The Councillor for Treasury and Economic Model, Vicent Soler, highlighted the need of a change of the productive model to re-launch the economy.
The Councillor for Treasury and Economic Model, Vicent Soler, highlighted the need of a change of the productive model to re-launch the economy. “There is a need of a change in the productive model in order to make the Valencian economy grow again“, pointed out Soler. “We need to look for the productive efficiency, focusing on productivity, innovation and internationalisation. This will allow us to compete in a globalised world and to hold the European social model”, said the Councillor.
He did it during the conference of the ADEIT University-Business Foundation that, under the title “The needed economic model for the Valencian Community”, gathered the principal agents of the Administration, business and University world.
The conference, presented by the ADEIT and the Board of Trustees president of the Universitat de València, Manuel Broseta. opens a new cycle of conferences organised in ADEIT, where the principal topical issues for the Valencian society will be analysed.
Manuel Broseta highlighted the important role of the universities in the change of the productive model. “We all agree that the change of model has to go through a bet for knowledge and, in this area, the universities have a lot to contribute with”. Likewise, he appealed to the responsibility of business men, university, politicians, organisations and the society to “bring the Valencian society out of this moment”.
Need for increasing the business dimension and competitiveness.
Soler explained that, at the same time that the public institutions are carrying out policies to facilitate the transition to the new model, and since the Valencian economy has an important base od small and medium companies and micro-companies, “these must understand the importance of increasing the business dimension, focusing on the intercompany collaboration”.
The Councillor explained that the prices keep playing an important role, but are not decisive in competitiveness. In the past, explained the Councillor, our competitive success in foreign markets was based on a strategy based on cheap products. “We achieved that because we were specialised in intensive production processed in work, being the work relatively cheap”. But this strategy is almost out in mid and long terms and it is “necessary a change of the productive model”
“The most advanced countries, like Germany or the United States, consolidate the competitiveness for the improvement of productivity and differentiation of the product and productivity processes”, pointed out Soler. In this sense, he mentioned the need of a constant, technological, commercial and of all types innovation, and to do so, he said, there is a need of an investment in human capital, technologic capital and physical capital.
Vicent Soler mentioned the four main instabilities of the Valencian and Spanish economy: the weakness of the work market, a negative commercial balance, the public and private inactivity of the economy that became a problem of public debt and an inflation differential of an structural nature, affecting the competitiveness.
“Nowadays we are coming out of the recession, as evidenced in the annual GDP growth”, explained Vicent Soler. The Councillor added that even the reactivation of consumption and investment are indispensable for a sustainable recovery, the increase of Valencian exportations must play an essential role. In this sense, Soler pointed out that the limited mechanism of our main commercial partners “will force the Valencian companies to look for new destinies to consolidate the growing exportations trajectory”.
Here you can see the complete conference:
Images:
Board of Trustees
