Britain is a more prosperous and fairer country than it was a decade ago. But the next ten years will bring even greater demands from the global economy, just at the moment when we must redouble our efforts to tackle poverty.

By 2017, China and India will have nearly doubled their share of world income and are likely to be bigger than the British, French and German economies combined. Already, China produces half the world’s computers and educates around 4 million graduates each year.

We are in a position of strength to take on these challenges, with the highest employment rate in the G7 and having already lifted 600,000 children out of poverty. But we have to keep on looking for new ways to support working families to compete with the best in the global economy. The most recent UN report on investment from foreign companies put Britain as the number one destination for foreign investment for the first time in 30 years, with double the foreign investment in the United States.

How do we compete with the best in the world?

Increasing trade and international investment present unparalleled opportunities for Britain. Ten years of growth and stability have put us in a position of strength to compete in the world. We have the highest employment rate and the second highest GDP per head of any of the major industrialised countries. Public services and public infrastructure have been revitalised through investment.

In both China and India, a billion potential consumers and booming economies will generate growing demand for British goods and services – UK exports to China more than doubled between 2000 and 2005. In 2005 the UK attracted more foreign direct investment than any other economy and the UK is also the world’s second largest outward investor. Looking ahead, securing further trade reform through the Doha Development Agenda has the potential to generate further benefits for the global economy and the right deal could significantly reduce poverty around the world.

Points to consider

• How do we keep our economy competing in the world economy and make the most out of the rise of countries like China and India?
• What more can we do to make young people enthusiastic about science and address the gender imbalance in engineering and technology?
• How do we build up our competitive services and manufacturing industries, especially in key growth areas like environmental industries and biotechnology?
• What more support is needed to reach our target of an 80 per cent employment rate?
• What more do we need to do to make sure the rights of vulnerable workers are protected?