“Looking for opportunities or waiting for better times?”
PORTOROŽ BUSINESS CONFERENCE 2012
»The only solution is productivity growth«
Keynote speaker Gary P. Pisano from Harvard Business School, provided the delegates with a solution confidently. He marked the deficit problems most countries currently face as a symptom of declining growth and stated: “the only solution is productivity growth”. Moreover, listing measures such as austerity programs, massive increase in government spending and retreating behind a wall of trade barriers as ways how not to solve the problem, probably since many policy makers are inclined to enforcing these exactly.
In order to enhance productivity it is imperative to improve labour quality, implement tax policies that favour investments, invest in IT infrastructure and create a business environment that attracts foreign direct investment or FDI. “All of these require structural changes” and those by all means should be done as efficiently and as quickly as possible. “What are the implications for Slovenia?” Geographically we occupy the link between Western and Eastern Europe, therefore exploiting our locational advantage should be a priority. In order to move up the skills ladder, Slovenia should become a more attractive place for FDI, thus importing knowledge and know-how and only then can we build focused capabilities, increasing added value.
After Pisano’s opening speech followed a discussion lead by Sandi Češko, opening more questions and objections on how to emerge from the crisis. As we tend to blame globalisation for the current mess, Pisano reminded us that this process is irreversible implying the necessity to adapt. Contrary to political interests, “supporting national champions or accepting industrial policies that protect them is never a good idea. I wouldn’t see a government picking out an industry and saying, that’s what we’ll do.” When talking to decision makers, advanced industries number one criteria is workforce availability. What countries should strive for is “Becoming a solution provider instead of a component producer” The discussion had concluded with an interesting thought. What will the next revolution will be about; Healthcare, being able to provide a solution for quality healthcare among the demographic changes awaiting us is the next milestone, and the country able to do so will become the champion of the next era.
»I’m done discussing issues and what to do, take action now! «
Christof Droste, general manager of Hella Saturnus had proposed three questions:
- What are the core strengths of Slovenia?
- What would be the necessary steps to use them?
- Where do you see the highest potential for new business in short term?
And those are left for us to answer ourselves and simply start working on them, having clearly stated that he isn’t inclined to waiting for better times.
Aleksander Brankov, EF news
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