Rolf Schroeder: 2004 - 2029 - X An Interview with S. Flor
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Rolf Schröder: Do you think they are right?
S. Flor: Well, there is a grain of truth in this assertion, but I think, it
is a very small grain. The introduction of regional markets are a major
reason for the fact that those who had been marginalized during the
globalization process of the old one-dimensional economy - people who are
providing labour-intensive services - were able to take their places in the
centre of our society. The introduction of this "annex", as you called it,
made it possible to put the sphere of economics back in its place. Whereas
the old economy produced an infinite flow of unsatisfied needs which
resulted into a self-enforcing process - the hypertrophied growth of the old
era had very little to do with real social and ecological problems of this
time. Regional markets stabilized this process.
Rolf Schröder: Does dual economy mean that the focus of the traditional
sector is on the provision of capital goods and consumption has become a
local issue?
S. Flor: A large part of consumer goods now comes from regional market
sources. As I pointed out earlier on, this is not solely regional market
production; hairdressers and vineyards also sell their products also against
global money. Of course, traditional industrial producers also offer
consumer products. The economies of scale are still an important factor. On
the other hand, local products are very often of superior quality. The two
sectors compete with each other. The standard of local production has
largely benefited from the development of appropriate technologies. Only
with adequate equipment is regional production competitive. And this
equipment has to be financed, financed in Euro currency.
Rolf Schröder: Are the revenues from sales sufficient to finance the capital
base? Can your hairdresser manage to buy the things he needs for his trade.
S. Flor: I am sure he can, but this is a case where capital intensity is
pretty low. When more capital is required people usually join together and
found co-operatives. These are eligible for financial support - loans and
also grants in Euro currency.
Rolf Schröder: You mentioned that the two sectors of the dual economy
compete with each other. If regional producers get - on top of the fiscal
benefits - also these financial subsidies they are privileged in an unfair
manner.
S. Flor: Do not forget that the regional economy is subject to a number of
constraints: there is the spatial as well as the time limit to transactions
in this sector, and people cannot make a profit, they cannot accumulate
wealth - the benefits are just a small compensation to these limitations.
The subsidies for co-operatives also provide an adjustment to the social
cleavages we inherited from the old one-dimensional economy. You are
certainly aware of the fact that the centrifugal forces of your time
marginalized very many people. To reintegrate those who have been and who
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