International experts: There is too big governmental intervention in business processes in Latvia (3)
Turiba University on 31st March held an XVII INTERNATIONAL SCIENTIFIC CONFERENCE “COMPETITIVE COMPANIES IN COMPETITIVE COUNTRY”, which brought together researchers and experts of various sectors, as well as students of university who presented their researches.
During the conference all participants had the opportunity to listen to experts of competitiveness from Switzerland, Germany and Latvia.
OECD Center’s in Berlin director Heino Von Meyer talking about the challenges and opportunities of competitiveness from the OECD point of view stressed how important is to concentrate on rising the efficiency of manufacturing. Representative of OECD pointed to Latvia’s achievements and outlined the main problems: income imbalances, high level of dissatisfaction of the society, as well as too big governmental intervention in business processes. As the main recommendations he mentioned work on the productivity and promoting the society, improvement of the system of education focusing on vocational training issues, also the promoting the competitiveness of the business environment by reducing barriers for investments and providing support to innovative companies.
World Economics Forum's Competitiveness and risk research group’s leading economist Caroline Galvan talking about the global and regional trends of the competitiveness outlined Latvia’s economic situation comparing with other countries pointing that, although after the consequences of the recession the situation had improved, Latvia’s competitiveness index had been lowered last year. The main problem factors of economy in Latvia are taxes, bureaucracy and lack of access to finance. It was pointed out that it is very important for Latvia to move on the talents and knowledge based economy.
IMD World Competitiveness Center’s leading economist Christos Cabolis talking about the competitiveness in Latvia outlined the facts based on the data of the IMD World Competitiveness Center and he noted that Latvia in comparison with neighbour countries- Estonia and Lithuania- has obtained the lowest rating. He stressed out the state’s role in making the environment where the companies could work and create values. At the end it was concluded that there is a need to work on efficiency of government administration, have to promote the stability of environment of economics and especially have to take care of citizens and employeed talent’s development.
Baltics leading market intelligence and export company’s “GatewayBaltic” business development manager Martin Tiknuss talking about the competitiveness from the export’s point of view noted that export development of Latvia’s companies can significantly contribute their competitiveness, but companies have to develop the activities of subcontractors, focus on a specific niche and the main thing- cooperate by sharing experience and competence.
Within the conference was held a round table discussion led by Andrejs Jakobsons, the member of Association of Economists of Latvia. In the discussion their opinions and experiences shared Arnis Sauka- associated professor of Stockholm School of Economics in Riga, Vita Zarina- the professor of Turiba University, the Dean of the Faculty of Business Administration, Daina Paula- the chief economist of administration of monetary policy’s macroeconomic analysis division in Latvian Bank, Lija Strasuna- the senior economist in Swedbank, as well as international experts- Heino Von Meyer, Caroline Galvan and Christos Cabolis. The participants of the discussion shared the results of their research about competitiveness and its influencing factors.
During the discussion it was stressed out that companies that do not pay taxes significantly impair their and country’s competitiveness development. It was also noted that in the Latvian business environment are not enough activities to increase business operating capacity, because it requires extensive resources.
Experts also stressed out that competitiveness can be enhanced by arranging tax policy, business infrastructure, access to finance, as well as pointed out that competitive companies are the ones that can adapt to the changing business environment. Experts also pointed out that the important factor is trust from the society, but the society does not believe to official statistics so much.
Speaking about the imperfections and weaknesses it was pointed out that despite that in Latvia can get a good education, especially higher education, there is lack of international experience, also have to work on developing vocational trainings, have to promote state and public sector’s cooperation jointly finding solutions. Conclusion of the participants of the discussion- everything starts with the workforce and its knowledge, in the absence of a knowledgeable workforce gets lost competitiveness too. They also recognized that an important condition for the competitiveness of the company is a good corporate culture, the company's attitude towards employees and their talent development.
Presentations of conference’s leading experts can be viewed on website of Turiba University.