Sustainable competitiveness is the ability to generate and sustain inclusive wealth without diminishing the future capability of sustaining or increasing current wealth levels.
Achieving Sustainable Competitiveness – the 12 Key policies:
- A global climate tax
- More democracy
- Better governance
- Real market economy
- Education, education, education – quality education for all
- Working financial markets
- Health care and social security for all
- Impartial and efficient justice system accessible to all
- Unitary Taxing
- Fact-based, impartial information
- Freedom for, and from, religion.
- Total equality
Whether we like it or not, we live in a competitive World. For whatever reasons, some products and services sell better than others, and some countries are more successful than others in generating income for their citizens. And Messi is more successful than Ronaldo.
According to Wikipedia, competitiveness is “the ability and performance of a firm, sub-sector or country to sell and supply goods and services in a given market, in relation to the ability and performance of other firms, sub-sectors or countries in the same market”.
Competitiveness, in its conventional definition, is the outcome – the ability to sell goods/services. However, managers interested in the performance of their company (and policy makers interested in the well-being of a nation) must be concerned about is the framework that facilitates competitiveness in the first place. Not only now, but into the future. This is where sustainable competitiveness comes in: sustainable competitiveness is not just being able to compete in a congested environment at this point in time and over the next one or 2 years, but being able to successful exist in the long term.
Sustainable competitiveness is not about the result – sustainable competitiveness is about the framework (the internal management, and external influences) that allows for individuals and companies to be successful, now, and in the next generation. And therefore will deliver better outcomes. Sustainable competitiveness therefore is the ability to build a framework (policies, regulations, management tools, and visions) that allows a firm, a sector, an individual or a country to sustain or increase the ability to provide income in relation to the current and future wider environment and society.
Sustainable profitable. Profitable sustainable
Sustainability is not a new concept. It is an evolution of existing management thinking and paradigm. The difference to conventional management is that the horizon on which management decisions are taken is wider in with (issues) and depth (time). Sustainable management therefore is superior to conventional management. Sustainable management is sustainable competitiveness, is the foundation to sustain competitiveness.
Sustainability is profitability, and profitability is sustainability.
Sustainable competitiveness applies for both economic policy making and corporate management. Read more on sustainable competitive economies, go to the Global Sustainable Competitiveness Index, or read more on dynamic sustainable corporations and our track record of implementing sustainable management.
GDP vs sustainable competitiveness
The wealth of nations is commonly expressed in “Gross Domestic Product” (GDP) or “Gross National Income” (GNI), accounted for in a monetary value. GDP and GNI are composed of the economic output or income of a country, which is composed of financial transactions in exchange for goods and services.
However, economic activities have certain adverse side-effects on the natural environment, resources, and on the socio-cultural and socio-economic fabric of a society. In addition, natural resources are not renewable and many vital resources – water, energy, but also certain minerals and metals – are scarce (or are set to become scarce goods in the near/medium future). Yet none of these adverse effects, external, or “non-financial” aspects are factored into the commonly expression of wealth of Nations, the GDP. In other words – the GDP is a very limited expression of a national balance sheet.
GDP growth rates and changes in growth rates are often used as an indicator for an economy’s well-being and development. However, due to the lack of integrating all aspects of development drivers – natural resources, efficiency, innovation capabilities and social cohesion – the GDP describes a moment in time. Current GDP levels therefore have limited informative value relating to the future potential of achieving and sustaining inclusive development and creation of wealth.
The sustainable competitiveness model incorporates all relevant pillars of sustained growth and wealth creation of a nation – natural capital availability, resource intensity, innovation and business capabilities, and social cohesion.
“Sustainable competitiveness is the ability of a country to meet the needs and basic requirements of current generations while sustaining or growing the national and individual wealth into the future without depleting its natural, intellectual and social capital.”
In addition to the full integration of sustainability performance data, the sustainable competitiveness index also analyses and incorporates the data trends over time to allow for a better expression of the future development potential. The results aim at serving as an alternative to the GDP, and to be used to analyse future development prospects of nations.