Tag Archives: Paris

Disruption in Paris; Smooth Sailing in Berlin, Geneva and Lausanne

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Traveling through a slice of Central Europe

Despite a French transportation strike, I managed to fly out of Paris this week for meetings in Berlin and Geneva, with a side trip to Lausanne. While some transport workers proclaimed opposition to further European integration, it felt to me as if they were actually promoting European dis-integration. Airline has cancelled all of my original flights. But, Lufthansa staff kindly worked with me to find alternatives that got me where I needed to go. In the end, I came away feeling pretty good about the world. I’m pretty sure that the arrival of warm and sunny weather also contributed to my positive disposition.

A dash through Berlin

I get to Berlin every couple of years and with each visit I feel a little more attached to the city. This sentiment is actually helped along by a personal connection. In the 1880s, my great grandfather emigrated to the US from Berlin. He had been an organist in a large church there. So, the city figures somewhere in my family lore.

Berlin is a city with bountiful green space, lakes and flowing water, cultural opportunities (reasonably-priced opera tickets!), history and world class museums, plus quality food and drink. Not to mention shopping for those so inclined. It maintains an excellent public transportation system.

Whenever I visit I am struck by the dynamism of the place. Following reunification of East and West Berlin in 1989, the city set to work transforming and integrating itself. Two decades later the community has accomplished substantial renewal. Areas that were formerly cut off or disrupted in the communist past have revived as cultural centers (e.g., around Potsdamer Platz), pedestrian zones (e.g., around Nikolai church), or tourist zones (e.g., around Brandenburger gate).

But, parts of the city remain large construction sites as the renewal continues. Cranes dot the skyline. A controversial project to rebuild the Berliner Schloss — a former royal palace in the city center (ruined in WWII) — has just gotten underway after several  years of debate. The metro system is expanding. New commercial construction continues apace. Alas, leaving much still to explore, my schedule indicated it was time to depart for Geneva and Lausanne.

  • Recommendation: We had a nice meal outdoors at the Julchen Hoppe restaurant on the edge of the Nikolai Quarter of the city. Our meal included traditional foods and decent wine at a reasonable price. Very nice wild mushroom soup and fresh asparagus, fish and fowl main courses.

Swiss quality in Geneva and Lausanne

Geneva

I have written about Geneva in an earlier post, but there is more. This time I had business at several international organizations including the World Trade Organization (WTO).

I am always amazed at the wonderful headquarters of the WTO, the William Rappard Center, which was built in the 1920s to house the International Labour Organization (ILO). At a time when communist revolution was in the air, the ILO was developed to address labor concerns and demonstrate that market economies could deliver better quality of life for workers. The original building has some palatial features, without being too extravagant. Nonetheless, the fountains, sculpture and murals reflect a blend of expressionist and classical art that honors the value of labor in fueling economic growth and well-being.

During this visit, construction had blocked the main entrance and I wound up being channeled through the Chinese garden that is on the grounds. This was my first visit to the garden and it provided a pleasant and unexpected entry to the facility. That evening Geneva was radiant in the late-day sun and early summer weather. I took advantage of the fine evening to stroll along the Rhone and Lake Leman, before deciding to eat outdoors at a local Chinese restaurant in honor of the WTO garden.

Lausanne

During my stay, I made an afternoon visit for a meeting at IMD, a prestigious business school in the city of Lausanne. After all of the transportation disruption in France, the train ride over to Lausanne on the Swiss rail system provided a welcome contrast. The trains over and back departed in a timely fashion, traveling quickly and sailing along the rails with remarkably smooth suspension and quiet interiors. So nice!

Lausanne is a small city set in gorgeous countryside on Lake Leman. The Alps rise from the water on the opposite shore. Between Geneva and Lausanne, vineyards and farms dot the lake shore amidst various small towns. I took the metro from the Lausanne train station down to the lake. Due to the slope of the hill the metro is built on quite an angle, which was rather surprising to a flat-lander like me. I stopped for a soft drink at a local cafe on Lausanne harbor. Inertia nearly got the better of me and I had to strain against the warm, sunny, lazy afternoon feeling in order to get to my meeting on time.

Paris – Using Charm to Put Things Right

My return to Paris proved mercifully uneventful. The transport strikes had passed and the grey, cool dampness had moved on in favor of sunny weather. I pulled out the grill for a BBQ with friends and took a fresh look at Paris. As usual, after disrupting my life and travel once again, Paris turned on its charm and won back my affection.

Photo from Berlin

Berlin Cathedral and TV Tower, (C) Doug Lippoldt, 2006

Berlin Cathedral and TV Tower, Photo (C) Doug Lippoldt, 2006

Photos from Geneva and Lausanne

Justice, by Luc Jaggi, 1925, Geneva, Photo (c) Doug Lippoldt, 2013

Lausanne Harbour – 52 swans, (c) Doug Lippoldt, 2013

(Copyright, Doug, 2013, 2021)

French-American Cultural Exchange: Fulbright, Cassatt & Bismarck

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Tradition of French-American Cultural Exchange

Since the early days of the French and American republics, their political relations have been intense, vacillating between amity and periodic squabbles. Cultural ties, however, have been more consistently positive. From the Marquis de Lafayette to Patti Smith and beyond, there is a long tradition of French and Americans crossing the Atlantic and contributing to the cultural life in both countries. French-American cultural exchange plays an active and on-going role in intellectual cross-fertilization between the countries, contributing to wide-ranging developments such as the US Constitution and the rise of hip-hop in France. Much of this exchange is spontaneous, but some of it is more structured and supported via programs such as the Fulbright program for academic exchanges.

While French-American cultural exchange takes place through a variety of channels, its scale is quite significant. One indication of the scale can be found in Disneyland: In 2012, Disneyland Paris was the top tourist destination in France with 16 million visitors (though, of course, just a fraction of the visitors were French). Another indication can be found in several recent best-selling histories by authors such as David McCullough (1) and Stacey Schiff (2) documenting numerous exciting stories of the deep French-American cultural ties over the centuries.

A recent example

Living as an American in Paris, one has the opportunity to participate directly in the dynamic cross-cultural relationship between France and the United States through a variety of institutions. This weekend, for example, two wonderful institutions — the Mona Bismarck Center for Art and Culture and the Fulbright alumni association — came together to offer a great cross-cultural experience in the form of a guided tour of the first exposition in France of a special collection of Mary Cassatt’s etchings, drawings and pastels.

Stamp shows picture of "The boating party" by Mary Cassatt, circa 1966. Photo credit: rook76 / Shutterstock.com

US stamp (ca. 1966) shows a picture of               “The boating party” by Mary Cassatt
Photo credit: rook76 / Shutterstock.com

Mary Cassatt (1844-1926) is a prime example of such cross-cultural ties. She was the only American among the leading Impressionist artists in France. She was an extraordinary artist who pioneered new approaches for etchings and pastels, for which she was awarded the French Chevalier de la Legion d’Honneur in 1904. This was an amazing achievement, particularly given that she was an immigrant working in a foreign culture in field that was at the time largely male-dominated.

Fulbright and Bismarck

The Fulbright program as founded after WWII at the initiative of US Senator J. William Fulbright with the objective of promoting mutual understanding. The program sponsors students and faculty wishing to study, research or teach abroad; it supports Americans going abroad as well as foreigners coming to the USA. In France, it is supported by both the US and French governments.

As an alumnus of the Fulbright Fellowship program (Germany, 1979-80), the chance to belong to the Fulbright alumni association in Paris gave me a ready-made social group and access to the flow of cross-cultural exchange here including the Cassatt exhibition. The Fulbright alumni association helps to renew the Fulbright experience in an ongoing fashion via cross cultural events. An annual reunion of alumni and celebration of those going or coming under the program is attended by hundreds of folks at the residence of the American ambassador in Paris. The depth of cross-cultural good will at the reunion events is evidence of the potential for such programs to bridge international divides.

Mona Bismarck (1897-1983) is an example of an American expatriate who left a legacy promoting cross-cultural understanding: the Mona Bismarck American Center for Arts and Culture. Bismarck grew up on a horse farm in Kentucky and was a wealthy American heiress. A socialite with extraordinary connections, she worked to promote friendship between France and the United States. After the death of her first husband, American industrialist Harrison Williams, she married Edward Bismarck, the grandson of former German Chancellor Otto von Bismarck. The Foundation and center that she established have carried on after her death to promote Franco-American friendship via exhibitions, events, educational programs and hosting non-profit associations. There is a steady stream of cross-cultural activity at the Center, which is located in a villa on the Seine with a stunning view of the Eiffel Tower.

Why it matters

Institutions such as the Fulbright Fellowship program and the Mona Bismarck American Center deliver substantive and qualitative programs that help to expand peoples’ horizons. Such cross-cultural exchange can be positively transformative for individuals, broadening their perspectives and range of experience. I think this cross-cultural exchange also helps society more broadly. The influence of institutions such the Fulbright Program and Mona Bismarck American Center is amplified in France and the United States in that they deliver benefits beyond the direct participants. Indirectly, the larger circle of professional contacts, friends and families of participants is also influenced. From anecdotal evidence and experience at French-American cultural events, it certainly appears that this outreach to the larger society helps to provide learning opportunities, combat prejudices and promote mutual understanding. And that is in all of our interests!

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(1) David McCullough (2011), The Greater Journey: Americans in Paris, Simon & Schuster.

(2) Stacy Schiff (2005), The Great Improvisation: Franklin, France, and the Birth of America.

French capitalism is not dead!

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French capitalism

Despite the kerfuffle over the new French government’s proposal to increase the top personal income tax rate to 75% and to nearly double the tax on dividends and other “unearned” income to 60%, France’s hard pressed capitalists persist. French capitalism is not dead!

France is home to many global brands from Michelin to Moet et Chandon, from L’Oreal to Total, among others. France’s multinational firms contribute substantially to the French economy, while operating in a tough regulatory and social environment. They succeed where many other firms in France fail. For example, unlike some neighboring countries like Germany, France has relatively few medium-sized firms.

Small investors in France

French Stock Exchange, Paris

Palais de Brongniart – French Stock Exchange, Paris
(Photo credit: ©ErickN, Shutterstock)

Similarly, France is home to a sizable number of individual investors. Something like 15% of the French population owns stock (compared to about 21% in the US). During the 1990s, there was an uptick in individual ownership of stocks associated with a series of privatizations of state holdings of firms like EADS (parent of Airbus) and Gas de France. Some shares were offered to residents of France at advantageous prices and some shares were reserved for employees of the enterprises. But, many other folks acquire shares via their employers, directly on the markets, or via investment clubs.

Actionaria

The large number of individuals holding stock was evident last weekend at the annual stock exchange exposition for small investors (Actionaria). This is a kind of trade show for companies listed on the French stock exchange to meet with shareholders, potential shareholders, journalists, job seekers and others. All sorts of people are there, from young job candidates, to seniors with retirement accounts, executives, small-investor club members and alternative lifestyle folks. But, the average age tends toward those with some grey hair. I guess I’m one of them. Most folks (including me) have just a modest amount of stock.

It is a festive atmosphere as folks wander about from booth to booth, talking with representatives from the various firms, gathering information, watching various demonstrations and video clips, collecting swag, and looking at sample products.This year, in view of the proposed tax reforms in France, there was also an atmosphere of solidarity.

I had an invitation from Michelin (as a shareholder) and a check list of other CAC 40 firms (French stock market index of the largest firms) that I wanted to contact: Vinci about construction markets, L’ Oreal about cosmetics, Societe Generale about banking, Air LIquide about industrial gases, GDF Suez about natural gas and Total about oil exploration. In speaking with various company representatives, one interesting common denominator was their enthusiasm about growth prospects elsewhere (not so much in France). Several enthused about the potential of emerging markets in Brazil, China, India, and South Africa, among other places. Some emphasized exciting technologies such as hydrogen powered cars, enhanced solar energy, on-line financial services or electric bicycles.

An interesting contrast with the US comes in the reporting requirements under the French regulatory regime. Shareholders generally have less say in the businesses and receive less detailed information than their US counterparts. They get the headline figures, but far less in terms of specifics. In some way this frees management to focus on long-term results (as evidenced by the evolution of the share price), but there are tradeoffs in terms of accountability and responsiveness to owners. Another contrast is in the social dimension of the enterprises. In France, there is much more discussion of the charitable and social works undertaken by the firms. And, there is much more personal outreach to shareholders via events, including out in the various regions of France.

Michelin shareholder meeting

My initial motivation in going was to attend a Michelin shareholder meeting. I’ve never been to such a meeting and was curious. Perhaps 500 investors turned up. The chief financial officer gave a rundown of the latest performance data and a senior executive handling innovation spoke about product development, but the star of the session was Jean-Dominique Senard, the president. He came across at first as a bit unassuming and affable, responding to wide-ranging questions and comments, which were non-technical and generally positive. But, he is clearly a master of his business and relations with the outside world. The President is clearly focused on the longer term and the positioning of the firm some 5 years out, rather than on quarter to quarter results. These are good things for long-term investors to see and hear.

The mood of the Michelin session was helped by the fact that the stock has beat the market average during the period since the global financial crisis. Michelin has also worked to improve its generally weak margins through innovation in tire structure (optimizing various parameters such as noise, energy efficiency, wet traction and dry traction among many others), increased focus on high-margin specialty products (like giant tires for mining vehicles), and investing in a big way in dynamic markets such as Brazil, China, India and the US.

There are also some interesting side projects such as a collapsible electric bike.  A few decades ago, much of Michelin’s rubber production was nationalized during the revolutions in South East Asia, so the company buys most of its rubber on international markets (it still produces some natural rubber on plantations in Brazil). In light of this, there is emphasis on development of synthetic rubber as an alternative (already something like a quarter of a tire’s composition is synthetic rubber, while old-fashioned rubber accounts for some 40%). One very cool innovation is the development of a wheel with all of the suspension, gearing and steering integrated inside. This saves on space in the car’s frame and can improve the overall efficiency.

The biggest reaction of shareholders at the Michelin meeting came when some in the audience asked what could be done about tax policies in France. The announced policies are perceived as penalizing investors and enterprises, despite some announced initiatives to improve competitiveness. The company officials sought to be somewhat diplomatic, but did note that the business environment had become more challenging. They noted that the government had indicated that it was concerned about competitiveness and sought to reduce labor and other costs, but this was far from yielding concrete results so far. There was a big round of applause to the expressions of concern.

Here’s to excellence!

I was grateful for the invitation to participate in the Actionaria exposition. It offered a unique window into an aspect of French life that one does not encounter in day-to-day life. I felt very welcome. It is great to see world-class businesses, to learn of innovation, and to hear of strategic orientations for French business. France is capable of business excellence and it is the interest of consumers and investors world-wide for this to continue!

Urban Bike Commuters Unite! Velib, Paris

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Whenever I’ve lived in an urban area, I’ve always been a dedicated user of public transportation. In Paris, I’ve continued this practice on a near daily basis in my commute to work and sometimes on my days off, too. The dense network of trains, metro and buses  has a great structure that generally helps to get you where you need to go in an efficient manner. The metro and buses (traffic permitting) offer a decent standard of service. The suburban trains, however, can be vulnerable to strikes, weather outages and other disruptions. As I live just outside of town (7 miles from the Eiffel tower), I depend on suburban trains (RER C) and this can lead to some frustration.

And then a few years ago, Paris launched a system of rental bikes called Velib. Velib has proven to be a great idea! The urban bike system was developed by a private firm (JC Decaux) on space made available by the city. In exchange for developing and operating the system, JC Decaux gets public advertising space around town. The system now has more than 20000 bikes and 1400 stations around Paris. The city of Paris has developed some 400 KM of bikeways (nearly 250 miles ), which helps riders to avoid motor vehicle traffic on many routes. For 30 euros (the equivalent of about 40 dollars) per year, a rider can get a pass with unlimited free rides of up to 1/2 hour at a time. A rider pays a small surcharge for going a bit over time (1 euro for the first 1/2 hour of overtime).

The result is a system that operates with private sector efficiency, at minimal public sector expense, yet with public policy objectives in mind (easing movement of people, promoting  health benefits, reducing pollution and congestion, etc). While I still need to take a train into town, the system enabled me to cut 20 minutes off of my commute (each way, each day) and avoid an often frustrating connection in town on the suburban train. In a recent month, I got more than 8 hours of additional exercise thanks to Velib (the system keeps track for you). And, somebody else is responsible for the maintenance and security of the bikes I use. No longer do I have to worry about bike theft or fixing flats. (You do need to keep in mind safety and remember to wear a helmet and some reflective material.) Now, instead of being underground, I am actually in touch with the city. I see more of the world around me and I arrive at the office feeling invigorated.

Here is a short overview that presents Velib (updated in Dec 2017). The Velib system does face some challenges. In a city with hills, it is difficult to keep the distribution of bikes aligned (people prefer to ride one way, down hill). The most difficult to reach stations provide credits to those who pedal up to them and JC Decaux does some bike redistribution during the day, but it is not enough. There is also a problem with vandalism (high youth unemployment, for example, can lead to bored and frustrated kids). And, there is a lack of parking slots at many of the most used stations. This can leave a rider wandering from station to station looking for a parking place to return the bike (or, conversely, lacking any available bikes at rush hour).

Here, I have some important advice for fellow Velib users and a plea for solidarity: If you face a lack of parking at a station, go to the automated kiosk and flash your badge and then follow the instructions to validate. The system will grant you 15 minutes of credit to give you a chance to get to the next available station. A map will indicate these on the kiosk screen. This is good for you personally. But, also, if enough of us frustrated riders continue demanding this credit, which costs the system operators, then maybe they will build additional parking places. For too long I wasn’t aware of this and continued to pedal at my own expense in such situations!

If you live in the Paris area and haven’t yet discovered the system, I’d encourage you to give Velib a try. If you live in another city without such a system, why not press your public officials to consider one. Meanwhile, here’s wishing you “happy trails”!

Update, 2 August: For perspectives on biking in London, check out this blog posting from the Economist’s Blighty Blog, “Safer than you think”.