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2019 Change Readiness Index Primary and Secondary Sources

2019 Change Readiness Index Sources

More than 125 secondary data variables were used to calculate the 2019 Change Readiness Index, as well as 25 primary survey question responses, which were gathered from 1,400 country specialists from 140 countries around the world.

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The full list of primary and secondary data variables and sources, and the primary survey questions are shown in the following tables, grouped by change readiness pillar.

Pillar 1: Enterprise capability

Sub-index

Primary survey

Secondary data

Sources

1.1 Labor market

N/A

Hiring and firing practices

WEF GCI

Cooperation in labor-employer relations

WEF GCI

Flexibility of wage determination

WEF GCI

Pay and productivity

WEF GCI

1.2 Economic diversification

How effective is your country at promoting a diversified economy in which a wide range of different sectors contribute to gross domestic product?

Diversity of exports by country exported to

UNCTAD

Diversity of exports by variety of products exported

UNCTAD

1.3 Economic openness

N/A

Tariff rate applied, weighted mean

WB WDI

Prevalence of non-tariff barriers

WEF GCI

Trade tariffs

WEF GCI

Enforcing contracts

WB DB

Time to export (days)

WB DB

Cost to export ($ per container)

WB DB

Cost to import ($ per container)

WB DB

Time to import (days)

WB DB

Prevalence of foreign ownership

WEF GCI

Trade freedom index of economic freedom

Heritage Foundation

1.4 Innovation, research and development

How effective are the public and commercial institutions in your country at financing, undertaking, and benefiting from innovation, research and development (R&D)?

Growth of innovative companies

WEF GCI

Global innovation index – knowledge creation pillar

Cornell University

Researchers in R&D per million persons

WB WDI

R&D expenditure (percent of GDP)

WEF GCI

Trademark applications

WEF GCI

R&D expenditure

WEF GCI

Multi stakeholder collaboration 

WEF GCI

Diversity of workforce

WEF GCI

1.5 Business environment

N/A

Average cost of bankruptcy procedures (percent of estate)

WB DB

Distortive effect of taxes and subsidies on competition

WEF GCI

Total tax rate

World Bank

Business freedom

Index of Economic Freedom

Strength of investor protection index (0-10)

WB DB

Competition in services

WEF GCI

Extent of market dominance

WEF GCI

Time taken to pay taxes (hours per year)

WB DB

1.6 Financial sector

How effective is the governance of the financial sector in your country in promoting financial stability?

 

How effective is the governance of the financial sector in your country in promoting broad access to finance?

Financing of SMES

WEF GCI

Venture capital availability

WEF GCI

Soundness of banks

WEF GCI

Domestic credit provided by banking sector percent GDP

WB WDI

1.7 Transport & utilities infrastructure

How effective is the government in your country at promoting well-functioning utility infrastructure that maximizes socio-economic development and economic growth?

Logistics performance index

World Bank

Quality of roads

WEF GCI

Railroad density

WEF GCI

Efficiency of train services

WEF GCI

Efficiency of seaport services

WEF GCI

Efficiency of air transport services

WEF GCI

Airport connectivity

WEF GCI

Number of air passengers, per thousand population

WB WDI

Electricity quality

WEF GCI

Broadband internet subscribers per head

WB WDI

Value lost to electrical outages

WB WDI

1.8 Enterprise sustainability

How effective is the private sector in your country in understanding and responding to threats and opportunities posed by climate change?

 

How effective is the private sector in your country at promoting environmental protection and avoiding environmental degradation?

CO2 emissions (kg per PPP $ of GDP)

World Bank

Percent of energy from renewables

International Energy Association

1.9 Informal sector

How effectively is the informal sector being integrated into the formal economy in your country?

Time to start a business (days)

WB DB

Cost to start a business (percent of income per capita)

WB DB

Percentage of employment which is vulnerable

World Bank

1.10 Technology infrastructure

N/A

Mobile phone subscribers

World Bank

Global innovation index - infrastructure pillar

Cornell

Pillar 2: Government capability

Sub-index Primary survey Secondary data Sources
2.1 Macroeconomic framework N/A
 
Inflation stability
Exchange rate stability
Credit default swap rates
Current account deficit
Average inflation

IMF

World Bank

NYU - Stern School of Business

IMF
IMF

2.2 Public administration and state business relations How effective is the government in your country at fostering a constructive relationship with business to promote a healthy and dynamic economy? Share of female MPs
Corruption index
State legitimacy
Public services
Government effectiveness index
Resource efficiency
Political stability and absence of violence
Inter Parliamentary Union
WB WGI
Fragile States Index
Fragile States Index
WB WGI
BTI
WB WGI
2.3 Regulation N/A Rigidity of employment
Regulatory quality index
Efficiency of legal framework in challenging regulations
Burden of government regulation

Fraser Institute

WB WGI

WEF GCI

WEF GCI

2.4 Fiscal and budgeting How effective is the government in your country at mobilizing, managing, and using resources to respond to short-term negative shocks without undermining long-term macroeconomic stability? Government budget balance as percent GDP
Gross government debt (percent of GDP)
World Bank
IMF
2.5 Rule of law To what extent is “respect for the rule of law” upheld in your country with an independent judiciary and high-quality institutions? Rule of law index
Efficiency of legal framework in settling disputes
Rule of law
WB WGI
WEF GCI
BTI
2.6 Government strategic planning and horizon scanning

How effective is the government in your country in supporting long-term economic growth?

How effective is the government in your country at identifying and capitalizing on positive change opportunities?

Future orientation of government WEF GCI
2.7 Environment and sustainability

How effective is the government in your country in understanding and responding to threats and opportunities posed by climate change?

How effective is the government in your country at promoting environmental protection and avoiding environmental degradation?

Environmental performance index Yale University
2.8 Food and energy security

To what extent is your country prepared to manage potential disruptions or unavailability of critical food supplies?

To what extent is your country prepared to manage potential disruptions or unavailability of critical energy supplies?

Energy imports, net (percent of energy use) World Bank
2.9 Land rights To what extent do land registration procedures within your country establish and enforce clear and official ownership of land? International property rights index
Quality of land administration index
Property Rights Alliance
WB DB
2.10 Security N/A Business costs of organized crime
Reliability of police service
Economic costs of violence
WEF GCI
WEF GCI
Institute for Economics & Peace

Pillar 3: People & civil society capability

Sub-index

Primary survey

Secondary data

Sources

3.1 Human capital

N/A

Adult literacy rate

UNESCO

Secondary enrolment rate

UNESCO

Tertiary enrolment rate

UNESCO

Quality of vocational education

WEF GCI

Extent of staff training

WEF GCI

Ease of finding skilled employees

WEF GCI

Pupil to teacher ratio in primary education

WEF GCI

School life expectancy

WEF GCI

Skillset of graduates

WEF GCI

3.2 Entrepreneurship

To what extent are there effective incentives in your country that encourage entrepreneurship?

Entrepreneurship and opportunity sub-index

Legatum Institute

3.3 Civil society

To what extent are civil society organizations allowed to influence and participate in important policy debates?

 

How effective are civil society organizations in advocating for policies and programs to address climate change?

Political and social integration

BTI

Voice and accountability

WB WGI

Human rights fragile states index

Fund for Peace

Democracy index

EIU

3.4 Safety nets

How effective is the provision of social safety-net assistance to people in need in your country, from the public sector and other sources (e.g., migrant transfers, NGOs, and charities)?

Social capital
 sub-index

Legatum Institute

Workers' remittances and compensation of employees, received ( percent of gdp)

WB WDI

External intervention measure

Failed States Index

3.5 Technology use

N/A

Global innovation index online creativity sub pillar

Cornell University

Used an account to make a transaction through a phone call

World Bank

Digital skills among active population

WEF GCI

3.6 Gender

How effective are institutions, laws, practices and customs in your country at providing women the same opportunities as men to participate in the economy?

Labor force participation

ILO

Ratio of female to male literacy rate

WB WDI

Ratio of female to male enrolment in primary education

WB WDI

Ratio of female to male enrolment in secondary education

WB WDI

Ratio of female to male enrolment in tertiary education

WB WDI

Gender inequality index

UNDP

Wage equality between women and men for similar work

WEF Gender Gap report

3.7 Inclusiveness of growth

How effective are the public and commercial institutions in your country in promoting economic growth that includes the poor, and does not exclude significant groups or regions?

Gini coefficient index

WB WDI

Income share held by highest 20 percent

WB WDI

Poverty indicator international poverty line $2 a day

WB WDI

Loss due to inequality in income (percent)

UNDP

Uneven economic development – fragile states index

Fund for Peace

Percentage of population with a bank account

World Bank

3.8 Demographics

How well prepared is your country to adapt to changes resulting from potential demographic shifts over the next decade, including an aging population or rising numbers of youth?

Global agewatch index

Helpage International

Percentage of children under 5 years of age who are stunted

WHO

Out-of-school-rates

UNESCO

International migrant stock (percent of population)

WB WDI

Working age population forecast

United Nations

3.9 Access to information

N/A

Press freedom index

Reporters without borders

E-government - online service

United Nations

3.10 Health

N/A

Access to clean water

WB WDI

Access to improved sanitation

WB WDI

Healthcare spending as  percent of GDP

WB WDI

Nurses and midwifes per 100,000

WHO

Access to health services

IHME

Source acronyms

BTI

Bertelsmann Transformation Index

GII

Global Innovation Index

EIU

Economist Intelligence Unit

FFP - FSI

Fund For Peace – Fragile State Index

IEA

International Energy Agency

HF - IEF

Heritage Foundation - Index of Economic Freedom

ILO

International Labour Organization

IMF

International Monetary Fund

IPU

Inter-Parliamentary Union

LI

Legatum Institute

NYU

New York University

OE

Oxford Economics

PRA

Property Right Alliance

UN HDI

United Nations Human Development Index

UNCTAD

United Nations Conference on Trade and Development

UNDP

United Nations Development Programme

UNESCO

United Nations Educational, Scientific and Cultural Organisation

WB DB

World Bank Doing Business Index

WB WDI

World Bank World Development Indicators

WB WGI

World Bank World Governance Indicators

WEF GCI

World Economic Forum Global Competitiveness Index

WEF GGGI

World Economic Forum Global Gender Gap Index

WHO

World Health Organisation

 

*As is the case with indices that rely to an extent on secondary data, CRI scores and ranks can be affected by statistical errors inherent in the underlying data. Additional statistical variation and uncertainty can result from the gaps in published official data for certain secondary indicators, especially in countries with low statistical availability and quality. Inherent risks in the accuracy of survey data were mitigated through careful selection of respondents against strict criteria, and provision of guidance on the survey scoring systems.‎

*All uses of the word ‘country’ or ‘countries’ in the 2019 Change Readiness Index (CRI) refers to both countries and jurisdictions. The term country is used for brevity.

© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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