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How Countries Compete: Strategy, Structure, and Government in the Global Economy, by Richard H. K. Vietor
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Business and political leaders often talk about what their respective countries must do to compete in the world economy. But what does it really mean for a country to compete, and how do they do this successfully? As the world has globalized, countries develop strategies to compete for the markets, technologies, and skills that will raise their standards of living. These government strategies can make - or break - a nation's efforts to drive and sustain growth. In How Countries Compete: Strategy, Structure and Government in the Global Economy, Richard Vietor shows how governments set direction and create the climate for a nation's economic development and profitable private enterprise. Drawing on history, economic analysis, and interviews with executives and officials around the globe, Vietor provides rich and insightful examinations of different government approaches to growth and development - leading to both success and failure. Individual chapters focus on the unique social, economic, cultural, and historical forces that shape governments' approach to economic growth. The countries discussed include: China, India, Japan, Singapore, the United States Mexico, Russia, Saudi Arabia, and South Africa. Vietor challenges the widespread notion that, in market-driven economies such as the United States, a strong government can only hinder business success. A provocative account and a rich resource, How Countries Compete offers potent insights into how the business environment has evolved in crucial nations—and what its trajectory might look like in the future.
- Sales Rank: #763691 in Books
- Brand: Brand: Harvard Business Review Press
- Published on: 2007-03-13
- Original language: English
- Number of items: 1
- Dimensions: 9.20" h x 1.14" w x 6.30" l, 1.34 pounds
- Binding: Hardcover
- 320 pages
- Used Book in Good Condition
From Booklist
Vietor, an academic, argues that government strategy matters in setting the direction and creating the climate for a nation's economic development and profitable private enterprise. Drawing from history, economic analysis, and extensive interviews, he examines different governments' approaches to growth and development leading to success or failure in the context of their unique social, economic, cultural, and historic influences. The author considers the current environment and suggests a future direction for China, India, Japan, Singapore, the U.S., Mexico, Russia, Saudi Arabia, and South Africa. He explores at length the high growth in Asia; structural adjustments of institutions and other problems in South America, Africa and the Middle East; and deficits, debt, and stagnation in the developed world. He tells us "Riyadh and Mumbai are no longer very far from New York and Brussels, instantaneously [connected] by Internet--a single global economy with increasingly integrated markets, political problems, and social issues." Although all country-risk analysts may not agree with Vietor, he offers a valuable perspective. Mary Whaley
Copyright © American Library Association. All rights reserved
From the Back Cover
As countries rush to compete in an increasingly globalized arena, government strategy matters more than ever.
Countries around the world are jockeying more fiercely than ever for the markets, technologies, skills, foreign investment, and distribution channels needed to grow their economies and raise their standard of living. In our thoroughly globalized world, the specific strategies of these national governments will wither make-or break-their efforts to drive and sustain growth, reduce poverty, accommodate urbanization, and create jobs.
In How Countries Compete: Strategy, Structure, and Government in the Global Economy, Richard H. K. Vietor shows how governments both set the direction and create the climate for a nation's economic development and profitable private enterprise. Vietor points out that in today's hypercompetitive environment, government invariably provides many of the distinctive advantages that firms need to go head to head with rivals. These advantages include high tax savings and low interest rates for investment, sound property rights and good governance, a workforce, a low rate of inflation, and a rapidly expanding domestic market.
Drawing on history, economic analysis, and interviews with executives and officials around the globe, Vietor provides vivid and insightful examinations of different approaches to government strategy, leading to both success and failure. Separate chapters highlight important countries-including China, India, Japan, Singapore, and the United States, as well as Mexico, Russia, Saudi Arabia, South Africa, and Italy-and reveal the unique social, economic, cultural, and historical forces that determine a country's trajectory. Vietor also challenges the widespread notion that in market-driven economies, such as the United States, a strong government can only hinder business success.
A provocative account and a rich resource, How Countries Compete offers potent insights into how the business environment has evolved in crucial nations-and what its trajectory might look like in the future.
About the Author
Richard Vietor is the Senator John Heinz Professor of Environmental Management at the Harvard Graduate School of Business Administration, where he teaches courses on the regulation of business and the international political economy.
Most helpful customer reviews
16 of 19 people found the following review helpful.
Good information, little analysis (and many stylistic stumbles)
By Ulrich Ernst
I expected great things from this book. After all, when your very title takes issue with Paul Krugman ("countries don't compete, firms do"), one counts on intriguing new insights. Alas, not here. It is a collection of very nice, albeit somewhat opinionated capsule economic histories in ten countries, from South Africa to the US. As you move along, you finally realize that countries are not competing with each other. They are "competing to grow," shaped by "four elements of successful economic development: (1) national strategy, (2) economic structure, (3) resource development, and (4) efficient use of resources." The compilation of interesting facts about each particular case can come in handy, but it is very difficult to see how these facts add up to lead to the ten success factors presented at the end of the book: (1) basic property rights, at best temporary fiscal deficits, higher savings and investment rates, strong central banks, sound microeconomic policies, labor market flexibility, avoiding the resource curse (for resource-rich countries), low levels of corruption, an acceptable income distribution, and adequate current balances.
Anyway, it would be a nice little book for reference, but it is marred by what appears to be a dearth of editorial talent over at the folks of Harvard Business School Press. There is Japan going down to "unconditional defeat." (p. 25) In Malaysia, the "majority (5.98 [sic] percent was Malaysian." (p. 41) In China, "the majority of the investment came from expatriot Chinese ..." (presumably still flashing their Super Bowl rings, p. 65) There is reference to a "John" Hopkins University, and the Southern African Development Community is rendered as "South African," and there are incomplete sentences ("The World Bank estimated that SOE productivity was -1.2 percent annually." P. 65).
Finally, there is a certain element of what one might consider an often peculiar perspective. Putin does very well in the description of the Russian experience. Italy (and Europe in general) might as well throw in the towel, according to Vietor's views. There is an intriguing observation that "... [b]ound by their roots, most Italians are unwilling to relocate even when offered higher-paying jobs." (p. 207) That must have come as quite a surprise to the Italians who represented the first wave of Gastarbeiter in Germany in the 1950s, and their descendants. Right next to it is the gem that "[d]espite a high population density, Italy had the lowest birthrate in Europe." (also p. 207) Does that mean that countries with low population densities normally have low birthrates? And then there is President Bill Clinton "imposing a significant tax on energy (British thermal units, or BTUs, which release carbon dioxide when burned.)" Presumably American thermal units don't do that. And there is much more.
All in all, for those who expected to get a new perspective on the competitiveness debate--and I certainly agree that government actions can make, or often break, efforts by private enterprise to compete--will walk away disappointed.
4 of 7 people found the following review helpful.
Enlightening
By Luis Etchevers
I think it is a very well written book. It has a lot of very interesting and meaningful information on history, economics and countries' social lives.
The author tries to introduce you in a timely fashion on the situational scenario the countries he covers were at a particular point in time, describes the challenges and advantages and how and why they managed to get to where they are.
It is easy to read and highly advisable especially for the ones that haven't had the chance to look at some facts related to some Asian countries.
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0 of 1 people found the following review helpful.
Interesting Book
By Alexandre M. Barbosa
A interesting book if you would like understand how countries have developed and became what they are now !
Unfortunately there is no Brasil there as we talk a lot of time about the "BRICS" !
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