LOC13:51
10:51 GMT
DAVOS, Switzerland, Jan 25 (KUNA) -- Prime Minister of the United Kingdom
David Cameron told participants at the World Economic Forum's Annual Meeting
that the key challenge for politicians and business leaders in Europe is how
to make a success of globalization.
An emerging trend to accomplish this is "re-shoring" jobs, he said. "There
is a chance for Britain to become the re-shore nation. Europe needs to act now
to seize the opportunities of re-shoring." He said that a major driver of this
trend will be the development of shale gas.
For years, the West has been "written off" and rumours abound that it is
facing inevitable decline. "It is the same dystopian vision. The East wins
while the West loses; the workers lose while the machines win," Cameron said.
"I don't believe it has to be this way."
He cautioned that the West cannot afford to be "starry eyed" about
globalization. He pointed to an emerging trend - re-shoring - where some jobs
that were once offshored are coming back, from East to West. "It's time to
bring the benefits of globalization home to ensure the benefits are felt by
hard-working people in terms of security, stability and peace of mind," he
said.
Cameron pointed to a recent survey of small and medium-sized businesses
that found more than one in ten has brought some production back to Britain in
the past year.
A survey of leading US-based manufacturing companies indicated that more
than one-third was planning, or actively considering, shifting production
facilities from China to the United States.
One important factor in re-shoring in the US is the development of shale gas.
"This is flooring US energy prices with billions of dollars of energy cost
savings predicted over the next decade," Cameron said. These trends can be a
"fresh driver" of growth in Europe and across the United Kingdom.
"Right now economies in Europe have a unique opportunity to accelerate this
new trend of jobs coming back home," he said. But for re-shoring to happen, it
is important to uphold the core values of liberal democracy, including the
rule of law, freedom of speech and freedom of the media, property rights and
accountable institutions. "These are vital foundations for long-term stability
commercial success. We need to build on these foundations," Cameron said.
However, before Europe can benefit from re-shoring, he said two key
arguments that risk undermining competitiveness must be settled. First, the
overall business environment: macroeconomic stability, European economies with
debts and deficits under control, strong finance, free trade, and "an
unashamedly pro-business regulatory environment".
There are still people who think the key to success is "ever greater social
protections and more regulation," Cameron said.
Second, Europe needs cheap and predictable sources of energy, including
renewables, nuclear and shale gas. "We need to explore the opportunity offered
by shale gas," he said.
Cameron acknowledged the needs for the right regulations and public
reassurances about environment dangers. However, he warned that if the EU or
member states impose burdensome, unjustified or premature regulatory burdens
on shale gas exploration in Europe, investors will quickly head elsewhere.
"Oil and gas will still be plentifully produced, but Europe will be dry," he
said.
When questioned about Britain's relationship with the European Union,
Cameron pointed to the "enormous unhappiness and public disquiet" about the
EU. "Let's reform the EU and reform the UK's relationship with the EU," he
said. "It is doable, deliverable and winnable for Britain to stay in a
reformed EU."
The 44th World Economic Forum Annual Meeting is taking place from 22 to 25
January under the theme The Reshaping of the World: Consequences for Society,
Politics and Business.
More than 2,500 participants from 100 countries are taking part in the
Meeting. Participants include more than 30 heads of state or government and 1,
500 business leaders from the Forum's 1,000 member companies, as well as
Social Entrepreneurs, Global Shapers, Young Global Leaders and representatives
from civil society, media, academia and the arts.(end)
ta.rk
KUNA 251351 Jan 14NNNN