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Ganeshan Wignaraja (edited 2003), Competitiveness Strategy in Developing Countries, London: Routledge in association with the Commonwealth Secretariat. ISBN: 0-415-22836-0 

Globalization and structural adjustment offer many opportunities for export orientated industrialization in developing economies.

As a group, competitiveness in the developing countries has improved, but, while East Asian, economies have had rapid export growth and technological upgrades, South Asian and African economies have lagged behind. Old structures, institutions, behaviourial patterns and public policies are ill-adapted to deal with the challenges posed by technological change and economic liberalization. Consequently there is an urgent need for change in government and private sector attitudes and strategies.

This volume seeks to generate the lessons across developing country and enterprise cases, and sheds light on which trade and industrial strategies and instruments work best, and which do not work, in relation to manufacturing competitiveness.

Globalisation, with falling trade barriers and constantly changing technology, poses an enormous challenge for developing countries.

A world recession and rising oil prices with the threat of a war with Iraq may make matters worse. Old behaviourial patterns and public policies in developing countries are ill-adapted to coping with these challenges.

Heightened global competition means that enterprises in developing countries have to match the productivity and quality standards of the world's best.

It also means that governments have to develop supportive policies to facilitate the process of restructuring in enterprises.

Competitiveness Strategy in Developing Countries introduces best practice policies and institutions for improving competitiveness in an integrated world economy. Leading international contributors including Stan Metcalfe from Manchester University, Christos Pitelis from Cambridge University, Sheila Page from the Overseas Development Institute, Ashley Taylor from the Bank of England and Ganeshan Wignaraja from Maxwell Stamp PLC apply the latest developments in development economics, applied economics and business studies to analysing these issues. Key topics covered include:

* Benchmarking competitiveness performance across countries

* A framework for analysing competitiveness and formulating national policies

* Lessons for managing an effective competitiveness strategy

* International trade policies and negotiation strategies

* Privatisation, regulation and domestic competition policy

* Foreign direct investment policies and promotion

* Science, technology and innovation policy

* Industrial clusters and business development services for small and medium enterprises

* Finance for enterprise development

The volume suggests that whilst past approaches to competitiveness offer some insights, the newer technology and innovation perspective provides the optimal framework for designing policies.

Based on this technology and innovation perspective, it proposes a new competitiveness strategy for developing countries based on: (1) a national partnership involving complementary actions by the government and the private sector; (2) a liberalisation plus approach emphasising a balance between liberalisation and supply-side measures; and (3) where appropriate on economic grounds, cluster policies to foster the emergence of production networks among firms in particular geographical locations and industries.

The new approach emphasises a liberal trade policy, good trade negotiation capabilities, an effective domestic competition regime, a pro-active foreign investment promotion strategy, investments in human capital and enterprise training, comprehensive technology support for small and medium enterprises, ready access to industrial finance and efficient infrastructure.

The book will be of use to all those interested in issues of economic reform, industrial policy, and private sector development in developing and transition economies.

It will be of particular use to the following: for students interested in policy analysis in developing and transition economies on advanced undergraduate and post-graduate courses in development and transition economics, industrial economics and business studies; for policy makers concerned about manufacturing competitiveness problems and market-friendly policy instruments drawing on international best practice; and private sector organisations seeking strategies for industrial restructuring in a open economy and public-private sector partnerships to foster competitiveness.

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