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The Sustainable Competitiveness Observatory

The Sustainable Competitiveness Observatory (SCO) is an instrument for measuring integration into the global economy. Competitiveness is key to improving people’s standard of living, given the importance of foreign markets access for economic development. The SCO therefore comprises a set of composite indicators covering a broad range of measures of economic competitiveness, grouped into three main categories: “National Attractiveness and Sustainability,” “Price Competitiveness,” and “Revealed Competitiveness.”

Competitiveness: A Cross-Cutting Issue

Despite the many existing databases, measuring the competitiveness of developing countries remains incomplete. These databases often prioritize indicators of economic growth or focus on specific dimensions, neglecting a multidimensional approach to competitiveness. The SCO stands out by offering a variety of indicators designed to evaluate not only a country's current economic performance, but also its capacity to sustain this trajectory in the face of external shocks, climate constraints, and structural deficits. This cross-cutting approach enables the identification of priority levers for action towards truly sustainable development, rather than mere cyclical adjustments.

The Work and Objectives of the SCO

The SCO draws on the findings of academic research, in line with the programs developed at the Ferdi within the framework of the IDGM+ Laboratory of Excellence “Initiative for Development and Global Governance”. It also aims to address the needs of policymakers and institutions in emerging and developing countries by providing a better understanding of these economies’ strengths and weaknesses. Thus, the SCO draws on a dense network of key development actors and academic experts from various universities and research centers in industrialized and developing countries. The SCO’s work is structured into three steps: (i) critically compiling and analyzing existing studies and databases related to the measurement of competitiveness and its determinants; (ii) processing existing data and creating original indicators covering the various dimensions of competitiveness; and (iii) producing reports and research articles based on the proposed indicators.

The SCO’s Indicators

The indicators of price competitiveness and revealed competitiveness are constructed directly by Ferdi using three categories of variables: nominal bilateral exchange rates by country pairs (IMF), domestic consumer price indices (IMF), and bilateral trade flows by country pairs, years, and goods (BACI database from the CEPII, and BIMTS database from the OECD). More details are provided on each indicator’s page. The indicators in the National Attractiveness and Sustainability category will be added gradually over the course of 2027. They will incorporate numerous dimensions related to non-cost competitiveness and economic sustainability.