Showing posts with label Market. Show all posts
Showing posts with label Market. Show all posts

Thursday, February 16, 2012

EU-China summit: Advance on Market Economy Status, retreat on Economic Partnership

At the EU-China summit in Tianjin, José Manuel Barroso, Herman van Rompuy and Chinese Premier Wen Jiabao agreed
that a rich in substance EU-China investment agreement would promote and facilitate investment in both directions. Negotiations towards this agreement would include all issues of interest to either side, without prejudice to the final outcome. [Both sides] agreed to work towards the start of the negotiation as soon as possible.
One the one hand, this is an interesting development. In the past, bilateral investment agreements have allowed European enterprises additional security in their overseas investments, given that they could directly seek arbitration with an international tribunal.

One the other hand, opening new investment negotiations suggests that the 2007 Partnership and Cooperation Agreement (PCA) talks are all but dead. At the time, the EU wanted to update the 1985 agreement that governs Sino-European economic relations, and adapt the partnership to the changed trade patterns of the 21st century (increased trade in services, increased volume of foreign direct investment, questions of intellectual property, China's entry into the WTO in 2001 etc.). The 2010 EU-China summit still referred to the PCA, but this year it was not mentioned a single time. Are economic relations between the EU and China running smoothly if a comprehensive economic agreement is silently scrapped and replaced with the promise of a potential investment agreement? I don't think so. 

Another import point at the summit was Market Economy Status (MES) for China. Despite China's WTO membership since 2001 (analysis: here), the EU has long withheld MES for China and used it as a bargaining chip. Now, it appears that Van Rompuy and Barroso are ready to scrap their opposition if China steps up its help in the Eurozone crisis in return. Granting MES to China would inter alia strengthen Chinese enterprises in anti-dumping cases. The ALDE group is particularly unhappy to see the EU's bargaining chip vanish, but it would soon disappear anyway, given that under China's WTO accession agreement, the EU agreed to grant MES automatically in 2016 (even though this is contested).

Overall, I do not have the impression that this summit was a great advance in EU-China relations. But then, good relations across different cultures are not created overnight. Instead, many small initiatives such as dialogues in climate change, energy, urbanization etc. continue to bring the two partners closer together. In the long run, I would hope that the EU and China, two of the biggest trading blocks in the world, can use the summits to give their voice to global trade and global sustainable development. But in the short run, I believe that bilateral cooperation will continue to take place on the micro-level.

Wednesday, June 1, 2011

I throw away, you don't eat

Between yesterday and today, 219,000 people joined the dinner tables all around the world. Tomorrow, another 219,000 new world citizens will join us on this planet and another 219,000 the day after. They are born into a world that cannot feed them any more and that asks for higher and higher entry fees.

Until 2050, demand for food is expected to rise by 70%, says Oxfam in a new report published today. And within 20 years, global food prices could double as a result of climate change. The consequences look like this:



The EU has realized that it needs to act. At a food security conference organized by the European Economic and Social Committee (EESC) last week, Agriculture Commissioner Ciolos and Development Commissioner Piebalgs highlighted the responsibility that the EU has for food security in developing countries. The message is clear: agriculture in the global South has to become more efficient, more productive, more rewarding for the individual farmer and better governed through international, national, regional and local institutions. Sounds like an affair to be left to paper-producing bureaucrats.

But the help that the global North can give is not only about "capacity-building", it's not only about "technical support" from government to government. It starts with things as easy as reducing food waste. According to a recent study by the Food and Agriculture Organization (FAO) of the UN, a third of all products we buy are thrown away. But of course, demand for them drives prices up in the first place. Unless you are a trader of agricultural commodities, that should worry you.

Now, do I really need a luxury buffet for my XXth birthday that allows my guests a choice between 50 different kinds of food? Or could I cut it down to 15? And if there are leftovers, couldn't I put them in doggy bags and give them to a shelter?
And do I really need to throw away that two-day old cauliflower because I am leaving on a two-week vacation? Or could I put it in the freezer? There are a range of websites that offer advice on nutrition and consumer behavior, for example this one, this one, this one and a lot of others.

We all make choices every day - since we live in a global market, our consumer choices impact directly on others. Ask Spain if you don't believe me.

Shouldn't we be more responsible consumers?

As a courtesy, please don't +1 my blogposts.

Saturday, May 29, 2010

Challenging internship for an international employer

Are you looking for a challenge and want to prove yourself in an international environment? Do you want to make a contribution to make the world better? Do you have a working mentality and approach administrative and practical problems with equal thrust? Can you work at an outstanding academic and organizational level throughout a week of 65-70 hours (excluding occasional overwork, i.e. for special occasions and conferences)?

Then we are looking for you. Ideally you:
  • have a Masters' degree at a renowned European or international university in economics, political sciences, law, social sciences or related subjects with outstanding grades
  • have six years work experience in international environments, at least two of which in a developing country and at least two of which in a leading position
  • are socially active and have founded or at least contributed significantly to several NGOs, social initiatives or emergency funds
  • have outstanding soft skills, allowing you to organize a team even under high time pressure and can present references to prove this
  • speak English, French, German, Russian, Chinese and Spanish like your mother tongue and are fluent in Japanese, Indonesian, Arabic and Farsi, while you have a good working level knowledge in the remaining languages of the European Union as well as most known dialects in Africa and India
  • are 20 years of age or younger
  • consent to postponing the foundation of a family at least until your 45th birthday
  • bring your own car and consent to paying your travel expenses
  • bring your own computer (newest model, newest hard- and software is an asset)
  • bring in a statement from your parents testifying their willingness to back you up with up to 10,000 EUR per month in case of intensive financial demand for travel and other expenses related to the position you hold
  • are still enrolled as a student at your university, eligible for an Erasmus grant and can make the European Union pay for you so we don't have to do it

Saturday, April 24, 2010

The precarious society

Yesterday, the European Youth Forum (YFJ) invited young European citizens to a debate on the precarious working conditions for young people. The video that they spread before the event shows the urgency of action:



40% of young Europeans (15-24) are on a temporary work contract, 25% are at a risk of poverty, 20,6% are unemployed. And as they grow older, precariousness does not stop. College graduates spend years going from internship to internship. They are highly qualified, highly capable and highly productive. The college graduates among my friends are far away from a stable living environment. There are simply so many qualified graduates, that enterprises and public bodies can recruit them without paying. I picked this from a random European job website: "favourable consideration will be given to applicants who are eligible for funding via Erasmus or other programmes". In other words, please give us your knowledge, your enthusiasm and your working time...oh, and please get taxpayers to reimburse us the cost.

Even those who are firmly established in an enterprise cannot settle and start a family. They are dispatched to a particular city for six months, then dispatched again. In Düsseldorf, Germany, there is a new market in shared apartments for young business employees. With their signature on the contract, young employees also buy a network of like-minded young travelers - a new temporary family so to speak.

Is this the end of bourgeois civilization, if not everywhere then at least among university graduates? Are families now founded at age 40 instead of 30, or not at all any more? The futurist Matthias Horx suggests that young citizens have to accommodate these changes and take out the positive implications. He concedes that the job market is becoming more complex; citizens have to be flexible and react to the changes in demand as they occur. If demand arises for a wellness consultant, then citizens should specialize in this field. And re-specialize if demand falls again.

On the other hand, Horx believes that flexibility allows citizens a greater liberty and a more self-determined life. Work must not be the only factor of personal identification and satisfaction, he says. Temporary occupations allow citizens to refocus on themselves and on their own skills rather than the needs of their enterprise. Thus, saving money during working periods may allow a few months of reflection phase or training when a temporary contract has terminated. But not all young citizens have the possibility to save if they need to care for a family at the same time.

Certainly, a more flexible society also bears opportunities. Life in a shared apartment with young, highly qualified business employees will provide more contacts, more network and maybe more creativity and technology than a family home. But shouldn't the choice be left to young people themselves?

The audience at the New Energy Debate of the European Youth Forum answered that question with a resounding "yes!". In questions to Commissioner Maroš Ševčovič (inter-institutional relations) and the chairman of the Parliament Intergroup on Youth, Damien Abad, MEP, members of international and national youth organizations demanded quick action on youth unemployment. They also demanded that non-formal learning and a combination of university and vocational education be given a formal status, and recognized by European employers. This way, they hope, young citizens will be able to clearly present their skills to the market. Damien Abad (30) recognized the needs in his answers to the audience and proposed two further ideas: an Erasmus for apprentices and a European status for interns.

Those can only be small steps on the way to a more secure future for young citizens in Europe. It is clear that there is no way back to former patterns of bourgeois society. Education, consistently following the development on the market and reacting to new situations - these are the patterns of the knowledge society. But it is up to politicians, enterprises and organized civil society to make these changes socially sustainable. The initiative of the Youth Forum was certainly a first step in the right direction.