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With a complete inhabitants of ninety two million humans, close to common literacy and considerable power assets, significant Asia is an enticing vacation spot for funding and alternate. The area is strategically situated on the crossroads of Europe and Asia, and surrounded via the various world's fastest-growing economies akin to Russia, India and China, who're more and more making an investment within the sector. From 2000 to2009, international direct funding flows into imperative Asia elevated nearly ninefold, whereas the region's gross household product grew on ordinary through 8.2% every year. whereas significant Asia is endowed with many typical and human assets which could force its economies to even better degrees of competitiveness, the negative caliber of the region's enterprise atmosphere is still a massive situation. Key parts for development comprise reinforcing criminal and financial associations; prioritizing the improvement of the small and medium-sized company (SME) area; and construction the ability of commercial middleman corporations. This important Asia Competitiveness Outlook examines the main guidelines that may bring up competitiveness in primary Asia and decrease dependence at the traditional source region, particularly via constructing human capital, enhancing entry to finance, and shooting extra and higher funding possibilities. It used to be performed in collaboration with the area fiscal discussion board lower than the aegis of the OECD imperative Asia Initiative, a local programme that contributes to financial development and competitiveness in Afghanistan, Kazakhstan, the Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan. The Initiative is a part of the broader OECD Eurasia Competitiveness Programme.

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8. Much attention has recently been paid to the functioning of financial markets. The Financial market development pillar captures two major factors that contribute to competitiveness: the efficiency of the financial system as a source of finance for businesses and the stability and trustworthiness of the financial system. 9. Technological readiness reflects a country’s ability to adopt the latest technologies and use them to increase domestic productivity. We distinguish between adoption of technology and technological innovation, as these two factors affect competitiveness in different ways.

This report is the result of a joint effort with the economies of the Central Asia region to enhance their competitiveness by addressing the following questions: ● Which policies to address as a priority to enhance competitiveness? ● What is the most effective way to implement these policies and reforms? ● How to enhance public-private sector dialogue? ● Which indicators measure most accurately the competitiveness performance in the region? Notes 1. The definition of competitiveness proposed by OECD was also adopted by the European Commission as “the ability of companies, industries and regions, nations or supranational regions to generate, while being and remaining exposed to international competition, relatively high factor income and factor employment levels on a sustainable basis” (Pelkmans, J.

Hemmings, P. ”, OECD Economics Department Working Papers, No. 445, September. Kaci, M. (2006), “Understanding Productivity: A Primer”, The Canadian Productivity Review, Ottawa Canada. P. (2006), “Measuring Competitiveness”, IMF Working Paper, WP/06/209, International Monetary Fund, Washington DC. Organisation for Economic Co-operation and Development (OECD) (2002), OECD Manual: Measuring Productivity. Measurement of Aggregate and Industry-Level Productivity Growth, OECD, Paris. 30 COMPETITIVENESS AND PRIVATE SECTOR DEVELOPMENT: CENTRAL ASIA 2011 © OECD 2011 1.

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