Thursday, September 14, 2006

specialisation,the key to economy growth in a flat world

in a rapidly globalising world,jobs will gp to the country(/region) where they can be done in the most efficient and cost effective way.this flow of jobs is inevitable.this will mean,in the short term,huge job losses in developed economies.but in the longer term globalisation can benefit these countries more than it harms them.this can be achieved through specialisation,moving up the value chain.let me elaborate with an example...
Today, a large no of jobs in the IT,call center n manufacturing space are moving to India and China from America,the EU and Japan.these are jobs that can be done better in these developing countries.this is causing anti-outsourcing sentiments in these countries.they feel tht if they can stop the outflow of jobs they can continue to live the life they were living.in my (influenced)opinion the solution to thisproblem lies in specialisation.these developed nations need to specialise in what they do best.despite the fact that india and china produce >10 times the engineers produced in the US,the US n EU still lead in the no of quality PhDs produced.this means that though we can produce and service software and products faster and cheaper in India and China,most of the high end innovation will continue to happen in the US n EU.
these countries hav an oportunity to consolidate this position by making investments in education n research.this is specialisation n it is the need of the hour.each country needs to focus itself on certain industries and continue to progress in those industries faster than others.every country today needs to hav an export oriented economy.self sufficiency is no longer a useful motto.

1 Comments:

Blogger Meghna Bhujwala said...

Excellent!! Very analytical!Totally agree to ur point of view!! Great piece of work!! Keep it up n keep bloggin!!

6:13 AM

 

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