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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (48390)	4/27/2005 12:48:27 AM
From: IQBAL LATIF	Respond to of 50167

In the 20th century, countries could get away with political restrictions on the freedom of businesses and citizens. Today, however, financial and human capital rapidly flows to the places where they are allowed to grow. While the EU Commission is standing by, Europe's researchers are moving to the United States. Currently, as many as 400,000 European scientists work in U.S. research facilities. Most have no plans of returning. -The economic gap between the European Union and the United States has been widening. And beyond the American challenge, we see the rising power of China and India in both high-tech manufacturing and high-quality services. Spend more, dare more, do more Carl Bildt International Herald Tribune WEDNESDAY, APRIL 27, 2005 STOCKHOLM When the new EU Commission led by José Manuel Barroso took office last autumn, many Europeans looked forward to long overdue economic reforms. Months later, we are still waiting for the sweeping change in Brussels that many had hoped for - and some dared to expect - this winter. In fairness, Barroso has repeatedly highlighted the need for reform in Europe, and he made economic growth the first priority of the EU. This change in the agenda is, in itself, no small feat. But a change in the official European discourse is by no means a guarantee for change in the real world, and so far we haven't seen the leaders of Europe responding to the challenge of reform. The recent European Council on the midterm review of the Lisbon process - a 10-year plan to improve Europe's competitiveness - was a disappointing affair. The economic gap between the European Union and the United States has been widening. And beyond the American challenge, we see the rising power of China and India in both high-tech manufacturing and high-quality services. We Europeans have to spend more, dare more and do more if we want to invent, produce and sell the products of tomorrow. Look at the pharmaceutical industry. In 1980, 80 percent of all new drugs were developed in Europe; today the United States supplies 80 percent of the world's new medicine. Unless Europe makes a determined effort to reverse this relative decline, by 2012 U.S. spending on pharmaceutical research and development will be twice the size of total European spending. Not only does the pharmaceutical case give us a feel for the size of the challenge Europe faces in closing the trans-Atlantic competitiveness gap, it also highlights some of the obvious causes of what European Trade Commissioner Peter Mandelson recently called "Europe's relative decline vis-à-vis the rest of the world." At this critical time, however, the EU Commission seems to lack the necessary political courage to stop the exodus of pharmaceutical research facilities. For instance, Günter Verheugen, the EU enterprise commissioner, recently called for the creation of a "public database" for distribution of medical information to the European public. This proposal is supposed to ensure that patients receive timely information about newly developed drugs. A far more effective proposal, however, would have been to lift the EU's ban on pharmaceutical advertising. Advertising not only effectively informs patients about new research developments, it is also the key to creating an attractive environment for new investments in research and development. One of the primary reasons pharmaceutical companies prefer to invest in the United States is that they are allowed to advertise their products to U.S. consumers. In the 20th century, countries could get away with political restrictions on the freedom of businesses and citizens. Today, however, financial and human capital rapidly flows to the places where they are allowed to grow. While the EU Commission is standing by, Europe's researchers are moving to the United States. Currently, as many as 400,000 European scientists work in U.S. research facilities. Most have no plans of returning. In spite of this, I'm a cautious optimist on Europe. Over time politics will start to respond better to the need for change. But more action is needed now. We must take down barriers to risk-taking in conjunction with enlarging markets and funding investments in the science and technology of tomorrow. Then Europe will climb up - not down - the ladder of global competitiveness. (Carl Bildt is a former prime minister of Sweden.)