Event at the Federation of German Industries (BDI)
The Financial Crisis - The Transatlantic Business Partner - New Economic Powers
December 2, 2008, 14:00-17:00
After leaving work at the Federal Ministry of Economics and Technology a little after noon with a coworker for lunch, I arrived at BDI at Breitenstrasse 29. This is the third time I have been here in the last week, so I already feel at home. Entering the Mendelssohn Room, we took seats in the second row and listened with interest to the lectures and moderated discussions.
The panel was a "who's who" in international business and diplomacy:
- Jürgen Thumann (President of BDI)
- William Timkin (U.S. Ambassador to Germany)
- Fred Irwin (President of AmCham Germany)
- Mark Spelman (Global Head of Strategy at Accenture and Chair at AmCham)
- Jochen Homann (State Secretary at the Economics Ministry)
- Dan Hamilton (Professor at SAIS Washington and coincidentally Chair of the Bosch Fellow Selection Committee which picked me and the other 19 Fellows this year!)
- Michael Baunton (VP EMEA, Caterpillar, AmCham)
- Mikael Hägstrom (EVP EMEA, SAS Institute, AmCham)
- Moderation by Petra Pinzler (Die Zeit)
After introductions by Thumann and Spelman, State Secretary Homann provided the keynote (prepared written) speech which mentioned statistics on Germany's trade and investment, current issues in transatlantic commerce, the role of Ambassador Timkins in international relations, reports that cite U.S.'s decreasing dominance, and his optimism at commercial resilience.
Then the podium went to Dan Hamilton who introduced and pointed out key findings of his research study titled, "Germany and Globalization" which is part of a series titled, "Globalization & Europe: Prospering in the New Swirled Order". He elaborated on five indicators: trade, investment, capital, ideas, and people.
Here are some key ideas that stuck with me about Hamilton's findings:
- Trade: Germany is too dependent on exports and thus its trading partners.
- Investment: Investment flows from Germany to U.S. are 4X higher than trade flows (!)
- Capital: Germany profits from free capital flows.
- People: Germany is a "magnet"for uneducated migrants, but deters highly-educated migrants. - Educated workers see the U.S. as a more promising destination than Germany.
- Ideas: Education is Germany's "achilles heel".
Following Hamilton's presentation (in perfect German language, which totally impressed and surprised the German audience), the panel went on stage. Mrs. Pinzler, who clearly had experience moderating, steered the discussion with directed questions at panelists and transitions between speakers.
While I will not go through everything that was said, I would like to mention the things I scribbled into my notebook that seemed insightful at the time as evidenced by a star next to them:
- Germany needs to be more self-confident about itself and communicate itself to the world better.
- Irvin, who was a real pleasure to listen to, stated that President Bush and Treasury Secretary Paulson were doing the RIGHT thing in their actions in the financial markets and the rescue package. Why? Because they restore confidence.
- Irvin and Ambassador Timkin both critiqued German education as suppressing the top students and pulling along the "weaker"ones.
- The lack of identity among German citizens is a weakness. Integration, which is a very sensitive topic in Germany, was apparently not going well and leaving many behind. (I sensed that this was not well-received by the German listeners)
- France attracts more FDI than Germany (!)
Finally, the moderator asked the panel, "What one thing would you do if you were the King of Germany?"
Here's what they said:
- Focus on services, the untapped potential in Germany
- Attract creative talent, for it is important for the future
- Restore pride and trust to Germans
- Embrace diversity
- Promote people
- Instill meritoracy to replace the planned and regulated system
As a finale, Spelman pleaded us to do the following:
1) read the report
2) communicate to your organization
a) benefits
b) balance
3) use our leadership positions to influence behavior
A very ornate, fully catered, reception followed.
What is the BDI?
The BDI is the umbrella organization for industrial businesses and industry-related service-providers. As the representative of the interests of industry the BDI coordinates the views and recommendations of its members. It provides information covering all fields of economic policy. The BDI thus supplies support for businesses in the task of keeping pace with the intensive competition resulting from globalisation. (from website)
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