Country Analysis Framework

Mode of Analysis

• View country as a unit much like a firm with goals, comparative advantages and measurable outcomes.

• More complicated as the goals are less obvious, constituencies more varied, and decision making less clear.

• Examine past & present and project into the future. oMust choose time frame of analysis to guide

focus.

Three Parts

• Context • Strategy• Performance

Context• Background & Resources• Players of the Game

oFirms: Corporate SectoroGovernment ActorsoNon-state Actors

• Rules of the GameoFormal Rules o Informal Rules

• International Dimension

Background and Resources

Resources•Natural•Labor•Capital•Infrastructure•Technology

Context•Rules of the Game•Players

Background•History•Culture•Demographics•Geography

Austen, J.E., 1990, Managing in Development Economies

Strategy•Vision•Goals•Policies

The game

• Players of the GameoGovernment Actors

oPolitical LeadersoGovernment Departments

oFirms: Corporate SectoroNon-state Actors

Rules of the Game• Formal

– Constitution, – Type of Legal system– Property Rights

Link

Rules of the Game

• Informal– Unwritten practices– Business/work culture

· A highly insular and consensual business culture that is resistant to hostile mergers and acquisitions (M&A) and prefers to do business, especially M&A transactions, with familiar corporate partners;

2011 Investment Climate Statement - Japan

Link

Strategy

• Vision - Overall view of society• Ideology • Orientation

• Goals• Policies

Performance

• Economic: GDP, Employment, Inflation

• Social: Income Distribution, Health, Education

• Political: Stability, Freedom• International: Balance of Payments

Synthesis

• Construct a story that uses the different elements to describe the situation faced by the country.

• No perfect system for describing a country’s situation. This system offers a straight-forward, easily comparable framework.  

• Country-level approach may also be questioned. Any country has many individual actors which will each have their own objectives, strategies and performance measures.