World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Why the UK is Turning Into An Old-Style Third World Economy


Why the UK is Turning Into An Old-Style Third World Economy

The OECD’s latest economic outlook has highlighted the fact that whilst ‘real GDP in the United Kingdom is still 3.1% below its value in the first quarter of 2008, but employment is back where it started’. At a breakfast meeting this morning the head of Europe’s leading employers’ group explains why this phenomenon is less a mystery than a deeply disturbing trend. The Federation of European Employers reports ....

Commenting at a business leaders’ breakfast briefing today the Secretary-General of the Federation of European Employers (FedEE), Robin Chater, went some way to explain a phenomenon which has been termed “the UK Paradox”. The paradox arises because contrary to expected trends employment levels in the UK have been rising in recent years, even though GDP has been falling.

According to Robin Chater “If we take a look at UK capital replacement figures in national accounts statistics we can see that it has fallen more than any European country since 2005. The UK is turning into an old-style third world country with low pay growth for most workers below managerial level, widening pay differentials and poor levels of capital investment. This has been partly encouraged by the influx of workers from eastern Europe since 2004 - who have been willing to perform many functions at low wage rates that would have otherwise been automated.

It s ironic that although the city of London financial markets represent Europe's largest foreign direct investor in the rest of the world the city largely neglects its home market. This is a second paradox with massive amounts of money flowing in and out of the exchanges in London, whilst all around it is the waste land of the British economy - starving for capital investments. Of course, it s not all the fault of the city - as much of the blame must be placed on companies operating in the UK for taking a short-term view and continuing to use machinery/equipment/systems that should have been replaced long ago.

As Henry Ford once said "If you need a machine and don't buy it, then you will ultimately find that you have paid for it and don't have it."

--

What is FedEE?

The Federation of European Employers (FedEE) is the leading organization for multinational companies operating in Europe. It was founded in 1989 with assistance from the European Commission and has its head office in London, UK. The Federation is a direct member organization currently chaired by Ford Europe.


ENDS


© Scoop Media

 
 
 
 
 
World Headlines

 

Israel’s Demolition Of Palestinian Homes

Makarim Wibisono, Special Rapporteur on the situation of human rights in the Palestinian territories. UN Photo/Violaine Martin More>>

ALSO:

  • Palestinian Centre For Human Rights - Israeli Settlers Continue Their Attacks against Palestinians
  • Tribespeople Call On WWF To Stop Funding Abuse

    This Baka man from Ndongo village reported that he was severely beaten by anti-poaching squads on two occasions. His neighbors have appealed to WWF to stop funding such abuses. More>>

    Ebola: UN Crisis Response Mission Opens New Office In Mali

    Workers build an enclosure at the Mayagba Ebola community care centre construction site in Bombali District, which is among the areas worst affected by the disease in Sierra Leone. Photo: UNICEF/John James More>>

    ALSO:

    UNESCO Chief Denounces Murder Of Somali Radio Journalist

    Director-General of the UN Educational, Scientific and Cultural Organization (UNESCO), Irina Bokova. UN Photo/Devra Berkowitz More>>

    Palestinian Refugees From Syria Face Worsening Situation

    Palestinian women at a UNRWA distribution centre in the Jaramana refugee camp, Damascus, Syria. Photo: UNRWA/Carole Alfarah More>>

    ALSO:

    Greece Risks Prolonged Social Crisis

    Greece’s severe financial crisis has bred social unrest and intolerance of the nearly one million irregular migrants living in the country (October 2012). Photo: IRIN/Kristy Siegfried More>>

    Madagascar: Warning Of ‘rapid’ Spread Of Plague In Capital

    Ny Hantra Andriatsifasoa survived the bubonic plague after being infected in Madagascar in 2011. Photo: IRIN/Tiana Randriaharimalala More>>

    New Bird Flu Strain In Europe Threatens Poultry Sector

    24 November 2014 – The United Nations Food and Agriculture Organization ( FAO ) today warned that a new bird flu strain detected in Europe poses a significant threat to the poultry sector, especially in low-resourced countries situated along ... More>>


    Get More From Scoop

     
     
     
     
     
    World
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news