Impact of the International Sector on Geneva and the Lake Geneva Region

Impact of the InternatIonal sector on Geneva and the lake Geneva reGIon the observatory of the fondatIon pour Genève «Impact» – booklet nr 1/6 1 impAct of the internAtionAl sector on GenevA And the lAke GenevA reGion A joint AcAdemic study conducted by 2 Summary preface 3 foreword 7 – An original approach 8 objectives and methodology 11 – Originality 12 – Main objectives of the study 13 – Definitions and scope of the study 13 – Problems and assumptions 16 – Databases 18 – Presentation of the surveys 19 first results of the study and interviews with the researchers 25 – Regional context: Geneva as a “small world-class city” 27 – Interview with Manouk Borzakian (EPFL) “Geneva is the smallest 36 world-class city” – The direct impact of the multinational companies established in the canton 38 of Geneva on the local economy – Interview with Délia Nilles (Unil) “The productivity of foreign multinationals is 44 higher than that of Geneva’s economy as a whole” – The personnel employed by the multinational companies and the salaries paid 46 – Interview with Yves Flückiger (Unige) “It was time to present a more realistic 54 image of the internationals in Geneva” – The international governmental and non-governmental organizations and 56 the permanent missions – Interview with Cédric Dupont (IHEID) - “We know little about International 58 Geneva” – Joint interviews 60 summary 63 – Next steps 66 research methods 67 thanks 69 3 preface 4 preface Preface Give and take... This is one of the basic principles of the “Geneva Spirit” which has governed - and continues to govern - our city’s destiny. This is one of the reasons why, in the space of a century, Geneva has become the world’s biggest centre for international cooperation. A city of refuge, a stop-over for the world’s leading intellectuals, the hub of humanist thinking, this “small world-class city” has always taken an interest in the fate of mankind. Its humani- tarian, diplomatic, arbitral and ethical spirit has attracted not only international governmental and non-governmental organizations but also multinational companies. A host of qualities that make Geneva a flagship city for Switzerland’s influence in the world. Consequently, our canton is heavily dependent on the success of its delicate mission, on which the best part of its prosperity depends! It is in the same spirit that the Fondation pour Genève concerns itself with the fate of “Inter- national Geneva”. In the past decade our city has had to face painful issues regarding housing, mobility and security. The climate has become strained. This was all it took for some of the population and political classes to point a finger at Geneva’s international residents. The most worrying rumours start to circulate. Alas, they are not limited to bar room philosophy. They are often spread by influential people who fail to weigh up the possible consequences of their actions. Certainly, there is no need to panic! Nevertheless, the alarm bells are ringing, compelling us to take the issue seriously and tackle it head on. Is Geneva and its region still a beneficial haven for internationals, or not? Where does Geneva stand among the cities competing to attract the international organizations and multinational companies? As for the internationals, how integrated do they feel in Geneva, how do they think the Genevans feel about them? To get to the bottom of this, only facts, figures and statistics can provide the answers. Never before has an academic study been conducted to answer these questions. By bringing in the universities of Geneva and Lausanne, the Federal Institute of Technology Lausanne (EPFL) and the Graduate Institute of International and Development Studies (IHEID), the Fondation pour Genève aims to give the most accurate picture of the situation as it stands today. preface 5 This booklet on the subject of “Impact” is the first in a series of six and offers an objective picture of the situation. Its findings scientifically prove the overwhelming importance of the international sector on our soil. It is up to the population and politicians to find inspiration in it, for the well-being of both the international and local residents. This study, which was conducted over a two-year period, allows us to finally see how the fate of “International Geneva” is greater than its own: it has a major impact on that of the world itself. It’s up to us to plan for the future. ivan pictet Chairman, Fondation pour Genève 7 fOreWOrD 8 FOREWORD An original approach The study you are holding in your hands (five more will follow) is original. Doubly so. Not only because of its methodology and results, but because of its origins and dynamics. One could even say that it’s a first. Since 1998, when Ivan Pictet became its chairman, the Fondation pour Genève has continually fought for Geneva to be influential, open to the world as a centre for international cooperation. It initiates studies, formulates strategic proposals to maintain this “small world-class city’s” position as a front runner among international cities. The Fondation participates in various think tanks that are backed by the federal, cantonal and municipal authorities and is involved in a number of projects to promote the Lake Geneva region’s global competency centres. Finally, it acts as a mouthpiece for the stakeholders in the international sector. As time goes by, its chairman, Ivan Pictet, and his team have seen how tough the battle is to maintain the long-standing tradition of a city that plays a leading role when it comes to international decision making. In the 1990s it became obvious that the world was changing. Geneva, the indisputable headquarters for international organizations, could no longer rely solely on its international fame and reputation for “good offices”. Other capitals were jostling to offer theirs, although they lacked the same experience. So, the Fondation pour Genève pulled out all the stops to reinforce the Lake Geneva region’s international position, improve relations between the international and local communities, help the international community to integrate and to develop ideas that favour dialogue and an exchange of ideas. This fight, carried out in conjunction with the authorities, was successful. After the WTO opened its headquarters, many other organizations and a variety of multinationals followed suit, estab- lishing themselves in Geneva. At one point it looked as if we had won. The crisis, which was beginning to emerge, was to change the sentiment, as well as several other phenomena that began to impact the “city at the end of the lake”. In recent years Geneva, like the rest of the lakeside region, has been facing visible problems related to a lack of housing, increased road congestion and a rising cost of living. The opening of the bilateral negotiations in 2002, which made it easier for foreigners to find employment on our soil, has also contributed to making city life more complicated. Such circumstances could only harm relations between the local and international communities. Unsettled by the economic crisis and the rise in unemployment, a certain number of Genevans, joined by a few politicians, have harshly criticized the internationals and regularly denounce their privileges. As for the latter, the Fondation pour Genève is well placed to note a new feeling of unease among them. When the Fondation approached them for a financial contri- bution to its efforts, it received many signs, accounts and complaints from them, expressing their growing sensation of being despised. FOREWORD 9 So, we find ourselves faced with an unusual paradox: while many internationals are truly integrated in Geneva - having lived here for many years - they are increasingly poorly perceived by a fringe of the local population. Even worse, while this same fringe is worried about Geneva’s economic future, they are blind to the considerable economic contributions made by the international organizations and multinational companies, here in Geneva. It is euphemistic to say that there is a sense of unease developing between the two populations. Too many numbers from multiple sources, too many subjective and partisan viewpoints have fuelled rumours on the subject. Ivan Pictet decided that only a scientific academic study would be able to provide an objective account of the everyday reality of the internationals in our region and their economic and sociological impact. The Fondation pour Genève’s proposal was simple: to entrust the Lake Geneva region’s academia with the task of measuring - with the rigour required for this kind of work - the impact of the so-called international sector on the Lake Geneva region. This “impact” would have to be measured from every angle using an interdisciplinary approach. The idea immediately took off. It appealed as much to the academics as to the Fondation pour Genève’s benefactors. Without further delay, a working group was formed with representatives from several disciplines and from four different institutions: professors Yves Flückiger (University of Geneva), Jacques Lévy (EPFL), Délia Nilles (University of Lausanne) and Cédric Dupont (IHEID). It was their job to refine the scope of the mandate and put together a team of researchers to carry out the initial research. A year later the first findings emerged. They were presented at a press conference in November 2012 and are the subject of this first booklet. serge bimpage Journalist 11 OBJecTIVeS aND MeTHODOLOGY 12 OBJECTIVES AND METHODOLOGY Before presenting the bulk of this first Cahier dedicated to the international sector’s impact on Geneva and the Lake Geneva region, one should look again at the study’s originality, review its objectives and provide a clearer outline of its scope. Originality Firstly, this study is original because it is a joint research project carried out by four of the Lake Geneva region’s universities.

Load more