Global Competitiveness Index (2015-2016) for Black Sea Countries

According to the Global Index (2015-2016) data by World Economic Forum (WEF), Black Sea countries
have not performed as desired. Russia ranked 45th and first in the region, Turkey, Romania and Bulgaria
followed with 51st, 53rd and 54th positions, respectively.
It is significantly clear that countries, except Turkey, failed in innovation part of the index. Russias
international market ranked top 10 while Turkey remained in top 20 with its domestic market size. The
financial markets (availability of financial services, ease of access to loans, venture capital availability)
in the countries have not developed enough compared to other emerging economies.
Black Sea countries best competitiveness areas vary. Romania ranked the best (sharing with some
countries) in macroeconomic environment with its annual inflation change as 1.1%. Greece, struggling
to survive from the deep economic crisis reached their best position in infrastructure (34th) with their
fixed telephone lines. Bulgaria has been trying to focus on technology research and development and
their technology readiness competed as the countrys best (38th). Georgia has made the critical steps in
World Banks Doing Business Report and ranked best in labor market efficiency (32) with her flexibility
of wage determination. Ukraine, heavily affected by the serious conflict with Russia, received its highest
rank (34th) in higher education and training section in terms of the quantity of the education.

Country

Ranking

Basic
Requirements

Efficiency
Enhancers

Innovation and
Sophistication
Factors

Market
Size

Financial
Market
Development

Bulgaria

54

68

50

94

65

59

Georgia

66

50

77

118

99

68

Greece

81

74

62

77

52

131

Romania

53

70

44

84

43

46

Russia

45

47

40

76

95

Turkey

51

75

48

56

16

64

Ukraine

79

101

65

72

45

121

Basic Requirements: institutions, infrastructure, macroeconomic environment, health and primary education
Efficiency Enhancers: higher education, goods market, labor market, financial market development, tech readiness, market size
Innovation and Sophistication Factors: business sophistication and innovation

The positive outcome from this short analysis is that all Black Sea countries realized positive progress
in competitiveness in these 5 years and they reached better positions than they were in 2010. With
Turkeys rapid financial developments, Greeces quarterly economic growth, Georgias expanding
investor friendly climate, the better relations between Ukraine and Russia and crucial research and
development targets of Romania Bulgaria (Romania has currently stopped entrepreneurs to pay
revenue tax as long as their R&D works continue) will help countries to reach better rankings for 20162017 index.

Global Competitiveness Ranking (WEF)

100

90

80

70

60

50

40
2010
Bulgaria

2011
Georgia

2012
Greece

2013
Romania

2014
Russia

Turkey

2015
Ukraine