2017 Change Readiness Index primary and secondary sources

2017 Change Readiness Index sources

More than 125 secondary data variables were used to calculate the 2017 Change Readiness Index as well as 26 primary survey question responses, which were gathered from 1,372 country specialists from 136 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

Enterprise capability Primary variables Secondary variables
Labor market N/A Rigidity of Employment (Fraser Institute), Hiring and Firing Practices (WEF GCI), Cooperation in Labour-Employer Relations (WEF GCI), Flexibility of Wage Determination (WEF GCI), Pay and Productivity (WEF GCI)
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 (IMF), Diversity of Exports by Variety of Products Exported (UNCTAD)
Economic openness N/A Tariff rate applied, weighted mean (WB WDI), Prevalence of trade barriers (WEF GCI), Business impact of rules on FDI (WEF GCI), Time to export (WB DB), Cost to export (WB DB), Cost to import (WB DB), Time to import (WB DB), Prevalence of foreign ownership (WEF GCI), Trade Freedom (HF - IEF)
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)? Capacity for Innovation (WEF GCI), Global Innovation Index – R&D (Cornell University - GII), Researchers in R&D per Million Persons (WB/UNESCO),R&D Expenditure (% of GDP) (WB/UNESCO), Quality of Scientific Research Institutions (WEF GCI), Company Spending on R&D (WEF GCI), University-Industry Collaboration in R&D (WEF GCI), Availability of Scientists and Engineers (WEF GCI)
Business environment How effective is your country's government at balancing the interests of declining/contracting economic activities with expanding, emerging or new activities? Quality of Overall Infrastructure (WEF GCI), (Quality of Roads (WEF GCI), (Quality of Railroad Infrastructure (WEF GCI), Quality of Port Infrastructure (WEF GCI), (Quality of Air Transport Infrastructure (WEF GCI), Available Airline Seats (WEF GCI), Number of Air Passengers (WB WDI), (Quality of Electricity Supply (WEF GCI), Broadband Internet Subscribers per Head (WB WDI), Value Lost to Electrical Outages (WB WDI)
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?
Availability of Financial Services (WEF GCI), Financing Through Local Equity Market (WEF GCI), Venture Capital Availability (WEF GCI), Soundness of Banks (WEF GCI), Domestic Credit Provided by Banking Sector (WB WDI)
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? Quality of Overall Infrastructure (WEF GCI), (Quality of Roads (WEF GCI), (Quality of Railroad Infrastructure (WEF GCI), Quality of Port Infrastructure (WEF GCI), (Quality of Air Transport Infrastructure (WEF GCI), Available Airline Seats (WEF GCI), Number of Air Passengers (WB WDI), (Quality of Electricity Supply (WEF GCI), Broadband Internet Subscribers per Head (WB WDI), Value Lost to Electrical Outages (WB WDI)
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 (Carbon Dioxide Information Analysis Center (USA) & World Bank), Renewables Ratio (IEA)
Informal sector How effectively is the informal sector being integrated into the formal economy in your country? N/A
Technology infrastructure N/A Mobile Phone Subscribers (WB), Global Innovation Index – Infrastructure Pillar (Cornell University - GII)

Pillar 2: Government capability

Government capability Primary variables Secondary variables
Macroeconomic framework How effective is the government in your country in pursuing macroeconomic policies that foster macroeconomic stability?
How effective is the government in your country in supporting long-term economic growth?
Inflation Stability (IMF), Exchange Rate Stability (WB), Credit default rates (NYU - Stern School of Business), Current account deficit (IMF), Average Inflation (IMF)
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 (IPU), Government Effectiveness Index (WB WGI), Corruption Index (WB WGI), State Legitimacy (FFP), Public Services (FFP), Transparency of Government Policymaking (WEF GCI), Resource Efficiency (BTI), Political stability and absence of violence (WB WGI)
Regulation N/A Regulatory Quality Index (WB WGI), Efficiency of Legal Framework in Challenging Regulations (WEF GCI),Burden of government regulation (WEF GCI)
Fiscal and budgeting How effective is the government in your country at mobilising, managing, and using resources to respond to short-term negative shocks without undermining long-term macroeconomic stability? Wastefulness of Government Spending (WEF GCI), Government Budget Balance (% GDP) (WEF GCI), Gross Government Debt (% of GDP) (IMF)
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 (WB WGI), Organised Crime (WEF GCI), Efficiency of legal framework in settling disputes (WEF GCI), Rule of Law (BTI)
Government strategic planning and horizon scanning How effective is the government in your country at identifying and capitalizing on positive change opportunities? N/A
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)
Share of renewable energy sources as of total Energy supply (IEA), Co2 emission per PPP GDP (WB)
 
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 (% of energy use) (WB WDI)
Land rights To what extent do land registration procedures within your country establish and enforce clear and official ownership of land? The international property rights index (PRA), Quality of land administration index (WB)
Security N/A Business costs of crime and violence (WEF CGI), Business costs of terrorism (WEF CGI)

Pillar 3: People & civil society capability

People & civil society Primary variables Secondary variables
Human capital N/A Adult Literacy Rate (WB WDI), (Secondary Enrolment Rate (WB WDI), Tertiary Enrolment Rate (WB WDI), (Availability of Training and Research Services (WEF GCI), Extent of Staff Training (WEF GCI), (Quality of Education (WEF GCI), Quality of Math and Science Education (WEF GCI), Quality of Management Schools (WEF GCI), Country capacity to retain talent (WEF GCI)
Entrepreneurship To what extent are there effective incentives in your country that encourage entrepreneurship? Entrepreneurship and Opportunity Sub-Index (LI), Percentage of population with a bank account (WB)
Civil society To what extent are civil society organizations allowed to influence and participate in important policy debates? Political and social integration (BTI), Voice and Accountability (WB WGI), Human rights (FFP-FSI), EIU Democracy Index (EIU)
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 (WB WDI), External Intervention Measure (FFP-FSI)
Technology use N/A Global Innovation Index (Cornell University), Used a mobile phone to pay utility bills (WB), Internet Access in Schools (WEG GCI)
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? Labour 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)
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% (WB WDI), Poverty headcount ratio at national poverty line (WB WDI) Loss due to inequality in income (%) (UN HDI), Uneven economic development (FFP-FSI)
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 Age-watch Index (Help Age International), Percentage of children under 5 years of age who are stunted (WHO), Out-of-School-Rates (UNESCO), International Migrant Stock (WB WDI), Working Age Population Forecast (UN)
Access to information N/A Press Freedom Index (Reporters Without Borders), E-Government Online Service (United Nations
E-Government Survey)
Health N/A Access to clean water (WB), Access to Improved Sanitation (WB WDI), Healthcare spending as % of GDP (WB WDI), Nurses and Midwifes per million (WB WDI)

Acronyms

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. In limited instances, KPMG has estimated missing data based on the best estimation techniques available. Risks in the use of survey data are also inherent, but were minimized through the use of well-respected sources for secondary survey data, and for the primary survey, through careful selection of respondents against strict criteria, and provision of guidance on the survey scoring systems.‎

2017 Change Readiness Index

Assessing countries’ ability to manage change and cultivate opportunity.

 
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