Shangri-La Governance. A Sketch of an Integral Solution for European Economic Policy Based on a Synthesis of Europe’s Problems

Abstract

This chapter provides a preview of what governance in a better future state, Shangri-La governance, should take care of. The starting point for each policy feature, of course, is a contradiction that contemporary political economy cannot solve—what appears as problem already incorporates the ideas of its solution. Problem areas are grouped as corners of a hexagon. A sketch of an overarching policy program derived from existing contradictions is presented. The main result is that the different policy areas are so tightly linked that only a holistic approach—taking care of all corners of the hexagon simultaneously—can promise success. Piecemeal engineering in isolated corners, i.e. what is currently happening, is bound to fail. A newly formulated overarching European economic policy clearly will include the particular role to be played by Eastern European countries. After almost ten years since the enlargement of the EU to central and Eastern European countries it is remarkable that this integration does not occur as one of the six major contradictions to be solved today. Quite the opposite is formulated. In the concluding paragraphs: Despite the many shortcomings and—hopefully mostly transitory—disadvantageous developments in several Eastern states an overall assessment of welfare implications of integration can hardly ignore the positive net effects. These many-layered experiences can, and should be considered as a kind of historical laboratory experiment testing if cohesive forces within the EU are strong enough to assure the survival of this political entity—and this test has been passed.