Factors that drive engine of growth…
July, 2015
- Every nation depends on certain ‘base capabilities’ to drive export growth and economic development. Assessing the world’s top exporters (for the different sectors) demonstrates one or more of these essential ‘base’ capabilities. These capabilities are the ‘platforms’ or ‘drivers’ on which nations enable profitable export industries.
- Intellectual property by way of multinational businesses and brands. E.g. USA, Switzerland, Japan, Germany. As businesses seek to capture multiple markets by taking their valuable industry expertise, skills and products to foreign markets, nations have benefitted through increased level of exports as well.
- Possessing high value natural resources. E.g. Australia, Qatar, Russia, Saudi Arabia. These resources, if well managed have generated significant amounts of income to such resource rich nations, becoming strong foundations for economic prosperity.
- Having highly skilled knowledgeable workforce. E.g. Singapore, Korea, Taiwan, India (for ITES). As nations become increasingly interconnected, tapping into foreign labour pools becomes the standard. Certain nations may not possess adequate labour resources that they may require, in which case going abroad is the probable option.
- Large scale, low cost ‘production’ workforce. E.g. Bangladesh, China, Vietnam. Significant cost savings through cheaper foreign labour has prompted corporations to consider outsourcing key operations and functions. This has increased export activity bringing in benefits to both nations as well as businesses. Access to such global labour pools have dramatically brought down production and operating expenditure, helping businesses achieve massive economies of scale.
- Being a regional hub. E.g. Dubai, Netherlands. By focusing on offering key services such as ports and supply chain trade links, built and supported around their strategic locations, certain nations have managed to gain added advantages in the global stage.
- On what ‘platform’ are we? What base capabilities do we possess? What do we offer currently and what other capabilities could we build, develop or groom to offer the world?
