European Association of National Productivity Centres

Stormy Weather Ahead?

Director, National Productivity Centre, UKPresident, World Confederation of Productivity Science

Climatology

Meteorology

Productivity

Competitiveness

Innovation

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.

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

IMD World Competitiveness Survey 2006

USA 1

Hong Kong

Singapore

2

3

China 19

UK 21

India 29

Ireland 11

China

19786% 9%

Economic Reforms

Sustained., improved labour productivity

IMF

1979-94, productivity

accounted for 42% of growth

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?

Economic Productivity

Social Productivity

Environmental Productivity

China 11th 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

The National Productivity Centre, UK is establishing a research and

benchmarking projectwith the Chinese Association ofProductivity Science to examine aspects of ‘Green Productivity’.

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