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Federal President Johannes Rau Calls for a Globalization Policy (May 13, 2002)

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XI.

The international setting in which the German economy operates has changed in recent years. International competition has increased. Not only do entrepreneurs feel this, employees do, too. Craft businesses are noticing that the number of suppliers of basic products is falling, and that the power of large companies to influence demand is increasing, as is pricing pressure.

Never have so many workers worried that their company might become the object of a foreign takeover, and what would become of them then. That is a topic of conversation in the factory, in the pub and at home. People are realizing that: the permanent mobility repeatedly demanded of employees has concrete repercussions for families, friends and clubs. If both partners work and are both supposed to be flexible and mobile, then they face a decision as to whether one of them should give up work or whether a weekend marriage should become their norm.

Our Basic Law affords marriage and the family special protection. Nevertheless, plans and marriages collapse in the face of external circumstances that force mothers, in particular, to feel guilty because they cannot find adequate childcare.

People are not as mobile or free as capital: they never will be, nor do they want to be. We need a home and familiar surroundings. We need family ties, friends, acquaintances, a strong social network. People need warmth and a sense of security. Anyone who regards all this as old-fashioned is mistaken. Politicians must take such fears and uncertainties seriously. They must offer orientation.

Some German companies are trying to give the term "flexibility" a new interpretation in their personnel policy: they want to be flexible in their approach to their employees' needs. They know that a company that does not take its employees' interests and circumstances seriously cannot be successful in the long term. This will become even more important in the coming years, when the number of workers declines for demographic reasons.

Companies rightly expect politicians to give them a secure framework for their planning. And people cannot be expected to put up with less security than companies. A social welfare system that can offer protection from the major risks in life strengthens the freedom of the individual. Anyone who is afraid of what tomorrow may bring will cling desperately to what he has today. A basic feeling of security and reliability makes people more open to new things.

The welfare state does not put the brakes on economic dynamism. On the contrary: if it is managed correctly it enhances economic performance, because it relieves the burden on people and creates room for creativity and achievement.

There is no doubt that we need reforms in our social welfare system. We must go beyond Bismarck, not fall behind him. Being able to depend on solidarity and justice at home is the precondition for achieving greater justice at the global level.

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