In defence of Multiculturalism
In a chilling speech last week, the German Chancellor, Angela Merkel said that Multiculturalism has utterly failed. Across Europe, Xenophobic politics seems to be on the rise and you can see echoes in terms of the economic situation we are in and the need to blame someone, with the dark days of Europe in the 1930s.
What I find ironic is that a country like Germany would say that they have attempted multiculturalism. The UK, Canada, US, Singapore and India amongst others are vibrant and successful multicultural societies. Multiculturalism means that being from an ethnic minority and belonging to another country are not mutually exclusive. In France you are French and that is it (although they have a whole heap of their own problems with integration). But in Germany, the idea of German citizenship and identity is deeply linked to a notion of ‘bloodline’. And although the law changed somewhat in 2000, it is still very hard to become German.
There is no wonder therefore that their version of multiculturalism has failed. And yet rather than look at what they can do to make people feel more German, the solutions they are coming up with are around making it even harder for immigrants to settle in Germany.
What does this have to with being a Business Angel or advice to Entrepreneurs?
I passionately believe that business and people thrive when borders are open for trade, capital and people. Societies which have managed to resolve (and many are still resolving) ethnic differences are stronger and more dynamic than closed societies. In the early 1990s a fear had gripped the US (which was rapidly being overtaken by Japan as the leading economy) that perhaps it was the fact that the Japanese culture is so homogenous that gave the Japanese an economic advantage. In a landmark speech, displaying true leadership, President Clinton rubbished these claims. He argued that America gets it strengths from its multiethnic and diverse fabric. Whilst those differences have to be negotiated and worked out (1992 saw Race Riots in California), the US was a more dynamic and vibrant place because of it. I believe he was right.
Investment opportunities and wealth are enhanced through the free movement of capital and people. However, if countries want these dynamic entrepreneurial people to stay and enrich the country, they also have an obligation to make people feel welcome. Yet rationality is never the ruler in these matters.
Angels are increasingly making cross border investments and many entrepreneurs I know and admire do not recognise borders. Many people still see international trade as a zero sum game. It is not and entrepreneurs and angels need to keep selling the merits of free movement. To badly misquote “I may hate the competition you bring, but I will defend to my death your right to compete”
