Sunday, 7 February 2010
The Long Game
The U.S. has lost more than 7 million jobs in the past two years. This means that 200,000 net new jobs would have to be created each month for the next seven years to get unemployment back to the (normal) 5%. I hope someone is planning a long game and not 'knee-jerk' policies that might sound good to voters.
Thursday, 4 February 2010
Productivity or Jobs
A recent letter to the Denver Post complained about $200k of 'stimulus money' being spent on road signs. The response was to suggest that the letter-writer did not understand stimulus spending (what an intelligent defence!). But it also - in the context of climbing out of the recession - leads to the old question about whether productivity creates jobs or kills jobs.
Of course in the short term it can do either ... but in the longer term it creates many more jobs than it might kill. Try decreasing productivity, see how competitive you become and see how many jobs you save.
Of course in the short term it can do either ... but in the longer term it creates many more jobs than it might kill. Try decreasing productivity, see how competitive you become and see how many jobs you save.
Sunday, 31 January 2010
Linking performance to pay in Sri Lanka
The Employers Federation of Ceylon (Sri Lanka)(EFC), with International Labour Organisation (ILO) assistance, has conducted a study of the SME (Small and Medium Enterprises) sector to identify training needs for SMEs.
Business planning and productivity enhancement were identified as the key priority areas which needed attention with regard to these enterprises according to the EFC. As a follow up to the findings of the study, the EFC will identify SMEs that need training in these areas and will provide a training package for them. This is to be done with the assistance of some of the larger enterprises within the EFC membership.
The EFC believes that through this training package these SMEs would obtain the required assistance in making their businesses more vibrant and sustainable. The EFC has identified employment generation and productivity improvement as two main areas of activity to promote the Decent Work Country Programme in Sri Lanka.
Enhancing productivity has been one of the key policy directions that has been identified in the Ten Year Horizon Development Framework under labour policies. The EFC says that it has taken positive steps in this direction through productivity linked payments.
The EFC is happy to record that during the calendar year 2009, out of 41 collective agreements that were signed between employers and trade unions, 13 agreements include productivity/performance based incentive payments.
Business planning and productivity enhancement were identified as the key priority areas which needed attention with regard to these enterprises according to the EFC. As a follow up to the findings of the study, the EFC will identify SMEs that need training in these areas and will provide a training package for them. This is to be done with the assistance of some of the larger enterprises within the EFC membership.
The EFC believes that through this training package these SMEs would obtain the required assistance in making their businesses more vibrant and sustainable. The EFC has identified employment generation and productivity improvement as two main areas of activity to promote the Decent Work Country Programme in Sri Lanka.
Enhancing productivity has been one of the key policy directions that has been identified in the Ten Year Horizon Development Framework under labour policies. The EFC says that it has taken positive steps in this direction through productivity linked payments.
The EFC is happy to record that during the calendar year 2009, out of 41 collective agreements that were signed between employers and trade unions, 13 agreements include productivity/performance based incentive payments.
Friday, 29 January 2010
Film highlights need for new forms of humantiarian aid
The devastating impact of global warming on communities worldwide is the subject of a powerful Sundance documentary aiming to put a human face on climate change.
Michael Nash's film - Climate Refugees - is a compelling look at the millions of humans displaced by disasters arising from incremental and rapid ecological changes to the environment and more frequent extreme weather events such as hurricanes, cyclones, fires and tornadoes.
Nash said the millions affected by climate change suffered because there was no international law that gave protection to environmental or climate refugees.
"We need to create another organization through the United Nations, or a completely separate organization that is going to take care of the humanitarian aspects of our changing climate," he said.
Michael Nash's film - Climate Refugees - is a compelling look at the millions of humans displaced by disasters arising from incremental and rapid ecological changes to the environment and more frequent extreme weather events such as hurricanes, cyclones, fires and tornadoes.
Nash said the millions affected by climate change suffered because there was no international law that gave protection to environmental or climate refugees.
"We need to create another organization through the United Nations, or a completely separate organization that is going to take care of the humanitarian aspects of our changing climate," he said.
Thursday, 28 January 2010
More than one way to ...
Most developed nations - and many less-developed nations - have been through a similar economic crisis over the last couple of years. Yet, there have been several approaches to dealing with this crisis, reflecting the fact that there are several views on how to deal with any specific problem - depending on particular history, culture, state of economic development, politics, etc.
If one looks at results it suggests that the US is handling the situation rather better than most European nations - with growth approaching 3% during 2009.
Of course 'success' in the short term does not necessarily signal success in the longer term. It will be interesting to look back in 2015 or so and see whether real lessons can be learnt about how best to tackle such a situation.
If one looks at results it suggests that the US is handling the situation rather better than most European nations - with growth approaching 3% during 2009.
Of course 'success' in the short term does not necessarily signal success in the longer term. It will be interesting to look back in 2015 or so and see whether real lessons can be learnt about how best to tackle such a situation.
Monday, 25 January 2010
Call to change US focus
The sole focus on profit maximization, which leads to offshoring and holds down wages, does not serve the nation. This must change. And it must change before the damage to our economic ability is irreversible.
This is a quote from a blog in the Huffington Post by Ralph Gomory (See http://bit.ly/5HRbLV for full post) as he argues that the US needs to concentrate on fundamental productivity and GDP growth - and then sharing the gains of that growth.
This is a quote from a blog in the Huffington Post by Ralph Gomory (See http://bit.ly/5HRbLV for full post) as he argues that the US needs to concentrate on fundamental productivity and GDP growth - and then sharing the gains of that growth.
Sunday, 24 January 2010
Bulgaria joins the race
Ilian Mihov, INSEAD Professor recently nominated to become Bulgaria’s Deputy Prime Minister, suggests that state policies should focus on achieving higher labour productivity.
“If Bulgaria becomes as rich per capita as Singapore, we will have fulfilled our goal. This will be a very hard task, but why not? 30-40 years ago Singapore was poorer than Angola but with mobilization, innovations this is possible, and Singapore is now richer than the USA. It has proven this is possible. There is no problem for Bulgaria to become a country of hi-tech and innovations in 20-30 years,” Mihov told Darik Radio on Saturday.
He stressed the fact that companies in Bulgaria must become more efficient and that obstacles to entrepreneurship must be removed.
“If Bulgaria becomes as rich per capita as Singapore, we will have fulfilled our goal. This will be a very hard task, but why not? 30-40 years ago Singapore was poorer than Angola but with mobilization, innovations this is possible, and Singapore is now richer than the USA. It has proven this is possible. There is no problem for Bulgaria to become a country of hi-tech and innovations in 20-30 years,” Mihov told Darik Radio on Saturday.
He stressed the fact that companies in Bulgaria must become more efficient and that obstacles to entrepreneurship must be removed.
Subscribe to:
Posts (Atom)
Posts
