Competitiveness is challenging to measure. The National Competitiveness Council uses three main competitiveness benchmarks - those of the World Bank, IMD and the World Economic Forum (WEF) which differ in terms of methodology, data sources and country coverage. These indices are not perfect measures of competitiveness and can be somewhat subjective in nature. It is also important to bear in mind that Ireland’s ranking can change based on other countries performance or methodology changes rather than any improvement or decline in our own absolute competitiveness.
Enterprise 2025 Renewed has used the World Bank ease of doing business ranking as it measures the competitiveness of the enterprise environment, which in turn points us to where an enterprise policy focus may be required.
The IMD’s World Competitiveness Yearbook used in the Action Plan for Jobs, 2018, offers a broader definition of competitiveness in advanced economies. It spans measures for how an economy manages its resources to increase the prosperity of its population (where the State plays a key role) and the wealth creation process.
My Department does not rely on any one benchmark in its ongoing analysis. While the measures are different in scope, coverage and methodology they are complementary and enable my Department to monitor competitiveness on the basis of a range of measures and input to the policy making process.
