Jordan on the Global Talent Competitiveness Index 2018 PDF

Contents 1. Introduction............................................................................................................................... 3 7. Jordan and the GTCI................................................................................................................... 5 8...

Contents 1. Introduction............................................................................................................................... 3 7. Jordan and the GTCI................................................................................................................... 5 8. Jordan’s Strongest and Weakest Sub-Indicators..................................................................... 10 9. Policy Recommendations........................................................................................................ 11 Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 2 1. Introduction The Global Talent Competitiveness Index talented people, namely through (GTCI) is an annual index that measures education and training. and ranks 119 countries based on their 4. Retain: measures the ability of a talent competitiveness. According the country to keep its talented people creators of the GTCI (Institut Europeen from emigrating elsewhere through d’Administration des Affairs / INSEAD) creating a comfortable and “talent competitiveness refers to the set sustainable lifestyle. of policies and practices that enable a 5. VT Skills: measures quality of mid- country to develop, attract, and level skills (such as vocational and empower the human capital that technical) in a country as well as the contributes to productivity and employability of those with such skills. prosperity”. 6. GK Skills: measures the quality of high- level skills (such as post-graduate The GTCI measures how well a country degrees) in a country as well as the uses its most valuable resource: its economic impact of those with such people. Human capital (or talent) is skills. central to economic development and prosperity. In fact, the creators of the Given the importance of human capital in index explain, “talent is the most economic growth and development, this powerful resource for driving report, issued by the JSF, sheds light on competitiveness and boosting prosperity, the Global Talent Competitiveness Index. at the country, city and organization This interest follows a number of JSF level.” The ultimate goal of the GTCI is to publications that considered social identify the areas for reform so that capital and physical capital. countries can become more competitive in the global marketplace. At the outset, it is crucial to distinguish between the Talent Competitiveness To measure talent competitiveness, the Index, issued by INSEAD, and the Global GTCI groups indicators into six pillars: Competitiveness Index, issued by the enable, attract, grow, retain, vocational World Economic Forum. The Talent Index and technical (VT) skills, and global concentrates on the policies and knowledge (GK) skills. procedures that aim to enhance human 1. Enable: measures the ability of a capital and human talent competiveness country to facilitate talent for countries relative to each other. The development through its regulatory, Global Competitiveness Index, on the market, and business environments. other hand, concentrates on the 2. Attract: measures the ability of a institutional quality, infrastructure, and country to attract talented people the economic and investment (both domestically and globally) into environment competitiveness across the its workforce. world. 3. Grow: measures the ability of a country to create and develop its own Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 3 Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 4 2. Jordan and the GTCI Since the creation of the GTCI in 2013, Jordan has been continually improving in its score and rank. Jordan currently ranks 50 out of 119 countries (Figure 1) with a GTCI score of 44.7 (Figure 2) for 2018. This is up from 70 in 2015-2016 and 58 in 2017. Jordan’s strongest pillars are its ability to attract, retain and enable talent. These pillars contributed in enhancing Jordan’s ranking on the index. However, Jordan weaknesses are concentrated in its ability to grow talent as well as the quality of its talent in terms of global knowledge (GK) skills. To asses Jordan’s ranking in comparison with First, in terms of the overall GTCI score, while other countries, here is how Jordan Switzerland tops all countries (Figure 3), compares to other countries globally and Jordan reflects a superior score to Russia, within the Middle East and North Africa Turkey, Brazil, and India. (MENA) region. Figure 3: Jordan's GTCI Score vs. Other Countries Globally ScoreScore (out of 100) 100 79.9 75.43 80 67.77 62.63 58.51 55.57 52.95 60 50.55 48.01 44.7 44.22 40.45 38.86 36.78 40 Figure 2: Jordan's GTCI Scores by Pillar (out of 100) 20 GTCIGTCI 100 0 52.6 49.68 55.31 46.03 44.7 50 34.34 30.35 0 Enable Attract Grow Retain VT Skills GK Skills GTCI Overall Second, In addition, in the context of the Arab countries UAE ranked as the first in the Arab countries and the 17th on the World. To make better understanding about Jordan’s situation on the index in regard to the best country in the world and the best country in the region; (Figure 4) compares Jordan to UAE and Switzerland in terms of rankings and pillars scores. Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 5 Figure 4: Jordan GTCI Ranking and Scores Vs. Switzerland and UAE Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 6 Third, relative to the MENA countries, Jordan’s score and rank are encouraging. Jordan ranks 4th overall in the MENA region after the UAE, Qatar, and Saudi Arabia (Figures 5,6). Figure 5: Jordan's GTCI Score vs. Other Arab Countries GTCI Score (out of 100) 80 68.88 61.9 60 49.61 44.7 43.93 41.91 40.85 36.4 40 31.86 29.45 28.42 20 0 UAE Qatar Saudi Jordan Oman Lebanon Kuwait Tunisia Morocco Algeria Egypt Arabia Figure 6: Jordan's GTCI Ranking vs. Other Arab Countries UAE 17 Qatar 23 KSA 41 Jordan 50 Oman 56 Lebanon 60 Kuwait 65 Tunis 83 Morocco 98 Algeria 101 Egypt 104 0 20 40 60 80 100 120 Fourth, for a deeper understanding of how Jordan compares to its Arab neighbors, we looked at Jordan’s standing for each of the six GTCI pillars against the same subset of MENA countries. Across the different pillars, Jordan is consistently in the middle in terms of ranking. In fact, Jordan’s performance on the GTCI closely mirrors the average score of the MENA region as a whole (Figures 7-12). Figure 7: Jordan's "Enable" Ranking vs. Other Arab Countries UAE 11 Qatar 20 KSA 35 Oman 42 Jordan 51 Kuwait 65 Lebanon 87 Morocco 93 Tunis 103 Egypt 108 Algeria 112 0 20 40 60 80 100 120 Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 7  Figure 8: Jordan's "Attract" Ranking vs. Other Arab Countries UAE 3 Qatar 4 Oman 32 Jordan 39 Kuwait 41 KSA 44 Lebanon 79 Tunis 96 Morocco 100 Algeria 113 Egypt 115 0 20 40 60 80 100 120 140 Figure 9: Jordan's "Grow" Ranking vs. Other Arab Countries UAE 21 Qatar 23 KSA 53 Lebanon 62 Jordan 82 Oman 84 Kuwait 90 Tunis 94 Morocco 103 Algeria 116 Egypt 118 0 20 40 60 80 100 120 140 Figure 10: Jordan's "Retain" Ranking vs. Other Arab Countries UAE 28 KSA 33 Qatar 38 Oman 49 Kuwait 52 Jordan 53 Tunis 66 Algeria 72 Egypt 80 Morocco 83 Lebanon 91 0 10 20 30 40 50 60 70 80 90 100 Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 8  Figure 11: Jordan's "VT Skills" Ranking vs. Other Arab Countries UAE 1 Qatar 16 KSA 37 Lebanon 41 Jordan 54 Oman 55 Kuwait 68 Tunis 80 Algeria 83 Morocco 106 Egypt 116 0 20 40 60 80 100 120 140 Figure 12: Jordan's "GK Skills" Ranking vs. Other Arab Countries Lebanon 34 UAE 43 Tunis 54 Jordan 57 Egypt 59 KSA 60 Qatar 62 Morocco 81 Kuwait 87 Algeria 88 Oman 93 0 10 20 30 40 50 60 70 80 90 100 Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 9 3. Jordan’s Strongest and Weakest Sub-Indicators To better understand Jordan’s strengths and weaknesses in terms of talent competitiveness, JSF studied the specific sub-indicators that determined Jordan’s 6 pillar scores. Jordan performed very well on various sub-indicators across the pillars in comparison with other countries, even in pillars where its overall score was low. Overall, Jordan had multiple strong sub-indicators in the pillars “attract” and “GK skills.” Below are Jordan’s strongest scoring sub-indicators for talent competitiveness: Pillar Indicator Sub-Indicator GTCI Score Country Ranking Business Enable Ease of Hiring 89 25th Landscape External Attract Migrant Stock 90.27 8th Openness External Attract International Students 67.29 13th Openness Relevance of Education VT Skills Employability 62.02 26th System to the Economy Higher-Level Availability of Scientists GK Skills 73.53 13th Skills and Engineers New Product GK Skills Talent Impact 61.16 15th Entrepreneurial Activity While Jordan ranked very highly for several sub-indicators, it also had several sub-indicators with very low rankings. Again, these sub-indicators were spread out across the pillars; even in those with good scores overall. However, these problematic sub-indicators were more concentrated in the pillars “grow” and “enable.” Below are Jordan’s weakest scoring sub-indicators for talent competitiveness: Pillar Indicator Sub-Indicator GTCI Score Country Ranking Business Enable Ease of Redundancy 40 105th Landscape Market Enable Ease of Doing Business 44.61 96th Landscape Internal Attract Gender Earnings Gap 0 106th Openness Access to Grow Growth Personal Rights 18.43 106th Opportunities Formal Grow Vocational Enrollment 6.01 92nd Education Lifelong Prevalence of Training in Grow 0 92nd Learning Firms GK Skills Talent Impact High-Value Exports 3.39 92nd Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 10 4. Policy Recommendations Jordan’s strong performance in the 2018 Global Talent Competitiveness Index (GTCI) Sub-Indicator Ease of Redundancy in comparison with other Arab countries and globally points to the country’s continuous The ease of redundancy index measures efforts to develop its most valued resource: employment regulations with regard to the its people. Not only did Jordan rank 50th out hiring, firing, and redundancy of workers. A of 119 countries overall, it also scored in the poor score means that there is a lack of top 10 when compared to other countries in regulation protecting workers. Therefore, JSF its income group and region. Jordan's recommends that Jordan should take steps progress in the Global Competitiveness Index to increase the country’s regulatory in comparison with other countries should framework dedicated to the rights and stimulate greater effort on increasing the protections of redundant employees. competitiveness of the Jordanian talent and enhancing human capital in Jordan, As Sub-Indicator Ease of Doing Business improving the competitiveness of the economy will lead to higher levels of GDP per The other sub-indicator, ease of doing capita and lead to increased economic business, measures how easy it is to conduct activity and development within a country. business within a country. A low score indicates a weak regulatory environment Based on Jordan’s scores in the sub- that is not conducive to setting up a business. indicators, JSF has put forth a variety of To combat this problem, Jordan strategy recommendations discussed below that Forum dedicated a report titled ‘’Jordan in target Jordan’s weakest sub-indicators within the Doing Business Report 2018: The Way the GTCI. Concentrated efforts to improve Forward’’. That report discusses in details the scores on these sub-indicators will boost how Jordan can improve ease of doing Jordan’s overall score and ranking in the business and how to improve Jordan’s GTCI. Jordan’s public and private sectors ranking on the doing business report. must invest resources in further improving Jordan’s talent competitiveness due to its Pillar Attract positive economic impact. As per the Global Talent Competitiveness, The recommendations in this section are Index, Jordan performed well in external based on the problematic sub-indicators openness in attracting talent, while its discussed in the previous section. JSF weaknesses were concentrated in the sub- suggests some of the recommendations that indicators of internal openness. Specifically, can improve Jordan’s overall GTCI score. Jordan scored particularly low in terms of its These suggestions are grouped by pillar for gender earnings gap. clarity. (Neither the “retain” nor the “VT Skills” pillar had particularly weak sub- Sub-Indicator Gender Earnings Gap indicators so they are not targeted in these recommendations.) This sub-indicator measures the ratio between the estimated incomes earned by Pillar Enable females over the income earned by males within a country. As this ratio approximates In terms of enabling talent, Jordan zero, the gender earnings gap becomes performed poorly on the sub-indicators; ease wider. Although this sub-indicator does not of redundancy and ease of doing business. depend on the wage level only, but also on total income, the JSF recommends that Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 11 relevant legislation that prevents gender Pillar GK Skills wage gap must be enhanced. In addition, the JSF recommends that no effort should be For the “GK Skills” pillar, Jordan performed spared to encourage females to join the labor poorly on the high-value exports sub- market, and start their own businesses, and indicator. hence earn income. Pillar Grow Sub-Indicator High-Value Exports Jordan’s weaknesses in terms of talent In the GTCI, high-value exports specifically competitiveness are primarily concentrated measures high technology manufactures in its ability to grow talent. In this pillar, with high sophistication as a percentage of Jordan performed poorly on three sub- total manufactured goods exported. Jordan’s indicators: personal rights, vocational low percentage of high-value exports speaks enrollment, and prevalence of training in to a lack of technology manufacturing firms firms. in Jordan. To improve Jordan’s score on this sub-indicator, Jordan must make itself a Sub-Indicator Personal Rights more desirable place for technology Personal rights measures the strength of manufacturing. In addition, JSF had individual political rights in a country such as dedicated two papers entitled “Jordan’s freedom of speech and private property Product Space” and “Jordan's Product Space rights. To improve Jordan’s ability to grow - New Opportunities to Diversify Industrial talent, the Jordanian government must Exports”. These two papers discuss the encourage the development of a civil society sophistication and complexity of Jordanian to provide Jordanian citizens more products; they also tackle the productive opportunities to think and speak critically knowledge that exists within Jordan's about the world. industries, where Jordan can develop new products with added value and high Sub-Indicator Vocational Enrollment sophistication, which will in turn increase the overall sophistication and complexity of The vocational enrollment sub-indicator Jordan's industries and exports. calculates the percentage of the country’s students that are enrolled in vocational programs. By investing more resources into vocational programs, Jordan can create a more talented population and increase its overall talent competitiveness. Prevalence of Training Sub-Indicator in Firms Also, Jordan scored poorly on prevalence of training in firms, a sub-indicator that measures the percentage of firms that offer formal training. A poor score means that most firms do not provide sufficient training for their employees. To remedy this, JSF recommends that efforts must be made to implement training programs in each sector of the economy based on existing exemplary training programs. Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 12  Annex Figure 13: Country Profile by Pillar (Jordan) Figure 14: GTCI Key Indicators Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 13  Figure 15: Scores & Ranks 1. Enable Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 14 2. Attract 3. Grow Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 15 4. Retain 5. Vocational & Technical Skills Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 16 6. Global Knowledge Skills Jordan on the Global Talent Competitiveness Index 2018| APRIL 2018 17