Event Summary:
Jeremy Kinsman
Europe's Struggle with Change:
Canada has a Partner's Stake in the Outcome
28 September, 2005
Royal Canadian Military Institute (RCMI)
Summary by: Michelle Chung (Grade 12 Student, Havergal College)
Canadians who perceive US productivity to be the holy grail of the global economy would have found Jeremy Kinsman’s September 28, 2005 discussion at the Royal Canadian Military Institute on the less-understood economic powerhouse of Europe to be an enlightening twist on a common misconception. As the Canadian Ambassador to the European Union, with previous postings to the United Kingdom and the United States, Kinsman was well positioned to comment on the current state of affairs in Europe and how it may impact the Canadian economy in future decades.
Europe has always been marked by contrasts – old and new, East and West, secular and spiritual. From ravaged battleground to Cold War breeding ground to economically unified (if still somewhat conflicted) community of nations, Europe has been defined by change during the past half-century. During the same period, however, Canada has drifted away from Europe as its economy became further entwined with that of the United States.
Kinsman asserted that the US economy is no longer the juggernaut it appears to be. Hourly productivity rates in European countries such as France have already eclipsed those of the United States, but because the average European workweek is significantly shorter Europe’s productivity per worker is lower overall. European growth per capita over the past decade has also rivaled that of our Southern neighbour. Scandinavia (a complement of high productivity and growth), the United Kingdom and Ireland (rapid growth), and Germany (social programs) provide economic reform models from which Canada can learn.
Although foreign policy has never been Europe’s strong suit, it has still managed to play a leading role in three world issues: it stabilized volatile areas such as North Africa and Turkey, thus contributing to world peace; Europe demonstrated maturity when it ceased merely to talk values with the US but instead focused on the tasks at hand; and, most notably, it gave a shot in the arm to multilateralism – a boon to Canada’s inherently multilateralist nature. According to Kinsman, the bottom line is that, on many levels, Europe is heading in the right direction.
That is not to say that the EU’s economic framework is without flaws. Kinsman believes that Europe’s one-size-fits-all mentality towards addressing its diverse population, whether it is tackling the issue of publicly financed pensions for its aging labor force or addressing the lack of assimilation of new immigrants, will eventually prove to be detrimental to the well-being of the region as a whole. It needs to provide effective yet feasible solutions for individuals with a broad spectrum of needs and values; in Kinsman’s words, “respecting diversity” is the key to solidarity.
Nevertheless, the essence of Kinsman’s argument is that, while Europe certainly is a dynamic, formidable competitor, there is no reason why Canada cannot take advantage of this wealth of resources to advance our position on the global scale. The trade between North America and Western Europe outweighs any other economic relationship in the world, and it is time to harness it. Economic and even political convergence, trans-Atlantic, is vital to Toronto’s (and ultimately Canada’s) respect as a world financial center. Kinsman emphasized that trade is not the only important economic relationship. He noted that Europe is the leading exporter of capital today, and Canada is an attractive place for Europeans to invest. Therefore, Canada must have an ambitious, economically lucrative partnership with the EU to attract that investment.
Kinsman concluded his engaging talk by pointing out that he had spent many years of his career “looking up” at countries that surpassed Canada in economic prowess. Now, given Canada’s recent record of economic growth, he said he is beginning to look down – and rightly so, for Canada could potentially benefit greatly as Europe’s status as a world power is enhanced.
View Jeremy Kinsman's presentation: Presentation.
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