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Wide world, narrow minds
In our service economy, competence-demanding services are regarded as the most rewarding. Shipping and logistic services may not be exceedingly high-tech, but are still demanding when it comes to safe operation, cargo handling, integration with logistic systems and environmental protection. The provision of such services ranks as Denmark’s largest export with 15 per cent of the total value, whereas shipping is the largest service export in the Norwegian economy.
The net freight income from shipping in 2004 amounted to DKK 16.7 billion in Denmark and NOK 18.3 billion in Norway. These rather similar figures have given rise to some very different reactions in political circles. In March, the Danish Minister for Economics and Business Affairs, Mr Bendt Bendtsen, launched a long-term plan to make Denmark the leading shipping nation in Europe – the “Blue Denmark” agenda.

The very same week, a whitepaper on taxation of shipping companies in Norway proposed to cancel all selective arrangements for the industry, enforce payment of all tax debt and effectively plug every opportunity for operation from foreign domicile. Shipping’s financial and human resources would be put to better use in the domestic economy.

Two different views and perspectives on the industry.
True, the Norwegian whitepaper was quickly banished to the political shredder, although the issue will certainly rebound from time to time. The disturbing thing about is, however, what happens when conventional economic theory is applied to a complex business.

For one thing, the group of prominent economists simply dismissed, without further evidence, the existence of a cluster of related maritime industries, a concept that has formed the basis of the maritime policy since the 1990s. And by diminishing the economic effects of the shipping industry, a postulation had been manufactured for the desired conclusion.
This school of economic theory does not exist in Norway only. It is from this academic quarter that shipping will meet its most damaging criticism, as it speaks the same language as the fellow-economists found in government ministries and other circles.

Such economic theory has the severe limitation that it seeks to impose a theoretical map on the real world. It needs to simplify, erase everything that cannot be quantified, it has no place for historical processes or cultural impact.
We, the promoters of shipping, should convey a different message to the politicians.

Politics is a means to achieve, to encourage the further development of a Nordic industry that controls 15 per cent of the world market. To promote a profitable maritime transportation industry that will ensure safe and efficient transport to the benefit of all other industries in our region and ensure environmental-friendly shipping.

We need a global trade policy as we need national strategies. As the “Blue Denmark” agenda sets down, there is much to be gained by addressing key issues like education, recruitment – and taxation – to foster entrepreneurship and innovation in Scandinavia’s largest service industry.

//Dag Bakka Jr