Factors drivenInvestment DrivenInnovation Driven

BASIC MODELS OF DEVELOPMENTThe Free Economic Zone (FEZ) is a geographic economic area in which goods enter duty free for processing and export, and in which investors are offered a variety of incentives (WEPZA). Industrial District: Firms consciously network with each other and active trade associations provide shared infrastructure. Firms merge with CommunityPorters cluster is a geographic concentration of an array of linked, competitive firms that either have close buy-sell relationships,

QUALIFIED INDUSTRIAL ZONE (QIZ)

Emilia-Romagna. Some Indicators

Population4.037.095 Total labour force53,0%Total unemployment rate3,8%Female labour force44,3%Female unemployment rate5,3%GDP per head ()21.132Employees in the manufacturing industry 645,648 Manufacturing local units94.817 Firms with less than 50 empl.98%

Emilia-Romagna: industrial districts

PIACENZA

RIMINI

PARMA

REGGIO EMILIA

MODENA

FORLI

BOLOGNA

FERRARA

RAVENNA

Machine tools

Farm machinery

Food processing

Textile-clothing industry

Upholstered furniture

Packaging machines

Ceramic products and machines for ceramic industry

Shoes

Biomedical products

Wood processing machines

Emilia-Romagna at a glance

Area: 22,120 km2Population: 4,000,000Per capita GP: 25,733 Municipalities: 341Enterprises: 415.000

Cooperatives make up over 40% of the GDP of the ER region In Bologna two out of three citizens are members of a cooperative In Bologna over 85% of the city's social services are provided by social co-ops Per capita income in ER has risen from 17th to second among Italy's 20 regions Per capital income is 50% higher than the national average Of the European regions, ER is number 11 of 122 regions in terms of GNP per inhabitant Bologna has the highest disposable income of any of Italy's 103 provinces Bologna has the highest per capita expenditure on the arts of any city in Italy The unemployment rate of 4% is virtually full employment 70% of Bologna's households have home ownership

ERVET

The ERVET System

The new Players System

TA and support to PA and Local Authorities for Promotion and Improvement of the regional territory

Models of Industrial DevelopmentCommunity Industry SynergyClustering Specialization ProcessFree Economic ZoneIndustrial DistrictPorters Cluster Hybrid Industrial District Cluster Strong WeakStrongHybrid FEZ-CHybrid ID-FEZ

COMPETITIVE ADVANTAGE IN THE MIDDLE EAST Factor Conditions & GovernmentEgypt lowest labor cost PA highest labor cost Jordanian universities not adapted to needs. Israeli high skilled labor,Knowledge sharing (QIZ)

Demand Conditions Mutual impact of demand sophistication (irrigation)Economies of scale for Israeli producersArab software

Strategy, Structure & RivalryCompetition between Jordan, Egypt and PA on Israeli contracts Israeli new specializations, product differentiation Related & Supporting IndustriesTextiles (Egyptian upper level)Mining ,Chemicals(Phosphates)Tourism

SOCIAL AND CULTURAL ENVIRONMENTS Culture = Way of Living Culture universals: George P. Murdock, common denominator of culture: global not uniform Athletic sports, body adornment, cooking, rituals, religion, family feasting, medicine, meal time.

Edward T. Hall: Low context culture (paper work, US), High context culture (persons value, Japan-Saudi Arabia)

CONTEXT ORIENTATION IN MAJOR CULTURES Japan China Arab GermanyScandinavia United StatesHigh ContextLow Context

IMPACTS OF CULTURE ON MANAGERIAL BEHAVIORS

HOFSTEDES CULTURAL TYPOLOGY

HOFSTEDE INDEX

EMERGING CULTURAL PROFILES HighLow ``HighHierarchy Uncertainty Avoidance

Low(Formalization)

HOFSTEDES MAPSUncertainty AvoidanceLowHighPower Distance Small Large DEN SEW IRE GBRNZL NOR USA CAN SIN HOK IND MAL PHI

AUT SWI FIN GER, ISR

IRA THA PAKJAP SPA KORTUR FRA MEX POR

CULTURE & BUSINESS PROCESSES Policy & Procedures:US, low u.a., high formal reportingUK, low u.a., detailed jobs descriptionGermany, high u.a., well internalized Systems & Controls:French = control(hierarchy), British=coordinate)US-UK reporting proceduresFrench: hiring elites German operational planning Planning strategic(UK)

Information & Communication:French: Compartmentalized Sweden: Communication open informal, transparencyDecision Making:Participation in decision making (Sweden, Germany-less hierarchy)PDG in France Italy (Zanussi)

CUSTOMS IMPACTS

PARTIAL EQUILIBRIUM ANALYSIS OF A TARIFF SDPw1Pw2Q2 Q4 Q4 Q1Sw1Sw2PriceQuantity

IMPACT OF CUSTOMS UNION AGREEMENTS

THE EUROPEAN UNION MILSTONES1945 Two Super Powers1948-52 Marshall Plan1951 Schuman Declaration1951 Paris Agreement ECSC1957 Roma Agreement EC1968 Custom Union 1985 Cockfields White Paper1987 Single European Act1991 Maastricht Treaty1992 SEA Implementation1997 Amsterdam Treaty1999 Monetary Union1999 Nice Treaty2002 EuroDecember 2007 Lisbon Treaty

ENLARGEMENT OF THE EUROPEAN UNION1956: Germany, France, Benelux, Italy1971: UK, Ireland, Denmark1981: Greece1986: Spain, Portugal 1995: Sweden, Austria, Finland2004: Poland, Hungary, Czeck Republic, Cyprus, Slovakia, Malta, Slovenia, Lithuania, Latvia, Estonia2007: Romania, Bulgaria

THE INSTITUTION OF THE EUROPEAN UNION THE COUNCILCommission ProposalsLegislative PowerCo-decision with the ParliamentForeign & SecurityMinistersThe European CouncilTHE COMMISSIONExecutive PowerProposes AmendmentsManages PoliciesControls Policies ImplementationPresident Barrosso+ 26 Ministers, 24 DG

From 1 November 2004, a qualified majority will be reachedif the following two conditions are met:1. if a majority of member states approve in some cases a two-thirds majority);a minimum of 232 votes is cast in favour of the proposal, i.e. 72 % of the total (roughly the same share as under the previous system).2. In addition, a member state may ask for confirmation that the votes in favour represent at least 62% of the total population of the Union. If this is found not to be the case, the decision will not be adopted.

Effective and efficient decision-making: From 2014 a decision is taken by 55% of the Member States representing at least 65% of the Unions population. President of the European Council elected for two and a half years, Direct link between the election of the Commission President and the results of the European elections, Treaty of Lisbon

the Treaty of Lisbon improves the EU's ability to act in several policy areas of major priority for today's Union and its citizens. This is the case in particular for the policy areas of freedom, security and justice, such as combating terrorism or tackling crime new High Representative for the Union in Foreign Affairs and Security Policy, also Vice-President of the Commission, will increase the impact, the coherence and the visibility of the EU's external action.

Greater powers for the European Parliament Co-decision procedure' (renamed 'ordinary legislative procedure') has been extended to legal immigration, penal judicial cooperation (Eurojust, crime prevention, alignment of prison standards, offences and penalties), police cooperation (Europol) and some aspects of trade policy and agriculture. The Parliament and the Council will determine all expenditure together.

Greater role for national parliaments enforce subsidiarity means that except in the areas where it has exclusive powers the EU acts only where action will be more effective at EU-level than at national level. Any national parliament may flag a proposal for EU action which it believes does not respect this principle. This triggers a two-stage procedure:

Transparency in the Council of Ministers Citizens participationcitizens' initiative, whereby one million citizens, from any number of member countries, will be able to ask the Commission to present a proposal in any of the EU's areas of responsibility.

Distribution of votes for each member state(from 01/11/2004)Germany, France, Italy, United Kingdom 29Spain, Poland 27Netherlands 13Belgium, Czech Republic, Greece, Hungary, 12 PortugalAustria, Sweden 10Denmark, Ireland, Lithuania, Slovakia, Finland 7Cyprus, Estonia, Latvia, Luxembourg, Slovenia 4Malta 3TOTAL 321

POLICIESAgriculture & Food BusinessCross cutting policiesEconomic & Finance and TaxesEducation, Culture & YouthEmployment and Social rightEnergy and Natural resources Environment, consumer and, health External relations and foreign affairs Justice and citizen rights Regional and local development Science and technology EU explainedTransport & travel

DGsAgriculture & Rural Development CompetitionEconomic & Financial AffairsEducation & CultureEmployment, Social Affairs and Equal OpportunitiesEnterprise and IndustryEnvironmentFisheries and Maritime Affairs Health & Consumer Protection Information Society & Media Internal Market & Services Joint Research Centre Justice Freedom & Security Regional Policy Research Taxation & Custom UnionTransport & Energy

External Relations Development, Enlargement, EuroAid, External Relations Humanitarian Aid ofice, TradeGeneral Services European anti fraud office, Eurostat, Press & Communication, Publication Office, Secretariat GeneralInternal Services Budget, Bureau of European Policy Advisers, Informatics, Infrastructure & Logistics,, Internal Audit service, Interpretation, Legal service, Personnel and Administration, Translation,

THE PARLIAMENTLegislative Power co decision with the CouncilAssent Procedure(int.)Adoption of the BudgetApproval of the CommissionParticipation to the European Council THE COURT OF JUSTICE 13 Judges for 6 yearsRequest from Private, Country, FirmUnique Legal Power

THE EUROPEAN UNION PARLIAMENT 2005-2009

THE ECONOMIC &SOCIAL COMMITTEERepresentative of Economic Forces222 RepresentativesSectorial CommissionsSocial & Economic CommissionsTHE COMMITTEE OF REGIONSConsultative Power222 membersTrans European Network, public, Health, Education, Economic Cohesion