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Cultural Driven Market Economy by Kris Rogiers

Note 1: Cultural Anchorage

Cultural anchorage as a driving force for Europe

It was often stressed today that nations must have some big national enterprises at their disposal in order to secure their welfare and autonomy.

That's why I have the audacity to propose to start up a strategic project in this field.

For that reason and within the framework of the subsidiarity principle, the EC must allow and even encourage cultural identities to stimulate the growth of their home companies through anchorage constructions.

The legal framework in this field was not adapted yet.

Until the treaty is modified again, the discrimination principle based on nationality must be considered differently in any case. The contemporary interpretation gives advantages to nationalities with scale advantages that grew throughout history and disadvantages to numerically smaller nationalities.

As a matter of fact, Europe discriminates its cultural majority. That's why the non-discrimination principle as such must be adjusted. Now, discrimination is defined as unequal treatment among equals: however, enforcing equal treatment in unequal situations goes as well.

Note 2: Cultural as Comparative Advantage

Culture and economic relance

Before:

Culture is too much looked at as a luxury product in economic growth periods.

Culture is regarded as a derivatory of the economy.

Future:

1. More and more economists and management scientists are looking towards "Culture" as the vital, but sleeping source of the 21st century economy.

"Culture (cultural values and attitudes) is the driving force in the economy of the next millennium".

2. Companies and nations possessing the same classic production-factors such as labour, capital, technology and resources don't have the same successes.

The key determinant factor which makes the difference between two comparable competitors (companies or nations) is the cultural component.

 

A 21st century culture

A 20th century culture

* The following scientific base is to be developed:

  1. Presence of indiginious growth companies and cultural attitudes;
  2. Correlation: cultural revival - economic relance;
  3. Cultural anchorage as an economic leverage.

 

Note 3: Cultural Diversity as European Trumpcard

Declaration of Brugges: Cultural Diversity, The Economic, Democratic and Cultural Foundation of Europe 2002

"Culture as a Motor for the Economy:

For a long time in the science of economics and in European diplomacy, culture was presented in a noble and valuable element of the society but one that contributed more costs than benefits. "Culture" was and is seen too much as derivatory in the economy by trade and industry, by the governmental authorities, and by the economists. This can also be noted in the European project where cultural diversity is experienced as a brake on integration and where the cultural dimension is always thrust aside because of economic and political considerations. This is gradually changing. In trade and industry, the academic world, and the government, people are beginning to comprehend more and more how enormously important the cultural component is for our society.

Prof. Garelli of the IMD Business School in Geneva, who is also director of the DAVOS competitiveness index, declared at the Flemish Quality Congress on November 18th that "the cultural diversity of Europe is its greatest economic trump card"! According to Prof. Garelli, the ability to manage cultural diversity in the 21st century constitutes a competitive advantage over Japan and the USA because of increasing internationalisation. The USA, with its "melting pot" situation, is not sufficiently capable of approaching the markets sensitively and of working efficiently with partners from other cultures. The melting-pot society has made the Anglo-Saxon culture even more dominant, and this attitude of American managers and policy people will generate increasing resistance in the rest of the world. Japan, Korea, Taiwan have built their economic power from the safety of their homogenous domestic markets. This cultural model, too, will cause strategic handicaps in the approaching of other markets. "Dealing with other cultures" in the organisation of production, in the approaching of the markets, in the concluding of partnership agreements, and in working with the various authorities from so many countries will become a 'know-how' with an ever increasing surplus value in the coming decades.

Hence, also from the economic standpoint, Europe has every interest in cultivating the 'management of cultural diversity' instead of striving for an American dominance model of falling back on an Asiatic homogenous model out of misunderstood motives of efficiency.

This 'intercultural management knowledge' as a trump card fits into the wider, new economic management theory of Davos, where the 'value system' of a company and a country becomes a decisive determinant in the competitive struggle. In fact, 'culture' is becoming the hitherto underestimated and underexploited production factor, joining labour, capital, raw materials and technology.

Indeed, the cultural value system describes:

  1. why in one country the same amount of capital becomes "RISK" capital and in the other country "RENTIER" capital;
  2. why the same labour potential in two countries differs in commitment, motivation, flexibility, solidarity, etc.;
  3. why countries with equal amounts of raw-material resources either invest in bold vertical integration or are content with cashing in on their reserves;
  4. why technological innovation is pushed over there by a drive for education and creativity and elsewhere it is only nodded to, pro form.

In our world economy, the cultural factor will represent an ever larger share of the added value. Europe must draw its conclusions from this, and rethink its economic policy from this point of view.

By introducing this cultural dimension explicitly and consequently in all facets of the European economic policy, a new dynamism can be launched.

We have previously baptised this the 'culture-driven market economy', and this refers to the value pallet that can stimulate or slow down an economy. For the European Union, this will mean that a multipolar approach will contribute more to economic growth than a European oligopoly structure."

Note 4: Cultural Identity as Trade-Mark

Cultural identity of country has the value of a 'trade mark' and for a 'quality label'.

The cultural identity of some nations is so strong that exporters certain sectors have a competitive advantage (industrial goods Germany, Sweden; luxury goods, France, Italy). A cultural identity can create a favourable image for foreign investments (Flanders, Scotland, Baveria, Catalonia). Therefore, it is worthwhile to invest in marketing of the cultural identity.

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