Switzerland has almost achieved perfection—socially, environment-wise, in government and governance, economically, militarily, in security, and so on. In doing so, Switzerland has become a rather boring country. There are no political upheavals, no street demos, and no noise. There are no disruptions, only predictability and continuity. No masala, so to say. Entrepreneurs and businesses love Switzerland for these very same reasons. Two other ‘S’ countries offer a similar environment: Singapore and Sweden. There must be something about the letter ‘S’! If you are an investor, the ‘S’ countries have much to offer. For instance, Europe’s richest family is not the Rothschilds, but a family from Sweden – the Wallenbergs.
Here is a real anecdote to reinforce this line of thought: A friend of mine rose to the rank of CEO in a UK-based pharma company. Thereafter, he was recruited by a Swiss pharma group to manage operations in the Levant. As per standard practice, he was sent to Switzerland for three months for training and acclimatization. So far, so good. Then, the gentleman started chafing under the rigid work rules. Everything was organized and regulated. There was no slack. Weekends were very lonely. The gentleman survived the three months but never went back to Switzerland, except for work-related matters.
The Swiss Confederation was founded in 1291. It secured its independence in 1499 from the HRE (Holy Roman Empire). Today, Swiss sovereignty and neutrality are universally recognized. Switzerland excels in whatever it does. Its main industries are insurance, banking, pharma, chemicals, watches, machinery, and nutrition. There is practically no agriculture. With an estimated real GDP of US$ 610 billion and a per capita GDP of US$ 70,900, Switzerland is an affluent country. Its credit ratings by the Big Three, Moody’s, Fitch, and S&P, are consistently AAA or Aaa. The only area where the Swiss have not succeeded is wine production, which you can put down to the cold weather. The fine art of personal banking, however, has been heavily refined by the Swiss banks. In spite of universal pressure to open up, the Swiss continue to protect the privacy of their banking clients.
Switzerland’s ultrarich live quietly and discreetly – unlike Monte Carlo, where hedonism is the norm, Zurich encourages its residents to be ‘normal’
It is a graded service, rising from the average depositor to the mega, mega rich. If a depositor has US$ 1 million on deposit, he will probably get 15 minutes in the reception area of the bank, some Swiss coffee, and a brief discussion.
A deposit of US$ 5 million will entitle the depositor to a limo and a one-hour discussion. A much larger deposit will entitle you to a limo 24/7, medical arrangements, discreetly managed appointments arranged by the bank, divorce settlements, admission for your children into elite schools (like Le Rosey), and even a cleverly hidden political donation. But a customer must play by the rules—discretion. Display any bombast and you could find yourself in trouble. It happened to a member of an Arab ruling family many years ago, as well as the Hinduja family of the UK. The ultimate banking regulator, the Bank for International Settlements (BIS), is based in Switzerland. Known as the Central Bankers’ Bank, the BIS in Basel wields policy influence across the world, from Basel I, Basel II, and Basel III, going on to Basel IV and ISO 20022. If any country’s finance minister sits at this top table, his CV is greatly enhanced.
The Swiss cities are safe, well-managed, and tranquil. Zurich’s ultra-rich live quietly and discreetly. There are no grand parties, trophy skyscrapers, or self-seeking exposure. Unlike Monte Carlo, where hedonism and exposure are the norm, Zurich encourages its residents to be ‘normal’. Even the private airport, where personal jets zoom in regularly, is kept discreetly out of the media. Geneva is the only city with a multicultural population and bustling activity, largely because of the presence of so many international organizations.
Here are two events that provide a window into the minds of Swiss citizens. Some years ago, the Swiss rejected a referendum on a minimum universal wage of US$ 1500 per month. The resounding ‘No’ endorsed the Swiss culture of self-reliance and hard work. Any other country would have okayed the project. Second, the University of Zurich is world-class; Albert Einstein studied here and taught here. Recently, the University passed a law that teachers and professors at the university could not undertake any external assignments—lectures, consultancy, or board appointments. Their sole responsibility is to teach the students. A ruling like this would create a revolution in the USA, where top academics are hugely, hugely dependent on external earnings and accolades.
On the fun side: Lots of high-end entertainment. The ski resorts. The parties in the Alps. Red-light areas in most cities. But there is no SIN city culture like Vegas, Dubai, or Mumbai. The only visible hero is Roger Federer. He deserves to be. And everybody’s favourite singer from the 1970s and ’80s, Tina Turner, lived there quietly until her passing. Address unknown.