Switzerland owes a large part of its success to the close involvement of citizens in the army, politics and other public services. Now more than ever, the country needs to breathe new life into this tradition and explain it to foreign residents, Werner E. Rutsch writes in an essay for finews.first.
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For some time, but particularly since the financial crisis of 2007, there have been complaints in Switzerland that political and business leaders are increasingly alienated from the general population. The perception is that the elites have lost their connection with society and are out of touch.
The issue came to the fore in the recently rejected referendum on corporate tax reform. Company bosses have to get out there and foster more contact with their base, take part in communal assemblies, instead of just leaving the field to business lobby economiesuisse, Markus Somm, editor-in-chief of the «Basler Zeitung» newspaper wrote, commenting on the referendum result.
The fact is that business and politics have long been intertwined in Switzerland, partly because of the so-called militia system, or part-time public service. Business leaders like Ulrich Bremi (Swiss Re, Kaba) or Peter Spaelti (today Axa Winterthur) sat in parliament, were active as patrons and, needless to say, had a high rank in the Swiss army.
But this system of overlapping roles also drew criticism from those outside the circles of influence; «Der Helvetische Filz» (Swiss Cronyism) was even the title of a controversial 2002 book on the subject.
«The word militia in Switzerland extends beyond the military meaning»
Although the web of relationships that influenced the political landscape was questioned at the time, it definitely had its merits, as can be seen with the benefit of hindsight.
The word militia in Switzerland extends beyond the military meaning to encompass various kinds of public service not carried out as a full-time role, including the work of parliamentarians. These parallel activities alongside the person’s main job are often – but not always – financially compensated.
The typically Swiss system provides services for the state and the common good, such as firefighters and military. At the same time, it is a way to wield influence in politics, board roles, and foundations.
«A large proportion of voluntary activity now takes place within hobby organisations»
However, in the context of advanced globalization, the system is increasingly stretched to its limits. While there are still plenty of people willing to seek political representation at cantonal and federal level, some 2,500 communities are struggling to fill their executive posts and commissions.
They have resorted to newspaper ads to look for people to fill official posts, and some cantons are scrapping the requirement to live in the location you represent. The army is also struggling to secure a new generation of officers and higher ranks in a business climate characterized by strong competition and 24/7 culture of availability.
There are other changes in values and society that have contributed to the shift in priorities: A large proportion of voluntary activity now takes place within sports associations and hobby organisations. That is not necessarily negative, but ultimately these activities compete for the free time of citizens willing to volunteer.
«Equally, the quality of decisions in uncertain situations is better»
What then are the advantages of the system? For the state, as well for public bodies, one key advantage is the transfer of knowledge, as well as the ability to achieve a carefully balanced representation of interests, in political commissions, for example. Roles and services with fluctuating work hours are also easier to organize, for example the fire brigade or supervisory bodies.
Equally, the quality of decisions in uncertain situations is better because of the broadly-based skills of the decision-making group.
For those providing their time and services, the advantages also lie in knowledge transfer, job enrichment, a broadening of horizons, along with the benefits of being able to network and enjoy relationships and camaraderie. Employers that release their staff to fulfil these functions benefit from a return flow of information, which is of value to their own institution.
«A possible disadvantage of this activity could be the opportunity costs»
The fact that public service commitment is often based on intrinsic motivation and that the work is usually paid also makes it good value for the person involved. A possible disadvantage of this activity could be the opportunity costs, which are difficult to assess.
Which makes it all the more important to promote the militia public service system as an achievement, even as a success factor of our country, and to sufficiently explain it to foreign residents, as the Fribourg economics professor Reiner Eichenberger recently did in public remarks.
«The leadership training received in the army is especially useful in the business world»
We should confidently stand behind part-time public service positions – often based on a democratic choice – not only to ensure its acceptance, but to preserve its place in an internationalized economy.
The leadership training received in the army is especially useful in the business world, a fact that is gaining fresh recognition. Further relaxation of the rules, such as removing the residence obligation for communal politicians, would be desirable.
Another thing to consider would be tax relief or even tax exemption of additional income earned through public service activities, a move that would doubtless enhance their attractiveness.
These thoughts are based on a speaking event organised by Axa Investment Managers with:
- Lieutenant General Philippe Rebord, Chief of the Swiss Armed Forces
- Prof. Reiner Eichenberger, University of Fribourg
- Dr. Vera Kupper Staub, Vice President OAK BV, Bern
- Natalie Rickli, Swiss People’s Party parliamentarian and Partner Relation Manager at Goldbach Media
- Josef Maushart, CEO and chairman of, Fraisa, cantonal representative for the Christian Democrats and President of Soluthurn Industry Association Inveso
- Stefan Schedle, Vice President of the foundation board, Axa companies pension fund
Werner Rutsch has been a member of senior management at Axa Investment Managers in Switzerland and head of institutional business since 2010. He studied economics and business administration at the University of Bern, where he also completed his doctorate in 1994. Rutsch held various leading positions in the banking sector over 15 years.
The 48-year-old has published numerous articles on economic themes, especially about bank marketing and communication, and is co-author of the 2008 book «Swiss Banking – wie weiter?».
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