Swiss Vocational Education

and Training Switzerlands Source of Richness

Rudolf H. Strahm

www.bjinstitute.org
PDF of this brochure available at: www.bjinstitute.org/vet

THE RAJENDRA & URSULA JOSHI CHARITABLE FOUNDATION

www.joshi-foundation.ch

Rudolf H. Strahm - India Lecture Tour 2010

This publication is an excerpt of the book:
Warum wir so reich sind - Wirtschaftsbuch Schweiz
ISBN 978-3-03905-576-0 / Second Edition 2010. www.hep-verlag.ch
All sources of data are named in the book.
Graphics by Joel Kaiser, Bern and bj institute, Hyderabad
Front cover illustration: Atelier Mhleberg, Basel
Translation by Dr. Neelam Nagar - Neelams Sprachschule, Bern
Images: The Vishwakarma Apprenticeship Education Project,
Knowledge Transfer from Switzerland to India, ISBN 978-3-033-02369-7
published by Rajendra & Ursula Joshi Charitable Foundation and Bruno Jehle
Copyright Rudolf H. Strahm and Rajendra & Ursula Joshi Charitable Foundation
Published by bj institute, Aarau and Hyderabad
Printed in India, March 2010

Contents
About the booklet

Foreword

Press note

Switzerlands wealth

Economic growth and unemployment

14

VET and employability

20

The Swiss VET system

30

Wages and employability

38

Cost of Vocational education and training

46

Swiss productivity and International

competitiveness

50

About Booklet
Warum wir so reich sind Why we are so Rich in english is the title of the latest book amongst many
books Rudolf Strahm has authored relating economics.
Mr. Strahm asks his fellow economists: How do you explain this economic paradox that Switzerland
from the nineties until our current century had the lowest growth rate of all industrialised countries,
but still had the lowest unemployment rate and the highest employment quota in the population
and still has?
Following the common school book economy a low growth rate should result in high unemployment
a paradox between theory and economic reality. None of the academic models of the economy is
able to explain this paradox.
In his publication he explains the background for the lowest unemployment despite a low economic
growth in the last decade. He eillustrates the precise mechanisms in the workplace accuracy and ecient training ethos that had dominated the industrial culture and which led the country to wealth. He
explains it is the specic Swiss vocational training model and its success which enabled Switzerland
to maintain the competitiveness in this Globalization.
The booklet contains the lecture of Rudolf Strahm on his India tour in March 2010.
Thanks to Joshi Foundation for extending nancial support in publishing the booklet and Dr. Neelam
Nagar Lal for english translation.

bj institute
Plot 77, Syndicate Bank Colony,
West Marredpally,
Secunderabad 500 026
AP - India
phone +91 40 4013 1302
info@bjinstitute
www.bjinstitute.org

Rajendra & Ursula Joshi Educational Society

510, Anchor Mall
Near Ajmer Pulia
Ajmer Road
Jaipur 302006
phone +91 14 1401 2763
email2jes@joshi-foundation.ch
www. joshi-foundation.ch

Foreword
I have been a friend of India for the past 30 years. The rst time when I visited India, I was highly inspired by its rich and varied culture and the brilliance of its people, but at the same time I was moved
by the need for the social intervention. Since then I am involved in many social activities in India.
India has been developing in many spheres over the years and has become the centre of World Human Resources. Lately I realized that there is a need to empower the young Indian workforce with the
much demanded Quality Vocational Skills.
As a token of my long standing friendship with India, I have decided to bring in valuable knowledge
from Switzerland to India. It is the knowledge on Quality Vocational Education and Training of Switzerland.
In my endeavor to bring this valuable knowledge, I had the opportunity to meet Mr. Rudolf H.Strahm,
invite him to India on a lecture tour to speak about the Economical Success of Swiss Dual Vocational
Education and Training System. I was also introduced to Rajendra & Ursula Joshi Charitable Foundation in Zurich, who is planning and operating The Vishwakarma Pilot project in India on the same
lines of Swiss Dual VET System.
On behalf of the board of bj institute and my Indian partners and friends I thank Mr. Rudolf H. Strahm
for spending his time for the speech tour in India. I thank Mr. Rajendra Joshi and his wife Ursula Joshi,
all the Board Members and Ms. Achermann of Rajendra & Ursula Joshi Charitable Foundation for their
nancial and moral support without whom, this endeavor would not have been possible.
I would like to thank the Swiss Ambassador to India, Delhi, H.E. Mr. Philippe Welti and his team, CII
Delhi and Dr. Neelam Nagar for hosting the Delhi program. I also thank my friend Mr. Manoj Saha
of Dickenson intellinetics and his sta in bringing the Mumbai program to a reality. I thank the CII
Hyderabad, for inviting Mr. Strahm to deliver the Keynote address at the Inaugural session Skills Development Conclave 2010. Last but not the least I thank Ms. Amita Desai and Ms. Monika Hirmer of
Goethe-Zentrum Hyderabad for conducting a speech on their premises.

Bruno Jehle
8th March 2010

Press Note
It is an age-long observation that aspiration for progressive and dazzling careers has been the way of
life for all humans anywhere, anytime. Its the career-path and career-development, which makes
life more inspirational and interesting. However, it is not very easy to choose a career with a proven
path of prosperity. And, paradoxically, there are not many individuals or institutions to provide suitably able guidance in this sphere.
Though there are umpteen number of countries in the world, its only a selected few, which have
been prospering rapidly and progressively. One among such noted countries is SWITZERLAND. Barring a few inevitable uctuations here and there, the economic front of SWITZERLAND has always
been growing positively. The crystal clear reason, which may not be known to many, is the emphasis
there on VOCATIONAL Edication and subsequent application thereof.
India is a great country with a towering brilliance, coupled with richly varied culture and multifaceted
civilization. She has been a fond name across the world ever since. But despite many distinctive
noteworthy features, Indian economy has not been all that great and encouraging. If one can make
an objective analysis without getting into the details of dierent causative factors, an important fact
can surface that the prominence for the vocational front has been dwindling. It can, therefore, be an
understandable inference that the intrinsic, native and well-established age-long skills of multiple
multitudes are being rather pushed into somewhat a cold storage.
BJ Institute (www.bjinstitute.org) and Rajendra & Ursula Joshi Charitable Foundation (www.joshifoundation.ch) have hence realized the entire scenario and came closer to jointly spearhead a movement for the revival of the Vocational Activities. Having common GOALS and OBJECTIVES in the cited
direction, they have both thoroughly deliberated on the issue. To further the eorts, an AWARENESS
CAMPAIGN with speeches by Mr. Rudolf H. Strahm from Switzerland is organized in dierent Metros
of India viz Delhi, Mumbai and Hyderabad. The Speech tour would take place between 10th and 20th
March 2010. Under this unique educative programme, backdrop information would be sent to interested Institutions as well as the Media well in advance, in addition to the already available details at
website (http://www.bjinstitute.org/vet/).

Mr. Rudolf H. Strahm , who is the former Member of Swiss National Council (Member of Swiss Parliament), Author, also the Price Regulator of Switzerland from 2004 to 2008. He published his latest book
titled - Why we are so rich which vividly depicts the role of quality Vocational Training, which is the
strong pillar of Economic strength. In fact, Swiss Dual Vocational Education and Training (VET) is the
source of richness of Switzerland.
The purpose of the proposed Campaign is to explain the paradox of Switzerland having lowest industrial growth and yet lowest unemployment. The Dual VET System in Switzerland will also be
explained. This educative exercise would throw light on the Post-Schooling opportunities for the
comprehensive development of Individuals as well as the Country. This would facilitate the Industry,
Government and Professional/Trade Associations to play a pivotal role to be the progress partners.
On the whole, the purposes of this joint Campaign would be:

.
.
.

Propagation of the importance of Skills through Vocational Training

Exposure of the Swiss VET System and its success in India.
Equipment of knowledge for implementing VET in India.

Thus this campaign is aimed to be of utility to the Industry, the Government, the Civil Society and
last but not the least-the YOUTH craving for right careers. This would certainly be an appropriate
platform - enabling the Government to do things dierently on one hand and on the other, paving
way for the FUTURE MAN POWER of the country, the YOUTH to enliven their dreams of forging ahead
with condence.

1 Switzerlands wealth

1.1 The Swiss economy ranks among

the top International countries

Ranking of the international competitiveness, 2009

The Global Competitiveness Report

Rating 2009

Switzerland
USA
Singapore
Sweden
Denmark
Finland
Germany
Japan
Canada
Netherlands

10

Based on IMD
International Institute for
Management Development
World Competitiveness Yearbook

Rating 2009

Source: WEF / IMD Strahm / hep verlag

Based on WEF
World Economic Forum

USA

Hong kong

Singapore

Switzerland

Denmark

Sweden

Australia

Canada

Finland

10

Netherlands

From the business perspective the Swiss economy is classied among the
most competitive national economies of the world. Both in the world ranking according to World Economic Forum WEF (Geneva and Davos) and those
of the International Institute tor Management Development IMD (Lausanne)
it constantly ranks amongst the top group. The ranking changes slightly from
year to year due to subjective assessment conducted of managers and changes in the mainstream (the opinion of the day).

1.2 Switzerland in the league of the

richest countries of the world
Gross Domestic Product (GDP) in US-Dollar per head, 2008
Ranking calculated
with exchange rates
Luxembourg
Norway
Switzerland
Denmark
Ireland
Netherlands
Sweden
Finland
Austria
Belgium
USA
France
Germany
Great Britain
Italy
Japan
Singapore
Spain
Greece
Hong kong

Ranking compared to
purchasing power

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Luxembourg 1
Norway 2
Singapore 3
USA 4
Hong kong 5
Ireland 6
Switzerland 7
Netherlands 8
Austria 9
Finland 10
Denmark 11
Great Britain12
Belgium 13
Germany 14
Finland 15
France 16
Japan 17
Spain 18
Italy 19
Greece 20

Indonesia 55
Philippines 56
India 57

Indonesia 55
Philippines 56
India 57
0

20

40

60

80

One thousand US-Dollars

100

120

10

20

30

40

50

60

70

80

One thousand US-Dollars

Switzerland belongs to one of the richest countries in the world measured

against its GDP per head. In 2008 it ranked third with its GDP per head calculated with currency exchange rate and seventh against purchasing power. The
ranking changed according to currency exchange rate from year to year. Some
of the countries ranked ahead of Switzerland are exceptional cases (small
countries like Luxembourg, oil rich Norway).

1.3 Switzerland among the world

champions in export
Exports of goods in US-Dollars per capita 2008

44 700

Belgium*
38 400

Netherlands*
28 000

Ireland

26 400

Switzerland
21 800

Austria

21 300

Denmark

19 900

Sweden

18 200

Finland

17 900

Germany
9800

France

9100

Italy

7500

Great Britain

6100

Japan

4200

USA
1070

China

150

India
0

*Port-Transit- Countries

10 000

20 000

30 000

40 000

50 000
in US-Dollars

Measured per person of population Switzerland belongs to the strongest export countries of the world. Seen against the two exceptional cases Holland
and Belgium, which act partly due to their harbours as transit countries, hence
Switzerland ranks second after Ireland as export countries. The Swiss economy
is export-oriented and already signicantly globalised.

1.4 Switzerland amongst the top countries

with surplus foreign exchange
Balance of payments Surplus / Decit as percentage of Gross Domestic Product
(GDP) 2007
Decit

Surplus
14,8

Singapore

14,2

Hong Kong
10,2

China
Netherlands

9,5

Switzerland

9,3
8,3

Sweden
6,6

Germany
3,2

Japan
Denmark

2,0

Finland

1,0

Great Britain

1,7

France

2,0

India

2,5

Italy

3,2

Ireland

4,7

USA

4,7

Greece

14,4

15 %

12 %

9 %

6 %

3 %

0%

3%

6%

9%

12 %

15 %

Besides three Asian export countries and oil rich countries Switzerland has
the highest balance of payments surplus. The surplus budget is the sound
and convincing indicator for its international competitive position. It reveals
how many more goods & services were exported and imported per year. This
surplus achieved around 50 bn SFr. Approximately 9 % of GDP. This implies
that Switzerland had to invest abroad 50 Bn SFr. in 2008 saw the temporary
shrinking of the surplus as a result of the nancial crisis.

10

1.5 Swiss population is one of happiest

in the world
Collective indicator for peoples sentiment of happiness, 2004

Switzerland

8,0

Denmark

8,0

Malta

8,0

Ireland

7,8

USA

7,4

Great Britain

7,2

Germany

7,1

Austria

7,0

Italy

6,9

Chile

6,9

France

6,6

India

5,7

South Africa

5,6

Turkey

5,6

Kenya

5,5

Ukraine

3,6
0

unsatisfied

10

very satisfied

Switzerland belongs to the countries with the highest life contentment

amongst its population. The GDP is not the only measurement for quality of
life, as it only assesses the economic goods and their market price. Based on
the Collective Index of the World Data Base of Happiness, study conducted
by the Erasmus-University of Holland, above is the ranking list of the sense of
happiness. This comparison takes 95 countries into account based on gure
indicative of welfare and life quality

11

1.6 The Swiss wealth does not

originate from the banks only
Strong business sectors according to employees (2008)
and its contribution to the Gross Domestic Product (GDP) (2007)

Value added
in % of GDP

Employees
Wholesale and Retail business

524 000

11,6 %

482 000

Health care
Service Sector
for Enterprises

6,1 %

380 000

7,3 %

302 000

Construction Industry
Machine, Electrical / Electronics
and Metal Industrie ( MEM )

5,4 %

275 000

6,6 %

234 000

Hospitality

2,3 %

132 000

Banks and Financial Sector

Precision and Mechanical
Gadgets / Watches

9,2 %

98 000

Chemical Industry

3,0 %

00

10 12

60
00

00
50
00

00

00

00
40

00
30

00

4,2 %

00
20

10

00

00

70 000

Switzerland is rich as a result of its banks is the clich over Switzerlands national economy, is highly perceived both abroad as well as at home. The banking sector (without insurance) at the peak before nancial crisis had 3.3% of
the total employees and contributed 9.2% to the national economical value
added. The value added ratio of the banks as percentrage of the GDP decreased in 2008 as a result of the nancial crisis to 7.6%. The Swiss economy is
robust because its not monopolistic oriented rather multifarious sectors contributing profoundly to its wealth.

12

13

2 Economic growth and

unemployment

14

A paradox in the economy

2.1 Switzerland with the lowest

economic growth in the nineties
Rate of yearly average growth of Gross Domestic Product (GDP) from 1992 till
2005 (14 years)
7
6,4

5
4,5

4
3,3

3,1

2,9

2,8

2,7

2,6

2,6
2,3

2,3

2,2

2,1

1,9

1,9

1,9
1,3

1,2

1,1

1,1

n
trie
s
Fin
lan
d
Sw
ed
en
De
nm
ark
Ne
the
rla
nd
s
Au
str
ia
Po
rtu
ga
l
Fra
nce
Be
lgi
um
Ge
rm
an
y
Ita
ly
Jap
an
Sw
itz
erl
an
d

tai

-Co

un

ece

Bri

Gre

CD

all

OE

Gre

at

ay

ain
Sp

A
US

rw
No

Ire

lan
d
Po
lan
d

Over 14 years Switzerland has been at the rear end with its GDP in comparison with industrialized countries of the OECD (Organization for Economic
Co-operation and Development). Low economic growth was partially due to
production outsourcing abroad and appreciating of the Swiss currency value.
Only since 2003 the economic growth has ascended.

15

2.2 Despite the low economic growth

Switzerland still had the lowest
unemployment rate
Average unemployment rate from 1992 - 2005 (14 years)

16

15,3
14,0

14
12

11,6
10,2

10

9,8
9,1
8,5

8,4

8,3
7,3

7,0

6,7
5,9

5,8

5,4
4,6

4,5

4,2

4,0

3,6

Ita
ly
Gre
ece
Ire
lan
d
Be
lgi
um
Ge
rm
an
y
all
S
we
OE
de
CD
n
-Co
u
Gre ntrie
s
at
Bri
tai
n
De
nm
ark
Po
rtu
ga
l
US
A
No
rw
Ne
ay
the
rla
nd
s
Au
str
ia
Jap
an
Sw
itz
erl
an
d

lan
d
Fra
nce

ain

Fin

Sp

Po
la

nd

A paradox: Despite the low economic growth Switzerland still had the lowest
rate of unemployment compared with OECD countries. The explanation lies
in the closeness between labour market and educational system VET brings
higher employability. The OECD has standardized the unemployment ratio
making the comparison feasible: Registered unemployed work force in percentage against total number of the work force (ages 15-64)

16

2.3 Despite the low economic growth

Switzerland had the highest rate
of employment
Average employment ratio between the period 1994 and 2005 (12 years)

90
83

80

76

70

75

74

74

73

72

71

71

70

70
66

60

65

64
61

50

61

59

57

55

54

40
30
20
10

Sw

itz

erl
an
d
De
nm
ark
No
rw
ay
Au
str
ia
Jap
an
Sw
ed
Ne
en
the
r
Gre lands
at
Bri
tai
n
US
A
Ge
rm
an
y
all
Po
OE
rtu
CD
ga
l
-Co
un
trie
s
Fin
lan
d
Ire
lan
d
Be
lgi
um
Fra
nce
Sp
ain
Gre
ece
Ita
ly
Po
lan
d

A paradox: Despite the low economic growth Switzerland had and still has
the highest ratio of employment of its paid workforce, between 15 and 64
years of age, compared with OECD countries. The Swiss educational system
signicantly assists employability. The OECD includes all forms of employment
in the labour force participation ratio irrespective of full-time or part-time employment.

17

2.4 The countries with apprenticeship

system had lower rate of unemployment amongst its youth prior to the
nancial crises
Unemployment rates of adolescence between 15 24 years (only concerning the
youth who are no longer in vocational training), 2008 before the nancial crises
Industrialised countries with only theoretical
education without vocational training,
19% average
25

24
22

20

21

20

19%

17

15

14

14

14

incl East

25

5 industrialised countries
with vocational training
7% average

14

11

10

7%
7

nd
lla
Ho

an

an

erl
itz

Sw

ia

ark

str

rm
Ge

Au

nm
De

tai
n
Por
tug
al
Be
lgi
um

Bri

US

Gre

at

nce

ly
Ita

Fra

ece

ain

lan

Gre

Fin

Sp

Sw

ed

en

West

Countries which are conversant with apprenticeship system a combination

between apprenticeship in host company and vocational school have signicantly lower rates of unemployment amongst its youth. Switzerland, Austria,
Germany, Denmark and the Netherlands belong to the countries which offer
VET. Combined school/worked-based VET promotes and fosters practical intelligence and enables better orientation during the apprenticeship for employability. Single-track Educational System leads to more youth falling out of
the main stream. Above mentioned youth is excluded from the labour force
participation ratio.
18

2.5 Countries with vocational training

system still have lower rate of unemployment amongst its youth during the
nancial crises
Unemployment rates of adolescence between 15 24 years (only concerning
the youth who are no longer in vocational training), during the nancial crises,
autumn 2009
Industrialised countries with only theoretical
education without vocational training,
25% average

5 inustrialised countries
with vocational training
8% average

50

43

30

27

27

25%

28
25

23

20

22

20

19

19

incl East

40

8%
10

12

10

10
7

6
d
an
erl

itz
Sw

nd
lla
Ho

ia

We
st

str

ark

Ge

rm

an

y(

Au

nm
De

A
US

al
ug

Po
rt

in

Gr

ea

tB

rita

urg

bo

lan

em

nce

en

Lux

Fin

Fra

ly
Ita

ed
Sw

nd
Irla

Sp

ain

The VET based on the dual system proves superior even during economic
crisis concerning employability. The ve industrial countries with dual VET system had at the peak of the recession (second half of 2009) signicant lower
unemployment rates of adolescence, while Latin and Anglo-Saxon countries
with their full-time school had noticeably more unemployed.

19

3 Vocational Education and Training

(VET) and Employability

International and national Comparisons

Unemployment amongst Adolescence

Countries with VET system have the lowest youth

unemployment

20

3.1 Swiss Educational System is dicult

to be compared with other countries
Switzerland is exceptional with Baccalaureate
Rate of admission to University compared internationally, 2005 (the average age
of students completing Baccalaureate and Professional Baccalaureate indicated
in percentage)

97

Finland
91

Ireland
77

Italy

75

USA

74

Sweden
70

Japan
65

Portugal
61

Belgium

61

Country Average OECD

Holland

60

Denmark

55

France

52

Spain

45

Germany

41

Switzerland

26

0%

20%

40%

60%

80%

100%

Ratio in age groups

Compared to each other the educational systems of the countries are extremely different. The ratio of the youth, nding access to higher education,
with Academic Baccalaureate or a comparable Diploma of the secondary level
II, move in the range of 97% in Finland, but only 26% in Switzerland. In Switzerland Baccalaureate quota is divided in 18% Academic Baccalaureate and 8%
Professional Baccalaureate. The OECD education reporting and consequently
resulting in the Bologna model show that vocational paths are not being valued in the same way.

21

3.2 International comparison: Countries

lacking in apprenticeship system have
more youth without professional education training
Ratio in percentage between the ages of 18 24 without secondary level II
qualication (unskilled youth) in Europe (2007)
Portugal

36

Spain

31

Norway

21

Italy

19

Great Britain

17

EU-15

17

Greece

15

France

13

Germany

13

Belgium

12

Denmark

12

Ireland

12

Netherlands

12
11

Austria
Sweden

Finland

Switzerland

8
0%

10%

20%

30%

40%

50%

Countries which already know the apprenticeship system (dual system), do

have it easier in general to enable young people a customized complete apprenticeship with degree: for example Switzerland, Denmark, Austria, Germany, the Netherlands. In contrast, countries in Southern Europe and Great
Britain which do not offer this Dual system with practical vocational or occupational training , have difculties in enabling young people a degree.

22

3.3 International comparison amongst

youth: Countries with VET system have
the lowest youth unemployment
Rate of unemployed youth in percentage 15 24 years in Europe
(EU, autumn 2009)
Spain

42,9
28,4

Ireland
Italy

26,9

Sweden

26,8

Greece

25,2

France

24,7
22,5

Finland

21,5

Luxembourg

20,4

Belgium

20,6

EU-15

19,7

Great Britain

18,9

Portugal
12,0

Denmark

10,3

Germany
Austria

10,2

Norway

9,1

Netherlands

7,2

Switzerland

5,3
0%

10%

20%

30%

40%

50%

Countries with VET system have a lower rate of youth unemployment than all
others: Switzerland, Holland, Denmark, Germany. The VET system facilitates
a quicker integration of the youth in the labour market. Countries with only
theoretical education at secondary level II such as Finland, the Latin countries
and southern Europe have signicantly higher rate of youth unemployment.

23

Unemployment
amongst adults

An International Comparison

Unemployment rates by status of education

24

3.4 International comparison amongst

adults: Switzerland has the lowest ratio
of unskilled workers
Ratio of adult working population without post compulsory education
between 25 54 years in West Europe (2008)

70,0

Portugal
42,0

Spain

38,3

Italy

34,7

Greece
EU-15

25,7

Ireland

25,1

Luxembourg

24,4
24,0

France
Belgium

21,4

Great Britain

21,3

Netherlands

21,3

Denmark

18,2

Norway

16,5
15,1

Finland

14,9

Austria
Sweden
Germany
Switzerland
0%

12,4
11,1
9,8
10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

Compared with the European countries (EU-15, excluding new members from
the former eastern block) Switzerland has the lowest ratio of employed adults
without professional qualication, namely 9.8%. The Swiss VET system enables
even drop-outs from school and employees to achieve professional qualication.

25

3.5 International comparison amongst

adults: Rate of unemployment is lower
in countries with VET system
Percentage of unemployment rate amongst adults between 25 49 of working
population in West Europe (EU-15, 2008)

Spain

10,4

Germany

7,7

Portugal

7,4

Finland

7,3

Greece

7,2
7,0

France
EU-15

6,9
6,8

Italy

6,8

Sweden
6,3

Belgium
Great Britain

5,2

Ireland

5,2
5,0

Luxembourg
3,4

Austria

3,4

Switzerland

3,1

Denmark

2,8

Netherlands

2,7

Norway
0%

2%

4%

6%

8%

10 %

12 %

Countries with low unskilled workers quota also indicate a low rate of unemployment: Switzerland, Austria, Holland and Germany (enormous difference between east and west). Norway is a statistical exceptional case (shery,
crude oil exporter)

26

3.6 International comparison amongst

adults: Better the VET qualication
higher guaranteed integration into the
working life
Percentage of employed population among adults between 25 49 years
(= employment ratio) in Western Europe (EU-15, 2008)

Sweden

91,0

Denmark

90,5

Switzerland

90,0

Netherlands

89,6

Portugal

89,6

France

89,5

Finland

89,2

Norway

89,1

Austria

88,8

Germany

88,1

Belgium

87,5

EU-15

86,2

Great Britain

85,3

Luxembourg

85,1

Greece

84,2

Spain

84,2

Ireland
Italy
75%

82,8
79,4
80 %

85 %

90 %

95 %

Countries with a labour market closer to an educational system and VET system have a higher rate of employment. Early retirements from 50 onwards are
excluded here. The employability is strongly inuenced both through the VET
system and integration of working women.

27

3.7 Employees with vocational training are

the least vulnerable to be unemployed
Rate of unemployment amongst the various educational qualications; Statistically evaluated result of population survey conducted in 2000 (total population
census)
Compared to average rate of unemployment (= 100%)
200

170 %

130 %
100

100 %

= 100
80 %

60 %
45 %

0
Compulsory
School only
(unskilled)

Vocational
training

Higher
vocational
training
(master
training)

Secundary
Commercial
University
school level II school fulltime

Employees with basic compulsory education without apprenticeship or further

education (unskilled) have 70% above average rate of unemployment. In
average VET-graduates have 40% lower unemployability as the work force
(=100%). On the other hand, a purely academic education leads to a higher
rate of unemployment than graduates of apprenticeships.

28

3.8 Economic uctuations target the unskilled workers more than people with
professional qualications
Unemployment based on various educational level in economic process
Switzerland
Level of unemployment based on various educational level in economic process, 1991-2006
8%
7%
6%
5%
4%
3%
2%
1%

Unskilled

Professional qualications /
secondary level II

19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08

Academicians

West Germany
Rate of unemployment based on qualication groups in economic process, 1995-2004
30 %
25 %

Unskilled

20 %
VET / Degrees from professional colleges

15 %

University of applied sciences

total rate of unemployment

10 %
5%

08
20

05
20

00
20

95
19

90
19

85
19

80
19

19

75

0%

Educational training is the decisive factor how the economic cycle affect employment: During a rapid economic growth unskilled workers will be disproportionally employed. Yet, in a recession, they act as economic cycle buffer
and are frequently disproportionally dismissed like the economic principle
says: last in - rst out.

29

4 Swiss System of Vocational

Education and Training

30

Systematic educational system of Switzerland

4.1 The Swiss education system with theoretical and practical education and
training
The ocial systematic education model and dierent possibilities of achieving it

University of
Applied Science

Professional
College

Vocational
Baccalaureate

Academic
Baccalaureate

Federal VET Diploma (3 or 4 Years)

Basic VET (secondary -level / apprentice) in companies,

vocational schools, trade schools and commercial schools

General education schools

Baccalaureate

Pre-apprenticeship /Bridge-year courses

primary school
secondary level I

Quelle: Botschaft Bundesrat BBG Strahm / hep verlag

VET Certicate
(2Years)

University
und ETH

Compulsory education (primary school / secondary-level 1)

VET/PET
schooling

Academic
schooling

Compulsory
education

direct
access

Tertiary level

Adv. Federal PET

Diploma /
Federal PET Diploma

University level

secondary level II

Professional education and training

Access with additional

qualications

The above diagram shows the ofcial systematic efcient education model of
Switzerland.
Red: The theoretical and practical education with basic vocational training
(With the Swiss federal certied diploma), Vocational Baccalaureate, Higher
Technical Colleges and specialized colleges equivalent to University standard.
Blue: The entirely academic oriented education with Baccalaureate entry into
University or Federal Technical Institute.
Both educational ways are equally weighted but different side by side. The
interchangeability within and among the various ways of education is a key:
Every diploma opens further education possibilities.
31

4.2 Professional guidance the decisive

link between civil society and school
and the world of employment
Legal and institutional classication of tasks in the key function of the
professional guidance and integration in the labour market.

Occupational guidance
office

Regional employment
agency
Based on unemployment
insurances law
BCO and cantons are responsible

Based on VET Law

VET and cantons are responsible

Disability Insurance Office

Social
benefits

Based on Disability Insurance Law

BSV and cantons are responsible

Canton is
responsible

Delegates
responsible for Integration
based on law governing
foreigners

Strahm/ hep verlag

Integration into labour market

through
vocational education and training
and careers guidance

Professional guidance and individual coaching are key functions of effective

and lasting integration of young adults, unemployed, foreigners and disabled
in the labour market. This main task is carried out with the help of four different federal laws through various departments, which requires coordination
and inter institutional cooperation (IIZ). The social aid is regulated at cantonal
level.
32

4.3 The strength of Switzerland: Practical

training oriented Qualications are
quantatively predominant
Estimated ratio of education qualications at secondary level II and tertiary level
in percentage for the entire 2008.

Higher
VET / PET
25 %

No further education
at tertiary level
41 %

Professional Colleges 4 %

Qualications at tertiary level (above 20 years)

FH & PH
University
of Applied
Sciences

University
ETH
16 %

14 %

59 % with higher education (tertiary)

10 %

Professional

Basic Professional Education

(Apprenticeship, Commercial School)

Baccalaureate

11 %

63 %

Academic
Baccalaureate
and specialized
Baccalaureate
23 %

Quelle: BFS Strahm / hep verlag

Without
any
VET/PET
Qualication

Pre-Apprenticeship, Certicate 4%

Qualications at secondary level II (16 20 years)

90 % post compulsory education (Sec. II)

Courses with part practical training

Fulltime School

In 2008 on the secondary level II (between 16 and 20 years) from the

same age group, approximately 63% graduated with Federal VET diploma
EFZ or similar certication. 10% without any post-compulsory education,
4% Federal VET Certicate or pre-apprenticeship; and 23% with an
Academic Baccalaureate or Specialized Baccalaureate.
Tertairy level : 59% of all young people, per year, 16% graduated at University (Master and Bachelor), 14% at a University of Applied Aciences or at a
University for Educational Sciences, 4% at a professional college and 25%
with a higher VET (Federal Diploma of Professional Education and Training
or similar). Double counting Bachelor/Master is excluded here.
33

4.4 One Mission Three Partners

Professional
organisations
Curricula and
apprenticeships
Cantons / States
Implementation
and supervision
Confederation
Strategic management
and development

The Teaching points of vocational education (apprenticeship)

At Industry or enterprise: 3 to 3 days per week

At Vocational College: 1 to 1 days per week

Depending on business and industry

Optional college: in addition to 1 day per week; or during one year after
completing their apprenticeship leads to vocational Baccalaureate.
Inter-courses: 1-2 weeks per year (organized by trade associations).

34

4.5 Training Arrangements

Vocational education and training (VET)

In-company

training
In-school education
Industry courses
Professional education and training (PET)
National

professional examinations
for the Federal PET Diploma and
Advanced Federal PET Diploma
Professional colleges
Continuing education and training (CET)

35

4.6 List of Trades under the Swiss Dual

System Apprenticeship Education and
Training Scheme:
243 Trades in 22 Vocational Fields
Example: 17 Trades in the Vocational
Field Metal, Machines

Engineering Construction
Technician
Gunsmith
Optical Systems Technicion
Foundry Moulder
Foundry Process Operator
Mechanical Engineeering
Technicians
Cutler/Knife Maker
Metal Worker
Sheet Metal Worker

Micromechanic
Flat Polisher (watches,jewellery)
Machine Mechanic
Blacksmith/Farrier
Technical Model Maker
Industrial Watchmaker
Watchmaker-Repairer
Watchmaker-Restorer

Example: 7 Trades in the Vocational

Field Nutrition

36

Baker - Confectioner
Butcher
Confectioner - Pastry Maker
Food Technologist
Dairy Technologist
Flour Miller
Oenologist

Example: 24 Trades in Economy and

Administration

Ofce Clerk
Car Trade Ofce Clerk
Public Administration Clerk
Bank Clerk
Chemistry Administrator
Service and Administration Clerk
Commercial Clerk
Hotel Clerk
Whole Sale Administrator
Freight Forwarder
Communication Administrator
Industrial Clerk

Food Industry Administrator

Notary Clerk
Civil Service Administrator
Public Transport Clerk
Post Ofce Clerk
Private Insurance Administrator
Travel Agency Clerk
Health Insurance Administrator
Health Service Administrator
Transportation Administrator
Real Estate and Trust Administrator
Management Assistant in Advertising

37

5 Wages and
Employability

38

5.1 VET is the best social protection

Statistical syntheses:
VET/PET and Social status are intertwined

VET/PET Graduate
Earns initially at least SFr.1,000 more per
month than an unskilled worker.(1 SFr.=1 U$)
Runs three times less the risk
of being unemployed.
Runs 2.5 times lower risk of becoming
a welfare recipient.
Is better equipped to cope with the restructuring
processes in the globalised term.
Has possibility of further education
with career prospect.
The social value of the vocational education and training is statistically proven:
Higher wages thanks to higher productivity, much lower unemployment- and
social aid risk, better mastering of quick economical structural changes that
represent current economic trend. For VET graduates, VET Baccalaureate, Professional colleges, higher professional college, University of Applied Sciences
and further tertiary education and professional career are widely opened.

39

5.2 Apprenticeship and professional further

education it is worth it
Gross monthly pay according to level of educational qualication and required
standards
SFr.

Machine, Electronic and Metal Industry (average 13 month salary) 2008

10 000
8000

8900 SFr.

8500 SFr.
7500 SFr.

6000
4000

6600 SFr.
4900 SFr.

2000
0
Unskilled workers Apprenticeship
VET diploma
without
skilled workers
professional
diploma
SFr.

Apprenticeship
skilled workers
with higher
VET diploma

Federal institute
University of
applied sciences of technology
(ETH)

Total economy (average, full time, 12 month salary) 2008

10 000
8000

4500 SFr.

5600 SFr.

8068 SFr.

6000
4000

7600 SFr.

4131 SFr.

4868 SFr.

5147 SFr.

5852 SFr.

6508 SFr.

2000
0
Ordinary tasks / unskilled

With professional skills

and subject knowledge
(qualied)

Qualied, demanding
challenging work
middle management

One who completes an apprenticeship successfully, earns at least SFr. 1,000

per month, more than an unskilled worker. A special education (for example
higher professional college) earns additionally CHF.1,000 monthly salary and
a graduate from the university of applied sciences again earns initially SFr.
1000 more. Graduates from both, University of applied sciences and Universities/ETH earn almost same after graduation. However, women in private businesses get 16-20% less salary than men in the same function.

40

5.3 Insucient initial training poses the

biggest poverty risk in the labour
market
Ratio of the working poor according to educational status 2005
(working poor = full time employed people who live in poverty)

12 %
11,4 %

10 %

8%

6%

4%

4,2 %

4,2 %

2%
1,6 %

0%
average of all
level of employed
people

without post
compulsary
education
(unskilled)

with VET

Academicians

Employees having successfully completed apprenticeship,( within a poverty

quota of 4.2%,) are approximately 2.7 times less poorer than employees without any post compulsory education (unskilled) with a poverty percentage
of 11,4%. Working Poor are people with a full time employment, who live
under the poverty threshold (SKOS). The most important feature in preventing
working Poor is completing a basic vocational education and training. In the
population group of single parents poverty is yet more strongly represented
as a result of part-time employment.
41

5.4 Entrance into work force after completion of studies is relatively easier for
Professional College Graduates
Professional situations for fresh University Graduates and Graduates of Universities of Applied Sciences 1 year Post Graduation, 2003
Unlimited
Employment

Temporary Work

Employment with
Management Function

90 %
80 %

80 %

70 %
60 %
50 %

50%

40 %
35 %

30 %

80 %

20 %
18 %

16%

10 %
3%
0%
Uni

UA

ETH / University

Uni

UA

Uni

UA

University of Applied Sciences UA

Graduates from universities of applied sciences usually have already completed an apprenticeship, as a result, they are more in demand than graduates
from universities. One year after graduation, former have 80% indenite employment, the latter only 50%. 18% of the university graduates additionally
do temporary practical work. 35% of the graduates of universities of applied
sciences, a year later have already been appointed into a managerial function, while university graduates less, than half as many are appointed for such
posts.

42

5.5 The labour market prefers Professional

College Graduates
Professional situation for University and University of Applied Sciences Graduates 5 year post Graduation , 2007
Engineering
and Natural
Sciences

All elds

Economics

Humanities

Medical
Sciences

100 %
98,2
96,7

96,6 96,6

96,0

95 %
93,9

93,4

94,8
93

Medicine and Pharmaceutical

Uni UA

Social work

UA

Humanities Arts and social sciences

Economics and Services

Economics

UA

Engineering and IT

80 %

Engineering

All Universities of Applied Sciences

Uni

85 %

Natural sciences

All Universites

91,9

90%

Uni UA

Uni

5,3

75 %

ETH / University

Uni

University of Applied Sciences UA

The labour market requires in average more graduates of university of applied

science than university graduates. Five years after graduation from university
of applied sciences, 96,7% of these are appropriately employed and 93,9%
from university.. Above all doctors and lawyers who graduated at universities
show strong employability, probably because of their practical bound studies.

43

5.6 University and Professional College

Graduates earn approximately the
same amount

All elds

Economics

Humanities

84 500.

Engineering
And Natural
Sciences

102 900.

Gross-yearly income post 5 year Tertiary Qualication (average), 2007.

Medical
Sciences

89 000.

90 000.

Social work

Medicine and Pharmaceutical

Uni UA

Uni

Humanities Arts and social sciences

87200.

88 000.

100 000.

Economics and Services

Economics

20000.

Engineering and IT

40000.

Engineering

UA

60000.

80 000.

88 000.

All Universities of Applied Sciences

Uni

80000.

Natural sciences

90 000.

100000.

All Universites

SFr./Year

5,3

0.

ETH / University

Uni

UA

Uni UA

University of Applied Sciences UA

University- and University of Applied Sciences graduates ve years later earn

approximately the same amount of salary. The average gross annual income
are almost equally high in the frame of the usual income dispersion. (The median value or median income indicates the income, whereby half of the individual cases lie above and the other half below it.)

44

45

6 Costs of Vocational Education

and Training

46

6.1 Concerning the total Education Expenditure amongst the industrialized countries Switzerland ranks close to average
Total public and private Education Expenditure indicated in percentage
against GDP, 2006
8.0
7.5
7.0

7,4

7,3

6.5
6,3

6.0

6,1

5,9

5.5

5,9

5,9

5,8

5,7

5,6

5,6

5,5

5.0

5,0

4.5

4,9

4,8

4,7

4,7

4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
d

ain

lan
Ire

Sp

an

ly
Ita

rm
Ge

ia

an
Jap

str
Au

al

nd
rla

ug

Ne

the

CD

Po
rt

OE

lan

nd

Co

un

trie

Fin

gla

nce

En

d
an

Fra

um

erl

Sw

itz

lgi

en

Be

ark

ed
Sw

nm
De

US

0.0

The entire educational expenditure, measured against Switzerlands GDP of

5.9% it lies in the middle of the OECD countries. This comparison value does
not say much about the efciency and labour market suitability of the educational systems. Over all the educational expenditure is being dealt by public
sector. Only in the USA, the educational expenses are being held by the private sector that is more than 1% of the GDP.

47

6.2 The Educational System is cost eective

for the state
Yearly expenditure incurred by the public treasury per apprentice or
student for (the part of) the school education, 2003 / 2005
Yearly expenditure per Student Secondary Level II

SFr.
100 000
80 000
60 000
40 000
20 000

24 300.
8600.

19 600.

0
Apprentice in host company
Education (dual system)
predominantly in German
speaking part of Switzerland

Students / apprentice
Baccalaureate students
attending full-time school
attending State Academic
predominantly in French
Schools
speaking part of Switzerland

Yearly expenditure per Student Tertiary Level

SFr.
100 000

88 000.

80 000
60 000

63 000.

40 000
20 000

36 000.
22 000.

18 000.

0
Professional
College For
Economics /
Social Work
Practical Training

Professional
College of
Engineering

University
Humanities

University
Natural
Sciences

Federal Institute of
Technology Zurich
(ETH)

Full Time School

In company training and education is not only practical and labour market
aligned, but is rather economical for the state. The vocational education
schools cost the cantons calculated in Swiss average (dual system) only SFr.
8600 per student, full time vocational schools on the other hand cost SFr.
24000 and for selective schools approximately SFr. 20000 per student and
year.
48

6.3 Apprentice compensate the education

expenditure in Host Company partly
through productive work
Gross expenditure of host company, productive performance of apprentice in
company and dierence = net expenditure respectively net prot of host company during the apprenticeship, 2006.

500

1500

36 400
P
Net prot

Net prot

31 800
GC

31 900
P

26 900
GC
Net costs

26 600
P

40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
0
5 000

27 100
GC

Commercial Apprentice in Host Company

SFr.

5000

10 000

3. Apprentice Year

2. Apprentice Year

1. Apprentice Year

50 800
P

35 900
GC

36 600
P

14 900
Net prot

4400
Net prot

10 000

32 200
GC

22 700
Net costs

36 800
GC
14 100
P

20 000

12 900
P

30 000

22 500
Net costs

40 000

35 400
GC

Polytechnician Apprentice in Host Company

SFr.
50 000

3. Apprentice Year

4. Apprentice Year

10 000
20 000
1. Apprentice Year
GC = Gross costs

2. Apprentice Year
P = Productive work

Net costs / Net prot

A commercial apprentice in the 1st year costs the host company SFr. 27100
for salary, instructor expenditure, material etc. However, he performs productive work worth CHF 26,600 for the company: Therefore net costs of SFr. 500
remain. Over the entire three-year apprenticeship, the net prot amounts to
about SFr. 6000 (calculation: - SFr. 500 + SFr. 1500 + SFr. 5000). Analogous
reads the lower diagram for Polytechnician-apprentice.
49

7 Swiss productivity and

International competitiveness

50

7.1 Swiss produce with high labour costs,

like other Western Europeans
Cost in Euro per man-hour in the industry 2005
(labour cost = hourly wage + wage costs for social insurance)

Belgium

18.47

17.37 35.84

Sweden

19.30

West Germany

19.64

Denmark

15.23 34.53
14.65 34.29
22.82

Switzerland

9.99 32.81

20.86

France

11.84 32.70

15.94

Netherland

16.32

17.94

Finland

17.54

Austria

12.47 30.01

15.89

England

14.01 29.90

17.36

Italy

9.82

13.05

USA
12.76

Japan

7.36 22.57
7.53 20.29

10.29

Czech Republic

27.19

11.219624.26

15.20

East Germany

32.26

13.40 31.34

8.10 18.39

7.39

Hungary

7.02

Poland

5.90

Bulgaria

1.80

5
Hourly wages

10

15

20

25

30

35

40

Additional wage cost for social insurance

In comparison with other countries Switzerland produces with high industrial

labour cost. In spite of high hourly wages, Switzerland is not the most expensive production location, because additional wage costs (wage percent for
social insurances) are lower than in other European countries. In 2005 Swiss
industry calculated in average 25.50 Euro or approximately SFr. 40 cost, per
man-hour. Eastern Europe showed only 4 -5 Euro.

51

7.2 The global positioning of the Swiss Export Industry in High-Tech merchandise
Country ranking based on the ratio of High-Tech exports in various industries,
2002

Scientic Instruments

1.

2.

3.

4.

5.

6.

7.

CH D

J DK US E

F SF GB I

NL B

S GB D US NL J

SF

9.

10. 11. 12. 13. 14.

Pharmaceutical

CH DK B

Chemical

E CH B

I DK GB NL US A

Mechanical Machines

Aviation and Astronautics

Electrical Machines

CH I

F US D
J

I GB E

D GB S

Electronics

SF S

Information Technology

NL J

B GB US D

8.

J US A

S SF

F GB SF NL DK

A CH DK B NL J

US E NL DK CH F SF

A GB DK US E
E

SF

B NL CH

A DK F

S SF CH

Quelle: KOF ETH Strahm / hep verlag

Rank

The contribution of high-tech in major industrial goods is the deciding factor

for the competitiveness of a high income country. The Swiss industry is highly
specialized in scientic instruments (precision equipment, medical gadgets,
top quality watches), in pharmaceutical and chemical products and mechanical
machinery production (machine tools etc.). However, in other elds it is not so
well positioned. (The country ranking has been according to the RSCA- Index,
Revealed Symmetric Comparative Advantage, considering the advanced technology in the respective export sector).

52

7.3 The global positioning of the Swiss

industry with qualitative advantage
cutting edge in the world market
Ratio of the Swiss exports which have international competitiveness both in
quality and price, 2005

62 %

38 %

of the export products

are in markets with
competition mainly
in quality

of the export products

are in markets with
competition mainly
in prices

93 %

15 %

of these export products

have qualitative
advantage i.e. High-Tech
medical Apparatus,
Pharmaceutical Products
Mechanical Engineering

of these export products

are price competitive
i.e. Automotive Industry
Paper & Pulp, Timber
Products, Metalproducts

Switzerland with its high income and price remains well positioned on the global
market due to its competitive quality advantage and not through pricing.
62% of its exports enter the international markets in which qualitative and innovative competitive advantages are decisive. 93% of Swiss products in these
markets have advantage in quality. However, 38% of Switzerlands exports are
in global markets where price competition is decisive, and from that, only 15%
really have a price advantage.

53

7.4 In Switzerland relatively lower percentage of the population have academic

qualication
The percentage of people with Tertiary education from university taken between
the ages 25 to 64, 2005

45
40
38
35

37
34

33

32

30

30

29

29

28

28

27

25

25

24
22

20

18
15
12

10
5

ly
Ita

ia

25

str
Au

EU

nce
Fra

an
rm
Ge

nd

d
an

rla
the

Ne

en

erl

ed

itz
Sw

Sw

tai

nd

Bri

Isla

Gre

at

ay

um
lgi
Be

ark

rw
No

an

lan

nm
De

Fin

Jap

US

Compared to OECD-Industrialized countries Switzerland has a relatively lower

ratio of people with higher Tertiary education (University, ETH, Professional
High School). On the other hand, Switzerland has higher ratio of work force
with specialized practical training (apprenticeship, Higher Professional School)
and people who participate in further education during their professional life.

54

7.5 Despite lower number of academicians

still highest number of innovative enterprises
The percentage of small and middle enterprises, which pursue and encourage
innovation, 2002/2005
60
55
50
46

45

43

40
38
35
30
29

29

29
26

24

20

22
18

10

s
nd
rla
the

Ne

Bri

tai

at

Fin

lan

Gre

ly

ark
nm
De

Ita

ay
rw
No

nce
Fra

en
ed
Sw

um
lgi
Be

y
an
rm

ia
str

nd
Isla

Au

Ge

Sw

itz

erl

an

A paradox: Even though Switzerland has relatively less University graduates

with higher ratio of innovative SMEs, Switzerland still tops the European countries. The explanation lies clearly in its educational system. Small enterprises
are provided with qualied skilled professionals, who bring innovation along
with their practical and theoretical skills.
Additionally, an important part is played by higher ratio of adults who participate in further and continuing education (Switzerland: ranked third in Europe).

55

7.6 Willingness to work amongst employees

in countries with VET is highly rated
Country comparison of workers motivation based on assessment by International managers in a survey conducted 2003 and 2009
10 = highest mark
9
8,7

8
7,7

7,9
7,6

7,8
7,3

7,2

7,0

7,2

7,1
6,8

7,0

6,8

6,5

6,9

6,7

6,5
6,1

5,9

6,1
5,3

4,9
4,6

4,5

4
3
2
1

!

2003

nce
Fra

ly
Ita

y
an
rm
Ge

en
ed
Sw

an
Jap

A
US

s
rla

nd

d
Ne

the

lan
Ire

d
lan
Fin

ark
nm

ia
str
Au

De

Sw

itz

erl

an

!

2009

The Swiss employees work motivation is assessed with very high grades. This
conclusion was derived from the survey conducted in which approximately
4000 international managers participated within a framework of international
competitiveness for 60 production plants for the IMD World Competitiveness
Center (Lausanne) .Hence, the early and systematic educational integration
through the VET system plays a vital role for work ethics.

56

7.7 Despite high wages globalization

brings more export surplus due to
high quality
Swiss goods imported and exported with newly industrialized countries and
countries in-transition emerging in the world economy, 2008

8
Import 2008

Export 2008

7
6

6,1

5,9

5,0

4
3,2

3
2,5

2,4

2,4

2,0

0,8

0,7

1,0

1,0

Ru

1,1

Bra
sil

1,6

1,4

0,7

a
ssi

rea
Ko
uth
So

Tai
wa
n

ia
Ind

ey
Tu
rk

ng
ko
ng
Ho

Ch

ina

Switzerland is according to balance of trade the winner of globalization. It exports signicantly more to the globalizing countries than it imports. The traditional industries are being displaced by cheap imported goods with advanced
technologies (wood, leather, paper, textiles, metal, toys). But at the same time
the Swiss industry supplies more with its high price investment goods, instruments, medical and pharmaceutical products and luxury watches than it imports. We deliver expensive precision - they delivers cheap labour products.
57

Data Sources:
The facts and gures in this book are based on ofcial statistics and data from
the Swiss Federal Oce of Statistics (BFS), Neuchtel, Eurostat Brussels, OECD
Paris, International Monetary Fund (IMF) Washington, Center for Economic
Research at the Swiss Federal Institute of Technology (KOF-ETH) Zurich, and
others.
All sources of data are named in the book:
Rudolf H. Strahm Warum wir so reich sind
Wirtschaftsbuch Schweiz, 2nd edition 2010
Berne www.hep-verlag.ch
ISBN 978-3-03905-576-0

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