Productivity News
Indonesia must improve infrastructure to continue economic growth
Jakarta remains the largest city in the world without a metro
The progress made by the Indonesian economy over the last decade is nothing short of remarkable, transitioning from an incredibly poor country to one of the stars of the emerging investment world. In the past three years the Indonesian economy has more than tripled. However, in the wake of slowing global growth and a concomitant decrease in demand for commodities, investors are starting to take a closer look at the fundamentals of the Indonesian economy. Simply, Indonesia needs to improve its infrastructure and productivity if the country hopes to continue its enviable growth rate. Infrastructure in the archipelago is sorely lacking – Jakarta remains the largest city in the world without a metro and the city’s traffi c problems belie the necessity of public transit solutions. Other segments of the economy are hampered by the lack of adequate infrastructure from aviation to freight transport as airports, roads, and ports are insuffi cient.
Management Services Winter 2012
9
Ireland is among top 10 EU countries for innovation, says competitiveness report
The European Commission has recently released its 2012 Competitiveness Report which indicates that Ireland is among the top 10 EU countries for ‘innovation’, and has a highly skilled workforce, and many technologically advanced fi rms. It indicates that Ireland shows rising productivity in manufacturing but on the negative side access to funding for SMEs in Ireland has deteriorated to second worst in the EU.
The new industrial performance scoreboard contained in the report looks at the member states’ industrial performance in fi ve key areas: manufacturing productivity, export performance, innovation and sustainability, the business environment and infrastructure, and fi nance and investment.
Based on the results of these indicators the ‘consistent performers’, whose industries are dominated by technologically advanced fi rms and whose workforces are highly skilled. This group includes: Germany, Denmark, Finland, Sweden, Austria, Ireland, the Netherlands, the UK, Belgium and France. The report can be viewed at
http://ec.europa. eu/enterprise/policies/industrial-competitiveness/ competitiveness-analysis/european- competitiveness-report/fi les/ecr2012_full_en.pdf.
Productivity affected by traffi c congestion
Traffi c in Europe is increasing, according to the latest ‘congestion index’ by navigation producer TomTom. It was found that Istanbul has the worst traffi c congestion of the 58 cities looked at in the survey. Traffi c congestion results in a number of issues relating to lost productivity – transporting goods becomes harder and deliveries are made late, congestion creates extra fuel costs and of course, environmental costs.
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