In dieser Rubrik finden Sie Berichte von den „Ordnungspolitischen Dialogen“, einer internationalen Konferenzreihe zur Ordnungspolitik in Zwickau und an anderen Orten. Diese hat sich seit 2007 etabliert und wird von den Initiatoren des Ordnungspolitischen Portals in Zusammenarbeit mit der Universität Tartu in Estland sowie der Hanns Seidel Stiftung in Seoul veranstaltet.
New Approaches to a Free International Order
Date: November 14-16 2018, Venue: Seoul National University, Seoul / South Korea
On account of a mixture of different aspects, such as the quick and easy transportation by train or airplane, the internet and the common interest to interact and learn from each other, we now may find ourselves living in a thoroughly connected, globalized world. However, it hasn’t always been like that and at this very moment it seems to be changing. In times of protectionism and populism, which can be experienced all around the world, however, the question has to be raised whether the approach towards globalization, which was originally aimed to achieve, might have failed. Instead new approaches to a free international order should be taken into consideration which was the underlying goal of the 7th Dialogue on Social Market Economy. This year’s conference with the title “Globalization failed? – New Approaches to a Free International Order.” took place at the Seoul National University in Seoul, Korea, which is well-known as one of the three top universities in South Korea.
The first day of the conference, November 14th, was opened by Prof. Dr. Seung-Jong Lee, the Dean of Seoul National University, as well as by Dr. Luther, the head of the HSF institute for international cooperation, who was staying in Korea for a two-week field trip. Prof. Dr. Lee covered in his speech the results of previous conferences of the “Ordnungspolitische Dialoge”, as well as mentioned today’s global political situation and its resulting impediments. Dr. Luther focused in her speech more on the case of South and North Korea and emphasized the required change in opening up the North Korean economy. Therefore, she described an analogy to the times of German division by stating that “the East German transformation was very painful, but ultimately is was successful and made Germany and Bavaria stronger, based on a market-approach.”
The opening speeches were then followed by the Keynote speech hold by Prof. Dr. Young-Hoon Paik, the President of Korean Industrial Development Institute. He started off by explaining Korea’s situation in 1960s, when the Korean war was over, but the country was still suffering from its aftermaths. He ended his speech by specifically emphasizing the significance of the German concession of financial aid to South Korea, as well as the economic guidance by Ludwig Erhard, the father of Social Market Economy, to achieve the Korean dream of economic prosperity.
After a short break, the first session regarding globalization started, which was moderated by Dr. Seliger. In the first presentation by Prof. Dr. Yalamova, Associate Professor of the University of Lethbridge, she talked about blockchain, a technology well-known for its fundamental usage in the Bitcoin system, as it records transactions constantly, which can’t be erased but is sequentially updated. In her presentation she considered its application to the polycentric governance of socio-economics as well as sheds light on its negative aspects. As second speaker Prof. Hirasawa of the Nihon University provided insight into the negative effects of globalization on small and middle-sized companies (SMEs). He explained that multinational enterprises (MNEs) may produce huge quantities of products, which on account of economies of scale lead to cost savings and excess capital. In conclusion he stated, that this excess in capital results in international investments and intensified competition deteriorating conditions of SMEs and Start-ups.
After a short tour through the Seoul National University Campus, the second session by the name of “Globalization II” took place, which was picked up where Prof. Hirasawa left off earlier that day. Under the moderation of Prof. Dr. Sepp, this session started with the presentation about changes in international trade patterns by Prof. Dr. Wrobel of the University of Applied Sciences Zwickau. Therefore, he analyzed the vertical and horizontal intra industry trade between the three economic centers, which are North America, Europe and East Asia, as well as investigated the application of two theorems by Heckscher-Ohlin and Stolper-Samuelson. Prof. Dr. Wrobel summarized his presentation with “The China Effect”, which implies that Chinese labor-intensive exports are shrinking while vertical intra-industry trade is increasing. Prof. Dr. Neves of Universidade Autónoma de Lisboa analyzed neo-liberal adjustment policies as impediments to long term growth, equality and social cohesion in small states by the example of Portugal. His results showed that neo-liberal adjustment policies, as applied to Portugal in 2011-2014, lacked consideration on long-term impacts on aspects, such as growth, social cohesion, human rights and political sustainability. The last speaker of the day was Prof. Dr. Varblane, a professor at the University of Tartu. In his speech he defined populism from an economic perspective and identified globalization to be the main cause for today’s popularity of populists. Also, he analyzed the people who voted for Brexit, the promises made by populists as well as the implications of the vote for the UK. After drafting the possible outcomes of a soft or hard Brexit, he closes his talk by recommending that a common solution for Brexit by the end of November 2018 shall be found.
The following day started with the Keynote speech by Prof. em. Dr. Dr. h.c. Sung-Jo Park, who compared in his talk the social market capitalism in Germany with the state capitalism in South Korea and analyzed the divergencies as well as convergences.
In the first session of the day, which focused on North Korea, Prof. Dr. Wierzbowski, Professor at the Hankuk University of Foreign Studies, described the general economic situation of DPRK, also considering the implemented sanctions and how they are being circumvented. Moreover, he briefly provided a summary on economic developments, e.g. market growth as well as price changes. Dr. Seliger, the Resident Representative of the Hanns Seidel Foundation Korea, moved on by talking about the difficulty of maintaining the North Korean planned economy without actual underlying data and the basics of the political economy and hybrid socialism in North Korea. In addition, he provides essential background information on North Korea’s leader cult and its class-based society. At last, the Prof. Jung of Seoul National University presented his ideas regarding the re-education for government officials of North Korea after the Unification of the Korean Peninsula. After introducing the corresponding theory, and the political and administrative structure in the DPRK, in a second step he took a closer look at the German reunification process and looked for analogies to Korea. Eventually, he summarized the measures to be undertaken.
After lunch the session called “Economics and political topics in the EU” took place with the presenters being Prof. Dr. Vadi, Prof. Dr. Ukrainski, both professors of the University of Tartu, and Mr. Hess, a doctorate student of the University of Erfurt. Prof. Dr. Vadi, who covered the interesting subject of cultural learning theories by the example of Estonia’s prime ministers (PMs), conducted interviews with six out of ten former Estonian PMs since 1991. During the presentation she split up the information gathered into the different life stages and demonstrated the results and thus, finished by answering the question whether there is something new for cultural learning theory. Prof. Dr. Ukrainski intended to research the internationalization of firms R&D activities by analyzing the countries’ subcommunities, identifying role patterns that firms from different countries play in H2020, as well as comparing the number of connections of business sectors of EU15 and EU13 in H2020. Her conclusion is that Germany is the only one hub-country, and that other countries, especially EU 13 members, tend to be peripheral. As the last speaker of this session, Mr. Hess considered another economic perspective by taking a look at people’s happiness and what kind of role the welfare state plays in it. Based on past statements being supported by the World Happiness Report, Mr. Hess assumes that there exists a connection. He even suggests that the ultimate objective of public policy might be wellbeing, which shall function as a mean to investigate economic policy measures.
The final session of the 7th Dialogue on Social Market Economy considered regulatory and economic perspectives. Mr. Kretschmer made a start by presenting Karl Polanyi’s pendulum, which states that there are two phases in which either markets are restricted or liberalized. Based on this assumption Mr. Kretschmer raised the question whether this had an influence on topics of economic research. Based on May and Nölke’s calendar on liberal and organized periods, Mr. Kretschmer analyzed the usage of key words in the respective periods leading to the result that there may exist Polanyi’s Pendulum also in economic literature. The next speaker is Prof. Paik, Professor of the Chung-Ang University, who compared in his paper the German Basic Law and the Constitution of the U.S. and ROK, as well as the competition laws prevailing in Germany, U.S. and Korea. Based on these analyses, Korea has more similarities to the U.S. than to the German competition laws. Also, it is indicated that there are no principles of the Social Market Economy implemented in Korea. Consequently Prof. Paik, recommends reconsidering Korean policy ideology. As interdisciplinary approach Mr. Schneegans, a Master student of Psychology, who was not able to join the conference in Seoul, presented his paper with the topic of filter bubbles on Social Media via conference call. After explaining the different existing filters, e.g. the technological, social and cognitive ones, and their perils, he then finishes his presentation by advising on how to deal with these different filter bubbles in general, as well as by giving recommendations for individual reflection.
Excursion to the North Korean Border