Main Messages
The recommendations of the panelists on how to stay competitive in the new era of globalization can be summarized in the following points:
• by supporting the Single Market (Carl Bildt, Alexander Stubb and Per Unckel)
• by working towards a fully-integrated Russia (Carl Bildt)
• by unifying and simplifying the regulatory environment in the BRS (Carl Bildt)
• by improving venture capital environment and entrepreneurship (Carl Bildt)
• by doing more for R&D and making certain that it is effective (Carl Bildt)
• by allowing free mobility of people and solving the environmental challenges of the Baltic Sea (Carl Bildt)
• by allowing companies to grow and helping them in moving cross borders (Lars G Nordström)
• by closing the gap between the declarations of politicians on national/EU level and politicians on the local level (Lars G Nordström)
• by branding the BSR as a competitive, forward-driving region (Alexander Stubb)
• by implementing a Baltic Sea Strategy which was recently proposed the EU (see Stubb’s ten commandments below)
Themes
New Context of Globalization
Minister for Foreign Affairs of Sweden, Carl Bildt, set the scene by describing the characteristics of the third phase of globalization, which we are entering. There are three important determinants of this new wave. Firstly, due to the rapidly growing, emerging markets no less than 40% of the world’s population is now entering the global system of production and consumption, which clearly shapes the global economy. The second important factor is the enormous advantages in science and technology, which is transforming everything. The third feature is the aging population which has created a global pension-driven capitalism, hunting for returns all over the world. Besides these changes, we are faced by/situated in a truly integrated European economy, where competitive forces are increasing faster than anywhere else in the world. Bildt pointed out that we have a single market of 450 million people and Europe is by far the biggest trader and exporter in the world. “It is within this context our Region, our countries and companies must be competitive: in a bigger, more competitive and very dynamic environment.
To highlight great achievements from an integrated BSR, he used the story of Skype as a perfect example. It is Northern European, much faster, more entrepreneur-driven and much more global than what we have seen before, he said.
The Baltic Sea Region in the New Wave of Globalization
Bildt emphasised a couple of factors that are critical to the success of the BSR. He stressed that we must 1) support the Single Market of the EU that integrates our economy, 2) work towards a fully integrated Russia, 3) ease rules and regulations in our economies, 4) improve venture capital environment, 5) do more for R&D and make certain that it is effective, 6) allow free mobility of people, and 7) solve the environmental challenges of the Baltic Sea. He stated that “when we can leverage the Nordic-Baltic base within the global context, then we can be highly successful.”
President and Group CEO of Nordea, Lars G Nordström added a practical issue to Bildt’s recipe and he addressed the competition authorities to let big companies in smaller countries to become even bigger, so they can compete on a European and a global scale. “We must also see to it that those companies are supported when they try to go cross boarder”, he said. Nordström also pointed out that the large substantial gap between the declarations from politicians on national/EU level and the local level must be closed. He believes we have to get rid of the “we are so special” syndrome, as he called it. “If we want to compete on a larger scale, we must go much more for unification, determination and get rid of the “we are so special” syndrome.” He stated that growth is a prerequisite of success, but it must be sustainable, broadly founded and well-balanced. It must be based on sound principles when it comes to costs and investments. The “unsophisticated growth” approach will not help us to compete on the European or global arena.
MEP from Finland, Alexander Stubb started out by saying that after the enlargement of the EU we have a window of opportunity. It is of utmost importance that the BSR brands itself as a forward-driving, competitive region now, when the focus of the EU is very strong on the Northern part of Europe. He expressed that using the Baltic Sea to re-brand the Northern dimension would be extremely important. A Baltic Sea Strategy was recently proposed to the Commission based on the following 10 commandments for the BSR:
1) We need an EU initiative, a so-called Baltic Sea Strategy
2) We need to rationalize the cluster of councils in the BSR
3) We need a budget line for the Baltic Sea Strategy
4) We need to protect the environment
5) We need a common energy market
6) We need a borderless Baltic Sea with smooth border crossing
7) We need to support all infrastructure projects
8) We need to implement free movement of goods, services, labour & capital
9) We need centres of excellence
10) We need a stronger Europol presence to fight organized crime
Secretary General of Nordic Council of Ministers, Per Unckel’s recommendations for the BSR were 1) to implement IVY league universities, 2) to have a knowledge policy that is able to attract all European research investments (if we managed to move these investments to our part of Europe it would mean that we could lay the foundation of something that could develop around these research investments), 3) to work on cluster development (we need to look at the Region as a whole, as most of our countries are too small to become a world-class cluster), 4) to establish a plain field for competitive activities, especially within financial markets, in order to attract investments, 5) to support those that are in less favourable situation.
The Cluster of Councils
“We have a cluster of councils in this part of the world!” Bildt said when describing the many bodies and institutions that exist in the BSR. He added that the informal networking effect of leading politicians and businessmen within the BSR is immensely more important than the formalities and the papers they produce. Per Unckel agreed that the structures of all these councils are too heavy and it would be beneficial to put more attention on substance and less on the formal structures. Nordström disagreed with these ideas and stressed that it is not the formalities or the structure that is the problem, but the lack of pressure on the councils from the outside claiming concrete actions. During the end discussions, Bildt stressed that he believes the clusters of councils can play an effective role in lobbying inside the EU for the policies we need. He added that through the activities of the councils “we can highlight our special needs, potentials and perspectives of this particular Region”.
