A G E N D A for Growth
INTERNATIO N A L C E N T E R F O R G R O W T H is a leading Danish network organ i s a t i o n , p ro v i d i n g u n u s u a l g ro w t h i d e a s a n d g ro w t h initiatives for gover n m e n t s , i n s t i t u t i o n s a n d b u s i n e s s e s .
WELCOME TO AGENDA FOR GROWTH
Agenda for Growth is a non profit publication by centered mannel new ideas for growth. We aim at providing growth innovators, public and private organisations interested in growth with a challenging new forum. To make everyone see the purpose in new growth ideas, to invest more in growth, to change traditional behavior and to use young peoples bright ideas together with the ”old elite”. In this issue we talk about growth indicators, new technology, new growth ideas, in health care drivers and we present to you some of our growth experts. And its just the beginning. In 2014 we will be hosting the first Scandinavian Growth Event. Should you be interested in joining the Agenda for Growth initiative please feel free to contact us.
SOME GROWTH HISTORY AND THEORY FOR THE NERDS.......................... 5
JENS JACOB SKIBSTED
SHORT NEWS ON GROWTH IDEAS.....................................................................6
ATTORNEY AT LAW
ALL ARTICLES ARE PRODUCED
NEW TECHNOLOGY GROWTH........................................................................... 10
BY AGENDA FOR GROWTH
5 GROWTH IDEAS.................................................................................................. 12
OR ELSE SOURCES ARE INDICATED
WORST GROWTH PREDICTIONS + GROWTH PREDICTIONS..................... 14
AT THE ARTICLE STAND.
INTERNATIONAL GROWTH................................................................................. 16
AFG IS NOT LIABLE FOR ANY
WHY BRASIL........................................................................................................... 20
USE OR MISUSE OF TEXT AND
GROWTH IN HEALTHCARE..................................................................................22
ARTICLES AFG IS ISSUED AS A
PERSONAL GROWTH........................................................................................... 24
DIGITAL AS WELL AS PRINTED
DK GROWTH PLANS.............................................................................................. 27
VERSION ON REQUEST.
THE GLOBAL COMPETITIVENESS REPORT (GCR)........................................ 28
OVER LONG PERIODS OF TIME EVEN SMALL RATES OF GROWTH, LIKE A 2% ANNUAL INCREASE, HAVE LARGE EFFECTS.
SOME GROWTH HISTORY AND THEORY FOR THE NERDS…
HE LARGE impact of a relatively small growth rate over a long pe-
that make workers productive. Unlike physical capital, human capital has increasing rates of return. Therefore, overall there are constant returns to capital, and economies never reach a steady state. Growth does not slow as capital accumulates, but the rate of growth depends on the types of capital a country invests in. Research done in this area has focused on what increases human capital (e.g. education) or technological change (e.g. innovation).
riod of time is due to the power of compounding (also exponential growth). A growth rate of 2.5% per annum leads to a doubling of the GDP within 29 years, whilst a growth rate of 8% per annum (an average exceeded by China between 2000 and 2010) leads to a doubling of GDP within 10 years. Thus, a small difference in economic growth rates between countries can result in very different standards of living for their populations if this small difference continues for many years.
Happiness has also been shown to increase with a higher GDP per capita, at least up to a level of $15,000 per person. Economic growth has the indirect potential to alleviate poverty, as a result of a simultaneous increase in employment opportunities and increase labour productivity.A study by researchers at the Overseas Development Institute (ODI) of 24 countries that experienced growth found that in 18 cases, poverty was alleviated.
The modern conception of economic growth began with the critique of Mercantilism, especially by the physiocrats and with the Scottish Enlightenment thinkers such as David Hume and Adam Smith, and the foundation of the discipline of modern political economy. Adam Smith who wrote the ”wealth of nations” noted the huge gains in productivity achieved by the division of labor in the famous example of the pin factory.
Some critics argue that a narrow view of economic growth, combined with globalization, is creating a scenario where we could see a systemic collapse of our planet’s natural resources. Concerns about possible negative effects of growth on the environment and society led some to advocate lower levels of growth. This led to the ideas of uneconomic growth and de-growth – and Green parties that argue that economies are part of a global society and global ecology, and cannot outstrip their natural growth without damaging those. Those more optimistic about the environmental impacts of growth believe that, though localized environmental effects may occur, largescale ecological effects are minor. The argument, as stated by commentator Julian Lincoln Simon, states that if these global-scale ecological effects exist, human ingenuity will find ways to adapt to them.
David Ricardo argues that trade benefits a country, because if one can buy an imported good more cheaply, it means there is more profitable work to be done here. This theory of comparative advantage is the central basis for arguments in favor of free trade as an essential component of growth. Growth theory advanced amongst others with theories of economist Paul Romer and Robert Lucas, Jr. in the late 1980s and early 1990s. Economists worked to “endogenize” technology in the 1980s. They developed the endogenous growth theory that includes a mathematical explanation of technological advancement.This model also incorporated a new concept of human capital, the skills and knowledge
SHORT NEWS ON GROWTH SOURCE: ENTREPRENEUR
BRILLIANT MISTAKE Sometimes, a great growth business idea emerges from an unlikely source. And sometimes, it’s a complete accident. Perhaps it started out as a way to solve an internal problem at a business, that turns out to be a better idea than the original business. This was the case at Groupon. The daily-deal darling began as a fundraising idea to help support the charity-campaign site called The Point. It’s also true for Twitter, which started out as a way to make it easier for team members to find each other for meetings at the podcasting startup Odeo. And there’s always that classic story of how the weak adhesive in 3M’s Post-It notes was ignored for six years because its inventor couldn’t figure out a use for it. Then it met a little yellow square of paper and the right marketing campaign, and became one of the most popular products 3M ever saw. Wharton Press has a new book on this topic, Brilliant Mistakes: Finding Success on the Far Side of Failure, by Paul J.H. Shoemaker.
GROWTH GEOGRAFY: Sure, Silicon Valley is still No. 1, but some surprising cities like Sao Paulo, Brazil and Bangalore, India have become successful startup hubs over the past decade. Startup Genome’s Startup Ecosystem Report 2012 ranked the top 20 most active startup scenes in the world based on criteria including funding, entrepreneurial mindset, trendsetting, support, talent and more. According to data compiled by financial-software firm Intuit, some of the cities even outshine entrepreneurial darling Silicon Valley. For example, 20 percent of Santiago, Chile’s entrepreneurs are women compared with a paltry 10 percent in the Valley. For the full list and more about the top 20 entrepreneurial cities around the world, take a look at the infographic below.
TODAY FROM GROWTH EXPERT RICHARD BRANSON SOURCE: GOOGLE “MY BEST SOURCES OF INSPIRATION COME FROM THE EVERYDAY FRUSTRATIONS I ENCOUNTER AT WORK AND IN MY PERSONAL LIFE:
mentioned that I always keep a notebook
handy to jot down ideas for improving busi-
ness. Whatever you use to record your questions and observations, the important thing is to make a practice of it, preferably every day. Curiosity is a great quality. Since there are countless problems to solve, we are all exposed to many different opportunities throughout the day -- all you have to do is follow up. If you are looking for growth idea for a business, consider: Is there something at work or at home that frustrates you? How much time do you spend on solving it? Is there an even better way of doing things? Why hasn’t it been done before? If the answer is “Because that’s the way it has always been done, pay close attention.
NEW TECHNOLOGY GROWTH UPDATE SOURCE: GOOGLE
runway fashions arenâ€™t made with a sewing machine, but with a 3D printer. It has just started to weave its way into the world of fashion. A technology once used primarily for prototyping is now spitting out wearable items. Already, 3D printers are used to make jewelry and high-end apparel, and it may not be long before people can print out clothing from the comfort of their living rooms. In fact, consumers will be printing their own clothing by 2020, according to many experts. HE LATEST
The cost of 3D printing has long kept the technology in a select few hands, but all that is changing as 3D printing blossoms into a full-fledged trend. Now Staples will start retailing a consumer 3D printer, the Cube 3D Printer, for $1,299. Proponents hope that as costs come down even further, more sophisticated printers will reach the general public, allowing for digital DIY manufacturing. Though copyright and quality issues remain a concern, 3D printing has already made its mark in some pretty weird ways. WHAT IS 3D PRINTING Additive manufacturing or 3D printing is a process of making a three-dimensional solid object of virtu-
ally any shape from a digital model. 3D printing is achieved using an additive process, where successive layers of material are laid down in different shapes. 3D printing is also considered distinct from traditional machining techniques, which mostly rely on the removal of material by methods such as cutting or drilling (subtractive processes). A materials printer usually performs 3D printing processes using digital technology. The first working 3D printer was created already in 1984 by Chuck Hull of 3D Systems Corp. Since the start of the 21st century there has been a large growth in the sales of these machines, and their price has dropped substantially. The 3D printing technology is used for both prototyping and distributed manufacturing with applications in architecture, construction (AEC), industrial design, automotive, aerospace, military, engineering, civil engineering, dental and medical industries, biotech (human tissue replacement), fashion, footwear, jewelry, eyewear, education, geographic information systems, food, and many other fields. It has been speculated that 3D printing may become a mass market item because open source 3D printers can easily offset their capital costs by enabling consumers to avoid costs associated with purchasing common household objects.
The latest runway fashions arenâ€™t made with a sewing machine, but with a printer.
5 NEW GROWTH IDEAS: No1:
No3: These beans will cool down your hot coffee to an acceptable 140째 Fahrenheit and then hold it around that temperature for as long as five hours.
Chameleon Band-aid... changes color to match your skin tone.
No2: A Team Of Students Invent Gloves That Translates Sign Language To Speech.
KNOW: Did you know that: The Audi RSQ was made with rapid prototyping industrial KUKA robots.
No5: Had a really bad break that you want to show off? Send them the digital file of your x-ray, and theyâ€™ll send you back your break in print, ready to be applied directly to your cast.
No4: Milk carton that changes color as the milk expires.
BAD/GOOD P BEST GROWTH PREDECTIONS THE HUMAN SOURCE: DAILY MAIL It cost six million dollars to create bionic superhero Steve Austin. Scientists however have now built a man from artificial limbs for a sixth of the price. Known as Rex – short for robotic exoskeleton – his 6ft frame is made up of an array of artificial limbs and organs from around the world. The bionic man is being built from $1,000,000 (£640,000) of limbs and organs by leading UK roboticists Richard Walker and Matthew Godden. There is the artificial eye, which consists of a microchip implanted into the retina that receives images captured by a camera housed on the patient’s glasses. It sends electrical pulses that are translated by the brain into shapes and patterns. Professor Robert MacLaren, from Oxford University, said: ‘We are hoping patients who are completely blind will be able to see basic shapes and objects.’ Scientists are hoping prosthetic replacements for failing hearts, kidneys, pancreas and spleens could one day solve the worldwide shortage of donor organs. One example, the SynCardia Systems artificial heart is already saving lives, with more than 1,000 implanted. Powered by a battery, it can temporarily replace a diseased heart until a donor is found. A prosthetic foot and ankle – developed by Massachusetts Institute of Technology professor Hugh Herr, who lost his legs to frostbite in a climbing accident – mimics the actions of the calf muscle and Achilles tendon. The professor said he was now able to climb better than before his accident….
TABLET DEATHWATCH: “IN FIVE YEARS I
STEVE JOBS TRASHES MUSIC
DON’T THINK THERE’LL BE A REASON TO
HAVE A TABLET ANYMORE.”
“THE SUBSCRIPTION MODEL OF BUYING
Thorsten H e i n s , B l a c k B e r r y C E O ( 2 0 1 3 )
MUSIC IS BANKRUPT.” Steve Jobs (2003)
Tablet sales are still very much on the rise, growing 142 percent year over year in the first quarter of 2013. During the second quarter of 2013, 34.6 million Android tablets shipped, compared to 2.7 million BlackBerry 10 phones. Even with a drop in sales, Apple moved 14 million iPads. i.e, the Los Angeles School District recently ordered iPads for 640,000 students.
The late founder and CEO of Apple, Steve Jobs was right about a lot of things, including predicting the Post-PC era and the death of Flash (though Apple helped). Jobs was also correct when he said in 2003 that the iTunes Music Store would “go down as a turning point for the music industry.” In February 2013, the 25 billionth song was purchased form the store. However, Jobs was wrong about digital music’s evolution. Today, Spotify has more than 6 million paid subscribers who can listen to all the tunes they want for a flat monthly fee. The new iTunes Radio service will let you skip ads for a $24.99 yearly fee that ties into iTunes Match, but you won’t be able to stream your favorite tracks on demand.
“THERE’S NO CHANCE THAT THE IPHONE IS GOING TO GET ANY SIGNIFICANT MARKET SHARE.” Steve Ballmer, Mic r o s o f t C E O ( A p r i l 2 0 0 7 )
INTERNATIONAL AGENDA FOR GROWTH SOURCE: AN OPINION FROM THE ECONOMIC TIMES
ety within a few decades. As Kido Takayoshi, a leader of that reform, explained: “Our people are no different from the Americans or Europeans of today; it is all a matter of education or lack of education.”Through investments in education and health care, Japan simultaneously enhanced living standards and labor productivity - the government collaborating with the market. Despite the catastrophe of Japan’s war years, the lessons of its development experience remained and were followed, in the postwar period, by South Korea, Taiwan, Singapore and other economies in East Asia. China, which during the Mao era made advances in land reform and basic education and health care, embarked on market reforms in the early 1980s; its huge success changed the shape of the world economy. India has paid inadequate attention to these lessons. Is there a conundrum here that democratic India has done worse than China in educating its citizens and improving their health? Perhaps, but the puzzle need not be a brainteaser. Democratic participation, free expression and rule of law are largely realities in India, and still largely aspirations in China. India has not had a famine since independence, while China had the largest famine in recorded history, from 1958 to 1961, when Mao’s disastrous Great Leap Forward killed some 30 million people. Nevertheless, using democratic means to remedy endemic problems chronic undernourishment, a disorganized medical system or dysfunctional school systems - demands sustained deliberation, political engagement, media coverage, popular pressure. In short, more democratic process, not less. In China, decision making takes place at the top. The country’s leaders are skeptical, if not hostile, with regard to the value of multiparty democracy, but they have slowly committed to eliminating hunger, illiteracy and medical neglect, and that is enormously to their credit. There are inevitable fragilities in a nondemocratic system because mistakes are hard to correct. Dissent is dangerous. There is little recourse for victims of injustice. Edicts like the one-child policy can be very harsh. Still, China’s present leaders have used the basic approach of accelerating development by expanding human capability with decisiveness and skill.
GROWTH INDIA – GROWTH CHINA Modern India is, in many ways, a success. Its claim to be the world’s largest democracy is not hollow. Its media is vibrant and free; Indians buy more newspapers every day than any other nation. Since independence in 1947, life expectancy at birth has more than doubled, to 66 years from 32, and per-capita income (adjusted for inflation) has grown fivefold. In recent decades, reforms pushed up the country’s once sluggish growth rate to around 8 percent per year, before it fell back a couple of percentage points over the last two years. For years, India’s economic growth rate ranked second among the world’s large economies, after China, which it has consistently trailed by at least 1 percentage point. The hope that India might overtake China one day in economic growth now seems a distant one. But that comparison is not what should worry Indians most. The far greater gap between India and China is in the provision of essential public services - a failing that depresses living standards and is a persistent drag on growth. Inequality is high in both countries, but China has done far more than India to raise life expectancy, expand general education and secure health care for its people. India has elite schools of varying degrees of excellence for the privileged, but among all Indians 7 or older, nearly one in every five males and one in every three females are illiterate. And most schools are of low quality; less than half the children can divide 20 by 5, even after four years of schooling. India may be the world’s largest producer of generic medicine, but its health care system is an unregulated mess. The poor have to rely on low-quality and sometimes exploitative - private medical care, because there isn’t enough decent public care. While China devotes 2.7 percent of its gross domestic product to government spending on health care, India allots 1.2 percent. India’s underperformance can be traced to a failure to learn from the examples of so-called Asian economic development, in which rapid expansion of human capability is both a goal in itself and an integral element in achieving rapid growth. Japan pioneered that approach, starting after the Meiji Restoration in 1868, when it resolved to achieve a fully literate soci16
A growth as low as 6.5% may be tolerable in the future.
SHANGHAI’S FINANCIAL DISTRICT, JULY 23, 2013. CHINA’S ECONOMIC GROWTH MUST NOT SLIP BELOW THE “BOTTOM LINE” OF SEVEN PERCENT, PREMIER LI KEQIANG WAS QUOTED AS SAYING BY A STATE-BACKED NEWSPAPER ON JULY 23, WITH THE TARGET BEING NECESSARY TO ENSURE CHINA ACHIEVED ITS GOAL OF DOUBLING ITS GROS S DOMESTIC PRODUCT BETWEEN 2010 AND 2020.
below 7% won’t be accepted because China needs to achieve a moderately prosperous society by 2020, according to a commentary published July 21 by the official Xinhua News Agency and credited to reporter Wang Yuewei. Li said at a recent meeting with economists that 7% is the “bottom line” and the nation can’t allow growth below that, the Beijing News reported today.
the World Bank. “As economic growth is slowing to below 7.5%, the government policy’s focus is gradually shifting to stabilizing growth.” The Shanghai Composite Index gained 2%, with rail-related stocks surging on speculation that the government will ramp up construction.
Finance Minister Lou Jiwei said in a press briefing in Washington on July 11 that growth as low as 6.5% may be tolerable in the future. While the government in March set a 2013 growth goal of 7.5%, Lou said he’s confident 7% can be achieved this year.
Chinese stocks rose the most since July 11 on optimism that the government will limit the depth of a slowdown after gross domestic product rose 7.5% in the second quarter from a year earlier, the same pace as an official 2013 target. Li previously said the government shouldn’t let growth and employment fall below lower limits that he didn’t specify. “The comments confirmed that the government’s acceptable range for growth this year is between 7% and 7.5%,” said Chang Jian, a Hong Kong-based economist at Barclays Plc who formerly worked for
Xinhua later amended its English-language report on Lou to say there’s no doubt that China can achieve this year’s growth target of 7.5%.
I N T E R N AT I O N A L T H E M O S T D R A M AT I C , A N D D I S R U P T I V E , PERIOD OF EMERGING-MARKET GROWTH THE WORLD HAS EVER SEEN I S C O M I N G TO I T S C LO S E SOURCE ECONOMIST:
year will be the first in which emerging markets account for more than half of world GDP on the basis of purchasing power, according to the International Monetary Fund (IMF). In 1990 they accounted for less than a third of a much smaller total. From 2003 to 2011 the share of world output provided by the emerging economies grew at more than a percentage point a year (see chart 1). The remarkably rapid growth the world has seen in these two decades marks the biggest economic transformation in modern history. Its like will probably never be seen again.
ing economies having an effect in the near future comparable to that of the BRICs in the recent past is low; they do not have the potential for catch-up the BRICs had in the 1990s and 2000s. And the BRICs’ growth has changed the rest of the world economy in ways that will dampen the disruptive effects of any similar surge in the future. The emerging giants will grow larger, and their ranks will swell; but their tread will no longer shake the Earth as once it did.
The most impressive growth was in four of the biggest emerging economies: Brazil, Russia, India and China, which Jim O’Neill of Goldman Sachs, an investment bank, acronymed into the BRICs in 2001. These economies have grown in different ways and for different reasons. But their size marked them out as special—on purchasing-power terms they were the only $1 trillion economies outside the OECD, a rich world club—and so did their growth rates. Mr O’Neill reckoned they would, over a decade, become front-rank economies even when measured at market exchange rates, and he was right. Today they are four of the largest ten national economies in the world
The economic performance of the world’s richest countries has also been sluggish. An analysis of the contributions that different areas—consumer spending, investment, government spending and trade—have made to GDP growth reveals which are aiding (or hindering) the recovery. According to the latest release by the OECD, a mostly rich group of countries, consumer spending was the main driver of economic growth in the first quarter of this year. This added up to half a percentage point to the GDP change in America, Germany and Japan. In Britain, where consumer spending’s contribution to growth has increased for the last three quarters, net exports made the largest contribution to recent GDP growth, largely because imports and the pound have fallen. Changes to inventories normally make a negligible contribution to growth. But during recessions firms slow production and liquidate stock, which causes large variations in GDP growth. Destocking in Britain, for example, offset the 0.6 percentage point gains from net exports.
The shift towards the emerging economies will continue. But its most tumultuous phase seems to have more or less reached its end. Growth rates in all the BRICs have dropped. The nature of their growth is in the process of changing, too, and its new mode will have fewer direct effects on the rest of the world. The likelihood of growth in other emerg-
WHY BRASIL INCREASING ECOTOURISM
is increasing rapidly in the North East of Brazil. The area and development will have the full support of both the national and federal governments who are keen to promote the area for ecotourism and sustainable property development. Ecotourism is one of the world’s fastest growing industries predicted to expand by 25% over the next 6 years and worth an impressive US$473.6 billion per annum (Source: International Ecotourism Society).
As a result the housing market is opening with more mortgage products becoming available and increased interest from foreign investors. The north east region is particularly popular with Brazil’s substantially growing middle class and foreign purchasers looking to buy second homes. Property values are predicted to soar with the upcoming international events – 2014 FIFA Football World Cup and 2016 Olympics.
BUOYANT ALL-YEAR ROUND TOURISM North East Brazil has one of the strongest tourism and real estate markets in the country with over 6 million foreign tourists. It is also the most popular destination for the majority of the 50 million Brazilian tourists who holiday in Brazil each year. The tourism industry is booming with experts predicting that over 300 additional passenger aircrafts will be required over the next 20 years to cope with tourism growth. The climate is sunny and warm with little variation throughout the year, attracting Europeans, Americans and Brazilians across all seasons. Demand for quality holiday property is therefore high, particularly property located in resorts that offer a variety of amenities and fit in well with their surrounding environment.
BRAZIL’S THRIVING ECONOMIC FUNDAMENTALS Brazil’s economy has gone from strength to strength over the past decade. Strong macroeconomic policies, the rediscovery of Brazil’s natural resources, social and economic reforms have helped increase exports and present Brazil as a viable investment destination in international markets, with a particularly bullish property market.
INTERNATIONAL EVENTS 2014 World Cup and 2016 Olympics Brazil’s tourism industry is benefitting greatly from the announcement of several high profile events to be held in the country. The 2014 FIFA World Cup and the 2016 Olympics in Rio de Janeiro is set to be a huge draw for visitors to the country. Local and federal governments have allocated a total investment of €13 billion to improve infrastructure and facilities throughout the country ahead of the World Cup (Source: bbc.co.uk). Both events will further raise the country’s profile, increase foreign investment and accelerate tourism. BOOMING PROPERTY MARKET Demand for property from both the domestic and foreign markets is soaring. The lowering of interest rates has increased domestic demand in the housing market as more Brazilians are able to afford homes. This has led to property prices appreciating significantly over the past six or seven years. Average capital appreciation on completed property in north east Brazil is 20% per annum with land purchases even more favourable.
Economic performance is expected to continue on its strong growth trajectory with the International Monetary Fund (IMF) forecasting 4.1% GDP growth in 2011 and 3.6% in 2012 (Source: Bloomberg), following impressive GDP growth of 7.5% in 2010. INVESTORS ARE FLOCKING TO BRAZIL Brazil is under the watchful eye of the world’s investors and was awarded investment grade status in 2008 by Moody’s and Standard & Poor’s. Brazil is now considered a safe investment destination that is unlikely to falter (Source: The Financial Times). The investment grade ratings have placed Brazil on a foreign investment fast track with millions of foreign investment dollars flowing into the country annually. A combination of Brazil’s stable economy, falling interest rates and rising tourism are among the numerous factors that are attracting investors in increasing numbers to the market of Brazil. BOOMING NORTHEAST BRAZIL Brazil’s Ministry of Tourism was set up as recently as 2003, but so far has invested more than US$736 million in the north east region alone improving airports, roads and drainage systems. The tourist industry in the region now accounts for 10% of all employment. Government figures expect international tourist visits to the region to increase to an impressive 20 million by 2013. This is in addition to the already large percentage of the 50 million annual Brazilian tourists that visit the region.
The tourism industry is booming with experts predicting that over 300 additional passenger aircrafts will be required over the next 20 years to cope with tourism growth.
why do we not integrate new â€?elders taking care of eldersâ€? systems, using healthy elderly people to support others?
NEW GROWTH IN THE HEALTHCARE SECTOR FUTURE HEALTH IS ONE OF THE MOST IMPORTANT CHALLENGES AND AT THE SAME TIME GROWTH POTENTIALS WE HAVE.
Opinion Nils Bundgaard, Advisory Board Member
uture Health is one of the most important challenges and at he same time one of the most important growth potentials we have. One of the thing, and just to mention one, is the example of more elderly people demanding increasing welfare. And it’s just one example of an area where we can export more solutions and create new growth initiatives. There is an increasing debate about the pressure on the welfare state, especially about reasons and consequences. However we seldom find new and very alternative solutions. The public sector is under a lot of pressure and the typical solution is ”lean management” and cut downs. But is that enough to keep the service level for the elder population in the future? I don’t think so. Well-known is the demographic development with a society overflown with +65 and a decrease in fertility. At the same time people live longer and we have fewer taxpayers. All facts show us elder people will have increasing demands towards service and care – compared to earlier times. They want quality and individuality. So again, increasing demands on public sector and politicians to find new solutions. SO WE NEED ALTERNATIVE IDEAS AND NEW SOLUTIONS. Let me ask some fundamental questions: Do we need to offer the same elderly care for all people? Could we create a differentiated benefit programme – we could export? A strong basis programme for everybody but on top of that a new extra service programme you could pay for: Wellness, Culture, Social living and Housing - maybe through a new public elderly insurance system. If we develop the right programme we should be able to export this.
And how do we meet the challenge of ”warm hand” care assistants to service the increasing numbers of elderly? A long lists of home care products are being introduced so that we can live longer at home. AND THERE ARE MANY NEW INNOVATIVE SOLUTIONS: Alarm systems warning elderly that the food is burning and automatically turns of the system, so that nobody needs to go out and check. ( A system that is working well in Sweden ) Maybe Denmark should be the number one country in the world in elderly products export and show others how we can save on the number of staff by using clever technology? And why do we not integrate new ”elders taking care of elders” systems, using healthy elderly people to support others? So we could increase service and at the same time lower the pressure on the welfare state. What it takes is an open and innovative attitude from governments, businesses and the individual to think new ideas. THE THINK-TANK ON FUTURE HEALTH WILL CONTINUE THIS DISCUSSION AND LOOK AT THE ELDER SECTOR: - How to identify new growth and export ideas for the eldercare sector - How to make use of young talents thinking out new innovative solutions for eldercare - How do we increase export on our knowhow in the eldercare sector - Are there brand new greenfield products and services that could change the basic drivers of eldercare And this is just part of the potential from the Eldercare Thinktank. 23
INCREASED GROWTH THROUGH PERSONAL PERFORMANCE YOU KNOW IT WELL. IN EVERY COMPANY, DEPARTMENT OR TEAM THERE IS THAT ONE PERSON. THE TOP-PERFORMER. YOU’VE SEEN THEM IN ACTION – COMPLETING ALL THEIR TASKS WITH A SMILE, CONSISTENTLY ACHIEVING THEIR GOALS, ALWAYS HAVING THAT EXTRA ENERGY IN EVERYDAY LIFE AND SEEMING MORE POPULAR AND LIKEABLE THAN AVERAGE. WHERE DOES IT COME FROM? HOW DOES HE OR SHE DO IT?
My opinion by; Karsten Bundgaard, Motivationfactor
magine if everyone always gave 100% There are many reasons why some perform and succeed better than others. Some sociologists say that “Growth is the result of the individual’s accumulated benefits”. But I wonder if perhaps exceptional planning, hard work and talent help along the way as well? Probably. But there is still more to it – and it is important for us to be conscious of what it truly takes. I will, without scientific evidence, claim that the top-performer is always highly motivated. In other words, it is rare to meet a top-performer who complains about assignments, customers, products, the environment and so on. You’ll never experience a top-performer saying “We’ve tried that already ..” or creating a bad atmosphere, dragging colleagues down. No! The top-performer is motivated and engaged positively in the work – and probably everything else he or she is doing. 328 Billion USD Disengaged employees are without a doubt the biggest source of reduced productivity in business. Modern Survey in Minneapolis, MN takes a constant temperature of motivation and engagement on the U.S. labor market. In May 2012, the survey showed that 67% of the workforce were either under-engaged or un-engaged. A tremendous number, yes – and the study also notes that only about 10% are fully engaged. Gallup is doing similar analyses, and publishes almost the same numbers. This research house estimates that lack of engagement annually costs the U.S. economy about 328 billion dollars. More motivation and engagement, thank you! Imagine if we could increase the motivation and engagement of even just a few percent? A focus on motivation and engagement, can translate directly to greater efficiency and is certainly the shortest
path to competitiveness and increased growth. SCIENTISTS AND GURUS So you could simply say: “We must all have more motivation and engagement!” But motivation and engagement is a vast field of study, to which many scientists and management gurus have contributed great ideas and models over the past 100 years. But even with all this study, there is still something missing before we can all just “get some more of it”. Particularly well known is Abraham Maslow’s hierarchy of needs from 1943 and Frederick Herzberg’s motivation theory from 1959. While Maslow’s hierarchy arranges human needs by importance, Herzberg focused on the tasks and factors associated with those motivational needs. Herzberg’s theory further divides those needs, tasks and factors into two groups: 1) Hygiene factors – basic and fundamental 2) Motivation factors – personal development and self-actualization. SELIGMAN AND CSIKSZENTMIHALYI Martin Seligman is considered the father of positive psychology – the science of how life can be made more meaningful and fulfilling. Complementary to Seligman’s theories, the Hungarian researcher Mihaly Csikszentmihalyi attacks the motivation challenge from a slightly different angle with his Flow Theory. Csikszentmihalyi says that your Flow, and thus your highest levels of motivation, is achieved when your skills, talents and needs are aligned with your tasks. How can you tell if you are in Flow? • If the task is too large or too complicated with respect to your needs, strengths and skills, you will become demoralized or insecure. I know for myself, for example,
the prospect of reading a 50-page contract is daunting and when faced with such a task, I quickly lose both the energy for the job and any hope that I will be able to contribute anything of value. If you match your needs, strengths and competencies the task at hand you will experience Flow where you forget time and place, are fully immersed in an energized focus, and experience full involvement and enjoyment in the activity or task.
from or influenced by external motivators, while 45% is derived from or influenced by internal motivation factors and motivation capability. This indicates that traditional employee engagement initiatives have been addressing little more than half of the engagement question. In order to know what motivates you, you must know your personal needs and strengths. But knowing what you should try to gain more of and what you should avoid – and actively managing those factors – is the key to sustained motivation and growth over the long term.
THE MISSING FACTOR Recent theories are including more discussion about external and internal motivation. External factors are those that come from outside, such as salaries, environment, management and collegial support. Internal factors come from the inside – an individual’s needs, strengths and sense of purpose – like those expressed in Csikszentmihalyi’s Flow Theory. Yet these are only two of the key three factors. There are, in fact, three elements that contribute to long term engagement and motivation: • External motivators: Factors such as money, training, work environment, management support, etc. These are reward types which come from outside the individual. • Internal motivators: Factors such as the extent to which your strengths are acknowledged and put into play, the extent to which your personal needs are met and the extent to which you find purpose and meaning in what you do. These are reward types that are internal and unique to each individual.
The research shows that sustained motivation and engagement consists of 1.) External rewards 2.) Internal motivators and 3.) Motivation capability. To combine the experts’ theories, my own experience, Motivation Factor research and common sense, I come up with five basic rules for motivation and engagement: In order to achieve high levels of sustained motivation and engagement, you need to: 1) Have decent working conditions, and feel respected among good colleagues in a good atmosphere. 2) Know your needs. 3) Be conscious of your talents. 4) Work with tasks that align as much as possible with your needs and strengths while still providing challenge and growth. 5) Know exactly what you should pursue and what you should avoid in order to remain highly motivated. Let’s get started motivating and engaging ourselves and others. We’ll have more fun, be more efficient and earn more money – what are we waiting for?
… And last but not least “the missing factor”: • Motivation Capability: This key factor is the individual’s own ability to identify what gives and what takes away his or her motivation – and what to do about it. It is the ability to know what to pursue and what to avoid in order to become or remain highly motivated. It is the ability to find and actively connect with the personal meaning and purpose in the job or task. RECENT RESEARCH In partnership IDG Research motivation factor initiated a study combining a traditional employee satisfaction survey with the Motivation Factor Index. Analysis of the data clearly shows that 55% of employees’ overall engagement is derived 25
DK GROWTH PLANS SOURCE: TRADINGECONOMICS
he Gross Domestic Product (GDP) in Denmark stagnated 0 percent in the first quarter of 2013 over the previous quarter. GDP Growth Rate in Denmark is reported by the Statistics Denmark. Denmark GDP Growth Rate averaged 0.37 Percent from 1991 until 2013, reaching an all time high of 3.57 Percent in June of 2005 and a record low of -2.59 Percent in December of 2008.
tax and levies. • Improved access to financing. Better access to financing and liquidity for companies through an extension of VAT credit periods for companies, growth loans for entrepre neurs, small growth guarantees and new export guarantees. • Increased tax credits for costs linked to R&D activities.
DENMARK EXPORTS Exports in Denmark decreased to 50126.30 Million DKK in June of 2013 from 54177.40 Million DKK in May of 2013. Denmark Exports averaged 18613.29 Million DKK from 1960 until 2013, reaching an all time high of 55204.30 Million DKK in October of 2012 and a record low of 771 Million DKK in May of 1961. The Danish economy depends heavily on foreign trade. Denmark is self-sufficient in energy producing: oil, natural gas, wind and bioenergy. Its principal exports are machinery, instruments and food products. Trade with other EU countries accounts for almost 70% of Danish exports. Germany is Denmark’s most important trading partner.
KEY ELEMENTS OF THE NEW DANISH GROWTH PLAN: • Lowered corporate taxation. A gradual reduction of the corporate taxation from the current 25% to 22% by 2016. The current EU average is 23%.
• More and improved continuing education in order to raise the overall competence level of the Danish workforce. • More public investment projects. Increased level of public investments and a dedicated effort towards increasing investments in remodeling of private homes and energy remodeling of public buildings • Strengthening international competiveness. Funding to address key challenges within Danish key sectors with growth potential to enhance international competiti veness. In addition to the growth plan, the Danish Government has launched a number of initiatives in order to retain and improve Denmark’s position as one of the most advanced, competitive, and business friendly economies in the world. Those initiatives include the launch of an innovation strategy and growth teams within eight focus sectors.
• Reduced energy taxation. Significant reduction of energy
HONG KONG GDP ANNUAL GROWTH RATE The Gross Domestic Product (GDP) in Hong Kong expanded 3.30 percent in the second quarter of 2013 over the same quarter of the previous year. GDP Annual Growth Rate in Hong Kong is reported by the Census & Statistics Department. Hong Kong GDP Annual Growth Rate averaged 5.54 Percent from 1974 until 2013, reaching an all time high of 20.70 Percent in December of 1976 and a record low of -8.10 Percent in September of 1998. In recent years, Hong Kong has become an international hub for business, trade and finance importers willing to access the Chinese market. As such, the largest sector of the economy is services, which accounts for around 93 percent of GDP. Within services, the most important are wholesale and retail trade (25 percent of GDP); public administration and social services (17 percent); finance and insurance (16 percent); real estate and business services (11 percent); ownership of premises (10 percent) and transportation and postal services (6 percent). Information and communications and food and accommodation account for 8 percent. Construction represents 3.5 percent of GDP and electricity, water and gas supply, waste management and manufacturing 3.4 percent.
THE GLOBAL COMPETITIVENESS REPORT (GCR) WHAT IT IS: SOURCE: WIKIPEDIA
s a yearly report published by the World Economic Forum. Since 2004, the Global Competitiveness Report ranks countries based on the Global Competitiveness Index, developed by Xavier Sala-i-Martin and Elsa V. Artadi. Be. The Global Competitiveness Index integrates the macroeconomic and the micro/business aspects of competitiveness into a single index. The report “assesses the ability of countries to provide high levels of prosperity to their citizens”.
This is the top 30 of the 2012–2013 report  Switzerland 5.72 (—) Singapore 5.67 (—) Finland 5.55 (+1) Sweden 5.53 (-1) Netherlands 5.50 (+2) Germany 5.48 (—) United States 5.47 (-2) United Kingdom 5.45 (+2) Hong Kong 5.41 (+2) Japan 5.40 (-1) Qatar 5.38 (+3) Denmark 5.29 (-4) Taiwan 5.28 (—) Canada 5.27 (-2) Norway 5.27 (+1) Austria 5.22 (+3) Belgium 5.21 (-2) Saudi Arabia 5.19 (+1) South Korea 5.12 (+5) Australia 5.12 (—) France 5.11 (-3) Luxembourg 5.09 (+1) New Zealand 5.09 (+2) United Arab Emirates 5.07 (+3) Malaysia 5.06 (−4) Israel 5.02 (-4) Ireland 4.91 (+2) Brunei 4.87 (—) China 4.83 (-3) Iceland 4.74 (—)