5 / 2013 Bulletin The world’s oldest banking magazine – since 1895.

Identity - Who We Are and What Defines Us Including results of the major survey, the 2013 Swiss Worry Barometer T h e Art of progress. The new Audi A8.

The art of breaking new ground in design and dynamics with lightweight engineering. Experience the technique of reducing the weight of wheels using new materials and thereby realising new potential savings. The 20" technology wheel* of the new Audi A8. More at www.audi.ch/a8

* optional feature — Editorial —

Identity Is a Many­Faceted Thing

1 2 3 4 hether for individuals or groups, to build up a sense of self or differentiate from others, the act of defining identity strikes a chord with everyone and opens the emotional floodgates. The struggle to define the self is at the heart The following people contributed to this issue: W of every personal biography and, for better or worse, has shaped global history. his issue of Bulletin examines identity in Switzerland. 1 Yves Genier Knowing that a country cannot have one single identity, The Swiss business journalist is experiencing we explore various aspects of what it means to be Swiss. the upswing in the Lake Geneva region, up For example, what is still Swiss about the emigrants who were close and personal. Genier, 47, has always T lived between Geneva and Lausanne. His driven out of the country for economic reasons more than 70 report on Arc Lémanique starts on page 28 years ago and settled in northern Argentina (see page 56)? How are the economic recovery and internationalization changing the 2 Monika Bütler Arc Lémanique, the booming region on Lake Geneva (page 28)? The economics professor at the University of On page 20, we look into the phenomenon of how social insur­ St. Gallen and head of the Swiss Institute for Empirical Economic Research writes about ance, AHV or Old Age and Survivors’ Insurance, plays a major the role of retirement planning in creating role in the country’s cohesion. And of course we are also inter­ identity – with a personal perspective, “My ested in how others see our country (page 68). Anyone who con­ grandmother was widowed with three small siders themselves a model Swiss citizen should try their hand at children during the war. When she received a the citizenship exam (page 78). It’s amazing how many correct modest AHV retirement pension for the first time in 1948, she broke down in relief and answers are needed to be granted a Swiss passport. gratitude.” Page 20 he Credit Suisse Worry Barometer is featured in the middle of the issue. What concerns the Swiss? What is 3 Marco Vernaschi important to them? The survey, which has gathered sen­ The Italian photographer has been living in timents on voters’ worries and their perception of identity since Argentina since 2005. He has worked for T 1976, once again produces some astonishing results. More than many of the world’s largest publications and won the World Press Photo Award in 2010. half of respondents are optimistic about their own financial situ­ For Bulletin he traveled with author Andreas ation, and nine out of ten think that things will get even better. Fink to northern Argentina, where they This proportion has never been higher. Faith in the country’s im­ visited a Swiss colony. They returned to Bue­ portant institutions and stakeholders is also at an all­time high. nos Aires with their suitcases stuffed with The government, media, police and Federal Supreme Court have Bündnerfleisch, cervelat, raclette cheese, and cornichons. Page 56 never been more trusted. The analyses and interpretations of the report start on page 37, and the entire report is available for down­ 4 Urs Willmann load at www.credit­suisse.com/worrybarometer. Swiss journalist Urs Willmann left Zurich 15 years ago and moved with his family We would like to thank you for placing your trust in us. to Hamburg, where he now works for Die Zeit. The longer he’s away, the more patri­ Your editorial team otic he becomes. See page 68 for Willmann’s perspective on his homeland.

Bulletin 5 / 2013 — 1

— Contents —

Bulletin: Identity

Credit SuiSSe 4 More Than the Matterhorn 2013 Worry Barometer 56 Switzerland – Suiza Looking Beyond Postcard Visiting Swiss Emigrants in Vistas: Some Unusual Swiss Argentina, Who Commute Landscapes. between their Old and New 37 Worry Barometer Countries. 16 Me, Myself and I What Worries Every Person Has Multiple the Swiss? Identities. Why It’s Good to Be Aware of this Fact. 20 Three Magical Letters 44 % Unemployment,(-5) AHV and health The AHV Means More Than care have become37 less % threatening, Just a Retirement Pension wage worries have(+0) increased. to the Swiss. 29 % (–7) 22 The Future of Banks Urs Rohner on the Swiss Mentality, Credit Suisse and 66 Nature versus Nurture His Favorite Movie. New Developments in an Old 28 Debate. Is Human Nature

On the Upswing Unemployment Immigrants prov. Retirement Predetermined or Malleable? The Economic Boom in the Arc Lémanique, the Buzzing 68 New Love Region around Lake Geneva. How a Swiss in Germany Sees 44 the Voice of the economy His Homeland in a New Light. Valentin Vogt, President of the Confederation of Swiss 69 Elisabeth Kopp Employers. Switzerland’s First Female Federal Councilor Admires 46 identity Barometer Today’s Female Politicians What Makes the Swiss What They Are? 72 “Swiss Made” What the Seal of Quality 51 Focus on trust Means. And How Swiss SMEs Swiss Institutions and Maintain these High Standards. Stakeholders Have Never Been so Popular. 78 Did You Know? A Quiz with Questions from 52 the Voice of Politics the Naturalization Exam Ruedi Lustenberger, for the Canton of Aargau. the New President of the National Council. 80 The Specter of Unemployment Illustrated by Jörn Kaspuhl. 54 Focus on Financial institutions Call for More New in the App Store Self-confidence. The News & Expertise app, Cover: including Bulletin and other current Multiple Identities, illustrated by Zohar Lazar publications of Credit Suisse. (article on page 16). www.credit-suisse.com/bulletin

PERFORMANCE Publishing details: Published by: Credit Suisse AG, content strategy, articles: Ammann, Brunner & Krobath AG

neutral (www.abk.ch), design concept, layout, production: Crafft Kommunikation AG (www.crafft.ch), photo editing: Printed Matter Studio Andreas Wellnitz, Berlin, pre-press: n c ag (www.ncag.ch), printer: Stämpfli AG, circulation: 150,000, No. 01-13-483641 www.myclimate.org © myclimate The Climate Protection Partnership contact: [email protected] (content), abo.bulletin@credit­suisse.com (subscriptions)

Photos: Dan Cermak, Crafft, Marco Vernaschi Bulletin 5 / 2013 — 3 More than the Matterhorn Switzerland at its peak: Every Swiss child and every foreign tourist knows the Matterhorn. And not just because of the postcards it’s on. It is one of the world’s most­photographed mountains and serves as the scenic symbol of the Alpine Re­ public, as it is popularly known. Typical Switzerland! But the country is not so small that it can be reduced to a single monument. So here are some pictures of landscapes that may not be so typical. But they are totally Swiss.

Les Diablerets in the Vaud Alps. Photo: RaffaelWaldner

Caumasee near Flims, in the canton of Graubünden. Photo: Noë Flum

Creux du Van in the Jura, between Neuchâtel and Vaud. Photo: Mark Niedermann

The earth pyramids of Euseigne in the Val d’Hérens in Valais. Photo: RaffaelWaldner

Monte San Salvatore in Ticino; Lugano is to the right. Photo: Roland Tännler

The Greina Plateau in the canton of Graubünden. Photo: Mark Niedermann

— Identity —

Self­Perception is a Picture Book Every person is made up of multiple personalities. It’s not schizophrenia – it’s completely normal. People who are aware of their own multiple identities are more tolerant of others. By Simon Kuper (Text) and Zohar Lazar (Illustration)

One day in 1944, when Amartya Sen was Muslims and Hindus rather than fellow Swiss, Muslim, a woman, a Basler, an eth­ a boy in Dhaka – then still an outpost of Bengalis, Indians, poor people, neighbors, nic Turk, a Justin Bieber fan and a bank British India – a bleeding man came stag­ contemporaries or indeed just humans? employee. Sen – a respected philosopher gering into the Sen family garden. The “Who are we?” has become a hot topic in as well as an economist – might just have man turned out to be a Muslim day labo­ the West in recent years, prompted by hit on a solution for our times. rer named Kader Mia, who had just been anxieties over immigration, globalization knifed on the street by Hindu sectarians. and terrorism. “Identity Can Kill” “I shouted for my parents, while fetching Identity is a powerful feeling. It can arouse some water for him,” recalls Sen, now a feelings of sympathy and solidarity. As a 79­year­old Nobel laureate in economics, Swiss, you might cheer on a skier you have in his book “Identity and Violence”. “As “Who are we?” has never met just because he’s descending the an eleven­year­old boy I could not do become a hot topic mountain in a red­and­white or Swiss­ much for Kader Mia as he lay bleeding cheese­themed suit. “And yet,” writes Sen with his head on my lap.” in the West in recent on the first page of “Identity and Violence,” Hindu and Muslim thugs in Dhaka “identity can also kill.” In 1944, he writes, had suddenly begun killing each other. years, prompted “I recollect the speed with which the broad “While he was being rushed to the hospi­ by anxieties over human beings of January were suddenly tal in our car,” writes Sen, “Kader Mia told transformed into the ruthless Hindus and my father that his wife had asked him not immigration, fierce Muslims of July.” Similar processes to go into a hostile area during the com­ globalization and happened in Nazi Germany, in Yugoslavia munal riot. But he had to go out in search in the 1990s, and are happening to some of work, for a little income, because his terrorism. degree in Syria today. More prosaically, family had nothing to eat.” Kader Mia feelings of identity can make people wish died in hospital. that certain other residents of their country Sen enters this debate with a brilliantly would just “disappear.” The question of Sudden Distinctions simple answer: Stop thinking that anyone identity has bred a lot of disquiet and con­ The incident has stayed with Sen all his has one single identity. It’s misguided to flict. life. It got him thinking about identity: say, for instance, “I am Swiss, but you are Identity is a Swiss issue too. Few Who are we, and what makes people sud­ Muslim.” Rather, we all have multiple other countries have become so multicul­ denly decide that they are, say, warring identities. The same single person can be tural so fast. Partly due to its success

16 — Bulletin 5 / 2013 — Identity —

Bulletin 5 / 2013 — 17 — Identity —

– peace and economic growth – Switzer­ tually the same language; not even if they have just one passport, one national loy­ land has long attracted immigrants from were married. To Sen, giving people a sin­ alty: Dutch or Moroccan, say. But Sen everywhere. The country’s population in gular identity is not merely mistaken. It’s sees heterogeneous identity as the salva­ 1900 was 3.3 million; today it’s over 8 mil­ also dangerous. tion for our irretrievably globalized time. lion. About 1.87 million of these people, Human beings are not all the same, he or 23.3 percent, don’t have Swiss pass­ writes. “Rather, the main hope of harmo­ ports. Others are legally Swiss, but come ny in our troubled world lies in the plural­ from immigrant homes. Some Swiss now “The main hope ity of our identities, which cut across each wonder what they have in common with a of harmony in our other and work against sharp divisions neighbor who has a different skin color, around one single hardened line of vehe­ mother tongue or religion (though of troubled world ment division.” If Kader Mia’s killers had course many of the foreigners are Ger­ lies in the plurality of seen him as a fellow Indian, Bengali, mans and Italians). Dhakari, poor man or human, who just In certain Swiss municipalities, our identities,” happened to belong to a different religion, non­Swiss are now a majority. In Kreuz­ he would have lived, and an 11­year­old lingen, for instance, foreigners make up says Amartya Sen boy would have been spared a traumatic 52 percent of residents, and in Leysin, 62 experience. percent. Even in today’s globalized world Amartya Sen hasn’t just resurrected this is unusual. In the US census of 2011, True, Sen is a cosmopolitan with the name of one of millions of forgotten Miami­Dade in Florida was the only more links to different places than most. victims of single­identity labeling. He has American county where most residents He’s a Harvard professor who has held given us a theory to live by. were foreign­born. posts in Cambridge, Oxford and Delhi. Especially since the terrorist attacks But even the most rooted villager has of 9/11, people of foreign origin – parti­ multiple identities. And these identities cularly Muslims – have aroused distrust in keep changing as, for instance, the village the West. The theory of the “clash of civi­ grows, the villager stops going to church, lizations,” first mooted by the late Ameri­ a European identity emerges, and so on. can political scientist Samuel Hunting­ The villager may also have forgotten that ton, has had a resurgence in popularity. his grandfather, or other ancestors, came Huntington painted the world as a set of from somewhere else. Multiple identities distinct “civilizational” blocs – Muslims, are an inescapable human fate. Hindus, Christians etc. – which were al­ Once you accept that, it becomes most bound to clash. impossible to draw simple confrontational dichotomies like “Swiss” and “Muslim.” If the Differences Vanish The concept of heterogeneous identity is Sen proposes an alternative. He starts by more complex than single identity, and yet saying that giving anyone a single identity once introduced it has a clarifying effect is a distorting simplification. The civiliza­ on topics as varied as Swiss identity, Eu­ tional divide, according to Sen, misunder­ ropean unity and global terrorism. In­ stands humans. It only leads to conflict. deed, the excellent Swiss word “Secondo” Indeed, an extremist like Osama bin acknowledges at least a dual identity, in­ Simon Kuper is a Financial Times columnist who is British, of South African origin, born in Laden used a divide very like Hunting­ cluding Switzerland and the parents’ Uganda, raised in the Netherlands, Jewish, ton’s. A Muslim had nothing in common homeland. with an American wife and children. He lives with a Christian. Similarly, the Yugoslav in Paris and has many other identities besides. communist­turned­Serb populist Slobo­ Either, Or – An Error The illustrator, Zohar Lazar, works for the dan MiloŠevič said a Serb had nothing in A rightwing populist like the Dutch poli­ New Yorker, Rolling Stone, GQ , Vanity Fair common with a Croat – not even if they tician Geert Wilders sees heterogeneous and many other publications. He lives in lived in the same building and spoke vir­ identity as a problem. He wants people to New York state.

18 — Bulletin 5 / 2013 Each year anew…

“Excellent!”

For over 35 years our motto has been the same: “No Swiss music talent should be left undiscovered!”

www.sjmw.ch Supported by the Credit Suisse Foundation, Hirschmann Foundation and the Federal Office for Culture. — Identity —

We, the AHV

In other countries, pensioners are referred to as “best agers”; in Switzerland, they are called AHV. In a matter­of­fact way – but affectionately. These three letters stand for more than just social security. By Monika Bütler

My grandmother was widowed with three against average wages, the benefits are institution in all sectors of the population. small children during the war. When she over two and a half times higher than they AHV has been a tremendous success. received a modest AHV retirement pen­ were; they have been augmented by man­ Old­age poverty was practically stamped sion for the first time in 1948, she broke datory occupational benefits insurance out within a relatively short period of down in relief and gratitude. The approx­ and supplementary benefits. time; according to Pro Senectute, only imately 35 francs per month she received Since AHV was introduced, the re­ around 3 to 4 percent of the elderly now from the Old­Age and Survivor’s Insur­ maining life expectancy at the age of 65 has live in poverty. Impressive improvements ance was not considered to be much even increased by around eight years – mostly were made in particular against poverty in at that time, amounting to only seven per­ problem­free years, it should be noted. On widowhood, which is still present even in cent of the average income. Despite sup­ average, the “old folks” are financially countries like the US. The insurance has port from her children, she lived in hum­ much better off than before; they are also not caused any scandals since it was intro­ ble conditions later, too, in a small, dark healthier and feel younger. duced. It works quickly, transparently and apartment lacking proper heating. But But there are also some negative fore­ with decidedly low administrative costs. throughout her life, she remained very casts for the future development of AHV. grateful for her AHV pension. These weigh heavily on the minds of the Three Letters on Wheels 65 years later, the magazine “Schweiz­ Swiss; the Credit Suisse Worry Barometer We are the AHV. The secret of this strong er Illustrierte” featured “Switzerland’s cool­ ranks them in third place. Even those po­ relationship? Almost all residents of Swit­ est pensioner,” the former ski idol Bernhard litical circles which contested any funding zerland contribute to the funding of Russi, born in 1948, the same year as AHV. gap for AHV up until just a few years ago AHV, and almost all will benefit from it There are worlds of difference between my must now admit that a major deficit in the one day. Unlike federal disability insur­ grandmother (who died a frail woman at 66) insurance fund will open up unless coun­ ance, there is no argument over whether and the physically fit, modern pensioner termeasures are introduced. someone is authorized to receive a pen­ Bernhard Russi. The impending funding crisis has sion. Age can be determined beyond a The AHV of 1948 and the AHV of still had no negative impact on the popu­ doubt and at a minimal cost. There is no 2013 are also worlds apart. Measured up larity of AHV. It is firmly anchored as an such thing as “pseudo elderly.”

20 — Bulletin 5 / 2013 Photo: Dougie Wallace / Gallery Stock — Identity —

In an international comparison, AHV hood. Unlike in most other countries, no influence on the amount of pension. It holds a unique position. Gone are the days there is no designated alternative for civ­ is no small feat that high earners are still when the acronym stood for an insurance il servants and other segments of the pop­ suppor ting A HV. policy against old age and the death of the ulation. This keeps the insurance plan breadwinner; it is now a synonym for lean and flexible. Fear of the Gap women aged 64 and older and men aged But AHV has not been unscathed This could change when those already 65 and older. While seniors, “best agers” by special interests. As an example, contributing a lot are asked to contribute or “silver agers” receive discounts in other changes to the retirement age of women even more. Companies already have trou­ countries, in Switzerland, signs at the en­ were made by federal parliamentarians, ble explaining to their top managers from trance to the swimming pool or museum who at that time were exclusively male, overseas why they have to make AHV read simply: “Admission for adults, chil­ mostly middle­aged and married. Reduc­ contributions on their non­pension earn­ dren and AHV...” When the trains fill up ing the retirement age for women from ing income. Of course the voting citizens on nice days, commuters grumble, “The the initial 65 down to 62 was justified not are more concerned about a collapse of AHV is out and about,” likely the world’s only as a means of securing livelihood AHV income – and are thus more recep­ only traveling social security. And be­ (women have lower wages) but also by the tive to the idea – than the negative impact neath the annoyance at these cheerful fact that men and their wives, three years on the country’s competitiveness. As the card­playing seniors, there is probably just younger on average, should be able to be­ late Federal Councilor Tschudi once said, a bit of envy. gin retirement together. “The wealthy don’t need AHV, but AHV There are also disadvantages to needs the wealthy.” No Privileges, No Extras these deep roots in the population. Re­ For me as writer of this article, AHV The fact that a social insurance plan, of all forms are harder to achieve as there is a remains an integral part of the Swiss mod­ things, is such an integral part of Switzer­ tendency to overlook unfavorable demo­ el of success despite all objections, and not land’s self­image cannot be taken for graphic and economic trends. There is only because my grandmother’s gratitude is granted. In a 1931 referendum, an early never a lack of warnings about impending forever etched in my memory. model of an AHV law failed to garner imbalances due to demographic trends; enough votes because of the precarious the Swiss National Bank wrote about an economy, the conservative business com­ “increasingly aging population” back in munity, young people who considered the 1957. Only if AHV succeeds in dealing premiums to be too high, pension funds with the increase in life expectancies will that feared being passed over by the laws, it maintain the support and appreciation and the communists, who considered the of a broad segment of the population. benefits to be too meager. The relationship is put to the test not Interestingly, even in those days the only by financial imbalances but also by “Röstigraben,” the divide between Ger­ an ever narrower focus by each person on man­ and French­speaking Switzerland their own benefits. The Worry Barometer which has now become practically a part shows that in the assessment of state pen­ of our identity, was growing – although sion benefits, there is a major gap between the situation was reversed at the time. the inside and outside perspective. Al­ The 1931 model met with the resistance though 65 percent of those surveyed stat­ not only of the conservative rural cantons ed that they received too little from the but also of the French­ speaking cantons. state, only 39 percent held this opinion of With 24 percent votes in favor, the mod­ others; for 51 percent, the state gave too el received just as little support in Vaud much in general. canton as in Central Switzerland. The fact that there is such a high de­ Exceptional Solidarity gree of identification with AHV might be The solidarity between income groups in related to another part of the Swiss iden­ AHV is enormous and exceptional in an tity – direct democracy. Institutions such international comparison. Many gainful­ as old­age insurance are not simply de­ ly employed people contribute many signed on the drawing board but devel­ times over what they will one day receive oped through the political process. In a in pension benefits; the highest benefits direct democracy, citizens have a “line are only double that of the lowest, cur­ item veto,” so to speak. It is simply not rently a maximum of 2,340 francs per possible to sneak a reform of the old­age month. On an income of 500,000 francs, insurance past voters as part of a larger the AHV contirbution due, including the package. Every citizen is compelled to employer contribution, comes to around deal with the matter. In the case of AHV, 42,000 francs per year. Three quarters of Monika Bütler is an economics professor at what emerged was a simple and clear so­ that – an entire maximum AHV annual the University of St. Gallen with a research focus lution to poverty in old age and widow­ pension in itself – is sheer taxes, and has on social security and the labor market.

Bulletin 5 / 2013 — 21 — Identity —

I want transparency. I want people to see at a glance how and where the bank earns its money.

Credit Suisse Chairman Urs Rohner talks about the Swiss mentality, digitalization of the financial industry and the best Hollywood movie about banks. By Daniel Ammann and Simon Brunner (interview) and Maurice Haas (photography)

22 — Bulletin 5 / 2013 — Identity —

try, so it is comparatively easier to ensure thing else. I also had to learn to lose and quality education, infrastructure and to accept losing. legal certainty here than it is in larger countries with hundreds of millions of Was that difficult? people. Yes. I still remember coming in second in the Swiss Youth Championships. How would you describe the Swiss I was terribly frustrated with myself, mentality? to put it mildly. We have a strong national identity, but, at the same time, we are an international, Sprinters don’t have racquets to smash cosmopolitan country, thanks in part to on the ground. So what did you do to vent? our four official languages. Obviously, we It’s best I don’t answer that. know how to cope with different cultures. This contributes to our success and is You come from a traditional middle-class probably due in part to the fact that the family – your father worked for an insurance Swiss had to venture abroad early on to company – and now you are Chairman of look for work and find markets for their the one of the world’s largest banks. Is this products. typical in Switzerland? Fortunately, social mobility is possible in Is there anything you don’t like about Switzerland. And that’s true in other Switzerland? countries as well. But it’s not all about Sometimes there is a lack of inner gener­ the person; I was also very lucky. osity to give others a second chance. This is a fundamental difference between You joined Credit Suisse in 2004 and Switzerland and the US, for example, became Chairman of the Board in 2011. where it’s considered normal for people to What is your goal for the bank? fail and then work their way back up. I want Credit Suisse to position itself It’s not unusual there to change careers. as one of the world’s leading banks We are not so forgiving and this makes in the sectors in which we do business. people afraid to fail and unwilling to And then I want us to stay there. take risks. Critics found fault with you after the weak How would you describe yourself as quarterly results in the fall, claiming you a person? didn’t have a strategy for the bank. I am inquisitive and open. I’m not easily The quality of a strategic plan can’t be intimidated, and I generally don’t lose measured by the results of a single r. Rohner, what does my cool, even when things get difficult quarter. And the situation was not Switzerland mean to you? or unpleasant. nearly as bad as everyone made it out to Switzerland is my home. be before our competitors released their I was born here, and What do you think has made you who results. Our strategy is long term, and I was happy to come back after several you are? we have been making steady progress Mstints working abroad. To be quite I have a strong basic trust in myself. I since 2011. Talk to our shareholders and honest, as a 20­year­old I never would believe I can do anything I set my mind read the analysts’ reports, and you’ll see have thought it, because I was really to if I try hard enough. I’ve always been that our strategy is understood. Our drawn to going abroad. this way – in school, in sports, at work. ratings also show this. This isn’t neces­ If you really want something, you can sarily because we are doing everything What defines Switzerland? make it happen. right, but because we have clearly Our institutions function very well, and positioned the bank. And because we although we are culturally diverse we still In your early 20s, you won the Swiss high have already implemented a number have an internal cohesion that makes hurdles championship twice. What made of changes that other banks still have Switzerland special and strong. We are you faster than everyone else? ahead of them. home to an impressive number of suc­ Of course, you have to have some talent cessful companies, both large and small. and the right physique. But without Everyone is talking about transformation Switzerland has a low level of govern­ determination and discipline, you will and fundamental changes. To what extent ment debt and we have a financial sector never get to the top. Being involved in is the Credit Suisse of today a different bank we can be proud of – over the last hun­ athletics was good training for life in than it was before the crisis? dred years, this sector has contributed general. It was the first time that I set a We have completely restructured our significantly to our prosperity. In all specific goal for myself, to be the Swiss business model over the last two­and­a­ fairness, we are, of course, a small coun­ champion. I put it above almost every­ half years. We have fundamentally

Bulletin 5 / 2013 — 23 — Identity —

reconfigured the investment bank, scaled the fall was widely reported in terms of it down significantly, and cut costs “store rooms” and “trash cans.” We have a financial sharply. In addition, we have dramati­ I want transparency. I want people to cally cut our risks while massively re­ see at a glance how and where the bank sector we can be proud ducing our balance sheet. We are also earns its money. In contrast to our proceeding apace with the necessary competitors, we are keeping our non­ of – over the last transformation in private banking. If strategic units in their divisions. They hundred years, this there is anything we could be criticized are not being outsourced to a bad bank. for, it would be that we did too much Our aim in this is to ensure that em­ sector has contributed too quickly, all at the same time. Some ployees do not waver in their responsi­ of this was painful for our employees, bility for these units. significantly but it needed to happen. The 2013 Worry Barometer showed that to our prosperity. Given all these cost-cutting measures, the financial sector is trusted more now how does the future look for new bank than it has been in past years. Nonetheless, apprentices at CS? banks have suffered longer-term damage An apprenticeship with us means join­ to their reputations. Why? ing a bank that offers its clients the Since the middle ages, banks have rarely entire range of financial services, giving been popular. When they were managed apprentices an opportunity to gain a well, they were respected. Many things variety of experience here and abroad. went wrong in our industry during the We support our talented employees and last crisis, and there were excesses that take pains to offer them excellent oppor­ shouldn’t be played down. So it’s no tunities at every stage of their career. wonder that the industry is facing a trust One of the reasons we as a company issue. We are confronting it in part have to be efficient and flexible these by focusing on our clients, supplying the days is that we want our employees to economy with loans and capital and have long­term career options with us – playing a constructive role in solving even in the face of a rapidly changing industry­wide problems. As legitimate as financial industry. the criticism might be, the banks weren’t the only ones causing the problem. Why is investment banking more impor- tant to CS than UBS? Who are you thinking of, in particular? I can only speak for CS. We don’t come Politicians have no qualms about imme­ close to conducting every kind of invest­ diately blaming the banks. But we could ment banking business; instead, we are also ask where the enormous public debt focused on the areas where we are came from in the first place. For the strongest, have a good market position most part, it is because public spending and can yield good returns – even under was too high for an extended period today’s much stricter capital require­ of time, while, at the same time, no one ments. But this also means that the was implementing the necessary struc­ current model must continue to develop, tural reforms. I’m thinking here, as we recently announced in the context for example, of labor market reforms of the global interest­rate business. in Western Europe. Our investment banking arm provides services to large corporate clients, When will the national debt crisis end? governments and institutions – in short, In Europe, many banks on the periphery to anyone who borrows money on the have not yet cleaned up a significant capital market or who wants to invest portion of their balance sheets. The in it. And for a bank like CS that serves national debts are still extremely high very affluent and demanding clients and a great many of the necessary around the world, it is a major advan­ reforms have still not been implemented. tage, and in my opinion essential, for us It will therefore be some time before the to also be able to offer them investment Eurozone has truly stabilized. There will banking solutions and products. They probably be no getting around a certain expect this from us. amount of collectivization of the debts in Europe. Politically, this will be hard The division of the bank’s activities into to sell without insisting on reforms at strategic and non-strategic categories in the same time.

24 — Bulletin 5 / 2013 — Lorem Ipsum —

“We have an enviably high level of political and societal stability in Switzerland.” Urs Rohner, 54.

Bulletin N° 5 / 2013 — 25 — Identity —

How do you imagine the future of Is the “too big to fail” issue under control, Swiss banking? from a global perspective? First, we have solutions for, or at least There is still no fully implemented sensible approaches to solving, the standard around the world for the orderly major issues of the past few years – in­ restructuring or resolution of an inter­ cluding the tax issue – even though we national, systemically important bank. have yet to endure all the consequences. I said five years ago that this is the As for the future, the Swiss financial ultimate litmus test for the system’s center can offer a very good package. stability. It must be possible to remove We have an enviably high level of such banks from the system without the political and social stability in Switzer­ system itself experiencing problems. land, a generally high level of poli tical dependability for the solutions that Is that actually the case yet anywhere? are found, a functioning legal system, The US authorities have clear regulations high quality of service, and a stable and can restructure or liquidate systemical­ currency. In addition, there is still a ly important banks. Switzerland was also great deal of insecurity in other mar­ quick to develop very good and powerful kets. People want to diversify their regulations. This entails high capital risk and not keep all their money in requirements, including convertible equity one economic area. capital or CoCos [editor’s note: contingent convertibles]. Moreover, the regulator has Where are the dangers? the legal option of forcibly converting If we can continue to offer our cross­ borrowed capital to equity capital in a true border private banking business in the crisis situation, which massively increases future, capital will continue to flow the loss­absorbing capital (to more than into Switzerland. Business booked in 100 billion francs in the case of CS). And Switzerland is threatened, however, the banks must have a plausible recovery by European rules like the MiFID II and resolution plan should it be necessary. financial services directive. This could We are in continual contact with the Swiss impede our access to the single Euro­ Financial Market Supervisory Authority pean market, which should be avoided (FINMA) concerning this matter, with at all costs. regard to equity capital and liquidity, as well as about the group’s legal entities and A couple of years ago, you were still hoping organizational structure. the financial crisis would become an opportunity to coordinate new regulations Will the Swiss financial center continue internationally to create a global level to consolidate? playing field, i.e. so that all countries have Presumably, especially in areas where the same conditions. Swiss banks have traditionally been strong, This has not yet come to pass, unfortu­ such as wealth management. Costs nately. There is a tendency for regulatory for compliance and IT will continue to approaches to diverge on the national skyrocket due to international regula­ level, with many countries erecting their tions. It could be very difficult for small own hurdles. and medium­sized institutions to ab­ sorb these cost increases, which would In order to protect their own financial accelerate the consolidation process. centers? You have to remember that all this Let’s be honest here: At the end of the is happening in an environment where day, the regulatory authorities do not margins for this business have declined At the end of the day, really trust each other to handle another significantly in the last five years. crisis. That’s why the US authorities, for the regulatory example, require major foreign banks to Do you see this as an opportunity? combine their local activities into It is not part of our strategy to play authorities do not intermediary holding companies that are a major role in the consolidation of the subject to their regulations regarding Swiss market. really trust capital ratio and credit limits. This is an each other to handle attempt to ensure that the institutions How much longer will Switzerland have have enough capital available locally in two major banks? another crisis. case something goes wrong. For a long time, I hope.

26 — Bulletin 5 / 2013 — Identity —

Ten years? this way. And there is a young generation There will probably I have no doubt of that, for several of digitally savvy corporate clients, some reasons. Both banks are well positioned of whom earn their money in this field. be no getting around in their business areas. The banks can So you have to ask yourself what kind of a certain amount continue to operate successfully in these services do these clients want from a areas in the future, if they approach private bank and what services are they of collectivization of them with discipline and if the regulatory are willing to pay consulting fees and environment remains predictable and commissions for. And in general, which the debts in Europe. isn’t constantly changing. services can we successfully offer in a society that is increasingly moving toward Interestingly, according to the latest Worry complete transparency of information? Barometer, 78 percent of the Swiss people surveyed said that protecting bank client What do you think? confidentiality was important or very Innovations like digitizing private bank­ important. ing are already happening, presenting I agree. The question is what exactly enormous potential for banks and their this means. Banking laws stipulate that clients. Clients want round­the­clock, bank employees must maintain con­ worldwide access to market data and their fidentiality about their clients, just portfolios, no matter where their assets as doctors and lawyers must. This is a are booked. They want to be able to test question of the individual right to their own portfolios for any variation of privacy, and I am fully in agreement risks. And the know­how that the bank with this. But banking confidentiality has can be shared with clients even better shouldn’t protect tax evaders. now. Ultimately, digitization will allow us to make the bank an ongoing point of Will general information exchange be contact for clients that is as dynamic a reality in five years? as the client is. This is a pretty big step. I’m not going to speculate about time lines. But I assume that some form of You once said: “I just love the movies. automatic information exchange will I can imagine doing nothing but producing become the global standard. Eventually, films or writing scripts when I’m 50.” Switzerland will not be able to avoid it. You are now 54. I’ve put it off until 70, but it’s still my How are you dealing with this? dream. Sometimes you need dreams that Two things are important to me. Because you keep putting off because whatever of Switzerland’s special situation, we must you’re working on at the moment is so ensure that clients from countries with interesting and exciting. which Switzerland has agreed automatic information exchange have the option of What is the best Hollywood film about first resolving their legacy issues through banking? amnesties or voluntary self­disclosure I think Margin Call is really very good. without incurring penalties. Second, we J. C. Chandor, the film’s writer and must ensure that we have non­discrimi­ director, is definitely critical, but he natory market access in these countries. doesn’t succumb to clichés. It is easy for foreign banks to offer bank­ ing services in Switzerland. It would What would you like to write a screen- be unacceptable if this were not the case play about? in the opposite direction. I think that I’ll tell you when I’m 70. One thing is our politicians will have to drive a hard certain: It won’t be about the financial bargain and demand reciprocity. industry.

Drive a very hard bargain? A hard bargain is enough. Urs Rohner, 54, is the Chairman of the Board What other major challenges will the bank of Directors of Credit Suisse Group. Previously he face in the coming years? was the CEO of the ProSiebenSat.1 media group and a partner in the law firm of Lenz & Staehelin. My children no longer go to their neigh­ Urs Rohner is a father of four and lives in Küsnacht. borhood branches. They want to take care of everything online. A lot of people feel This interview was conducted on October 30, 2013.

Bulletin 5 / 2013 — 27 — Identity —

CLAIRE GADROIT, CROSS-BORDER COMMUTER: “I have never felt excluded because I am French. Here, the labor market transcends borders.”

28 — Bulletin 5 / 2013 — Identity —

Innovation! Openness! Creativity! The Lake Geneva region has come a long way and continues to change at lightning speed. This has led to a certain euphoria in the Arc lémanique along Lake Geneva – as well as to uncertainty. By Yves Genier (article) and Dan Cermak (photos)

Le Boom!

Bulletin 5 / 2013 — 29 — Identity —

he desire to create, achieve The region seems to be on the upswing The region’s economic boom has spread and advance can be felt ev­ after experiencing a “lost decade” be­ throughout all of Switzerland and has erywhere on the 4th floor tween 1990 and 2000 when the area was been witnessed by Laurent Miéville, head of Building B located in the struck hard by the bursting of the real of technology transfer at the University of Quartier de l’Innovation at estate bubble in 1991. Thanks to an im­ Geneva. “The EPFL has swung the gates the Eidgenössische Technische Hoch­ pressive dash to catch up, the income per wide open. Now it is being followed by schule Lausanne (Swiss Federal Institute capita in the Lake Geneva region closed other universities that also heavily nur­ ofT Technology in Lausanne) or EPFL. It the gap on the national average last year. ture and promote innovation.” has a clear view of the new, almost identi­ If this development continues, the region This will for openness was especial­ cal buildings that look like white dice will increasingly prove to be the econom­ ly supported by formative experiences with black reflective windows, behind gained in the US. “Like many other re­ which start­ups are busy turning great searchers, I went to the US to get away ideas into robust business models. Nico­ from a certain frustration that I experi­ las Durand is in good company; his infi­ enced during my student days – a frustra­ nite optimism fits in perfectly here. He tion concerning the hesitant attitude to­ and his company Abionic want to revolu­ ward technology transfer,” explains tionize how medication samples are test­ The economic boom in numbers physicist Miéville. Will this make the ed and simplify procedures used in medi­ area around the EPFL a kind of “Swiss cal labs. Increase in number Silicon Valley,” using its California tem­ “If you think about all the risks be­ plate as an example? fore making the initial decision to take of employed from Well, maybe a little. “When we re­ the plunge, then you won’t do it. The 2000 to 2013: 26 percent turned to Switzerland, we adopted the power of young entrepreneurs lies pre­ best methods from the other side of the cisely in their inexperience because it (Switzerland: 17 percent) Atlantic. We are giving creativity free keeps doubts about the future at bay,” ex­ rein and have become more open toward plains Durand. After finishing his PhD Lake Geneva region chaotic competition than is often the case in nanotechnology at EPFL, Durand, a in the German part of Switzerland,” em­ native of Lausanne, and his partner took phasized Miéville. that plunge. Abionic was founded in 2010. To­ 4 5 The Arc Knows No Borders 3 day, the company has twelve employees. 6 The region has many additional benefits 2 Although the product has not yet been that Jean­Luc Rochat, who heads Credit fully developed, there is no lack of sup­ Suisse in western Switzerland, describes port. Private investors and specialized 1 as follows: “Thanks to its beautiful sur­ funds have poured money into the com­ roundings, this region offers not only a pany. “It was not easy to convince them,” high quality of life, but also a greater adds Durand, “but their investment is openness toward newcomers. EPFL, the proof of the dynamic momentum this re­ 1 Geneva, 2 Nyon, 3 Rolle, multinational corporations and sports or­ gion is experiencing and which arose 4 Denens, 5 Lausanne, 6 Montreux ganizations attract a great deal of talent to thanks to the close interaction between the Lake Geneva region.” universities and innovative companies.” In fact, the western tip of Switzer­ Durand’s motivation to advance and land has not only its ability to attract in­ evolve reflects that of the entire region. novation to thank for its success, but also For ten years, the area around Lake Ge­ its capacity to integrate foreign workers, neva, known locally as the Arc lémanique, who mainly come from Portugal, France, has been a hotbed of growth, with key ic engine that drives the entire country. Italy, Spain and England. The Canton of economic indicators regularly exceeding This could result in a drop in its unem­ Geneva has the highest percentage of for­ the country’s average. The population has ployment rate, which is still chronically eigners in the country at 41 percent, which exceeded one million and is increasing by above the national average of 3 percent, is far higher than the national average of almost 15,000 people per year. GDP with Geneva’s rate at 5.5 percent and the 23 percent, and it is noticeable. growth here regularly exceeds the rest of canton of Vaud at 4.9 percent. “I really had no problem integrating Switzerland, as does the increase in em­ into the Swiss business world. I have nev­ ployment figures (26% compared to 17% Switzerland’s Answer to Silicon Valley er felt excluded because I am French. Here for 2000–2013). The region is blessed Without a doubt, Nicolas Durand is one in the Arc lémanique the labor market with diverse business sectors, including of the driving forces behind the boom, as transcends national borders. People com­ real estate, export and financial services. is EPFL as a whole. The impressive devel­ mute to work here from everywhere from The settling of multinational corporations opment of the university during the last Lausanne to Lyon,” says event and com­ in the area and aggressive pricing policies 30 years has produced a massive wave of munications specialist Claire Gadroit. have accelerated growth even more. creativity and a willingness to take risks. She is a cross­border commuter: Every

30 — Bulletin 5 / 2013 Map: Crafft — Identity —

NICOLAS DURAND, ABIONIC COMPANY: “It is precisely the relative inexperience of a young entrepreneur that keeps doubts about the future at bay.”

Bulletin 5 / 2013 — 31 — Identity —

BERNARD PEREY, MAYOR: “We cannot expand because there is a shortage of buildable land.”

day she drives 45 minutes from her home Lake Geneva and on the slopes of the other. Today, on the other hand, we know in Annecy, France to her office in Geneva Savoy Chablais, the foothills of the Alps. almost nothing about many of the people and back. who live here. Of course, I certainly un­ Although there are no language bar­ Development, Yes, but Controlled derstand that after a long day at work, riers between France and its French Swiss Over the past 30 years, the number of in­ people don’t feel like having an active so­ neighbor, there are considerable cultural habitants has doubled to over 672 with cial life.” Nevertheless, the village has a differences. “The Swiss take responsibili­ many of the newcomers from abroad, busy town council which organizes events ties and general lateness more seriously mainly from English­speaking countries. to bring the community together. For ex­ than the French. When it comes to per­ The freeway is just a five­minute drive ample, it has held a scarecrow competition sonal relationships, the Swiss are very away, the train station has good connec­ every three years since 1995. “But usually courteous and formal, whereas some tions and the regional headquarters of the same 40 to 50 residents take part every French feel that the Swiss tend to be many multinational corporations are only time,” admits the mayor. The village of stuffy,” adds Claire Gadroit. a stone’s throw away. The village there­ Denens wants to continue to grow. How­ It is not only the cities that are de­ fore has much to offer. ever, it also wants to maintain control, and veloping new identities. The village of But does it want this? “We are not a that, to a certain extent, is happening nat­ Denens, located north of Morges, was a bedroom community yet, but we are well urally: “We cannot expand anymore quiet farming and wine­growing commu­ on our way,” says Mayor Bernard Perey nity well into the ’70s. Then the first man­ with a touch of nostalgia. “When I was a sions were built on the southern banks of child, everyone in the village knew each Read more on page 36.

32 — Bulletin 5 / 2013 — Identity —

LAURENT MIÉVILLE, UNIVERSITY OF GENEVA: “When it comes to chaotic competition, especially, we are more tolerant than our German Swiss neighbors.”

Bulletin 5 / 2013 — 33 — Identity —

PHILIPPE GUMY, CHAMBER OF INDUSTRY AND COMMERCE: “A commute of less than an hour has become a luxury in Switzerland nowadays.”

34 — Bulletin 5 / 2013 — Identity —

ANNE-CATHERINE POZZA, CONSULTANT: “We are heading toward new values that consist of a fruitful uncertainty.”

Bulletin 5 / 2013 — 35 — Identity —

because there is a shortage of buildable First, he commuted for ten years to Bern, land,” explains Perey. “The growth plan which meant more than an hour from his The economic boom in numbers for the region shows an increase in the home in the Romont region to work. Then population density around Morges. Most he had a one­and­a­half hour commute to Annual of the new housing developments and jobs Geneva for three years. His current com­ are going to be there – outside of Denens.” mute to Lausanne is now a half hour population growth: Perey is not unhappy about this. shorter. “Commuting is part of my daily + 15,000 life, it comes with the job.” Obstacles to Growth Housing is in notoriously short supply, It’s Not Where You’re from that Counts even if the housing market has relaxed a Commuting has become a lifestyle, an in­ bit over the last year. The inventory of tegral component of our culture. Among available housing in the region is at an the French Swiss alone, 77,000 commut­ all­time low, with 0.36 percent in Geneva ers traveled daily from one canton to an­ says the Geneva native, although she en­ and 0.61 percent in the Canton of Vaud. other to get to work in 2010, almost twice thusiastically adds, “Today, we are head­ In June 2013, there were only 804 apart­ as many as twenty years ago. In addition, ing toward new values that consist of ments available for sale or rent in Geneva, there are the 90,000 cross­border com­ fruitful uncertainty, intense cooperation Switzerland’s westernmost city, which of muters as well as ten thousand commut­ and a sharpened awareness of how impor­ course drives the prices up. Rolle, a ers who travel longer distances without tant openness, transparency and citizen charming market town between the lake crossing canton borders. initiatives are.” and the area’s wine­growing region, has “A commute of less than an hour has Since the beginning of the millen­ experienced a population boom in the last become a luxury in Switzerland nowa­ nium, the French Swiss have embarked on days,” says Gumy, who lives in Fribourg an adventure, which most of them do not and compares his situation to that in me­ regret. The economic boom which started tropolises like Paris or London. “There, in the Geneva canton has benefited many. travel times are considerably longer and The desire to create, to achieve and to ad­ the means of transport not as comfort­ vance is spreading. The economic boom in numbers able.” One drawback to this professional mobility, however, is that the feeling of belonging to a canton has been somewhat Available housing: lost. Every fourth resident of Fribourg 0.36 percent Geneva works in a different canton, while every third wage earner in Geneva lives outside 0.61 percent Vaud the canton. Almost 200,000 Swiss live in France, many in the French suburbs of Geneva. As Gumy comments, almost no one cares where their colleagues live or come from.

New Times, Old Fears few years. There, a four­room apartment Not only is the feeling of belonging some­ often sells for one million Swiss francs. where getting lost in the shuffle, society’s “I got stuck in traffic,” is one of the traditional structures are under growing most popular excuses for being late. pressure from globalization and more in­ However, in the Arc lémanique, it is usu­ tense communication. “Companies that ally true. Traffic jams here are a daily ­oc still operate based on old hierarchies are currence during the week and are being having difficulties; due to lack of flexibil­ seen increasingly on the weekends too. ity, they are becoming outdated and have Traffic heading to the big cities is as reached their limits,” explains Anne­ jammed as the trains – one of the uncom­ Catherine Pozza, who works in Geneva as fortable results of the economic boom. a management coach. The number of cars on the road is increas­ While such developments appeal to ing each year. Currently, there are already freedom­loving, creative innovation driv­ 100,000 vehicles traveling between the ers, it irritates others who are settled in western Swiss cities of Geneva and Lau­ their comfort zones and are losing their Yves Genier is a journalist with the weekly sanne daily. point of reference. “The casualty of this magazine L’Hebdo. Photographer Dan Cermak lives in Zurich. Philippe Gumy from the Vaud movement in which collective action plays Chamber of Industry and Commerce has an important role is the individualism Source of “The Boom in Numbers”: been a commuter since he began working. that prevailed during the last decade,” Swiss Federal Statistical Office

36 — Bulletin 5 / 2013 Women are ­particularly concerned about their safety.

The militia system has gained importance.

The entirefor downloadsurvey is available at:

www.credit-suisse.com/worrybarometer

2013 Credit Suisse Worry Barometer

What concerns the Swiss? What is important to them? The traditional survey, first conducted in 1976, on Swiss people’s worries and their identification with their country. Plus: interviews with the future President of the National Council, Ruedi Lustenberger, and the President of the Confederation of Swiss Employers, Valentin Vogt. 2013 Credit Suisse Worry Barometer

Concerns: What Worries the Swiss High Marks in Good Times The majority of the Swiss population characterizes their own ­economic situation as good; over three-quarters are optimistic about economic trends within the country. Unemployment remains the greatest concern but has fallen to its lowest level since 2000.

long-term analysis of the Credit ous negative record of 5.2 percent in 1997. employment was exactly 3 percent and Suisse Worry Barometer docu- This had an immediate effect on the Wor- was significantly lower than the Euro- ments the close relationship be- ry Barometer, increasing it once again to pean average of 10.9 percent. For that A tween the unemployment rate 81 percent. The previously third-highest reason, not even half of the Swiss voters and the traditionally greatest concern value of 76 percent in 2010 is probably at- consider being jobless to be among their about unemployment, with a record of tributable – with a bit of a delay – to an- five main concerns, even if unemploy- 89 percent in 1993. This was a direct con- other increase in unemployment as a result ment has remained right at the top of the sequence of the fact that the unemploy- of the financial crisis. Worry Barometer for 11 years in a row. ment rate had climbed to 4.5 percent The economic situation has stabi- In 2013, it was 44 percent (–5 percentage within a short period of time, hitting its lized since then. Switzerland’s unem- points) (see fig. 1), the lowest since 2000. highest level since 1936. The population ployment has stayed below 3 percent on Revealing differences can be ob- had barely gotten used to this difficult sit- average over the past two years; at the served within the population groups. On uation when unemployment hit its previ- time of the Worry Barometer survey, un- the topic of unemployment, the gap

The survey: On behalf of and in cooperation with Credit Suisse, the research institute gfs.bern conducted a representative survey of 1009 eligible voters in Switzerland from July 30 to August 25, 2013. The statistical sampling error was ±3.2 percent. The scientific analysis in the two studies “Mixed worry balance – personal economic concerns overtake macro-economic misgivings” (Credit Suisse Worry Barometer 2013) and “Swissness with language-region accents” (Credit Suisse Identity Barometer 2013) was performed by a project team that included Claude Longchamp, Lukas Golder, Martina Imfeld, Cindy Beer, Stephan Tschöpe, Philippe Rochat, Carole Gauch and Johanna Lea Schwab.

The analyses for the Bulletin were prepared by Andreas Schiendorfer (schi).

38 — Bulletin 5 / 2013 Illustration on previous page: Jörn Kaspuhl 2013 Credit Suisse Worry Barometer

Fig. 1: Key concerns of people in Switzerland “Out of all of the cards, please choose those five that you personally

consider to be Switzerland’s five most significant problems.”

Unemployment, AHV and health care have become less threatening, wage worries have increased.

As a percentage of voters; prior-year comparison in percentage points in parentheses 50

44% (–5) Unemployment The three main worries in their development over time 60 50 44% Unemployment 40 37% Immigrants 30 29% Retirement 20 provision/AHV 37% (+0) 10 0 40 Immigrants 2004 2008 2010 2013

29% (–7) Retirement provision/AHV 25 30 20 19%

15

10

5

0 2009 2010 2011 2012 2013 Energy issues have grown in significance.

20

16% (–2) 16% (–4) 10 24% 21% 28% (+3) 19% 14% 13% (–4) (+2) 18% 21% (+3) (+4) (+4) (+1) (–9) 15% (–7) 13% 19% (+4) (+6)

Asylum issues Personal safety Health care Social security issues Energy Wages New poverty integration European protection Environmental crisis Euro Alcohol/drugs Inflation issues Traffic 0

Photo: Jean-Christophe Bott / Keystone; graphics: Crafft Bulletin 5 / 2013 — 39 2013 Credit Suisse Worry Barometer

represented by the “Röstigraben,” the At 29 percent, retirement provisions are tions about European integration (16 per­ imaginary border between German- and still ranked third (–7 pp) today; however, cent, –4 pp). The same holds true – at least French-speaking Switzerland, narrowed the values have been declining since in comparison to 2011 – for concerns by 14 percentage points compared to last 2003. Despite this, at 37 percent, retire- about the financial (11 percent, –19 pp) year, although this concern still ranks sig- ment provisions are practically even with and economic crises (10 percent, –25 pp). nificantly higher among Western Swiss unemployment at the top of the concerns Discussions about future power supply (52 percent) than German-speaking Swiss about the future. pursuant to the resolution to withdraw (40 percent); these figures tend to be even Health care was also one of the top from nuclear energy and the yet unan- higher in Ticino. While the results for three concerns of the Swiss for years. The swered question about the permanent women (47 percent) and men (41 percent) first time this was not the case was in storage of radioactive waste material are relatively close, there is a clear urban- 2011, when concerns about health insur- have directed the public’s focus to energy rural divide between the major cities (49 ance plans and premiums dropped to issues – also bringing them into the percent), the medium-sized conurbations fifth place. In 2013, it is ranked sixth at Worry Barometer, but only to a limited (41 percent) and the rural regions (37 per- 21 percent (–9 pp). This could be attribut- extent (19 percent, +3 pp). A closely re- cent). Divided by political orientation or able to success in steadily curbing growth lated topic is the somewhat less empha- party affiliation, unemployment as a con- in premiums since 2002, with the excep- sized problem of environmental protec- cern is more widespread among the Swiss tion of 2010. However, considering the tion (16 percent, –2 pp). People’s Party voters with 52 percent than In contrast, concerns about wages in the political center (Christian Demo- have increased more significantly (19 per- cratic People’s Party: 33 percent) and the Wage issues have cent, +6 pp). It is possible that this is re- left (Social Democratic Party: 42 percent). ­become significantly lated to the debate surrounding manager If the eligible voters were asked to salaries which voters had to address in choose a single concern rather than their more important. two public votes this year. The “new pov- top five – as in the main survey – unem- ­Nineteen percent erty” remained stable (18 percent, +1 pp) ployment would still remain at the top in the last survey, at around ten percent- with 12 percent. And even in choosing ­(+6 pp) characterize age points below the values of 2001 the five main concerns for the future, un- thems a a main concern. through 2008. But looking to the future, employment has been mentioned more new poverty is being taken quite seriously frequently than all other topics since at 25 percent. 2008, although at 38 percent, the current An increase can be seen in the drug value is lower than in previous years. most important political challenges of problem (14 percent, +4 pp), which could today (see fig. 5), it becomes clear that be related to the newly fashionable binge Immigration Issues Remain Current high health care costs have not com- drinking phenomenon. Switzerland is far As in 2012, foreigners immigrating to pletely disappeared from the popula- away from the peak values seen in the Switzerland (free movement of persons) tion’s radar. nineties (76 percent in 1994). and the related integration challenges In contrast, the equality of women rank second of the main concerns, High Need for Security and men (5 percent, +0 pp) and education ­unchanged at 37 percentage points. At 28 Among other things, the equalization of (6 percent, +0 pp) are not seen as signifi- percent (-4 pp), asylum issues are ranked the former main concerns has also had in fourth place, like last year. ­Following a an effect on the areas of both personal continuous increase, the current slight de- safety (ranked fifth with 24 percent, +3 pp) cline does not correspond to the ever- and social security (ranked seventh with growing number of asylum seekers. No 21 percent, +2 pp). Both topics have in- major differences between language re- creasingly become key concerns in the gions can be observed for these two prob- new millennium. Predominantly women lem areas. Western Swiss, however, rate and retirement-age men are concerned the immigration issues four percentage about their personal safety. Social secu- points more pressing than the German- rity – or, in other words, securing social The future of the Swiss economy is viewed as speaking Swiss. According to one-third of institutions – is increasingly perceived positive. Good times for the export business? the voters, immigration and asylum issues by middle-age voters as a problem. More will still be among the country’s main than a quarter of those surveyed fear that problems in ten years’ time. personal safety and social security will cant problems by most of those surveyed. Retirement provisions under the continue to be a main concern in ten Education is seen more as an opportunity three-pillar system have been among the years’ time. than as a problem. Of those surveyed, top three main concerns of the Swiss for There have been some shifts within 96 percent view the advancement of educa- over ten years, whether because of uncer- the top ten concerns. Questions about tion as a key political goal (see fig. 5). tainty pertaining to the long-term fund- Europe, which were still very significant Awareness of a problem is associ- ing of AHV, or due to open issues regard- in 2012, have seen a marked decline: the ated with an assessment of the economic ing the funding ratio of pension funds. euro crisis (15 percent, –7 pp) and ques- situation, which can currently be

40 — Bulletin 5 / 2013 Photo: Steffen Schmidt / Keystone 2013 Credit Suisse Worry Barometer

Fig. 2: The individual and general economic situation “How would you describe your personal economic situation and the overall ­economy, and how will they change over the next 12 months?”

A great deal of optimism: Both the personal and the general situation are assessed positively.

Future Personal Economic Situation

Current Personal Economic Situation 68% 90% (–6) The respondents 56% 48% are optimistic: nine Most of those (–3) out of ten believe surveyed that their situation characterize their 36% will remain stable personal economic (+2) or will improve. situation as good or very good. 22% (+4)

8% 6% 6% 4% (+0) (+1) (+1) 1% 1% (+1) (–1) (–1)

Very good Good Fair Poor Very No Better Same Worse No poor ­response ­response

Current State of the Future General Economic Overall Economy Situation 56% 57% (+2) (+7) 72% 78% Almost More than three-quarters of three-quarters of the voters find those surveyed that Switzerland is 25% express optimism about the country’s doing at least (–2) as well as it was economic 21% last year. 16% development. (+0) 15% (–2) (–7) 3% 7% (+2) (+0)

Better Same Worse No Better Same Worse No ­response ­response

As a percentage of voters; prior-year comparison in percentage points in parentheses

Bulletin 5 / 2013 — 41 2013 Credit Suisse Worry Barometer

Fig. 3: Who the Swiss trust “Do you personally trust these institutions?”

The trust of the Swiss in the country’s 100 80 74%

key actors has increased dramatically and 60 is higher than ever. 40 20 2009 2010 2011 2012 2013

For years, trust in the Federal As a percentage of voters; prior-year comparison in percentage points in parentheses Supreme Court has been strong (picture of the Supreme Court building in Lausanne).

1. Federal Supreme Court 74% (+10)

2. Police 73% (+4)

3. Radio 72% (+22)

4. Federal Council 71% (+10)

4. T elevision 71% (+20) 68% 6. National Council 67% (+7) Trust in the government and in parliament (average of Federal Council, National 7. E mployee organizations 66% (+16) Council and Council of States = 68 percent) is at a record high; in 2011, this 8. 65% (+5) Council of States figure was only 55 percent. It is unlikely that the 9. Paid newspapers 63% (+22) political leadership in any other country in the world enjoys a similar level of 9. A rmy 63% (+18) trust.

9. Banks 63% (+15)

12. Public administration 59% (+10)

13. Free newspapers 58% (+23)

14. E mployer organizations 54% (+15)

15. Churches 51% (+10) 60 48% 50 15. Political parties 51% (+17) 40 17. Internet 48% (+19) 30

18. E uropean Union 37% (+18) 20 2009 2010 2011 2012 2013 Despite an increase, information from the internet is trusted less than information from the radio, television or newspapers.

42 — Bulletin 5 / 2013 Photos: Stephan Engler / RDB; bjdlzx / Getty Images 2013 Credit Suisse Worry Barometer

­described as positive/stable (see fig. 2). Of Fig. 4: Are the political and business communities acting appropriately? those surveyed, 56 percent rate their own “Do you have a sense that the policies of the government and the admini­ economic situation as good or very good, stration and/or the business community fail in crucial situations?” only slightly fewer than last year (-3 pp). High marks for politics and This assessment is dependent on income, Politics but even among Swiss with monthly the business community. wages of less than 3,000 francs, 31 per- cent rate their situation as good or very 63% good; for those earning up to 5,000 Swiss More Swiss than francs, it is 46 percent. ever before think that On a very positive note, overall, politics never or very seldom fails. voters view the future with optimism – In 2005, it was only over one-fifth of them, more than ever 38 percent. before, believe that things will be better Business for them in the future. Only 6 percent fear that things will get worse. More than half of the population 53%

(56 percent, +2 pp) rates the current eco- More than half of those 53% 48% surveyed express (–1) nomic situation in Switzerland the same (+0) confidence in the as last year, 25 percent (–2 pp) report that business community; things have gotten worse, 16 percent 40% the figure reached its (–4) highest point in 2000 (–2 pp) that things have improved. The (66 percent). view of the future is even a little bit more 31% optimistic than it was a year ago. Only (–4) 15 percent (–7 pp) fear that things will worsen, 57 percent (+7 pp) assume that the status quo will be maintained at a 10% good level, and a stable 21 percent believe 7% (+5) 5% (+1) 6% that things will improve. (+3) (+0)

More Trust in Media In the assessment of the most important Often Rarely Never Don’t Often Rarely Never Don’t decision-makers, politics fares better know know than ever. Of those surveyed, 63 percent (+4 pp) state that the political commu- nity never or only seldom fails in pivotal Fig. 5: The most important political tasks of today situations (see fig. 4). Even for the econ- “Is it important to you that the political goals mentioned above are achieved?” omy, over half of those surveyed believe ­Securing that it only seldom or never fails (53 per- OASI/Federal cent, +3 pp). The positive mood leads to Switzerland redefines itself Disability Insurance was right an exceptionally high level of trust in all as an education nation. at the top in eight key institutions and actors, which have out of the last added at least four – and on average an ten years. impressive twelve – percentage points 1. Promoting education 96%(+2) compared to last year (see fig. 3). The me- dia has benefited most, although the 2. Securing OASI/FDI 94% (–1) Federal Supreme Court and the police still ranked highest as in most recent 3. Jobs for all young people 92% (–1) years (see special analysis on page 51). (schi) 4. Funding health care 90% (+12) 5. Facilitating economic growth 89% (–1) 6. R educing greenhouse gas emissions 82% (+1) 6. Balancing family and career 82% (+1) 8. R egulating financial markets 75% (–1)

As a percentage of voters; cumulative “very and somewhat important”; prior-year comparison in percentage points in parentheses

Bulletin 5 / 2013 — 43 2013 Credit Suisse Worry Barometer

The Voice of the Economy “We depend on immigration”

Valentin Vogt, entrepreneur and president of the Confederation of Swiss Employers, talks about the future of Switzerland as a financial center, some upcoming votes and the dual education system. Interview: Michael Krobath

According to the Worry Barometer, Swiss people are most concerned about unemployment, immigration issues and Old Age and Survivors’ Insurance. What do you think are the most important issues? Voters have a good sense of things. The Confederation of Swiss Employers is concerned with ensuring retirement provi- sion and maintaining the free movement of persons. In addition, our labor market is threatened by unnecessary regulations and a tendency to compartmentalize.

Several votes relating to the labor market are coming up. Will we decide next year about the future of Switzer­ land as an economic center? “In practice, immigration initiatives do not work.” Border near Rheinfelden. Switzerland is the most competitive country in the world today. We have created about 500,000 jobs in our ­country in the last 10 years. The un­ employment rate is only 3 percent, and in any other country – is integrated into – ­especially important – our youth working life. In addition, we work more unemployment is low. Votes mass immi- than anyone else in Europe: 41.9 hours 37% gration, a minimum wage and the per week. The second factor is our very More than one-third inheritance tax are putting our system well-trained employees at every level. of those surveyed to the test; this worries me. We have Our dual educational system is certainly as part of the Worry Barometer feel to raise general awareness of Switzer- the key to this. Third is our openness that the free move- land’s success. towards the rest of the world, where we ment of persons earn one out of every two francs. And and the integration of What is it based on? foreigners are a m­ ajor fourth, 20 percent of the gross domestic problem for Switzer- Primarily on a liberal labor market. product comes from industry, and we land. This figure stood 82 percent of the population between remain one of the world’s most industri- at 18 percent in 2003. 15 and 64 years of age – more than alized countries. This provides stability

44 — Bulletin 5 / 2013 Photo: Martin Rütschi / Keystone 2013 Credit Suisse Worry Barometer

and is part of the reason we came has lessened significantly in recent years. What is your assessment of the future through the financial crisis so well. This problem has been solved with new of Switzerland as a financial center? hires. As for employment relationships I think that the financial center will Why is the Confederation of Swiss that have evolved over time, we have continue to change. The “clean money Employers such a champion of the free to continue to follow the path we have strategy” is the strategy of the future, movement of persons? chosen. Tools such as the pay parity dialog and it will become necessary to win over As our population continues to age, have been created to help enterprises customers through performance and and with predicted immigration of about recognize whether they are providing quality. Along with increasing regula- 40,000 people per year, we will have a equal pay for equal work. tion, this will lead to cost pressure, and shortage of about 400,000 workers in additional job cuts in the financial 2030. This major gap between the popu- services sector will be necessary. But I’m lation size and economic performance is “We have to raise certain that the path we are on is the right the price we pay for our success. What- awareness one, and it’s promising. Switzerland’s ever internal efforts we might make, banks are competitive and do not have Switzerland will always be dependent of ­Switzerland’s to hide from anyone. on immigration. The initiative against success story.”­ mass immigration and the Ecopop Which industries do you think will see Valentin Vogt group’s initiative, in contrast, boil down job growth? to planned-economy quota-setting Those whose key markets benefit from and don’t work in practice. In addition, megatrends such as healthcare, energy, the immigration initiatives threaten Concerns about pay and the new urbanization, water and aging; that is, the bilateral path that helped Switzerland poverty have grown, according to pharmaceutical, life science, engineering, weather the crisis successfully. surveys. Are fewer and fewer people in and technology companies. The world’s Switzerland experiencing prosperity? growing prosperity gives the luxury goods Do you understand why immigration is The statistics indicate otherwise. Accord- and finance industries a push. Switzerland an increasing cause for concern ing to the Gini coefficient (a statistical is very well positioned for the future. We among the people, despite these measure representing income inequality) are in excellent shape compared to other economic arguments? wages are distributed more equally in countries. But we tend to forget that. The current debate reminds me of the fear Switzerland than anywhere else. And the of domination by foreign influences in the phenomenon of the working poor is early 1970s. Some very similar arguments on the decline here. In contrast, our cost are being used to place the blame for a of living and our demands are increasing. large share of our problems on the free I know families who spend more money movement of persons. Immigrants come on communication than on food. to Switzerland for various reasons. For ­Economic considerations mean that we example, 7,000 of the 73,000 people who should focus less on increasing wages and immigrated last year came to our country more on how we can lower living costs in through marriage. That has absolutely our country. There is still work to be done nothing to do with the free movement in this regard. Switzerland’s domestic of persons. But we do need to take certain economy is significantly less productive problems seriously, such as cultural than its export economy. differences with foreign bosses. I think it’s important for business to throw light Swiss people tend to regard education on this and do everything possible as one of the country’s greatest to keep immigration as low as possible. strengths. Is this for good reason? The dual educational system is without What steps do you recommend? doubt a major success, but social pressure We should more fully utilize the u­ ntapped threatens to water it down to a high- potential for skilled workers who are already school type of education. We need Valentin Vogt has been president of the Confederation of Swiss in Switzerland. The culture of continuing to reforms in primary school as well. Teach- Employers since 2011 and is a work as an older person is com­pletely under- ing of the STEM disciplines (science, member of the executive committee developed. In addition, women are a large, technology, engineering and math) must of Economiesuisse­ (the Swiss Business Federation) and the Swiss National underutilized pool of potential workers. be emphasized more. After all, Switzer- Bank’s economic advisory council. The trained land reached its current level of prosper- economist is co-owner and Chairman of Reducing wage inequality would be ity thanks in large part to engineering. the Board of Directors of the Winterthur-based an additional incentive for women. company Burckhardt Compression. He has It was not business people who developed two children and lives in Hombrechtikon. How can this be achieved? new medicines, machines and time­ We have to rethink how things are done – pieces, but talented people from technical This interview was conducted and that takes time. Wage discrimination professions. on September 30, 2013.

Photo: Scanderbeg Sauer Photography Bulletin 5 / 2013 — 45 2013 Credit Suisse Worry Barometer

Identity: What Makes Up the Swiss? Neutral, Stable – and Smart Education is gaining in importance, and, along with those values that sustain the state, such as security, neutrality and stability, contributes to the country’s identity. The feeling of belonging within municipalities is on the decline – people define themselves primarily as Swiss citizens.

or the Swiss, what are their coun- try’s main strengths? One area that is clearly gaining ground in a Flong-term comparison is educa- tion. Its perception as one of the country’s main strengths has doubled over the past six years. It is now ranked in second place, right behind neutrality and before stabil- ity (see fig. 8). Uncertainty arising from the Pisa studies conducted since 2000, in which Switzerland has not performed as well as it would have liked, has brought about a generally heightened awareness of education and created the foundation for various education initiatives and reforms over the last ten years. The realization seems to have become widespread that a country with scarce natural resources like Switzerland has few other options than to rely on the population’s brain power. The significance of education emerg- es even more clearly through a second sur- vey result. A huge majority of eligible

46 — Bulletin 5 / 2013 Illustration: Jörn Kaspuhl 2013 Credit Suisse Worry Barometer

Fig. 6: Who Are We? Rating Switzerland Overall “Please name three things that symbolize Switzerland for you personally.”

Switzerland is associated with The need for security and security is particularly strong in the peace, and these medium-sized cities and two concepts are among women, somewhat weaker in Western growing in signifi- Security/ Switzerland and in cance. Important peace rural areas. in French-speak- ing Switzerland: watchmaking 28% (+8) and chocolate.

Ranking for German-speaking Switzerland Countryside 1. Security/ 15% peace 28% (+0) 2. Homeland 17% 3. Countryside 14%

Ranking for French-speaking Neutrality Homeland Switzerland 13% 13% 1. Watchmaking 24% (–7) (+5) 2. Security/ peace 19% 3. Chocolate 17% Countryside 17% Wealth Freedom 10% 9% (+2) (+2)

Watch 20 Order Solidarity making Chocolate 15 8% 8% 8% 8% (–1) (+3) (–2) (–1) 10 6% 5

0 School system Quality 2009 2010 2011 2012 2013 7% 7% Mountains were ranked highest (+0) (+0) from 2009 to 2011.

Tradition Mountains Cleanliness Mentioned spontaneously by percentage of eligible voters 6% 6% 6% in ­open-ended questioning; year-on-year change in percentage (+0) (+0) (–1) points shown in parentheses

Photo: radlöbrain / flickr Bulletin 5 / 2013 — 47 2013 Credit Suisse Worry Barometer

voters (96 percent) agrees that fostering Fig. 7: National Pride education is an important political topic of “Are you proud to be Swiss?” today (fig. 5). La Suisse existe – Diversification as Strength 86 percent are proud of their country. From an economic perspective, the broad mix of industries in the Swiss national economy tends to be categorized as a great- er strength than the clout of indi­vidual key Patriotism according to political beliefs industries (see fig. 8 – not all shown). The 61% right “generally robust economy” has grown by 50 19 percent since 2006 (+11 pp) while the 40 32% middle 30 most important industries stagnated at var- 30% left 50 % 20 (+0) ious levels. Agriculture (16 percent) and the 10 watchmaking industry (15 percent) were 0 2004 2006 2009 2010 2013 still both six percentage points higher than at the beginning of the study. Swiss quality, 36 % (+0) the undisputed key strength for many years, has been downgraded by almost 20 per- centage points since 2011 to 31 percent. ­Interpreting this result is difficult, because those surveyed still consider its “inter­ 10 % national reputation for quality” to be the 2 % (+2) (–1) success factor of the Swiss economy of which 2 % they are particularly proud (see fig. 11). (–1) Ranked exclusively at the top of the country’s strengths – besides education – Very Some- No Not Not proud are the traditional values of the socio-­ proud what response very at all political system: neutrality, stability, proud proud peace and the right to express an opinion. In regards to which aspects of Swiss poli- tics are particularly popular (see fig. 12), other typically Swiss characteristics such Fig. 8: Switzerland’s Strengths as independence or the militia system “In your view, what are Switzerland’s five most important strengths?” round off this image. The virtually unlim- ited support of the Federal Constitution Stability is becoming more important all the time. renewed in 1999 is also a clear indication that there is presently no inclination for more radical constitutional reforms. Following a low point in 2011 Watchmaking and Chocolate (37 percent), neutrality Neutrality is still viewed as one of the most has almost reached its highest point important distinguishing characteristics of 1. Neutrality 47% (+6) of 50 percent (2008) Switzerland (see fig. 6). Although ranked again. lower than last year (–7 pp), all regions of 2. (+5) Switzerland consider it to be equally im- E ducation 46% portant, unlike the idea of “homeland,” 3. (+10) which was mentioned only by respondents Stability 35% in German-speaking Switzerland in the 4. Peace 34% (+4) 2013 survey. The dual concept of security and peace (+8 pp) is ranked at the very top 5. R ight to express an opinion 33% (–5) this year. This might be related to the cur- 6. (–2) rent instability of the global situation and Quality 31% is in line with the results of Switzerland’s 7. O rder and cleanliness 29% (–1) strengths, where the values conducive to 8. Individual freedoms 24% (+3) sustaining the state prevailed. While German-speaking Switzer- land places more emphasis on key values such as freedom, order and solidarity, those In percentage of eligible voters; year-on-year change in percentage points shown in parentheses

48 — Bulletin 5 / 2013 2013 Credit Suisse Worry Barometer

Fig. 9: Feeling of Belonging in Switzerland surveyed in Western Switzerland – with “To what geographical entity do you feel the greatest sense of belonging?” their watchmaking and chocolate – place these two traditional areas, which remain As the power of municipalities to create identity continues very important to them, right at the top of to decline, the sense of belonging to the country is critical. the distinguishing characteristics. In line with the previous findings, national pride is still strong (see fig. 7). In contrast, another question, which had long yielded practically identical results, now indicates a slowly evolving sense of identity. For many years, many Swiss have primarily felt a sense of belonging within their municipality. In 2011, as many as 1. 29% (–3) Switzerland 44 percent felt this way, but today that 2. Canton of residence 20% (+2) number has fallen by more than half (see fig. 9). This trend not only benefits the 2. Municipality of residence 20% (–5) canton of residence, as the next larger unit, 4. Language region 19% (+6)

National pride is still strong, especially

5. Europe 7% (+1) among those of the 6. World 5% (–1) ­political right.

but Switzerland as a whole. If that number is expanded to include second responses, Fig. 10: Threats to Swiss Identity then the municipality, at 35 percent, falls “What do you consider to be a threat to the Swiss identity?” to fourth position behind the canton and language region. The biggest This gradual parting from the mu- threats are nicipality could have a variety of causes. from outside, One might be that growing mobility ex- tending far beyond canton borders is turn- but egotism is ing many communities from residence to ranked higher Immigration “dormitory” towns. Another contributor than ever. 73% could be the fact that municipalities are (–4) Immigration increasingly consolidating out of financial is ranked and administrative considerations. While as particularly threatening in Western there were still around 3,000 municipali- EU problems Switzerland, ties at the end of the last century, only by women and 2,584 remained as of the beginning of 64% in medium-sized­ (–12) cities. 2013. These large municipalities, created through consolidation, do not (yet) im- Egotism part the same sense of belonging. The next 60% few years will reveal whether these mu- (+2) nicipalities will be able to develop a new identity and along with it a new role in International integration and identification. One thing receptiveness Polarization is certain: The state as the guarantor of 59% 52% security and peace has moved closer to in- (–6) (+2) Reform backlog dividual Swiss voters. 48% (–5) Egotism Threatens Identity Practically all voters (97 percent) now rate the Swiss economy positively in compari- In percentage of eligible voters; year-on-year change in percentage points shown in parentheses son to the international economy –

Bulletin 5 / 2013 — 49 2013 Credit Suisse Worry Barometer

Fig. 11: Pride in Aspects of the Economy perhaps an expression of the favorable sit- uation in Switzerland in light of the tense “What things make you particularly proud of the Swiss economy?” economic situation in major global re- gions and the majority of Europe. This Popularity of financial center and public services self-confident Swiss stance is also reflect- increases again. ed in two other values: 91 percent rank Switzerland’s reputation overseas as rath- er good or even very good; almost half the 1. (+3) population (41 percent) believes that the I nt. reputation for quality 94% international image of Switzerland has improved even further over the last twelve 2. Watchmaking industry 93% (+0) months. As a result, almost two-thirds of the voters describe Swiss foreign policy as 2. Successful SME 93% (+2) defensive, and 71 percent would ask for a somewhat more offensive stance for Swit- 4. Strong Swiss brands 91% (+1) zerland in international negotiations. 5. M achinery industry 88% (–1) In the early nineties, there was a A proud great deal of uncertainty in Switzerland record: The four 6. (+1) – the motto of the 1992 World Expo in Pharmaceutical industry 83% top performers have consistently achieved Seville was “La Suisse n’existe pas” 7. Financial center 81% (+10) values of (“Switzerland doesn’t exist”) – and poli- over 90 percent since 2006. cies oriented toward differentiation were 7. Public services companies 81% (+6) cultivated with regard to foreign coun- tries, particularly the European Union. Even today, a majority still considers in- ternational receptiveness to be a threat to the country’s own identity, although that tendency is declining (–6 pp). In contrast, a growing number of those polled (60 Fig. 12: Pride in Aspects of Politics percent) consider national egotism to be a “What things make you particularly proud threat to the country’s identity. In 2010, of Swiss politics?” only 44 percent considered egotism to be negative. As it has been ever since the sur- vey’s beginning, immigration is viewed as Swiss politics = neutrality. the greatest danger (73 percent), but with lower popularity than last year (–4 pp; see fig. 10). (schi)

1. Neutrality 94% (+0)

2. I ndependence 90% (–2)

2. Federal constitution 90% (+2)

4. Citizens’ rights 87% (–1)

5. O pportunity to express an opinion 83% (–4)

6. Coexistence 81% (+2)

7. Social partnerships 78% (+7)

(+8) 8. M ilitia system 77% The social partnership has increased by 16 per- centage points since 2009, the militia system by 20 pp Mentioned spontaneously by percentage of eligible since 2008. voters in open-ended questioning; year-on-year change in percentage points shown in parentheses

50 — Bulletin 5 / 2013 2013 Credit Suisse Worry Barometer

Focus on Trust 61% 2013: Never Higher than Today Trust at record levels – because Federal institutions and decision-makers are very popular Switzerland with the people of Switzerland. is faring better 60 than foreign countries?

Trust in the leading decision-makers in Switzerland is currently at record levels. They enjoy a level of trust of 61 percent on average, while the figure stood at just 34 percent in 1996. Trust has almost dou- bled since the last major recession in 2004 50 on the heels of the “dotcom crisis,” despite a temporary setback due to the global fi- nancial and economic crisis. 2010: Switzerland navigates 2012: Will the financial crisis relatively Switzerland be Why has trust increased to such an unscathed. pulled into extent? One possible explanation is that the crisis after all? during this time, Switzerland – parti­ cularly in comparison with foreign coun- tries – remained unscathed by political (67 percent, average since 1996: 44 per-

crises 1999: Brief drop cent) and the Council of States (65 per- in unemployment, cent, average since 1996: 43 percent). 40 faith in institutions 2004: Confidence Among political authorities, the Federal increases. is shaken by Council enjoys the highest level of trust, the long duration of the dot currently at a record level of 71 percent. com crisis. How do these results line up inter- nationally? According to the “Global Trust Report 2013,” the police (81 per- and prospered cent) and the Federal Office of Justice economically.­ (65 percent) enjoy the highest levels of 1996 When the comparison trust in Germany, as they do in Switzer- with neighboring countries land. In Germany, however, the govern- is positive, it inspires confidence in ment follows behind only after a signifi- the people responsible at home. cant gap (34 percent). The political parties 30 The police and the Federal Supreme percent, average since 1996: 39 percent). are far behind (16 percent). The military Court rank at the top almost every year; in Banks (63 percent) on the other hand, in- has the highest regard in over 25 countries a long-term average, 61 percent of Swiss creased sharply by 23 percentage points to and performs particularly well for exam- trust them the most. The Federal Council 61 percent from 2005 to 2006, and since ple in Brazil, Japan, France and the US. also always takes a top spot (51 percent), that time have fallen slightly below the 50 Churches and religious communities are while banks and employee organizations percent mark only once. in second place this year, which received also consistently post high values, on aver- The political parties achieved the high marks for example in Russia, the US age 47 and 46 percent respectively. greatest increase in trust in 2013. In 2005, and South Africa. In contrast to Switzer- Employee organizations have only 16 percent expressed their trust in land and Germany, people in these coun- gained slightly more trust each year since them, 27 percent in a long-term average tries do not seem to fully trust the justice 2006 (34 percent) and reached a record – but, for the first time, over half of the system, police and the government. high of 66 percent in 2013. Employer or- population now trusts them (51 percent). In Switzerland, the military and the 20 ganizations have registered similar gains, A similar conclusion can be drawn at a church are ranked in the middle in a but at a slightly lower level (currently 54 higher level for the National Council long-term average. (schi)

The chart shows the average trust value. The values of 13 decision-makers have been observed since 1996. The media (radio, television, paid newspapers, free newspapers, internet) is not included, because until 2008, the survey only asked about “mass media.”

Photo: Juergen Held / Travelstock44 / Getty Images Bulletin 5 / 2013— 51 2013 Credit Suisse Worry Barometer

Voice of Politics “The fact that we are so different is what makes us strong.” The new President of the National Council, Ruedi Lustenberger, discusses Swiss identity, the bilateral road and humility as a virtue.

Interview: Urs Reich and Michael Krobath

Mr. Lustenberger, you ran a car­ The voters surveyed identify with class. Each of us is a member of one or penters’ workshop for over different issues depending on more minorities. What makes the 35 years. What did this teach you the ­region they come from and the Swiss Confederation unique is that it about ­politics? language they speak. Do you thrives on the idea of unity in diversity. You learn to value Switzerland’s entrepre- view this as opportunity or danger? One of the ways this is reflected is neurial freedom and realize that a market Viewed historically, it is an opportunity. in the two-chamber system and in the economy is the right system as long as There’s no other country in the world majority of States. all the players act in a socially and envi- where people speaking four different ronmentally responsible manner. For ex- languages with different cultures have Does it worry you that the Swiss ample, it’s smart to wait until you’ve identify less and less with where actually received your money before you they live, as shown in the Worry Barometer?­ start spending it on consumer goods To simply give in to and make investments. And if, like me, That is probably the result of growing you’ve trained 25 apprentices, you also any kind of pressure is mobility. It is therefore understandable, understand the value of our outstanding un-Swiss and would but it is not unproblematic. Local com- dual professional education system. munities represent the core of our subsid- damage, over the long iary state. They have major powers and According to the Worry Barometer, a great deal of responsibility that keep voters identify the following with term, our negotiation them close to the people and make them Switzerland: security and peace tactics. efficient. However, for the system to (28 percent), natural surroundings function, you always need people who are (15 percent) as well as neutrality willing to take on political responsibility and homeland (13 percent each). in the community. Do you agree with the above? Yes, though I would put neutrality and lived together so long in peace, and Politicians have also been called on homeland at the top. The survey also shows together function so successfully to address the long-pending reforms that voters see precisely these Swiss both ­politically and economically. It is of social insurance. How can these characteristics as also being threatened by ­precisely the fact that we are so be implemented? the rapid rise in crime – imported to some ­different that has made us strong. As desirable as this feat would be, the degree – continuing urban sprawl and, past has shown that it is just not possible increasingly, also by the freedom of move- What keeps Switzerland together? politically. It’s best to introduce moderate ment. Regarding that last issue, politicians There is a certain framework. In Switzer- and feasible changes. What I do think and the business world should take land, there is never an absolute majority, is wrong is the idea that we have to bring the worries of the people more to heart. not a region, not a party and not a social in foreign workers to rescue the AHV.

52 — Bulletin 5 / 2013 2013 Credit Suisse Worry Barometer

Voters are looking at the future of their country with greater optimism than 96% before. What should be done to ensure Most of those that Switzerland does, in fact, remain surveyed for the Worry Barometer successful? would like education to I would advise us to follow our current receive more political path and to rely on our own support. Forty-six strengths. As a small country, we will percent see education as one remain neutral and continue to take the of Switzerland’s bilateral road toward Europe. We are main strengths. giving our young people a good education and will keep the dual education system in place. And, lastly, we want to safe- guard the environment and ensure the future of our political culture. Respect for other opinions and a decent political “When you’ve trained culture of debate are essential for our 25 apprentices, direct democratic system. you understand the value of the dual pro­ fessional education­ What is your most important goal system.” Ruedi as President of the National Council? Lustenberger,­ former master carpenter. To enjoy this office and remain humble. It is the institution that matters, not the person. I am thankful to and have great respect for our ancestors who understood It is a mistake to assume that these the majority believes that the how to help Switzerland progress while people who arrive in Switzerland at a ­government does too much for the maintaining unity in diversity. I would young age will not want to receive general public. also like to remind everyone that Switzer­ AHV retirement benefits at some point. I’m pleased about the increase in trust. land’s current good fortune is due to It becomes a vicious circle. What is People have noticed that Switzerland – people working together and not against also clear is that you cannot cut back on compared to other countries – has done a one another. retirement benefits. So that leaves lot right. In retrospect, the bilateral road us with two alternatives: either increase toward Europe has been the right one what is paid into the system and/or for us. I know from personal experience raise the retirement age. However, the that people worry about the high level situation with the second pillar is of regulation. The abuse of social services ­different. In view of rising life expec­ as well as seemingly unrealistic and tancies, it will be hard to avoid reducing expensive feel-good measures have the amount of the con­version rate. had a negative impact on the tax moral and ­promote government apathy. Nineteen percent of the surveyed voters, which is the highest percentage Almost three-quarters of those seen since 1995, are worried about ­surveyed would like to see a the complex issues of energy, nuclear more ­offensive approach on the Ruedi Lustenberger is the 2014 energy and security of supply. part of Swiss politicians toward President of the National Council and thus holds the highest office What does this mean for the political other countries. How can this be in Switzerland for one year. The decision-makers? implemented? 63-year-old master carpenter from Romoos in Entlebuch (LU) has been a member The strategy chosen by the Federal To simply give in to any kind of pressure of the National Council, representing the CVP, Council is the right one. However, is un-Swiss and would damage, over since 1999. He has been the chairman of the the devil is in the detail; until the 2050 the long term, our negotiation tactics. Verband Schweizerischer Schreinermeister und energy strategy takes effect, a great However, the situation is complicated. Möbelfabrikanten (Association of Swiss Master Carpenters and Furnituremakers) since 2005 deal of water that could be used to The reasons for the increasing politi- and a board member of the Schweizerische ­generate power will leave Switzerland. cal pressure on Switzerland from abroad Gewerbeverband (Swiss Federation of Small are mainly economic. And now politi- and Medium-Sized Enterprises) since 2008. The trust in political institutions cians are having to solve problems that Ruedi Lustenberger ran his own family busi- has risen in the last few years and is ness until last year. He is married and has five have been caused by individual eco­ adult children. extra­ordinarily high. Yet, at the nomic sectors, especially the major same time, criticism concerning taxes financial institutions and some of their This interview was conducted is growing, and for the first time, employees, pursuing their own interests. on September 26, 2013.

Photos: Gaetan Bally / Keystone (2) Bulletin 5 / 2013 — 53 2013 Credit SuiSSe Worry Barometer

Focus on Financial Institutions Trust Is Back, Call for More Self-Confidence There is a great deal of confidence and strong opinions on the future of Swiss financial institutions. Voters want to see a more aggressive stance in negotiations with foreign countries.

Behavior desired of Based on the results of the Worry Ba- most one-third still considered the bank- Switzerland in Financial rometer, eligible voters are clearly more ing crisis to be one of the main problems matters deeply engaged with issues surrounding in 2011 (30%), that number is currently the future alignment of Swiss financial only one-tenth (11%). On the trust ques- institutions than last year. In principle, tion itself, banks managed to climb 15 66% there are many strategies to be consid- percentage points compared to last year, 47% A majority would ered. Of those, the most important seem reaching 63 percent. That is the highest (+4) like to see aggres- sive behavior in to be both improved regulatory supervi- value achieved since the survey was start- financial matters. sion (79%, +10 pp) and safeguarding ed in 1995; the banks’ long-term average bank client confidentiality (78%, new). is 49 percent. Reinforcing the institutional investor Two-thirds of the population (66%, business (76%, +2 pp) and improving ac- +4 pp) would like to see a very or some- cess to foreign markets (74%, +2 pp) fol- what more aggressive stance taken by low closely behind. Commodities trading Switzerland in international negotia- is viewed more skeptically. Although its tions; only one-quarter (25%, –5 pp) cau- promotion is still considered important tions for more restraint. These values also to 63 percent of the population, this rep- support the population’s concern in Swiss resents a decline of 5 percentage points in politics in the general matter of repre- comparison to the previous year. Almost senting the country’s interests vis-à-vis half of those surveyed consider an ex- foreign countries (71%, –1 pp). (schi) clusive focus on private banking (52%, +7 pp) or the introduction of an automat- ic exchange of information (49%, +5 pp) to be important.

Financial Institutions among Key Strengths 19% No less than three-quarters of the voters (+0) 18 % are very or somewhat proud (76%, +9 pp) (–5) of bank-client confidentiality that rules out criminal abuse but protects privacy. The value of the financial institutions as a whole (81%, +10 pp) is even higher in this regard but still lags behind the top values 9 % of other industries, in particular behind 7 % (+1) those of the watchmaking industry (93%) (+0) and the machinery industry (88%). All in all, the Worry Barometer shows that financial sector has been suc- cessful in regaining the trust lost in re- cent years. One-fifth of the population considers financial institutions to be among the country’s five key economic very aggressive somewhat aggressive somewhat defensive very defensive no response strengths (20%, +3 pp). And while al-

54 — Bulletin 5 / 2013 building capacity SIDE bySIDE

Thanks to extensive training from Opportunity International, Agricultural Finance Officer Abena Sarpong of Ghana is well equipped to serve as advocate and mentor for cocoa farmer Beatrice Boaten. Abena provides Beatrice with financial literacy training, technical assistance and access to savings, loans and insurance — tools she has used to transform her life.

Millions of clients like Beatrice benefit from our commitment to build the capacity of microfinance professionals within the countries we serve. With the support of Credit Suisse, Opportunity is recruiting and developing senior executives and providing comprehensive training for loan officers and customer service staff. We are not only providing jobs, but creating careers that support families and strengthen communities in remote and impoverished regions throughout the world.

Build the capacity to serve entrepreneurs. visit opportunity.org A Chimango Caracara – a falcon that winters in northern Argentina.

56 — Bulletin 5N° / 2013 5 / 2013 — Identity —

A Foot on Each Continent What moves people to leave one of the most highly developed, wealthiest and safest countries in the world? Visiting with Swiss expats in the Argentinian rainforest. By Andreas Fink (copy) and Marco Vernaschi (photos)

BulletinBulletin N° 5 / 2013 — 57 ué se yo,” is how he re- sponds to the question about his homeland. He could have been just as Q non-committal with a “was weiss ich” in German, as he is equally “adept in guttural Swiss German and the rounded Spanish of the Argentinian north. His parents’ house stands on the edge of the forest, as does his grandparents’ farm. However, 11,000 kilometers, the equator and the threshold separating the first and third world lie between the two buildings. Does he have two homelands? Does this word even exist in the plural? Or does someone like him have no homeland after a life that he has begun anew four times on the each side of the Atlantic? Like many other residents of the vil- lage Ruiz de Montoya, Carlos Zimmer- mann can’t answer these questions. They are Argentinian and they are Swiss, they live in the sub-tropics and in the foothills of the Alps. Many can only survive here because they lived and worked there. They are both immigrants and emigrants. The journey to the village, which was once born out of necessity, is now a com- fortable trip through colorful scenery. 1 Route 12, the main road that runs parallel to Argentina’s northern border, winds its way through the hills of the Misiones Province. Vegetation in every shade of before the Second World War, but also no German. The Swiss from Misiones began to green you can imagine grows out of the experience in farming or agriculture. They return to Switzerland in the ’60s. To learn rust-red soil that borders the road. We were men, women and children to whom something to take back to Argentina. To pass through forested regions and planta- the government loaned a few thousand earn money for a better life back in the jun- tions where yerba mate, a plant native to Swiss francs and who were sent, friendless, gle. Not many intended to stay in Switzer- the region, is grown. After a turn-off, the out into the jungle. More than one thou- land when they departed from Buenos Aires. paved road winds a few kilometers south- sand families relocated to northern Argen- wards; and where the village starts after tina in the interwar years; those who did so “I warn you, I want to go back!” the last crest, you see the bright yellow of between 1936 and 1939 (at least half) had When Carlos Zimmermann began his ap- flowering trees lining the road. government loans, but only a few were able prenticeship at a Lucerne-based auto me- You also immediately notice that this to repay them. chanic shop, he talked like a lot of other is no ordinary Argentinian village. The Many set off for the rainforest, fooled 20-year-olds on Lake Lucerne. He did not hipped roof on the Swiss Club and the bell by the misleading catalogs of private Swiss shout the fact that he was born in the jungle tower on the church, complete with weath- companies, driven by the hope of striking from the rooftops. His family was from ervane, stand out. There is a sign pointing to it rich through farming the native plant Herlisberg (today merged together with “Granja Suiza” where Tilsiter and Raclette yerba mate. The migration to Misiones is Römerswil), where his uncles and cousins cheese are made. It is idyllic, a perfect ex- the last chapter in the centuries-long his- still ran a woodworking business. Carlos ample of a Protestant Swiss village, though tory of Swiss emigration due to poverty. wanted to become a car mechanic, but not it was named after a Jesuit missionary. Yet, just two decades after the initial in the repair shops in Argentina, where settlement, in post-war Europe, the direc- tools were often missing, spare parts sat Born out of Poverty tion of migration had reversed. Companies waiting at the customs office and invoices Ruiz de Montoya could also have been between St. Gallen and Geneva needed to were not paid. He completed his appren- called “New Schaffhausen.” Its first inhab- attract foreign workers and remembered the ticeship with a diploma and opened his own itants were families that were no longer Swiss community founded in the rainforest. repair shop right behind Lucerne train sta- welcome in Switzerland. They were tailors, Families with last names like Flückiger, tion. The shop grew and could have contin- bookbinders, shoemakers: tradesman who Schegg, Urfer and Schweris not only had ued to grow, but for Carlos, Central Swit- had no work or prospects in the crisis years Swiss passports, they still also spoke Swiss zerland became too claustrophobic. On

58 — Bulletin 5 / 2013 — Identity —

1 Green gold? The Swiss had hoped to strike it rich cultivating the native yerba mate plant. Only a few succeeded.

2 Emigrant: Lorenzo Zimmermann moved to the jungle from Switzer- land in 1937. Today, Spanish comes easier to him than German.

3 Re-emigrant: Carlos Zimmer- mann started over four times – on both sides of the Atlantic.

2 4 Souvenirs, Souvenirs: The living room decor unites the two worlds of the Burri-Mozzoli family. Swiss cowbells hang above bottles made by indigenous Argentinians.

3

4

Bulletin 5 / 2013 — 59 5 6

5 Model school: the Instituto Linea Cuchilla.

6 “Mr. Misiones”: Hans Rudolf Würgler.

7 Rita Burri returned after 21 years in Switzerland.

8 It was too claustrophobic for her in Switzerland: Sabine Haldimann.

9 Heat-resistant cattle: a zebu 7 8 in Ruiz de Montoya.

9

60 — Bulletin 5 / 2013 — Identity —

the day that he met the girl who would lat- ciation made imports impossible, custom- er become his wife, he told her, “I warn you, ers ran out of money, and the repair shop Misiones Province, Argentina I want to go back!” could no longer stay open. On top of that, Back to the place where his father his Swiss wife just couldn’t handle the cli- Lorenz began felling trees as a 17-year-old. mate. In 1984 the family got on a plane and In March 1938, three brothers disem- returned to their new old home. barked from a ship in the river port of Puer- to Rico, with saws and axes in their packs. The Red Earth Beckons They were three of ten siblings from the Six years ago, Carlos Zimmermann re- sawmill in Herlisberg, Switzerland. The turned to Argentina, alone. He is divorced; fact that the Zimmermanns were all car- his three children work in Hochdorf near penters was an advantage from the start. Lucerne. “They are doing fine,” says the They quickly became familiar with local proud father, and adds that all three have species of trees, such as Lapacho, Cedro, applied for Argentinian passports. “The red Loro negro and Guatambú, whose wood earth, it beckons you,” says Carlos, who has was suitable for export. They purchased resolved never to change continents again. parcels of land in the rainforest, felled trees He would have had a difficult time living and then resold the land. They used an old off his pension of 1,600 Swiss francs a - Population: 1.1 million (2010) Ford Model T to operate their first saws; they month in Switzerland. “The health insur- - Capital city: Posadas used water buckets for the cooling system. ance alone would have taken half of it.” In Lorenz added an “o” to the end of his Argentina, where retirees can go to the Swiss Living Abroad first name. For twenty years, he ran the co- doctor free of charge, he has his own house operative founded in 1953 that exports tea and can live quite comfortably, because the More than ten percent of all Swiss citizens and yerba mate to Europe and Japan. He AHV (old age and survivors insurance) live abroad. has also presided over the Swiss Club for makes overseas payments. - Total number of Swiss abroad: 715,710 many years. Lorenzo Zimmermann says AHV: These are the three magic let- (10.4 % of Swiss citizens). that the best friends of his 93-year life have ters in the village of Ruiz de Montoya. They - Increase compared to 2002: 116,776 been Argentinian. Spanish comes easier to stand for the retirement payments from the (+19%), the number of Swiss expats has doubled since 1980. him than German. He has never regretted Swiss pension fund that – along with the - Favorite continents: taking the road into the wilderness. money sent back by hundreds of villagers 1. Europe 442,620; working in Switzerland – make Ruiz de 2. The Americas 175,954; 3. Asia 45,793; Grossmünster and the Chapel Bridge Montoya an attractive place to live. Most 4. Oceania 30,647; 5. Africa 20,696. It is a rare cool winter day in September in Swiss residents of Misiones see the AHV as - Selected countries: Misiones and the coals in the woodstove are belated reparations for the government ef- Europe: France 186,615; Germany 80,715; Italy 50,091; red hot. Family photos hang on the wall fectively forcing these villagers to emigrate England 30,452; Spain 24,157. above the fireplace, along with certificates in the 1930’s. They have been happy to pay The Americas: US 76,330; from the Swiss Club and souvenir plates in a minimum amount of less than 100 Canada 38,959; Argentina 15,767; from Switzerland. One is of Zurich’s Gross- Swiss francs a month during their working Brazil 14,976. Other: Australia 23,633, münster Cathedral, a second shows a Swiss life in order to receive a minimum pension Israel: 15,970; Thailand 7,431. alpine mountain hut, the third is of the upon turning 65 (currently 1170 Swiss Chapel Bridge from Lucerne. In a corner francs per month). In fact, the prospect of a Source: Statistics of the Swiss living hangs a portrait of Pope John Paul II, and Swiss pension is one of the factors that abroad 2012 across from it an aerial image of Herlisberg drives return immigration of young people with the old wooden house surrounded by back to Switzerland, most of whom leave the new sawmill, the wood warehouse, and Argentina with no foreign language skills. the family histories of the current 2,410 several trucks. “All the Zimmermanns have Because, unlike in its beginning in 1948, Swiss residents of Misiones. The son of a contributed,” says the head of the family, the AHV now requires that benefit recipi- Swiss agronomist, he was born in the Co- and his son Carlos nods. ents live and work in Switzerland for a min- lonia Santo Pipó, about 50 kilometers Carlos Zimmermann has spent 36 of imum of five years in order to later receive southwest of Ruiz de Montoya, in 1937. He his 69 years in Argentina and the other 33 retirement benefits. was sent to Bern for high school and uni- in Switzerland. He first returned to Misio- versity before returning to Argentina to run nes in 1975 with his wife and three children A School in the Rainforest the family farm and to tackle the needs of between the ages of two and eight, and a Hans Rudolf Würgler, a long-term honor- the Swiss residents in Misiones. He came complete auto repair shop in his luggage. ary consul of Switzerland in Misiones, is back with the idea of establishing a techni- He brought with him knowledge, skills, familiar with the story of many families cal school in the rainforest with the help of tools and capital – for nine years he made a who squeeze into two-room apartments in the Swiss Evangelical church, and with the go of it, but then reality caught up. At the Zurich in order to keep rent costs as low as contacts to do it. end of military rule in Argentina, inflation possible during their work years “over there reached 131 percent annually, depre- there.” In fact, Würgler knows almost all Read more on page 64.

Map: Crafft Bulletin 5 / 2013 — 61 The wooden house where teachers Sabine Haldimann and Roberto Henn live is surrounded by a large three-hectare tropical garden.

that time were too expensive. “We were very comfortable in Switzerland,” says Rita Burri. “We could have happily stayed.” They returned to Argentina mainly because of their family. They did not want to relinquish the farm that their parents and grandparents had worked so hard for. And now that the two of them are ap- proaching retirement age, their older daughter recently announced that she would like to move to Ruiz de Montoya in the near future. Why do people make this move? For family? For the retirement benefits? Or is there possibly something more that drives A monument to hard work: This barn is where the Burri family dried their first crop of tea leaves. people to move from one of the most high- Today the local cooperative processes, sells and distributes the leaves. ly developed and secure countries in the world to the backwoods of Argentina? Last year, the “Instituto Linea Cuchilla” smart man, a steel worker who once helped “I think it has to do with freedom,” celebrated its 50th anniversary, and 420 stu- build dams in the Alps. However, the de- says Sabine Haldimann, the English dents are currently studying agriculture and pression of the 1930’s took away his work. teacher from Ruiz de Montoya. The electrical engineering there. Thirty-seven of To get his five children through the tough 40-year-old arrived in the village 16 years the students are Swiss. “Our school is main- times, he took out a government loan and ago fresh from university with her teacher’s ly financed by the Argentinian government brought the family to Misiones. certificate in hand. She wanted to get more and tuition fees from the families. But 20 Farming experiments followed the out of life than “a permanent job that any- percent of our students have scholarships, arduous work of clearing forested land. one in the perfectly organized Swiss sys- which are funded thanks to donations from Many of his crops were ruined by the hu- tem could do,” as she put it. Today, she Switzerland.” Würgler, who was honored midity and heat. What did grow was often gives lessons in her small wooden house. for his work in Misiones with the Swiss difficult to sell. Like many other settlers, The miserable level of foreign language les- Abroad of the Year Prize in 2004, makes it the Burris believed the government goods sons in Argentinian schools guarantees her very clear that the Instituto represents his traders and stuck with the supposedly suc- a steady flow of customers, but not a lot of life’s work. “I am sure that our school has cessful export goods like tobacco, ricinus money. had a positive impact on the entire province and jute. Nuts from the Tung tree sold during its 50-year history.” Misiones has slightly better, but only until its oil began A Good Place in the World needed this kind of positive development to be synthetically produced. Finally, the As a child, Sabine Haldimann had already over the years. Swiss resorted to cultivating tea. had the opportunity to view Switzerland The heavily forested land between the “This field is as old as I am,” explains from the outside. Her father worked as an Paraná und Uruguay rivers has never been Rita Burri, born in 1952. A year later, the engineer for several years in Libya and she able to overcome the disadvantages of its cooperative was founded, which to this day grew up under a lot of sunshine and even outlying location. The soy boom in the sells the tea leaves grown in these fields. more blue sky. Back in Switzerland, life southern region of Pampa brought with it Her product could be marketed better be- there was too dark, too claustrophobic and only drawbacks for Misiones: higher export cause it is organically produced – the lega- too tidy. fees, more expensive fertilizer and personnel cy of her visionary grandfather. But Rita Her two small children, Luciana and costs that are rising by 25 percent annually. Burri and her husband Roberto Mozzoli Daniel, are growing up among horses, cannot afford the expense of certification dogs, cats and an imported garden gnome Tobacco, Nuts, Tea and distribution, especially now as costs whose view is gradually being robbed by “We don’t know how we are going to keep are rising while the world market prices for the wild-growing grasses. The hillside paying our three employees,” admits Rita tea are stagnating, even dropping. property that Sabine Haldimann and her Burri, although her farm does not look to be They have asked themselves more husband Roberto have spent years cultivat- in dire circumstances. She takes advantage than once whether it was the right decision ing measures three hectares, and it has giv- of the soft evening light to show the legacy to return to this hill. After all, they lived in en them the feeling that they have found a of her father and grandfather: densely Switzerland from 1972 to 1993, their two good place in the world. It’s a feeling that grown tea bushes planted in long rows. To daughters were born there and still live they share with other Swiss expats in Ruiz harvest the plants, which take up four fields there. Their hard work and thriftiness de Montoya. and 50 hectares, the family needs workers, helped them pave their way from being un- even when a machine does the cutting. skilled workers to business owners - they Andreas Fink is the South American correspondent for “Focus” (Germany) and “Die Presse” (Austria). The first tea harvesting machine in ran a laundry and dry cleaning business in Misiones stood in this exact farmyard, St. Gallen. Not once during these 21 years Marco Vernaschi is a photographer based in built by Rita Burri’s grandfather. He was a did they travel to Misiones, the flights at Buenos Aires.

64 — Bulletin 5 / 2013 empiris [εm’piris]: supports projects in the fields of science and research – donors can set up their own subfoundation – long-term, professional support in implementing the founder’s wishes – infrastructure available free of charge, and many more benefits

EMPIRIS charitable foundation, Bleicherweg 33, CH-8070 Zürich, +41 44 332 05 01 www.empiris.ch Supported by CREDIT SUISSE AG — Identity —

Nature or Nurture? What makes us who we are, our genes or our environment? Once again, biologists are giving greater weight to external forces. We are more malleable than had long been thought. By Mathias Plüss

Opera or jazz? Faulkner or Hemingway? PC or Mac? People love clear alternatives – we seem to feel a need to declare our allegiance to one or the other. But in fact, there’s nothing wrong with saying, “I like a bit of both.” This natural human inclination to frame things in terms of “either/or” is found in science as well, and all too often it has slowed down progress. According to biologist Ernst Mayr, “False alternatives are at the root of nearly every major con- troversy.” As a result, he points out, “The pendulum has swung back and forth throughout the history of science.” The most prominent example is the debate over the respective roles of heredity and environment, which has gone on for decades. Are we the product of our genetic An insight from the field of epigenetics: When young rats are regularly licked by their mothers, makeup, or our upbringing? This question an anti-stress gene is switched on that remains active in the next generation. is often the subject of rancorous debate. But simple common sense tells us that the answer cannot be solely one or the other. Take, for example, language: Every human being is born with an instinct for scientist Jean-Baptiste Lamarck (1744– were firmly convinced that people could language. Even as babies, we start to ex- 1829) was, in a sense, the first “environ- be changed through education. Promi- plore the sounds around us, discovering mentalist”: He believed in the inheritabil- nent Soviet biologists believed that even words and the rules of grammar, without ity of acquired traits. Englishman Charles plants could be trained to acquire certain anyone teaching us how. But saying that Darwin (1809–1882), on the other hand, characteristics. The result was famine. language is inborn tells only part of the believed that genetic material was im- story. Theoretically, every child is capable mune to external influences. He pio- Disillusionment with the Genome of learning any language in the world – neered the view that genes play the domi- During the 1960s and 1970s, many West- but in fact, children learn only their nant role. ern scientists, too, were convinced that mother tongues. Thus the ability to ac- The major ideologies of the 20th human beings were highly malleable. They quire language is genetic, but the content century took clear positions in this de- believed that children came into the world of language is learned. Genes and envi- bate. The Nazis wanted to create a supe- as a blank slate, capable of genius given the ronment work together. rior human being by eliminating “inferior right conditions. The pendulum subse- The controversy began with two bi- genetic material,” and took brutal mea- quently swung back in the other direction. ologists in the 19th century. The French sures to do so. Communists, in contrast, With the success in 2000 of the project to

66 — Bulletin 5 / 2013 Photo: Jean-Michael Labat / ardea / Mary Evans Picture Library / dpa picture alliance — Identity —

decode the human genome came a belief This is clearly a case in which the environ- able effect on the activity of the gene for that we would soon find a gene for every ment has an impact through the genes. fat cells. Meditation and nutrition are also human trait and behavior. “It is now con- believed to modify gene activity. ceivable that our children’s children will Environmental Impacts Can Be Inherited know the term cancer only as a constella- In one experiment, researchers studied the Not Everything Is Ordained by Fate tion of stars,” said former US President licking behavior of mother rats. Pups that In other words, epigenetics gives people Bill Clinton as the first survey of the were licked frequently experienced less back a degree of self-determination. We Human Genome Project was made pub- stress later in their lives. In contrast, the can do something for our health – not ev- lic. Genetic determinism had made a pups of less nurturing mothers often grew erything is ordained by fate. It also allows comeback. to be extremely anxious. Both stress and for the use of medication; for example, a Now, however, a measure of disillu- licking behavior are inherited. chemical substance exists that calms sionment has set in again. To be sure, there The amazing thing, however, is that down anxious rats. Epigenetic changes are reports nearly every day that a gene has these behaviors are not genetic. If an anx- can be reversed. been discovered for depression or obesity, ious pup is given to a nurturing mother Some researchers are now conclud- or for sweaty feet or unfaithfulness. Seeing rat, the pup takes on the characteristics of ing that anything is possible, even after a an opportunity, companies tell us that the “foster mother.” Scientists have shown dysfunctional childhood. It’s too early to they can use the genome to predict our fu- that the licking process switches on genes celebrate, however, and we need to be ture health. in the pup’s brain that reduce the level of careful not to repeat the mistake of lurch- In fact, however, there is little to back stress hormones. And these genes remain ing from one extreme to the other. The up such promises; in most case, genes raise active in the next generation. This is clear- ability to mold human beings at will is the risk of disease by only a few percentage ly a case of an inheritable environmental certain to remain no more than a dream. points. And how should we respond to the impact – Lamarck’s theory revisited. There are still many areas in which information that our genes give us a ten Of course, such experiments cannot our genes do indeed play a decisive role. percent higher risk of developing Alzhei- be carried out with humans. But many be- Intelligence, for example, is largely prede- mer’s disease? Knowing this will only raise lieve that similar processes occur with termined. But still, with good schools and our anxiety level. people, too. We know, for example, that appropriate support, it is possible to raise babies who are held frequently are more an individual’s IQ by up to 15 points. Sure- Switch On, Switch Off resistant to stress in adulthood. And a ly that is a good example of genes and en- But some associations are much clearer. If posthumous study of people who commit- vironment working together. you have a BRCA gene mutation, for ex- ted suicide after being abused as children ample, you have an 80 to 90 percent prob- showed that all of their stress-reduction ability of developing breast cancer, which genes were switched off. It seems logical to is why actress Angelina Jolie underwent a conclude that the abuse they suffered pro- prophylactic double mastectomy this past duced anxiety and stress, and ultimately spring. But only very few diseases can be led them to take their own lives. predicted with that degree of certainty. It is now suspected that factors in Perhaps this is because the search early childhood may play a role in a variety for the corresponding gene has not been of diseases – including diabetes, high sufficiently thorough. But another expla- blood pressure, autism, ADHD, depres- nation has come to the fore over the past sion, schizophrenia and allergies. Obesity, few years. It may be that our genes do not in particular, is now believed to be passed play the kind of deterministic role that is down from generation to generation, al- commonly assumed. though there is no gene for that trait. Not all of the genes that we carry are Overweight mothers set the pattern for active by any means. Throughout our lives, their children, leading them to become individual genes are turned on and off. overweight as well. This is due to the influence of other genes, For the individuals concerned, it is but also to environmental factors. The little consolation to know that their excess term for this is epigenetics. weight is due to epigenetics rather than Most of the results we have are from genetics. But there is a crucial difference: animal studies. Researchers have found, With epigenetics, there is a greater chance for example, that when female chickadees that they can lose that weight. One study are subjected to repeated threats from birds has shown that exercising, even over a pe- Mathias Plüss is an award-winning freelance of prey, their young develop longer wings. riod of just six months, can have a notice- science journalist.

Bulletin 5 / 2013 — 67 — Identity —

The only referendum I could think of was the one to ban mina- rets; I had waxed indignant about Blocher (whose role in Swiss Waving the Flag politics is no longer as dominant as I had assumed, living in far- away Hamburg), and I had celebrated Swiss footballers without Absence makes the heart grow fonder. having any idea of the current standings in the Super League. The longer I live abroad, the easier it is It’s come to this. I used to be annoyed when Germans would talk about Switzerland. They all seemed to have “been to love Switzerland. there on vacation”; they all have “friends in Switzerland” – all By Urs Willmann of whom are “nice” and speak “such an adorable Swiss German dialect.” It’s rare for anyone to have more insight than that. They love Switzerland without really knowing anything about it. If you ask them about the Swiss political system, they’ll say, “It’s a While still living in my native country of Switzerland, I was democracy.” No one knows the names of the political parties. absolutely certain that I would never, ever fly a Swiss flag. But And now I was suddenly discovering that I was much the same. in June 2006, that’s exactly what I did. I was in my office at Who do I know in Switzerland, aside from my friends? And Hamburg’s Pressehaus, home to the weekly newspaper Die Zeit. what do I know? Recently, as my daughter was learning the As I was tying a Swiss flag to the radiator, preparing to hang it capitals of Germany’s states, I tested myself and discovered that from my window, I began to realize what living abroad can do I could still name the capitals of the Swiss cantons. But when it to you: I had turned into a patriot. came to the members of the Federal Council, I could only come I should point out that this newfound delight in my Swiss up with four names. identity was triggered by a specific event. In Germany, where I’ve lived since 1998, the World Cup was just beginning. And Becoming a Fan since the dictates of political correctness were allowing even the Some years ago, Switzerland Tourism came to Hamburg. I re- Germans to display a modicum of national pride in 2006 (one member looking at this display of Swiss traditions as a kind of tiny flag per car), I decided that I could as well. A nonconform- game. I participated in the parcours, rolled cheese wheels, shot ist at heart, I found it easier to cloak my patriotism in the form a crossbow and managed to spit cherry pits a distance of 12 me- of a provocation. So there, right in the heart of Hamburg’s busi- ters. But now I’m discovering to my dismay that I’m still in the ness district, a Swiss flag suddenly appeared, impossible to ig- grip of Switzerland’s foreign marketing offensive. Whenever I nore. Reactions were swift. People asked my editor-in-chief, think of Switzerland, what I see in my mind’s eye are the Alps Giovanni di Lorenzo, why there was a Swiss flag hanging from – the Eiger, Mönch and Jungfrau. And it’s my own fault that the building during World Cup season – while a German flag I’m so ignorant. Since emigrating, I’ve stopped participating in was nowhere to be seen. Switzerland’s democracy. The issues that I’m allowed to vote on But needling the Germans was only one of the motivating – they’re all so far removed from my life. Although in my de- factors in the affirmation of my Swiss identity. The real reason fense, it’s not made easy for me, or for the Germans. We can’t was that my relationship with Switzerland had become much watch Swiss television here – except for “10vor10” at midnight more relaxed since I had moved away. Living in Hamburg, I had on 3-Sat (with subtitles). When the German media reports on come to see my native country with new eyes. More positively Switzerland, it’s usually about something with a direct impact – not always, but for the most part. Absence makes the heart on Germany (tax evasion/banking confidentiality). Or it’s grow fonder. something strange or quaint, an opportunity to chuckle over the yokels who live in the mountains: “Swiss wrestling,” cow Taken Aback fighting and “drive-in brothels.” My first surge of patriotism was triggered by politics in Ger- It’s dawning on me why I feel a sense of patriotic affection many. I found it disturbing how quickly politicians’ statements toward Switzerland. As a bystander, I can sing the praises of di- are turned into action. It takes only a few weeks for slogans to rect democracy without having to worry about the consequences become policy, and all of a sudden political theater is reality. of a referendum. A ban on minarets? I can’t do anything about Living abroad, I suddenly appreciated aspects of Switzerland it! And there’s no need for me to get worked up about the day-to- that – reform-minded as I am – I had found maddening in the day issues of integration policy. Instead, I can blithely celebrate past: the placid nature of the Swiss, the calm approach to seek- the successes of Switzerland’s national football team and laugh ing consensus that makes it possible to address problems over along with my German friends when they congratulate me on the long term. There is no need to abandon a strategy just be- the victory of Albania I (Switzerland) over Albania II to qualify cause yet another political discussion has aired on television. for the World Cup in Brazil. Switzerland, it’s a relaxed country. My transformation into a fan is almost complete. Being in I recently had occasion to test my new-found love of the a foreign country has made me into a foreigner. I love Switzer- country of my birth. The editors of this magazine asked me to land because I have finally become a German. write an essay from the perspective of an emigrant, and I enthu- siastically agreed to do so. I crafted words and sentences to ex- press my affection for Switzerland. But looking at the results of Urs Willmann is a science editor for the weekly newspaper Die Zeit. my efforts, I was taken aback. It was clear from what I had writ- He and his family emigrated to Hamburg 15 years ago. His Zurich dialect ten that after 15 years, I really didn’t know my country any more. has remained largely unaltered.

68 — Bulletin 5 / 2013 — Identity —

“Women Often Have Different Priorities”

Elisabeth Kopp, Switzerland’s first female Federal Councillor, talks about Switzerland’s evolving identity, her personal value system and the self-confidence of today’s female politicians. Interview: Regula Brechbühl

ou were the first female lawyer to graduate summa cum laude from the University of Zurich, the first female council leader in German-speaking Switzerland, and Switzerland’s first female Federal Council- lor.Y What motivated you to pioneer these roles? I suppose I was unconsciously influenced by the example set by my parents. Despite running a large household, where children from war-ravaged countries found sanctu- ary during the war, my mother helped establish a nursery school and was presi- dent of the nursery school association. Her initiative was valuable, because at the time there was no nursery school in our municipality of Muri near Bern. My father worked for the federal government as director of the Federal Finance Admin- istration. In spite of lucrative offers from the private sector, he remained a loyal public servant. The work he did was more important to him than the compensation he received. I talked to him about a lot of things when I was growing up, even politics. I was an enthusiastic scout and influenced by scouting’s ideals about responsibility, helping others and doing good. I began studying law in the first place because I wanted to become a lawyer specializing in youth issues. And in 1971 I was an advocate for women’s suffrage. Not because I wanted to get involved in politics, but because I cared about equal “I’ve always felt it was important to be able to rights. As part of a women’s group in look myself in the mirror at the end of the day, and to stay true to myself.” Elisabeth Kopp. Zumikon in 1970, I couldn’t say no when I was asked to run for the district

Photo: Robert Aebli Bulletin 5 / 2013 — 69 — Identity —

council. To my surprise – and without In what ways do you think Swiss identity Biography even my own vote – I was elected. is evolving? Has anything changed over the years? And how liberal is Switzerland now? Elisabeth Kopp, 77, was Switzerland’s first Did these pioneering roles change you? Our four official languages and the peace- Federal Councillor. She held that position from 1984 to 1989. A member of the FDP, she Not at my core. But I realized how ful coexistence of people from different grew up in Berne, was a talented figure skater important it is for women to have their religions continue to define our identity. in her youth, and studied law in Zurich. Her say. And not because women can do In contrast, there is much less willing- political career began in the mid-1950s when everything as well as men – or some- ness to take responsibility than there used she joined an umbrella organization, later times even better – but because we have a to be. Consequently, everything is more known as FDP-Frauen Schweiz, for women’s groups related to the Free Democratic Party different set of experiences. Because of regulated, and this comes at the expense in Switzerland. In 1974, Elisabeth Kopp be- this, women often have different priori- of liberal thinking. came the first female council leader in Ger- ties. I have always worked hard to do man-speaking Switzerland, and she made the well in any job assigned to me, thereby leap to the National Council in 1979. Soon thereafter, she was made vice president of the paving the way for other women. FDP Switzerland, and in 1984 the United I was an advocate for Chambers of the Federal Assembly elected Various allegations ended your political her to the Federal Council. career abruptly in early 1989. You were in the women’s suffrage. A scandal ended her term of office prema- turely in the fall of 1988. She informed her public spotlight for months, although in Not because I wanted to husband, Hans W. Kopp, of tax-related February 1990 the Swiss Federal Supreme get involved in politics, charges against a company for which he was Court cleared you of all charges of violating serving on the board of directors. Elisabeth professional confidentiality. What were you but because I cared about Kopp resigned amid great pressure from feeling during that time? the media, although she always protested equal rights. her innocence. The Swiss Federal Supreme It was by far the worst period of my life. Court later cleared her of all charges of vio- It’s devastating to have your reputation lating official secrecy. destroyed. The worst part for me was the Elisabeth Kopp has one daughter and lives feeling of helplessness. To give you an Switzerland’s economy is one of the world’s in Zumikon. Hans W. Kopp died in 2009. example: Shortly after I resigned, I gave an most competitive. But many people bemoan interview in which I was not misquoted, this development, because it is adversely but the headline said in huge letters, affecting Swiss values. Is globalization a The Book “Still clueless and sugarcoating things.” blessing or a curse for Switzerland? That hurt me a lot. In the 19th century, Switzerland was still The Kopps. No other married couple has a poor country with multitudes of emi- electrified the Swiss public like Elisabeth and Hans W. Kopp. They were children of How did you deal with the situation grants. Our only real raw material is the cold war who had a life-long love affair back then? water, and we have had to work very hard with each other. They ascended to the coun- I wrote a book, moved to Florence to do to achieve prosperity. Switzerland today try’s highest echelons of professional and postgraduate studies in European law has the most patents per capita and our social life. Two lives, one fate. She became the first female council leader in and human rights law, and worked at my stable political situation keeps the country German-speaking Switzerland after women husband’s law firm. We took in my competitive. We must keep it this way. won the right to vote, and she was Switzer- father, who was over 90 years old, along There’s no point in worrying about wheth- land’s first female Federal Councillor. with two young people from the former er it’s a blessing or a curse, particularly He moved between worlds as a star com- Yugoslavia, giving them an opportunity since globalization is here to stay and has mercial lawyer, university lecturer, a colo- nel in the General Staff, a media guru and to study in Switzerland. We have a shown us that the world doesn’t end at our a writer of fiction and non-fiction. Then wonderful daughter, who has given us borders. I don’t think globalization is a came that fateful phone call between the three bright, delightful grandchildren. threat to Switzerland. I’m more concerned two spouses on October 27, 1988. The fall. All of that became more important to about the creeping “me-first” mentality Social annihilation. They stayed together despite it all. me than my political work, although it that puts material values above every- was also very satisfying to be able to thing. This mentality is a far greater threat make positive changes through my work. to our competitiveness than globalization René Lüchinger could ever be. Elisabeth Kopp Two lives – one fate. When you open the newspaper these days, Rise and fall of what makes you most happy and what What values were most important to you as Switzerland’s first irritates you the most? a politician? Would they be different today? female Federal It makes me angry when falsehoods are The values that guide my life have always Councillor published without the writer doing any been the same. Experience has simply approx. 248 pages, paperback with dust research or interviewing the affected enriched these values. The most impor- jacket approx. CHF 39 / approx. EUR 34 parties, requiring people to go to trial to tant thing to me was being able to look at Due out in December 2013 force a retraction. And I’m always happy myself in the mirror at the end of the 978-3-7272-1253-6 to read something positive – no matter day, remaining true to myself and not how small. having to pretend. I was, however, in a

70 — Bulletin 5 / 2013 — Identity —

On October 2, 1984, in the first round of voting and with 124 of the 244 votes, the United Chambers of the Federal Assembly elected Elisabeth Kopp the first woman to join the Federal Council.

Switzerland’s first female council leader in her office in Zumikon, 1978.

privileged position because I was inde- Yes, absolutely. Everywhere I got involved, This is especially true in the executive pendent. I was under no obligation to from the municipality level to the cantonal suites, which, as far as I know, are any lobby, and I was not on a board of department of education and the Federal occupied by few women (only 4.5%). So I directors. Council, I was the first and only woman. would consider it an advantage for a As such I had to contend with the fact that company these days to distinguish itself my male colleagues – especially in the by offering women equal pay for equal Federal Council – were not used to women work. My attitude about that will never Our four official languages opposing them or giving them clear change. Qualifications are the important instructions. That would be completely thing, not gender. Women can be CEOs and the peaceful different now. of major corporations, just as men can be coexistence of people from nursery-school teachers. different religions continue So you think it would be easier? Certainly. People have gotten used to Would you run for Federal Councillor in to define our identity. women in these roles. Women are more this day and age? self-confident now and they value good Yes. No doubt about it. education. Fifty-one percent of today’s university graduates are women. In my Do you think that women in politics are seen opinion, the situation for women in as less of a contradiction in Switzerland politics, where their votes are essential, This interview was conducted on October 28, today than they were in your time? is better than that of women in business. 2013.

Photos: Personal archive of Elisabeth Kopp; Marlis Frei / Blick / RDB Bulletin 5 / 2013 — 71 — Identity —

Caran d’Ache has been in business since 1924, manufacturing products ranging from crayons for children to stationery for discerning writers. This motif was used primarily in its newspaper advertisements in the late 1920s.

72 — Bulletin 5 / 2013 — Identity —

Confoederatio Helveticash The Swiss brand is worth its weight in gold. Customers are happy to pay a premium for “Swiss Made” products, but then they also expect more. By Andreas Christen, Philipp Hänggi and Damian Künzi

dentity, in the sense of a cultural of at least one percent annually thanks to essentially Swiss product and associated background, is growing more and the Swiss brand. with such values as precision, quality and more important in this era of global- It’s not surprising that the brand’s design. This is not a given. Countries such ization and standardization. It’s no economic desirability attracts free riders. as France and Germany likewise have tra- wonder, then, that all things Swiss are Various companies promote their products ditions of clock making, and some Swiss Imaking a comeback. Unfashionable in as being Swiss made, although most or all watch brands have roots abroad. The ex- certain circles in the ’90s, “Swissness” and of the production takes place abroad. cellent framework conditions and the “Swiss Made” are once again riding high. craftsmanship of the local workers helped This trend is apparent in more than great- Greater Protection for “Swiss Made” Switzerland develop a clock-making clus- er interest in traditional cultural assets, These products and companies threaten to ter during the 19th century. such as Schwingfest Swiss wrestling con- water down the brand, which would harm Groundbreaking innovations helped tests and greater concentrations of flags at manufacturers of genuine Swiss products, put Switzerland on top of the global watch Swiss national team soccer matches. In- as well as the national economy. Therefore, industry. Rolex, for example, constructed creasingly more companies are jumping on after several years of haggling, the Federal the first waterproof and dustproof case in the Swissness bandwagon. The number of Assembly finally approved Swissness 1926, dubbed the Oyster. A Rolex Oyster brands using the word “Switzerland,” guidelines in June 2013, which regulate came along for the 1927 swim across the “Swiss” or something similarly Helvetian the use of the Switzerland brand and pro- English Channel, which did much to more than quadrupled between 2000 and tect it better. When a company wants to make the product a success and burnish 2010, according to the Swiss Federal Insti- add “Swiss Made” to its brand, at least 60 the industry’s image. In 1960, Swiss re- tute of Intellectual Property. The iconic percent of the manufacturing costs of in- searcher Jacques Piccard attached a Rolex Swiss cross has long since been embla- dustrial products, including research and to the submersible he used to descend into zoned on much more than just the Victo- development, must accrue in Switzerland. the Mariana Trench. Omega, in turn, en- rinox Swiss army knife. For food products, 80 percent (by weight) tered the history books with the first watch must originate in Switzerland, with the to be worn on the moon. Swiss Watches: Precision at a Price exception of milk products, which must be The great interest in the Switzerland 100 percent Helvetian. The Price of Regulation brand is based on more than just a re- The law now defines what may be Watches from Switzerland have earned an awakened sense of patriotism. Many labeled “Swiss Made” following strict excellent reputation over the years, which Swiss companies are profitably relying on technical criteria. A couple pages of legis- has rubbed off on the “Swiss Made” label globalization to escape the tight domestic lative text are not enough to safeguard the and made it practically mandatory, espe- market. And they’ve noticed that Swiss- success of the “Swiss Made” label, how- cially for mechanical watches and high- ness pays dividends. Studies have shown ever. As with every other brand, the val- end watches. Venerable brands from other that, although Swiss products are consid- ues associated with “Swiss Made,” such as countries, such as Italy’s Officine Panerai ered expensive, people around the world reliability, tradition and exclusivity, are and America’s Hamilton, now routinely are prepared to pay a premium for certain inextricably linked to the products them- produce their watches here. products. Consumers are willing to pay selves. Only when the products conform The Swiss Made label has strict stan- an average of one-third more for Swiss to the high standards can the brand mes- dards, which were established as a trade chocolate than for chocolate without a sage be communicated credibly and suc- ordinance during the Quartz Crisis of designation of origin. The “Swissness bo- cessfully. The watch industry provides a 1971 and tightened through the federal nus” for luxury watches is 50 percent in good example. government’s Swissness guidelines. These most places, and it’s even significantly In the high-end wristwatch seg- standards require geographical concentra- higher in parts of Asia. Studies estimate ment, mechanical watches in particular tion to such an extent that it seems to run that the Swiss annual GDP sees a bump are seen throughout the world as a quint- contrary to globalization and the laws

Bulletin 5 / 2013 — 73 — Identity —

Classic Swiss Companies in Pictures 4 8

Many Swiss brands – not just Toblerone and Ovaltine – are dear to Switzerland, and some are famous around the world. And most of them have been around for years. Bulletin asked some companies to look in their archives for old photos, illustrations and films. Here is a selection of the nostalgic images.

1

1 Emmental is synonymous with Swiss cheese 5 around the world. Unforgettable Swiss skiers in their Swiss cheese ski suits: Paul Accola (left) and Franz Heinzer at the unveiling in 1992.

2 Wisa Gloria has been making toys for more than 130 years, staying young despite a turbulent company history. 1965 catalog.

3 Kambly was a village bakery in the Emmental region in 1910; now the cookies are sold inter- nationally. Tradition is important. All three generations of the company’s presidents have been named Oscar Kambly. 1951 advertisement in the arts magazine “Du” promoting the Butterfly 2 6 as the world’s thinnest cookie.

4 Zweifel and chips are inextricably intertwined for Swiss consumers. The chip producer is a family firm. This ad is from the mid-to-late 1960s.

5 Pfister furniture has influenced the aesthetics of Swiss households since 1882, helping prevent Switzerland from being confused with Sweden and IKEA. 1961 catalog.

6 Since 1871, Zimmerli has meant lingerie that women prefer to show off – like Nicole Kidman did in the film Eyes Wide Shut. 7 7 Victorinox has shown the world since 1884 that Switzerland is a) a cutting-edge country 3 and b) has an army. The legendary Original Swiss Army Knife is now part of a wide range of products. 2006 postage stamp.

8 Trisa produces more than one million tooth- brushes every day, along with other household brushes, hairbrushes and accessories. Long in the tooth: The same family has run the company for four generations. 1975 ad.

74 — Bulletin 5 / 2013 Photos: Images from company archives; Photo 1: Archive / Keystone; Photo 6: Bureau L.A. Collection / Sygma / Corbis / Dukas — Identity —

of economics. Because of the minimum content definition designed to protect do- mestic industry, certain individual pro- Pearls of the Economy duction steps have to be performed here (such as watch band production), even 99.7 percent of all companies in Switzerland are SMEs. though Switzerland is at a competitive dis- Here are three typical Helvetian examples. advantage in these areas. The Swissness By Claudia Hager and Simon Brunner guidelines’ strict requirements intensify this, which especially impacts the watch companies in the lower price segments, as they have to pay closer attention to pro- Innovation rail. The latter is the world’s first portable duction costs. The opportunity to stamp lift. HighStep Systems is doing pioneer- final products “Swiss Made” should justify HIGHSTEP SYSTEMS AG, ing work in the best Swiss engineering the effort involved in keeping certain pro- ZURICH tradition. duction steps in Switzerland. Applications abound for the climb- Development and sales of climbing ing and lift systems, from cranes and George Clooney Is Certainly Not Swiss and lift systems power pylons to high-bay warehouses, Other industries in addition to the watch wind towers and shafts. “We are the only industry benefit from a Swissness bonus, company that can retrofit lifts to existing including typically Swiss products such as structures,” explains Maurer. This means chocolate and cheese. Despite its strength, that the company is working in a very the Switzerland brand is not one size fits promising market. In Europe alone, all. In business-to-business fields like en- there are more than a million electricity gineering, it’s difficult to convert Swiss- pylons and approximately 100,000 wind ness into monetary value. CEO: Andreas Maurer turbines. It’s striking that many globally suc- FOUNDED IN: 2007 The potential is even greater when cessful Swiss firms from top industries, EMPLOYEES: 10 considering the larger markets. Although such as pharmaceuticals and medical tech- www.highstepsystems.com the company is relatively new, the 10-per- nology, barely emphasize Swissness in their www.svc-risikokapital.ch son operation has already successfully ex- message. And there are exceptions in the panded to other countries, first within consumer goods segment as well, which “There’s no reason nowadays why anyone Europe and, as of last year, to China and otherwise leans on the Swiss Made label. should still have to climb an 80- or India. “We are involved in expanding In- George Clooney is the face of Nespresso 100-meter-high pylon,” says Andreas dia’s 4G wireless network and are equip- capsules, and consumers are largely un- Maurer, 58, founder and CEO of High- ping thousands of telecommunications aware that it is a mostly Swiss product. In Step Systems AG. “Our systems offer towers with our rail systems,” says the fact, international surveys have shown that risk-free alternatives.” CEO. “We are particularly proud of this Swiss products are not usually seen as being Safety is essential to Maurer, not job, because it shows that Swiss products innovative or avant-garde. least because the idea for his business can make it on the international market as Hopefully, industries such as IT, came to him after his father had fallen well – as long as they are innovative.” pharmaceuticals, research and education from a ladder while harvesting cherries 10 Accordingly, the company values will focus more on Swissness in the future, years previously. “We asked ourselves why innovation highly. There is no downtime, so that consumers around the world will there were no really safe ladders even products are always being refined, and also think of these attributes when they see though many people have to work in ele- everyone is always thinking about new things that are Swiss made. vated locations,” explains the trained en- applications for them. They are introduc- gineer. The result of these deliberations ing a robot next year that is operated via was the foundation of HighStep Systems tablet or smart phone. It will serve as a in 2007, followed soon thereafter with the material transporter or can be outfitted development of a climbing system that is with cameras to take over certain moni- safer than traditional ladders and has er- toring functions. gonomic advantages. Technicians stand Like most Swiss SMEs, the compa- upright, can choose their own step length, ny is feeling the effects of the strong franc and can safely take a break when needed. and its customers’ fear of recession, but The key feature of the HighStep Maurer is cautiously optimistic: “Al- systems is an aluminum rail which is se- though the operating environment is like- curely connected to the structure along ly to remain difficult in the short term, the its entire length. The technician attaches growing focus on safety at work and the Andreas Christen, Philipp Hänggi and the mobile climbing equipment – either impending expansion of infrastructure Damian Künzi work at Credit Suisse’s Swiss the basic model with which the techni- around the world will ensure that our rev- Industry Research. cian propels himself or the lift – to this enues rise over the long term.”

Photos: HighStep Systems AG Bulletin 5 / 2013 — 75 — Identity —

Precision Post board of directors. The 24 Heures son, Sandro Vanini, established “Sandro newspaper wrote in a profile of her that Vanini SA” in 1960, with his namesake MPS MICRO PRECISION Nicola Thibaudeau is a mover and shaker company specializing in fruit products, SYSTEMS AG, BIEL in the industry: “Her employees really hit including candied chestnuts. the jackpot with her.” Beatrice Fasana Arnaboldi, 44, Microtechnology Under her leadership, MPS has took the helm of the company one year been modernized, doubled its turnover ago. “We are bound to tradition, but we and created more than 100 jobs. She is are finding our way into the modern currently busy integrating an acquisition world,” says the Ticino resident. Sales of from the Bernese Jura. What does she the sweet chestnuts are down slightly, think of Switzerland? “The level here is but they are difficult to export because incredibly high. I was impressed from the the high sugar content drives up the ex- very beginning by our employees’ techno- port duties. CEO: Nicola Thibaudeau logical expertise.” Today, Sandro Vanini processes FOUNDED IN: 1936 hundreds of tons of chestnuts every year; EMPLOYEES: 350 meanwhile, sales of products made from www.mpsag.com grated citrus peel or candied fruits and Modern and Traditional mostarda di frutta are even greater. The The search term “Swiss precision” gets company sells up to 70 percent of its 340,000 hits in Google. As expected, SANDRO VANINI SA, products as house brands for department precision is considered to be a key Swiss RIVERA, TI stores in Switzerland (and at Migros and virtue – far above punctuality (“Swiss Coop supermarkets) and abroad. The fa- punctuality”: 10,900) and discretion Fruit specialties mous Ticino sauce made of candied fruit (“Swiss discretion”: 2,500). and mustard-flavored syrup and served One company contributing to Swiss with boiled meat or cheese sells especial- precision’s excellent image is Micro Pre- ly well in Germany. More than 50 per- cision Systems AG (MPS). The Biel- cent of sales come from outside Switzer- based operation manufactures tiny com- land, including a few extraordinary ponents, such as ball bearings just a few customers. For example, entire contain- millimeters in diameter, spinal screws, er-loads of chestnut puree are shipped to micro dosing pumps and pilot bearings. CEO: Beatrice Fasana Arnaboldi Hong Kong to be used for a restaurant’s Nicola Thibaudeau, CEO of MPS, FOUNDED IN: 1960 signature chestnut cake. explains, “We build tiny parts that have EMPLOYEES: 45 For more than 30 years, Sandro to be exactly right.” These days, MPS (up to 70 during the peak season) Vanini has belonged to the Haecky earns two-thirds of its revenue abroad. www.sandrovanini.ch Group in Reinach. A new production lo- The client profiles have a lot to do with cation was recently acquired at Monte the region, however, and can be traced There are countless stories about the ori- Ceneri in Rivera. A wealth of new prod- back to the local watch manufacturers gin of the marron glacé, but it is certain ucts are in the pipeline, including a salty and high-tech operations. The company that the chef who served Louis XIV chestnut pesto and a chestnut cream with was founded in 1936 and rose to fame as (1638–1715) did boil chestnuts in sugared chocolate. Arnaboldi confesses, “I adore Miniaturwälzlager AG when it manufac- water. Marron glacé fans also inhabit the marrons glacés. They are so sinfully de- tured the world’s smallest commercially pages of literature, such as the title char- licious.” available electric motor. acter of The Lady of the Camellias (1848) Germany’s Faulhaber Group ac- by Alexandre Dumas, fils. They were the quired MPS in 2003, and motor produc- only gift she would accept. tion was moved to another company in Those who indulge in candied the group. Nicola Thibaudeau, 53, thor- chestnuts in Switzerland are more than oughly oriented MPS toward precision likely enjoying a Sandro Vanini product. technology. “My favorite product is a tiny Not only were marrons glacés a delicacy dosing pump,” she says. After being im- of the French court, but they are also con- planted under the skin, the pump contin- sidered a Ticino specialty. The Vanini ually releases medications. “This tiny lit- family has a long history of making can- tle device saves lives." died chestnuts. In 1871, Sandro Vanini’s Nicola Thibaudeau grew up in Que- grandfather purchased the Offelleria San bec and studied mechanical engineering Carlo pastry and candy shop in Lugano, at the University of Montreal. She moved laying the foundation for the chestnut- to Switzerland in 1990 for professional based empire. His father took over in reasons, and in addition to her role as 1904, introducing marrons glacés pro- CEO at MPS, she is now on the Swiss duction in Switzerland. And finally the

76 — Bulletin 5 / 2013 Photos: MPS Micro Preciscion Systems AG; Sandro Vanini SA — Identity —

Rivella’s manufacturer calls it “the official thirst quencher of Switzerland.” The drink is certainly very Swiss – it contains whey. This ad is from 1953.

Bulletin 5 / 2013 — 77 Know Your Switzerland If you want to become a Swiss citizen, you will need to know a bit about your new country. How much do you know? The canton of Aargau puts you to the test with these naturalization exam questions.

1 Which chamber of the federal parliament is composed of seats in proportion to the population of the cantons?

a) The Senate b) The Federal Assembly c) The National Council2 d) The Bundestag Which is an important natural resource in Switzerland?

a) Large gold deposits in central Switzerland b) A large water supply to operate hydroelectric power plants c) Valuable natural resources (crude oil, coal) d) Large fish populations

3 When did the last nationwide general strike occur in Switzerland?

a) 1870 b) 1918 c) 1950 d) 1968

4 How many political municipalities were there in Switzerland in 2010?

a) Approximately 50 b) Approximately 200 c) Approximately 2,700 d) Approximately 8,000

5 What is the distribution of wealth in Switzerland? The wealthiest one percent owns approximately …

a) 10 % … b) 20 % … c) 60 % … d) 90 % … … of the total assets. — Identity —

“No One Knows What to Expect.”

6 Switzerland is a member of which international Are you in debt? What do you eat? organization? Do you know any Swiss citizens a) NATO (North Atlantic Treaty Organization) (if so, can you prove it)? Walter Leimgruber b) The Council of Europe on naturalization questions. c) The UN Security Council d) The European Union (EU) Interview: Simon Brunner

7 What is the election cycle for seats in the federal parliament? Is the number of naturalizations increasing or decreasing? a) Every 6 years In 2008, the number of regular naturalizations had quintupled over the previ- b) Every 2 years ous 20 years, but now it is decreasing again. There is also a large disparity c) Every 4 years among the municipalities. The proportion of foreigners that are naturalized in d) Every 7 years the regular process is dropping in areas where the population is decreasing. While municipalities with a population of 100,000 or more have a naturaliza- tion rate of over three percent on average, municipalities with a population 8 What made Kaiseraugst politically famous between 5,000 and 9,999 have a naturalization rate of under two percent. One in the 1970s? in four municipalities has naturalized less than ten people in the last twenty years, and one in twenty-five municipalities has never granted citizenship to a) The opposition to the planned nuclear power anyone. plant in Kaiseraugst b) The bridge across the Rhine Each municipality regulates its own process. What are the biggest c) It was a meeting place for the Aargau youth differences? movement Municipalities have wide discretion, especially in determining “suitability.” In d) It was a center of Roman theater some municipalities, applicants are accepted only if they can speak the local language, while in others, they are rejected if they receive social benefits or are in debt. Applicants in some municipalities must hold sufficient knowledge about the municipality, and in others, applicants must be able to prove that they have contact with Swiss people. Hobbies, membership in a local club and volunteer 9 work can be factors in the decision-making process. Even the applicant’s choice What is the Federal Council’s most important of clothing, cooking and eating habits or “good reputation” can have an impact responsibility? on determining their suitability. One thing is for sure: No one knows what to expect in the naturalization process in each municipality. Every once in a while a) Officiating as a judge for legal issues the media picks up on seemingly bizarre isolated cases, such as when the Fed- b) Enacting laws eral Supreme Court had to consider whether the lack of a landline telephone c) Leading government affairs might indicate a failure to integrate. d) Governing the cantons

How often are tests conducted, and what is their purpose? There is no list of municipalities that conduct tests and there is no uniform standard that is used for the tests. However, municipalities tend to rely on test These questions were taken from the naturalization test in results when determining the applicant’s suitability because negative decisions the canton of Aargau, where applicants have 40 minutes must be justified. Tests on applicants’ knowledge of the local language and to answer 45 questions. There is no “pass” or “fail.” Officials politics are common. of the municipality discuss the results during the subsequent naturalization interview. View the entire test at: How much does naturalization cost? www.einbuergerungstest-aargau.ch The total cost can run between 1,000 and 3,000 francs.

Answers: 1 2 3 4 5 6 7 Walter Leimgruber is President of the Swiss Federal Commission c) b) b) c) c) b) c) 8 9 on Migration as well as a professor and Head of the Institute for a) c) Cultural Studies and European Anthropology at the University of Basel.

Illustration: Crafft; Photo: Marion Nitsch Bulletin 5 / 2013 — 79 — The Last Page —

The Specter of Unemployment

2013 Credit Suisse Worry Barometer: For the last 11 years, Swiss people have been most worried about unemployment, even though the unemployment rate has never exceeded 4 percent during this time (see page 38).

Jörn Kaspuhl is a Hamburg-based illustrator. His work has appeared in such publications as The New Yorker, Monocle, GQ , Wired and Der Spiegel.

80 — Bulletin 5 / 2013

Mal wieder ein Buch lesen? Einen Krimi oder einen Thriller? Psycho- thriller oder Politthriller? Realitätsnah oder rein fiktiv? Mit oder ohne Happy End?

Das Leben sollte wieder einfacher werden. Gewisse Entscheidungen werden Ihnen leicht gemacht: Sympany bietet Ihnen einen persönlichen Service und Versicherungen, die einen umfassenden Schutz garantieren – für Singles, Familien und Unternehmen. Entdecken Sie die erfrischend andere Versicherung. www.sympany.ch