The Global Sustainable Competitiveness Index 2019

Methodology
Table of
Contents
It is now widely accepted that economic activities have adverse impacts or sideeffects
on the non-financial assets of a country. The negative impacts of
economic activities - including negative impacts on the social fabric and
cohabitation within a society - can undermine or even reverse future growth and
wealth creation. Due to the omission of key non-financial indicators and
performance that are fundamental to sustain economic activities,
conventionally used measurements to measure wealth of nations such as the
GDP have limited informative value for the future development of a country.
Sustainable competitiveness means the ability of a country to meet the needs
and basic requirements of current generations while sustaining or growing the
national and individual wealth into the future without depleting natural and
social capital.
The Sustainable Competitiveness Index is built and calculated based on the
sustainable competitiveness model that covers 106 data indicators grouped in5
pillars:
Social Cohesion is the fundamental stability required to maintain interruption-free
economic activities: the health of populations, equality, security and freedom
within a country
• Natural Capital is the based to sustain a society and economic activities:
the given natural environment within the frontiers of a country, including
availability of resources, and the level of the depletion of those resources.
• Resource Intensity is a measurement of efficiency, and thus an element
of competitiveness: the efficiency of using available resources (domestic
or imported) as a measurement of operational competitiveness in a
resource-constraint World.
• Social Cohesion is the fundamental stability required to maintain
interruption-free economic activities: the health of populations, equality,
security and freedom within a country
• Sustainable Innovation is key to sustain economic development in the
globalised market: the capability of a country to generate wealth and
jobs through innovation and value-added industries in the globalised
markets
• The Governance framework is the environment businesses and a national
economy are operating in. It is key to future development, not only for
software, but also hardware.
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