Vol. 4 (2011): Journal of Business Management
Journal of Business Management, issue No.4, mostly consists of papers (reports), which were presented during the International Scientific Conference "Changes in Global Economic Landscape – in Search for New Business Philosophy" that took place in Riga International School of Economics and Business Administration on 28 and 29 April 2011.
Representatives of 12 countries – Austria, Finland, Estonia, Cyprus, Poland, Hungary, Portugal, Germany, Italy, United Kingdom, Latvia, and Greece – participated in the conference.
Main findings of the International Scientific Conference were as follows (scientific articles published in this issue reflect most of these findings):
1. The global economy‘s centres of gravity are shifting (towards east mainly, e.g. China, India, etc.). The shift of economic centres of gravity is tied with fundamental and long-term collisions (as history shows). Therefore, uncertainty in business increases, and it is the long-lasting period.
2. The model of economic development based on demand stimulation (in a form of crediting) does no longer work. The time has come to pay off (or write off?) loans received earlier. The consumption society cannot be sustainable.
3. Talents and technologies determine business achievements (especially in case of rapid changes in the world economy).
4. A long-term business is becoming the one, which is concerned with satisfying primary needs of people (e.g. food industry), as well as high technologies.
5. More close regional collaboration can positively influence the situation both on the country and business levels (including introduction of single currency).
6. Constant concentration on short-term goals does not allow achieving long-term goals, including the investment-related ones.
A number of points for discussion arose, for instance:
1. Why improvement of macroeconomic indicators in Latvia does not influence its people?
a) It requires time.
"Slight growth and profit in the banking sector are anticipated only in the end of 2011".
"Stable investments are required".
"Salaries are below the productivity level, they can increase only in the mid-term, from now to 2014" (Andris Vilks).
b) "The macroeconomic indicators do not fully reflect the real microeconomic situation" (V.Kozlinskis).
2. The anticipated role of immigration
In the short- and mid-term regulating immigration can bring positive impact, although the basic long-term solution is to improve the demographic situation (e.g. Canada‘s experience of 3-children families) (Greg McDonalds).
The regulated immigration can attract highly qualified workforce, holders of capital, scientists.
3. Some bright quotes:
Massimo Merlino: "2T (talents and technologies) is the only strategy that can take out from the crisis. Intercultural research in this area is required".
Signe Enkuzena: "The world‘s leading economies proved that an effective human resource training system is one of the business development cornerstones... Employees also admit that learning and improvement of skills enhance professionalism".
Kari Liuhto: "The single currency fosters development of regional business and tourism".
"The united investment agency of the Baltic region could attract foreign investments, foster inflow of capital, promote economic growth and more intensive competition among enterprises".
Artis Pabriks: "Since the Baltic countries (Latvia, Lithuania, Estonia) joined the EU following the Northern neighbours, the need for mutual collaboration and integration have become very salient. However, there are differences between the Northern and Baltic countries – the Northern Countries are among the most successful and competitive in the world, while the Baltics fight for extra resources to support the social sector. One of the options for the Baltics is to learn from experience of the Northern neighbours".
Jānis Zvīgulis: "The Latvian and global experience shows that not all investments are suitable for the development of Latvian economy. The strategically defined and appropriate investments are necessary, but not the doubtful ones. A lot of countries, including Latvia, define its attitude towards investments – how to increase the desired investments, especially, when the flow of funds decreases significantly".
Head of the Editorial Board
Vulfs Kozlinskis
