The Danish Ambassador to Vietnam Peter Lysholt Hansen explains about Denmark’s efforts to maintain its position as one of the wealthiest countries in the World and as a country with strong social cohesion.
Vietnam has over the last years made impressive progress in the reform process towards a market economy and towards reaping the benefits of globalisation. The expected and well-deserved membership of the World Trade Organization (WTO) later this year will mark a very important achievement in this regard. This will create new possibilities but also new challenges.
Globalisation is one of the main drivers of prosperity and the creation of better jobs. But in many countries some groups are worried, because globalisation changes our jobs, our technology and the way we used to do business. This is also the case in Denmark.
Denmark is relatively well equipped to continue benefiting from globalisation. The main strengths are a flexible labour market combined with a welfare state ensuring a high level of income security; a strong economy with low unemployment; a strong public sector; and a relatively large degree of economic equality. International surveys on competitiveness mention Denmark among the top performers in the World. And the Danish society is based on a shared belief in democracy with room for diversity and on the individual’s right to freedom as well as duty to accept responsibility.
Although the Danish point of departure might be strong, reforms and adjustments are needed in order to obtain the benefits of globalisation and address the challenges.
Therefore the Danish Government decided to address globalisation proactively.
The Danish Government early came to the conclusion that the task of gearing Denmark for the future cannot be carried out by the Government and Parliament alone. Everybody should assume their share of responsibility and be ready to innovate.
The Government therefore set up a Globalisation Council to prepare a comprehensive strategy for Denmark in the global economy. In line with Danish tradition for dialogue and cooperation between groups of society across traditional divisions, the Council has high-level representatives from trade unions, industrial organizations, companies and the education and research community. The Council is chaired by the Danish Prime minister and the Deputy Prime Minister.
The Council has advised the Danish Government on the strategy for Denmark in the global economy. This spring the Danish Government then presented its globalisation strategy for Denmark – “ Progress, Innovation and Cohesion”
The strategy contains 350 specific initiatives, which together entail extensive reforms of education and research programmes and substantial improvements in the framework conditions for growth and innovation in areas of society, including entrepreneurship and innovation policy.
A large part of the proposals aim at strengthening the quality, governance and efficiency of education and research activities, promoting entrepreneurship an innovation and increasing the number of young people, who complete an upper secondary education programme and take a higher education.
According to the strategy all young people should complete an upper secondary education programme and at least 50 per cent should take a higher education. Everyone should engage in lifelong learning.
It is a central target that research and development should amount to 3 per cent of GDP by 2010. Stronger competition and greater openness and transparency should strengthen innovation. New companies should improve the ability to generate growth. Denmark should have a strong interaction with other countries and cultures.
The globalisation strategy is complemented by the Danish Government’s recent welfare reform proposals, which focus on getting young people to complete their studies faster, on postponing the average retirement age and on improving the integration of immigrants.
Along with other recent reforms the globalisation strategy and the welfare reform proposals form a comprehensive and consistent approach towards the two main challenges for the Danish society: preparing for population aging and reaping the full gains of globalisation.
It has been the stated aim of the Danish Government to have an open and transparent process for formulating the globalisation strategy and to ensure a public debate along the way.
The process has been underpinned by the fact that a majority of Danish citizens – 77 per cent – see globalisation as a good opportunity, because it opens markets. Only a small minority sees it first and foremost as a threat to employment and companies.
Denmark has a good point of departure for successfully competing in the global marketplace. The new strategy will ensure that our competitiveness is sustainable and that the globalisation process is beneficial for all in Denmark.
While Denmark and Vietnam in many respects are different and at different levels of development, we very much share the same global market place and constantly will have to adjust and reform in order to maintain and strengthen our competitiveness. It is in this light I wanted to share the Danish strategy for the way forward.
Vietnamese
