1. AIPRG CONFERENCE The Competitiveness of Armenian Private Business: Goals and Challenges Role of the CAPS Project Martin Webber, J.E. Austin Associates and Don Niss, Nathan Associates May 17, 2008

2. What would we expect to see in a country that is rapidly pursuing competitiveness?

3. 1.Passion for actionable performance information - actively collecting, understanding and using the data What would we expect to see in a country that is rapidly pursuing competitiveness?

4. 1.Passion for actionable performance information - actively collecting, understanding and using the data 2.Emphasizing key drivers of the competitive economy - value proposition, skills, services, efficiencies What would we expect to see in a country that is rapidly pursuing competitiveness?

5. 1.Passion for actionable performance information - actively collecting, understanding and using the data 2.Emphasizing key drivers of the competitive economy - value proposition, skills, services, efficiencies 3.Constantly improving the environment for business - reducing costs and risks, improving logistics and services What would we expect to see in a country that is rapidly pursuing competitiveness?

6. 4.Targeting sectoral priorities - with clear understanding of competitive market imperatives What would we expect to see in a country that is rapidly pursuing competitiveness?

7. 4.Targeting sectoral priorities - with clear understanding of competitive market imperatives 5.Ensure that the workforce has the skills that competitive business needs. What would we expect to see in a country that is rapidly pursuing competitiveness?

8. 4.Targeting sectoral priorities - with clear understanding of competitive market imperatives 5.Ensure that the workforce has the skills that competitive business needs. 6.Fostering innovation and entrepreneurship. What would we expect to see in a country that is rapidly pursuing competitiveness?

9. 4.Targeting sectoral priorities - with clear understanding of competitive market imperatives 5.Ensure that the workforce has the skills that competitive business needs. 6.Fostering innovation and entrepreneurship. 7.Society-wide awareness of the requirements for competitiveness What would we expect to see in a country that is rapidly pursuing competitiveness?

10. 8.Institutional competitiveness in the public sector. What would we expect to see in a country that is rapidly pursuing competitiveness?

11. 8.Institutional competitiveness in the public sector. 9.Effective, action-focused public-private dialogue What would we expect to see in a country that is rapidly pursuing competitiveness?

12. 8.Institutional competitiveness in the public sector. 9.Effective, action-focused public-private dialogue 10.National value proposition and competitiveness vision What would we expect to see in a country that is rapidly pursuing competitiveness?

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14. 1.Passion for actionable performance information: CAPS Response: –Benchmarking Armenias tourism competitiveness –US-Armenian Diaspora tourism market study –International best practice in IT and innovation policy –International visitors survey –Survey on perception of Armenian pharmaceutical products What would we expect to see in a country that is rapidly pursuing competitiveness?

15. 2.Emphasizing key drivers of the competitive economy CAPS Response: –National Competitiveness Report for Armenia What would we expect to see in a country that is rapidly pursuing competitiveness?

16. 3.Constantly improving the environment for business (decrease costs and risks, improve logistics and services) CAPS Response: –IT Policy Benchmarking Study – IT Master Plan –Review Tourism Law and supporting regulations –Assess tourisms legal environment –EIF tax meetings –Assess impact of Dram appreciation on Armenias IT and tourism sectors What would we expect to see in a country that is rapidly pursuing competitiveness?

17. 4.Targeting sectoral priorities, with clear understanding of competitive market imperatives CAPS Response: –Identify key target markets for the IT, tourism and pharmaceutical sectors –Specific, quantified objectives for cluster achievement –Strategic Action Plans for IT, tourism and pharmaceuticals –Support to government in drafting strategies and action plans for the IT and tourism sectors –Policy and legislative reform priorities in IT, tourism and pharmaceuticals What would we expect to see in a country that is rapidly pursuing competitiveness?

18. 5. Ensure that the workforce has the skills that competitive business needs CAPS Response: –Tourism skills and knowledge needs assessment –Best practices in international IT job certifications –Increase dialogue between private sector and universities –Promote US/Armenia university linkages –Career centers, Career fairs, Pilot internship programs –Training of business service providers What would we expect to see in a country that is rapidly pursuing competitiveness?

19. 6.Fostering innovation and entrepreneurship. CAPS Response: –Partnering with Microsoft and World Bank to sponsor conferences on innovation –New offerings in tourism – adventure tourism and Winter Festival –Training on engineering CAD software –Partnering with Viasphere and EIF on several of capacity building initiatives What would we expect to see in a country that is rapidly pursuing competitiveness?

20. 7.Society-wide awareness of the requirements for competitiveness CAPS Response: –National Competitiveness Report for Armenia –Public information, articles and publicity on the subject of competitiveness –Journalist training –Competitiveness focus in the sector strategies –Tourism and IT cluster conferences What would we expect to see in a country that is rapidly pursuing competitiveness?

21. 8.Institutional competitiveness in the public sector CAPS Response: –Government Master Plans for IT and tourism –Revised structure and mandate for ATDA –Capacity for tourism statistics at NSS and MTED required by industry –Pilot – Dilijan and National Park – information center and signage/trails What would we expect to see in a country that is rapidly pursuing competitiveness?

22. 9.Effective, action-focused public-private dialogue CAPS Response: –IT and tourism cluster competitiveness conferences –Association-led discussions in IT (Leaders without Ties) involving MTED –Tourism and IT meetings to discuss government intervention plans - incorporating associations, government, key industry players and academia What would we expect to see in a country that is rapidly pursuing competitiveness?

23. 10.National value proposition and competitiveness vision CAPS Response: –Included in the Strategic Action Plans –Included on a sectoral level in the new Government Master Plans for tourism and IT –Silicon Valley initiative for IT –Branding assistance about to start in Tourism What would we expect to see in a country that is rapidly pursuing competitiveness?

24. Conclusions CAPS is contributing to these key elements CAPS is only one element of what should be a part of a larger, focused national competitiveness initiative Visit www.caps.am for more information and updateswww.caps.am