Editor's note
International Internet Magazine. Baltic States news & analytics
Thursday, 21.11.2024, 18:15
Baltic States’ problems: the need to increase prosperity
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Recent Global Competitive Index (2016-17) has shown the level of best performing economies among 138 world states. GCI shows that productivity and growth are not picking up in advanced economies, and the consequences of low and even negative productivity growth in many emerging economies are now evident.
On one side, the last “great recession” of 2008 forced many advanced economies to implement loose monetary policy, which in turn fueled a global commodities boom that masked many of the competitiveness challenges of commodity-exporting emerging markets.
On another side, vulnerability to commodity price fluctuations in emerging economies and the promises of the Fourth Industrial Revolution underscore the importance of innovation as a source of competitiveness and economic diversification to reignite growth.
See: http://www.baltic-course.com/eng/book_review/?doc=119559&ins_print
The GCI underlines that: (1) monetary stimulus is not enough to reignite growth if economies are not competitive; (2) an increasingly important element of competitiveness is creating an enabling environment for innovation, and (3) innovation in turn goes hand in hand with openness and economic integration.
These critical estimates allowed, however, some Baltic Sea
Area countries occupy leading position in the world.
Source:
-http://www3.weforum and
- Full Report/The Global Competitiveness Report.
Latvian issues
Latvian confederation of employers (LKR) sees the most serious problems in the negative effect of taxes on the stimulus for the work and investment, in state’s inability to draw and to retain talents, accessibility of scientists and engineers, low level of new technologies in the public procurement, as well as in low share of technological innovations in the corporate entities.
LKR President, Vitalijs Gavrilovs underlined recently that “the government’s measures were not ambitious and the measures aimed at strengthening Latvia’s competitive ability were not realized”. He added that even in the National-2020 plan the very modest task was included: to “reach 45th rank in the global competitiveness index by 2020”. Though LKR’s aim is to reach at least 30th rank by 2020!
http://www.baltic-course.com/rus/opinion/?doc=124479&ins_print
