What makes the EU attractive?
[caption id=”attachment_3652" align=”alignnone” width=”380"]
Port of Rotterdam[/caption]
The Netherlands is famous for red lights and all kind of funny flowers, but this country made out of cheese should also be known for something boring: planes, ships, and cars. The port of Rotterdam (biggest in Europe and among the biggest worldwide), Schiphol airport, and the country’s extensive road/railway-network plus distribution facilities connect the Dutch and European market with the rest of the world. And vice versa. I even dare to say: without the Netherlands no single market in Europe.
Im telling nothing new. Though, sometimes we forget the importance of having a good logistic network. What it means to be able to send a message, a container, or a person where-ever we want.
The importance of cheap/efficient logistics becomes most clear in a country like Papua New Guinea. The untouched vastness of this fairly unknown country, all the way near Australia, make sure many regions are difficult to penetrate. We are not just talking about the lack of roads. Huge investments have to be made to make sure the cargo arrives in one piece. Trucks are obliged to travel in convoy with all required security measures, tribes near the road have to be paid (what doesn’t exclude the possibility of driving through the middle of a tribal war), and lets not even start about the costs of insurance. Also the lack of players and infrastructure drive prices up. Sending cargo from Sydney to Lae, just by sea, is far more expensive than sending it to Europe. The lack of industry doesn’t make it easier. Think about it, the demand is there, ships are fully loaded but without a local manufacturing base they have to return empty. You will see this in the price you have to pay.
This makes it a challenge for the local government to make a large part of its population part of its economic development. To ‘sell’ the attractiveness of certain regions to potential investors. It also makes it more challenging for the country to develop as a whole. PNG is not alone in this situation. Indonesia for example saw similar challenges. How to make sure the economic growth doesnt stay in one area. How to make sure economic development in one region also impacts the development of other regions.
This story reminds me about the value of having an European Union. Roads, rails, and bridges make us all stronger. No matter how boring. It therefore also saddens me to see what we have made of the European Union. The lack of understanding about what it means if this project falls apart (and that threat is far more realistic than many people realize).
I dont blame the people who want change. Who even vote for leaving the European Union. Democracy can never be the reason. I blame the European leaders who try to make the European Union into something its not. The strength of this Europe is in many hidden aspects of the project. Aspects that are difficult to explain and difficult to see value in. But its mostly about offering the whole of Europe the chance to capitalize upon being part of a strong market.
We are a trade-house. We are not a political union and we should not become one. The strength of this Europe is in trading and in cooperating economically. The need for some people to profit from the EU in any other way has brought the union on the verge of destruction. Political change is needed. Fast.
T.S Ritmeester
Economic researcher based in Port Moresby, Papua New Guinea
Proud member of School of Democracy 2015
