2.

1: Country/Economy Profiles

Switzerland
Key indicators, 2009
GDP (PPP) per capita (int'l $), 19802009
Population (millions)...................................................7.6
GDP (US$ billions)...................................................494.6
GDP per capita (US$) ...........................................67,560
GDP (PPP) as share (%) of world total .................0.45

Switzerland

50,000

Advanced economies

40,000
30,000
20,000
10,000
0

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Global Competitiveness Index

Rank
(out of 139)

Stage of development

Score
(17)

GCI 20102011...........................................................1 ......5.6

Transition
12

GCI 20092010 (out of 133)....................................................1 ........5.6

GCI 20082009 (out of 134)....................................................2 ........5.6

Factor
driven

Basic requirements...............................................................2 ........6.1

1st pillar: Institutions .............................................................7 ........5.8
2nd pillar: Infrastructure.......................................................6 ........6.1
3rd pillar: Macroeconomic environment ...........................5 ........5.8
4th pillar: Health and primary education ...........................7 ........6.6

312

Transition
23

Efficiency
driven

3
Innovation
driven

Institutions
7

Innovation

Infrastructure

Business
sophistication

Efficiency enhancers............................................................4 ........5.4

5th pillar: Higher education and training ...........................4 ........5.8
6th pillar: Goods market efficiency.....................................4 ........5.3
7th pillar: Labor market efficiency ......................................2 ........5.9
8th pillar: Financial market development...........................8 ........5.3
9th pillar: Technological readiness.....................................7 ........5.6
10th pillar: Market size........................................................36 ........4.5

Macroeconomic
environment

4
3
2

Market size

Health and
primary
education

Higher education
and training

Technological
readiness

Innovation and sophistication factors ..............................2 ........5.7

11th pillar: Business sophistication....................................4 ........5.8
12th pillar: Innovation............................................................2 ........5.6

Financial market
development

Goods market
efficiency
Labor market efficiency

Switzerland

Innovation-driven economies

The most problematic factors for doing business

Inefficient government bureaucracy.........................14.8
Tax regulations ..............................................................14.1
Restrictive labor regulations .......................................13.2
Access to financing ......................................................12.4
Inadequately educated workforce.............................12.0
Policy instability...............................................................9.5
Tax rates ...........................................................................7.8
Poor work ethic in national labor force ......................4.4
Inadequate supply of infrastructure ............................3.8
Foreign currency regulations........................................3.4
Inflation .............................................................................2.3
Government instability/coups .......................................1.2
Crime and theft ................................................................0.5
Corruption.........................................................................0.4
Poor public health ...........................................................0.1
0

10

15

20

25

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.

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The Global Competitiveness Index in detail

INDICATOR

RANK/139

INDICATOR

1st pillar: Institutions

1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19
1.20
1.21

Property rights...........................................................................1
Intellectual property protection .................................................4
Diversion of public funds...........................................................7
Public trust of politicians .........................................................12
Irregular payments and bribes.................................................10
Judicial independence ...............................................................4
Favoritism in decisions of government officials ......................10
Wastefulness of government spending ....................................9
Burden of government regulation ...........................................14
Efficiency of legal framework in settling disputes ..................10
Efficiency of legal framework in challenging regulations ..........5
Transparency of government policymaking...............................5
Business costs of terrorism ....................................................26
Business costs of crime and violence.....................................12
Organized crime ......................................................................20
Reliability of police services ......................................................6
Ethical behavior of firms............................................................6
Strength of auditing and reporting standards..........................25
Efficacy of corporate boards ...................................................14
Protection of minority shareholders interests ........................41
Strength of investor protection* ...........................................127

2nd pillar: Infrastructure

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09

Quality of overall infrastructure .................................................1

Quality of roads .........................................................................3
Quality of railroad infrastructure ................................................1
Quality of port infrastructure ...................................................35
Quality of air transport infrastructure ........................................5
Available airline seat kilometers* ............................................27
Quality of electricity supply .......................................................7
Fixed telephone lines* ..............................................................3
Mobile telephone subscriptions* ............................................33

3rd pillar: Macroeconomic environment

3.01
3.02
3.03
3.04
3.05
3.06

Government budget balance* .................................................10

National savings rate* .............................................................34
Inflation*..................................................................................13
Interest rate spread* ...............................................................25
Government debt* ..................................................................73
Country credit rating*................................................................1

4th pillar: Health and primary education

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10

Business impact of malaria .......................................................1

Malaria incidence*.....................................................................1
Business impact of tuberculosis .............................................13
Tuberculosis incidence* ............................................................7
Business impact of HIV/AIDS..................................................13
HIV prevalence* ......................................................................89
Infant mortality* ......................................................................23
Life expectancy* .......................................................................3
Quality of primary education .....................................................6
Primary education enrollment rate* ........................................67

5th pillar: Higher education and training

5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

RANK/139

6th pillar: Goods market efficiency

Secondary education enrollment rate* ...................................38

Tertiary education enrollment rate*.........................................48
Quality of the educational system.............................................2
Quality of math and science education.....................................5
Quality of management schools ...............................................2
Internet access in schools.........................................................7
Local availability of research and training services....................1
Extent of staff training...............................................................2

6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15

Intensity of local competition ..................................................36

Extent of market dominance.....................................................3
Effectiveness of anti-monopoly policy ....................................23
Extent and effect of taxation...................................................10
Total tax rate* ..........................................................................28
Number of procedures required to start a business* .............34
Time required to start a business*..........................................71
Agricultural policy costs.........................................................113
Prevalence of trade barriers ....................................................94
Trade tariffs*............................................................................34
Prevalence of foreign ownership ............................................17
Business impact of rules on FDI .............................................26
Burden of customs procedures...............................................20
Degree of customer orientation ................................................3
Buyer sophistication ..................................................................2

2.1: Country/Economy Profiles

Switzerland

7th pillar: Labor market efficiency

7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08
7.09

Cooperation in labor-employer relations....................................2

Flexibility of wage determination ............................................22
Rigidity of employment* .........................................................10
Hiring and firing practices..........................................................4
Redundancy costs* .................................................................21
Pay and productivity ..................................................................5
Reliance on professional management ...................................10
Brain drain .................................................................................1
Female participation in labor force* ........................................40

8th pillar: Financial market development

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08
8.09

Availability of financial services .................................................1

Affordability of financial services...............................................1
Financing through local equity market ....................................22
Ease of access to loans...........................................................22
Venture capital availability........................................................20
Restriction on capital flows .......................................................3
Soundness of banks ................................................................41
Regulation of securities exchanges ..........................................9
Legal rights index* ..................................................................20

9th pillar: Technological readiness

9.01
9.02
9.03
9.04
9.05
9.06

Availability of latest technologies ..............................................5

Firm-level technology absorption ..............................................4
FDI and technology transfer....................................................46
Internet users* ........................................................................24
Broadband Internet subscriptions* ...........................................5
Internet bandwidth* ..................................................................9

10th pillar: Market size

10.01 Domestic market size index*..................................................38
10.02 Foreign market size index* .....................................................34

11th pillar: Business sophistication

11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity...............................................................6

Local supplier quality .................................................................2
State of cluster development....................................................4
Nature of competitive advantage ..............................................2
Value chain breadth ...................................................................4
Control of international distribution ...........................................6
Production process sophistication.............................................3
Extent of marketing...................................................................3
Willingness to delegate authority..............................................5

12th pillar: Innovation

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation ..............................................................4

Quality of scientific research institutions ..................................2
Company spending on R&D......................................................2
University-industry collaboration in R&D ...................................2
Govt procurement of advanced tech products ......................16
Availability of scientists and engineers ...................................11
Utility patents per million population*.......................................7

Notes: Ranks of notable competitive advantages are highlighted. An asterisk (*) indicates that data are from sources other than the World Economic Forum.
For further details and explanation, please refer to the section How to Read the Country/Economy Profiles at the beginning of this chapter.

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