08/07/2020 - 17:50 5797

The Competitive Industrial Performance Index (CIP index) is calculated by the United Nations industrial development Organization (UNIDO) starting in 2003. The frequency of publication of the index is every 2 years, with a delay of 2 years.

Uzbekistan ranked 92nd and was included for the first time in the CIP index, which currently measures the "Ability of countries to produce and export manufacturing goods at a competitive level" among 152 countries.

The CIP index as analytical tool

The 2018 CIP Index assesses and benchmarks the industrial competitiveness of 150 countries. Each country’s outcome is a reflection of its performance across the three dimensions of the CIP Index: (1) The capacity to produce and export manufactured goods; (2) Technological deepening and upgrading, and (3) World impact. The CIP Index enables cross-country comparisons of industrial competitiveness. Box 1.3 presents the functions of the CIP Index as an analytical tool in three steps.

First, the index allows countries to identify comparator countries. To provide a differentiated representation of competitiveness, the CIP report presents outcomes by different categories depending on the stage of industrialization, geographical region and indicator. Comparator countries can include neighbours, immediate competitors, potential competitors or role models. They may be comparable due to similarities in geography, availability of production factors, or types of goods produced.

Second, countries that perform best across the three dimensions of the CIP Index can serve as a benchmark for their comparators, given their specific circumstances. By highlighting areas in which other countries achieve higher CIP scores, the Index can support and guide policies for future industrial development. For example, the manufacturing sectors of countries that perform poorly in the CIP Index are characterized by inefficiencies in the allocation of factors of production, such as labour and capital.

Third, the CIP Index serves as a guideline, with an intuitive starting point to more detailed analyses for identifying and tackling these inefficiencies, thereby contributing to widespread productivity growth and structural change by using feasible targets that depend on the countries’ circumstances. As structural change is a longterm process, changes in the CIP Index are likely to be reflected several years after policies aimed at increasing competitiveness have been implemented

It should be noted that the index indicators are included in the UN sustainable development Goals, Sustainable Development Goal 9 - Creating a sustainable infrastructure, promoting inclusive and sustainable industrialization and stimulating innovation. Also, for the first time, the CIP report for 2018 includes a new measurement of the index that reflects the impact of industrial production on the environment. Countries with higher levels of CO2 emissions are decreasing their positions in the adjusted CIP index, which undoubtedly affects the political vision of industrial development of each state that cares about the environment and future generations.

Information Service of the Ministry of Economic Development

and Poverty Reduction of the Republic of Uzbekistan