3 2 Economic Indicators Switzerland example essay topic

Nationality: Swiss Population: 7.11 million (1998) Annual Growth Rate: 0.3% Infant Mortality Rate: 5/1,000. Life - Expectancy: Men 74 years of age Women 81 years of age Religions: Roman Catholic 46%, Protestant 40%, others 5%, No religion 9% Languages: German 64%, French 19%, Italian 8%, Romansch 1%, Other 8% Education: Attendance 100% Literacy 100% Workforce: 3.8 million. Agriculture: 4%. Industry 29% Services & Government: 67% Media: SRG SSR id " ee suisse (the Swiss Broadcasting Corporation) The largest provider of electronic media in Switzerland. Its services encompass seven TV channels and 18 radio stations, complemented by websites and teletext. Communications: Telephones - main lines in use: 4.82 million (1998) Telephones - mobile cellular: 810,170 (1999) Telephone system: excellent domestic and international services Domestic: extensive cable and microwave radio relay networks International: satellite earth stations - 2 Intelsat (Atlantic Ocean and Indian Ocean) Radio broadcast stations: AM 4, FM 113 (plus many low power stations), short-wave 2 (1998) Radios: 7.1 million (1997) Television broadcast stations: 108 (1997) Televisions: 3.31 million (1997) Internet Service Providers (ISP's): 115 (Switzerland and Liechtenstein) (1999) 2.0 Stability of the Swiss Political System 2.1 Structure of the Swiss Legal / Regulatory System 2.2 Reliability of Switzerland as a Trading Partner 2.3 Constitutional Guarantees 2.4 Protection of Property Rights 2.0 Stability of the Swiss Political System Although, Switzerland has a diverse society, it has a remarkable political stability, which is the result of its policy of strict neutrality.

Since, Switzerland is maintaining its neutrality, the country has become a refuge for capital all over the world. Both political and neutrality play a major role in Switzerland to create economic neutrality. It has the highest per capita income of any industrial nation and the Swiss Government also allows other peoples efforts to be rewarded. Switzerland is a democratic country, which plays an important role supporting the increasing amounts of democratic institutions and values internationally, with also contributions to humanitarian relief and economic development assistance. These policies are taken into account by the United States who have been willing to co-operate with Switzerland's neutrality.

Switzerland maintains diplomatic relations with almost all countries and throughout the many years, it has serves as a neutral diplomatic intermediary. Switzerland has no major disputes in its bilateral relations with other countries. The Federal Government and Cantons share political power. Similar to the United States, power that is not appointed to the Federal Government, resides with the cantons that have endured a positive amount of independence within the Federal sector over many years. The third level of Swiss Government is the commune, who decide issues of local importance i.e. construction of roads, bridges.

2.1 Structure of the Swiss Legal / Regulatory System There are two regulatory bodies, which are active in Switzerland: o Com Com (Communication Commission) - This is an extra parliamentary commission whom is designated responsibility of telecommunication licences. o OFCOM (Office of Communication) - This is the main regulatory body in telecommunications and ICT. Switzerland's regulatory and legislative system consists of Swiss Penal Law, The Swiss National Law, The Law on Data Privacy, The telecommunication Law, The Federal Law on Electronic Signature, The Federal Law on E-Commerce and The Ordinance on I. T and Telecommunication Federal Administration Law. 2.2 Reliability of Switzerland as a Trading Partner Switzerland is the richest country in Europe and is situated in the middle of the world's largest trading zones. It is also known for being the third largest financial centres in the world.

Swiss companies are dependent on their exports but, because they are declining stronger ties with the rest of Europe, it will be harder for them to export products across their borders. The EU is Switzerland's largest trading partner with economic and trade barriers at a minimal proportion between them. Switzerland is a small country and it depends on importing raw materials to support its industries. They have to manufacture high quality products with also a combination of superior services. Switzerland became the leader in development of high tech precision instruments, chemicals, metal, machinery and watch making, closely followed by pharmaceuticals, which are Switzerland's leading exports. Switzerland's trade centres are mostly situated around Europe, which has 60% trade with European countries.

15% of its exports go to undeveloped countries. 2.3 Constitutional Guarantees Constitutional theory expresses that individuals and states are more likely to agree on equal freedoms and on general constitutional principles if they have to choose long term basic rules from behind a 'veil of uncertainty' (J. Buchanan). This is what makes it difficult for each country that trades together, to identify the future impact and results of the rules. It makes them consider the long term effects of equity and fairness. Freedom of Trade and Industry in Switzerland (1) Freedom of trade and industry is guaranteed throughout the territory of the Confederation, subject to such limitations as are contained in the Federal Constitution and the legislation enacted under its authority. (web) (2) Cantonal regulations concerning the exercise of trade and industry and the taxes on such activities remain unaffected. However, such regulations shall not depart from the principle of freedom of trade and industry except where the Federal Constitution provides otherwise.

Cantonal monopolies are likewise excepted. (web) 2.4 Protection of Property Rights Switzerland has one of the best regimes in the world for the protection of intellectual property. Inclusive is that protection is afforded substantially on equal terms to foreign and domestic rights holders. Switzerland is one of the members of the major international intellectual properly rights convention. She is also an active strong supporter of IPR text on the GATT Uruguay round negotiations.

Switzerland is a member of the European Patent Convention as well as the Patent Co-operation Treaty. In 1993, a new copyright law recognises computer software as literary work, which enables monetary rewards for private copying of audio and videos. If filed in Switzerland, a patent application must be made in one of the country's three official languages (German, French, and Italian). The application must include detailed specifications and sometimes technical drawings are needed. The patent lasts for 20 years. Renewal fees are payable annually with an increasing of fees.

However, patents can not be renewed after the 20 years. There is only an exception to renew the patent for products such as pharmaceuticals, which require an extensive testing period prior to marketing. The Swiss Patent Law (1954) states that the following items cannot be covered by patent protection: Surgical, Therapy and Diagnostic Processes for application on humans and animals; inventions liable to disturb law and order. Patents are not granted for species of plants and animals and biological processes for their breeding. In many other areas, the law in which the patent covers is identical to that in the United States. If an American firm has concerns about possible patent infringement in Switzerland, access to the courts is always available.

3.0 Economic Structure and Activities 3.1 Labour Market 3.2 Economic Indicators 3.3 Freedom to Establish Partnerships, Licensing Agreements 3.4 Exchange Rates 3.0 Economic Structure and Activities The Swiss economy is one of the most advanced and prosperous. The Swiss economy has just about survived the recession, which had occurred in 1991. The Swiss market was affected by a slight collapse in the real estate market, which was a damaging factor. The Swiss franc had also been affected and became weak which led forecasters to project satisfactory growth economically to about 2% for Switzerland in 1998. Swiss companies have a major position to play in world export markets.

They specialise in high value-added products such as pharmaceuticals, chemicals, watches, speciality machinery, and gourmet foods such as chocolates and cheeses. Swiss banks and insurance companies are also the main players on the world scene. Switzerland's largest trading partner is the EU and their economic trade barriers between them are at a minimum. However, the Swiss Government's long-term intention is to join the EU, and the government was rejected in a referendum on the subject of membership in the European Economic Area in late 1992. The debate over EU membership is still existent till this day and those who opposed opinions, stated that the country has not suffered economically by not being a member.

This was clearly obvious as the Swiss economy, remains the envy of much of the world. Switzerland has attempted to disperse of any possible adverse effects of non-membership by conforming many of its regulations, standards, and practices to EU directives and norms. Recent Activities of Switzerland: o CIS-7 Conference in Lucerne - A conference on the seven poorest countries of the Commonwealth of Independent States (CIS-7) ended in Lucerne, Switzerland on January 22, 2003 with a call to donors to find ways to increase financial assistance on grant terms to the countries of the CIS-7 (Armenia, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Tajikistan, and Uzbekistan). o The CIS-7 Initiative was launched a year ago to address concerns about the severe economic difficulties, increases in poverty, and rapid build-up of debt in many of the CIS-7 countries since independence in the early 1990's. o The conference, which brought together government and civil society representatives from the CIS-7 as well as the international donor community, broadened and deepened the debate to include a range of economic, institutional and social issues that must be tackled if the seven countries are to achieve the targets of the Millennium Development Goals. o The Initiative's co-sponsoring agencies will now work with CIS-7 governments, donors and civil society to elaborate follow-up actions on finance and debt relief, ownership and governance, capacity building, and regional integration. [Source: ECA News February 2003] o The Third Annual Conference of the Parliamentary Network on the World Bank - Was hosted by the Swiss government in Bern, May 9-11, 2002.

The conference was sponsored by SECO (Swiss State Secretariat for Economic Affairs) and held in the Swiss Parliament. More than 100 parliamentarians from over 40 countries participated. (web) o World Bank President, James Wolfensohn visited Switzerland, May 9-10, 2002 - He participated in the Third Annual Conference of the Parliamentary Network on the World Bank, and met with representatives from the Federal Department of Economic Affairs, Federal Department of Foreign Affairs, and the Swiss Agency for Development and Co-operation. He also had a question and answer session with Swiss NGOs (Swiss Coalition of Development Organisations, Bread for All, Helve tas, Swiss aid and Berne Declaration) and met with Swiss business leaders. (web) o September 23-26, 2001, Vice President for Europe Jean-Francois Rischard attended the Sustainability Congress in Bern and met with members of the Swiss Parliament. (web) o June 28, 2001, Vice President for Europe Jean-Francois Rischard gave a keynote speech in the plenary session of the Annual Crans Montana Forum, which took place in Crans Montana, Switzerland. Founded in 1989, the Forum meets annually to provide a venue for public and private sector representatives to discuss ways for improving international co-operation and easing the globalisation process in a humanistic way. More than 1,200 participants from 120 countries and organisations attended. (web) 3.1 Labour Market The labour market is characterised by upward struggles and the change from an industrial to a service society is having a concise and efficient flow. The international standards, which Switzerland has, allow a very low unemployment rate, which reflects the above-average flexibility of the Swiss labour market.

It also displays that the Swiss own a tight labour market. The demographic ageing of the population, slower population growth and the trend towards early retirement are adding more pressure on the labour market... In June 2002, Canada's Fraser Institute published its sixth annual report on "Economic Freedom of the World". It showed that Switzerland had gained high marks for its liberal economy, in comparison to the growth report issued by the State Secretariat for Economic Affairs (seco). 3.2 Economic Indicators Switzerland has one of the most liberal and competitive economies in the world.

In the financial services and direct investment departments, Switzerland can match some of the European and global leaders. Competitiveness, expenditure on research and development, Internet users, are all included in the economic indicators, in which Switzerland occupies a leading position. In cross-border direct investment, the Swiss economy is among the top and is one of the countries which have the highest export rate as a percentage of gross domestic products. Switzerland's highly developed economy is largely due to its strong alliance's with the economies of other countries. The technologically advanced industrial sector is characterised by highly specialised, internationally experienced, and flexible small and medium-sized companies. Buying power is very stable which is achieved through traditionally low inflation within the country.

The economic environmental indicators prove that organic farming has a better performance within the market compared with conventional farming which leads to the organic farming system to be more positive to the environment and the country itself. Fig 2.2 Swiss Franc Past Present and Future Fig 2.3 Bar chart displaying information of organic farming and free range farming. 4.0 Consumer Behaviour The service industry employs two-thirds of Switzerland's workforce. The organic food service is the country's most important economic sector. This Industry is increasingly attracting more of the spotlight of ecological interest than the tertiary sector. Large retailers such as Coop Switzerland and Migros have made dramatic improvements by encouraging environmentally friendly consumer behaviour.

4.1 Size of Markets The growth of organic farming varies greatly from the mountain regions (ten to thirty per cent of the agricultural area) to the plains (approximately five per cent). All organic farmers belong to the umbrella organisation Bio Suisse (association of Swiss organic farming movements). During the boom years between 1990 and 1999, the number of organic farms increased from 800 to 5,000 (table 3). Three factors have influenced this growth: o The consumers' concern about healthy food o The agri-environmental policy of the state, which supports organic farms with annual subsidies, and the appearance of organic foods in the two dominant supermarket chains, Coop and Migros.

Branch Total Production Organic Production (absolute / relative) Milk 3,867,000 tons 103,500 tons (2.7%) Beef 110,900 tons 2,811 tons (2.5%) Pork 231,800 tons 2,342 tons (1.1%) Poultry 40,824 tons 391 tons (1%) Eggs 691,400,000 eggs 35,000,000 eggs (5.1%) Wheat 584,400 tons 6,311 tons (1.1%) Potatoes 687,000 tons 11,564 tons (1.7%) Vegetables 385,000 (8,475 ha) 800 ha (9.4%) Apples 143,819 tons 2,700 tons (1.9%) Wine 1,045,000 hl (14,991 ha) 178 ha (1.2%) Fig. 2.5 Share of Organic Products in the Different Branches of Production (Source: Fill, Based on the latest figures from 1997, 1998 or 1999) 4.2 Access To Media Television Switzerland has at least six terrestrial TV stations available everywhere offering an undemanding diet of chat shows, game shows, made-for-TV movies and lots of local news and local interest programming. Radio Switzerland has more than forty local radio stations catering to various communities around the country. Swiss Radio International broadcasts news and analysis in English on short wave at 6.165 MHz at breakfast time and the evening and at 9.535 MHz at lunchtime, and is also on cable. The Press Switzerland has more than 200 newspapers nation-wide. It also has parochial local news sheets, reporting Cantonal and municipal affairs in some detail. CableCom: CableCom are a leading telephone information Service Provider and an inbound telemarketing consultant specialising in large volume call handling applications for both the United Kingdom and World-wide.

Fox Switzerland: Fox Switzerland, 20th Century Fox Film Corp... Micom Mediaagentur: Micom Mediaagentur - Mediaagentur fuer innovative kommunikation Swiss Broadcasting Corporation: Swiss Broadcasting Corporation, TV & radio Swiss Business News: A comprehensive guide to the Business News of Switzerland Swiss Info: Swiss Info provide news from Switzerland and around the world Swisscom: Swiss telecom, yellow pages, web services & much more 4.3 Transportation and Communication o Direct motorway access to Geneva International Airport (50 min). o Close proximity to France, Italy and Germany. o State-of-the-art wireline and cellular telecom links with worldwide coverage. o Sophisticated technologies for transmission via fibre optics, satellite, microwave, etc. 4.4 Distribution The market for organic food is growing by twenty per cent per year. It reached 580 million Swiss francs (360 million Euro) in 1999, which represented almost two per cent of the total food market. (Dr. Urs Niggle, Research Institute of Organic Agriculture, 2001) The retailer Coop, with a market share of thirty-two per cent of the Swiss food market, is already making four per cent of its food turnover with organic products. The retailer Migros, with a market share of thirty-six per cent, is making 1.8 per cent of its food turnover in organic foods.

The distribution efforts of the two dominant supermarket chains Coop and Migros, Swiss consumers are comprehensively supplied with organic food and the assortment is almost complete.