Commissions reflections on harnessing globalisation

EU exports supports 25 mio. jobs 80% of EU exporters are SME’s Commission finds international trade/globalisation beneficial in general; EU exports 1.746 bill. 2016 EU exports supports 25 mio. jobs 80% of EU exporters are SME’s 80% of EU imports consists of raw materials, capital goods and components necessarry for the EC-economy to function Increased specialization leads to cheaper and better products Globalisation has helped millions of people out of poverty and enabled poorer countries to catch up In turn this creates new markets for EU and It reduces illegal migration We can not disagree with these view points

The Commission has started to worry and seen the down sides; Countries with lower wages, environmental standards or taxes compete with Europe in low-skill and low-value added industries. This has led to factory closures, job losses and downward pressure on salaries and working conditions. Some foreign companies and governments have engaged in unfair trade practices. EU industries like steel and shipbuilding has been hurt by dumped imports linked to public subsidies and overcapacity. Displaced workers struggle to get a new job – especially when this means acquiring new and higher skills Real incomes of middle-class households in EU and other advanced economies have stagnated and inequallities has grown. 1% of EU-population owns 27% of total wealth Citizens are anxious about the prospect for their children and about whether governments are able to or willing to shape and manage globalisation to the benefits of all Dot 1 goes on internally in EU too and not just in low-skilled segments of industry !!!! Wealth distributions is based on visible wealth and not wealth hidden away in tax havens etc. ???? In last dot the Commissions seems to have forgotten the citizens similar distrust in EU capacities and willingnes OECD is also worried and admit that globalization is not benefitting everybody. They almost admit that their recommendations in the pats has been wrong…!!!!!

Globalisation is not static; Looking ahead – globalisation is not static. Globalisation is not static;

From summary of OECD Bisuness and Finance Outlook 2017;

Introduction to OECD, BFO;‌‌ The 2017 OECD Business and Finance Outlook addresses some forces influencing economic developments that have contributed to recent surprises in elections and referendums. The common theme of these surprises has been voter discontent with globalisation and immigration that are perceived to be causes of unemployment and/or falling living standards for substantial parts of society. This edition focuses on ways to enhance “fairness”, in the sense of strengthening global governance to ensure a level playing field in trade, investment and corporate behaviour, through the setting and better enforcement of global standards. A brief review of important developments contributing to post-war globalisation is provided and a number of policy domains are covered. These include exchange rates and capital account management, financial regulation since the recent financial crisis, the rising weight of state-owned enterprises in the global economy, competition policy to deal with international cartels, the cost of raising capital, responsible business conduct and bribery and corruption.

Greater fairness in cross-border interactions reinforces policies to help workers affected by globalisation and technological change. These should include: increased infrastructure investment, structural reforms, safety nets, worker retraining and education, and kick-start adjustment support for trade-exposed workers.

OECD has come to the same conclusions; (Business and Finance Outlook 2017) “The backlash against globalisation has grown in many countries and too little has been done to help more people cope with the inter-related impact of trade, foreign direct investment and technological change,” said OECD Secretary-General Angel Gurría. “In addition to developing more effective domestic policies, it has become essential for all nations to work together to ensure a level playing field in trade, investment and corporate behaviour to better address the downsides of globalisation while preserving the benefits of economic openness. This will ensure that the growth it fosters is inclusive and sustainable, and that globalisation works for all.”