5/27/2008

Bavaria’s Economics Minister Müller underscores role of the regions in globalization at the "Conference on the Role of Law and Ethics in the Globalized Economy"

Müller: "Bavaria is one of the winners of globalization"

MUNICH "Global competition is and will remain a big issue for industry, society and politics, and that means in Bavaria, too", Bavaria’s Minister of Economic Affairs, Emilia Müller, underlined in her speech ''Regions Response to Globalization'' at the international ''Conference on the Role of Law and Ethics in the Globalized Economy'' of the Max Planck Society in Munich. "We are clearly one of the winners of globalization. Bavaria is intensively involved in the global economy. One in every two jobs in Bavarian industry now depends on international trade. Bavaria owes a large proportion of its economic strength to the presence of foreign companies here. Its strong position in world trade is a decisive underlying reason for today’s prosperity", Müller said in what was altogether a very positive assessment of the current impact of the international division of labor for Bavaria.

But the Economics Minister also drew attention to the dark side of globalization. In particular, simple labor-intensive mass productions were suffering from the increasing trend towards relocation to low-wage countries. Müller: "Regions cannot assume they will automatically benefit from globalization. It is rather attractive framework conditions that will have to make sure of that." The Minister spoke in favor of open markets and against a policy of isolation. Protectionism was not an option for an export-oriented state like Bavaria. A successful conclusion to the Doha Round of the WTO was in Bavaria’s vital interests.

The State of Bavaria had to continue focusing on its innovative strength. Müller commented: "Across-the-board innovations are our biggest and most important trump card in international competition". The Bavarian State Government had therefore invested billions of euros in high-tech initiatives in the last 15 years. This policy would be continued under the ''Bavaria 2020'' reform program. At the same time, it would press ahead with further internationalizing industry. However, such a strategy of innovation would have to count on the protection of intellectual property. "Product piracy is not a trivial offence. Decisive steps must be taken to fight it", the Minister underlined.

Müller pointed out that innovation policy had to go hand in hand with education policy: "Top economic achievements call for high professional qualifications. Not least, it is a matter of developing and promoting the academically gifted, of exploiting the potential of women more forcefully." All in all, Economics Minister Müller was confident that thanks to its proactive economic policy Bavaria would continue to successfully hold its own in the face of global competition in the future as well.

Source: Invest in Bavaria