Colombia and Its Competitiveness Compared

8/6/2019 Colombia and Its Competitiveness Compared

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FUNDACIN UNIVERSIDAD DEL NORTE

2011

Colombia and its

competitiveness

comparedCaribbean Region Case

Lina Vanessa Prez Triana

E S C U E L A D E N E G O C I O S I N T E R N A T I O N A L B U S I N E S S P R O G R A M


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Colombia and its competitiveness compared 2011

E s c u e l a d e N e g o c i o s I n t e r n a t i o n a l B u s i n e s s P r o g r a m Pgina 2

Content

Introduction........................................................................................................................................................................ 3

Competitiveness Compared ..................................................................................................................................... 4

Colombia Profile ................................................................................................................................................................. 5

Poland Profile ....................................................................................................................................................................... 6

Morocco Profile ................................................................................................................................................................... 7

Korea Profile ......................................................................................................................................................................... 8

Malaysia Profile ................................................................................................................................................................... 9

Caribbean Region and Michael Porter ............................................................................................................ 10

Conclusions ...................................................................................................................................................................... 12


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Introduction

Most of the decisions taken right now are an issue of competitiveness, which is why as

International Business Student it is a must for me to understand how this characteristic is

analyzed around the planet.

Specifically with Colombia, and is the objective of this workshop, I would like to mention how

it is positioned in the planet in front of 5 countries. These countries where chosen with the

following criteria:

1 per continent Not the best economy Not the worst economy It is or has been in the spotlight

With these criteria, we are going to contrast Colombian Profile and determine how it is better

or worse.

Then in the second part, we are going to seen what the Caribbean Region need or has improve

its competitiveness according to Michael Porters Suggestion of 2007.

Finally, we are going to conclude seeing how is competitiveness as region can compete

globally, based on the four nations that were chosen.


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COLOMBIAN PROFILE

Colombian is one of the most growing

countries in the western hemisphere. It

has been along the growing of the

region and, has about 9000 dollars as

GDP per capita.

Talking about the Global Competitiveness Index,

Colombia was ranked 68th of 139. A regular, but

satisfactory, position taking into account the

named and sounded problems that faces thecountry.

Its important to highlight that in thisindex, the best result appeared in:

Investment protection, Customer

Orientation, Rigidity of Employment. In

these terms, most of the problem seen

in Colombia try to limit of are obstacles for International Investment. In these order, the

Government has to look for policies that allow the international market to adapt into

Colombian Market and vice versa.

The picture is kind of this one: a good

system for education a health, a huge

market with interesting characteristics,with technology, finances and labor market

in a very average state but with a very

demanding innovation factor that seems to be the one that does not let the country become

the most important economy.


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However, the development on these institutions and the interest of improving what is not

good is the idea that places us is the stage 2 of development. Meaning that, we are on our way

of becoming innovator and taking out of the box the strenghts that demarks ourpassion.

Europe: POLONIA

As happened with Colombia, this

country has followed the tendency of

its region. However, and it is

possibly a consequence of the

environment that rounds it, the GDP

per capita is around 15.000 USD. Which means that its cost

of living is more expensive an, therefore, their consumption

is bigger.

It is ranked 39th in the GCI. And, as it has better scores than

Colombia. However it has 2 specific good aspects that

Colombia does not: Trade Tariffs and Legal Regulations.

Which means, not everything is support by laws and tariffs.

This must be taking into account, because as we case in the

web, International Investment is also retreated. However

its context makes it a very attractive market.

We can see that almost everything is better

than Colombia, but in Innovation, we have

almost the same level. Seeing that this is very

been by investors and that is the one we must

improve to let them in.

Finally, Poland is in transition into Improver, of

course this country is support by the European

Union and the characteristics that round itsenvironment gives it a very high

competitiveness.


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Africa: Morocco

Different from Colombia, Morocco has not grown the

same speed as its region. It has around 3000 USD per

Capita, from around 9000 that its region counts with.

This means Morocco is not part of the general cases

of Africa.

Comparin

g with Colombia, the scores are lower, except for

the one on Basic Requirements where Morocco has

a better calcification.

Generally, all its scores are average; none of them

are below 20 points which means it is out of the

league. Different from Colombia, its system of

Institutions seems very established and growing.

The same perspective can be seen in the

Competitiveness Web. In general Matters

Colombia is better score in most of the pillars;

however Morocco is more developed in terms of

education, Health and Macroeconomic

Environment.

This positions Morocco in the

Transition between Factors driven to

efficiency driven. The important

matter of being in a transition stage

is that the country is actually

changing and for good issues.

Finally it is important to highlight

that from all countries we have seen;

everyone has the same score on

Innovation. This can mean that the

competitiveness index is looking for international

investment facilities and these can just be

measured throughout innovation.


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America: Guatemala

Of Guatemala we have to highlight

that its growing is not in the same

rhythm as the rest of the region.

Its growing is minimal comparing

with for example, Colombia. So it is

that its GDP per capita is around

3000 USD.

Comparing its Global

Competitiveness Index, its scores a lower even than morocco s. This means that development

in terms of Competitive matters is slow and retarding. When you think about the possibilities

that Guatemala has it makes you wonder how that is possible. Let us remember that

Guatemala is the biggest economy in Central America and is part of the CACM.

The important in here is the fact that this

country is part of our international

environment, and that there is a big possibility

that this country is an international partner

due to the fact that it is close to Colombia. And

that if it has that condition this could affect,

indirectly, in what Colombia would take as

Commerce Policy.

Finally it is important to see that Guatemala is

also in the phase of transition between factor

and efficiency, this means that, it is taking the

steps to grow economically talking.


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Asia: KOREA

As being one of the most

influencing economies in the

world, Korea has achieved a

lot in, relatively, few years. It

has a sustainably growing that

is compared with the one of

the other advanced

economies. Its GDP per capita

is around 30000 USD, which

means its cost of living is very

high and it worth it.

It is an Innovator, because it has proved it. Its multiple industries and the variety of ideas withthe ones they come up, give the country the

possibility of having many international investors,

and it is seeing as one of the most attractive

places.

Evidently, its scores are better than Colombias.

This is an economy that grows everyday.

Colombia is being very intelligent trying to settle

down the TLC with this country. The Market is

Huge and the response is always positive. The

only matter that can be taken into account to keepan eye on it is the political stability, it has always

been in the guard of international security, and

therefore the measures taken to achieve these

goals are always very extremist.

Finally it is important to notice the

innovation in this country. From all the ones

that we have seen this is the one with thehighest scores that is also why is it considers

a chief in Innovation.


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Asia: MALAYSIA

Malaysia is a very interesting case.

Its GDP per capita is above the

average of its region. Growth that

had suffer this last 10 years is a

boom they are earning around

12000 each person, which is,

comparing with the rest of

developing Asia, a very high living

standards.

Malaysia is first places in many of the indicators.

This denotes the fact that is one of the most

productive and improving Countries in theworld. It is close to Singapore, which can be

taken into account by international investors,

seeing that both countries seem to have a very

high standard of living and therefore a powerful

consumer mass.

Finally, the adaptation of Malaysia to Western

Culture has improved its international policies

and has made possible a number of TLCs with

different nations.

It is also know as of the driven of Asia Pacific

Region.

Finally, as hoped, IT is considered an

efficiency driven, above of Colombia but in

the same stage. This can mean to our

country a good Case to learn from and to

take some good strategies as models tofollow.


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CARIBEAN REGION AND MICHAEL

PORTER

To close this workshop is to contrast the performance of our Region, with the competitiveness

we have been talking about. For this objective we are going to compare the current

environment of the Caribbean region with the five suggestions Michael Porter gave in 2007

when he analyzed the competitiveness of our country.

1. Competitiveness ModelAccording to Michael Porter we had to change our competitiveness model into one that takes

advantages of its institutions but making an economy, smartly, with its neighborhoods.

In my opinion, The Caribbean Region has had the possibility to achieve this goal. The differentrelations it has establish, between Venezuela, panama, Miami and some other zone, give the

world the image a consolidate region.

2. Manage Strategic WeaknessesThis is given by Porter, saying that we have to manage the stability and security in our favor.

Also, that we had to work on our property rights, Legal system, taxes and infrastructure,

among others.

According to this, Caribbean Region is still lacking this matter. The most important event is

the winter destruction. If the region would have taken advantage of its weaknesses it had

manage the situation without having to worry about winter destruction in less than 2 months.

3. Clusters DevelopmentIn here, Porter is very clear emphasizing and saying that this development CANNOT be

subsidized.

In the Caribbean Region the development of Clusters has growth very fast in the last years.

The improvement on ort infrastructure, legal support, logistics Platform and BPOs, has given

the region a difference contrasting with the rest of the country.


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4. Private Sector InternationalizationThe name says everything. And it has as an objective, give more participation to international

investors in the development of the country.

Specifically in the Caribbean Region, this phenomenon has not stopped for a minute. The

presence of international enterprises, n the region is now very clear. They are opening storesevery month and are given a god reference about our country.

5. Regional DevelopmentIt is clear. If Colombia wants to growth, their region has to growth. Not just because of the

independence they can have on destining their resources, but because the differences among

region is so huge that the policies can be apply in general sense, they have to be customized

according to the region.

This can be seen in the Vota Region Caribe campaign that took place the last elections.

The support was unanimous, and the ideas are a lot. However the initiatives are still cold.


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CONCLUSIONS

Colombia is ranked in an average position among Competitiveness Index because it has

improved a lot since 2000. However, there a lot of economies that are growing and other that

are already settle down in their positions.

The matter in here is that Colombia has to learn from those who have given an example to the

world and give initiative to its international position.

Finally, I would like to say that this workshop gave me the possibility of thinking about some

other places for investment and for looking for international commerce partners.

Documents

Colombia and Its Competitiveness Compared