Seven theses to make the successful model of Switzerland fit for the future

Switzerland was able to act from a position of strength during the crisis due to its successful model, but at the same time some weaknesses have been revealed. The momentum can now be used to make the successful model of Switzerland fit for the future and thus to be solidly positioned also in future crises. Switzerland's political system, its pronounced federalism with its principle of subsidiarity, its liberal economic system, its strong diplomatic relations, its capacity for innovation and, last but not least, the entrepreneurial spirit of its citizens offer particularly favorable conditions that must now be exploited, writes PwC Switzerland.

Seven theses for the Swiss success model

The following seven theses (including highly abbreviated explanations) show which measures can help Switzerland as a state and economy to emerge stronger from the current crisis. The full thesis paper is available at here download.

1. take advantage of the digitization push and promote new working models and further development of administrative practice in the digital age.
The experience of the Corona crisis has made the need for digital transformation and new working models evident. The crisis has shown how vulnerable the Swiss administration is when it can no longer collaborate physically. The political institutions must use this momentum to further accelerate the digital transformation at all three levels of government - not only to be better prepared for the next crisis, but also to make the state as a whole more efficient, smarter, more innovative and more needs-oriented (e.g., further expansion of digital interfaces between companies and the administration in direct taxation, digital citizen accounts, digital participation opportunities).

2. promote international cooperation to solve common problems together.
The current crisis has exposed the vulnerability of international supply chains. As an exporting nation, Switzerland is particularly dependent on functioning trade routes and international cooperation. It has an excellent diplomatic network and strong relationships and trade agreements - Switzerland must leverage this position in interaction with the internationally oriented Swiss economy and its relationships to adapt international agreements and make supply chains more robust and redundant.

3. strengthen Switzerland as a center of innovation and extend its lead
The Swiss economy is characterized by an enormously high level of innovation. The costly measures to support national trade and production as well as social security will, over a long period of time, force European neighbors to limit their investments in research and development. This is a valuable opportunity for Switzerland to further extend its lead in key areas through targeted support using existing or even new instruments.

4. using sustainability as a success factor and driving forward the transformation of the economy
It is to be feared that states will relax their environmental regulations to boost the economy in the short term. In this environment, Switzerland - supported by the accelerated digitization and its innovative universities and companies - can position itself as a pioneer in the area of sustainable transformation of the economy and innovative work models, and thus gain in attractiveness as a high-quality place to work, live, do business and visit.

5. further strengthen the resilience of the critical infrastructure and evaluate the need for digital sovereignty.
Significant infrastructure failures in Switzerland have not occurred. It is important to ensure the strengthening of national cyber security efforts in order to combat attacks on a broad front. Likewise, it is time to launch the discourse between business, science and politics on an interpretation of "digital sovereignty" that makes sense for Switzerland. By consistently building up its own defensive capabilities and technological competence, the security of sensitive information and Switzerland's digital sovereignty can be guaranteed.

6. develop transparent planning scenarios for future crisis situations
A key means of adequately countering future crises is the continuous development of plan scenarios. The earlier concrete dangers and potentially problematic trends in the health or security sector can be identified, the sooner effective countermeasures can be initiated and thus the most serious consequences averted. The international security situation will not improve significantly in the foreseeable future in the political, economic and also health sectors. Switzerland must prepare itself for the security situation in various areas through coordinated scenarios for any crises and build up the appropriate structures.

7. reflecting on strengths and making the Swiss success model fit for the future
The crisis has shown that cooperation between the players can be improved in certain areas. If we work on the identified weaknesses and build on the proven strengths, future challenges can be mastered - be it our old-age provision, the energy transition, the financial viability of the healthcare system or relations with the European Union and the international community of states.

Source: PwC Switzerland