Berlé, Luxembourg, Photos, 1940-1945

That's how it was! Interesting pictures

Berlé, Luxembourg, Photos, 1940-1945

Collier County, Jackson Labs and Economic Development.

The withdrawal of the free land offer for Jackson Labs in Collier County probably means the end of the affair. I have watched in disbelief the delicate maneuvering, shrouded in secrecy, with which local authorities tried to sell the JAX concept. I watch without surprise the disintegration of those strategies.

I have expressed my opinion here once before, based on my experience as former director of the Luxembourg Board of Economic Development. This agency helped save that country's one-legged economy when its 100 years old steel production collapsed within months in 1975. Today Luxembourg, diversified, has the highest per capita income on Earth.

So what is Collier County to do to achieve similar success, and why is the JAX experience ending in a fiasco? Collier has a policy called "Project Innovation", launched in 2008. It has failed so far, because of two reasons:

1. The JAX project became such a focus, that it ate away time, energy, money and good will in the community. It had become a political project, not an economic one. Lessons got learned the hard way through dramatic failure and lost opportunity. In the meantime, Collier County's unemployment rate shot up from 8% in 2008 to 13.5% now, way above national average.

2. Project Innovation seems centered on declarations of intent, proclaiming high goals such as bringing high paying jobs to Collier. Such goals remain elusive, without an action plan and adequate tools. It takes an enterprise to create high paying jobs. It takes action to create an enterprise and a set of tools to help out.

For Collier's action plan, we have first to realize that we live in a global world. Enterprises with high paying jobs have choices. We are competing with the whole world. There are three basic possibilities to get new activities to Collier:

1. Convince existing companies from anywhere in the world to move here.

2. Convince local companies to expand here.

3. Incubate local start-ups.

Companies will scrutinize the world and look to Collier for the following competitive advantages:

· Cash incentives, which means tax dollars. They are a key element in international competition, and amount up to 33% of a company's capital needs in most of Europe! Generally young or start-up companies need those. We know about principled opposition here to spending tax dollars, as was visible from the JAX project. Therefore it is fundamental for Collier to decide whether cash incentives are available as a tool. If the vote is no, Collier votes itself out of a certain worldwide league. It is one thing spending on a non-profit organization that has been singled out to receive $260 million and that won't pay taxes. It is another to support economic innovation, a program that is available to everybody, creates jobs immediately and has a verifiable return on investment for the community. It can be explained that spending $1 on economic development, will generate maybe $2 or more in tax revenue. A win-win for public finances and everyone's tax bill.

· Tax incentives. As a County, Collier is two steps removed from sovereignty. Therefore it has limited leeway in tax matters. However some local costs assimilated to taxes such as those incredibly high and unusual impact fees are claiming loud and clear: Collier is not open for business. They have to go.

· Transparency, means that the rules above apply to everyone equally, are easily understood and are open to public scrutiny. Somehow, that didn't apply to the JAX project. It is all about the rule of law, the certainty that it is equally applied to everyone, and that a predictable and stable government will still be there tomorrow.

· Infrastructure, responds to the question: are we prepared to accommodate a company moving to Collier tomorrow? Are developed land , buildings and access to communication available? Private initiative has seized upon that vision. I have visited recently one state of the art land development at Exit 101. Where private initiative is lagging, government has to provide economic zones and not to neglect, an incubator for start-ups. If we don't build it, they won't come.

· Collier has two weak points: Venture Capital and loans as well as a lack of R&D linked to higher education. But Rome wasn't built in one day.

· The emotional argument can be a winner for Collier when a company reaches the final question: do we really like to move to Collier County? Would people we hire and their families be happy there? Luckily quality of life here will help us.

As a consequence, a one-stop shop is needed to promote Collier as the place to do business in an engaging, competent and uncomplicated way. The one-stop agency may be EDC, but without all the tools in the toolbox, it will fail. Success needs a clear political decision about which cash incentives, subsidies, tax incentives, fee waivers, etc. will be available besides Federal and State aid, before thinking about any serious prospection to start.

Prospecting what and where? The short answer is anything, everywhere. Obviously "clean" comes first such as information technology, clean energy, biomedical, medical devices. "Where" defines "fishing grounds", most likely highly developed areas in the US, Europe, maybe Japan and Korea, without forgetting Naples. The process has to be transparent and fast. It should be elaborate to the point that within a day a letter of intent detailing conditions, support and incentives could be delivered to a prospect. That's only possible if all the tools above are ready in the toolbox. For JAX they were not.

And once we got a prospect, never let loose, show that we mean it, that we would love to have them here and they will return the love. Then let the world know why Collier is open for business.

Miami University Luxembourg: Dr Warren Mason Luxembourg Scholarship Expendable Fund

Read it all here: very good news for the future of Miami University Dolibois European Center.

http://www.oxfordpress.com/news/oxford-news/bequest-supports-miami-glee-club-scholarships-other-1062949.html

Ambassador to Luxembourg Cynthia Stroum Resigns: We call her Madam.

AllGov - News - Ambassador to Luxembourg Resigns: Who was Cynthia Stroum?

Of course we all learned the news with surprise and sadness. But first let's get to you, at AllGov - News, a little lesson of etiquette: You don't say: "Who was Cynthia Stroum?" you have to say: "Who is Cynthia Stroum?" And please, call her Madam.

I'm personally disappointed, because I believed that Madam Stroum was godsend (no reference to anybody), and would help evangelize Luxembourg on Venture Capital and risk taking and charities and more. Instead, we are headed for another musical on Broadway to come out of this short mission to Luxembourg.
However short it was, she is going to be missed.

Luxembourg gives large aid package to Burkina Faso

It strikes me how much Luxembourg is spending under the responsibility of one Department: the Ministry of of Cooperation and Humanitarian Action headed by Marie Josée Jacobs. Here $84 million, according to the Washington Post.

http://tinyurl.com/6dkz4t6

This is not the only big ticket from the same Department. Similar numbers have been presented for other recipients.

http://egidethein.blogspot.com/2010/08/luxembourg-buys-hot-air-from-estonia.html

It's nice to have or to get those amounts. I would however point out two facts of life: Luxembourg itself has 15% of its population teetering in poverty, despite having the highest per capita BNP. The second is the otherwise debated usefulness of those programs and the dangers of misappropriation of those funds.

http://egidethein.blogspot.com/2009/11/luxembourg-lesson-of-democracy-that.html

Ah, the fact that some of the programs financed here are supervised by the United Nations! I'm so relieved to know that!

Luxembourg richest country in the world

There is such a thing like a tendency to bragging in Luxembourg mentality: we tend to be first most great excellent champions. Compensation I suppose.

World, you have to know this story.:

http://www.richestpersons.net/top-ten-richest-countries-in-the-world-2010/

OK, it is a little sensationalist, a broad public concoction. But we are the champions.

I had of course to make a choice: there was another survey out these days from the World Bank, where we got beaten by several others. The World Bank! How modest!

A leak in paradise

A leak in paradise

One unusual way in which banking secrecy can hurt people. A bad affair for the whistleblower. the bank and clients. Was it worthwhile for anyone?

The Anomalous Success of Luxembourg

A foreign look at Luxembourg, on Geocurrents.info by Martin Lewis.

http://geocurrentevents.blogspot.com/2011/01/anomalous-success-of-luxembourg.html

A very interesting analysis, without any make-up from official interviews. And at the end a good comment by "Aurelien"

UK and Swiss authorities to tackle tax evasion - 13 Jan 2011 - Accountancy Age

UK and Swiss authorities to tackle tax evasion - 13 Jan 2011 - Accountancy Age

Hard times stimulate creativity, and compromise. Such a compromise would not be possible if Switzerland were a member of EU.

US Ambassador to Luxembourg resigns

US Ambassador to Luxembourg resigns

Though we called her Madam! OK, we know the Public Affairs mill's jargon and what that explains. I couldn't have done it better. But really? You stayed for about a year, for a territory that makes almost 4 digits: 999 sq-miles. That's about 3 sq-miles per day!

We are going to miss you, Madam!

Here is the good part: welcome back to the US.

10% workers in Luxembourg are in poverty

10% workers in Luxembourg are in poverty

Pretty surprising statistics for a country that boasts among the highest per capita incomes in the world. Totally confusing and sounding like a failure (or is it excessive social protection?), is tha fact that unemployed workers are better off than the poorest workers!