Tag Archives: competitiveness

Global Competitiveness – Focus on the LatAm Region

As promised a couple weeks’ back, here is my blog post where I highlight the findings of the World Economic Forum (WEF) 2013-2014 Global Competitiveness Report related to the Latin American region.

This year the LatAm region fared about the same. There was some movement upwards in the competitiveness index (Costa Rica, Ecuador) and some movement downwards (Chile, Brazil) but overall the region remained stagnant.

The WEF points to a) internal and external demand and b) access to financing as growth drivers yet warns that traditional sources of competitiveness gains (sound macroeconomic practices, credit, etc) have been exhausted and therefore LatAm economies would be wise to focus on a) improving infrastructure b) functioning of institutions c) allocating production factors based on competition and d) improving skills, technology and innovation base.

The first two suggestions for improving competitiveness come as no surprise and are regularly discussed by economists and the LatAm business community. The final two – allocation of production factors through increased competition and improving skills, technology and innovation – lie in the realm of both public and private enterprise.

Through my articles written for Forbes Mexico and for America Economia, I focus on innovation in leadership and on improving organizational results by focusing on the value proposition and the “why” behind purchase decisions. I believe that the sky is the limit in bringing together talent (skills), opportunity and belief (vision, purpose etc) and I don’t think innovation is defined by the number of new products or services you produce or limited only to the private sector. Innovation is linked to competitiveness and linked to finding solutions to the world’s (and our region’s) problems.

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Global Competitiveness – Why we should care

The World Economic Forum (WEF) has published its 2013-2014 Global Competitiveness Report. You can find the report here in a number of languages. How did the Latin American region fare and why should we care? Let’s take a look at what “competitiveness” is and its relation to doing business.

The WEF explains:

We define competitiveness as the set of institutions,

policies, and factors that determine the level of

productivity of a country. The level of productivity, in

turn, sets the level of prosperity that can be earned by

an economy. The productivity level also determines the

rates of return obtained by investments in an economy,

which in turn are the fundamental drivers of its growth

rates. In other words, a more competitive economy is

one that is likely to sustain growth.

Competitiveness is based on a number of factors; economists have studied for hundreds of years what makes an economy able to foster growth and sustain it. The competitiveness landscape, as revealed in the WEF’s report, is important to business because it provides insight into what drives productivity and prosperity in 148 economies. It helps us understand how our investments will do and what we might want to look out for so we can mitigate against it. It tells us what challenges or “wins” we might expect when doing business in the studied economies.

In an upcoming blog post I will highlight the findings related to competitiveness in the Latin American region.

Enjoy the rest of the week!

EMC

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