The World Competitiveness Landscape in 2004

Garelli, Stéphane
September 2004
Management Services;Sep2004, Vol. 48 Issue 9, p14
Academic Journal
This article focuses on the change in the world competitiveness in 2004. Economic cycles should not obscure the most fundamental trends that are emerging in the world competitiveness landscape of 2004. Asia, and soon Russia and Central Europe, emerge as world competitors in their own right. They will brutally assail the competitiveness of the US and Europe, as Japan did over the past decades. For governments, there are deficits and deficits. Some are cyclical, but many are now structural. They are the result of a wealthy, aging society that consumes more than it produces. Europe will suffer and may fail to reform itself. World manufacturing explodes but manufacturing jobs implode. The productivity boom spreads via globalization into low cost areas. The next paradigm shift will affect the service industry. There is light at the end of the tunnel of recession. For some countries, this will mean unprecedented opportunities for success and prosperity, for others, the competitiveness landscape that unfolds may be too bright and blinding. The World Competitiveness Yearbook provides a glimpse of this new world. Some nations will adapt, some will muddle through and some may be left behind.


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