The European social model "does not have to be abandoned but it must be adapted to meet the challenges of the 21st century (former British Work and Pensions Secretary David Blunkett). His Prime Minister (Tony Blair), never shying away from confrontations, has set the tone for this debate, to which this book contributes. PM Blair went further to say recently that nobody would deny that Europe in one way or the other is in a crisis. 20 million unemployed people; productivity rates falling behind those of the USA; outsourcing is increasing, allowing more science graduates to be produced by India than by Europe; skills, R&D, patents, IT, going down not up. India will expand its biotechnology sector fivefold in the next five years. China has trebled its spending on R&D in the last five years. After the negative results of the constitutional referenda in France and the Netherlands, it would be foolish to deny the existence of such a crisis. But what are its causes? Too much globalization, too much distance from the average European citizen, too much regional disparity among members, too heavy tax burdens, insufficient investment in infrastructure for development, or too much regulation? Or a shrinking demographic base and barriers to migration? Or the rigid policies of the European Central Bank and the Maastricht accords? So Europe, again in the words of David Blunkett, has to "learn the lessons of change" if it is to meet the economic challenge posed by India and China. So, do we need after all roadmaps to "Bangalore" to make Europe really fit for the 21st Century? This book, a real "reality check" of the issues involved, and written by European and Asian and World Bank specialists, leaves behind the trodden paths of transatlantic comparison US-EU and looks at the real global issues that cause some nations to stagnate while others rush forward.
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