“Germany’s sustainable growth”

While a lot of countries are in a deep crisis, Europe’s largest economy with the world’s most powerful woman is in a full swing. Even though Germany’s GDP was in a slow decline at the end of 2012 namely -0.5% (Trading Economics): “As a whole there will be a noticeably weaker economic dynamic in the winter period,” said Germany’s Minister of Finance Wolfgang Schauble in a statement. Germany’s exports are expected to reach record levels this year. The Federation of German Wholesale, Foreign Trade and Services (BGA) said that it expects exports to increase up to 5 percent this year and hit €1.158 trillion. Exports as varied as Cars of course, Arms (3rd in the World), computer chips and chemicals contribute about a third of Germany’s gross domestic product. You have to understand that German exports have benefited from the low value of the euro compared to other currencies, and strong demand for their goods in the United States, India, Japan and the emerging economy China. What is it that the World can learn from Germany? Well the Germans are masters in Automotive engineering. Superior automotive technology compared to the USA and Japan for example. They are Pioneers in eco-friendly technology. Germany is also a leader when it comes to the transition of renewable forms of energy. After the Fukushima disaster all German nuclear power reactors were declared to a permanent shutdown in 2011. This gave place to initiatives like the Wiemersdorf village owned windpark (BMU). Silicon Valley companies like Google are also taking an interest in Berlin, and the growth thus far has been fuelled almost entirely by native European entrepreneurs. Besides that Fifty-one out of Germany’s top 100 companies are family-run-, a bigger ratio than in any other industrialised country. Strong examples are Aldi, Schaeffler/Continental, Knorr-Bremse, Boehringer Ingelheim and Rossmann. The Germans did not believe in themselves at all in the late early nineties. There was a huge depression, fear and a lot of individual dispair. But the measures that former chancellor Gerhard Schröder implemented pulled them out of despair and put the german believe back in the Germans – Made in Germany. According to sociologist Ulrich Beck this is largely due to the belief that ‘quality’, ‘scale’ and ‘dedication’ to the work is so deeply rooted in German society. What is it with the German mentality and it’s unexpected sides of the German soul? Why does everyone in Asia want to drive preferably in German cars? Why does Hollywood preferably want to shoot all it’s feature films on the German ARRI Alexa cameras? I think the origin must be sought in Protestantism and the strong believe of rebuilding the Country with the D-Mark: Wirtschaftswunder. These are the foundations for modern Germany. Sociologist Beck goes as far back to the ideas of Max Weber and explains the current German success from a ‘disenchanted religion’, ’scepticism’, ‘Analyticism’ and ‘Bildung’. The German public schooling system is free and is the 10th best in the World according to the 2012 PEARSON rapport. But how important is this ‘Bildung’ actually for the current German economic success? Education and training will always be important pillars on which a country builds its economy. Not even Germany will stay fully intact in the haunting European crisis. The towering debts mainly by the southern European countries have constructed both beneficial and detrimental situations even for Germany. So the main question arises: Will ‘Mutti’ go for a ’European Germany’ or a ’German Europe’? According to former chief economist Jurgen Stark from the European Central Bank: ‘you just have to look at why the ECB in Frankfurt state, then the answer is self-evident’. After living and working in Berlin, Germany for five Months myself now, I have to say in all honestly: ’Bildung’, ‘Arbeitsethos’ and ’Gründlichkeit’ are three unique and beautiful German characteristics, that after all my travelling in the last 10 years, I simply have never encountered anywhere else in the World. Proud to be part of this Engine….

Undersigned,

Bart Hendrikx.

(photo copyright Audi of America)