Ivan Mikloš Deputy prime minister of the Government of the Slovak Republic responsible for economic affairs Bratislava 22 November 2004 COMPETITIVENESS STRATEGY OF SLOVAKIA UNTIL 2010 Lisbon Strategy for Slovaki a

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november SLOVAKIA NEEDS TO MAINTAIN HIGH AND LONG-TERM ECONOMIC GROWTH HIGH AND LONG-TERM ECONOMIC GROWTH IS THE ONLY WAY FOR US TO REACH THE LIVING STANDARD OF THE MOST DEVELOPED EUROPEAN COUNTRIES AS FAST AS POSSIBLE

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november THE SLOVAK ECONOMY IS CURRENTLY IN THE BEGINNING OF A NEW DEVELOPMENT STAGE CENTRALLY-PLANNED ECONOMY FULLY FUNCTIONAL MARKET ECONOMY KNOWLEDGE ECONOMY OBJECTIVES OF THE GOVERNMENT‘S ECONOMIC POLICY creation of the basic market institutions, mechanisms and environment key structural reforms required for the creation of conditions for the long-term economic growth ???

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november NEW ECONOMIC STRATEGY IS THEREFORE NECESSARY TO GUARANTEE HIGH AND FAST GROWTH THE SLOVAK REPUBLIC IS CURRENTLY EXCEPTIONALLY ATTRACTIVE FOR PRODUCTION AIMED AT EXPORT –perfect conditions for the investors thanks to the structural reforms carried out –main advantages: stable macro economy flexible labour market low taxes educated and cheap workforce HOWEVER, IN THE HORIZON OF YEARS SOME INVESTORS ARE LIKELY TO MOVE FURTHER EAST –with growing wages – which is the main priority of the government – the attractiveness of the Slovak Republic for the production focused on cheap assembly with low added value will decrease IT IS THEREFORE NECESSARY TO HAVE A VISION AND ACT NOW –the government must anticipate and improve the conditions for the production of innovative products and services with high added value already now

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november SLOVAKIA NEEDS TO ADOPT ITS OWN SOLUTION ON THE BASIS OF THE EU LISBON STRATEGY BASIS OF THE STRATEGY: INCREASING COMPETITIVENESS OF THE SLOVAK ECONOMY –the state can increase the national competitiveness by: improving conditions for the market functioning taking active steps in those areas where the market fails IT IS ALSO THE MAIN OBJECTIVE OF THE EU LISBON STRATEGY –The Lisbon Strategy is a basis for the economic policy of each EU member country –so far it was not very successful due to: the lack of political will to fulfil the strategy the lack of focus on those areas which are the most important for the given country SLOVAKIA IS THE FIRST EU COUNTRY THAT WILL HAVE ITS NATIONAL LISBON STRATEGY WITH ITS OWN PRIORITIES –in future it will be an obligation for all EU countries

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november IN THE PREPARATION OF THE STRATEGY WE HAVE USED THE NEWEST KNOWLEDGE AND EXPERIENCE FROM THE WORLD EXPERIENCE FROM OTHER COUNTRIES –especially experience from the successful EU countries (Ireland, Finland, Estonia) STUDIES AND EXPERTISE FROM INTERNATIONAL INSTITUTIONS –European Commission –World bank –top world universities (e.g. Harvard University, Stockholm School of Economics) –World Economic Forum, IMD

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november THE STRATEGY IS BASED ON TWO PILLARS I. COMPLETION OF STRUCTURAL REFORMS AND MAINTAINING THEIR POSITIVE RESULTS II. PRIORITY DEVELOPMENT AREAS – FOCUS ON KNOWLEDGE ECONOMY –basic principles which must be observed at their completion and possible future changes –main areas: macroeconomic and fiscal area social area health care and pension insurance –vision, basic objectives and main policies for reaching each basic objective –main areas: human resources and education information society business environment science, R&D, and innovations

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november THE STATE SHOULD PLAY 3 MAIN ROLES IN THE DEVELOPMENT OF KNOWLEDGE ECONOMY STATE SCENCE, R&D, AND INNOVATIONS SCENCE, R&D, AND INNOVATIONS EDUCATION AND HUMAN RESOURCES EDUCATION AND HUMAN RESOURCES INFORMATION SOCIETY INFORMATION SOCIETY BUSINESS ENVIRONMENT BUSINESS ENVIRONMENT 1. Macroeconomic environment 2. Content of sector policies 3. Coordination of sector policies

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november HUMAN RESOURCES AND EDUCATION – MAIN OBJECTIVES MODERN EDUCATIONAL POLICY ACHIEVING HIGH EMPLOYMENT RATE COPING WITH DEMOGRAPHIC CHANGES

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november INFORMATION SOCIETY – MAIN OBJECTIVES INFORMATION LITERACY EFFECTIVE E-GOVERNMENT AND MODERN ON-LINE PUBLIC SERVICES WIDE INTERNET ACCESSIBILITY

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november SCIENCE, R&D, AND INNOVATIONS – MAIN OBJECTIVES EDUCATION AND SUPPORT OF EXPERT SCIENTISTS RESEARCH COMPARABLE WITH THE INTERNATIONAL STANDARD AND APPROPRIATELY INTERCONNECTED WITH THE BUSINESS SECTOR EFFECTIVE PUBLIC SUPPORT OF BUSINESS ACTIVITIES AIMED AT RESEARCH AND INNOVATIONS

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november BUSINESS ENVIRONMENT – MAIN OBJECTIVES HIGH EFFICIENCY OF LAW ENFORCEMENT A HIGH-QUALITY PHYSICAL INFRASTRUCTURE AND SERVICES IN THE NETWORK INDUSTRIES PUBLIC INSTITUTIONS AS A PARTNER RATHER THAN A BURDEN EFFECTIVE ACCESS TO CAPITAL MARKET FOR ALL ENTERPRISES

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november STRATEGY FINANCING STATE BUDGET RESOURCES –higher and more efficient financing of the priority areas... –... through the reduction of other expenses reduction of inefficiency in the state administration reduction of expenditures in areas which are not in compliance with priorities of this strategy EUROPEAN UNION RESOURCES –creating better conditions for higher EU funding from structural funds from other EU spending programmes (e.g. funds for financing science and innovations) PRIVATE RESOURCES –by improving the environment and motivational mechanisms for the private sector to invest more in these areas

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november WHAT WILL FOLLOW GENERAL PUBLIC DISCUSSION ON THE LEVEL OF EXPERTS ABOUT THE PROPOSED STRATEGY –the strategy may only be successful if it involves general consensus of the expert public and directly concerned parts of the society APPROVAL OF THE STRATEGY BY THE GOVERNMENT OF THE SR –based on the assignment of the SR Government of June 2004 it will be jointly submitted by the Vice-Chairman of the Government for Economy and Vice-Chairman of the Government for European Integration ACTION PLANS FOR ALL 4 AREAS FOR THE NEXT TWO YEARS –they will include concrete steps within individual policies to reach the given objectives, deadlines and institutions/persons responsible for their fulfilment EXPLICIT PART OF THE PROGRAMME OF THE NEXT GOVERNMENT (?) –all progressive political parties should offer their programme solutions within their election campaigns, of how to fulfil these objectives for the benefit of the Slovak citizens

Stratégia rozvoja konkurencieschopnosti Slovenska do roku 2010 Bratislava 22. november CONCRETE ACTIVITIES FOR THE FULFILMENT OF THE STRATEGY OBJECTIVES ON WHICH WE ARE WORKING ALREADY IMPROVEMENT OF THE SYSTEM OF SCIENCE FUNDING –together with the Ministry of Education of the SR we are preparing a new act on the funding of science it is fully in accordance with the objectives and policies of this strategy it should, apart from other things, provide higher and more efficient funding of top Slovak scientists and research in its preparation we also cooperate with universities and SAV (Slovak Academy of Sciences) IMPROVING ACCESS TO THE CAPITAL MARKET –we are starting a preparation of concrete package of activities for the development of the risk capital market in Sovakia (soon likely in cooperation with the World Bank) –we consider starting active cooperation with some neighbouring countries aiming at a creation of Central European stock exchange

Ivan Mikloš Vice-Chairman of the Government of the Slovak Republic for Economy Bratislava 22. November 2004 STRATEGY OF THE DEVELOPMENT OF SLOVAKIA’s COMPETITIVENESS UNTIL 2010 Lisbon Strategy for Slovaki a