the competitive advantage of nations and regions: implications … files/2011-0325... ·...

1 Copyright © 2011 Professor Michael E. Porter20110325 – Trinidad and Tobago –FINAL – post-event edits - prepared by RA Stacie Rabinowitz

The Competitive Advantage of Nations and Regions: Implications for the

Caribbean

Professor Michael E. PorterHarvard Business School

Distinguished Leadership and Innovation Conference

Trinidad and TobagoMarch 25, 2011

This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990),“Building the Microeconomic Foundations of Competitiveness,” in The Global Competitiveness Report (World Economic Forum), “Clusters and the NewCompetitive Agenda for Companies and Governments” in On Competition (Harvard Business School Press, 2008), and ongoing research on clusters andcompetitiveness. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic,mechanical, photocopying, recording, or otherwise - without the permission of Michael E. Porter. Further information on Professor Porter’s work and theInstitute for Strategy and Competitiveness is available at www.isc.hbs.edu


The Caribbean Region in 2011

• The Caribbean nations are recovering from a sharp global crisis

• However, the region is not progressing rapidly enough in driving economic and prosperity growth

• Caribbean countries need strategies to improve competitiveness and drive fundamental economic reform


PPP-adjusted GDP per Capita, 2010 ($USD)

Growth of Real GDP per Capita (PPP-adjusted), CAGR, 2000-2010Note: Aruba not included in averageSource: EIU (2011), authors calculations

Differences in Prosperity PerformanceCaribbean Countries

Unweighted Average: 4.45%

Unweighted Average: $10,290

Caribbean countries

Other Latin American countries

Antigua & Barbuda

Aruba ($138,146)

Bahamas

Barbados ($64,730)

Cuba

Dominica

Dominican RepublicGrenada

Guyana

Haiti

Jamaica

St Kitts & Nevis

St Lucia

St Vincents & the Grenadines

Suriname

Trinidad and Tobago

Belize

Nicaragua

Costa Rica

Guatemala

Panama

Venezuela

Argentina

Bolivia

Brazil

Chile

ColombiaEcuador

Honduras

Mexico

Paraguay

Peru

Uruguay

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

0% 2% 4% 6% 8% 10% 12%


Income InequalitySelected CountriesIndex of

Inequality (2006)*

Note: * latest data available used (in some cases earlier years data used). Source: World Bank, World Development Indicators, 2008, United Nations University (UNU-WIDER)

Change in Inequality (2002-2006)

Decreasing Equality Improving Equality

High Inequality

Low Inequality

NicaraguaHonduras

United States

Venezuela

Mexico

Uruguay

Costa Rica

Colombia

Panama

Brazil

Ecuador

Chile

Argentina

GuatemalaPeru

BoliviaDominican Republic Puerto Rico

El SalvadorJamaica

The Bahamas

Trinidad and Tobago

20

25

30

35

40

45

50

55

60

-15 -10 -5 0 5 10 15

Caribbean countries

Other American countries


Sources of Prosperity

Inherited Prosperity

• Prosperity derived from inherited natural resources– Prosperity is limited

• Focus on dividing the pie• Government becomes the central

actor in the economy• Resource revenues fuel corruption

and allow unproductive policies and practices to persist

Created Prosperity

• Prosperity resulting from productivityin producing goods and services

– Prosperity is unlimited

• Expands the pie• Companies are the central actors in

the economy• Government’s role is to create the

enabling conditions for productivity and foster private sector development


What is Competitiveness?

• Only competitive businesses can create wealth and jobs

• Nations compete to offer the most productive environment for business• The public and private sectors play different but interrelated roles in

creating a productive economy

• Competitiveness is the productivity with which a nation uses its human, capital, and natural resources.

– Productivity sets the sustainable standard of living (wages, returns on capital, returns on natural resources)

– It is not what industries a nation competes in that matters for prosperity, but how productively it competes in those industries

– Productivity in a national economy arises from a combination of domestic and foreign firms


Labor Productivity PerformanceSelected Latin American Countries, 2000 - 2010

Growth of real GDP per employee (PPP-adjusted), 2000 to 2010

Real GDP per employee (PPP

adjusted US$), 2010

Note: Trinidad &Tobago data is heavily biased due to natural gas exports and may overstate productivity Source: authors calculation Groningen Growth and Development Centre (2011), EIU (2011)

Latin America average: 1.17%

Latin America average: $19,676

Argentina

Barbados

Bolivia

Brazil

Chile

ColombiaCosta Rica

Dominican RepublicEcuador

Guatemala

Jamaica

Mexico

Peru

St. Lucia

Trinidad & Tobago

Uruguay

Venezuela

$0

$10,000

$20,000

$30,000

$40,000

$50,000

-2% -1% 0% 1% 2% 3% 4% 5%

Caribbean countries

Other Latin American countries


Labor Participation RateSelected Countries

Source: EIU (2011)

0%

10%

20%

30%

40%

50%

60%

70%

Chi

na

Can

ada

Bra

zil

Rus

sia

Japa

n

Uni

ted

Stat

es

Uru

guay

Jam

aica

Dom

inic

an R

epub

lic

El S

alva

dor

Para

guay

Trin

idad

and

Tob

ago

Cos

ta R

ica

Bol

ivia

Cub

a

Vene

zuel

aH

ondu

ras

Col

ombi

a

Chi

le

Mex

ico

Pana

ma

Arg

entin

a

Indi

a

Nic

arag

ua

Peru

Ecua

dor

Gua

tem

ala

Labor Participation Rate


What Determines Competitiveness?

Endowments

• Endowments create a foundation for prosperity, but true prosperity is created by productivity in the use of endowments


Macroeconomic Competitiveness

MacroeconomicPolicies

SocialInfrastructure and PoliticalInstitutions


Endowments

• Macroeconomic competitiveness sets the potential for high productivity, but is not sufficient• Endowments create a foundation for prosperity, but true prosperity is created by productivity in the use

of endowments




Microeconomic Competitiveness

Sophisticationof Company

Operations andStrategy

Quality of the NationalBusiness

Environment



State of Cluster Development


Endowments

• Productivity ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition

• Macroeconomic competitiveness sets the potential for high productivity, but is not sufficient• Endowments create a foundation for prosperity, but true prosperity is created by productivity in the use

of endowments




•

• Fiscal policy– Government surplus/deficit– Government debt

• Monetary policy– Inflation– Business cycle management– Savings

Macroeconomic Policies

•

• Human development– Basic education– Health

• Political institutions– Political freedom– Voice and accountability– Political stability– Government effectiveness– Decentralization of economic policymaking

• Rule of law– Security – Civil rights– Judicial independence– Efficiency of legal framework– Freedom from corruption

Social Infrastructure and Political Institutions


Macroeconomic Competitiveness: Human Development

Source: World Bank, Human Development Index 2011

Country

GDP per capita rank

Human Development Rank

Life expectancy index Education index

Barbados 3 37 62

Bahamas 42 64 55

Panama 47 50 60

Suriname 53 108 106

Trinidad and Tobago 58 106 83

Dominican Republic 69 83 108

Costa Rica 72 30 95

Belize 82 42 74

Guatemala 85 104 133

El Salvador 89 97 100

Guyana 91 117 85

Jamaica 99 87 77

Honduras 106 84 111


Aruba

Barbad

osSt. K

itts A

nd Nev

is

St. Vince

nt And The G

renad

ines

Antigua A

nd Barb

uda

Dominica

Costa Rica

Trinidad

And Tobag

o

Jamaic

aEl S

alvad

orSurin

ame

Dominica

n Rep

ublic

HondurasGuate

mala

Haiti

Voice and AccountabilityPolitical StabilityGovernment EffectivenessRegulatory QualityRule of LawControl of Corruption

Macroeconomic Competitiveness: Governance

Note: Sorted left to right by decreasing average value across all indicators. The ‘zero’ horizontal line corresponds to the median country’s average value across all indicators.Source: World Bank (2011)

Worstcountry in the world

Index of Governance

Quality,2009

Best country in the world


Macroeconomic Competitiveness: Corruption

Change in Rank, Global Corruption Report, 2003 to 2009

Rank in Global Corruption Index, 2009

Worsening Improving

Source:Global Corruption Report, 2010

Cuba

Trinidad and Tobago

Jamaica

El Salvador

Dominican Republic

Haiti

Canada

USAChile Uruguay

Costa Rica

BrazilColombia, Peru

MexicoPanama

Nicaragua

Argentina

Guatemala

Venezuela

BoliviaHonduras

Ecuador

Paraguay

High corruption

Low corruption

Caribbean countries

Other American countries


Competitiveness and Poverty Reduction

EconomicDevelopment

• There is a strong connection between economic and socialdevelopment

• Improving competitiveness and decreasing poverty requires improving the economic and social context simultaneously

Social Development







Environment





Endowments

The external business environment conditions

that enable company productivity and

innovation


Quality of the National Business EnvironmentContext for

Firm Strategy

and Rivalry

Related and Supporting Industries

Factor(Input)

ConditionsDemand

Conditions

• Sophisticated and demanding local customers and needs

– e.g., Strict quality, safety, and environmental standards

– Consumer protection laws

• Many things matter for competitiveness• Successful economic development is a process of successive upgrading, in which the

business environment improves to enable increasingly sophisticated ways of competing

• Local rules and incentives that encourage investment and productivity

– e.g. incentives for capital investments, intellectual property protection, corporate governance standards

• Open and vigorous local competition– Openness to foreign competition– Fair competition laws

• Access to high quality business inputs

– Human resources– Capital availability– Physical infrastructure– Administrative infrastructure (e.g.,

permitting, land registration)– Scientific and technological

infrastructure– Efficient access to natural

endowments• Availability of suppliers and supporting

industries


0

20

40

60

80

100

120

140

160

180

Doing Business

Protectin

g Inve

storsGett

ing Credit

Trading Acro

ss Borders

Startin

g a Busines

s

Dealin

g with

Constructi

on Permits

Paying Tax

esEnforcing Contra

ctsReg

isteri

ng Property

Closing a Business

Microeconomic Competitiveness: Ease of Doing Business Trinidad and Tobago, 2011

Ranking, 2011 (vs. 183 countries)

Source: World Bank Report, Doing Business (2011).

Favorable Unfavorable

Trinidad and Tobago’s per capita

GDP rank: 63


0

20

40

60

80

100

120

140

160

180

Ease o

f Doing B

usiness R

ank

Paying Tax

es

Dealin

g with

Constr

uction Perm

its

Trading A

cross B

orders

Getting C

reditClosing a B

usiness

Regist

ering Pro

perty

Startin

g a Busines

sEnforc

ing Contra

ctsPro

tectin

g Inve

stors


Favorable Unfavorable

Suriname’s per capita GDP rank: 57

Ranking, 2011 (vs. 183 countries)

Microeconomic Competitiveness: Ease of Doing Business Suriname, 2011


0

20

40

60

80

100

120

140

160

180

Puerto R

icoSt L

ucia

Antigua &

Barb

uda

St Vince

nts & th

e Gren

adines

Bahamas

Jamaic

aEl S

alvador

St Kitts

& N

evis

Dominica

Dominican R

epublic

Grenad

a

Trinidad

and Tobago

Belize

Guyana

Suriname

Haiti


Favorable UnfavorableRanking, 2011 (vs. 183 countries)

Microeconomic Competitiveness: Ease of Doing Business Caribbean Nations, 2011


The Business Environment in the CaribbeanSelected Issues

• Low skills

• Brain drain

• Bureaucracy and red tape

• Weak property and contractual rights

• Barriers to domestic and international competition, despite significant progress in removing barriers within the region

• High communication costs

• Limited sophistication of company strategies

• Low innovative capacity







Environment





Endowments

A critical mass of firms and institutions in each

field to harness efficiencies and externalities across

related entities



24 Copyright © 2011 Professor Michael E. Porter20110325 – Trinidad and Tobago –FINAL – post-event edits - prepared by RA Stacie RabinowitzSources: HBS student team research (2003) - Peter Tynan, Chai McConnell, Alexandra West, Jean Hayden

Hotels

Attractions andActivities

e.g., theme parks, casinos, sports

Airlines, Cruise Ships

Travel agents Tour operators

Restaurants

PropertyServices

MaintenanceServices

Government agenciese.g. Australian Tourism Commission,

Great Barrier Reef Authority

Educational Institutionse.g. James Cook University,

Cairns College of TAFE

Industry Groupse.g. Queensland Tourism

Industry Council

FoodSuppliers

Public Relations & Market Research

Services

Local retail, health care, andother services

Souvenirs, Duty Free

Banks,Foreign

Exchange

Local Transportation

State of Cluster DevelopmentTourism Cluster in Cairns, Australia


Kenya’s Cut Flower Cluster

Sources: MOC student team research by Kusi Hornberger, Nick Ndiritu, Lalo Ponce-Brito, Melesse Tashu, Tijan Watt, Harvard Business School, 2007

Government Agencies, NGOs & Industry Associations

Education, Research & Quality Standards Organizations

FlowerFarming

Post-HarvestHandling;

Transport toMarket

FreightForwarders

Clearing andForwarding

Agents

Air Carriers(Commercial /

Charters)

PlantstockTrade & Industry Associations

Kenya Flower Council (KFC)Fresh Produce Exporters Association of Kenya (FPEAK)

Regional Growers Associations e.g., North & South Kinangop; Lake Naivasha, etcGreenhouse;Shading

Structures

Pre-CoolingTechnology

Irrigationtechnology

Grading /Packaging Sheds

Post-HarvestCooling

Technology

AgriculturalCluster

HorticulturalCluster

(Fruits & Vegetables)

Public universities with post graduate degrees inhorticulture:

University of Nairobi; Jomo Kenyatta University of Agriculture & Technology

Horticultural Crops Development Authority (HCDA)Government Export Policies targeting Horticulture

Government Policy for Revitalizing Agriculture; National Export Strategy; ExportPromotion Council (EPC)

Fertilizers,pesticides,herbicides

Research Institutions:Kenya Agricultural Research Institute (KARI)

International Center for Insect Physiology and Ecology (ICIPE)

RefrigeratedTrucks

Quality & Standards:EUREGAP Standard (UK & Dutch Supermarkets)

Kenya Plant Health Inspectorate Services (KEPHIS)

Non-Governmental OrganizationsThe Rural Enterprise Agri-Business Promotion Project (USAID, CARE, IFAD)

Horticultural Produce Handling Facilities Project (JBIC)

Packaging &LabelingMaterials

TourismCluster




Factor Conditions

Factor Conditions

Demand ConditionsDemand

Conditions

Assessing Cluster StrengthDominican Republic Tourism Cluster

Context for Firm Strategy and Rivalry

Context for Firm Strategy and Rivalry

+ Long beaches, stable sunshine, and beautiful inland area with extensive Flora and Fauna

+ Many cultural and historical heritage sites

+ Good airport connectivity+ Definpro, Infratur units of Central Bank

to finance tourism projects+ Special tourism police– Inadequate language skills of local

employees– Limited local infrastructure

Source: Based on research by HBS student team (Baruch Barrera, Penelopa Gjurcilova, Stacie Rabinowitz, Hiroki Suemori), 2007

+ Large, competitive but almost exclusively foreign-owned hotel industry

+ No visa required for residents of most major tourist nations

– Focus on all-inclusive offerings with limited local spending

– Local institutions discriminate against natives

+ Significant presence of local suppliers (food, cleaning, gardening, etc.)+ Existence of Asonahores hotel association + Some regional cooperation (e.g., marketing for Cricket World Cup) – Lack of complimentary industry like restaurants, shopping, events, etc. – Most travel agencies / tour bookers located outside region– Lack of coordination/strategy in Ministry of Tourism– No participation in regional IFCs (e.g., CTO)

+ High-end demand in local pockets around Punta Cana

– Lack of sophisticated local demand


Change in Jamaica’s world export market share, 1999 – 2009 Exports of US$5 Million = Source: Prof. Michael E. Porter, International Cluster Competitiveness Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director. Underlying data drawn from the UN Commodity Trade Statistics Database and the IMF BOP statistics.

Change in Jamaica’s average world export share: - 0.021%

Jamaica’s average world export share: 0.028%

Rising Exports

Declining Exports

Change (99-09)

Hospitality and Tourism

Metal Mining & Mfg.

(-0.158%)

Transportation and Logistics

Agricultural ProductsOil and

Gas Products

Chemical Products

Communications Services (-0.421%)

Processed Food

Business Services

Construction Materials

Financial Services

Biopharmaceuticals

Fishing and Fishing Products Plastics0.000%

0.050%

0.100%

0.150%

0.200%

0.250%

-0.05% -0.04% -0.03% -0.02% -0.01% 0.00% 0.01% 0.02%

National Cluster Export PortfolioJamaica, 1999-2009

Jam

aica

’s w

orld

exp

ort m

arke

t sha

re, 2

009


Aerospace Vehicles &

Defense

FurnitureBuilding Fixtures,

Equipment & Services

Fishing & Fishing Products

Hospitality & TourismAgricultural

Products

Transportation & Logistics

Cluster Linkages and Economic Diversification

Plastics

Oil & Gas

Chemical Products

Biopharma-ceuticals

Power Generation

Lightning & ElectricalEquipment

Financial Services

Publishing & Printing

Communi-cations

Equipment

Aerospace Engines

Business Services

DistributionServices

Forest Products

Heavy Construction

Services

ConstructionMaterials

Prefabricated Enclosures

Heavy Machinery

Sporting & Recreation

Goods

Automotive

Production Technology

Motor Driven Products

Mining & Metal Manufacturing

Apparel

Leather & Related Products

Jewelry & Precious Metals

Textiles

Footwear

Processed Food

Tobacco

Enter-tainment

Information Tech.

Medical Devices

Analytical InstrumentsEducation &

Knowledge Creation

Note: Clusters with overlapping borders or identical shading have at least 20% overlap (by number of industries) in both directions.


LQ, or Location Quotient, measures the country’s share in cluster exports relative to its overall share of world exports. An LQ > 1 indicates an above average export share in a cluster.

Aerospace Vehicles &

Defense

FurnitureBuilding Fixtures,

Equipment & Services

Fishing & Fishing Products

Hospitality & TourismAgricultural

Products

Transportation & Logistics

Cluster Linkages and Economic DiversificationBarbados, 2009

Plastics

Oil & Gas

Chemical Products

Biopharma-ceuticals

Power Generation

Lightning & ElectricalEquipment

Financial Services

Publishing & Printing

Aerospace Engines

Business Services

DistributionServices

Forest Products

Heavy Construction

Services

ConstructionMaterials

Prefabricated Enclosures

Heavy Machinery

Sporting & Recreation

Goods

Automotive

Production TechnologyMotor Driven

Products

Mining & Metal Manufacturing

Apparel

Leather & Related Products

Jewelry & Precious

Metals

Textiles

Footwear

Processed Food

Tobacco

Enter-tainment

Information Tech.

Medical Devices

Analytical InstrumentsEducation &

Knowledge Creation

LQ > 1.5

LQ > 1.0

LQ > 0.5

Communi-cations

Equipment


The Evolution of Regional EconomiesSan Diego

U.S. Military

CommunicationsEquipment

Sporting Goods

Analytical Instruments

Power Generation

Aerospace Vehiclesand Defense

Transportationand Logistics

Information Technology

1910 1930 1950 19901970

Bioscience Bioscience Research Centers

Geography

Climate and

Geography

Hospitality and Tourism

Medical Devices

Biotech / Pharmaceuticals

Education andKnowledge Creation


Clusters and Economic Diversification

Grow related clusters

Grow new industrieswithin existing clusters

Attract multinationalsto anchor new clusters

Upgrade the sophistication of existing export products

and services

32 Copyright 2010 @ Professor Michael E. PorterVietnam Competitiveness 20101130 – v8 Mon Nov 22 10AM






Environment





Endowments

The internal skills, capabilities, and

management practices needed for companies to attain the highest level of

productivity and innovation possible




Leading Companies with Cross-Regional PresenceCompany Home Base Other

Regional Locations

Industry/Industries

Ansa McAl Trinidad & Tobago 7 Conglomerate (manufacturing, brewing, insurance, finance, real estate, media, shipping, trading/ distribution, automotive and industrial equipment retailing)

Banks Holdings Barbados 3 BeveragesCaribbean Broilers Jamaica 4 Poultry, feed milling, cattle rearing, beef production and fish farming

with value-added processed food productsCave Shepherd Barbados 9 Retail (duty free), financial services, tourism (attractions, cruise

terminal)Goddard Enterprise Barbados 8 Airline catering, industrial and restaurant catering, meat processing,

bakery operations, automobile retail and automotive parts, real estate, the manufacture of aerosols and liquid detergents, investments, rum distilling, general trading, packaging, fish and shrimp processing, property rentals, general insurance, financing as well as shipping agents and stevedoring

Grace Kennedy and Co. Ltd.

Jamaica 7 Food processing/distribution, banking and finance, insurance and remittance services, building materials retailing

Harris Paints Barbados 4 Paints, coatings, adhesives, sealants, roof sealers, caulks and solventsGTM Guyana 3 InsuranceGuardian Holdings Trinidad & Tobago 7 Life, health, property and casualty insurance; pensions and asset

managementNeal and Massy Trinidad & Tobago 7 Auto and industrial equipment; energy and industrial gases; financial

and real estate; food processing, distribution, and retailing; tourism and hospitality; IT, communications, and security

Republic Bank Trinidad & Tobago 4 BankingS.M. Jaleel Trinidad & Tobago 5 BeveragesSagicor Barbados 11 Insurance, banking and investment management, farm capitalTCL Trinidad & Tobago 5 Cement and other ready-mix building materialsUnited Insurance Barbados 10 Insurance

Source: CARICOM


Geographic Influences on Competitiveness

Neighboring Countries

Regions and Cities

Nation


Competitiveness and the Neighborhood

• Opening trade and investment among neighbors

– Expands the available market

– A nation’s neighbors are its most natural trading and investment partners

– The natural path of internationalization for local firms is the neighborhood

– Open trade and investment make each country a more attractive location for investment

• Economic coordination to drive improvements in the business environment– Capture synergies in policy and infrastructure

– Gain greater clout in international negotiations

• External agreements to help overcome domestic political and economic barriers to reform


Competitiveness Upgrading Among NeighborsCapturing Synergies

Business Environment Macroeconomic Policy

Political Institutions and

GovernanceFactor Conditions• Improving the efficiency and interconnectivity of

transportation infrastructure• Enhancing regional communications• Creating an efficient energy network• Linking financial markets• Opening the movement of students for

training or higher education Context for Strategy and Rivalry• Eliminating trade and investment barriers within

the region• Simplifying and harmonizing cross-border

regulations, paperwork and visas• Coordinating antitrust and competition policiesDemand Conditions• Harmonizing environmental and energy

standards• Harmonizing product safety standards• Establishing reciprocal consumer protection

laws• Opening government procurement within the

regionRelated and Supporting Industries• Facilitating cross-border cluster upgrading

• Sharing bestpractices in government operations

• Creating regional institutions

– e.g., disaster relief– Dispute resolution

mechanisms– Economic

statistics

• Developing a regional approach with international organizations

• Coordinating macroeconomicpolicies

• Coordinated financial market rules

• Strong regional development bank


Roads

AirportsPorts

Logistic Corridor

Strategy for Cross-National RegionsCentral American Logistical Corridor

Mexico

Belize

Honduras

El SalvadorNicaragua

Costa Rica Panama

Guatemala

Country Boundary


The Context for Regional Collaboration in the Caribbean

• Similarities in natural conditions and historical legacies

• Significant heterogeneity in economic performance

• Direct competition within the region in, for example, tourism and finance

• An overlapping system of regional organizations and groupings

• Some encouraging progress has been made in regional collaboration in the last few years

• Overall, the Caribbean still lacks effective mechanisms for sustaining an integrated competitiveness agenda that will benefit participating countries


The Process of Economic DevelopmentShifting Roles and Responsibilities

Old Model

• The central government drives economic development through policy decisions, spending and incentives

New Model

• Economic development is a collaborative process involving government at multiple levels, companies, educational and research institutions, and private sector organizations

• Competitiveness is the result of both top-down and bottom-up processes in which many individuals, companies, and institutions take relevant decisions


• A prioritized agenda to create a uniquecompetitive position for a country or region

• Implementing best practices in each policy area

• There are a huge number of policy areas that matter

• No country can or should try to make progress in all areas simultaneously

Policy

Improvement

Economic

Strategy

The Need for an Economic Strategy


National Value Proposition

Creating A National Economic Strategy

• The distinctive competitive position of the nation in its region and the world economy

Developing Unique Strengths Addressing Crucial Constraints

• Unique strengths relative to peers/neighbors

• Strong existing and emerging clusters to build upon

• Weaknesses or constraints that must be addressed if the country is to move to the next level

• Priorities and sequencing are fundamental to successful economic development

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