The AP government on Wednesday signed a MoU with the World Economic Forum which will enable the forum help the state in assessing its competitiveness. The memorandum of understanding was signed during the ongoing WEF meeting in New Delhi. According to the MoU, the forum’s benchmarking methods, including global competitiveness index (GSI), will be used to identify the strengths and weaknesses of AP’s economy .
The assessment will provide key data for the design of evidence-based policies and reforms, and allow comparison with other economies of similar size or at a similar stage of development.
“Collaboration with the World Economic Forum will provide us with the metho dology , tools and knowledge to design better policies,“ said chief minister N Chandrababu Naidu. “Identifying and measuring bottlenecks to growth and prosperity are critical steps for the state to fulfill its ambitions,“ Naidu added.
The methodology used to assess the competitiveness of AP will draw on the GCI, which measures a set of factors and policies that together determine an economy’s level of productivity and its ability to prosper. The assessment is based on performance in 12 categories: institutions, infrastructure, macroeconomic stability, health and primary education, higher education and training, goods market efficiency , labour market efficiency , financial sector development, technological readiness, market size, business sophistication and innovation.
“We look forward to sharing our expertise with key actors of Andhra Pradesh’s development and building their capacity to carry out a similar exercise for their state, which is home to almost 50 million people. The potential impact of this initiative is therefore significant,“ said Philipp Rösler, head of the Centre for Regional Strategies and member of the managing board of the World Economic Forum.