Good - But good enough?

Executive Summary

The COVID-19 crisis undoubtedly put a stop to economic and social activities in Switzerland. And yet, at the same time, it awakened creativity and innovativeness for many, while also providing an impetus for fresh energy.

The country has coped well with the first phase of the crisis. “We can [handle the] coronavirus,” was the proud claim made by Federal Council member Alain Berset after lockdown had ended. In fact, Switzerland and its economy have proved to be surprisingly robust in the face of an encroachment on economic and social life unlike anything seen since the Second World War. However, some weaknesses in the domestic economy have become apparent. As part of a globalised economy, Switzerland has not been immune to the consequences of interdependence: supply chains have been interrupted, gaps in digitisation discovered, and a thin capital cushion revealed. Examining how the country could come out of the crisis in a better position than it entered it was the subject of an initiative set up on an ad hoc basis by the Swiss Economic Forum in cooperation with IMD. Under the banner

SEF.Interactive, the two organisations sought to keep dialogue flowing between business leaders, politicians and academics in the absence of the usual conference calendar. SEF.Interactive aims to analyse the current challenges caused by the lockdown. In the early summer, over 200 SEF participants forming virtual groups of varying sizes, took the time to describe their experiences during the crisis and formulate possible solutions. They looked at the road ahead and made suggestions as to how Switzerland could better manage future crises: for example, by investing in education and digital technologies, or by having more agile companies and a more flexible Swiss state. This might be a state that not only has physical borders but also virtual regions beyond its frontiers, conceived as a way to better combat pandemics.

The participants also looked into the question of whether family businesses are better able to survive crises (answer: ‘yes, but...’) and how big governments should be (answer: ‘enough, but not too much...’). They discussed what true customer proximity means (answer: being faster and more reliable than the competition) and what leadership in crises really signifies (answer: communicating and empowering employees). The conclusion is that yes, Switzerland has come out of the crisis in good shape (for the time being) but can do even better! This paper summarises the main findings. The discussion was supplemented by a survey covering current issues sent out to all participants. The results can also be found in this white paper.