At the level of the central american region, the country remains far behind, occupying the last box.
By Vanessa Linares negocios@eldiariodehoy.com28.sep.2016 | 21:00
Factors such as the crime and theft, corruption, government bureaucracy inefficient, political instability and high rates of taxes are listed as the five main factors that make it difficult to do business in El Salvador, indicates the Executive Opinion Survey developed by the World Economic Forum (WEF) in its latest Report on Global Competitiveness.
according To the respondents, the country is not able to move forward in the competitiveness scale due to high rates of crime and gang presence, the cumbersome processes tramitológicos in public institutions, new taxes, lack of agreements among the political class, national and even cases of corruption, which have led to two former presidents of the Republic to be prosecuted.
Also, they mentioned the executives, aspects such as access to financing (5.5 %), employees who do not account with the appropriate grade (4.3 %), new regulations of tax (3.4 %), inadequate infrastructure (2.8 %), deficient system of public health (2.7 %), insufficient capacity of innovation (2.2 %), and other factors such as labor regulations are restrictive, inflation, governmental instability, and work ethic, influencing the business climate of the country.
In the Global Index of Competitiveness 2016-2017 of the FEM, published this week, El Salvador fell by 10 positions.
Some of the main reasons attributed to the decline are lower scores in the pillars of the Institutional framework, Efficiency of the labour market and Innovation.
according To the Report, which gives scores between 1 and 7, with 1 being the worst and 7 the best rated, El Salvador obtained a score of 3.87 and went from being the economy 95 to 105 out of a total of 138 evaluated until the end of 2015.
This is the worst position in which it has been located the country in the last four years of the ranking.
In the 2012-2013 held the box 101 of 144; in 2013-2014, 97 148; and in 2014-2015, the 84 of 144 evaluated.
it is Worth mentioning that, although the score is close to the upper limit, compared with the other countries, the more high is your box number, the worse evaluated is a nation.
of The total listed in this edition of the Report, the country was 132 on the pillar of Institutions, with a score of 3, the 122 on the Efficiency of the labour market, with a score of 3.6; and he held the box 127 the pillar of Innovation by obtaining a low score of 2.6.
In the meantime, the pillars on which The Savior obtained his best positions were in Infrastructure, with a score of 4 and being the 69 in the rankings and Preparation technology, with a 3.2 rating and ranking at position 93 of the list.
Also, in the Size category of the market, with a score of 3.2 but standing in the position 94; and in the macroeconomic Environment with a score of 4.2 and occupying the box 97.
The only pillar on which The Savior obtained a score greater than 5 (5.2) was the Health and primary education. In this category, the WEF ranks the country in the step 96.
While the best position of the ranking, was obtained in the pillar of financial market Development, in which despite getting only a 4.3 is ranked at position 45.
overall Assessment
At the level of the Latin america and Caribbean region, Chile, Panama and Mexico are the most competitive economies, the Report said. Panama and the Dominican Republic were the countries that went up this year.
The FEM explained, through a press release, that in general, "the decline in the openness of the global economy is affecting the competitiveness and complicating the task of achieving inclusive and sustainable growth".
he Also noted that in the emerging economies of Latin america, the technology, the sophistication of business and innovation are factors that have gained importance in the competitive economies compared to others such as infrastructure, primary education and basic conditions of efficiency of markets.
In the countries best assessed by the index of competitiveness and, for the eighth consecutive year, Switzerland took the first place, as the most competitive in the world. Switzerland was evaluated slightly above Singapore (2) united States (3). The Netherlands (4) Germany (5) exceeded the also to Sweden (6) and United Kingdom (7). The last three economies that managed to sneak into the top 10 of the Index of the FEM were Japan (8) Hong Kong (9) Finland (10).
For its part, the ranking of economies to Latin american and caribbean includes Chile (33), Panama (42), Mexico (51), Costa Rica (54), Colombia (61), Peru (67), Barbados (72) Uruguay (73), Jamaica (75), and Guatemala (78).
Perspective private
The president of the Corporation of Exporters of El Salvador (Coexport), Paul Duran, said yesterday that from the perspective of the exporters, "there are international indexes worrying that placed El Salvador as one of the countries less competitive in the world".
"This tells us that we must make substantial improvements in that subject, especially when we note that neighboring countries such as Panama in the position 48, Costa Rica, which is in the position 51 and Guatemala in the position 78," said Duran.
For the entrepreneur, the country’s situation is very critical both in the economic area as a prosecutor.
The situation, he said, is that it does not allow the Government to deal with the payment of his debts, internal and external.
Duran even pointed out the weight of political polarization, as though the dialog for a fiscal pact has taken several months, "until now we do not have evidence of an agreement of the Government with political parties and legislators".
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