According to the World Economic Forum's Global Competitiveness Index (GCI), India faces significant institutional challenges. Which one below best illustrates such a challenge?
Show answer & explanation
Correct answer: B
Explanation
Solution: The correct answer is Inefficient government bureaucracy and weak legal enforcement.
Explanation:
☛ The World Economic Forum (WEF) assesses national economies through the Global Competitiveness Index (GCI) using 12 distinct pillars.
☛ Under the Institutions pillar, economies are evaluated on aspects such as property rights, corruption, undue influence, public sector performance, and judicial independence.
☛ For India, the report has consistently identified inefficient government bureaucracy, excessive red tape, and weak legal and contract enforcement as key institutional barriers hindering business growth.
☛ These institutional delays increase transaction costs and diminish investor confidence in the regulatory environment.
Extra Exam-Relevant Facts:
☛ World Economic Forum (WEF): Established in January 1971 by German engineer and economist Klaus Schwab.
☛ Headquarters: The WEF is headquartered in Cologny, Geneva, Switzerland.
☛ Key Publications of WEF: Global Competitiveness Report, Global Gender Gap Report, Global Risks Report, and the Energy Transition Index.
☛ Institutions Pillar: Measures how effectively public institutions safeguard rights, deliver services, and enforce contracts fairly.
Important One-Liners for Upcoming Exams:
☛ Where are the headquarters of the World Economic Forum located? → Cologny, Switzerland
☛ Who was the founder of the World Economic Forum? → Klaus Schwab
☛ Where does the World Economic Forum host its flagship Annual Meeting? → Davos, Switzerland
☛ Which international organisation publishes the Global Gender Gap Index? → World Economic Forum (WEF)
☛ How many pillars of competitiveness are evaluated in the WEF's GCI 4.0? → 12 pillars