tag:theconversation.com,2011:/au/topics/competitiveness-3109/articlesCompetitiveness – The Conversation2023-12-26T20:29:23Ztag:theconversation.com,2011:article/2196172023-12-26T20:29:23Z2023-12-26T20:29:23ZNZ report card 2023: near the top of the class in some areas, room for improvement elsewhere<p>End-of-year results aren’t only for school and university students. Countries, too, can be measured for their progress – or lack of it – across numerous categories and subject areas. </p>
<p>This report card provides a snapshot of how New Zealand has fared in 2023. Given the change of government, it will be a useful benchmark for future progress reports. (Somewhat appropriately, the coalition seems keen on standardised testing in education.)</p>
<p>It’s important to remember that this exercise is for fun and debate. International and domestic indices and rankings should be read with a degree of caution – measurements, metrics and numbers from 2023 tell us only so much. </p>
<p>Nevertheless, it’s still possible to trace the nation’s ups and downs. As the year draws to an end, we can use these statistics and rankings to decide whether New Zealand really is the best country in the world – or whether we need to make some additional new year’s resolutions.</p>
<h2>International pass marks</h2>
<p>Overall, the country held its own internationally when it came to democratic values, freedoms and standards. But there was a little slippage.</p>
<p>Despite falling a spot, Transparency International ranked New Zealand <a href="https://www.transparency.org/en/cpi/2022">second-equal</a> (next to Finland) for being relatively corruption-free. </p>
<p>In the Global Peace Index, New Zealand dropped two places, now <a href="https://www.visionofhumanity.org/maps/">fourth-best</a> for safety and security, low domestic and international conflict, and degree of militarisation.</p>
<p>The country held its ground in two categories. Freedom House underlined New Zealand’s near-perfect score of <a href="https://freedomhouse.org/countries/freedom-world/scores">99 out of 100</a> for political and civil liberties – but three Scandinavian countries scored a perfect 100. The <a href="https://www.weforum.org/publications/global-gender-gap-report-2023/">Global Gender Gap Report</a> recorded New Zealand as steady, the fourth-most-gender-equal country. </p>
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<p>Supplementary work by the United Nations Development Programme shows New Zealand making impressive strides in breaking down <a href="https://www.undp.org/sites/g/files/zskgke326/files/2023-06/gsni202302pdf_0.pdf">gender bias</a>.</p>
<p>The Index for Economic Freedom, which covers everything from property rights to financial freedom, again placed New Zealand <a href="https://www.heritage.org/index/">fifth</a>, but our grade average is falling. We also dropped a place in the World Justice Project’s <a href="https://worldjusticeproject.org/rule-of-law-index/">Rule of Law Index</a> to eighth.</p>
<p>New Zealanders are about as happy as they were last year, still the tenth-most-cheery nation, according to the <a href="https://worldhappiness.report/">World Happiness Report</a>.</p>
<p>The Human Development Index did not report this year (New Zealand was 13th in 2022). But the <a href="https://www.prosperity.com/rankings">Legatum Prosperity Index</a>, another broad measure covering everything from social capital to living conditions, put New Zealand tenth overall – reflecting a slow decline from seventh in 2011.</p>
<p>The Economist’s <a href="https://www.eiu.com/n/campaigns/global-liveability-index-2023/">Global Liveability Index</a> has Auckland at equal tenth, with Wellington racing up the charts to 23rd. (Hamilton, my home, is yet to register.)</p>
<p>While New Zealand registered a gradual slide in the Reporters Without Borders <a href="https://rsf.org/en/index">Press Freedom Index</a>, at 13th position it still ranks highly by comparison with other nations.</p>
<h2>Could do better</h2>
<p>New Zealand has seen some progress around assessment of terror risk. While the national terror threat level has remained at “<a href="https://www.dpmc.govt.nz/our-programmes/national-security/counter-terrorism#:%7E:text=New%2520Zealand's%2520current%2520national%2520terrorism,Zealanders%2520both%2520here%2520and%2520overseas.">low</a>”, the <a href="https://www.visionofhumanity.org/maps/global-terrorism-index/#/">Global Terrorism Index</a> ranked the country 46th – lower than the US, UK and Russia, but higher than Australia at 69th.</p>
<p>The country’s previous drop to 31st in the <a href="https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-competitiveness-ranking/">Global Competitiveness Report</a> has stabilised, staying the same in 2023. </p>
<p>On the <a href="https://www.globalinnovationindex.org/Home">Global Innovation Index</a>, we came in 27th out of 132 economies – three spots worse than last year. <a href="https://kof.ethz.ch/en/news-and-events/media/press-releases/2022/12/globalisation-index.html#:%7E:text=The%2520KOF%2520Globalisation%2520Index%2520measures,a%2520long%2520period%2520of%2520time.">The Globalisation Index</a>, which looks at economic, social and political contexts, ranks New Zealand only 42nd.</p>
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Read more:
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<p>But the country’s response to climate change is still considered “highly insufficient” by the <a href="https://climateactiontracker.org/">Climate Action Tracker</a>, which measures progress on meeting agreed global warming targets. The <a href="https://ccpi.org/">Climate Change Performance Index</a> is a little more generous, pegging New Zealand at 34th, still down one spot on last year.</p>
<p>New Zealand’s overseas development assistance – low as a percentage of GDP compared to other <a href="https://www.oecd.org/dac/financing-sustainable-development/development-finance-standards/official-development-assistance.htm">OECD countries</a> – had mixed reviews. </p>
<p>The <a href="https://odi.org/en/insights/principled-aid-index-2023-in-a-weaponised-world-smart-development-power-is-not-dead/">Principled Aid Index</a> – which looks at the purposes of aid for global co-operation, public spiritedness and addressing critical development goals – ranks New Zealand a lowly 22 out of 29. </p>
<p>The <a href="https://www.cgdev.org/cdi#/">Commitment to Development Index</a>, which measures aid as well as other policies (from health to trade) of 40 of the world’s most powerful countries, has New Zealand in 19th place.</p>
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Read more:
<a href="https://theconversation.com/nicola-willis-warns-of-fiscal-snakes-and-snails-her-first-mini-budget-will-be-a-test-of-nzs-no-surprises-finance-rules-218920">Nicola Willis warns of fiscal ‘snakes and snails’ – her first mini-budget will be a test of NZ’s no-surprises finance rules</a>
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<h2>Decent economic grades</h2>
<p>The economic numbers at home still tell a generally encouraging story:</p>
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<li><p>unemployment <a href="https://www.stats.govt.nz/indicators/unemployment-rate/">remains low at 3.9%</a>, still below the <a href="https://www.oecd.org/newsroom/unemployment-rates-oecd-updated-november-2023.htm#:%7E:text=14%2520Nov%25202023%2520%252D%2520The%2520OECD,Figure%25202%2520and%2520Table%25201">OECD average of 4.8%.</a></p></li>
<li><p>median weekly earnings from wages and salaries <a href="https://www.stats.govt.nz/news/income-growth-for-wage-and-salary-earners-remains-strong/">continued to rise</a>, by NZ$84 (7.1%) to $1,273 in the year to June</p></li>
<li><p>inflation is rising, but the rate is slowing, <a href="https://www.stats.govt.nz/news/annual-inflation-at-5-6-percent/#:%7E:text=New%2520Zealand's%2520consumers%2520price%2520index,to%2520the%2520June%25202023%2520quarter.">falling to 5.6%</a> in the 12 months to September</p></li>
<li><p>and good or bad news according to one’s perspective, annual house price growth appears to be slowly recovering, with the <a href="https://www.qv.co.nz/price-index/">average price now $907,387</a> – still considerably down from the peak at the turn of 2022.</p></li>
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<p>It’s worth noting, too, that record net migration gain is boosting economic measurements. In the year to October 2023, 245,600 people arrived, with 116,700 departing, for an <a href="https://www.stats.govt.nz/information-releases/international-migration-october-2023/">annual net gain</a> of 128,900 people.</p>
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Read more:
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<h2>Room for social improvement</h2>
<p>In the year to June, <a href="https://www.newshub.co.nz/home/new-zealand/2023/10/new-zealand-s-suicide-rate-increases-for-first-time-in-years.html">recorded suicides increased</a> to 565, or 10.6 people per 100,000. While an increase from 10.2 in 2022, this is still lower than the average rate over the past 14 years.</p>
<p><a href="https://www.corrections.govt.nz/resources/statistics/quarterly_prison_statistics/prison_stats_september_2023">Incarceration rates</a> began to rise again, climbing to 8,893 by the end of September, moving back towards the 10,000 figure from 2020.</p>
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Read more:
<a href="https://theconversation.com/maori-suicide-rates-remain-too-high-involving-whanau-more-in-coronial-inquiries-should-be-a-priority-217254">Māori suicide rates remain too high – involving whānau more in coronial inquiries should be a priority</a>
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<p>Child poverty appears to be <a href="https://www.stats.govt.nz/news/child-poverty-statistics-show-no-annual-change-in-the-year-ended-june-2022/">stabilising</a>, with some reports suggesting improvements in longer-term trends. While commendable, this needs to be seen in perspective: one in ten children still live in households experiencing material hardship.</p>
<p>The stock of <a href="https://www.hud.govt.nz/stats-and-insights/the-government-housing-dashboard/public-homes/">public housing</a> continues to increase. As of October, there were 80,211 public houses, an increase of 3,940 from June 2022.</p>
<p>In short, New Zealand retains some bragging rights in important areas and is making modest progress in others, but that’s far from the whole picture. The final verdict has to be: a satisfactory to good effort, but considerable room for improvement.</p><img src="https://counter.theconversation.com/content/219617/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Alexander Gillespie does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>New Zealand was mostly stable in key international rankings and domestic socio-economic measures. But there are signs of slippage in some areas and not enough progress in others.Alexander Gillespie, Professor of Law, University of WaikatoLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1773822022-03-15T11:58:53Z2022-03-15T11:58:53ZLevelling up: why UK cities are less competitive than their European counterparts<figure><img src="https://images.theconversation.com/files/452162/original/file-20220315-17-beq1jp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">As one of the UK's 11 core cities, Nottingham lags behind its European counterparts.</span> <span class="attribution"><a class="source" href="https://unsplash.com/photos/hWMwHgkjcKU">Tom Podmore | Unsplash</a>, <a class="license" href="http://artlibre.org/licence/lal/en">FAL</a></span></figcaption></figure><p>As we emerge from the pandemic-induced economic slump into a world of higher inflation shaped by ongoing crises, like <a href="https://theconversation.com/why-brexit-should-not-stop-uk-cities-from-competing-for-european-capital-of-culture-88115">Brexit</a> and the war in <a href="https://theconversation.com/ukraine-how-the-russian-invasion-could-derail-the-fragile-world-economy-177937">Ukraine</a>, quite how we make the UK more competitive is a burning question. There are many sources of competitiveness but a crucial one is how a nation’s cities perform. In simple terms, there are no successful national economies without successful cities. </p>
<p>In February 2022, the UK government published its <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1052708/Levelling_up_the_UK_white_paper.pdf">plans</a> to level up the country. This white paper highlighted how UK cities, outside of the capital, underperform in relation to their European counterparts.</p>
<p>The government’s findings are not new. And, <a href="https://www.liverpool.ac.uk/heseltine-institute/policybriefs/policybriefing208/">as I have shown</a>, its <a href="https://theconversation.com/will-extra-mayors-level-up-left-behind-regions-what-the-evidence-tells-us-176291">solutions</a> are limited. </p>
<p><a href="https://www.regionalstudies.org/wp-content/uploads/2018/07/Second_Tier_Cities_in_Age_of_Austerity_-_Michael_Parkinson.pdf">My research suggests</a> that the UK would be a more interesting, fairer and a more economically successful country if our cities – outside London – were more powerful. Those countries which are more decentralised and give their cities greater financial resources tend to <a href="https://www.corecities.com/sites/default/files/field/attachment/75699_Core_Cities_Devolution_Book_WEB.pdf">perform better</a>. </p>
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<img alt="A view of a dock in a city, with tall glass buildings reflected in the water." src="https://images.theconversation.com/files/452163/original/file-20220315-23-8ay2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452163/original/file-20220315-23-8ay2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452163/original/file-20220315-23-8ay2lj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452163/original/file-20220315-23-8ay2lj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452163/original/file-20220315-23-8ay2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452163/original/file-20220315-23-8ay2lj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452163/original/file-20220315-23-8ay2lj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Liverpool’s Albert Dock: the markers of a city’s success include its cultural offerings.</span>
<span class="attribution"><a class="source" href="https://unsplash.com/photos/tHeSchqZ1Og">Mark Stuckey | Unsplash</a>, <a class="license" href="http://artlibre.org/licence/lal/en">FAL</a></span>
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<h2>Core cities</h2>
<p>Second-tier cities are those outside a nation’s capital (the first tier) which, by virtue of their scale of population and economy, make a significant contribution to national economic productivity. The precise number will vary depending on a country’s size and urban structure. </p>
<p>For practical policy purposes, the UK’s second-tier cities are generally considered to be the 11 members of the <a href="https://www.corecities.com/">Core Cities lobbying group</a>: <a href="https://theconversation.com/brexit-trade-problems-whats-gone-wrong-and-can-it-be-fixed-153270">Belfast</a>, <a href="https://theconversation.com/birmingham-plans-to-become-a-supersized-low-traffic-neighbourhood-will-it-work-170131">Birmingham</a>, <a href="https://theconversation.com/stokes-croft-the-saga-of-one-british-neighbourhood-reveals-the-perverse-injustices-of-gentrification-82010">Bristol</a>, <a href="https://theconversation.com/you-dont-have-to-build-up-or-move-out-to-tackle-urban-density-56318">Cardiff</a>, <a href="https://theconversation.com/host-city-glasgow-how-it-set-the-standard-for-urban-rebirth-28822">Glasgow</a>, <a href="https://theconversation.com/channel-4-in-leeds-a-new-hub-to-unlock-creativity-in-the-uks-nations-and-regions-144636">Leeds</a>, <a href="https://theconversation.com/ive-been-chronicling-liverpools-renaissance-for-40-years-heres-why-the-citys-unesco-status-should-not-have-been-removed-164719">Liverpool</a>, <a href="https://theconversation.com/inspiring-the-devolution-generation-in-greater-manchester-75790">Manchester</a>, <a href="https://theconversation.com/reality-of-poverty-in-newcastle-england-un-examines-effect-of-austerity-106098">Newcastle</a>, <a href="https://theconversation.com/cities-are-charging-employers-for-parking-spaces-to-help-fund-local-infrastructure-104094">Nottingham</a> and <a href="https://theconversation.com/sheffield-what-happened-in-this-city-explains-why-britain-voted-for-brexit-61623">Sheffield</a>. </p>
<p>The key drivers of urban success, which includes economic productivity are as follows: innovation in processes, goods and services; economic and social diversity; the population’s skill levels (its human capital); physical, digital and relational connectivity (nationally and globally); place quality (which includes the public and private provision of culture, healthcare, education and housing); and strategic capacity (the ability of a city’s leadership to mobilise its resources to deliver long-term goals). </p>
<p><a href="https://www.researchgate.net/publication/224892409_Competitive_European_Cities_Where_do_the_Core_Cities_Stand">My research shows</a> that, judged on these metrics, British second-tier cities have long lagged behind their European peers – from Munich and Amsterdam to Lyon, Barcelona, Milan and Copenhagen. </p>
<p>The most comprehensive and up-to-date survey of the international evidence on city performance is <a href="https://www.oecd-ilibrary.org/sites/9ef55ff7-en/index.html?itemId=/content/publication/9ef55ff7-en">the 2020 study</a> by the Organisation for Economic Co-operation and Development (OECD). This report found that gross value added (GVA) per worker in the UK’s core cities is just 86% of the national average in 2016: that’s a 14% gap, the biggest, in terms of domestic productivity, amid the larger OECD countries. </p>
<p>And the productivity gap between second-tier cities in the UK and elsewhere is even greater. Productivity per worker was 30% higher in Australia and Germany, 26% in the Netherlands, 22% in France and 17% in Italy than in Britain. </p>
<p>The OECD report showed that the extent to which a city is productive directly impacts the living standards and wellbeing of its inhabitants. Workers in these UK cities are less well educated and work in less productive sectors of the economy. Unemployment rates are higher. Their export of goods and services is lower than the UK average. They generate relatively few patents. </p>
<p>Deprivation is higher, meanwhile, with the number of deprived neighbourhoods over three times the national average. Income levels, and the educational performance of school students are lower. And housing costs are high, by international standards. </p>
<p>Further, these cities boast lower levels of public transport provision than in Europe, leading to more peak-time congestion. This in turn limits regional productivity. </p>
<p>Lastly, UK core cities are fiscally constrained and more dependent on national government funding. They receive up to 68% of their revenue from the state, compared with an average of 35% in the other 35 OECD countries. </p>
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<span class="caption">Belfast town hall: the degree to which local government is empowered to make decisions for its city impacts its productivity.</span>
<span class="attribution"><a class="source" href="https://unsplash.com/photos/V7MzSinlW1I">K. Mitch Hodge | Unsplash</a>, <a class="license" href="http://artlibre.org/licence/lal/en">FAL</a></span>
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<h2>Devolution matters</h2>
<p>For British cities to be more competitive, the OECD argued that they need greater investment to upskill their workforce and get more people into work. They need to invest in public transport, housing supply and local quality of life. They also need greater financial independence and better governance. The 2022 white paper does promise modest governance reforms but is virtually silent on the crucial issue of greater financial independence. </p>
<p><a href="https://www.liverpooluniversitypress.co.uk/journals/article/20737/">According to my research</a> our cities underperform, in part, due to a national decision-making system that has only partially been devolved. In Europe, there is variation to be sure, but the general trend is to place powers at the lowest government levels. </p>
<p>European cities have more responsibility than their UK counterparts for a wider range of functions which affect their economic competitiveness. They typically have more diverse forms of local revenue and more buoyant tax bases. This makes them less fiscally dependent upon the national state. And their combination of powers and resources arguably makes them more proactive, more entrepreneurial and more competitive. </p>
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<img alt="A city skyline under a pale blue sky." src="https://images.theconversation.com/files/452174/original/file-20220315-21-18pa21t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/452174/original/file-20220315-21-18pa21t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/452174/original/file-20220315-21-18pa21t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/452174/original/file-20220315-21-18pa21t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/452174/original/file-20220315-21-18pa21t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/452174/original/file-20220315-21-18pa21t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/452174/original/file-20220315-21-18pa21t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Frankfurt am Main is illustrative of the success of Germany’s second-tier cities.</span>
<span class="attribution"><a class="source" href="https://unsplash.com/s/photos/germany-office?orientation=landscape">Dimitry Anikin | Unsplash</a>, <a class="license" href="http://artlibre.org/licence/lal/en">FAL</a></span>
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</figure>
<p>The most successful cities in Europe are German which, because of the system created by the Allies after the second world war, have substantial powers and resources. They operate in <a href="https://theconversation.com/other-countries-have-made-progress-in-levelling-up-heres-how-the-uks-plan-compares-176405">the most decentralised national system</a> on the continent and have sophisticated, cooperative and productive relationships between its three levels of government – federal, state and local.</p>
<p>It is no accident that the German economy is the most successful in Europe. It is clear too that UK cities – and the economy at large – underperform in large part due to the more centralised governmental, institutional and financial systems in place. Letting go would make us more competitive.</p><img src="https://counter.theconversation.com/content/177382/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michael Parkinson receives funding from ESRC </span></em></p>If the UK government is serious about levelling up the country, granting its second-tier cities more political and financial independence would be a good place to start.Michael Parkinson, Professor and Ambassador for the Heseltine Institute for Public Policy, Practice and Place, University of LiverpoolLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1706222021-11-02T17:39:00Z2021-11-02T17:39:00ZWomen are more competitive when they’re given an option to share winnings – a research finding that may help close the gender pay gap<figure><img src="https://images.theconversation.com/files/429737/original/file-20211102-52445-1388arg.jpg?ixlib=rb-1.1.0&rect=48%2C156%2C6266%2C4724&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Women may be more team-oriented than men.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/we-should-lift-each-other-up-as-women-royalty-free-image/1094871524">Delmaine Donson/E+ via Getty Images</a></span></figcaption></figure><p><em>The <a href="https://theconversation.com/us/topics/research-brief-83231">Research Brief</a> is a short take about interesting academic work.</em></p>
<h2>The big idea</h2>
<p>Women are more likely to take risks and engage in competitive activities if they’re allowed to share their potential winnings with peers, according to <a href="https://doi.org/10.1073/pnas.2111943118">new research</a> I co-authored. Since one explanation of the gender pay gap is that women <a href="http://www.doi.org/10.1146/annurev-economics-111809-125122">tend to be less competitive than men</a> in workplace settings, this finding could lead to ways to narrow it. </p>
<p>In a study published on Nov. 1, 2021, in the Proceedings of the National Academy of Sciences, <a href="https://scholar.google.com/citations?hl=en&user=PtbQ4SQAAAAJ">Alessandra Cassar</a> and <a href="https://scholar.google.com/citations?user=75hF-BUAAAAJ&hl=en&oi=ao">I</a> report an experiment in which we invited 238 undergraduate students – split almost evenly between men and women – into our labs to solve a simple numbers puzzle. We wanted to see how different types of financial incentives prompt men and women to compete differently. We randomly assigned them to groups of four and had them do versions of the puzzle over three rounds. </p>
<p>Researchers <a href="http://www.doi.org/10.1146/annurev-economics-111809-125122">have conducted</a> <a href="https://www.jstor.org/stable/25098868">this experiment</a> <a href="http://dx.doi.org/10.1287/mnsc.2014.1981">many times</a>, with the result that women show less interest in competing than men. But we added a twist. </p>
<p>Half the students followed the usual methodology. They were first told they’d receive US$2 for every numbers problem solved. In the second round, we offered $4 per solution to the top two performers in each foursome, leaving the others with nothing. In the final round, participants were able to choose whether to receive $2 for every problem solved or engage in the more competitive game and potentially earn more money.</p>
<p><a href="http://dx.doi.org/10.1287/mnsc.2014.1981">Mirroring the results of past studies</a>, our research found that while 52% of the men chose the competitive option in the third round, only 34% of women did.</p>
<p>Our twist on this experiment, which we conducted with the other half, was very similar to how the standard version was conducted except in one way. In the second round, students who won were told they could choose to share some portion of their winnings with one of the two low performers in their group. We then looked at how this option to share affected their choices in round three. </p>
<p>We found that this eliminated the male-female competitiveness gap. Men chose to compete at about the same rate as before, but 60% of women opted for the riskier option when offered a chance to share their winnings. </p>
<h2>Why it matters</h2>
<p>The latest wage data <a href="https://www.census.gov/content/dam/Census/library/publications/2021/demo/p60-273.pdf">shows women earn 83 cents of every dollar</a> a man is paid, a stat that has barely budged in <a href="https://scholar.harvard.edu/goldin/career-family">decades</a>. And while controlling for job type and individual characteristics <a href="https://www.globenewswire.com/fr/news-release/2020/03/24/2005213/0/en/PayScale-2020-Gender-Pay-Gap-Report-Findings-Show-Most-Companies-Neglect-to-Address-Gender-Pay-Equity.html">closes much of the gap</a>, we think this adjustment misses the point. </p>
<p>The persistent gap in average earnings suggests women consistently go into careers that pay lower salaries than those that men go into or are systemically <a href="https://www.businessinsider.com/why-women-almost-never-become-ceo-2016-9">underpromoted</a>. The COVID-19 pandemic has <a href="https://www.cnbc.com/2020/10/13/pandemic-fallout-men-got-3-times-more-promotions-than-women.html">exacerbated this imbalance</a>.</p>
<p>To more meaningfully close or at least narrow the gap between how much men and women earn, it’s important to understand its causes. <a href="http://www.doi.org/10.1146/annurev-economics-111809-125122">Some economists</a> have suggested it’s at least partly due to different levels of competitiveness among men and women.</p>
<p>After all, high-risk competitive roles like managers and lawyers tend to come with <a href="https://www.cnbc.com/2018/04/09/what-men-and-women-earn-in-the-highest-paying-jobs-in-america.html">lofty salaries</a>. Since many of the studies cited above show women seem to be less competitive than men, this could help explain why women are underrepresented in those careers and on average earn less. </p>
<p>Our research suggests the explanation may be more nuanced. It’s not that women don’t like competition, but that they are sensitive to social aspects of it that men aren’t. When incentives reflect those social aspects, women are just as competitive as men. </p>
<h2>What’s next</h2>
<p>We’re not sure how our findings translate into the workplace or how companies can adjust the way they pay workers to encourage women to be more competitive. We are uncovering more of the what, and need to better understand the why. </p>
<p>[<em>Over 110,000 readers rely on The Conversation’s newsletter to understand the world.</em> <a href="https://theconversation.com/us/newsletters/the-daily-3?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=100Ksignup">Sign up today</a>.]</p><img src="https://counter.theconversation.com/content/170622/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mary L. Rigdon receives funding from the National Science Foundation. </span></em></p>Some suggest women’s lack of competitiveness relative to men is one reason for the persistent gap between how much men and women earn.Mary L. Rigdon, Professor and Associate Director, Center for the Philosophy of Freedom, University of ArizonaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1233112020-08-18T12:17:53Z2020-08-18T12:17:53ZNature and nurture both contribute to gender inequality in leadership – but that doesn’t mean patriarchy is forever<figure><img src="https://images.theconversation.com/files/353241/original/file-20200817-22-tf73d9.jpg?ixlib=rb-1.1.0&rect=61%2C176%2C5649%2C4075&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Who gets a seat at the table?</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/1950s-six-businessmen-executives-around-a-conference-table-news-photo/563966121">H. Armstrong Roberts/ClassicStock via Getty Images</a></span></figcaption></figure><figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/353262/original/file-20200817-22-ozhnb9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Kamala Harris at podium with Biden in the background" src="https://images.theconversation.com/files/353262/original/file-20200817-22-ozhnb9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/353262/original/file-20200817-22-ozhnb9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=609&fit=crop&dpr=1 600w, https://images.theconversation.com/files/353262/original/file-20200817-22-ozhnb9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=609&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/353262/original/file-20200817-22-ozhnb9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=609&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/353262/original/file-20200817-22-ozhnb9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=765&fit=crop&dpr=1 754w, https://images.theconversation.com/files/353262/original/file-20200817-22-ozhnb9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=765&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/353262/original/file-20200817-22-ozhnb9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=765&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Gender expectations can make it harder for women to achieve positions of leadership.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/democratic-presidential-nominee-former-us-vice-president-news-photo/1228031238">Mandel Ngan/AFP via Getty Images</a></span>
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<p>Kamala Harris’ candidacy as vice president of the United States <a href="https://abcnews.go.com/GMA/News/womens-groups-sexist-attacks-stop-kamala-harriss-historic/story?id=72329604">provoked familiar criticism</a>, based in part on her identity as a woman. Critics find her too angry, too confident, too competitive. But when women do act less competitively, they are seen as less capable of leadership. This is the <a href="https://doi.org/10.1111/j.1751-9004.2010.00274.x">“double-bind” women face</a> when aspiring to leadership positions. </p>
<p>To overcome it, we need to understand where it comes from. Why do gender norms privilege men as leaders?</p>
<p><a href="https://doi.org/10.1037/0003-066X.54.6.408">Some psychologists tie</a> the origins of gender norms to aspects of our nature – the greater physical strength of men and pregnancy and breastfeeding in women. The idea is that in our hunter-gatherer ancestors, physical strength made men more efficient at, and thus more likely to specialize in, tasks like hunting or warfare. Ancestral women specialized in tasks like infant care, which could be compromised by excessive risk-taking or competitiveness. This got the ball rolling, so the argument goes, toward gender norms that women be less competitive than men, including in the pursuit of leadership. </p>
<p><a href="https://sites.google.com/site/chrisvonrueden/home">As an evolutionary anthropologist who studies leadership</a>, I think this evolutionary explanation is not especially persuasive on its own. My view is that gender norms are not just influenced by the evolution of our bodies, but also by the <a href="https://www.apa.org/pubs/books/4318066">evolution of our minds</a>. </p>
<p>Men didn’t specialize in tasks like hunting just because of greater muscle mass, but also because men evolved to <a href="https://doi.org/10.1016/0162-3095(85)90041-X">take risks to “show-off”</a> and <a href="https://doi.org/10.1016/j.copsyc.2019.07.013">to overtly compete</a> more than women. These are only average differences – many women are more overtly competitive than the average man.</p>
<p>Nevertheless, evolved sex differences in behavior contribute to – but neither determine nor ethically justify – the gender norms that societies create. I suggest that taking an evolutionary perspective can actually help reduce gender inequality in leadership.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/353264/original/file-20200817-18-1i2jss7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="two male big horns locking horns" src="https://images.theconversation.com/files/353264/original/file-20200817-18-1i2jss7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/353264/original/file-20200817-18-1i2jss7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=417&fit=crop&dpr=1 600w, https://images.theconversation.com/files/353264/original/file-20200817-18-1i2jss7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=417&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/353264/original/file-20200817-18-1i2jss7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=417&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/353264/original/file-20200817-18-1i2jss7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=523&fit=crop&dpr=1 754w, https://images.theconversation.com/files/353264/original/file-20200817-18-1i2jss7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=523&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/353264/original/file-20200817-18-1i2jss7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=523&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Two bighorn rams butt heads in a fight for dominance.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/bighorn-headache-royalty-free-image/486400634">RichardSeeley/iStock via Getty Images</a></span>
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</figure>
<h2>Evolutionary origins of sex differences in competition</h2>
<p>Across animal species, males tend to compete more violently and more frequently than females. Many evolutionary biologists theorize this is due to <a href="https://doi.org/10.1038/ncomms12517">sex differences in parental investment</a>. As females spend time bearing and nursing young, males have access to a smaller remaining pool of potential mates. Facing greater competition over mates, males tend to evolve greater <a href="https://doi.org/10.1126/sciadv.1500983">body mass, weaponry such as horns, and physical aggression</a> to prevail against rivals. Females tend to evolve greater selectivity in their use of aggression, in part because injury <a href="https://doi.org/10.1098/rstb.2013.0074">can impede parenting</a>.</p>
<p>Do human beings fit these trends? A man of average physical strength <a href="https://doi.org/10.1016/j.evolhumbehav.2009.04.002">is stronger than 99% of women</a>. Even in the most egalitarian small-scale societies, studies find that men are likely to be more <a href="https://doi.org/10.1007/s12110-010-9094-0">physically aggressive</a> and more likely to <a href="https://doi.org/10.1007/s40750-014-0015-z">directly compete against others</a>.</p>
<p>Across studies, women are more often observed to engage in indirect competition, such as <a href="https://psycnet.apa.org/record/2018-11632-009">gossip or social exclusion</a>. Women’s willingness to compete may also be more selective. For example, when competition <a href="https://doi.org/10.1073/pnas.1520235113">directly benefits their children</a> or when <a href="https://doi.org/10.1007/s10683-018-9563-6">results are not made public</a>, women, on average, can be as competitive as men.</p>
<p>Men may also have evolved greater motivation to compete by <a href="https://doi.org/10.1017/S0730938400017214">forming large, hierarchical coalitions of same-sex peers</a>. Men can be <a href="https://doi.org/10.1007/s12110-014-9198-z">quicker to resolve low-level conflicts</a> – which goes along with valuing relationships based on how much they help with coalition-building. Women’s same-sex coalitions tend to be smaller and more egalitarian, <a href="https://doi.org/10.1371/journal.pone.0055851">enforced through threat of social exclusion</a>.</p>
<p>Historically, these average sex differences influenced the creation of gender norms to which women and men were expected to conform. These norms <a href="https://doi.org/10.1016/j.evolhumbehav.2018.03.005">restricted women’s activities beyond the household</a> and <a href="https://doi.org/10.1007/BF02734133">increased men’s control over politics</a>.</p>
<p>Importantly, different environments can strengthen or weaken sex differences. Evolution is not deterministic when it comes to human behavior. For example, in societies where <a href="https://doi.org/10.1007/BF02436620">warfare was frequent</a> or <a href="https://doi.org/10.1093/qje/qjt005">food production was more reliant on men’s labor</a>, you’re more likely to find cultural emphasis on male competitiveness and coalition-building and restriction of women’s opportunities. </p>
<h2>Implications for dismantling patriarchy</h2>
<p>Recognizing the influence of evolution on behavior and gender norms isn’t just of academic interest. I think it can suggest ways to reduce gender inequality in leadership in the real world.</p>
<p>First, trying to get women and men to on average behave the same – like simply encouraging women to “lean in” – is unlikely to have tremendous effect.</p>
<p>Second, people should call attention to those traits that help elevate many unqualified men to positions of power. These traits include larger <a href="https://doi.org/10.1177/1368430212437211">body size</a>, and men’s greater tendency to <a href="https://ideas.ted.com/why-do-so-many-incompetent-men-become-leaders-and-what-can-we-do-about-it/">self-promote and to exaggerate their competence</a>.</p>
<p>Third, people should scrutinize the extent to which organizations reward men’s more than women’s preferred forms of competition and cooperation. <a href="https://hbr.org/2018/11/how-masculinity-contests-undermine-organizations-and-what-to-do-about-it">Organizational goals can suffer</a> when competitive masculinity dominates an organization’s culture.</p>
<p>Fourth, organizations that have a more equitable mix of male and female leaders have access to more diverse leadership styles. This is a good thing when it comes to tackling all kinds of challenges. In certain scenarios, leader effectiveness may hinge more on risk-seeking, direct competitiveness and creation of rigid hierarchies – on average favoring male leaders.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/353265/original/file-20200817-14-nb3h6t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Jacinda Ardern at podium" src="https://images.theconversation.com/files/353265/original/file-20200817-14-nb3h6t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/353265/original/file-20200817-14-nb3h6t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=700&fit=crop&dpr=1 600w, https://images.theconversation.com/files/353265/original/file-20200817-14-nb3h6t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=700&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/353265/original/file-20200817-14-nb3h6t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=700&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/353265/original/file-20200817-14-nb3h6t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=880&fit=crop&dpr=1 754w, https://images.theconversation.com/files/353265/original/file-20200817-14-nb3h6t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=880&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/353265/original/file-20200817-14-nb3h6t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=880&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">New Zealand’s Prime Minister Jacinda Ardern has won accolades for how her country had managed the pandemic.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/prime-minister-jacinda-ardern-speaks-to-media-during-a-news-photo/1266670664">Hagen Hopkins/Getty Images News via Getty Images</a></span>
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<p><a href="https://doi.org/10.1002/job.2031">In other contexts</a>, <a href="https://doi.org/10.1037/0033-2909.129.4.569">perhaps the majority</a>, leader effectiveness may depend more on risk aversion, less direct forms of competition, and more empathy-driven forms of relationship-building – <a href="https://wwnorton.com/books/9780393352313">on average favoring women leaders</a>. This case has been made for <a href="https://www.nytimes.com/2020/05/15/world/coronavirus-women-leaders.html">responses of women-led governments to the current coronavirus pandemic</a>, particularly relative to the <a href="https://blogs.scientificamerican.com/observations/masks-and-emasculation-why-some-men-refuse-to-take-safety-precautions/">bravado of presidents like Donald Trump or Jair Bolsonaro</a>.</p>
<p>[<em>Deep knowledge, daily.</em> <a href="https://theconversation.com/us/newsletters/the-daily-3?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=deepknowledge">Sign up for The Conversation’s newsletter</a>.]</p>
<p>Finally, people can rely on other human tendencies – including the impulse to <a href="https://doi.org/10.1057/s41599-019-0228-7">emulate the prestigious</a> – to chip away at gender norms that favor men as leaders. The more that existing leaders, male or female, promote women as leaders, the more it normalizes women at the top. A now-famous study in India randomly assigned villages to elect women as chief councilors; girls in those villages subsequently completed more years of formal education and were <a href="https://doi.org/10.1126/science.1212382">more likely to aspire to careers outside the home</a>.</p>
<p>Patriarchy is not an inevitable consequence of human nature. Rather, better understanding of the latter is key to ending the “double-bind” that keeps women out of leadership.</p><img src="https://counter.theconversation.com/content/123311/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Christopher von Rueden does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Recognizing the influence of evolution on behavior and gender norms suggests ways to reduce gender inequality in leadership in the real world.Christopher von Rueden, Associate Professor of Leadership Studies, University of RichmondLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1387752020-05-24T12:22:52Z2020-05-24T12:22:52ZWhat Michael Jordan’s documentary ‘The Last Dance’ tells us about beating the coronavirus pandemic<figure><img src="https://images.theconversation.com/files/337106/original/file-20200522-124818-1wqoaga.jpg?ixlib=rb-1.1.0&rect=0%2C13%2C2995%2C2020&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The Netflix documentary ‘The Last Dance’ reveals the hyper-competitiveness of Michael Jordan during the 1990s.</span> <span class="attribution"><span class="source">AP Photo/Stephan Savoia)</span></span></figcaption></figure><p>With professional sports on hold indefinitely during the coronavirus pandemic, audiences worldwide have been riveted by “<a href="https://www.imdb.com/title/tt8420184/?ref_=fn_al_tt_1">The Last Dance</a>,” the 10-episode documentary series on ESPN and Netflix about the Chicago Bulls basketball dynasty of the 1990s. </p>
<p>The central figure in this story is Michael Jordan, universally regarded as the greatest basketball player of all time. What stands out, in particular, is Jordan’s <a href="https://www.businessinsider.com/michael-jordans-insane-competitiveness-2014-7?op=1">hyper-competitiveness</a> and burning desire to “win at all costs.” </p>
<p>Whether it’s <a href="https://www.espn.com/blog/truehoop/post/_/id/61933/landing-a-punch-on-michael-jordan">punching a teammate who stood up to him in the face</a> or mercilessly <a href="https://www.si.com/nba/2020/04/20/michael-jordan-bulls-last-dance-roundtable">ridiculing the general manager</a> of his own team, Jordan’s bullying and intimidation is justified in the documentary because he was “the ultimate winner.” Those who disagree with this approach are “losers,” because this is the “<a href="https://www.espn.com/nba/story/_/id/29159653/michael-jordan-calls-harsh-reputation-price-winning-leadership">price of winning</a>.”</p>
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<img alt="" src="https://images.theconversation.com/files/336576/original/file-20200520-152315-qjup4v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/336576/original/file-20200520-152315-qjup4v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=479&fit=crop&dpr=1 600w, https://images.theconversation.com/files/336576/original/file-20200520-152315-qjup4v.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=479&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/336576/original/file-20200520-152315-qjup4v.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=479&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/336576/original/file-20200520-152315-qjup4v.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=601&fit=crop&dpr=1 754w, https://images.theconversation.com/files/336576/original/file-20200520-152315-qjup4v.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=601&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/336576/original/file-20200520-152315-qjup4v.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=601&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">One of the most revealing moments in ‘The Last Dance’ concerned an incident at practice when Jordan punched teammate Steve Kerr in the face. Here the two are shown sharing a laugh in 2002 when Jordan was playing with the Washington Wizards and Kerr was with the San Antonio Spurs.</span>
<span class="attribution"><span class="source">(AP Photo/Nick Wass)</span></span>
</figcaption>
</figure>
<p>While Jordan himself never claimed to be a <a href="https://www.msn.com/en-us/sports/nba/column-sorry-michael-jordan-whether-you-wanted-to-be-or-not-you-were-a-role-model-and-the-lessons-still-resonate/ar-BB13yATD">role model</a>, his life and accomplishments are an inspiration to many in the world. As the slogan from Jordan’s <a href="https://news.nike.com/news/jordan-brand-gatorade-collection">famous Gatorade commercials in the 1990s stated, we should all “Be Like Mike.”</a> </p>
<p>But at a time of a global crisis, when collaboration is more important than competition in terms of ending the coronavirus pandemic, is this the time for anyone to “Be Like Mike?”</p>
<h2>A symbol of hyper-competitive American society</h2>
<p>The pathological competitiveness of Jordan mirrors the dominant values of American society, particularly the cut-throat logic of <a href="https://www.oxfordreference.com/view/10.1093/oi/authority.20110803100228313">neoliberalism</a>. This dominant political-economic philosophy, with its focus on life as an <a href="https://www.theguardian.com/books/2016/apr/15/neoliberalism-ideology-problem-george-monbiot">endless competition</a>, is associated with a range of ills, including increasing inequality and the breakdown of state institutions. </p>
<p>Jordan did not come out of a vacuum. He is the <a href="https://www.edgeofsports.com/2020-05-13-1524/index.html">ultimate neoliberal subject</a>, relentlessly defeating his enemies on the court, all the while <a href="https://www.edgeofsports.com/2020-05-06-1522/index.html">promoting his brand</a> and making us happy consumers of his sneakers and numerous other products.</p>
<p>We see the same logic that gave birth to and celebrates Jordan also at work in the higher levels of American government. The United States has a president who during the 2016 campaign bragged about how when he gets elected, Americans will “win” so much that they will be “<a href="https://www.salon.com/2015/09/09/donald_trump_if_elected_well_have_so_much_winning_youll_get_bored_with_winning/">bored of winning</a>.” </p>
<p>During this pandemic, Donald Trump has continued to boast of having death totals that are “<a href="https://theintercept.com/2020/05/02/creative-accounting-trump-tries-cast-americas-death-toll-achievement/">very, very strong</a>,” using mortality rates as a tool for a perverse competition between nations. Even with such high death totals and an out-of-control situation in the United States, Trump continues to both <a href="https://www.theatlantic.com/ideas/archive/2020/03/trump-is-the-chinese-governments-most-useful-idiot/608638/">cast blame on China</a> in an effort to help him win the 2020 presidential election and to praise the disastrous American response.</p>
<p>And lest we forget, he reminds us that “<a href="https://www.whitehouse.gov/briefings-statements/remarks-president-trump-members-coronavirus-task-force-press-briefing-2/">while we mourn the tragic loss of life … you can’t mourn it any stronger than we’re mourning it</a>.”</p>
<p>This connection between Jordan and Trump may seem ill-fitting to some: one person clearly displays mastery of his craft; the other is perhaps a genius for gaining media attention, but has also been called <a href="https://www.newyorker.com/news/letter-from-trumps-washington/has-trump-reached-the-lying-to-himself-and-believing-it-stage-of-the-coronavirus-pandemic">highly delusional</a>.</p>
<p>Regardless of these differences, there is a common thread of hyper-competitiveness and ruthlessness in wider American society that binds them.</p>
<h2>Collaboration over competition</h2>
<p>To beat the coronavirus pandemic, the traits that Jordan displays and wider American culture celebrates are woefully inadequate at best and harmful at worst. Global collaboration instead of hyper-competition between nations is desperately needed, whether in finding a vaccine, developing treatments and co-ordinating comprehensive worldwide containment strategies. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/336577/original/file-20200520-152298-w4q6qt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/336577/original/file-20200520-152298-w4q6qt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/336577/original/file-20200520-152298-w4q6qt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/336577/original/file-20200520-152298-w4q6qt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/336577/original/file-20200520-152298-w4q6qt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/336577/original/file-20200520-152298-w4q6qt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/336577/original/file-20200520-152298-w4q6qt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Donald Trump has turned his response to the coronavirus pandemic into a competition against other nations.</span>
<span class="attribution"><span class="source">(AP Photo/Alex Brandon)</span></span>
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</figure>
<p>An “<a href="https://www.theguardian.com/world/2020/may/12/the-race-for-a-vaccine-how-trumps-america-first-approach-slows-the-global-search">America First</a>” approach to a pandemic does not make sense, and in fact can severely hurt the United States.</p>
<p>In a world with so much interconnectivity, global civilization is <a href="https://www.newyorker.com/news/daily-comment/the-pandemic-isnt-a-black-swan-but-a-portent-of-a-more-fragile-global-system">uniquely fragile to disruptions</a>. The ongoing threats of climate change and other possible future pandemics only reinforce the need for more collaborative responses to the threats all of humanity faces.</p>
<h2>Rethinking heroism</h2>
<p>A larger issue to consider is how the media creates ultra-competitive alpha male “heroes” straight out of a capitalist blueprint. ESPN and the wider sports media environment benefit greatly from this narrative of individual greatness —whatever the cost may be to others or society. </p>
<p>But the idea of heroism itself within the sports world (and also wider society) is in need of reform. Many wisdom traditions from around the world describe the “<a href="https://internetmonk.com/archive/the-heroic-journey">heroic journey</a>,” a path that is available to all of us. This type of heroism is rooted in growth, becoming humble, developing wisdom and living a life larger than oneself. </p>
<p>We do not have to look far to see so <a href="https://time.com/collection/coronavirus-heroes/">many models of heroism</a> and selflessness during this fight against COVID-19. But rather than placing so much of the burden of heroism on our front-line workers and health-care professionals, we need to fully own our own heroic journeys in these challenging times. </p>
<p>Maybe then empty “heroes” like Michael Jordan and the toxic culture that he is associated with may not be so appealing after all.</p><img src="https://counter.theconversation.com/content/138775/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ajit Pyati receives funding from the Social Sciences and Humanities Research Council of Canada. </span></em></p>The hyper-competitiveness of Michael Jordan may work on the basketball court, but the win-at-all-cost American culture that Jordan represents is not what’s needed to end the coronavirus pandemic.Ajit Pyati, Associate Professor of Information and Media Studies, Western UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/966072018-05-29T22:58:50Z2018-05-29T22:58:50ZManagement wisdom from the NBA: sometimes the best move is the one you don’t make<figure><img src="https://images.theconversation.com/files/220564/original/file-20180528-90281-xhm6xd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Houston Rockets head coach Mike D'Antoni, during Game 2 of the NBA basketball Western Conference finals against the Golden State Warriors in Houston. D'Antoni successfully resisted calls to change his team's offensive strategy after losing Game 1.</span> <span class="attribution"><span class="source">(AP Photo/David J. Phillip)</span></span></figcaption></figure><p><a href="http://www.espn.com/nba/story/_/id/23525823/houston-rockets-blocking-noise-sticking-their-season-long-plan-golden-state-warriors">“Defiant Rockets rewarded for ignoring calls for change.”</a> That was one of the top headlines on ESPN following the recovery by the Houston Rockets in Game 2 of the NBA Western Conference finals. Despite a barrage of criticism directed at the team’s offensive strategy after a lopsided loss in Game 1, the Rockets stayed the course. And it paid off. </p>
<p>After a tough 119-106 loss to the Golden State Warriors two nights before, Houston coach Mike D’Antoni could have gone back to the drawing board and changed the offensive game plan. After all, that is what critics expected he would do to put the team in a more competitive position in Game 2.</p>
<p>But D’Antoni, like many basketball coaches, knows that sometimes the best move is no move at all. </p>
<p>D’Antoni’s decision not to change the isolation-heavy offence that led his team to the top of the Western Conference during the regular season is what I call “<a href="https://www.researchgate.net/publication/291367325_Competitive_Forbearance_The_Content_the_Process_and_the_Outcomes_of_Purposefully_Not_Acting">competitive forbearance,”</a> a purposeful decision not to act when key decision-makers have opportunity and capability to do so. </p>
<p>Competitive forbearance is also an important strategic decision in the business world.</p>
<h2>Competitive forbearance in business</h2>
<p>Competitive dynamics, a stream of strategic management research, addresses fundamental questions in strategy: How firms behave and why firms perform differently.</p>
<p>Studies in this area have mainly focused on how competitive aggressiveness — the propensity to carry out a large number of competitive actions — increases a firm’s performance. <a href="http://journals.sagepub.com/doi/full/10.1177/0149206316673718">Firms that fail to act frequently appear unenterprising or “passive,” which can diminish performance.</a></p>
<p>Little attention has been paid to the possible benefits of purposeful decisions not to act.</p>
<p><a href="https://www.sciencedirect.com/science/article/pii/S0149206300000805">Mutual forbearance theory</a> suggests multimarket rivals choose competitive forbearance to prevent unnecessary losses associated with escalating rivalry across several markets.</p>
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Read more:
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<p>However, multimarket contact is just one situation in which forbearance is preferable to action. Savvy firms use forbearance to outmanoeuvre rivals in a variety of competitive situations.</p>
<p>For example, Apple decided not to integrate Adobe’s Flash Player into the iPhone and the iPad. As a result, <a href="http://allthingsd.com/20120815/gone-in-a-flash-adobe-pulls-player-from-google-store/?KEYWORDS=Apple+flash+player.">Adobe withdrew its Flash Player from the Android mobile operating system</a> of Apple’s arch enemy, Google, and chose to refocus its efforts around the emerging HTML5 standard. This suggests that Apple’s forbearance was the right choice despite being heavily <a href="http://www.apple.com/hotnews/thoughts-on-flash/">criticized at the time</a>. </p>
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<img alt="" src="https://images.theconversation.com/files/220575/original/file-20180528-80645-1wwih1j.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/220575/original/file-20180528-80645-1wwih1j.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=462&fit=crop&dpr=1 600w, https://images.theconversation.com/files/220575/original/file-20180528-80645-1wwih1j.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=462&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/220575/original/file-20180528-80645-1wwih1j.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=462&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/220575/original/file-20180528-80645-1wwih1j.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=581&fit=crop&dpr=1 754w, https://images.theconversation.com/files/220575/original/file-20180528-80645-1wwih1j.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=581&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/220575/original/file-20180528-80645-1wwih1j.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=581&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">When Steve Jobs introduced the first iPhone in 2007, Apple made a conscious decision not to allow it to work with Adobe’s Flash Player.</span>
<span class="attribution"><span class="source">(AP Photo/Paul Sakuma)</span></span>
</figcaption>
</figure>
<p>I was part of a research project that explored the antecedents and consequences of competitive forbearance in the basketball coaching setting. Our research findings show that it has a significant impact on competitive rivalry. </p>
<h2>How forbearance improves performance</h2>
<p>In basketball, coaches make a wide range of forbearance decisions — not replacing players who are in foul trouble, not calling timeouts when teams are underperforming and not responding to opponents’ changes in offensive or defensive strategies.</p>
<p>In fact, 30 post-game interviews with nine coaches regarding their strategic decisions in 15 basketball games in the division one men’s basketball league of the FIBA–Europe revealed 673 competitive acts and 143 competitive forbearances. In other words, 17 per cent of all considered competitive moves were purposefully not executed. Competitive forbearance varied systematically across coaches.</p>
<p>The reasons basketball coaches choose to forbear can vary, from waiting for the full benefits of previous decisions to materialize to increasing players’ confidence — or in the case of D’Antoni, avoiding moves inconsistent with the team’s existing strategy and providing an opportunity for players to learn from experience. It was the right call — the Rockets went on to win 127-105 in Game 2. </p>
<p>Although competitive forbearance can improve team performance by expanding the range of strategic maneuvers and by making competitive behaviours less predictable, coaches are more prone to act than to forbear. Why is that? Two key factors are stakeholder pressure and coaching confidence. </p>
<h2>Not acting attracts criticism</h2>
<p>Owners, journalists, analysts, fans and players often assume that not taking action indicates incompetence and a lack of coaching skills. Thus, the norm is to act and forbearance is a violation of the norm.</p>
<p>The negative outcomes associated with forbearance are judged more harshly than the negative outcomes of actions. The effects of this pressure are especially evident in the last two minutes of the game, where our study revealed competitive forbearance was 62 per cent less likely to occur.</p>
<p>Not all coaches succumb to stakeholder pressure. More accomplished coaches had 42 per cent higher odds of forbearing. We also found the coaches who were confident about winning the game were over two and half times more likely to forbear. D’Antoni’s regular-season record with the Rockets — 65 wins in 82 games — would indicate a certain amount of confidence in the team’s odds of success. </p>
<p>When key decision-makers actively use forbearance, they consider a wide range of plots to outcompete rivals. They are also less predictable to rivals because they forbear when rivals expect action.</p>
<p>Despite its unique advantages, competitive forbearance is not in the toolkit of many basketball coaches. Only more accomplished and confident coaches are more likely to use competitive forbearance, which in turn, increases team performance. </p>
<p>And how did it work out for the Houston Rockets? D’Antoni kept firm to his forbearance decision throughout the Western final — he did not change the team’s offensive strategy. But a collapse in the second half of Game 7 led to a Golden State victory. <a href="http://www.espn.com/nba/story/_/id/23636649/eric-gordon-believes-houston-rockets-playing-title-chris-paul-had-played">If the Rockets did not lose Chris Paul when they were up 3-2 after five games</a>, they might have been in the finals.</p>
<p>Indeed, it is not one decision, but a series of decisions that can increase or decrease performance. Forbearances increased the chances of success, but it is a combination of actions and forbearances that is critical for winning.</p><img src="https://counter.theconversation.com/content/96607/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Goce Andrevski does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Research has shown that the most successful basketball coaches resist pressure to make changes during games. Choosing not to make a move is sometimes also the right call for business leaders.Goce Andrevski, Associate Professor, Queen's University, OntarioLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/970402018-05-23T18:10:19Z2018-05-23T18:10:19ZThe US overtakes Hong Kong to rank first among world’s most competitive economies<figure><img src="https://images.theconversation.com/files/220110/original/file-20180523-51102-uuczjk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The US has broken back into the lead.</span> <span class="attribution"><span class="source">shutterstock.com</span></span></figcaption></figure><p>The US has leapfrogged Singapore and Hong Kong to top IMD’s latest <a href="https://www.imd.org/wcc/world-competitiveness-center/">World Competitiveness Rankings</a>. The top five most competitive economies in the world remain the same since 2016, but their order has changed. With the US at the top, Hong Kong has dropped one spot to second and Singapore remains third. Germany has fallen two spots to 15th and the UK has slipped one position to 20th. </p>
<p>We compile the rankings using 258 indicators. Hard data such as national employment and trade statistics are weighted twice as much as the soft data from a survey of business executive opinions, which measures the business perception of issues like corruption, environmental concerns and quality of life.</p>
<p>The return of the US to the top is driven by its strength in economic performance and infrastructure. Many will wonder if Trump is responsible for this return to the top spot in the rankings. The answer is a mixed bag. Hard data still reflects the results of policies from the Obama administration which boosted employment and output, like the American Recovery and Reinvestment Act of 2009. Meanwhile, the survey of business executives element of the rankings indicates that the Trump administration is perceived as business friendly. </p>
<p>But in the category of how attractive the country remains to business executives, the US ranked very low in perceptions of government competency and the risk of political instability. The country also ranked number one in the rankings in 2013-15, which shows that any recent policy decisions have not miraculously catapulted the country to the top.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/220097/original/file-20180523-51109-149f0od.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/220097/original/file-20180523-51109-149f0od.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/220097/original/file-20180523-51109-149f0od.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=496&fit=crop&dpr=1 600w, https://images.theconversation.com/files/220097/original/file-20180523-51109-149f0od.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=496&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/220097/original/file-20180523-51109-149f0od.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=496&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/220097/original/file-20180523-51109-149f0od.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=624&fit=crop&dpr=1 754w, https://images.theconversation.com/files/220097/original/file-20180523-51109-149f0od.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=624&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/220097/original/file-20180523-51109-149f0od.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=624&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">2018 IMD World Competitiveness Ranking (one year change).</span>
<span class="attribution"><a class="source" href="https://www.imd.org/wcc/world-competitiveness-center/">IMD</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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</figure>
<p>Hong Kong comes in at second but with different strengths to the US. It scored especially high in terms of government efficiency and business efficiency. This reflects the fact that there is no template to becoming the most competitive country in the world; each has its unique strengths and weaknesses. Countries at the top of the rankings share an above the average performance across all competitiveness factors, but their competitiveness mix varies.</p>
<p>The Netherlands moves one place to fourth, swapping with Switzerland which moves down to fifth. The Netherlands’ advancement shows a “balanced” path to competitiveness, ranking in the top ten in economic performance, government and business efficiency. Switzerland’s drop is mainly due to a slowdown in exports and, to a lesser extent, an increase in perceptions about threats of relocation of its R&D facilities.</p>
<h2>The UK slipping</h2>
<p>The UK has steadily slid from 16th in 2014 to 20th in 2018. The criteria it declined the most in since last year are consumer price inflation, exchange rate stability and risk of political instability, thanks in large part to Brexit. It has made gains, however, in stock market capitalisation and in reducing the government’s budget deficit.</p>
<p>Germany has also dropped at a steady rate from sixth in 2014 to 15th this year, also showing declines in price inflation as well as exchange rates and in the population growth category. It has improved in GDP growth per capita and real GDP growth.</p>
<p>The remaining places in the top ten are occupied largely by Nordic countries: Denmark (sixth), Norway (eighth) and Sweden (ninth). These countries show strong performance in the overall productivity of the private sector and management practices. </p>
<p>Other high performing economies advanced even further this year. Notably, Austria (18th) and China (13th) considerably improve their positions by seven and five places respectively. Economic growth, reduction of government debt and increased business productivity enable Austria to move up. In the case of China, investment in infrastructure, as well as improvement in some institutional aspects such as the legal and regulatory framework have boosted its performance.</p>
<p>The bottom five economies in the 63 countries that were ranked show a slight change in their performance, especially among those countries that have experienced economic and political distress in the last few years. While Mongolia (62nd) and Venezuela (63rd) remain at the bottom of the table, Ukraine (59th) and Brazil (60th) have made small improvements. Brazil’s is the first since 2010 due to a positive shift in its real GDP and employment. Ukraine increases because of its business efficiency. Their rise pushes Croatia down two places to 61st.</p>
<p>Aside from Croatia, Eastern Europe shows mixed results, but the majority of the region’s economies have improved. Very few Western European economies advanced in the rankings this year. In the Middle East, despite the increase of political tensions in the area, all the countries experience competitiveness improvements with the exception of Saudi Arabia which drops three places to 39th. Most Latin American countries in the sample improved.</p>
<p>The <a href="https://www.imd.org/wcc/world-competitiveness-center/">IMD World Competitiveness Center</a> has published rankings every year since 1989. Every year the study shows that there is no one-size-fits-all approach to having a competitive economy. There are a number of factors involved and if an economy can raise its game in a good number of them – whether the focus is hard economic data or government efficiency, it can rise through the ranks.</p>
<hr>
<p><em>Correction: this article was corrected on May 29 2018. It incorrectly stated that the UK’s exchange rate stability had improved, instead of citing its improvement in reducing the government’s budget deficit.</em></p><img src="https://counter.theconversation.com/content/97040/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Arturo Bris does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The return of the US to the top is driven by its strength in economic performance and infrastructure. But it’s mixed results for president Trump.Arturo Bris, Professor of Finance, International Institute for Management Development (IMD)Licensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/923992018-02-25T21:51:53Z2018-02-25T21:51:53ZWhy learning from experience is the educational wave of the future<figure><img src="https://images.theconversation.com/files/207733/original/file-20180223-108122-1nj2eta.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Volunteers work on a Habitat for Humanity site in Winnipeg in July 2017. Building homes for the disadvantaged is the type of 'learning through service' that will stand university grads in better stead with employers.</span> <span class="attribution"><span class="source">THE CANADIAN PRESS/John Woods</span></span></figcaption></figure><p>The <a href="https://www.theguardian.com/education/2016/jun/24/has-university-life-changed-student-experience-past-present-parents-vox-pops">university experience has changed</a>.</p>
<p>It used to be enough for students to spend four years working hard on assignments, labs and exams to earn a useful undergraduate degree that signalled competence and was redeemable for a good job.</p>
<p>Employers would <a href="http://www.seattlejobsinitiative.com/beyond-the-headlines-the-decline-of-on-the-job-training/">spend weeks or months training their newly hired graduates</a>, sometimes in cohorts, shaping their broad knowledge so it could be applied to the specific needs of the company or government agency. </p>
<p>Today, in contrast, <a href="https://www.washingtonpost.com/news/on-leadership/wp/2014/09/05/what-employers-really-want-workers-they-dont-have-to-train">employers want fresh graduates who they don’t have to train</a>.</p>
<p>That means students must <a href="http://www.macleans.ca/work/jobs/entry-level-jobs-are-getting-harder-to-find/">learn and apply their knowledge at the same time, inside and outside the classroom, all without adding extra months or years to their studies</a>. After completing their degrees, they are expected to be ready to compete for jobs and jump into working life immediately, without further training.</p>
<p>In the ongoing global drive for efficiency and competitiveness, education and training are now seen as the responsibility of the post-secondary sector, where students face a wider set of expectations not only to learn and synthesize subject matter, but to adapt it and put it to use almost immediately.</p>
<h2>Learning by doing</h2>
<p>This idea of <a href="https://opentextbc.ca/teachinginadigitalage/chapter/4-4-models-for-teaching-by-doing/">learning by doing is what is now called “experiential learning,”</a> and though it’s demanding, it is also very effective. It is vital to the mission of all advanced institutions of higher learning, including the one where I am dean of engineering, McMaster University in Hamilton.</p>
<p>In class, this method of learning means replacing chalk-and-talk pedagogy of the past with inquiry, problem-based and project-based learning, sometimes using the tools of what we call a maker space — an open, studio-like creative workshop.</p>
<p>These methods recognize that lectures on complex, abstract subjects are difficult to comprehend, and that <a href="http://www.huffingtonpost.ca/dr-marie-bountrogianni/experiential-learning-education_b_9110816.html?utm_hp_ref=ca-experiential-learning">hands-on, minds-on learning by experience not only makes it easier to absorb complex material, it also makes it easier to remember</a>.</p>
<p>Outside class, experiential learning takes the form of clubs, activities and competitions for fun, such as the international EcoCAR competition, <a href="http://ecocar3.org/mcmaster/about-us/">converting muscle cars from gas to electric power</a>, or <a href="http://deltahacks.com/">hackathons that see students compete to solve complex technical and social problems</a>.</p>
<p>This year at McMaster, experiential learning has been both the competition and the prize as <a href="https://www.eng.mcmaster.ca/news/big-ideas-contest-and-winners-are">six winners of an extracurricular Big Ideas competition flew off to tour Silicon Valley facilities</a> where they hope one day to work or learn how to start up their own ventures.</p>
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<iframe width="440" height="260" src="https://www.youtube.com/embed/BNKj6YMRNtM?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Elizabeth DeMaren was one of the winners of the Big Ideas contest. She wants to develop Insight, an app that tracks your social media activity and shows you articles on topics outside of your usual social media bubble.</span></figcaption>
</figure>
<p>Experiential learning also means <a href="https://www.universityaffairs.ca/features/feature-article/undergraduate-years-include-research-experience/">engaging undergraduates directly in high-level research</a> that was once the exclusive domain of graduate students and professors, exposing them to scholarship at the highest level from early in their academic careers.</p>
<p>In the community, <a href="http://www.servicelearning.umn.edu/info/benefits.html">experiential learning is learning through service</a>, both within and beyond one’s area of study — rebuilding hurricane-damaged communities, for example, or helping at local soup kitchens. We are teaching students not only to be workers who drive the modern economy, <a href="https://www.eng.mcmaster.ca/engineering-society-program">but also to be engaged citizens</a>.</p>
<p>Work-integrated learning sees <a href="https://www.academica.ca/blog/what-impact-work-integrated-learning-student-success">students stepping into the actual workplace to get a flavour of what working life is like in their fields</a>, including managing time, working independently, multi-tasking, and adapting to the particular culture and expectations of a specific workplace, all as part of their formal education.</p>
<p>We want students to understand and approach the grand challenges and wicked problems facing our world, such as climate change and opioid addiction, which are not solely issues of science or technology, sociology or economics, but complex, layered issues that demand broad thinking and collaboration.</p>
<h2>Canada needs innovators</h2>
<p>We want our students to be innovators. If life in Canada is to improve, especially in the context of challenging trade relationships such as NAFTA, we need a workforce that can address <a href="http://www.metronews.ca/news/halifax/2018/02/19/hacking-away-at-food-insecurity-students-tackling-food-issues-together-at-halifax-event.html">global problems with innovation that is relevant</a> —technologically, socially, economically, with respect for all cultures and genders.</p>
<p>All of this learning drives students to begin thinking and acting with their careers in mind from their very first year of study.</p>
<p>Is that fair?</p>
<p>It is important to remember that high school has changed too. Students are better prepared than they were a generation ago. By the time they enter university, they are more aware of the new demands on their time and achievements.</p>
<p>Much more information is also available about employment and specific employers from <a href="https://www.glassdoor.ca/index.htm">portals like Glassdoor</a>, allowing students to make more informed choices about their co-op placements or the permanent employers they will target or reject, based on reputation and organizational climate.</p>
<p>We cannot change the fact that the world is more competitive, nor that it takes more to succeed than it used to.</p>
<p>What we can do is make sure that the extra work that goes into creating and completing a fully realized university experience is as valuable as it can possibly be.</p><img src="https://counter.theconversation.com/content/92399/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ishwar K. Puri receives funding from National Science and Engineering Research Council. He is chair of the National Council of Deans of Engineering and Applied Science and Fellow of the Canadian Academy of Engineering.</span></em></p>Employers now expect to hire people out of universities who don’t require any training. That’s why so-called experiential learning is becoming so critical for university students.Ishwar K. Puri, Dean of Engineering and Professor, McMaster UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/809362017-07-16T18:08:52Z2017-07-16T18:08:52ZIs America’s digital leadership on the wane?<figure><img src="https://images.theconversation.com/files/178284/original/file-20170714-15958-1qbf51q.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Is America's digital economy facing a stormy future?</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/usa-waving-flag-on-bad-day-208242883">Filipe Frazao/Shutterstock.com</a></span></figcaption></figure><p>American leadership in technology innovation and economic competitiveness is at risk if U.S. policymakers don’t take crucial steps to protect the country’s digital future. The country that gave the world the internet and the very concept of the disruptive startup could find its role in the global innovation economy slipping from reigning incumbent to a disrupted has-been.</p>
<p>My research, conducted with <a href="http://fletcher.tufts.edu/eBiz/About/Team/Ravi-Shankar-Chaturvedi">Ravi Shankar Chaturvedi</a>, investigates our increasingly digital global society, in which physical interactions – in communications, social and political exchange, commerce, media and entertainment – are being displaced by electronically mediated ones. Our most recent report,
“<a href="http://sites.tufts.edu/digitalplanet/dei17/">Digital Planet 2017</a>: How Competitiveness and Trust in Digital Economies Vary Across the World,” confirms that the U.S. is on the brink of losing its long-held global advantage in digital innovation.</p>
<p>Our yearlong study examined factors that influence innovation, such as economic conditions, governmental backing, startup funding, research and development spending and entrepreneurial talent across 60 countries. We found that while the U.S. has a very advanced digital environment, the pace of American investment and innovation is slowing. Other countries – not just major powers like China, but also smaller nations like New Zealand, Singapore and the United Arab Emirates – are building significant public and private efforts that we expect to become foundations for future generations of innovation and successful startup businesses.</p>
<p>Based on our findings, I believe that <a href="https://www.nytimes.com/2017/04/17/opinion/donald-trumps-multi-pronged-attack-on-the-internet.html">rolling back net neutrality rules</a> will jeopardize the digital startup ecosystem that has created value for customers, wealth for investors and globally recognized leadership for American technology companies and entrepreneurs. The digital economy in the U.S. is already on the verge of stalling; <a href="https://www.freepress.net/blog/2017/04/25/net-neutrality-violations-brief-history">failing to protect an open internet</a> would further erode the United States’ digital competitiveness, making a troubling situation even worse.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/178159/original/file-20170713-9618-1kyxddx.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/178159/original/file-20170713-9618-1kyxddx.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/178159/original/file-20170713-9618-1kyxddx.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=447&fit=crop&dpr=1 600w, https://images.theconversation.com/files/178159/original/file-20170713-9618-1kyxddx.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=447&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/178159/original/file-20170713-9618-1kyxddx.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=447&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/178159/original/file-20170713-9618-1kyxddx.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=562&fit=crop&dpr=1 754w, https://images.theconversation.com/files/178159/original/file-20170713-9618-1kyxddx.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=562&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/178159/original/file-20170713-9618-1kyxddx.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=562&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Comparing 60 countries’ digital economies.</span>
<span class="attribution"><a class="source" href="https://hbr.org/2017/07/60-countries-digital-competitiveness-indexed">Harvard Business Review, used and reproducible by permission</a>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span>
</figcaption>
</figure>
<h2>Comparing competitiveness</h2>
<p>In the U.S., the reins of internet connectivity are tightly controlled. Just five companies – Comcast, Spectrum, Verizon, CenturyLink and AT&T – <a href="https://www.nytimes.com/2017/04/17/opinion/donald-trumps-multi-pronged-attack-on-the-internet.html?_r=0">serve more than 80 percent of wired-internet customers</a>. What those companies provide is both <a href="https://www.dailydot.com/layer8/us-broadband-speed-cost-infographic/">slower and more expensive</a> than in many countries around the world. Ending net neutrality, as the <a href="https://www.fcc.gov/restoring-internet-freedom">Trump administration has proposed</a>, would give internet providers even more power, letting them decide which companies’ innovations can reach the public, and at what costs and speeds.</p>
<p>However, our research shows that the U.S. doesn’t need more limits on startups. Rather, it should work to revive the creative energy that has been America’s gift to the digital planet. For each of the 60 countries we examined, we combined 170 factors – including elements that measure technological infrastructure, government policies and economic activity – into a ranking we call the <a href="http://sites.tufts.edu/digitalplanet/dei17/">Digital Evolution Index</a>. </p>
<p>To evaluate a country’s competitiveness, we looked not only at current conditions, but also at how fast those conditions are changing. For example, we noted not only how many people have broadband internet service, but also how quickly access is becoming available to more of a country’s population. And we observed not just how many consumers are prepared to buy and sell online, but whether this readiness to transact online is increasing each year and by how much. </p>
<p>The countries formed four major groups: </p>
<ul>
<li>“Stand Out” countries can be considered the digital elite; they are both highly digitally evolved and advancing quickly.</li>
<li>“Stall Out” countries have reached a high level of digital evolution, but risk falling behind due to a slower pace of progress and would benefit from a heightened focus on innovation.</li>
<li>“Break Out” countries score relatively low for overall digital evolution, but are evolving quickly enough to suggest they have the potential to become strong digital economies.</li>
<li>“Watch Out” countries are neither well advanced nor improving rapidly. They have a lot of work to do, both in terms of infrastructure development and innovation.</li>
</ul>
<h2>The US is stalling out</h2>
<p>The picture that emerges for the U.S. is not a pretty one. Despite being the 10th-most digitally advanced country today, America’s progress is slowing. It is close to joining the major EU countries and the Nordic nations in a club of nations that are, digitally speaking, stalling out. </p>
<p>The “Stand Out” countries are setting new global standards of high states of evolution and high rates of change, and exploring various innovations such as <a href="http://money.cnn.com/2017/05/03/technology/nutonomy-psa-group-peugot/index.html">self-driving cars</a> or <a href="http://www.bbc.com/news/technology-40026940">robot policemen</a>. New Zealand, for example, is investing in a <a href="http://www.mbie.govt.nz/info-services/sectors-industries/technology-communications/fast-broadband">superior telecommunications system</a> and adopting <a href="http://www.mbie.govt.nz/info-services/science-innovation/digital-economy">forward-looking policies</a> that create <a href="http://kiwilandingpad.com/">incentives for entrepreneurs</a>. Singapore plans to <a href="http://www.channelnewsasia.com/news/business/govt-commits-s-19b-to-new-5-year-plan-for-r-amp-d-initiatives-ri-8214052">invest more than US$13 billion in high-tech industries</a> by 2020. The United Arab Emirates has created free-trade zones and is transforming the city of Dubai into a “<a href="https://government.ae/en/about-the-uae/the-uae-government/smart-uae/smart-dubai">smart city</a>,” linking sensors and government offices with residents and visitors to create an interconnected web of transportation, utilities and government services.</p>
<p>The “Break Out” countries, many in Asia, are typically not as advanced as others at present, but are catching up quickly, and are on pace to surpass some of today’s “Stand Out” nations in the near future. For example, China – the world’s <a href="https://www.emarketer.com/Article/China-Eclipses-US-Become-Worlds-Largest-Retail-Market/1014364">largest retail and e-commerce market</a>, with the world’s largest number of people using the internet – has the fastest-changing digital economy. Another “Break Out” country is India, which is already the <a href="http://www.counterpointresearch.com/press_release/indiahandsetmarket2015/">world’s second-largest smartphone market</a>. Though only one-fifth of its 1.3 billion people have online access today, by 2030, some estimates suggest, <a href="https://www.economist.com/news/leaders/21693925-battle-indias-e-commerce-market-about-much-more-retailing-india-online">1 billion Indians will be online</a>.</p>
<p>By contrast, the U.S. is on the edge between “Stand Out” and “Stall Out.” One reason is that the American startup economy is slowing down: Private startups are attracting huge investments, but <a href="https://www.bloomberg.com/news/articles/2017-07-10/silicon-valley-s-overstuffed-startups-risk-messy-blowout">those efforts aren’t paying off</a> when the startups are either acquired by bigger companies or offer themselves on the public stock markets. </p>
<p>Investors, business leaders and policymakers need to take a more realistic look at the best way to profit from innovation, balancing efforts toward both huge results and modest ones. They may need to recall the lesson from the founding of the internet itself: If government invests in key aspects of digital infrastructure, either directly or by creating subsidies and tax incentives, that lays the groundwork for massive private investment and innovation that can transform the economy.</p>
<p>In addition, investments in Asian digital startups have exceeded those in the U.S. <a href="https://www.ft.com/content/f97ed1aa-669d-11e7-9a66-93fb352ba1fe">for the first time</a>. According to CB Insights and PwC, US$19.3 billion in venture capital from sources around the world was invested in Asian tech startups in the second quarter of 2017, while the U.S. <a href="https://www.cbinsights.com/research-venture-capital-reports-q2-2017">had $18.4 billion in new investment</a> over the same period. </p>
<p>This is consistent with our findings that Asian high-momentum countries are the ones in the “Break Out” zone; these countries are the ones most exciting for investors. Over time, the U.S.-Asia gap could widen; both money and talent could migrate to digital hot spots elsewhere, such as China and India, or smaller destinations, such as Singapore and New Zealand.</p>
<p>For the country that gave the world the foundations of the digital economy and a president who seems <a href="http://twitter.com">perpetually plugged in</a>, falling behind would, indeed, be a disgrace.</p><img src="https://counter.theconversation.com/content/80936/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Bhaskar Chakravorti directs the Institute for Business in the Global Context at The Fletcher School at Tufts, which receives funding from Mastercard, Microsoft and the Gates Foundation. </span></em></p>The digital economy in the US is already on the verge of stalling; failing to protect an open internet would further erode the United States’ digital competitiveness.Bhaskar Chakravorti, Senior Associate Dean, International Business & Finance, Tufts UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/709252017-01-09T20:26:48Z2017-01-09T20:26:48ZSouth Africa can’t compete globally without fixing its attitude to maths<figure><img src="https://images.theconversation.com/files/152080/original/image-20170109-23482-uehzdp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Investing in pupils' maths skills is an investment in a country's economy.</span> <span class="attribution"><span class="source">Global Partnership for Education/Flickr</span></span></figcaption></figure><p>South Africa is not producing enough school leavers who are competent in maths and science. This is a fact borne out by international assessments such as the <a href="http://timssandpirls.bc.edu/publications/timss/2015-methods.html">Trends in International Mathematics and Science Study</a> (TIMMS) and the World Economic Forum’s <a href="https://www.weforum.org/reports/the-global-competitiveness-report-2016-2017-1">Global Competitiveness Report</a>. These show that South Africa is not making much headway when it comes to maths and science. </p>
<p>The 2016 Global Competitiveness Report ranked South Africa last among 140 countries for maths and science. This places it behind poorer African countries like Mozambique and Malawi.</p>
<p>In 2016 there was a <a href="https://businesstech.co.za/news/government/148875/matric-results-2016-maths-and-science-suffers/">marginal improvement</a> in the maths pass rate, from 49.1% the previous year to 51.1%. The country is moving at a glacial pace in an area that demands urgent attention. After all, science and maths are key to any country’s economic development and its competitiveness in the global economy. </p>
<p>The TIMMS study ranks Singapore, Hong Kong, South Korea and Japan among its top maths and science performers. It’s no coincidence that these countries feature among the <a href="http://www.wipo.int/pressroom/en/articles/2016/article_0008.html">top 20</a> on the Global Innovation Index. Good quality education fuels an economy. South Africa needs to increase its supply of science and technology university graduates, which at the moment constitute the bulk of <a href="http://www.dhet.gov.za/Gazette/Government%20Gazette%20No%2039604,%2019%20January%202016.%20List%20of%20Occupations%20in%20High%20Demand%202015.pdf">scarce skills</a> outlined by the Department of Higher Education and Training. </p>
<p>But instead of chasing improved results the government is lowering the bar for maths at school level. At the end of 2016 it set <a href="http://www.education.gov.za/Portals/0/Documents/Publications/Circular%20A3%20of%202016.pdf?ver=2016-12-07-154005-723">20% as a passing mark</a> for pupils in grades 7, 8 and 9. This lends credence to the common view of maths as a subject only the “gifted” can comprehend. </p>
<p>It’s time to place a premium on maths and to ensure that pupils – especially those from poorer backgrounds – receive the necessary support to excel at maths. This is critical if South Africa is to produce the human capital needed to drive economic growth and create new industries in the future. </p>
<h2>How maths and science boost economies</h2>
<p>Maths and science are a gateway to new industries. Mastery of them endows an economy with the human capital needed to ride the technological wave. In his work on the industries of the future Alec Ross, who advised Hillary Clinton on innovation during her term as US Secretary of State, <a href="http://www.simonandschuster.com/books/The-Industries-of-the-Future/Alec-Ross/9781476753652">points out</a> that sectors such as robotics, advanced life sciences, codification of money, big data and cybersecurity – all of which require mastery of technology and mathematical skills – are the pillars of the <a href="https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/">fourth industrial revolution</a>. </p>
<p>Simply put, this “revolution” is the age of technology that’s already upon us.</p>
<p>More importantly, a grasp of maths and science boosts confidence and expands career possibilities for pupils. This ultimately gives them an edge in the labour market. </p>
<p>Many students drop out of maths not by choice but because they’re frustrated by a lack of adequate support. I speak from experience: I dropped the subject when I was 14 at the end of what’s now Grade 9 but used to be called Standard 7. Our maths teacher didn’t encourage those he called “slow learners” to continue with the subject and I was one of many intimidated into giving up on maths.</p>
<p>But succeeding in maths, or in any area of skill, isn’t entirely a matter of genetic endowment. Psychologist Anders Ericsson, <a href="http://www.goodreads.com/book/show/26312997-peak">in his book Peak</a>, draws on three decades of research to prove why natural talent and other innate factors have less of an impact than what he calls deliberate or purposeful practice.</p>
<p>He contends that</p>
<blockquote>
<p>a number of successful efforts have shown that pretty much any child can learn math if it is taught in the right way.</p>
</blockquote>
<p>South Africa should be focusing on how to teach maths in the right way rather than buying into the myth that it is an impossible subject. The current approach is robbing the economy of critical human capital.</p>
<h2>Radical interventions</h2>
<p>Some may argue, though, that any improvement or shift is impossible in an education system that’s plagued by weak infrastructure, a lack of teacher development and support and too few qualified maths and science teachers. Even if the numbers of teachers in these subjects were to increase, it’s crucial that the quality of education rises too.</p>
<p>Radical interventions are needed, now – or South Africa will never become a global player in the fourth industrial revolution. </p>
<p>The country must develop new teacher training methods and nurture a supportive environment for teachers. Innovative teaching tools should be introduced in the early phases to demystify maths and science for young pupils. If these subjects are more fun to learn, more pupils may be drawn to them as future career options.</p>
<p>Taking these steps will give South Africa a better chance in the future to harness the talent of its youth to powering the economy, and improve its global competitiveness.</p><img src="https://counter.theconversation.com/content/70925/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mzukisi Qobo does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Good quality education fuels an economy. South Africa needs to increase its supply of science and technology university graduates. But instead it’s lowering the bar, especially when it comes to maths.Mzukisi Qobo, Associate Professor at the Institute for Pan African Thought and Conversation, University of JohannesburgLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/571812016-06-07T11:42:48Z2016-06-07T11:42:48ZYes, the EU values businesses over people – but is Britain any better?<figure><img src="https://images.theconversation.com/files/125361/original/image-20160606-25976-17dx2ov.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>With the EU referendum campaign entering its final phase, most of the arguments seem to be about the short-term implications for British politics and the wider economic consequences of leaving the union.</p>
<p>But one topic has been generally absent from discussions so far, even though it has featured prominently in the <a href="http://www.consilium.europa.eu/en/policies/uk/2016-uk-settlement-process-timeline/">negotiations between the UK and the EU</a> and in the relevant <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/502291/54284_EU_Series_No1_Web_Accessible.pdf">government White Paper</a>: the objective of fostering competitiveness within a reformed EU. </p>
<p>The idea is that European companies should be able to beat international competitors by offering better products, at low prices. It also implies direct competition between companies within the European single market. More importantly, though, it requires governments to do all they can to support national companies. </p>
<p>That sounds like common sense, but the question is how you go about helping businesses thrive and whether you are compromising your responsibilities towards citizens to do it. Businesses like reduced regulation, weaker social protection for workers and tax breaks – but do ordinary people?</p>
<h2>Business first</h2>
<p>After negotiating a special place for the UK in the EU earlier this year, David Cameron claimed to have <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/502291/54284_EU_Series_No1_Web_Accessible.pdf">“secured a firm commitment”</a> from the EU that it would push the competitiveness agenda harder. </p>
<p>And there are clear signs of strong dedication to these goals. There is a plan, for example, to make sure new laws meet the needs of small businesses wherever possible, something which grants business interests a degree of superior status that should upset any democratically minded person. There is also a significant drive to prepare the <a href="https://theconversation.com/explainer-what-is-the-transatlantic-trade-and-investment-partnership-37258">Transatlantic Trade and Investment Partnership</a> – a wide reaching deal between the US and the EU that would lower social and environmental standards.</p>
<p>The UK and the EU both want to engender a “climate of entrepreneurship” in Europe because they claim that economic progress comes from the genius of entrepreneurs alone, who need to be left alone to thrive.</p>
<p>They both work on the assumption that regulation is intrinsically problematic. So-called red tape, they believe, stifles entrepreneurial activity. They also view taxation (especially if it is imposed on companies or their owners and shareholders) as undermining the competitive advantage of national economies in the global race.</p>
<h2>People second</h2>
<p>But this narrow interpretation of competitiveness assumes, and at the same time stipulates as universal truth, that economic imperatives ought always to override other concerns. The needs of businesses override the need to protect the environment and the rights of employees. They also override the necessity to raise the revenue it takes to fund essential public services that improve living standards.</p>
<p>Dissent seems futile, because according to Donald Tusk, president of the European Council, “everyone agrees on the need to further work on better regulation and on lessening the burdens on business”. </p>
<p>In other words, <a href="http://wickedissues.blogspot.co.uk/2016/02/four-frameworks-to-understand-public.html">debates around social policies and the design of public services</a> are only seen as reasonable as long as they don’t affect business interests and help to fill the gaps that markets alone cannot.</p>
<p>These views further the trajectory of the EU towards a predominantly economic model of integration. Hopes that the EU might evolve into a haven of social well-being appear less likely to be fulfilled than ever.</p>
<h2>Two sides of the same coin</h2>
<p>But the EU, for all its obsession with pleasing businesses, does continue to hold the UK back from some of its more radical attempts to prioritise business interests over <a href="https://theconversation.com/why-brexit-would-be-bad-for-employment-rights-55890">employment rights</a>. It has, for example, stopped the UK from repealing the <a href="http://www.hse.gov.uk/contact/faqs/workingtimedirective.htm">working time directive</a> or <a href="https://theconversation.com/leaving-eu-would-be-bad-for-women-but-staying-in-doesnt-look-too-great-either-60280">undermining parental leave</a>.</p>
<p>Within the EU, the UK’s drive towards an ever stronger focus on competitiveness with less regulation (or protection of social standards) is at least slightly slowed. That’s why the outcome of the EU referendum is still important. Even if the two sides have a similar agenda, the UK would probably slide further without the restraints placed on it by EU regulation.</p>
<p>Moreover, other EU countries could put pressure on the EU to move away from its obsession with competition. Member states could push for more investment in sustainable industries, green energy and modern public transport – even if they don’t seem that interested at the moment.</p>
<p>This would be more likely if governments less enthralled by the idea of ever more competition came to power in countries with sufficient clout to alter the course of European integration. That’s an outcome arguably more likely than the UK itself becoming such a country – particularly if it were outside the EU.</p><img src="https://counter.theconversation.com/content/57181/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Enrico Reuter does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The idea that the British government would do a better job of protecting its people after Brexit doesn’t stand up to much scrutiny.Enrico Reuter, Lecturer in Public and Social Policy, University of YorkLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/593422016-05-15T14:17:13Z2016-05-15T14:17:13ZProtests surge as gap widens between reality and the ‘Africa rising’ narrative<figure><img src="https://images.theconversation.com/files/122480/original/image-20160513-10687-11fi703.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Burkina Faso is among the African countries that have experienced popular protests in recent years.</span> <span class="attribution"><span class="source">Ahmed Yempabou/EPA</span></span></figcaption></figure><p>Self-congratulatory rhetoric keeps springing from the lips of World Economic Forum elites – at the expense of reality.</p>
<p>Software executive Brett Parker <a href="http://www.iol.co.za/business/opinion/wef-leader-series-brett-parker-2019227">claims</a> that “Africa will probably remain natural resources-driven for the next two decades at least.” African Leadership University’s Fred Swaniker <a href="https://www.weforum.org/agenda/2016/05/africa-leaders-new-generation?utm_content=buffer5897f&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer">says</a>, “the Africa Rising narrative presents the most compelling argument for the continent’s prosperity.” </p>
<p>Their statements come at a time when commodity prices have crashed to <a href="http://www.graphic.com.gh/business/business-news/62378-low-commodity-prices-impeding-growth-sub-saharan-africa-report.html">record lows</a>. This has left societies like Nigeria in profound <a href="http://www.nytimes.com/2016/05/10/world/africa/frustration-by-the-hour-as-nigeria-tries-to-cure-long-lines-for-gasoline.html?_r=0">crisis</a>. And in spite of petroleum falling below US$30 per barrel earlier this year and hovering at $40 today, Standard Chartered Bank economist Razia Khan <a href="http://www.observer.ug/business/38-business/42285-uganda-s-oil-still-viable-says-stanchart-s-razia-khan">argues</a> that Uganda should keep pumping scarce investment funds into oil exploration. Production in the country will cost an estimated $70 per barrel. </p>
<p>The 2016 World Economic Forum (WEF) on Africa, hosted in Kigali, claimed the “<a href="https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/">fourth industrial revolution</a>” – the use of “cyberphysical systems” like artificial intelligence, robotics, nanotechnology and biotech – as Africa’s future. This is because the continent is “the world’s fastest-growing digital consumer market”. Yet <a href="http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/0,,contentMDK:21935594%7EpagePK:146736%7EpiPK:146830%7EtheSitePK:258644,00.html">fewer than a third</a> of sub-Saharan Africans have electricity in their homes. The summit merely reinforced extractive-industry and high-tech myths.</p>
<p>But there is widespread social resistance under way in Africa. Grassroots protesters are questioning the logic of export-led “growth” and renewed fiscal austerity. They are demanding that policies meet their basic needs instead.</p>
<p>Since 2011 the continent has witnessed a dramatic spike in social protests, as <a href="http://www.afdb.org/en/knowledge/publications/african-economic-outlook/">recorded</a> by the African Development Bank. The wave has not receded. The bank said in its 2015 “African Economic Outlook” that there were five times more protests annually between 2011 and 2014 than in 2000. And after the dramatic “Arab Spring” – the 2011 North African democratic uprising that was especially acute in Tunisia, Egypt, Libya and Morocco – protesters picked up the pace in Algeria, Angola, Chad, Gabon, Kenya, South Africa, Uganda and many other countries. </p>
<h2>The power of protests</h2>
<p>Press reports <a href="http://www.afdb.org/en/knowledge/publications/african-economic-outlook/">collated</a> by the bank confirm that almost all protests since 2011 have been about inadequate wages and working conditions, the low quality of public service delivery, social divides, state repression and a lack of political reform. A few examples illustrate the impressive results of recent protests. </p>
<ul>
<li><p>In Mozambique, water and food price hikes in September 2010 <a href="http://www.ids.ac.uk/publication/hunger-revolts-and-citizen-strikes-popular-protests-in-mozambique-2008-2012">catalysed consumers</a>. Text messages proposed a mass “strike”. This paralysed Maputo for a weekend. The protesters were met by lethal police violence. But they won: a price freeze was imposed and new state service subsidies were introduced.</p></li>
<li><p>In Senegal, <a href="http://www.clashmusic.com/features/enough-is-enough-the-rap-revolution-of-senegal">sustained demonstrations</a> in 2011-12 prevented authoritarian neoliberal president Abdoulaye Wade from serving a third term.</p></li>
<li><p>In Nigeria, the International Monetary Fund imposed the doubling of local petrol prices in January 2012. This caused an uprising that, in the subsequent fortnight, nearly overthrew the government before the increase <a href="http://www.theguardian.com/world/2012/jan/16/nigeria-restores-fuel-subsidy-protests">was reversed</a>.</p></li>
<li><p>In 2014 the most spectacular protest was in Burkina Faso. In <a href="https://www.greenleft.org.au/node/57634">the spirit of</a> 1980s revolutionary Thomas Sankara, mass demonstrations overthrew president Blaise Compaoré. The protests had begun in 2011 with vigorous Burkinabé food riots. These were put down by lethal police force that left more than a dozen people dead. Compaoré’s attempt at a comeback in 2015 was similarly foiled.</p></li>
<li><p>In October 2015 South African students and low-paid university workers <a href="https://theconversation.com/only-pressure-on-south-africas-elites-can-ease-university-fee-stress-49376">won the battle</a> for a 0% fee increase for 2016 and “insourcing” of casual employment.</p></li>
</ul>
<p>Some social turmoil is localised, taking place in the vicinity of mines and oil wealth. This is correlated in <a href="http://cepr.org/active/publications/discussion_papers/dp.php?dpno=10089">recent mappings</a> by the London-based Centre for Economic Policy Research, based <a href="http://www.acleddata.com/">on data</a> gathered by University of Sussex researchers, and on more than 200 studies in the Environmental Justice Liabilities and Trade research project’s “<a href="http://ejatlas.org/">EJ Atlas</a>”.</p>
<p>Labour also regularly protests in Africa. The WEF’s “Global Competitiveness Report” authors <a href="http://reports.weforum.org/global-competitiveness-report-2015-2016/">ask businesses</a> in 140 countries each year how they rate labour-employer relations in terms of cooperation versus confrontation. Of the third most militant countries in the world, African countries typically account for 40%, far higher than any other region. </p>
<p>Since 2012 – the year in which 34 miners were killed in the “<a href="http://www.sahistory.org.za/article/marikana-massacre-16-august-2012">Marikana Massacre</a>” – the South African working class has been ranked angriest. The 2015 WEF rankings for the other most “confrontational” workers include those from Algeria, Tunisia, Mozambique, Guinea, Chad, Liberia, Mauritania, Lesotho, Morocco, Cape Verde, Zimbabwe, Tanzania, Sierra Leone, Seychelles, Ethiopia, Kenya, Cameroon and Gabon. </p>
<h2>Financial outflows</h2>
<p>The pressures on many African societies relate to the continent’s fiscal stresses, since declining commodity prices lower state revenues. These stresses also reflect the massive outflow of funds by multinational corporations via tax dodges and other illicit routes. The African Union Panel on Illicit Financial Flows last month raised the estimate to <a href="http://mgafrica.com/article/2016-04-26-80-billion-not-50-billion-loss-of-african-funds-even-worse-than-thought-mbeki">$80 billion</a> lost each year. </p>
<p>There is also the matter of licit financial outflows: the profits and dividends taken offshore legally by multinationals thanks to deregulated exchange controls, which must be paid in hard currency. In South Africa, these have driven the past 15 years of current account deficits – the trade deficit plus the outflow of profits – which in turn led to a huge increase in the country’s foreign debt: from $32 billion in 2000 to $140 billion today.</p>
<p>What to do next? The IMF’s April 2016 “Regional Economic Outlook for Africa” suggests that </p>
<blockquote>
<p>a substantial policy reset is critical in many cases … Because the reduction in revenue from the extractive sector is expected to persist, many affected countries also critically need to contain fiscal deficits and build a sustainable tax base from the rest of the economy.</p>
</blockquote>
<p>Precisely this neoliberalism – a policy “reset” that in reality is more of the same – is one reason for what US academics Adam Branch and Zachariah Mampilly term “<a href="http://africanarguments.org/2015/03/23/africa-uprising-popular-protest-and-political-change-interview-with-the-authors/">Africa Uprising</a>”. </p>
<p>Even if it is ignored in Kigali, or repressed on the ground, the popular risings against the WEF’s dubious “Africa Rising” rhetoric await the solidarity of those with a more patriotic perspective on the continent’s prospects.</p><img src="https://counter.theconversation.com/content/59342/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Patrick Bond does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Grassroots protesters are questioning the logic of export-led ‘growth’ and renewed fiscal austerity pushed through the ‘Africa rising’ narrative. They want policies that meet their basic needs.Patrick Bond, Professor of Political Economy, University of the WitwatersrandLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/533902016-01-26T04:05:30Z2016-01-26T04:05:30ZHow Africa offers opportunities beyond land, labour and commodities<figure><img src="https://images.theconversation.com/files/108977/original/image-20160122-430-5n2c8h.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Champagne being served in a bar on McCarthy Street in Lagos. </span> <span class="attribution"><span class="source">Reuters/Akintunde Akinleye</span></span></figcaption></figure><p>If the mass media is to be believed, Africa is hardly a continent brimming with opportunities for business. But for some time international business commentators have been positioning the continent as the next market with significant potential. It is now often described as being ready to take on the mantle of Asia where growth is slowing, markets are becoming crowded and internal competition is becoming more severe.</p>
<p>China has anticipated this potential by making extensive investments in Africa. Between 2003 and 2011, <a href="http://www.cnbc.com/2014/12/30/recolonizing-africa-a-modern-chinese-story.html">its total investments</a> have increased thirty fold, from US$491 million to $15 billion.</p>
<p>Africa’s traditional trading partners from Europe, the UK and France have been left behind. China is the top bi-lateral <a href="http://www.herald.co.zw/is-chinas-role-in-africa-good-for-her/">trading partner</a> with trade volume exceeding $166 billion.</p>
<p>This confirms that <a href="http://www.economist.com/news/middle-east-and-africa/21598646-hopes-africas-dramatic-population-bulge-may-create-prosperity-seem-have">Africa’s new demographics</a> have plenty to offer: </p>
<ul>
<li><p>the continent accounts for about 40% of global reserves of natural resources;</p></li>
<li><p>60% of uncultivated agricultural land; </p></li>
<li><p>a billion people with rising purchasing power; and </p></li>
<li><p>a huge labour force. </p></li>
</ul>
<p>In addition, Africa is home to several of the world’s <a href="http://www.forbes.com/sites/trangho/2015/08/09/why-you-should-invest-in-africas-fastest-growing-country/#2715e4857a0b486d99574d5a">fastest-growing economies</a> and the <a href="http://www.vocativ.com/news/195748/africa-is-the-youngest-continent-in-the-world/">youngest</a> population. And taken collectively, these economies have a bigger <a href="http://www.uhy.com/the-worlds-fastest-growing-middle-class/">middle class</a> than India. Many of its most rapidly expanding nations do not rely on natural resources, with nearly two-thirds of growth last year coming from <a href="http://www.undp.org/content/dam/rba/docs/Working%20Papers/Food%20Production%20and%20Consumption.pdf">strong consumer spending</a>. And almost half its citizens now live in <a href="http://www.brookings.edu/blogs/future-development/posts/2015/06/18-urbanization-africa-leipziger">cities</a>.</p>
<p>Countries are losing out on the new “Scramble for Africa”. This time the scramble is for trade.</p>
<h2>Opportunities in Africa</h2>
<p>The continent offers opportunities beyond natural resources, land and labour power. We do not have to dig too deep to see that there are a lot of “fast expanding markets” and pockets of excellence within the continent.</p>
<p>One such opportunity comes from the retail sector. According to a <a href="https://www.atkearney.com/documents/10192/6437503/Retail+in+Africa.pdf/b038891c-0e81-4379-89bb-b69fb9077425">recent report</a>, several countries represent a vast market space for retail.</p>
<p>In Gabon, for example, the report suggests that with a GDP per capita of $21,600, the country’s newly formed middle class offers significant opportunities to foreign companies, particularly as the domestic retail sector is highly fragmented. Smaller nations such as Botswana and Angola are also offering more and more opportunities.</p>
<p>This story also pans out on a larger scale. Nigeria, with its <a href="https://www.atkearney.com/documents/10192/6437503/Retail+in+Africa.pdf/b038891c-0e81-4379-89bb-b69fb9077425">population of 178 million</a>, has a somewhat underdeveloped retail sector. According to the report, modern supermarkets made up only 1% of all shopping expenditure as the market remains dominated by informal shops and convenience stores.</p>
<p>Another source of opportunity for foreign businesses comes from the way that cultures and habits are changing. The exceptional economic growth of <a href="http://www.theguardian.com/global-development/datablog/2014/apr/07/nigeria-becomes-africa-largest-economy-get-data">Nigeria</a>, for example, has allowed for greater consumption, especially for status symbols and products that symbolise “tickets to middle class membership”. </p>
<p>From our own <a href="http://onlinelibrary.wiley.com/doi/10.1002/tie.21738/abstract">research</a>, one of the products that has substantial growth, perhaps somewhat unexpectedly, is champagne imported directly from France. Expenditure grew at an average of 26% between 2007 and 2012. A recent slowdown still leaves significant growth, forecast at 12% a year to 2017. </p>
<p>An important point here is that luxury food and drinks products are emblematic of an important cultural shift towards a more sophisticated kind of consumption.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/108859/original/image-20160121-9732-18a5b0f.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/108859/original/image-20160121-9732-18a5b0f.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=449&fit=crop&dpr=1 600w, https://images.theconversation.com/files/108859/original/image-20160121-9732-18a5b0f.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=449&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/108859/original/image-20160121-9732-18a5b0f.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=449&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/108859/original/image-20160121-9732-18a5b0f.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=565&fit=crop&dpr=1 754w, https://images.theconversation.com/files/108859/original/image-20160121-9732-18a5b0f.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=565&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/108859/original/image-20160121-9732-18a5b0f.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=565&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<h2>Understanding local markets is key</h2>
<p>In a recent speech, the CEO of a leading communications agency pointed out that Nigerians, especially the wealthy, do not only shop for themselves. They also shop for others in their families as a way to display their reflected status. As the country becomes more affluent, we can expect more and more expensive high-end products coming into the market to please an expanding and increasingly demanding middle class.</p>
<p>For many years, Apple viewed Nigeria as too poor to be an attractive market. This opened the way for Samsung to become the mobile telephony leader in Nigeria. </p>
<p>How did the South Korean company do it? It realised that even though the country is relatively poor — with <a href="http://data.worldbank.org/country/nigeria">GDP per capita</a> of only $3,000 - members within a family can easily collect funds from others. In this way, even cash-strapped teenagers can quickly accumulate enough from richer relatives to buy expensive mobile phones. The result: some 70% of high-end <a href="http://www.pewinternet.org/fact-sheets/mobile-technology-fact-sheet/">mobile devices</a> are sold to people in lower income households.</p>
<p>The Lucozade story is also instructive. It became the leader of the Nigerian drinks market by understanding when and where it would be needed and appreciated by people. Having its chilled energy drinks sold at the roadside increased its popularity among professionals who were often spending long hours in traffic jams. The drink became associated with providing refreshing moments.</p>
<p>These observations may be anecdotal, but they demonstrate an important point: it would be unwise to ignore African markets based on economic statistics alone. The key is to try to understand particular markets, often working with local specialists. </p>
<h2>Innovation</h2>
<p>A third source of opportunity is that African countries can also be sources of innovation. One of the most well-known and successful innovations is <a href="https://www.mpesa.in/portal/">M-PESA</a>.</p>
<p>Started in 2007 by Kenya’s largest mobile-network operator, M-PESA enables people to transfer money between each other using their mobile phones. They can also use their mobiles to withdraw cash at corner shops. </p>
<p>The scheme has become extremely popular due to the high costs of sending money and also because it offers a safe way to store money. Interestingly, the benefits go beyond mere convenience. A <a href="https://www.cgap.org/sites/default/files/CGAP-Brief-Poor-People-Using-Mobile-Financial-Services-Observations-on-Customer-Usage-and-Impact-from-M-PESA-Aug-2009.pdf">study found</a> that rural Kenyan household income has risen by 5%-30% as a result of adopting M-PESA. </p>
<p>It is also claimed a range of start-ups have been founded in Nairobi on the back of M-PESA’s operations.</p>
<p>As cultural and dynamic aspects of consumers are so different in Africa, it is very likely that we will see more innovations emerging from this part of the world.</p>
<p>So, while it has been easy to dismiss Africa in the past as a place that is, at best, a provider of basic commodities, land and labour, a closer look reveals that it is not hard to see that opportunities are aplenty and just waiting to be tapped into.</p><img src="https://counter.theconversation.com/content/53390/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It’s easy to dismiss Africa as a place that is, at best, a provider of commodities, land and labour. A closer look shows that the continent is innovative and offers a lot more opportunities.Mark Esposito, Professor of Business & Economics at Grenoble Ecole de Management and Harvard Extension School, Harvard UniversityTerence Tse, Associate Professor of Finance / Head of Competitiveness Studies at i7 Institute for Innovation and Competitiveness, ESCP Business SchoolLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/421552015-05-25T12:39:38Z2015-05-25T12:39:38ZDistance running is a perfect lab to investigate whether men are more competitive than women<figure><img src="https://images.theconversation.com/files/82464/original/image-20150520-11431-mljagu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Different is OK.</span> <span class="attribution"><a class="source" href="http://www.shutterstock.com/pic-246061837/stock-photo-side-view-of-a-exhausted-and-tired-fitness-couple-silhouettes-at-sunset.html?src=OhVMAd6MhcSqGBpij1-gMw-3-3">Runners via www.shutterstock.com.</a></span></figcaption></figure><p>What are the psychological differences between women and men? What causes these differences, and are they shrinking over time? </p>
<p>The dominant view – held by most scholars and policymakers – is that sex differences are slight and can be rather easily altered. Whether this view is true or not has implications for policy, such as Title IX, the federal law that aims to provide men and women with equal access to educational opportunities, including athletic opportunities.</p>
<p>For the past decade, I have been investigating psychological sex differences by studying competitiveness in U.S. distance runners. Distance running is ideal for study because the motivation to run varies greatly. While some runners are motivated by competition, most participate for other reasons, such as building social relationships, finding meaning in reaching their goals, and boosting their health and fitness. Distance running is also a great study subject because it is popular with both men and women, and the incentives do not favor men. There are, for instance, more collegiate athletic scholarships for distance running available for women than men.</p>
<p>Back in the 1980s, women <a href="http://www.epjournal.net/articles/more-men-run-relatively-fast-in-u-s-road-races-1981-2006-a-stable-sex-difference-in-non-elite-runners/">comprised</a> roughly 25 percent of finishers at U.S. road races and about 40 percent of high school and collegiate runners. Today there are more women than men in road races and on collegiate cross country teams, and women have nearly reached men’s participation levels in high school cross country. This convergence in participation mirrors trends in other areas, such as education and employment. It suggests that men and women no longer differ in their motivation.</p>
<p>My studies, however, show that this picture is only superficially correct. If we scratch below the surface, there is clear evidence of a large sex difference in competitiveness in U.S. runners. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/82463/original/image-20150520-11440-z79lf8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/82463/original/image-20150520-11440-z79lf8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=399&fit=crop&dpr=1 600w, https://images.theconversation.com/files/82463/original/image-20150520-11440-z79lf8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=399&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/82463/original/image-20150520-11440-z79lf8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=399&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/82463/original/image-20150520-11440-z79lf8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=501&fit=crop&dpr=1 754w, https://images.theconversation.com/files/82463/original/image-20150520-11440-z79lf8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=501&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/82463/original/image-20150520-11440-z79lf8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=501&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">What’s your motivation?</span>
<span class="attribution"><a class="source" href="http://www.shutterstock.com/pic-240041743/stock-photo-runner-athlete-running-at-road-woman-fitness-sunrise-jogging-workout-wellness-concept.html?src=jb3HkGMf5PwrsQVOo9GMLg-2-6">Jogger via www.shutterstock.com.</a></span>
</figcaption>
</figure>
<h2>What do new studies tell us about the sex difference in distance running?</h2>
<p>In a <a href="https://peerj.com/articles/884/">2015 study</a>, we recruited over 1,100 varsity intercollegiate distance runners to complete surveys addressing their training, motivation and performance. </p>
<p>Compared to men, women reported being less competitive, training less and wanting to train less. The women reported greater commitment to their studies. Perhaps the most interesting finding was that these sex differences were just as large among the fastest as among the slowest runners. That is, even the very best female athletes, the ones with full scholarships and realistic professional prospects, were still quite different than their male counterparts.</p>
<p>In another <a href="http://www.ncbi.nlm.nih.gov/pubmed/24983344">recent study</a>, we assessed the pacing of 92,000 runners at 14 different marathons. Although men and women both tended to slow their pace in the second half of marathons, this effect was stronger for men. </p>
<p>The sex difference was especially pronounced when looking at runners who slowed by 30 percent or more – men were three times as likely as women to do this. These results indicate that more male marathoners undertake a competitive, risky pace. They begin at a pace that could lead to a superb performance, given their own talent and training, but one that also increases their chances of crashing or “hitting the wall.”</p>
<p>Another <a href="http://www.epjournal.net/articles/u-s-masters-track-participation-reveals-a-stable-sex-difference-in-competitiveness/">study</a> of ours focused on participation at track races and road races by masters runners, who are at least 40 years old. </p>
<p>At road races, women comprised 52 percent of participants, but at track meets they comprised about 25 percent of participants. This pattern is remarkable because road races and track meets draw different kinds of runners. At road races, most runners have a recreational orientation, not a competitive one. This is revealed in how road racers answer questionnaires and in their generally slow performances. </p>
<p>Track meets are different because, although they are not as popular, the runners who do show up almost always run fast relative to sex-specific, age-specific world records. </p>
<p>The sex difference in participation at track meets indicates that the relatively small number of older competitive runners are still much more likely to be men than women. In this study, we also checked if the sex difference in track meet participation had decreased over the past 25 years, as it had for road race participation. We found that women narrowed the gap slightly in the late 1980s and early 1990s, but the sex difference has been stable since then.</p>
<p>We have also found substantial sex differences in performance depth. For example, in a typical 5-kilometer road race, for every woman that finishes within 125 percent of the female world record, there are roughly three men who finish within 125 percent of the male world record. </p>
<p>We have <a href="http://www.epjournal.net/articles/more-men-run-relatively-fast-in-u-s-road-races-1981-2006-a-stable-sex-difference-in-non-elite-runners/">documented</a> this pattern in hundreds of road races and also in <a href="http://www.ncbi.nlm.nih.gov/pubmed/22700008">large samples</a> of high school, collegiate and professional runners. The best supported explanation for this sex difference is that more men are motivated to do the training necessary for fast performances. We have examined whether this sex difference is shrinking and, again, we found that it isn’t.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/82460/original/image-20150520-11431-12g7rlx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/82460/original/image-20150520-11431-12g7rlx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/82460/original/image-20150520-11431-12g7rlx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/82460/original/image-20150520-11431-12g7rlx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/82460/original/image-20150520-11431-12g7rlx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/82460/original/image-20150520-11431-12g7rlx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/82460/original/image-20150520-11431-12g7rlx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Watch your pace.</span>
<span class="attribution"><a class="source" href="http://www.shutterstock.com/pic-141950953/stock-photo-group-of-runners-on-suburban-street.html?src=OhVMAd6MhcSqGBpij1-gMw-1-8">Group of runners via www.shutterstock.com.</a></span>
</figcaption>
</figure>
<h2>How robust is the difference?</h2>
<p>These studies collectively indicate that male and female runners still differ psychologically, with men generally being substantially more competitive. However, this conclusion has been challenged by some who point out that alternative explanations for each of the studies’ findings are conceivable.</p>
<p>For instance, perhaps there are unknown physiological limitations that prevent as many female as male runners from running relatively fast despite a similar number engaging in high-level training. Although such hypotheses deserve study, none can provide a plausible explanation for phenomena as diverse as men and women differently deciding to participate in track meets, pacing differently in marathons and responding differently on surveys.</p>
<p>A vital question is whether the sex difference in competitiveness in distance running applies to other contexts and populations. This is a challenging question, and much research remains to be done. </p>
<p>However, we <a href="http://psycnet.apa.org/psycinfo/2015-18642-001/">recently reviewed</a> the mounting research on sex differences in motivation and interest in sports besides distance running. This research fully supports our distance running results. That is, in the U.S. and all other known societies, males are, on average, more interested in participating in competitive sports, whereas there is no sex difference in the desire to exercise.</p>
<p>Structural barriers cannot plausibly explain the difference in sports interest because <a href="http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0049168">we showed</a> that the sex difference in sports participation is considerably larger, not smaller, in informal settings where there are no barriers. </p>
<p>We were even able to test whether the sex difference in wanting to play competitive sports is decreasing in the U.S. We did this by analyzing intramural sports participation, which is an excellent measure of motivation to play because there are no substantial external incentives, such as scholarships, or constraints on participation, such as roster limits. We <a href="http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0049168">found</a>
that, for both coed and single-sex intramural competition, men participated about three times as frequently as women, and this difference had been stable since at least the early 2000s.</p>
<h2>What causes the sex difference?</h2>
<p>A key question is whether the sex difference in competitiveness can be erased. This is, of course, a challenging question, but the existing research indicates that decades of expanding athletic opportunities for girls and women, although beneficial in many respects, have not decreased the sex difference in competitiveness. </p>
<p>It may be that patterns of socialization for girls and boys are crucial yet beyond the reach of public policies. Another possibility is that the sex difference in competitiveness reflects, at least in part, innate predispositions that evolved in response to the different challenges men and women faced during our evolutionary history. </p>
<p>There is also <a href="http://psycnet.apa.org/psycinfo/2015-18642-001/">evidence</a>
that prenatal exposure to androgens (hormones that influence the development of male characteristics) is reliably associated with sports interest.</p>
<h2>Differences between sexes aren’t about who’s better or who’s worse</h2>
<p>Journalists and scientists who discuss sex differences often use value-laden language, saying thing like, “When it comes to such-and-such, women are better than men” or vice versa. Such statements are regrettable, and our distance running research illustrates why. In the study of collegiate distance runners, the men were more competitive in their running, but the women were more committed to their studies. There is no compelling reason to believe that one preference is “better” than the other. </p>
<p>Likewise, in the study of marathon pacing, men’s greater use of risky strategies probably increases their odds of achieving an exceptional performance, but women’s more even pacing would lead to less discomfort and, in most cases, a better chance of achieving a satisfying performance. Again, it is misleading to baldly state, as several journalists have done, that, based on our results, women are better than men at pacing. </p>
<p>Among distance runners, men are, on average, more competitive than women, and there is no indication this difference is disappearing. This difference doesn’t make men superior to women, and it doesn’t make women superior to men. Different is different, and we should value and accept this diversity.</p><img src="https://counter.theconversation.com/content/42155/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robert Deaner does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Research on distance runners reveals evidence of a large sex difference in competitiveness.Robert Deaner, Associate Professor of Psychology, Grand Valley State University Licensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/402802015-04-20T05:05:19Z2015-04-20T05:05:19ZAttractive fundraisers and alpha male donors spur bidding wars on online charity sites<figure><img src="https://images.theconversation.com/files/78274/original/image-20150416-30328-1cis9gp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">It turns out, men lock horns on online charity sites as well. </span> <span class="attribution"><span class="source">Mountain goats via www.shutterstock.com</span></span></figcaption></figure><p>In marathons this week in <a href="http://www.baa.org/races/boston-marathon.aspx">Boston</a> and <a href="https://www.virginmoneylondonmarathon.com/en-gb/">London</a>, elite runners will engage in a fierce competition to win the men’s and women’s titles as they zip across each city. </p>
<p>But another, more primitive competition of sorts will already have taken place on charity runners’ fundraising pages: a battle among men to prove they have the most generous hearts in order to win the amorous attention of a beautiful woman asking for money. </p>
<p>In a biological sense, men on these sites are doing what happens in the animal kingdom all the time. They are competing with other males to show off to an attractive female. </p>
<h2>Online fundraising: a social experiment</h2>
<p>Each year, runners and others <a href="http://theruniverse.com/2014/07/charity-running-stats/">raise</a> hundreds of millions of dollars and pounds in sponsorship donations, mostly through online fundraising pages that make it easier for them to solicit money. These pages also serve as a public platform for giving, listing all the donations that people have made, with lots of details such as names, amounts and personal messages. </p>
<p>Donors can see what other people have done and know that their giving is also visible to others. And since the fundraisers typically solicit donations from their friends, family and colleagues, these other donors are likely to be people that they know and interact with socially. </p>
<p>Some donors will want to fit in and follow the herd, while others will want to stand out from the crowd. Either way, other people’s donations set a benchmark and it will surprise few to learn that donors look to amounts given by other people in deciding how much they should give. </p>
<p>In <a href="http://onlinelibrary.wiley.com/doi/10.1111/ecoj.12114/abstract">previous work</a>, we have shown that a large donation of £100 (US$150) or more, particularly when made early on, can have a sizable positive effect on how much later donors give, increasing subsequent donations by an average of £10. Small donations, on the other hand, have the opposite effect. If everyone has been donating about £30, then the first smaller donation of £10 reduces the average of subsequent amounts closer to £20.</p>
<p>One of our more surprising findings, however, was that large donations tended to elicit a a stronger competitive response from males when the person raising the money was an attractive woman. In biological terms, male donors appear to engage in “competitive helping.”</p>
<h2>Competitive giving</h2>
<p>In a <a href="http://www.cell.com/current-biology/abstract/S0960-9822(15)00211-0">paper</a> published last week in Current Biology and funded by the Royal Society, we reported the findings of a new study of competitive helping behavior based on fundraising pages from the 2014 London Marathon. Since we focused on UK sites, all figures are in pounds.</p>
<p>We looked at how subsequent donors reacted to large donations and compared how the responses varied by donor gender and fundraiser gender and attractiveness. The fundraiser’s attractiveness was scored on the basis of external assessments of the fundraisers’ profile photos, and “attractive” was defined as the top 25% of scores.</p>
<p>We hoped to learn whether male donors increase their giving more in response to a large donation when there is an attractive female fundraiser. We also considered what happens when the person making the large donation is a man – let’s call him the alpha donor – to determine whether other male donors would increase their giving as a result. </p>
<p>The results were striking. We confirmed that large donations typically elicit a positive response among subsequent donors in terms of how much they give. But the increase in giving triggered by a large donation is <em>four times greater</em> among male donors when they are responding to a large donation given by another man and when there is an attractive female fundraiser (£38 more on average, compared with only a £10 increase for all donors). </p>
<p>This subconscious response by men could have an evolutionary function as theories predict that generous actions can honestly signal hidden qualities such as wealth or desirable personality attributes such as generosity to potential partners.</p>
<p>The result is even more striking when you think of some of the imperfections in the data that would tend to make it less likely that we would observe such an effect. </p>
<p>For example, we would expect this type of competition among males for attractive but unrelated females, but not necessarily from males who are related to the fundraiser (for example fathers and brothers). Since we didn’t know whether donors were related to the fundraiser, we couldn’t focus on this case and had to average over all donors. </p>
<p>The study involved a review of 2,561 fundraising pages from the 2014 London marathon, focusing on 668 that met the required criteria. Each needed to include an image of the fundraiser whose gender was identified and attractiveness verified independently. The pages also had to feature large donations from people who could be assigned a gender. A large donation was defined as double the mean donation on the page and at least £50. It was typically around £100.</p>
<h2>Males compete, women don’t</h2>
<p>It is hard to think of another explanation for this other than a biological mechanism: male donors compete, albeit possibly subconsciously, with other male donors for the attention of attractive females. By contrast, there is no such response among female donors. Of course, there may be other triggers that females respond to that were outside the scope of our study, but it seems as though it is only males who feel the urge to compete in generosity. </p>
<p>This makes sense in light of previous studies that have looked at what men and women prioritize in sexual partners: men tend to focus on <a href="http://www.primermagazine.com/2009/learn/the-science-of-sexy-how-evolution-drives-our-lust">signals of fertility</a>, such as youth and waist-to-hip ratio, while women place higher <a href="https://books.google.com/books?id=I20uPfEjsNQC&pg=PA178&lpg=PA178&dq=women+prefer+status+wealth+generosity+in+partners&source=bl&ots=C7PGR3C0mI&sig=ERTLcWVKR2VLqNDpt5GlMWKTnuU&hl=en&sa=X&ei=AqIxVeTFNsaxsASvt4GYDA&ved=0CCYQ6AEwAg#v=onepage&q=women%20prefer%20status%20wealth%20generosity%20in%20partners&f=false">emphasis</a> on signals of status like wealth and generosity.</p>
<p>What are some the implications of this?</p>
<p>Good causes and the desire to do good are important for raising money, but it’s clearly more than just that and understanding some of the other triggers can help to increase donations. </p>
<p>Not everyone can be among the most attractive fundraisers, but it may still be worth choosing a good profile picture. And interestingly, other things seem to work well too. For example, a picture in which the fundraiser is smiling boosts donations by more than 10%. </p>
<p>More broadly, one takeaway is that alpha male competition can be about more than just who is the most macho, suggesting the potential to harness the desire to compete for the goal of doing good.</p><img src="https://counter.theconversation.com/content/40280/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Sarah Smith receives funding from ESRC, Leverhulme. This article does not reflect the views of the research councils.</span></em></p><p class="fine-print"><em><span>Nichola Raihani consults to an online fundraising company. She receives funding from The Royal Society.</span></em></p>A competition already took place ahead of this week’s road races in Boston and London: men outbidding each other to show an attractive woman how generous they are.Sarah Smith, Professor of Economics, University of BristolNichola Raihani, Senior Research Associate in Life Sciences, UCLLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/381042015-03-03T19:18:44Z2015-03-03T19:18:44ZThe national security issue that will hit Australia’s economy<p><em>US President Barack Obama is seeking US$14 billion to tackle it. The UK wants to build a start-up industry around it. And Australia is in the middle of what could be a year-long review into getting better at it. The issue is cybersecurity, and at risk is the entire digital economy and consumer confidence in it. In this Cyber insecurity series we investigate the size and nature of the cybercrime threat, the industry growing with it, and the solutions emerging to get in front of it.</em></p>
<hr>
<p>National security is shaping up as a key pillar of the Abbott government’s policy focus, and last year’s launch of yet another <a href="https://www.pm.gov.au/media/2014-11-27/cyber-security-review-0">cybersecurity review</a> is one plank of that. </p>
<p>According to a news report, the review has been <a href="http://www.smh.com.au/it-pro/security-it/tony-abbotts-cyber-security-review-delayed-20150216-13g0gn.html">delayed</a>. At the same time the government is in danger of ignoring the direct link between measures to defend against cybersecurity threats, and its broader policy obligation to foster our digital economy.</p>
<p>Australia’s Chief Scientist, Professor Ian Chubb, <a href="http://www.chiefscientist.gov.au/2014/09/professor-chubb-releases-science-technology-engineering-and-mathematics-australias-future/">last year observed</a> Australia is the only country in the OECD without a national plan for science, technology or innovation.</p>
<p>The country’s digital competitiveness has been sliding downwards. According to the annual edition of the Network Readiness Index published by the World Economic Forum (WEF), Australia slipped from a ranking of 9th in <a href="http://www-wds.worldbank.org/servlet/WDSContentServer/IW3P/IB/2005/11/17/000090341_20051117162002/Rendered/PDF/343090GITR2003.pdf">2004</a> to 18th in <a href="http://www.weforum.org/reports/global-information-technology-report-2013">2013</a> and <a href="http://www.weforum.org/reports/global-information-technology-report-2014">2014</a>. </p>
<p>Between 1999 and 2011, our annual corpus of new domestic student graduates in information technology (IT) <a href="http://docs.education.gov.au/system/files/doc/other/completion_rates_of_domestic_bachelor_students_-_a_cohort_analysis_1.pdf">fell by 46%</a>, though there was a small upturn in 2012 and 2013. We’ve has been able to <a href="http://www.acs.org.au/__data/assets/pdf_file/0019/9307/Australian-ICT-Statistical-Compendium-2011.pdf">compensate</a> for the sharp decline in IT graduates in part by temporary ICT migrants to Australia, which in 2009-10 numbered 8,530 – double the number of our own IT graduates for that year.</p>
<p>The real situation of Australia’s digital economy and society is much more complex than these statistical snapshots suggest, but they are useful reference points. </p>
<h2>Lack of coherent policy</h2>
<p>Since the concept of the knowledge economy was devised in 1962 in the United States, none of Australia’s political parties have distinguished themselves by their grasp of the information revolution and what it means for our security. The last inspirational <a href="http://www.keating.org.au/shop/item/cyberpolities-the-information-revolution---5-august-1997">speech</a> on this subject was made 18 years ago, by Paul Keating, one year after he left the Prime Minister’s job.</p>
<p>A cybersecurity strategy without a plan for globally competitive innovation in the digital economy is like building an ever-stronger wall while the building it protects gradually falls into disrepair. More importantly, the wall cannot even be secure if the home-grown talents do not match the rapidly evolving globally available digital technologies for attack.</p>
<p>Keating’s 1997 speech gave a lead on what the country should do. He said we needed both a “thriving IT industry and an information-educated workforce” and for these to then impact “on all our industries from farming to manufacturing to health care”. He said it would need “ideas and a strategic framework within which local and overseas businesses can operate” that would “accommodate and provide for a growing IT presence in our whole economy and society”.</p>
<p>The four prime ministers since Keating, to the extent that they even followed the issue of the digital world, have seen it more often as a threat than an opportunity. </p>
<p>In 2011, the Gillard government released plans for a new white paper focusing largely on cybersecurity (following a 2009 <a href="http://www.ag.gov.au/RightsAndProtections/CyberSecurity/Documents/AG%20Cyber%20Security%20Strategy%20-%20for%20website.pdf">white paper</a> on that subject). One year later, the government said it would expand the scope of that still unpublished white paper from a narrow focus on security to broader questions. Julia Gillard made this commitment in her closing <a href="http://pmtranscripts.dpmc.gov.au/browse.php?did=18826">speech</a> to the Prime Minister’s Forum on the Digital Economy in October 2012.</p>
<p>The resulting paper, <a href="http://apo.org.au/research/advancing-australia-digital-economy-update-national-digital-economy-strategy">“Advancing Australia as a Digital Economy”</a>, did not fulfil its promise. Once published, it was billed as an update to the National Digital Economy Strategy of 2011. But neither paper goes much farther than the issues of e-government, online access, the broadband network, or small grants to ICT enterprises. Neither paper had any concept of IT education beyond providing online access. The most challenging issue for an information economy, the creation of significant linkages between industry and R&D innovation in universities, has not been addressed effectively by any Australian government in living memory.</p>
<p>Communications Minister Malcolm Turnbull has several times espoused a vision of Australia’s digital future since his department is nominally responsible for our digital economy. But that portfolio cannot deliver even on the Keating vision. That would need an all-of-government approach led by the prime minister. The absence of such an approach is marked by the fact that the coalition’s <a href="http://www.malcolmturnbull.com.au/assets/Coalitions_Policy_for_E-Government_and_the_Digital_Economy_%282%29.pdf">policy</a> for the digital economy going into the 2013 election did not even address the main concerns raised by industry at the PM’s Forum a year earlier. These were a lack of software engineers and lack of translation of advanced information technologies into key sectors like agriculture, education and health.</p>
<p>There have been clear advances in Australia’s digital economic performance, captured well in a 2014 <a href="http://www.pwc.com.au/consulting/assets/publications/Expanding-Australias-Economy-Apr14.pdf">report</a> by PricewaterhouseCoopers. Yet nurturing of our IT skills base is hostage to an out-of-date political ethic of full employment, highly conservative notions of “work”, and a lack of political leadership on Australian economic security in the digital world.</p><img src="https://counter.theconversation.com/content/38104/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Greg Austin does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It’s critical the government recognises the link between cybersecurity protection and the strength of our digital economy.Greg Austin, Visiting Professor, Australian Centre for Cyber Security, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/323742014-10-16T00:27:16Z2014-10-16T00:27:16ZGovernment can be the risk buffer in Australia’s strive to innovate<figure><img src="https://images.theconversation.com/files/61758/original/zkfcpr9q-1413337988.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Building an innovation ecosystem can take years of government nurturing.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Our lives are surrounded by the ideas and creations of thousands of people. The magic of flight, or computers, or vaccines, inventions and innovations we take for granted, have advanced from one idea to another in a steady stream of interlinked technological evolution.</p>
<p>The story of nanotechnology begins, for example, with the invention of the printing press. Steven Johnson reminds us in <a href="http://online.wsj.com/articles/book-review-how-we-got-to-now-by-steven-johnson-1412032700">“How We Got to Now”</a> that printing created demand for spectacles. Demand for spectacle lenses then led to experimentation with microscopes.</p>
<p>Lenses would not have developed without the co-evolution of our understanding of chemistry and the discovery of the unique quantum mechanical properties of silicon dioxide.</p>
<p>Innovation theorists often emphasise co-evolution because while certain developments may appear in retrospect to be failures, or old technology, they are in fact building blocks to further innovation.</p>
<p>Innovation is the one element enabling Australian manufacturing companies to stay competitive in a globalised economy.</p>
<p>Bluescope Steel is transforming from a traditional steel manufacturer into a designer and producer of state of the art corrosion-resistant products, as well as next generation roofing panels that will produce solar power. A former traditional textiles manufacturer, Textor Technologies, is now supplying state of the art water-absorbent fabrics globally to the baby nappies industry.</p>
<p>So what will it take to have more of this kind of success, especially in the context of the looming automotive exit and the end of the resources boom? What can we learn from others’ success – and from our own?</p>
<h2>Building an innovation ecosystem</h2>
<p>The federal government’s <a href="http://www.dpmc.gov.au/publications/Industry_Innovation_and_Competitiveness_Agenda/docs/industry_innovation_competitiveness_agenda.pdf">Industry Innovation and Competitiveness Agenda</a> should help build stronger links between research and business outcomes. </p>
<p>Innovation is said to require what researchers have been calling an “innovation ecosystem” in order to survive. This applies both at a national and a company level – and is not simply a list of good policies or institutional structures, where the more we implement, the more innovation we obtain.</p>
<p>An innovation system has to be coherent to be effective. Many researchers have observed that with, say, four out of the five elements of an effective system, a nation does not achieve 80% of the benefit, but, often, none.</p>
<p><a href="http://www.utas.edu.au/australian-innovation-research-centre/people/people/professor-jonathan-west">Jonathan West</a>, the Harvard Professor and now repatriated Tasmanian, studied the systems of successful nations. He emphasises the importance of mobilising substantial investment resources and devoting these to inherently risky undertakings, in preference to other potential investments.</p>
<p>West uses the stellar example of the development of Taiwan’s semi-conductor industry from the 1970s - which involved significant government-funded venture capital, dedicated science and industrial parks, tax and R&D incentives and so on.</p>
<p>It was only after 15 years of Taiwanese government absorption of risk and government input of resources that the first private capital entered the industry.</p>
<p>The UK and US experiences – both quite different but both involving significant investments by government in de-risking new ventures – are instructive for Australia.</p>
<p>In the US, the Obama Administration has developed a national A<a href="http://www.manufacturing.gov/amp.html">dvanced Manufacturing Partnership</a> between what are the three legs of the innovation tripod: government, academia and the private sector. Research priorities are given life, in evolutionary terms, by the close cooperation of a strong advanced manufacturing sector, and by commitment of resources by government.</p>
<p>Commercialisation in collaborative centres in the UK also brings nascent technological advances into being: in the production of cell therapy products, in new processes for offshore renewable energy, in satellite technology, in the manufacture of new transport infrastructure and traffic management technology, in clean energy systems, and in medicines.</p>
<h2>Serendipity matters</h2>
<p>It is the co-evolution of ideas – the serendipity of research developing alongside its application – that matters here. New ideas often result from applications that were not intended by the original innovator.</p>
<p>This week’s announced <a href="https://theconversation.com/industry-growth-centres-to-link-business-and-science-32965">“Industry Growth Centres”</a> across five broad sectors will need to focus national resources on where we can win rather than a scattergun approach. We need to undertake a brutal assessment of all of our research capabilities - which institutes are producing what the world wants and needs - and we need the allocation of our ARC grants scrutinised by industry leaders.</p>
<p>We need to look at whether our investment settings encourage venture capital, and if our tax base is globally competitive.</p>
<p>It is in the nation’s interest to build an innovation ecosystem that is rigorously and continually reviewed for effectiveness – so that our globally-relevant research capabilities can come to life.</p><img src="https://counter.theconversation.com/content/32374/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>John Pollaers is currently Chair of the Australian Advanced Manufacturing Council.</span></em></p>Our lives are surrounded by the ideas and creations of thousands of people. The magic of flight, or computers, or vaccines, inventions and innovations we take for granted, have advanced from one idea to…John Pollaers OAM, Fellow, Faculty of Business and Economics, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/329432014-10-15T00:48:51Z2014-10-15T00:48:51ZNew industry policy welcome, but reform process is just beginning<p>The Abbott government’s <a href="http://www.dpmc.gov.au/publications/Industry_Innovation_and_Competitiveness_Agenda/docs/industry_innovation_competitiveness_agenda.pdf">Industry Innovation and Competitiveness Agenda</a> is an economic policy statement likely to define its term in government. </p>
<p>The Agenda has four planks in the government’s efforts to boost innovation and competitiveness, including reforms that:</p>
<ul>
<li>lower the costs of doing business</li>
<li>enhance the skill base of the Australian economy</li>
<li>invest in major economic infrastructure, and </li>
<li>re-orient industry policy away from protecting declining firms and industries toward policies that promote innovation and entrepreneurship.</li>
</ul>
<p>The Agenda can in part be read as a narrative intended to make sense of the government’s economic reforms to date, but also as an attempt to lay the groundwork for economic reforms in its second term in office.</p>
<p>It seeks to frame the plethora of different policy reforms that have emerged over the last 12 months as a coherent and well thought through economic strategy. Indeed, much of what is included in the Agenda is current policy – or initiatives that are announced but not yet implemented. No doubt government will face criticism that it has relaunched and repackaged much of what it has previously promised, but not managed to deliver in full. </p>
<h2>A break with the past</h2>
<p>In some respects, the Agenda resonates with the broad directions for industry policy proposed by the Rudd Government prior to the last election. It is seeking to grapple to the same policy dilemmas - slow productivity growth, disruptive technologies, and the need to rework business regulation to meet the new policy environment post the global financial crisis. </p>
<p>Beyond that, however, the comparison fades. The most important difference centres on the extent to which government uses market-based competition to drive competition and innovation. The intention to roll back business regulation and reduce the corporate tax burden and other costs associated with doing business are central elements of the plan. This rollback extends across the board, from streamlining product and other regulatory standards through to simplifying the process for bringing a new start-up to life and hiring new employees.</p>
<p>Among the many new initiatives included in the Agenda are some long-overdue reforms, as well as some promising policy innovation. </p>
<p>Among the overdue reforms is the proposal to align taxation arrangements to favour the use of employee share-ownership schemes (ESOPs). While not widely practiced in Australia, ESOPs have become <a href="http://www.employeeownership.com.au/wp-content/uploads/2013/04/ESOP-Survey-Report.pdf">more common</a> over the last decade or so. International <a href="http://www.nceo.org/articles/studies-employee-ownership-corporate-performance">research</a> has demonstrated such schemes can enhance productivity and employee engagement and willingness to embrace workplace change. They contribute to what are commonly identified as <a href="https://theconversation.com/the-secret-to-unlocking-productivity-in-manufacturing-32369">“high performance work practices”</a>. </p>
<p>The proposal to enhance investment in STEM subjects - science, technology, engineering and maths - in secondary schooling and vocational education and training is also overdue. More contentious, however, will be initiatives in this area which seek to give industry more influence over school curricula, the planned trial of <a href="http://www.ptechnyc.org/domain/31">P-TECHs</a>, and the introduction of associate degrees that bridge training in secondary school and the VET sector.</p>
<h2>Going for growth</h2>
<p>Perhaps the core initiative, and the one that represents a significant shift from current industry policy settings, is the announcement to fund five “growth centres”. Modelled on <a href="http://www.sba.gov/about-sba/sba_initiatives/clusters_initiative">similar initiatives</a> in the US, <a href="https://www.catapult.org.uk/">UK</a> and <a href="http://www.nce-rce.gc.ca/Programs-Programmes/BLNCE-RCEE/Index_eng.asp">Canada</a>, A$188.5 million will be spent to establish growth centres in five high potential industries for government support - food and agribusiness; mining equipment, technology and services; oil, gas and energy resources; medical technologies and pharmaceuticals; and advanced manufacturing. </p>
<p>Just how these growth centres will operate, or how different they will be from previous initiatives to create <a href="https://theconversation.com/labors-innovation-plan-provides-hope-for-australian-manufacturing-12302">innovation precincts</a>, is not yet clear. Significantly, however, this initiative recognises the importance of government working collaboratively with industry to locate areas of competitive strength. </p>
<p>They explicitly recognise that, alongside competition and well-functioning markets, innovation and competitiveness requires a degree of coordination and collective action among firms, government and other industry stakeholders to be able to develop a healthy industry level “ecosystem”. Markets alone will not create a sustainable competitive advantage for small and large firms.</p>
<h2>Measuring success</h2>
<p>Whatever form they take, growth centres will, in the end, need to meet two key tests to be successful – an economic and a political one. </p>
<p>The economic test will be whether they can truly spawn new industries and opportunities for job growth – particularly where the aim is to redirect government support away from failing industries towards firms that demonstrate potential to innovate and shift into advanced, value-added manufacturing. This is a major policy shift, and one that is also long overdue. </p>
<p>The growth centres will have just four years to develop into self-funding bodies which can drive a major transformation in Australian industry. This may be asking a great deal of them over a relatively short period of time. Arguably, the government’s investment in this initiative will need to be reviewed and a longer-term financial commitment from both government and industry will be critical. Done well, this approach should also find bi-partisan support and yield a meaningful policy framework to support the re-invention of Australian manufacturing. </p>
<p>The political test will be whether the growth centres provide enough institutional support for business to manage a period that will be marked by ongoing turbulence and disruption in many industries. Kick-starting growth may prove to be more challenging and take more time than can be anticipated. </p>
<p>In the meantime, disruption will surely generate demands for protection and subsidies to avoid job losses or underwrite the costs of weathering economic restructuring that will surely follow. The reform process enables government to bring everyone along on what may be a rough ride with many losers as well as winners. </p>
<p>This new policy agenda can also be read as a statement of future intentions - the economic policy ambitions for a second Abbott term. </p>
<p>The Agenda points to several coming reviews, including an audit of Commonwealth business regulation, the taxation white paper, financial system reforms, energy sector reforms, the long-awaited Productivity Commission review of Fair Work legislation, a review of regulation of crowd-sourced equity funds, and plans to privatise “mature” assets. </p>
<p>The past tells us that many of them, such as industrial relations reform, privatisation of public assets, and tax reform, make for a necessarily ambitious, but politically fraught, agenda.</p><img src="https://counter.theconversation.com/content/32943/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The Centre for Workplace Leadership receives funding from the Commonwealth Government.</span></em></p>The Abbott government’s Industry Innovation and Competitiveness Agenda is an economic policy statement likely to define its term in government. The Agenda has four planks in the government’s efforts to…Peter Gahan, Professor of Management + Director, Centre for Workplace Leadership, Faculty of Business and Economics, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/329512014-10-14T19:33:18Z2014-10-14T19:33:18ZAustralian industry must shift its narrow approach to innovation<figure><img src="https://images.theconversation.com/files/61641/original/3g8kq4pk-1413264733.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">There's plenty of value between an idea and its commercialisation.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>One of the key planks of the government’s new <a href="http://industry.gov.au/industry/Pages/Industry-Growth-Centres.aspx#content">Industry Innovation and Competitiveness Agenda</a> is a desire to boost collaboration between business and industry, the scientific and research communities and the university sector.</p>
<p>According to the government, less than 5% of Australian businesses currently turn to the higher education sector – including scientists and researchers – directly for expertise and ideas.</p>
<p>The Business Council of Australia, in a major <a href="http://www.bca.com.au/publications/building-australias-comparative-advantages">report</a> earlier this year, identified collaboration as a weakness holding our businesses back globally.</p>
<p>But addressing these collaboration challenges can only be part of the answer to our stagnating global competitiveness. First, Australian businesses – and entire industry sectors – must rethink what is currently a narrowly focused approach to innovation.</p>
<p>Australian businesses tend towards technology-driven innovation and efficiency-driven innovation, when what is needed in a high-cost business environment is non-technological innovation – rather than relying on new technology or cost cutting, firms should be innovating by introducing new business models.</p>
<p>The collaboration gap is often framed as a cultural mismatch between key stakeholders, particularly when it comes to engagement between small-medium enterprises and universities. However, in conducting research for the <a href="http://www.csiro.au/Organisation-Structure/Flagships/Future-Manufacturing-Flagship/Agile-Manufacturing/Sustainable-Manufacturing-Innovation/Design-for-Manufacturing-Competitiveness.aspx">Design for Manufacturing Competitiveness Report</a>, released earlier this year, it became clear the issues surrounding collaboration are much broader and linked to a business’s innovation mindset.</p>
<p>This research, mainly with SMEs, suggests that, currently, the main focus of innovation tends to be a business’s product offering: adding a new feature, lifting the level of service or, more commonly, driving efficiencies in production or delivery.</p>
<p>The research and development efforts within these businesses reflect this approach to innovation, resulting in extremely focused collaboration efforts. “Solving” narrowly framed problems is the common model of engagement or collaboration.</p>
<p>This incremental approach to innovation can be valid and has been the foundation of many successful businesses. But it does depend on a relatively stable business environment, where “continuous improvement” in products and services is sufficient. This is not the situation for Australian businesses today. Structural economic shifts, brought about by our declining terms of trade and historically low productivity, have created a more uncertain environment.</p>
<p>In contrast, international research has shown that businesses that shift their competitive positioning from a product- or service-only focus to a deeper and wider focus on their entire business model do outperform their peers.</p>
<p>When a business makes this shift in mindset, the emphasis moves from technological differentiation (product or service features) to non-technological innovation – a clearer understanding of the customer and the meaningful value the organisation as a whole can deliver to that customer.</p>
<p>By getting businesses to widen their focus from products and services to business models, we could open up significant opportunities for new research partnerships, for the collaboration the BCA rightly seeks.</p>
<p>Getting businesses to make this shift is difficult, however, the research shows.</p>
<p>One approach that is starting to achieve traction is design-led innovation, a concept that draws on the understanding of how designers approach complex problems. Designers constantly reframe problems, drawing out the contradictions and constraints, and they recognise there will be multiple answers.</p>
<p>This <a href="http://www.fastcompany.com/919258/design-thinking-what">“design thinking”</a> approach is gaining global attention and has emerged in other nations as a key driver of innovation. Some work has been done in Australia, at the firm level, with extremely positive results.</p>
<p>The next step would be to adopt design-led innovation at the sector level, using this approach to better understand sector-based challenges and frame alternative futures at the macro level.</p>
<p>Through this process, sector-level business models could be envisaged, prototyped and refined, highlighting the sector-level collaborations and underlying research required to drive Australia’s prosperity.</p>
<p>Without this envisaging at a sector level, we risk defaulting to our current, narrowly focused approach to innovation – one where research is disconnected from the business models of the future and collaboration efforts remain strained and impact diluted.</p><img src="https://counter.theconversation.com/content/32951/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Sam Bucolo receives funding from Federal, government State government and CSIRO programs.</span></em></p>One of the key planks of the government’s new Industry Innovation and Competitiveness Agenda is a desire to boost collaboration between business and industry, the scientific and research communities and…Sam Bucolo, Professor Design and Innovation, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/329552014-10-14T05:48:02Z2014-10-14T05:48:02ZCompetitiveness agenda lays path for industry-led innovation: experts react<p>The federal government has released its <a href="http://industry.gov.au/industry/Pages/Industry-Growth-Centres.aspx#content">National Industry Investment and Competitiveness Agenda</a>, committing around A$400 million towards “industry growth centres”, new tax incentives for employee share schemes, and a push for science, technology, engineering and maths (STEM) education.</p>
<p>The government has chosen to focus on five sectors for its growth centres: oil and gas, mining technology, medical technology and pharmaceuticals, food and agribusiness and advanced manufacturing, where it says Australia has a “natural advantage” it can build on.</p>
<p>Each of the five industry-led centres will receive funding of up to A$3.5 million per year, and be required to establish a plan to become self-sustaining after four years. Grants of up to A$1 million will also be on offer for the commercialisation of ideas.</p>
<p>The government said it would also reform the tax treatment of employee share schemes to support start-up companies, beginning with reversing the changes made in 2009 to the taxing point for options. There will also be new concessional tax treatment of options or shares issued by unlisted start-ups with turnover of $50 million or less.</p>
<p>The 457 visa program will also be reformed, with the process of sponsorship, nomination and visa applications for “low risk” applicants streamlined, English language requirements made more flexible, and the sponsorship approval period increased from 12 to 18 months for start-up businesses.</p>
<p>As part of its ongoing deregulatory agenda, the government will adopt a new principle that if a system, service or product has been approved under a trusted international standard or risk assessment, then Australian regulators would not impose any additional requirements for approval.</p>
<p>The government will also introduce a new “Premium Investor Visa” offering a faster 12 month pathway to permanent residency, for those meeting a A$15 million investment threshold.</p>
<p>A symbolic A$12 million of funding will be provided for programs designed to improve the focus on STEM subjects in primary and secondary schools. </p>
<p>The government will also establish a “Commonwealth Science Council”, chaired by the prime minister, to advise the government on areas of national strength, current and future capability and on ways to improve connections between government, research organisations, universities and business.</p>
<p>The government will host a series of roundtable sessions in coming months to consult with business and the research sector on the policy.</p>
<p>A panel of experts responds below.</p>
<hr>
<p><strong>Joanna Howe, Lecturer in Law at University of Adelaide</strong></p>
<p>Today’s announcement by the government of a number of changes to the subclass 457 visa program represents a missed opportunity to properly reform Australia’s approach to temporary skilled migration. There is genuine public concern that temporary migrant workers are being used in areas where no skill shortage exists, thereby displacing job opportunities for Australian workers. This point was recognised by the recent independent review into the subclass 457 visa program, with the final report identifying that two core questions of the program, namely “proving that the position cannot be filled by a local worker and determining the skilled occupations that are used for the programme” are “not well served by the current policy approaches and can be improved by adopting a more robust evidence- based approach”. Yet, the government has sidestepped both these issues in the reform package announced today and ignored the report’s recommendations for a ministerial advisory council to provide expert advice on the composition of the occupational shortage list used by employers to access temporary migrant labour.</p>
<p>The decision to streamline the application process for low risk applicants is a positive one, as is the proposal to increase the sponsorship approval period for start up companies. Yet, ironically, a reform that would offer far more efficiency gains and was recommended by the independent review, but has not been adopted by the government, is the abolition of employer-conducted labour market testing. This would greatly aid employers and the Department of Immigration but the government seems unwilling to tackle this reform because it would be difficult to get through the Senate. Yet, the weight of scholarly evidence and indeed, the OECD’s recommendations on this point, suggest that independent labour market testing is a far better alternative.</p>
<p>A concerning development is the government’s proposal to weaken the English language requirement. This is currently a minimum of five across the four competencies (reading, writing, speaking and listening). The main function of the English language proficiency requirement is to ensure a 457 visa holder will not be exploited. If temporary migrant workers have lesser language skills, this could leave them <a href="https://theconversation.com/457-visa-reformers-should-remember-our-shady-skilled-migration-history-27717">vulnerable to potential health and safety risks</a> in the workplace. </p>
<p>Another concerning reform is the proposal to freeze the Temporary Skill Migration Income Threshold (TSMIT) at its current level and to review the role of the TSMIT in two year’s time. Like a strong English language requirement, the TSMIT has a key role in protecting the integrity of the program overall. It was introduced following the Deegan Review into the 457 visa to act as a salary floor ensuring a visa holder’s wage was sufficient to maintain a reasonable standard of living given the lack of access to welfare and tax benefits available to local workers.</p>
<hr>
<p>*<em>Ian Maxwell, Adjunct Professor at RMIT
*</em></p>
<p>The concept of promoting STEM skills in schools addresses the continuing slide in the quality of high school graduates in these areas – as I have heard anecdotally from friends that teach these subjects at university. In fact, in Australia we have far too many university graduates in science and engineering and the result is that (a) there is downwards pressure on graduate salaries (further reducing the quality of people entering these degrees) and (b) there is an increase in the number of people that have science and engineering degrees that go onto to work in unrelated areas. My personal preference would be to promote special purpose high schools with a focus on science and engineering where we can put our limited resources into a fewer number of highly skilled and motivated students.</p>
<p>The idea that we in Australia accept international standards and risk assessments for certain product approvals is a great one. For too long, especially in the more mature industries, we have seen oligarchies in Australia exploit standards organisations in order to keep out foreign competition. This has had two unwanted consequences; firstly, it has put upward pressure on relative prices for Australia customers (due to less competition), and, secondly, it has acted as a disincentive for Australian producers to expand their focus overseas. The question is whether this new principal only for newly emerging standards, or if this brush will also be run over existing standards.</p>
<p>The government says it will provide A$188.5 million to fund “Industry Growth Centres” in five key sectors. There are very few details so it is hard to comment on this one other than to say that this represents a (mean) expenditure of $37 million for each of the so-called growth sectors and it would be pretty silly to expect any significant national economic outcomes from such low levels of expenditure. </p>
<hr>
<p>*<em>Jim Minifie, Productivity Growth Program Director at Grattan Institute
*</em></p>
<p>For a refreshing change, the Industry and Competitiveness Agenda is a readable document that clearly sets out what the government has done and aims to do in pursuit of four goals (business environment, labour force, infrastructure, industry policy).</p>
<p>While the “have done” list includes some questionable calls like ending carbon pricing and the “will do” list includes some questionable commitments like the paid parental leave scheme, the concrete new initiatives announced in the Agenda look broadly sensible and do not cost much. Three of the initiatives could turn out to be big contributors to startups, gains from trade, and skilled migration. The program offers substantial spending on apprenticeships, and several smaller funded programs. </p>
<p>Reforms to the Employee Share Scheme (ESS) taxation arrangements are overdue. Paying employees partly in shares or share options can be a great way for cash-strapped start-ups to reward employees while burning through a minimum of cash, but since 2009, Australian start-up employees could have to pay tax at issuance. Start-up employees have been in the absurd position of having to pay tax well before their shares can be sold for cash. While some start-ups have found ways around the restrictions, many say the rules sorely limited the value of share schemes in Australia. Shifting the point of taxation back will make make it much easier for start-ups to make attractive offers to their employees. </p>
<p>A tougher test on the creation of Australian standards is also welcome and overdue. Before a new Australia-specific standard can be set, regulators will need to show that there is a good reason to introduce one. Government will also apply the new test to existing Australian standards, not only new ones. Standards can be a two-edged sword: they can reduce the costs to buyers of assessing quality; but they can also be used to benefit firms whose products meet the standards by restricting competition. The reforms should also help Australian exporters achieve production scale by using a single certification for domestic and international markets.</p>
<p>Reforms for skilled migration are sensible as well, if relatively minor. Research overseas has shown that skilled migrants do not take jobs away from locals, but instead can boost their incomes. Skilled migrants can make locals more productive, start businesses that employ locals, or help local firms plug into international networks. Anecdotally, technology firms in some cases have had difficulty attracting top international talent. It’s less clear whether clearing the way for so-called significant and premium investors will add much value; in principle, reducing the barriers to equity capital inflow could be useful as investors can start new businesses where they live. Australia’s dividend imputation rules do probably bias foreign investment towards debt rather than equity, so there may be a broader case for to attract foreign equity including through investor visas. </p>
<p>STEM education in Australian schools has lagged, with enrolments falling in the 2000s, and many schools saying they are short of teachers with strong mathematics and science qualifications. While questions can be raised about whether the demand is there for tertiary STEM graduates, it’s much easier to make the case for stronger secondary STEM education, which creates options for students and builds foundation skills. </p>
<p>Finally, five Industry Growth Centres will get seed grants and will be able to apply for further funding. The model brings to mind the Innovation Precincts of the previous government. The focus areas (food/agribusiness; mining technology and services; oil, gas and energy; medical technology; and advanced manufacturing) are not a million miles from those suggested by the Business Council of Australia’s work with McKinsey. The logic for a subsidy is that firms can be reluctant to innovate where they expect others will capture benefits. </p>
<p>Australian universities do not score well on “translation” to industry. The logic for the sectors chosen seems to be that the payoff may be biggest in large or rapidly developing sectors. While a case can be made for action, the evidence base for the value of such programs is relatively weak. As long as the programs are built from the beginning with evaluation built in (and funded), they have some chance of paying off and will at least teach us about what doesn’t work. </p>
<hr>
<p><strong>John Rice, Associate Professor in Strategic Management at Griffith University</strong></p>
<p>The promise of $185 million to establish five new “Industry Growth Centres” (in the areas of food and agribusiness, mining equipment, technology and services, oil, gas and energy resources, medical technologies and pharmaceuticals; and advanced manufacturing sectors) can be seen as a re-packaging of funds that have previously supported the eleven “Industry Skills Councils”, albeit with a focus on innovation rather than skills and training quality. Handily, the acronym doesn’t change!</p>
<p>Notable sectoral absences among the newly established centres are the service industries in Australia – clearly not a good omen for those industries that have not been favoured by inclusion in the narrow mandates of the new centres. In terms of governance arrangements, the new centres are clearly industry driven, while the sidelined skills councils were, to a greater or less degree, tripartite in nature with a clear role for unions.</p>
<p>What is lacking is a clear policy framework for industry development that encompasses skills, investment and innovation. The previous Labor government created a bricolage of bodies in the skills and innovation area with overlapping responsibilities (that even insiders struggled to understand), extraordinary bureaucratic waste and scams that siphoned State VET funding.The current government has rationalised many of these bodies, but today’s announcements in VET and innovation replace the bricolage with an equally unacceptable patchwork.</p>
<p>The Minister also announced half a million dollars in funding to assess the development of P-TECH-like programs in Australia. These have been developed in the US and link private employers, educational providers and (generally) low socio-economic students. In Australia, private firms have accessed public funds previously to train their employees – and generally this has not gone well. </p>
<p><a href="http://www.theaustralian.com.au/higher-education/scrap-employer-incentives-new-report/story-e6frgcjx-1226111222799">Anecdotes of burger flippers being surreptitiously enrolled</a> in VET programs as a means of siphoning public funds haunted the sector a few years ago. It is important that P-TECH does not emerge as a similar scam.</p>
<p>Suspending my natural cynicism, however, linking employers and trainees is a good thing if it is accompanied by a sense of mutual obligation. It would be tragedy to invest heavily in narrow skills sets that become worthless if a multinational employer opts to leave Australia. As such, skills should be relevant and generic, and not focused too narrowly on the processes and systems used in specific firms.</p>
<hr>
<p>*<em>Rachel Wilson, Senior Lecturer at University of Sydney
*</em></p>
<p><a href="http://www.tandfonline.com/doi/pdf/10.1080/02188791.2014.924387">Research</a> has shown that educational attainment (reading, science and numeracy on PISA) and IMF measures of competitiveness are highly correlated. In Australia, however, we have <a href="http://eprints.qut.edu.au/73153/1/Continuing_decline_of_science_proof.pdf">declining participation</a> and <a href="http://www.acer.edu.au/documents/PISA-2012-Report.pdf">levels of attainment</a> in STEM education that threaten future economic competitiveness. Contrast this with the massive investment, strong participation and high levels attainment in STEM among our competing and neighbourhood economies, like <a href="http://www.acola.org.au/PDF/SAF02Consultants/Consultant%20Report%20-%20China.pdf">China</a>, or <a href="http://www.acola.org.au/PDF/SAF02Consultants/SAF02_STEM_%20FINAL.pdf">with others</a>, and the picture looks grim – we risk being left behind. Therefore this policy attention is very welcome and needed.</p>
<p>My concern is that it is still a very modest investment and is not targeted for the best bang for our buck. Provision of teaching resources is important but not as important as teacher professional development programs – particularly those focusing on teacher pedagogical content knowledge in STEM. There is evidence that those entering the teaching profession also have declining participation and attainment in science, math and technology; and current efforts to lift teacher quality are not focused on these areas. There is no requirement for teachers to have completed intermediate level maths or any science for HSC – and many do not.</p>
<p>The focus on a pilot program and Summer schools for students too, while admirable, will not have wide reach. Indeed there have been many such programs promoting students interest in STEM and innovation in schools over the past two decades, yet concurrently many students have dropped study in these fields and our attainment levels among 15-year olds are <a href="http://www.acer.edu.au/documents/PISA-2012-Report.pdf">declining</a>. More attention needs to be paid to teacher knowledge and pedagogy in STEM, in early childhood through to university, and on structural policy issues relating to how STEM is valued, or not, within educational curricula. In NSW the requirement for either maths or science at HSC was dropped in 2001 and <a href="http://www.afr.com/p/national/education/australia_maths_crisis_I3P1MZ7bcKJKqiyOSnGDVM">since then numbers have been in decline</a>. We cannot hope that programs to lift interest among students, so proliferate among education systems worldwide, will alone make a difference to our current position. Braver reform is needed.</p>
<hr><img src="https://counter.theconversation.com/content/32955/count.gif" alt="The Conversation" width="1" height="1" />
The federal government has released its National Industry Investment and Competitiveness Agenda, committing around A$400 million towards “industry growth centres”, new tax incentives for employee share…Charis Palmer, Deputy Editor/Chief of StaffAlexandra Hansen, Deputy Editor and Chief of Staff, The Conversation AUNZLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/323672014-10-13T04:04:00Z2014-10-13T04:04:00ZA thinking country’s guide to competing on the global stage<p><em>With major employers heading offshore and employment numbers decimated, what will emerge from the ashes of Australia’s manufacturing industry? And what role should manufacturing play in the federal government’s competitiveness agenda? In this <a href="https://theconversation.com/uk/topics/reinventing-manufacturing">Reinventing Manufacturing</a> series, we look at the case for retaining the industry, and how it can transform itself into a high performance, advanced and productive sector.</em></p>
<hr>
<p>With its fateful decision not to support car assembly in Australia, we might be forgiven for thinking the federal government has written off manufacturing. But we could be in for a surprise, as options narrow in the wake of the mining boom.</p>
<p>The government’s long awaited National Industry Investment and <a href="http://www.manmonthly.com.au/news/upcoming-federal-industry-agenda-to-have-tough-lov?mid=97eb807513&utm_source=Cirrus+Media+Newsletters&utm_campaign=6bf9c6df00-Manufacturers+Monthly+Newsletter+-+2014100&utm_medium=email&utm_term=0_fe913f1856-6bf9c6df00-60010773">Competitiveness Agenda</a> is likely to argue that manufacturing has a very significant future, but not as it has been traditionally understood.</p>
<p>There is increasing <a href="https://www.bcgperspectives.com/content/articles/lean_manufacturing_globalization_shifting_economics_global_manufacturing/?utm_source=2014Sep&utm_medium=Email&utm_campaign=Ealert#bmb=1">recognition</a> around the world that the era of low cost mass production is coming to an end, at least in high cost economies like Australia. And it is being superseded by more flexible, specialised and globally interdependent manufacturing value chains, with firms often located in geographically concentrated <a href="http://www.sqw.co.uk/insights-and-publications/accelerating-local-economic-growth-clusters-and-deals/">clusters</a>.</p>
<p>But why should we be interested in manufacturing at all? Surely, as some would argue, we are now making our way successfully in a “post-industrial” <a href="http://www.afr.com/p/national/service_sector_hidden_export_role_pfGMtfNxjyauHKGDV0pTDP">services economy</a>, irrespective of what happens in either the manufacturing or mining sectors. </p>
<h2>Services economy?</h2>
<p>Certainly services account for most of Australia’s employment, but only a small proportion is traded internationally. The fact is <a href="https://theconversation.com/does-manufacturing-have-a-future-in-australia-3098">knowledge-based manufacturing</a> remains the largest and fastest growing value segment of world trade.</p>
<p>The prospects for manufacturing would not be so important but for the price volatility of raw materials exports. We have just experienced one of the many mining booms in our history, adding 15% to Australia’s national income over six years through the rise in our terms of trade – thanks almost entirely to the expansion in demand from China.</p>
<p>Now the terms of trade have gone into reverse, primarily because of the collapse of iron ore prices. While the volume of raw materials exports may continue to increase, with new mines coming on stream, they are attracting diminishing returns. Added to this, the boom disguised Australia’s <a href="https://theconversation.com/australias-choice-the-high-road-to-productivity-or-a-race-to-the-bottom-10695">sluggish productivity performance</a>, and its ending has left us exposed and vulnerable.</p>
<p>So we must find <a href="https://theconversation.com/australia-ranks-on-innovation-but-indolence-could-cost-us-29329">new sources of growth</a> for the economy, and not just any growth. Our first world lifestyles, based on imported consumer goods, will not be sustained by residential house-building, or even infrastructure spending, let alone selling each other financial derivatives and cafe lattes.</p>
<h2>Where we can compete</h2>
<p>As the Business Council of Australia (BCA) has recently <a href="http://www.bca.com.au/publications/building-australias-innovation-system">pointed out</a>, we must identify key areas of existing and potential competitive advantage, where knowledge and ingenuity count as much as natural endowments. The alternative is a third world economic structure based on the export of unprocessed raw materials, with most of the returns going to overseas shareholders, and on services such as tourism which may be worthwhile but are inherently precarious.</p>
<p>Much to the <a href="http://www.afr.com/p/opinion/don_dump_growth_strategy_by_picking_S63WdOQZfOPJR0mVsJUvVJ">chagrin</a> of the Productivity Commission, the government would seem to have adopted the BCA’s approach, with timely and cogent <a href="http://www.afr.com/p/national/mercantilist_narrative_has_outlived_4YMb2cF2uSaZN9CsbQQtJM">support</a> from former Treasury head Dr Ken Henry. The competitiveness agenda is expected to identify five “growth centres” for the economy, comprising advanced manufacturing as well as agribusiness, energy, mining technologies and medical technologies.</p>
<h2>Smart specialisation and new business models</h2>
<p>There are many areas of manufacturing which already generate and capture value for the Australian economy. Most are driven by highly globalised small and medium enterprises, which have become known as “micro-multinationals”. These firms pursue strategies of “smart specialisation” in global markets and value chains, and they are characterised by relentless innovation in their product and service offerings.</p>
<p>Innovation can mean many things to different people. In this context innovation may encompass incremental improvements in products and processes, but it can also signify more “disruptive” transformation, including through digitisation and robotics. With only 2% of the world’s R&D, Australia cannot be excellent in everything, which is why specialisation is crucial when it comes to the development, adaptation and diffusion of new technologies.</p>
<p>However, innovation is not just about research and technology development. According to the Australian Bureau of Statistics, over two thirds of innovation spending is in areas of non-technological innovation, such as new business models, design and systems integration and high performance work and management practices. Here specialisation is less important than a deep understanding of current customers, and even more so of those yet to be created.</p>
<p>The management theorist <a href="http://en.wikipedia.org/wiki/Peter_Drucker">Peter Drucker</a> depicted the 20th century corporation as a combination of technology and markets, which was an accurate observation for its time. However, competitive success for the 21st century enterprise, particularly the newly emerging class of manufacturing micro-multinationals, will derive from the combination of “design thinking” and business analytics.</p>
<h2>New skills required</h2>
<p>This will require <a href="http://www.uts.edu.au/about/uts-business-school/news/management-education-takes-next-step">new skills and capabilities</a>, and new approaches to education in our schools and universities. No longer can we afford to produce graduates for narrowly defined hierarchical professions and careers. In addition to specialised domain knowledge, graduates will need “boundary-crossing” skills in teamwork, communication, problem-solving and creative thinking. These skills are essential for innovative manufacturing.</p>
<p>Yet a global <a href="http://worldmanagementsurvey.org/wp-content/images/2010/07/Report_Management-Matters-in-Australia-just-how-productive-are-we.pdf">study</a> of management capability in manufacturing firms found Australian managers lagged their counterparts in other high cost economies in the three key areas of operations management, performance management and people management, especially in SMEs. They lagged most behind world best practice in a category titled “instilling a talent mindset”, which may be seen as a proxy for innovation capability.</p>
<p>Any new policy approach to reinvigorating and repositioning Australian manufacturing must address the need to build management and innovation capability at firm level. And it must do so in the context of a comprehensive <a href="http://www2.itif.org/2014-understanding-us-innovation-system.pdf">“national innovation system”</a> which facilitates collaboration among firms and research and education institutions, with a view to enhancing competitive advantage in strategic priority areas.</p>
<h2>Investing for results</h2>
<p>While the competitiveness agenda may now be moving in the right direction, after the widely <a href="https://theconversation.com/corporate-australia-wasnt-really-the-budget-winner-after-all-26522">criticised budget cuts</a> earlier this year, there is a big question mark over whether it will move far and fast enough. </p>
<p>The new statement is expected to repackage some of Labor’s initiatives in the new Entrepreneurs’ Infrastructure Program, change the tax treatment of employee share schemes, bolster skills training and undertake yet another review of Cooperative Research Centres. But will it offer a compelling vision of our knowledge-based future, with a credible “pathway to impact”?</p>
<p>Some other countries already do this well. They are increasing their investment in research and innovation, not reducing it, as they know this is the best way to create long-term growth and jobs. The US with its new <a href="http://manufacturing.gov/nnmi.html">Institutes for Manufacturing Innovation</a>, the UK’s <a href="https://www.innovateuk.org/">Technology Strategy Board</a> and “Catapult Centres”, and the Netherlands, with its “Top Sectors” <a href="http://www.keepeek.com/Digital-Asset-Management/oecd/science-and-technology/oecd-reviews-of-innovation-policy-netherlands-2014_9789264213159-en#page1">strategy</a>, provide examples of clever intervention to encourage high skill, high wage manufacturing.</p>
<p>Contemporary industry and innovation policy has moved beyond the “age of entitlement” and approaches that imply <a href="https://theconversation.com/productivity-commissions-myopic-failure-on-industry-assistance-28616">“picking winners”</a>. It is much more about the development of competitive and dynamic innovation “ecosystems”, which deepen engagement between industry and research and education institutions. If there is any benefit in discarding past approaches, it is to create the opportunity for new ones.</p><img src="https://counter.theconversation.com/content/32367/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Roy Green does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>With major employers heading offshore and employment numbers decimated, what will emerge from the ashes of Australia’s manufacturing industry? And what role should manufacturing play in the federal government’s…Roy Green, Dean of UTS Business School, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/86212012-08-03T05:19:26Z2012-08-03T05:19:26ZGloomy productivity report hides some fatal flaws<figure><img src="https://images.theconversation.com/files/13817/original/qp9bnvw2-1343967198.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A poor report card on Australia's productivity carried some obvious flaws.</span> <span class="attribution"><span class="source">Flickr</span></span></figcaption></figure><p>This week’s global report ranking Australia’s productivity growth performance second-last on a list of 51 countries raised eyebrows and prompted calls for urgent action.</p>
<p>The Australian Human Resources Institute’s “<a href="http://www.ahri.com.au/MMSDocuments/profdevelopment/research/research_papers/eui_report_global_index_of_workplace_performance_and_flexibility.pdf">Global Index of Workplace Performance and Flexibility</a>” ranked Australia 34th out of 51 countries in terms of economic performance – behind not only New Zealand, but also Argentina, Uganda and Italy.</p>
<p>The analysis – undertaken by the <a href="http://www.eiu.com/Default.aspx">Economist Intelligence Unit</a> - also ranks Australia second last in terms of productivity growth and has been reported in the media as “sobering” and “a wake-up call” for Australia.</p>
<p>But the report makes three fundamental economic faux pas that render it next to useless.</p>
<p>The first is that it attempts to measure economic performance by looking at a range of indicators that do not measure performance though they influence it. This is like trying to judge Master-Chef by measuring the quality of the eggs, butter and flour, rather than the cake.</p>
<p>Our economic “cake” is GNP per capita and the irony is that we can measure this well - much better than we can measure many of the ingredients AHRI uses, such as the “elasticity of total employment to GDP”, or “flexibility practice in telecommuting”. We don’t need to measure all these factors to understand how well the economy is doing. The proof of the cake is in the eating.</p>
<p>Compounding the folly, the report tries to aggregate indicators such as these into an overall index. This is, of course, like adding apples and oranges, or to extend the analogy, cocoa and sugar. Children can add them and stir them but it doesn’t necessarily make a chocolate sponge. Practically no meaning can be given to the aggregate index they construct.</p>
<p>The third faux pas is the worst – the selection of indicators. A key ingredient of their mixture of economic indicators is labour costs. Australia is apparently (according to some journalists who have had access to the underlying model) ranked low because of its high labour costs. Conversely the authors of the report seem to believe that Namibia and Nigera have better economic performance because of their low labour costs.</p>
<p>This absurdity arises because they confuse “competitiveness” – which sounds like a good thing – with “low wages” which are bad. The resolution is clearly that being competitive is good if it’s achieved through high productivity. Those firms and countries that have high productivity will pay high wages. Those that are unproductive must pay low wages. Thus, one of the report’s key indicators of “economic performance” is, in fact, a measure of under-performance.</p>
<p>Australia is also marked down for having low productivity growth. Yet economists understand that productivity is like the <a href="https://theconversation.com/topics/higgs-boson">Higgs Boson</a>. The theory is all there but it’s impossible to measure accurately. Australia’s productivity numbers are all over the place for many reasons, but partly because of high investment in mining and the long lead times and lags in that sector. There is a two-speed economy, but the overall average speed is still very fast.</p>
<p>Indeed, Australia’s economy has been among the fastest growing OECD economies over the last two decades and remains one of the richest. That’s really all there is to it.</p>
<p>The answer to the question, “how strong is Australia’s economic performance?”, does not require a mysterious set of formulae and statistics. It is something the Australia Bureau of Statistics reports on four times a year in its <a href="http://www.abs.gov.au/ausstats/abs@.nsf/mf/5206.0/">quarterly national accounts.</a> When our income per capita rises, which it has been doing, it is because of increases in labour productivity.</p>
<p>We can of course look at other indicators that identify weaknesses and areas needing reform. Those interested in what Australia can do to enhance its economic performance need look no further than the <a href="http://www.pc.gov.au/__data/assets/pdf_file/0016/113407/annual-report-2010-11.pdf">Productivity Commission’s annual report</a>. </p>
<p>It may not be riveting, but it has the advantage of being well reasoned and intelligible.</p><img src="https://counter.theconversation.com/content/8621/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Robertson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>This week’s global report ranking Australia’s productivity growth performance second-last on a list of 51 countries raised eyebrows and prompted calls for urgent action. The Australian Human Resources…Peter Robertson, Winthrop Professor and Associate Dean Research and Research Training, The University of Western AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/73972012-06-01T04:21:06Z2012-06-01T04:21:06ZWorld competitiveness rankings: what do they tell us?<figure><img src="https://images.theconversation.com/files/11276/original/j8kt55vj-1338515179.jpg?ixlib=rb-1.1.0&rect=26%2C38%2C1919%2C1179&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Australia's global competitiveness has slipped, according to a global study: but it is worth exploring some of its assumptions.</span> <span class="attribution"><span class="source">AAP</span></span></figcaption></figure><p>The <a href="http://www.imd.org/research/publications/wcy/World-Competitiveness-Yearbook-Results/#/wcy-2012-rankings/">IMD World Competitiveness Rankings</a> released this week are worth reflecting on, not so much because of the relative positioning of various countries - <a href="http://www.businessspectator.com.au/bs.nsf/Article/Aust-falls-lower-in-global-competitiveness-survey-pd20120530-USPAV?OpenDocument&src=hp26">including Australia</a> - but rather because of the reasoning which underpins the rankings. </p>
<p>The <a href="http://www.imd.org/news/IMD-announces-its-2012-World-Competitiveness-Rankings.cfm">press release</a> accompanying the rankings gives some indication of this reasoning. The first point worth noting is the potentially misleading use of the term competitiveness. When this term is used by economists it usually refers to the price competitiveness of a country’s exports and import-competing goods. And
for many economists this would over time be bound up with the relative real unit labour costs across different countries.</p>
<p>The reasoning accompanying the IMD rankings suggest however a much looser use of the term “competitiveness”. What’s suggested is rather a view about the potential of different countries for sustained economic prosperity.</p>
<p>Now, price competitiveness of one’s exports and import-substitutes may be part of this, but is certainly never the whole story.</p>
<p>Moreover, as a number of economists over the years have noted, the world economy is not an open economy, but a closed economy. This means that one country’s improved competitiveness is at the expense of another country. </p>
<p>In other words, growing your economy through exports at the expense of other countries can mean exporting not just goods and services, but exporting unemployment to other countries as well.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/11270/original/nr3jmw87-1338513081.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/11270/original/nr3jmw87-1338513081.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=705&fit=crop&dpr=1 600w, https://images.theconversation.com/files/11270/original/nr3jmw87-1338513081.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=705&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/11270/original/nr3jmw87-1338513081.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=705&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/11270/original/nr3jmw87-1338513081.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=886&fit=crop&dpr=1 754w, https://images.theconversation.com/files/11270/original/nr3jmw87-1338513081.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=886&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/11270/original/nr3jmw87-1338513081.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=886&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">IMD World Competitiveness Yearbook 2012</span></span>
</figcaption>
</figure>
<p>So one needs to be cautious in drawing links between competitiveness and economic prosperity – it is not a game everyone can win.</p>
<p>Another interesting feature of the IMD release relates to the position of the US. It is suggested that the “US remains at the centre of world competitiveness because of its unique economic power”. </p>
<p>Undoubtedly the element of truth in this statement is the continued hegemony of the US in the global economy. </p>
<p>But one could reasonably contend that this is much less to do with any superiority in competitiveness of the US in the narrow economic sense and much more to do with the continued dominant status of the US dollar as a de facto reserve currency in the international monetary system. </p>
<p>And this dominance – effectively emerging as far back as the end of the First World War – has continued, interestingly, while the external accounts of the US – specifically, its current account – have been deteriorating. </p>
<p>In fact the US current account has been deteriorating since the breakdown of the Bretton Woods era in the early 1970’s.This in turn has reflected a long-run deterioration in US trade performance. Yet this has not seemingly impeded the economic dominance of the US.</p>
<p>In fact, it arguably has been a reflection of its economic power and its ability to influence global demand. </p>
<p>As commentators on the history of the international monetary system have at times noted, the status of the US dollar in a sense means that it can afford to be somewhat less concerned about competitiveness than would be the case for most other economies. </p>
<p>This is in effect a manifestation of what Valéry Giscard d'Estaing, French Finance Minister between 1969 and 1974, called the “exorbitant privilege” accorded the US dollar.</p>
<p>Also revealing are the comments in the IMD press release regarding competitiveness in the Euro area. These seem to divide Europe competitiveness along the lines of the stronger and weaker economies – so Germany gets a guernsey for export-orientation and fiscal discipline – while countries such as Spain, Italy, and Portugal “continue to scare investors”. </p>
<p>The latter is probably true, as is the fact that Germany has succeeded in the Euro area. But the elephant in the room in this regard is that Germany’s success has been in part at the expense of these other Euro partners and not because its fiscal discipline or because of fiscal profligacy on the part of its partners.</p>
<p>Rather, Germany’s success has in part to do with its suppression of wages and hence prices growth relative to other parts of the EMU, which has increased its competitiveness within the Euro area. But as noted above, what is one country’s export is another country’s import.</p>
<p>So, yes, differential competitiveness may well be a significant part of the story in European Union, but it’s not clear that it is any less part of the problem than part of the solution, certainly for European Union as a whole.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/11277/original/j75zsp7z-1338515896.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/11277/original/j75zsp7z-1338515896.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=468&fit=crop&dpr=1 600w, https://images.theconversation.com/files/11277/original/j75zsp7z-1338515896.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=468&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/11277/original/j75zsp7z-1338515896.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=468&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/11277/original/j75zsp7z-1338515896.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=588&fit=crop&dpr=1 754w, https://images.theconversation.com/files/11277/original/j75zsp7z-1338515896.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=588&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/11277/original/j75zsp7z-1338515896.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=588&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Germany’s success has come at the expense of its neighbours.</span>
</figcaption>
</figure>
<p>The other worry I have – at least in relation to the IMD press release accompanying its rankings – is that the criteria for the rankings in part comes from a “survey of … international executives, which reveals a growing scepticism in some of the 59 economies toward globalisation and the need for economic reforms”.</p>
<p>It is not immediately apparent how results of such a survey precisely inform the rankings. </p>
<p>I’m guessing the reasoning is that scepticism about a country’s “reform agenda” has (everything else constant) a negative impact on a country’s ranking. </p>
<p>If that’s the case, the usefulness or worth of that influence turns entirely on what one means by “reform”. </p>
<p>I have the sense that it means the same-old-same-old, namely, fiscal austerity (or what, for most, except those who believe in the nonsense of “expansionary fiscal consolidation”, is akin to killing the patient in order to cure the disease) to supposedly instill confidence in the minds of private sector investors.</p>
<p>I suspect “reform” also means deregulating labour markets and a general race to the bottom in terms of taxation, particularly on capital. </p>
<p>In that case, for my money, the less of that kind of reform, the higher the ranking should be, not lower - at least if we are ranking the ability of a country to get back on a solid growth footing post GFC.</p>
<p>This might also give one some pause for some scepticism about the slip in the ranking of Australia to the extent it is attributable to the need for further “labour market flexibility” in this country. </p><img src="https://counter.theconversation.com/content/7397/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Graham White does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The IMD World Competitiveness Rankings released this week are worth reflecting on, not so much because of the relative positioning of various countries - including Australia - but rather because of the…Graham White, Associate Professor, School of Economics, University of SydneyLicensed as Creative Commons – attribution, no derivatives.