“Bouncing back thanks to our network”

Photo : D.R.

Hans Heinrich Driftmann became President of the DIHK network six months ago. A former teacher and company director, he talks about the kind of pitfalls that should be avoided at all costs if a return to sustainable economic growth is to be achieved.

Commerce International: You took up the reins of the German CCI network at a delicate time in regards to the economic situation. What kind of strategies are you going to apply to help counter the crisis?
Hans Heinrich Driftmann: “Firstly, it should be pointed out that our organisation is, by its very nature, extremely well placed to make a valuable contribution in difficult situations. Thanks to its substantial regional presence, the network is permanently informed of developments across the economic spectrum and of the specific needs of companies and the problems with which they are faced. The rapid identification of precise needs is essential in order to be able to react quickly. As well as exploiting this structural advantage, we are currently placing a greater emphasis on providing finance. Because of the budgetary restrictions imposed by the banks, a large number of companies are still having trouble in finding the funds required to bring their ambitions to fruition. To hep them do this, we organise round tables to which all the
actors involved are invited: company MDs, credit institutions, associations and political decision-makers. The objective is to compare problems and points of view in order to develop innovative solutions of which everyone is in favour. It is important, in periods of crisis like this one, to provide as much advice, and as many testimonials and suggestions as possible to political decision-makers to show them the way forward and illustrate the orientations required to boost the economy. For example, we are asking that capital transfer tax and corporate tax should be lowered to relieve entrepreneurs of some of the pressure they’re currently under. We shouldn’t forget that German CCIs represent over 3.5 million companies. That’s a considerable number, which explains why the government ask us for advice when it’s preparing important parliamentary bills.”

What are your views on the state of the German economy?
H.H.D.: “German industry has been particularly hard hit by the global recession. More so than in other large countries. But we reached a turning point in the middle of this year and the economy is gradually getting back on track. We are currently demonstrating our capacity to bounce back rapidly, even if there is still something of a mountain to climb. We have to be patient and wait a little longer before getting back to 2007 production levels. The labour market has been relatively untouched by the economic crisis. That’s a good thing. The total number of unemployed workers in Germany is fairly low considering the circumstances. This can be partially explained by the number of short-term jobs.”

What are the major risks to which the German economy is exposed now?
H.H.D.: “Four areas can be mentioned that require very close attention. We have a number of concerns in regard to the German government’s position on the economy. Since the start of the crisis, the State has been very involved, at various levels, in the private sector. We are hoping that this relationship does not prove to be synonymous with a long-term rapprochement with private firms. German dynamism could be adversely affected. Government shares and capital injections in the private sector are to be avoided at all costs. We are asking the government to clarify its position in order to reassure entrepreneurs and investors. Later on, we must ensure that we are more parsimonious with the public purse. In the past, money generated through taxation was spent too generously. That’s easy to understand now at a time when every euro counts. And we musn’t neglect the problems associated with changes in demographics. The population is ageing and the birth rate is much too low. This means that needs are going to change. Some branches of the economy will develop, opportunities will appear. Some sectors will need more manpower and grey matter; that’s why professional training will have to adapt. We must not allow ourselves to be caught out by not taking these developments into account. Lastly, protectionism is now more than ever a threat that needs to be avoided. Attempts to re-establish commercial barriers are being made in several regions. But it’s through combining our strengths and being open to possibilities that we can ensure that the economy starts to grow again. This idea should be one of the major lessons the crisis has taught us.”

Exports are very important to Germany. Does the development of certain countries offer interesting perspectives for the private sector?
H.H.D.: “The emerging economies of central Europe, Asia and Latin America will continue to progress. Countries in these regions are gradually becoming stronger. Their infrastructure will improve; their productivity levels are looking healthier. They are genuine sources of potential growth for the German economy. Technologies in the fields of sustainable development, energy and the pharmaceuticals industry are cutting edge sectors on which we are placing a good deal of emphasis. We are already heavily involved in these fields. We have to use our expertise to develop our partnerships and joint-projects. We have close ties with the 120 German CCIs throughout the world, privileged interlocutors for companies needing help and advice in their internationalisation projects.”

What concrete initiatives can the German Chambers develop in order to support exports?
H.H.D.: “The keys to success in this field are largely to be found in the partnership networks we are maintaining and developing. The government has put in place
a political framework designed to reas-sure business leaders. Credit insurance packages for exports or export programmes designed for precise sectors are part of this approach. In parallel with this government support, we provide consultancy services to export companies and firms looking to expand into foreign markets. There are concrete programmes designed to help firms exploit existing opportunities, break into various markets, understand the state of the competition and provide indispensable information about the country or region concerned. There again, the German Chambers beyond our borders provide valuable help and advice. We also organise export events with a view to encouraging entrepreneurs to take the first step and exploit new opportunities. The events organised as part of Good New Europe in Bremen starting on November 24 to promote international joint-projects are an example. This year, France is in the spotlight. Our network makes a priority of international trade. The economic crisis has only made us more determined. In the future, we want to put even more thought into operations serving as platforms for developing international trade yet further.”

“Bouncing back thanks to our network”

Germany’s legendary economic stability has been rocked by the global recession. But as the outlook improves, the huge German CCI network, the DIHK, is seen by many decision-makers as an organisation that they can trust.