Business

Re-industrialization is the way out of the crisis
by Magdalena Rosova

France's most renowned economist Patrick Artus,head of research at the French bank Natixis suggests to believe that the crisis is behind us. Artus is also co-author of the book Sorties de crise, that has just been published in France and brings new view on exit strategies from the crisis. He thinks that we were doing two big mistakes. It is important to realize that growth is back in positive territories, because rich countries have huge budget deficits and zero interest rates. But it is more often believed that the countries are not improving because the world trade is still 30 percent below its pre-crisis level and investments are still going down and unemployment is g! rowing. Artus says the first mistake is to look at current situation from this point of view. The another mistake is that we think we are having banking crisis, but it is the crisis of real economy. During the last ten years most of production capacities moved to cheaper countries. The richer countries were losing jobs which were reasonably qualified jobs for educated people.This qualified jobs were replaced by unskilled jobs. The depression went to its maximum, and now we need to realize that manufacturing disappeared from our economies. When we look at the structure of the cruises of the crisis we will see shrinking of the manufacturing and replacement of the skilled jobs by unskilled. Artus says basically people were going down the leader to jobs with lower wages. Atrus further emphasis the financial crisis is just the outcome and consequence of the fact that the finances have been used as bridge to gap in the real economy. Real solution to the crisis Artus sees in! re-industrialization, which is not easy to do because now the! countri es have to compete with cheaper products from marginal countries and China. Therefore richer countries need to bring more sophisticated products. For Artus Germany is an example of rich industrial country with 25 percent of people working in industry, in US it is only 8 percent and in France 13 percent.

by Magdalena Rosova for SigEx Ventures (http://sigexventures.com)

SigEx Ventures's matrix of properties are quickly becoming leaders in digital telebroadcasting, free content delivery allowing people to easily talk, view, upload and share through free online TV broadcasting, free unlimited global calls, video blogs and SMS. SigEx Ventures invests in projects deploying "free" to add-on royalty revenue models

posted by Blog TechSource @ 12:23 PM