TAILIEUCHUNG - Competitiveness as an Engine for Economic Growth: Implications for Saudi Arabia

Basic concepts, theoretical underpinnings and mathematical basis underlying optimization models. Problem formulation for programming, preparation of input-output matrix, objective functions and constraint equations. Assumptions of . Basic and non-basic solutions. Feasible and Infeasible solutions. Simplex method and its application for solving agricultural problems, use of artificial factors, Problems of degeneracy, inconsistency, infeasible and unbounded solutions. The generalised simplex method. The dual method; the dual simplex method. . | Competitiveness as an Engine for Economic Growth Implications for Saudi Arabia Professor Michael E. Porter Harvard Business School The Global Competitiveness Forum 2008 January 21 2008 This presentation draws on ideas from Professor Porter s articles and books in particular The Competitive Advantage of Nations The Free Press 1990 Building the Microeconomic Foundations of Competitiveness in The Global Competitiveness Report 2006 World Economic Forum 2006 Clusters and the New Competitive Agenda for Companies and Governments in On Competition Harvard Business School Press 1998 and ongoing research on clusters and competitiveness. No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any means -electronic mechanical photocopying recording or otherwise - without the permission of Michael E. Porter. Further information on Professor Porter s work and the Institute for Strategy and Competitiveness is available at Version January 18 2008 4pm Saudi Arabia s Competitive Position in 2008 The dramatic increase in oil prices has created significant resources and rapid growth for the Saudi economy There is a new level of determination to leverage this opportunity to build a truly competitive economy and diversify beyond natural resources Saudi Arabia can succeed on this path but only if it is willing to take a strategic approach make multiple improvements in its business environment truly open up competition and entrepreneurship in the private sector and embark on a sustained effort to equip Saudi citizens with new skills attitudes and mindsets It will be easy to become impatient and distracted by near term economic growth and the ability to support uncompetitive practices and policies Competitiveness Master 2 Copyright 2008 Professor Michael E. Porter Saudi Arabia s Long-Term Prosperity Index Values 1980 GDP per Capita GDP per Capita GDP per Capita caGr -61 ị cagR 0 00 CAGR 14 1980 1982 .

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