54
Focus on Germany
OCTOBER 2013
ICC Deutschland
Continuing with our focus on Germany, here we speak to Angelika Pohlenz, Secretary General of ICC Deutschland, the German National Committee of the International Chamber of Commerce. Here she tells us about the current business environment in the country and how it has altered over the last ten years.
Please give me a little information about your role as the General Secretary of Icc deutschland – what does your typical day include?
Besides managing the office and looking after the budget, there is a coordinating role between our experts and the ICC’s Headquarters in Paris. This comprises: getting views of German businesses for ICC’s policy papers and conciliating, if differing, views are expressed by our members. Also: discussing various issues with my colleagues from other National Committees, contacting policy makers in Germany and Brussels - be it from the Government or Parliament - to disseminate our positions. Furthermore, my role includes preparing seminars, i.e. setting up the agenda and looking for speakers, not to forget choosing arbitrators and experts for the ICC Court of Arbitration and Centre of Expertise.
Is now a good time for the business environment in Germany? Why?
Yes, I think it is. The economic situation is still good in our country. We have the lowest percentage of jobless young people within Europe, high education, a rather low rate of unemployment and thus increasing consumer demand and at least partially full order books. Exports as the motor of our economy are reaching around 50% of BIP. The angst of slowdown has slightly reduced and has given ground to new hope since news on growth in other economies,
including Europe is
spreading. At the same time imports are increasing even more and count for about half of our foreign trade now.
Germany has kept its market open and rejects the idea of protectionism and trade barriers as best as possible (though some politicians do not see that this always has been the motor of our success).The investment climate is good and foreign companies are welcome. Great stability and labour peace are some of the big advantages of Germany.
We have a huge amount of SMEs which trigger innovation and jobs including apprenticeships for young people. Our well-educated workforce, however, will diminish in the future and our government is trying to counteract it by an additional inflow of workers from abroad.
What are the most common legal implications that arise within your role?
As usual advocating may have an effect on policy makers. On top of this our rules – that are often included in contracts - have to be explained to business customers and correct interpretation and application has to be assured and passed on. We have already had the case that courts contacted ICC and referred to the official ICC interpretation of our rules as the basis for an award.
What are the main challenges you face on a daily basis?
To keep members, delegates and staff happy. To mediate diverse views into one common policy paper be it within Germany, or be it within different national communities.
according to a new Icc study, free trade promotes job growth. can you please explain this a little?
Where there is free trade, participation of developing countries in global business is increasing. The local need for distribution and adapting products to the local needs trigger jobs. It also helps companies to decide to invest in these countries, which also means more local jobs. The modern supply chain policy of companies outsources production and/or prompts investment near the market, both creates jobs. In order to achieve the best possible benefit from supply chains, trade between the different stages of production should have no or very little barriers or burdens imposed upon. Thus all countries should be keen on lowering their trade barriers or customs to be included in the chain as best as possible and obtain the opportunity to see their labour market grow.
How has the German business market altered over the last decade?
The biggest success for Germany can be found where our market has not changed, i.e. we still have a pretty high industrial rate. Within industry companies have to come up with much more individual products tailored for the special needs of the specific customer. There are a lot of “hidden champions” that are not even known to a wider German public but export and service in plenty of countries around the world. Innovation, punctuality and reliability are the keywords – the so-called Prussian virtues which are followed by entrepreneurs throughout the country.
What has changed is that many companies have outsourced their internal services so that apparently the service market has grown considerably.
How do you see it progressing over the next decade?
As long as the quality of education in Germany is not downgraded and innovation remains strong and as long as workforce is available at a reasonable price, progress is predetermined - provided that global economy continues to recover. One of the main challenges for companies is the protection of IP which has just been eased in Europe by the European patent. Here, policy-makers have to be supportive in creating the conditions for a better protection everywhere, including the internet.
the Icc ‘provides a forum for businesses and other organisations to examine and better comprehend the nature and significance of the major shifts taking place in the world economy’, how does it do this?
The main task of ICC is rule-making, advocating and support to the ICC Court of Arbitration. This implies that businesses and other organisations have an understanding of the changes and shifts to discuss and determine the needs
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