US experts draw up 11-point formula for building up competitiveness

A team of experts that specializes in helping industries in the Third World beat their rivals, have come out with an 11-point formula to guide Philippine industries and their partners in government.

The J.E. Austin Associates, led by Harvard economist James Austin, released the guideline in preparation for its three-month work of helping the export sector in the country build sound competitive strategies during the review and revision of the Philippine Export Development Plan.

The approach is based on 11 guiding principles, Austin says.

Number One. The approach is not intended to be a comprehensive private sector development project. It is focused on building competitive strategies and improving the enabling environment for these strategies. Whenever possible, the competitiveness approach informs and links with ongoing programs to achieve specific objectives.

Number two. Work bottom up versus top down. It works with industry clusters to help them craft their strategies, identify three to four top priorities that necessarily involve some action by government or other stakeholders. Efforts are made at consensus-building to harmonize priorities, set follow-up action.

Number three. Design action plans based on group and individual firm views. The competitive approach works with business clusters and other business groups to identify priorities and decide on actions and desired outcomes. The inputs of individual firms in target sectors will feed into and help shape the agenda for action and improve the quality of analysis.

Number four. Provide objective data and analysis first; move on to controversial areas later. Inputs that do not present ideological views or critiques of policy, but that clearly point out weaknesses in either the private sector or its supporting platform tend to generate enthusiasm for tackling problems, instead of inflaming political differences. It will lay the groundwork for more subjective follow-on analyses and action.

Number five. Focus on early wins to create momentum in the public-private arena. The approach identifies targets of opportunity where the government and the private sector basically agree on the actions to be taken and there is a political will to bring about change. Focusing on "project wins" is the best means to build confidence and momentum in private-public cooperation.

Number six. Clearly identify problems and obtain stakeholders’ agreement on solutions. Top to bottom commitment from government, the private sector and labor groups are secured for them to "buy-in to solutions.

Number seven. Provide demand-driven facilitation and assistance. Because the success of the competitiveness process ultimately depends on the participants’ commitment to carry it out and on their willingness to devote resources to it, self-selection by entities wanting to improve their competitiveness offers (our team) the best opportunities for short-term success.

Number eight. Avoid picking winners and losers. It is not the role of government or the competitiveness team to try to determine which industries may have relatively more likelihood of being competitive. The decisions as to whether to participate are primarily demand-driven by the participants themselves. The approach initially selects four to six pilot industries from among those that have demonstrated willingness and readiness to participate as main focus for competitive strategy development.

Number nine. Tackle timely win-win challenges early to promote credibility. The approach delivers early returns to the industry participants, and indeed, to all stakeholders. It rides the wave of existing private sector priority and initiatives.

Number 10. This is a process-oriented approach, not a study or series of studies. The clusters and their stakeholders achieve concrete results. The role of the competitive team is to facilitate this process and to provide specific analytical inputs, data or technical assistance where it is needed.

Number 11. All throughout, the process demands involvement and active participation of a wide representation of the stakeholders in the economy. – Philexport News & Features