How to build a sustainable competitiveness platform?
December 14, 2012 Editor 0
In the wake of the first global recession since World War II, governments around the world are looking for ways to boost growth and competitiveness. Given the fragility of the business and economic climate—and strained public coffers—the responsibility to get policy right is acute. But can public policy makers improve on their hit and miss record of intervention in the past? I would pick out three useful lessons that we have learned, often the hard way:
■ Don’t focus on single industries in the hope of “picking winners.”: Governments need to take a broad-based, inclusive approach to growth, particularly if a key aim is the creation of jobs. Large domestic service sectors that are labor-intensive are creating all net new jobs in high-income economies and 85 percent in middle-income countries. Don’t get me wrong. New technologies can have a transformational impact beyond their particular sectors, enabling future productivity improvements and growth—think IT. But it is the low-tech green jobs in local services, such as improving building insulation and replacing obsolete heating and cooling equipment, that have a greater potential for creating jobs in the near term.
Categories: World Bank PSD
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