Some business leaders in New Zealand have decided to lay bare the reasons why we shouldn’t manage the economy like a company. They think
A successful business needs a competitive advantage. A successful country is no different.
Actually, it is very different. As the WTO says:
…it is meaningless to say a country has a comparative advantage in nothing. The term is one of the most misunderstood ideas in economics, and is often wrongly assumed to mean an absolute advantage compared with other countries.
Which is, I think, exactly the mistake that the Pure Advantage group are making.
Also, Bill Kaye-Blake appears to agree and all but suggests that the entire scheme is an elaborate way to secure government funding for their organisations. I’m not ready to join the conspiracy theory quite yet so I’ll stick to harping on about the dangers of management thinking in economics.