Posts Tagged ‘ eurozone ’

Italian and French policy values heritage over Monsanto

Yesterday, Italy (from where itnernationalcomparisons.com will conduct its research and reporting starting in October) set a valuable precedent in the world’s fight for an autonomous food system, the EU’s battle against genetically modified organisms (GMOs), and a country’s fight to maintain original taste and quality in its produce.

The protection of Italian distinctiveness must be a policy priority since it determines the existence of ‘Made in Italy’, which is our engine, our future, our leverage to return to growth in the food industry.           -Statement from Italian agriculture ministry

Based on this quote, an 80% public backing, and the decision by three separate governmental ministries to ban Monsanto’s MON810 maize,  the Italians resoundingly favor their own original food over Monsanto’s GM, uniform product. So the Italians are not only setting precedent in standing up against the health risks from GMOs and the corporate irresponsibility from Monsanto, but also by adding another element to the argument: pride in country*. And without the latter, the Italians see their hopes of recovery as significantly diminished. According to Italy, Monsanto’s monopoly and bland, uniform product represents such a threat.

In 2012 the French, the most prolific crop growers in all of Europe,  also banned the same product, the only GM product allowed in the EU. France also claims national heritage to be a factor in its decision in spite of the temporary hardship the French face as they transition agriculturally and economically away from MON810. From France and Italy’s perspectives, having little to do with GMOs is still too much.

Perhaps Italy and France have gleaned from the India-Monsanto relationship, which is too much to take on in the same blog. As we prepare research to be released on our new Health Regulation page coming soon, look forward to more blogs on chemical policy, the precautionary principle, and its commercial antithesis: Monsanto.

*Regardless to what extent Italy made its decision as a matter of national pride in its produce, they will need to provide a scientific basis, a “health or environmental risk,” if their position on MON810 is going to stand. France implemented its own custom ban on GMOs last year by going through the same process.

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Norway=model; exception

In addition to already having country profile pages for Germany and Japan, we have recently just added Denmark and Norway (also accessible from our home index page under the “countries covered” listing). While putting together the Norway page, we realized even more how exemplary Norway truly is.

Norway is not a member of the European Union. Also a factor in escaping the eurozone crisis is their oil and gas industry which has them benefiting from the largest budget surplus among all advanced democracies. Norway has an unemployment rate below 3%, no net national debt, and around $640 billion dollars stored away in a sovereign wealth account, mostly from its oil and gas industry. In 2009 Norway earned the highest per capita income.

Deserving much credit for its success is Norway’s fearlessness to tax. Their prosperous oil and gas industry receives a 28% corporate tax and a 50% industry surtax. Overall tax as a share of GDP is among the highest in the OECD. Corporate taxes are four times as high as U.S. rates. Their highest income tax bracket kicks in at $124,000 at 47.8%. Yet businesses aren’t saddling up to head to places where they might save on looser tax breaks, an argument from those in the U.S. representing a vast majority who refuse to consider any tax increase. In fact, start up activity not only in Norway, but also Denmark, Switzerland, and Canada is higher than that of the U.S. From 2006-2009, the U.S. economy treaded at a practically stagnant .1% growth rate compared to Norway’s exponentially faster rate of 3%. Norway also boasts more entrepreneurs per capita than the U.S.

Part of the reason why business owners are so keen to comply without raising a stir at Norwegian taxes is the sense of appreciation they have for the system. Norwegians benefit from free education from preschool to graduate school (often including universities outside of Norway); free healthcare; generous unemployment benefits due to a competitive, employee-friendly job market; forty-six weeks of maternity leave paid in full, 10 weeks for paternal leave. Education, retirement, and medical expenses are three paramount concerns for the average U.S. citizen, but all of which are provided in Norway. There’s a sense of giving back to the system in Norway for the ways one has benefited previously from the system.

 

Adapted from“US fiscal debate could learn from Norway” by Mark Provost from Progressive Press and  “In Norway, start ups say Ja to socialism” by Max Chafkin in Inc. Magazine.

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