Who are EU? Ambiguities in the Concept of Competitiveness
Strange, Susan. “Who are EU? Ambiguities in the Concept of Competitiveness.” Journal of Common Market Studies 36, no. 1 (1998): 101-114.
Building on the argument of Robert Reich that the location of economic activity (in a state) was more important for its competitiveness than the ownership of companies (whose production was carried out abroad), Strange suggests that unless European policy recognises the importance of society based competitiveness rather than firm-based competitiveness, Europe’s economic problems cannot be overcome. Strange then discusses European trade policy (which needs to be more predictable), investment policy (which should be more open), European Monetary Union (which while stabilising may have little effect on inward investment from non-European investors), and welfare issues (which need to continue to cushion technological-unemployment). Strange concludes that while states (and the European Union) cannot directly intervene in markets successfully, they can act as ‘good landlords’ to encourage the location of activities on their territory, and by doing so gain the benefits which Reich suggests are possible.
Keywords: Europe; Money and Finance; Production; Trade; European Integration