AIPRG CONFERENCE The Competitiveness of Armenian Private Business: Goals and Challenges Role of the CAPS Project Martin Webber, J.E. Austin Associates.

AIPRG CONFERENCE

The Competitiveness of Armenian Private Business: Goals and Challenges

Role of the CAPS Project

Martin Webber, J.E. Austin Associatesand Don Niss, Nathan Associates

May 17, 2008

What would we expect to see in What would we expect to see in

a country that is rapidly pursuing a country that is rapidly pursuing competitiveness?competitiveness?

1. Passion for actionable performance information

- actively collecting, understanding and using the data

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

1. Passion for actionable performance information

- actively collecting, understanding and using the data

2. Emphasizing key drivers of the competitive economy

- value proposition, skills, services, efficiencies

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

1. Passion for actionable performance information

- actively collecting, understanding and using the data

2. Emphasizing key drivers of the competitive economy

- value proposition, skills, services, efficiencies

3. Constantly improving the environment for business

- reducing costs and risks, improving logistics and services

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

4. Targeting sectoral priorities

- with clear understanding of competitive market imperatives

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

4. Targeting sectoral priorities

- with clear understanding of competitive market imperatives

5. Ensure that the workforce has the skills that competitive business needs.

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

4. Targeting sectoral priorities

- with clear understanding of competitive market imperatives

5. Ensure that the workforce has the skills that competitive business needs.

6. Fostering innovation and entrepreneurship.

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

4. Targeting sectoral priorities

- with clear understanding of competitive market imperatives

5. Ensure that the workforce has the skills that competitive business needs.

6. Fostering innovation and entrepreneurship.

7. Society-wide awareness of the requirements for competitiveness

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

8. Institutional competitiveness in the public sector.

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

8. Institutional competitiveness in the public sector.

9. Effective, action-focused public-private dialogue

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

8. Institutional competitiveness in the public sector.

9. Effective, action-focused public-private dialogue

10. National value proposition and competitiveness vision 

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

? 

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

1. Passion for actionable performance information:

CAPS Response:– Benchmarking Armenia’s tourism competitiveness– US-Armenian Diaspora tourism market study– International best practice in IT and innovation

policy– International visitors survey– Survey on perception of Armenian pharmaceutical

products

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

2. Emphasizing key drivers of the competitive economy

CAPS Response:– National Competitiveness Report for Armenia

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

3. Constantly improving the environment for business (decrease costs and risks, improve logistics and services)

CAPS Response:– IT Policy Benchmarking Study – IT Master Plan– Review Tourism Law and supporting regulations– Assess tourism’s legal environment– EIF tax meetings – Assess impact of Dram appreciation on Armenia’s

IT and tourism sectors

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

4. Targeting sectoral priorities, with clear understanding of competitive market imperatives

CAPS Response:– Identify key target markets for the IT, tourism and

pharmaceutical sectors– Specific, quantified objectives for cluster

achievement– Strategic Action Plans for IT, tourism and

pharmaceuticals– Support to government in drafting strategies and

action plans for the IT and tourism sectors– Policy and legislative reform priorities in IT, tourism

and pharmaceuticals

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

5. Ensure that the workforce has the skills that competitive business needs

CAPS Response:– Tourism skills and knowledge needs assessment– Best practices in international IT job certifications – Increase dialogue between private sector and

universities– Promote US/Armenia university linkages – Career centers, Career fairs, Pilot internship

programs– Training of business service providers

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

6. Fostering innovation and entrepreneurship. 

CAPS Response:– Partnering with Microsoft and World Bank to

sponsor conferences on innovation– New offerings in tourism – adventure tourism and

Winter Festival– Training on engineering CAD software– Partnering with Viasphere and EIF on several of

capacity building initiatives

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

7. Society-wide awareness of the requirements for competitiveness

CAPS Response:

– National Competitiveness Report for Armenia– Public information, articles and publicity on the

subject of competitiveness– Journalist training– Competitiveness focus in the sector strategies– Tourism and IT cluster conferences

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

8. Institutional competitiveness in the public sector

CAPS Response:– Government Master Plans for IT and tourism– Revised structure and mandate for ATDA– Capacity for tourism statistics at NSS and MTED

required by industry– Pilot – Dilijan and National Park – information

center and signage/trails

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

9. Effective, action-focused public-private dialogue

CAPS Response:– IT and tourism cluster competitiveness

conferences– Association-led discussions in IT (“Leaders

without Ties”) involving MTED– Tourism and IT meetings to discuss government

intervention plans - incorporating associations, government, key industry players and academia

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

10. National value proposition and competitiveness vision 

CAPS Response:– Included in the Strategic Action Plans– Included on a sectoral level in the new Government

Master Plans for tourism and IT– Silicon Valley initiative for IT– Branding assistance about to start in Tourism

What would we expect to see in a country What would we expect to see in a country that is rapidly pursuing competitiveness?that is rapidly pursuing competitiveness?

ConclusionsConclusions

• CAPS is contributing to these key elements

• CAPS is only one element of what should be a part of a larger, focused national competitiveness initiative

• Visit www.caps.am for more information and updates