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Is growth the only alternative to the world?

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2011-09-29
Either EU will continue to integrate or it will end up with disintegration, which will lead to the breakdown of the Euro zone. Restoration of the economic growth and capability of the economies to generate new workplaces, these are two main tasks to be handled by Europe. However, the disadvantage of Europe is lack of decision-making. EU is filled up with chaos, with plentiful of recommendations, yet without any movements. The crisis, which may arise, unless proper decisions are taken, will be extensive. Decisions have to be made immediately and this is the last call. - highlighted Nouriel Roubini, an American economist, participating in the panel „Is growth the only alternative to the world", held on the second day of the European Forum of New Ideas organised by PKPP Lewiatan in Sopot
Moreover, Peter Schwarz, an American writer and futurist, recognized growth as the crucial item. If growth drops, political conflicts will break out. Responses to current problems have to be searched for in human decisions as we deal with natural barriers. Therefore we need political decisions, which will stimulate an economic growth. It will enable us to solve numerous political conflicts. According to Peter Schwarz, growth can be restored through releasing the freedom movement for workers, capital and ideas. In effect, we have to be prepared for higher variability and flexibility. In order to maintain welfare, that is a foundation of peace, it is necessary to follow the global cooperation and innovation.

Don't panic - this is the main advice of Lord Mandelson, former EU Trade Commissioner. He noticed that currently we are not waiting for the hidden depths of the recession because we have not reached the depths by far. That's why, the short-term perspective of the global economy is not optimistic. Therefore, governments should not compete against each other, but make up advantageous conditions for development. As the foundation of the further growth is protection of the common market. And the permanent advantage of Europe, as compared to the US, is innovativeness and technological progress. However, Mendelson stressed that these days politicians are not leaders, they are too afraid of the public opinion. And it happens in the times, when difficult decisions need to be made. Leaders are also reluctant to explain decisions they have taken and thus the integration idea actually disappears. Politicians have to wake up in order to take advantage of the opportunities provided by the globalization.

Leadership is a challenge. We hold a strong potential of growth, yet we have to let it off. And this is the main task. Furthermore, we have to rise taxes and work longer. Today is the time of unpopular decisions, which are to be taken up just by the leaders - said Dominic Barton, Managing Director of McKinsey & Company. He also persuaded that the entire world is experiencing an economic growth. Yet, the crucial barrier is unemployment. 50 million young individuals stay out of work and business has to respond to it somehow. The objective to be met by the business is to declare what type of people it demands.

Hiromi Yamaji, Executive Vice President, Executive Chairman of the Board of Directors, Global Investment Banking Nomura Securities Co. noticed that it is necessary to look to the East whilst searching for growth, and use up opportunities based in Asia.

 


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