The nature of global conflict has changed dramatically during the past century. The bloody battles of the First and Second World Wars were followed by the Cold War in which the tensions shifted from a military to a political nature. A more recent shift is that the world is currently embroiled in a global economic battle. One of its consequences is that economic security will become an increasingly important part of national security. To survive and prosper in this type of conflict, countries and companies must compete economically. The problem is, however, complex and not one that can be adequately addressed by considering it as only economic. Furthermore, one cannot manage the problem by considering economic metrics only. Instead, competitiveness emerges as the core issue, and provides the focus for a policy approach. There is a strong link between competitiveness and innovation, particularly with regard to technological innovation. South Africa is in an extremely precarious position with regard to international competitiveness, according to various authorities. Moreover, the country's sustained poor performance in the competitiveness domain is a national threat Even though strategic intent is there, the desired outcomes are not reflected in the results. One may debate the accuracy of published ratings, but ultimately a concerted national competitiveness initiative must be deployed. This will not detract from current initiatives that are aimed at, for example, relieving poverty, creating jobs, providing adequate housing, health care and education or fostering innovation and entrepreneurship, but rather provide a meta coordinating and benchmarking policy vehicle. If the country's competitiveness can be improved, many of its other problems will be addressed as well.
