2.1: Country/Economy Profiles

Mexico
Key indicators, 2010
Population (millions)...............................................110.6 GDP (US$ billions)................................................1,039.1 GDP per capita (US$) .............................................9,566 GDP (PPP) as share (%) of world total..................2.09

GDP (PPP) per capita (int’l $), 1985–2010
15,000 12,000 9,000 6,000 3,000

Mexico

Latin America and the Caribbean

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2010

Global Competitiveness Index
Rank (out of 142) Score (1–7)

Stage of development 1
Factor driven Transition 1–2

GCI 2011–2012 ........................................................ 58......4.3
GCI 2010–2011 (out of 139)..................................................66........ 4.2 GCI 2009–2010 (out of 133)..................................................60........ 4.2 Basic requirements (38.6%)...............................................67........ 4.6 Institutions...........................................................................103........ 3.4 Infrastructure........................................................................66........ 4.0 Macroeconomic environment ...........................................39........ 5.2 Health and primary education...........................................69........ 5.7

2
Efficiency driven

Transition 2–3

3
Innovation driven

Institutions Innovation Business sophistication
7 6 5 4 3 2
1

Infrastructure Macroeconomic environment Health and primary education Higher education and training Goods market efficiency

258

Efficiency enhancers (50.0%)............................................53........ 4.2 Higher education and training...........................................72........ 4.1 Goods market efficiency.....................................................84........ 4.1 Labor market efficiency....................................................114........ 3.9 Financial market development ..........................................83........ 3.9 Technological readiness.....................................................63........ 3.7 Market size ...........................................................................12........ 5.6 Innovation and sophistication factors (11.4%) ..............55........ 3.7 Business sophistication .....................................................56........ 4.1 Innovation..............................................................................63........ 3.2

Market size

Technological readiness Financial market development Labor market efficiency

Mexico

Economies in transition from 2 to 3

The most problematic factors for doing business
Crime and theft.....................................................................16.5 Corruption..............................................................................15.2 Inefficient government bureaucracy................................14.2 Access to financing.............................................................10.7 Tax regulations .....................................................................10.3 Restrictive labor regulations................................................9.0 Inadequate supply of infrastructure...................................5.8 Tax rates ..................................................................................5.0 Inadequately educated workforce .....................................4.2 Policy instability .....................................................................3.7 Poor work ethic in national labor force.............................2.5 Inflation....................................................................................1.1 Government instability/coups..............................................0.8 Foreign currency regulations ..............................................0.6 Poor public health..................................................................0.4
0 5 10 15 Percent of responses 20 25 30

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.

The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum

The Global Competitiveness Index in detail
INDICATOR VALUE RANK/142 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 6.16 INDICATOR VALUE RANK/142

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....................................................... 4.0 ............80 Intellectual property protection ............................. 3.2 ............85 Diversion of public funds ...................................... 2.8 ............94 Public trust of politicians ....................................... 2.2 .......... 100 Irregular payments and bribes .............................. 3.6 ............91 Judicial independence........................................... 3.2 ............89 Favoritism in decisions of government officials .... 2.9 ............79 Wastefulness of government spending ................ 3.0 ............75 Burden of government regulation ......................... 2.9 .......... 102 Efficiency of legal framework in settling disputes 3.1 .......... 101 Efficiency of legal framework in challenging regs. 3.3 ............80 Transparency of government policymaking........... 4.2 ............70 Business costs of terrorism .................................. 4.5 .......... 121 Business costs of crime and violence .................. 2.7 .......... 134 Organized crime .................................................... 2.7 .......... 139 Reliability of police services.................................. 2.6 .......... 133 Ethical behavior of firms ....................................... 3.7 ............88 Strength of auditing and reporting standards ....... 4.8 ............63 Efficacy of corporate boards ................................. 4.4 ............83 Protection of minority shareholders’ interests...... 4.1 ............72 Strength of investor protection, 0–10 (best)* ....... 6.0 ............36

6th pillar: Goods market efficiency
Intensity of local competition................................ 4.6 ............84 Extent of market dominance................................. 3.0 .......... 124 Effectiveness of anti-monopoly policy................... 3.2 .......... 120 Extent and effect of taxation................................. 3.3 ............83 Total tax rate, % profits*..................................... 50.5 ...........110 No. procedures to start a business*........................ 6 ............34 No. days to start a business* .................................. 9 ............35 Agricultural policy costs ........................................ 3.4 .......... 113 Prevalence of trade barriers .................................. 4.6 ............57 Trade tariffs, % duty*............................................ 8.1 ............91 Prevalence of foreign ownership........................... 5.5 ............23 Business impact of rules on FDI........................... 4.9 ............52 Burden of customs procedures ............................ 4.1 ............ 74 Imports as a percentage of GDP* ...................... 32.1 .......... 106 Degree of customer orientation............................ 4.8 ............55 Buyer sophistication.............................................. 3.4 ............73

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................ 4.3 ............63 Flexibility of wage determination .......................... 4.8 ............89 Rigidity of employment index, 0–100 (worst)* ....41.0 .......... 108 Hiring and firing practices ..................................... 3.1 .......... 123 Redundancy costs, weeks of salary* .................... 47 ............85 Pay and productivity .............................................. 3.7 ............84 Reliance on professional management ................. 4.1 ............75 Brain drain ............................................................. 3.4 ............61 Women in labor force, ratio to men*.................. 0.55 .......... 120

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 ............................. 4.2 ............73 Quality of roads..................................................... 4.3 ............55 Quality of railroad infrastructure............................ 2.6 ............68 Quality of port infrastructure................................. 4.0 ............75 Quality of air transport infrastructure .................... 4.8 ............65 Available airline seat kms/week, millions* ..... 1,506.5 ............22 Quality of electricity supply................................... 4.3 ............83 Fixed telephone lines/100 pop.* .......................... 17 ............72 .5 Mobile telephone subscriptions/100 pop.* ......... 80.6 ............96

8th pillar: Financial market development
8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 Availability of financial services............................. 4.6 ............69 Affordability of financial services .......................... 3.9 ............85 Financing through local equity market .................. 3.5 ............ 74 Ease of access to loans ........................................ 2.4 ............92 Venture capital availability ..................................... 2.5 ............78 Soundness of banks.............................................. 5.6 ............40 Regulation of securities exchanges....................... 3.8 ............99 Legal rights index, 0–10 (best)* ............................ 5.0 ............ 76

3rd pillar: Macroeconomic environment
3.01 3.02 3.03 3.04 3.05 3.06 Government budget balance, % GDP*................ -4.1 ............80 Gross national savings, % GDP* ........................ 25.1 ............40 Inflation, annual % change*.................................. 4.2 ............77 Interest rate spread, %* ....................................... 4.1 ............46 General government debt, % GDP* ................... 42.7 ............82 Country credit rating, 0–100 (best)* ....................67 ............41 .6

9th pillar: Technological readiness
9.01 9.02 9.03 9.04 9.05 9.06 Availability of latest technologies .......................... 5.2 ............61 Firm-level technology absorption .......................... 4.6 ............81 FDI and technology transfer.................................. 5.2 ............24 Internet users/100 pop.*......................................31.0 ............79 Broadband Internet subscriptions/100 pop.* ...... 10.0 ............52 Internet bandwidth, kb/s/capita*........................... 2.3 ............84

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 ................................... 6.3 ............75 Malaria cases/100,000 pop.* ................................ 9.0 ............80 Business impact of tuberculosis ........................... 5.9 ............45 Tuberculosis incidence/100,000 pop.* ................. 17 ............38 .0 Business impact of HIV/AIDS ............................... 5.2 ............71 HIV prevalence, % adult pop.* ............................. 0.3 ............69 Infant mortality, deaths/1,000 live births*........... 14.7 ............68 Life expectancy, years*....................................... 75.3 ............50 Quality of primary education................................. 2.8 .......... 121 Primary education enrollment, net %* ............... 98.1 ............22

10th pillar: Market size
10.01 Domestic market size index, 1–7 (best)*.............. 5.4 ............11 10.02 Foreign market size index, 1–7 (best)* ................. 5.9 ............14

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 .......................................... 4.8 ............63 Local supplier quality............................................. 4.8 ............53 State of cluster development................................ 4.0 ............41 Nature of competitive advantage .......................... 3.3 ............72 Value chain breadth ............................................... 4.0 ............40 Control of international distribution....................... 4.0 ............70 Production process sophistication ........................ 4.1 ............46 Extent of marketing............................................... 4.2 ............59 Willingness to delegate authority ......................... 3.6 ............69

5th pillar: Higher education and training
5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 Secondary education enrollment, gross %*....... 89.9 ............64 Tertiary education enrollment, gross %* .............27 ............79 .2 Quality of the educational system ........................ 3.1 .......... 107 Quality of math and science education ................ 2.8 .......... 126 Quality of management schools ........................... 4.5 ............49 Internet access in schools..................................... 3.8 ............82 Availability of research and training services ........ 4.5 ............41 Extent of staff training .......................................... 3.8 ............80

12th pillar: Innovation
12.01 12.02 12.03 12.04 12.05 12.06 12.07 Capacity for innovation.......................................... 3.0 ............ 76 Quality of scientific research institutions .............. 4.0 ............54 Company spending on R&D.................................. 3.0 ............79 University-industry collaboration in R&D............... 4.0 ............45 Gov’t procurement of advanced tech products..... 3.5 ............75 Availability of scientists and engineers ................. 3.9 ............86 Utility patents granted/million pop.* ..................... 0.9 ............58

Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 89.

The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum

2.1: Country/Economy Profiles

Mexico

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