Free Market in Its Twenties: Modern Business Decision Making in Central and Eastern Europe

2.1. Preview: Global Forces and CEE Competitiveness

– 101 – CHAPTER IN BRIEF:   Making CEE economies more competitive in the global market is an allimportant task of the region’s business and political leaders.   To improve competitiveness of their businesses, CEE managers need a thorough understanding of the most significant global trends.   Part II offers an overview of these trends and their impact on the future of CEE’s global competitiveness. W hich region/country offers the best opportunities to live and work in after earning my MBA diploma?” This is one of the most frequently asked questions by students in Central and Eastern Europe (CEE). In the past, the answer was quite simple: for many years, the United States was the most wanted career destination. Then, in the 1970s, Europe gained back its attractiveness. It became an equally preferred “port of call” that offered economic and political stability as well as highly developed welfare services. Europe’s prosperity was based on advanced technology, productivity, and democratic values. Today, to be able to respond to our students, we first have to answer the following questions: What does the world look like and what are the short- and longterm perspectives? Who is—or, more important, will be—driving the growth and shaping the world around us? “ GLOBAL FORCES AND CEE COMPETITIVENESS Maria Findrik C h a p t e r 2 . 1 . P R E V I E W : i6 FM.indb 101 2014.06.05. 12:20 – 102 – We live in a multipolar world with three strong, competitive economic powerhouses : the United States, Europe, and emerging countries, particularly China.The next three chapters by Paul Marer, Paul Lacourbe, and John Shattuck investigate each of these focal points of the global economy. My colleagues focus on these regions’ deep interconnections with each other, the rest of the world, and particularly with CEE. The principal takeaway is that while high levels of internationalization and globalization have generated unprecedented opportunities, they also created dangerous regional and global imbalances. Against this background, the three chapters by Michael LaBelle, Bala Mulloth, and Bernadett Koles bring to our attention some new, long-term chalWorld ’s Leading Economies: GDP per Capita Figure 2.1.1. Qatar Norway Switzerland United Arab Emirates Australia Denmark Sweden Canada Netherlands Austria Finland Singapore United States Kuwait Ireland Belgium Japan France Germany Luxembourg 113,633 98,329 97,255 81,161 67,008 65,477 59,928 56,956 50,436 50,355 49,809 49,350 49,271 48,387 47,982 47,613 46,878 45,920 44,008 43,742 S o u r c e : W o r l d E c o n o m i c F o r u m , G l o b a l C o m p e t i t i v e n e s s R e p o r t 2 0 1 2 / 2 0 1 3 ( 2 0 1 2 ) i6 FM.indb 102 2014.06.05. 12:20 – 103 – lenges and trends that transcend geographic boundaries of the above-mentioned pillars of the global economy. The danger of climate change, the rapid infusion of the entrepreneurial spirit in initiatives aimed at solving the world’s thorniest problems, and the coming of age of the first generation of workers who do not remember the world before the digital revolution of the 1990s are trends that are only seemingly unrelated. Binding them together are some centrally important, underlying questions: What makes us satisfied today? What do we need and dream about to have a decent life? Is it material goods, fast-growing consumption, or ever-increasing living standards? Or perhaps advanced welfare services? Or is it more intangible values such as making a positive impact on the lives of others, the natural environment, or future generations? Going even deeper, we should ask about the proper division of labor between governments, businesses, nongovernmental organizations, and academics when responding to the multifaceted challenges that our world faces. One clear conclusion that emerges from my colleagues’ writing is that managers cannot simply assume that political decision makers will do their homework, accurately identifying the competitive advantages and weaknesses of our economies in the constantly reshaping global environment. Businesses and their leaders must actively participate in the process of ever more rapid socio-economic change; if they are not actively leading this change, they should at the very least be ready to adapt to it. Academics, especially business...