Gastkommentar: Demokratie ist ein Standortfaktor: Firmen müssen sie fördern
Unternehmen sollten Beschäftigten ermöglichen, sich in der Kommunalpolitik zu engagieren, meint KfW-Chef Stefan Wintels. Er hat eine Initiative gestartet, die 30 Organisationen vereint.
The stability of a country's democratic system is a crucial factor in determining its success as a location for businesses and investments, according to a recent discussion at the investor summit of the German government. This point is often overlooked, despite the fact that it plays a significant role in attracting investors and ensuring long-term success for companies operating within a specific location.
For businesses, reliable frameworks and independent institutions are essential criteria when deciding where to establish their operations and invest.
Moreover, the assurance of resolving conflicts peacefully and in accordance with the rule of law is vital. If confidence in a country's political and institutional stability diminishes, investors may hesitate to commit to long-term involvement in that location. This can lead to an increased risk premium and higher capital and financing costs, ultimately making the location less attractive for businesses.
The impacts of this are not limited to individual companies, as a study by the Kiel Institute for World Economics reveals that countries with populist governments experience a significantly lower real Gross Domestic Product (GDP) per capita compared to countries without populist governments. After 15 years, the average GDP per capita in populist countries is typically around 10% lower than in non-populist countries.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
