Michele's Musings: Switzerland and "the Lexus and the Olive Tree"

Dear Rene,

You read, "The Lexus and the Olive Tree”" a few years ago like I did.

I can appreciate the thesis of that book more and more each day. You are probably seeing signs in Iraq more related to the “Olive Tree” philosophy. In this post, I will give you my thoughts from a Swiss-perspective.

Basically, every country in the world with a more or less homogenous culture and/or population is under increasing pressure from globalization, more so than in the much more heterogeneous USA where the “Lexus” is almost the only connecting value. Those homogenous countries with strong values on the “Olive Tree” side obviously want to preserve what is precious to them. Switzerland, I have learned, though a very developed country is no exception. There is just the ongoing question of how to blend those different, sometimes contradictory, requirements.

I have the feeling that Switzerland doesn't want to avoid globalization entirely as almost 20% of the people in Switzerland are non-Swiss citizens. Swiss companies export enormous quantities all over the world: $160 Billion worth out of a total GDP of $330 BN in 2003.  Money-laden Swiss companies invest all over the world as well.

But Switzerland stands to lose a lot because to be fit for globalization it needs to be among the best or among the cheapest. Switzerland is neither though the emphasis on quality is still VERY strong and I would say Switzerland needs to preserve this position. In the past, Switzerland was able to produce high-quality goods due to its independent nature and its fairly educated citizens. Today, new skills are necessary like flexibility, risk taking, creativity, innovation, etc. It will take some time for Switzerland to adjust as their society is based on safety-nets and its citizens have become a bit “too comfortable” relying on them.

In addition, as long as Switzerland ranks high on the quality of life scale, its people are more hesitant to sacrifice cultural values for closer integration in the world of globalization. And like everything in Switzerland, it all takes time due to the political process of its flavour of democrazy.

Michele