
Inflation .............................................................................3.2
Crime and theft ................................................................2.0
Government instability/coups .......................................1.9
Poor work ethic in national labor force ......................1.7
Inadequately educated workforce...............................1.3
Poor public health...........................................................0.8
Foreign currency regulations........................................0.0
Rank Score
(out of 134) (1–7)
196
2.2: Country/Economy Profiles
GDP (PPP US$) per capita, 1980–2007
0 5 10 15 20 25 30
Percent of responses
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between
1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.
1
Transition
2 Transition
2–3
Factor
driven
Efficiency
driven
Innovation
driven
3
Stage of development
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
0
10,000
20,000
30,000
40,000
Italy OECD
Italy Innovation-driven economies
Institutions
Infrastructure
Macroeconomic
stability
Health and
primary
education
Higher education
and training
Goods market
efficiency
Labor market efficiency
Financial market
sophistication
Technological
readiness
Market size
Business
sophistication
Innovation
1
2
3
4
5
6
7
The Global Competitiveness Report 2008-2009 © 2008 World Economic Forum
197
2.2: Country/Economy Profiles
The Global Competitiveness Index in detail
■ Competitive Advantage ■ Competitive Disadvantage
INDICATOR RANK/134
1st pillar: Institutions
1.01 Property rights .............................................................59 ........
■
1.02 Intellectual property protection....................................42 ........
■
1.03 Diversion of public funds .............................................74 ........
■
1.04 Public trust of politicians..............................................92 ........
■
1.05 Judicial independence .................................................78 ........
■
1.06 Favoritism in decisions of government officials ..........91 ........
■
1.07 Wastefulness of government spending.....................128 ........
■
1.08 Burden of government regulation..............................130 ........
■
1.09 Efficiency of legal framework ....................................114 ........
■
1.10 Transparency of government policymaking ...............111 ........
■
1.11 Business costs of terrorism.........................................79 ........
■
1.12 Business costs of crime and violence .........................73 ........
■
1.13 Organized crime.........................................................124 ........
■
1.14 Reliability of police services.........................................54 ........
■
1.15 Ethical behavior of firms ..............................................78 ........
■
1.16 Strength of auditing and reporting standards ..............85 ........
■
1.17 Efficacy of corporate boards......................................117 ........
■
1.18 Protection of minority shareholders’ interests ..........110 ........
■
2nd pillar: Infrastructure
2.01 Quality of overall infrastructure....................................73 ........
■
2.02 Quality of roads............................................................55 ........
■
2.03 Quality of railroad infrastructure ..................................52 ........
■
2.04 Quality of port infrastructure........................................95 ........
■
2.05 Quality of air transport infrastructure...........................78 ........
■
2.06 Available seat kilometers* ...........................................13 ........
■
2.07 Quality of electricity supply .........................................48 ........
■
2.08 Telephone lines* ..........................................................20 ........
■
3rd pillar: Macroeconomic stability
3.01 Government surplus/deficit* .......................................86 ........
■
3.02 National savings rate*..................................................82 ........
■
3.03 Inflation* ......................................................................21 ........
■
3.04 Interest rate spread* .................................................104 ........
■
3.05 Government debt*.....................................................123 ........
■
4th pillar: Health and primary education
4.01 Business impact of malaria..........................................28 ........
■
4.02 Malaria incidence* .........................................................1 ........
■
4.03 Business impact of tuberculosis..................................13 ........
■
4.04 Tuberculosis incidence*...............................................13 ........
■
4.05 Business impact of HIV/AIDS ......................................31 ........
■
4.06 HIV prevalence*...........................................................74 ........
■
4.07 Infant mortality*...........................................................10 ........
■
4.08 Life expectancy*............................................................5 ........
■
4.09 Quality of primary education........................................45 ........
■
4.10 Primary enrollment* ....................................................12 ........
■
4.11 Education expenditure* ...............................................55 ........
■
5th pillar: Higher education and training
5.01 Secondary enrollment*................................................26 ........
■
5.02 Tertiary enrollment* .....................................................19 ........
■
5.03 Quality of the educational system ...............................84 ........
■
5.04 Quality of math and science education .......................69 ........
■
5.05 Quality of management schools..................................61 ........
■
5.06 Internet access in schools ...........................................65 ........
■
5.07 Local availability of research and training services ......35 ........
■
5.08 Extent of staff training ...............................................109 ........
■
INDICATOR RANK/134
6th pillar: Goods market efficiency
6.01 Intensity of local competition ....................................104 ........
■
6.02 Extent of market dominance .......................................30 ........
■
6.03 Effectiveness of anti-monopoly policy.........................59 ........
■
6.04 Extent and effect of taxation .....................................129 ........
■
6.05 Total tax rate* ............................................................121 ........
■
6.06 No. of procedures required to start a business*.........58 ........
■
6.07 Time required to start a business* ..............................24 ........
■
6.08 Agricultural policy costs ...............................................94 ........
■
6.09 Prevalence of trade barriers.........................................46 ........
■
6.10 Trade-weighted tariff rate*.............................................5 ........
■
6.11 Prevalence of foreign ownership...............................106 ........
■
6.12 Business impact of rules on FDI ...............................122 ........
■
6.13 Burden of customs procedures ...................................61 ........
■
6.14 Degree of customer orientation ..................................58 ........
■
6.15 Buyer sophistication ....................................................40 ........
■
7th pillar: Labor market efficiency
7.01 Cooperation in labor-employer relations ....................126 ........
■
7.02 Flexibility of wage determination...............................129 ........
■
7.03 Non-wage labor costs* ..............................................123 ........
■
7.04 Rigidity of employment*..............................................70 ........
■
7.05 Hiring and firing practices ..........................................134 ........
■
7.06 Firing costs* ..................................................................5 ........
■
7.07 Pay and productivity...................................................131 ........
■
7.08 Reliance on professional management .....................117 ........
■
7.09 Brain drain....................................................................71 ........
■
7.10 Female participation in labor force*.............................84 ........
■
8th pillar: Financial market sophistication
8.01 Financial market sophistication....................................70 ........
■
8.02 Financing through local equity market.........................74 ........
■
8.03 Ease of access to loans .............................................108 ........
■
8.04 Venture capital availability ............................................87 ........
■
8.05 Restriction on capital flows .......................................123 ........
■
8.06 Strength of investor protection*..................................39 ........
■
8.07 Soundness of banks ....................................................79 ........
■
8.08 Regulation of securities exchanges.............................73 ........
■
8.09 Legal rights index*.......................................................93 ........
■
9th pillar: Technological readiness
9.01 Availability of latest technologies.................................63 ........
■
9.02 Firm-level technology absorption.................................76 ........
■
9.03 Laws relating to ICT.....................................................52 ........
■
9.04 FDI and technology transfer ......................................103 ........
■
9.05 Mobile telephone subscribers* .....................................2 ........
■
9.06 Internet users* ............................................................22 ........
■
9.07 Personal computers*...................................................29 ........
■
9.08 Broadband Internet subscribers*.................................26 ........
■
10th pillar: Market size
10.01 Domestic market size* ................................................10 ........
■
10.02 Foreign market size* ...................................................12 ........
■
11th pillar: Business sophistication
11.01 Local supplier quantity .................................................27 ........
■
11.02 Local supplier quality ...................................................26 ........
■
11.03 State of cluster development ........................................4 ........
■
11.04 Nature of competitive advantage ................................14 ........
■
11.05 Value chain breadth......................................................13 ........
■
11.06 Control of international distribution .............................30 ........
■
11.07 Production process sophistication ...............................25 ........
■
11.08 Extent of marketing .....................................................35 ........
■
11.09 Willingness to delegate authority ..............................109 ........
■
12th pillar: Innovation
12.01 Capacity for innovation ................................................22 ........
■
12.02 Quality of scientific research institutions.....................99 ........
■
12.03 Company spending on R&D ........................................51 ........
■
12.04 University-industry research collaboration ...................77 ........
■
12.05 Gov’t procurement of advanced tech products .........117 ........
■
12.06 Availability of scientists and engineers ........................45 ........
■
12.07 Utility patents*.............................................................25 ........
■
Italy
* Hard data
Note: For further details and explanation, please refer to the section “How to
Read the Country/Economy Profiles” at the beginning of this chapter.
The Global