ANKARA – The few countries in the world with advanced digital economies and skills, robust social safety nets and previous experience are able to handle the impact of the novel coronavirus pandemic, a report released yesterday by the World Economic Forum (WEF) found.
In its Global Competitiveness report using data from 37 countries to forecast which ones would be best prepared for recovery and future economic transformation, the WEF found that while none of these countries are fully ready, some are better placed than others.
According to the Anadolu Agency, among the various metrics that it examined, the report found that Denmark, Estonia, Finland and the Netherlands are best prepared to shift to a greener economy.
"The transition to a greener and more inclusive economy must be underpinned by significant investments in infrastructure, including an expansion of digital networks," it said.
Projecting that a 10% rise in readiness scores could lead to a US$300 billion (RM1.2 trillion) increase in the GDP figures of these 37 countries combined, it noted, however, that these priorities for transformation should be considered for their multiple effects on growth, inclusion and sustainability.
On progressive taxation – a key driver of economic transformation – South Korea, Japan, Australia and South Africa scored highest in the report, it added.
It also underlined that future-ready education, labour laws and income support should be better integrated to expand social protection.
Germany, Denmark, Switzerland and the UK are relatively better prepared than others to combine adequate labour protection, with new safety net models.
According to the WEF, incentivising and expanding patient investments in research, innovation and invention can create new "markets of tomorrow" and drive growth.
In light of this, Finland, Japan, the US, South Korea and Sweden emerged as better prepared to create such markets.
The report suggested that countries should expand their focus beyond a narrow return to growth as the global economy recovers from the pandemic's economic fallout. – Bernama, December 18, 2020
