NATIONAL competitiveness refers to the ability of a country’s economy to grow. A country’s success is generally created as opposed to being inherited. It involves economies of scale of a country. The competitiveness of a country is determined by the capabilities and ability of the industries within the country to generate innovative ideas to maximise output and minimise inputs to achieve a greater profit margin. Global evolution challenges companies and their competitors to improve their operations and products to meet local demands and maintain long-term sustainability.
Every nation is unique in its own way. As such, competitive advantage is based on the resources available and the utilisation of those resources in the country. The competitive advantage is created through differences in the culture, economic structures, institutions, and the history of a country.
There is no theory to explain the concept of national competitiveness, but some argue that the term is a macroeconomic phenomenon, driven by factors such as exchange rates, interest rates and government deficits. Countries such as Japan and Italy have benefited from increased standards of living in spite of government deficits (expenses exceeding income). On the other hand, arguments have been made that national competitiveness constitutes cheap and wide-scope labour, but countries such as Germany and Switzerland have been able to have successful economies, despite having high wages and low availability of labour. Another argument is based on the country’s richness in terms of natural resources, even though the four above- mentioned countries have limited natural resources and are blooming economies. Other arguments posed by M. Porter purports the concept of government intervention. Research has demonstrated that some countries such as Japan were successful as a result of government intervention, while it was not as effective in other countries such as Italy.
According to M. Porter, an economic theorist, the best way to explain the concept is by examining the level of productivity within the country. The primary goal of any country is to improve the standard and quality of lives of citizens, which can be achieved by producing more. By producing more, labour is needed; capital is employed; goods and services are sold; income is gained; and money is circulated within the economy.
As global competition is dynamic and constantly evolving, businesses need to be able to adapt to the changes in order to be successful. Companies are successful across the world because of innovation through technology and creating new ways of doing things which are more economically viable in keeping with UN sustainable development goals. As mentioned earlier, national competitiveness is built/boosted by the performance of industries. Increasing national productivity increases national competitiveness. However, for there to be increased productivity in developing countries such as Guyana, assistance is needed from the diaspora and foreign investments. The government also needs to generate funds to provide proper infrastructure in places that will assist in boosting national production. As in the case of Guyana, opportunities are being provided in all sectors for investments to be made to either improve current processes or introduce new practices.
One of the fastest-growing sectors is the agricultural sector which aims at maintaining food security in Guyana and enabling food security in the wider Caribbean. With the boost in the tourism sector through new restaurants and hotels, along with new foreign-based companies such as the oil companies, fresh produce is in demand. Also, with the government seeking new international and regional markets for local produce, exports are expected to increase drastically. This pushes to improve the country’s Gross Domestic Product and economic activities within the country.
A classical theory of national competitiveness explains that the success of countries is based on factors such as land, labour, and natural resources, but these factors are overshadowed by global competition and technology. For instance, in the agricultural sector, to maintain sustainability, agro-processing needs to be introduced. The government had also mentioned the introduction of the new single-window system which will be time and cost-efficient and will improve trading procedures. Therefore, the success of competitive companies also depends on strategies that cover both trade and foreign investment.
Another way national competition can be boosted is by having foreign companies based in the country. This initiative has its pros, such as access to a variety of high- skilled and trained individuals in special areas of interest, highly experienced personnel who can provide training to the locally-based Guyanese through on-the-job training opportunities and having spin- off effects on other sectors and businesses within the country. The cons may revolve around limiting opportunities for Guyana’s local businesses, but the local content policy will ensure that the local businesses are properly covered to receive maximum benefits.
As can be seen, national competitiveness takes a lot into consideration to be successful. Therefore, the human resources must be educated and trained to take on the opportunities that lie ahead for the development of the country. Educate to innovate to maintain sustainability through national competitiveness.
