In a world of geopolitical rivalry, supply-chain vulnerability and rising costs, competitiveness has become a strategic balancing act. Unsplash

Competitiveness is not a new concept. It is likely embedded in our DNA, much like other fundamental instincts such as cooperation, survival, reproduction and mobility. What has changed over time is its geographical scope: once local, then national, competitiveness has now become global. That shift has fundamentally transformed how we understand prosperity, business, work and everyday life.

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At its core, competitiveness is the ability to solve problems better than others. “Better” may mean cheaper, faster or, most importantly, with greater added value for the user. Competitiveness applies to everyone. A plumber is competitive if he fixes your sink quickly and reliably; a doctor if she cures you efficiently; a company if it consistently creates value and earns a profit. Historically, competitiveness was constrained by geography. A local plumber could not repair a sink in Beijing. But globalization has changed that equation. Today, even small, locally rooted companies may be tempted—or forced—to compete far beyond their original markets. Within a few decades, barriers to trade, communication and capital flows have fallen dramatically, opening global markets to firms of all sizes and origins. 

The golden age of competitiveness

The era of openness can be dated quite precisely. It began on December 18, 1978, when Deng Xiaoping announced China’s open-door policy. That decision triggered a four-decade-long expansion of the global economy that lasted until the Covid-19 pandemic struck. During this period, unique in human history, it became possible to travel, communicate, invest and conduct business in virtually every country. 

For companies, access to previously closed markets meant the possibility of supplementing an export strategy with direct investments. Such a change also implied greater knowledge of local markets, legislation, government policies, customers and value systems. Globalization rewarded scale, specialization and efficiency. 

This period........

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