Wednesday, February 21, 2007

Third world nations 'main threat to UK economy'

BBC on Monday, 6th Feb. 2007 reported China and India as a main threat to UK economy. Report was based on surveys carried out by accountancy giant Deloitte and marketing research firm YouGov.

China is seen as the biggest threat to the UK as its manufacturing sector continues to boom, while India now houses a number of call centres for UK firms. In a study of public attitudes to global economic competition, 79% of 2,704 people identified fast-growing China as the largest threat to the UK. India was seen as the main challenge to the UK by 45% of those surveyed.

The Deloitte/You Gov survey found that 64% of respondents expressed a negative reaction to such off-shoring, and a quarter also held the opinion that existing off-shoring programmes should be reversed. Just 6% said they supported their continuation.

Deloitte's head of consulting, David Owen added that there "needed to be a great understanding among the public that the transfer of certain jobs to other locations is a trend that is likely to continue and brings with it opportunities as well as threats".

To help boost UK competitiveness, 75% of the survey's respondents said there should be greater investment in education and training.

A further 60% said there should be more support for small business start-ups.

"One possible way for government to raise skills is for tax credits to be awarded to businesses for training spend, similar to the incentives used to raise UK levels of innovation," added Mr Owen.

It can be noted that as businesses in UK looks back to Government to support boosting of innovation programmes and retaining jobs, Government in developing nations like India or China have never backed businesses to go out fishing for jobs. It is all out of their hard work, skills and dedication that they are achieving and cruising to such great heights.

It is people who can bring a difference. Otherwise, flow of resources from higher areas to lower areas is the rule of nature to bring balance and strike harmony.

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