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Garelli: For Economic Growth, New Markets and Clean Technology are Needed

-In order to increase competitiveness, several conditions must be met: the legislation must be predictable, which is why China is growing, while unpredictable India is lagging behind, there must be transparency, accountability, and legislation needs to be simplified.

These are the words of Stephane Garelli that were heard while discussing possible solutions to the economic crisis and changes in the global economy at the annual Presidential Forum at the IEDC business school in Bled, Slovenia.  Garelli, a global authority on competitiveness and a professor at IMD and the University of Lausanne, suggested to the gathered company presidents, executives, and state representatives that attention should be directed towards global markets, rather than solely focusing on the EU and the West, as these countries do not have the growth capacity that BRIC countries or African nations possess.

-Economic growth can be sought in four pillars: developing markets where a new middle class is emerging, markets in poorer countries that are becoming less poor and require a new business model to access them, clean technology that will ensure sustainable development, and an increased lifespan that demands labor market adaptation, Garelli said, highlighting a series of measures that need to be implemented to effectively navigate the series of difficulties faced by numerous European countries, including Croatia and Slovenia, both of which are experiencing a decline in the global competitiveness rankings.

Investment in infrastructure (both physical and intellectual) is necessary, the base of people who can work and be employed needs to be expanded, as only with higher employment can lower tax rates be maintained, focus should be placed on the development of small and medium-sized enterprises that can ensure labor market differentiation and increase exports, and attract and utilize foreign direct investments to actively support local entrepreneurship.

In addition to Garelli, the Forum also featured a roundtable discussion with Slovenian Minister for Development and EU Relations Mitja Gaspari, CEO of KD Group Matjaž Gantar, President of Gruppo Illy Ricardo Illy, Member of the Croatian National Council for Competitiveness and Dean of VERN Polytechnic Goran Radman, and Žiga Turk, a professor at the University of Ljubljana and former president of the Slovenian Council for Competitiveness.

-Croatia has all the potential to double its GDP in the next 15 years and achieve stable growth to reach the EU average by then. The only problem is that it is not clear how to do that, Radman said, emphasizing that the expansion of higher education will be one of the sure prerequisites on that path.  (Kristina Kardum)