Peter Mandelson, the European external trade commissioner, will tell The Work Foundationís conference on the knowledge economy on Thursday 6 March 2008 that European nations may be better placed to weather the storms of globalisation than the US due to their more generous welfare safety nets.
In a video address to the conference, Mr Mandelson is set to say: ëThe idea that competitiveness means paring back the state strikes me as a purely ideological statement rather than one that reflects the real world.
ëCertainly we should be shy of a ëpicking winnersí industrial policy or of protectionism. But there is an important role for the state in ensuring our people take the best from globalisation. One of the reasons - and I emphasise one of the reasons - for the increasing scepticism ñ and fears - about globalisation of many in the United States may be due to the different role of the US government in providing public goods and redistributing wealth compared to the European model. In America, when you lose your job, you lose your income and safety net as well. No wonder economic insecurity has become such a major electoral factor.í
The conference takes place on the 6th March 2008 at the Park Plaza Riverbank Hotel, 18 Albert Embankment, London, SE1. Speakers at Building the British Knowledge Economy include John Hutton and John Denham, secretaries of state for business, and for universities and innovation respectively, Vincent de Rivaz, chief executive EDF Energy and Lord Sainsbury of Turville, businessman and Labour peer.
Mr Mandelson will continue: ëA well funded and relatively socially activist state is necessary corollary of our drive for competitiveness. An effective social model should encourage labour market flexibility and protect workers as they move between jobs. It should insure wages, rather than individual jobs. Models of this kind in Scandinavia have created societies that are both economically very competitive but also broadly-speaking equitable. They may not be cheap but, because of the economic gains they bring, they are affordable.í
The conference will hear Will Hutton, chief executive of The Work Foundation, debate the existence of the knowledge economy with Larry Elliot, noted knowledge economy sceptic, author, and economics editor of The Guardian. Ian Brinkley, director of The Work Foundationís knowledge economy research programme, will present comprehensive evidence on the scale of economic change over recent decades.
Europe ëbetter placed for globalisation than USí: Peter Mandelson
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