Transcript Slide 1
Flexicurity Plus Flexicurity is more than a labour market model…. it is an economic and social model based on a combination of market liberalism and social welfare with a focus on protecting and developing individuals rather than jobs Flexicurity Plus Protecting individuals rather than jobs means that market liberalism can prevail and that there are no calls for protectionism or state subsidies Working with individuals mean developing people (the most important asset in global competition) in stead of protecting jobs that may no longer be needed Example: Postal liberalisation in EU Flexicurity Plus A system with high social expenditures is not possible in the long run with high unemployment. Active Labour Market policy is a response. Tax financing of social sector ensures solidarity between those in work and the unemployed What is most costly: Financing an Active Labour Market Policy or financing high unemployment? There is a European Economic and Social Model and it is characterised by large public sector, focus on welfare state and emphasis on the environment. Japan: 26% Taxes as % of GDP: USA: 25% China: 16% EU-15: 40 -55% India: 17% European Economic and Social sub models Northern Anglo-Saxon Continental Southern Eastern? European Economic and Social sub models Anglo-Saxon Similarities: Hands-off approach to markets Differences: Size of welfare state Northern Similarities: Large welfare sector Differences: Approach to market Nordic model combines a liberal approach to markets with high quality welfare sector and provides ‘flexicurity’ Continental World Economic Forum scoreboard 2006 GLOBAL: EU: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Switzerland Finland Sweden Denmark Singapore US Japan Germany Netherlands UK Hong Kong Norway Taiwan Iceland Israel Finland Sweden Denmark Germany Netherlands UK Austria France Belgium Ireland Luxembourg Estonia Spain Czech Rep Slovenia 16. Portugal 17. Latvia 18. Slovak Rep 19. Malta 20. Lithuania 21. Hungary 22. Italy 23. Cyprus 24. Greece 25. Poland In global top-15: 5 Flexicurity countries Economic policies Monetary Policy Fiscal Policy Structural Policies The introduction of the Euro put focus on Structural Reform Policies Lisbon was an answer Did politicians listen? Attitudes towards globalisation in Europe Fra Pol Ita Spa CR Bel Ger UK Fin Swe Ire Net Den 0 1 2 Source: IMD survey 2004. Index 0-10. 3 4 5 6 7 8 Attitudes towards globalisation in Europe The Polish Plumber I stay in Poland. Do come over in numbers. From the industrial society to today IT Production R&D Public sector and competitiveness WEF score 6 Fin Swe Den UK Spa 5 Ger Bel Fra Ita 4 Tax of GDP 30% 40% 50% Public sector and competitiveness Public sector reforms are essential for competitiveness agenda: •Value for money •Combat corruption •Modernisation (eGovernment) •Good infrastructures •Drive innovation in public sector and markets Level of corruption 10 9 8 7 6 5 4 3 2 1 0 Pol Slova Lat CR Gre Lit Hun Ita Est US: 7.5 – Canada: 8.5 Slove Cyp Por Spa Fra Ire Bel Ger Aus Lux UK Net Swe Den Fin Transparency International 2003