Beyond Cost 2024

Fiscal policy and regulation International tax competitiveness –International Tax Competitiveness Index measures the competitiveness and neutrality of tax systems by evaluating over 40 tax policy variables.30 –Unit: Score 0-100 (best) Incentives for investment –Government expenditure on economic affairs (percentage of GDP) measures expenditures focused on economic development and improving the investment climate.31 –Unit: Percentage of GDP Ease of doing business –Index of Economic Freedom measures the degree of economic freedom available to individuals and businesses, considering two quantitative and qualitative factors, grouped into four broad categories, or pillars, of economic freedom: rule of law (property rights, government integrity, judicial effectiveness); government size (government spending, tax burden, fiscal health); regulatory efficiency (business freedom, labour freedom, monetary freedom) and open markets (trade freedom, investment freedom, financial freedom).32 –Unit: Score 0-100 (best) Regulatory quality and stability –Regulatory quality measures perceptions of the government’s ability to implement sound policies and regulations.33 –Unit: Score -2.5-2.5 (best) Access to capital for transformation projects –Domestic credit to the private sector refers to the financial resources provided to the private sector by financial institutions, expressed as a percentage of a country’s GDP . It is an indicator of the financial sector’s role in supporting the private economy by supplying loans and other credit forms.34 –Unit: Percentage of GDPGeopolitical landscape Perception of safety –Perception of safety measures the likelihood of political instability or politically motivated violence, including terrorism.35 –Unit: Score -2.5-2.5 (best) Trade agreements –Regional trade agreements are tracked in accordance with the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). This analysis shows the number of trade agreements a country is part of and measures how this affects cross-border trade and investment.36 –Unit: Numeric, count Tariffs affecting cross-border trade and investment –The tariffs affecting cross-border trade and investment indicator measures the average weighted tariff rates imposed on imported goods and services. Higher tariffs typically create barriers to trade and can discourage foreign investment by increasing the cost of imported inputs and goods.37 –Unit: Score 0-100 (best) Diplomatic relations and alliances –The Global Diplomacy Index assesses the strength and effectiveness of a country’s diplomatic relationships, strategic alliances and international partnerships. This includes bilateral and multilateral agreements that facilitate economic cooperation, trade, security and defence collaboration.38 –Unit: Score 0-100 (best) Rule of law –Rule of law captures perceptions of the extent to which agents have confidence in and abide by the rules of society, including the quality of contract enforcement, property rights, the police and the courts.39 –Unit: Score -2.5-2.5 (best) Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains 28