The competitiveness of nations and firms in a global context - implications for poverty alleviation in developing countries

This chapter focuses attention on the human side of national and firm-level competitiveness in a dynamic global business environment. It introduces the concept of human capability development into the business economics literature, arguing that competitiveness depends on the overall capability of people, not only in a technical sense of having required work competencies and applying them efficiently but also on work attitude and behaviours that produce inter-human trust and collaboration. The human capability development construct is defined in terms of the following four sets of factors - (1) the cultural and civil societal characteristics, (2) the overall institutional capabilities of the nation, (3) leadership and governance capabilities, and (4) the global orientation of individuals, organisations and the society as a whole (as well as the integration of firms and institutions within the global family). It argues that competitiveness can only be sustained if an appropriate balance is maintained between these factors which can be of a conflicting nature.