Jean-Pierre Roth: More growth a must
Summary of a speech by Mr Jean-Pierre Roth, Chairman of the Governing Board of the Swiss
National Bank, at the Swiss Economic Forum, Thun, 27 May 2005.
The complete speech can be found in German on the Swiss National Bank's website (www.snb.ch).
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Since the mid-1970s now, economic growth in Switzerland has been significantly lower than that of
other industrialised nations. In terms of per capita GDP among OECD countries, Switzerland lost its
leading position during this time, falling back into the main field. Economic growth is vital, however, for
the sustainability of our social security institutions. Demographic shifts will cause the ratio of
pensioners to contributors to double in the next 30 years, with the result that tomorrow's generation
will be faced with a heavy burden - one that could be considerably lightened by higher growth rates.
The soft growth in Switzerland is primarily attributable to the lack of competition in the domestic
market. There are numerous known ways to boost growth which have proven successful in many
other countries. So far, however, Switzerland unfortunately has neither grasped the importance of
implementing these measures, nor does it have the political will to do so. Stronger economic growth
can only be achieved by opening our domestic market to competition, contributing to the attractiveness
of Switzerland as a business centre and strengthening our human capital. The necessary reforms will
call for short-term sacrifices from all walks of life, such as the relinquishment of protection and
privileges. However, the long-term gains in wealth for the country at large will more than compensate
for these short-term difficulties.