Deutsche Bank called the 5 factors that for many years Germany provide stable growth of welfare. A special role is played by a specific feature of the national character.
Why suddenly Analytical Center Deutsche Bank (DB Research) has decided to end of 2016 to explore the "secrets of success" of the German economy? The study, published in Frankfurt am Main under the heading "pillar of stability: What makes Germany so successful", in the preface clearly explain their intentions.
"In a world that is increasingly dominated by negative surprises and crisis tendencies, it seemed to us a good and important to consider the reasons for the political and economic stability in Germany, which has continued for more than half a century and is often perceived as a matter of course. There are a lot so you can learn"- write the chief economist at Deutsche Bank and head of DB Research, David Folkerts-Landau (David Folkerts-Landau) and the bank's chief economist Stefan Schneider in Germany (Stefan Schneider).
Experts stress that the economic success of Germany - not a temporary phenomenon, but a constant, observed since the first post-war years. They connect as a sustainable ongoing development of a "unique combination of micro- and macro-economic factors and institutional features that complement and reinforce each other." The authors divided these factors into 5 groups.
1. Tight monetary policy
First, scientists have combined under the heading "Macro policy aimed at stability and growth." These experts included monetary (monetary) policy, specifically - the desire for hard currency, and low public debt.
So, they are reminded that the German mark since its introduction has been particularly strong monetary unit in 1948, as the German Federal Bank (Bundesbank) purposefully fighting inflation. Germany, in contrast to France and other European countries, did not resort to the instrument of devaluation to make domestic companies more competitive. On the contrary, the business often suffered from a tough policy of the Bundesbank, to raise rates earlier and higher than other central banks. However, it has taught German companies to improve the quality of export products and strives to be a leader in the global market. Therefore, in the euro area in the current environment of extremely low interest rates, they feel particularly comfortable.
2. The liberal and social market economy
An important factor in the success of the study's authors say formed in the German model of the social market economy. Its aim, they emphasize, is to provide the greatest possible number of inhabitants of a country's ability to work, consumption, and participation in social and cultural life.
A married couple with shopping bags in front of a shop in Berlin
The task of the social market economy - to ensure the welfare of the general population.
3. The unique structure and business innovativeness
Thanks to the liberal framework conditions, a long-time entrepreneurial traditions and deepening international division of labor in Germany, a unique, according to the study's authors, business structure. Its key feature - the predominance of medium-sized companies with a relatively large number of major companies.
Fully automated assembly of motor vehicles in the Volkswagen plant in Wolfsburg. Especially actively introduce innovations German automakers
At the same time, and medium and large enterprises focused on the world market that forces them to constantly innovate, which, in turn, provide them with global leadership in their respective segments.
This innovation underscores DB Research, Germany provide a large number of industrial jobs and a stable share of manufacturing industry in the structure of the economy, while in other developed countries, its share is shrinking.
4. Effective social system
One of the key "secrets of success" is an extensive and well-functioning social security system. It allows you to smooth out the negative effects of global competition, "that Germany, with its open economy is exposed to particularly strong." As a result, the attitude to globalization is much more positive than in other major EU countries, or - at the moment - in the United States.
5. The long-term orientation of enterprises and citizens
And yet, "unquestionably the most important success factor," the study authors believe such a pronounced national traits as a long-term orientation. It is manifested in the willingness of the Germans, whether entrepreneurs or regular folk, "to give up instant gratification."
Frugality and thrift German textbook, but experts DB Research treat them in a macroeconomic context. High savings rate, low level of public debt load, businesses and the state, foreign trade surplus, a moderate rate of inflation, the priority of long-term business strategy, increased attention to education and the environment - all this can be considered the result of focus people in Germany not momentary, quick success and sustainable development, the gradual growth of welfare and sustainable prosperity.