REGION
Backward steps in competitiveness stakes
The Global Competitiveness Report, published on September 28
by the World Economic Forum (WEF), reveals that there is a growing
gap between the competitiveness of the region's business sectors
and that of US companies. On the day before the Dominican Republic
_ Central American Free Trade Agreement (DR-CAFTA) came into
force, and despite the fact that five of the region's governments
are effectively in the hands of business elites, Honduras was
the only country in Central America not to drop down the global
competitiveness rankings. Among the "most problematic factors"
for Central American businesses are corruption, insecurity,
limited access to financial resources and erratic public policy
decisions. According to the report, Guatemala and Honduras have
the worst levels of "favoritism" in public institutions,
and Guatemala stands out as the country where organized crime
exercises the biggest influence on the public sector (ranked
117 out of 117). Guatemala is also ranked last in terms of "additional
costs to businesses caused by crime and violence".