A Simple Method for Measuring Relative Barriers to Economic Development

The message conveyed by the pioneer work of Jacob Viner in the middle of the 20th century is that any action plan to propel economic development in a particular country requires sharp focus on the identification of the barriers to economic development observable in that country. Unfortunately, Viner did not provide insight into how to measure the barriers to economic development. This paper argues that it is possible to assess the relative heights of the barriers to economic development between two countries using the indicators underpinning the Global Competitiveness Index (GCI).To evaluate this claim, it helps to have a specific example in mind. The illustration of the simple method for measuring relative barriers to development revolves around a comparison between Argentina and Australia. However, the proposed method has general applicability as a tool for policy design.