The document discusses the competitiveness of Eastern European countries that are members of the European Union. It notes that these countries have lower costs of labor than Western European countries, while still having skilled workforces and modern institutions. This allows them to produce goods at lower costs while maintaining quality. The document predicts that industries like electronics, IT, agriculture, and services that require educated workers at low costs will thrive in Eastern Europe in the future, making the region competitive for outsourcing and offshoring. Quality upgrading will be important for these countries to enter new sectors and maintain competitiveness globally.

1. CHALLENGE FUTURE:
THE FUTURE OF WORK
COMPETITIVENESS OF EASTERN EUROPE
Team Name: Facilitator
Selected Countries: EU Member Eastern European Countries
Team Member: Tanmoy Das (Team Leader)
Country of Team member: Bangladesh
University: University of Dhaka
Mentor: Marija Džunić

2. COMPETITIVENESS OF EASTERN
EUROPE
 Full freedom of factors of productions flow within EU
countries which allows them to arrange capitals in lower cost
and provide cheaper labor to western EU countries.
 Lower cost of labor allows this countries to keep the
production cost lower which is a competitiveness like south
Asian countries.
 high-educated and skilled workers (Than those from the Asian
Countries)
 The institution and policy arrangements are very modern and
provide a degree of certainty and convenience to potential
investments in this area
 Proximity to the Western import oriented EU market so, quick
response can also be a competitiveness.

3. COMPETITIVENESS OF EASTERN
EUROPE (CONTD.)
 There are 21 countries in EE region and among these 10
countries are the members of EU.
 GDP per capita is lower in the EE countries but the
unemployment rate is higher compared to the EU countries. It
might be a potential opportunity for those countries in EU
because the countries within the EU agreement have full
freedom in capital flow; export-import is duty free. So, EU
member EE countries have the opportunity to manufacture
goods in lower cost with an efficient capital movement from
Western European countries.
 Though the productivity is lower but the productivity adjusted
cost of labor is beneficial for the producers which can bring
EU member EE countries a competitive advantage over the
Asian countries

4. EXPERTS’ CITATIONS
 UNIDO (United Nations Industrial Development Organization)
has projected that the present investment of EE countries are
going to make EE countries a better destination for technological
near-shoring and outsourcing.
 “Competitiveness should lie at the heart of Europe’s economic
agenda,” said Børge Brende, Managing Director at the World
Economic Forum. “High levels of prosperity cannot be sustained
over time without higher competitiveness.”. This statement
explains that, EU countries should take the advantage of the
freedom of factor movement to lower the production cost as a
competitiveness.

5. EXPERTS’ CITATIONS (CONTD.)
 Some of the productive tasks associated with high-quality goods
have high learning and technological externalities. In those
sectors, producers tend to form tight relationships with global
buyers who transfer their knowledge and support the producers'
quality-upgrading processes. Diversifying into a broad range of
sectors also reduces macroeconomic volatility, but quality
upgrading becomes necessary to enter new sectors that compete
on quality. (Cited By: Racine, Jean-Louis ;Harnessing Quality for
Global Competitiveness in Eastern Europe and Central Asia
(2011))

6. MY VISION ABOUT FUTURE
INDUSTRIES OF EE
Industries of top demand of 2022.
 Electronics technology
 Communication and IT industry
 organic agricultural industries
 Technical or professional service
industry

7. MY VISION ABOUT FUTURE
INDUSTRIES OF EE (CONTD.)
 All these industries require educated and skilled workers and
simultaneously in low cost to have competitiveness.
 Training through educational institutes of EE countries may
establish this area as a global destination of near-shoring and
outsourcing by 2022.
 These countries will have to prepare the upcoming young
population as an asset of whom the skills and works could be
exported by capturing the outsourcing and near-shoring market to
gain the benefit of capital movements within EU and also to gain
competitiveness over Far East.

8. MY VISION ABOUT FUTURE
INDUSTRIES OF EE (CONTD.)
 if the IT industry and sophisticated communication devices can be
produces in EE with skilled workers and also in lower costs. Then
these industries could be located in EE with a great competitive
advantage with no doubt.
 The human capital will make the competitive advantage so it can
be assumed that, the professional with technical knowledge will
be recruited with higher demands and it is mostly on R&D to
become more innovative.
 Finance graduates who have operational intelligence in cost
reduction and the supply chain professionals will also get priority
on those organizations.

9. MY VISION ABOUT FUTURE
INDUSTRIES OF EE (CONTD.)
 Participation in world trade increasingly requires that
suppliers comply with standards determined by lead buyers
in global value chains.
 Improving the quality of goods and services and diversifying
into sectors where quality matters can be a sustainable
source of global competitiveness. Some of the productive
tasks will be associated with high-quality goods which have
high learning and technological externalities

10. Thank You for being with my
presentation !