Productivity and Competitiveness
One of the key issues facing organisations and developed societies in the post-industrial age is increasing productivity in order to meet the demands of the changing global economy. There are calls to lift Australia's productivity to the top five in the world by 2012.
What does this mean on a macro and what on a micro level? Where does our obsession with productivity conceptually fall short in assessing the bigger issue at play — changing global economic environment and competition between developed and developing economies? Perhaps the battle starts with re-evaluating our approach to measuring economic competitiveness and links in with creating a more sustainable view of economic performance?
Open Forum is an interactive policy discussion website hosted and moderated by Global Access Partners (GAP).
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Nick Mallory
October 9, 2007 at 8:09 am
Productivity
Much of the growth in productivity is actually caused by old, uncompetitive firms going out of business and new, more effieicent firms, being created. It's a myth to think that poorly managed firms suddenly become well run over night. There is no competition between developed and developing economies, as Ricardo proved a very very long time ago, international trade benefits everyone through the workings of comparative advantage. The more free trade there is, the better off everyone will be. South east asian economies such as South Korea and Malaysia were poorer than African countries after world war two. The whole 'sustainability' notion is nonsense too. There are higher proven oil reserves now than there were thirty years ago, for example. Economic growth is the answer to the problem, not the problem itself.