Harnessing Quality for Global Competitiveness in Eastern Europe and Central Asia
In many countries in Eastern Europe and Central Asia (ECA), the National Quality Infrastructure (NQI) does not support business competitiveness, though this is one of its functions in organization for economic co-operation and development countries...
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| Language: | English |
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World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000386194_20110518053843 http://hdl.handle.net/10986/2305 |
| Summary: | In many countries in Eastern Europe and
Central Asia (ECA), the National Quality Infrastructure
(NQI) does not support business competitiveness, though this
is one of its functions in organization for economic
co-operation and development countries. In most of the
Commonwealth of Independent States (CIS) countries, it even
impedes competitiveness. The most common economic benefits
of adopting standards include increased productive and
innovative efficiency. Standards lead to economies of scale,
allowing suppliers to achieve lower costs per unit by
producing large, homogeneous batches of products. Standards
spur and disseminate innovation, solve coordination
failures, and facilitate the development of profitable
networks. Participation in world trade increasingly requires
that suppliers comply with standards determined by lead
buyers in global value chains. The nature of participation
in the global economy has changed dramatically over the past
two decades. Rarely do producers turn raw materials into
final products and sell them directly to customers.
Improving the quality of goods and services and diversifying
into sectors where quality matters can be a sustainable
source of global competitiveness. Some of the productive
tasks associated with high-quality goods have high learning
and technological externalities. In those sectors, producers
tend to form tight relationships with global buyers who
transfer their knowledge and support the producers'
quality-upgrading processes. Diversifying into a broad range
of sectors also reduces macroeconomic volatility, but
quality upgrading becomes necessary to enter new sectors
that compete on quality. |
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