Since Hong Kong gained its independence in 1997, the focus has been creating structures and systems that can help it remain a global hub for business. Now, these efforts have been reflected in the 2017 review by the International Institute for Management Development that ranked Hong Kong number one after beating other 63 states included in the study.
This does not come as a surprise. In the last two years, Hong Kong ranking ranged from position one to three except in 2014 when it slid to number 4. This is a clear pointer of the global recognition of the deep roots and frameworks that Hong Kong has installed.
The main factors that catapult Hong Kong to position one
The International Institute for Management Development uses four indicators when evaluating states of their economic competitiveness.
These indicators include infrastructure, business efficiency, government efficiency, and economic performance. Out of these four indicators, it was only one pillar that Hong Kong performed dismally.
- Government efficiency: Hong Kong emerged position one because of its support systems that have been installed and tested for many years.
- Infrastructure: The performance of this indicator improved slightly compared to the 2016 ranking. It came up from position 21 to position 20.
- Business efficiency: This is the indicator that won Hong Kong most points because of the commitment to support businesses. Whether at startup or any other level, the Hong Kong administration has demonstrated its commitment to ensuring that success is achieved.
- Economic performance: This is the only indicator that took a dip in the survey. The performance took a nosedive from position 5 in 2016 to position 11 in 2017.
The top ranking of Hong Kong economic competitiveness was slightly shadowed by the poor show in the digital competitive economies.
Even as Hong Kong celebrates, it must look at the main causes of a poor show in the alternative ranking to continue ranking at the top.