The World Governments Summit (WGS) unveiled the second version of the Productiveness Potential Index (PPI), created in collaboration with Technique& Center East, a part of the PwC community.
This newest version builds on final yr’s launch by increasing its scope to incorporate 60 nations, up from 25, providing an much more complete have a look at what drives productiveness in immediately’s world.
With its progressive framework, the PPI redefines how productiveness is measured, integrating dimensions important for our age, corresponding to environmental sustainability, well-being, innovation, and institutional high quality.
The report estimates the untapped potential of Gulf Cooperation Council (GCC) economies, exhibiting how enhancing their weakest productiveness determinants might speed up regional GDP progress from 3.5 % to six.0 %, including $2.8 trillion to the area’s GDP over the subsequent decade.
General, if all nations within the PPI pattern have been to enhance their weakest productiveness indicator to match that of the best-performing friends, it might increase the worldwide financial system by $87 trillion.
Regionally, Saudi Arabia leads among the many GCC nations with the PPI rating of $69.3 per hour labored, adopted by Kuwait ($60.8), Qatar ($57.2), and Bahrain ($56.9). The UAE scored $48.7 per hour labored within the evaluation.
Notably, Bahrain, Qatar, Saudi Arabia and the UAE rank among the many international Prime 10 within the ‘bodily capital’ pillar, including $22-24 per hour labored to their productiveness potential.
Bodily capital refers to dependable infrastructure, well-maintained gear, and appropriately utilized applied sciences that each one contribute to higher productiveness.
GCC’s success demonstrates how focused insurance policies and investments in manufacturing, logistics, and web infrastructure can drive fast progress throughout sectors.
Productiveness has lengthy been the engine of recent economies, influencing international competitiveness, high quality of life, and long-term prosperity. But conventional measures usually fall quick, failing to seize the complexity of Twenty first-century challenges like local weather change, biodiversity loss, social transformation, and growing old populations. These outdated instruments additionally look backward, analysing previous efficiency moderately than figuring out future alternatives.
The Potential Productiveness Index is a forward-looking, transformative software that allows nations to know their true productiveness potential and pinpoint the drivers that may unlock it. The PPI expands conventional metrics—human capital, bodily capital, and innovation—to incorporate social capital, pure capital, and institutional high quality, providing leaders a contemporary lens by way of which to deal with immediately’s challenges.
Dima Sayess, associate at Technique& Center East and director of the Ideation Centre, emphasised the transformative potential of the findings: “Our evaluation exhibits that non-traditional measures of productiveness are shaping the course of change regionally and globally. Social belief, the standard of establishments and environmental indicators all play a task in driving, or hindering, financial progress. Understanding these mechanisms can allow policymakers to develop efficient and focused options.”
The PPI stands out as a cutting-edge software for 3 key causes: Pinpoints strengths and weaknesses: Nations can simply establish areas the place they excel and the place they lag; Concentrate on recreation changers: It highlights essentially the most impactful levers for productiveness and progress, utilizing benchmarks from top-performing nations; Actionable Pathways: The Index gives policymakers a transparent roadmap to shut gaps, leapfrog efficiency, and attain the degrees of the world’s best economies.
Powered by a machine-learning mannequin, the PPI combines superior analytics with the newest educational insights on productiveness. Its robustness has been rigorously examined by main worldwide economists, guaranteeing its credibility and relevance.
“The Productiveness Potential Index gives policymakers important insights and a sensible software to establish and give attention to the areas with the best potential to spice up productiveness, and subsequently their financial progress,” mentioned Chadi Moujaes, associate with Technique& Center East.
The report revealed important alternatives and traits: ‘Past GDP’ Alignment: The PPI aligns with the Past GDP motion, showcasing how progress and innovation more and more intersect with decarbonisation and social cohesion. This makes the PPI a useful software for driving progress towards the UN Sustainable Growth Objectives (SDGs) and the 2030 Agenda.
Secondly, Efficient Governance Drives Productiveness: Properly-functioning establishments assist thriving entrepreneurship and innovation ecosystems while guaranteeing environment friendly use of pure, human, and mental capital. Conventional measures of productiveness usually neglect the significance of institutional high quality, which is why this new proof is so important for policymakers.
Lastly, Highlight on STEM: Whereas human capital and bodily capital are the foundational pillars for all nations with regards to productiveness, scientific analysis and new patents differentiate productiveness potential “winners” from different economies. We count on this international shift in the direction of knowledge-driven progress to proceed.
This version options a web-based coverage simulator which permits customers to check the efficiency of 60 nations throughout 19 indicators. The software supplies actionable insights, answering the important query: “What might a rustic’s productiveness appear to be if it totally optimised its assets and capabilities?”
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