UNCTADstat – Productive Capacities Index

UNCTAD’s Productive Capacities Index is a dynamic and sensible instrument to assist creating international locations in understanding the standing of their productive capability and the way this may be improved.

It builds on UNCTAD’s long-standing work on productive capacities, that are important for producing inclusive and sustained financial progress and reaching sustainable growth.

The PCI covers 194 economies for the interval 2000-2022. The set of productive capacities and their particular mixtures are mapped throughout 42 indicators. This makes our PCI multidimensional in its analytical skills.

The PCI might help diagnose the areas the place international locations could also be main or falling behind, spotlighting the place insurance policies are working and the place corrective efforts are wanted. It suggests a roadmap for future coverage actions and interventions underneath every of its eight elements: human capital, pure capital, power, ICTs, structural change, transport, establishments and the non-public sector.

The PCI was developed in response to the ECOSOC decision (E/RES/2017/29), encouraging UNCTAD “to pursue its methodological work to measure progress in and determine obstacles to the event of productive capacities in creating international locations”.

The PCI has been peer-reviewed and validated at nationwide and regional ranges by main technical specialists throughout the UN system, in addition to by lecturers and authorities stakeholders.

Stakeholders in choose international locations have been educated on learn how to use the index of their growth policymaking processes. UNCTAD stands able to conduct extra coaching classes on the request of nations.

What are productive capacities?

UNCTAD has lengthy outlined productive capacities as “the productive assets, entrepreneurial capabilities and manufacturing linkages, which collectively decide the capability of a rustic to provide items and providers and allow it to develop and develop.”

• Productive assets are elements of manufacturing, together with several types of productive assets and capital. They embrace monetary capital and bodily capital, the latter comprising each equipment and gear (sometimes working on the agency / farm stage) and infrastructure.
• Entrepreneurial capabilities are the abilities, data, and data which enterprises have. They comprise entrepreneurship, entrepreneurial capabilities, and technological capabilities. They embrace the essential expertise required for funding, manufacturing and establishing linkages on the agency / farm stage.
• Manufacturing linkages are flows amongst productive models (corporations / farms) of products and providers, data, know-how and data, and productive assets, together with human assets). They embrace exchanges amongst productive models of various sizes (micro, small and medium-sized enterprises and enormous ones), and possession buildings (home / overseas, public / non-public), working in numerous sectors.

What function do productive capacities play?

Creating productive capacities, performs a central function in setting in movement the long-term strategy of structural transformation, which is the spine of sustainable growth. The out there proof exhibits no nation has developed with out fostering productive capacities and structural financial transformation.

Constructing the financial resilience of creating international locations stays a frightening problem. It relies upon essentially on creating, sustaining and utilizing productive capacities to understand growth aims. This requires a shift from the present fragmented and project-based interventions in the direction of coherent, economy-wide and programme-based approaches to eradicating binding constraints on growth. Actions and interventions on the home stage should be supported and complemented by further sturdy worldwide assist.

The PCI makes an essential contribution to those efforts. The index attracts on a long time of intensive analysis and coverage evaluation work, in addition to classes realized from UNCTAD’s technical assist to essentially the most weak international locations in creating key elements of their commerce and productive buildings.

The index is the primary complete try and measure productive capacities in all economies and assemble a multidimensional index that may present country-specific insights and diagnostics of productive capability growth.

PCI and its elements

The general index summarises the state of productive capacities in economies worldwide by computing scores that vary between 0 and 100 (boundaries not included).

PCI additionally gives nation scores to assist in understanding the sources of systemic vulnerabilities and figuring out the enablers of financial progress, together with progress in the direction of nationwide and international growth targets.

For statistical and measurement functions, the general PCI index is additional damaged down into the next eight classes: info and communication applied sciences (ICTs), structural change, pure capital, human capital, power, transport, the non-public sector and establishments.

Human capital
Human capital captures the training, expertise and well being situations possessed by inhabitants, and the general analysis and growth integration within the texture of society by means of the variety of researchers and expenditure on analysis actions. The gender dimension is mirrored by the fertility fee which at every improve reduces human capital rating.

Pure capital
Pure capital estimates the supply of extractive and agricultural assets, together with rents generated from the extraction of the pure useful resource, much less the price of extracting the useful resource. To seize commodity dependence, pure capital decreases as the fabric depth will increase.

Power
This class measures the supply, sustainability and effectivity of energy sources. Because of this, it’s composed by use and entry to power, losses in distribution and renewability of power elements and sources, and consists of the GDP generated by every unit of oil to focus on additional the significance of optimum power methods.

Transport
Transport measures the aptitude of a system to take folks or items from one place to a different. It’s outlined because the capillarity of roads and railway community and air connectivity.

Info and Communication Expertise (ICT)
Info and Communication Expertise estimates the accessibility and integration of communication methods throughout the inhabitants. It consists of fastened line and cell phones customers, web accessibility and server safety.

Establishments
Establishments goal at measuring political stability and effectivity by means of its regulatory high quality, effectiveness, success in combating criminality, corruption and terrorism, and safeguard of residents’ freedom of expression and affiliation.

Personal sector
Personal sector is outlined by the convenience of cross-border commerce, which incorporates time and financial prices to export and import, and the assist to enterprise when it comes to home credit score, velocity of contract enforcement and time required to begin a enterprise.

Structural Change
Structural change refers back to the motion of labour and different productive assets from low-productivity to high-productivity financial actions. This shift is presently captured by the sophistication and number of exports, the depth of fastened capital and the load of trade and providers on complete GDP. Structural change also can occur inside a given sector offered that binding constraints in a selected sector are recognized and successfully addressed.

Information Sources and Method

The PCI information are drawn from quite a lot of internationally comparable and rigorous information sources, together with UNCTADstat, the World Financial institution, the World Well being Group, UNESCO, the OECD, the Worldwide Telecommunications Union, Worldwide Civil Aviation Authority, UNEP, and lots of others.

The PCI was calculated following rigorous internationally acknowledged statistical and econometric methodologies for creating a composite index.

We labored with knowledgeable statisticians from UNCTAD, the United Nations Improvement Programme, UN Division of Financial and Social Affairs, and main lecturers to look overview and validate the methodology.

As with all composite index and all statistical indicators, there are limitations to the PCI. Above all, the PCI scores are finally a mirrored image of the accuracy and availability of the info used. The out there information are restricted for sure indicators and for some international locations.

The outcomes are additionally depending on the methodology used and the assumptions made. The PCI’s worth lies in its aptness, methodological rigour and robustness, as a pointer that allows nationwide resolution makers to realize a way of the present state of productive capacities.

See Also

The Maebiki Ooga 前挽大鋸 – Covington & Sons Instruments

Extra on the PCI methodology is offered in UNCTAD Productive Capacities Index: Methodological Approach and Results.

PCI publicatons

PCI visualization

The interactive maps introduced beneath have been designed to assist customers discover PCI information over time and house. Visualizing information spatially is a crucial instrument for revealing geographical patterns. The PCI outcomes introduced cowl 194 economies over the interval 2000–2022.

Measuring and benchmarking productive capacities globally reveals vital gaps, not solely between developed and creating economies, but in addition amongst creating international locations themselves. The Productive Capacities Index demonstrates that variations in socio-economic growth throughout international locations and areas are a consequence of gaps of their productive capacities.

Structurally weak and weak economies, together with the least developed international locations (LDCs) and landlocked creating international locations (LLDCs) carry out notably poorly on PCI.

World map – PCI total and part indices

Regional maps – PCI total and part indices

Common total PCI scores for all financial teams improved in 2000–2022, though to various levels. Nonetheless, there are vital gaps within the common scores noticed throughout and between the totally different teams. With regard to LDCs and LLDCs, their total PCI scores was pushed by their excessive ranges of pure capital, which entrenches elevated commodity dependence somewhat than facilitating financial diversification or structural transformation. General traits additionally present communality amongst all teams, particularly, a steeper rise within the first half of the interval and a extra average improve within the second half.

Creating international locationsLeast developed international locations (LDCs)Landlocked creating international locations (LLDCs)