This chapter analyzes the conceptual framework underlying the concept of competitiveness used by the World Economic Forum, and identifies the conditions in which countries can achieve and maintain sustainable levels of productivity growth. Competitiveness is defined as the set of institutions, policies, and factors that determine the level of productivity of a country, which, in turn, sets the sustainable level of prosperity that can be earned by an economy. This definition of competitiveness contrasts with a flawed, but popular, one that sees competitiveness of a nation as a zero-sum game in which one country’s gain is another’s loss.