Outsourcing for China

The Hyundai investment is a triumph for the ČSSD-led government, but the destruction of the textile and shoe industries might be more indicative of where the CR is headed. Without trade barriers, competition from Asia would eventually overtake labor-intensive production in Europe, but the CR has helped speed up the process. It hasn't addressed the problem of high payroll costs. It's welfare system encourages people not to take low-paying jobs. Its educational system is aimed at turning out paper-pushers. And it has failed to combat mass customs fraud, allowing Asian importers to slip goods into the country at below-value prices. Vlasta Mayerová of the Czech Footwear Association is pessimistic and told Czech Radio that the crisis scenario is an impoverished Europe that manufactures nothing until, in 20 years, it's reduced to making shoes for export to China. [Czech Republic shoes textiles]