German Economy

Topics: Germany, West Germany, Konrad Adenauer Pages: 4 (737 words) Published: August 7, 2013
CONTENT
1) INTRODUCTION

2) TYPE OF ECONOMY

3) GOVERNMENT

4) QUICK FACTS

5) WHY GERMANY?

6) SOURCE

INTRODUCTION

Germany has always been a driver, innovator, and beneficiary of an globalised economy. The country consists of 16 states, and its capital city is Berlin. Germany has the fifth-largest GDP in 2012. Germany is the worlds third largest exporter with $1.4 trillion exported in 2011.

Germany is a key member of the continent's economic, political, and defence organizations. European power struggles immersed Germany in two devastating World Wars in the first half of the 20th century and left the country occupied by the victorious Allied powers of the US, UK, France, and the Soviet Union in 1945. With the advent of the Cold War, two German states were formed in 1949: the western Federal Republic of Germany (FRG) and the eastern German Democratic Republic (GDR). The democratic FRG embedded itself in key Western economic and security organizations, the EC, which became the EU, and NATO, while the Communist GDR was on the front line of the Soviet-led Warsaw Pact. The decline of the USSR and the end of the Cold War allowed for German unification in 1990. Since then, Germany has expended considerable funds to bring Eastern productivity and wages up to Western standards. In January 1999, Germany and 10 other EU countries introduced a common European exchange currency, the euro. TYPE OF ECONOMY

The German economy is essentially a social market economy or known as “soziale marktwirtschaft” in German. It was originated and implemented by Christian Democrat Ludwig Erhard, Minister of Economics under the Chancellorship of Konrad Adenauer in the early 1960’s in former West Germany. Although the state provided subsidies and controls few segments of the economy, “free enterprise” and the “rule of the market” was also promoted as a part of governmental policy. Germany has an elaborate network of social security systems (pension,...
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