As we emerge slowly from the first global recession since World War II, many governments have taken a more proactive approach to boost growth and competitiveness, and many business leaders support these efforts. Given the fragility of the business and economic climate—and strained public coffers—the responsibility to get policy right is acute.
Experience shows that governments have, at best, a mixed record in this regard. An important reason why public intervention in markets has been hit or miss is that action has tended to be based on academic and policy research that has looked through an economy-wide lens to understand competitiveness—in other words, whether one country is "more competitive" than another. This approach has all too often failed to capture the fact that the conditions that promote competitiveness differ significantly from sector to sector—and so, therefore, do the most effective potential regulations and policies.
To read the full, original article click on this link: McKinsey & Company - Report - How to compete and grow: A sector guide to policy - March 2010
Author: McKinsey & Company
