GLOBAL COMPETITIVENESS, BUREAUCRACY AND THE QUALITY OF INSTITUTIONS
GLOBAL COMPETITIVENESS, BUREAUCRACY AND THE QUALITY OF INSTITUTIONS

Summary/Abstract: The global competitiveness is related to the global economic crises. For year 2011 the International Monetary Fund (IMF) predicts growth of 6.25 percent for emerging markets, compared with 2.25 percent for advanced economies in 2010. While emerging economies have, for the most part, bounced back to healthy growth, advanced economies face continuing difficulties such as persisting unemployment, weak demand, and spiraling debt, while still struggling with reforms in the financial and labor markets, among other challenges. According to the Global Competitiveness Report, the quality of institutions has a strong bearing on competitiveness and growth. Thus, it influences investment decisions and the organization of production and plays a key role in the ways in which societies distribute the benefits and bear the costs of development strategies and policies. It is important to discuss the role of institutions in a global economy and beyond the global economic crises. The role of institutions became more important due to globalization. According to the Global Risk Report 2011, globalization has generated sustained economic growth for a generation. It has shrunk and reshaped the world, making it far more interconnected and interdependent. The public institutions became connected to the European market and European economy. However, bureaucracy could become an obstacle in the economic growth.

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