Different kinds of competition

If we assume that competitiveness is essential for economic growth, then it is important to explore the reasons why so many people do not like competition. Perhaps we all work with someone who is very competitive that can turn even getting to the water cooler first into a life-and-death rush.  From a developmental perspective many people are uncomfortable with competition, because we have all seen so many people marginalised because of their uncompetitive situation. This despite the depth of academic literature on the importance of competition in allocating resources to the economic actors most able to convert the resources into goods and services productively.

However, we all love it when our favorite sports team out-compete their competitors. So it seems like we all dislike certain aspects of competition, and yet we also like certain aspects of competition.

To explore this topic more I will discuss 3 kinds of competition:

  • the characteristics of individual competitiveness;
  • the characteristics of organisational or team competitiveness; and
  • the characteristics of geographic competitiveness.

The characteristics of individual competitiveness

For the sake of this discussion I will use an individual athlete as an example. For our athlete to be able to compete in the 3000 meter track item, she needs certain clothes and shoes. She must work on her fitness and diet, and may require coaching to master the technical aspects of her item. But this does not yet make her competitive. In order to be competitive, she needs to practice hard. This requires mental and physical discipline, and would require many personal sacrifices. The more she competes, the more she would have to invest not only in participating in different events, but she may require sophisticated shoes, other gadgets, specialised coaching and other costs known only to athletes!

The characteristics of organisational competitiveness

For an organisation to be competitive, it requires more than the right gear, mental and physical discipline of a few individuals and an exercise programme. Organisations, whether it be private or public, needs more. It needs various management systems, protocols (some kind of a language or common code), and different modes of cooperation between individuals. Leadership, different specialised competencies and technology is used to increase the competitiveness of organisations. Think of a racing team, where even if there is a world-famous driver in the seat, need to operate almost like a single organism in order to outperform the other teams. Here it is not enough for one person to be smart, people need to be smart collectively. Leaders who can empower or develop their staff and that can optimise the talents or resources at their disposal can outwit their competitors through a process of ongoing innovation and investment.

The characteristics of geographic competitiveness

For individuals and organisations to compete, the competitiveness of their geographic environment will start to matter at some point. While a amateur athlete or a bakery can operate in many different locations, their ability to compete with their competitors are influenced by their environment. Michael Porter and other authors have all written about this phenomenon.

Places compete through the combinations and relationships between different individuals and organisations, and places where there is a dense interaction between different people seem to outperform places where the interaction and transactions are lower. There is also a relationship between the ability of firms to compete in their own geographic domains and their ability to compete elsewhere. Furthermore, as firms grow and become more competitive, they become more dependent on specialisation both inside the firm and in their environment. This means that places that cannot offer specialised services, either in the form of direct employment or through specialised providers or institutions, will be disadvantaged. To make this even more complicated, there is a relationship between the competitiveness of firms and individuals and the competitiveness of region, and vice versa. Societies or communities that are able to stimulate a competitive process or debate on different developmental or innovative approaches tend to also outperform regions where there are fewer options available due to an inability to manage the tension of a creative search process for different alternatives. For instance, in Germany, many development agencies compete for public funds through innovative bids, forcing these agencies to be creative in their approaches in order to achieve impact and resource optimisation.

Conclusion

We need to stimulate a competitive mindset both in individuals and organisations in order to strengthen the competitiveness of regions. To achieve this, we need to understand the different factors that hamper or stimulate competitiveness at the different levels, and the relationship between the different factors. Attempting to ignore competition and its role in resource optimisation in societies is futile, so we have to work on getting more people thinking about ways to improve competitiveness. The best thing we can do, is to equip the marginalised with the mental and physical discipline. One of the best ways to get these individuals into the race is through training (education) as this develops both the mental and physical discipline that is required to be part of the competition.

Understanding technology for climate change better

I received a book on climate change last year for my birthday called Ten Technologies to Save the Planet. It was a bit odd to receive this gift, as I don’t consider myself to be a tree-hugger. But my friend explained that this book will change my life and answer the many questions that I’ve been asking about how developing countries can engage in climate technology.

Chris Goodall, is a businessman and author of several books on climate change, including Ten technologies to save the planet. Ten Technologies To Save the PlanetThe book is divided into ten chapters, with each chapter focusing on a range of different technologies that are either developed or being developed to address a specific issue. For instance, there is a chapter on wind power that explains the existing technologies available today to utilise the energy created by the wind. There is also a chapter on alternative fuels that also explain and compare the different feedstock that are available for the production of biofuels.

Unfortunately the book does not deal with issues pertaining to economic development. For instance, I wonder how the global environmental and climate technology revolution that is driven by pro-environmental policies in Europe is going to put European and US manufacturers into the next “industrial revolution” while Africa is still a revolution or two behind?  I also wonder how the new climate market systems where companies can trade carbon credits can be used to get developing regions into the global market system. For instance, we have a lot of sunshine and a shortage of electricity generation capacity in South Africa. How can we solve this problem using some of the carbon credits or off-sets of European firms?

But this book is a must-read for development practitioners that are constantly confronted by dreamers who want to become rich or develop industry through investments into “amazing bio-fuel products”. It is now on the top 10 of my favourite books ever. I cannot wait to assess the next value chain for opportunities to reduce energy consumption or to identify opportunities for manufacturing firms to become competitive through better climate technology applications.

Read more about the book on Wikipedia, or visit the Carbon Commentry website where more information on Chris Goodall and issues around Carbon can be found.

I have uploaded all three the books by Chris Goodall onto the mesopartner store at Amazon.

Interview with Natasha Walker on facilitation

On the right hand bar of this site you will find the link to a LEDCast episode that we have just published. In this episode I interview Natasha Walker on facilitation. Natasha is a real guru on facilitation and visualisation. We discuss the essence of facilitation, and share many tips, tricks and discuss some pet hates. The second part of this episode will be published in a few days time. I would love to hear from you!

Participants exploring a topic visually

Participants exploring a topic visually

Natasha in action

Natasha in action

%d bloggers like this: