Competitiveness and the role of governments
2/13/2017 0:00
[rtl]* Fares Al Salman
Zarhma term for the first time in the period between 1987-1981 during which he emerged as a large fiscal deficit in the trade balance of the United States of America (especially Japan) and increased volume of foreign debt. And intensify interest in the concept of competitive again in the mid - nineties of the last century they have become a product of the new economic world order and the phenomenon of globalization, and many countries transition to a market economy.
And the competitive overlap with other concepts as well as a dynamic concept of constant change, in the seventies linked to foreign trade, and in the eighties associated with industrial policy and in the nineties have been associated technical policy of the countries, nations and competitive today means the ability of the economy to raise the standard of living of its citizens.
It means competitiveness by competitive companies institutions any ability to meet the desires of consumers of quality goods and services through which you can access to world markets, either by sector of activity means the capacity of institutions in that sector the state to achieve a successful and continuous presence in international markets without the support or government protection.
Concept of competitiveness at the level of states: (
a) the definition of the World Economic Forum: the national economy 's ability to reach a sustainable rates of economic growth , calculated at the rate of annual change to per capita income.
( B ) the American Council definition of competitive policies: state 's ability to produce goods and compete in global markets , services and time itself verify advanced standards of living long - term (
c ) the definition of the European Council: the European Council knew in Barcelona 2000 meeting of the competitive state on it 's ability to constant improvement of the level of the lives of its citizens and to achieve social cohesion as well as achieving a high level of operating labor includes all aspects of economic policy.
( D ) the definition of Organization for Economic Cooperation and Development: A term competitiveness means through which the state produces goods and services that compete in global markets in light of the free market and fair competition and the same time increase their real income of its citizens in the long term.
( E ) the international competitiveness of the Institute: the state 's ability to produce aproduct with high quality and low cost , and in line with global needs, as well as the country 's ability to produce more of a commodity through the transition to high commodity technical and manufacturing , which in turn gives a high added value in the domestic and global market , and this in turn , will bring greater national income returns and growing rapidly and this is one of the elements of human development. As well as the possibility of the state to attract foreign investments by creating the right environment and the availability of competitive advantages added to the comparative advantages.
There are sub - concepts of competitiveness , such as competitive costs, competitive prices, competitive quality, competitive technology and others.
Measuring competitiveness indicators:
1. indicators measuring competitive enterprise or project: The project is the winner certainly is not competitive, and there are factors that play a role in the competition , such as: the power of negotiation suppliers for the project, the power project customers negotiate, competitors Who 's currently on the market, the threat of bringing goods alternative for goods produced by the project, the threat of potential entry of new competitors into the market.
2. competitive measurable indicators sector of activity: (
a) the cost of production indicators: the activity branch competitive if the overall productivity of the factors which is equal to or higher than that of foreign enterprises competition, or unit cost average rate equal to or less than the unit cost of produced by foreign hustlers.
( B ) trade indicators , and share in the international market: using the trade balance and market share as an indicator to measure the competitive sector, sector is losing its competitiveness when it drops its share of the total national exports.
( C ) the comparative advantage of the phenomenon: Signed (Porter) 1990 , a measure of competitiveness, as follows: (total exports of the country / producer of the country 's exports) / (college / international export international export of the product).
3 - Measurement Index competitive states: the World Economic Forum supports multiple data to evaluate countries , including competitive and macroeconomic stability, quality and cost of factors of production, research and development, Tsaaralamassh, administrative environment and collection, pension structures. While the United Nations adopt an indicator based on a few standards pertaining to health, education and per capita income.
The World Bank index Firtkz on the following factors: the human and intellectual capital, financial dynamics, infrastructure and the investment climate (political and social stability), dynamic college and market dynamics, achievement overall (gross national product per capita, the average annual growth rate).
And supports the International Monetary Fund and a number of indicators such as real exchange - based prices on consumer price indices, export unit value of manufactured goods, the relative price of goods traded and non - traded, the unit cost of labor in themanufacturing industry.
The Index of Economic Freedom, it was developed by the Institute Index (Alaritaj) in the United States and adopted the study of degrees of freedom on the ten factors and every worker a group variables (50 variables) and factors are:
regulations, property rights, the banking system, wages and prices, free trade, politics cash, the tax burden of government, government intervention in the economy, capital flows and foreign investment, the black market.
The role of government in the competitive support:
the duties of the government to improve the competitive state strengthened on a global level by providing an environment suitable business by applying the socio - economic and financial policies aimed at competitive support for production and service activities are: fiscal and monetary policies, investment policies , investment climate and create, reform legislation Policy institutions, commitment to good administrative practice, modernization and development of public and administrative system, the policy of modernization of physical infrastructure, strengthening the technological capacity of self policy, the publication and circulation of information policy.
The government 's support for competitiveness through the creation of a stable macro - economic environment by maintaining low inflation and tax rates competitive ratios are acceptable, and the public funding Rashid concrete and conscious, as well as support for small and medium enterprises by removing burdens that hinder economic activity, and the development of targeted markets and promote exports, as well as to create a favorable environment for domestic investment and improve the services provided by government , such as education.
Competitive states:
competing nations among themselves through policies and selected institutions that stimulate growth in the long term aim of creating a sustainable development as well as raising the standard of living of its citizens and is done through conscious and ambitious and realistic policies, control of government spending rationally, making flexible labor markets , tax rates are acceptable, a stable political system, an efficient judicial system and impartial, infrastructure and administrative and technological good, and markets open , but under the supervision of the state in order to restore balance when needed.
* ECONOMIC head of Baghdad 's forum[/rtl]
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