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European Association of National Productivity Centres Stormy Weather Ahead? Director, National Productivity Centre, UK President, World Confederation of.

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Presentation on theme: "European Association of National Productivity Centres Stormy Weather Ahead? Director, National Productivity Centre, UK President, World Confederation of."— Presentation transcript:

1 European Association of National Productivity Centres Stormy Weather Ahead? Director, National Productivity Centre, UK President, World Confederation of Productivity Science

2 Climatology Meteorology

3 Productivity Competitiveness Innovation

4 Competitiveness The degree to which a nation can, under free trade and fair market conditions, produce goods and services that meet the test of international markets while simultaneously maintaining and expanding the real income of its citizens.

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7 IMD World Competitiveness Centre Economic Performance Domestic Economy, International Trade, International Investment, Employment, Prices Government Efficiency Business Efficiency Infrastructure Public Finance, Fiscal Policy, Institutional Framework, Business Legislation, Societal Framework Productivity, Labour Market, Finance Mgt, Mgt Practices, Attitudes & Values Basic, Technological, Scientific, Health & Environment, Education

8 IMD World Competitiveness Survey 2006 USA1 Hong Kong Singapore 2 3 China 19 UK21 India29 Ireland11

9 China 19786%9% Economic Reforms Sustained., improved labour productivity IMF 1979-94, productivity accounted for 42% of growth

10 Role of Government To provide infrastructure To steer In the USA … Growth is 3.5% $318bn budget deficit $8,000bn debt Growth in India is 8.1% Growth in China is 9.9% Can the governments manage this growth and the expectations of their citizens?

11 Economic Productivity Social Productivity Environmental Productivity

12 China 11 th Five Year Plan (2006-2010) Rural-urban gap; polarization of rich and poor; waste of resources; environmental deterioration; administrative corruption and low efficiency While accounting for about 4 percent of global GDP in 2005, China accounted for 12 percent of the global consumption of energy resources, 15 percent of water, 28 percent of steel, 25 percent of aluminium, and 50 percent of cement. China's per capita GDP of 2010 will be double that of 2000; the efficiency of the resources will be enhanced significantly; energy consumption per unit GDP will be 20 percent lower

13 The National Productivity Centre, UK is establishing a research and benchmarking project with the Chinese Association of Productivity Science to examine aspects of ‘Green Productivity’.

14 Lessons There is a very important role for government in establishing infrastructure and in adjusting the macroeconomic climate to offer the potential for high productivity. Governments have to balance their support role with avoiding over-regulation and bureaucracy that constrains economic activity Individuals – and organisations – improve their performance when incentivised Since measurement drives behaviour, we need to be careful about measurement systems Productivity needs to be viewed through different lenses to get a full picture Lessons learned must be translated into a local context – informed by local culture and values, and by the local economic, social and environmental context

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