As long as the private sector is not overly protected, competitiveness experts Michael Fairbanks and Leonel Guerra think that the country can attain a competitive status in world markets. As told to El Caribe, the country has the opportunity to achieve competitive status in the service sector, manufacturing sector and businesses that focus on natural resources. The tricky part according to the experts is getting the government and the private sector to work together.
Michael Fairbanks, of the On the Frontier Group and Leonel Guerra of the Center for Regional and National Development Center in Mexico are in agreement that if the government provides the infrastructure and incentives and the private sector attracts the business, then the country will be competitive. They pointed out that in the three areas, the challenge is to get the business sector to be sufficiently convinced to go out and get the business and the government to provide the groundwork. As an example, they stressed that rather than concentrate on selling just sun and sand to tourists, the hotel and tourism industry should develop a more sophisticated package that will allow a higher profit margin.
However, they warn that government cannot afford to over-protect local private businesses. A low cost one is not the better working model to attain a competitive position in the market, according to Fairbanks, who pushed for a production system that might emphasize more value added products, rather than low cost and mass production. Both men spoke at the First National Meeting on Clusters, sponsored by the National Council on Competitiveness.