CNE Monatsmagazin Digest
February-March 2007

English Summary

Under the label "Global Competitiveness" CNE will stress more than ever the significance of global competition and the readiness to be competitive, and thus to use the opportunities of globalisation. Reconsidering the importance, foundations and results of competition might serve as a useful step to do so. This special edition, devoted to global competitiveness, draws our attention to some of these aspects.

Competition all over? "Competition is a universal in human and social life, not only in business, often welcomed and, regrettably, much maligned", says Hardy Bouillon. In his essay he asks whether there are legitimate reasons to object to competition and what would follow if we were to follow those objections. He also highlights some facets and common traits competition reveals wherever it appears.

Competition of Ideas I: Hayek Essay Competition 2007 ... The Berlin-based Friedrich August von Hayek-Society, together with the Hayek Foundation invites every year students and junior scholars to send in their ideas on a topical theme. In 2007 the topic is: Are there liberal arguments to limit free migration? Essays must be written in German. Participants from all disciplines are welcome. Prizes: First Prize: €1,000; Second Prize: €750; Third prize: €500. Deadline: May 12, 2007.

Competition of Ideas II: The Olive W. Garvey Fellowship Contest for junior higher education faculty and students is held every other year. The submission deadline is May 1, 2007. 2007 Garvey Fellowships will be awarded for the best essay on the topic: Is foreign aid the solution to global poverty? Applicants must be no older than 35 years. Prizes for students: First Prize: $2,500; Second Prize: $1,500; Third prize: $1,000. Prizes for junior faculty members up to the age of 35 and not yet tenured: First Prize: $10,000; Second Prize: $5,000; Third Prize: $1,500

Brave New World?: The REACh-compromise of December 18, 2006, was not a historic day, as Finnish Trade Minister Mauri Pekkarinen claimed, says Edgar Gaertner. The industries were only in favour of it because they hoped to regain consumer trust. However, the compromise is full of contradictions and injustices. "Especially in the textile industry, it is very likely that some will look for solutions in the parallel economy," warns Gaertner.

At second glance: When German Vice-Chancellor Franz Müntefering declared that minimum wages could not destroy jobs, because in the services sector clients could not go elsewhere, he was twice wrong, says Sascha Tamm from the Berlin-based Institute of Free Enterprise. "Firstly, the assumption that price-elasticity on the demand-side does not exist in the services sector is false … Secondly, money that has to be spent more on the hair-dresser or window-cleaner, is missed at other places, hence lowers the demand in other fields. Under minimum wages many other firms suffer, for they will sell less", says Sascha Tamm.

The last word: "The Fairtrade Foundation is urging us to start buying products such as coffee and bananas with the Fairtrade logo on them. A good thing, too. The very point of free trade is that consumers are free to choose what and from whom they buy. So even if Fairtrade products might cost a bit more than normally traded goods, those of us who want to spend our money that way have that option", says Stephen Pollard and concludes: "But the fairest trade of all is free trade."

Click here to view the full Monatsmagazin in German.

Dr. Hardy Bouillon is Head of Academic Affairs at the Centre for the New Europe.