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

 

MSF: Ebola Crisis Update - 16th October 2014

16 October 2014 Cases Deaths Guinea 1,472 843 Liberia 4,249 2,458 Nigeria 20 8 Sierra Leone 3,252 1,183 Senegal 1 0 Total 8,994 4,492 WHO Figures - Data are based on official information reported by Ministries of Health. These numbers are subject to change ... More>>

ALSO:

Detroit: City-Backed Water Shut-Offs Contrary To Human Rights

20 October 2014 – The city of Detroit must restore access to water for its citizens who remain unable to pay their bills, two United Nations experts urged today, adding that a failure to do so would be a violation of the most basic human rights of those ... More>>

ALSO:

DR Congo: Head Of UN Mission Condemns Deadly Rebel Attacks

A MONUSCO APC is greeted by FARDC soldiers on their way back from the front line in the Beni region of the DRC where the UN is backing the FARDC in an operation against ADF militia. Photo: MONUSCO/Sylvain Liechti More>>

UNESCO Chief Denounces Killing Of Cambodian Journalist

17 October 2014 – The head of the United Nations agency tasked with defending press freedom today denounced the killing of a Cambodian reporter shot while investigating illegal logging in the eastern part of the country. More>>


UN Lauds Role Of Family Farmers In Ending Global Hunger

A farmer at work in a dragon fruit field in Viet Nam (July 2013). Photo: FAO/Hoang Dinh Nam | See more photos More>>


Funding Gap Looms Amid Efforts To Tackle Ebola & ISIS

Funding Gap Looms Amid Efforts to Tackle ‘Twin Plagues’ Ebola, ISIL, Warns UN Rights Chief More>>

ALSO:

  • The White House - Ebola: What You Need to Know

  • Egypt Sentences Another Al Jazeera Journalist

    In another disturbing move against freedom of speech and independent journalism in Egypt, one of Al Jazeera Arabic channel’s presenters, Ahmed Mansour, has been sentenced in absentia to fifteen years imprisonment by Cairo’s criminal court on the absurd ... More>>

    ISIL Advance On Iraqi Town Unleash New Flood Of Displacement

    Syrian Kurds from the town of Kobane seeking shelter in Iraq's Kurdistan region. Photo: UNHCR/D. Nahr More>>

    ALSO:

  • U.S. Department of State - U.S. Condemns ISIL Attacks in Iraq

  • Get More From Scoop

     
     
     
     
     
    World
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news