[Challenge:Future] Creating Human Capital
Download as PPTX, PDF0 likes118 views
The document discusses the competitiveness of Eastern European countries that are members of the European Union. It notes that these countries have lower costs of labor than Western European countries, while still having skilled workforces and modern institutions. This allows them to produce goods at lower costs while maintaining quality. The document predicts that industries like electronics, IT, agriculture, and services that require educated workers at low costs will thrive in Eastern Europe in the future, making the region competitive for outsourcing and offshoring. Quality upgrading will be important for these countries to enter new sectors and maintain competitiveness globally.
[Challenge:Future] Creating Human Capital
- 1. CHALLENGE FUTURE: THE FUTURE OF WORK COMPETITIVENESS OF EASTERN EUROPE Team Name: Facilitator Selected Countries: EU Member Eastern European Countries Team Member: Tanmoy Das (Team Leader) Country of Team member: Bangladesh University: University of Dhaka Mentor: Marija Džunić
- 2. COMPETITIVENESS OF EASTERN EUROPE Full freedom of factors of productions flow within EU countries which allows them to arrange capitals in lower cost and provide cheaper labor to western EU countries. Lower cost of labor allows this countries to keep the production cost lower which is a competitiveness like south Asian countries. high-educated and skilled workers (Than those from the Asian Countries) The institution and policy arrangements are very modern and provide a degree of certainty and convenience to potential investments in this area Proximity to the Western import oriented EU market so, quick response can also be a competitiveness.
- 3. COMPETITIVENESS OF EASTERN EUROPE (CONTD.) There are 21 countries in EE region and among these 10 countries are the members of EU. GDP per capita is lower in the EE countries but the unemployment rate is higher compared to the EU countries. It might be a potential opportunity for those countries in EU because the countries within the EU agreement have full freedom in capital flow; export-import is duty free. So, EU member EE countries have the opportunity to manufacture goods in lower cost with an efficient capital movement from Western European countries. Though the productivity is lower but the productivity adjusted cost of labor is beneficial for the producers which can bring EU member EE countries a competitive advantage over the Asian countries
- 4. EXPERTS’ CITATIONS UNIDO (United Nations Industrial Development Organization) has projected that the present investment of EE countries are going to make EE countries a better destination for technological near-shoring and outsourcing. “Competitiveness should lie at the heart of Europe’s economic agenda,” said Børge Brende, Managing Director at the World Economic Forum. “High levels of prosperity cannot be sustained over time without higher competitiveness.”. This statement explains that, EU countries should take the advantage of the freedom of factor movement to lower the production cost as a competitiveness.
- 5. EXPERTS’ CITATIONS (CONTD.) Some of the productive tasks associated with high-quality goods have high learning and technological externalities. In those sectors, producers tend to form tight relationships with global buyers who transfer their knowledge and support the producers' quality-upgrading processes. Diversifying into a broad range of sectors also reduces macroeconomic volatility, but quality upgrading becomes necessary to enter new sectors that compete on quality. (Cited By: Racine, Jean-Louis ;Harnessing Quality for Global Competitiveness in Eastern Europe and Central Asia (2011))
- 6. MY VISION ABOUT FUTURE INDUSTRIES OF EE Industries of top demand of 2022. Electronics technology Communication and IT industry organic agricultural industries Technical or professional service industry
- 7. MY VISION ABOUT FUTURE INDUSTRIES OF EE (CONTD.) All these industries require educated and skilled workers and simultaneously in low cost to have competitiveness. Training through educational institutes of EE countries may establish this area as a global destination of near-shoring and outsourcing by 2022. These countries will have to prepare the upcoming young population as an asset of whom the skills and works could be exported by capturing the outsourcing and near-shoring market to gain the benefit of capital movements within EU and also to gain competitiveness over Far East.
- 8. MY VISION ABOUT FUTURE INDUSTRIES OF EE (CONTD.) if the IT industry and sophisticated communication devices can be produces in EE with skilled workers and also in lower costs. Then these industries could be located in EE with a great competitive advantage with no doubt. The human capital will make the competitive advantage so it can be assumed that, the professional with technical knowledge will be recruited with higher demands and it is mostly on R&D to become more innovative. Finance graduates who have operational intelligence in cost reduction and the supply chain professionals will also get priority on those organizations.
- 9. MY VISION ABOUT FUTURE INDUSTRIES OF EE (CONTD.) Participation in world trade increasingly requires that suppliers comply with standards determined by lead buyers in global value chains. Improving the quality of goods and services and diversifying into sectors where quality matters can be a sustainable source of global competitiveness. Some of the productive tasks will be associated with high-quality goods which have high learning and technological externalities
- 10. Thank You for being with my presentation !