The world’s economy appears to be finding a firmer footing of late and business and governments around the world are ramping up efforts and increasing resources to face new challenges head on.
A report by the World Economic Forum on global competitiveness suggests that the economic success rate in tackling these challenges is based on the appetite and ‘strength’ to compete on a global stage. Introduced in 2004, the annual report, which is based on ‘12 pillars’, defines competitiveness as the institutions, policies, talent and innovation in each country that determine its level of economic health. The pillars are: institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.
Switzerland came top of the rankings and the US moved up two places to third position based on its developments in innovation and its institutions.
Unsurprisingly given the huge inroads Singapore has made in the global economy in the last three decades, it came second. The UK is improving and is placed ninth and the European economies struck hard by recession have improved although they are still placed in relatively low positions – Spain at 35, Greece at 81.
The report recommends that long-term sustainable prosperity can only be achieved through robust structural reform. Therefore countries that have strong foundations will have the confidence and ability to compete.
It sounds obvious, but those foundations include smart investment in people skills which echoes CIPS’ messages involving training, upskilling and keeping up-to-date with innovations. The economies that can attract the top talent and offer a constant stream of new products, and new designs develop longevity in their country’s economic prosperity which results in positive repercussions for the global economy. But one of the most striking recommendations in the report involves inclusion. It stresses that all echelons of society should contribute to and gain from any new prosperity and that everyone has a part to play and should be given a voice in that success. Stronger relationship building is a major part of this, particularly between those who may be seen as natural opponents – governments, business and civil society. It is the strength of those major institutions and their willingness to work effectively together that determines how robust and long-lasting any improvement will be.
The ability to work together, building relationships and talent, is what I take from all this – and how success in one region in the world does not necessarily detract from another but adds to it as the world’s economy becomes more globalised. The world is the sum of its parts.
• 2015 CIPS/Hays salary guide launched
This month sees the launch of the UK CIPS/Hays Salary Guide and Procurement Insight Report 2015, which benchmarks salaries and bonuses and offers insights into the different career paths in the profession.
The findings are based on a survey conducted in October last year among 3,000 professionals – ranging from a number at senior level to those just starting out.
The report reveals that procurement professionals enjoyed pay increases of 2.5 per cent, higher than the national average of 1.7 per cent according to the Office for National Statistics.
And 61 per cent of those in the profession received pay increases last year, which is good news.
And on that positive note, we have also launched a new partnership to support the public sector with ESPO, a not-for-profit public sector buying organisation. Regular, current, content-rich knowledge is crucial to any procurement professional working in the public sector and this partnership should support those who are making taxpayers’ money go further.
Take a look here
☛ David Noble, group CEO, CIPS